December 8, 1998	INTERIM CALENDAR AND BRIEFING
	Published by the Iowa General Assembly -- Legislative Service Bureau

Iowa Legislative Interim Calendar and Briefing is published by the Legislative Service Bureau (LSB). For additional information, contact: LSB at (515) 281-3569. Prerecorded Interim Schedule: (515) 281-5869

Contents:

Calendar of Scheduled Meetings

Agenda Information Regarding Scheduled Meetings

BRIEFINGS - Information Regarding Recent Meetings

• Legislative Oversight Committee (11/17/98)
• Deregulation and Restructuring of the Electric Utility Industry Study Committee (11/23 & 11/24/98)
• Commission on Urban Planning, Growth Management of Cities, and Protection of Farmland (11/30 & 12/1/98)
• School Finance Working Committee (12/1/98)

Calendar

Agenda Information Regarding Scheduled Meetings

Libraries Study Committee - Telephone Conference Call Friday, December 11, 1998, 2:00 p.m. Room 19, State Capitol	Co-Chairperson: Senator Donald Redfern Co-Chairperson: Representative Betty Grundberg LSB Staff: Susan Crowley; Nicole Haatvedt Agenda: To Be Announced.
Libraries Study Committee - Telephone Conference Call Friday, December 11, 1998, 2:00 p.m. Room 19, State Capitol	Co-Chairperson: Senator Donald Redfern Co-Chairperson: Representative Betty Grundberg LSB Staff: Susan Crowley; Nicole Haatvedt Agenda: Discuss possible recommendations pertaining to libraries study.
Deregulation & Restructuring of the Electric Utility Industry Study Committee Monday, December 14, 1998, 10:00 a.m. Iowa Utilities Board, Board Room, 350 E. Maple Street, Des Moines	Co-Chairperson: Senator John Jensen Co-Chairperson: Representative Christopher Rants LSB Staff: Mark Johnson; Jan Johnson Agenda: Presentation of legislative proposal.
Sentencing Commission - Misdemeanor Subcommittee Tuesday, January 5, 1999, 1:30 p.m. Room 118, State Capitol	LSB Staff: Eric Sponheim; Joe McEniry Agenda: Review Misdemeanor Crimes.
Sentencing Commission Wednesday, January 6, 1999, 9:00 a.m. Room 116, State Capitol	Co-Chairperson: Senator Andy McKean Co-Chairperson: Representative Jeffrey Lamberti LSB Staff: Eric Sponheim; Joe McEniry Agenda: To Be Announced.

BRIEFINGS - Information Regarding Recent Meetings

LEGISLATIVE OVERSIGHT COMMITTEE

November 17, 1998

Year 2000 Progress Audit Consultant. Hitachi Data Systems Corporation was selected to perform services for a progress audit regarding the State of Iowa's implementation of century date change programming. The selection of the consultant was in response to the "Year 2000 Century Date Change Programming Progress Audit Request For Proposals (RFP)" issued by the Committee on September 23, 1998. The Committee interviewed the four consultants which responded to the RFP.

Year 2000 Updates. The Committee received updates regarding progress of the implementation of century date change programming from the Board of Regents regarding progress at the Regents Institutions, and from Paul Carlson, Year 2000 Project Office, regarding progress in executive branch agencies.

Iowa Access Update. Representative Libby Jacobs provided an update regarding progress in the implementation of Iowa Access. Iowa Access concerns the electronic availability of information held by the state.

• Committee Co-chairpersons: Senator Steve King and Representative Libby Jacobs
• LFB Staff: Glen Dickinson; Doug Wulf
• LSB Staff: Mark Johnson

DEREGULATION AND RESTRUCTURING OF THE ELECTRIC UTILITY INDUSTRY STUDY COMMITTEE

November 23 and 24, 1998; Third and Fourth of Five Meeting Days

Regulation in a Restructured Marketplace. The Committee heard a panel presentation concerning the role and responsibilities of regulators in a restructured electric industry environment. Presenters included representatives of the Office of Consumer Advocate, Iowa Association of Municipal Utilities, and the Iowa Association of Electric Cooperatives. This panel presentation was originally scheduled for the second meeting day but was rescheduled at the request of the Committee. Mr. Ron Polle, Office of Consumer Advocate, expressed concern that if restructuring is enacted, it could be 2-3 years before all consumers would have effective choice. He stated concerns regarding the ability to regulate effectively out-of-state electricity suppliers in a new market environment. Mr. Bob Haug, Iowa Association of Municipal Utilities, indicated that the owners and customers of a Municipal utility are the same. Mr. Bob Swindell, Iowa Association of Electric Cooperatives, stated that governmental intervention should be kept to a minimum in the development of competitive markets. He also noted that an electric cooperative is regulated and controlled by the cooperative's board of directors.

Consumer Issues. Ms. Lisa Stump, Iowa Utilities Board Staff, Mr. Ron Polle, Office of Consumer Advocate, and Ms. Susan Weinstock, American Association of Retired Persons, (AARP), provided an overview of some consumer-related issues which may arise as a result of restructuring. Ms. Stump briefly reviewed the issues of default provider, provider of last resort, standard offer service, licensing of suppliers, disclosures to consumers, customer privacy, and low income assistance, among others. Mr. Polle briefly reviewed a consumer bill of rights regarding customer choice in electricity. Ms. Weinstock urged the Committee to proceed cautiously and averred that customers who do not benefit as a result of restructuring should not be required to pay for stranded costs of utilities.

Market Power Summary. Ms. Lisa Stump, Iowa Utilities Board Staff, provided a summary of issues relating to market power which may arise in a restructured marketplace. She indicated that market power is the ability to increase profits by setting prices above competitive levels and restricting output below competitive levels in a particular market. She reviewed how other states have addressed this issue as they have moved toward a restructured electric utility industry.

Retail Marketing Areas. Mr. Kenneth Rose, National Regulatory Research Institute, Ohio State University, provided an overview of retail marketing areas, a concept developed by the Institute and being considered in Ohio. Under the proposal, the state would be divided into geographic areas and a bidding process would be used to select a supplier for each area.

Illinois Experience. Mr. James Monk, Illinois Energy Association, provided an overview of the process and events which occurred during Illinois' passage of utility restructuring legislation.

Renewable/Conservation Issues. Ms. Nancy Lange, Izaak Walton League, reviewed the concerns of the League regarding restructuring. Mr. Floyd Barwig, Director, Iowa Energy Center, Iowa State University, informed the Committee regarding the activities of the Center. Ms. Sharon Tahtinen, Department of Natural Resources, reviewed the activities of the Department regarding energy efficiency and increasing the use of alternative energy resources.

Transition Costs/Benefits. Mr. Stuart Ormsbee, Iowa Utilities Board Staff, provided an overview of transitions costs and benefits and reviewed the Iowa Utilities Board Staff model for determining transition costs and benefits. He defined transition costs as those costs associated with investments and contractual obligations undertaken by utilities pursuant to their historical responsibilities. A panel discussion followed regarding issues associated with transitions costs and benefits including representatives from Alliant Utilities, MidAmerican Energy, Latham & Associates, Iowa Municipal Utility Association, Iowa Association of Electric Cooperatives, and the Office of Consumer Advocate.

Miscellaneous Information. Mr. Mike Gahagan provided an overview of the Mid-Continent Area Power Pool (MAPP). Mr. Brent Gale, MidAmerican Energy, and Ms. Lisa Stump, Iowa Utilities Board Staff, provided an overview of issues associate with the state's electric generation infrastructure. Mr. William Smith, Iowa Utilities Board Staff, provided an overview of federal initiatives associated with restructuring. Mr. Terry Harrmann, Alliant Utilities, informed the Committee regarding Alliant's efforts associated with the Year 2000 programming issue.

Next Meeting. The next meeting of the Committee has been scheduled for December 14, 1998. The meeting will be held in the Iowa Utilities Board Hearing Room.

• Committee Co-chairpersons: Senator John Jensen and Representative Christopher Rants
• LSB Staff: Mark Johnson; Jan Johnson

COMMISSION ON URBAN PLANNING, GROWTH MANAGEMENT OF CITIES, AND PROTECTION OF FARMLAND

November 30 and December 1, 1998; Final Meeting

Overview. The meeting focused on developing recommendations for the Commission's final report. Co-chairperson Teig outlined the procedure for compiling the final report of the Commission, stating that the two day meeting would be the final meeting of the Commission. He stated that the final report will include recommendations and objections or comments by Commission members.

Private Property Rights. Mr. Chad Kleppe presented a report of the Private Property Rights Subcommission. He described a number of methods in order to accomplish land preservation goals, including methods to revise the tax code, for creation of incentives to encourage the transfer of land to younger producers, and to afford producers protections against frivolous lawsuits, and he questioned annexation which amounts to "land grabbing" efforts by cities.

Oregon Approach. Representative Ed Fallon discussed his recent visit to the state of Oregon in order to investigate the effectiveness of urban growth boundaries as a means to manage urban sprawl. Representative Fallon reported that the use of growth management policies in that state is successful.

DOT Planning. Mr. Don Ward and Mr. Mark Kerper, representing the Department of Transportation, discussed the process of planning and cooperation with communities. Mr. Ward and Mr. Kerper stated that communities were consulted during road construction planning, and stated that the department would like to become involved in local planning.

Land Use Inventory. Professor Stu Huntington, Iowa State University, provided a final report regarding land use inventories compiled for six counties, under contract with the Commission. Professor Huntington discussed the amount of land being converted from non-agricultural uses, the development of land outside city limits, and the feasibility of continuing the process of inventorying land for the entire state. Ms. Debra Kozel, Legislative Fiscal Bureau, provided a fiscal analysis of county planning efforts.

Proposed Legislation. The Commission reviewed and endorsed an outline of legislation proposed by Co-chairperson Lundby and Co-chairperson Teig. The purpose of the proposal is to preserve the use of primate agricultural land for agricultural production, and to preserve natural, cultural, and historic areas by managing urban sprawl through the use of state planning and local cooperative planning with state oversight the proposal includes the following:

• Requiring Iowa State University, to the extent that moneys are available, to provide for a land use inventory, and assist local governments in maintaining the inventories.
• Continuing the existence of the current commission and creating a council composed of representatives of state agencies to establish, maintain, and revise a state strategic development plan that provides state-wide planning, including the development by member state agencies in a manner that is consistent with the purpose of the proposal.
• Expanding the authority of the City Development Board to approve planning required by cities and counties and approve all annexations by cities.
• Requiring cities and counties to prepare plans governing their jurisdictions, and requiring cities and counties which have adopted countywide zoning to prepare joint plans governing unincorporated areas in the county which are subject to development.
• Providing that annexations must comply with the plans, and allowing counties to object to annexations which do not meet the provisions of the plans. Development within counties that do not comply with plans would not be eligible for government incentives or tax breaks.
• Increasing the rights of persons over their property subject to an easement for utilities which was obtained through eminent domain procedures.

• Commission Co-chairpersons: Senator Mary Lundby and Representative Russ Teig
• LSB Staff: Doug Adkisson; Tim McDermott

SCHOOL FINANCE WORKING COMMITTEE

December 1, 1998; Fourth of Six Meetings

Background. The School Finance Working Committee was developed as a result of the passage of House concurrent Resolution 15, which requested the formation of a committee by the Legislative Council to conduct a comprehensive study of school finance and make recommendations for a revised school aid formula. One of the primary factors underlying the passage of HCR 15, and the formation of the committee, is a clause contained in Iowa Code chapter 257 stipulating that the school aid formula is subject to a sunset provision repealing the chapter effective July 2, 2001. The rationale for requiring the automatic repeal, when the Iowa Code Chapter 257 provisions were enacted during the 1989 Legislative Session, was to facilitate a review of the formula's operation at the conclusion of the 10-year period following enactment.

Overview. The agenda involved obtaining continued regionalized input coordinated through the eight Area Education Agency (AEA) regions which were not represented during the committee's previous meeting, and included presentations concerning children with additional needs programs and funding, school infrastructure safety concerns, special education weighting, preliminary fiscal analyses, and the expansion and refinement of a list of school finance related issues and areas of focus.

Regional Input. In a continued effort to obtain input from across the state regarding the school finance formula, superintendents and business managers representing two school districts per AEA region, in the eight AEA regions not previously heard from during the third committee meeting, provided their views to the committee. In general the input was consistent with that previously obtained, including identification of the following problem areas:

• Maintaining the budget guarantee provision
• Achieving greater transportation equity through categorical funding
• Addressing special education deficits; reexamining the special education weights
• Providing funding through block vs. competitive grants
• Removal of the instructional support levy cap
• Consideration of an increase in the foundation level and/or the uniform levy
• Increasing allowable growth and/or returning to a non-legislative formula determination corresponding to a measure of state economic health
• Providing state funding for post-secondary enrollment options

Children With Additional Needs.

• Drop-out Programs. Mr. Ray Morley, Consultant, Homeless Children and Youth and At-Risk Students, Iowa Department of Education, discussed the drop-out and drop-out prevention and school-based youth services programs. Mr. Morley indicated that drop-out and drop-out prevention programs have significantly increased in number throughout the state since the mid-1980's, and that success in curbing drop-out rates and increasing the level of former drop-outs returning to school has been documented. Many school districts are, however, in need of additional resources to support them. Mr. Morley indicated that the monitoring and submission requirements in place for the obtaining of additional allowable growth place additional burdens on already under-funded programs, and that additional funding and increased local control is warranted.
• Early Childhood. Mr. Robert Smith, President, Waterloo School Board, encouraged the committee to consider increased funding of early childhood programs, and emphasized the need for accountability on the part of program funding recipients for their identified goals.
• Drug and Alcohol Abuse. Ms. Jeanne Chesnut, Substance Abuse Preventionist/Coordinator, AEA 14, described local efforts regarding utilization of grant funds from the Iowa Department of Public Health regarding drug and alcohol abuse, and integration of these effort with student assistance teams.
• Health. Ms. Rita Audlehelm, School Nurse, Central Decatur Community School District, stressed the importance of early identification and intervention in the early-preschool years prior to entering the school system, and that additional funding for teacher support services such as guidance counselors and school health centers is needed. Additionally, she indicated that state law does not presently require schools to have a school nurse on-site, and this should be changed.
• Lead Poisoning. Mr. David Van Horn, Director of Special Education, AEA 14, discussed screening for blood lead levels, and stated that the presence of any amount puts children at-risk. Mr. Van Horn also stated that the number of children identified as containing measurable quantities of blood lead levels will be substantial.

School Infrastructure and Fire Safety. Mr. Roy Marshall, State Fire Marshal, discussed inspection procedures within the Department of Public Safety, and indicated that while schools are required to be inspected every two years by statute, in reality funding is insufficient to fully comply with this requirement. Mr. Marshall also discussed categorization of school fire safety violations into two different tiers or levels of severity, and estimated that approximately ten percent of inspections annually reveal violations in the more severe or serious category. Mr. Marshall also presented statistics indicating a significant increase in the number of reported school fires in recent decades, and stated that arson accounts for the majority of the increase observed.

Supplementary and Special Education Weighting.

• Supplementary Weighting. Dr. Lee Tack, Administrator, Division of Financial and Information Services, Iowa Department of Education, accompanied by Mr. Dwight Carlson, Assistant to the Director, Iowa Department of Education, provided an overview of the types of supplementary weighting and recent questions raised in connection with the availability of supplementary weighting to school districts in situations involving district-to-district and district-to-community college sharing. Dr. Tack distributed copies of a recent Attorney General's Opinion on this question, and discussed the outcome of a Task Force formed by the Department of Education to study the issue.
• Special Education Weighting. Dr. Tack, accompanied by Ms. Sharon Hawthorne, Special Education Finance, Iowa Department of Education, summarized the development and evolution of the special education weights currently in effect, and provided estimates of the adjustments needed to provide full state funding. Dr. Tack emphasized that adjusting the special education weights will provide property tax relief, but no additional special education funding. Ms. Hawthorne indicated that in general it appears that students in Iowa are correctly classified in the respective weighting categories.

Iowa PTA. Mr. Wayne Bauman, Vice President of Legislation, Iowa PTA, provided the association's perspective regarding school finance reform. Mr. Bauman cited restoration of funding aspects eliminated from the formula in 1992 (including the special education count date, declining enrollment matrix, the advance for increasing enrollment, transportation assistance, and fully funded instructional support), allowable growth determination tied to state revenue growth, and integration of categorical funding into the finance formula or increasing the amount of such funding, as Iowa PTA priorities.

Committee Discussion. The committee reviewed various projection fiscal runs concerning proposed adjustments to the current approach to K-12 funding, discussed adjusting the school finance formula to achieve property tax relief, and expanded on a list of issues or focus areas considered by the committee up to this point.

Next Meeting. The next full meeting of the committee has been tentatively scheduled for some point during the first week of the 1999 Legislative Session. A telephone conference call has been scheduled for Tuesday, December 15, 1998, at 3:30 p.m. The conference call will continue the committee's discussion concerning areas of focus and necessary additional fiscal analysis, and will be conducted in Room 19 at the State Capitol and be open to the public. A meeting date and time for the next full meeting of the committee will be determined during the conference call.

• Committee Co-Chairpersons: Senator Donald Redfern and Representative Betty Grundberg
• LSB Staff: Rick Nelson; Kathy Hanlon; Mike Goedert

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