Nicole Woodroffe to Join Senate Republican Leader McKinley's Staff

Nicole Woodroffe has accepted a position as one of Senate Republican Leader Paul McKinley’s (R-Chariton) top assistants and will be leaving Capitol Strategies Group at the end of the year.

“Nicole Woodroffe has been a tremendous asset to Capitol Strategies Group and our clients,” said R. Scott Weiser, CSG President. “Nicole’s work ethic, organizational skills, and positive outlook on life will serve Senator McKinley well.

Woodroffe is a 2010 graduate of Drake Law School and is a JAG Officer with the United States Army Reserves.

Adjournment Sine Die

The 2010 legislative session adjourned Tuesday afternoon sine die at 12:22 in the House and 12:48 in the Senate.

“Sine die” is a Latin phrase meaning, “without day” or, “without assigning a day for a further meeting.”

The final bill to get passed in both chambers was the Standings bill, HF2531.

Despite direct calls from the governor’s office to wavering senators, the trial-lawyer led effort to expand awards in wrongful death cases, HF758, did not pass the Iowa Senate, and it is now dead.

The session ended successfully during daylight hours on the 79th day this year. A year shortened to 80 days down from the usual 100 days to save the state money in the midst of hard economic times.

CSG is continuing to monitor bills that have passed both houses as they make their way down to the governor’s office.

"Shall Issue" Passes House

Both chambers of the Iowa State House adjourned late last Saturday night. They returned Monday in attempt to end the 2010 legislative session before per diem pay runs out on March 31.

The House passed the NRA bill, SF2379, after beginning debate on it mid-Monday afternoon. Perhaps most significantly, the bill changes Iowa code language to provide that sheriffs shall issue permits to carry rather than may issue them. “May issue” leaves it up to the sheriff’s personal discretion whether to issue a permit or not. The effect of this was to have 99 different issuing policies for every sheriff in the state.

Permits to carry will be issued to a person who is not subject to the disqualifying criteria laid out in the bill, and are good for five years. Applicants for permits will still have to demonstrate firearm safety by completing certain firearm safety courses or training programs, participation in shooting competitions, or by completion of a small arms course while serving in the armed forces of the United States. The bill will also make it a crime of a serious misdemeanor to carry a firearm while under the influence.

The NRA bill picked up an amendment in the House, requiring it to go back to the Senate for final approval.

Colorful Attire Signals Sine Die

Both chambers adjourned last night just in time to watch the UNI game, but reconvened Saturday in effort to bring the legislative session to a close.

Last night, the Senate passed out the Standings bill and messaged it over to the House. That and the Rebuild Iowa Infrastructure Fund bills are the two major pieces of legislation that are left to debate. Also in the fray is a NRA sponsored bill that some feel is a must-pass in an election year where legislators depend on their NRA ratings to gain support.

The House was scheduled to reconvene Saturday at 9:00am, but by 11:30 had just said the Serenity Prayer and gaveled in. The concern in the lobby is that both caucuses on the House side have spent the morning writing amendments to the Standings bill. If the House doesn’t accept the Senate version as is, any new amendments the House adopts will send the bill back to the Senate for approval.

The Senate has spent a majority of the morning debating the NRA bill.

Senator Rielly was seen wearing a pink blazer this morning, and just a few other lobbyists and legislators were similarly seen wearing bright pink and orange shirts and seersucker. Such attire is meant to signal the last day of session; however it may be premature. Missing is the distinguished green-paisley jacket worn by Senator Gronstal’s Chief of Staff Eric Bakker which signals the assuredness of sine die.

Wrongful Death Bill Stalls in Senate

Wednesday night the Senate called up HF758, a bill which would increase damages recoverable for wrongful death. Specifically, the bill allows recovery of damages for the decedent’s loss of enjoyment of life. This is in addition to damages for loss of consortium and lost economic productive value of the decedent.

Somewhat cleverly, Senator Merlin Bartz (R-Worth) filed a strike-all “abortion amendment” which would allow recovery for expense and actual loss of services, companionship, and society resulting from the injury or death of an unborn child. The amendment would allow a personal representative of the estate of the unborn child to file a wrongful death action on behalf of the unborn child.

In connection with this amendment, Bartz has also filed a “gay marriage amendment.” This amendment specifies that for the purposes of that section of the code, “spouse” means a person of the opposite sex who was married to the decedent at the time of death.

Between frequent breaks for the parties to caucus, the abortion amendment was withdrawn. At 6:09pm the Senate again stood at ease for Republicans to caucus.

Report on Texting Ban Receives House Approval

Tuesday afternoon the House voted to adopt the conference committee’s report on HF2456. The report combines the two previously adopted texting-ban bills from the House and the Senate. Approved by a vote of 66-33, the report will now be sent over to the Senate for a vote. Passage in the Senate will mean passage of the overall bill.

The report provides that graduated drivers license holders are prohibited from using any electronic communication device or electronic entertainment device while driving – unless the device is permanently installed in the vehicle. No drivers in Iowa will be able to write, send, or read a text message while driving. This does not prohibit adult drivers from using their phones’ mapping or GPS features while driving.

In other Statehouse news, the infamous Standings Bill was dropped last night – the catch-all bill that signals the near end of session. Most people are still predicting session will end by this weekend even though Obama’s visit to Iowa City Thursday may draw a few loyal supporters away from Des Moines for the day.

Committee Close to Compromise on Texting Ban

The conference committee on HF2456, the texting ban, met yesterday to discuss their goals and concerns for the House and Senate versions of the bill. By rule, the committee can only consider and discuss the versions of the bill that were approved by the House and Senate.

The House approved-version of the bill would ban all teen drivers under 18 from using any electronic communication device or electronic entertainment device while driving. The Senate version banned all drivers from writing, sending, and reading a text message while driving. This morning, the committee released a rough draft of the bill that combines the language from each version.

Representative Rick Olson (D-Polk) wanted to ensure that the texting ban provided an exemption for safety officers and truckers to read necessary communications they receive on the job. Olson also wanted to ensure that officers would not be able to using a texting stop as probable cause to charge the driver with another crime.

Olson also made an important point that officers will not be able to confiscate or look into the phone of a driver without a warrant. A warrantless search would be unconstitutional under the Fourth Amendment:

“The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated . . . .”

Several exemptions to reading a text message while driving were discussed for truckers, medical personnel, public safety officers, volunteer firefighters, and even organ donor coordinators. Senator Heckroth voiced concern over providing too many exemptions to reading a text message, wondering where the line would ultimately be drawn. However, he is open to some exemptions.

The U.S. Department of Transportation announced in January a ban on texting for all commercial truck drivers. See the press release here. For CRST and TMC trucks, it is company policy not to write, send, or read a text while driving.

Most of the committee members agreed that they have an important opportunity to make Iowa roads safer. The committee will meet today at 11:00 to continue the discussion.

Findley, Jamison Speak at Conservative Breakfast

GOP candidates Brenna Findley for Attorney General and Dave Jamison for State Treasurer both spoke Tuesday morning at the Conservative Breakfast Club in Des Moines.

Dave Jamison has been the Story County Treasurer for twenty-eight years and recently traveled twenty-eight counties announcing the launch of his campaign for State Treasurer. I personally know Dave from my years as an Iowa State College Republican. Dave, and the rest of the Story County Republicans, volunteered many hours and give invaluable advice to help the ISU CR’s obtain and maintain a strong presence on the Iowa State campus and in the Ames community.

Dave is running on a platform which emphasizes the need to place Iowans first: first in treasury and management, first in transparency, and first in protecting taxpayers’ dollars. Dave also emphasized the need to change the culture within the State Treasurer’s office to one that values fiscal restraint and economic discipline. He also intends to use the office as a bully pulpit to spread those values to other areas of state government.

Brenna Findley spoke next, and within minutes it was evident that the group at breakfast was impressed. Findley grew up on a farm in Dallas County Iowa where she learned firsthand, conservative values and hard work are the keys to success. For the last seven years she has served as Congressman Steve King’s Chief of Staff, advising him in his role on the House Judiciary Committee.

She said that on occasion she has been asked how old she is. Her reply is that she is 34 – the same age current Attorney General Tom Miller was when he first won the office thirty-two years ago. Findley, who received her law degree from the University of Chicago, said a lot has changed in the legal profession in the last thirty-two years, and she plans to bring that knowledge to the office of Attorney General.

Findley also intends to fulfill the AG job description by protecting all the rights of Iowans, as opposed to prioritizing the office as an advocate for consumer protection issues, as it would appear today. Through her travels across the state thus far, she has found that most Iowans don’t know exactly what the AG does for them, but they do know that their rights as Iowans have not been fully protected. Findley also stated that the AG can play a key role in shaping Iowa’s business climate by controlling what law suits the office files and what regulations it tries to pass. As AG, Findley will advocate for Iowans and work to make the office open, accountable, and transparent.

Iowans can have confidence in these two GOP candidates and have much to look forward to in this year’s state elections.

Schools may Soon Consider Using Green Cleaning Products

The two-year endeavor to get green cleaning products into Iowa’s schools ended this evening with the passage of HF 823 in the Senate. Senate File 2335 was the Senate’s version of the bill that was initially brought up for debate. A vote passed to substitute it for the House’s version of the bill. This move rendered Senator Johnson’s (R-Osceola) amendment out of order, and HF 823 passed without debate.

As Senator Amanda Ragan (D-Cerro Gordo) pointed out in the discussion of this bill, a similar rule is already in place that requires state government buildings to use green cleaning products. With Governor Culver's signature, schools will now have that option as well.

Text-Messaging While Driving

Also today, the House insisted on its amended version of HF 2456 which changed the bill from prohibiting text-messaging while driving by all drivers, to a prohibition on all cell phone use by holders of graduate drivers licenses (teens under 18). The bill has now been delegated to a conference committee, which will most likely work out the differences between the House and Senate to get some form of the bill passed yet this session.

The ten committee appointees consist of Senators Danielson as Chairman (D-Black Hawk), Rielly (D-Mahaska), Heckroth (D-Bremer), Reynolds (R-Clarke), and Kapucian (R-Benton); and Representatives Hanson as Co-chairman (D-Jefferson), Tjepkes as Co-Chairman (R-Webster), R. Olson (D-Polk), Lykam (D-Scott), and Hagenow (R-Polk).

The lingering prediction is that the bill will get the most votes if it combines the current version – prohibiting all cell phone use by GDL holders – along with language that would prohibit text-messaging while driving by all drivers. Such a version would also do the most to increase safety on Iowa roadways.

Bills in Action - Week Nine

By this time of the session, not may new bills get filed, and it is apparent that the session is starting to wind down.

The Senate this week resisted the House’s amendment on the texting ban, HF2456. The amendment changed the language to prohibit teens only from all cell phone use while driving. The bill was then sent back to the House and will likely be referred to a conference committee. There, members from both houses will meet to resolve their differences in effort to get some form of the bill passed.

This week, Governor Chet Culver signed into law SF2246, which, among other things, ensures home rule power to decide which taxi cab companies can operate within a municipality. Cities now have the authority choose safe, reputable, and accountable cab companies to service their citizens, and to bar other companies that don’t meet their standards.

Also on its way to the Governor is HF2452, which cleans up part of the OWI code section, and also allows OWI offenders to obtain a temporary restricted license by first installing an ignition interlock device. The bill allows this to be done within 45 after the license is revoked instead of one year.

This is a measure supported at the federal level and also by MADD. Studies have shown that despite having a license revoked, people will drive anyway. The ability to get a temporary restricted license sooner, along with an ignition interlock device, will prevent the offender from driving drunk again during the revocation period.

In a signing ceremony on Wednesday, the Governor signed into law the Government Reorganization Bill. The bill reorganizes state government in a way that is projected to save the state $126 million. The Revenue Estimating Conference is expected to update its revenue forecast today, which will determine exactly how much more will need to be cut from the state’s budget.

Texting Ban Now Limited to Teens, Passes House

House File 2456, the ban on texting while driving, came up for debate in the House today and passed as amended 55-41.

Much debate occurred over whether to pass amendment H-8328, by Representative Scott Raecker (R-Polk), limiting the texting ban to minors. It was ultimately approved and added to the bill.

Prior to that vote, Representative Ako Abdul-Samad (D-Polk) wisely pointed out that adults need to set the example for children and teens and must be included in the texting ban as well. Other Representatives noted that Iowans have been loud and clear when saying they want a complete ban on texting for all drivers.

The house amendment further prohibits teens from using any “electronic communication device or electronic entertainment device” while driving. An exception is included if the device is permanently installed in the vehicle or is a “portable devise which is operated through permanently installed equipment.”

The bill will now be sent back over to the Senate. A similar amendment, limiting the ban to teens, was previously struck down in the Senate.

Senate Dumps a Bucket of Bills

In what is seen as a move to end the session within the allotted 80 days, the Senate dumped about 26 bills this morning from the calendar. These bills will not likely see the light of day again this year.

Among them, the ones CSG were watching included SF2337 providing minimum paid sick and safe time for employees; SF2307 increasing the civil damages recoverable for injury to or the death of a parent or spouse; SF2214 legalizing betting on professional sports. The first two of these bills would have ultimately increased costs for businesses.

Friday March 5, marks the second funnel deadline where Senate bills must be passed out of their House committees and House bills must have made it out of Senate committees. If not, they’re done.

A notice also went out that all gaming bills would be dropped for the year. While was not what some horse people wanted to hear, it was beginning to be apparent that bills in need of heavy lifting would not make the cut.

By Monday we will have a much narrower view of what bills we’ll be left to work with. In the meantime, its sunny and feels like 45 degrees in Des Moines. Spring fever aside, the prediction is session will be over the first week in April.

3M Meets with Governor Culver

During 3M's Day on the Hill Tuesday, 3M representatives got the chance to sit down with Governor Chet Culver and talk briefly about the company's presence in Iowa.

Culver, who was recently back from Iraq, also talked a bit about his trip. He was invited to go by the Department of Defense, and was able to visit some Iowa National Guard Members in country. Culver noted that things seemed calm and that rebuilding efforts were well under way.

3M Day

3M-company representatives will be arriving Tuesday afternoon to meet with the legislative leaders, as well as the legislators from their own districts, to discuss issues important to 3M.

3M has three locations in Iowa: manufacturing centers in Ames and Knoxville, and 3M's largest domestic distribution center in Forest City. In all, 3M employs 1,100 Iowans across the state, has a payroll of $57.7 million, pays $1.3 in state and local taxes, and has made over a half a million in charitable contributions.
Remarkably, throughout the economic climate of the couple of years, 3M has been able to avoid layoffs, and has actually hired a few new people.

The main issue 3M will be discussing with legislators is the green cleaning products initiative for Iowa's schools.

An amended version of House File 823 passed in the House last night. The amendment changed the bill to encourage public schools, institutions under the control of the state board of regents, community colleges, and state agencies to use environmentally-friendly cleaning products for two years. Many state buildings already use green cleaning products, and proudly announce it with a sticker displayed in the doorways (see picture above).

Beginning July 1, 2012, these buildings will have to be cleaned with green cleaning products unless the board of directors of the school district, or a president of a community college or regent institution votes to opt out of the requirement - for any reason. This is different from the previous version which allowed schools to opt out of using green cleaning products if their use would result in an increased cost.

When its all said and done, this bill is not a burden, but a good thing for teachers, kids, and the janitorial staff who are subjected to toxic of cleaning products everyday. The State Capitol is cleaned with green cleaning products, why not schools?

Highlights from Week Seven

Week seven of the session saw much movement of bills in both houses. Here are some of the highlights:

HF 2456 – Texting While Driving.
The bill passed the Senate this week with an amendment to include a prohibition on reading texts or emails while driving. The prohibition on reading texts was initially left out of the bill since there is not a corresponding prohibition on reading other things like newspapers or one’s GPS monitor. The bill as amended is sitting in the House.

SF 2246 – City Regulation of Taxi Cabs.
This bill is on its way to the Governor for signing, and allows for local authority in exercising home rule powers in the regulation of taxi cabs and limos. What it accomplishes, is that cities would be able choose what taxi cab and limo companies can operate within the city’s limits to ensure only responsible and trustworthy companies are offering services to citizens.

SF 2220 – Motor Carrier Contracts.
Another bill on its way to the Governor; this prohibits certain indemnity provisions from contracts between motor carriers and the shippers/warehouses, in which the motor carrier would be liable for damages caused by the warehouse’s negligence. This bill places the blame where due – motor carriers will no longer be responsible for the costly mistakes caused by shippers in loading or unloading goods from trucks.

HF 758 – Increases Damages for Wrongful Death.
Amendments were filed this week on this bill that was introduced last year. The bill will allow additional damages awarded to a spouse or child for loss of the decedent’s enjoyment of life. These damages are in addition to those awarded for loss of the economic productive value of the decedent had he lived. Passage of this bill would have the effect of greatly increasing the cost of insurance to motor carriers and all businesses.

The second funnel deadline is next Friday March 5, whereby House bills must be voted out of Senate committees and Senate bills out of House committees.

Texting Ban NOT a Race Issue

Early this week in the Des Moines area, an anonymous robo-call went out to an unknown number of residents urging them to contact Representative Ako Abdul-Samad (D-Des Moines) and Representative Rick Olson (D-Des Moines) and ask them to oppose the texting ban bill. The call was not opposed to the bill because it infringes on civil liberties, or the usual arguments the opposition makes, but because it will allegedly give police officers another means for racial profiling.

Click here to hear the call on WHO’s website.

John Ulczycki, of the National Safety Council, said they have seen this argument made before when other states have tried to pass a texting ban, but it simply is not true. As the robo-call speaker claims, this bill will enable officers to pull a driver over for being a certain race, but allege the driver was texting.

While this is an unlikely scenario, if racial profiling is occurring, that needs to be addressed in a separate bill. Representative Abdul-Samad agreed in saying officers who engage in racial profiling have other issues and serious “social ills.”

The proposed ban on texting, HF2456 and SF2321, will prohibit drivers from typing or sending a text message or email while driving. The goal is make roads safer for Iowans. The National Safety Council would like to see the bill include a ban on “reading” text messages as well.

“While there are many sources of driver distraction, there is heightened concern regarding the risks of texting-while-driving. The act of composing, sending or reading text messages interrupts drivers’ cognitive attention, causes vision to be directed away from the road, and compromises manual control of the vehicle.”

Naturally, if there were 200,000 accidents a year as a result of eating a BigMac while driving, laws might be promulgated for that. In the meantime, the ban on texting while driving will make our roads safer. It is not a tool for officers to engage in racial profiling.

[At 2:30pm Tuesday the HF2456 is up for debate in the House.]

Fix Your Car

Thursday, CSG, on behalf of the Iowa Collision Repair Association, asked Representative Paul Shomshor, Chairman of the Ways & Means Committee, to introduce a bill that would change the way certain materials used in auto-body repair shops are taxed.

Currently, both parts and labor that go into vehicle repair are taxed to the consumer. That tax is paid on the retail price of the parts and labor. “Parts” includes the “big” parts, like bumpers and corner panels.

“Materials” used in auto repair include things like paint, putty, sandpaper, and cleaning compounds. The costs of these materials are taxed to the auto body shop itself and not the consumer. This results in the shop paying sales tax on the wholesale price of the materials.

If the consumer were to pay the tax on these materials instead of the shop, the consumer would pay a tax on the retail price – this slight increase in taxes paid would add an estimated $1.8 million to the state’s revenue.

Iowa is one of only a few states in the nation that require the sales tax on materials to be paid by the auto-body shop. Passage of this bill will lighten the overall tax burden on these small business owners.

Senate Study Bill 1210, in the Senate Ways & Means Committee is awaiting a fiscal impact statement before it will move. The introduction of the House bill and the momentarily static Senate version elude last week’s funnel deadline because they are Ways & Means bills.

Puppy Mill Bill Passes House

After much delay and some debate, the Puppy Mill Bill passed the Iowa House Wednesday afternoon with a vote of 77-22.

Of the hundreds of bills introduced at the state capitol this year, the so called “Puppy Mill Bill,” HF2820, is getting some of the most attention. CSG does not have an interest in the bill other than observing the furry activity surrounding it.

The bill would raise the licensing fee for breeders to fund inspections of puppy mills after receiving complaints of neglect or mistreatment.

Commercial breeders would be held to a “general standard of care,” which says that the animal must not be lacking adequate food, water, housing, sanitary control, grooming practices affecting the health of the animal, or veterinary care.

The bill creates an interesting dilemma for legislators who don’t want more government involvement in business, but also don’t want to be seen as voting against puppies.

Commercial breeders have been opposed to the bill and fear the department will receive countless complaints from people who dislike puppy farms in general. This could result in unnecessary and costly inspections. Several amendments have been added to the bill which may have changed groups' positions on it.

The Iowa Voters for Companion Animals were at the Statehouse today advocating the passage of the bill which will now move to the Senate as amended.

Life & Death at the Statehouse

The fury of activity this week at the statehouse is designed to end consideration of bills that do not have enough support to be voted out of their committee of origin. Proposals that do earn a majority of committee member votes are then advanced and placed on the debate calendar for consideration. The next deadline in the legislative “funnel” comes in three weeks when bills must be voted out of committee in the other chamber.

In other news, Republicans in both chambers employed a parliamentary procedural to attempt to force debate on a proposal to amend the constitution as it relates to the definition of marriage in Iowa. The attempt was defeated by Democrats who, with the exception of one member in each house, voted to block consideration of the measure.

Business interests became more alarmed this week after legislation to require sick leave for employees was advanced in the Iowa Senate. This follows the announcement last week that action would begin on the so called “Fair Share” legislation and a bill to require “prevailing wage” on certain construction projects.

Funnel Deadline Fast Approaching

With Friday’s first funnel deadline approaching, several bills of interest to CSG came out of committee yesterday. For a bill to survive the funnel, it must be an Appropriations, Government Oversight, Ways & Means, sponsored by leadership, or get voted out of its Senate or House standing committee. Study bills that get voted out of committees arrive on the calendar as committee bills with a new bill numbers. All other bills are done for the session.

Tuesday, the House Transportation Committee voted out HF2021 which classifies text-messaging while driving as reckless driving and HSB616 which tightens restrictions on Iowa’s graduated driver’s license system. Both bills have the support of the National Safety Council for now.

House Study Bill 650 was passed out of the House Judiciary Committee with the understanding that it would be amended on the floor. This bill will allow the DOT to grant all temporary restricted licenses (TRL) without requiring the courts to order the department to do so. It also allows repeat OWI offenders to obtain a TRL after a 45-day hard suspension of their license instead of 90 days. However, the offender must have an ignition interlock device installed in his car.

During the committee meeting, Representative Jeff Kaufman pointed out that MADD – Mothers Against Drunk Driving – supports this code change as the facts show that offenders will often drive their vehicles under a suspended license. Allowing offenders to obtain a TRL with the ignition interlock device 45 days sooner will prevent them from driving under the influence in that time period keeping our roads safer.

Dems Nod at Labor

Governor Chet Culver issued an Executive Order this week that will require state government construction projects to consider using Project Labor Agreements. Culver made his remarks to meeting of union members attending the Iowa State Building and Construction Trades Council and the AFL-CIO on Wednesday. On Thursday, House Democrats introduced two separate proposals known as “Fair Share” and “Prevailing Wage”. The first proposal allows public employee unions to charge non union workers for services provided by the union. Private companies on government projects would be required to pay the “prevailing wage” in their area.

Next week, bills must be passed out of their assigned committees to receive further consideration this year. However, many bills are exempt from this requirement and “live rounds” can be amended. These primarily include bills in Appropriations, Ways and Means, and Government Oversight committees, Bills cosponsored by Majority and Minority Leaders of one House, Companion Bills sponsored by the Majority Leaders of both Houses after consultation with the respective Minority Leaders, Conference Committee Reports. (see Iowa Code Sec. 17A.8(9)).

Submitted by Scott Weiser, President of CSG

Combined Reporting Resurfaces in Subcommitee

The Senate subcommittee on combined reporting, SSB3122, met this morning in an information gathering session. The committee consists of Senator Pam Jochum (D-Dubuque), Senator Herman Quirmbach (D-Ames), and Senator Randy Feenstra (R-Hull).

Combined reporting would require corporations with entities outside the state of Iowa to combine their total incomes from all those entities on their Iowa state income taxes. In theory, this would increase state corporate income tax revenue $42-109 million dollars said Jim McNaulty of the Iowa Department of Revenue. Eight to ten-thousand corporations in Iowa would be adversely impacted by this.

Currently, Iowa only imposes income taxes on corporations within the state’s borders. It is one of the key benefits to doing business in the state of Iowa. Ed Wallace, president of the Iowa Taxpayers Association, which represents 154 Iowa companies, said ITA is adamantly opposed to combined reporting as it frustrates stability and predictability in an already shaky economy. Increasing corporations’ tax burdens does nothing good in this economic climate, and when companies see combine reporting, the decision to move or expand elsewhere is easily made.

Combined reporting is the equivalent of anti-economic development John Gilliland, representing the Iowa Association of Business and Industry, stated. ABI is comprised of 1,400 companies and over 300,000 employees statewide. ABI members are united in their belief that combined reporting is not good for the state. Iowa should aspire to have more business growth not less Mr. Gilliland concluded.

The only advocate to speak for the bill was from the Child and Family Policy Center. Their representative, Mr. Elias, expressed the group’s desire to raise revenues for Iowans by closing the “significant tax loopholes.” Companies consider “more important” things than the corporate tax structure of state when considering whether to do business there, he claimed.

Senator Feenstra, responded to the comment by Mr. Elias, by asking what is the number one reason corporations move in or out of a state. Government interference, Senator Feenstra stated. A study by Ernst & Young found that combined reporting negatively impacts states’ economic climates. Maryland recently withdrew its combined reporting statute after finding they did not take in the expected increase in revenue. Senator Feenstra, a small business owner himself, concluded by saying that he was really disappointed that this bill was even coming forward.

Senator Quirmbach ended the subcommittee meeting by exclaiming he could not be “more diametrically opposed” to Senator Feenstra. The current unitary tax system discriminates against small business in Iowa and it is small businesses that provide for the bulk of employment. Senator Quirmbach made the diabolical reference to the “Walmarts” of the world who shift around their income taxes to avoid paying corporate taxes at all, as the claim goes.

CSG sides with ABI and ITA in being adamantly opposed to combined reporting reporting legislation.

Bill Legalizing Sports Betting Moves Forward

Senate File 2129, legalizing sports betting in Iowa, was passed out of its subcommittee this morning. The Senate subcommittee met at 8:15 this morning in Senate President Jack Kibbie’s office. The bill was amended to specify betting on professional sports only as opposed to college sports.

Senator Kibbie (D-Emmetsburg) pointed out that we know sports betting goes on, so we might as well legalize it. Billions of dollars are bet on professional sports world wide – why not in Iowa?

However, the legalization of sports betting in Iowa hinges on the passage of federal legislation legalizing it first. Currently, four states already have professional sports betting as their laws were grandfathered in by the courts.

Senator James Seymour (R-Woodbine) spoke against the bill, stating that there are ample opportunities for gambling already in Iowa, and in the current state of the economy, more don’t need to be added.

The bill will now move to the full committee of State Government for consideration.

Budget Bill & NAIFA on the Hill

This Wednesday the Iowa chapter of the National Association of Insurance and Financial Advisors (NAIFA) met in Des Moines to discuss their legislative agenda and meet with legislators at the State House. The group had a great turnout as they become stronger and more organized every year.

Representative Rod Roberts, current gubernatorial candidate, spoke at the group’s luncheon about the state of the economy and business climate in Iowa. Roberts fielded several questions from members to this regard and about the Governor’s budget which came out yesterday. By state law, the budget cannot exceed 99% of projected revenue, leaving 1% as savings. In recent years, a budget has been passed “notwithstanding” the law, or exceeding the limit. Roberts filed a bill yesterday that would add the 99% spending limit to the state’s constitution.

The Governor’s proposed budget relies heavily on the “reorganization” of state government, SSB3030. Some however, are calling it “de-organization” because the bill appears to just shift responsibilities from one agency to another. Governor Culver touted the reorganization would save the state $200 million, but the Legislative Services Agency predicts it will come up short and only save $43 million.

NAIFA-Iowa’s day concluded with the group meeting in the offices of House Minority Leader Kraig Paulsen, House Majority Leader Kevin McCarthy, Senate Majority Leader Mike Gronstal, and Senate Minority Leader Paul McKinley. NAIFA-Iowa was well received by all the leaders and had a unique opportunity to directly speak to them about their issues and actively engage in the political process.

By the Numbers: Texting While Driving

Two-hundred thousand vehicle crashes a year are caused by text-messaging while driving. The number of crashes caused by all cell phone use is 1.6 million. A person is 23.2 times more likely to be in a crash while texting. These numbers are staggering, and with 270 million cell phone subscriptions in the United States, they are only going to get worse.

John Ulczycki, of the National Safety Council out of Chicago, addressed the House and Senate Transportation Committee meetings today. Mr. Ulczycki is an Iowa native and said texting while driving is an issue that causes him as well as the NSC grave concern. The NSC is a membership council whose members include cities, organizations, and employers. It represents 20,000 members, 50,000 employers and 8 million employees. It truly represents a cross section of American businesses.

The NSC decided to take a position on the issue of text messaging while driving, and over 500 NSC members companies have prohibited employees from using cell phones while driving. Initially, employers were concerned about decreased productivity of employees, but this has not proved to be the case. Millions of people in the United States are already under some sort of prohibition of using cell phones while driving. Eighty per cent of the nation is in support of a texting ban.

Texting while driving represents a distraction unique from other driving distractions such as reading newspapers or yelling at kids in the back seat – these distractions are not the cause of 200,000 vehicle accidents each year. When a specific behavior causes that much harm, legislation prohibiting it is warranted, Mr. Ulczycki formulated.

Laws actually make a difference in changing peoples’ behavior, whereas we’ve learned in the past, that education alone is not enough. In 1971 a massive campaign was launched in effort to educate the public about the need to use safety belts in vehicles. Ten years and over a million dollars later, seat belt use was the same as it was in the 70’s at 14 per cent. After seat belt laws were passed in the 80’s, seat belt use is now at 84 per cent. This exemplifies the need for legislation banning texting, education on the dangers simply is not enough.

Just today, U.S. Transportation Secretary Ray LaHood announced a ban on texting while driving for commercial truck drivers and school bus drivers nationwide. Nineteen states already have a ban on texting while driving. Let’s put Iowa in the lead among them.

Today at the Statehouse

The Green Cleaning Bill has been assigned to a subcommittee of the House Environmental Protection Committee. The bill encourages public schools and state buildings to use green cleaning products for two and one-half years, and requires such use from then on. Subcommittee members include Chris Hagenow (R-Des Moines), Curt Hanson (D-Fairfield), and Subcommittee Chairman Nathan Reichert (D-Muscatine). The subcommittee is scheduled to meet in the House Lounge today at 11:30, however, we have not yet received our amendment, making procedural changes, from the bill drafters.

Also today, John Ulczycki of the National Safety Council will speak to the House and Senate Transportation Committees on the perils of texting while driving and the need for legislation penalizing the practice. Numerous bills are pending in both houses on the subject. House Transportation meets at 1:00 in Room 103, and Senate Transportation meets at 2:30 in Room 24.

Republican Revolution

Hope and Change belonged to the Republican Party Tuesday night and Republicans in Iowa have something to be optimistic about as well.

“This is the people’s seat!” Republican Scott Brown’s win in Massachusetts is not just huge – it is truly a historic and revolutionary event. Massachusetts voters from all parties went to the polls today intent on sending Washington a message and that message is clear. Americans will not tolerate the kind of closed-door disingenuous politics that we have been plagued with over the last year. While the implications for Washington and national politics may be evident, the trickledown effect on individual states will be a shot in the arm for Republicans and a warning for sitting Democrats and wayward Republicans.

Des Moines Republicans gathered early this morning at the Conservative Breakfast Club held at RPI Headquarters to hear an address by Jim Gibbons, former ISU wrestling coach and current candidate for U.S. House District 3. Gibbons emphasized his background as an Iowa boy brought up on Iowa values and a strong work ethic, who wants to take some of that to Washington. Based only on this speech, Gibbons appears to be very electable – but so did Jeff Lamberti and Stan Thompson in recent years. Gibbons is just one of five Republican candidates vying for Congressman Boswell's Seat. State Senator Brad Zaun, Dave Funk, Dr. Pat Bertroche, and Mark Rees are also in the race.

Also this morning former governor Terry Branstad officially announced his candidacy for governor at the Iowa State Historical Building. A crowd of over 200 people of all ages gathered to hear the historic announcement. The Governor was introduced by Representative Jeff Kaufman who aptly noted that it was Governor Branstad that signed the Defense of Marriage Act in Iowa in 1998. Branstad gave a great speech, and the event was very well executed overall. Attendees left feeling hopeful and optimistic about the future of Iowa, as well as their own.

Governor Branstad’s announcement and Scott Brown’s win today are just the hope and change needed to get the state and the nation back on the path of accountability, prosperity, and freedom.

Week in Review

Culver Opens Session with Reorganization Plan
Governor Chet Culver told legislators during his State of the State Speech on Tuesday that he would work with them to do a complete reorganization of state government. In fact, House Study Bill 565 is already under consideration with over 250 pages of changes to Iowa’s structure of government. Lobbyists and legislators are scrambling to weigh the impact on clients and taxpayers. The governor did not release details of his budget and was not specific about how he intends to pay for new spending, other than a suggested transfer of Road Use Tax Funds to pay for the operations of the Iowa State Patrol.

Short Session Prompts Rare Friday Debate
The Iowa House of Representatives debated several education funding bill during a Friday morning session today. Leaders are attempting to cut this session to 80 days rather than the normal 100 to save money. This action is prompting a very short window for bill introductions and committee work.

CSG Interests

3M: Work has begun to amend House File 823, the “Green Cleaning” legislation introduced by Majority Leader Kevin McCarthy (D-Des Moines). Representative Nathan Reichert (D-Muscatine) is interested in working with 3M and has asked that he be selected as Chair of the subcommittee to consider the bill. We anticipate that we will have a subcommittee meeting as early as next week.

IAHBPA: CSG has approached Rep. Brian Quirk (D-New Hampton) to approve the drafting process on account deposit wagering, eliminating the sunset date on horse purses, and direct funding of IAHBPA from new revenues generated by ADW. We are also watching the activities of the Standardbred lobby as it appears that they will seek to fund their county fair operations from the current purse pool.

Motor Trucks: Governor Culver’s proposal to scoop over $50 million from the Road Use Tax Fund to pay for the operation of the Iowa State Patrol received a very cool reception at the statehouse this week. Although Democrats cheered wildly for many of the Governor’s initiatives, the chamber was silent when he pleaded the planned transfer. We are on guard for any labor initiatives relating to our ability to choose medical care for workers compensation injuries or any renewed efforts to reclassify our contractors employees.

No Texting While Driving!

Capitol Strategies Group will be working hard to ban texting while driving this year, as we have recently been retained by the National Safety Council.

Two bills in the House and one in the Senate have already been proposed on this issue.

House File 2020, proposed by Representative Adul-Samad and Representative Hanson, goes a little further than just texting, and prohibits a person from using a cell phone in any manner while driving. This new section of code will go in § 321.363A. Exceptions are provided for emergencies and if you’re at a complete stop off to the side of the road. Caught violating the new law will cost you $30 as a simple misdemeanor.

House File 2021, proposed by Representative Tjepkes, amends the “Reckless Driving” section 321.277 of the code to classify text messaging while driving as reckless driving. Specifically it says “[a] person shall not use a wireless handset to write, read, or send a text message while operating a motor vehicle.” While also a simple misdemeanor as in HF 2020, this code section provides for punishment by “confinement for no more than 30 days or a fine of at least $65 but not more than $625 or by both.”

Senate File 2032, proposed by Senator Joe Bolkom, prohibits sending or reading text messages while driving much like HF 2021, but adds a new section to the code at 321.276. Similar to the other bills, it is a simple misdemeanor, but has a fine of $100 as a scheduled violation.

The obvious question that comes to mind is whether “text messaging” includes emails. Currently, all three bills define text messaging as “a text-based communication transmitted using the short message service (SMS), a wireless telephone service, or an electronic communication network.” Emails could easily fit that definition.

CSG and the National Safety Council will try to get some combination of these bills passed this year. Which version do you prefer?

In the meantime, no one at CSG will be texting while driving – the data on accidents caused by cell phone use is undeniably staggering. More on that to come.

RESILIENT

“The condition of the state is resilient because the people of Iowa are resilient,” Governor Chet Culver said Tuesday morning at the Iowa State Capitol.

The State Capitol was filled with Iowans this morning to listen to Governor Culver’s Condition of the State Address. Included in the large crowd were hundreds of Iowans with the “Let Us Vote” campaign advocating giving Iowans the right to vote on a definition of marriage. Overall, the speech was a markedly better presentation than last year’s Condition of the State speech.

The Governor began by noting the short session and that there was “much to do, and no time to waste.” The Governor said that as Iowa continues to recover from natural disasters, and all Iowans, especially businesses, are affected by the national recession, we will overcome with resilience, optimism, determination, and good old hard work.

In speaking about Iowa values, the Governor acknowledged that with God’s help, all things are possible, and with perseverance there is nothing Iowans cannot endure and together cannot overcome.

In the next year, 3,500 Iowa National Guard members will be sent to Afghanistan. It is the largest single overseas deployment since WWII. The Governor asked that the legislature give them all the tools they need to complete their mission and come home safely. To do so, he asked the legislature to pass a supplemental appropriations bill to support costs to the Dept of Defense.

The Governor claimed that the budget has been balanced three years in a row without raising taxes, but did not explain how he met that constitutional requirement despite record spending. He also did not mention that taxes on cigarettes have in fact been raised. “Some appear confused about the budget situation,” he said, “the budget is balanced and has been balanced every single day I have been governor.” There was no mention of the use of stimulus funds and monies borrowed from the Rainy Day and other funds that have been used to balance the budgets. Next year’s budget will be submitted by the end of January, he claimed, but a shell bill is all that is actually expected.

The Governor’s top priorities for the session that he laid out in his speech are as follows:

1. Jobs:
• “Adequately” fund the Department of Work Force Development
• Fully fund Iowa Power Fund to create more “green jobs”
• Allocate remaining I-JOBS funds

2. Enact remaining recommendations in report:
• Streamline state government operations
• Provide for early retirements, 4-day work weeks
• Strategic purchasing
• Reduce state’s vehicle fleet
• Eliminate redundant information technology services

3. Major reorganization of state government.
Finding the inefficiencies in government was the first step, the Governor claimed, and major reorganization is the next. He advocated “real reform for the 21st century,” to create a smarter more efficient government.

4. Recovery assistance for immediate and long term help for flood victims:
• Fund the Flood Recovery Office
• Fully fund Rebuild Iowa Office, which helped to secure $3.6 billion to rebuild Iowa
• Work to commit a significant portion of I-JOBS funding to flood recovery

5. Explore options to transfer road fund money to adequately fund the Iowa Department of Public Safety.

6. Review tax credits and make sure they work as the legislature intended.

7. Children.
Despite challenges, health insurance was extended to 52,000 kids in Iowa, the Governor noted, and he wants that funding to continue. He also wants to expand access to early childhood education in Iowa

8. Quickly pass legislation required for Federal Race to the Top funds:
• $175 million will go to enable more innovation in the classroom
• Build infrastructure
• Allow more parental choice
• Remain on cutting edge

9. Ask school districts to spend down cash reserves to avoid shifting the burden to property tax payers.
The Governor made a promise to fund allowable growth at 2 %. He proposed to dedicate at least $100 million from the reserves to restore some of the recent cuts to K-12 schools, as a short-term shot in the arm. What “reserves” is the obvious question. He also pledged to support all institutions of higher learning “as much as we can.”

A good portion of the Governor’s speech was spent touting I-JOBS, a three year, $830 million plan intended to help the state recover from natural disasters and create jobs. With I-JOBS funding, he said, every county will receive funds to use on infrastructure of county’s choice. “In Iowa we don’t use public funds to build bridges to nowhere,” the Governor said. A board is appointed to review the applications to fund projects. I-JOBS bonds will be paid back at low interest rates with gambling revenue and without raising taxes, the Governor claimed.

So far, the bonds have been used to expand and renovate the Iowa Veteran’s Home in Marshalltown to make it one of the nicest in the country. The bonds have also been used to help the University of Iowa recovery from floods and secure federal money as well. In Linn and Louisa counties, which were also devastated by the floods, 54 I-JOBS projects are have been approved, with a total of 1,400 projects and an investment of $530 million statewide.

Iowa has the eighth fastest growing economy in the United States, it is the fourth best place to do business, and number one in the nation in terms of low cost of business. Further, Des Moines was named by Market Watch as the number one city in America to do business.

The Governor pointed out three notable companies that have come to the state in the last couple of years: Aviva in West Des Moines, IBM in Dubuque, and Google in Sioux City. Green collar jobs were also on the rise with $200 million attracted in private venture funding of “green projects.”

The Governor said he and Lieutenant Governor Patty Judge would embark on an Iowa Jobs Tour to highlight the good things that are happening in the state, and to talk to business leaders to find out what can be done to keep Iowa moving forward.

Governor Culver finished by stressing the work done at the Capitol is for and “about real people who are counting on us for help.”

We're Back!

Today begins the second session of the 83rd General Assembly of Iowa, and Capitol Strategies is back to bring you updates and insights into the legislative action.

Session this year has been limited to 80 days, and has the potential to be either quick and painless, or nasty and brutish as well as short.

By rule, the first session of a General Assembly is 110 calendar days (which occurred last year), and the second session is normally 100 calendar days. This year, the session has been cut to 80 days - that is, legislators will only be paid for 80 days - in effort to save money. Whether the session actually ends on day 80 is yet to be seen.

Tomorrow: Governor Culver's State of the State Address.