Ways & Means Committee Report – Week 12, 2019

COMMITTEE ACTION:

SF 202 – Youth deer and youth wild turkey hunting licenses

SF 401 – Public utility right-of-way fee

SF 427 – IDALS/DNR departmental bill

SF 509 – Iowa Utilities Board (IUB) omnibus

SSB 1248 – Game preserve season extension for extreme weather

FLOOR ACTION:

SF 597 – Sales tax exemption for nonprofit blood centers

 

COMMITTEE ACTION:

SF 202 – Youth deer and youth wild turkey hunting licenses

SF 202 will re-establish the nine-day youth hunting seasons for deer and wild turkey prior to other hunting seasons. The 2019 seasons established by the Natural Resource Commission through rulemaking provided only three days (one weekend) for youth hunters before the other hunting seasons began. The goal of youth seasons is to provide the best-possible opportunity for a youth hunter to have a successful experience. The three-day season was not enough time. The bill also reduces the costs of youth deer and wild turkey tags by 50 percent. The current tags are the same price as those for adult hunters.
[4/3: 16-1 (No: Quirmbach)]

 

SF 401 – Public utility right-of-way fee

SF 401 relates to certain fees imposed on public utilities for the use of public rights-of-way [Ch. 480A].  Currently, local governments may impose fees on public utilities for operating facilities in public rights-of-way. A local government may only impose a fee for management costs that are caused by the utility’s activity in the right-of-way, and cannot require in-kind services in lieu of a fee. The bill modifies the definition of “management costs” and requires that such costs be direct and fully documented. It specifies that a local government may only recover a permit fee for management costs attributable to the utility’s requested use of an available public right-of-way, instead of management costs caused by the utility’s activity in the right-of-way. It provides that Code section 480A.3, relating to permissible fees imposed on public utilities, not prohibit voluntary agreements between a public utility and local government to share services to reduce costs and preserve public rights-of-way for future public safety purposes, and allows in-kind services in lieu of a fee for such voluntary agreements.
[4/3: 11-6, Party Line]

 

SF 427 – IDALS/DNR departmental bill

SF 427 makes changes within the Iowa Department of Agriculture and Land Stewardship (IDALS) and the Iowa Department of Natural Resources (DNR). Changes include:

  • The name of the Weather Bureau is changed to the Climatology Bureau to reflect current practice.
  • IDALS no longer must issue a report on agricultural liming material.
  • Changes Bulk Dry Animal Nutrient License from a one-year license to a two-year license which expires on July 1. The fee level remains the same cost per year.
  • IDALS rather than DNR may award demonstration grants to those who purchase motor vehicles that use alternative fuels. DNR has not issued a grant in the past 10 years.
  • Eliminating a provision authorizing IDALS and DNR to create one or more watershed demonstration projects.
  • Authorizing IDALS to use money from the Agriculture Management Account of the Groundwater Protection Fund to support programs, projects and activities to improve surface or ground water.

The committee adopted an amendment to strike the portion of the bill that would have eliminated the required report on agricultural liming material.
[4/3: Short Form]

 

SF 509 – Iowa Utilities Board (IUB) omnibus

SF 509 is a recommendation by the Iowa Utilities Board. The proposal:

  • Adds definition of “Competitive Local Exchange Service Provider” and “Local Exchange Carrier” that were repealed in Code section 479.96 in 2018. Other Code chapters relied upon the specific definitions. This adds the same definitions to Code 34A — 911 Emergency Telephone Systems and 423– Streamlined Sales and Use Tax Act to ensure that these agencies can continue their operations as intended.
  • Authorizes the IUB to appoint or designate an administrative law judge (ALJ) within IUB to conduct proceedings that are currently handled by the full Board. This will assist with IUB’s goals of delivering excellent customer service, ensuring compliance with legal requirements and maximizing employee effectiveness by using an employee with particular subject matter expertise.
  • Codifies current practice of issuing an advanced, estimated assessment to a limited number of utilities and billing all utilities for direct costs. Utilities that receive an advanced estimated assessment will be reconciled at the end of the fiscal year. This practice has significantly reduced the need for staff to send out statements issuing refunds and invoices for further assessments.
  • Allows the IUB to identify when payments will be remitted to the Dual Party Relay (DPR) Fund, which pays for relay services and equipment for those that require telecommunications assistance. This will help the telecommunications industry and IUB to more efficiently use time and resources. Currently, applicable telecommunications carriers must remit quarterly payments into the DPR.
  • Aligns Iowa’s civil penalties with the federal levels. This will eliminate the need for IUB to file legislation on a continual basis to match Pipeline and Hazardous Materials Safety Administration (PHMSA) dollar amounts for fines. This affects intrastate pipelines only; interstate pipelines are already subject to federal penalties.
  • Allows the IUB to use its existing authority to directly assess and bill the interstate pipeline company for the direct costs incurred for any inspection. This process was approved for intrastate pipelines in 2018, but interstate companies were inadvertently omitted. Currently, the companies must pay the IUB an annual inspection fee of 50 cents per mile of pipeline for each inch of diameter of the pipeline, which does not cover the IUB’s current annual costs of conducting inspections.
    [4/3: Short Form]

 

SSB 1248 – Game preserve season extension for extreme weather

SSB 1248 would allow a game preserve to apply to DNR for an extension for operating and providing hunting opportunities on the preserve. The DNR may grant a variance to the operator to extend the season beyond March 31 if the precipitation for the month of January, February or March of that season is above average for the county in which the preserve is located. The approval of the variance is at the discretion of the DNR. There is a $25 fee to apply for the variance. The season may not be extended beyond April 15, which is meant to provide safety to game birds during the prime nesting season.
[4/3: 12-5 (Yes: Republicans, Wahls)]

 

FLOOR ACTION:

SF 597 – Sales tax exemption for nonprofit blood centers

SF 597 would provide a sales tax exemption for tangible property sold or laboratory test services furnished to a nonprofit blood center, as long as the tangible property or laboratory testing services is directly and primarily used in the processing of human blood. The nonprofit blood centers must be registered with the federal Food and Drug Administration (FDA).

This exemption is needed because tax legislation passed last session (SF 2417) redefined the term “manufacturing” to apply to a narrower scope of activity. This change in definition subjected tangible property and laboratory testing services used by nonprofit blood centers to the sales tax. SF 597 replaces the sales tax exemption the nonprofit blood centers had operated under and makes the change retroactive to May 30, 2018, which is the date SF 2417 was signed into law by Governor Reynolds.
[4/2: 47-0 (Absent: Brown, Mathis, Zaun)]