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LEGISLATIVE UPDATES
REPORT FROM THE STATEHOUSE, WRAP UP
Legislature Adjourns for the Year
Early on the morning of April 26th, the Iowa General Assembly adjourned the 2008 session of the 82nd Iowa General Assembly. Elections will be held Tuesday, November 4th, with 83rd General Assembly convening on Monday, January 12, 2009. The 2007-08 legislative sessions were historic, as for the first time in 43 years the Iowa Governor’s office and both chambers of the Iowa Legislature were controlled by the Democratic Party. In the Senate, Democrats hold a 30-20 majority, and in the House, Democrats controlled with a 53-47 edge. To date, one Senate Democrat, six Senate Republicans, four House Democrats (two of whom are running for the Senate), and nine House Republicans have announced that they will not seek re-election in 2008. Democrats will retain control of the Senate, however the fight for control of the House will be very interesting – both parties predict they will hold the majority next session!
Governor Chet Culver is now considering bills approved by the Iowa General Assembly. During the legislative session, the Governor must act on a bill within 3 days of receiving it from the legislature – he has 30 days to act on any bills delivered to him in the final 3 days of session.
To view a complete list of bills passed by the Iowa Legislature and the corresponding action taken by the Governor, access the Iowa General Assembly website. For more information on any of these issues, contact your association staff.
Agriculture/Environment:
EPA/Manure Applicator/Dry Manure Stockpiling (HF 2692)- HF 2692 was a leadership bill that addressed three livestock issues that were originally introduced as stand alone bills during the session.
• One section contained the two EPA issues that were inspired by a petition to the EPA by the extreme environmentalist groups last fall. One of the EPA changes would categorize livestock auction markets that have more than 1000 animal units over 45 days in a year as animal feeding operations. The other EPA change would combine open feedlot and confined cattle numbers for the purpose of NPDES permit requirements. Although the leadership bill did not pass, the two EPA issues were amended to the standings bill and passed as part of the last bill of the session.
• One section pertained to regulation of manure applicators. This portion of the legislation was agreed to by both the DNR and industry as to the proper handling and application of manure. It did not pass and manure applicators will have to continue operating under the old rules until it can be addressed next session.
• The third section pertained to stockpiling of dry manure from confined feeding operations. Stockpiling was a major focus of many livestock groups throughout the session. The issue was first introduced as its own bill, was later amended to the manure applicator legislation, and finally was put into the leadership bill with the other livestock issues. At the beginning of the legislative session the the DNR and livestock community were at an impasse and were unable to find a compromise of how to address the handling of dry manure. Through persistence and much negotiation a compromise was reached with both the industry and the DNR about how to best handle stockpiles. Further, an unusual coalition of interested parties (Farm Bureau, Farmers Union, Environmental Council, Agribusiness, and the Sierra Club) were supportive of the legislation, and urged legislators to support the legislation!
• It is unfortunate that the bill did not make it to the floor of the House, but in the end a lot of progress was made by pursuing legislation that would distinguish between liquid and dry manure in the Iowa Code. It is through the persistence of the livestock industry that strides were made during the legislative session and it is hoped that the DNR will continue to work with the various groups moving forward.
Odor Mitigation Bill (HF 2688)- HF 2688 was a bill that came out of the interim odor study committee that involves the policy proposal of DNR, IDALS, and ISU to establish and administer a research effort to mitigate odor emitted from livestock operations involving swine, beef or dairy cattle, chickens or turkeys. The purposes of the research effort are to accelerate the adoption of affordable and effective odor mitigation technologies and strategies by livestock producers, expand the number of affordable and effective odor mitigation technologies and strategies available to livestock producers, and provide research-grounded information regarding odor mitigation technologies and strategies that are ineffective or cost-prohibitive. The research is to accelerate the adoption and expand the number of affordable and effective odor mitigation technologies and strategies and includes research of odor mitigating techniques, devices, strategies, odor evaluation including computer modeling, and diet manipulation.
The livestock odor mitigation evaluation is a three-level process to evaluate new livestock sites conducted by ISU, starting with an Internet-based self assessment. If this self assessment requires, the producer then proceeds to level two and works with a university-designated specialist who conducts a comprehensive evaluation. If recommended by the level two evaluation, the producer then works with ISU to complete a computer based “community assessment model” (CAM) of the proposed new site. All information obtained and produced in the research and evaluation is confidential. ISU is to submit interim reports each January for the next five years and a final report six months after the five-year research projects are completed. The reports of the results of the research and evaluations cannot show the identity of any participating producer.
Beginning with permit applications submitted on and after Jan. 1, 2009, producers applying for a DNR construction permit for a new confinement operation must submit a certification that they have conducted the livestock odor mitigation evaluation to the level recommended by the evaluation. No minimum criteria are required and the results of the evaluation are not submitted to DNR, only the certification from ISU that the evaluation has been conducted. No certification is required to be submitted to DNR with a construction permit application if: (1) the operation is more than twice the minimum required separation distance from residences, businesses, churches, schools and public use areas; or (2) all owners of residences, etc. within the area twice the minimum required separation distance consent to the proposed operations; or (3) ISU does not provide a certification within 45 days after the producer requests it; or (4) ISU is not conducting livestock odor mitigation evaluations for any reason, including because of a lack of funding; or (5) ISU does not receive an appropriation from this year’s Legislature to conduct the odor research and evaluation.
An amendment was added in the Senate to require the DNR director, secretary of agriculture and the dean of ISU’s College of Agriculture and Life Sciences to develop cost share protocols for each mitigation practice.
After a couple of slowing points through the process, the policy portion of the proposal was passed in the last days of session and is expected to be signed by the Governor. Funding of the applied research was not addressed by the Legislature this year, however the policy bill will provide the framework for future appropriations.
Water Resources Coordinating Council (HF 2400) - HF 2400 calls for expert monitoring of up to 11 major watersheds a year and results will determine priority funding. The measure, signed by the Governor, will coordinate watershed monitoring and planning on a watershed basis, as well as improve communication with the public on positive steps all Iowans can take to improve the watershed.
In the 2006 Legislative Session SF 2363 created the Watershed Quality Planning Task Force, to be staffed by IDNR and IDALS, consisting of four legislators, reps from 13 private groups including ICGA, IPPA and ISA as well as IFBF, environmental groups and reps from local government, requiring it to report by June 30, 2008, to the General Assembly its recommendations for a voluntary statewide water quality program designed to create economic incentives for voluntary non-point source reductions, to facilitate the implementation of TMDLs; and to create incentives for community-based, watershed management programs. The bill also created a Wastewater Treatment Financial Assistance Program. In the 2007 Session the Iowa Legislature: Moved up the Task Force report deadline by six months; made cities, and county conservation boards eligible for wastewater treatment grants.
As for the 2008 Session, HF 2400 does the following: (Note, H.F. 2400 was signed into law by the governor on 4/3/08.)
• Create in the Governor’s Office a new Water Resources Coordinating Council (WRCC)
• Chaired by the governor or the governor’s rep.
• The WRCC will consist of all state-level officials, including:
• Director of IDNR
• Iowa Sec. of Ag
• Director, IDALS Soil Conservation Division.
• Director, IDPH
• Director, Iowa Homeland Security and Emergency Management
• ISU Dean Ag
• UI Dean Public Health
• UNI Dean Natural Sciences
• IDOT
• IDED
• Director, Iowa Finance Authority
• Would seek input from federal officials, incl. USGS, NRCS, FSA, Office of Rural Development, EPA Region VII, and Army Corps of Engineers
• Would meet at least quarterly to:
• Coordinate their respective water-resource-related functions
• Develop water protection strategies
• Conduct watershed assessments; prioritizing
• Eliminate duplication of services
• Improve availability of water resources info.
• Regularly assess and identify measurable improvements in state water quality.
• Complete a statewide watershed assessment
• Including a short-term interim and long-term comprehensive State Water Quality and Quantity Plan to be updated every five years.
• Conduct a statewide marketing campaign to educate Iowans about “the need to take personal responsibility for the quality of water in their local watersheds.”
• IDNR would create a Regional Watershed Assessment Program.
• To assess all Regional Watersheds in Iowa, 1/5th every year.
• WRCC would then prioritize all watersheds statewide so that the various communities could plan remedial efforts for their sub-watersheds locally.
• IDNR would facilitate the development and implementation of local, community-based sub-watershed improvement plans.
• IDNR would identify critical sub-watersheds; recruit committees of local stakeholders to initiate sub-watershed improvement plans.
• Those local committees would apply for a grant to IDNR
• IDNR would “assist” these local “communities” with the monitoring of local sub-watersheds; local data collection.
• IDNR would create a Wastewater and Storm Water Infrastructure Program and prioritize communities with a view toward health protection of residents.
• IDNR would award funds from the program to communities based upon that prioritization.
Renewable Fuel Infrastructure Revisions - HF 2689 makes a number of changes to the Renewable Fuels Infrastructure Program, which is administered by the Iowa Department of Economic Development (IDED). The legislation allows motor fuel blender pumps to qualify for grants awarded by the Renewable Fuels Infrastructure Board (RFIB) and increases the retail site infrastructure grant to $50,000 for a five year contract and biodiesel terminal grants to $100,000. It also increases the cost share of the infrastructure grants from 50% to 70% and allows for retailers to apply for both biodiesel and E-85 grants at the same site.
In addition to grant and infrastructure changes, the legislation requires the state fleets use biodiesel fuel if it is commercially available and encourages “the use of biodiesel fuel to the extent practical in all diesel-powered motor vehicles purchased or used by cities, counties, school corporations, and merged area schools.” It also includes a direct marketing campaign that educates owners of diesel powered vehicles on successful cold weather handling, engine manufacturer warranties, and maps indicating where retail motor fuel sites offer biodiesel.
Ag and Natural Resource Budget Bill - HF 2662 appropriated $43.4 million from the General Fund and $82.7 million from other sources for FY 2009 to the Departments of Agriculture and Land Stewardship (IDALS) and Natural Resources (DNR). The FY 2009 budget was mostly a status quo budget.
Highlights include:
• The On-Farm Network maintained their appropriation of $400,000.
• Avian influenza received their annual appropriation of $50,000.
• REAP (Resource Enhancement and Protection) is increased by $500,000 for a total of $16 million. REAP helps fund soil conservation and outdoor recreation projects throughout the state..
• $2 million increase in funding for the veterinary diagnostic lab at Iowa State University. Along with another $1 million to come in another budget bill, the total funding for the veterinary diagnostic lab will be $3 million, an increase of $1 million from last year.
• The Department of Agriculture has a net General Fund increase of $15,000.
• The appropriation for the farm-to-school program is moved from the Environment First Fund to the General Fund.
• Funding for the emergency veterinarian rapid response program was maintained at last year’s level, which is important since there was some TB recently found in cattle in Minnesota. This means the federal government will require IDALS to closely track the movement of cattle from Minnesota to Iowa.
• The Department of Natural Resources has a net decrease of $250,000 to their general operation budget. Governor Culver had recommended a $225,000 reduction.
Regulation of Crop-Dusters - HF 2551 provides the Iowa Department of Agriculture and Land Stewardship with specific authority to regulate non-resident aerial applicators of pesticides for agricultural purposes. The legislation eliminates existing authority that permits a non-resident aerial applicator to operate in Iowa without an Iowa commercial applicator license if they do so under an Iowa aerial applicator license. It arises because of the explosive growth in the amount of aerial application that occurred last season in which a number of non-resident aerial applicators made some application mistakes because they weren’t well acquainted with the Iowa agricultural landscape and locally sensitive areas such as seed corn fields where detasselers might be working, organic crops fields, and wine and grape operations.
The increase in application occurred because of fungal concerns in corn fields and aphid infestations in soybean fields. Prospectively, should soybean rust establish itself in Iowa during the growing season, this circumstance would likely trigger even more aerial applications and this legislation helps ensure that problems that might arise from misapplication is kept to a minimum.
Grain Indemnity Fund - HF 2606 Includes out-of-state banks and savings and loans in the definition of financial institutions in the provisions regarding grain dealers and allows IDALS to demand financial statements from grain dealers and warehouse operators to verify the financial status of the dealer or warehouse operator. The legislation also authorizes DALS to adopt rules on the use of electronic documents, excludes sellers who do not sell grain delivered in the state from the provisions on indemnification, and establishes a five-year time limit for claims of indemnification
Water Withdrawal Permit Fees - HF 2672 allows the DNR to charge a fee for a water permit. The legislation establishes a water permit fund and money in the fund will be used for reviewing applications, ensuring compliance with the terms of the permit, and for studying water allocation, use and storage in the state. The department shall not collect more than $500,000 annually with the permit fees.
Deer Depopulation – SF 2328 which was signed into law by the Governor earlier this month, makes significant changes to the state’s deer depredation program. It provides an additional free antler-less hunting license for each hunting season to a landowner and lets farmers use their depredation licenses during any hunting season. The DNR has predicted that Iowa's deer herd could potentially grow at a rate of 20 percent to 40 percent each year if it is left unchecked. With higher grain prices projected there is a concern among farmers if the DNR does not use available tools to address deer damage.
Missouri River Authority - HF 2601 updates the inter-agency Missouri River Authority which was established by code in 2002 to define how the state of Iowa would be represented in the inter-state Missouri River Basin Association. Since establishment the inter-state association has changed its name to Missouri River Association of States and Tribes (MORAST). The bill reflect the name change and adds voting procedures to the Missouri River Authority agencies.
Resolution for a Constitutional Amendment - SJR 2002 proposes an amendment to the Constitution of the State of Iowa to dedicate a portion in the future, of state sales and service tax revenue for the benefit of water quality, natural areas, and agricultural soils in this state. The resolution establishes a natural resources and outdoor recreation trust fund.
The resolution credits the fund by a sales tax rate to be imposed upon the retail sales price of tangible personal property and the furnishing of certain services sold in this state. The joint resolution provides that no revenue is to be credited to the fund until the tax rate is increased. The net affect of this policy is when sales tax increase, 3/8 of 1 percent of the increase is dedicated for this fund.
After the increased tax rate becomes effective, an amount equal to 3/8 of 1 percent is credited to the fund. By passing both chambers of the Legislature, this proposed Constitutional Amendment of the State of Iowa is now referred to the 83rd General Assembly for consideration a second time, before being submitted to all Iowa voters for ratification.
Transportation:
Time-21 - SF2420 The Senate and House Transportation Committees worked throughout 2007 and 2008 to find a workable solution for repairing and building new roads, crucial elements to a growing economy. A bipartisan committee traveled the state gathering input from local residents and late in the session a bills passed that will help make up the $200 million per year shortfall in funding.
It is estimated that the new legislation will generate about $125 million in 2012 by raising motor vehicle fees, trailer registration fees, and title fees; many of which haven’t seen an increase in more than 20 years. Pick-up owners will no longer pay a lat $65 fee but will now be assessed by weight and value, like cars, vans, and SUVS are assessed. Farmers and business owners who use trucks for their work will pay a registration fee of $150.
The Legislation Also Provides for Special Trucks for Farm Use Registration Fees on or after January 1, 2009:
Vehicle Weight Current Proposed
6 ton or less $80 $100
6 ton - 7 ton $100 $125
7 ton - 8 ton $125 $155
8 ton - 9 ton $135 $170
9 ton - 10 ton $150 $190
10 ton - 11 ton $165 $205
11 ton - 12 ton $180 $225
12 ton - 13 ton $195 $245
13 ton - 14 ton $210 $265
14 ton - 15 ton $225 $280
15 ton - 16 ton $240 $295
16 ton - 17 ton $255 $305
17 ton - 18 ton $270 $315
Miscellaneous Issues:
Soy Transformer Fluid Tax Credit - SF 572 Extends the repeal of the soy-based transformer fluid tax credit to December 2009. The income tax credit is designed to encourage electric utility companies to use a soy-based transformer fluid. The credit was due to expire on Dec. 31, 2008, but was extended one year because utilities had difficulty getting equipment delivered in time to use the before the old deadline.
Utilities have been relying on petroleum based transformer fluid which must be treated as a hazardous waste when it is replaced. The new soy-based transformer fluid, which University of Northern Iowa researchers helped develop, has the advantage of being both biodegradable and providing another market for Iowa soybeans.
Bio-Based Purchasing - SF 2361 requires the DAS, state agencies with purchasing power, and the boards or merged areas to give a purchasing preference to designated bio-based products, based on USDA standards. Requires the purchase to be for the product with the greatest percentage of bio-based material, with exceptions for availability, cost, effectiveness and any existing bio-based purchase preferences.
Open Scope Bargaining Bill Sent to Governor HF 2645 – One of the more controversial bills of the session was HF 2645. The bill would allow “open scope” bargaining for public employee unions. The bill was approved by the General Assembly on March 24th and immediately held on a motion to reconsider after the Governor said he was considering a veto. Democratic leaders met with the Governor throughout the remainder of the session, with the bill finally being sent to the Governor in the final days of session. The “open scope” provisions of the bill would broaden the range of topics that can be considered when public employees negotiate contracts. Opponents of the bill say it will strip power away from elected local officials to negotiate with public employee unions and restrict their ability to control expenses which could translate into property tax increases. Proponents say the public collective bargaining law was 35 years old and needed to be updated.
Health Care:
Health Care Proposal Moves- HF 2539 was legislation based on recommendations from the bipartisan Legislative Commission on Affordable Health Care, was approved by the General Assembly. Recommendations from the panel included increased access to high-quality care that provides choice, is affordable, and focuses on preventive treatment. The long awaited health care reform bill sets a goal of covering all Iowa children by 2011. The legislation sets aside $4.8M in ’09 and $10M in each of the following two years, to increase state subsidies for coverage of children of moderate-income families under the Hawk-I and Medicaid programs. Proponents of the bill say the additional money will be enough to provide health insurance for an additional 25,000 Iowa children who currently have no coverage. The remaining 19,000 Iowa children who don’t have health insurance would be covered by private insurance plans. Families with an income between 200 and 300 percent of the federal poverty level would receive a state subsidy to help them purchase insurance for their children. For more information on the activities of the commission, access their website.
Smoke Free Workplace Act HF 2212 – On April 15th, Governor Culver signed the Smoke-Free Air Act into law. With the passage of the legislation, smoking will be prohibited in most public places and places of employment. The bill exempts casino gaming floors, racetracks, clubs of fraternal organizations that have no employees, tobacco outlets, designated hotel rooms, the Iowa Veterans home, limousines under private hire, farm vehicles, areas for smoking cessation programs or medical research programs, private homes unless used a child care home, retail tobacco stores, private and semi-private rooms in long-term facilities.
Education:
SILO Repealed - Statewide Sales Tax Approved HF 2663– The Legislature approved HF 2663, which replaces the 1% local option sales tax with a 6% statewide tax. Supporters of the bill said it will improve fairness by ensuring equal distribution of school sales tax funds, and offer significant amounts of property tax relief ($207M over 6 years). Supporters also note that all 99 of Iowa’s counties currently collect the local sales tax. Opponents charge that changing from a local option to a statewide sales tax will be a tax increase for 13,000 Iowa businesses (due to increased use taxes), and also that the change ends local accountability and gives state lawmakers future opportunities to scoop the money for spending unrelated to school infrastructure or property tax relief. The Governor signed the bill May 6th.
Math and Science Education Collaborative (STEM) Initiative – The Governor asked for, and the Legislature approved, $4 million to improve the math and science performance of Iowa students, and prepare more high quality math and science teachers for Iowa's schools. Creation of the Science, Technology, Engineering and Math (STEM) education program at the University of Northern Iowa is designed to double the number of math and science teachers in our public schools, who will make sure every high school graduate is prepared for the jobs of the future.
More than half of all U.S. 8th graders are being taught math by a teacher without a math certification and over 90% of the students in 5th to 9th grade are taught physical science by someone without science training or certification. By 2015, there will be a shortage of 283,000 teachers in math and science, with the higher shortage areas being in rural, low-income and inner urban areas. New economic sectors in Iowa: bioscience, advanced manufacturing, and information solutions, all require a significant background in mathematics and science. Out of the 20 fastest growing occupations in the 21st Century, 15 require preparation in mathematics and science.
REPORT FROM THE STATEHOUSE, WEEK 13
LEGISLATION OF INTEREST
Renewable Fuels Infrastructure Clears House Tax Panel
The House Ways & Means Committee passed HF 2632, which addresses the state’s biofuels Renewable Fuel Infrastructure Program.
HF 2632 language makes a number of Code modifications to enable the use of blender pumps to allow a motorist to select the appropriate biofuel mix. The bill modifies the rate of cost-share grants for renewable fuel infrastructure by increasing ethanol fuel infrastructure grants to $50,000 and biodiesel terminal grants to $100,000 per location. The amendment also increased the current cost-share of ethanol from 50% to 70%.
The bill also included state vehicles use biodiesel fuels when applicable and available, and it includes a media and public relations campaign by the Department of Energy Independence touting the benefits of increased biofuel use by Iowans.
Legislature Moves to Snuff out Smoking In Public Places - The House and Senate approved the conference committee on HF 2212, the House approved the report on a 51-48 vote, and the bill itself on a 54-45 vote. The Senate followed suit (26-24 on the report and 28-22 on the bill). The smoking ban exempts smoking on gaming floors at casinos, and at the Iowa Veterans Home. Proponents say the initiative will reduce exposure to second-hand tobacco smoke, which they say kills more than 400 Iowans annually and makes thousands ill. Supporters also say the measure should reduce the amount of money Iowans spend each year to treat smoking-related illnesses. Several opponents of the ban suggested that the first conference report should be rejected so that a second conference committee could discuss a wider range of subjects (the first committee can only consider elements that exist in the 2 bills brought to conference). Other opponents of the bill said that the Legislature was unfairly favoring casinos at the expense of bars. The original Senate version of the bill banned smoking at casinos, however, House supporters said the bill would not pass in their chamber without the casino exemption. The bill now heads to Governor Culver’s desk - he is expected to sign the bill.
Statewide Sales Tax Approved By House – On Wednesday, by a vote of 59-41, the House approved HF 2663, which repeals the local option sales tax and replaces it with a 6% statewide tax. Supporters of the bill said it will further improve the fairness of the school sales tax, and offer significant amounts of property tax relief ($207M over 6 years). Supporters also note that all 99 of Iowa’s counties currently collect the local sales tax. Opponents charge that changing from a local option to a statewide sales tax will be a tax increase for 13,000 Iowa businesses, and also that the change ended local accountability and gives state lawmakers more opportunities to scoop the money for spending unrelated to school infrastructure or property tax relief.
Power Fund Board Moves on First Round of Proposals - This week the Iowa Power Fund Board recommended that negotiations begin for 5 applications (requests totaling < $6.7M). The Board must grant final approval once negotiations have been completed. Find more information here.
State Tax Revenues Update – Last Friday, the Revenue Estimating Conference (REC) met to revise the FY ‘08 and FY ‘09 revenue estimates. With revenue continuing to exceed the December estimate, the REC increased FY ‘08 by $78.8M and FY ‘08 by $49.1M. It is unclear how the excess revenue will be spent by the General Assembly.
Signed by the Governor:
HF 2551 PESTICIDE APPLICATORS - Strikes the requirement for a crop-duster licensed in another state to be under the direct supervision of one licensed in Iowa. Requires DALS to adopt rules on licenses for non-residents, and allows rules on the condition of the aircraft and on the application of pesticides under the supervision of someone licensed in this state. Effective on enactment.
HF 2553 SOYBEAN PER DIEMS Signed by Governor! Raises the per diem compensation for directors of the Iowa Soybean Association Board to $100. The bill passed the House 94-1 and Senate 49-0 before going down to the Governor.
HF 2554 DRAINAGE DISTRICT EXPENSES - Increases the ceiling for various repairs or weed eradication that can be authorized by the governing board of a drainage district (county supervisors) without a public hearing to $20,000. Increases the threshold for a landowner to file a remonstrance to $25,000.
SF 2230 SPECIAL NON-RESIDENT HUNTING LICENSES - Authorizes the NRC to issue special non-resident turkey and any sex deer licenses to non-residents with a severe physical disability or a terminal illness. Allows the NRC to prepare an application that requires the illness or disability to be certified by a doctor. Makes these licenses in addition to other authorized non-resident licenses.
SF 2328 DEER DEPREDATION MATTERS - Specifically includes representatives from farm organizations, nursery and landscape groups, insurance groups and ISU and DALS on the farmer advisory committee for deer depredation. Includes in the wild animal depredation program damage to crops, horticultural products, trees and nurseries. Requires the NRC to issue certain deer depredation permits and requires that any deer killed with such a permit use the deer harvesting reporting system. Directs the DNR to make information about deer depredation programs available to the public, to farmers, and to farm and commodity organizations, by June 30, 2008. Effective on enactment.
Bills to the Governor:
SF 2133 IOWA CROP IMPROVEMENT ASSOCIATION - Strikes a requirement that the ICIA file with DALS to show its existence. Gives the ICIA rulemaking authority and re-writes Code section on its purposes. Expressly authorizes the hiring of an executive director. Increases the board membership to 11, adding a member from ISU and from stakeholders, and makes other changes in board membership. Allows the board to decide whether to reimburse members for expenses. The Senate PASSED the bill, 50-0; it now goes to the Governor
SF 2361 BIO-BASED PURCHASING - Requires the DAS, state agencies with purchasing power, and the boards or merged areas to give a purchasing preference to designated bio-based products, based on USDA standards. Requires the purchase to be for the product with the greatest percentage of bio-based material, with exceptions for availability, cost, effectiveness and any existing bio-based purchase preferences.
Bills Sent to the Senate:
HF 2662 AGRICULTURE & NATURAL RESOURCES APPROPRIATIONS - Total: $126.1 million: $43.4 million from the GF; $82.7 million from other sources. DALS - Totals $21.3 million from the GF Administration Total $19.1 million; Regulatory Dairy Products $950,000; Avian Influenza $50,000; Chronic Wasting $80,000; Apiary Program $75,000; Soil Commissioners’ Expenses $400,000; Senior Farms Market $75,000; Insect Pests $100,000; Farm to School $80,000; Emergency Vet Service $100,000; Grape & Wine Fund $280,000; Organic Ag Products $50,000. REGENTS: ISU Vet Lab $2 million. Other Funds Native Dog & Horse Program $305,000 Open Feedlots $50,000 Conservation Reserve $1.5 million, Watershed Protection $2.55 million, Farm Management Demo. $850,000, Drainage Wells $1.5 million, Cost Share $7 million Conservation Reserve Program $1.5 million, S. Iowa Cons. & Dev. Auth. $300,000, Fuel Inspection $300,000. Loess Hills $600,000. DNR - Totals $20 million from the GF and $42.1 million from DNR revenues and programs. General Fund: Operations $20 million Other Funds: Fish & Wildlife $37.6 million; Groundwater Protection $3.45 million; Snowmobile Fees $100,000 Underground Tank Administration $200,000; Permits $700,000. Natural Resources Capital REAP $16 million; Volunteers $100,000; Parks $2.5 million; Watershed/Water Quality $4.1 million; Air Quality $325,000; Feeding Operations $360,000; Resources Conservation & Development $250,000; Climate Change $50,000. DED - Total $500,000 (Brownfields)
Appropriates $15,000 from the Agrichemical Remediation fund for a soil and water conservation assessment on the Little Sioux River. Appropriates $775,000 from the underground storage tank fund to the atv fund and $950,000 from the GF to the snowmobile fund to support programs for those vehicles. Allows the voting public members serving on the watershed improvement review board to receive per diem and expenses, paid from the fund. The House PASSED the bill, as amended, 51-44; it now goes to the Senate
SF 2348 COOP MEMBERSHIP - Standard of Care: Makes the standard of conduct for a co-op association’s board of directors or officers one of good faith and reasonableness, and using ordinary care. Allows for a director to consider community-interest factors when making a decision. Allows for the reliance on persons that the officer or director has reason to believe is reliable and competent. Makes the director or officer not liable when acting under these standards of care. Sales: Allows the board to condition its recommendation about the sale of an association, acquisition, merger or consolidation, upon any basis. Allows an association, in its articles of incorporation, to adopt rules requiring more than a 2/3 majority to approve the sale, acquisition, merger or consolidation. Allows the directors to consider community interest when looking at acquisitions and mergers, and to reject a proposal if not in the best interest of the association. Requires that the care standard not be for an ordinary person but for someone in a like position. Requires that a provision which adds, changes, or deletes a greater voting or quorum requirement must be adopted by the voting or quorum requirements then in effect or proposed, whichever is greater.
House Ways and Means Committee: Voted Out
HF 2518 WATER WELL DRILLING RULES - Directs the EPC to develop rules for water well drilling that consider the size of the well, as measured by the water flow, the best management practices for reducing wastewater discharge, the necessity of inspecting the drilling site, notification of the DNR prior to starting drilling, retention of well records and limits on wastewater discharge. Directs the EPC to convene an advisory committee with representatives from the Iowa Water Well Association to develop the rules. Requires the rules by December 31, 2008. Amended & PASSED, 25-0, Floor Manager: Thomas
HF 2652 MANURE ODOR RESEARCH -
An Act providing for efforts to mitigate odor emitted from a livestock
operation including by providing for basic and applied research and
evaluations, and including applicability and effective date provisions.
Palmer, Reasoner, Wise, Struyk, Deyoe
Senate Ways and Means Committee: Voted Out
SF 2389 TIME-21 II - Requires the Treasurer to credit $346 million from registration fees to the TIME-21 fund. Registration: Replaces the use-tax fee with changed registration fees. Makes truck registration fees the same as car registration fees for model years from 2010. Does not affect trucks already registered under the current truck fee schedule. Cars: Changes the rate schedule for registrations. Makes the minimum registration fee $75 but allows owners paying a lower rate to continue to do so for that car. Other: Raises the fees for farm trucks and trailers.(Amended to allow TIME-21 to move forward.) Amended & Passed, 17-0, Floor Manager: McCoy
REPORT FROM THE STATEHOUSE, WEEK 12
LEGISLATION OF INTEREST
Senate Republican Newsletter (3/28/08) - Bad Job Creation Bills Continue to Pass Through Senate
Tax credit cap is latest Iowa job creation hurdle
Large corporations have sought Iowa as a business oasis in America for years. Tax credits, fair labor laws and a favorable business climate have been attractions to those looking to relocate here. A bill currently in Committee threatens to change all that. The Research Activities Credit, or RAC, has been a key tool in recruiting and keeping job creation in the state. Most states provide some form of research tax credit but Iowa is one of five states that provide a refundable tax credit, so Iowa companies can receive all or a portion of the credit in the form of a direct payment.
Two bills under scrutiny are currently in the Senate Ways and Means Committee and would significantly damage the effectiveness of the RAC. The first bill would cap it at $250,000, putting a serious strain on many businesses that do massive amounts of research in Iowa such as John Deere, Pioneer Hi-Bred, and Rockwell Collins. In addition, a business that receives an additional research activities tax credit under the high quality job creation program, the high quality jobs enterprise zone program, and the regular enterprise zone program is also limited to $250,000. Therefore a qualified business could receive up to a maximum of $500,000 in tax credits. The second bill would eliminate the additional research activities tax credits that are allowed under the high quality job creation program, the quality jobs enterprise program and the enterprise zone program.
The original investments in research and development were encouraged by the Legislature through the RAC and has been a tremendous strategic asset to many local companies and industries. In today’s changing global economy, maintaining our technological edge through industrial research and development expenditures in Iowa is very important. Without these continuing expenditures, Iowa industry will fare poorly in competition with not only other U.S. firms, but those in the Far East and the developing world. Research investments made in Iowa also encourage our young science and engineering graduates to stay in Iowa and contribute to our economy. These jobs are needed throughout our state in far greater numbers.
Legislation that would cap the tax credit just doesn’t make sense. Our many large and small firms that benefit from the credit are competing in difficult international markets. Reducing the credit will hurt their research efforts or force them to move elsewhere, including overseas. If research efforts moves elsewhere, so do the highly paid technologists who do the work.
Now is not the time to send a wrong signal to the business community by slashing our historic support for Iowa-based research and development. Let’s leave the Iowa Research Activities Credit alone.
Budget:
According to the LSA, state receipts through March are up $457.9 million, an increase of 10.6% compared to FY 2007, and up over the December REC estimate of 6.9%, and a total estimated increase of $424.6 million. Increases include personal income tax ($202.3 million, 9.6%), sales tax ($74.8 million, 5.3%), corporate tax ($43.2 million, 15.8%), other taxes ($105.0 million, 44.2%) and other increases ($32.6 million, 12.2%). The next REC meeting is Friday, April 4.
On Tuesday, April 1, Fiscal Services released the general fund revenue numbers through the end of March. While revenue continues to exceed the Revenue Estimating Conference (REC) estimate, there are some warning signs that the economy may be slowing down just a little. Through March, general fund revenue increased by $457.9 million, or 10.6 percent above FY 07. The REC estimate for the year is $424.6 million, or 6.9 percent compared to FY 07. That means that the state has already collected more in nine months than what the REC estimated it would collect in all of FY 08.
The REC will meet again this Friday, April 4 to review and revise the revenue estimates.
Even though revenue is exceeding the REC estimate, it is unlikely that it will increase the FY 09 estimate (2.7 percent) by much but will likely increase the estimate for FY 08 (6.9 percent). Once again in March, all major parts of general fund revenue increased compared to FY 2007. Personal income tax receipts were up by $202.3 million, or 9.6 percent compared to FY 07. Income tax withholding payments increased by 7.3 percent (after adjustments), income tax estimate payments were up 16 percent and payments with income tax returns were up 41.1 percent. The REC estimate for income tax receipts for FY 08 is 6.7 percent above last year. Sales and use tax receipts were up $75 million, or 5.3 percent compared to FY 07, above the REC estimate of 2.8 percent. Corporate income tax receipts were up $43.2 million, or 15.8 percent, above the REC estimate of 5.3 percent. Other taxes, including cigarette and tobacco tax revenue, increased by $105 million, or 44.2 percent. That is above the REC estimate of 37.3 percent. Other receipts were up $32.6 million, or 12.2 percent compared to FY 07, above the REC estimate of 1.7 percent.
Now for a word of caution. Corporate income tax revenue for March 2008 was down $6 million, or 16.7 percent below March 2007. Since this is based on corporate profits, it is an ominous sign that the state is headed for a slowdown. Also, last week the Medicaid Forecasting Council increased the estimate for Medicaid for both FY 08 and FY 09. The last time the state faced a recession, one of the first things to happen was an increase in Medicaid enrollment. These could be merely an aberration or a sign of an economic slowdown on the horizon. The concern is that increasing taxes and spending at an uncertain time for the economy is a recipe that sets the state up for a fiscal mess in the coming years.
Open Meeting and Open Record law
Senate File 2411, the product of a 2007 Interim Study Committee, significantly expands and strengthens Iowa’s Open Meetings and Open Records law. A 1979 Attorney General’s Opinion holds that Iowa’s agricultural checkoff boards are subject to Iowa’s Open Meetings Law. Although no dispositive decision has been issued on applicability of the Open Records Act theIowa Supreme Court could possibly hold that Iowa’s ag checkoff boards are also subject to Iowa’s Open Records Act. This is a bill ISA is watching.
Signed by Governor:
HF2400 Watershed Taskforce
ISA was an integral part of the Watershed Taskforce and is excited that the legislation that came forth after 2 years of meetings was signed this week by the Governor.
Bills to Governor:
HF 2551 PESTICIDE APPLICATORS
Strikes the requirement for a crop-duster licensed in another state to be under the direct supervision of one licensed in Iowa. Requires DALS to adopt rules on licenses for non-residents, and allows rules on the condition of the aircraft and on the application of pesticides under the supervision of someone licensed in this state. Effective on enactment. The Senate PASSED the bill, 49-0; it now goes to the Governor
HF 2553 SOYBEAN PER DIEMS
Raises the per diem compensation for directors of the Iowa Soybean Association Board to $100. The Senate PASSED the bill, 49-0; it now goes to the Governor
HF 2554 DRAINAGE DISTRICT EXPENSES
Increases the ceiling for various repairs or weed eradication that can be authorized by the governing board of a drainage district (county supervisors) without a public hearing to $20,000. Increases the threshold for a landowner to file a remonstrance to $25,000. The Senate PASSED the bill, 49-0; it now goes to the Governor
Bills RETURNED to the Senate: (6)
SF 2361 BIO-BASED PURCHASING
Requires the DAS, state agencies with purchasing power, and the boards or merged areas to give a purchasing preference to designated bio-based products, based on USDA standards. Requires the purchase to be for the product with the greatest percentage of bio-based material, with exceptions for availability, cost, effectiveness and any existing bio-based purchase preferences.
H-8369 by T Taylor - Expands the exemptions to specify that a bio-based product must meet the standards for a bid requirement, such as ASTM standards. ADOPTED
The House PASSED the bill, as amended, 97-0; it now RETURNS to the Senate
Senate Natural Resources Committee: Voted Out: (1)
HF 2612 DNR MATTERS II
Resources: Makes changes to the membership of county resource enhancements committees. Residency: Requires that a person live in Iowa for 180 days and have an Iowa state id in order to apply as a resident for a hunting or fishing licenses or to register an atv or snowmobile. Continues current provisions regarding college students. ATVs: Allows the DNR to adopt rules on riding and maintaining atv trails. Requires civil penalties for damages caused in additional to criminal prohibitions against illegal operation of an atv. Construction: Makes changes to the provisions allowing the DNR to regulate the construction of various structures on or over any state-owned land, including allowing the DNR to seek injunctive relief. Ice Travel: Allows atvs, off-road motorcycles, and off-road utility vehicles to travel over ice without a permit from the DNR. Changes the speed limit for operating over ice to one of a speed that is reasonable and proper. Hunting Accidents: Makes it a simple misdemeanor to fail to report an accident involving a gun or a tree stand. Reciprocity: Includes Iowa land beyond a border river in provisions regarding reciprocity (generally, land subject to the Iowa-Nebraska Boundary Compromise) Hunter Safety: Allows a hunter safety certificate to be from another state. Allows the DNR to charge a fee for hunter safety courses. Allows hunter safety courses to be in an electronic format. Hunters: Strikes the requirement that a person who qualifies for a free license because the person is veteran who is disabled or was a POW, have been a veteran. Allows a totally-blind person to hunt with a laser sight so long as the person is accompanied by a sighted person. Requires that the person's blindness be certified by medical evidence. Makes changes to hunter trespass provisions. Other: Increases the fine for spreading an aquatic invasive species (Eurasian water milfoil), to $500. Makes corrections. Amended & PASSED, 14-0, Floor Manager: Black
Senate Appropriations Committee: Voted Out: (2)
SF 2391 RENEWABLE FUEL PROGRAMS
Blender Pumps: Authorizes motor fuel blender pumps which allow retail customers to select the percent of or ethanol or biodiesel which is blended into the fuel. Authorizes cost share financing through the Renewable Fuel Infrastructure Program and establishes a Renewable Fuel Infrastructure Board in the DED. Authorizes the State Fire Marshal to approve the installation of such pumps. Financing: Divides the financing for infrastructure improvements into categories for storing, blending, and dispensing ethanol or ethanol blended gasoline and infrastructure associated with improving infrastructure for storing, blending, or dispensing biodiesel. Allows a person to execute two cost-share agreements to receive up to the full amount available to improve their gas station with ethanol or biodiesel infrastructure. Increases the financing for ethanol to 70% of the cost, with a ceiling of $50,000. Makes the ceiling the same for biodiesel but makes the level of financing 50% for going to B-5 and 70% for going to B-20. Allows the Infrastructure Board to award incentives to persons applying after February 19, 2008. Strikes a provision requiring the Underground Storage Tank Board to review certain applications for financial incentives. Effective on enactment. (One Amendment to include underground tanks, split funds, and make technical as well as other changes) Amended & PASSED, 25-0, Floor Manager: Ragan
The amendment split the renewable infrastructure fund 50/50 and capped both the total amount that can be awarded to tank wagons to $250,000 annually, as well as how much can be awarded per tank wagon to $10,000. ISA believes the board should be allowed to decide the market and how to dispense the money in the fund in order to best move renewable fuels in the state. Further, ISA sees tanks wagons as a key mechanism in delivering biodiesel to important markets: farmers, construction, industrial, and commercial sites.
House Appropriations Committee: Voted Out: (2)
HF 2654 WATER PERMIT FEES
Authorizes the EPC to set fees for water use and establishes the criteria for setting the fees. Requires that fees be set so that no more than $500,000 is raised in a year.. Limits the uses of the fees for reviewing applications, issuing permits, giving technical assistance to applicants and for ensuring compliance. Requires the EPC to review the fund balances and anticipated expenses annually. (One Amendment to allow emergency rule making regarding terms and application fees) Amended & PASSED, 15-10, Floor Manager: Kuhn
Watershed Improvement Grants Awarded
The Watershed Improvement Review Board has approved seven applications totaling $2.1 million in grants to support projects that will improve water quality in the state. The approved projects have already completed watershed assessments that identified critical water resource areas and will focus on implementing specific water quality improvements. Since inception in 2005, the Legislature has provided $15 million for these watershed improvement grants.
The seven grant recipients will provide $1.7 million to match the $2.1 million investment by the state. As a result, these awards will mean a total of $3.8 million will be invested in water quality improvement projects. Soil and water conservation districts, public water supply utilities, county conservation boards, cities, and local watershed improvement committees are eligible to apply. Individual projects can request up to $500,000
REPORT FROM THE STATEHOUSE, WEEK 11
LEGISLATION OF INTEREST
Second Funnel Week Comes to a Close – By Friday of this week, House bills must be out of Senate committees, and Senate bills must be out of house committees in order to remain alive. The deadline does not apply to Appropriations, Ways and Means, and leadership bills. The scheduled adjourn date is 4 weeks away, so the pace is picking up at the Capitol.
House Agriculture Committee
SF 2133 IOWA CROP IMPROVEMENT ASSOCIATION - Strikes a requirement that the ICIA file with DALS to show its existence. Gives the ICIA rulemaking authority and re-writes Code section on its purposes. Expressly authorizes the hiring of an executive director. Increases the board membership to 11, adding a member from ISU and from stakeholders, and makes other changes in board membership. Allows the board to decide whether to reimburse members. PASSED, 21-0, Floor Manager: Frevert
SF 2337 FAIR LIABILITY INSURANCE - Allows the Association of Iowa Fairs to purchase group liability insurance on behalf of eligible fairs. (Allow multiple fairs to form risk pools) Amended & PASSED, 21-0, Floor Manager: Reichert
SF 2369 MANURE APPLICATION - Makes changes in the definitions for licensing and certifying commercial manure service, commercial manure service representative, and confinement site manure applicator. Changes a reference to “fee to “compensation” for such services. Excludes persons paid for manure from their own farm, or who apply their own manure from the definition of a confinement site manure applicator. Includes people who transport or handle manure in the definition of a confinement site manure applicator. Requires that confinement site manure applicators be certified annually. Limits the amount of time that an uncertified commercial manure service representative can work under supervision to 10 days. PASSED, 11-10, Floor Manager: Greiner
Senate Agriculture Committee
HF 2551 PESTICIDE APPLICATORS - Strikes the requirement for a crop-duster licensed in another state to be under the direct supervision of one licensed in Iowa. Requires DALS to adopt rules on licenses for non-residents, and allows rules on the condition of the aircraft and on the application of pesticides under the supervision of someone licensed in this state. Specifically bans rules on the operation of aircraft when not commercially applying pesticides or on the grounds of an airport. Effective on enactment. Limits the specific rule ban to when an aircraft is not being used to commercially apply pesticides. PASSED, 14-0, Floor Manager: Reilly
HF 2553 SOYBEAN PER DIEMS - Raises the per diem compensation for directors of the Iowa Soybean Association Board to $100. PASSED, 14-0, Floor Manager: Gaskill
HF 2554 DRAINAGE DISTRICT EXPENSES - Increases the ceiling for various repairs or weed eradication that can be authorized by the governing board of a drainage district (county supervisors) without a public hearing to $20,000. Increases the threshold for a landowner to file a remonstrance to $25,000. PASSED, 14-0, Floor Manager: Olive
HF 2601 MISSOURI RIVER ASSOCIATION - Changes the name of the interstate Missouri River Basin Association to the Missouri River Association of States and Tribes. PASSED, 14-0, Floor Manager: Kibbie
HF 2606 GRAIN DEALERS - Includes out-of-state banks and savings and loans in the definition of financial institutions in the provisions regarding grain dealers. Allows DALS to demand financial statements from grain dealers and warehouse operators to verify the financial status of the dealer or warehouse operator. Authorizes DALS to adopt rules on the use of electronic documents. Excludes sellers who do not sell grain delivered in the state from the provisions on indemnification. Establishes a five-year time limit for claims of indemnification, as of the effective date of the bill. PASSED, 14-0, Floor Manager: Fraise
Discussion Continues on Collective Bargaining Bill – On Monday, the Senate took up HF 2645 and passed it as expected. Governor Culver weighed in on the bill early Monday afternoon and urged Senators to slow the process down and hold a public hearing on the bill, in order to listen to the concerns of Iowans. Following the vote, Senate Majority Leader Mike Gonstal (D-Pottawattamie) filed a motion to reconsider, which effectively holds the bill in the Senate until it is either reconsidered by the Senate, or sent to the Governor for his signature. HF 2645 would broaden the range of topics that can be considered when public employees negotiate contracts. Opponents of the bill say it will strip power away from elected local officials to negotiate with public employee unions and restrict their ability to control the level of property tax increases.
Appropriations
The majority party is waiting until after the Revenue Estimating Conference (REC) meets on April 4 to decide if they should scoop any additional revenue that is forecasted.
The REC consists of Charlie Krogmeier (Department of Management Director, Governor’s designee), Dennis Prouty (Legislative Services Agency Director, Legislature’s designee), and David Underwood (retired CFO and Treasurer, AADG, Inc. in Mason City, designee of the other two members). They are responsible for setting the revenue estimate to be used by the Governor and the Legislature when formulating the budget. According to Chapter 8.22A of the Iowa Code:
• By December 15 of each fiscal year the conference shall agree to a revenue estimate for the fiscal year beginning the following July 1. That estimate shall be used by the governor in the preparation of the budget message and by the general assembly in the budget process.
• If the conference agrees to a different estimate at a later meeting which projects a greater amount of revenue than the initial estimate amount agreed to by December 15, the governor and the general assembly shall continue to use the initial estimate in the budget process for that year.
• However, if the conference agrees to a different estimate at a later meeting which projects a lesser amount of revenue than the initial estimate amount, the governor and the general assembly shall use the lesser amount in the budget process for that fiscal year.
The REC gross revenue estimate for FY 08 is 6.9 percent and the estimate for FY 09 is 2.7 percent. Although there are some ominous economic signs on the horizon, year-to-date revenue growth is running at 11 percent above FY 07. Therefore, while the REC might stay at 2.7 percent for FY 09 (or go lower), it will be more than made up for by the expected increase for FY 08.
Comprehensive Departmental Bill Voted Through House
The Department of Natural Resources’ bill passed through the Iowa House this Monday.
• Creates a new section in the code that imposes civil penalties for unlawful operation of an ATV in a nursery, public land where prohibited, or outside of trails in park or fish and game area.
• There are changes to section 481A.18 which requires reporting a hunting accident. It changes the language to “incident” rather than accident for consistency with other laws. It also requires reporting an incident involving a fall from a device for hunting, such as a tree stand.
• There are changes dealing with licenses for members of the military. The changes eliminate the requirement that the individual be a veteran, have served 90 days, or that they are entitled to federal compensation.
• Another portion of the bill deals with restrictions on driving over ice, unless a permit has been issued. The restriction is amended to NOT apply to ATV’s, off-road motorcycles or off road utility vehicles. This allows individuals to use their ATV’s when heading out on the ice for ice fishing.
• There are a couple changes to the hunter’s education requirements. The first change allows reciprocity in hunter training education programs from other states, country or province meeting the standards of the international hunter education association. It also allows DNR to produce the hunters’ information manual in electronic format for access by the public and also allows the DNR to conduct a departmental approved shooting sports activity course at a public school.
• The bill also made substantial changes to a little known program: hunting for the blind.
School Sales Tax Passes Committee
House File 2663, formerly House File 2066, passed the House Ways and Means Committee with bi-partisan support last Thursday night. This legislation would make the current one cent local option sales tax for schools a statewide sales tax.
All the sales tax money will go into one “pot.” It will be distributed out to school districts on a per pupil basis. The amount distributed in the first year, fiscal year 2009, is estimated to be $372 million to school districts. Another $28 million would be used for property tax relief and distributed out of the property tax equity and relief fund in fiscal year 2009.
Governor Signs Tax Exemption for Federal Rebates
Governor Culver signed legislation to exempt federal rebate checks from Iowa income taxes, saving Iowans $67.5 million. For most, the federal rebate is equal to their 2007 tax liability, up to $600 ($1,200 joint returns). The minimum is $300 ($600 joint) and there is an extra $300 per child eligible for the Child Tax Credit. Those with little or no tax bill may qualify for the minimum $300 rebate ($600 joint), with at least $3,000 in qualifying income.
Bill Addresses Crop Damage Caused by Deer
The House gave final approval this week on a bill that establishes a depredation management program to help farmers address the problems they are having from deer. Legislators have heard from farmers regarding the devastation deer are causing to their crops and how this is affecting their livelihood.
Senate File 2328 requires the Department of Natural Resources to make deer depredation hunting licenses available to resident hunters. These licenses allow the hunting of does on farmers’ property during the hunting seasons. A landowner who incurs crop, horticultural product, tree, or nursery damage in excess of $1,000 or more, due to wildlife, is to enter into a depredation management agreement with DNR. The producers will be issued a set number of licenses from the department. These licenses are available to hunters for that farmer’s property. Deer shooting permits must also be available from DNR. These permits may be used outside the established deer hunting seasons on the farmers’ property.
Should the Channel Catfish be the State Fish?
Once again, the House Natural Resources Committee thinks the channel catfish should be the state fish of Iowa. The committee unanimously approved Senate Joint Resolution 2 and moved the bill to the full House for consideration. The full House would have to approve the bill before it would become law. The Senate unanimously adopted the resolution last year.
DNR Reminds Livestock Producers/Crop farmers to Test Soils Before Applying Manure
The Department of Natural Resources (DNR) issued a press release reminding farmers who apply manure this spring that under revised DNR rules that went into effect last September they must sample and analyze their fields concerning the amount of phosphorus and the acidity in the soil before manure is applied. This change in manure application regulation is due to full implementation of the phosphorus index that estimates the potential for this crop nutrient to move from the soil and into our state’s surface waterways, where an excess amount of this element can cause significant degradation of water quality. The phosphorus index takes into account the lay of the land, the distance from a stream and the phosphorus that is in the land. The phosphorus index has been required of livestock producer who built new confinement feeding operation for the last several years, but not is required for everyone who is required to submit a manure management plan. The soil testing aspect of the phosphorus index requires at least one soil sample for each 10-acres in a field that will be fertilized with manure. Producers may keep the result of the test on site, but must use the information to complete a manure management plan (MMP) using a phosphorus index every 4 years. DNR stressed that it will not be granting exemptions or extension of the deadline for P-index-based MMP and failure to meet this timeframe will result in enforcement action with a significant fine.
The DNR also issued a related press release n March 20, notifying livestock growers responsible for developing MMP that they can now update the yield data for corn and soybeans which affect the calculation of how much nitrogen from manure might be used by the ensuing crop. Each year the National Agricultural Statistical Service calculates average yields in all Iowa counties. Producers can use the county averages from the last five years to determine their optimum yield for developing a manure management plan for the DNR. Producers can find the updates in Appendix A of the DNR’s manure management plan. It’s available in DNR field offices and on the DNR Web site at www.iowadnr.gov/afos.html .
USDA Secretary Announces New Conservation Security Program Sign-Up
TheUnited States Department of Agriculture (USDA) Secretary Ed Schafer announced a sign-up for the Conservation Security Program (CSP). It is available starting on April 18 to approximately 64,000 potentially eligible farms and ranches in 51 watersheds covering more than 23.7 million acres.
"As President Bush has said, those who depend on the land to make a living are the best stewards of the land," said Schafer in a USDA report. "Since the first sign-up in 2004, CSP has offered payments for enhancing natural resources, rewarding those farmers and ranchers who are model conservationists, and providing incentives for other producers to achieve those same high standards of conservation in agriculture." The CSP sign-up is open in the 51 watersheds from April 18 to May 16.
REPORT FROM THE STATEHOUSE, WEEK 9
LEGISLATION OF INTEREST
Legislators concentrated on floor work this week. The next funnel is in two weeks and both chambers need to send over bills for committee work.
Looking ahead to Campaign 2008 – The end of this week marks the deadline for candidates who intend to run for the Statehouse this fall, to file papers. To date, three Senate Democrats, six Senate Republicans, four House Democrats (two of whom are running for the Senate), and eight House Republicans have announced that they will not seek re-election in 2008.
Smoking Ban Issue Still Smoldering – The Senate, on a vote of 29 to 21, amended and approved HF 2212, returning it to the House for reconsideration. The House in turn amended the Senate amendment, lobbing it back to the Senate. The House must now recede from their amendment which would send the bill to the Governor, or insist in which case the bill would go to a conference committee. Consensus at the Statehouse is that the House will insist and likely head to conference committee to resolve differences between the House and Senate versions.
As originally passed by the House, the ban applies to workplaces and public places, and to hotels or motels, except designated smoking rooms. When the Senate took up House File 2212, they amended it by striking the exemptions for casinos, veterans’ organizations, and the Iowa Veterans’ Home. They added exemptions for farm vehicles, the state fair, county fairs, National Guard facilities, and designated areas in prisons. The House added back the exemption for the Iowa Veterans Home, and in addition, an exemption for a restaurant, bar, hotel/motel, club, casino or racetrack was added back in. It applies if the establishment has a license to sell beer, wine, or alcohol for on-premise consumption, but only allows smoking at a regular specified time when only those 21 or older are invited or admitted.
Approved by the House:
HF 2450 DED PROGRAMS – (Passed House) – Changes to the IDED Board. Allows the DED to use 1.5% of its money from the RFIA to market renewable fuel programs. Limits the tax credits for film projects, directs the DED to develop a new tourism program, changes reporting requirements, allows DED to contract for a commercialization development entity on a case-by-case basis.
Senate Floor Action:
Resolutions
SCR 102 HIGHER ETHANOL BLEND - Urges the EPA to take actions to make sure consumers have more opportunities to purchase gas with higher ethanol blends.
SF 2361 BIO-BASED PURCHASING – (Passed Senate) – Requires state agencies with purchasing power, and the boards or merged areas to give a purchasing preference to designated bio-based products, based on USDA standards.
SF 2325 ECONOMIC DEVELOPMENT MONEY – (Passed Senate) - Directs the DED to allocate at least $5 million of the money received from RIIF to the Physical Infrastructure Assistance Program and exempts projects funded by this program from the job and wage requirements if the project is an infrastructure project, and meets certain standards set by the DED.
SF 2361 BIO-BASED PURCHASING – (Passed Senate) - Requires the DAS, state agencies with purchasing power, and other boards to give purchasing preference to designated bio-based products, based on USDA standards. (Successor to SF 2272)
New numbers :
HF 2553 SOYBEAN PER DIEMS Raises the per diem compensation for directors of the Iowa Soybean Association Board to $100.
HF 2565 BIODIESEL BLENDED FUEL TAX CREDIT An act relating to the biodiesel blended fuel tax credit for retail dealers, and providing for retroactive applicability.
HF 2593 REAL ID (Transportation; Successor to HSB 753) - Enacts provisions to conform with the REAL ID Act and to allow the state to issue licenses and ids that conform to the requirements of REAL ID.
HF 2598 WORKER STUDY (Economic Growth; Successor to HSB 763) - Appropriates $140,000 to the DWD for a Workforce Innovation for Regional Economic Development Task Force to deal with the expected upcoming shortage of workers in Iowa. Requires a report by January, 2009.
HF 2558 ECONOMIC DEVELOPMENT INFORMATION (Economic Growth; Successor to HSB 686) - Allows an applicant or contract party to request that certain information be kept confidential in regards to information coming before the Economic Development Board. Allows the board to determine that such information shall be kept confidential. Requires the board, in releasing information, explain why some information is kept confidential.
HF 2562 TIME-21 FUNDING(Transportation; Successor to HSB 628) - Makes truck registration fees the same as car registration fees for model years from 2010. Establishes a business trade class of trucks, meeting certain requirements, that are registered for a flat fee. Does not affect trucks already registered under the current truck fee schedule. Cars: Changes the rate schedule for registrations. Makes the minimum registration fee $75 but allows owners paying a lower rate to continue to do so for that car. Other: Raises the fees for farm trucks and for trailers.
HSB 780 RENEWABLE FUEL TAX CREDIT (Ways & Means) Creates a tax credit for consumers who purcahse E-85 or bioddiesel. Requires DOR to set rules for claiming the credit but does not allow a taxpayer to recieve more than $500.
SF 2389 TIME-21 II (Transportation; Successor to SSB 3267) - Requires the Treasurer to credit $346 million from registration fees to the TIME-21 fund. Registration: Replaces the use-tax fee with changed registration fees. Makes truck registration fees the same as car registration fees for model years from 2010. Does not affect trucks already registered under the current truck fee schedule. Cars: Changes the rate schedule for registrations. Makes the minimum registration fee $75 but allows owners paying a lower rate to continue to do so for that car. Other: Raises the fees for farm trucks and trailers.
HF 2565 BIODEISEL BLENDED FUEL TAX CREDIT (Agriculture; Successor to HF 2360) An act relating to the biodiesel blended fuel tax credit for retail dealers.
SSB 3276 CARRY FORWARD (Ways & Means) Limits (reduces) the carry forward for tax credits under the high quality job creation program to five years.
SF 2391 RENEWABLE FUEL PROGRAMS (Agriculture; Successor to SSB 3198) Blender Pumps: Authorizes motor fuel blender pumps which allow retail customers to select the percent of or ethanol or biodiesel which is blended into the fuel. Authorizes cost share financing through the Renewable Fuel Infrastructure Program and establishes a Renewable Fuel Infrastructure Board in the DED. Authorizes the State Fire Marshal to approve the installation of such pumps. Financing: Divides the financing for infrastructure improvements into categories for storing, blending, and dispensing ethanol or ethanol blended gasoline and infrastructure associated with improving infrastructure for storing, blending, or dispensing biodiesel. Allows a person to execute two cost-share agreements to receive up to the full amount available to improve their gas station with ethanol or biodiesel infrastructure. Increases the financing for ethanol to 70% of the cost, with a ceiling of $50,000. Makes the ceiling the same for biodiesel but makes the level of financing 50% for going to B-5 and 70% for going to B-20. Allows the Infrastructure Board to award incentives to persons applying after February 19, 2008. Strikes a provision requiring the Underground Storage Tank Board to review certain applications for financial incentives. Effective on enactment. Floor Manager: Kibbie
SF 2362 MANURE ODOR RESEARCH (Agriculture; Successor to SF 2234) Requires ISU, in consultation with DALS and the DNR, to conduct research into odor mitigation efforts for livestock operations. Classifies research into on-site applied research to see if technologies can be successfully implemented, basic or applied research to evaluate technologies, basic research to investigate new technologies. Makes information received from producers confidential. Requires annual reports by ISU. Floor Manager: Courtney
SF 2381 OPEN FEEDLOTS Includes any confinement building when calculating the animal unit capacity of an open feedlot to determine if the feedlot needs a permit.
SF 2391 RENEWABLE FUEL PROGRAMS Blender Pumps: Authorizes motor fuel blender pumps which allow retail customers to select eh percent of ethanol or biodiesel which is blended into the fuel. Financing: Allows a person to execute two cost-share agreements to receive up to the full amount available to improve their gas station with ethanol or biodiesel infrastructure. Increases the financing for ethanol to 70% of the cost, with a ceiling of $50,000. Makes the ceiling the same for biodiesel but make the level of financing 50% for going to B-5 and 70% for going to B-20 Also caps the biodiesel infrastructure at $1million dollars annually and changes the amount that may be awarded for tank wagons.
Bio-based Purchasing
Requires the DAS, state agencies with purchasing power, and the boards or merged areas to give a purchasing preference to designated bio-based products, based on USDA standards. Requires the purchase to be for the product with the greatest percentage of bio-based material, with exceptions for availability, cost, effectiveness and any existing bio-based purchase preferences.
Ag Panels Okay Odor Research Structure, But Budget Panel Snuffs Funding
In the flurry of committee actions prior to the first funnel, both the House Agriculture Committee approved companion measures that authorize and structure odor research and mitigation efforts. This initiative involves Iowa State University (ISU), the Iowa Department of Agriculture and Land Stewardship (IDALS) the Department of Natural Resources (DNR) and individual livestock farmers. The House Committee passed House Study Bill 679 by a bipartisan 18-aye to 2-nay vote, and the Senate panel passed Senate File 2234, which became Senate File 2362 by a unanimous 15-aye vote.
HSB 679 creates the statutory framework for applied livestock odor research that is conducted by a joint venture involving ISU, IDALS, and IDNR. This consortium would engage and work with an estimated 300 to 500 individual livestock producers to discover which odor reduction methods, practices and facilities work best to reduce odor and air emissions generated by livestock operations in Iowa. The bill include three specific project classifications:
(1) on-site applied research to address whether technologies and strategies can be successfully implemented across many livestock operations, locations, and situations;
(2) basic or applied research to evaluate technologies that have not been subject to comprehensive scientific scrutiny, but which demonstrate promise; and
(3) basic research to investigate emerging technology and strategies/practices.
The bill provides that the information obtained in connection with this research is confidential, unless the confidentiality is waived by the livestock producer.
The evaluation is comprised of three levels. The first level would involve a simple screening evaluation program on the internet that livestock producers could utilize. Depending on the outcome of the evaluation, a second tier would be available that a livestock producer could consult with ISU for a more detailed assessment of the situation. Should the second level assessment suggest that odor emission might be problematic to a neighbor; the livestock producer could utilize the third tier evaluation that would utilize the full-blown community-based odor assessment computer model developed by ISU.
Following completion of the pertinent level of evaluation, the livestock producer is provided with a report containing the findings of the assessment and its recommendation, but this information is confidential. The producer is also provided with a certificate indicating they had utilized this screening evaluation and this certificate. This certificate could be required as a condition for a confinement animal feeding operation permit, if the proposed facility was less than twice the minimum distance separation or the producer has not gotten a waiver from the owner of a protected location within twice the applicable distance.
Funding appears to have foundered upon the rocks of disagreement over whether this program should be a aide to livestock producers and neighbors, or whether portions of it should be more regulatory in nature. The Ag and Natural Resources budget bill did not contain funding for the program, even though the Governor had recommended $1-million for it in his budget address to the General Assembly.
Mowing Restrictions Survive the Funnel
A few natural resources bills survived last week’s legislative funnel. One of those bills implements restrictions on a landowner’s ability to mow certain portions of their property. While some probably welcome a reason not to perform this endless summer chore, the mowing ban raises plenty of concerns.
House File 2111, sponsored by Speaker Pat Murphy, puts a time restriction on mowing within the right of way of a primary highway in Iowa. Essentially this means that any landowner outside of the city limits by more than three miles couldn’t mow. The restriction is in place until July 15th each summer. The idea behind this date is that it allows time for the nesting of Iowa’s pheasants and songbirds by leaving their natural habitat undisturbed until midsummer. But concerns arise over safety around the roadways not to mention the issue of private property rights.
House Passes Surface Water Protection Act
The House unanimously adopted a new initiative to improve Iowa’s water quality. The Surface Water Protection Act is the result of a two-year watershed planning task force and will provide a coordinated effort to clean up our lakes, rivers, and streams.
House File 2400 is designed to assess each watershed in Iowa and get all of the stakeholder - cities, farmers, individuals, businesses - within those watersheds to work together. The bill is designed to treat watersheds like communities and help improve water quality for everyone. The Surface Water Protection Act calls for 56 regional watershed assessments to be completed in five years, providing a summary of the overall condition of the watershed. In addition, smaller community-based subwatershed improvement plans are to be developed and implemented, including monitoring plans. The bill now goes to Senate for consideration.
Appropriations
Two weeks ago, House Republicans announced the caucus will oppose all budget subcommittee bills because of the majority party’s refusal to allow Iowans to see the whole budget picture. Last week, the majority party was given records that House Republicans always produced a balance sheet before moving budget bills out of subcommittee.
This week, the majority party continued to refuse to release the details on the budget to Iowans but began moving the budget bills out the House Appropriations Committee.
Agriculture and Natural Resources Budget Bill
This week, the joint House and Senate Agriculture and Natural Resources Budget Subcommittee moved the budget bill for the Department of Agriculture and Land Stewardship and the Department of Natural Resources to the full House Appropriations Committee. This is the first step in determining the operations budget for these agencies for the next state fiscal year starting July 1, 2008. The bill adopted by the subcommittee appropriates a total of $43.4 million from the general fund. A 2% cut across all departments was required by budget subcommittees. This is a $235,000 reduction from the current fiscal year, FY 2008. The bill also appropriates $40 million from the Environment First Fund for agriculture and natural resources programs and includes $400,000 for ISA’s On-Farm Network Program.
REAP
Iowa’s Resource Enhancement and Protection (REAP) program will receive $16 million next year under the bill, which is an increase of $500,000. Since last year funding has increased by $5 million for environmental and recreation program.
REPORT FROM THE STATEHOUSE, WEEK 8
LEGISLATION OF INTEREST
Funnel Week - This has been a very active week at the Capitol. March 7 is the first funnel deadline of session – meaning that by today, a bill must be voted out of a committee in order to stay alive. Ways and Means, Appropriations, and leadership bills are not impacted by the funnel deadline. A word of caution, bills that do not make it through the funnel may show up later in session as amendments to other bills. Following the funnel activities of this week, we will have a much better idea of which bills have life and which are finished. Bills will also be reassigned different numbers after being passed out as committee bills. ext weeks newsletter should include the new numbers for your tracking ease.
Of interest, two bills that survived funnel and head to the Senate floorwere:
SSB 3258 LIVESTOCK MARKETS (Agriculture) Includes livestock markets as animal confinement feeding operations if the market must have a National Pollutant Discharge Elimination System Permit. Kibbie (C), Black, Johnson
SSB 3259 OPEN FEEDLOTS (Agriculture) Includes any confinement buildings when calculating the animal unit capacity of an open feedlot to determine if the feedlot needs a permit. Allows an open feedlot under certain conditions to discharge effluent after a rain but requires the operation to conform with federal law, including National Pollutant Discharge Elimination System requirements. Kibbie (C), Black, Johnson
Renewable Infrastructure Bills
There are two renewable infrastructure bills. The bill in the House was introduced by PMCI and includes increased retailer tax credits and increased ethanol and biodiesel infrastructure grants, both of which ISA is actively working on and supportive of. he bill also contains some areas of concern that we are watching closely. Those provisions include retroactivity, winter waiver, and removing the threshold required to get the retail tax credits. ISA is concerned that retroactivity will take too much money from the fund and not help move the industry forward with new projects. We also argue that B-2 and B-5 are year round fuels, and since Iowa is a leader in the nation with biodiesel we do not want to codify any perceptions that it cannot be used in cold weather by having a winter waiver. Finally, reaching the threshold encourages retailers to sell more biodiesel in order to obtain the retailer tax credit. If the threshold is removed there is a concern that efforts to sell biodiesel will be dampened.
The bill in the Senate was introduced by the Renewable Fuels Association and limits the amount of grants awarded to tank wagons to just the tank and pumps, and excludes the truck itself. Tank wagons distribute a fourth of biodiesel used in Iowa and are a retail mechanism to get biodiesel out to farmers, construction sites, and industrial locations. The bill also includes an increased grant amount for B-99 terminals to $100,000 but caps the yearly award at $1 million. Lack of B-99 blending terminals is bottleneck in biodiesel distribution because of the high cost of heated and insulated tanks. ISA supports the increased infrastructure grant but doesn’t want to see the programed capped. Instead we believe the renewable infrastructure board is in the best position to decide the necessity of a project application and award the money.
Representatives of ISA were at the capitol this week actively working on these issues. Both bills passed out of the Agriculture Committee as a ‘work in progress’ in order to keep the bills alive past funnel week. ISA will continue to work closely with coalition members on these bills.
Biodiesel Retail Tax Credits
The House Agriculture Committee passed House File 2360 by a unanimous 20-aye vote. HF 2360 makes changes in the current tax credit incentives for retailer to market biodiesel fuels. The bill creates three new tax credit rates of 7.5 cents per gallon for biodiesel fuel that is at least B5 or more, but less than B10 blends; 15-cents per gallon for blends of B10 or more but less than B20; and 30-cents per gallon for blends that are B20 and higher.
The intent of this legislation is to spur biodiesel sales by partially offsetting the high-cost of biodiesel production caused by high soybean prices that have been in the $15 a bushel range. Since it takes around 8-pounds of soy oil to produce a gallon of fuel grade soy oil used in biodiesel fuel blends, the raw input cost component is at or above $4 a gallon. Furthermore, adding the necessary fuel-grade processing expenses and applicable federal and state excise taxes which amount to almost another $1.50 per gallon, the cost to market the soy-biodiesel component amounts to around $5.00 per gallon. Even with the federal $1 per gallon subsidy for the fuel grade soy component for biodiesel blend the current cost of biodiesel substantially exceed current retail prices of diesel (around $3.50 per gallon).
The tax credit changes proposed by this bill would substantially close the current price gap for biodiesel fuel blends and make it price attractive for retailers and diesel vehicle operators. The bill will likely be referred to the House Ways & Means Committee for its consideration since it will have a financial impact on state expenditures. Essentially, the bill creates a de-facto subsidy through the tax credit for fuel grade vegetable oil used in biodiesel fuel blends that could be worth $1.50 per gallon of pure fuel grade vegetable oil. Hence, if either regular petroleum based diesel fuel price soar even above today high level, or should soy oil price decline 10 to 20 cents a pound, the state exposure for this tax credit could be huge.
TIME-21 Funding bill
HSB 628 increases registration fees charged for certain motor vehicles, fees charged for certificates of title, and trailer registration fees and appropriates the additional revenues to the TIME-21 fund.
• Gas Tax – No increase
• Car/Minivan/SUV Registration Fees – Value Component Extended by two years, $75 floor
• Regular Pickup Truck Registration Fees – Moved to Weight/Value formula like cars, $75 Floor
• Business-Trade/Farm Truck Registration Fees - $100 on up
• Special Trucks Registration Fees – Increased between $20 and $45 depending on weight
• Title Registration Fees – Increase from $10 to $20; Salvage Title Fees – Increased from $2 to $10
• Trailer Registration Fees – Increase from $10 to $20 or $30 depending on size
• Travel Trailers and Fifth-Wheel Travel Trailers fee increases from 20 cents per square foot to 30 cents per square foot.
Once the bill passes it will move to the Ways and Means committee where more clarification is expected to be done on the bill.
Immigration Legislation
This week the House Labor Committee passed, without recommendation, an immigration and employee misclassification bill. The bill moves to the House floor on a bipartisan vote. House Study Bill 717, as amended, would require an employer to sign a form indicating that a job applicant's appearance matches a valid photo ID. This action must be done within 10 days of the employee being hired. This portion of the bill is designed to crack down on employers who hire and sometimes exploit illegal aliens.
The less controversial section of the bill deals with the illegal practice of misclassifying an employee. There has been a rise, particularly in the construction field, of employees being hired as independent contractors, usually paid in cash. In reality, the workers are actual employees of the contractor.
Deer Depredation Program
Legislators have heard from farmers regarding the devastation deer are causing to their crops. Working with the Department of Natural Resources, hunting organizations, and farm organizations, the House Natural Resources Committee adopted a bill this week that establishes a depredation management program to help farmers address the problems they're having from deer.
House File 2052, as amended by the committee, requires DNR to make deer depredation hunting licenses available to resident hunters. These licenses allow the hunting of does on farmers' property during the hunting seasons. It also creates a deer study group that can provide feedback on the depredation issues. The bill now goes to the full House for consideration.
Report from the Statehouse, Week 7
Legislation of Interest:
HSB 698 WETLANDS NEAR CONFINEMENT OPERATIONS II Adds wetlands owned by the cities or counties to those which fall under those covered by separation distances from confinement operations. HSB 699 GRAIN DEALERS Includes out-of-state banks and savings and loans in the definition of financial institutions in the provisions regarding grain dealers. Allows DALS to demand financial statements from grain dealers and warehouse operators to verify the financial status of the dealer or warehouse operator. Authorizes DALS to adopt rules on the use of electronic documents. Excludes sellers who do not sell grain delivered in the state from the provisions on indemnification. Establishes a five-year time limit for claims of indemnification.
HSB 700 FLOOD CONTROL LEVIES Allows the county supervisors to levy against all the taxable property in a county in order to finance flood and erosion control projects.
HSB 701 POULTRY LIGHT EXCEPTION Exempts the sale of fluorescent or incandescent lights used in henhouses.
HSB 702 PESTICIDE APPLICATORS Strikes the requirement for a crop-duster licensed in another state to be under the direct supervision of one licensed in Iowa. Requires DALS to adopt rules on licenses for non-residents, and allows rules on the condition of the aircraft and on the application of pesticides under the supervision of someone licensed in this state.
HSB 703 FARM VEHICLE AXLE WEIGHTS Allows vehicles transporting soybeans, corn, hay, straw, or stover during the harvest (September 15 through December 15) to exceed the maximum allowable weight on any one axle, including a tandem axle, by 10 %, as long as the gross weight on any particular group of axles does not exceed the legal limit for that group.
HSB 704 FARM VEHICLE AXLE WEIGHTS Increases the amount of per acre cost a person can incur during any calendar year to establish a soil and water conservation practice under a cost-share agreement to $20 per acre.
SF 2234 MANURE ODOR RESEARCH Requires ISU, in consultation with DALS and the DNR, to conduct research into odor mitigation efforts for livestock operations. Classifies research into on-site applied research to see if technologies can be successfully implemented, basic or applied research to evaluate technologies, basic research to investigate new technologies. Makes information received from producers confidential. Requires annual reports by ISU and a final report by January 30, 2013.
SF 2227 REGULATORY ANALYSIS Requires an analysis on every new rule to determines the impact on small business. Gives a small business standing to challenge a determination by an agency that it is not feasible to reduce the impact on a small business. Requires a periodic review of all rules, at least of every five years.
SF 2228 ETHANOL CO-PRODUCTS Allows the money in the Iowa Power Fund to be used to develop co-products derived during the development of alternative energy. Appropriates money to ISU for research in various aspects of ethanol production and in co-products.
SSB 3220 BIO-REFINERY FEED REPORTS Requires bio-refineries to report to DALS on the amount of commercial feed (refinery co-products) delivered in the previous 90 days, or expected to be delivered in the next 90 days. Requires that DALS only report the information in the aggregate. Establishes an exception for a bio-refinery that produces less than 30,000 tons of feed a year.
HF 2363 DRY MANURE STORAGE Defines dry manure and prohibits storing dry manure within certain distances of surface or groundwater. Makes violations subject to civil penalties. See SF 2213
HF 2400 WATER QUALITY Creates a Water Resources Coordinating Council in the Governor’s Office. Sets the Governor, or Governor’s designee, as the chair, and sets as other members the representatives from the DNR, DALS, DPH, DOT, DED, the Division of Homeland Security and Emergency Management, representatives from the UI College of Public Health, ISU College of Agriculture, the UNI College of Natural Sciences, the ISU Iowa Water Center. Directs the Governor to seek advice from other federal water agencies. Powers: Requires the council to coordinate governmental efforts to improve water quality in an efficient and fiscally responsible manner, and to educate Iowans about water quality livepage.apple.comand their responsibility in improving it. Directs the council to designate one agency to work with local communities on water quality programs.
SSB 3230 HIGHER ETHANOL BLENDS Urges the EPA to take actions to make sure consumers have more opportunities to purchase gas with higher ethanol blends.
HF 2408 CLONED FOOD Requires that food products from cloned animals be designated as such. Requires in-state packing plants to keep such food separate and for retailers to sell such food only if labeled properly.
HF 2420 WORKER SHORTAGE LOAN PROGRAM Creates a worker shortage loan forgiveness program, for Iowa high school graduates who live or work in the state and who complete a post-secondary vocational training course. Establishes criteria for the loan program. Allows the student to earn up to 100% loan forgiveness.
SSB 3237 RENEWABLE ENERGY Changes the definition of alternative and renewable energy by deleting the current list of references and referring to any non-carbon-based form of energy production.
Other Items of Interest:
AGRICULTURE
Biodiesel Tax Credits
The bill increases the retail tax credit for selling biodiesel, 3 cents for biodiesel with 2% (B-2) to 30 cents for B-30. It passed out of subcommittees in both the Senate and House this week (SF 2166 & HF 2360).
Odor Mitigation Bill HSB 679 & SF 2234
HSB 679 creates the statutory framework for applied livestock odor research that would be conducted by a joint venture involving Iowa State University, the Iowa Department of Agriculture and Land Stewardship and the Department of Natural Resources (DNR). This consortium would engage and work with an estimated 300 to 500 individual livestock producers to discover which odor reduction methods, practices and facilities best reduce odor and air emissions generated by livestock operations in Iowa. During the HSB 679 Subcommittee discussion, several members directly asked ISU Ag Dean Wendy Wintersteen whether the proposed $1-million FY-2009 budget allocation (which is about one-fourth of the request) would be sufficient to make a significant start for the research effort and her response was that with such an amount not much could be done since part of what makes science work is a critical mass of numbers.
The bill passed out of Subcommittee on Thursday with an amendment requiring a new hog facility undergo the modeling study by ISU. The amendment also requires the results of the modeling study be kept confidential within the University but that a certificate of performing the study be attached to a permit application,
The Co-chair of the Joint House-Senate Agriculture and Natural Resources Budget Subcommittee told fellow Subcommittee members for House Study Bill 679 that the amount allocated for this purpose will be $1-million as recommended by the Governor with the additional requirement that participating farmers must provide a 1:1 match. However, the budget subcommittee has not released their bill yet so the final compromise is still unknown.
Manure Applicator Bill HSB 705 & SSB 3181
The manure applicator bill passed out of both House and Senate subcommittees. The bill makes changes in the definitions for licensing and certifying commercial manure service, commercial manure service representative, and confinement site manure applicator. It excludes persons paid for manure from their own farm, or who apply their own manure from the definition of a confinement site manure applicator. Includes people who transport or handle manure in the definition of a confinement site manure applicator and changes the requirement for certification to annually, and prorates the fees accordingly.
The manure applicator bill was negotiated between the interested parties and was introduced by the DNR.
Water Use Permits HSB 691
Currently water permit fees are $25 for ten years. The DNR sees a need to do a water quantity study to determine the water available to the State, especially given the growing renewable fuels industry. Conversation in the subcommittee meeting surrounded capping the water withdrawal permit fees in code or letting the DNR determine what it’s needs are. Industries are concerned with letting a department determine their own fees. Another subcommittee will be held next week to clarify how this will be addressed.
Measure Introduced to Increase Non-Resident Aerial Applicators Regulations
House Study Bill 702 provides the Iowa Department of Agriculture and Land Stewardship with specific authority to regulate non-resident aerial applicators of pesticides for agricultural purposes. The legislation eliminates existing authority that permits a non-resident aerial applicator to operate in Iowa without an Iowa commercial applicator license if they do so under an Iowa aerial applicator license. It arises because of the explosive growth in the amount of aerial application that occurred last season in which a number of non-resident aerial applicators made some application mistakes because they weren’t well acquainted with the Iowa agricultural landscape and locally sensitive areas such as seed corn fields where detasselers might be working, organic crops fields, and wine and grape operations.
The increase in application occurred because of fungal concerns in corn fields and aphid infestations in soybean fields. Prospectively, should soybean rust establish itself in Iowa during the growing season, this circumstance would likely trigger even more aerial applications and this legislation will help ensure that problems that might arise from misapplication is kept to a minimum.
Rebates Exempt From State Taxes
The Iowa House voted to exempt federal economic stimulus rebate checks from Iowa income taxes, saving Iowans $67.5 million in state income taxes paid in 2008. House File 2417 will now go to the Senate for its approval. The U.S. Treasurer will start sending rebates checks to 130 million taxpayers in May, with payments continuing through late spring and summer. There are no extra forms to file, as most taxpayers just need to file their regular 2007 federal income tax return. The Internal Revenue Service (IRS) will automatically determine eligibility, figure the amount and issue the payment.
In most cases, the rebate will equal the tax liability on the 2007 tax return up to a maximum $600 for individuals or $1,200 on a joint return. The minimum rebate is $300 for an individual or $600 for a joint return. Parents will get an extra $300 rebate for each child that is eligible for the Child Tax Credit (subject to high income phase-outs).
Illegal Immigration or Identity Theft?
House Study Bill 717 creates a new Chapter 91F on “identity theft”. This requires employers to verify the identity of each new employee and sets forth penalties if employers or the employer’s designee does not fulfill the requirements of verifying each new hire.
House Study Bill 717 also provides for enforcement, as well as allowing the issuance of a non-operator Iowa ID to non-residents. This bill amends the current identity theft statute to include the element of attempting to fraudulently use the identification information of a fictitious person to contract for various benefits including to obtain employment and includes employment and other benefits for determining the value derived from committing identity theft.
House Study Bill 717 also requires contractors to classify individuals who perform services for the contractor as employees of the contractor. However, this employee classification in HSB 717 is pared back from House File 2026 – some of the major differences is that HSB 717 no longer requires a 13-point checklist to determine if an independent contractor or an employee, HSB 717 only requires a 4-point checklist if all of the following conditions in relation to a contractor apply:
_ The individual performs services under the control or direction of the contractor.
_ The contractor is responsible for the payment of the individual’s wages.
_ The right to discharge or terminate the working relationship lies between the individual and the contractor.
_ The contractor is the authority in charge of the work or for whose benefit the work is being performed.
Deer Depredation Continues to be Focus
The Natural Resources Committee is looking to build a comprehensive deer depredation bill. Depredation focuses on a landowner’s ability to protect their crops from damage from the deer population. This includes land used for all crops and nurseries. House Study Bill 2052 and Senate Study Bill 3176 both address depredation issues. Currently, there is a great deal of discussion about the contents of these two bills as well as multiple amendments. These bills along with several other bills run the full gamut of depredation issues.
A final depredation bill is expected to come out in the next week. These hunters are a vital part of controlling the deer population in Iowa. DNR officials are pleased with the results of this year’s hunting season and are encouraged by the changes in deer population over the last few years. Iowa’s deer population is nearing the proper levels in some parts of the state.
REPORT FROM THE STATEHOUSE, WEEK 6
LEGISLATION OF INTEREST
HF 2284 GRAIN DEALERS Includes out-of-state banks and savings and loans in the definition of financial institutions in the provisions regarding grain dealers. Allows DALS to demand financial statements from grain dealers and warehouse operators to verify the financial status of the dealer or warehouse operator and authorizes DALS to adopt rules on the use of electronic documents. Excludes sellers who do not sell grain delivered in the state from the provisions on indemnification. Establishes a five-year time limit for claims of indemnification.
HF 2286 LIVESTOCK ABUSE Increases the penalties for mistreating livestock if the person has been convicted of an offense in the last ten years or if the offense involves ten or more livestock.
HSB 679 MANURE ODOR RESEARCH Requires ISU, in consultation with DALS and the DNR, to conduct research into odor mitigation efforts for livestock operations. Classifies research into on-site applied research to see if technologies can be successfully implemented, basic or applied research to evaluate technologies, basic research to investigate new technologies. Makes information received from producers confidential.
HF 2304 FARMLAND PRESERVATION Establishes methods to preserve farmland, including the use of income tax credits based on use restrictions that are established by private agreements with the state, or through zoning. Tax Credit: Limited to owners, or purchasers, for at least 35 acres of farmland that is subject to a preservation agreement or is zoned as exclusively agricultural. Creates a formula to compute the credit based on property taxes. Farmland preservation: Requires DALS to administer the farmland preservation provisions, establish a Farmland Preservation Council, and prohibits local governments from imposing special assessments on farmland subject to a preservation agreement. Zoning: Allows counties with agricultural zoning to adopt a special agricultural zoning ordinance, but prohibits the regulation of the production of livestock.
HSB 691 WATER PERMIT FEES Authorizes the EPC to set fees for water use and establishes the criteria for setting the fees. Limits the uses of the fees for scientific and technical purposes related to water, and for compliance purposes. Requires the EPC to review the fund balances and anticipated expenses annually.
HSB 698 WETLANDS NEAR CONFINEMENT OPERATIONS II Adds wetlands owned by the cities or counties to those which fall under those covered by separation distances from confinement operations.
HF 2334 SCHOOL NUTRITION STANDARDS Directs the DOE to develop minimum nutritional standards. Requires that food and beverages sold from vending machines meet these standards. Prohibits the sale of junk food in schools as of July, 2009 and allows schools to adopt more stringent standards.
SSB 3198 RENEWABLE FUEL PROGRAMS Blender Pumps: Authorizes motor fuel blender pumps which allow retail customers to select the percent of or ethanol or biodiesel which is blended into the fuel. Authorizes cost share financing through the Renewable Fuel Infrastructure Program and establishes a Renewable Fuel Infrastructure Board in the DED. Authorizes the State Fire Marshal to approve the installation of such pumps. Financing: Divides the financing for infrastructure improvements into categories for storing, blending, and dispensing ethanol or ethanol blended gasoline and infrastructure associated with improving infrastructure for storing, blending, or dispensing biodiesel. Allows a person to execute two cost-share agreements to receive up to the full amount available to improve their gas station with ethanol or biodiesel infrastructure. Increases the financing for ethanol to 70% of the cost, with a ceiling of $50,000. Makes the ceiling the same for biodiesel but makes the level of financing 50% for going to B-5 and 70% for going to B-20. Allows the Infrastructure Board to award incentives to persons applying after February 19, 2008. Strikes a provision requiring the Underground Storage Tank Board to review certain applications for financial incentives.
Signed by the Governor
SF 572 SOY TRANSFORMER FLUID CREDIT II
Extends the repeal of the soy-based transformer fluid tax credit to December 2009. Effective on enactment.
Other Items of Interest:
Smoke Free Air Act Passes House
The Iowa House passed the Smoke Free Air Act by 56-44 on Tuesday, February 19. The bill will now go to the Senate. The smoking ban would apply to all workplaces, public places, and certain outdoor areas. In addition, smoking would be banned within 10 feet of a door or window of a workplace or public places. Exemptions include allowing smoking in private residences (unless used for childcare), private long-term-care rooms, stores primarily selling tobacco, casinos, private clubs with no employees, veterans posts when not used by the public, limousines under private hire, and vehicles provided by an employer exclusively to one employee. The Legislative Services Agency, a nonpartisan agency, estimates that state revenue will be reduced $9 million because of lost tobacco tax revenue.
By a vote of 50-50 Lawmakers rejected provision that would have exempted farm operations from the legislation. As the bill stands, a farm that is incorporated and has employees will not be able to smoke in farm equipment if more than one employee uses the same piece of equipment.
Surface Water Protection Act Advances to House
A new initiative to improve Iowa’s water quality unanimously passed the House Environmental Protection Committee this week. The Surface Water Protection Act is the result of a two-year watershed planning task force and will provide a coordinated effort to clean up our lakes, rivers, and streams. House Study Bill 615 is designed to assess each watershed in Iowa and get all of the stakeholders within those watersheds to work together.
The bill creates a Water Resources Coordinating Council within the Governor’s office to preserve and protect Iowa’s water resources and coordinate efforts. The Subcommittee met twice a week for three weeks and was supportive of amendments that would change the bill provisions so that it more closely follows the Watershed Quality Planning Task Force recommendations made late last fall. Much of the discussion involved whether the legislation should primarily be one that creates coordinating and facilitating roles for the two state agencies principally involved in water quality (the Department of Natural Resources [DNR] and the Iowa Department of Agriculture and Land Stewardship) or whether it should include extensive new powers and authorities for the state agencies, principally DNR as specified in the original bill draft. The council is made up of directors of affected state agencies and Regents universities. It will also complete a statewide water plan focused on water assessments and prioritization. The bill now goes to the full House for consideration.
Major Pipeline Companies Announce Agreement to Study Ethanol Pipeline Feasibility Magellan Midstream Partners, L.P. and Buckeye Partners L.P. announced that the have begun a joint assessment to |