2010 Legislative Report - Kirkwood Community College

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IOWA ASSOCIATION OF COMMUNITY COLLEGE TRUSTEES IOWA ASSOCIATION OF COMMUNITY COLLEGE PRESIDENTS

2010 LEGISLATIVE SESSION Summary Report Reflects the Governor’s Final Actions April 30, 2010 This summary of the 2010 Legislative session was prepared by Steve Ovel, Kirkwood Community College, on behalf of and in cooperation with the 2010 Iowa Community College lobbying team and active legislative liaisons consisting of the following individuals: Don Avenson, Tom Cope, Matt Eide, Jerry Fitzgerald, Maggie Fitzgerald McElroy, Mark Joyce, Brice Oakley, John Peterson, Dave Palmer, IACCT Legislative Consultant, and Cindy Schulte, Iowa Valley Community College District. Thank you to IACCT Executive Director MJ Dolan for her valued support and leadership throughout the legislative session. We also thank the following Community College legislative liaisons for their support with their local Community College legislative delegations and their frequent trips to the State Capitol: Ann Watts (DMACC), Julie Stoik (WITCC), Stacy Gibbs (SWCC), Jim Kersten (ICCC), Gary Mohr (EICCD), Bob Morrissey (IHCC), Clark Marshall (ILCC), Don Kohler (IWCC), Gary Kaufman (DMACC), Jan Snyder (NCC), Kathy Flynn (HCC), Sethanne DeGabriele (NIACC), Bill Meck (SCC) and Tracy Kruse (NICC). We would like to extend a special thank you to Ann Watts, DMACC, for her assistance in preparing the weekly legislative updates and bill tracking list and for maintaining the IACCT legislative website and to Gary Kaufman, DMACC, for his capable assistance in preparing bill drafts for the lobbying team throughout the legislative session. We also greatly appreciate the support we received from the Iowa State Education Association lobbying team regarding our state general aid and faculty salary funding requests and the leadership and lobbying teams from the Association of Business and Industry, the Iowa Chamber Alliance and the Iowa Business Council for their effective support in protecting the integrity of the Iowa New Jobs Training Program. Any questions regarding the information in this report should be directed to Steve Ovel at 319398-5466 or [email protected] or the IACCT office.

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Summary of Appropriations Program

FY 2011 Appropriation

Inc./Dec. over net FY 2010

Percent change

State General Aid Faculty Salary Funding Voc-Tech Tuition Grant Program Regional Telecomm. Councils Workforce Development Fund Corrections Education Program ACE Infrastructure Fund Maintenance Infrastructure Fund Small Business Development Ctrs. SBDC Supplemental – GIVF Workforce Training & Economic Development Fund (260C.18A) ACE withholding job credits Total

$158,754,245* $ 825,012 $ 2,413,959* $ 1,065,180 $ 4,000,000 $ 1,858,109 $ 5,500,000 $ 2,000,000 $ 994,929 $ 266,000 $ 9,820,000

($ 16,425,013) $ 0 ($ 98,999) ($ 43,684) $ 0 $ 194,402 $ 0 $ 2,000,000 $ 116,318 ($ 49,000) ($ 980,000)

(9.4%) 0.0% (3.9%) (3.9%) 0.0% 11.7% 0.0% 100.0% 13.2% (10.0%) (9.1%)

$ 6,400,000 $193,897,434

($ 600,000) ($ 15,885,976)

(10.0%) ( 7.6%)

* Includes supplemental funding appropriated in 2010 to restore FY 2010 ATB cuts ARRA Federal Stimulus Funding $ 0 ($ 25,600,000) This funding reflected in the State General Aid reduction above.

(100.0%)

Community College Legislative Priorities 1. Protect our State General Aid Support We secured a restoration of $5.9 million in SGA for FY 2010 as required by the federal stimulus FY 2006 maintenance of effort requirements. We secured an increase of $10.0 million in SGA over the Governor‟s FY 2011 recommendation which reflected the federal stimulus FY 2006 maintenance of effort funding level. Community College SGA funding for FY 2011 is still $16,425,013 below the net FY 2010 level and $24,308,182 below the original FY 2009 level. 2. Protect our Infrastructure and Job Training Support We secured level funding for the ACE Infrastructure Fund of $5.5 million and the Workforce Development Fund of $4.0 million. The Workforce Training and Economic Development Fund was reduced to $9,820,000. We secured the restoration of $2.0 million in maintenance infrastructure funding. The ACE program job credits were cut by $600,000 or ten percent. 3. Protect the Integrity of the Iowa New Jobs Training Program We succeeded in protecting Chapter 260E from any statutory changes. A legislative interim study committee has been established to review the future operation of the program. 2

2010 Legislative Report Index Summary of Appropriations

Page 2

Community College Legislative Priorities

Page 2

Interim Study Committees

Page 5

Appropriations Bills Education Appropriations Bill Page 6 State General Aid Faculty Salary Funding Regional Telecommunications Councils Student Financial Aid Programs Vocational-Technical Tuition Grant Program National Guard Educational Assistance Grant Program Student Work Study Program Private College Iowa Tuition Grant Program All Iowa Opportunity Scholarship Program State University Funding Community College Efficiencies Initiatives and Funding Reduction Report UNI Community College STEM Initiative Non-profit organizations – Open Meetings & Records Interim Study Committee Economic Development Appropriations Bill Page 13 Workforce Development Fund Small Business Development Centers Workforce Development Field Offices New Iowans Centers Offender Reentry Program Workforce Training and Economic Development Fund Page 15 Grow Iowa Values Fund Iowa Power Fund Rebuild Iowa Infrastructure Fund Justice Systems Appropriations Bill Page 17 Corrections Education Infrastructure Appropriations Bill Page 18 Workforce Training and Economic Development Fund Grow Iowa Values Fund ACE Infrastructure Community College Maintenance Infrastructure Funding Chamber of Commerce Funding Supplemental Appropriations Bill Page 20 Setoff Procedures, Depart. of Administrative Services State General Aid Regent Universities 3

Vocational Technical Tuition Grant Program Iowa National Guard Educational Assistance Program Iowa All Opportunity Scholarship Program Reduction of the Grow Iowa Values Fund Salary and Standings Bill Page 22 Iowa Power Fund Apprenticeship Programs Health and Human Services Appropriations Bill Page 22 Food stamp employment and training program Bills of Primary Interest to Community Colleges Retirement Systems Page 23 Iowa Public Employees Retirement System. Government Reorganization Page 24 Community College Accreditation Recommendations – Implementation Review. Community College Accreditation Advisory Committee – Instructional Hours Study. Community College Academic Workload Exception – Fiscal Year 2010-2011. Tax Credit Reform Page 24 Industrial New Jobs Training Interim Study Committee Reduction in ACE job credits from withholding Nurses Aides Checks Page 27 Nursing Workforce and Data Page 29 Veterans Affairs Page 30 Green Cleaning Products Page 31 Iowa Innovation Council Page 32 Public Employee Collective Bargaining Changes Page 33 Bills of Secondary Interest to Community Colleges Child Care Provider Checks Page 35 Campaign Finance Requirements and Reporting Page 35 Plant Closing Notification Page 36 Minority Hiring Page 36 Technical Changes to Election Law Page 37 Veterans Day Holiday for Veterans Page 38 Drivers Education Instructor Issues Page 38 EMS Licensure and Training Programs Page 39 Bills of Interest to Community Colleges not Enacted by the Legislature Facilities Sharing Pilot Program Page 40 Withholding Tax Credits Page 41 Tables Table 1: State General Aid Distribution Page 43 Table 2: State General Aid Distribution Correction Page 44 Table 3: FY 2010 State General Aid History Page 45 Table 4: Faculty Salary Funding History Page 46 Table 5: Workforce Development Fund Distribution Page 47 Table 6: Workforce Training & Economic Development Fund Page 48 Table 7: Maintenance Infrastructure Distribution Page 49 4

Interim Study Committees Iowa New Jobs Training Program Interim Study Committee The legislative council is requested to establish an interim study committee to evaluate the effectiveness of Iowa's industrial new jobs training program and make recommendations on the future of the program. The study committee shall issue a report to the general assembly containing its findings and recommendations by January 15, 2011 (page 25).

Non-profit Organizations – Open Meetings and Open Records Interim Study Committee The legislative council is requested to establish an interim study committee to study the inclusion under the open meetings and open records laws of nonprofit organizations that are supported in whole or in part with public funds or revenues derived from public fees, that were established by, or are operated by, governing boards whose memberships were or are substantially comprised of state or local elected officials or appointees of governmental bodies. The interim study committee shall report its findings and recommendations to the general assembly not later than December 15, 2010 (page 13).

Community College Accreditation Recommendations – Implementation Review The department of education shall review and evaluate the implementation of the recommendations submitted on January 22, 2010, by the community college accreditation advisory committee in its final report to the general assembly. The department shall submit its findings and recommendations to the general assembly on or before December 31, 2010 (page 24)

Community College Accreditation Advisory Committee – Instructional Hours Study The department of education shall convene a working group, whose members shall include at a minimum the members of the community college accreditation advisory committee and the community college faculty advisory committee. The working group shall study the maximum academic credit hour per school term workload appropriate for an instructor beyond the standard workload. The working group shall submit its findings and recommendations to the state board of education and the general assembly on or before December 31, 2010 (page 24).

Racial and Ethnic Minority Teacher Recruitment Study Representatives of the department of education, the area education agencies, and public and private colleges and universities will study the opportunities for the recruitment and retention of racial and ethnic minority teachers (page 35). 5

Education Appropriations Bill: Senate File 2376 Signed by the Governor State General Aid for Community Colleges. Appropriates $158,754,232 in state general aid (SGA) to the community colleges. This is a decrease of $16,425,013 or 9.38% compared to the net FY 2010 appropriation of $175,179,245 which includes $825,012 in FY 2010 faculty salary funding being built into our SGA base. The original state general aid appropriation to community colleges for FY 2010 was $158,678,501. That reflected a reduction in SGA base funding of $21,637,977 from our net FY 2009 appropriation of $180,316,478. The original FY 2009 appropriation was $183,064,414. The FY 2010 community college state general aid appropriation was supplemented with $25,600,000 in one-time federal ARRA stimulus funds resulting in a FY 2010 appropriation of $184,278,501. On October 8, 2009, Governor Culver instituted a 10% across the board cut in state general aid necessitated by declining state revenues. That represented a loss of $15,867,846 in community college SGA reducing our FY 2010 state general aid allocation to $168,410,655. The federal American Recovery and Reinvestment Act (ARRA) stimulus funding has maintenance of effort provisions that requires states to fund public institutions of higher education at a level no lower than their level of state support in FY 2006 in fiscal years 2009, 2010 and 2011. The 10% across the board cut reduced our level of state general aid support below that level. As a result, the legislature funded a supplemental SGA appropriation of $5,943,580 for FY 2010 approved in March 2010 (see Senate File 2366, page 20) necessitated by the federal stimulus funding maintenance of effort requirement. That supplemental appropriation restored SGA in FY 2010 to $174,354,235. SGA Table 1: The FY 2010 SGA net appropriation column in the table below reflects a FY 2010 SGA appropriation of $158,678,501, supplemented with $25,600,000 in one-time federal ARRA stimulus funds, reduced by $15,867,846 by the 10% across the board budget cut authorized by the Governor on October 8, 2009, with a supplemental appropriation of $5,943,580 approved in March 2010 necessitated by the federal stimulus funding maintenance of effort requirement, and the $825,012 in faculty salary funding being built into our FY 2010 base. See Table 1 for a detailed spreadsheet (page 40).

Northeast Iowa North Iowa Area Iowa Lakes Northwest Iowa Central

FY 2010 SGA Net Appropriation

FY 2011 SGA Appropriation

Decrease over FY 2010 Net Base

$ $ $ $ $

$ $ $ $ $

($ ($ ($ ($ ($

8,740,620 9,394,934 8,656,220 4,249,291 9,529,120 6

7,883,981 8,436,896 7,768,728 3,815,063 8,716,704

856,639) 958,038) 887,492) 434,228) 812,416)

Iowa Valley Hawkeye Eastern Iowa Kirkwood Des Moines Area Western Iowa Tech Iowa Western Southwestern Indian Hills Southeastern

$ $ $ $ $ $ $ $ $ $

8,273,482 12,289,188 15,277,649 26,453,584 26,470,231 10,038,153 10,236,951 4,311,116 13,520,379 7,738,328

Total

$175,179,245

$ $ $ $ $ $ $ $ $ $

7,429,793 11,063,319 13,761,226 24,208,455 24,375,295 9,034,857 9,285,726 3,872,747 12,139,931 6,961,511

$158,754,232

($ ($ ($ ($ ($ ($ ($ ($ ($ ($

843,689) 1,225,869) 1,516,423) 2,245,129) 2,094,935) 1,003,296) 951,225) 438,369) 1,380,447) 776,817)

($ 16,425,013)

SGA Table 2: The FY 2011 SGA appropriation in Table 1 above was distributed with a formula error in the spreadsheet used by the Department of Education. That error was not identified until after the Education Appropriations Bill was passed by the legislature. The corrected distribution is shown in the second column of Table 2 below. This correction to the FY 2011 SGA will have to be made by the 2011 Legislature in the Supplemental Appropriations Bill and the adjustments listed below in column three made in the fourth quarter monthly SGA distributions. Distributions prior to that time will be based on the appropriation levels provided for in SF 2376 as shown in Table 1 above. See Table 2 for a detailed spreadsheet (page 41). FY 2011 SGA Appropriation Incorrect

FY 2011 SGA Appropriation Correct

Difference to be Adjusted in 2011 Supplemental Bill

Northeast Iowa North Iowa Area Iowa Lakes Northwest Iowa Central Iowa Valley Hawkeye Eastern Iowa Kirkwood Des Moines Area Western Iowa Tech Iowa Western Southwestern Indian Hills Southeastern

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ ($ ($ ($ $ ($ ($ ($ $ $ ($ $ ($ ($ ($

Total

$158,754,232

7,883,981 8,436,896 7,768,728 3,815,063 8,716,704 7,429,793 11,063,319 13,761,226 24,208,455 24,375,295 9,034,857 9,285,726 3,872,747 12,139,931 6,691,511

7,888,455 8,408,384 7,736,496 3,801,124 8,735,448 7,404,285 11,051,482 13,756,305 24,263,489 24,481,690 9,025,883 9,294,922 3,860,407 12,096,214 6,949,647

$158,754,232

$

4,474 28,512) 32,233) 13,939) 18,745 25,507) 11,837) 4,921) 55,034 106,395 8,974) 9,196 12,340) 43,717) 11,864) 0

See Table 3 for a detailed spreadsheet detailing the community college state general aid history for FY 2010 (page 42). 7

State General Aid Appropriations History: FY 1988 FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

FY 2011

$ 75,399,923 $ 80,351,182 $ 87,275,326 $ 99,007,776 $103,957,683 $105,999,720 $111,520,721 $115,470,717 $120,871,270 $126,006,271 $130,582,051 $135,366,156 $141,577,403 $147,577,403 $137,585,680 $138,585,680 $139,260,763

+$ 4,951,259 +$ 6,924,144 +$11,732,450 +$ 4,949,907 +$ 2,042,037 +$ 5,521,001 +$ 3,949,996 +$ 5,400,553 +$ 5,135,001 +$ 4,575,780 +$ 4,784,105 +$ 6,211,247 +$ 6,000,000 ($ 9,991,723) +$ 1,000,000 +$ 675,083 +$ 762,675 one time supplement ($ 3,481,519) 2 ½% ATB cut +$ 4,000,000 +$ 9,800,000 +$10,000,000 +$12,383,170 +$ 9,100,000 ($ 2,745,936 )1 ½% ATB cut ($21,637,977) +$25,600,000 ARRA one time supp. ($15,867,846) 10% ATB cut, Oct. 8, 2009 +$ 5,943,580 ARRA MOE supplemental + 825,012 Fac. Sal. added to SGA base ($16,425,013)

$135,779,244 $139,779,244 $149,579,244 $159,579,244 $171,962,414 $183,062,414 $180,316,478 $158,678,501 $184,278,501 $168,410,655 $174,354,235 $175,179,245 $158,754,232

Community College Faculty Salaries. Appropriates $825,012 for distribution to community colleges to supplement faculty salaries. This is $91,668 or 10% less than the FY 2010 appropriation and reflects the 2010 ten percent SGA across the board cut carried into FY 2011. This is the fourth year for this appropriation. Future annual appropriations are uncertain although there is a tentative commitment by legislative leadership to provide additional funding in future years in an effort to increase community college faculty salaries to the national average. These funds are to be built into our base SGA appropriation for all future years. This was done in FY 2008 and FY 2010 but was not done for the FY 2009 appropriation due to the budget cuts experienced in the FY 2010 appropriation process. See Table 4 for a spreadsheet detailing the community college faculty funding history (page 43).

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Community College Faculty Salary Funding History: FY 2008 $2,000,000 FY 2009 $1,500,000 Was not built into our base as required FY 2010 $ 916,680 ($ 91,668) 10% ATB cut, Oct. 8, 2009 $ 825,012 Net allocation FY 2011 $ 825,012 Limit on future reductions in funding. The bill provides that moneys appropriated by the General Assembly to the Department of Education for community college instructor salaries are not subject to a future uniform reduction in accordance with section 8.31, an across the board budget cut. This provision is effective upon enactment of the bill. The distribution of faculty salary funding will be determined by the Department of Education at a later date. See Iowa Code section 260C.18D for background on the faculty salary distribution formula. Regional Telecommunications Councils. Appropriates $1,065,180 to the Regional Telecommunications Councils to provide technical assistance for ICN network classrooms, planning and troubleshooting for local area networks, scheduling of video sites and other related support activities. This is a decrease of $43,684 compared to the net FY 2010 appropriation for a general reduction of 3.94%. The regional distribution is based on a per region amount plus a per site amount. The final distribution for FY 2011 will be determined by the Educational Telecommunications Council. Regional Telecommunications Councils Appropriations History: FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$1,750,000 $1,858,192 $1,858,192 $1,692,188 $1,522,393 $1,272,285 $1,272,285 $1,240,478 $1,240,478 $1,240,478 $1,364,525 $1,364,525 $1,232,071 $1,108,864 $1,065,180

Reduced by 10% ATB cut

Vocational-Technical Tuition Grant Program. Appropriates $2,413,959 for the VocationalTechnical Tuition Grant Program. This is a decrease of $98,999 compared to the net FY 2010

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appropriation for a general reduction of 3.94%. The current funding level provides average grants of $800 to an estimated 3,200 students. The maximum grant is $1,200. Vocational-Technical Tuition Grant Program Appropriations History: Fiscal Year FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

FY 2011

Funding

Applicants

$1,875,000 $2,244,197 $2,482,400 $2,482,400 $2,482,400 $2,375,657 $2,533,115 $2,533,115 $2,533,115 $2,533,115 $2,783,115 $2,783,115 $2,512,958 $2,261,662 $2,512,958 $2,413,959

23,499 21,581 21,747 19,108 14,307 19,523 20,888 21,476 20,525

Students Assisted 5,217 5,859 5,890 6,051 5,899 2,767 2,642 2,891 2,961 2,950 3,397 3,211

Average Award $ 416 $ 383 $ 421 $ 410 $ 403 $ 859 $ 899 $ 876 $ 850 $ 850 $ 817 $ 836

Reduced by 10% ATB cut Restored through supplemental appropriation

National Guard Educational Assistance Program. Appropriates $3,186,233 to the College Student Aid Commission for the National Guard Tuition Aid Program. This is an increase of $110,450 compared to the estimated net FY 2010 appropriation. The current funding level provided average awards of $3,322 to an estimated 1,269 students in FY 2009. Maximum award is limited to the cost of attendance at Regents universities. Student Work Study Program. Funding for this program was eliminated in FY 2010. This was a decrease of $980,075 compared to the estimated net FY 2009 appropriation. This standing program was eliminated in FY 2002 with a loss of $2,750,000 in funding. Private College Iowa Tuition Grant Program. Appropriates $44,013,448 to the Iowa Tuition Grant Program in support of students attending Iowa‟s private colleges and universities. Appropriates $4,650,487 to the Iowa Tuition Grant Program to for students attending for profit private institutions. All Iowa Opportunity Scholarship Program. Appropriates $2,403,949 for the All Iowa Opportunity Scholarship Program. Appropriates $594,383 for the All Opportunity Foster Care Grant Program.

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State University Funding. Appropriates to the Regents $542,035,206 in state general aid for all university programs. Community College Efficiencies Initiatives and Funding Reduction Report. The Board of Directors of each community college shall submit to the Department of Education on or before October, 1, 2010, a report which provides details on any initiatives implemented by the community college to create greater efficiency within the community college during the 20092010 fiscal year, and details on the methods by which the community college implemented budget reductions ordered by the Governor pursuant to executive order number 19 issued October 8, 2009 [the 10% across the board cut]. The Department shall compile and summarize the reports in a report to be submitted to the State Board of Education and the General Assembly on or before December 15, 2010. University of Northern Iowa appropriation: Science, technology, engineering, and mathematics (STEM) collaborative initiative. Appropriates $1,800,000 for purposes of establishing a science, technology, engineering, and mathematics (STEM) collaborative initiative: From the moneys appropriated in this lettered paragraph up to $300,000 shall be allocated for salaries, staffing, and institutional support. The remainder of the moneys appropriated in this lettered paragraph shall be expended only to support activities directly related to recruitment of kindergarten through grade 12 mathematics and science teachers and for ongoing mathematics and science programming for students enrolled in kindergarten through grade 12. The University of Northern Iowa shall work with the community colleges to develop STEM professional development programs for community college instructors and STEM curriculum development. Iowa Association of School Boards Issues. Requires each school board that pays membership dues to the Iowa association of school boards to annually report to the local community and to the department of education: The amount the board pays in membership dues to the Iowa association of school boards, The amount of any fees paid and revenue or dividend payments received for services the board receives from the association or from any of the association's affiliated for-profit entities, and The products or services the school district received inclusive with membership in the association. The bill requires the association to annually publish a listing of the total revenue it receives from each school district resulting from the payment of membership fees and the sale of products and services to the school district by the association or its affiliated for-profit entities. The association must submit to the general assembly copies of all reports the association provides to the U.S. department of education relating to federal grants and grant amounts that the association or its affiliated for-profit entities administer or distribute to school districts. The bill also makes the IASB subject to the Iowa open meetings and public records laws. These requirements pertain only to K-12 school boards and school corporations. Similar language pertaining to community colleges was amended into the bill by the House but then 11

removed by the Senate and replaced with the interim study committee to study the issue. At this time we are uncertain if the following requirements pertain to our community colleges or the Iowa Association of Community College Trustees who pays our dues to the IASB. The bill contains the following language. Underlining is new statutory language: Section 279.38, Code 2009, is amended to read as follows: 279.38 Membership in association of school boards. 1. Boards of directors of school corporations may pay, out of funds available to them, reasonable annual dues to the Iowa association of school boards. Each board that pays membership dues to the Iowa association of school boards shall annually report to the local community and to the department of education the amount the board pays in annual dues to the Iowa association of school boards, the amount of any fees paid and revenue or dividend payments received for services the board receives from the association or from any of the association's affiliated for-profit entities, and the products or services the school district received inclusive with membership in the association. 2. The financial condition and transactions of the Iowa association of school boards shall be audited in the same manner as school corporations as provided in section 11.6. In addition, annually the Iowa association of school boards shall publish a listing of the school districts and the annual dues paid by each, the total revenue the association receives from each school district resulting from the payment of membership fees and the sale of products and services to the school district by the association or its affiliated for-profit entities, and shall publish an accounting of all moneys expended for expenses incurred by and salaries paid to legislative representatives and lobbyists of the association. In addition, the association shall submit to the general assembly copies of all reports the association provides to the United States department of education relating to federal grants and grant amounts that the association or its affiliated for-profit entities administer or distribute to school districts. The Iowa association of school boards is subject to chapters 21 and 22 relating to open meetings and public records. 3. Membership in such an Iowa association of school boards shall be limited to those duly elected members of the boards of directors of local school corporations. Section 279.38A, Code 2009, is amended to read as follows: 279.38A Membership in other organizations -- reporting requirements. 1. Duly elected members of boards of directors and designated administrators of school corporations may join, including the payment of dues, and participate in local, regional, and national organizations which directly relate to the functions of the board of directors. 2. Each board that pays membership dues to an organization in accordance with this section shall annually report to the local community and to the department of education the amount the board pays in annual dues to the organization, the amount of any fees paid and revenue or dividend payments received for services the board receives from the organization, and the products or services the school district received inclusive with membership in the organization. If the organization administers federal education grants on behalf of school districts or distributes federal education grant funds to school districts, the organization shall 12

submit to the general assembly copies of all reports the organization provides to the States department of education, on the date on which each such report is provided to the United States department of education, relating to federal grants and grant amounts that the organization administers for or distributes to school districts. The governing board of the organization is subject to chapters 21 and 22 relating to open meetings and public records. Non-profit organizations – Open meetings and open records interim study committee. The legislative council is requested to establish an interim study committee to study the inclusion under the open meetings and open records laws of nonprofit organizations that are supported in whole or in part with public funds or revenues derived from public fees, that were established by, or are operated by, governing boards whose memberships were or are substantially comprised of state or local elected officials or appointees of governmental bodies. The interim study committee shall report its findings and recommendations to the general assembly not later than December 15, 2010.

Economic Development Appropriations Bill: House File 2522 Signed by the Governor Workforce Development Fund. Appropriates $4,000,000 from the Workforce Development Fund Account to the Iowa Department of Economic Development‟s (DED) Workforce Development Fund program. This is level funding with FY 2010. By statute, $3,000,000 is distributed by formula to the community colleges for job training projects authorized under Chapter 260F and $1,000,000 is distributed to those community colleges with eligible apprenticeship programs also authorized under Chapter 260F and based on each community college‟s proportional share of eligible contact hours from the previous year. That distribution will be determined after the FY 2010 numbers are certified. The bill allows the DED to use up to $400,000 of these funds for the administration and four FTE positions in support of these programs however they will draw their administrative dollars from their 260E one percent funds instead. This transfer of funds is authorized in the bill. From the $3,000,000 260F allocation, $300,000 will be taken and placed in the community college business consortium training fund leaving $2,700,000 for distribution based on each community college‟s proportional share of SGA in FY 2010 as provided for by administrative rule. These are the official numbers as determined by the Department of Education. See Table 5 for a detailed spreadsheet (page 44). FY 2011 Allocation Northeast Iowa North Iowa Area Iowa Lakes Northwest Iowa Central Iowa Valley Hawkeye Eastern Iowa Kirkwood

$ $ $ $ $ $ $ $ $

134,774 144,782 133,416 65,486 146,842 127,506 189,426 235,456 407,709 13

Des Moines Area Western Iowa Tech Iowa Western Southwestern Indian Hills Southeastern

$ $ $ $ $ $

408,041 154,683 157,793 66,446 208,373 119,269

Total

$2,700,000

Workforce Development Fund Appropriations History: FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$4,250,000 $6,850,000 $8,800,000 $8,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000

Cap reduced from $10.0 to $8.0 million Cap reduced from $8.0 to $4.0 million

Small Business Development Centers (ISU Economic Development Programs). Appropriates $2,575,983 to the economic development programs at Iowa State University which represents an increase of $100,000 compared to the estimated net FY 2010. The bill requires an allocation of $994,929 for the Small Business Development Centers, many of which are located at our states Community Colleges. This is an increase of $116,318 over the net FY 2010 level of funding. An increase of $100,000 is intended to increase assistance to small businesses for providing one-on-one business planning and marketing counseling. The Grow Iowa Values Fund also appropriates $350,000 in supplemental funding for the SBDC‟s in each of the next five years. That allocation was reduced to $266,000 for FY 2011. Small Business Development Centers Appropriations History:

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003

General Fund $1,222,880 $1,235,880 $1,248,329 $1,211,869 $1,147,192 $ 459,831

GIVF

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FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$ 460,000 $ 550,000 $ 550,000 $ 650,000 $ 900,000 $1,060,000 $ 976,234 $ 994,929

$350,000 $350,000 $350,000 $350,000 $315,000 $266,000

Workforce Development Field Offices. Appropriates $11,343,047 from the general fund to support the state‟s system of rural and satellite workforce development center field offices, the New Iowans Centers and the IWD state board. This is an increase of $547,573 or 5.1% compared to the estimated net FY 2010 appropriation. Appropriates $6,500,000 from the Unemployment Compensation Reserve Fund to the Department for Field Offices. Appropriates $662,427 from the Special Employment Security Contingency Fund for the Workforce Development Field Offices. Specifies that $11,110,137 of the General Fund appropriation for Workforce Development Operations is to be used for the operation of Field Offices. The result is total funding for the Field Offices from all funding sources of $18,272,564. This is an increase of $776,348 compared to the estimated net FY 2010. Prohibits the IWD from reducing the number of Field Offices below the number in operation on January 1, 2009. There are currently 55 Field Offices, including one-stop offices and State offices. New Iowans Centers. The Department of Workforce Development (IWD) is directed to maintain New Iowans Centers that offer one-stop services to deal with the multiple issues related to immigration and employment. The centers are designed to support workers, businesses, and communities with information, referrals, job placement assistance, translation, language training, and resettlement, as well as technical and legal assistance on such issues as forms and documentation. Through the coordination of local, state, and federal service providers, and through the development of partnerships with public, private and nonprofit entities with established records of international service, these centers shall seek to provide a seamless service delivery system for new Iowans. Offender Reentry Program. Appropriates $322,261 to support an initiative begun in FY 2009 that will provide for the development and administration of an offender reentry program to provide offenders with employment skills. IWD will partner with the Department of Corrections to provide staff within the correctional facilities to improve offender‟s abilities to find and retain productive employment. This is level funding with FY 2010.

Workforce Training and Economic Development Fund (260C.18A) See Senate File 2389 and Senate File 2385 Grow Iowa Values Fund (GIVF). A standing appropriation of $7.0 million is deposited annually from the $50.0 million GIVF established in 2005, into the Community College 15

Workforce Training and Economic Development Fund accounts established under Section 260C.18A. FY 2011 will be the sixth year of this standing appropriation. The GIVF appropriation is now being paid from the Rebuild Iowa Infrastructure Fund and not the General Fund. The GIVF appropriation for FY 2011 was reduced by 24% to $38,000,000 reducing the community college allocation to $5,320,000 for FY 2011. See Senate File 2389 (page 18). Iowa Power Fund (IPF). A standing appropriation of $2,500,000 is deposited annually from the $25.0 million IPF established in 2007, to the Workforce Training and Economic Development Fund accounts established under Section 260C.18A for a period of four years. FY 2011 will be the fourth and last year of that standing appropriation. The IPF appropriation was reduced to $21,600,000 for FY 2011 but Section 469.10 of the Iowa Code requires that the full $2,500,000 be deposited into the Workforce Training and Economic Development Fund in FY 2011. See House File 2531 (page 22). Rebuild Iowa Infrastructure Fund (RIIF). Appropriates $2,000,000 from the Rebuild Iowa Infrastructure Fund for deposit into the Community College Workforce Training & Economic Development Fund created for each Community College in Section 260C.18A, notwithstanding Section 8.57, subsection 6, paragraph „c”, which eliminates the need for the funding to be used only for vertical infrastructure purposes. This is the fourth year of this annual appropriation from the RIIF and level funding compared to FY 2010. See Senate File 2389 (page 18). These three appropriations result in a total FY 2011 appropriation of $9,820,000, a reduction in funding of $980,000 from the FY 2010 appropriation and will be distributed as follows using the funding distribution formula as provided for in Section 260C.18A. See Table 6 for detailed spreadsheet (page 45). FY 2010 FY 2011 Allocation Allocation Northeast Iowa North Iowa Area Iowa Lakes Northwest Iowa Central Iowa Valley Hawkeye Eastern Iowa Kirkwood Des Moines Area Western Iowa Tech Iowa Western Southwestern Indian Hills Southeastern Total

$ 496,239 $ 440,312 $ 392,042 $ 199,535 $ 678,794 $ 390,257 $ 652,007 $ 848,005 $2,074,523 $2,215,230 $ 541,933 $ 644,469 $ 203,461 $ 623,284 $ 399,909 $10,800,000

$ 455,566 $ 413,527 $ 367,491 $ 184,668 $ 641,181 $ 363,278 $ 599,031 $ 766,889 $1,790,466 $2,005,798 $ 490,737 $ 593,714 $ 191,481 $ 589,049 $ 367,125 $9,820,000

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Workforce Training and Economic Development Fund Appropriations History: Grow Iowa Power Fund Values Fund FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$ $ $ $ $ $ -$ $ $

3,758,065 3,106,160 7,000,000 7,000,000 7,000,000 7,000,000 1,400,000 6,300,000 5,320,000

Rebuild Iowa Total Infrastructure Fund

$ 2,500,000 $ 2,000,000 $ 2,500,000 $ 2,000,000 20% flood recovery cut $ 2,500,000 $ 2,000,000 $ 2,500,000 $ 2,000,000

$11,500,000 $11,500,000 $10,100,000 $10,800,000 $ 9,820,000

Justice Systems Appropriations Bill: Senate File 2378 Signed by the Governor Corrections Education. Appropriates $1,558,109 for educational programs for inmates at state penal institutions. This is a $194,402 increase over the net FY 2010 appropriation of $1,363,707. This appropriation is distributed through five community colleges serving those institutions. It specifies that it is the intent of the General Assembly that these funds be used only for inmate education. It requires the Department of Corrections (DOC) to consult with community colleges located within the area of the prisons regarding how to maintain the high school completion, high school equivalency diploma, adult literacy, and adult basic education programs at the institutions. It requires the DOC to establish guidelines and procedures to prioritize admission to educational and vocational programs to facilitate inmate‟s successful release from the correctional facility. It permits the DOC to transfer funds from Iowa Prison Industries for educational programs for inmates. Requires the DOC to transfer at least $300,000 from Canteen Funds to the Corrections Education Program. Corrections Education Appropriations History: FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

$2,950,600 $2,950,600 $3,294,775 $3,294,775 $3,075,014 $ 100,000 $1,000,000 $1,008,358 $1,008,358 $1,070,358 $1,570,358

Program funding eliminated Program funding partially restored

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FY 2009 FY 2010 FY 2011

$1,870,358 $1,858,109 $1,663,707 $1,858,109

Includes Canteen Fund funding Includes Canteen Fund funding Reflects ATB cut and includes canteen funding Includes Canteen Fund funding

Infrastructure Appropriations Bill: Senate File 2389 Signed by the Governor Workforce Training and Economic Development Fund - Rebuild Iowa Infrastructure Fund (RIIF). Appropriates $2,000,000 from the RIIF for deposit into the Community College Workforce Training & Economic Development Fund accounts created for each community college in Section 260C.18A, notwithstanding Section 8.57, subsection 6, paragraph „c”, which eliminates the need for the funding to be used only for vertical infrastructure purposes. This is the fourth year of this annual appropriation from the RIIF and level funding compared to FY 2010. Grow Iowa Values Fund - Rebuild Iowa Infrastructure Fund. Appropriates $38,000,000 from the RIIF for deposit into the GIVF. This is a reduction of $12,000,000 or 24% from the annual standing appropriation. The bill specifies that the Community College Workforce Training & Economic Development Funds are to receive an allocation of $5,320,000 from this appropriation. This is a reduction of $980,000 or 15.6% from the FY 2010 allocation of $6,300,000. Accelerated Career Education (ACE) Infrastructure Program. Appropriates $5,500,000 from the Revenue Bonds Capitals II Funds (RBC2) Appropriations for infrastructure improvements at community colleges associated with implementing ACE Programs authorized under Chapter 260G. This is level funding compared to FY 2010. There is no distribution language in the bill but it is assumed that the funding will be distributed equally to all community colleges as it has been in prior years. Each community college will be allocated $366,667. Historically, any unencumbered or unobligated funds, remaining after April 1, 2006, will be made available for use by other community colleges. Accelerated Career Education (ACE) Program Infrastructure Appropriations History: FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$7,500,000 $5,300,000 $2,500,000 $2,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 18

Community College Maintenance Infrastructure Funding. Appropriates $2.0 million from the Revenue Bonds Capitals II Funds (RBC2) Appropriations for major renovation and major repair needs, including health, life, and fire safety needs, and for compliance with the federal Americans with Disabilities Act, for state buildings and facilities under the purview of the state‟s community colleges. There is no distribution language in the bill but it is assumed that the funding will be allocated to the community colleges based upon the SGA distribution formula established in Section 260C.18C as it was in the previous year‟s appropriations. Community colleges received $2.0 million each year for fiscal years FY 2007 through FY 2009 from several funds for this purpose. No funding was received in FY 2010. The FY 2011 appropriation will be distributed as follows using the SGA funding distribution formula as provided for in the previous year‟s appropriation language. These are the official numbers as determined by the Department of Education. See Table 7 for a detailed spreadsheet (page 46). FY 2011 Allocation Northeast Iowa North Iowa Area Iowa Lakes Northwest Iowa Central Iowa Valley Hawkeye Eastern Iowa Kirkwood Des Moines Area Western Iowa Tech Iowa Western Southwestern Indian Hills Southeastern

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

99,832 107,246 98,826 48,508 108,772 94,449 140,316 174,412 302,007 302,253 114,580 116,883 49,219 154,350 88,347

Total

$2,000,000

Chamber of Commerce Funding. At the end of the legislative session, Kirkwood and NIACC were approached by Senate Legislative leaders asking for their help in their effort to secure infrastructure funding for new Chamber of Commerce facilities in Cedar Rapids and Mason City that were affected by the 2008 floods. Both Chambers are building new Chamber of Commerce Centers. Because of concerns from some House members about approving funding for Chamber of Commerce buildings in these two flood recovery areas, Kirkwood and NIACC agreed to the request of Senate Democrats to have the appropriations made to their two colleges and to then 19

pass the funding through for use soley on these two Chamber projects. The appropriations will be targeted for small business and incubator activities that will be provided for in the new facilities. The appropriations are as follows: To North Iowa Area Community College for the construction of a small business center for economic development: $ 1,500,000 To Kirkwood Community College for the construction of a small business center for economic development: $ 1,200,000 Minority and Female Owned Businesses and Bond Issuance Services. The following new section is added to the Iowa Code: Section 73.14. Minority-owned and female-owned businesses--bond issuance services. 1. The state, board of regents institutions, counties, townships, school districts, community colleges, cities, and other public entities, and every person acting as contracting agent for any such entity, shall, when issuing bonds or other obligations, make a good-faith effort to utilize minority-owned and female-owned businesses for attorneys, accountants, financial advisors, banks, underwriters, insurers, and other occupations necessary to carry out the issuance of bonds or other obligations by the entity. 2. For purposes of this section: a. "Female-owned business" means a business that is fifty-one percent or more owned, operated, and actively managed by one or more women. b. "Minority-owned business" means a business that is fifty-one percent or more owned, operated, and actively managed by one or more minority persons.

Supplemental Appropriations Bill: Senate File 2366 Signed by the Governor Effective upon Enactment Setoff Procedures, Department of Administrative Services. Requires the community colleges to prescribe to setoff procedures to permit a person to contest the amount of liability to a community college. Section 8A.504, subsection 2, Code 2009, is amended by adding the following new paragraph: NEW PARAGRAPH. k. If the alleged liability is owing and payable to a community college and setoff pursuant to this section is sought, both of the following shall apply: (1) In addition to satisfying other applicable setoff procedures established under this subsection, the community college shall prescribe procedures to permit a person to contest the amount of the person's liability to the community college. Such procedures shall be consistent with and ensure the protection of the person's right of due process under Iowa law. (2) The collection entity shall, except for the procedures prescribed pursuant to subparagraph (1), prescribe any other applicable procedures concerning setoff as provided in this subsection. Supplemental Appropriation for Community College State General Aid for FY 2010. FY 2010 SGA funding of $5,943,581 was restored to community colleges, allocated proportionately 20

to the FY 2010 funding received by each community college. This increases the FY 2010 funding for community colleges to $149,579,244 when combined with the community colleges faculty salaries appropriation. This amount equals the FY 2006 funding level for community colleges and is intended to meet maintenance of effort requirements for the federal American Recovery and Reinvestment Act (ARRA) funding as explained below: Title XIV – State Fiscal Stabilization Fund (page165) Section 14005. State Applications (page 168) (d) Assurances – An application under subsection (b) shall include the following assurances: (1) Maintenance of Effort (B) Higher Education – The State will, in each of fiscal years 2009, 2010, and 2011, maintain State support for public institutions of higher education (not including support for capital projects or for research or development or tuition and fees paid by students) at least at the level of such support in fiscal year 2006. The effect of this language in the federal appropriations bill for the federal stimulus funding the state is receiving prohibits the state from reducing SGA below the FY 2006 level. The mid-year 10% across the board cut resulted in that outcome. The SGA appropriation in FY 2006 was $149,579,244. The FY 2010 SGA base after the 10% across the board cut is $142,810,651. This is a difference of $6,768,593 which includes faculty salary funding that was not appropriated until after FY 2006 and is not reflected in the amount restored. FY 2010 SGA Supplemental Appropriation Northeast Iowa North Iowa Area Iowa Lakes Northwest Iowa Central Iowa Valley Hawkeye Eastern Iowa Kirkwood Des Moines Area Western Iowa Tech Iowa Western Southwestern Indian Hills Southeastern

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

295,830 319,018 293,705 144,267 323,678 280,854 416,757 518,546 897,715 897,310 341,002 347,161 146,274 458,905 262,558

Total

$ 5,943,580

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Regent Universities. Restores $30.4 million in funding to the three Regents universities to reach their FY 2006 level. Vocational Technical Tuition Grant Program. Restores $251,296 in funding to the community college Vocational Technical Tuition Grant Program effective December 14, 2009. Iowa National Guard Educational Assistance Program. Restores $241,120 in funding to the National Guard Educational Assistance Program effective December 14, 2009. Iowa All Opportunity Scholarship Program. Restores $250,254 in funding to the Iowa All Opportunity Scholarship Program effective December 14, 2009. Reduction of the Grow Iowa Values Fund. Reduces the $45.0 million GIVF appropriation for FY 2010 was reduced by $17,500,000 in unexpended funds and carried over to FY 2011. Reduces the FY 2010 allocation to the DED by $17,500,000 from $28,800,000 to 11,300,000. The adjusted allocation changes the amount for the DED to be used for financial assistance programs. Allocations to the community college Workforce Training and Economic Development Fund were not impacted by this reduction.

Standings Bill: House File 2531 Signed by the Governor Iowa Power Fund (IPF). Appropriates $19,600,000 for FY 2010. An additional $2,000,000 was appropriated through an amendment for a total appropriation of $21,600,000. Of this amount, $2,500,000 is invested in the community college Workforce Training and Economic Development Fund. This is the last year of this standing appropriation. Apprenticeship Training Programs. Iowa Code Section 260C.44 is amended to refer to the “Office of Apprenticeship” as opposed to the “Bureau of Apprenticeship and Training.”

Health and Human Services Appropriations Bill: House File 2526 Signed by the Governor Kirkwood Community College and Des Moines Area Community College have been working with Iowa Workforce Development and the Department of Human Services for the past three years to develop a pilot program utilizing the 50-50 match program in the Federal Supplemental Nutrition Assistance Program Employment and Training Program. Both community colleges will expend their own discretionary funding into the pilot programs. The language below is needed to amend the FSET plan that is submitted to the Department of Agriculture. If the pilots prove successful, the program will be expanded to all community colleges on a voluntary statewide basis. For the food stamp employment and training program: $68,059 (1) The department shall amend the food stamp employment and training state plan in order to maximize to the fullest extent permitted by federal law the use of the 50-50 match provisions for the claiming of allowable federal matching funds from the United States 22

department of agriculture pursuant to the federal food stamp employment and training program for providing education, employment, and training services for eligible food assistance program participants, including but not limited to related dependent care and transportation expenses. (2) The department shall implement measures to expand usage of the federal food assistance programs administered by the department and to appropriately determine eligibility for the programs by raising the income limit to the extent allowed under federal requirements and eliminating the asset test. The eligibility determination measures shall include but are not limited to checking applications to identify persons convicted of crimes who are incarcerated in correctional facilities and jails or are otherwise ineligible for food assistance programs under federal requirements for having committed a crime.

Other Bills of Primary Interest to Community Colleges Retirement Systems: House File 2518 Signed by the Governor Various Effective Dates Iowa Public Employees Retirement System. Implements recommendations from the IPERS Benefits Advisory Committee to increase contributions and change some benefits for regular IPERS members. The changes are aimed at balancing IPERS‟ long-range funding. The 30-year projections indicate the benefits employees are earning are growing faster than the assets that will be available to pay benefits when employees retire. Contribution rate adjustments, effective July 1, 2011. Maximum change each year of 1.0 percentage point up or down (now: changes limited to 0.5 percentage point). Rates based on actuary‟s annual valuation that examines IPERS‟ funding. Contribution rate, effective July 1, 2011. 13.45 percent of wages (now: would be 11.95 percent on that date). Employees continue to pay 40 percent of the contribution; employers 60 percent). Benefits, effective July 1, 2012. Seven years to vest (now: four years). Average of the highest five years‟ wages in benefit formula (now: highest three). Reduce benefits 6 percent a year if a member retires before normal retirement age (now: benefits reduced 3 percent for each year retired before normal retirement age). o Normal retirement age defined as age 65, Rule of 88 (age + years of service = 88), or Rule of 62/20 (age 62 with 20 years of service). No changes allowed. Monthly benefits to current retirees. No changes were proposed for the following: Most parts of the benefit plan for regular members, such as: o Normal retirement age as defined above. o Benefit multiplier used to determine benefit amounts (2%/year for first 30 years of IPERS covered employment, 1%/year for years 31-35). 23

o Lifetime benefit guarantee at retirement. o Death benefits. o Disability benefits.

State Government Reorganization Bill: Senate File 2088 Signed by the Governor Effective July 1, 2010 The bill includes the following intent language: Community College Accreditation Recommendations – Implementation Review. The department of education shall review and evaluate the implementation of the recommendations submitted on January 22, 2010, by the community college accreditation advisory committee in its final report to the general assembly. The department shall submit its findings and recommendations to the general assembly on or before December 31, 2010. Community College Accreditation Advisory Committee – Instructional Hours Study. The department of education shall convene a working group, whose members shall include at a minimum the members of the community college accreditation advisory committee and the community college faculty advisory committee. The working group shall solicit comments from each of the community college quality faculty committees. The working group shall study the maximum academic credit hour per school term workload appropriate for an instructor beyond the standard workload. The working group shall submit its findings and recommendations to the state board of education and the general assembly on or before December 31, 2010. Community College Academic Workload Exception – Fiscal Year 2010-2011. Notwithstanding section 260C.48, subsection 2, a faculty member who has in previous fiscal years exceeded the eighteen credit hour standard set pursuant to section 260C.48, subsection 2, may continue to exceed the eighteen credit hour workload standard for the 2010-2011 fiscal year if the faculty member elects to teach beyond the eighteen credit hour workload standard.

Tax Credit Reform: Senate File 2380 Signed by the Governor Effective July 1, 2010 This bill relates to the administration and review of certain tax credit, withholding credit, division of revenue, and other financial assistance programs. It is believed this bill deals with the Iowa New Jobs Training Program (260E) and the Accelerated Career Education Program (260G) in a fair and equitable manner and the support that was received from House and Senate leadership to insure no statutory changes were made to the 260E program during this legislative session is greatly appreciated. The bill has three provisions that directly impact our job training programs. The establishment of a Legislative Interim Study Committee to review the 260E program. It is likely the committee will be scheduled to meet in mid to late summer. The details follow

24

below. There are no program sunset provisions in the bill pertaining to community college programs. The lowering of the existing $6.0 million job credit from withholding allocation cap on the Accelerated Career Education Program by 10% to $5.4 million effective July 1, 2010, a loss of $600,000 in ongoing funding. Almost all of the state‟s tax credit programs are being reduced by 10% or more to reflect the 10% across the board cut sustained by all state general aid funded programs last year. It is anticipated that each of our current ACE allocations will be reduced by 10% going into FY 2011 and existing ACE agreements will need to be adjusted accordingly. The scheduled review of the new jobs tax credits available under section 422.11A in 2015. The bill states that it is the intent of the general assembly that each tax credit, withholding credit, and revenue division program should effectuate the purposes for which it was enacted and that the cost of such programs should be included more readily in the yearly budgeting process. The bill provides for the regular review of all tax credit, withholding credit, and revenue division programs in order to facilitate the reauthorization of successful programs and to do so at a cost that can be accommodated by the state's annual budget. The bill creates a Legislative Tax Expenditure Committee to regularly review and make recommendations on reauthorization of tax credit programs in future years. The bill provides a schedule for the review of all of the tax credit programs over the next four years. The 260E and 260G programs are not included on that review schedule, most likely because that review will take place through the scheduled interim legislative study committee. The committee is charged to develop a “return on investment” analysis for all of the programs. This will be required of the community college programs as well Other key components of the bill include: Lowering the cap on enterprise zone, high quality jobs and supplemental research credits from $185 million to $120 million. 260E and 260G are not included under this cap. Suspending the film tax credit until July 1, 2013. Lowering the supplemental research activities tax credit from 6.5% to 3%. Increasing the supplemental research activities credit for companies with revenues less than $20 million from 6.5% to 10%. Eliminating the econ development regional revolving loan fund tax credit. Lowering the Endow Iowa program from $3 million to $2.7 million. Lowering the venture capital fund of funds from $100 million to $60 million. Lowering the historic preservation and cultural entertainment district tax credits from $50 million to $45 million. Re-enacts the Iowa “pick-up” estate tax contingent on federal estate tax enactments allowing states to recover that portion of federal estate taxes. The following language establishing the New Jobs Training Interim Study Committee is as follows: Industrial New Jobs Training Interim Study Committee: 1. The legislative council is requested to establish an interim study committee to evaluate the effectiveness of Iowa's industrial new jobs training program and make recommendations 25

on the future of the program. In conducting the study, the committee shall review the original policy goals of the program, the amount of state assistance provided under the program, and the benefits realized by the state through the administration of the program, and shall reach a conclusion as to whether the amount of assistance provided has been in proportion to the benefits realized. The review shall also include an examination of the efficiency of the bonding and withholding credit financing mechanisms used in the programs as well as the administrative and training costs entailed in the operation of the program. 2. The committee shall be composed of ten members of the general assembly. Five members shall be members of the Senate, three of whom shall be appointed by the majority leader of the Senate, and two of whom shall be appointed by the minority leader of the Senate. Five members shall be members of the House of Representatives, three of whom shall be appointed by the speaker of the House of Representatives, and two of whom shall be appointed by the minority leader of the House of Representatives. 3. The study committee shall issue a report to the general assembly containing its findings and recommendations by January 15, 2011. Legislative Tax Expenditure Committee - Background Creates a legislative tax expenditure committee within the legislative council. The committee is composed of 10 members of the general assembly, five members from each chamber, appointed by the legislative council. The committee has a number of duties. The committee is required to issue a statement of principles of sound tax policy. In issuing the statement, the committee may consult with the department of revenue, the legislative services agency, and independent experts who have demonstrated expertise in matters of tax policy, fiscal policy, and public finance. The statement must reflect to the extent practicable the best practices of state and local taxation as recognized by experts in the fields of economics, fiscal policy, law, accounting, and public finance. The statement must address issues of equity, simplicity, competitiveness, public purpose, and adequacy as those issues pertain to taxation in Iowa. The committee shall evaluate any tax expenditure available under Iowa law and assess its conformance with the statement of principles of sound tax policy. "Tax expenditure" is defined to mean an exclusion from the operation or collection of a tax imposed in this state. Tax expenditures include tax credits, exemptions, deductions, and rebates. Tax expenditures also include sales tax refunds issued pursuant to Code section 423.3 or Code section 423.4. The committee shall establish and maintain a system for making available to the public information about the amount and effectiveness of tax expenditures and the extent to which tax expenditures comply with the statement of principles of sound tax policy. The committee must engage in the regular review of the state's tax expenditures. In reviewing tax expenditures, the committee may review any tax expenditure at any time, but shall at a minimum perform certain reviews according to a schedule prescribed by statute. For each tax expenditure reviewed, the committee must submit a report to the legislative council containing the results of the review. The report must contain a statement of the policy goals of the tax expenditure and a return on investment calculation for the tax expenditure. "Return on investment calculation" is 26

defined to mean analyzing the cost to the state of providing the tax expenditure, analyzing the benefits realized by the state from providing the tax expenditure, and reaching a conclusion as to whether the benefits of the tax expenditure are worth the cost to the state of providing it. The committee's report may also include recommendations for better aligning tax expenditures with principles of sound tax policy. The committee must also estimate for each fiscal year, in conjunction with the legislative services agency and the department of revenue, the cost of each individual tax expenditure and the total cost of all tax expenditures, and by December 15 provide those estimates to the governor for use in the preparation of the budget message under Code section 8.22 and to the general assembly to be used in the budget process. The estimates provided may include the recommendations for the imposition of a limitation on a specified tax expenditure, a limitation on the total amount of tax expenditures, or any other recommendation for a specific tax expenditure or the program under which the tax expenditure is provided. Next Steps Meetings have taken place with DED Director Bret Mills requesting the convening of a task force to conduct a comprehensive review of the 260E program commencing immediately following the conclusion of this legislative session in preparation for the legislative interim study committee meeting later in the summer. The task force should consist of appropriate representatives of the Department of Economic Development, Iowa Workforce Development, Iowa Department of Revenue, the business community, professional economic developers and Iowa‟s community colleges including presidents, economic developers and business managers. The task force will review the 260E program and develop recommendations for improving the operation, reporting and performance of the program. The preliminary recommendations should be completed for review by the presidents at their June retreat. There is a growing portfolio of issues that will need to be addressed during this task force review, including but not limited to, wage thresholds for program eligibility, the amount and use of the college administrative fee, the amount and use of OJT, the type of training the program can support, ways to certify the training delivered, ways to reduce the cost of the program, caps on annual bonding authority, etc. The DED understands their data base management system needs to be updated and its redesign will be part of this process. The task force process provides a long needed opportunity to document and showcase the positive attributes of this important program.

Nurses Aids Checks: Senate File 2149 Signed by the Governor Effective July 1, 2010 Relates to criminal history and abuse registry checks for employees of health care facilities and other health-related providers and requires criminal history and abuse registry checks for certified nurse aide training program students. Amends Code section 135C.33, relating to such record checks for prospective employees of nursing facilities, various types of in-home services, hospices, elder group homes, and assisted 27

living programs. Under current law, the prospective employees are required to have criminal history and child and dependent abuse registry checks prior to employment. If there is an abuse record or a conviction of any crime, a prospective employee cannot be employed without an evaluation performed by the department of human services to determine whether the crime or abuse record warrants prohibition of the person's employment. The law requires the employment application to include a specific question regarding abuse record and criminal convictions. The bill provides that for the criminal record check and employment application question, a simple misdemeanor offense under Code chapter 321, relating to motor vehicles and laws of the road, is not considered to be a crime. Adds a new subsection in Code section 135C.33 that provides the training program student requirement. The terms "certified nurse aide training program" and "student" are defined. Certified nurse aide training programs are authorized to access the single contact repository established by the department of inspections and appeals for performing the criminal history and abuse registry checks. 1. "Certified nurse aide training program" means a program approved in accordance with the rules for such programs adopted by the department of human services for the training of persons seeking to be a certified nurse aide for employment in any of the facilities or programs this section applies to or in a hospital, as defined in Code section 135B.1. 2. "Student" means a person applying for, enrolled in, or returning to a certified nurse aide training program. If a nurse aide student has a criminal record or a record of founded child or dependent adult abuse, the student cannot be involved in a clinical education component of a certified nurse aide training program involving children or dependent adults unless an evaluation has been performed by the department of human services to determine whether the record warrants prohibition of the student's involvement in the component. The department of human services is required to perform the evaluation if requested to do so by the training program. The evaluation is to be performed in accordance with the existing criteria for employment-related evaluations. The department of human services has final authority to make the determination. The bill includes an ongoing notification requirement that is similar to the employment-related requirement in Code section 135C.33. If, after the record checks and any evaluation have been performed, a student is convicted of a crime or has a record of founded abuse entered, the student is required to notify the program of that information within 48 hours. Failure to comply is a criminal offense punishable as a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $315 but not more than $1,875. If the program receives credible information that such conviction or record has been entered and the student had not provided the required notification, the program is required to act to verify the information within 48 hours of receiving it. The evaluation provisions apply if the offense was committed or record entered. A program may notify the county attorney regarding a student's failure to comply with the notification requirement. Finally, the bill provides that if a health care facility conducts the training program and a student commences employment with the facility within 30 days of completing the program, the record 28

checks of the student performed for the program are deemed to fulfill the requirement for such checks prior to employment.

Nursing Workforce and Data: Senate File 2384 Signed by the Governor This bill includes provisions relating to the nursing workforce. Directs the department of workforce development to establish a nursing workforce data clearinghouse for the purpose of collecting and maintaining data from all available and appropriate sources regarding Iowa's nursing workforce. The department is to have access to all data regarding Iowa's nursing workforce collected or maintained by any state department or agency to support the data clearinghouse, and the information maintained in the nursing workforce data clearinghouse is to be available to any state department or agency. The bill directs the department of workforce development to consult with the board of nursing, the department of public health (DPH), the department of education, and other appropriate entities in developing recommendations to determine options for additional data collection. Provides rulemaking authority to the department of workforce development in consultation with the board of nursing to administer the data clearinghouse, and directs that a nursing workforce data clearinghouse shall be established and maintained in a manner consistent with the health care delivery infrastructure and health care workforce resources strategic plan developed by DPH. The bill requires the department of workforce development to submit an annual report to the governor and the general assembly regarding the data clearinghouse, and, following its establishment, the status of the nursing workforce in Iowa. Adds two accounts to the health care workforce shortage fund: the Iowa needs nurses now infrastructure account under the control of DPH to provide for the awarding of grants for clinical simulators, laboratory facilities, health information technology, and other infrastructure to improve the training of nurses and nurse educators in the state and to enhance the clinical experience for nurses; and the nurse residency state matching grants program account under the control of DPH to provide matching state funding to sponsors of nurse residency programs in this state to establish, expand, or support nurse residency programs that meet standards adopted by rule of DPH. Changes the name of the Nursing Workforce Shortage Initiative within the Health Care Workforce Support initiative to the Iowa Needs Nurses Now Initiative and makes a similar change to the name of the account for the initiative. The bill also requires the college student aid commission, which currently controls the Iowa Needs Nurses Now Initiative, to consult with the Iowa board of nursing, the department of education and the Iowa nurses association in adopting rules for the initiative and distributing funds. Adds two programs to the Iowa Needs Nurses Now Initiative: the nurse educator scholarship program and the nurse educator scholarship-in-exchange-for-service program.

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Provides that implementation is subject to the extent of funding available. No funding was appropriated to support these initiatives.

Veterans Affairs: Senate File 2274 Signed by the Governor Effective July 1, 2010 Provides education-related benefits for military persons and veterans, and their spouses, and directs the department of education to work with the state board of regents to convene a working group to explore the possibility of participating in a federal program whose goal is to build a broad pool of internationally competent individuals who are available for recruitment into the federal national security community. Provides for in-state tuition for military personnel stationed in Iowa and for veterans who have resided in Iowa; provides for a tuition and mandatory fee waiver at community colleges and regents universities for the spouses of military personnel killed while on duty or in state active duty, in the line of duty, or who died as a result of injuries received or as a result of illness or disease contracted while on duty or in active state duty. Directs the boards of directors of community colleges and the state board of regents to provide the spouses of members of the Iowa national guard or the reserve forces of the United States who are ordered to state military service or federal service or duty with the same options currently offered to the members, which are to withdraw and receive a full refund of tuition and mandatory fees or to make arrangements for some or all course grades or incompletes, with refunds only paid for which arrangement could not be made for grades or incompletes. The statutory changes in these programs are as follows: Section 260C.14, subsection 14, paragraph b, subparagraph (2), subparagraph division (b), Code Supplement 2009, is amended to read as follows: (b) "Qualified military person" means a person on active duty in the military service of the United States who is stationed in this state or at the Rock Island arsenal. If the qualified military person is transferred, deployed, or restationed while the person's spouse or dependent child is enrolled in the community college, the spouse or dependent child shall continue to be classified as a resident until the close of the fiscal year in which provided the spouse or dependent child is enrolled maintains continuous enrollment. Section 260C.14, subsection 14, paragraph b, subparagraph (2), subparagraph division (c), subparagraph subdivision (ii), Code Supplement 2009, is amended to read as follows: (ii) Is domiciled Has resided in this state at least one year or sufficient time to have filed an Iowa tax return in the preceding twelve months. Section 260C.14, subsection 20, unnumbered paragraph 1, Code Supplement 2009, is amended to read as follows: Adopt a policy to offer not less than the following options to a student who is a member, or the spouse of a member if the member has a dependent child as defined in subsection 14, 30

paragraph "b", subparagraph (2), subparagraph division (a), of the Iowa national guard or reserve forces of the United States and who is ordered to state military service or federal service or duty:

Green Cleaning Products: House File 823 Signed by the Governor Effective July 1, 2010 Requires public schools, community colleges, institutions under the control of the state board of regents, and state agencies to comply with an environmentally preferable cleaning and maintenance policy unless specified conditions for noncompliance are satisfied. The bill reads as follows: NEW SECTION. 8A.318 Building cleaning and maintenance - environmentally preferable cleaning products. 1. Findings and intent. The general assembly finds that human beings are vulnerable to and may be severely affected by exposure to chemicals, hazardous waste, and other environmental hazards. The federal environmental protection agency estimates that human exposure to indoor air pollutants can be two to five times, and up to one hundred times, higher than outdoor levels. Children, teachers, janitors, and other staff members spend a significant amount of time inside school buildings. Likewise, state employees and citizens of this state spend a significant amount of time inside state buildings. These individuals are continuously exposed to chemicals from cleaners, waxes, deodorizers, and other maintenance products. 2. Definitions. As used in this section, unless the context otherwise requires: a. "Environmentally preferable cleaning and maintenance products" includes but is not limited to cleaning and maintenance products identified by the department and posted on the department's internet site. b. "State building" means a public facility or building owned by or leased by the state, or an agency or department of the state. 3. Use of environmentally preferable cleaning and maintenance products. a. All school districts in this state, community colleges, institutions under the control of the state board of regents, and state agencies utilizing state buildings, are encouraged to conform to an environmentally preferable cleaning policy designed to facilitate the purchase and use of environmentally cleaning and maintenance products for purposes of public school, community college, regents institution, and state building cleaning and maintenance. b. Each school district, community college, institution under the control of the state board of regents, or state agency utilizing public buildings shall conduct an evaluation and assessment regarding implementation of an environmentally preferable cleaning policy pursuant to this section. On or after July 1, 2012, all state agencies, and all school districts, community colleges, and institutions under the control of the state board of regents which have not opted out of compliance pursuant to paragraph "c", shall purchase only cleaning and maintenance products identified by the department or that meet nationally recognized 31

standards. School districts, community colleges, institutions under the control of the state board of regents, and state agencies procuring supplies for schools and state buildings may deplete their existing cleaning and maintenance supply stocks and implement the new requirements in the procurement cycle for the following year. This section shall not be interpreted in a manner that prohibits the use of disinfectants, disinfecting cleaners, sanitizers, or any other antimicrobial product regulated by the federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. { 136 et seq., when necessary to protect public health and provided that the use of these products is in accordance with responsible cleaning procedure requirements. c. A school district, community college, or institution under the control of the state board of regents may, based upon the evaluation and assessment conducted pursuant to paragraph "b", opt out of compliance with the requirements of this section, upon the affirmative vote of a majority of the members of the board of directors of the school district or a determination by the president of the community college or by the president or administrative officer of the regents institution. A school district, community college, or regents institution opting out of compliance pursuant to this paragraph shall notify the department of education, the state board for community colleges, or the state board of regents, respectively, of this decision. 4. Information requirements - department internet site. The department shall provide information on the department's internet site regarding environmentally preferable cleaning and maintenance products used by the department. The department may also provide information regarding other cleaning and maintenance products that the department is aware of that meet nationally recognized standards. Information shall also be provided, at the discretion of the department, regarding the nationally recognized standards and the entity establishing the standards.

Iowa Innovation Council: House File 2076 Signed by the Governor Effective July 1, 2010 Establishes an Iowa Innovation Council and consolidates three existing councils within the Iowa Department of Economic Development: the Information Technology Council, Bioscience Alliance and Advanced Manufacturing Council. Leaders of these groups developed the concept of the Iowa Innovation Council, and they will continue to lead in developing strategies and longterm plans for innovation in targeted industries in Iowa. Amends the term and duties of the chief technology officer appointed pursuant to Code section 15.117 and provides that the chief technology officer is the chairperson of the council. The council consists of 29 voting members. Twenty of the members are selected by the economic development board to serve staggered two-year terms. Of the members selected by the board, seven are representatives from businesses in the targeted industries and 13 are individuals who also serve on the technology commercialization committee created in Code section 15.116, or other committees of the board, and who have expertise with the targeted industries. At least 10 of the members selected by the board must be executives actively engaged in the management of 32

a business in a targeted industry. The remaining nine members consist of the following: one member, selected by the governor, who also serves on the Iowa capital investment board, the director of the department, or the director's designee, the chief technology officer, the chief information officer from the department of administrative services, the presidents of the regents universities or their designees and two community college presidents from geographically diverse areas of the state, selected by the Iowa association of community college trustees. There are four legislative members serving on the council in a nonvoting, ex officio capacity: two from the senate and two from the house. These four members are appointed by majority and minority leadership and there may not be more than one member from each chamber from the same political party. The chief technology officer is responsible for convening meetings of the council and coordinating its activities. The council must annually elect one of the voting members to serve as vice chairperson. The chief technology officer cannot convene a meeting of the council unless the director of the department, or the director's designee, is present at the meeting. The purpose of the council is to advise the department on the development and implementation of public policies that enhance innovation and entrepreneurship in the targeted industries, with a particular focus on the information, technology, and skills that increasingly dominate the twentyfirst century economy. The bill provides that the council must: Create a comprehensive strategic plan for implementing specific policies that further the purpose of the council. Review annually all the economic development programs administered by the department and the board that relate to the targeted industries and make recommendations for adjustments that enhance efficiency and effectiveness. Act as a forum where issues affecting the research community, the targeted industries, and policymakers can be discussed and addressed and where collaborative relationships can be formed. Coordinate state government applications for federal funds relating to research and economic development affecting the targeted industries, Conduct industry research and draft documents that provide background information for use by the general assembly, the governor, the department, and other policymaking bodies within state government.

Public Employee Collective Bargaining Changes: House File 2485 Signed by the Governor Effective July 1, 2010 This bill concerns public employee collective bargaining generally and reflects primarily rewording and technical changes. Code section 20.1, subsection 2, is amended to provide that one of the powers and duties of the public employment relations board (PERB) is to represent the board in court. 33

Code section 20.6 is amended to provide that PERB shall interpret, apply, and administer the provisions of Code chapter 20. Code section 20.10, subsections 1, 2, and 3, are amended to eliminate the requirement that an act giving rise to a prohibited practice under this Code section must be willful to constitute a violation. Code section 20.10, subsection 4, is amended to specifically provide that oral expression of views without threat of reprisal or force shall not constitute or be evidence of a prohibited practice. Code section 20.11 is amended to allow a presiding officer in a prohibited practice hearing to hear the case through the use of technology from a location other than the county where the alleged violation occurred. The bill also allows PERB to designate one of its members or any other qualified person to preside at a prohibited practice hearing. The bill amends Code sections 20.11, 20.13, and 20.14 to provide that Code chapter 17A, the Iowa administrative procedure Act, governs hearing and appeal proceedings described in those Code sections. Code section 20.15, concerning certification elections for exclusive bargaining representation, is amended. The bill provides that a petition for certification of an exclusive bargaining representative for a bargaining unit cannot occur if that bargaining unit is currently represented by an exclusive bargaining representative. The bill also provides that a petition for decertification of a certified exclusive bargaining representative cannot occur for a period of one year from the date of certification or the date of its continuing certification or during the duration of a collective bargaining agreement. Code section 20.17, subsection 3, concerning bargaining procedures, is amended to provide that parties utilizing a cooperative alternative bargaining process may exchange their initial interest statements in lieu of an initial bargaining position during bargaining. Code section 20.17, subsection 11, concerning the deadlines for community college employee bargaining, is amended to match the provisions of the subsection applicable to other educational bargaining units. Code section 20.18, concerning grievance procedures, is amended to provide that an agreement with an employee organization may include procedures for the consideration of employee organization grievances in addition to public employee grievances. The section is also amended to provide that arbitration shall be invoked only with the approval of the employee organization in all instances and, for employee grievances, the additional approval of the employee. Code section 20.21, concerning fact-finding procedures, is repealed to eliminate fact-finding from public employee collective bargaining. Corresponding amendments are made throughout Code chapter 20. 34

Code section 20.22, concerning binding arbitration, is amended to provide that arbitration will be conducted by a single arbitrator and not a panel of arbitrators. The bill also provides for the method of selecting the arbitrator. The bill provides that PERB will submit a list of five arbitrators to the parties upon the filing of a request for arbitration and then each party, in an order determined by lot, shall alternatively remove names from the list until one name remains.

Other Bills of Secondary Interest to Community Colleges Child Care Provider Checks: House File 2283 Signed by the Governor Effective July 1, 2010 Relates to the requirements for national criminal history record checks for certain child care providers. Under current law in Code section 237A.5, relating to child care personnel, a national criminal record check is required for persons being considered for child care licensure or registration, for employment in child care, for receiving public funding for providing child care, or for residing in a child care facility or child care home receiving public funding. For the period beginning on and after January 1, 2010, through June 30, 2013, the national criminal record check requirement only applies to licensed child care centers and to child development home providers who voluntarily license. Replaces a requirement for repeating the national criminal check requirement every four years with an authorization for the department of human services to adopt rules specifying criteria in the public interest for requiring the national check of a person to be repeated. The statutory changes are as follows: Section 237A.5, subsection 2, paragraph d, subparagraph (1), Code Supplement 2009, is amended to read as follows: (1) For a person subject to a record check, in addition to any other record check conducted pursuant to this subsection, the person's fingerprints shall be provided to the department of public safety for submission through the state criminal history repository to the United States department of justice, federal bureau of investigation for a national criminal history check. The department may adopt rules specifying criteria in the public interest for requiring the national criminal history check shall of a person to be repeated every four years.

Campaign Finance Requirements and Reporting: Senate File 2195 Signed by the Governor Effective July 1, 2010 Makes a number of changes to Code chapter 68A relating to campaign finance requirements and reporting.

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Revises the definition of "political committee" to include any corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, labor union, or any other legal entity which accepts contributions, makes expenditures, or incurs indebtedness in excess of $750 in any one calendar year, expressly advocate that an individual should or should not seek election to a public office prior to the individual becoming a candidate. Code section 68A.202, subsection 2, currently provides that a PAC cannot expressly advocate the nomination, election, or defeat of only one candidate for office, but a PAC may be established to expressly advocate the passage or defeat of approval of a single judge standing for retention. The bill amends this section to apply the prohibition against advocacy only to actual candidates for election as defined in Code section 68A.102. Provides the ethics and campaign finance disclosure board with rulemaking authority to define the term "fair market value" as that term relates to the disposition of campaign property. Provides that only a candidate actually participating in a runoff election is required to file a report five days before the runoff election. Code section 68A.402 in part requires that permanent organizations temporarily engaging in certain political activity shall organize a political committee. The bill provides that contributions to any committee constitutes political activity and must be reported. Code section 68A.503 prohibits the owner, publisher, or editor of a sham newspaper from using the sham newspaper to promote that person's own candidacy for public office. The bill extends that prohibition to include the candidacy of any person.

Plant Closing Notification: House File 681 Signed by the Governor Effective July 1, 2010 Creates the Iowa worker adjustment and retraining notification Act. The bill requires employers to notify employees or their representatives and the department of workforce development of business closings that result in the layoff of 25 or more full-time employees and mass layoffs that are reductions in the workforce of at least 25 employees in a 30-day period.

Minority Hiring: House File 2432 Signed by the Governor Racial and Ethnic Minority Teacher Recruitment Study. Representatives of the department of education, the area education agencies, and public and private colleges and universities shall study the opportunities for the recruitment and retention of racial and ethnic minority teachers. Specifically, the representatives shall examine the following issues: 1. Examine strategies to encourage racial and ethnic minority high school students to enter the teaching profession. 2. Examine how to recruit racial and ethnic minority students interested in post-secondary teacher preparatory programs into attending an Iowa college or university teacher preparatory program. 3. Examine strategies to recruit racial and ethnic minority teachers to continue their careers as school administrators in Iowa. 36

For the purposes of this study, "racial and ethnic minority" includes individuals who are African American, Latinos, Asians or Pacific Islanders, American Indians, and Alaskan Native Americans. The state board of regents shall be responsible for providing staffing assistance to the study group. The representatives shall report their findings to the general assembly by January 10, 2011.

Technical Changes to Election Law: Senate File 2194 Signed by the Governor Effective July 1, 2010 Makes technical changes to the laws relating to elections and voter registration. Code section 260C.13 is amended to provide that director districts for a merged area board shall be drawn after each federal decennial census regardless of whether changes in population have taken place. Code section 260C.13 is also amended to specify that a city shall not be divided into two or more merged area director districts unless the population of that portion of the city within a merged area is greater than the ideal population for the district. A corresponding amendment is made to Code section 275.23A, relating to the drawing of boundaries for school district director districts. Code section 260C.15 changes from 65 days to 64 days the deadline for filing nomination petitions for a candidate for a member of a merged area board of directors. The statutory changes are as follows: Section 260C.13, subsection 2, Code 2009, is amended to read as follows: 2. The board of the merged area shall redraw boundary lines of director districts in the merged area after each federal decennial census to compensate for changes in population if changes in population have taken place. Section 260C.13, subsection 3, paragraph e, Code 2009, is amended to read as follows: e. Cities A city shall not be divided into two or more director districts unless the population of that portion of the city that is within the merged area is greater than the ideal size of a director district. Cities shall be divided into the smallest number of director districts possible. Section 260C.15, subsection 3, Code Supplement 2009, is amended to read as follows: 3. Nomination papers in on behalf of candidates for member of the board of directors of a merged area shall be filed with the secretary of the board not earlier than sixty=five sixty=four days nor later than five o'clock 5:00 p.m. on the fortieth day prior to the election at which members of the board are to be elected. The On the day following the last day on 37

which nomination petitions can be filed, and no later than 5:00 p.m. on that day, the secretary shall deliver all nomination petitions so filed, together with the text of any public measure being submitted by the board of directors to the electorate, to the county commissioner of elections who is responsible under section 47.2 for conducting elections held for the merged area, not later than five o'clock p.m. on the day following the last day on which nomination petitions can be filed. That commissioner shall certify the names of candidates, and the text and summary of any public measure being submitted to the electorate, to all county commissioners of elections in the merged area by the thirty-fifth day prior to the election.

Veterans Day Holiday for Veterans: House File 2197 Signed by the Governor Effective July 1, 2010 Provides Veterans a holiday for Veterans Day and makes penalties applicable. Any employer who violates the provisions of this new provision shall be subject to a civil penalty of not more than $500 for each violation pursuant to Code section 91A.12. The language from the bill reads as follows: NEW SECTION. 91A.5A Holiday time off – Veterans Day. 1. An employer shall provide each employee who is a veteran, as defined in section 35.1, with holiday time off for Veterans Day, November 11, if the employee would otherwise be required to work on that day, as provided in this section. 2. An employer, in complying with this section, shall have the discretion of providing paid or unpaid time off on Veterans Day, unless providing time off would impact public health or safety or would cause the employer to experience significant economic or operational disruption. 3. a. An employee shall provide the employer with at least one month's prior written notice of the employee's intent to take time off for Veterans Day and shall also provide the employer with a federal certificate of release or discharge from active duty, or such similar federal document, for purposes of determining the employee's eligibility for the benefit provided in this section. b. The employer shall, at least ten days prior to Veterans Day, notify the employee if the employee shall be provided paid or unpaid time off on Veterans Day. If the employer determines that the employer is unable to provide time off for Veterans Day for all employees who request time off, the employer shall deny time off to the minimum number of employees needed by the employer to protect public health and safety or to maintain minimum operational capacity, as applicable.

Drivers Education Instructor Issues: House File 2466 Signed by the Governor Effective March 19, 2010 Some provisions retroactive to July 1, 2008 Relates to requirements for individuals who provide classroom, street and highway driving instruction.

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Prohibits the department of transportation from disqualifying a person from providing street or highway driving instruction, and prohibits the board of educational examiners from withholding or withdrawing authorization to provide street or highway driving instruction, solely because the person was involved in a motor vehicle accident unless the person contributed to the accident and either the accident caused a death or serious injury or it was the person's second or subsequent contributive motor vehicle accident in a two-year period. To be qualified to provide street or highway driving instruction, a person must be certified by the department and authorized by the board. The department may disqualify a person from providing street or highway driving instruction without concurrent or further action by the board, and the board may withhold or withdraw authorization to provide street or highway driving instruction without concurrent or further action by the department. A person who provides street or highway driving instruction must hold a driver's license valid for the vehicle operated. The final field test administered prior to a student's completion of an approved course must be administered by a person qualified as a classroom driver education instructor, and the bill adds that the person must also be certified to provide street and highway driving instruction. A person qualified as a classroom driver education instructor but not certified to provide street and highway driving instruction may administer the final field test if accompanied by another person qualified to provide street and highway driving instruction. The bill takes effect upon enactment and the provision of the bill prohibiting the department and board from disqualifying a person solely because the person was involved in a motor vehicle accident applies retroactively to July 1, 2008, and applies to any accident that occurred on or after that date.

EMS Licensure and Training Programs: House File 2193 Signed by the Governor Effective July 1, 2010 This bill provides for the licensure, rather than certification, of emergency medical care providers. An emergency medical care provider is defined by the bill as an individual trained to provide emergency and nonemergency medical care as an emergency medical responder, emergency medical technician, advanced emergency medical technician, or paramedic. The bill eliminates definitions for and references to "emergency medical services instructor", "emergency rescue technician", and "first responder". The bill empowers the department of public health to create other levels of licensure by rule. The bill adds a definition of a service program, as a department-authorized medical care ambulance service or non-transport service. The authorization is similar to a license.

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The bill adds two stakeholder groups to the current EMS advisory council, representing emergency medicine and pediatrics. The bill establishes a civil penalty of up to $1,000 for licensees, service programs, and training programs, if the department finds that the licensee or program has not been or will not be operated in compliance with the licensing or authorization requirements, or that there is insufficient assurance of adequate protection for the public. The bill establishes a procedure for the approval of training programs for emergency medical care providers. These programs must be approved by the department, and may be provided by an Iowa college approved by the north central association of colleges and schools or by an Iowa hospital. The following new language taken from the bill pertains to the training programs referenced above: NEW SECTION. 147A.17 Applications for emergency medical care services training programs - approval or denial - disciplinary actions. 1. An Iowa college approved by the north central association of colleges and schools or an Iowa hospital in this state that desires to provide emergency medical care services training leading to licensure as an emergency medical care provider shall apply to the department for authorization to establish a training program. 2. The department shall approve an application submitted in accordance with subsection 1 when the department is satisfied that the program proposed by the application will be operated in compliance with this subchapter and the rules adopted pursuant to this subchapter. 3. The department may deny an application for authorization or may impose a civil penalty not to exceed one thousand dollars upon, place on probation, suspend or revoke the authorization of, or otherwise discipline a training program with an existing authorization if the department finds reason to believe the program has not been or will not be operated in compliance with this subchapter and the rules adopted pursuant to this subchapter, or that there is insufficient assurance of adequate protection for the public. The authorization denial, civil penalty, period of probation, suspension, or revocation, or other disciplinary action shall be effected and may be appealed as provided by section 17A.12.

Bills and Issues of Interest to Community Colleges NOT Enacted by the Legislature Education Appropriations Bill: Senate File 2376 The following language was amended into the bill in the Senate by Senator Tim Capucian and then stricken in the House by Representative Mary Mascher: District-to-Community College Program and Facilities Sharing Pilot Program. Hawkeye Community College (HCC)currently has a contractual agreement with five K-12 school districts in its service area renting a facility in Grundy Center to share the delivery of college coursework to high school students from those five districts. HCC has been paying the 40

rent on the facility for the last two years and is obligated to do so for one more year. The school districts will then assume that financial responsibility but current law prohibits them from using their PPEL funds to support a facility outside of their school district. This pilot program would have allowed them to do so and was requested by the school districts. This is an important issue that could lay the groundwork for approving this change on a statewide basis as more of our community colleges are partnering with consortiums of high schools to build and operate regional instructional facilities of this type. This change would have allowed them to use their PPEL funds to help finance the construction or lease of those facilities. Representative Mary Mascher (D – Iowa City) and Representative Lance Horback (R – Tama) have committed to work with us during the interim to determine if this statutory change should be implemented in the next legislative session so on statewide basis. The enabling language from the bill is as follows: “A consortium of five school districts and a community college may request approval from the department of education for a district-to-community college program and facilities sharing pilot program. The pilot program shall include one community college whose average annual increase in joint enrollment over the fiscal period beginning July 1, 2005, and ending June 30, 2009, was between 20 and 21 percent, and five contiguous school districts, each of which had a kindergarten through grade twelve certified enrollment for the 2009-2010 school year of not less than six hundred pupils nor more than eight hundred pupils, with the total kindergarten through grade twelve certified enrollment for 2009-2010 for the school districts participating in the consortium of not less than three thousand three hundred pupils nor more than three thousand four hundred pupils. All participants in the consortium shall be located within thirty miles of two cities and a state university. Notwithstanding any provision of law to the contrary, the participating school district boards may enter into joint contracts for the construction or lease of buildings, using funds accumulated under the physical plant and equipment levy in section 298.2. Buildings constructed or leased pursuant to this section shall be used primarily for providing community college courses under a district-to-community college sharing agreement entered into by each of the school districts and the community college pursuant to section 257.11, subsection 3.”

Withholding Tax Credits: Senate File 2374 This bill passed out of the Senate Ways and Means Committee but was never debated on the Senate floor. It was presented as an amendment to the Standings Bill, House File 2531 but was withdrawn by Senator Gronstal during the debate. No action was therefore taken. Community colleges had agreed to support the bill. This bill was submitted by the Department of Revenue and was in response to a recommendation by the State Auditor in his 260E program review released on May 10, 2009. The effect of this bill was to direct the state income tax withholding payments directly to IDR who would in turn, refund them to the community colleges. This bill would have made this change effective on July 1, 2011 and would have provided this year to work out the mechanics with IDR. This issue will now be discussed and evaluated during the review of the 260E program during the interim.

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The Department of Revenue has been very supportive and collaborative throughout this process. Bond Counsel Lance Coppock has reviewed this issue and is not concerned about this change negatively impacting the program in any way. He also believes there may be a way to effect this change without the need to amend existing agreements. The language from the bill is as follows: Withholding Credit Program Report and Plan: 1. It is the intent of the general assembly that the withholding credit provisions of the industrial new jobs training program in chapter 260E, the accelerated career education program in chapter 260G, and the targeted jobs withholding credit program in section 403.19A be implemented and administered in an accurate and transparent way. 2. The department of revenue shall, in conjunction with the community colleges, the pilot project cities, and the department of economic development, engage in a comprehensive review and evaluation of the programs described in subsection 1. 3. After conducting the review and evaluation under subsection 2, the department of revenue, in conjunction with the community colleges, the pilot project cities, and the department of economic development, shall develop a plan under which the withholding credits provided for in the programs described in subsection 1 are remitted first to the department of revenue and then transferred to the community colleges and pilot project cities only after the proper amount of such credits has been verified by the department of revenue. The plan shall provide for implementation of changes to the programs as of July 1, 2011. 4. The department of revenue shall submit a report containing the results of the program review conducted under subsection 2 and the plan developed under subsection 3 to the governor and the general assembly by December 15, 2010.

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