Ways & Means Committee Report — Week 11, 2018

SF 329 – Industrial hemp;
SF 2100 – Pilot project for park user fees at Lake Manawa;
SF 2202 – Fees allowed under Land Recycling Program administered by DNR;
SF 2216 – SAVE Extension, Property Tax Relief and Additional Public Hearing;
SF 2283 – Fees for amended birth certificates;
SF 2301 – Medical Cannabidiol fees and background checks;
SSB 3198 – Air freight company income apportionment;
SSB 3202 – Civil court fines and fees;
HF 2370 – Post-adoption information. 

 

FLOOR ACTION:

HF 2370 requires the State Registrar of Vital Statistics to send a list of available post-adoption services along with the new birth certificate when it is mailed to adoptive parents. The list of services is to be provided by the Department of Human Services.
[3/21: 49-0 (Vacant: Dix)]

 

COMMITTEE ACTION:

SF 329 would establish the state regulation of industrial hemp production, marketing and research. The most recent federal Farm Bill removed the restriction on industrial hemp and allowed states to authorize the production of this product. Industrial hemp means any part of the cannabis sativa plant, whether growing or not, with a concentration of delta-9 tetrahydrocannabinol (THC) that does not exceed the maximum concentration for the plant as set under legislation. The bill establishes a rigorous structure for the registration of industrial hemp related businesses to ensure the product grown complies with federal restrictions and that all activities are legitimate. The bill does not allow a business registered to produce industrial hemp to manufacture cannabidiol oil.
[3/21: short form]

 

SF 2100 would establish a pilot program for park user fees at Lake Manawa State Park in Council Bluffs. The Department of Natural Resources (DNR) would collect fees from nonresidents to access the state park and allow DNR to charge different rates for facility rental to residents and nonresidents. This system would mirror how the state of Nebraska charges fees for nonresidents to use their state parks. Lake Manawa is a busy state park that attracts lots of nonresident visitors because the park does not charge fees for access, unlike similar parks in the area. This has led to high use, the need infrastructure repairs and a big demand on local law enforcement responding to illegal activity. It’s hoped the fees will cover park needs, while discouraging illegal activities. The pilot program would be repealed on July 1, 2021.
[3/21: short form]

 

SF 2202 increases fees the Department of Natural Resources (DNR) can collect under the Land Recycling Program (LRP) from up to $7,500 to up to $25,000. Site developers who voluntarily enroll in the LRP pay the fees. The increase will allow DNR to recoup more of the costs they incur from the program. Almost half of the sites issued certificates through the LRP program exceed the existing fee cap, so approximately $30,000 per year must be covered by the DNR’s Hazardous Waste Remedial Fund. Very few projects would exceed the new fee cap level.

The Land Recycling Program allows site developers to receive the state “sign-off” on the completion of a site cleanup. Upon DNR review and verification of the cleanup process, the developer is issued a “No Further Action” certificate, which helps them prove that known environmental contamination has been addressed. This adds value to the site for future development opportunities. Fees collected by the DNR in association with the site development are limited to actual costs incurred for services rendered, and are a small part of the overall costs of environmental cleanup. This increase is unlikely to impact a company’s decision to participate in the program.
[3/21: short form]

 

SF 2216 extends the Secure an Advanced Vision for Education (SAVE) fund and associated 1 percent sales tax by 20 years. The new sunset date for the program would be January 1, 2050. The bill makes a number of other changes to how the SAVE fund operates and how infrastructure projects using SAVE would be approved. These changes include:

  • Requiring voter approval for the revenue purpose statement for the use of SAVE funds. The revenue purpose statement must include language that would inform voters of what the funds would be used for in the event the revenue purpose statement is voted down. Without an approved revenue purpose statement, current law provides that SAVE funds are used by a district for debt repayment and to eliminate district infrastructure property under the Physical Plant and Equipment Levy (PPEL) and Public Education and Recreation Levy (PERL).
  • Increasing the allocation to the Property Tax Equity Relief Fund (PTER). Currently, 2.1 percent of SAVE funds go to the PTER fund. Under the bill, the allocation is increased by 1 percent each year when statewide sales tax revenue growth is more than 2 percent. The transfer from the SAVE fund to the PTER fund is capped at a maximum of 10 percent. The PTER fund is used by “property poor” districts that must assess an additional levy at a higher rate than the statewide average to generate necessary per-pupil funding by the district. Under PTER, those districts will get funds to “buy down” the additional levy amount. Any funds in excess of what is needed for equity will go toward equity payments for all districts with an additional levy.
  • Providing more transparency in the process if a school district intends to issue bonds for a school infrastructure construction project or intends to construct an athletic facility. The bill does this by requiring a public hearing on the proposal and allowing citizens to petition for a special election on the proposal.
  • Changing to the certificate of need process that small school districts must complete to use SAVE funding for construction projects. The bill would require the completion of a cost/benefit analysis comparing remodeling, repair and renovation of existing facilities to new construction. The bill adds the benefit and effects of the new construction on student learning as a consideration for the School Budget Review Committee when reviewing an application. Currently, the certificate of need process is limited to school districts with fewer than 250 students or 100 high school students. The bill increases those amounts to 350 and 140 but a later amendment will return those levels to where they are currently.

The intent is to amend the bill on the floor after the Senate and House Republicans settle their differences.
[3/21: short form]

 

SF 2283 allows the clerks of court to receive the fee from adoptive families or their representatives that will be sent to the Department of Public Health along with the certificate of adoption so that a new birth certificate can be processed in a timely manner.
[3/21: short form]

 

SF 2301 relates to the collection of fees and the performance of background investigations under the medical cannabidiol act. The Iowa Department of Public Health can use fees from applications to manufacture or dispense cannabidiol to administer the Medical Cannabidiol program. The Division of Criminal Investigation at the Department of Public Safety will conduct background checks and can use fees to cover that cost as well.
[3/21: short form]

 

SSB 3198 would establish a new method for the apportionment of Iowa-based income for corporate income tax purposes for qualified air freight forwarding companies. Businesses that operate in and out of Iowa apportion their income among those states based on where the income is generated. Most apportionment is done based on the portion of gross sales made in the state. Airlines have a special method of apportionment that is based on the share of air miles flown in the state compared to others. The bill would change the method for apportioning the income of the companies that operate air freight forwarding service through an affiliated airline to the same method used for companies that operate airlines. The amendment adopted in committee delays the changes in the bill until tax year 2019, phases the change in over five years instead of four, and maintains the current apportionment method for other company income.
[3/21: 9-6 (No: Bolkcom, Dotzler, Hogg, Jochum, McCoy, Quirmbach)]

 

SSB 3202 establishes dedicated funding for the Department of Criminal Investigation crime lab. A lack of staff and equipment has led to delays in testing sexual assault kits. The bill increases numerous scheduled fine amounts and increases the non-scheduled fine amounts for simple misdemeanors, serious misdemeanors, aggravated misdemeanors, “D” felonies and “C” felonies, but reduces the criminal surcharge that is added to all criminal fines. The bill removes the Law Enforcement Initiative Surcharge, which is added to fines for certain crimes. The bill also increases certain civil filing fees. The increased fine and civil filing fees will be deposited into the General Fund. The criminal surcharges will then be distributed for specific purposes (such as cities and counties, victim compensation fund and the crime lab).
[3/21: short form (No: Hogg)]