Culver signs 'granny tax,' 'poop-on-ice' bills

A "granny tax" signed into law by Gov. Chet Culver could cost Iowa nursing home residents $33 

million  a year - money state lawmakers say will draw attract early $45 million in federal Medicaid funds.

Senate File 476 will impose a quality assurance fee on all for-profit and nonprofit nursing facilities of 3 percent for each patient day to help leverage up to $60 million in much-needed federal matching money.

The fee, which would not apply to state nursing facilities, was projected to generate $33 million to be deposited in a state-run Quality Assurance Trust Fund. The money would be used to provide a supplemental payment -- matched with federal financial participation -- to help offset assessment costs at nursing facilities similar to 33 other states.

According to an analysis by the Legislative Services Bureau, most nursing homes see a net revenue gain because the additional Medicaid payments will be more than the assessment paid. However, facilities with a low percentage of Medicaid bed-days will experience a net loss because the Medicaid payments will not be enough to offset the assessment on non-Medicaid bed-day revenue.

Under the plan, the state will use $5.5 million to offset the cost of the assessment to nursing homes. That will be matched with $12.5 million in federal money. Another $14.1 million will be used for a $10 per bed-day rate add-on matched by $32.1 million in federal dollars.

Sen. Joe Bolkcom, D-Iowa City, said 60 percent of the new money must be used for employee salaries, wages and benefits - with more than half going specifically to direct-care workers such as certified nurse's aides.

A handful of Senate Republicans objected to the plan, arguing the fee will be imposed on nursing home residents - unawares, in some cases - without them ever seeing any direct service benefit.

"I'm concerned that this is a tax on our most vulnerable citizens," said Sen. David Hartsuch, R-Bettendorf.

In the end, SF 476 passed the Senate 45-5 and the House 94-0.

Also Tuesday, Culver signed the so-called poop-on-ice bill to ban the application of manure on snow-covered ground and restrict the practice on frozen ground. Backers said Senate File 432 will protect Iowa waters from manure runoff.

Producers and commodity groups said runoff is rarely a problem because manure has value as crop nutrient. However, environmental groups argued manure run-off from confined animal feeding operations (CAFOs) is a major contributor to high ammonia levels in some Iowa waterways and the overall poor water quality across the state.

Environmental groups preferred rules being drafted by the Environmental Protection Commission, but lawmakers said the change should be made by elected officials, not an appointed commission.

Other bills the governor signed Tuesday included:

SF 465 -Increases certain real estate fees by $2 to pay for the redaction of Social Security numbers from IowaLandRecords.org.

HF 243 - Provides gender balance on local boards, commissions, committees, and councils.

HF 671 -Prevents volunteer fire and EMS personnel from being fired from their jobs for responding to an emergency in their role as volunteer fire and/or EMS.

SF 815 -Makes it easier to transfer credits from community college to a Regents' institution