Caucus Newsletter - Iowa House Republicans

Thursday, March 19, 2018
Appropriations
www.IowaHouseRepublicans.com
(Contact Brad Trow at 1-3471)
Register Editorial Board – Uninformed and
Unaware of Facts Regarding Wallace Building
With the conclusion of the 2016 legislative
session, scribes, pundits, and other
“experts” come out of the woodwork to pass
judgement on the session’s accomplishments and to complain about what did not
happen. In a May 9 editorial entitled “Let’s
finally fix the state’s money pit”, the Des
Moines Register’s editorial board displayed a stunning lack of knowledge and
command of the facts when putting together its position that the state has a moral
obligation to borrow money to fix the Wallace State Office Building.
In reviewing the history of the efforts to
address the concerns with the Wallace
Building, the Register wrote:
“In 2013, state lawmakers approved plans to gut the interior
of the building and rebuild it at
a cost of $40 million to $50 million.”
As with so many things in this editorial, this
assertion is simply not correct. During the
2013 legislative session, the General Assembly was presented a report by the Department of Administrative Services that
recommended the state demolish the old
Des Moines General Hospital building and
renovate Wallace. The estimated cost of
updating the building was $50.7 million. At
the same time, downtown Des Moines was
experiencing a glut of vacant commercial
rental space.
The Governor vetoed this language, since
the funding did not go to his top infrastructure project - renovation of the State Historical Building. An additional, unspoken concern was while the bill provided funding to
plan for the renovation and moving employees out, the funds needed to do the actual
work was not provided. It was possible for
the state to begin renting substantial commercial space in downtown Des Moines,
and the Legislature to be persuaded to just
demolish Wallace and enter into a longterm rental agreement. Administrators with
the agencies located in Wallace expressed
this concern as the bill moved through the
process during the 2013 session.
In reviewing this session’s actions regarding Wallace, the Register stated:
“Shortly before state legislators adjourned last month, Senate Democrats approved a plan
to bond for upgrades to the
Wallace building, but that idea
was rejected by the Governor
and House Republicans.”
It is true that House Republican leaders
and Governor Branstad stated their opposition to any bonding for infrastructure, after
the Culver/Judge I-Jobs boondoggle. But
that is all that happened since the Iowa
Senate never cast any vote on a plan to
issue bonds to fix the Wallace Building.
Senate Democrats never approved any
plan to bond for upgrades. House RepubliInstead of appropriating the full amount for cans could only state their opposition to
the renovation of Wallace, the Rebuild Iowa bonding as there was never any plan to
Infrastructure Fund appropriations bill for
formally reject.
FY 2014 and FY 2015 provided only $4.4
million for immediate roof repairs and plan- Instead of passing an actual bonding plan,
ning, study, and design of the Wallace
the Senate voted to provide $1 to renovate
Building. The only specific instructions in
Wallace, along with a $1 dollar appropriathis language in HF 638 was that another
tion for renovating the State Historical
$3.1 million was to be used to move emBuilding and $1 for the Iowa Law Enforceployees out of Wallace and to find rental
ment Academy. Why? So Senate Demospace for them to occupy by December 31, crat negotiators could then force the issue
2013.
into conference committee negotiations
with the House. But this “brilliant” scheme
(Continued on page 2)
Inside this issue:
Appropriations
1
Agriculture
2
Commerce
3
Economic Growth
4
Education
5
Environmental
Protection
7
Human Resources
9
Judiciary
9
Labor
9
Natural Resources
10
Public Safety
10
State Government
11
Transportation
11
Veterans Affairs
12
Ways and Means
12
Page 2
House Republican Newsletter
(Continued from page 1)
was quickly recognized and thwarted as the
House found the needed three dollars to
match the Senate proposal. By matching the
three $1 proposals, the individual projects
became ineligible for conference committee
negotiations. If the Senate Democrats were
truly serious about the Wallace Building, as
the Register erroneously opined, then there
would have been an actual plan sent to the
House.
With their review of the past fifteen years, the
Register came to the following conclusion:
“The Governor knows full well it’s
almost impossible for governments, businesses, or individuals
to pay for major brick-and-mortar
projects without borrowing.”
Over the past two decades, the state has
generally adopted the position that the cost of
building and maintaining infrastructure should
be done on a “pay as you go” status.
The only time that the state abandoned this
approach since the creation of the Rebuild
Iowa Infrastructure Fund in the mid-90’s, was
between 2007 and 2010, when Democrats
controlled the Legislature and Chet Culver
was governor. Then, the insatiable desire to
spend drove them to bond and borrow for the
construction of a new maximum-security prison in Fort Madison and expansion of the
women’s correctional facility in Mitchellville.
That ravenous desire for spending also allowed them to put together the I-Jobs program.
ture committed to funding three construction
projects:
■
Construction of phase II of the ISU Bioengineering Complex, $60.4 million;
■
Renovation of the UI Dental School facility, $29 million; and
■
Renovation and conversion of UNI Bartlett Hall, $21 million.
Once these projects were completed, the
Legislature approved funding in 2014 for
three new projects:
■
Construction of ISU Biosciences Building, $52 million;
■
Construction of UI College of Pharmacy
Building, $66.3 million; and
■
Renovation of UNI Schindler Education
Center, $32.9 million.
“As the governor also knows, the
short term costs associated with
interest payments on capital improvements are often dwarfed by
the long-term costs associated
with doing nothing.”
Any homeowner can tell you that there is
nothing “short-term” about interest payments.
Whether it be a 15 or 30 year mortgage, interest payments are there every month, and they
never insignificant. The same can be said
about bond payments. The “short term costs”
the Register envisions are really a 20-30 year
payment plan, with gaming tax revenue as the
source of repayments. Sound familiar? It
should, because that is the same source of
payments for the Vision Iowa Program bonds
and the I-Jobs bonds.
In FY 2017, the first $69 million of gaming
revenue collected by the state will go to make
the state’s bond payments for those bonds.
During the 2015 session, another project was That figure is approximately 25 percent of the
added when the Legislature committed $40
tax revenue that is supposed to be used on
million towards the ISU Student Innovation
infrastructure projects each year. The RegisCenter. All of these projects were funded with ter’s editorial board chooses to ignore this
dollars from the Rebuild Iowa Infrastructure
simple fact - if the state did not have to
Fund on a pay as you go basis. A basis the
make the bond payments on the DemoRegister said was almost impossible.
crats’ I-Jobs scheme, the Rebuild Iowa
Infrastructure Fund would have enough
The pay as you go approach has not been
money to pay for the complete renovation
limited to Board of Regents projects. The last
of the Wallace Building in one year. In FY
major construction project on the Capitol
2017, the state will pay $52.6 million from the
Complex was the building of a structure to
RIIF for the I-Jobs debt service. One can only
house Iowa’s judicial branch. This project
wonder what the state could do to update and
was completed in 2003, at a cost of $30 milimprove state buildings if it didn’t have the Ilion to the state. And how did the state pay
jobs millstone hanging around the taxpayer’s
for the Judicial Building? As future NFL hall
necks.
of famer Randy Moss would say, “Straight
cash, homey.”
Hopefully in the future, the Register will have
Since the start of the 2011 legislative session,
at least examined the facts and reviewed
The Register also expressed its fervent belief
the General Assembly has invested RIIF
history before e espousing its beliefs on a
that there are no downsides to the state takfunds into major construction projects at the
similar topic.
three state universities. In 2011, the Legisla- ing on more debt:
Agriculture
(Contact Lew Olson at 1-3096)
Cost-Share Available for Water Quality Practices Statewide
On Thursday, May 12, 2016, the Iowa
Department of Agriculture and Land
Stewardship (IDALS) issued a press release in which Iowa Secretary of Agriculture Bill Northey announced that the
2016 sign-up period is open for cost
share funds to help farmers install nutrient reduction practices. This program
has been popular with farmers interested
in adding additional practices to their
operation. Practices eligible for this
funding are cover crops, no-till or strip till,
or using a nitrification inhibitor when applying fertilizer.
$15 per acre. First-time cover crop users
will receive priority consideration for this
assistance. Farmers are only eligible for
The cost share rate for farmers planting cost share on up to 160 acres. The
cover crops is $25 per acre ($15 per acre funds will be made available in July, but
for past cover crop users) and for farmfarmers can immediately start submitting
ers trying no-till or strip till is $10 per
applications through their local Soil and
acre. Farmers using a nitrapyrin nitrifica- Water Conservation District office.
tion inhibitor when applying fall fertilizer
Farmers are still encouraged to visit their
can receive $3 per acre. Farmers who
local Soil and Water Conservation Dishave already used cover crops on their
trict office to inquire about additional opfarm are eligible for a reduced rate of
(Continued on page 3)
Page 3
House Republican Newsletter
will do so again in FY 2017 if the legislatively approved appropriation of $4.4portunities for cost share funding through million from the General Fund in HF
other programs offered at their local
2454 and the $5.2-million from the ReSWCDs. A Soil and Water Conservation build Iowa Infrastructure Fund in SF
Districts directory can be found on
2324 are enacted by Governor Branwww.IowaAgriculture.gov under “Hot
stad. These funds will allow the Iowa
Topics.”
Department of Agriculture and Land
Stewardship to continue to encourage
IDALS received $9.6 million for the Iowa the broad adoption of water quality pracWater Quality Initiative in fiscal 2016 and tices through statewide cost share assis(Continued from page 2)
tance as well as more intensive work in
targeted watersheds. In the last 3 years,
over 2,900 farmers in each of Iowa’s 99
counties have put in new nutrient reduction practices on over 294,000
acres. The state provided about $6.2
million in cost share funding to help farmers try a water quality practice and Iowa
farmers provided more than $6.2 million
of their own resources to support these
water quality practices.
Commerce
(Contact Brittany Telk at 1-3452)
Wellmark White Paper Released: Explanation of the Proposed Insurance Rate
Last week, Wellmark filed its proposed
2017 rates for individual and family plans
■
covered by the Affordable Care Act
which translates to members under 65
years old who purchased an individual
ACA plan January 1, 2014 or after effective date. The proposal includes a 3843% increase for 30,000 customers;
these customers represent less than 2% ■
of Wellmark’s overall business. The proposed rates do not affect employerbased health insurance plans, members
with Medicare Supplement plans, or preACA individual plans – these include
grandfathered plans sold prior to January
1, 2014. The proposal needs to be ap■
proved by the State Insurance Commissioner.
Since filing its proposal, Wellmark has
given out an explanation as to why the
hikes are occurring, and some other
background information:
■
Large claims are increasing at a
much faster rate; there has been a
200% increase in claims with the
overall cost of care exceeding
$100,000.
bers are driving up 25% of costs for
the entire group, which equals $47
million.
Special enrollment periods; those
who enroll during these times cost
almost double the amount of others.
Also, there is an overall industry
trend in members cancelling coverage after receiving services -a problem not just specific to Wellmark.
Wellmark factored two ACA provisions, which were put into place to
stabilize the cost and market risk,
which are set to expire at the end of
this year. The reinsurance and risk
corridor were designed to help protect health insurance companies
against unpredictable losses or unmanageable risk, and keep consumer’s premiums from getting out of
control.
Prescription drug cost; the cost and
volume of specialty drugs is still the
primary driver and increased by
100% over last year.
Wellmark is also using the full 2015
claims (listed below) to forecast 2017
costs, in order to meet the May 11, 2016
proposal filing deadline.
80/20 principle; a few drive costs for
everyone. For this group in 2015,
Wellmark has seen that 300 mem-
■
Page 4
House Republican Newsletter
Economic Growth
(Contact Brittany Telk at 1-3452)
Economic Development Authority: April Board Meeting Recap
Last month, the IEDA held its monthly
board meeting, where it approved approximately $89 million in capital investments throughout the State:
■
■
■
■
■
■
Cottingham & Butler: an insurance
broker, one of the largest in the US,
which provides risk management
and employee benefits services will
be expanding in Dubuque. The
company was awarded a $300,000
forgivable loan via HQJP.
ufacturing company with a project in
Elkader to rebuild and remanufacture Caterpillar haul trucks. The
board awarded $180,000 in direct
assistance and tax benefits from the
HQJP.
■
Crossroads Cold Storage, LLC: this
company is going to construct a new ■
cold storage facility in Des Moines to
handle customer demand. The
board awarded the project tax benefits via HQJP.
Edge Business Continuity Center
Data Managed Services Cloud
Technology: this company provides
data center infrastructure for a cloud
computing service, located in Altoona. The board awarded tax benefits via HQJP for this project.
■
vides assistance to innovative businesses that are pursuing proof of commercial
relevance and marketability of a technology:
■
Power Distributors: an Ankeny
wholesale distributor based in Columbus, OH which provides distribution, sales, customer service and
tech support. The board was award- ■
ed tax benefits from HQJP.
Veyance Technologies, Inc: located
in Mt. Pleasant which manufactures
industrial hose products for international markets and is looking to expand as an effort to grow the business. The board awarded Veyance
$56,000 through a forgivable loan
and tax benefits via HQJP.
■
Denim Labs: a technology start-up in
Des Moines that is building cloudbased enterprise software for insurance and financial service companies -$25,000 POCR grant
MetaCommunications: an enterprise
software company in Iowa City
which is developing projectmanagement solutions for creative
and marketing teams -$300,000 loan
from the Innovation Acceleration
Fund
NaturemiRI: a biological research
company in Coralville -$100,000
loan from the Demonstration Fund
■
Weiler, Inc: a parts manufacturer
located in Knoxville, is proposing a
project to accommodate growth, was
awarded $500,000 in financial assistance and tax benefits from the
■
HQJP.
Optimum Fleet Health: a maintenance guidance provider for dieselbased transportation fleets located in
Davenport -$25,000 POCR grant
■
PFE LLC: a baby and pet gate company located in Johnston - $100,000
loan from the Demonstration Fund
■
Swine Tech: located in New Sharon,
a business that is focused on pork
industry development technology $25,000 POCR grant
Excell Marketing: a company that
distributes sports trading cards in
Des Moines is considering wareThe Board also made awards to startup
house expansion. The board award- companies, with monies coming from:
ed tax benefits from the HQJP.
the Demonstration Fund, a fund that incentivizes high-technology prototype and
Hydrite Chemical Company: one of concept development activities. It prothe largest manufacturers and disvides assistance to small and mediumtributors of chemical products in the sized companies in Iowa to commercialUS, and provides expertise in chemi- ize advanced manufacturing, bioscienccal distribution, sanitation, food ines and IT industries to help businesses
gredients, organic processing, liquid grow to the point where they can attract
sulfur salts, water treatment, foam
private-sector funding; the Iowa Innovacontrol and compliance managetion Acceleration Fund, which is dement. The company was awarded
signed to support commercializing retax benefits from the HQJP for the
search, launching new startups and acproject to be completed in Waterloo. celerating private investment and industrial expansion efforts; and the Proof of
Mobile Track Solutions, LLC: a
Commercial Relevance Fund, which proheavy earth moving equipment man-
Performance Livestock Analytics: a
software compny that aims to help
livestock producers become more
sustainable and profitable located in
St. Ansgar -$25,000 POCR grant
More details from April’s meeting can be
accessed here. The Board will meet
again Friday, May 20.
Page 5
House Republican Newsletter
Education
Contact Jason Chapman at 1-3015)
Education Accomplishments for the 2016 Legislative Session
While this particular legislation session
was quieter than normal on the education front, there were some successes
that bipartisan compromises brought to
the Governor for signature that will help
provide more opportunities for Iowa’s
students. Here is a recap on the session:
tions bill, which funds higher education, scholarships and grants for students, and the Department of Education, among a few other things,
surpassed $1 billion for the first time.
■
Funding
Funding for education, both higher education and PK-12 education, continued
to see sustainable and adequate in■
creases. Some significant new milestones were achieved in funding for education this year:
■
$1 billion - The Education Appropria-
$3 billion - The state’s school funding formula, which provides the
state’s share of PK-12 funding and
provides the basic level of support
for schools passed the $3 billion
mark for the first time.
On the K-12 funding front, the legislature
settled on a 2.25% per pupil amount increase for PK-12 schools for the 2016/17
school year starting this fall. This increased the per pupil amount provided
by the state from $6,446 to $6,591 and
sent an additional $135.1 million new
state dollars to schools. This represented 77% of all new available revenue for
the fiscal year.
Over the past 6 years the state has put
over $640 million new dollars into the
$5 billion - The total funding received school system through the school fundby PK-12 schools, which includes
ing formula:
state dollars, local dollars, and federal dollars, surpassed $5 billion for
the first time.
Fiscal Year (school year)
Percent Growth
State Cost Per Pupil
State Spending Increase
FY12 (11/12)
0%
$5883
$178 million
FY13 (12/13)
2%
$6001
$30 million
FY14 (13/14)
2% + 2% one-time
$6121
$65 million + $57 million
FY15 (14/15)
4%
$6366
$148 million
FY16 (15/16)
1.25%
$6446
$84.8 million
FY17 (16/17)
2.25%
$6591
$135.1 million
6-yr total increase
For Higher Education, Iowa’s Regents
Universities (Iowa, Iowa State and UNI)
and Community Colleges also saw increases in funding. Despite tight budget
constraints and the majority of new available revenue going to PK-12 schools,
the legislature voted to provide $6.3 million new dollars to the Regents Universities and just over $3 million new dollars
to Community Colleges.
“new milestones were
achieved in funding for
education”
$640.9 million + $57 million
For Community Colleges, this brings the
total 6-year increase for them to over $45
million, a 29% increase in funding since
2011. The Regents Universities are up
over $55 million in that same time span,
a 10% increase.
Fiscal Year
Comm. Colleges
Increase
Regents
Increase
FY12
$164 million
$5 million
$522 million
-$20 million
FY13
$177 million
$13 million
$562 million
$40 million
FY14
$193 million
$16 million
$559 million
-$3 million
FY15
$201 million
$8 million
$583 million
$24 million
FY16
$201 million
$0
$589 million
$6 million
FY17
$204 million
$3 million
$596 million
$7 million
Total
$45 million (29%)
$54 million (10%)
Page 6
House Republican Newsletter
Early literacy
The legislature took some action this
year on Iowa’s Early Literacy Initiative. A
bill was passed that clarifies the law that
created the initiative by ensuring if 3rd
grade retention is the route that is chosen for a student, it is done thoughtfully,
with all factors considered, and with parental consent, and not based solely a
single assessment score.
meet certain requirements and to provide
opportunities for students.
Regarding the offering of core classes, if
a district is unable to find a teacher to
provide certain courses, they can get a
waiver for the requirement and use the
state’s Iowa Learning Online to provide
the class to ensure students have access
to classes they might not otherwise have.
Districts were also given the ability to
hire coaches on a temporary basis in
Additionally the focus of any literacy con- cases where a coach might not othercern for students was turned positive by wise be available to keep extra-curricular
referring to those needing work as
activities available for students in smaller
“persistently at risk” of not meeting
districts.
benchmarks, instead of labelling them
“substantially deficient.”
Despite not finding a compromise on
creating new regulations around Iowa’s
The legislature also specified the require- anti-bullying laws for the past few years,
ments of Iowa’s teacher preparation insti- some protection for bullied students was
tutions to ensure they are equipping new put in place. The Governor last year
teachers with the tools they need in
issued an executive order providing
reading theory and strategies and adschools additional tools to address the
dressing reading disabilities to the best
issue locally. The legislature also providof their ability.
ed a way for students who transfer
schools to leave situations in which they
The final action taken was on delaying
were harrassed or bullied to continue
the potential retention of 3rd grade stuwith any sports they may have been pardents who do not meet reading proficien- ticipating in without having to sit out the
cy and do not meet any of the exempusually required 90-day wait period.
tions specified in law. Part of this was to
give schools additional time to prepare
Private schools
for final implementation of this law and
part was based on the lack of funding for The state’s private schools, both PK-12
summer reading programs, which are
and higher education, also saw a few
required. The Governor put together a
positive results of the legislative session.
pilot program with a mixture of private
and state funds that will run in a number The ability for PK-12 private schools to
become accredited by approved, indeof districts this summer to develop best
pendent accrediting agencies, rather
practices for when the summer reading
requirement goes into effect in the sum- than the state, was made permanent.
The law previously had a sunset date
mer of 2017.
which kept some schools from making
Rural schools and protection for stu- the transition, despite it being a positive
step for many of these schools. They
dents
can now achieve accreditation through
Some minor efforts were made to ease
entities aligned with their core missions
the burden on smaller school districts
and provide great opportunities for their
who have trouble finding employees to
students.
The Iowa Tuition Grant saw a $526,000
increase as well, taking the total grant to
just under $49 million. This will ensure
that more families have the ability to
choose a school that might otherwise
have been unavailable to them due to
cost.
Career and Technical Education Reform
And last, but far from least, the state’s
Career and Technical Education system,
which provides high school students
pathways into high-paying, rewarding,
and in-demand technical careers, a
much needed updating.
The bill updates and modernizes Iowa’s
Secondary Career and Technical Education (CTE) delivery system. New authority and resources help reduce skill shortages, enhance economic growth, and
ensure all of Iowa’s students have access to high-quality, globally-competitive
CTE programs. The bill establishes opportunities for collaboration between high
schools, Community Colleges, and local
industries to create career pathways for
students. It aligns guidance provided to
students in schools, programming available to them, and work-based learning
experiences in the community to be help
students see what options are available
to them and become successful learners
and practitioners if they go that route.
The legislature and Iowa’s education
system recognize that the traditional
route to a 4-year liberal arts degree is not
the best option for all students when a
well-paying job is available after successfully completing a program in the
CTE field, especially when students can
being that program while still in high
school.
Iowa’s High School Graduation Rate Increases Again
In what’s becoming a yearly tradition,
fortunately, a report issued by the Department of Education last week shows
that for the fourth consecutive year, the
state’s graduation rate has increased.
And at the same time, fewer students are
dropping out of high school in Iowa. This
increase helped Iowa maintain, yet
again, the top graduation rate in the
country.
Graduation rates for the class of 2015
increased for all but two subgroups of
students, English language learners and
multi-racial students.
The statewide graduation rate is 90.5%,
marking a four-year trend. That’s an increase from 89.68% in 2013, 89.26% in
2012, and 88.32% in 2011.
Page 7
House Republican Newsletter
Four-year graduation rate
Annual dropout rate 9-12
Class of 2015
Class of 2014
Class of 2013
All Students
90.8%
90.5%
89.7%
2014-15
2013-14
2.5%
2.7%
Class of 2012
89.3%
2012-13
2.8%
Class of 2011
88.3%
2011-12
3.2%
Class of 2010
88.8%
2010-11
3.4%
This speaks well to Iowa in the national
conversation as graduation rates become a larger focus nationally. According to a report by GradNation, the national graduation rate is at an all-time high at
82.3%. However, with new focus on
graduation rates as part of the NCLB
successor, ESSA (Every Student Succeeds Act), more work is to be done nationally. Iowa became the first state in
the nation, last year, to reach 90%, with
20 others on pace to reach that mark as
well by 2020.
All Students
ACT College Readiness Benchmark
Scores. An ACT benchmark score is the
minimum score needed on an ACT subject-area test to indicate a 50% chance
of obtaining a B or higher or about a 75%
chance of obtaining a C or higher in the
corresponding credit-bearing college
courses, as determined by the ACT.
We are doing a fantastic job of ensuring
our students stay in the classroom for a
full academic career, giving them the
best chance at post-high school success.
We need to also ensure that we’re equipWhile the stats are certainly something to ping those students with the skills they’ll
be proud of, it should also be looked at
need when they leave the high school
with an eye for improvement. Last year’s classroom and enter either postACT scores for Iowa show that only 31% secondary education or the workforce, a
of Iowa’s ACT test takers met all four
thought echoed by Director Wise: “While
graduation is a critical step, we cannot
rest until all kids graduate with the skills
they need to succeed beyond high
school.
Further information
Graduation and dropout rates for individual school districts can be found here:
https://www.educateiowa.gov/documenttype/graduates-0.
GradNation report on national graduation
data can be found here:
http://www.gradnation.org/report/2016building-grad-nation-report
Environmental Protection
(Contact Lew Olson at 1-3096)
DNR to Host Six Public Hearings on Concentrated Animal Feeding Operation
On April 13, 2016, the Iowa Administra1.
tive Bulletin was published which included an Environmental Protection Commission notice rule (ARC 2496C) concerning
a large, extensive and substantial update
of numerous DNR Livestock environmental regulation rules and regulation. For
the most part, the noticed rules propose
changes that will implement legislation
passed since 2011 that have been on
hold as Iowa Department of Natural Resources (DNR) first interacted with the
United States Environmental Protection
Agency (EPA) in reaction to a lawsuit
2.
from certain environmentalist groups and
then worked out with the EPA a plan of
stepped up targeted enforcement, primarily scheduled onsite inspection of
certain regulated livestock operations.
The notice is also part of DNR planned
3.
scheduled 5-year regulatory review.
Primary aspects of this noticed rule includes:
Implementation of 2012 legislation
SF 2172 that exempt farrowing and
gestating swine facilities from the
definition of ‘qualified confinement
feeding operations’ that require aerobic waste treatment handling systems because it was discovered that
prior exposure to certain swine diseases prior to farrowing enabled
gestating sows to develop immunity
from certain disease prior to delivery
of piglets;.
Implementation of 2012 legislation
HF 2292 that allows DNR to regulate
large commercial fish production
facilities comparable to confinement 4.
feeding operations.
Implementation of 2013 legislation
HF 512 that provides for
‘mothballing’ of livestock feeding
operation building or discontinued
operation in which livestock produc-
5.
tion has ceased, but the owner
wants to retain the building for potential reactivation when market situations improve that encourage repopulation or the transferred to another owner who will repopulate the
buildings. This mothballing/
discontinuation of operation allows
for lower DNR annual manure management plan compliance fees and
removes the current requirement
that when building are no longer
occupied by animals on an ongoing
basis, they must be decommissioned and dismantled.
Implementation of 2015 legislation
HF 583 that regulated animal truck
wash facilities similar to animal feeding operation in regards to truck
wash effluent.
Allow solids from open feedlot oper(Continued on page 8)
Page 8
House Republican Newsletter
er waivers in distance separation
matters; and
(Continued from page 7)
ations to be regulated by the Iowa
Department of Agriculture and Land ■
Stewardship as dry bulk animal nutrient products.
6.
Provide better classification or requirements in rules and rescind unnecessary and outdated rules, lists
and internet addresses. Some of the
changes include;
■
revised definition of ‘public use area’;
■
updated/expansion listing of Iowa
lakes afforded special distance separations;
■
■
additional provisions and language
needed to be consistent with federal
regulatory requirements and rules.
DNR has scheduled 6 public hearing
about the state near it regional field offices and in areas with high animal production capacity starting in the fourth week
of May (23rd) and ending in the first
week of June (3rd) with all starting times
at 10 A.M. Public hearings at which persons may present their views either orally or in writing will be held as follows:
114 E. 6th Street, Carroll, Iowa
May 25, 2016 10 a.m. Clay County Administration Building; Boardroom
300 W. 4th Street, Spencer, Iowa
May 26, 2016 10 a.m. Muse-Norris Conference Center; North Iowa Area Community College
500 College Drive, Mason City, Iowa
May 31, 2016 10 a.m. Washington County Conservation Board; Education Center, Marr Park
May 23, 2016 10 a.m.
DNR Air Quali2943 Highway 92, Ainsworth, Iowa
ty Building; Roosevelt Room
7900 Hickman Road, Windsor Heights,
clarification of what structure are to
Iowa
be used for measuring distance separations;
May 24, 2016 10 a.m.
Carroll County
Courthouse; Downstairs Meeting Room
clarification of the scope of landown-
June 3, 2016 10 a.m. Northeast Iowa
Community College; Dairy Center, Room
115
1527 Highway 150 South, Calmar, Iowa
Iowa Companies Team with Pollution Prevention Intern Program
On Thursday, May 12, 2016, the Iowa
Department of Natural Resources (DNR)
published it electronic newsletter
‘EcoNewsWire’ which contained an article announcing DNR has selected 10
organizations to participate in its 2016
Pollution Prevention (P2) Intern Program.
Upper-level college and university students work on-site at Iowa companies for
12 or 24 week paid internships to research solutions and implement pollution
prevention strategies that will increase
efficiency, reduce costs and help meet
companies environmental goals. Since
2001, more than 175 Iowa companies,
hospitals, universities and government
agencies have participated in the unique
program, accumulating more than $78.1
million in savings as a result of using
resources more efficiently and improving
environmental performance. Environmental benefits achieved include the
reduction of:
■
8312 tons of hazardous waste;
■
377 million kilowatt hours of electrici- Sergeant Bluff: CF Industries
ty;
■
9.8 million therms of energy.
Organizations participating in the 2016
program (listed alphabetically by town):
Ames: Hach Company
Bettendorf: Alcoa, Inc.
Bloomfield: City of Bloomfield
Charles City: Zoetis
Clinton: City of Clinton Wastewater
Treatment Plant
Des Moines: Bridgestone Americas Tire
Operations
■
more than 1.47 billion gallons of water;
Des Moines: Principal Financial Group
■
219,100 tons of solid waste;
Knoxville: Hormel Foods Corporation
Le Mars: Wells Enterprises, Inc.
Funding for the P2 Intern Program includes federal grants and portions of
solid waste tonnage fees and cost share
contributed by the host companies. Pollution Prevention Services also provides
confidential, non-regulatory, environmental technical assistance in the form of
assessments, Environmental Management Systems development assistance,
workshops, and access to the P2 Resource Library. These services are offered at no cost to help companies reduce expenses through source-reduction
strategies to improve process efficiency
and reduce or eliminate waste. For more
information on the Pollution Prevention
Intern Program and a list of 2016 projects, visit: www.iowap2services.com.
Case summaries of the 2016 projects will
be posted to this site in the fall.
House Republican Newsletter
Page 9
Human Resources
(Contact Carrie Malone at 5-2063)
300,000 Medicaid Claims Paid Since April 1
On April 1, the Medicaid program transitioned to a managed care system. Three
companies are now overseeing the Medicaid program: Amerigroup Iowa, Amerihealth Caritas, and United Healthcare.
Since the transition, over 300,000 Medicaid claims have been paid according to
the Department of Human Services.
The Medicaid claim processing time is
currently averaging about 10 days.
That is four days faster than the time
allowed under the managed care contracts. Contacts with the DHS call center
have also declined during the last month.
Call volume was as high as 3,000 calls
per day. Currently, there are about
1,500 calls per day to the call center.
DHS indicates that this is good news
because people have less questions and
the transition is going well.
“processing time is
currently averaging
about 10 days”
As the state moves forward with managed care, legislative oversight of the
program remains vitally important. This
session, legislation was passed that requires an unprecedented amount of data
and reporting from the federal government, DHS, and the managed care companies to be given to the legislature.
These reports will be focused on consumer protection, improvements in recipients’ health and program integrity. The
bill that includes these provisions is
House File 2460, the Health and Human
Services budget. The Managed Care
reporting requirements begin on page 97
of the bill. The bill has yet to be signed
by Governor Branstad.
Judiciary
(Contact Amanda Wille at 1-5230)
Second Amendment Battle Continues in Federal Courts
Do individuals have a right to keep and
bear arms? How much regulation can the
government impose on law-abiding citizens who wish to own firearms? Can a
person carry their firearm outside of their
house for protection? These questions,
and others, are being asked in court cases across the country. This week, a federal court ruled a portion of a Washington DC firearms laws unconstitutional
and placed an injunction on the law
pending further action. Iowa does not
impose strict limits like Washington DC,
New York, and other states, but it is still
important for Iowans to pay attention to
what is happening in these states and in
the courts since any future Supreme
Court ruling could have a substantial
impact on Iowans rights.
The Second Amendment of the United
States Constitution, along with multiple
court rulings, have made it clear that the
right to keep and bear arms is an individual right for citizens. Unfortunately ,
some states and cities don’t agree and
have tried to limit this right in various
ways. Washington DC has been at the
forefront of this move. In 2008, the United States Supreme Court ruled in the
case of District of Columbia v Heller, that
the Second Amendment protects an individual right to possess a firearm and to
use that firearm for lawful purposes, including self-defense.
Washington DC made changes to their
laws since the Heller decision, but the
changes have not necessarily been con-
Labor
sistent with the Constitution. This week,
a key provision of the District of Columbia’s gun law was struck down as unconstitutional, according to a federal judge.
The law allowed police to require individuals wishing to have a permit to carry to
show “good reason.” In his ruling, U.S.
District Judge Richard Leon determined
that the right to keep firearms extends to
inside and outside the home and that the
city’s law probably ran afoul of the constitution. He imposed a preliminary injunction on the law, pending further litigation.
While it is unclear what will happen next
in this case, it appears there is still a long
legal battle ahead for people who live in
Washington DC before they will secure
their right to keep and bear arms.
(Contact Mackenzie Nading at 1-3440)
Supreme Court Makes Critical Decision in Michigan Right to Work Case
Home-based child care providers in
Michigan absorbed a huge defeat last
month when the United States Supreme
Court refused to hear arguments on
Schlaud v. UAW. This case is a class
action law suit filed by 5 home-based
child care providers, on behalf of thousands of their fellow caregivers across
the state, who were hoping to reclaim
millions in illegally-confiscated union
dues.
In the state of Michigan home-based
child care facilities receive a small subsidy from the state to help with the cost of
their operations. Because of this subsidy, former Michigan Governor Jennifer
Granholm, along with the Michigan Legislature, designated home-based childcare providers as “public employees.”
Michigan is a non-Right to Work State,
meaning that public employees may be
forced to pay union dues as a condition
of their employment. This action of defining home-based care providers as public
employees means that these providers
are now forced to accept “representation”
and pay union dues to a labor organization.
If the idea of an in-home day care provider being forced into representation by a
union seems ridiculous, the Supreme
(Continued on page 10)
Page 10
House Republican Newsletter
This case originated in California, where
veteran teacher Rebecca Friedrichs
Court would actually agree. In 2014 the spoke out against the dues she was beCourt ruled on the case Harris v. Quinn, ing forced to pay in to the California
and said that “homecare unionization
Teacher’s Association (CTA). California,
schemes,” just like the one Michigan is
like Michigan, may force public employfacing, violate the providers’ First
ees to pay union dues, even if that emAmendment rights. The decision of the
ployee chooses to opt out of union repreCourt to not hear arguments in Schlaud
sentation. The rationale for this is that
v. UAW remains a mystery, but one
those dues go toward expenses the uncould make a reasonable argument that ion occurs during collective bargaining,
if it had made its way to their bench the
which presumably will benefit all teachruling would have mandated that these
ers, regardless of whether or not they are
providers be reimbursed for the payment union members.
of these unlawful union dues.
However, research shows that 80% of
There seems to be an unfortunate patthe dues paid to the CTA are not spent
tern reoccurring currently with regards to on collective bargaining, but instead on
the Supreme Court and rendering decicampaign endorsements for candidates
sions on cases involving employee’s
of CTA’s choice. Freidrichs raised the
Right to Work. In March of this year, the awareness that her hard earned money,
Court announced a grid lock decision, 4- almost $1,000 a year, is being used to
4, in a case that would have shifted pow- fund campaigns for candidates she may
er back to public employees in many
not share values with or chose to vote
states across the nation.
for. This, she argues, is an infringement
(Continued from page 9)
on her First Amendment rights.
This same rationale is the driving force
behind the home-based care provider’s
argument in Michigan; their hard earned
money is being forced into dues for a
union in which they do not wish to be
represented. Those dues are in turn
being spent on political endorsements
that these employees do not agree with.
Many would argue this is a clear violation
of the First Amendment.
The practice of forced union dues will be
able to continue, perhaps indefinitely,
because of the gridlocked decision issued in March, and because the Court
refuses to take up important cases such
as Schlaud v. UAW. This is a great loss
to public employees all across the nation
as they will continue to be forced to pay
into a union that they do not wish to be
represented by, even if their employment
is within a private home taking care of
children.
Natural Resources
(Contact Carrie Malone at 5-2063)
Loess Hills Wildlife Area Becoming a Bird Conservation Area
Friday, June 3, there will be a public ceremony to dedicate the Loess Hills Wildlife Area and State Park as a Bird Conservation Area. The ceremony takes
place at 3PM. The ceremony is hosted
by the Iowa Department of Natural Re-
sources. The public is welcome to attend the event.
The Iowa DNR anticipates that this new
Bird Conservation Area will attract bird
enthusiasts from throughout the region.
Public Safety
Watching wildlife brings in $318 million to
Iowa every year, and this new Conservation Area will support growing the local
tourism economy.
(Contact Amanda Wille at 1-5230)
Alternatives to Drunk Driving
With the warm summer months quickly
approaching, more Iowans are finding
time to enjoy a cold drink outside with
friends. But with this fun comes some
serious dangers. Drunk driving is on the
rise across the state. According to the
Iowa Department of Transportation there
were 123 deaths related to drunk driving
last year. This accounted for 38% of all
traffic deaths in Iowa and those numbers
are expected to rise this year. There are
alternatives to drinking and driving and
it’s up to Iowans to make a responsible
choice and find a sober ride home.
According to Iowa Department of Public
Safety a first offense OWI is a serious
misdemeanor punishable by up to one
year in jail and a fine of $1,250, or both.
A person must also serve a minimum of
48 hours in jail. In addition to criminal
penalties, a person convicted of an OWI
can lose their license for 180 days if they
submitted to a chemical test. During that
time a person may apply for a temporary
restricted license. When all the costs are
taken in to consideration, a first offense
OWI, without injury, can cost close to
$3,000 and that’s not counting any the
cost of SR 22 insurance, an ignition interlock device or attorney fees.
Alternatively, taking a cab, Uber or even
staying in a hotel will cost you much less
and save you the embarrassment of asking friends and family for rides while your
licenses is under suspension. Taking a
cab in the Des Moines metro area for 11
miles will cost you approximately $29.
Taking an Uber will cost between $11
and $20, depending on the time of day.
Even staying in a hotel is substantially
less expensive than an OWI charge. By
choosing a sober ride home, you’re not
only saving yourself money, your potentially saving a life.
If you are over the age of 21, a blood
alcohol concentration (BAC) of .08 or
above is considered legally drunk, even
if you just “had a few.” Those under the
age of 21 can lose their license if their
BAC is above .02.
Page 11
House Republican Newsletter
State Government
(Contact Monica Young at 1-3626)
RIIF: Still the Regents Infrastructure Fund
This year it was no secret the Rebuild
Iowa Infrastructure Fund (RIIF) Budget
had limited resources with which to fund
infrastructure projects. Before the Conference Committee on RIIF, House Democrats spoke out against the House version of the bill and lobbied for increased
funding for specific projects. Some of
these projects included the Polk County
Court House, the Sullivan Brothers Korean Museum, and the USS Iowa. There
was also opposition to the relatively
small amount to be appropriated for Major Maintenance, which has a list of projects that totals hundreds of millions of
dollars.
gents Projects. The Regents projects
include the following: 1) ISU - Student
Innovation Center, 2) ISU - Biosciences
Building, 3) UI - Pharmacy Building Renovation, and 4) UNI - Schindler Education Center Renovation. These projects
received their FY 17 funding through
standing appropriations that had been
allocated in previous years.
House Republicans have attempted to
make sure Regents are following best
practices when it comes to bidding. One
way House Republicans attempted to do
so was through a bill (HF 450) that
makes the Regents use the traditional
competitive bidding process that applies
While House Democrats were critical that to all other state entities. It became apcertain projects received limited funding, parent that the Regents utilize a bidding
they did not rise in opposition to where
process called design build, which is a
the bulk of funding from RIIF is going to; process where “one entity – the designthe Regents. For FY 17 RIIF had roughly build team – works under a single con298 million dollars in total resources, with tract with the project owner to provide
55.4 million dollars being spent on Redesign and construction services.” House
Transportation
Republicans expressed concern that
Regents offer up a sum of money and
ask what they can get for it, rather than
giving parameters of the project and asking how much it will cost. This bill was
taken up in committee, where all but one
of the Democrats voted no.
However, the RIIF Conference Committee members did recognize that the Regents building projects were consuming
too much of the RIIF budget, especially
considering the state’s critical infrastructure needs. Thus the RIIF Conference
Committee agreed to add language into
the RIIF bill that the intent of the RIIF
Budget is for infrastructure that is critical
to the function of government. This intent
language will hopefully help future leaders of the General Assembly prioritize
the maintenance of state government
infrastructure.
(Contact Monica Young at 1-3626)
TRENDING FROM THE TOP: Shared-Use Transportation Policies
On May 3, 2016 the US DOT made an
announcement that there will be an
“opportunity to apply for $8 million in federal funding for projects that demonstrate
innovative approaches to mobility issues
in public transportation.” This funding
opportunity is part of Mobility on Demand, which is a larger plan to increase
access to transportation through shared
resources. These shared resources include bike-sharing, car-sharing, and ridesharing. The goal of shared-use transportation is to “help connect the growing
industry with transit agencies, cities and
communities across the nation.” Agencies and policy centers alike have conducted several studies showing the perceived benefits of shared transportation.
ty Center came to the conclusion that:
“1) The more people use shared modes,
the more likely they are to use public
transit, own fewer cars, and spend less
on transportation overall, 2) As shared
mobility continues to grow in significance, public entities should engage with
the private sector to ensure that benefits
are widely and equitably shared, 3) Both
the public and private sectors are eager
to collaborate to improve paratransit service using emerging approaches and
technology.”
use and on-demand services; and a
broad range of other mobility solutions.
This grant opportunity can be viewed at
http://www.grants.gov/web/grants/search
-grants.html.
Iowa is also looking into shared-use
transportation policies to help serve populations that have limited access to
transportation. An Iowa DOT report on
underserved populations and policies
that would increase the ability of these
populations to use transportation can be
found at http://www.iowadot.gov/transit/
Accordingly, the US DOT stated projects regulathat could receive the $8 million in fund- tions/2014TransportationCoordinationinI
ing could include the following:
owa.pdf. The report concluded that Iowa
smartphone apps; innovative fare payneeded to better coordinate its transporment and finance mechanisms; connect- tation to provide more accessibility and
A recent study by the Shared-Use Mobili- ed vehicles and infrastructure; sharedbetter service.
Page 12
House Republican Newsletter
Veterans Affairs
(Contact Kristi Kielhorn at 2-5290)
Indianola City Council Approves Rebates for Veterans’ Homes
Recently, the Indianola city council approved three home rebates for veterans
who are first-time home buyers. Each
rebate is worth $1,500 a-piece. The city
has budgeted to provide up to $10,000
worth of rebates annually. The rebates
offered by the city were created to compliment the Home Base Iowa program.
Since Home Base Iowa was passed in
2014, cities and counties in this state
have strived to become Home Base Iowa
Communities. HBI Communities must
offer additional incentives above and
beyond the statewide benefits. These
communities must have at least 10 percent of area businesses committed to
hire veterans. Additionally, HBI communities must offer resources from local
veteran organizations, businesses, economic development organizations, and
schools to assist veterans and their fami-
lies feel at home.
For more information on what counties
and cities are HBI communities—visit
HomeBaseIowa.gov.
“created to compliment
the Home Base Iowa
program”
Ways & Means
(Contact Kristi Kielhorn at 2-5290)
Prairie Meadows Could Lose Tax-Exempt Status
For the last 18 months the Internal Revenue Service (IRS) has been investigating
whether Prairie Meadows Racetrack and
Casino should keep its tax-exempt status. It appears that the conclusion by the
IRS is that the casino is not operating as
a tax-exempt entity.
Prairie Meadows is organized as a 501
(c)(4) social welfare organization. That
designation is for organizations that
“exclusively benefit the social welfare
and lessen the burden of government.”
That basically means that the profits go
to charity and governmental organizations.
“takes in about $2 billion
annually”
According to the IRS, the casino is one
of the top revenue-generating nonprofit
social welfare agencies in the country
and takes in about $2 billion annually in
gross receipts. According to the casino
about 92 percent of that is given back to
the gamblers in the form of prizes and
winnings.
Additionally, Iowa Code requires the casino give 3 percent of profits to charitable
organizations in order to hold a gambling
license in this state. The casino states
that since opening in 1989 it has returned $1.4 billion to the community in
the form of scholarships, funding for cultural projects, and gaming taxes.
Prairie Meadows will have 30 days to
respond to the initial IRS determination
and make an argument for why it should
retain its tax-exempt status.