Capitol Digest, 4-15-09

Here are legislative items of interest for Wednesday, April 15:

CASUAL SALES TAX: Sales of snowmobiles, off-road motorcycles, all-terrain vehicles or off-road vehicles between casual buyers and sellers will be subject to state sales tax beginning July 1 under a bill passed by the Senate Wednesday. Senators voted 29-20 to eliminate the sales tax exemption of 6 percent or 7 percent, which varies by county local-option authorization, on non-retail sales. The fee, which is estimated to generate nearly $1.8 million in state sales tax revenue over the next three fiscal years, will be charged by county treasurers when a new license application is filed. State officials estimated there were casual sales of 22,500 ATV and off-road vehicles and 13,500 snowmobiles last year in Iowa.

BIODIESEL MANDATE: Most vehicles that burn diesel fuel would be required to use a minimum 5 percent biodiesel blend under a bill that cleared the Iowa Senate Wednesday night. Backers of Senate File 464, which passed by a 31-19 vote, said the renewable fuel will help Iowa soybean farmers, boost demand for B5 fuel, help the environment and reduce U.S. dependence on imported energy. Detractors warned that the mandate would drive up prices, create technology and pump issues, pose problems linked to fuel gelling during cold weather, and cause truckers to bypass Iowa and fuel up their vehicles elsewhere. Opponents also worried that the new standard would make criminals out of fuel retailers by establishing a simple misdemeanor for violators. Supporters rejected efforts to further study the issue, try the B5 fuel on a pilot basis in some eastern Iowa counties, and keep in place an existing tax credit program en route to passing the bill. The legislation now moves to the House for consideration.

IT'S THE LAW: Gov. Chet Culver signed several bills Wednesday, including HF 776 prohibiting the use of false caller identification for campaign purposes and providing penalties. Also getting the governor's signature were SF 225 to allow the purchase of service credit under the statewide fire and police retirement system for prior service under the retirement system, SF 355, which established licensing requirements for mortgage loan originators and SF 440, which relates to prescription drug coverage for health care facility residents eligible for federal veterans affairs benefits.

GENDER BALANCE: Legislation encouraging more women to serve on local government boards and commission by requiring gender balance is on its way to Gov. Chet Culver's desk. The Senate voted 31-19 to approve House File 243 without changes. The bill requires that cities and counties make a good-faith effort to meet the requirement but a provision waives the balance rule for vacancies that exist for more than three months. Detractors said the bill was an example of state officials meddling in the affairs of local government, while backers said it will “develop and grow” local leaders with a policy that's been followed at the state level since 1987.

BICYCLE RALLY: Members of the Iowa Bicycle Coalition held a Statehouse rally in support of legislation designed to beef up safety on state roadways. Earlier this year, the Senate approved legislation that spelled out safe following and passing distances and other provisions, but the measure died in the House. Wednesday ride and rally were prompted by a weekend incident in which a bicycle rider was injured when he was hit by an anhydrous ammonia tank being pulled by a pickup in Madison County.

PRESERVING ARTS JOBS: Gov. Chet Culver on Wednesday announced the creation of the Iowa Arts Jobs Preservation Grant program – an effort supported by the National Endowment for the Arts and funded by the federal economic stimulus money. The governor said the Iowa Arts Council will administer the program in partnership with Arts Midwest, a nine-state non-profit regional arts organization headquartered in Minneapolis. Iowa arts and presenting organizations interested in the program must apply by June 1. Organizations may request up to $25,000 for one-time, non-matching grants. The program offers about $320,000 in grants for projects occurring July 1 through June 30, 2010.

REMEMBERING VIRGINIA TECH: Gov. Chet Culver proclaimed Thursday as Virginia Tech Remembrance Day in Iowa – marking the two-year anniversary of a shooting rampage that claimed 32 lives on that college campus. Culver, who graduated in 1988 from Virginia Tech with a degree in political science, said the tragedy was felt all across the nation. “No matter who you are and where you are from, on that day two years ago, we were all Hokies,” Culver said of his alma mater.

SMOKING DISCIPLINE: A state administrative law judge has ordered the liquor license for VFW Post No. 775 in Ottumwa should be revoked for “an ongoing pattern and practice of noncompliance” with Iowa's Smokefree Air Act. Margaret LaMarche ruled the Ottumwa establishment intentionally conducted business in violation of state law on numerous occasions. The administrative law judge also issued a separate 30-day liquor license suspension for “Smokin Jo's” bar in Ottumwa. According to the proposed decision, the business had a “pattern and practice of noncompliance” from August to November in 2008 but now appears to be complying with the law. LaMarche's two proposed decisions will become final unless appealed to Iowa Alcoholic Beverages Division Administrator Lynn Walding within 30 days. Another Ottumwa bar called The Keg recently agreed to serve a seven-day suspension of its liquor license and pay a civil penalty of $1,000. The suspension is scheduled to begin May 13.

QUOTE OF THE DAY: “We are, we certainly hope, near the end of a long and difficult session and our patience is getting down toward the empty mark and our frustrations are high. We've had a really ugly budget situation to deal with (and) we've had a lot of other tough and controversial issues to deal with. I think we're all a bit frazzled. I love all of you, but I'd just as soon not see any of you for about six weeks. No offense.” – Sen. Herman Quirmbach, D-Ames, during a tumultuous confirmation debate where tempers boiled over a few times Wednesday.

Compiled by Des Moines Bureau staff