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[Dome]Interim Calendar and Briefing

August 21, 1996

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

Calendar of Scheduled Meetings

Wednesday, August 28, 1996
Fiscal Committee of the Legislative Council
  • 9:00 a.m., Tour of Independence State Mental Health Institute; Independence, Iowa
  • 1:15 p.m., Tour of Schaeffer Hall, University of Iowa; Iowa City, Iowa
  • 3:30 p.m., Tentative, Optional Tour of Oakdale Correctional Facility; Oakdale, Iowa
Tuesday, September 10, 1996
Administrative Rules Review Committee
10:00 a.m., Room 22
Wednesday, September 11, 1996
Administrative Rules Review Committee
9:00 a.m., Room 22
Wednesday, September 18, 1996
Fiscal Committee of the Legislative Council - TENTATIVE
Time to be Announced, Ames, Iowa; ISU

Agenda Information Regarding Scheduled Meetings

Fiscal Committee of the Legislative Council

Co-chairperson: Senator Larry Murphy
Co-chairperson: Representative David Millage

Administrative Rules Review Committee

Co-chairperson: Senator Berl E. Priebe
Co-chairperson: Representative Janet Metcalf

Fiscal Committee of the Legislative Council

Co-chairperson: Senator Larry Murphy
Co-chairperson: Representative David Millage

BRIEFINGS - Information Regarding Recent Meetings

PROSPECTIVE MINOR PARENTS PROGRAM ADVISORY COMMITTEE

August 6, 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.
Actions.
The agenda included presentations from representatives of service providers relative to the three options faced by pregnant minors: continuing the pregnancy to term and retaining parental rights, continuing the pregnancy to term and placing the child for adoption, and terminating the pregnancy through abortion. The agenda also included a presentation regarding the progress of the Judicial Department in developing judicial procedures for implementation of SF 13 and a discussion of confidentiality requirements relating to the video.
Future Meetings.
The Committee scheduled the next meeting for September 6 and 7, 1996. The agenda for the meeting includes a review by all of the members of the applications by vendors for the production of the video, the selection by the voting members of a vendor, notification of the vendor on September 6, and a meeting with the vendor on September 7, 1996.
The Committee also scheduled a meeting for Thursday, September 19, 1996, at the Learning Resource Center to continue discussion of the philosophy and content of the video.

GOVERNOR'S ECONOMIC COMPETITIVENESS TASK FORCE - TAX SUBGROUP

August 7, 1996

Overview.
The Governor's Task Force had two subgroups, tax and regulatory. The regulatory completed its work in 1995. This was the first progress meeting of the tax subgroup following commencement of its state tax analysis and literature search. Four other meetings are tentatively scheduled as follows:
Purpose.
Mr. Don Decker, acting as chairperson for the Task Force, stated that the mandate of the Task Force is to study current economic trends with a view to helping Iowa position itself for further economic growth. He further stated that any plan developed by the Task Force should be both helpful to existing businesses in Iowa and supportive of recruitment efforts by the State. It should also attempt to create growth conditions not only for businesses of all sizes but for both the rural and urban sectors of Iowa society.
Consultant Reports.
Presentations on the progress of the research on state competition and literature search was made by representatives of the accounting firms of Arthur Andersen LLP and McGladrey and Pullen LLP. The literature review included titles of recently-conducted Iowa studies on economic development and trade journal articles on economic development and competition among the states. The firms also researched the tax systems of eight states and compared them to Iowa's system. The purpose of the research and literature search is to provide the Task Force with a representative survey of the latest research in the fields of tax structure and economic development.
8-State Business Surveys.
A representative of Arthur Andersen LLP reviewed the contents of the economic development and tax policy telephone survey prepared by the firm at the request of the Task Force. Business that have recently opened a new facility, undergone a major expansion, or relocated will be requested to respond to the telephone survey.
List of States.
The eight states chosen as comparison states by the Task Force are the eight states that were used in the 1992 Battelle study, "Identification of Key Technologies and Industries for the State of Iowa", which is available through the Iowa Department of Economic Development. Those eight states are Illinois, Indiana, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.

ETHICS AND CAMPAIGN DISCLOSURE BOARD (ECDB)

August 8, 1996

Electronic Reporting.
The final test version of the software for electronic reporting of campaign finance information will be ready soon, with the new system to be in effect in October. ECDB is also concentrating on aspects of the software that will protect the integrity of the system and its data from outside intrusion and computer viruses.
Board Action.
The Board approved the issues to be addressed in its pre-filed legislative package for the 1997 Legislative Session and determined that at least three different bills will be filed, according to the subject matter of the proposed change and whether or not it is a substantive change in policy. The Board separately approved the drafting of a letter to the legislature regarding the problems with the current financial disclosure statute. The Board also approved a policy statement prohibiting assumption of corporate debts by candidate committees, and approved drafts of administrative rules on reporting of lobbyist compensation, and information to be included in a committee's initial report.
Next Meeting.
The next meeting of the Board is scheduled for September 12, 1996.

IOWA UTILITIES BOARD

August 9, 1996

Alternate Energy.
A final decision and order was issued August 9, 1996, for Docket No.'s AEP-95-1, AEP-95-2, AEP-95-3, AEP-95-4, and AEP-95-5. A summary of the decisions in the order was published in the July 26 calendar. The Utilities Board issued the final decision in the dockets involving the requirements contained in Iowa Code Chapter 476, relating to alternate energy production (AEP). The order grants Midwest Wind Developers' and Windustries' petition to compel purchase of electricity to the extent provided in the order and requires MidAmerican Energy Company and IES Utilities to enter into signed AEP purchase agreements within six months from the date of the order and to file copies with the Utilities Board. For further information regarding the order or for a copy of the final order, contact Julie Smith of the Legislative Service Bureau.

ADMINISTRATIVE RULES REVIEW COMMITTEE

August 13-14, 1996

AGRICULTURE AND LAND STEWARDSHIP DEPARTMENT
Senate File 2446, Section 30-Pseudorabies Vaccination, Selective Review. The committee requested a special review of a provision of the Agricultural Department's appropriation bill. Sec. 30 of the Act states "In addition to other applicable requirements of this section, feeder swine shall not be moved into this state from another state except to slaughter, unless the feeder swine are vaccinated by a differentiable vaccine within forty-five days of arrival in this state." Members noted this provision requires vaccination, costing some 60 cents per inoculation, even though many feeder pigs come from certified pseudorabies-free states or areas. The state veterinarian noted that millions of feeder pigs enter Iowa annually, but that the feeder pig business largely centered in pseudorabies-free states.
Discussion. Committee members responded that the legislation was in response to local suspicions that pseudorabies outbreaks were the result of the importation of infected feeder pigs. It was the general consensus that some control over the importation of feeder pigs is necessary, but that this legislation should be reviewed by a working group of producers and local veterinarians to establish a more specific vaccination requirement targeting imports from areas still infected with pseudorabies.
Action. No further action was taken.
ECONOMIC DEVELOPMENT DEPARTMENT
Iowa Jobs Training Program - Filed as an Emergency Rule. 1996 Iowa Acts, S.F. 2351, mandated a number of minor changes in the jobs training program, which funds training projects developed by the local community colleges on behalf of area business.
Discussion. Some controversy developed over the "business networks" portion of this filing, which is a new statutory addition to the program allowing multiple businesses and community colleges to join together in a project when those entities share a common training need. First, questions were raised whether this portion of the program should have been filed on an emergency basis (July 1st), since the program will not actually be implemented until September. Next, there was a general discussion whether the department could itself sponsor a network project or whether all projects had to be jointly sponsored by the department and community colleges. Lastly, discussion centered around the question whether this program might fund "supplier network training", which is a quality control concept where parent corporations educate and train their local suppliers to ensure those locally supplied products or parts meet the parent companies' specifications. The statute was silent on this question but discussion centered on whether the legislative intent of the statute was to exclude such training from funding.
Action. Further review of this rule has been postponed until the Committee's September 10th meeting. The department has agreed to postpone implementation of the business network provisions until that time.
ENVIRONMENTAL PROTECTION DIVISION
Underground Storage Tanks: Remediation - Filed as Emergency Rules. 1995 Iowa Acts, Chapter 215, authorized a "risk-based corrective action" program for the clean up of underground storage tanks; this process would determine the type of corrective action to be taken based on the risks posed by the contamination to the public health, safety, welfare, and the environment itself. The contamination in this case is fuel-related substances such as benzene, toluene, and xylene. The degree of clean up at a particular site will be determined based on the level of contamination and its spread. As part of this review, the Committee took testimony from small business owners who noted that the required co-payment and deductibles under the insurance program still result in out-of-pocket expenses from $5,000 to $18,000. Even worse, the presence of the contamination makes the property worthless. The division noted that the rules may well make it easier to obtain a final release from the division, thus making it possible to sell the property.
It was generally noted that Iowa is now full into the remediation phase of the underground storage tank program and the next issue in storage tanks will be the cost of remediation and its impact on small business.
Action. The Committee took no action on the rules.
INSURANCE DIVISION
Stock Sales in Mutual Insurance Companies - Selective Review. Representatives of Iowa's mutual insurance companies requested to meet with the Insurance Division and the committee concerning the implementation of 1995 Acts, Chapter 185. This Act addresses one of the biggest handicaps currently faced by a mutual company; currently a mutual may only raise capital by taking on debt, while a stock company can raise capital by selling equity in the company. The Act would allow a mutual to raise capital by selling equity {stock}.
Discussion. Some companies, anxious to issue stock as soon as possible and concerned that companies in other states might make a stock offering first, have requested the Insurance Commissioner to issue "emergency" rules for this process. The Commissioner, mindful of the nation-wide implication and impact of these rules, and the Committee's own opposition to most emergency filings, declined this request.
Action. All parties agreed to discuss the issue before the Committee. Committee members reiterated their general opposition to emergency rules, noting that in this case, where an entirely new body of law is being created, that notice and a full opportunity for public comment is particularly important. The general consensus was to support the Commissioner. The Commissioner stated she would try to have a draft notice ready this month, but noted that many issues still have to be addressed before the document would be ready. The committee members left open the possibility of an additional meeting in September.
IOWA LAW ENFORCEMENT ACADEMY
Officer Transfers Between Agencies - Proposed Rules. The academy has proposed a rule stating that local law enforcement agencies may enforce professional requirements which are higher than those created by the academy. This proposal was very controversial with some committee members who feel that a single, state-wide standard should be in place. Members contend the rule would allow agencies to change standards as often as they choose, and could allow the standards to be tailored to either exclude a particular candidate from consideration or even guarantee that a particular candidate be hired. Academy representatives responded that local agencies could already choose from the candidates on the civil service list.
Action. Initial plans were to adopt this provision on an emergency basis, with a September 1st effective date. Committee members opposed this emergency adoption, and instead placed the issue for further review at the September 10 and 11 meeting.
MEDICAL EXAMINERS BOARD
Delegation of Post Surgery Care - Delayed Rules. These rules have been under a 70-day delay since the May Committee meeting. The intent was to the ability of a surgeon to delegate the duties of post operative care to other licensed professionals. In essence the provision holds that post-operative care of a patient is the responsibility of the surgeon, and while post-operative care can be delegated on a case-by-case basis to other health care professionals, the surgeon cannot enter into a general agreement with another professional to provide that post-operative care on an ongoing basis.
Controversy. The controversy in the filing was limited to the relationships between opthamologists and optometrists. Optometrists frequently enter into an ongoing arrangement with an opthamologist where the optometrist refers patients to the opthamologist for surgery, and the opthamologist in turn refers the patient back to the optometrist who provides some portion of the postoperative care generally required following cataract surgery. The rule would have prevented such an agreement.
Action. Several committee members were extremely supportive of the current arrangements, noting that in rural Iowa optometrists are more widely available than opthamologists. It was also contended that the effect of the rule could force cataract patients to travel 40 miles or more for post-operative care. The Board ultimately decided to rescind this rule, with the intention of meeting with all stakeholders in this matter and proposing new rules sometime this fall.

GOVERNOR'S COMMITTEE ON GOVERNMENT SPENDING REFORM - BUDGET PRACTICES WORKGROUP

August 14, 1996

Background.
The Governor's Committee (known as the Fisher Commission) created a workgroup to review state government practices. The Workgroup is co-chaired by Mr. William Vernon of the Vernon Companies and Ms. Gretchen Tegeler, Director, Department of Management. The Workgroup reviewed its mission, literature on biennial budgeting, and a tentative work schedule.
Biennial Budgeting.
Biennial budgeting for state government would mean the implementation of budgets and appropriations to cover a two-year period in place of the current annual cycle. The Governor has previously proposed a two-year budget that would be enacted in the first year of each legislative biennium. Ms. Tegeler suggested that the annual budget process does not support a long-range perspective concerning the effects of an appropriation on the overall budget in succeeding fiscal years. In addition, she suggested the annual budget cycle consumes significant resources for both the executive and legislative branches that could be redirected to other forms of analysis. Discussion among members included the following concerns:
Additional Information.
In future meetings the Workgroup agreed to consider the history of the change in Iowa's fiscal situation, an analysis of Iowa's revenue estimating process, an overview of the current budget process with bottlenecks identified, and budgeting for technology needs.
Future Meetings.
The next meeting is scheduled for August 28. Other meeting dates are September 11 and 25 and October 8.

ALTERNATE ENERGY REVOLVING LOAN PROGRAM UPDATE

Background.
The Alternate Energy Revolving Loan Program was created in S.F. 2370, the 1996 energy efficiency bill. The program is administered by the Iowa Energy Center and is funded through an assessment on total gross operating revenues derived from intrastate public utility operations for all gas and electric utilities required to be rate-regulated. This assessment will provide approximately $1.8 million in loans for the first year of the program. It is estimated that a total of $5 million will be awarded over the life of the program.
Loan Requirements.
The Iowa Energy Center will provide loans for 50 percent of a project's cost or up to $250,000 at 0 percent interest for up to 20 years. The remainder of the loan must be awarded by a lending institution of the applicant's choice at a negotiated interest rate. Any individual or group who wishes to build an alternate energy facilities in the state is eligible for loans.
Award Plans.
The Center is planning to award funds on the basis of the following technology bands:
Biomass20%
Small Wind(20 kW or less)10%
Large Wind(over 20 kW)20%
Solar5%
Hydro15%
Open30%
Application Deadline.
The first deadline for technical applications is September 30, 1996. For further information contact, Mr. Floyd E. Barwig, Director, Iowa Energy Center.

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