Legislative-Update-ACCI-Lunch-5-21-09-1 by shimeiyan

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									Legislative Update
THE 2009 SESSION OF THE IOWA GENERAL ASSEMBLY
Scott Sundstrom Office: (515) 283-8174 Cell: (515) 306-9658 sasundstrom@nyemaster.com

Making the Sausage
HOW A BILL BECOMES A LAW IN THE REAL WORLD

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“School House Rock”:
All You Need Is a Good Idea, a Cute Kid, and a Catchy Tune

Constituent Idea (Brilliant)

Bill Introduced

Committee

Passed by One Chamber

Passed by Other Chamber

Bill Signed into Law

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You Need a Lobbyist (though a Cute Kid Never Hurts in a Pinch)
Constituent Idea (Often Crazy) Committee Approves Bill as Amended Bill Gets a New Number Subcommittee Approves Bill Lobbying of Committee Chair and Committee Members Bill Sent to First Chamber Lobbying of Rank and File Members

Real Life:

Bill Introduced

Committee Approves Amendment

Bill Goes onto Calendar

Subcommittee Meets in Noisy, Cramped Room

Second Funnel Deadline Approaches

Bill Approved as Amended

First Chamber Refuses to Concur in Second Chamber’s Amendment

Bill Assigned to Committee

Committee Considers Strike Everything Amendment

Amendments Filed

Lobbyist Meets with Subcommittee Members

Intense Lobbying of Committee Chair

Bill Amended on the Floor

Bill Goes Back to Second Chamber

Bill Assigned to Subcommittee (3 Legislators)

Committee Goes into Caucus

Majority Leader Decides When Bill Is Debated

Bill Assigned to Subcommittee (3 Legislators)

Committee Takes Up Bill

Bill Debated on the Floor

Second Chamber Insists on Amendment

Lobbyist Sees Bill as Vehicle for Another Idea

Committee Takes Up Bill

Lobbying of Majority Leader

Bill Assigned to Committee

Committee Goes into Caucus

Each Party Caucuses

Conference Committee Appointed by Both Chambers

Lobbyist Meets with Subcommittee Members

Intense Lobbying of Committee Chair

Lobbying of Rank and File Members

Bill Sent to Other Chamber

Committee Approves Bill

Lobbying of Rank and File Members

Lobbying of Conference Committee

Subcommittee Meets in Noisy, Cramped Room

First Funnel Deadline Approaches

Each Party Caucuses

Bill Approved as Amended

Bill Goes onto Calendar

Lobbying of Majority Leader

Conference Committee Rewrites Bill

Bill Signed into Law !

Subcommittee Approves Bill with Proposed Amendment

Lobbying of Committee Chair and Committee Members

Bill Debated on the Floor

Bill Amended on the Floor

Amendments Filed

Majority Leader Decides When Bill Is Debated

Conference Committee Report Approved by Each Chamber

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The Landscape
DEMOCRATS ARE HAPPIER THAN REPUBLICANS

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Democrats Control the Senate
Iowa Senate 2009-2010

Republicans (18) Democrats (32)

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• Serving his seventh

term in the Iowa Senate
• Senate Democratic

leader since 1997
• Comes from a family

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

Mike Gronstal (D-Council Bluffs) Senate Majority Leader
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• Serving his third term

in the Iowa Senate
• Became Senate

Republican leader after November 2008 election
• Bought and expanded

a manufacturer of garment bags for men’s clothing stores

Paul McKinley (R-Chariton) Senate Minority Leader
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Democrats Control the House
2009-2010 Iowa House 2007-2008

Republicans (44) (47) Democrats (56) (53)

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• Serving his eleventh

term in the Iowa House
• House Democratic

leader since 2004
• Ninth of ten children

Pat Murphy (D-Dubuque) Speaker of the House
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• Serving his fourth

term in the Iowa House
• House Majority leader

since 2006
• Father is a former Des

Moines police chief and current Polk County Sheriff

Kevin McCarthy (D-Des Moines) House Majority Leader
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• Serving his fourth

term in the Iowa House
• Became House

Republican leader after November 2008 election
• Served in the Air Force

for 10 years, including as a Minuteman missile operator and maintainer in Minot, North Dakota

Kraig Paulsen (R-Hiawatha) House Minority Leader
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House Moderates
McKinley Bailey
(D-Webster City)

Brian Quirk
(D-New Hampton)

Doris Kelly
(D-Waterloo)

Geri Huser
(D-Altoona)

Mike Reasoner
(D-Creston)

Roger Thomas
(D-Elkader)

Larry Marek
(D-Riverside)

Dolores Mertz
(D-Ottosen)

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The Budget
“HOPE YOU HAD A GOOD CHRISTMAS . . . BECAUSE YOU AREN’T GETTING ANYTHING FROM THE LEGISLATURE”

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Where It Comes From
Sources of Revenue
Beer/Wine/Tobacco 4.0%

Other 1.5%

Fuel 6.6%

Sales/Use Taxes 33.8% Income Taxes 43.1%

Corporate/Bank/ Insurance Taxes 6.4%

Gambling 4.5%

Source: Legislative Services Agency, Monthly Total Tax Memo (04-20-09)

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There’s Less
Source: Revenue Estimating Conference (4-4-08; 3-20-09)

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The Harsh Reality
Source: Revenue Estimating Conference (4-4-08; 3-20-09)

$328.6 million reduction from FY 2008 to FY 2010
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It’s Getting Worse
Billions
$6.3 $6.2 $6.1 $6.0 $5.9 $5.8 $5.7 $5.6 $5.5
April '08 Estimate Oct. '08 Estimate Dec. '08 Estimate March '09 Estimate

FY 2009 estimate decreased by $82 million FY 2010 estimate decreased by $270 million
FY 2009 FY 2010
Source: Revenue Estimating Conference (4-4-08; 3-20-09)

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The Pre-Session “Spending Gap”

Source: Legislative Services Agency (12-15-08)

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In the Hot Seat
Ways & Means Committee
 Raises money
Joe Bolkcom
Chair, Senate Ways & Means Committee D-Iowa City

Appropriations Committee
 Spends money
Bob Dvorksy
Chair, Senate Appropriations Committee D-Coralville

Paul Shomshor
Chair, House Ways & Means Committee D-Council Bluffs

Jo Oldson
Chair, House Appropriations Committee D-Des Moines

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Educate, Medicate, Incarcerate
Everything Else 12% Justice Systems 11% Health & Human Services 20% Education 57%

FY 2009 Appropriations

Source: Legislative Services Agency, Fiscal Facts 2008 (05-08)

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What to Do?
Legislature can spend only 99% of projected revenues

Cut

Bond

Pray

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Cut

 FY 2009  Net deappropriations totaling $172.1 million  FY 2010  Total state appropriations reduced by $192.6 million compared to FY 2009  (But that’s not the whole story)

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Bond
 Three separate bills






SF 376 – I-JOBS (disaster repair; infrastructure) SF 477 – annual revenue bonds (clean up from last year) SF 474 – repair University of Iowa campus

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Pray
 Prayers answered: $883.6 million federal stimulus!
FY 2011 $204.3 FY 2009 $150.0

FY 2010 $529.3

 When stimulus funds are included, the FY 2010

budget actually grew by 3.1% compared to FY 2009
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2009 Legislation
OVERVIEW

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2009 By the Numbers
 First year of two-year General Assembly

 105-day session – five days short
 Legislative activity  1,940 bills and study bills filed  103 resolutions filed  1,154 amendments filed  184 bills enacted  May 26 deadline for Governor’s action on bills

passed during last three days of the session
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2009 Legislation
LABOR & EMPLOYMENT

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The Big Four
 Prevailing Wage  HF 333  Received 50 votes on House floor

 Fair Share  HF 555 – not debated
 Public Employee Collective Bargaining  HF 821 was vehicle – not debated  Workers’ Compensation Choice of Doctor  HF 795/SF 155 – not debated

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Workers’ Compensation
 Out-of-state injuries – ENACTED  Section 109 of SF 478  Can bring claim in Iowa claim if:
 

Employer has place of business in Iowa; and Employee domiciled in Iowa

 Penalty for denial or delay of benefits – ENACTED  Section 110 of SF 478  Penalty for denial or delay of benefits unless:
  

Employer/carrier investigation Result of investigation was actual basis of denial or delay Employer/carrier contemporaneously conveyed the basis for denial or delay

 Scheduled member injuries – not enacted  HF 775/SSB 1108  Additional comp. for scheduled member injury if loss of earning capacity
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Major Labor/Employment Bills
 Wage Discrimination – SF 137 – ENACTED  Unfair practice under Iowa Civil Rights Act  Claim accrues similar to federal Lilly Ledbetter Fair Pay Act  Damages: double wage differential; treble damages if willful  Child Labor – HF 618 – ENACTED  Reduces standard from “willful” to “negligent” violation  Civil penalties of up to $10,000 per violation  Criminal penalty increased from simple to serious misdemeanor  Constitutional issue?  Unemployment Training Benefits – SF 197 – ENACTED  Training extension benefits under certain circumstances  Comply with federal law  Volunteer Emergency Service Providers – HF 671 – ENACTED  Employer cannot terminate employees who are volunteer firefighters, reserve peace officers, EMS for being late to or missing work  Employer can deduct pay and require note if employee misses work
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2009 Legislation
LITIGATION

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Consumer Fraud Private Cause of Action
 Where we started . . . the A.G.’s original bill
 “Consumer fraud” was nothing like fraud
  

No knowledge of wrongful conduct by defendant No intent by defendant to do anything wrong No reliance by consumer on allegedly wrongful act

 What type of damages did the consumer suffer –

hurt feelings?
 Backdoor way to avoid well-developed law

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Consumer Fraud Private Cause of Action
 Where we ended up – HF 712 – ENACTED
 Reasonable elements  Knowledge of wrongful conduct by defendant  Intent by defendant that consumer rely on wrongful act  Materiality  Ascertainable loss of money or property

 Limits on recoverable “actual damages”  Proximate cause  No noneconomic damages (bodily injury, pain and suffering, mental distress, loss of consortium, loss of life, loss of enjoyment of life)
 Exclusions  Conduct “permitted” by federal, state, or local law administered by a government agency  Many regulated industries and professions (e.g., insurance, banking, utilities, lawyers, doctors, hospitals, CPAs, real estate agents, architects)  But . . .  Class action suits permitted if A.G. certifies claim is not frivolous  A successful plaintiff is entitled to recover attorney fees
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Wrongful Death Damages
 HF 758 – hedonic damages  “Loss of enjoyment of life”  “Measured separate and apart from the economic productive value the decedent would have had if the decedent lived”  Passed the House  Not debated in the Senate

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2009 Legislation
HEALTH INSURANCE

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Health Insurance Mandates
Enacted
 Prosthetics  Oral chemotherapy  PMICs

Not Enacted
 Mental health (including alcohol and
substance abuse)

 Cancer clinical trials  Autism  Veterans substance abuse  Osteoporosis

 Diabetes education
(update of existing mandate)

 Registered nurse first assistants
 Colorectal/prostate cancer

screening  Hearing aids for kids  Medication therapy management  Infertility
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Health Insurance Reform
 SF 389 – ENACTED
 Highly contentious process
 

Insurance Exchange dropped Pharmaceutical provisions dropped

 Expands public programs for low-income kids  Legislative Health Care Coverage Commission


Develop an “Iowa Health Care Reform Strategic Plan”
Provide coverage to all kids  Develop programs to expand coverage for all Iowans


 Adult children of covered persons
 

In 2008: continuation of coverage of adult children This year: re-enrollment of adult children who do not have a gap in coverage

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2009 Legislation
TAXES

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Significant Tax Legislation
 Federal deductibility – HF 807/SF 468 – not enacted
 

Over promised and under delivered Real concern is future changes to federal tax code

 Elimination of net loss carryback – SF 483 – ENACTED  City franchise fees – SF 478 – ENACTED
   

Clarifies legal status of franchise fees
Cities may impose fees up to 5% Use revenue for specified purposes Not retroactive

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Tax Credits
 Tax credit caps – SF 483 – ENACTED


Cap of $180 million/year on the following:  High quality job creation program  Film, television, and video project promotion program  Corporate tax research credit  Enterprise zones  Assistive device tax credit

 Historic tax credits – SF 481 – ENACTED  Data centers – SF 478 – ENACTED  Film tax credits – SF 480 – ENACTED  Research activity tax credit for renewable energy –

HF 817 – ENACTED
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Further Reading
THE LEGISLATURE’S WEB SITE

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www.legis.state.ia.us

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The Bill Book

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And in Conclusion . . .
WHAT REALLY HAPPENED

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Really Contentious Bills
 Prevailing wage – HF 333  Mental health parity mandate – HF 234  Puppy mills – SF 265, HF 486, SF 478  Poop on ice – SF 432

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There’s a Story Here . . .
 SF 52 – ENACTED  Ethics and Campaign Disclosure Board bill  Iowa Code § 68B.7(1):
1. A person who has served as an official, state employee of a state agency, member of the general assembly, or legislative employee shall not within a period of two years after the termination of such service or employment appear before the agency or receive compensation for any services rendered on behalf of any person, firm, corporation, or association in relation to any case, proceeding, or application with respect to which the person was directly concerned and personally participated during the period of service or employment.
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Great Moments in Legislating

 SF 143 – study of novelty lighters
 HF 584– “clean campaign pledge”  Personal attacks  Inciting or inflammatory language  Misleading statements

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Thank You
Scott Sundstrom
Office: (515) 283 -8174 Cell: (515) 306 -9658 sasundstrom@nyemaster.com


								
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