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[Dome]Interim Calendar and Briefing

November 1, 1995

Contents:
CALENDAR OF SCHEDULED MEETINGS
AGENDA INFORMATION REGARDING SCHEDULED MEETINGS
BRIEFINGS - INFORMATION REGARDING RECENT MEETINGS

Calendar of Scheduled Meetings

Monday, November 6, 1995
Alternative Energy Production Committee
9:00 a.m., Room 116
Tuesday, November 7, 1995
Alternative Energy Production Committee
9:00 a.m., Room 116
Wednesday, November 8, 1995
Blueprint for Iowa's Young Children Committee
10:00 a.m., Room 22
Thursday, November 9, 1995
Housing Development Study Committee
9:30 a.m., Room 22
Monday, November 13, 1995
Administrative Rules Review Committee
10:00 a.m., Room 22
Tuesday, November 14, 1995
Administrative Rules Review Committee
9:00 a.m., Room 22
Wednesday, November 15, 1995
One-Call Statewide Underground Facility Notification Study Committee
POSTPONED--TO BE RESCHEDULED
Tuesday, November 21, 1995
Fiscal Committee of the Legislative Council - Tentative
10:00 a.m., Des Moines, Exact Location to be Announced
Wednesday, November 29, 1995
Legislative Council and Council Committees - Tentative
Times to be Announced, Room 2
Wednesday, December 6, 1995
Senate File 13 (Parental Notification) Conference Committee
10:00 a.m., Room 22
Tuesday, December 12, 1995
Administrative Rules Review Committee
10:00 a.m., Room 22
Wednesday, December 13, 1995
Administrative Rules Review Committee
9:00 a.m., Room 22
Thursday, December 14, 1995
Public Retirement Systems Study Committee - Tentative
10:00 a.m., Room 22

Agenda Information Regarding Scheduled Meetings

Alternative Energy Production Committee

Temporary Co-chairperson: Senator Bill Fink

Temporary Co-chairperson: Representative Ronald Nutt

Blueprint for Iowa's Young Children Study Committee

Co-chairperson: Senator Elaine Szymoniak

Co-chairperson: Representative Danny Carroll

Housing Development Study Committee

Co-chairperson: Senator Michael Gronstal

Co-chairperson: Representative Libby Jacobs

Administrative Rules Review Committee

Co-chairperson: Senator Berl E. Priebe

Co-chairperson: Representative Janet Metcalf

Fiscal Committee of the Legislative Council - TENTATIVE

Co-chairperson: Senator Larry Murphy

Co-chairperson: Representative David Millage

Legislative Council and Council Committees - TENTATIVE

Chairperson: Speaker Ron Corbett

Vice Chairperson: Senator Wally Horn

BRIEFINGS - Information Regarding Recent Meetings

IOWA TELECOMMUNICATIONS AND TECHNOLOGY COMMISSION

October 25, 1995

ICN Option
The Iowa Telecommunications and Technology Commission met primarily for the purpose of determining what recommendation to make to the Legislature concerning the disposition of the Iowa Communications Network as required by House File 461, passed during the 1995 legislative session. The Commission made its recommendation based in part on a review of the report and information generated by the 461 Task Force which was appointed by the Commission in response to House File 461. Options reviewed included the following:
  1. Sale of the network (no assurances for education or governmental services).
  2. Sale of the network (with assurances for education and governmental services).
  3. Sale of excess capacity.
  4. Private-public ownership.
  5. State ownership, private operations.
  6. State ownership, private management.
  7. Lease of excess capacity (no restrictions).
  8. Lease of excess capacity (restricted).
  9. State ownership and operation (limited).
  10. State-owned public utility (no limits).
Commission Recommendation
The Commission reviewed each option individually and recommends option 9, continuing operation of the Network as currently operated. The Commission also recommends that no additional private users be authorized to use the Network at this time. The Commission also indicates that short-term factors favor this option, and that the future disposition of the Network should be studied during the legislative year 2000.
Report Submitte
The report of the Commission has been delivered to the members of the Senate Committee on Communications and Information Policy, the House Committee on Technology, the Secretary of the Senate, the Chief Clerk of the House, and legislative staffs. Persons interested in the Commission report may contact Mark Johnson at the number below.
Next Meeting.
The next meeting of the Commission has been tentatively set for December 6, 1995, at 9:00 a.m.

IOWA HEALTH REFORM TRANSITION TEAM

October 26, 1995

Background.
The Governor created the Health Care Transition Team in 1994 following the report of the Iowa Health Reform Council. The membership of the Team includes executive branch staff members and private citizens. The Team is an extension of the Health Reform Council and is charged to monitor health reform activities at the state and federal levels.
Overview.
The Iowa Health Reform Transition Team met for the final time on Thursday, October 26, 1995. The Transition Team reviewed several issues and then was addressed by Governor Branstad who thanked the Transition Team for their time and effort. Major issues reviewed included the following:
Medical Savings Accounts.
The Transition Team reviewed a position paper making recommendations to the Governor and the General Assembly concerning medical savings accounts (MSAs). The recommendations include that MSAs should be voluntary, expenditures allowed should provide reasonably broad discretion to empower the individual to become more active in health care decision-making, an appropriate regulatory structure should be established to prevent adverse selection, and the federal government should be encouraged to provide preferential tax treatment of MSAs. (MSAs have been proposed in several states and involve the creation of a tax-advantaged account from which an individual is allowed to pay for certain medical expenses. The types of expenses allowed vary under different proposals and may include direct payment of health care provider fees, and health insurance premiums, copayments, and deductibles.)
Medical Education Costs.
The Transition Team reviewed federal action affecting medical education costs and agreed on a position that state action will be shaped after federal action is taken, and support should be expressed for the trust fund concept on the federal level. (Currently, federal dollars flow to teaching institutions through the federal Medicare program. Proposed federal changes would change the way teaching hospitals are funded and result in fewer dollars for medical education. Medical teaching facilities funded by federal dollars will see a decrease in those dollars while also attempting to compete in a managed care environment.)

EDUCATION TELECOMMUNICATIONS COUNCIL (ETC)

October 26, 1995

Background.
The Education Telecommunications Council is established in Section 8D.5 of the Iowa Code. The Council's responsibilities are to establish scheduling and site usage policies for educational users of the network, coordinate the activities of the regional telecommunications councils, develop proposed rules and changes to rules for recommendation to the commission, and recommend long-range plans for enhancements needed for educational applications.
Updates.
The Council received the following updates:
ICN Recommendation.
Richard Opie, Iowa Telecommunications and Technology Commissioner, updated members on the Commission's decision to recommend to the Legislature that the state maintain ownership and operation of the Iowa Communications Network (ICN). After his update, members discussed and rallied behind the need for unified Council support for prekindergarten through postsecondary education and education priorities on the ICN.
School Technology.
Pam Johnson of Iowa Public Television (IPTV) updated members on the four School Improvement/Technology hearings held across Iowa this fall. She announced that a final nonpartisan hearing will be held on November 7, 1995. Forty-four ICN sites are expected to participate in the hearing scheduled for 6:30 to 8:30 p.m.
Federal Office Closing.
Pam Johnson also updated members on the closing of the federal Office of Technology Assessment (OTA) on September 30, 1995. Congress established the OTA in 1972 to provide congressional committees with analyses of emerging, difficult, and often highly technical issues. Through its Education and Human Resources Program the OTA provided excellent information on distance learning and, she said, its loss will be felt in Iowa.
Internet Concerns.
Paul Bowers suggested that an advisory group be set up to follow Internet concerns, because of the huge amount of training and information needed. He said there is too much information for each of the school districts to try to individually deal with and suggested the need to develop a manual available to each school district. Ms. Johnson indicated that Heartland AEA is working on such a publication and Heartland expects to distribute it within the next month.
Issue Discussion.
Issues Discussed by the Council:
Fee Arrangements for Shared K-12 Classes.
Most members indicated their belief that the marketplace would eventually mitigate the problem of high fees for the sharing of teachers, but a few suggested that even though there is no ICN charge for the sharing of teachers, the ICN could be blamed for high fees.
Authorized Users of the ICN.
Certain members raised the concern that local businesses may apply pressure to authorized users to permit private noneducational use of the network. Currently, ICN use is not scrutinized, and many members encouraged the continuation this policy to allow local control of use. Members indicated support for the issuance of a document to each authorized user describing the expectations and responsibilities of the user. Ms. Johnson suggested that her office may ask randomly selected users to share their policies on use. Ms. Johnson asked that members consider the issue again and try to reach consensus at the next meeting.
User Group Advisory Committee.
Mr. Bowers also suggested the need for a user group advisory committee. When agreement could not be reached, the topic was tabled for further consideration.
Next Meeting:
The ETC will hold its next meeting at 9:00 a.m. on November 20, 1995, at IPTV.

Public Retirement Interim Committee

October 26-27, 1995, First and second of two meetings; third meeting to be requested

Overview - Next Meeting.

The Public Retirement Systems Study Committee received testimony from various organizations and individuals concerned with public retirement, including the individuals involved with management of the various public retirement systems in the state. The Committee elected Senator John Kibbie and Representative Mona Martin Co-chairpersons and tentatively set the date for the third meeting of the committee, subject to Legislative Council approval, for December 14, 1995.

Iowa Public Employees' Retirement System (IPERS).

Consultant Study.
Joseph Metz, Buck Consultants, presented his report concerning IPERS benefit enhancements. Buck Consultants was hired by IPERS to conduct an independent study on the benefits provided by IPERS and to make recommendations. The following recommendations were relayed to the Committee:
IPERS.
Mr. Greg Cusack, Chief Benefits Officer for IPERS, discussed several recommendations for benefits enhancements for IPERS. He indicated that there is consensus among several constituent groups and IPERS to do several of the Buck recommendations in some form concerning the salary cap, credited service, minimum benefits, a modified COLA, interest credited, retiree earnings, and to try and develop a method to fund post-retirement health care. Mr. Cusack indicated that all parties agreed that further study is necessary concerning proposals on death benefit and disability payouts and on indexing the value of terminated vested members' benefits. Mr. Cusack indicated that there was no agreement on the proposal to change the current retirement rule of 92 to the rule of 85; Mr. Cusack indicated that IPERS opposed this change.
Iowa State Sheriffs' & Deputies' Association.
The Association recommended a change in the normal retirement eligibility requirements to 25 years of service without any age requirement from the current 22 years of service and age 55.
Iowa Corrections Association.
The Association recommended that all institutional and community-based corrections classes be included in the definition of "protected occupations" under IPERS.
Airport Firefighters Association.
The Association recommended that any heart or lung problems experienced by fire fighters be presumed to be job related for purposes of disability benefits.
Iowa Retired School Personnel Association
The Association recommended establishing a minimum monthly benefit for people who have served in public employment for 10, 20, or 30 years, implementing a COLA, and examining the establishment of a health care package for the currently retired.
School Administrators of Iowa.
The organization listed the following Buck recommendations as priority issues: salary cap, credited service, and structure. The organization also supports maintaining the fiscal integrity of the IPERS fund if additional improvements are adopted by increasing the contribution rates for both employers and employees and by increasing the current interest assumption rate. Additional priority issues for the organization are to change the retirement eligibility requirement to the rule of 85 and to provide an option for surviving spouses of members who die before retirement to elect payment through an annuity rather than a lump-sum.
Iowa State Education Association.
The Association supports several of the Buck Consultants recommendations concerning retirement eligibility, salary cap, credited service, and providing a COLA. In addition, the association supports the establishment of retiree health care coverage and the consultant's recommendation to adopt a Board of Trustees structure for IPERS.
IPERS Improvement Association.
The Association supports providing a cost of living adjustment for retirees, modifying the current rule of 92 to the rule of 90, and modifying the wage and covered years ceilings.
Iowa Association of Community College Trustees.
The Association, as its top priorities, recommends removal of the covered wage cap and the maintenance of an actuarially sound IPERS program. The Association also recommends adopting the Buck Consultants proposal regarding retirement eligibility, minimum benefits, a COLA, death benefits, retiree earnings, and structure.
Iowa Association of School Boards.
The Association supports the consideration of modifying the current rule of 92 for normal retirement and removing the service cap of 30 years.
AFSCME.
AFSCME supports removing the salary cap, moving from the rule of 92 to the rule of 85 for normal retirement, legislative consideration for an early retirement program, adding more classifications of community-based correction officers to the protected class category, and the recommendations of the Airport Firefighters.

Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF).

The Committee received testimony describing the retirement fund for regents institutions. The presenters noted that unlike the other state retirement plans in Iowa which are considered defined benefit plans, this fund is a defined contribution plan wherein the state makes a certain payment into the plan, along with the prospective retiree, and the person's retirement is based on how their investments do over time.

Judicial Retirement System.

The Iowa Judges Association addressed the Committee and indicated their appreciation of the steps the Legislature made to make the system actuarially sound. The Association urged the Committee to stay the course as to the state's commitment to make a 23.7 percent contribution to the system, to make up the shortfall created last year when the full 23.7 percent was not appropriated, and to continue the additional $5,000 compensation for senior judges. The Judicial Department summarized the recent results from the actuarial report and indicated that depending on the valuation method used, the system's unfunded liabilities had either stayed the same or had been reduced by the end of the last fiscal year.

Municipal Fire and Police Retirement System (Chapter 411).

Dennis Jacobs, Executive Director.
Mr. Jacobs indicated that the system is proposing recommendations for statutory changes concerning the following issues: updating medical protocols, clarifying the timing concerning eligibility for escalation, marital property orders, the interest to be charged cities for any unfunded liabilities, and portability of service between this system and the Peace Officers Retirement System. Mr. Jacobs also indicated that the system is likely to support a standardized escalation program once additional information is received from the actuary.
Iowa Professional Fire Fighters.
The Fire Fighters support pre-tax treatment for employee contributions for the state income tax, inclusion of infectious diseases and cancer within the presumption that the disease or illness is job related, full retirement at 22 years of service with the escalator without attaining the age of 55, and a standardized escalator for the system.
Iowa State Police Association.
The Association supports a standardized automatic escalator for pensions, pre-tax treatment under the state income tax, allowing the escalator for people who retire after 22 years but have not yet reached age 55, providing benefits to surviving spouses similar to benefits under PORS, and considering, once the fund is sound, increasing the percentage applied to calculate benefits for additional years of service.

Peace Officers' Retirement System (PORS).

Carroll Bidler, Director of Administrative Services.
Mr. Bidler reviewed the recent actuarial report with the Committee. He indicated that the system supports portability of benefits between PORS and the Municipal Fire and Police Retirement System and wants the contribution rates for the system based on the PORS and not the Municipal Fire and Police Retirement System.
Iowa State Troopers Association and Iowa State Patrol Supervisors Association.
The Associations support maintaining the current contribution levels into the system and providing that employee contributions be on a pre-tax basis for state taxes. The Associations also support increasing from 0.6 percent to 1.5 percent the benefit for each additional year of service from 22 years to 30 years of service, increasing the escalators, increasing the minimum benefit for surviving spouses, and providing escalator benefits for members who vest with 22 or more years of service regardless of age.

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