A public hearing on the House Republican amended education bill took place Monday at the
State Capitol. Although the Republican version of the Governor's bill was officially slated for debate, the
hearing involved points on the Senate Democrat version and the Governor's original plan as well. The
House amendment contains a delay on the third-grade "retention" which would go into effect in 2016-17
and removal of a section of the Governor's plan expanding online-only education.
I have received many comments from my constituents concerning the Medicaid cost containment
proposals impacting physicians. The reduction is a change
in the way Iowa pays for services where the patient is
covered by both Medicaid and Medicare. Currently, a
physician bills Medicare first and then bills Medicaid for the
remainder of the bill. As I understand it, a provider can be
paid more by Medicaid and Medicare for these "cross-over
claims" than what the state would pay if the patient was just
eligible for Medicaid. We are concerned about the level of
Medicaid reimbursement. You may be aware that states are
not to pay more than what Medicare pays. That is a problem
for states like ours, where Medicare rates are among the
lowest in the nation. I am hopeful that, by the time the Legislature has adjourned for the year that we will
have found a way to address your concerns.
For the most part the House this week has been taking up a lot of non-controversial policy bills,
but in the coming weeks debate could become a little more heated.
If you have concerns or questions I can be reached at the Capitol by emailing
steven.olson@legis.state.ia.us.

Currently there are a slew of Iowa gun bills pending in the House and Senate. I supported the stand your ground bill, HF 573 and would like you all to know I have serious concerns about some of the other gun rights bills that have been filed. Some of the bills pertain to banning guns in proprietary places, lead shot ban, optional permits, and carrying on the Fairgrounds. Thank you for your emails expressing
your views on all this legislation as I look to my constituents for guidance on this and all issues.

We've talked about property tax before and there were two similar proposals between the Governor's office and House Ways and Means committee. As of now they are being consolidated into one bill. I'll keep you informed on its future in the House.

As all of you are aware, the Chinese delegation is coming to Iowa next week including China's Vice President Xi Jinping who is expected to succeed Hu Jintao as president of China. The visit will begin in Muscatine where Xi began his friendship with many Iowans. As expected, things are hectic here over the security and organizational aspect in anticipation of their arrival. Topics of discussion will be focused on trade relations and the substantial benefits of those relations to Iowa's economy. Iowa's exports to China have jumped 1,300% over the past ten years a direct result of our corn and soybeans selling so high.

Numeric standards for nitrogen levels in water won't be imposed according to the regional EPA director. This means that for now, Iowa farmers won't be affected when using nitrogen fertilizers.

Earlier the U.S. House of Representatives passed a bill that would prevent the EPA from imposing anti-dust rules amid fears they would deny our farmers the use of farm equipment that kicks up dust.

As always you can reach me at the capitol building by visiting, emailing, or calling. Thank you all for sharing your views with me.

As I write this edition of the newsletter it is Groundhog Day and even though he's seen his shadow ensuring 6 more weeks of winter I think we've been lucky so far so it's not quite as damning as it has been in the past.

The House Transportation Committee is set to meet today on the "Traffic Camera Bill" HF 2048.  This bill would ban the use of all automated traffic law enforcement systems, and require their removal by July 1st. I'm still researching this bill and have yet to decide my position. Other states across our country vary greatly on their laws on automated traffic enforcement.  I've already received many emails from my constituents
on this subject and welcome many more, as your views are an important part of my decision making.

On our budgeting process, this is based on an ongoing revenue stream that is determined by the Revenue Estimating Conference at their December meeting, the figure determined was 6.251 billion for 2013. We can spend up to 99% of that figure. The House Republicans beginning target is 6.059 billion, which is 97% of said ongoing revenue stream.

Many of you may have heard in the news that State revenue is reported to jump by approximately 62.6 million more than the previous year. This does not alter the state budgeting process that was mentioned in the previous paragraph. HF 2150, the IRC Coupling Bill, references the Internal Revenue Code to make federal income tax revisions enacted by Congress in 2011 applicable for Iowa income tax purposes. The updates include revisions to the federal research credit, the basis for Iowa research activities credit.

On the "Lead Shot Nullification" bill, HJR 2001, legislative intent versus the rule making process by state agencies has become a hotly debated issue. I will be supporting this bill which reinstates legislative intent.

If you have questions or comments please feel free to contact me via email at steven.olson@legis.state.ia.us.