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[Dome]Interim Calendar and Briefing

December 18, 1996

Contents:
Calendar of Scheduled Meetings
Agenda Information Regarding Scheduled Meetings
BRIEFINGS - Information Regarding Recent Meetings

Calendar of Scheduled Meetings

Friday, December 20, 1996
HEDGE TO ARRIVE CONTRACTS STUDY COMMITTEE
9:00 a.m., Iowa State University Memorial Union, Campanile Room, 1st Floor
Monday, December 30, 1996
Judicial Compensation Commission
10:00 a.m., Room 116
Monday, January 6, 1997
ADMINISTRATIVE RULES REVIEW COMMITTEE
10:00 a.m., Room 118
Tuesday, January 7, 1997
ADMINISTRATIVE RULES REVIEW COMMITTEE
9:00 a.m., Room 118
FISCAL COMMITTEE OF THE LEGISLATIVE COUNCIL - (TENTATIVE)
10:00 a.m., Room 22
Wednesday, January 8, 1997
Iowa Administrative Procedures Study Committee
10:00 a.m., Room 116

Agenda Information Regarding Scheduled Meetings

Hedge to Arrive Contracts Study Committee

Co-chairperson: Senator John Kibbie
Co-chairperson: Representative Russell Teig

Judicial Compensation Commission

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

Iowa Administrative Procedures Study Committee

Co-chairperson: Senator Tom Vilsack
Co-chairperson: Representative Janet Metcalf

BRIEFINGS - Information Regarding Recent Meetings

Fiscal Committee of the Legislative Council

December 4, 1996

General Fund Condition.
Dennis Prouty, Director, Legislative Fiscal Bureau, discussed the projected condition of the State General Fund at the end of the current fiscal year and the 1998 fiscal year. Mr. Prouty also discussed the latest Revenue Estimating Conference estimates for general fund revenues. The Revenue Estimating Conference projected growth for the 1997 fiscal year to be 5.0 percent over the 1996 fiscal year and growth for the 1998 fiscal year to be 4.5 percent compared to the 1997 fiscal year.
Lease-Purchase Notification.
Dave Reynolds, Legislative Fiscal Bureau, noted the Board of Regents submitted a lease-purchase notification to upgrade the mainframe computer system at the University of Iowa to be paid from the University of Iowa Hospital and Clinics budgets.
ICN Update.
Mary Shipman, Legislative Fiscal Bureau, presented an update on the Iowa Communications Network (ICN). The ICN's operating revenues exceed the year-to-date budget by 0.8 percent. However, data revenues are lower than anticipated. Total expenses were less than the year-to-date budget by 4.3 percent. The actual cash loss to date is $116,000 which is much less than budgeted.
Fisher Commission Final Report.
Gretchen Tegeler, Department of Management, presented the final report of the Governor's Committee on Government Spending Reform (Fisher Commission). The report included recommendations for the phase-in of biennial budgeting and creation of an Information Technology Agency.
Department FY 1998 Budget Requests.
Mr. Prouty gave a breakdown of the budget requests for the FY 1998 organized by the joint appropriations subcommittees and the percentage changes from FY 1997.
Iowa Housing Programs.
A draft of the estimated housing resources in Iowa for FY 1997 was prepared and discussed by the Iowa Finance Authority and Department of Economic Development. This draft contained the programs and amount of resources available through IFA, Department of Economic Development, federal Home Loan Bank, HUD, federal entitlement funding used by cities, Rural Development (formerly FmHA), and other entities such as Fannie Mae.
Review of Tax Study Results.
Jon Muller, Legislative Fiscal Bureau, discussed an issue review he prepared which examined the results of a study published in the Des Moines Register which was prepared by KPMG Peat Marwick. The issue review discussed the assumptions and scenarios involved in the KPMG study as well as the results reached by utilizing Legislative Fiscal Bureau assumptions and scenarios. The conclusion was that the study done for the Des Moines Register overstates the amount of taxes imposed on typical taxpayers in Iowa.
Collective Bargaining.
Larry Sigel, Legislative Fiscal Bureau, made a comparison on the opening offers of AFSCME and other employee bargaining units and the state.
Next Meeting.
The next meeting of the Committee is tentatively scheduled for January 7, 1997. The agenda is to be announced later.

ADMINISTRATIVE RULES REVIEW COMMITTEE

December 11-12, 1996

DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP
Agricultural liming materials. ARC 6881A, 21 IAC 43.30 et sec, NOTICE. A proposal updating current regulation concerning the grading and marketing of liming materials has turned unexpectedly controversial. Many municipal water systems market liming materials as a by-product of their water treatment activities. Representatives of smaller systems are concerned their operations will not be able to meet the restrictions on moisture content set out in the proposal. The department contends that meeting this requirement does not require any special equipment or expense on the part of these utilities.
Committee Action. The committee has asked for an economic impact statement to detail the fiscal impact, if any, this proposal will have on smaller systems.
DEPARTMENT OF NATURAL RESOURCES
Increased deer seasons. ARC 6862A and 6861A, 571 IAC 94.6 and 106.13, NOTICE. In response to the large numbers of deer now in Iowa, the department proposes two rules increasing the 1997 quotas. The first rule would increase out-of-state licenses from 4200 to 5000; the fee is $110 per license. The second proposal would establish a special season late deer hunt. In addition to any other license purchased for the 1996-97 hunt, a hunter could purchase a special late season license. Under the proposal, 2000 antlerless deer licenses would be issued in each of two zones, for January 11 through January 19, 1997. The areas comprise much of southwest and south central Iowa. Licenses cost $25 and the method of taking includes shotgun, bow, or muzzleloading rifle.
Committee Action. No Committee action was taken.
DEPARTMENT OF PUBLIC HEALTH
Parental notification prior to termination of pregnancy. ARC 6896A, 641 IAC 89, ADOPTED. This provision was initially reviewed by the Committee at its November meeting. At issue is the question of confidentiality of notifications made under Iowa's enactment of parental notification laws (Senate File 13). Absent specific statutory authority, the department does not have independent authority to create a confidentiality requirement or impose any sanction for disclosure.
Committee Action. The committee voted a general referral to the Legislature, requesting consideration of an expansion of the current confidentiality requirements.
DEPARTMENT OF PUBLIC SAFETY
Insulation in residential construction. ARC 6876A, 661 IAC 16.801, NOTICE. In response to a petition for rulemaking, the department has published a notice of intended action proposing the elimination of current requirements for the insulation of basements in new residential construction. The proponents of this change contend that the insulation requirements add between $700 and $2000 to the price of new home construction, pricing many potential buyers out of the new home market. Proponents state that most homeowners ultimately "finish off" their basements and that presents the best opportunity to insulate the basement. Opponents of the change content the current requirement saves almost $200 per year in home heating costs, thus paying for the cost of insulation in five to seven years.
Committee Action. No committee action was taken, but further review is likely if the department adopts the rule change.
DEPARTMENT OF REVENUE
Sales tax on Internet services, ARC 6804A, 701 IAC 18.20, NOTICE. The committee reviewed a proposal which will impose sales tax on Internet and fax services. Iowa law currently imposes sales tax on communications services in Iowa Code section 422.43(1). This means that Internet providers which include some type of communication ability (e.g.: e-mail, ftps, chat rooms) in their package will be required to collect sales tax for that service. The proposal is controversial, with opponents contending that the Internet is not communication as envisioned in the statute.
Committee Action. No committee action was taken.
DEPARTMENT OF TRANSPORTATION
Proof of identity to obtain a drivers license. ARC 6866A, 761 IAC 601.5, ADOPTED. This adopted rule change was unexpectedly controversial. The rule enumerates the documents which provide acceptable proof of identification to obtain a drivers license. The rule provides that a birth certificate is acceptable only when a certified copy is provided by the State Registrar's office. It was noted that obtaining a certificate from the State Registrar is a difficult proposition, requiring a $10 fee ($15 if paid by credit card). In addition to the cost, there is generally a two week delay. The department contended this limitation is necessary to ensure that the certificate was not fraudulently obtained. County registrars opposed this provision, noting that a new, state-wide system is being implemented that provides the same security for local birth certificates that is currently available under the state system. Following discussion, the department agreed the new system would provide the same level of security for county generated certificates, and stated it would change the rule as the county system becomes operational.
Committee Action. No committee action was taken.

Compensation of Justices, Judges, and Magistrates Interim Study Committee

December 13, 1996; First and Final Meeting

Overview.
The Compensation of Justices, Judges, and Magistrates Interim Study Committee was established by the Legislative Council to review the compensation of justices, judges, and magistrates of the Judicial Department with a focus upon the ability to recruit and retain qualified candidates.
Compensation of Magistrates.
Mr. James Mefferd and Mr. William Thatcher, from the Iowa Magistrates Association, described how the jurisdiction and case loads of magistrates have been increased through the additions of civil commitment hearings, domestic abuse hearing responsibilities, and the changes in the thresholds that prescribe which cases are heard at the magistrate level. Mr. Mefford presented graphs which indicated relatively static compensation levels for magistrates and the proportional discrepancies between magistrates' pay and the salary amounts for other judicial officers.
Compensation of Justices and Judges.
Judge James Kelley, from the Iowa Judges' Association, discussed Iowa's recent efforts to keep judicial salaries and benefits competitive, but noted that when the local fringe benefits and supplements are accounted for, many of Iowa's neighboring states provide better compensation packages. Judge Kelley also described the stresses that increased case loads, the new domestic abuse law, and decreased resources have created for Iowa's judges. Judge Phillip Collett related his experiences with his local judicial nominating commission.
Trial Lawyers' Association.
Dennis Chalupa, of the Iowa Trial Lawyers' Association, described the importance of the role played by Iowa's judges in society. He enumerated various hardships that judges must face, including long hours and extensive travel time, while performing their duties.
Private Sector Testimony.
Ronald Pearson, CEO of Hy-Vee Incorporated, described judicial salaries as approximately one-half of the amount that is afforded to executives with comparable decision-making authority in the private sector. He also stressed the significance of compensation in attracting the best and brightest individuals to positions of importance and the impact compensation has on the quality of work that is produced. He also described the process used by Hy-Vee to arrive at its salary and benefits packages.
Bar Association.
Roger Stetson compared the results of the Iowa Bar Association's recent economic survey of Bar members with the compensation levels afforded Iowa's judges and stressed the importance of the role that adequate compensation plays in attracting and retaining the best lawyers for the bench.
Committee Recommendations.
At the conclusion of the testimony, the Committee made the following conclusions and recommendations:

PROSPECTIVE MINOR PARENTS ADVISORY COMMITTEE

December 16, 1996

Background.
Senate File 13, as enacted by the 1996 General Assembly, directed that a Prospective Minor Parents Program Advisory Committee be created to carry out duties prescribed in the Act including the development and distribution of a video to be viewed by prospective minor parents, receiving of public input relative to the program, and ongoing evaluation of the program.
Overview.
The agenda included a preview of the video, discussion of written materials to accompany the video and a discussion of the progress report to be made to the General Assembly by January 8, 1997.
Video.
The Advisory Group viewed, made alterations to, and approved the video to be prepared for final production.
Written Materials.
The Advisory Group discussed changes to the written material for distribution with the video and the format of the materials. The group concluded that additional work is necessary in development of the materials. The group will continue discussion of the materials at the next meeting of the group.
Progress Report.
The Advisory Group requested that its chairperson develop a progress report to be distributed to the members of the Advisory Group prior to the next meeting for their comments. The members will discuss and approve a progress report at the next meeting.
Next Meeting.
The Advisory Group will hold its next meeting on Tuesday, January 7, 1997, with the location to be announced.

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