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SECOND CALENDAR DAY SECOND SESSION DAY Senate Chamber Des Moines, Iowa, Tuesday, January 12, 1999 The Senate met in regular session at 9:03 a.m., President Kramer presiding. Prayer was offered by the Reverend Glen Cappleman, pastor of the First Lutheran Church, Dows, Iowa. The journal of January 11, 1999, was approved. INTRODUCTION OF BILLS Senate File 6, by Kibbie, a bill for an act relating to tax exemptions for livestock-related pollution-control or recycling property. Read first time and referred to the committee on Ways and Means. Senate File 7, by Miller, a bill for an act requiring contracts for the construction or maintenance of highways to include certain provisions for the restoration of area in which fill dirt or other materials are to be removed. Read first time and referred to committee on Transportation. LEAVE OF ABSENCE Leave of absence was granted as follows: Senator Schuerer for the morning, on request of Senator Hedge. The Senate stood at ease at 9:07 a.m. until the fall of the gavel. The Senate resumed session at 9:36 a.m., President Kramer presiding. LEAVE OF ABSENCE Leave of absence was granted as follows: Senator Redfern for the morning, on request of Senator Hedge. COMMITTEE FROM THE HOUSE A committee from the House appeared and announced that the House was ready to receive the Senate in joint convention. JOINT CONVENTION In accordance with law and House Concurrent Resolution 1, duly adopted, the joint convention was called to order at 9:38 a.m., President Kramer presiding. Senator Iverson moved to dispense with the roll call and to authorize the President of the joint convention to declare a quorum present, which motion prevailed by a voice vote. President Kramer declared a quorum present and the joint convention duly organized. Senator Iverson moved that a committee of six, consisting of three members from the Senate and three members from the House, be appointed to notify Governor Branstad that the joint convention was ready to receive him. The motion prevailed by a voice vote and the Chair announced the appointment of Senators Behn, Boettger, and Black on the part of the Senate, and Representatives Raecker, Blodgett, and Richardson on the part of the House. The following guests were escorted into the House Chamber: Chief Justice McGiverin and the Justices of the Supreme Court; the Judges of the Court of Appeals; Secretary of State, Chet Culver; Treasurer of State, Michael Fitzgerald; Secretary of Agriculture, Patty Judge; and Auditor of State, Richard Johnson. Mrs. Chris Branstad, wife of the Governor, and their sons, Eric and Marcus. Lieutenant Governor Joy Corning. Governor-elect Tom Vilsack and Lieutenant Governor-elect Sally Pederson. The committee waited upon Governor Branstad and escorted him to the Speaker's station. President Kramer presented Governor Branstad, who delivered the following Condition of the State and Budget Address: President Kramer, Speaker Corbett, Lieutenant Governor Corning, Governor-Elect Vilsack, Lieutenant Governor-Elect Pederson, Chief Justice McGiverin, Justices and Judges, State Officials, Senators and Representatives, Distinguished Guests, and Friends. On this, my last State of the State Address, pardon me if I get just a little bit nostalgic. I vividly recall, back in 1982, when then Governor Ray was being touted for his 14 years of outstanding service. My friend, Senator Chuck Grassley, in his own unique style, rose before the assembled throng and pronounced that Governor Ray was "the longest Governor in the history of Iowa." Well, I've never been accused of being the "longest" Governor in Iowa; the shortest, maybe; but never the longest. These past 16 years have been the best years of my life. Challenging, yes; stressful, at times; demanding, always. But I was and remain invigorated each and every day by my love for this state and its people. To all of you who have put up with my mustache, my less than silver tongue, and my Iowa earnestness over all these years, I say thank you. Thank you for giving this farm boy from Winnebago County a chance to be your Governor. I will never forget the honor you gave me when I led you well, nor the tender mercies you showed when I struggled with you to find a better way. To the members of the General Assembly past and present, to Lieutenant Governor Corning, my partner of the last eight years, and our State officials, and all those Iowans who dared to dream with me of better things to come, I say thank you. You've built a better Iowa for all of us. It's been a great run. ? ? (np) ? In January 1983, the unemployment rate was 8.9 percent and 126,000 Iowans were out of work. Today, our unemployment rate is 2.5 percent and more Iowans are working than ever before. ? Sixteen years ago, our budget was not balanced and taxes had to be raised. In 1999, we have a record budget surplus, and taxes have been cut four years in a row, and should be cut again this year. ? In 1983, we were in the midst of a farm crisis where we literally lost a generation of Iowans. As we approach the 21st century, we can be proud that Iowa is growing again, and a majority of our counties are gaining population. I can go on: ? The unemployment trust fund -- from a $63 million deficit to a surplus of over $750 million; ? Manufacturing jobs, up almost 24 percent, despite a decline nationally, with payroll jobs up 40 percent; ? Per capita income, up 115 percent; ? Housing values, 147 percent higher in the last ten years; ? Factory exports, up 234 percent and business failures, down 80 percent in the last decade. We now manage under generally accepted accounting principles, with adequate reserve accounts, and with spending under control. State government now operates as a single enterprise with a common goal, not as a multitude of independent agencies. I could go on and on. Indeed, 1998 proved that our economic diversification strategy worked. Despite record low pork prices and other farm commodity prices in the pits, our economy continued to grow. How did we do this? We focused on the fundamentals. We made the state more competitive by cutting taxes and regulations. We put training and incentive packages together for quality jobs. We invested in education at all levels to build a strong work force. We trained and energized a new generation of community leaders committed to economic development. We built commercial highway and telecommunications networks to link and to provide better access to all parts of our state. And we marketed and promoted Iowa like never before. As we close the books on 1998, I am pleased to report that the state of our state is strong and sound. Iowa was recently recognized as the best state in America to raise a child. Iowa is, indeed, in good shape. But enough of the past. What about the future? What's in store for Iowa as we embark on a new century and a new millenium? Someone once said that the definition of a statesman is a former politician. Well, as a soon to be statesman, let me visit with you for a minute with some straight talk about change and the future of Iowa. You see, Iowa needs to change -- in three major ways -- if we are to reach our potential as a people. Now, I know that we Iowans don't like change. I'm living testimony to that. If things work, we generally don't tinker with them. Lord knows, with all the change in the weather, we don't need more change to deal with in our lives. That attitude has a certain appeal to it. We continue to be a place where you know your neighbor, where they know when you're sick, and they care when you die. Family, friends, community -- those constants of Iowa life give us a grounding that is unique in America today. But that doesn't mean we can escape change. Too often, we Iowans idolize the past -- reflecting on the loamy smell of newly tilled ground in the spring; the ringing of the dinner bell calling us from the hay barn; or a full harvest moon over a soon-to-be picked field of corn -- and we wonder why life can't always be filled with the sights, sounds, and smells of the way life used to be. But, in reality, our state almost from its inception, has been trying to resist the inexorable march of economic change. A change that has displaced people with machines on our farms and sent some of our best and brightest packing for the bright lights of the cities. Now that we have stabilized this state, now that we are in good shape again, it is time to stop resisting change once and for all. It is time for Iowa to truly grow once again. That is the first and most important challenge facing us. How do we do that? Historically, we have acceded to change only during times of catharsis -- our economic diversification program became a reality only once we hit a wall called the farm crisis. Our challenge today is to make changes in the good times so that Iowa can grow into even better times. We need to open our arms and communities to 21st century immigrants who will make our state economically stronger and more culturally diverse. We must convince our own children and those from other states that they can make a great living and live a great life in Iowa. We will not convince them with memories of a pastoral past. You can't feed your family on memories. We will convince them only by creating a climate of growth and unlimited opportunity for all. Therefore, I suggest that Iowans engage in a great conversation; a great conversation on growth over the next few years. In every community, barriers to growth, whether they be statutory, regulatory, cultural, or economic, should be identified and broken down. An era of responsible risk taking must be ushered in. A new era of entrepreneurship must be fostered. Successful risk-takers should be touted, not flouted. We must make it OK to stand out above the crowd in Iowa. We need to nurture the next generation of Ruans and McLeods, John K. Hansons and Dwight Vredenburgs. And then double and triple their number. That does not mean we have to depopulate rural Iowa while we build up only our cities, as some would say. Our capacity for growth is not based on location -- technology shortens all distances. We don't need to create a greater disparity of wealth to create a better climate for wealth-creation. We can have growth everywhere in this state. But it also means we must find ways to further process our own goods here in Iowa. We must give our producers and workers greater access to sources of capital and more options in the marketplace so they, too, can help Iowa grow. We must encourage and help our cities to grow, too, so that they reach a critical mass of economic and cultural opportunities. We will have to think outside the box to do this. It won't be easy. We won't be able to do things the way they have always been done. But like it or not, the only thing certain about the future is the certainty of change. We must either embrace it and make this good state a growth state, or face a future that is but a mere reflection of the past. Let the great conversation on growth begin. Our second challenge for change is in education. No state has a deeper education heritage; no state has shown a more sustained commitment to its young. But there is too much complacency. We are among the best, but not as good as we could be, and our educational establishment is too resistant to change. The problems our schools face have never been greater. New stresses on families, the drug culture, new immigrants, and rapidly changing technologies and workplace skills all weigh heavily on our schools. But no challenge is greater than the imminent loss of a whole generation of our best teachers. We all know you can have a class size of one, have a bad teacher, and get a horrible education. We all know that one outstanding teacher can make a difference in our life for the rest of our lives. Then why don't we pay the good teachers what they are worth -- every bit as much as a good doctor or lawyer or successful business person? Iowa should lead the nation in rejecting the seniority mentality in education and pay good teachers more, and pay great teachers more yet. We also must recreate our schools. Why do we have only 180 days of school, when our international competitors have as many as 240? Why do we halt the education of our youngsters for three months every year, when they need it the most? Iowa will never have mountains or oceans; our weather will always be fickle. But our schools are our creatures, subject to our control. Our constitution recognizes our unique commitment to the common school as the ticket to opportunity for our citizens. Finally, our challenge to change must address our tax structure. Our current system is as archaic as it is complicated. Our property and income taxes are too high and almost indecipherable. Our income tax structure tells prospective business executives that their taxes will be about double what they really are. Yet, even after two income tax cuts, our rates still place us among the top 10 in the country. Our property tax system looks like something devised by Rube Goldberg, layered with bygone eras of property tax fixes and hidden opportunities for tax increases. Taxes can and should be cut. You can and should do that, and invest in education, too. But taxes must also be reformed. Reformed by making it harder to raise taxes and easier to understand for our citizens. Your challenge for the future is to reform the system, reduce the burden, and make it a tool of growth. Americans are unique. We are the only people on this earth who always focus on the future and expect better things. Others yearn for the past. Our immigrant ancestors taught us that the past is but history and better days are ours for the making. There are better days ahead for Iowa. They are ours for the making. We are poised as never before for an era of growth and opportunity. We can be a place that more and more people want to call home. But it won't happen without change. A new commitment to growth, a renewed commitment to education and a reformed tax structure are all within your grasp. Seize them and make Iowa a better place for generations to come. With that it is time for me to move on. I've had my time. I've done what I could. It is your turn now. Before I go, I'd like to thank my wife and my family. They know, all too well, the sacrifices involved in public service. It is time for me to serve them now. We Iowans are a fortunate people. We have good, clean, honest, open government. We are still a place where you can respect your government and its leaders. It is that abiding trust that will allow you, the assembled members of this Legislature, to do great things. I have tried to conduct myself with similar openness and honesty. I have truly worked to earn your trust. When it is all said and done, I hope people will say this about my governorship: He worked hard; He did his best; And he prepared us for even better days ahead. Fellow Iowans, thank you, and God bless you all. Senator Iverson asked and received unanimous consent to take up the following resolution: SEVENTY-EIGHTH GENERAL ASSEMBLY EXTRAORDINARY RESOLUTION 1 By: Senate members Angelo, Bartz, Behn, Black, Boettger, Bolkcom, Connolly, Dearden, Deluhery, Drake, Dvorsky, Fink, Flynn, Fraise, Freeman, Gaskill, Gronstal, Hammond, Hansen, Harper, Hedge, Horn, Iverson, Jensen, Johnson, Kibbie, King, Kramer, Lamberti, Lundby, Maddox, McCoy, McKean, McKibben, McLaren, Miller, Redfern, Redwine, Rehberg, Rife, Rittmer, Schuerer, Sexton, Shearer, Soukup, Szymoniak, Tinsman, Veenstra, Zieman; and House members Alons, Arnold, Barry, Baudler, Bell, Blodgett, Boal, Boddicker, Boggess, Bradley, Brauns, Brunkhorst, Bukta, Burnett, Carroll, Cataldo, Chapman, Chiodo, Cohoon, Connors, Corbett, Cormack, Davis, Dix, Doderer, Dolecheck, Dotzler, Drake, Drees, Eddie, Falck, Fallon, Foege, Ford, Frevert, Garman, Gipp, Greiner, Grundberg, Hahn, Hansen, Heaton, Hoffman, Holmes, Holveck, Horbach, Houser, Huseman, Huser, Jacobs, Jager, Jenkins, Jochum, Johnson, Kettering, Klemme, Kreiman, Kuhn, Larkin, Larson, Lord, Martin, Mascher, May, Mertz, Metcalf, Millage, Mundie, Murphy, Myers, Nelson, O'Brien, Osterhaus, Parmenter, Raecker, Rants, Rayhons, Reynolds, Richardson, Scherrman, Schrader, Shoultz, Siegrist, Stevens, Sukup, Sunderbruch, Taylor, Teig, Thomas, Thomson, Tyrrell, Van Engelenhoven, Van Fossen, Warnstadt, Weidman, Weigel, Welter, Whitead, Wise, and Witt WHEREAS, Terry E. Branstad today addressed the Seventy-eighth General Assembly of the State of Iowa and in so doing, delivered, in addition to his Inaugural Address in 1983, his sixteenth and last Condition of the State message to the Iowa General Assembly as Governor of the State of Iowa, and WHEREAS, this Joint Convention of 50 Senators and 100 Representatives therefore is honored to represent the hundreds of men and women who served in the eight General Assemblies during Terry E. Branstad's sixteen-year tenure as governor, and WHEREAS, beginning today the state's historians and others will record and evaluate the ways in which Terry E. Branstad's dedicated public service has enriched the history of Iowa state government, and the ways in which his service has touched the lives of all Iowans; NOW THEREFORE, BE IT RESOLVED BY THE SEVENTY-EIGHTH GENERAL ASSEMBLY IN JOINT CONVENTION, that the Joint Convention remark for posterity upon Governor Terry E. Branstad's relationship, as head of the executive branch of state government, to the legislative branch of state government, To Wit: Terry E. Branstad's four-term tenure as Governor has been marked by a constructive separation of powers during which the Governor's policy objectives have been effectively communicated to the General Assembly, and the General Assembly has freely exercised its constitutionally mandated independence in making public policy through its lawmaking function. The results of this relationship will be recalled by others in more detail than can be expressed in this resolution, but for members of the General Assembly whose service parallels Governor Branstad's service, the following general contributions will serve as reminders of hundreds of policy changes fashioned during Governor Branstad's tenure in office from 1983 until today: 1. ECONOMIC DEVELOPMENT. Significant economic development initiatives relating to workforce development, workplace safety, unemployment compensation reform, agricultural and business development and diversification, insurance industry growth, tort reform, and business taxation. 2. EDUCATION. Far-reaching early education, kindergarten through grade 12, and higher education funding initiatives and innovation, including teacher and higher education pay and tuition tax credits. 3. HUMAN SERVICES. Noteworthy public policy reforms relating to welfare reform, child support, and health care coverages for children. 4. CRIMINAL JUSTICE. Substantial public safety reforms relating to the prosecution and incarceration of serious criminal offenders, especially violent, drug, sex, domestic abuse, and drunk driving offenders. 5. TAXATION. Significant taxation reform relating to income, sales, property, personal property, and inheritance taxation. 6. 7. (np) 8. ENVIRONMENT. Important environmental protection measures relating to groudwater protection, resource enhancement and protection, underground storage tank and brownfields cleanup, and environmental audits. 9. GOVERNMENT REFORM. Major reforms and initiatives in state government reorganization, balanced budget financing, ethics in state and local government, state control over the gambling industry, state and local government reorganization relating to court system and mental health services funding, and state capitol complex restoration. In addition to his many contributions in these areas of public policy, Governor Branstad should also be especially commended for his leadership during the great flood of 1993 in which he showed surpassing statesmanship and compassion in dealing with one of the great natural disasters to befall the State of Iowa in the latter half of the century; and BE IT FURTHER RESOLVED BY THE SEVENTY-EIGHTH GENERAL ASSEMBLY IN JOINT CONVENTION, That Governor Branstad be recognized for the national leadership he assumed as Governor of the State of Iowa, including chair of the Midwestern Governors' Conference in 1986-1987, Chairman of the National Governors' Association in 1989-1990, Chair of the Republican Governors' Association in 1996- 1997, President of the Council of State Governments in 1991, and Chairman of the Education Commission of the States in 1997-1998, and that he be congratulated as the senior Governor in the United States at the time of his retirement; and BE IT FURTHER RESOLVED BY THE SEVENTY-EIGHTH GENERAL ASSEMBLY IN JOINT CONVENTION, That we hereby admonish writers, historians, and journalists, young and old, to compose their portrayals and analyses of the Terry E. Branstad years with wisdom, thoroughness, and compassion; and BE IT FURTHER RESOLVED BY THE SEVENTY-EIGHTH GENERAL ASSEMBLY IN JOINT CONVENTION, That the Joint Convention honor Governor Terry E. Branstad as the longest serving Governor of the State of Iowa and pay tribute to him for his devoted service to the State of Iowa and the citizens of this State; and BE IT FURTHER RESOLVED BY THE SEVENTY-EIGHTH GENERAL ASSEMBLY IN JOINT CONVENTION, That a copy of this resolution be forwarded to Governor Terry E. Branstad, and to First Lady Christine Branstad, where it is hoped it will be received as a symbol of appreciation, good wishes, and affection extended by the Seventy-eighth General Assembly and the people of Iowa to the Governor, First Lady, and their family. Senator Iverson moved the adoption of the resolution, which motion prevailed by a voice vote and the resolution was adopted. Governor Branstad was escorted from the House Chamber by the committee previously appointed. On the motion of Representative Siegrist, the joint convention was dissolved. The Senate returned to the Senate Chamber and resumed regular session, Senator Hedge presiding. RECESS On motion of Senator Boettger, the Senate recessed at 11:02 a.m., until 2:30 p.m. AFTERNOON SESSION The Senate reconvened at 2:44 p.m., President Kramer presiding. INTRODUCTION OF BILLS Senate File 8, by Jensen, a bill for an act relating to coverage under a policy or contract providing for third-party payment for prepayment of health or medical expenses by providing coverage for costs associated with equipment, supplies, and education for the treatment of diabetes. Read first time and referred to committee on Commerce. Senate File 9, by McKibben and Black, a bill for an act relating to the exemption of the sales and use tax on building materials, supplies, or equipment of certain rural water districts, and providing retroactive applicability and effective dates. Read first time and referred to committee on Ways and Means. APPENDIX REPORTS OF COMMITTEE MEETINGS ETHICS Convened: Tuesday, January 12, 1999, 2:10 p.m. Members Present: Hedge, Chair; Drake, Vice Chair; Szymoniak, Ranking Member; Connolly, Hammond, and McKean. Members Absent: None. Committee Business: Organizational meeting. Information regarding the House and Senate Rules of Ethics and Rules Governing Lobbyists was distributed to members. Adjourned: 2:18 p.m. HUMAN RESOURCES Convened: Tuesday, January 12, 1999, 1:33 p.m. Members Present: Boettger, Chair; Redwine, Vice Chair; Szymoniak, Ranking Member; Bartz, Behn, Hammond, Harper, Miller, Shearer, Tinsman, and Veenstra. Members Absent: Horn and Schuerer (both excused). Committee Business: Introductions and adoption of committee rules. Adjourned: 2:03 p.m. NATURAL RESOURCES AND ENVIRONMENT Convened: Tuesday, January 12, 1999, 1:04 p.m. Members Present: Bartz, Chair; King, Vice Chair; Fink, Ranking Member; Black, Bolkcom, Dearden, Deluhery, Drake, Freeman, Gaskill, Kibbie, McKean, Miller, Rehberg, and Rife. Members Absent: None. Committee Business: Passed SSB 1002, as amended. Adopted rules. Adjourned: 1:31 p.m. SMALL BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM Convened: Tuesday, January 12, 1999, 1:05 p.m. Members Present: Lundby, Chair; Behn, Vice Chair; Shearer, Ranking Member; Boettger, Dvorsky, Flynn, Hansen, Rittmer, Sexton, Soukup, Tinsman, Veenstra, and Zieman. Members Absent: None. Committee Business: Introductions and discussion of possible issues the committee will address. Adjourned: 1:20 p.m. TRANSPORTATION Convened: Tuesday, January 12, 1999, 1:33 p.m. Members Present: Drake, Chair; Sexton, Vice Chair; McCoy, Ranking Member; Black, Fink, Fraise, Freeman, Jensen, Johnson, Kibbie, Rittmer, and Zieman. Members Absent: McKibben (excused). Committee Business: Organizational meeting. Adjourned: 1:55 p.m. PETITION The following petition was presented and placed on file by: Senator Jensen, from residents of Bremer, Butler, and various counties favoring legislation to increase Title 19 reimbursement to non-profit nursing homes. STUDY BILLS RECEIVED SSB 1001 Ways and Means Relating to the taxation of certain sales of aircraft under the state sales, services, and use taxes and the local option sales and services taxes. SSB 1002 Natural Resources and Environment To strike the maximum number of deer and wild turkey hunting licenses issued to nonresidents, to remove certain allocations of nonresident licenses, and providing an effective date. SSB 1003 Agriculture A Senate Concurrent Resolution urging all state institutions and political subdivisions providing food service to support independent swine producers and the pork industry by making available and serving more pork products. SSB 1004 Local Government Relating to the duties and meetings of the county agricultural extension councils. SSB 1005 Local Government Relating to special assessments collected by the county treasurer and to the date of the annual sale of parcels with delinquent property taxes. SUBCOMMITTEE ASSIGNMENTS Senate File 1 NATURAL RESOURCES AND ENVIRONMENT: King, Chair; Bolkcom and Drake SSB 1001 WAYS AND MEANS: Lamberti, Chair; Johnson and Soukup SSB 1002 NATURAL RESOURCES AND ENVIRONMENT: Bartz, Chair; Dearden and Freeman SSB 1003 AGRICULTURE: Behn, Chair; Miller and Soukup SSB 1004 LOCAL GOVERNMENT: Bolkcom, Chair; Gaskill and McKibben SSB 1005 LOCAL GOVERNMENT: Miller, Chair; Zieman and Fraise ADJOURNMENT On motion of Senator Iverson, the Senate adjourned at 2:46 p.m., until 9:00 a.m., Wednesday, January 13, 1999. 54 JOURNAL OF THE SENATE 2nd Day 2nd Day TUESDAY, JANUARY 12, 1999 55
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