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Senate Journal: Monday, April 22, 2002

JOURNAL OF THE SENATE

__________

FIRST CALENDAR DAY
FIRST SESSION DAY
FIRST EXTRAORDINARY SESSION

Senate Chamber
Des Moines, Iowa, Monday, April 22, 2002

Pursuant to the proclamation of the Governor, the Honorable
Thomas J. Vilsack, convening the Seventy-ninth General Assembly in
Extraordinary Session, the Senate was called to order at 9:12 a.m. by
the Honorable Mary E. Kramer, President of the Senate.

Prayer was offered by the Honorable Patrick J. Deluhery, member
of the Senate from Scott County, Davenport, Iowa.

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by Senate Pages Angie Groh and
Micah Van Mersbergen.

COMMUNICATION FROM THE GOVERNOR

The following communication from the Governor was presented:

April 18, 2002

The Honorable Mary Kramer
President of the Senate
State Capitol
LOCAL

The Honorable Brent Siegrist
Speaker of the House
State Capitol
LOCAL

I hereby submit the Proclamation setting the Extraordinary Session of the Iowa
Legislature to convene at 9:00 a.m., April 22, 2002.

Sincerely,
THOMAS J. VILSACK
Governor

STATE OF IOWA
Executive Department

In The Name And By The Authority Of The State Of Iowa

P R O C L A M A T I O N

Whereas, the 2002 Regular Session of the Seventy-ninth General Assembly
adjourned pursuant to House Concurrent Resolution 124, and

Whereas, throughout the legislative session that adjourned last week, I repeatedly
called on lawmakers to pass a budget that adequately funded vital state services, and

Whereas, the budget lawmakers passed underfunds vital educational, child safety,
health care, and public security services, and

Whereas, Iowa has ample resources to adequately fund vital state services while
maintaining a balanced budget, and

Whereas, Iowa cannot afford to underfund these vital state services, since such a
step could jeopardize the security and welfare of Iowa families.

Now Therefore, I, Thomas J. Vilsack, Governor of the State of Iowa, in accordance
with Article IV, Section XI, of the Constitution of the State of Iowa, do hereby proclaim
that the Seventy-ninth General Assembly shall convene in extraordinary session in
Des Moines, Iowa, at 9:00 a.m. on the 22nd day of April, 2002, and to that end I do call
up and direct the members of the House of Representatives to convene in the House
chamber at the State Capitol and members of the Senate to convene in the Senate
chamber at the State Capitol at 9:00 a.m. on the 22nd day of April, 2002, for the
purpose which the assembly is convened, namely the matter of approving a fiscal year
2003 state budget that protects Iowans' priorities and matters properly related thereto.

IN TESTIMONY WHEREOF, I have hereunto
subscribed my name and caused the Great Seal of
(SEAL) the State of Iowa to be affixed. Done at Des Moines
this 18th day of April in the year of our Lord two
thousand two.

THOMAS J. VILSACK, Governor

Attest:

CHESTER J. CULVER
Secretary of State


ORGANIZATION OF THE SENATE

Senator Iverson moved that the selection of seats, determination of
mileage of senators, assignment of press seats, and all other
organizational or administrative matters not specifically provided for
in Joint Rule 3 be the same for this Extraordinary Session as for the
2002 Regular Session of the Seventy-ninth General Assembly.

The motion prevailed by a voice vote.

SECRETARY TO NOTIFY THE
GOVERNOR AND THE HOUSE

Senator Iverson moved that the Secretary of the Senate be directed
to send a written message to the Governor and the House of
Representatives informing them that the Senate was organized and
ready to transact business and receive any messages that they may
transmit.

The motion prevailed by a voice vote.

HOUSE MESSAGE RECEIVED

The following message was received from the Chief Clerk of the
House:

MADAM PRESIDENT: I am directed to inform your honorable body that the
House has, pursuant to the April 18, 2002, proclamation of the Governor, duly
organized for the 2002 Extraordinary Session of the Seventy-ninth General Assembly
and is ready to receive communications from the Senate.

The Senate stood at ease at 9:20 a.m. until the fall of the gavel for
the purpose of party caucuses.

The Senate resumed session at 12:10 p.m., President Kramer
presiding.

RECESS

On motion of Senator Iverson, the Senate recessed at 12:11 p.m.
until the completion of a meeting of the committee on Rules and
Administration.

APPENDIX

REPORT OF COMMITTEE MEETING

RULES AND ADMINISTRATION

Convened: Monday, 12:11 p.m.

Members Present: Iverson, Chair; Kramer, Vice Chair; Gronstal, Ranking Member;
Boettger, Dvorsky, Fink, Harper, Lord, McKean, and Rittmer.

Members Absent: Gaskill.

Committee Business: Passed resolution for adjournment.

Adjourned: 12:18 p.m.

COMMITTEE REPORT

RULES AND ADMINISTRATON

Final Bill Action: SENATE CONCURRENT RESOLUTION 120, a concurrent
resolution to provide for adjournment sine die.

Recommendation: APPROVED COMMITTEE BILL.

Final Vote: Ayes, 6: Iverson, Kramer, Boettger, Lord, McKean, and Rittmer. Nays, 4:
Gronstal, Dvorsky, Fink, and Harper. Absent or not voting, 1: Gaskill.

Fiscal Note: NOT REQUIRED UNDER JOINT RULE 17.

RECONVENED

The Senate reconvened at 12:19 p.m., President Kramer presiding.

INTRODUCTION OF RESOLUTION

Senate Concurrent Resolution 120, by committee on Rules and
Administration, a concurrent resolution to provide for adjournment
sine die.

Read first time and placed on calendar.


CONSIDERATION OF RESOLUTION
(Regular Calendar)

Senator Iverson asked and received unanimous consent to take up
for consideration Senate Concurrent Resolution 120.

Senate Concurrent Resolution 120

On motion of Senator Iverson, Senate Concurrent Resolution 120,
a concurrent resolution to provide for adjournment sine die, was
taken up for consideration.

Senator Boettger took the chair at 1:42 p.m.

President Kramer took the chair at 1:49 p.m.

(Action on Senate Concurrent Resolution 120 was deferred.)

HOUSE MESSAGES RECEIVED AND CONSIDERED

The following messages were received from the Chief Clerk of the
House:

MADAM PRESIDENT: I am directed to inform your honorable body that the
House has on April 22, 2002, adopted the following resolution in which the
concurrence of the Senate is asked:

House Concurrent Resolution 125, a concurrent resolution to
provide for adjournment sine die.

Read first time and attached to companion Senate
Concurrent Resolution 120.

ALSO: That the House is prepared to adjourn the 2002 Extraordinary Session of
the Seventy-ninth General Assembly pursuant to House Concurrent Resolution 125,
duly adopted.

LEAVES OF ABSENCE

Leaves of absence were granted as follows:

Senator Dearden, for the day, and Senators Hansen and McCoy, until they return,
on request of Senator Soukup.


BUSINESS PENDING

Senate Concurrent Resolution 120

The Senate resumed consideration of Senate Concurrent
Resolution 120.

Senator Iverson asked and received unanimous consent that
House Concurrent Resolution 125 be substituted for Senate
Concurrent Resolution 120.

House Concurrent Resolution 125

House Concurrent Resolution 125, a concurrent resolution to
provide for adjournment sine die, was taken up for consideration.

Senator Iverson moved the adoption of House Concurrent
Resolution 125.

A record roll call was requested.

On the question "Shall the resolution be adopted?" (H.C.R. 125) the
vote was:

Ayes, 29:
Angelo Behn Boettger Drake
Freeman Gaskill Greiner Houser
Iverson Jensen King Kramer
Lamberti Lord Lundby Maddox
McKean McKibben McKinley Miller
Redfern Redwine Rehberg Rittmer
Schuerer Sexton Tinsman Veenstra
Zieman

 


Nays, 18:
Black Bolkcom Connolly Deluhery
Dvorsky Fiegen Fink Flynn
Fraise Gronstal Hammond Harper
Holveck Horn Kibbie Ragan
Shearer Soukup

 


Absent or not voting, 3:
Dearden Hansen McCoy

 


The motion prevailed and the resolution was adopted.

WITHDRAWN

Senator Iverson asked and received unanimous consent that
Senate Concurrent Resolution 120 be withdrawn from further
consideration of the Senate.

IMMEDIATELY MESSAGED

Senator Iverson asked and received unanimous consent that
House Concurrent Resolution 125 be immediately messaged to
the House.

SECRETARY TO NOTIFY THE
GOVERNOR AND THE HOUSE

Senator Iverson moved that the Secretary of the Senate be directed
to send a written message to the Governor and the House of
Representatives informing them that the Senate was prepared to
adjourn sine die pursuant to House Concurrent Resolution 125.

The motion prevailed by a voice vote.

FINAL ADJOURNMENT

By virtue of House Concurrent Resolution 125, duly adopted, the
day of April 22, 2002, having arrived, President Kramer declared the
2002 Extraordinary Session of the Seventy-ninth General Assembly
adjourned sine die at 2:22 p.m.




SENATE BILLS APPROVED, ITEM VETOED,
AND VETOED SUBSEQUENT TO ADJOURNMENT

The following is a record of action by the Governor transmitted to
the Secretary of State after the close of the 2002 Regular Session:

SENATE BILLS APPROVED

S.F. 348 - Relating to the establishment of Iowa charter schools and providing for a
conditional effective date. Approved April 23.

S.F. 503 - Relating to open feedlots, by providing for standards of construction for
pollution control structures. Approved April 30.

S.F. 2034 - Relating to the filing of a criminal indictment or trial information
against a person who is not present in the state. Approved April 22.

S.F. 2057 - Relating to the designation of a Dr. Norman E. Borlaug World Food
Prize Day. Approved May 10.

S.F. 2118 - Prohibiting human cloning, and providing penalties. Approved April 26.

S.F. 2124 - Relating to the department of public defense by amending the state
military code and the Iowa code of military justice, creating a statewide mutual aid
compact, providing for the confidentiality of certain records, exempting the department
of public defense from certain state service contract requirements and state competitive
bidding requirements, exempting the Iowa technology center from anticompetition
provisions, increasing a standing appropriation, providing criminal penalties for
violations, and providing effective dates. Approved April 22.

S.F. 2168 - Authorizing the state board of regents to issue bonds to construct,
improve, remodel, repair, furnish, and equip inpatient and outpatient facilities and
patient care facilities at the university of Iowa hospitals and clinics. Approved May 8.

S.F. 2197 - Prohibiting a registered sex offender from residing near a school or child
care facility, and providing a penalty. Approved May 9.

S.F. 2205 - Relating to regulation of child care and child development homes and
child care centers and providing effective date and applicability provisions. Approved
May 2.

S.F. 2228 - Relating to utilization of school district moneys for physical plant and
equipment levy purposes. Approved April 22.

S.F. 2258 - Relating to the board of educational examiners' authority to determine
whether an applicant for licensure or certification or for renewal of a license is
qualified for the license sought. Approved April 26.


S.F. 2259 - Amending Code provisions administered by the department of
education, including provisions related to participation in extracurricular activities,
tuition reimbursement payment by school districts under the postsecondary enrollment
options Act, interscholastic activities agreements, school infrastructure program
calculations, phase I payment calculations, and the use of phase III balances by school
districts and area education agencies. Approved April 26.

S.F. 2268 - Relating to animals other than livestock, including the taking of such
animals, providing for their disposition, and providing for the reimbursement of
dispositional expenses, providing for the protection of animals from injury or torment,
and providing penalties. Approved April 26.

S.F. 2275 - Relating to statutory corrections which may adjust language to reflect
current practices, insert earlier omissions, delete redundancies and inaccuracies, delete
temporary language, resolve inconsistencies and conflicts, update ongoing provisions,
or remove ambiguities and including effective and retroactive applicability date
provisions. Approved April 22.

S.F. 2280 - Relating to the requirements of the department of human services for
certain child welfare services providers and providing an effective date. Approved
April 23.

S.F. 2286 - Relating to the civil commitment of sexually violent predators, and
providing an effective date. Approved April 30.

S.F. 2293 - Relating to animal agriculture, providing for fees, providing for
penalties, and including retroactive applicability and effective date provisions.
Approved April 29.

S.F. 2305 - Relating to the administration of the tax and related laws by the
department of revenue and finance, including administration of state individual
income, corporate income, sales and use, property, motor fuel, and special fuel.
Approved May 6.

S.F. 2316 - Relating to the sale of certain farmland by Iowa state university of
science and technology, providing for the appropriation and use of proceeds from the
sale, and providing an effective date. Approved May 2.

S.F. 2318 - Relating to the tax on premiums and subscriber contract payments
received by insurance companies and health service corporations by phasing in a
reduction in the tax and increasing the prepayment of the tax. Approved May 9.

S.F. 2320 - Relating to the assessment of court fees by the clerk of district court.
Approved April 23.

S.F. 2321 - Relating to sales and use taxes by requiring the department of revenue
and finance to collect data on the extent and the effect on taxes of electronic commerce
in the state, striking the repeal of the tax treatment of sales where the substance of the
transaction is delivered by electronic waves, digitally, or by way of cable or fiber optics,
and establishing a committee to enter into multistate discussions on the simplification
of the sales and use taxes and including an effective date. Approved May 10.


S.F. 2323 - Relating to the creation of a registered nurse recruitment program and
fund to be administered by the college student aid commission. Approved April 26.

S.F. 2325 - Relating to certain state agency regulatory functions by reorganizing the
duties of the department of inspections and appeals, transferring the court appointed
special advocate program to the department of inspections and appeals, renaming and
revising the duties of the state citizen foster care review board, reorganizing the
administrative structure of the department of natural resources, providing for
legislative review of state agencies, and revising requirements for licensed birth
centers. Approved May 10.

S.F. 2328 - Providing for the establishment of the state percent of growth for
purposes of the state school foundation program and providing an applicability date.
Approved May 9.

GOVERNOR'S ITEM VETO MESSAGES

May 10, 2002

The Honorable Chester Culver
Secretary of State
State Capitol
LOCAL

Dear Secretary Culver:

I hereby transmit Senate File 2317, an act relating to the tobacco master
settlement agreement, including tobacco product manufacturer compliance, making an
appropriation, and providing penalties. This legislation provides additional remedies
to aid in the enforcement of the Model Statute, Code 453C which was required to be
approved and enforced by the State in the Master Settlement Agreement with the
Tobacco Manufacturers.

Sections 1-8 of this bill would require compliance with chapter 453C before a
distributor could affix stamps to the product. Additionally, a registered agent would be
required for service of process of those out of state manufacturers selling in this state.
Iowa is required to "diligently enforce" chapter 453C and penalties for failure to are
monetary and substantial. The possibility exists that the entire amount owed to Iowa
for any particular year could be eliminated if the statute is not diligently enforced.

Section 9 is the balance owed the private counsel retained to represent Iowa in its
litigation against the Tobacco manufacturers. The original appropriation contained in
House File 755, section 25, of last year's appropriation was $944,877.60 short of the
obligation owed to the attorneys by contract. The shortage was created when estimates
paid by Tobacco manufacturers over the last three years did not meet actual obligation.
When the contractual obligation to the attorneys is concluded, the balance of the
payments will be assigned to the State.


In its present form there is some question as to whether Sections 1-8 would
jeopardize Iowa having a qualified model statute within the meaning of the Master
Settlement Agreement. That in itself would result in substantial monetary penalties
for the State.

Senate File 2317 is, therefore, signed on this date with the following exceptions,
which I hereby disapprove.

I am unable to approve Sections 1-8 given the potential to put Iowa in
noncompliance with the Master Settlement Agreement. I look forward to working with
lawmakers to approve legislation that would ensure compliance with the Master
Settlement Agreement and not jeopardize these funds.

For the above reasons, I respectfully disapprove these items in accordance with
Amendment IV of the Amendments of 1968 to the Constitution of the State of Iowa.
All other items in Senate File 2317 are hereby approved as of this date.

Sincerely,
THOMAS J. VILSACK
Governor

May 10, 2002

The Honorable Chester Culver
Secretary of State
State Capitol
LOCAL

Dear Secretary Culver:

I hereby transmit Senate File 2326, an Act making, reducing, and transferring
appropriations, and providing for other properly related matters and including effective
dates.

Since the Legislature approved this bill, there has been a dramatic change in the
State’s revenue projections. Most states and the federal government experienced a
large reduction in final pay income tax returns and a correspondingly large increase in
taxpayers due refunds. Because of this change in circumstance, I asked the State’s
Revenue Estimating Conference (REC) to meet to review their official revenue estimate
for both fiscal years 2002 and 2003.

On May 7, the REC met and decreased general fund resources available to the
State by $205.5 million in fiscal year 2002 and $220.1 million in fiscal year 2003. By
law, both the governor and the legislature must rely on the REC estimate in preparing
and approving the state budget.

While I am concerned about many details within this bill, there is a larger, more
fundamental concern that prevents me from approving the majority of this bill. Due to
recent action by the REC in lowering revenue projections, signing this bill would enact
a general fund budget for fiscal year 2003 that results in a general fund deficit of more
than $200 million and would be an irresponsible action. I cannot and will not do so.


At the same time, we cannot go back on our commitment to our children and
families. Education at all levels is the number one priority in Iowa. To build on
progress in student achievement, reduced class sizes, and job and wealth creation, we
must have an educated workforce, and we must use our colleges and universities as an
engine for economic growth. Even as we work to cut budgets, we must do all we can to
preserve our commitment to education and maintain the educational opportunities for
our children.

To help ensure this educational commitment, I am approving Division IV, Sections
76 through 86, the education portion of Senate File 2326 with the noted exceptions.
While it falls short of my original goals for funding, given our current fiscal realities, it
is likely the best investment we can make at this time. We will continue to work for
additional resources in education through achieving savings and efficiencies in
government. In the end, however, we must look to our educated workforce and our
colleges and universities to be a catalyst for economic growth in our state. In the long
run, education is the key to Iowa’s economic prosperity.

In order for our children to have the best opportunities available to them, they
must also have adequate access to health care. Iowa has the distinction of being the
top performing state in the nation according to The Social Health of the States,
conducted by the Fordham Institute for Innovation in Social Policy. In an effort to
continue the progress we have made in ensuring every child receives the medical
attention they need I am approving Sections 106, which provides funding for the
Healthy and Well Kids in Iowa (hawk-i) program. In a nation as wealthy as ours, no
child should be left out.

Senate File 2326 is, therefore, signed on this date with the following exceptions,
which I hereby disapprove.

I am unable to approve Division I, Sections 1 through 33; Division II, Sections 34
through 45; Division III, Sections 46 through 75; Division V, Sections 87 through 98;
Division VI, Sections 99 through 105 and Sections 107 through 140; Division VII,
Sections 141 through 162; Division VIII, Sections 163 through 167. This action is
necessary as a result of the REC’s lowering the revenue estimates. I intend to work
with lawmakers in a special session this month to take responsible action to reduce
spending, reallocate existing resources, and balance this budget.

I am unable to approve Section 79, subsection 15, paragraph 2. This paragraph
states that it is the intent of the general assembly to cease providing assistance for the
Jobs for America’s Graduates (JAG) program on June 30, 2003. This is a valuable
program that provides direct services to the most at-risk juniors and seniors in local
school districts through direct intervention. These students are worked with
intensively to ensure that they graduate and are successful in obtaining a job or
enrolling in postsecondary training. It is our duty to provide the tools to enable all
students to succeed.

I am unable to approve Section 79, subsection 16, paragraph 2. This paragraph
states that it is the intent of the general assembly to cease providing assistance for the
Americorps After-School Initiative on June 30, 2003. Americorps is an after school
program aimed at middle school students located in schools with high rates of juvenile
crime, violence and drug abuse. This is an important tool in linking people across Iowa
willing to volunteer to improve a child’s life.

For the above reasons, I respectfully disapprove these items in accordance with
Amendment IV of the Amendments of 1968 to the Constitution of the State of Iowa.
All other items in Senate File 2326 are hereby approved as of this date.

Sincerely,
THOMAS J. VILSACK
Governor

GOVERNOR'S VETO MESSAGE

May 9, 2002

The Honorable Chester Culver
Secretary of State
State Capitol Building
L O C A L

Dear Mr. Secretary:

I hereby transmit Senate File 2190, an Act concerning workers’ compensation,
which among other things, would reduce workers’ compensation payments made to
injured employees by expanding the ability of employers to apportion compensation
payments made to employees who suffer more than one work-related injury, or a single
injury that follows a preexisting functional condition.

The workers’ compensation statute has historically struck a carefully crafted
balance between the interests of employers and employees in the state of Iowa.
Legislators originally enacted the statute to create a consistent and fair compensation
schedule for workers who suffered injuries during the course of their employment. Like
the acts of most other states, the Iowa workers’ compensation statute guaranteed
prompt, yet limited, compensation for employee work-related injuries. Legislators also
crafted the original statute to promote industrial and workplace safety, and reduce the
likelihood that injured workers and their dependants would be forced to seek public
assistance. In exchange for this well-defined and structured system, employees gave up
all rights to seek full and fair compensation for their work-related injuries in a court of
law. Thus, the Iowa workers’ compensation statute became the exclusive remedy for
all work-related injuries, regardless of the circumstance.

Senate File 2190 destroys the effective balance between the interests of employers
and the well-being of injured workers by expanding an employer’s ability to apportion
workers’ compensation payments due and owing when the employer received a prior
payment for a prior injury. In essence, Senate File 2190 would allow an employer to
receive a ‘credit’ for any pre-existing condition that affected the employability of a
worker, whenever a subsequent workplace injury increased the industrial disability of
the worker, regardless of the nature of the subsequent injury, or its relationship to the
prior one. Senate File 2190 would also allow an employer to apportion a work-related
injury, even where a prior injury or disease would not cause an ascertainable portion of
the work-related injury, and wouldn’t independently produce some degree of disability
before the subsequent injury. This change would be clearly divergent from the common
law of tortious liability, and it would contravene the initial intent of the worker’s
compensation statute.


Under Senate File 2190, a worker who has suffered a partial disability of 35
percent for a damaged shoulder tendon, can only recover a workers’ compensation
payment of 15 percent, for a subsequent and unrelated back injury, sustained on the
job, which results in an additional 50 percent loss to the worker’s earning capacity. As
such, this worker, whose working capacity has fallen from 100% to 15%, would see his
or her compensation payment reduced under Senate File 2190 from 85% to 50%. This
result would be unjust and untenable. Not only would it lead to an unconscionable
windfall for employers, at the expense of working Iowans, but it would also jeopardize
the safety of workers by removing a powerful incentive for Iowa companies to maintain
safe working environments.

Workers’ compensation is widely regarded as an important tool to ensure that
employers update working environments and minimize any hazardous working
conditions that may jeopardize the health and safety of their workforce. Workers’
compensation also constitutes the first line of defense against economic catastrophe,
whenever a wage earner sustains a substantial work-related injury. Senate File 2190
would impose undue hardships on injured workers and their dependants by shifting
the fiscal responsibility for support following a work-related injury from the employer
to the injured employee. Senate File 2190 may also have the unintended consequence
of increasing the tax burden placed on Iowa taxpayers, who fund public assistance
programs that support injured and/or displaced workers with reduced earning
capacities.

The state of Iowa must protect its workers. Protection cannot be provided without
ensuring that workers who suffer a substantial work-related injury have access to a
balanced and consistent compensation schedule. Senate File 2190 would create a
plainly inequitable compensation schedule by expanding apportionment limitations in
a manner that would substantially reduce compensation payments made to employees
who suffer more than one work-related injury, or a single injury that follows a
preexisting functional condition. This bill would shift an unjust portion of the burden of
diminished employability away from employers, and place it squarely on the shoulders
of injured workers.

For this reason, I hereby respectfully disapprove Senate File 2190.

Sincerely,
THOMAS J. VILSACK
Governor


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