Senate approves flood insurance plan

DES MOINES – Iowa cities and counties would be required to participate in the national flood insurance program by 2013 or risk not receiving state recovery aid if a future disaster hit their areas under legislation approved by the Iowa Senate on Monday.

Communities that currently do not have reliable flood management or hazard maps would be given more leeway before the requirement would kick in, said Sen. Pam Jochum, D-Dubuque, manager of House File 759, which pass the Senate by a 45-5 margin. Those jurisdictions would have an extra five years after the maps were developed to comply.

“I believe this is a step forward in trying to make sure that we are reducing future flood damage,” Jochum said. “I believe it will also be a relief for general taxpayers who all-too-often end up footing the bill.”

Backers said 503 Iowa communities currently participate in the national flood insurance program, but 118 do not – including 87 that sustained some level of damage in last year's record flooding disaster.

Under the bill's provisions, communities would need to make a program application, pass a local ordinance to participate and submit storm water management standards to the Federal Emergency Management Agency as part of a disaster mitigation and prevention effort. Failure to comply would jeopardize state recovery help similar to provisions of the federal program, she said.

The measure returns to the House after senators approved an amendment asking the state insurance commissioner to collaborate with Rebuild Iowa Office and Homeland Security officials to formulate recommendations to lawmakers concerning possibly incentives to encourage more individual property owners to purchase flood insurance.

Voting against the bill were GOP Sens. Jerry Behn of Boone, David Hartsuch of Bettendorf, David Johnson of Ocheyedan, and Steve Kettering of Lake View, and Sen. Rich Olive, D-Story City.

Also Monday, the Senate voted 45-5 to 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.

 Under Senate File 476, 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.

Backers said most nursing facilities facing losses now will experience a net gain to hold down rates because the additional Medicaid payments will be more than the assessment paid.

“This is a bill that our nursing homes all across the state really need,” said Sen. Nancy Boettger, R-Harlan.

“Many of our nursing facilities are in very dire financial positions right now and this is a bill that is really needed,” she added. “It will keep many of those facilities viable that financially would be failing if we do not pass this bill.”

However, Hartsuch said he was concerned that lawmakers were passing a tax, not a fee, that would 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 Hartsuch, who was joined by GOP Sens. Behn, Shawn Hamerlinck of Davenport, Larry Noble of Ankeny and Pat Ward of West Des Moines in voting against the measure.

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.

“The facilities will determine how the fee is paid for and I think that is appropriate,” he said.