House Opens Debate on Collective Bargaining

The Iowa House opened debate this week on a bill that would essentially end Iowa’s longstanding collective bargaining law for correctional officers, teachers, police officers, fire fighters, and other workers.

Opponents of the bill say the Legislature’s top priority this year should be creating new jobs and opportunities for working families in Iowa. The bill, House File 525, prevents workers from being able to discuss with employers issues that affect their health and safety, outsourcing, privatization, or layoffs.

Earlier this week, nearly 2,000 Iowans gathered for a rally and public hearing at the Statehouse to oppose the bill.

Preschool Debate Continues

The debate over quality, accessible preschool continued this week when the House approved a bill to end Iowa’s statewide voluntary preschool initiative and replace it with a voucher system.

House File 535 dismantles the state’s current high quality preschool initiative that covers 20,000 Iowa four-year olds and has strong support of business leaders, educators, and parents. It will reduce access to both public and private preschools for families while giving parents no guarantee of quality instruction with a certified teacher.

The bill replaces our current statewide initiative with a voucher system, and cuts funding by over half. All families of eligible four-year olds would have to contribute to tuition under the bill, with sliding scale fees based on income.

With no reliable statewide program, school districts will also be forced to end partnerships with private preschool providers because of uncertainty in funding and the number of students. Some educators questioned why Iowa should move backward to the system it had five years ago, when only 19% of Iowa’s four-year olds attended preschool.

The bill faces an uncertain future in the Iowa Senate, which voted to preserve Iowa’s statewide voluntary preschool initiative earlier this year.

Focus On Jobs Lost With Higher Education Cuts

As Iowa’s economy emerges from the national recession, it’s important for Iowa to have a highly-skilled workforce to keep and attract businesses. This week, the House Appropriations Committee approved an education budget bill that cuts $49 million from state universities and community colleges, which will raise tuition for Iowa students.

Opponents of the bill said tuition hikes will make higher education less accessible for middle class families and increase student loan debt. Iowa students already carry one of the highest debt burdens in the nation after finishing college, which forces many students to look for higher-paying jobs out of state.

Two-Year Budget Provisions Approved

The House approved a bill this week that lays the foundation for the Legislature to establish a two-year budget. The Governor had proposed moving from an annual budget process to a biennial budgeting process.

The Legislature approved biennial budgets several decades ago, but that process was fraught with problems that required annual adjustments either through Governor ordered transfers or legislative budget adjustments. The bill approved by the House does not require biennial budgets, but if the Legislature chooses, it would have the information necessary to proceed with a biennial budget.

House File 148 requires the Revenue Estimating Conference to begin estimating revenues for the two succeeding fiscal years for the general fund and for gambling revenues to be deposited into the Rebuild Iowa Infrastructure Fund.

The bill moves to the Senate for consideration where approval is anticipated.

Bills Support Iowa’s Rural Economy

The House Agriculture Committee adopted a number of bills this week that work to improve our rural economy. A new Livestock Assistance Revolving Fund is established, which would provide a $15 million boost to Iowa’s livestock producers who voluntarily put in environmental facilities.

The cow-calf tax credit, which was repealed in 2009, would be restored. Over 20,000 of Iowa’s cow/calf producers own 50 cows or fewer. These small family farmers keep erodible land in grass and manage forages through rotational grazing.

Farmers’ check-off dollars could no longer be used to pay for state audits under another measure.

And, as a way to improve urban/rural relations in Iowa, an urban-rural dialogue committee would be established to review existing state programs and study methods to improve awareness, understanding, and communication between the communities.

Finally, the full House adopted a measure that will now allow co-op members to vote electronically on measures for their board meetings. Depending on a co-ops articles or bylaws, this could be by telephone, email, or through the internet. The co-op would be required to make a reasonable effort to verify the vote is cast by an eligible member.

House Passes Penalties for K2, Spice, and Bath Salts

The House passed a bill classifying substances that are commonly referred to as K2, Spice, and bath salts as scheduled 1 controlled substances, meaning they have not medicinal purpose and are considered highly addictive.

House File 186 specifically classifies salvia, what is commonly referred to as “K2” or “Spice,” and substances that are sold under the title of “bath salts,” as schedule 1 substances. K2 gained press this past summer due to the role it played in the death of an Indianola teenager. Substances sold as bath salts are quickly gaining the attention of lawmakers due to their extreme side effects such as hallucinations.

The bill now goes to the Senate for consideration.

Conference Committee Set on Job Creation Tax Cut

A bill to help small businesses and create new opportunities for working families is now headed for conference committee to work-out the differences between the House and the Senate.

The bill, Senate File 209, encourages small businesses to invest and expand their businesses by allowing them to deduct the entire cost of autos, machinery, and other big ticket items from their taxes immediately instead of depreciating over time.

Another provision in the bill, originating in the Senate, provides tax relief for 240,000 hard working families who are working at least one job, and in many cases two or more jobs, by increasing the Earned Income Tax Credit. It would put more money in the pockets of families earning less than $45,000 per year. The House version removed this tax relief.

By updating Iowa’s income tax laws with the Federal Internal Revenue Code, it will cost the state $102 million in fiscal year 2011 and $179 million in fiscal year 2012.

The bill also targets $25 million to help counties eliminate waiting lists for mental health services.

Judge Sides with Attorney General; Orders Deceptive Company to Pay

This week, a Polk County Judge found that Connecticut-based company Vertrue violated Iowa’s buying club laws and deceived Iowans when marketing these so-called buying-club memberships. The judge ordered Vertrue to pay $29.8 million in consumer restitution, $2.8 million in civil penalties, and $725,000 in costs and fees.

Attorney General Tom Miller noted that this is the largest consumer protection verdict ever awarded in Iowa in a case filed by the Attorney General.

Buying-club memberships typically have a monthly cost, and in return, the consumer receives discounts or savings on items such as books, music, clothing, home improvement, and things such as entertainment activities. The court found that 90% of the consumers who purchased the Vertrue membership discount programs would have cancelled within the allowed three-day period if they had been properly and openly advised of their right to cancel.

The Consumer Protection Division of the Attorney General’s Office offers the following tips to avoid these types of unwanted solicitations:

• Examine your credit card bill, checking account, and phone bills. Unwanted membership charges have even appeared on mortgage statements and invoices from mail order retailers. Watch for unauthorized charges -- and dispute them at once. (Statements often include a toll-free number to call in order to cancel.)

• Remember that even “risk free” trial offers may lead to unwanted charges. Get the details: How do you cancel, and how soon must you cancel to avoid being billed? And remember that they may already have your bank or credit card number to charge you.

• Beware of checks that appear to be refunds or rebates. Fine print on the back of the check or elsewhere in the mailing may try to authorize future charges if you cash or deposit the check.

• Actively monitor your mail. Some mailings warning you “you will be billed unless you cancel” may look like the sort of “junk mail” consumers toss without reading.

Smart Smoke Detector Purchasing

In response to concerns from residents in southern and eastern Iowa, Attorney General Tom Miller and State Fire Marshal Ray Reynolds are warning residents to use caution if they are being pushed to purchase a certain smoke detector.

Smoke detectors are invaluable in the home and every home should have one. Both Miller and Reynolds have made a list of tips or recommendations for Iowans as they shop for smoke detectors.

• Be cautious of a salesperson that shows up on your doorstep with a deal that is only good for that day. • Don’t purchase from a salesperson that asks you for names and phone numbers of your friends but says not to share the product information.

• Salespersons should not be using fear as a sales tactic. Feel free to go to another store and get a second opinion, or better yet, seek the opinion of your local fire departments.

For more information, call the Fire Marshal Division at 515-725-6150, or visit this website for more information: www.dps.state.ia.us/fm/main/smoke_detector_project/PDFs/fa-250f.pdf.

If you would like to file a consumer complaint about a smoke detector seller, contact the Consumer Protection Division of the Attorney General’s Office toll free at 1-888-777-4590 (Des Moines-area consumers should call 515-281-5926), or file a complaint online at www.IowaAttorneyGeneral.gov.

Transportation Funding Bill Moves Forward

Additional road salt, scale replacements, transportation maps, and a new maintenance garage are just a few of the things that will be funded next year under the transportation budget bill moving its way through the Legislature. The Department of Transportation will receive a total of $346 million from the road use tax fund and primary road fund for their operations and highway maintenance, which is $4.8 million less than the current fiscal year.

Through state employee early retirements and restructuring their highway summer and winter temporary employees, DOT has reduced their staff by 264 positions. The department has a total of 3,109 positions across the state.

The road use tax fund, created in 1949, is primarily funded from taxes on gasoline, ethanol, and diesel fuels; motor vehicle registration fees; title and drivers’ license fees; and the sales taxes on the sale of motor vehicles. The fund is constitutionally protected and can only be spent on the construction, maintenance, and supervision of Iowa's public highways.

House Study Bill 195 unanimously passed the House Appropriations Committee and is now ready for debate by the full House.

Umbilical Cord Blood Donation

To date, more than 8,000 umbilical cord stem cell transplants have been performed world-wide to treat life threatening conditions like diabetes, heart and liver disease, and multiple sclerosis.

The House Human Resources Committee passed a bill to educate pregnant women on the possibility of donating umbilical cord blood. Blood extracted from the umbilical cord can be collected, processed, and cryogenically preserved for future use.

Cord blood, like bone marrow, is one of three sources of hematopoietic progenitor cells, which can be used to treat a number of blood cancers. Currently, the University of Iowa has a small public cord blood bank that is accepting donations.

House File 530 requires the attending pre-natal health care provider to give pregnant women information about options for donating blood extracted from the umbilical cord, of a newborn, to a public cord blood bank. The information must be provided prior to the 32nd week of the pregnancy. The Iowa Department of Public Health will develop and distribute the information regarding donating cord blood.

The bill now goes before the full House for consideration.