2013 End of Session Report

*Note:  All information is current as of May 22, 2013

• House File 395 Franchise Agreements
• House File 457 DNR Farmland Lease Beginning Farmer Preference
• House File 500 Early Childhood Iowa Area Board
• House File 518 Manufactured Housing Progam
• House File 522 Aquatic Invasive Species
• House File 524 Commerical Rental Property Unpaid Water Bill Lien Prevention
• House File 530 ODCP Advisory
• House File 535 Confidential Permits
• House File 541 Dam Reconstruction Standards
• House File 547 Child Labor in Laundry Operations
• House File 549 Vaccine Administration
• House File 556 Substantive Code Editors Bill
• House File 565 Mechanics Lien Clean Up
• House File 574 Health Care Question on Income Tax
• House File 586 Rulemaking Authority
• House File 589 411 System Technical Bill
• House File 591 Probate and Trust Code Changes

With the first funnel over the House has narrowed down the bills that are still alive for consideration this session.

To see a list of the “Funnel Survivors” view the list below, organized by committee, of all bills that survived the first funnel in the House.

2013 First Funnel Survivors

RTW states in red.

House Republicans are working this session to strengthen and constitutionally protect Iowa’s Right-to-Work law (House Joint Resolution 1).  With the Democrats trying year after year to eliminate Iowa’s status as a Right-to-Work state, it is imperative that the Legislature put RTW in our state Constitution.

While laws can be repealed any year, it is much harder to repeal an amendment to Iowa’s Constitution.  In fact, it was just in 2007 that the Democrats attempted to weaken RTW with their “Fair Share” plan.  Iowans know that we must ensure that Iowa keeps its RTW status.

House Republicans are working to build a strong economy here in Iowa, and RTW helps do just that.  In general, RTW states have much better job-growth numbers than non-RTW states.  In some cases, businesses relocate based on a state’s RTW status.

House Republicans know that RTW is a pro-growth tool to bring businesses and jobs to Iowa.  It needs constitutional protection.  The following is a study showing union’s declining membership over the years, proving that individuals want liberty in the workplace.”

Labor Unions: Declining Membership Shows Labor Laws Need Modernizing

Iowa Department of Administrative Services director Mike Carroll says the analysis found state worker health care benefits were “well above the norm.”
Radio Iowa

Click for Executive Summary

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Not only are the unemployment rates higher, but an analysis of the number of hours worked for these two groups has seen a reduction in the last decade as well. The average number of hours worked per week for the 16-19 year olds in 2002 was 12.5 hours, but has dropped to 8.1 hours per week in 2011. Again, the 18-20 year old high school graduates faced a similar situation wherein their average hours worked in 2002 was 21.1 per week, falling to 16.7 hours per week in 2011.

The study references the rise in minimum wage as one of the driving forces behind the tremendously high teen unemployment rate. Iowa’s minimum wage was raised by the Iowa Legislature and Governor Culver in 2007 from $5.15 per hour to $6.20 per hour, and then in 2008 it was raised to $7.25. The federal minimum wage was also raised by the Democratically-controlled Congress, up to its current level of $7.25 an hour, matching Iowa’s rate. The study links this rise of the minimum wage to the increase in teen unemployment rate, noting that “teenagers are five times more likely to earn the minimum wage than adults. Thus the impact of an increase in the minimum wage would be felt dramatically by that segment of the workforce.” Those most hurt by a rise in minimum wage are often the youngest and most unskilled workers as businesses cannot afford to pay increased wages for individuals that might not have the necessary training or productivity to bring to the business.

Lastly, the study proposes an idea on how to lower the teen unemployment rate in Iowa. The study proposes to create a “sub-minimum” wage for teen workers in the state, which would allow businesses to pay certain teens an amount below the minimum wage that would apply to all other workers. The study concludes with the observation that “The benefit of having a higher minimum wage is cancelled out if teen workers are receiving fewer hours of work. And for those teens that want a job but cannot find one, their wages are $0.”

2012 End of Session Wrap Up

2012 First Funnel Survivors

These rate increases translate into an additional $12 million in spending the state has to pay in order to cover its employees. For purposes of health insurance, the state pays 100% of single and double spouse contracts and 85% of an employee’s family premium. According to the nonpartisan Legislative Services Agency, 87% of state employees pay nothing toward their health insurance premiums.

House Republicans attempted multiple times last session to restore some equity to the taxpayer by requiring state employees to contribute as little as $100 a month toward their health insurance. Each time the issue was raised, it was met with strong resistance by Democrats. In an analysis conducted for HF 525, the collective bargaining reform bill that House Republicans offered and passed, LSA estimated that by requiring a $100 contribution to the premium, the state would save $33.3 million per year.

However, due to Governor Culver’s acceptance of the initial union collective bargaining agreement offer, the state is locked in to paying these rates for the next two years. At that point, a new agreement will have to be reached and Governor Branstad has made it clear that he will not accept the first offer the union presents without making a counter-offer. Governor Branstad has said he intends to take a hard look at the cost of insurance and that it will be on the table for discussions.