Waiting Around on the Standings Bill

Lobbyists joke about what they'll be doing at the Capitol this week - we'll do some standing around, then there is that sitting around, then we'll try to predict when session will end. The last few days this hasn't been too far from the truth, but not without reason. Most people are waiting for the Standings Bill to appear from Senate chambers. Then the scene becomes hectic.

CSG will be looking for a few things to appear in the Standings Bill. One of those is the revived language from the Green Cleaning Bill, changed to suggest that school districts merely give preference to green cleaning products. We will also be looking for sections of language that will be bad for CSG clients - some of which may have been proposed as bills earlier in the session and defeated, like prevailing wage for one example. That's when the tough work will need to be done in a limited amount of time to get those items out of the Bill.

Some speculate we will see the Standings Bill come out yet tonight. Tomorrow is the more realistic probability.

Hard Work and Positive Message Key to Republican Victories

Senator Tim Kapucian, Secretary of Agriculture Bill Northey, and Representative Peter Cownie were the speakers at the Conservative Breakfast Club Tuesday morning. Attendees were asked to write their names down at the door for Department of Homeland Security records, joked Republican Party of Iowa Treasurer Darryl Kearney.

Senator Kapucian of Keystone led the group of speakers. He decided to run for office last year after being approached by former Senator John Putney who decided not to run for re-election. Kapucian lives and farms right where he was born and raised. In 1993 he served as the President of the Iowa Pork Producers Association. Like so many newly elected Republican legislators he contributes his successful senate bid to hard work and the positive Republican message he ran on.

Secretary of Agriculture Bill Northey followed. He ran in 2006 because he did not think the Department of Agriculture was getting the attention it needed. In 2002 Iowa agricultural sales equaled $12 billion dollars. In 2008 sales increased to $20 billion making Iowa number two in the nation behind California. Secretary Northey pointed out that business and agriculture are clearly the industries of the state yet this administration’s focus has been on growing government and not prosperity. While emphasizing the need for a Republican governor and new leadership at the Capitol, he clearly stated that he like the position he was in and "was not making any announcements."

Representative Cownie ran for office because he wanted to see more young people stay in the state as Iowa’s population has become stagnant and growing older in recent years. He is one of about 9 children and is sad that only a few of them are left in Iowa. He says that if the jobs are here, our college grads will stay here and others will come back home. Cownie and his wife Mary, who was also his campaign manager, knocked on every door in his district and lit-dropped extensively. Although Obama won the district and a third-party libertarian opponent took 500 votes, Cownie still won through hard work and a positive message.

State Agencies: No Green-Cleaning Products for Schools

The Green Cleaning Bill HF823 – also one of McCarthy’s leadership bills – will not be going forward this year. State Agencies (Department of Public Health, Department of Education, and Department of Administrative Services) that would be responsible for overseeing the use green-cleaning products in public schools expressed concerns about money and resources required to implement the initiative.

The cost-benefit ratio would have been very high. School children and school staff across Iowa would no longer be subjected to toxic cleaning products, while State Agencies would merely be required the publish a list of green cleaning products on a state website.

While this bill was considered towards the end of the session, it is particularly unsettling that some in the Culver administration (which is supposed to be GREEN) did not embrace what is clearly a positive public policy goal.

We expect that this issue will be one of the first debated and passed next year.

Adjournment Update:

Democrat Leaders are indicating that they want to go home, but will struggle to do so without passing Governor Culver’s $750 million bonding bill.

Another impediment to session adjournment is Barack Obama’s visit to Newton on Wednesday which will inevitably take many Democrats away from the Statehouse.

It will come down to Thursday night when leaders will look at the what’s left on the schedule and determine if they can finish up over the weekend. If not, we’ll be back for more next week.

Thursday Observations

The bill calling for a biodiesel mandate passed out of the Senate Wednesday night with a vote of 31-19. Senate File 464 was sent to the House but is not yet on the debate calendar. Rumor is that the bill is DOA in the House.

House Majority Leader Kevin McCarthy’s Green Cleaning Bill, HF 823, was sent to a subcommittee of Ways & Means Wednesday. The subcommittee will consist of Representatives Donovan Olson (D-Boone), Marcie Frevert (D-Emmetsburg), and Chris Hagenow (R-Clive). An amendment by Representative Olson was approved in the committee specifying the Departments of Public Health and Administrative Services would implement the requirements.

While both houses are going home tonight, lobbyists and legislators today are facing the reality that we will be in session through the end of next week at a minimum.

Tonight the Drake Law Republican Club will be hosting their Spring Networking Social at Dos Rios from 5:30-7:00pm. Republican attorneys, legislators, and lobbyists are welcome to join Drake Law Republican students for appetizers and words of wisdom from Drake Law Graduate Governor Terry Branstad. Please come if you can!

No Debate on Federal Deductibility Tuesday

Federal deductibility was not debated in the House today although a couple hundred Iowans showed up to the Capitol to oppose it. House File 807 is on the debate calendar and debate was originally scheduled for 10:00 Tuesday Morning. No word yet when and if it will be brought up.

Some in the lobby suspect legislators will be going home next Wednesday. Usually a good sign is when legislators start packing up their desks, which has not been seen yet.

Still Bound by Session Timetable

There are only a few things the legislature must do each year, and one of them is to pass the budget. The legislature has not passed a budget yet this year, and will remain in session until it does. Rumors last week were that the session would end this week. It’s Monday and we are already looking towards next week.

We are still operating according to the Session Timetable. The second funnel deadline was last Friday and called for Senate bills to be reported out of House committees and House bills to be reported out of Senate committees. April 13 - 17 requires Senate consideration of only House bills and unfinished business, and House consideration of only Senate bills and unfinished business. It appears to be too late to amend the rules, but they may be suspended in order to speed up the process.

All bills besides the budget bill at this point are optional, and sometimes called the “pet projects” which have the support of various legislators or groups. These include the bills for Prevailing Wage, Ending Federal Deductibility, Collective Bargaining, Ending Right-to-Work, and Doctor Shopping.

As the lobby is well aware, no bill gets better the longer it sits around.

Ignition Interlock Systems of Iowa

Towards the end of legislative sessions decisions start to get made and issues begin to be resolved. It’s at this time people and groups find out how they are going to be impacted by various bills.
One of these groups is Ignition Interlock Systems of Iowa. This company makes ignition interlocks – a device installed in cars that requires the driver to breath into it and pass a breath-test for alcohol before the car’s ignition starts. This device is required for those convicted of Operating While Intoxicated (OWI) if they wish to continue driving.
The law previously stated, that after 100 days, a person convicted of their second OWI is eligible to get this device and drive again for the remainder of the time their license is revoked. This year, the federal law changed to allow the devise to be installed after just 45 days of zero driving. Studies showed that people were driving anyway, and this change makes roads safer by helping prevent them from driving drunk. Iowa attempted to change the law on their books, but made a crucial error in the drafting.
Those charged with an OWI violate a criminal as well as an administrative law. Both sections of the Iowa code needed to be amended to reflect the new 45 day requirement, but the amendment erred in only changing one of the sections. Without fixing this, courts will surely require folks to wait the full 100 days before they can get an ignition interlock device.
Thus, CSG has been recently employed by Ignition Interlock Systems of Iowa to make this fix. It is heavy lifting at the end of the session because the bill requires leadership approval – but something CSG can accomplish.

Green Cleaning Products for a Clean Green Iowa

A bill sponsored by House Majority Leader Kevin McCarthy (D-Des Moines) will arrive in the House from the bill drafters in the next day or two. Generally, the bill provides for public school districts and state buildings to use environmentally preferable – or green – cleaning products. A similar bill, House File 199, did not make it out of committee earlier this year.

The revised bill accomplishes several things:

1) Moves Iowa forward towards using environment and kid friendly cleaning
products;
2) Provide several easy avenues for implementation;
3) Achieves use of green cleaning products without increasing costs;
4) Has the support of legislative leaders who believe this is a positive move
for Iowa and is important enough to necessitate passage yet this session.

Specifically, the sections break down as follows:

Section 1: School Cleaning and Maintenance: Environmentally Preferable Cleaning Products

• Findings and Intent
o Children are vulnerable to and can be adversely affected by cleaning products
o The EPA estimates that human exposure to indoor pollution can be many times higher than out of doors
o Children, teachers, janitors, and other staff spend a significant amount of time in doors exposed to harmful cleaning products

• Use of Environmentally Preferable Cleaning Products
o Public school districts and state buildings will be required to use environmentally preferable cleaning products
o Existing cleaning products may be used up before green cleaning products are obtained

• Policy Guidelines and Specifications
o The Iowa Department of Public Health will maintain a list of approved cleaning products
o A cleaning product will be approved for use if it has been deemed environmentally preferable by one of several agencies including
- EPA’s Design for the Environment program,
- EcoLogo program administered by TerraChoice,
- Green Seal, or
- Alternative qualification by an accredited third-party verifying that the product meets certain recognized standards
o This bill does not preclude the use of disinfecting cleaners, sanitizers, or any other antimicrobial product when necessary to protect public health

Section 2: State Mandate Funding

• No additional state funding for cleaning products will be needed.

The Pot Simmers ... for now

The bill which would eliminate federal deductibility, HF 807, will not be coming up for debate today, and its future is uncertain. The companion bill, SF 468, came out in the Senate today.

House Leaders will not bring the bill up for debate unless they know for certain they have the votes, and right now it looks like the Democrat Six-Pack is holding strong in opposition. In addition, Governor Culver has said he is opposed to the bill if it is not revenue neutral. Probably a smart move since he promised not to increase taxes in his State of the State address at the beginning of the session, and this bill does just that.

On a different note, the Iowa Supreme Court will rule on the same sex marriage case, Varnum v. Brien, tomorrow. The case involves six same-sex Iowa couples who sued the Polk County Recorder in 2005 after the office denied them marriage licenses. A constitutional amendment would be required if the state is not happy with the outcome. No legislative reaction is expected this year as legislators predict they'll be headed home in the next week or two.

Public Hearing on HF 807

Hundreds of taxpayers arrived at the State House this evening for the Public Hearing on federal deductibility. Speakers had to sign up in advance for a three minute time slot.

At about 8:25 there was a fifteen minute delay in the hearing to clear the taxpayers from the chamber for disorderly conduct – applause – after receiving several warnings from the Chairman.

Taxpayers came from all over the state; here is some of their testimony:

Trudy Caviness – Small business owner from Ottumwa
She and husband are small business owners. Don’t want a tax on a tax, and want to continue to stay in business and employee people.

Ken Sager – Iowa Federation of Labor
Supports the bill and believes it taxes Iowans more fairly.

Andy Warren – State director for NFIB
Mr. Warren represents 8,000 business, most of which whom employee less than 6 people. Noted that this bill is a tax increase for these small businesses. Even the bill’s sponsors announced that there are winners and losers with the bill. Half a million tax payers are the losers – the state’s small business owners which are also responsible for ¾ of new jobs in Iowa. This bill is not the way to revive our economic situation.

Ed Failor, Jr. – President of Iowans for Tax Relief
We are here about two things: honoring our past and the investment we’re going to make in our future. Young people came to the State House in busses from every regent university tonight and several private universities. We’re telling them to get out of Iowa, because if they make less than $40,000 when they graduate and they have no other tax credits, they will vote with their feet and leave the state. This bill punishes young Iowans who want to be successful. [thunderous round of applause]

Ben Johnson – University of Iowa Student
Doesn’t want to start a life, a medical practice, and a family in a state that punishes him for being successful.

Chad Airhardt – Executive Director of Waukee Area Chamber of Commerce
Opposes HF 807. Waukee is a fast growing community of young people. What will the next crop of Iowa graduates do when they can earn more in other states and pay fewer taxes? Many small businesses in Waukee are S-corporations, and tax increases will determine whether they put money into expanding, give back to the community, or pack up and leave. Lawmakers need to show fiscal restraint and not double-tax Iowa taxpayers. In Culver’s State of the State, the Governor said that this was not the time to raise taxes on Iowans – what happened to that plan?

Federal Deductibility on the Chopping Block

A Senate Ways & Means subcommittee met this morning to discuss the highly controversial bill to eliminate the federal deductibility. Senate Study Bill 1317 would eliminate the ability for individuals to deduct their federal taxes before they compute their state taxes – requiring Iowans to pay a double tax on their income. The bill’s proponents claim that it reduces taxes for about two-thirds of Iowans and it has no impact on the state’s revenue. This is not quite the case.

At the meeting, Iowans for Tax Relief said that the bill may be revenue neutral to state government, but not so for individuals. The bill will raise taxes for Iowans making more than $125,000.

John Gilliland with the Association of Business and Industry pointed out that a vast majority of employers in the state are S-corporations, partnerships, sole proprietorships, and LLCs which are all pass-through entities that will be adversely affected by this bill.

Dave Roederer with the Iowa Chamber Alliance pointed out that there would be a tax increase on 450,000 Iowans, no change for 242,000 Iowans, and 667,000 would see a decrease in taxes. He suggested that the Senate figure out a system where everybody gets a decrease or no change at all.

Senator Herman Quirmbach (D-Ames) is worried that under the current system, when federal taxes go up because the Bush tax cuts expire, people will have more to deduct from state taxes and state tax revenue would go down. Iowan’s federal income tax liability is expected to increase by $160-$180 million after the December 31, 2010 expiration date.

American Federation of Labor is in favor of the bill, and claimed that it simplifies the tax system and won’t affect most people as the average income for Iowans is $47,000. However, when these individuals lose their jobs because their small-business employers can’t afford to stay in business or the tax increase is passed on to the consumer, all Iowans will begin to feel the effects.

The House has a similar bill that passed out of the Ways & Means Committee Monday night. For a breakdown of the tax affects of the House Bill click here. A public hearing on HF 807 will be held in the house tonight from 7:30-9:00P.M.

Capitol Observations: ABATE's Day on the Hill

Wednesday was ABATE’s Day on the Hill, and while ABATE is not part of CSG, they are an example of a very effective lobbying group. The main piece of legislation they look out for is a mandatory helmet law, which they have effectively lobbied against over the years.

ABATE today stands for A Brotherhood Aimed Towards Education, but at one time stood for A Brotherhood Against Totalitarian Enactments. This freedom-loving group of motorcyclists once used to surround the Capitol on their bikes to promote or protest legislation.

Today, the group is incorporated,has volunteer lobbyists at the State Capitol, and even has its own PAC. They have done all the right things to evolve into a highly respected organization. Their primary objective today is to provide motorcycle education courses and to promote motorcycle safety. They do this at the same time they are opposed to mandatory helmet laws balancing the safety issues. ABATE is a force to be reckoned with and know that at any time they can still surround the Capitol with bikes.

For more information about ABATE Iowa visit their website at www.abateiowa.org

Trans Iowa Teams up with CSG

Capitol Strategies Group recently began representing a new client at the State House – Trans Iowa, which includes Yellow Cabs, corporate limo services, and charter busses. The company’s initial cause for concern was Senate File 157 which would have the effect of requiring independent contractors to be employees of the hiring party invoking all kinds of legal ramifications. The bill did not survive funnel week and died in the subcommittee.

Part of ensuring a company’s legislative success is to align it with allies who have similar interests and can partner together on various bills. CSG is searching for allies for Trans Iowa on another issue.

Those allies may be found in the aircraft industry who should be particularly concerned with a new study bill that came out this week. Senate Study Bill 1302 eliminates the sales and use tax exemptions on the sale of aircraft and aircraft services and equipment. This includes exemptions for aerial crop spraying, sale or rental of aircraft, all aircraft parts, services, maintenance. Such a bill would be very detrimental to the industry and have negative impact on sales at a time when businesses are already struggling.

What prompted this bill was a study that came out revealing how much each exemption reduces state sales tax receipts. However, the study says nothing about the economic advantages of these exemptions. Section 423.3 in the Iowa Code has a list of items that are exempt from sales tax. This section includes the most common exemption of food and food ingredients. The fear is that one by one, these exemptions will be picked off, hurting taxpayers and the sellers of the goods.

What legislators must keep in mind is that tax policy changes behavior. The behavioral change resulting from this bill would be a decrease in planes that want to land in Iowa. It is not a good situation for airlines, airports, or their personnel.

Top O' the Morn!

The Conservative Breakfast Club met Tuesday morning at the Republican Party of Iowa Headquarters. Once again the tables were packed with Conservatives enjoying each other’s company and an Irish breakfast thanks in part to organizers Darrell Kearney and Wes Peterson.

Jeffrey Boeyink, RPI’s new Executive Director, was introduced and spoke to the growing strength of the Republican Party. He and the State Chairman, Matt Strawn, have been traveling around the state energizing Republicans at town meetings. Boeyink is excited about the energy and new leadership he has seen across the state. His sole purpose, said Boeyink, is to foster this energy and to get Republicans elected.

Freshman Senator Randy Feenstra from Hull, Iowa in Senate District 2 was up next. Senator Feenstra had been the head of a foreign candy company that made popular sweets, like my personal favorite, Black Forest Gummy Bears. He resigned the successful career to begin a family, and was soon approached by community leaders to be Hull’s City Administrator. His political career took off from there, and was elected County Treasurer where he streamlined the budget and cut government waste. Senator Feenstra ran for the Senate for three reasons: He felt that the state shouldn’t pass laws mandating certain aspects of local and county governance; he wanted to reign in on the state’s bureaucratic mess as he did in his own county; and he wanted to promote Conservative values and fiscal responsibility.

Freshman Representative Kevin Koester from Ankeny, who touted his Irish heritage, described how he was persuaded to run for office. He enjoyed his work as a Community Service Administrator and gave an adamant “No” after being asked to run for State House several times by Steve Boal, former Representative Carmine Boal’s husband. He finally gave it some thought after being asked to pray about it, and made a successful run for the office. Representative Koester credits the state party leadership and the legislative leaders for their successes in reorganizing and reenergizing the Republican Party.

Both of the these freshman legislators are illustrative of the rest of the new class of Republicans; not only are they excellent speakers, but they are full of energy and are excited for the rebirth of the Republican Party and getting Republicans elected in 2010.

3M Day on the Hill

Wednesday was 3M Day at the State Capitol. 3M business leaders and local plant managers led by Dan Gary, 3M's Public Affairs Manager, met with the House and Senate majority and minority leaders and their local legislators to discuss issues and concerns affecting 3M plants in Iowa.

Among those concerns were Big Labor’s bills, particularly doctor shopping (a.k.a. choice of doctor). 3M provides healthcare for its employees and over the past five years of 1,000 employees each year has had ZERO complaints filed about the occupational doctors 3M has provided for its employees.

Another concern is the yearly threat of combined corporate reporting. The bill was killed early this year, but inevitably will come up again. Forest City, Iowa is home to 3M’s largest distribution center. Forest City plant manager John Roisen told legislative leaders that the Iowa distribution center competes with states nationwide, and combined corporate reporting would make it easy for them to pack up and move their operation and 140 jobs to another state.

There is one good-for-Iowa bill out now that 3M would like to see passed. House File 199 provides for the use of safe and environmentally friendly cleaning products by the state’s schools. 3M is a maker of the “green-cleaning products” which are certified as “green” by an independent agency. The bill is currently in the House Education Committee and will need to move by Friday to survive Funnel Week.

Legislators and legislative leaders recognized 3M as a model corporation that provides valuable jobs to Iowans. Senate Minority Leader Paul McKinley (R-Chariton) expressed his appreciation for good companies like 3M who invest in Iowa, and believes that it is manufacturing jobs that can help get America out of the economic slump it’s in.

The Big Four for Big Labor

Next Friday, March 13, is the funnel deadline requiring all Senate bills to be reported out of Senate committees, and all House bills to be reported out of House committees. Bills that don’t get reported out of committee are effectively killed. However, issues may be resurrected until the last day through amendments of leadership bills. There are four main labor issues CSG is keeping an eye on - a couple of which are already funnel-proof.

Right to Work

House File 555 authorizing the negotiation of “fair share” fees in collective bargaining agreements was introduced on Wednesday by Representative Bruce Hunter (D-Des Moines) and referred to the House Labor Committee. An individually sponsored bill being introduced on such a major issue at this late date may be going nowhere, but if it does, it must be voted out of the committee by next Friday.

Choice of Doctor (a.k.a. Doctor Shopping)

House File 530 states that employers would no longer be able to select proper medical care for employees injured on the job. This bill was also introduced on Wednesday by Representative Hunter and referred to the House Labor Committee. Similarly, it must be voted out of the committee by next Friday to survive in the House.

A similar bill exists in the Senate, Senate File 155, and was voted out of the Senate Labor & Business Relations Committee in mid-February and placed on the Senate Debate Calendar. The bill is very much alive and funnel-proof, and so is the issue regardless of action taken on it in the House.

Prevailing Wage

A motion to Reconsider was filed February 23, after that weekend-long prevailing wage debacle. House File 333 has not shown any signs of life after having been shot down, but could be revived at anytime if a previously "No"-voting Democrat decided to change his or her mind. No such bill has been filed on the Senate side.

Collective Bargaining

Expanded bargaining bills add specific things to the list of what unions can bargain for. Nothing has been filed yet and there is no word of anything coming up. Legislative leaders are going to wait for Governor Culver’s approval before any action is taken regarding a collective bargaining bill.

At this point, the Prevailing Wage and Choice of Doctor bills are funnel-proof. The Right to Work bill must be voted out of committee by next Friday if it is going to become an issue, and a Collective Bargaining bill would need to be both introduced and voted out of committee before the end of the week.

On a lighter note, it was a beautiful day in the State’s Capitol today - sunny and 73 degrees. Who else is ready for spring (and an early end to the session)?

Early Out for State Lawmakers?

In a normal non-voting year, the Iowa General Assembly is in session 100 days beginning the second Monday in January. In a move to send legislators home early, Senate Majority Leader Mike Gronstal (D-Council Bluffs) has informally moved up the funnel deadlines by one week.

Generally speaking, funnel deadlines require bills to have advanced to a certain level by some date, otherwise they’re killed. The Session Timetable says that by March 13, Senate bills must be reported out of Senate committees and House bills must be reported out of House committees for them to receive any further consideration. Senator Gronstal’s informal acceleration of the process would require Senate bills to be reported out of Senate Committees this Friday, March 6, but would have no effect on the House funnel deadlines. The Senate Majority Leader could implement this by not scheduling any committee meetings other than Appropriations, Ways & Means after this week, and bills not moved out would effectively die.

This move by Senator Gronstal reflects the fact that state revenues continue to fall which eliminates the need to stay in session and wait for the April revenue estimation. During growth years there is incentive to stay and spend the new money projected in the revenue estimate. The state would save some much needed money on those days they are not in session.

Launched:

Monday evening I attended the launch party for a fantastic new website called The Bean Walker. The site is an Iowa news aggregate – a one stop shop for Iowa news and politics that includes links to news sources, blogs, and leading articles. The design is similar to sites such as The Dead Pelican in Louisiana and The Drudge Report – a national right leaning news aggregate.

The site’s creator, Tim Albrecht, has done an excellent job promoting the site on TV news and radio. The name of site came from the summer job of many rural Iowan kids – bean walking – the dreaded, but well paid, task of walking through the bean fields to pull weeds and volunteer corn stalks. While bean walking is a thing of the past, The Bean Walker represents the growth of the present conservative movement.

The launch party was a huge success, with many prominent elected officials in attendance. If the party was any indicator, this website will be a huge success as well and a daily must read.

The site promises something for all Iowans, because in Iowa we’re all bean walkers!

Teacher's 403(b) Insurance on Path to Repair

Previously I reported on the 403b issue regarding changes made last year teacher’s insurance that had the effect of forcing them to leave their personal financial advisors to go with advisors mandated by the state.

On Wednesday Senate Study Bill 1257 was filled with the intent of correcting this error. After review with our NAIFA (National Association of Insurance and Financial Advisors) members, we are not satisfied with the changes this bill proposed. CSG plans to file a strike-all amendment preserving only the title of the bill and replace it with language that fixes some of the errors in last year's changes.

Last year’s changes in the 403b law requires the Department of Administrative Services (DAS) to handle all the administrative aspects of 403b insurance, including the selection of a small group of insurance carriers who are allowed sell the 403b insurance to teachers. The main problem arose when teachers were forced to leave their trusted financial advisors, who were no longer eligible to sell 403b insurance, to seek advice from strangers mandated by the state. The other problem arises when DAS decides to change their select group of carriers and teachers are bounced from one agent to the next. No one else is forced to buy their insurance from someone they don’t know or trust – nor would they want to be.

One possible solution is to put a procedure in place to require any licensed insurance agent in good standing to have access to the DAS-selected carriers’ 403b products. This would allow teachers to remain with their preferred financial advisors.

Bad for Business Bill: Combined Corporate Reporting

Just as spring comes around once every year, so does a bill at the State House calling for combined reporting of corporate income taxes. However, unlike spring the Combined Reporting Bill is loathed by the state’s corporations and its largest employers.

The bill is Senate File 211, filed by Senator Keith Kreiman (D-Bloomfield). Combined reporting would require corporations such as 3M, who do business in states outside of Iowa, to report their TOTAL income on their Iowa State income taxes – not just their Iowa income as the law is now. 3M’s Iowa State income taxes would increase by 500%.

This bill is bad for corporations in Iowa and will discourage other multi-state corporations from coming into the state and creating jobs for Iowans. Combined reporting is favored by some Democrat legislators because it would generate millions more corporate tax dollars for the state. Taxing corporations exponentially is not in the best interests of Iowans who are worried about the stability of their jobs or are already in search of new ones.

Victory for the Taxpayer in the Prevailing Wage Saga

Monday, the House Majority leader switched his vote to “no” so he could file a motion to reconsider the bill and the speaker closed the vote. The bill failed with a final vote 49 aye – 49 no and 2 absent.

The bill effectively would require that the highest wage paid in the county or district will always be the union wage. Small contractors cannot possibly pay union wages, so it favors big city union contractors.

According to House Minority Leader Kraig Paulson (R-Cedar Rapids), the 4 main objections to the bill are:

1. It will require local governments and schools to spend more money than necessary for infrastructure projects thereby increasing property taxes.
2. It risks putting family-owned contractors out of business.
3. The bill takes immediate effect for Linn and Johnson counties and really hurts those areas trying to rebuild. It’s estimated this could raise the cost of flood rebuilding by as much as 20%.
4. The state will have to add at least 17 new employees and spend over $1.4 million just to administer this law.

Though the motion to reconsider has been filed, it is unlikely the House Democrats will get the 51 votes needed to pass it. This weekend Representative McKinley Bailey (D-Webster City) went on TV committing himself to his “no” vote, and Representative Larry Merek (D-Riverside) promised constituents at town meetings that he would stand strong in his opposition to the bill.

NOT ENOUGH VOTES FOR PREVAILING WAGE

Speaker of the House Pat Murphy (D-Dubuque) will leave the voting machines open all weekend in case anyone changes their minds under pressure. The vote was left at 50 – 46 with 51 votes needed to pass.

House Republicans’ victory over prevailing wage was largely due to the outstanding leadership by House Minority Leader Kraig Paulson (R-Cedar Rapids) and also Jeff Kaufman (R-Muscatine).

The will and resolve of the 5 House Democrats who voted against the bill could not be broken under extreme pressure. One Democrat has not voted yet, but she is believed to be voting “no.”

If this bill ultimately fails it will be a huge victory for Iowa taxpayers.

House to Act on Prevailing Wage

With a nod towards organized labor, the Iowa House of Representatives will take action today on a bill that would require the payment of “prevailing wage” on certain construction projects in the state (HF 333). The bill is expected to be taken up for debate at noon today, but will likely be delayed. Critics cite the potential for property tax increases to pay for the expected 15 to 20 percent cost increases they fear the bill will drive. Union supporters argue that the bill would result in better construction and job safety. If House Democrats prevail, the bill is expected to pass the Senate quickly and be sent to Governor Culver who has pushed aggressively for passage of the measure.

The House also acted on an additional health care mandate proposed in HF 311 that would require health insurance policies in the state to provide coverage for prosthetic devices. A coalition led by the National Federation of Independent Business and the Association of Business and Industry conducted a news conference this week to attempt to highlight the negative impact of health care mandates. In the Senate, the mandate issue is being handled by Senator Tom Rielly (D-Oskaloosa) who has raised concerns about the cost of additional mandates and their affect on the ability of businesses to afford the increases.

A new coalition of businesses and business organizations has been organized to resist passage of a Senate Labor Committee bill commonly referred to as “doctor shopping.” Senate File 155 is on the Senate Calendar, and would completely reverse our current system of selecting medical care for workers compensation cases by allowing the employee to use any doctor. Labor groups support the change while businesses are predicting an immediate 15 to 20 percent workers compensation rate increase if the bill is signed into law.

TMC Tractor at State House

CSG brought one of its TMC truck tractors up to the State Capitol briefly Wednesday afternoon. This fine specimen was on display for legislators to see firsthand the thousands of dollars worth of safety equipment installed on the inside - living up to TMC's "Commitment to Excellence."

The use of this safety equipment may be considered “distracting” under the terms of a new bill – which could result in more penalties for drivers who are found to have been distracted at the time of an accident. Senate Study Bill 1217 expands the offense of “careless driving” to include “driving while distracted.” Careless driving is a simple misdemeanor punishable by a fine of $25

Certain activities which are incidental to driving are not distracting activities under the bill, including conversation with passengers, using a global positioning system device, using an installed audio system, using an amateur radio, or calling 911.

Specified distracting activities include using a cellular telephone, text messaging, using a computer or video game device, viewing a television or digital video disc player, personal grooming, eating, drinking, reading, writing, interacting with pets, reaching for or maneuvering unsecured cargo, or interacting with passengers in the back seat of the vehicle

Freshman Representative Chris Hagenow (R-Des Moines) took the opportunity to investigate the inside of the TMC tractor. He was very impressed with all the safety equipment installed including a device that alerts the driver when he is within 3 seconds of the vehicle ahead of him. He reasoned that so much is invested in these trucks that it is in the best interest of drivers and TMC to keep the trucks on the road and accident free.

CSG plans to bring the tractor back up for legislators on a day when the weather is a bit more favorable.

[photo above of your fearless blogger hitching a ride]

Republican Rebirth Seen at the Breakfast Tables

The Des Moines Conservative Breakfast Club met Tuesday morning at the Republican Party of Iowa Headquarters. The breakfast tables were packed with upwards of around 70 conservatives. This number has grown steadily over the past several months since Republican’s grave defeat on Election. It is representative of the Rebirth of the Republican Party and new leadership in State Chairman Matt Strawn and Executive Director Jeff Boeyink.

Senator Shawn Hamerlinck (Davenport) and Representative Renee Schulte (Cedar Rapids) – two of the fine class of freshman legislators – both spoke about the hard work they did to get elected and the work that needs to be done going forward to rebuild our party and regain the majorities.

Monday Meetings

The House Rebuild Iowa & Disaster Recovery Committee met Monday afternoon.

Timelines were presented to the committee by Mike Tramotina of the Iowa Department of Economic Development showing the progress Texas made rebuilding after Hurricane Rita. In Texas, only 13% of their money had been spent 706 days after the storm, because, according to Tramotina, that’s how long it takes to spend CDBG (Community Development Block Grant) money. The presentation was an effort to show legislators by analogy how long it takes to obtain and use federal disaster funds.

CDBG monies must be used for low income people in low income areas. 50% must be spent on people below the median area income. Awards of money must go to a local government and then to some other entity adding to the delay in its distribution.

A Senate Transportation Subcommittee comprised of Senators Larry Noble (R-Ankeny), Tom Reilly (D-Oskaloosa), and Steve Warnstadt (D-Sioux City), and met this afternoon to discuss SSB1182 which increases the excise tax on motor and diesel fuel. The proposed bill would increase the motor fuel and diesel fuel excise tax by 8 cents by January 1, 2010.

It is Capitol Strategies position that this tax increase is too fast too soon. Our motor carrier clients recognize the need to repair roads statewide and would be in favor a 4 or 5 cent increase over time.

We are also interested in a tax preference for biodiesel. This would give carriers the option of purchasing regular diesel and the increased rate or biodiesel at the preferred rate.

Tonight at 7:30 the House Chambers will be hosting a public hearing on the issue of prevailing wage. Speakers are limited to 3 minutes and as of 3:00 about 40 people were signed up.

Ban on Cell Phones in Vehicles Proposed

House File 9 if passed would ban all people from using a cell phone while driving a vehicle. The bill allows for the obvious exceptions for a person to call 911 or if the vehicle is pulled off to the side of the road.

Most people realize that it is probably not the best practice to talk or send text-messages while driving, but is it that bad that it requires a change in Iowa Law? Capitol Strategies thinks not.

Opening the door to restrict the use of cell phones can quickly become a slippery slope leading to other restrictions and prohibitions in our personal lives. When changes are proposed to the state code intending to alter peoples’ habits, there must be some compelling statistics in its favor. No statistics have been presented indicating that driving with one hand and talking on the phone is more dangerous than talking to the person next to you or in the back seat of the car, for example.

Truck drivers are often on the phone getting instructions on deliveries and best routes making it an essential aspect of their job.

We have spoken to the bill’s sponsor, Representative Abdul-Samad (D-Des Moines) who is open to amending the bill to make an exception for motor trucks. CSG plans to bring a truck tractor up to the Capitol to give Representative Abdul-Samad and other legislators a chance to see firsthand how our drivers operate and how safe they are.

Featured Freshman: Representative Gene Ficken

Name: Gene Ficken

District: 23

Committee assignments: Education (Vice Chair), Veterans Affairs, Natural Resources, and Joint Education Appropriations

Hometown and current town
Hometown – Spirit Lake; Current town - Independence

Your family
Wife Michelle, Children Travis, Garret, and Paige

Education and Cyclone/Hawkeye affiliation
BA in biology from UNI, MA in biology from UNI Loyal to all

Occupation when not in session: retired

Why you ran for office
To help improve education in the state of Iowa.

What you think are the three most important things the General Assembly needs to accomplish this session, and describe each briefly
a. Disaster relief
b. Economic relief for middle class families
c. Education

What has been your impression of the legislature thus far?
Challenging and high learning curve with an unbelievable and rewarding experience

Click here to go to Representative Gene Ficken's Legislative Page

Monday Meetings

The Senate Labor & Business Committee met Monday afternoon to discuss Senate Study Bill 1119 – providing for employee choice of doctors for purposes of injuries that are workers compensation injuries. Senator Tom Courtney (D-Burlington) chairs the committee. The room behind the Senate Chambers was packed with the business lobby, the labor lobby, and several who were there to give statements before the committee.

A representative from the Iowa Occupational Nurses Association, in a prepared statement, said that employers often know what doctors specialize in treating certain workplace related injuries. She also pointed out that some doctors chosen by employees will do anything to please the injured employee in effort to retain their business.

An employee advocate discussed horror stories from the Case plant in Burlington. Various employees had been given the run-around and were allegedly made worse when they were not initially able to choose their own doctor.

What was missing from the discussion was the fact that Iowa has some of the richest workers compensation benefits in the nation. We also allow employees who are not satisfied with their care to petition the Industrial Commissioner to allow them to use their own doctors. The current system works for 99.9% of Iowa workers and we should do nothing to alter that balance.

House Rebuild Iowa Committee

The House Rebuild Iowa Committee also met to clarify questions raised last week about Rebuild Iowa Office (RIO) Expenditures. Last week the RIO chief of staff Emily Hajek told the committee that that $19,000 was spent to replace the carpet in their office because "the lieutenant governor asked that it be replaced." Monday, General Ron Dardis of the Iowa National Guard, who is now in charge of RIO, did his best to answer committee members’ questions.

Representative Tom Sands (R-Columbus Junction) told General Dardis and the committee that there is “frustration out there, real frustration” from his constituents – some of whom are still living in FEMA trailers. He also pointed out that he has 30 year-old carpet in his office that should probably be replaced, but it is not a priority to him and suggested that it should not have been a priority to RIO.

While both those meetings were going on, Representative Steve King was speaking on the first floor at the Prayer for Life Rally. Hecklers in the audience made themselves known. Sheriffs escorted one man was escorted to the door and subdued the others.

Rebuild Iowa Office Expenses Questioned

The House Rebuild Iowa Committee met on Wednesday this week. Legislators vigorously questioned Rebuild Iowa Office (RIO) executives about seemingly out-of-place expenditures including $19,000 on re-carpeting the office space and $425,000 dollars on lobbying and media personnel.

RIO was established by Governor Culver through an Executive Order to coordinate state-wide efforts to aid in recovery after the onslaught of natural disasters last summer.

On Monday, Governor Culver signed the Rebuild Iowa Bill into law after receiving unanimous votes in the House and Senate. House File 64 allocates $56 million from the state’s rainy day funds to disaster recovery efforts:

• $24 million will go to the Jumpstart Housing Assistance Program
• $22 million for grants to cities and counties for expenses including repairing and rebuilding public infrastructure, and public purchase of land and structures
• $10 million for individual disaster relief grants to be dispersed through the Department of Human Services

Governor Culver has also signed SF 44 which aids cities in federally declared disaster counties to impose a vote for a local option sales tax to raise funds for disaster recovery.

On a different note, on Friday the 3M plan in Ames announced it would be reducing work hours for most of its 350 employees as a result of the nation’s economic woes.

Featured Freshman Senator Tim Kapucian

Name: Tim Kapucian

District: Senate 20

Committee assignments
Agriculture, Transportation, Economic Growth, Appropriations, Local Government, Economic Development Approps. Subcommittee

Hometown and current town
Keystone, Iowa (30 miles west of Cedar Rapids)

Your family
Wife since November 29th, Brenda who lives in West Des Moines and works at Farmers Mutual Hail, two stepdaughters and one stepson- in-law and two grandchildren. My mother Betty lives in Keystone.

Education and Cyclone/Hawkeye affiliation
1979 Graduate of Iowa State University, BS in Animal Science. Definite CYCLONE

Occupation when not in session
Farmer – corn, soybeans, some oats and hay. On occasion I feed some cattle. Former cow-calf and farrow to finish operator

Why you ran for office
To make sure rural Iowa keeps its’ representation and support agriculture and small town Iowa.

What you think are the three most important things the General Assembly needs to accomplish this session, and describe each briefly
Balance the Budget – We must curtail out of control spending and keep Iowa prosperous not only for our future but for generations to come. Infrastructure – To continue to not only feed the world but now supply energy as well. We must have a good, safe highway system so we can export our products efficiently. Keep taxes down – Low taxes provide incentive for business growth.

What has been your impression of the legislature thus far?
So far it has been mostly getting organized and then with the inauguration and Mary Lundy’s funeral we haven’t had a lot of time for all our work. However, I feel we will get on track shortly and accomplish the task at hand.

The food you most look forward to at the Iowa State Fair
Iowa Pork Chops and Beef Quarters Steaks

Anything else you would like readers to know about you?
I believe strongly in Iowa, our work ethic is second to none, our citizens are the friendliest in the nation and we have the most productive ground in the world. I am proud of these things and I will do everything I can to support and protect our land, our people, and our future

Click here to go to Senator Kapucian's legislative page

Fair Share or Unsolicited Union Representation?

A bill that will require non-union members to pay their “fair share” for union representation – albeit unsolicited – is expected to hit the bill stack soon. Labor leaders are rumored to be making their way into the State House lobby and meeting rooms behind the House and Senate Chambers.

Union leaders are fed up with non-union members receiving the same benefits they “win” for union employees without paying their dues. So to get around requiring them to join the union, which is prohibited by Iowa’s Right-to-Work law, union bosses will just require them to pay a fee for representation.

Union leaders don’t have to represent those who aren’t paying their “fair share” – they choose to.

Only about 10-12 percent of Iowa's workers choose belong to a union.

Iowa’s neighbors that have fair-share laws include Missouri, Minnesota, Wisconsin and Illinois. Does Iowa really want to replicate anything that Illinois does? I think not. South Dakota and Nebraska do not have fair-share laws and South Dakota is ranked as one of the top states in the nation in which to do business in part for that reason.

When Iowans are struggling to pay bills as it is the last thing they want is to be told they MUST pay for union representation whether they want it or not.

Prosthetics Bill Mandates Increased Insurance Costs

A Senate Commerce subcommittee met today to discuss the Senate Study Bill 1122 which would require employer provided health insurance to cover medically necessary prosthetic devices. The subcommittee members included Tom Rielly (D-Oskaloosa), Rich Olive (D-Story City), and David Hartsuch (R-Bettendorf).

Most employers’ insurance plans already provide some coverage for prosthetic devices, but this bill effectively eliminates the restrictions on what kinds of devices must be paid for. It is not a mandate for insurance companies to sell prosthetics but a mandate for employers to buy. The business community is under more pressure than ever before just struggling to stay open and keep the lights on let alone pay extra insurance on their employees. The debate is a public policy one whereby taking care of a few peoples’ interests must be weighed against employer ability to afford the insurance.

CSG proposes that a commission be established to evaluate insurance mandates and establish a limit on how many are allowed. This would help maintain affordability while the most medically necessary mandates will be in place. The commission would be responsible for deciding which mandates are the most important and cost effective and assign a value to each. If a new mandate is proposed, the commission would determine if its value is greater than one already in place. If so, the commission would replace the lowest valued mandate with the new one – instead of just adding it to the list.

Each new mandate – whether it be for prosthetics, diabetes, or in vitro fertilization – will have some compelling personal story behind it. But the emotional appeal must be balanced with the reality that the employer will have to bear the cost of it. The more mandates that must be paid for, the more the insurance will cost, and the less likely an employer will be to maintain that insurance coverage for his employees. Employers in Iowa currently have a choice of whether or not to provide insurance for their employees. Adding mandates to what is covered increases the cost of that insurance and the ultimate effect is that fewer people in Iowa will be insured because employers will not be able to afford the insurance.

Featured Freshman Legislator: Renee Schulte

Name: Renee Schulte

District: 37 NE Cedar Rapids

Committee assignments
Human Resources, Judiciary, Education, State Government, Human Services budget sub

Hometown and current town
Born Centrailia, IL Raised in Danville, IL live in Cedar Rapids Iowa

Your family
My husband Brent and chow chow Rio (former foster parent of teen girls)

Education and Cyclone or Hawkeye affiliation Cyclone
Husband attended ISU

Brief description of any military experience
Husband was Air Force making me an Air Force wife

Occupation when not in session
Adjunct professor of psychology at Mt Mercy College

Why you ran for office?
My passion is working with children and families. While working as a therapist, I became aware of policy issues that needed to be addressed at the state level in order to strengthen families in Iowa. Economic Development is the biggest thing we can do in Iowa to strengthen our families. Second, families need to keep the money they make in order to provide for their family. Third, I believe that before policy decisions are made, government officials should consider the full effect. Sometimes well meaning people make laws that have unintended consequences on constituents. Being a voice for children and families in Iowa is my reason for running for office.

What do you think are the three most important things the General Assembly needs to accomplish this session, and describe each briefly
1) Flood recovery- As a citizen of Cedar Rapids, I have labored with my community since the flood in June working to rebuild our community. Now that we did not have a special session to address this issue, we need to do everything in our power to provide resources as soon as possible.
2) Fiscal responsibility- We face a large spending gap/deficit in the current 2009 budget and in the projected FY 2010 and FY 2011 budget. We need to be honest and transparent in the process so Iowan’s can understand the gravity of the situation.
3) Shrinking government- We need to look for ways to streamline and make government more efficient. We also need to look at the 2600 new full time employees added to state government in the past two years to determine if they are necessary in this current fiscal climate.

What has been your impression of the legislature thus far?
I am honored to make history as a member of the 83rd General Assembly of Iowa. I am amazed every day at the beauty of the chamber in which I work. I have met the most wonderful public servants- legislators, lobbyists, capitol employees and staff-all working toward the common good.

The food you most look forward to at the Iowa State Fair
Anything on a stick

Anything else you would like readers to know about you?
I come to the state house with a unique background. As a therapist, foster parent, and professor of psychology, I am energized by the relationships with others. I am excited to be able to help my constituents. I wake up early every day, knowing that today I can make a difference. One thing I hope to accomplish as a legislator is being a positive role model for young women in Iowa.

Work Underway to Restore 403(b) Relations

Last year destructive changes were made in the way teachers get financial advice and plan for retirement. Public school teachers have the option of paying part of their salary directly into 403(b) tax-advantaged retirement savings plans. School officials got tired of writing out checks to multiple insurance carriers, and decided they could reduce their workload if they only had to write out checks to a couple different insurance carriers.

This forced teachers/clients to leave their personal financial advisors to go with advisors mandated by the state. It had the effect of breaking up relationships that had been in place for years and forcing relationships with new advisors who may not have known what is in the teacher’s best interest. This has been particularly destructive in our current market climate, and transfers of plans have resulted in huge losses for some.

Yesterday, Senator Steve Warnstadt (D-Sioux City) and Representative Tyler Olson (D-Cedar Rapids) requested bill drafts in each chamber to repeal last year’s 403(b) changes. Senator Warnstadt warned that he could make no promises but was interested in hearing “horror stories” from disgruntled teachers.
The same is true regarding Representative Tyler Olson. He has already been contacted by TIAA-CREF and they are flying in a big player to meet with him.

Right now, CSG’s focus will be providing real life examples of damage that has been caused.

In addition, NAIFA (National Association of Insurance and Financial Advisors) will need to consider a fallback position should it become necessary. CSG will need to leave this to our team, but one suggestion would be to protect all relationships moving forward from this point. If the state changes carriers, the client would be able to retain his or her advisor.

Monday Mania

The fire alarm went off this afternoon, and while all the newbies grabbed their jackets and headed for the exits, Statehouse veterans stood their ground recalling the regularity of pranksters past.

The House Rebuild Iowa & Disaster Recovery Committee met this afternoon to discuss HSB54 the local option sales tax bill. This bill allows a city or unincorporated area located in a county in which the president of the United States declared a disaster to exist at any time during 2008 to impose a local option sales tax pursuant to Code chapter 423B using an expedited procedure. The bill requires the question of the imposition of a local sales and services tax to be submitted to the registered voters of a city or to the unincorporated areas of the county. The bill itself doesn’t add new taxes; it just accelerates the implementation date of a vote for more taxes.

Amendments were introduced which would make five changes to the original bill. One of the changes adds a second set of implementation dates. The amendments passed though the Republicans voted together against them.

A vote on the whole bill yielded 11 “ayes” and 6 “nos” with Republicans voting together against it. The bill passed and will move to Ways & Means.

The House may be debating the local option sales tax bill as soon as tomorrow afternoon.

Governor Culver’s Budget is expected to come out tomorrow. The rumor circulating earlier today was that he’s going to do a 10% across the board cut and let legislature figure out the rest. It turned out to be a little high as the Des Moines Register is now reporting at 6.5% budget cut affecting 205 of the state’s 280 programs. Click here to read the article.

Meeting the Newbies

With the new legislative session comes many new legislators – 27 in fact. Scott Weiser and I for the last two weeks have been calling out the freshman legislators to introduce ourselves, our clients and to give them a little advice. “Calling out” the legislators involves sending a note into the House or Senate Chamber requesting an impromptu meeting with them in their respective lobby. Weiser has been at the Capitol for awhile so he gives the advice while I mostly listen and promote my blog.

We start out by telling them about our clients and the key issues they face. If a bill comes up with the legislator’s name on it that a client is interested in we will call out that legislator to discuss it. Our job is to provide the legislators with information about the issue and tell them where our client stands on it. We will also provide the other side of the issue, but argue that our side is superior. The newbies will soon find out who they can trust to provide valuable information, and those who get the most information will ultimately be the most successful.

The other bit of advice we give is for them to make constituent work a priority. If the legislators allow it, there will be lobbyists in front of them all day long. They must devote a little time each day to constituent work and even plan to bring their campaign committees and neighbors down to the Statehouse for a tour and pictures with the Leaders. Keeping the voters happy is essential to ensuring one’s return to office.

We’ve been very pleased so far with the new legislators we’ve met with. Many bring new energy and enthusiasm and all have a desire to do well. Weiser recognizes that there are a couple days that stand out in the life a legislator: the day they send out their friends and family letter telling everyone they are going to run for office and sticking their neck out there, and the first day of session when they walk in and wonder just how they are going to do a good job after they’ve told everyone they will. Part of our job is to help them do well.

Funeral Held Today for Former Senator Mary Lundby

The House and Senate gaveled in today, but most committee meetings were cancelled in anticipation of the absences of those legislators attending former Republican Senator Mary Lundby’s funeral today in Marion. Senator Lundby died last Saturday at age 60 after a long fight with cervical cancer. She served 22 years in the Iowa Legislature.

Another notable death occurred on Monday. Former Republican State Representative Rosmary Thompson of Marion died at age 73. Thompson was elected in 1995 to fill Mary Lundby’s seat after her election to the senate and retired from the House in 2000.

New Legislators Exemplify Energy and Enthusiasm Needed in the Republican Party

The Conservative Breakfast Club met early this morning at the Republican Party of Iowa Headquarters. The Republican Party of Iowa’s new State Chairman Matt Strawn had just begun to speak before being interrupted so everyone could move their cars to avoid getting parking tickets from the State Trooper knocking at the door.

Chairman Strawn resumed giving an eloquent speech emphasizing the need for Republicans to stand up and band together to preserve our freedoms and our way of life. He noted the irony of Governor Culver’s plan to rebuild Iowa by going into debt during a world-wide economic crisis. Chairman Strawn also pointed out Culver’s idea of economic development is getting on a plane and flying to Washington to beg for table scraps. As Republicans, it is our job to stand up for fiscal responsibility and to protect Iowa’s economy.

Representative Annette Sweeney from Buckeye, Iowa and Senator Kim Reynolds from Osceola, both freshman legislators, spoke briefly about themselves and their runs for office.

Representative Annette Sweeney from House District 44 is a former teacher who returned Buckeye to manage her family’s farm after her father’s death when she was just 24. Representative Sweeney is the face of hardworking conservatives and the can-do attitude that is the heart blood of the Republican Party. To this, she credits her success as well as maintaining a positive campaign and emphasizing conservative values.

Senator Kim Reynolds is from Senate District 48 – geographically the largest senate district in Iowa – is comprised of 7 counties in Southwest Iowa. Senator Reynolds credited her success in the race in part to tireless door knocking in all corners of the district as well as maintaining a public presence at every opportunity. She also credited her experiences and contacts she made as the Clarke County Treasurer for the past 13 years to help her connect to voters in all counties.

Governor Branstad added that the party needs enthusiastic and energetic legislators like Representative Sweeney and Senator Reynolds, and that we must start now to recruit them.

Horse Study Says Races Good for Iowa Economy

An expansion of horse racing at Prairie Meadows should be considered as a way to increase revenues at the racino, according to a study presented to the Iowa Racing and Gaming Commission at their meeting on January 15th at the Stoney Creek Inn in Johnston.

Dr. Richard Thalheimer of Thalheimer Research Associates in Lexington, Kentucky presented the results of a new study commissioned by Iowa’s horse industry that details the economic impact that horse racing has at the track, at county fairs, and on the farm. The study follows a previous report from Thalheimer Research Associates confirming an increase in slot machine revenue at the track when live horse racing is being conducted.

“We are very pleased to be able to provide the positive details of horse racing’s economic impact here in Iowa,” said Wm. Leroy Gessmann, President of the Iowa Horsemen’s Benevolent and Protective Association, one of the study’s sponsors. “These are hard numbers that confirm the need for and the positive impact that additional horse racing opportunities will provide for Prairie Meadows’ bottom line and that of Iowa’s horse industry.”

According to the study, the Iowa horse racing industry generated a total direct and indirect economic impact of $123 million in expenditures and 2,180 full time equivalent jobs in Iowa in 2007. Owner and trainer direct expenditures around the state include labor, feed and bedding, veterinarian care, transportation and boarding. Breeder expenses in Iowa include labor, stud fees, registration expenses, feed and bedding, veterinarian expenses, investment, and other fees.

Future success for Prairie Meadows and the Iowa race horse industry is dependent on many factors and how success is defined by the stakeholders, according to the study. Policy makers should consider the following as they proceed:

An increase in race days and/or horses in training per day results in:

- Increased pari-mutuel revenue both on-track and from simulcasts of live races to other state and national betting locations
- Increased slot machine revenue from the relationship of live racing to slot machine wagering
- Increased spending and employment by the race horse industry
Increases in purses result in:
- Increased wagering revenues
- Increased value and supply of race horse breeding stock with associated “green space”
- Increased spending and employment by the race horse industry.

The study was commissioned by the Iowa Thoroughbred Breeders and Owners Association, the Iowa Horsemen’s Benevolent and Protective Association, the Iowa Quarter Horse Racing Association, and the Iowa Harness Horse Association.

Rebuild Iowa Committees Convene

The House and Senate Rebuild Iowa Committees met for the first time separately this afternoon and again jointly early this evening.

Representative Tom Schueller (D-Maquoketa) chairs the House committee and Senator Rob Hogg (D-Cedar Rapids) is the chair of the Senate committee. The committees are stocked with lawmakers from regions hit hard with disasters and others who have experience to take on the challenges presented. Representative Schueller is no stranger to rebuilding as he has his own reconstruction business. Representative Kerry Burt (D-Waterloo) is a firefighter who personally manned the rescue efforts in his area as a firefighter. Representative Mark Kuhn (D- Charles City) was singled out for the exceptional recovery efforts in his district and will be counted on to provide leadership and guidance in finding state-wide solutions.

The Rebuild Iowa Office (RIO) presented a detailed progress report to a joint meeting of the House and Senate committees. Overall, RIO was disappointed in the amount of funds they have received thus far from federal agencies including FEMA and the Department of Housing and Urban Development. The majority of funds necessary to rebuild will come from the feds and state funds will be used to fill in the gaps. Of the 500 people living in FEMA trailers after the floods, only 39 have moved out. The rest have 18 months from the time they moved in to find replacement housing. Where they rebuild and how they will pay for it are some of the key challenges the committees will address. Solutions are expected to arrive in the form of two bills proposed by the Rebuild Iowa Advisory Office.

State of the State

"The condition of the state is strong because the people of Iowa are strong."

Tuesday morning Governor Chet Culver gave his State of the State address. Last year Iowans survived relentless natural disasters and 4000 Iowa National Guardsmen were deployed making it the largest deployment from Iowa since the Civil War proving that Iowans are strong. Though I was France when the blunt of the floods ravaged Iowans the television footage of it was broadcast on the BBC and around the world. Iowans are strong and resilient and known for it world-wide.

Governor Culver stated that this “legislative session must be to rebuild this state which we all love.” With a projected $779 million budget shortfall this may seem like an unattainable task. However, as the Governor pointed out, Iowa has an AAA bond rating and he intends to use it. An ironic statement after he explicitly pointed out the relative strength of the State’s economy due to the lack of debt compared to states like California.

As the Governor proposed, Rebuild Iowa Investment Bonds will be sold to raise the funds necessary to rebuild and repair roads bridges, trails, railroad, public buildings, water treatment plants, sewer treatment plants, the utility grid and telecommunications. On the one hand, investment in infrastructure and roads will create and maintain jobs. State issued bonds are subject to tax exemptions as well.

On the other hand, Iowa has not traditionally sold bonds to fix infrastructure. Bonding is currently done for major buildings but is very limited. Over time it can become difficult to make the massive bond payments. Depending on how long the bonds are for, we would likely need new roads before the bonds issued for the old ones have even been paid for. At a time when the rest of the country is in dire financial straits as a result of over spending and taking on too much debt, do we really want to fall in line behind them?

The Governor also stated that he will not tax our way out of this budget shortfall. However, many Iowans would not be opposed to a gas tax increase if it meant improved roads. In the long run, this may be the more fiscally responsible solution and the time to do it is now while the price of oil is low and before we’re hit with a national gas tax increase.

On Lobbying

As a second year student at Drake Law School I opted to take the Legislation class last semester. It was taught by famed agricultural law expert and lobbyist Professor Neil Hamilton. As part of the course we studied the art of lobbying, and Professor Hamilton brought in a panel of lobbyists to discuss their experiences and answer questions. The following day, Professor Hamilton asked the class for our opinions on the panel and the overall consensus was that the panel was informative and should be kept on the schedule for next year. There was however one student who was adamant about never wanting to be exposed to the influence of a lobbyist again.

This student, though highly educated and halfway through law school failed to realize the true role and responsibility of a lobbyist. A lobbyist not only has the job of representing his or her clients’ interests but also has the job of educating legislators. Often it seems that people forget that legislators are generally average folks who are not experts on all issues that arise in the hundreds of pieces of legislation placed before them. The lobbyist must provide the legislator with information that enables him or her to make educated decisions about issues that will affect the clients.

But who are these clients? The clients are Iowans – they are the People with narrowly tailored interests represented by the lobbyist in the People’s House. Nearly every interest arguably has the opportunity to be represented (with the exception of Tobacco interests) by a registered lobbyist. Those without a registered lobbyist are not without recourse. Individuals are free to contact legislators about issues affecting them, and the legislators listen.

The most effective lobbyists have reputations for being impeccably honest and resourceful. Iowa ethics and campaign laws also regulate lobbyist activity and, at least in Iowa, lobbyists strictly adhere to them. In the event a lobbyist has their reputation tarnished by some other than honest act, they may as well pack up and go home because they can no longer be relied upon to provide legislators with accurate and honest information.

The student in my Legislation class generally offended by lobbyists suffers from a preconceived, gross misconception of the necessity of lobbyists in the legislative process and our system of representative government. Lobbyists provide a much needed service in educating legislators and representing clients’ specific interests. The art of lobbying is capable of being mastered by a select group of individuals in possession of the personality, persistence, and patience to persuasively communicate their client’s needs in the audience of legislators.

The 83^rd General Assembly gaveled in on Monday and the lawmaking process has begun.