Thursday, April 11, 2013

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House Republican Talking Points

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 policy changes focused on achievement-driven reforms. House Education Committee Chairman, Rep. Ron Jorgensen (R-Sioux City) offered the compromise plan during the conference committee. The details include: Keep intact policy language and appropriations for House File 215. 2 percent increase in allowable growth for Fiscal Year 2014, plus a one-time payment equivalent to 2 percent allowable growth. 4 percent increase in allowable growth for Fiscal Year 2015.

Inside this issue:

Appropriations Agriculture 2 2 4 4 4 6 7 8 8 9 9 9 10

Moving a Responsible State Budget

Two years ago, Iowa faced a $900 million budget shortfall. Today, we have an ending balance of $688 million and our budget reserves are full. This is a fundamental change in legislative decision making, driven by Iowans. This is a significant departure from how government operated in the past where every dollar was spent, even some we didnt have. House Republicans have instilled a fundamental 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 to pay 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.

Commerce Economic Growth Education Environmental Protection Human Resources Judiciary Natural Resources State Government Transportation Veterans Affairs Ways and Means

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 million in Fiscal Year 2014 and $119.3 million 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.

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 taxpayers. The amount of ongoing revenue that 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 priority 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 revenue.

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(Contact Brad Trow at 1-3471.)

Appropriations
As Iowans discuss the issue of Medicaid expansion, a number of topics have arisen in the conversations. But one critical issue has yet to be addressed Medicaids longterm impact on the state budget and Iowas ability to fund our education system. FY 2012, the states share of Medicaid costs has grown by 8.08 percent annually. Growth in the Medicaid program has recently been compounded by the shift in the federal Medicaid match rate. That measures states against each other, and places a higher cost burden on states with stronger economies. Because of the states strong agricultural economy over the past few years, Iowas share of Medicaid expenses have grown significantly. Between FY 2010 and FY 2014, the amount of Medicaid costs that has been shifted to the state is nearly $200 million. By comparison, that is more than what the state spends on Iowa State Universitys General appropriation or Community College funding in the Education budget.

Growth in Medicaid Threatens Education Funding, Rest of State Budget

Medicaid costs to the state thanks to the Medicaid Match rate. Then there is the impact of provisions in the Personal Protection and Affordable Care Act (otherwise known as Obamacare) that the state is required to implement. Thousands of Iowans currently eligible for Medicaid but not currently enrolled will join the program as the personal mandate goes into effect in 2014. And Congress raised primary care reimbursement rates for Medicaid to the Medicare level for 2 years. After that, primary care providers will expect states to replace the short term federal money that was provided. It is possible in the next five years that the state will reach a point where all new revenue will be required to fund the growth in just one program Medicaid. That potential should make Iowans involved in education, public safety, economic development or any other state program to think twice about calling for Medicaid expansion.

From Fiscal Year 2000 to Fiscal Year 2012, state funding for K-12 education grew by a total of $810 million. During the same period, the states share of Medicaid costs grew by $674 million. That might seem like not a reason for concern today while Iowa is experiencing strong state revenue growth. But in FY 2000, the state budget was $4.764 billion, the state spent $1.7 billion on K-12 school aid and just $445 million on Medicaid. In FY 2012, the state budget was $6.012 billion, K-12 education received $2.5 billion, and the states share of Medicaid had grown to $1.12 billion. Even before any consideration of Medicaid Expansion occurred, there was growing The growth in Medicaid can be seen in the concern that Medicaid has the potential to average annual growth. While school consume all growth in state revenue in the spending has averaged an annual growth very near future. For FY 2015, the state is rate of 3.58 percent between FY 2000 and already expecting another significant shift in

Agriculture
General Assembly Gives Final Okay to Two Ag Measures
On Monday, April 8, 2013 and on April 9, 2013, final legislative consideration was given to two agricultural measures when SF 316 passed the House by a unanimous 98-aye vote and when HF 312 was approved by the Senate on a unanimous 49aye vote respectively. SF 316 tweaks existing 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 provided 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 termination date of the agreement. Existing law exempted tracts of 40-acres of less. The bill does however still exempt tracts of less than 40-acres of farmland leased for primarily 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 requiring DNR to establish certification standards for manure applicators to expand the scope of such education/continuing education to additionally include topics that emphasize practical and cost-effective methods to

(Contact Lew Olson at 1-3096.)

prevent manure spills and limit the impact of manure spills. The bill instructs DNR to provide that the continuing instructional course be made available via the DNRs internet site, the internet site of an instructor teaching this course, and/or ISU extensions internet site and be available to persons required by DNR to take such instruction for certification of manure applicator. HF 312s online manure applicator certification provisions are contingent on the legislature providing DNR with the estimated $250,000 needed to develop and put this educational material online.

IDALS Announces Cost Share Assistance Available Through Renewable Fuels Infrastructure Program
On Monday April 8, 2013, the Iowa Department of Agriculture and Land Stewardship issued a press release in which Iowa Secretary of Agriculture Bill Northey announced that retail and wholesale distributors 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 Infrastructure 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 available to cover up to 70 percent of the cost of

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cost of new bulk storage and distribution equipment that can be used with higher blends of renewable fuels. Up to $100,000 converting old equipment, such as underground tanks or retail pumps, to new equip- is available, but requires a 50 percent match by company and a five-year commitment designed to handle higher blends of ethanol and biodiesel. Grants to retail dis- ment to handling renewable fuels. tributors are limited to a maximum of The Iowa Legislature provided $3 million to $50,000 per project and retailers must the program for fiscal 2013 and nearly $1 commit to selling renewable fuels for at least five years. Smaller grants of $30,000 million remains for this final application are available for those only making a three period. Funds not awarded this year can year commitment. Wholesale fuel distribu- be carried into the next fiscal year. All tors are also eligible for grants to offset the grant applications must be approved by the
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Renewable Fuels Infrastructure Board. The board contains eleven members who are appointed by the Governor. More information about the program, including guidelines and application forms, are available at www.IowaAgriculture.gov by clicking on the Renewable Fuels Infrastructure Program link under Hot Topics. The Iowa Legislature gave responsibility for the Renewable Fuels Infrastructure Program to the Iowa Department of Agriculture and Land Stewardship in 2011.

IDALS Secretary Northey Encourages Farmers to Participate in Smithsonian National Museum of American History Agricultural Archive Initiative
Board. American agriculture has gone through a tremendous transformation in the past seven decades, becoming a high-tech industry, deeply affecting not just farmers As an example of the agriculture stories the themselves but every American and the American experience in general, said PeSmithsonian is seeking, the museum will ter Liebhold, curator and chair, Division of accept a donation of road signs related to no-till production and organic farming from Work and Industry. Jim Rapp, a corn and soybean farmer from The exhibition will tell the story of the naPrinceton, Ill. The story of agriculture is tions business, centering on themes of important and complex, said John Gray, opportunity, innovation, competition and director of the museum. In Jeffersons common good with examples drawn from time, 96 percent of Americans were farmfive areas: agriculture, consumer finance, ers; today, that number is less than 2 perinformation technology/communication, cent. Despite this drop, productivity has The Smithsonian press release follows manufacturing and retail/service. Chronoskyrocketed and agriculture has evolved here: into a technology-driven profession with the logical in organization, American Enterprise will use objects, graphics and interNational Museum of American History cab of a tractor akin to a traditional CEOs actives to examine how the United States office. This new collection of stories, phoAnnounces Initiative to Preserve moved from a small dependent nation to tos and objects will play a role in the Agricultural Heritage and Document one of the worlds most vibrant and trendAmerican Enterprise exhibition, an 8,000Farm Innovation setting economies. Visitors will explore the square-foot multimedia experience that will The Smithsonians National Museum of development of American agriculture immerse visitors in the dramatic arc of the American History unveiled a new website through objects such as Eli Whitneys cotnations story, focusing on the role of busiwhere the public can upload stories about ton gin, a 1920s Fordson tractor and an ness and innovation in the United States technologies and innovation that have Agacetus gene gun, which represent mafrom the mid-1700s to the present. The changed their work lives in agriculture chines and innovation that increased stories about precision farming, food-borne exhibition is scheduled to open in May productivity and science that gave insight 2015. illness tracking, environmental concerns, to the genetic structure of plants. Agriculgovernment practices, irrigation, biotechThe American Enterprise project budget is ture has employed science and technology nology and hybrid seeds. This spring, the museum is launching the Agricultural Inno- $20 million, which includes the exhibition, a to dramatically increase production and virtual exhibition on the Web, a rich array of choice while lowering prices, but these vation and Heritage Archive, reaching out changes have also altered the experience programs and demonstrations as well as to farmers, ranchers and American agriof farmers and the public in unexpected business to preserve Americas agricultural an endowment for a Curator of American ways. heritage and build a collection that reflects Business. Recent gifts in support of the American Enterprise exhibition include a modern agricultural practices. Curators are $2 million gift from Monsanto Company and The initial objects donated to the Agriculturseeking stories, photographs and ephemal Innovation and Heritage Archive project era to record and preserve the innovations a $1 million gift from the United Soybean On Tuesday, April 2, 2013, the Iowa Department of Agriculture and Land Stewardship issued a press release in which Iowa Secretary of Agriculture Bill Northey encouraged Iowa farmers to consider participating in the Smithsonians National Museum of American Historys Agricultural Innovation and Heritage Archive. The Smithsonian announced the initiative last month to preserve and document the national agricultural heritage and farm innovation. The full release from the Smithsonian on the project follows Northeys quote. More information can be found at http://americanhistory.si.edu/agheritage. and experiences of farming and ranching. For details and to participate, the public may visit http://americanenterprise.si.edu.

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galleries on business, democracy and culture. For more information visit http:// americanhistory.si.edu. The museum is located at 14th Street and Constitution Avenue 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 public may call (202) 633-1000.

change in dairying from a hand-labor intensive process to a modern computer-run came from Tennessee Farm Bureau mem- operation, as well as his personal recollecber Pat Campbell of Cleburne Jersey Farm, tions about how changing technology has a multigenerational dairy farm founded in altered his work life and has led to greater the 1870s in Spring Hill, Tenn. Campbell efficiency and safety. The National Musedonated a selection of photographs, a com- um of American History is currently renoputer cow tag and reader unit to show the vating its West exhibition wing, developing
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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 greater variety of insurance options, was supposed to have taken effect in 2014. The delay will take place in the 33 states that the federal government will be running insurance exchanges, including Iowa. The Obama administration cited operational changes as the reason for the delay in implementing the provision. (those with 50 employees or less) a marketplace via the exchange to offer insurance 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 business the choice of insurance plans that could then still be paid for by the employer. Theoretically, the small business would then have written a single check to the SHOP, which would have distributed the appropriate funds to the various insurance companies covering the employees. delayed implementation of another component of the federal healthcare law when it was announced that the Basic Health Program implementation would be delayed from 2014 until 2015. The BHP is an optional coverage program that is meant to help ensure that everyone has health care insurance coverage. The BHP is intended to bridge the gap between those eligible for Medicaid and those who are able to purchase their own coverage via the Exchange. The BHP would allow states to use federal tax subsidy dollars to offer subsidized coverage for those with incomes between 139%-200% of the federal poverty level.

The SHOP provision of the Affordable Care Act is supposed to allow small businesses The Obama administration had previously

Economic Growth Report Highlights Fiscal Impact of Demonstration Fund

The Iowa Innovation Corporation released the results of a study conducted by Econsult Solutions, Inc. highlighting the fiscal impact of Iowas Demonstration Fund. The Demonstration Fund is a state run program designed to provide direct financial assistance to businesses at the middle stages of development. The businesses receive the assistance in the forms of grants, loans, or royalty agreements in order to help prototype and concept development activities that have a clear potential to lead to commercially viable products or services. Awards are limited to $150,000 for a single project. The report shows that the state is currently experiencing an annual return on investment in the amount of $2.1 million. Over the five year lifespan of the program, the state has awarded $13 million via 127 awards to 114 different businesses, which represents a return rate of 16%. The state will likely see a year over year return on these investments, and the amount that the state is to benefit is likely to grow as well.

Contact Louis VanderStreek at 1-3626.)

Businesses eligible to receive assistance must be an Iowa-based company operating The study was conducted by a survey of in the industries of advanced manufacturcompanies receiving Demonstration Fund ing, bioscience, or information technology. awards. Of the businesses still in existence These businesses apply to the Iowa Eco(nine have closed their doors since they nomic Development Authority, who perreceived an award), almost 80% of them forms due diligence about the business with responded to the request for follow-up infor- the help of the Technology and Commermation. Of those who responded, it can be cialization Committee.
Contact Jason Chapman at 1-3015.)

represents a return rate of 16%

seen that the direct result of the awards was an increase in personnel of over 650 employees and an $80.5 million increase in annual revenue as compared to preinvestment levels. The types of businesses receiving the most awards operate in the following areas: professional, scientific, and technical services, publishing industries, and computer and electronic product manufacturing.

Education
House Proposes Education Reform Compromise
House 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 taxpayers money, allows schools to plan would consider, but thought the Houses language on education reform might be too (Continued on page 5) much to accept. The proposed plan saves

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ahead for the long term, and implements policy changes focused on achievementdriven reforms. The proposal calls for the policy in House File 215, as passed by the House, with 2% Supplemental State Aid in FY14 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
House Reform costs 2% Suppl. State Aid Property Tax Relief Total

there are similarities between the two versions of the bill, the differences are significant at the moment.

million in FY15. The education reform efforts 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, respectively. For the education reform cost, they are a bit misleading in the bill. They proOn the funding side of things, the House vide many things that need funding but put included in HF 215 2% Supplemental State in language stating contingent upon approAid (SSA), a new allowable growth formula priation. This makes it a little hard to gage which has the state pay for what would the costs. But what they do have is previously have been a property tax in$75,000 in FY14 and $190.5 million in crease. The SSA and property tax amount FY15. The total costs are in the chart bewould be $77.3 million in FY14 and $51.3 low.

allows schools to plan ahead

FY14 $10.2 million $69 million $8.3 million $87.5 million

FY15 $68 million $43 million $8.3 million $119.3 million

Senate

FY14 $75,000 *

FY15 $190.5 million * $114.6 million $305.1 million *

4% AG

$136.2 million $136.2 million *

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

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
New House Proposal 2% / 4% SSA 2% one-time paymnt Property Tax Relief Reform costs Total FY14

thoughtful way. HF 215 as passed by the House had the support of nearly all education associations and many businesses. With the House language, the House would then meet the Senate on their allowable
FY15 $111 million $17.1 million $68 million $196.1 million 4% AG

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:

FY14 $136.2 million

FY15 $114.6 million

$69 million $57.1 million $8.3 million $10.2 million $144.6 million

The House previously rejected the Senates version of education reform. The Senate stripped out nearly all the accountability that existed in the House bill, removed all parental choice, homeschool, and private school provisions, and added various pieces of legislation that the House has not supported over the last several years. Additionally the costs are around $40 million more than the House version and the complexity of their system essentially makes it impossible for the program to have any lasting integrity.

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 more attractive 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 accountability with teachers and administrators undergoing annual evaluations, with student outcomes figured into the discussion. The evaluations will focus on teacher development, ensuring a stronger teaching force. House Republicans believe House File 215 It also looked to include those outside of provided a strong path towards educational the traditional public school classroom, by

providing opportunities for home school parents to teach their children without burdensome regulations and impassive state control and for private schools to focus on bettering 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 Iowans expect in our schools and for our children.

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Senate Releases Education Budget Numbers

The Senate this week acted on the Education 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 Senate numbers are down from their original target, but still $50 million above the Governors 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 recommendation ($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 replacement funds. These pieces account for $60.3 million of the $69.2 million difference, nearly all of the differences between the two chambers. These pieces are broken down below: Education Reform
$5 million Teacher Shortage Loan

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

Forgiveness
$3.5 million Education Reform gen-

eral $12 million Early Literacy efforts $825,000 Competency-Based Education Community College Provisions in SF 429 $6 million Community College Gen-

Total
$60.3 million The House will receive the bill back from the Senate after they amend it on the Floor and the bill will likely head to a conference committee later in the session.
(Contact Lew Olson at 1-3096.)

Environmental Protection
On Tuesday, April 9, 2013, three legislative measures dealing with environmental protection issues were passed in their final forms by unanimous votes of Respective chambers of second consideration. SF 388 was considered and passed by the Iowa House on a unanimous 99-aye vote. This bill proposes to amend existing Iowa law to allow the reconstruction of the Delhi dam that overtopped by unprecedented flooding to allow such a facility to use the flood easement that applied to the dam before disaster as long as the former normal pool elevation in not exceeded by the reconstructed spillway elevation and the flood easement or ownership are required to the top of the spillway elevation. This legislation was instigated because current Iowa Administrative regulations were crafted in such a manner that foresee the manner in which a dam reconstruction might retain an aspect of a dam that no longer was the determining factor of how high a flood pool might go, and so the agency felt it could not go ahead with the permit approval for the reconstruction. This legislation gives DNR the legal authority to revise it administrative rules to account for the novel reconstruction design that is proposed for the blown-out dam in Northeast Iowa. The second bill that got a final okay was House File 311, which was approved by the Senate on a unanimous 49-aye vote. This bill is a Department of Natural Resources (DNR) departmental bill that proposes four changes to the Code of Iowa with the intent to reduce burdensome regulations by increasing conformity to federal law; and improve permitting assistance to clients applying for water withdrawal permits. The bill proposes to reduce the number of newspapers from two to one, in which a public notices concerning an application for coverage under three National Pollutant Discharge Elimination Permit System (NPDES) storm water general permits must be publish in before DNR can approve such permits. This should reduce the amount of time that a person wishing to do construction work might have to wait as a growing number of Iowa communities are principally served by newspapers that are published with increasing length of time between editions. HF 311 also proposes to amend 455B.186 to explicitly clarify that the proper use of aquatic pesticides is not prohibited in Iowa and amends another DNR Code provisions concerning permit for water diversion, storage and withdrawal (455B.265) to require DNR to allow an applicant an extension of time to submit more information to resolve a contested or complex application. The final aspect of HF 311 amends Iowa law to re-

Three Environmental Protection Bills Receive Final Legislative Consideration

move a requirement that homeowners seeking access to the Onsite Wastewater Assistance Program, which provides financial assistance to repair and upgrade residential private wastewater treatment systems such as home septic systems, must reside outside the boundaries of a city. This change will allow homeowners in unsewered municipalities to access this state assistance. The third bill getting final legislative okay on Tuesday was Senate File 388 that was approved by a unanimous 99-aye vote by the Iowa House. This bill removes an existing explicit prohibition against using Water Resources Restoration Sponsor program that currently prohibits a proposed sponsor project from including any parking lot aspects to allow for a parking lot projects if it is constructed in a manner that improves water quality and construction is consistent with field office technical guide published by the federal Natural Resources Conservation service of the United States Department of Agriculture, or the Iowa Stormwater Management Manual published by the Iowa Department of Natural Resources. This legislation is intended to open the door to sponsored project funding for emergent practices and technology that can signifi(Continued on page 7)

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change could include permeable parking lots where a significant portion of precipitacantly treat and conserve water quality from tion can flow through the pavement rather water that would run-off during precipitation than running off; or constructing parking lots events from parking lots. Some of the tech- in a manner where potential runoff is channologies that might be allowed by this neled into a receiving pond where sediment
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can settle and some nutrient could be detained before moving downstream in a watershed or where the parking lot run-off water can cool before it is discharged into stream.

DNR Seeks Public Comment Period for the 2010 Nitrogen Dioxide State Implementation Plan
On Thursday, April 4, 2014, the Iowa Department 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 implementation, maintenance, and enforcement of each NAAQS within 3 years of promulgation to the Administrator of the U.S. Environmental 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 comments on this proposed SIP revision on or before May 8, 2013. Written comments should be directed to Wendy Walker, Department of Natural Resources, Air Quality Bureau, 7900 Hickman Road, Suite 1, Windsor Heights, Iowa, 50324, fax 515-242 -5094, or by electronic mail to Wendy.Walker@dnr.iowa.gov. 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 515-2816061 to advise of any specific needs. A responsiveness summary will be prepared by the Iowa DNR following the close of the public comment period. The responsiveness summary will include any written or oral comments received during the public 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.

Human Resources
Governor Introduces the Healthy Iowa Plan
Last 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 changes 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 incentives for their plans if they completed various things such as efforts to quit smoking or nutrition counseling. Below are some highlights of the bill: 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. citizen, the person is a resident of Iowa, the person has a social security number, the person has a household income at or below 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

(Contact Carrie Kobrinetz at 5-2063.)

Benefits under the plan include: preventative 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 The purpose of the Healthy Iowa Plan is to establish and administer a plan to promote Following enrollment in the plan, a member week. is eligible for benefits for a 12 month periincreased access to health care, quality od. The bill requires DHS to review the health outcomes, and the use of personal members eligibility on at least an annual responsibility measures that encourage basis. Members of the plan get to choose people with incomes below 100% of the their primary care provider. In addition, federal poverty level to be cost-conscious consumers of health care and to participate providers have to be within 30 minutes or 30 miles of the persons place of residence. in healthy behaviors. The plan will be ad-

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(Contact Amanda Freel at (1-5230.)

Judiciary
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 eminent domain for the creation of a recreational lake. This common sense approach to property rights was approved with overwhelming 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 Republicans and 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 condemnations. Under HF 219 and the amendment to SF 272, a government entity cannot condemn land to create a lake for recreational purposes. It does not prevent condemnation for drinking water, but does require the entity condemning the land to prove that the amount of land needed for the lake is needed for drinking water and not for recreational 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 challenge the amount of land needed and to bring in a second engineer to evaluate water needs for the area. Both HF 219 and the Amendment on SF 272 have received overwhelming support from both Republicans and Democrats in the House, in fact, many Democrats sponsored HF 219 along with Republicans. Unfortunately, Senate Democrats have refused to protect private property rights and have failed to even hold a subcommittee for the legislation. House Republicans united with House Democrats are working to ensure this important issue is not ignored in the Senate. Some opposed to the eminent domain language have voiced concern that this will hurt communities during a drought and

prevent the creation of a lake for drinking water. This legislation does nothing to impact the creation of lakes for drinking water, 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.

cannot condemn land to create a lake for recreational purposes

Property owners in Iowa work hard to afford their land, House Republicans believe that land should not be taken, against the land owners will, for the creation of recreational lakes. Protecting the rights of private property owners is a bipartisan idea everyone should be able to support. House Republicans hope that by providing the Senate with an additional chance, they will step up to protect the individual property owner.

Natural Resources
House Passes Natural Resources Bills
This week, the House passed three Natural plete a hunter safety and ethics education course. The bill creates an exception for Resources bills: SF 146, SF 389, and SF residents who are 18 or older. They may 272. obtain a certificate of completion without Senate File 146 relates to watercraft regis- completing an in-person demonstration. This would allow people to complete the tration fees. Currently, boat registration fees go into the state fish and game protec- course online. tion fund for the enforcement of navigation Senate File 272 is a DNR bill. Currently, laws and water safety and a portion of an application for a certificate of title for a those fees go to controlling aquatic invasive species. The bill extends the provision snowmobile or ATV must either be signed allowing a portion of the funds to go to pro- or sworn to by a notary or include the applicants signed certification that statements grams to control aquatic invasive species made in the application are true. The bill until 2023. The bill passed 99-0. strikes the language relating to notarization of the application and requires only the Senate File 389 passed 89-9. Currently, signed certification by the owner. The bill people born after January 1, 1972 cannot also repeals the restore the outdoors proobtain a hunting license unless they com-

(Contact Carrie Kobrinetz at 5-2063.)

gram whose purpose is to provide funding for new and existing vertical infrastructure projects in existing state parks and other public facilities.

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House Republican Newsletter

(Contact Kristi Kielhorn at 2-5290.)

State Government
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 $50 million to Principal Real Estate Debt Fund, managed by Principal Real Estate Investors. Both are high-yield real estate debt funds that IPERS believes will show a return. Similar to mezzanine financing, the funds IPERS is investing in will provide high-interest loans to fill the lending-toequity 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 appraisals that often run 25 percent lower than those made prior to the downturn in the economy in 2008. Gap financers typically have little opportunity to recoup their

investments if a project fails. As a result, the funds charge significantly higher interest rates that provide quick rewards. IPERS investment will aid commercial real estate borrowers by investing in funds that will fill the gap between conventional financing and borrower equity and will hopefully make money for the retirees of IPERS in the process.

Transportation
censes from five years to eight years for drivers between the ages of 17 years, 11 months 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 estiThe bill changes the fee for a nonoperators identification card from five dol- mated to yield a savings of $1.8 million per lars to eight dollars and changes the period year for the Road Use Tax Fund. of validity from five years to eight years. It Senate File 224 also establishes a single also removes a provision that gave nondrivers license or non-operator identificaexpiring, non-operator identification cards tion card replacement fee of $10. Currently, to anyone age 70 or over but provides for the issuance of a non-operators identifica- the fee for a replacement of a drivers license or non-operators identification card tion card without fee to a person whose is $3 (for those lost or destroyed) or $1 drivers license if voluntarily surrendered due to physical or mental inability to drive. (voluntary replacement). This change will result in a savings of $2.3 million per year to the Road Use Tax Fund. The bill extends the validity of drivers liSenate File 224 passed the House this week by a vote of 99-0. The bill does several things regarding the fees for and validity of Iowa drivers licenses and nonoperator identification cards.

(Contact Kristi Kielhorn at 2-5290.)

Changes to Iowa Drivers Licenses and Fees Saves Road Use Tax Fund Millions
Finally, the bill amends a code section that allows 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 obtained for the same fee as other duplicate licenses provided in the bill. The same provisions apply with regard to non-operator identification cards. The bill now heads back to the Senate for further consideration.

Veterans Affairs
Federal VA Backlog Drawing Criticism
This past week, several Washington lawmakers have become highly critical of the federal Department of Veterans Affairs handling of the VA claims backlog. Some have asked the Department for an explanation and a plan to fix the problem, while others have called for Secretary Eric Shinseki to resign as head of the Department. has itself been plagued with problems that have instead lengthened delays

(Contact Colin Tadlock at 1-3440.)

Lawmakers have been getting very impatient with the VA system and have made their concerns vocal. Rep. Jeff Miller (FL), Chairman of the House Veterans Affairs Committee, has called for the resignation of Allison Hickey, the VAs head of benefits. With a backlog of nearly 1 million claims, Time Magazine recently published an editothe VA created the Veterans Management rial insisting that Secretary Shinseki resign. Benefits System (VMBS), an electronic sys- And on Tuesday, US House Speaker John tem which the agency is phasing in at its Boehner sent a letter to Secretary Shinseki regional offices in an effort to reduce the saying that that he hasn't seen any eviamount of claims. Unfortunately the system dence a new computer system has led to

any improvements or will eliminate the backlog and that he would like to quickly see a plan that provides specific benchmarks, deadlines and progress measurements on how the VA is addressing their problems. Waiting for disability benefits can be devastating for veterans and their families. Nearly 20,000 veterans died last year waiting to hear about their claims, and the suicide rate among veterans rose to an alarming 22 per day in 2010, according to a recent VA report.

House Republican Newsletter

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(Contact Dustin Blythe at 1-3452.)

Ways & Means

House File 336 A capital gains exemption for Iowa businesses passed on April 9, 2013 with a vote of 23-2. The bill creates a narrow exemption from Capital Gains taxes for employee-owners of Iowa based companies 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 qualify. 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 cultivation and production of algae to the definition of agricultural property. Used for animal feed, food, nutritionals or bio fuel production and the real estate must be an enclosed pond or land containing a photo bioreactor.

Three Ways and Means bills move to the House Floor in Bipartisan Fashion
be used as an electric power source and the sale of the materials used to manufacture, install, or construct wind energy conversion property used or to be used as an electric power source. The bill makes this provision equally applicable to hydroelectric conversion property.

impacts small business owners

HSB 180 - The bill deals with hydroelectricity conversion property and passed on Lake Red Rock has plans to build a power April 9, 2013 with a vote of 25-0. Currently, plant that would provide power to up to Code section 423.3, subsection 54, pro18,000 homes. vides a sales tax exemption for the sales price of wind energy conversion property to