Iowa Legislative Network Bulletin

                                February 25, 2008

From the Desk of Lobbyist Craig Schoenfeld

Vehicle Owners To Expect Fee Increase; Funds To Pay For Bridge Repair
Iowans will likely be required to pay higher state fees to register their cars and trucks and to renew their driver licenses to help address a $200 million annual shortfall for highway repairs, a key lawmaker predicted this week. Sen. Tom Rielly, an Oskaloosa Democrat and chairman of the Iowa Senate Transportation Committee, made his comments as a study was released showing that Iowa has the fourth-highest percentage of structurally deficient bridges in the nation. The report said Iowa's bridges remain safe, but it warned that the state is falling behind in repairs.

Gov. Chet Culver has ruled out an increase in Iowa's gasoline tax, but Rielly said he expects the House and Senate to pass legislation this session that would raise vehicle registration fees and driver license fees. Exactly how the fees would be raised is still under discussion, he added.

"I am very confident that we are going to get something done this year," Rielly said. "These are very, very serious issues as they relate to roads and bridges."
The bridge study was conducted by TRIP, a Washington, D.C.-based organization financed by road construction companies, labor unions, insurance companies, distributors and suppliers. The group's findings, based on government data, mirror a report by the Iowa Department of Transportation last year that concluded the state needs an additional $4 billion over the next two decades for road construction and repairs.

The TRIP report said 5,153 Iowa bridges, representing 21 percent of all of Iowa's city, county and state bridges, are structurally deficient, showing significant deterioration to their decks or to other major components. Another 1,455 bridges, or 6 percent of the total, are rated as functionally obsolete because they no longer meet current design and safety standards.

OTHER NEWS:
Contractor Fee Would Increase Under Senate Bill; Bonding Legislation Gets Cold Shoulder
SSB 3042: The Senate Labor Committee voted this week to double the fee required when contractors register with the Department of Workforce Development. Senate Study Bill 3042 would allow the state's labor commissioner to establish the fee for registration at not more than $50 for a two-year period. Currently, the fee is not more than $25 for a two-year registration period. While in theory the labor commissioner may limit the fee increase, if enacted, the commissioner is likely to double the registration fee immediately.

Similar legislation advance through the Senate committee process during the 2007 legislative session but was never debated.

HSB 596: State Representative Todd Taylor (D-Cedar Rapids) announced this week that House Study Bill 596 would not likely advance during the 2008 legislative session. Rep. Taylor is a member of the bill's subcommittee.
The legislation would have required home improvement contractors to obtain a $75,000 surety bond in order to conduct business in Iowa. The bill was sponsored by the state's attorney general as a means to protect consumers against fraudulent contractors. However, with the assistance of Homebuilders Association of Iowa members, lawmakers were educated on the impact this legislation would have on the industry. The legislative subcommittee ultimately determined not to advance the legislation to the House Labor Committee.

Senate Labor Committee: Voted Out:
SSB 3042 CONTRACTOR REGISTRATION FEE: Increases the contractor registration fee to $50. (One corrective Amendment) Amended & PASSED, 7-4

The following legislation was introduced this past week in the Iowa House and Senate.

HF 2289 GREEN BUILDING TAX CREDIT Tax Credit: Creates a property tax credit for building or rehabbing a building that meets standards for promoting energy efficiency. Makes the credit equal to 10% of the value of the property for 10 years. Administration: Makes the DPS, with help from the DNR, responsible for setting the standards of a green building. Includes provisions on transferability and filing with the DOR.

HF 2352 GREEN APARTMENTS: Creates a property tax credit for buildings that qualify as green apartments or green rentals. Establishes a formula for determining the value of the credit. Requires annual certification from the DPS that the building is a green building.

SF 2219 CONTRACTOR REGISTRATION FEE (Successor to SSB 3042) Increases the contractor registration fee to $50.

Regards,
Paula Siewert, CAE
President
Northwestern Lumber Association
800-469-9078