April 17, 2008

 

Funding for safe roads and bridges passes

Senate restores funding to off-road enthusiasts

Protecting consumers from new insurance scam

 

 

 


Funding for safe roads and bridges passes

This week, the Legislature took the first steps toward improving the safety of roads and bridges across Iowa. 

 

Senate File 2420, approved on a broadly bipartisan 35 to 14 vote, will help make up the $200-million-a-year shortfall in funding to repair and build new roads.

 

Estimates show that the legislation will generate about $125 million by 2012 by changing vehicle registration fees, and increasing trailer registration fees and title fees.  Many of these fees haven’t changed in more than 20 years.  Iowans would not pay higher fees on their current vehicles but would when they purchase a different vehicle.

 

The bill that passed the Legislature will change the way pickup registration fees are assessed.  Pickup owners would no longer pay a flat $65 fee but would be assessed by weight and value—exactly the way passenger vehicles, vans and SUVs are.  Farmers and business owners who use trucks for their work would pay a registration fee of $150.

 

The Senate Transportation Committee worked throughout 2007 and 2008 on a workable solution for repairing and building new roads, crucial elements to a growing economy.  The bipartisan committee traveled the state gathering input from local residents.

 

The steps we’re taking this year are the first toward developing a stable, fair and long-term way of maintaining safe roads and bridges across Iowa.   For more information, go to www.iowadot.gov/time21.

 

 

Senate restores funding to off-road enthusiasts

Iowans are working to expand recreational opportunities and make our state a better place to live and play. 

 

One good example is Iowa’s ATV and snowmobile owners.  They’ve worked with the state to make Iowa a destination for off-road recreation enthusiasts by expanding access to trails and parks.  Registration fees go into ATV and snowmobile trust funds, which pay for the creation, maintenance and promotion of new trails and recreation parks.

 

In 2002, the Republican-led Legislature scooped money from these funds to balance their budget.  Not only was a promise to ATV and snowmobile owners broken, the money was never repaid.

 

On April 15, the Senate took action to return the funds to their rightful owners.  I’m proud that we’re honoring our commitment to Iowa’s off-road enthusiasts.  They’ve done their part to expand recreational opportunities, and they deserve our support.

 

 

Protecting consumers from new insurance scam

On April 9, the House followed the Senate’s lead by unanimously passing Senate File 2392, which provides Iowans with important new consumer protections.  A key part of the bill addresses the growing nationwide concern over stranger-originated life insurance.

 

Stranger-originated life insurance is increasingly being used to prey on the elderly.  The scammer takes out a life insurance policy on somebody they don’t know and waits to cash in when they die.  Hedge funds and investment firms have also been known to participate in this unscrupulous money-making scheme.  

 

The bill places a five-year ban on selling stranger-originated life insurance policies, which should substantially cut the profits for third parties or investor groups. 

 

The legislation does not, however, affect Iowans who pay for their insurance policies with their own money. If you have such a policy, you can still sell it to someone else after two years, which is current law. You can also sell your policy at any time if any of these conditions apply: terminal or chronic illness; death of a spouse; divorce; retirement; disability; or bankruptcy.

 

I am pleased that we added this legislation to this session’s list of consumer protection accomplishments.

 

 

 

 

This is a legislative update from Senator Joe Seng.  Contact Senator Seng by calling (515) 281-3371 or sending an e-mail to joe.seng@legis.state.ia.us.  For newsletters, photos and further information, go to www.iowasenatedemocrats.org/seng.


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