Please note that this week Iowa Press will not air on Sunday.

State Senator Joe Bolkcom argues for tax credit reform at a Thursday news conference at the Iowa Statehouse. From left to right: Senator Pam Jochum of Dubuque, Senator Bill Dotzler of Waterloo, Senator Rich Olive of Story City, Senator Swati Dandekar of Marion, Senator Bolkcom, Representative Paul Shomshor and Senator Matt McCoy.

House and Senate legislators released the details today of tax credit reform legislation that will bring accountability and common sense to Iowa’s tax credit spending.

“We have listened to the public’s anger at abuses and we are responding with historic reforms that will reduce Iowa’s tax credit liability by more than $115 million from the current total of $525 million,” said State Senator Joe Bolkcom of Iowa City. “We are ending some tax credits, cutting many remaining credits, and dramatically increasing accountability for all tax credit spending.”

“We are shifting dollars away from large Wall Street companies and moving some of those dollars to support struggling Main Street businesses whose success will benefit more Iowans,” said State Representative Paul Shomshor of Council Bluffs. “In these tough times, we must give continue to support small businesses.”

“Tax credit spending will no longer be a secret to Iowa taxpayers and they will no longer be on auto-pilot,” said Bolkcom, who chairs the Senate Ways & Means Committee. “Iowans don’t know if the money spent on tax credits is producing the promised jobs and economic growth. That will change this year.”

The reforms include the suspension of the film tax credit program for two years; lowering the cap from $185 million to $120 million on business tax credits; cutting the Iowa Fund of Funds contingent tax credits from $100 million to $60 million; an overall cut of 10 percent for many other tax credit programs and an on-going oversight process which will regularly evaluate all tax credits for results. Credits which do not produce results will be fixed or eliminated. In addition, the Supplemental Research Activities Tax Credit will be cut in half for large corporations and increased to help small businesses.

“Every part of the budget is being cut and that will now include tax credits,” said Shomshor, who chairs the House Ways & Means Committee. “The public will know who receives each tax credit, the purpose of that credit, and the dollar amount spent on it. As we give tax credit spending the same careful, regular, open examination as the rest of the budget, we will both save money and make sure the dollars we do spend benefit Iowa middle class families.”

“Tax subsidies can no longer trump educating our kids when it comes to our public spending priorities,” added Bolkcom. “We all support effective economic development programs, but they must be far more transparent and accountable for creating good paying jobs.”

The legislation was developed by a group of House and Senate legislators, including: Sen. Joe Bolkcom, Sen. Roger Stewart, Sen. Swati Dandekar, Sen. Rich Olive, Sen. Pam Jochum, Sen. Bill Dotzler, Sen. Matt McCoy, Rep. Paul Shomshor, Rep. Doris Kelley, Rep. Tyler Olson, Rep. Janet Petersen, Rep. Donovan Olson, and Rep. Roger Thomas.

“The updated revenue estimate confirms what most Iowans already knew: The lingering national recession continues to hit Iowa workers, families, communities and businesses.

“While the new estimate gives us hope that our economy has stabilized and we’re in the beginning stages of recovery, we know Iowa families continue to struggle to make ends meet. Everybody is continuing to cut back, including state government. That’s why we are keeping our focus on budgeting responsibly, reorganizing state government, finding other savings wherever possible, and keeping our state’s fiscal house in order. 

“Our intention is to deposit the projected new revenues into the state’s ‘rainy day’ fund to avoid the need for mid-year cuts in education, health care and public safety in the upcoming fiscal year. As announced earlier, a portion of the ‘rainy day’ fund will be used next year to protect Medicaid services for vulnerable Iowans, including critical health care services.

“In the final days of the 2010 session, Democrats are more committed than ever to balancing the budget without raising taxes, continuing to listen to Iowans, and creating more accountability in state government. We are moving ahead with an economic plan to ensure that middle-class Iowa families and small business recover from the national recession stronger than ever.”

On March 11, The Senate and House of Representatives congratulated University of Iowa football coach Kirk Ferentz by passing resolutions to honor the coach and his team. Ferentz was in the chamber to witness the passage of the resolution, and he received a standing ovation before thanking the Legislature for their support.

The nationally ranked Hawkeyes won 11 games in 2009, wrapping up an exciting season with a 24-14 victory over Georgia Tech in the Orange Bowl.

The full text of Senate Resolution 108 is below, followed by photos of Coach Ferentz at the Capitol.

Senate Resolution 108 reads:

A Resolution to celebrate the highlights for the 2009 football season of the University of Iowa football team.

WHEREAS, the 2009 University of Iowa football team will be remembered as one of the most entertaining, talented, and successful teams in Hawkeye history; and

WHEREAS, the 11 wins equals the program’s 2002 record for victories in a season; and

WHEREAS, the regular season win total of 10 was achieved for only the fourth time; “and WHEREAS, for the first time ever, the Hawkeyes won the first nine games of a season; and

WHEREAS, Iowa played in a January bowl game for the sixth time in eight years; and

WHEREAS, Iowa won a Bowl Championship Series-caliber bowl game for the first time since 1959 in beating Georgia Tech in the 2010 FedEx Orange Bowl 24-14; and

WHEREAS, the Hawkeyes finished the 2009 season with an 11-2 overall record and a 6-2 Big Ten mark, finishing in a second place tie; and

WHEREAS, the Hawkeyes have won at least nine games for the fifth time in the last eight years and for the seventh time in school history have won 10 games or more; and

WHEREAS, the Hawkeyes were ranked seventh in both major polls at the conclusion of the season, the highest final ranking for the program since 1960; and

WHEREAS, defensive end Adrian Clayborn was named Most Valuable Player of the FedEx Orange Bowl; and

WHEREAS, Coach Kirk Ferentz was named Big Ten Coach of the Year for the third time; and

WHEREAS, offensive tackle Bryan Bulaga was picked as the Big Ten’s Offensive Lineman of the Year; and

WHEREAS, All-Big Ten first teamers included Bryan Bulaga (OL), Dace Richardson (OL), Tony Moeaki (TE), Adrian Clayborn (DE), Pat Angerer (LB), Tyler Sash (DB), and Amari Spievey (DB), and five additional Hawkeyes were named to the league’s second unit; and

WHEREAS, Bryan Bulaga and Pat Angerer were named first-team all-Americans, Tyler Sash was a second team choice, and Adrian Clayborn made the third team; and

WHEREAS, the Iowa Hawkeyes have earned 70 wins since the start of the 2002 season, which places them at a tie for the 16th highest total in Division I football; and

WHEREAS, Iowa’s football record in the 2000 decade was 80-45 (.640), a record that ranks as the best decade in Iowa football history, based on total wins;

NOW THEREFORE, BE IT RESOLVED BY THE SENATE,

That the Senate congratulates the University of Iowa football team for a stellar season and looks forward to a great season in 2010.

Pictured from left to right: Senator Tom Reilly of Oskaloosa, Kirk Ferentz, Senate President Jack Kibbie of Emmetsburg, Senator Bob Dvorsky of Coralville, and Senator Joe Bolkcom of Iowa City.

 

Kirk Ferentz poses with University of Iowa graduates, Senate clerks, and Hawkeye fans Susan Elgin (left) and Mary Shields (right).

 

SF 2363 – Department of Revenue Technical Updates

SF 2364 – Income Tax Form Check-Offs

SF 2373 – Utility Replacement Tax Administration

SF 2374 – Department of Revenue Policy Bill

SF 2375 – Streamlined Sales Tax Agreement

FLOOR ACTION:

SF 2363 is the annual technical corrections and updates bill for the Department of Revenue. It makes technical corrections only, not policy changes, to Quality Jobs Enterprise Zone Program, Redevelopment Tax Credit, franchise fees, individual income taxes, corporate income taxes and sales tax permits and deletes references to repealed Code sections. [3/8: 49-0 (Excused: Schoenjahn)]

SF 2364 reenacts the Child Abuse Prevention Program and the joint Volunteer Firefighter Preparedness Fund / Veteran’s Trust Fund as check-off options on the individual income tax form. When the same four income tax return checkoffs have been on the income tax return for two consecutive years, the two checkoffs for which the least amount has been contributed through March 15 of the second tax year are automatically repealed. [3/10: 48-0 (Excused: Heckroth, Sodders)]

FLOOR AND COMMITTEE ACTION:

SF 2373 includes the recommendations of the Utility Replacement Tax Task Force. It provides a means for allocating the assessed value of a new cogeneration facility between property that is subject to a local assessment and the property that is subject to the replacement tax, and to exempt the property subject to the replacement tax by applying a credit representing the value of such exempt property against the total value of the facility. [3/4: short form (No: Hamerlinck)] [3/9: 50-0]

COMMITTEE ACTION:

SF2374 is the annual Department of Revenue (IDR) policy bill. It makes changes to several areas:

• Requires a 260E Withholding Program Report and Plan;
• Extends the period to claim certain real estate tax exemptions;
• Allows data sharing between Iowa Workforce Development and IDR for purposes of worker misclassification;
• Extends penalties for false or frivolous refund claims; and
• Changes interest accrual on refunds from 32 days to 62 days. [3/4: 11-6 (party-line)]

SF 2375 conforms Iowa Code to the requirements of the Streamlined Sales Tax Agreement. [3/4: short form]

HF 755 – Expands eligibility for the Injured Veterans Grant Program

HF 2110 – Unemployment benefits for ‘trailing spouse’

HF 2137 – Iowa Code of Military Justice, State military service

HF 2197 – Veterans Day work time off

HF 2449 – Disabled veteran-owned businesses

HF 2454 – Job opportunities in state government for disabled veterans

FLOOR ACTION:

HF 755 expands eligibility under the Injured Veterans Grant Program to include any veteran who has suffered an injury in the line of duty requiring at least 30 consecutive days of hospitalization at a military hospital but who wasn’t evacuated from the operational theater in which the veteran was injured. The bill passed the House 99-0. [3/8: 49-0]

HF 2110, an Iowa Workforce Development (IWD) recommendation, expands unemployment benefits for spouses who are forced to leave their jobs when service members receive a military reassignment or deployment. The benefits will be paid from the interest on the Unemployment Compensation Trust Fund, not from any increased employer contributions. IWD officials estimate an annual cost of $201,600. The individual must prove that he or she was forced to leave employment because of this deployment or relocation, similar to IWD requirements applicable to other “quit” situations. For example, it would be difficult to prove that the trailing spouse had to leave employment to join the service member during a three-month training assignment.

Illinois, Wisconsin, Minnesota and Nebraska already have laws allowing this option for military families. To date, legislation to provide unemployment insurance benefits to spouses of military personnel who left employment through no fault of their own to relocate because of a military assignment in another area, has been introduced or enacted in 35 states.

It is a priority of the USA4 Military Families initiative, regarding family well-being issues that can only be addressed by states. USA4 Military Families has worked through the Department of Defense-State Liaison Office to develop state/military partnerships with the goal of removing unnecessary barriers and significantly improving the quality of life for military families.

The bill passed the House on a vote of 56-44 and now goes to the Governor. [3/9: 35-14   (party-line except  Hahn,  Houser, Kapucian, Ward voting “yes;” Excused: Bolkcom)]

HF 2137 is a recommendation by the Military Division of the Department of Public Defense concerning state military service and the Iowa Code of Military Justice (ICMJ).  It states that the Adjutant General, a Deputy Adjutant General and the State Quartermaster are not considered state employees while performing state military service except for purposes of the Iowa Public Employees’ Retirement System and state employee health, dental and other benefit plans. It strengthens punitive provisions relating to wrongful use, possession, distribution or manufacture of certain controlled substances to put Iowa in line with the federal Uniform Code of Military Justice (UCMJ). Process issued under the ICMJ is amended to provide reciprocity to include other states, the United States and its territories and possessions in accordance with the law of the place where the witness or evidence sought is located. It also updates language to be clear and consistent with the UCMJ. The bill passed the House 98-0. [3/9: 50-0]

HF 2197 requires an employer to give each employee who is a military veteran holiday time off on November 11 for Veterans Day if the employee would otherwise be required to work on that day, unless providing time off would impact public health or safety or would cause the employer significant financial or operational disruption.

The employer may choose whether it is paid or unpaid time off and must notify the employee at least 10 days prior to Veterans Day. If the employer cannot provide time off for all employees who requested it, the employer must deny time off to the fewest number of employees needed to protect public health and safety or to maintain minimum operational capacity.

The employee must give the employer at least one month’s advance written notice of his or her intent to take off Veterans Day. To qualify as a military veteran, the employee must provide the employer with a federal certificate of release or discharge from active duty or a similar official federal document. HF 2197 passed the House on a vote of 97-2. [3/8: 34-14 (party-line except Hahn, Kapucian, Ward voting “yes;” Excused: Schoenjahn, Zahn)]

HF 2449 [similar to SF 2284 by Veterans Affairs] requires the Department of Economic Development to encourage and assist small businesses owned and operated by disabled veterans in obtaining state contracts. The bill passed the House 98-0. [3/8: 49-0]

HF 2454 requires the Iowa Departments of Veterans Affairs, Workforce Development, Education, and the U.S. Departments of Veterans Affairs and Labor to develop programs to inform disabled veterans about federally funded job-training opportunities in state government and to develop other job-training programs to qualify for federal funding.   Note: The bill passed the House 91-0 on February 22, the same day that the companion bill, SF 2295, unanimously passed the Senate. HF 2454 now goes to the Governor. [3/9: 49-0]

HF 2456 – Texting while driving

HF 2466 – Drivers education instructor certification

FLOOR ACTION:

HF 2456 relates to texting while driving. On March 9, the Senate refused to concur with the latest version that the House approved.

Under the House version of the bill, teenagers who hold a restricted work license, an instruction permit, an intermediate license or a minor school license may not use any electronic communication device or electronic entertainment device while driving.

Under the Senate version of the bill, no driver may write, read or send a text-based message while driving. The Senate version of the bill’s provisions included these features: :

• The Department of Transportation (DOT) cannot suspend a driver’s license because of a texting violation.
• A text message is defined as a text-based message, instant message or e-mail.
• A person may not read, write or send a text message while driving a motor vehicle unless the vehicle is at a complete stop off the roadway.
• GPS devices are exempt.
• A device that sends text messages using voice commands is exempt.
• A person may enter a telephone number for placing a phone call.
• Local jurisdictions may not create laws on the use of electronic communications devices while driving.
• A peace officer may not confiscate a mobile electronic device.
• A violation is a simple misdemeanor punishable by a scheduled fine of $30. The total ticket will come to $100.50 (including court costs) and does not require a court appearance.
• A violation is not a moving violation.
• Officers will only issue warnings from July 1, 2010, to June 30, 2011.
• The DOT, in cooperation with the Department of Public Safety, will establish educational programs to foster compliance.
• For a violation causing serious injury, there may be a penalty of $500 and/or a suspension of driver’s license for up to 90 days in addition to the scheduled fine. For a violation causing death, there may be a fine of $1,000 and/or a driver’s license suspension of up to 180 days in addition to the scheduled fine.
• Repeat offenders are not subject to habitual offender laws.

The bill now returns to the House.

HF 2466 allows a street and highway driver education teacher to be involved in one minor accident within a two-year time period and still be able to teach the street and highway driving portion of drivers education. It also clarifies the certification responsibilities of the Departments of Education and Transportation for drivers’ education instructors.

The Department of Transportation or the Department of Education may still disqualify a person from street and highway teaching if one of these two circumstances applies:

1. The teacher contributed to an accident that caused the death or serious injury of another person.

2. It was the teacher’s second accident within a two-year period, and the teacher contributed to the accidents.

The bill is effective upon enactment and is retroactive to July 1, 2008. [3/10: 34-16 (party-line except for Noble, Ward voting “yes”)]

SF 2067 – Ethics Regulations for Executive & Legislative Branch, Local Officials & Employees

HF 777 – Open Records

HF 2488 – Appointment of Young Adults Boards, Commission & Councils

FLOOR ACTION:

SF 2067 is the proposed Ethics and Campaign Disclosure Board bill on changes to the ethics laws in Chapter 68B. The Senate accepted a House amendment which strikes the ability of the Board to retain 10 percent of a civil penalty that is imposed for a violation of a law or rule under its jurisdiction as a repayment receipt.  As amended, highlights include:

• Section 1 excludes from the definition of an administrative “rule” an advisory opinion issued by the Ethics Board under Iowa Code section 68B.32A (12), the same as is already in the law for Attorney General’s opinions.   
• Section 2 clarifies that the limitation under CURRENT law on public officials and employees selling goods or services to state agencies does NOT apply to sales done as part of official state duties. The application of the law has always been that the limitation applied only when the public official or employee was making a sale as part of his or her outside employment.
• Section 3 requires an executive branch official or employee who makes a permissible sale of a good or service, as part of private sector employment, to a state agency to file a report with the Ethics Board disclosing the sale. This is similar to other types of reports the Board receives. This does NOT apply to the legislative branch.
• Section 4 makes a technical correction to the duties of the Ethics Board. The current provision lists a number of reports that the Board receives under Chapter 68B. However, the current list does not capture all of the reports filed with the Board. This amendment resolves this issue. 
• Section 5 directs the Ethics Board to adopt rules to sanction an individual who provides false information to the Board during an investigation. There have been some instances over the years when someone has provided false information as part of an investigation and this type of conduct should be a separate violation.
• Section 6 makes the bill effective upon enactment. [3/8: 49-0]

HF 777 makes changes to Iowa’s Open Meetings and Open Records laws (Chapters 21 and 22). HF 777 passed the House April 16, 2009, by a vote of 99-0. The Senate State Government Committee adopted an amendment (S-5046) that strikes everything after the enacting clause and becomes the bill. As amended, HF 777 passed the Senate State Government Committee on February 1 by a vote of 11-4 (Behn, Feenstra, Wieck, Hartsuch voting no).

Highlights include: 

• Creates a New Section. 23.1 – Iowa Public Information Board Act. The purposes of this chapter is to provide an alternative means to secure compliance with and enforcement of the requirements of chapters 21 (Open Meetings) and 22 (Open Records) through the Iowa Public Information Board to all interested parties of an efficient, informal and cost-effective process for resolving disputes.
• Board Appointed. Iowa Public Information Board consists of five members appointed by the Governor and subject to confirmation by the Senate. Membership is balanced as to political affiliation and gender.  Members serve staggered four-year terms. The Board selects their chair and shall employ a director who serves at the executive officer of the Board. 
• Compensation and expenses. Board members are paid a per diem (7E.6 $50 per day) and are reimbursed for actual expenses while on office board business. Per diem and expenses are paid from funds appropriated to the Board.
• Election of remedies. An aggrieved person may seek enforcement of the requirements in Chapters 21 and 22 by either filing an action or by filing a timely complaint with the board.
• Board powers and duties. The Board shall have all of the following:
  • o Employees, subject to the merit system, except the director and attorneys.
  • o Adopt rules – 17A
  • o Issue declaratory orders with the force of law for Chapters 21 and 22.
  • o Receive complaints alleging violations of Chapter 21 and 22. Seek resolution of complaints through informal assistance or mediation and settlement, formally investigate complaints and decide whether there is probable cause that a violation has occurred. 
  • o Request and receive from a government body assistance and information as necessary in the performance of its duties. Confidential records shall continue to maintain their confidential status.�
    • o Issue subpoenas.
    • o Issue orders with the force of law, determining whether there has been a violation of Chapters 21 or 22. Require compliance, impose civil penalties and impose any other appropriate remedies calculated to declare, terminate or remediate any violation of those chapters.
    • o Represent itself in judicial proceedings, through its own staff, the Iowa Attorney General’s staff or through other attorneys retained by the board.
      • o Make training opportunities available.
      • o Disseminate information to inform the public of their right to access government information.
      • o Prepare and transmit reports to the Governor and General Assembly regarding their activity.
      • o Make recommendations to the Governor and General Assembly by proposing legislation:

1. Categorization of government records.
2. Public employment applications.
3. Information unduly invading personal privacy.
4. Tentative, preliminary or draft material.
5. Serial meetings of less than a majority of a governmental body.
6. Definitions of what constitutes a governmental body for purposes of Chapters 21 and 22.

• o Aid the General Assembly in evaluating the impact of legislation affecting public access to government information.
  • o Conduct public hearings and other meetings as necessary.
  • o Review the collection, maintenance and use of government records by lawful custodians.
• The Board is required to adopt rules regarding the filing of a complaint with the Board.
• The Board shall not have jurisdiction over the judicial or legislative branches, or over the Governor or the Governor’s office.
• Iowa Public Information Board – Transition Provisions
  • o Members are appointed by September 1, 2010.
  • o Employees shall not be hired prior to July 1, 2011.
  • o The Board is required to submit a report to the Governor and General Assembly by July 1, 2011. The report shall include a job description for the executive director, goals for the board operations and performance measures to measure achievement of the board’s goals.
• Implementation of the Board is contingent upon an appropriation.
• The Act (except for transition sections) takes effect July 1, 2011. [3/10: 35-13]

HF 2488 directs all state appointive boards, commissions, committees and councils to consider at least one member who is a young adult. Young adult is defined as a person at least 18 but less than 35 years of age. [3/9:  36-14]

HF 2200 – Carrying of a gun in a vehicle on a public highway

FLOOR ACTION:

HF 2200, as amended by the Senate, would allow a person to carry a loaded magazine in a vehicle as long as it has been detached and kept separate from the weapon and the weapon is stored in a secure manner. Currently, the law says the weapon and all magazines must be unloaded during transport. By detaching the magazine, these weapons can be effectively unloaded. [3/8: 48-0]

SF 2199 – Requiring manufactured home retailers to carry out title application

SF 434 – Nuisance Properties

FLOOR ACTION:

SF 434 makes changes to nuisance properties. When a citation of a municipal infraction is issued and sent to the clerk of the district court, it must include a legal description of the affected property. When the clerk of district court receives the citation, the clerk is to index the citation in the index book if the legal description is included with the citation.  Once the city files the citation with the clerk of court, the city is to file the citation with the county treasurer and the treasurer is to include a notation of the pending action in the county tax collection system. The property is not to be offered for sale at a tax sale until the court is satisfied or the action is dismissed. The bill forbids the county treasurer from offering for sale any parcel in which there is a pending action due to a municipal infraction or petition filed because of a nuisance or a petition because of an abandoned or unsafe building.

When a petition is filed by a governmental body under the Abandoned Property (657A) chapter of the Code, the chief clerk of court is to index the petition if the legal description is included. After filing the petition with the clerk, the governmental body is also to file the petition with the county treasurer and the treasurer is to include a notation of the pending action in the county tax collection system. The property is not to offer for sale at a tax sale until the court is satisfied or the action is dismissed. [3/2: 49-0; Absent: Schoenjahn]

SF 2199 requires manufactured home retailers to carry out the title application process. It enables the retailer to make sure the use tax is being collected and remitted to the county treasurer of the county where the home is located. Current law does not require the retailer to perform these duties, even though it is the practice in most cases. This bill helps the consumer refinance at a lower interest rate without a problem. As amended, the bill will set up a system to help those Iowa consumers who own a manufactured home on real property and who desire to refinance their home but can’t do so because a title was not issued for the home. The Iowa Department of Transportation will create a title record so that the secondary financial market can be assured that a proper search was done and that there is no title that might cloud the issue and prevent the new mortgage from being sold on the secondary market. The Iowa House amended the bill to ensure an attorney reviews the title opinion in the process of refinancing. [3/9: 50-0]