Legislative Update

THE 2010 SESSION OF THEIOWA GENERAL ASSEMBLY

Legislative Update

S c o t t S u n d s t r o mO ff i c e : ( 5 1 5 ) 2 8 3 - 8 1 7 4C e l l : ( 5 1 5 ) 3 0 6 - 9 6 5 8

s a s u n d s t r o m @ n y e m a s t e r. c o m

DEMOCRATS IN CONTROL

The Landscape

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Iowa Senate 2009-2010

Republicans (18)Democrats (32)

Democrats Control the Senate

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Iowa Senate 2007-2008

Republicans (20)Democrats (30)

Mike Gronstal (D-Council Bluffs)Senate Majority Leader

• Serving his seventh term in the Iowa Senate

• Senate Democratic leader since 1997

• Comes from a family of bankers – didn’t know “damn Democrat” was two words until he was a teenager

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Paul McKinley (R-Chariton)Senate Minority Leader

• Serving his third term in the Iowa Senate

• Became Senate Republican leader after November 2008 election

• Bought and expanded a manufacturer of garment bags for men’s clothing stores

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Iowa House 2009-2010

Republicans (44)Democrats (56)

Democrats Control the House

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Iowa House 2007-2008

Republicans (47)Democrats (53)

Pat Murphy (D-Dubuque)Speaker of the House

• Serving his eleventh term in the Iowa House

• House Democratic leader since 2004

• Ninth of ten children

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Kevin McCarthy (D-Des Moines)House Majority Leader

• Serving his fourth term in the Iowa House

• House Majority leader since 2006

• Father is a former Des Moines police chief and current Polk County Sheriff

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Kraig Paulsen (R-Hiawatha)House Minority Leader

• Serving his fourth term in the Iowa House

• Became House Republican leader after November 2008 election

• Served in the Air Force for 10 years, including as a Minuteman missile operator and maintainer in Minot, North Dakota

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House Moderates

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Roger Thomas(D-Elkader)

Geri Huser(D-Altoona)

Dolores Mertz(D-Ottosen)

Doris Kelly(D-Waterloo)

Brian Quirk(D-New Hampton)

McKinley Bailey(D-Webster City)

Larry Marek(D-Riverside)

Mike Reasoner (D-Creston)

IT AIN’T PRETTY

The Budget

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Where It Comes From

Alcohol/Tobacco4.1% Fuel

7.3%

Income Taxes43.1%

Gambling4.6%

Corporate/Bank/Insurance Taxes

6.4%

Sales/Use Taxes33.8%

Other1.5%

Sources of Revenue

12 months endingFebruary 2010

Source: Legislative Services Agency, Monthly Total Tax Memo (03-27-10)

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Educate, Medicate, Incarcerate

Education57%

Health & Human Services

22%

Justice Systems

12%

Everything Else9%

FY 2010 General FundAppropriations

Source: Legislative Services Agency,

Fiscal Facts 2009 (05-09)

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The Harsh Reality

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Net General Fund Revenue$5,000,000,000.00$5,200,000,000.00$5,400,000,000.00$5,600,000,000.00$5,800,000,000.00$6,000,000,000.00$6,200,000,000.00

$682.4 million reduction from FY 2008 to FY 2010

Source: Revenue Estimating Conference (4-4-08; 3-11-10)

But Not as Bad as Expected

Revenue Source FY 2010 estimate(compared to FY09)

FY 2010 actual (first 9 months)

Personal Income Tax -5.8% -3.0%Sales/Use Tax -3.8% -2.8%Corporate Tax -12.8% -10.1%Other taxes -6.7% -8.8%Other receipts -7.6% -7.7%Total General Fund receipts -8.7% -5.6%

Source: LSA Monthly General Fund Receipts (04-01-2010)

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Ways & Means Committee

Appropriations Committee

Raises money Spends money

In the Hot Seat

Bob DvorksyChair, Senate Appropriations Committee D-Coralville

Jo OldsonChair, House Appropriations CommitteeD-Des Moines

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Joe BolkcomChair, Senate Ways & Means Committee D-Iowa City

Paul ShomshorChair, House Ways & Means CommitteeD-Council Bluffs

Budget Results

FY 2009 FY 2010 FY 2011$0.0

$1,000,000,000.0

$2,000,000,000.0

$3,000,000,000.0

$4,000,000,000.0

$5,000,000,000.0

$6,000,000,000.0

Total Appropriations

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OVERVIEW

2010 Session

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2010 By the Numbers

Second year of two-year General Assembly79-day session – 21 days shortLegislative activity

1,424 bills and study bills filed (1,940 in 2009) 84 resolutions filed (103 in 2009) 1,068 amendments filed (1,154 in 2009) 196 bills enrolled (184 in 2009)

April 29 deadline for Governor’s action on bills passed during last three days of the session

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LABOR & EMPLOYMENT

2010 Legislation

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WARN Act

HF 618 is the Iowa version of the federal Worker Adjustment and Retraining Notification (“WARN”) Act

Federal law: Applies to employers of 100 or more employees Requires 60-day advance notice to affected employees when there is a

plant closing or mass layoff affecting 50 or more full-time employees

Iowa law: Applies to employers with 25 or more full-time employees Requires 30-day advance notice to affected employees when there is a

plant closing or mass layoff affecting 25 or more full-time employees $100/day for each day required notice not given – maximum of $3,000

if no notice No other remedies – no private cause of action; no injunctions

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Military

Veteran’s Day Holiday – HF 2197 Veteran’s entitled to take Veteran’s Day (November 11) off from work Paid or unpaid at employer’s discretion Veteran/employee must give 30-days advance notice Employer may deny time off if time off “would impact public health or safety

or would cause the employer to experience significant economic or operational disruption”

Employer must make decision about granting time off at least 10 days in advance

Unemployment Compensation for Military Trailing Spouse – HF 2110 Applies to spouses of military personnel who voluntarily quit to follow their

spouses who have been moved by the military Trailing spouse is eligible for unemployment benefits to be paid out of

Iowa’s unemployment trust fund Not charged against employer’s account

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Genetic Information

Iowa Code § 729.6 prohibits employers or prospective employers from: Requiring employees to take genetic tests (subject to very narrow exceptions) as

a condition of employment Altering the terms or conditions of employment of a person who takes a genetic

test Terminating a person who takes a genetic test Offering a person employment or paying an employee in exchange for taking a

genetic test

SF 2215 adds new prohibitions to § 729.6 applicable to ANY person Any person must have informed, written consent to:

Obtain, collect, retain, or transmit genetic information Conduct genetic testing

Additional prohibitions on health insurers Similar to the federal Genetic Information and Nondiscrimination Act

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Considered, but NOT Enacted

Workers’ Compensation HF 2382 – would have allowed employee choice of doctor in the 411 system (police and

firefighters) SF 2285 – would have required included overtime and premium pay in the calculation of

benefits; also would have added a COLA for permanent total disability benefits Paid time off – SF 2337

Would have mandated employers provide accrued paid sick and safe leave for all employees (full and part-time) up to 144 hours/year

Fair share – HF 2420 Would have allowed state executive branch unions to collect fees

from nonmembers for union services Breastfeeding – SF 2270

Would have required workplace accommodations for women to express breast milk

Personnel files – HF 2375 Would have required employers to provide copies of

personnel files to former employees upon request

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HEALTH INSURANCE

2010 Legislation

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Health Insurance Mandates

Private SectorCancer clinical trialsMental health and

substance abuse Only for veterans Only required for groups of

over 50 employees Required of smaller

employers if offer any mental health coverage

State Employees Only

Autism – applied behavioral analysis

Medication therapy management

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Premium Rate Increases

When a health insurance carrier files for a rate increase it must mail notice to all policyholders

The Insurance Consumer Advocate is directed to solicit comments

The Insurance Commissioner is directed to hold a public hearing

Information used by a health insurance carrier to justify a rate increase is a public record

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Dental Noncovered Services

Dental carriers negotiate prices for services in contracts with dentists

Negotiate fee limits on what dentists can charge for services not reimbursed by the carrier Contract limitation (frequency limit, co-pay,

deductible) Not covered under the policy (implant, whitening)

HF 2229 prohibits any negotiated fee for services not reimbursed by the dental carrier

Increase out-of-pocket costs for patients Page 28

Health Insurance Reform

Iowa – SF 2356 Expands IowaCare program Creates an Iowa information exchange – compare coverage options

Federal Reform Will require a number of state legislative changes

Immediate and short-term implementation . . . National high risk pool established Secretary of Health and Human Services begins designing a national

premium rate review process Internet portal created Internal/external appeals process Rescission restrictions Dependent coverage extended up to age 26 Prohibition on lifetime limits and restrictions on annual limits for “essential benefits” No pre-existing condition exclusions for children under 19 Mandatory minimum loss ratio requirement

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LITIGATION

2010 Legislation

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Iowa False Claims Act

SF 2088, §§ 338-344 Very similar to the federal False Claims Act, 31 U.S.C.

§§ 3729-3733 Allows Iowa to retain an additional 10% of amounts

recovered for Medicaid fraudWhistleblowers who have knowledge of fraud

committed against the government may sue on behalf of the state and retain a portion of any recovery

Treble damages and civil penalties

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State Debt Collection – SF 2383

Establishes a state debt coordinator to coordinate collection of debts owed to the state

State gets lien against all monetary claims arising from a civil actions filed by a state debtor against third parties Effective upon the Coordinator filing notice with the clerk of the

district court where the action is filed and notice to the debtor/debtor’s attorney

Lien effective against the monetary claim in the civil action Subsequent settlement requires written agreement by the

Coordinator Insurance company that makes a payment to the debtor in a civil

action subject to a lien by the Coordinator has no further liability for the lien filed in the civil action

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Wrongful Death Damages

HF 758 – hedonic damages “Loss of enjoyment of life” “Measured separate and apart from the economic

productive value the decedent would have had if the decedent lived”

Passed the HouseBrought up for debate in the Senate – but did

NOT pass

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TAXES

2010 Legislation

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Tax Credits – SF 2380

Legislative Tax Expenditure Committee Assess existing “tax expenditures” – credits, exemptions, deductions, and rebates Review of all virtually all tax existing credits over a 5-year period from 2011 to 2015

Suspends film tax credits until July 1, 2013, Iowa Code § 15.393 Reduces total authorized amounts of several credits Modifies:

Supplemental research activities credit, Iowa Code § 15.335 Investment tax credit, Iowa Code § 15.333 – Refundability eliminated for value-added

agricultural products Repeals:

Economic development region revolving loan fund tax credit, Iowa Code § 15E.232 Venture capital fund investment tax credit, Iowa Code § 15E.51

Reenacts the Iowa estate tax (contingent on federal estate tax changes) Interim study committees

Enterprise zones Industrial new jobs training program

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CAMPAIGN FINANCE

2010 Legislation

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Current Events

Citizens United v. Federal Election Commission U.S. Supreme Court strikes down the ban on

corporations making independent expenditures for: Electioneering communications – “any broadcast, cable, or

satellite communication” that “refers to a clearly identified candidate for Federal office” and is made within 60 days of a general election or 30 days of a primary

Expressly advocating the election or defeat of a candidate

Does not permit direct corporate contributions to candidates

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Iowa Reaction – SF 2354

Pre-Citizens United Iowa law, Iowa Code chapter 68A Corporations, financial institutions, and insurance companies could not expressly advocate

the election or defeat of a candidate, Iowa Code § 68A.503 Unconstitutional after Citizens United

Iowa response – SF 2354 Took effect on April 8, 2010 Corporations, financial institutions, and insurance companies may make independent

expenditures that expressly advocate the election or defeat of a candidate using corporate money, Iowa Code § 68A.503(4)(d)

Regulation of independent expenditures, Iowa Code §§ 68A.404, 68A.405 Triggered when expenditures exceed $750 Authorization of board of directors to make independent expenditure in same year

independent expenditure made File reports detailing nature of expenditures – initial report due within 48 hours of first

expenditure May not use an advertising firm that was retained in the prior 6 months by a candidate

benefited by an independent expenditure Attribution statement that states “paid for by” and the name of the corporation and the

name of the corporation’s CEO

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THE LEGISLATURE’S WEB SITE

Further Reading

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www.legis.state.ia.us

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The Bill Book

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2010’S GREATEST HITS

And in Conclusion . . .

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Great Moments in Legislating

Major strides in criminal lawHF 2286 – no longer a crime to detain a person who

is not a prostitute in brothel with the intention of making the person “an inmate thereof”

HF 2287 – “simulated” public intoxication is a separate offense from public intoxication

HF 2288 – repeals the limit of two cowl lamps on vehicles

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Great Moments in Legislating

Notwithstanding any other provision of law, if any accident involving the emergency landing of an airplane, hot air balloon, glider, helicopter, or flying De Lorean on a jogging trail, beach, or other recreational or public area causes the death of a pedestrian who was listening to a portable media player at the time of the accident, the operator of the aircraft involved in the accident is guilty of a simple misdemeanor. In addition to any other penalty provided by law, the operator may be subject to a fine of one thousand dollars or suspension of the person's driver's license for not more than one hundred eighty days, or both. -- Amendment H-8649, by Rick Olson (D-Des Moines)

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Thank You

Scott SundstromOffice: (515) 283-8174Cell: (515) 306-9658

[email protected]