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Legislative E-Update 3.5.10

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in this update:

1.      House Sends Reorganization Bill To Culver

2.      Second Funnel Deadline Passes

3.      Iowa Economist Predicts Improvement By Summer

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.      House Sends Reorganization Bill To Culver

Iowa House members this week approved a final version of a government reorganization bill that projections say will save taxpayers an estimated $126.4 million. Governor Culver is expected to sign the bill, which includes dozens of recommendations made by a consultant he hired to help find savings. The bill was a bipartisan effort with significant input and ideas included from both parties.

"I truly believe that this must only be a start," Doug Struyk, R-Council Bluffs, said. "That there must continue to be change. There must continue to be reorganization and consolidation or we won't meet budget targets that have been laid out, and we will certainly carry a billion-dollar deficit into next year."

The bill passed with only one no vote, cast by Rep. Christopher Rants, R-Sioux City.

Rants said that only $70 million of the savings affect the general fund, the state's chief operating account, and that much more savings are needed. The former speaker of the House ended a run for governor last month. He is not running for re-election for his House seat in the fall.

“Pat yourselves on the back,” Rants said. “Say we’ve done a great job reorganizing state government. You all will be here to sort it out next year. I’m actually glad for the first time that I won’t be.”

Some of the main parts of the bill consolidate large computer systems and require the state to keep better track of excess property and leasing agreements. Other areas would have wide-ranging impacts on Iowans, including capping an adoption subsidy and further restricting prescription drug options for doctors who treat Medicaid patients.

Rep. Mary Mascher, D-Iowa City, who led discussion of the bill, noted that it requires state lawmakers to evaluate consolidation possibilities every two years.

Lawmakers and the governor have found $265 million in savings for the fiscal year that begins July 1. Those savings include an estimated $60 million in an early retirement package approved earlier this session, plus cuts Culver ordered using his authority as governor. But half of those cuts are outside the state's general fund. Culver balanced his proposed budget with $341 million in projected savings.

What the bill does and doesn't do

EARLY CHILDHOOD: The Iowa Department of Management would assume the main fiscal and data reporting responsibilities for dozens of early childhood development programs across the state, known as Iowa Community Empowerment. The program will be renamed "Early Childhood Iowa." Various provisions are expected to consolidate as many as 28 of the 58 local empowerment boards by 2013.

SUPERVISOR-TO-EMPLOYEE RATIOS: The ratio would change from an average of 11 employees for every supervisor to 15 to one by 2011. The final bill specifically says that public safety employees couldn't bump junior employees. This was changed after threat of a lawsuit challenging the state's actions.

PRISON FARMS: Two prison work farms at Fort Madison would close, for a savings of $1.5 million.

MEDICAL LIBRARY: The State Medical Library would be eliminated under a provision that the House approved Monday. Lawmakers noted that the Hardin Health Sciences Library at the University of Iowa already provides most of the services offered by the State Medical Library.

TAX COLLECTIONS: The state's revenue department would hire five employees to help better collect taxes owed to the state, bringing in an additional $2.7 million to the general fund.

CONSULTANT RECOMMENDATIONS NOT YET APPROVED:

MENTAL HEALTH: Eliminate and consolidate mental health facilities: This idea, which would have saved an estimated $1.9 million a year, was ultimately yanked from the reorganization bill after lawmakers determined it might cost the state more in the long run.

EARLY CHILDHOOD: Transfer federal grants that help the state pay for early childhood development from various programs into field operations to reduce the state's use of general fund money for determining eligibility. The idea would save an estimated $7.1 million a year.

RECYCLING: The state should allow the Iowa Department of Natural Resources to apply fees collected from recycling to meet various matching-fund requirements set by the federal government. The additional revenue was estimated at $200,000.

LUSTER HEIGHTS: The state's corrections department should eliminate the facility at Luster Heights for an estimated savings of $900,000.

2.      Second Funnel Deadline Passes

State legislators dumped all sorts of bills overboard this week. This week marked the passing of the legislature’s second funnel deadline; meaning legislation must have passed from one chamber and through a committee of the second chamber to remain viable for the balance of the legislative session. Bills dealing with taxes, fees and appropriations are exempt from the deadline. Leaders can, theoretically, revive any of the "dead" bills before the session ends sometime near the end of March. But with only about three weeks left in the 2010 legislative session, Democratic leaders said they intend to focus on money-related bills, health care reform, a limited expansion of gambling, stripping guns from domestic abusers, and a few other policy bills.

Lawmakers will try early next week to compromise on a ban on texting while driving. Any bills designed to make life a little easier for military members and their families are likely to pass. This session has produced far more veterans-related legislation than most years.

"This year is the highest call-up of Iowa military members since World War II," said Senate President Jack Kibbie, D-Emmetsburg, referring to the planned fall deployment of 3,500 Iowa National Guard members to Afghanistan. "Many of these bills affect families, health care, paying taxes, getting unemployment, getting jobs."

A bill to allow betting on professional sports died. A bill to end live greyhound racing died, too. So did a bill to standardize how sheriffs issue permits to carry a concealed weapons. As did a bill to study — again — whether to use, sell or lease the fiber-optic Iowa Communications Network. Dozens of bills survived this week’s so-called funnel, but not all the survivors will become law.

House Majority Leader Kevin McCarthy, D-Des Moines, doesn't expect passage of three highway-safety proposals that survived the funnel: requiring children to buckle up no matter where they're seated in a car, stiffening rules for teen drivers, and increasing fines for drivers who imperil bicyclists.

That means children over age 10 likely still won't need seat belts in the back seat. Teens likely won't have to drive with a parent along for a year instead of six months, and they could still carry a carload of friends. And drivers won't face new rules such as not following bicyclists too closely.

Technically, none of a controversial group of labor union-backed bills survived the funnel, but Democratic leaders said they will keep them alive on artificial life support.

"It certainly doesn't look like we're going to get much done on that front," said Senate Majority Leader Mike Gronstal, D-Council Bluffs. But if a chance to pass a union-backed bill pops up, "we will move forward," he said.

House Minority Leader Kraig Paulsen, R-Hiawatha, vowed to "stay vigilant" on the labor bills.

"Obviously Republicans oppose all of them," he said.

Several bills got through just under the wire. One would require employers to provide accommodations for workers to express breast milk — and it couldn't be a bathroom stall. Another would let children born up to two years after a parent's death have inheritance rights. And a very limited bill requiring insurance coverage of autism disorders — one affecting just insurance plans for state employees — passed at the last minute.

Senate Minority Leader Paul McKinley, R-Chariton, repeated a theme he has expressed throughout the session - that Democrats aren't doing enough to create jobs.

"We have just finished the eighth week of this session, and we have yet to talk about job creation in this state," he said. "While we debate numerous bills that don't have major consequences for Iowans, we are still failing those 110,000 unemployed Iowans."

3.      Iowa Economist Predicts Improvement By Summer

A leading economist who advises Gov. Chet Culver predicted that Iowa's economy will stay flat for much of the spring but should perk up by summer.

"I think we're going to get through this," said Charles Whiteman, a University of Iowa economist who sits on the governor's Council of Economic Advisers. "I can see light at the end of the tunnel."

Whiteman speculated that Iowa residents should see some economic improvements within a few months.

"Nationally I think we're kind of there," he said. "We went in late in Iowa and we're going to come out late."

That would put the projected recovery starting in the middle of the summer, coinciding with the beginning of the state's new budget year on July 1.

There already have been some signs of a recovery in Iowa, said Whiteman, noting that businesses have begun lengthening work shifts and having employees work more overtime. Still, businesses haven't yet increased hiring enough to cause the state's 6.6 percent unemployment rate to fall.

Employment traditionally is a lagging indicator, with numbers improving only after business confidence increases. The same can be said for state tax collections, he said. He predicted that state tax collections will be flat throughout the spring but start picking up about the middle of the year.

Whiteman gave his message in person to Culver, who listened in to a discussion by the economic advisers panel. Culver told the panel that "hopefully there will be some pretty positive news" as the economy improves later in the year.

Next week, the state's Revenue Estimating Conference will issue its projection of what the state will collect in taxes. Lawmakers and Culver are required to use those figures as they build the budget for the fiscal year beginning July 1.

Projections at the beginning of the session showed a roughly $341 million shortfall in next year's budget, and legislators have moved ahead plans to cut costs and dip into cash reserves to balance the budget. If the Revenue Estimating Conference lowers its projection of tax revenue, lawmakers and the governor will have to go back to work finding more cost savings. Legislative leaders and the governor have promised not to increase state taxes.

4.      Other News: Legislative Briefs

Procedural “snafu” kills mechanics lien bill

A procedural error in the Iowa Senate inadvertently put an end to debate of HF 2477, the mechanics lien bill, for the remainder of the 2010 session. On Wednesday evening, the Iowa House approved the legislation on a 90-8 vote. Procedurally, the bill must be messaged to the Senate, received, and then referred to committee.

While the House completed its procedural role, the Senate failed to recognize and receive the bill before it adjourned for the week. This meant the bill could not be referred to committee and debated, prior to the second funnel deadline. As a result, absent either leadership intervention or amending the legislation onto an appropriations bill, the issue can no longer be considered during the 2010 session.

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Bill allows for delayed refunds on state income taxes

State Department of Revenue officials would have an extra 30 days to process state income tax refunds before they would have to pay interest on the money under a bill that cleared the Senate Ways and Means Committee this week. A provision of Senate Study Bill 3234 would give state tax officials 62 days to turn around a tax refund – up from the current 32-day window. The proposed change would save the state about $300,000 yet this fiscal year and about $1 million in fiscal years 2011 and 2012.

Sen. Randy Feenstra, R-Hull, one of five Republicans to oppose the bill, called it “poor government” to hold onto taxpayers’ money for an extra 30 days to help the state’s cash-flow situation.

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New dental coverage offered for Iowa children

Children from low- to moderate-income families in Iowa are now eligible for dental coverage under a state program. Gov. Chet Culver said it is the first dental-only program in the country. Officials expect as many as 22,000 children could enroll in program that began March 1. It provides routine dental care as well as medically necessary orthodontia, but not cosmetic orthodontia.

Families with incomes below 150 percent of the poverty level can join the program free. For others who are eligible, the program will cost no more than $30 per month. Dental care currently is covered for Iowa children in the state’s Healthy and Well Kids Iowa program, or Hawk-I, and Medicaid.

Families whose income makes them eligible for the Hawk-I program but have their own health insurance plans without dental coverage can sign up for the dental-only plan. The program is expected to cost $369,000 through June and $4.9 million in the next fiscal year. The federal government’s share is 75 percent, with the state picking up the rest of the cost.

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Culver calls for additional casinos

Gov. Chet Culver this week urged state gambling regulators to approve licenses for four additional casinos in Iowa. The casinos would create hundreds of construction and permanent jobs, which are critical to the state, Culver said. Voters in each of the counties – Lyon, Webster, Tama and Wapello – have approved the licenses.

The groups are scheduled to make presentations before the Iowa Racing and Gaming Commission on March 23. The commission is scheduled to make decisions about awarding licenses on May 13.

Iowa has 17 state-regulated casinos, as well as two casinos operated by American Indian tribes. Opponents have long held that additional gambling would lead to an increase in undesired social problems such as bankruptcies.

All five members of the Iowa Racing and Gaming Commission said they would take Culver’s comments into consideration, but they were noncommittal about immediately pledging to award all four licenses. The commission is scheduled to hear presentations by the four licenses applicants at a March 23 meeting in Johnston, and then will tour the proposed casino sites on April 7 and April 14. A public hearing is scheduled for May 4, and final decisions on the license requests will be made on May 13.

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:

Signed by 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

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.

SF 2300 LANDLORD TENANT NOTICE

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

Senate Action

Senate Environment & Energy Committee; Voted Out:

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. PASSED 10-0

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. PASSED 10-0

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. AMENDED & PASSED 10-0 (Strikes the vendors from the list. Increases the number of committee members nominated by the Recycling Association to 4. Adds a member nominated by a national solid waste association. Includes the directors of environmental education and solid waste recycling from UNI on the committee. Has the DNR convene meetings and includes a requirement for recommendations on waste tires).

House Action

Bills to the Governor:

SF 2088 STATE GOVERNMENT REORGANIZATION BILL

Adopts the recommendations for streamlining state government. Makes appropriations, establishes fees and criminal penalties. Division I: Information Technology: Requires state agencies to get IT services from the DOM. Makes exceptions for the Regents and the DPD. Establishes a new Chief Information Officer and a 10-member Technology Advisory Council. Creates a waiver process. Makes definitions and includes provisions on powers. Division II III: Requires electronic records and deletes requirements for paper copies.   Makes other changes regarding publications. Division IV -   Prohibits turning an FTE into a contract position. Requires state fees to be reviewed annually. Makes other changes Division V: Span-of-Control: Increases the employee: supervisor ratio from 14:1 to 20:1 from FY 2011 to FY 2017. Requires the Regents to have a target of 15:1. Makes exceptions for direct patient care. Division VI: Establishes centralized purchasing with possible exemptions (DOT, Regents, Blind). Strikes the authority for direct purchases. Division VII: Gives DAS additional duties on finding best practices and on selling state property. Division VIII-IX-X: Transfers the Alcoholic Beverages Division to the DOR. Makes changes including direct shipment of wine sales (with a $25 fee). Division XI: Re-organizes the Department of Human Rights, with name changes and a new human rights board. Division XII Changes the gambling setoff from $10,000 to $1,200. Division XIII - XIV: Makes additional reorganization. XV-XVI-XVII-Elimination of DNR & DALS entities, and Climate Change entities. XVIII: Eliminates the UST Board. XIX: Eliminates DED entities. XX: Consolidates housing programs. XXI: Make changes in education, including changes to AEAs and AEA boards, and striking the Midwestern Higher Education Compact. XXII: Reorganizes the Early Childhood Initiative and moves it to the DOE. Establishes boundaries for new areas (no more than four contiguous counties. Makes other changes. XXIII - XXIV: Directs DHS to find strategies to increase efficiency on paperwork and in other areas and to report to the budget sub. Requires reports on pharmaceuticals. Repeals the Hospital Licensing Board. Includes provisions on electronic transfer of child support payments. XXVI Establishes the False Claims Act to allow individuals to bring claims against fraud against the government. Gives the AG the power to investigate and bring civil actions under this act. XXVII-XXX: Deletes drugs from the mental illness list and requires restrictions on prescription drugs not on the preferred drug list. Requires disease management programs for chronic disease in children. Requires reviews of payments under Medicaid waivers in excess of median payments. Creates a five year look back for transfer of assets in regards to Medicaid eligibility. XXXI: Replaces the Child Care Advisory Council with the Child Care Advisory Committee (under the Early Childhood Initiative. XXXII: Shift MHI services from Clarinda. XXXIII-XXXV: Makes name changes for the MH/MR/DD/BI Commission. XXXVI: Consolidates advisory bodies in the Council of Human Services and Repeals health advisory bodies (State Substitute Medical Decision Making Board, State Medical Examiner Advisory Committee, Anatomical Gift Awareness, Swimming Pool Advisory Committee, Technical Committee on Radiation Machines). XXXVIII - XLI: Allows DHS to realign service areas. Prohibits DHS from accepting new applications for the Family Support subsidy. Reduces the adoption subsidy to $500. Continues expansion of electronic transfers of funds. XLII Adds provisions on the duties of guardian ad litems. XLIII: Requires counties to report on spending grant money for veterans affairs. XLIV: Reduces the number of meetings of the DOC Board. Allows charging administrative fees for filing disciplinary reports when an inmate is found guilty of the charges. XLV: Strikes the Indigent Defense Advisory Council. Requires reports from the State Public Defender every three years on the indigent defense system. Appropriates money for additional local public defenders. XLVI: Requires ILEA to develop a pilot program for training seminars for private security. XLVII Establishes a State Government Efficiency Review Committee and criteria for establishing boards, including having repeal dates.

        S-5072 by the House - IT: Defines network services, including definitions of support and equipment. Has DAS appoint the CIO. Allows agencies to seek waivers if to avoid losing federal funds and creates an appeal process. Excludes the DPD. Allows 10% of the fees for network services to be retained by the department. Employees: Allows for waivers of span-of-control. Eliminates the bumping provisions. Alcohol: Strikes language to keep the ABD in the DOC. Micro-distilleries: Creates a special Class “A” license for micro-distilleries (under 50,000 gallons) with a $500 fee. Allows the sale of no more than 1.5 liters per day per person. Allows sampling of the native spirits (2 ounces) but not consumption of the spirits on premises. Establishes a new Class “A” native distilled spirit permit, with a $500 fee. Charity Auctions: Establishes a Charity Beer & Wine Permit Auction, for off-sale consumption. Sets the fee at $100. Allows breweries to make and sell native beer (defined as having alcohol content between 5% and 10%) either at the brewery or through bars or stores. Allows direct shipment of wine from out-of-state wineries. Requires a permit ($25). Gambling: Makes the gambling setoff $3,000. Agriculture: Strikes a number of boards and councils (Renewable Fuels, Organic Products,, Sustainable Natural Resources, Upland Game Bird, Iowa Climate Change) but keeps the UST Board. Education: Strikes changes to AEAS and creates an advisory group. Creates a new accreditation standards. Strikes the Iowa Learning Technology Initiative and the Midwestern Higher Education Compact. Hospitals: Restores the Hospital Licensing Board. False Claims: Makes changes in the False Claims Act. MHI: Deletes the shift of MHI services and requires DHS to create continuum of care. Restores Code language on DIA consulting with the MH/MR/DD/BI Commission.

S-5072 by the House (continued) MHI:    Requires the DHS to make Medicaid waiver changes on the level of care for persons with mental retardation and covers transportation costs under that same waiver. Strikes the repeal of the Health Advisory Boards and on guardian ad litems. ILEA: Splits training costs 1/3 state, 1/3 city, 1/3 candidate, with the city having the ability to pick up all the costs. Review: Calls for on-going reviews of state programs. Early childhood:   Creates an Early Childhood Iowa Initiative and board in the DOM. Sets boundary rules. Libraries: Eliminates the State Medical Library. Makes other changes to state libraries. DHS: Prohibits DHS from requiring paper copies if it requires electronic copies. Includes provisions on how DHS should look at waivers. Community Colleges: Adds provisions on community college accreditation and on instructor hours.

H-8276 by the Senate - Strikes most of the House changes on IT but includes waiver language if federal funding is jeopardized and the exclusion of DPD. Adds language on network services and appeals. Changes the language on the early childhood initiative and AEAs. Creates an Early Childhood Stakeholder Alliance. Establishes a study on community college accreditation and instructor hours. Makes other changes.

        The House CONCURRED & PASSED the bill, 97-1; it now goes to the Governor

Bills to the Senate:

HF 2477 OWNER BUILDER MECHANICS LIEN

Establishes a state construction registry. Changes contractor references in regards to these liens to General Contractor and adds a category for Owner-Builder. Requires that a lien include the address of the property of a description of the location. Requires a general contractor to give notice to an owner that subcontractors may file liens. Requires a general contractor or owner-builder to notify IFA on the commencement of work. Requires subcontractors to make various submissions. Establishes deadlines for subcontractors to file liens due to non-payment by a general contractor. Contains other related provisions.

        H-8325 by Palmer - Adds provisions on fees charged by IFA for the registry to keep the registry revenue-neutral. Prevents fees for preliminary filings. Gives subcontractors the burden of proof by a preponderance of the evidence that notice was served. Adds details to the definition of owner builder and makes corrections. ADOPTED

       The House PASSED the bill, as amended, 90-8; it now goes to the Senate

House Commerce Committee: Voted Out:

SF 2157 REAL ESTATE CONTRACT SALES

Moves up the deadlines for recording real estate contract sales to 90 days (for sales subject to a 180-day requirement), and to 30 days for installment contracts that are subject to a 45-day requirement. PASSED, 22-0

SF 2192 TRANSFER FEE BAN

Bans transfer fee covenants in real estate conveyances. Defines such fees. PASSED, 22-1

House Local Government Committee: Voted Out:

SF 2265 SMART PLANNING

Establishes 10 smart planning principles (collaboration, efficiency-transparency & consistency, clean-renewable-efficient energy, occupational diversity, revitalization, housing diversity, community character, natural resources & agricultural protection, sustainable design, and transportation diversity). Creates a 27-member task force on smart membership. Requires four meetings and report by November 2010. Requires the task force to consult various experts, and to develop recommendations and measurements on smart planning. AMENDED & PASSED, 11-10 (Changes “shall” to “may.” Adds two members to the task force, one from the Iowa association of school boards and one from the IUB. Makes a correction regarding the census. Strikes the requirement to develop a model for regional comprehensive planning and instead requires the task for to make recommendations. Requires that the task force be dissolved December 31, 2012. Strikes the language regarding environmentally sensitive land. Conforms the definition of development with the provisions on development in zoning for agricultural land.)

General business legislation:

Signed by 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.

Senate Action

Senate Labor & Business Committee; Voted Out:

HF 681 WORKER NOTIFICATION ACT

Creates the Iowa Worker Adjustment and Retraining Notification Act. Establishes provisions requiring notice to the DWD and to employees, and unions for layoffs of more than 25 employees at least 30 days in advance. Includes rolling layoffs if 25 employees are laid off in a 90-day period. Establishes exceptions for lockouts and strikes, natural disasters, unforeseeable circumstances, for plant closings by faltering companies. Establishes civil penalties. PASSED, 14-1

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. FM: PASSED 8-0

Senate Judiciary Committee; Voted Out:

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. PASSED 13-0

Senate Ways & Means Committee; Voted Out:

SSB 3224 STREAMLINED SALES TAX

Adopts provisions to conform to the uniform provisions on the streamlined sales tax, including making new definitions, adding electronic filing provisions and on other matters. AMENDED & PASSED 17-0

SB 3234 DOR TAX BILL Tax Credits: Directs certain tax credit withholding payments to have those taxes paid to the DOR and for cities or community colleges to certify the amount to be allocated. Applies to existing and future agreements, and requires existing agreements to be amended. Extends by two years the time for claiming the industrial real estate or cattle facilities property tax exemptions. Data Match: Establishes a data match system to compare data on obligors with data from financial institutions. Allows the DOR to enter into agreements with banks. Allows the DOR to levy on those accounts through administrative action. Allows for the banks to receive reimbursements. Other: Extends penalties for false claims to false claims for credits. Specifies that interest on tax refunds begins on the first day of the third month. AMENDED & PASSED 11-6

House Action

House Commerce Committee: Voted Out:

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 Board of Medicine to define such disorders by rule, and to adjust the coverage levels by the CPI after 2013. Requires the Board to set standards for behavioral specialists. Retains provisions setting the effective date as of January, 2010. AMENDED & PASSED

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:

NO ISSUE RELATED LEGISLATION WAS INTRODUCED THIS WEEK.

General business legislation:

HF 2513 APPRAISER FUND Combines the Special Appraiser’s Fund with the assessment expense fund. Increases the levy rate to 40 1/2 cents.

HF 2514 PROPERTY ASSESSMENT APPEALS Allows property owners to bypass the property assessment appeal board only when the appeal relates to property worth less than $1 million.

HF 2515 FLOOD ASSESSMENTS Allows a city to use the assessment rolls from January 2009 to determine the value of property in an urban renewal area if the city was damaged in the floods of 2008. Contains related provisions.

SSB 3246 STATE SPENDING LIMIT Establishes a 7-year adjusted average for the revenue estimates used for the 99% spending limit. Requires the RED to make estimates for the current and next fiscal year and for lottery revenues at each meeting. Requires the use of a 7-year adjusted average estimate for lottery revenues. Does not allow the governor to reduce school aid (Allowable Growth) if state revenues are insufficient and requires an act by the Legislature. Includes accruals in the adjusted revenue estimate and defines inflation to mean the CPI for the Midwest. Establishes a limitation on spending for gambling revenues. Funds: Credits money over the EEF limit to a new non-recurring expenditure fund in the DOM. Limits appropriations from the fund to vertical infrastructure. Puts the state share of forfeitures in the Cash Reserve Fund. Adds thresholds for withdrawals from the CRF. Effective beginning July 1, 2010, for the budget next in FY.

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