Senate Democrats

Week 9 Report – March 11, 2009

 

·        Senate takes another step to tackle tough economy

·        Greater protections for Iowa’s middle-class families

·        Rebuilding Iowa and the lives of disaster victims

·        Growing Iowa’s economy with biodiesel

·        Iowa to host White House forum on health care

·        Increasing protections for Iowa workers

·        Nominate your favorite teacher for big honor

 

 

Senate takes another step to tackle tough economy

 

The overriding issue of the 2009 session is responding to the deepening national recession and its impact on middle-class Iowa families.

 

More Iowa families are losing jobs they depend on. Iowa small businesses are seeing sales drop.  And homeowners are facing foreclosure.  

 

Our job in the Legislature is to help Iowans through these tough times, to optimistically build toward a prosperous future, and to keep the commitments we’ve made on economic growth, health care, education, energy independence and disaster recovery.

 

This week, the Senate approved a $175 million bonding plan that will:

       Create good-paying jobs for workers in the construction industry and related businesses who will expand or improve Iowa’s prisons, community-based correction facilities, the Iowa Veterans Home and other state-owned buildings.

       Ensure the safety of our communities and neighborhoods by expanding and fixing up our prisons and community-based corrections facilities. 

       Protect the safety of Iowans in their workplaces.

       Ensure that the Iowa Veterans Home in Marshalltown becomes a state-of-the-art facility for Iowans who have honorably served our country in the armed services.

 

The evidence is clear. These stimulus initiatives will help our state recover sooner from the national recession. It is projected that this stimulus bill will create nearly 5,000 jobs across Iowa.

 

Every $1 million invested in infrastructure supports 28.5 full-time, year-round-equivalent jobs, according to a recent study by the National Association of Industrial & Office Properties. Plus, during the construction phase, new projects employ workers who spend their paychecks in the local economy. 

 

 

Greater protections for Iowa’s middle-class families

 

The national recession continues to hammer Iowa. Our state’s unemployment rate rose to 4.8 percent in January, while the national rate climbed to 7.6 percent, the highest since 1992.

 

This economic slowdown is hurting Iowa homeowners, and the pain is not limited to risky subprime mortgages. 

 

John Gianola, of Iowa Legal Aid's Foreclosure Defense Project, recently reported that “a typical foreclosure case now is people who may have had reasonable long-term, fixed-rate loans, but because they lost their jobs, they can no longer afford even a conventional mortgage."

 

Iowa's home foreclosure rate hit a 10-year high last year. More than 30,000 mortgages were delinquent or in foreclosure in the last quarter of 2008, according to the Mortgage Bankers Association. 

 

This is everyone’s problem. Each neighborhood foreclosure threatens the financial security of our communities and lowers the value of every house in the neighborhood.

 

In Iowa, the national economic problems are making the situation even worse for communities affected by last year’s natural disasters, but in the Legislature, we’re working in a bipartisan way to help struggling families make it through these tough times.

 

First, because many struggling homeowners aren’t aware of their rights and alternatives to foreclosure, the Senate Judiciary Committee has passed legislation requiring creditors to inform homeowners of mediation and counseling services before a home foreclosure begins.   

 

If the creditor fails to comply with this requirement, the courts must slow things down and give homeowners a chance to avoid foreclosure. If you or someone you know needs advice on mortgage assistance, go to www.IowaMortgageHelp.com. The site is maintained by Iowa’s Attorney General.

 

Second, the Senate Commerce Committee is moving to toughen state laws governing mortgage bankers and brokers by requiring criminal history and credit background checks, pre-licensure and continuing education, national licensing, and a net worth, surety bond or recovery fund.

 

Third, the Commerce Committee is taking steps to crack down on debt settlement firms, which are businesses that promise to settle a consumer’s debts for a fee. The consumer usually pays the fee up front. If the debt settlement firm fails or makes a half-hearted effort, the consumer is out the initial fee and left in a worse financial state.

 

New legislation would expand regulations to cover anyone involved in consumer debt settlement by requiring written contracts, limiting fees and mandating consumer disclosure. This disclosure incluedes estimated total fees, a statement that the debt manager cannot guarantee results, and acknowledgement that consumer may quit the service at anytime without penalty.  

 

Rising unemployment and foreclosure rates are signs that the national recession is worsening, but I’ll keep standing up for Iowa’s middle-class families.

 

 

Rebuilding Iowa and the lives of disaster victims

 

We are continuing our efforts to help Iowans and communities recover from last summer’s floods and tornadoes. At the same time, we’re laying the groundwork to prevent similar devastation in the future.

 

Recent steps approved by the Senate Rebuild Iowa Committee would:

 

       Allow disaster victims to participate in the Prescription Drug Donation Repository Program. This program has helped low-income Iowans obtain the often-costly prescription medications they need. The program is one more way we can extend a helping hand to disaster victims.

 

       Create an Iowa Flood Center at the University of Iowa, which would help develop a workforce knowledgeable in flood research, prediction and prevention strategies. Working with local and state agencies, the Iowa Flood Center would establish community-based programs to improve flood monitoring and prediction along Iowa's major waterways and to support ongoing research. These efforts could help lessen the impact of future flooding in Iowa and may serve as a national model for flood preparedness, research and mitigation.

 

       Require eligible communities and homeowners to participate in the National Flood Insurance Program and to purchase flood insurance. According to the legislation, a person who fails to purchase flood insurance on an insurable structure in a 500-year flood plain insurance before July 1, 2010, would not be eligible to receive any flood disaster-related financial assistance from the state.

 

 

Growing Iowa’s economy with biodiesel

 

Expanding the use of biodiesel in Iowa can strengthen the state’s renewable energy economy and reduce our dependence on foreign oil. It also diversifies markets for our local farmers and creates good-paying green-collar jobs for Iowans.

 

Recently, the Senate Transportation Committee voted to require five percent biodiesel (known as B5) in all diesel fuel sold in Iowa by July 2009 and to increase to a 20 percent biodiesel standard by 2015. Minnesota has already enacted similar legislation.

 

Under the new bipartisan bill, the Iowa Department of Transportation or the Governor would have the power to suspend the biodiesel requirement when necessary.

 

The bill now goes to the full Senate for consideration. 

 

 

Iowa to host White House forum on health care

 

President Obama recently selected Iowa as a location for one of a series of regional forums on health care reform.

 

The Iowa forum, which will be hosted by Governor Chet Culver on March 23, will bring together diverse groups that have a stake in reforming our health care system. It will be an opportunity for the groups to put forward their best ideas about how we can bring down costs and expand coverage for American families.

 

Iowa’s selection comes as no surprise. We’ve become a leader in health care reform at the state level. Iowa is on the verge of becoming the first state to provide affordable health care to all children. Under legislation being considered this session, 30,000 Iowa kids who are currently uninsured would have health insurance. 

 

Our health care reforms also offer relief to adults looking for affordable insurance options. A new state “Iowa Insurance Exchange” will outline a high-quality, affordable health care plan and invite private insurers to bid on providing it. This will increase options while reducing complexity for adult Iowans struggling to find quality health care they can afford.

 

The legislation includes a host of other health care reforms, including banning gifts to doctors from pharmaceutical companies. We will also use some of the federal stimulus dollars to reverse our impending shortages of nurses, doctors and other medical workers.

 

 

Increasing protections for Iowa workers

 

A Dependent Care Task Force made initial recommendations this week for improving Iowa laws on the care and employment of dependent adults with mental retardation.

 

The task force was formed following the Government Oversight Committee’s investigation of living and working conditions at Henry’s Turkey Service an Atalissa. The Texas-based company brought mentally handicapped men to live in a decrepit Iowa bunkhouse while working for almost no pay.

 

As a result, the task force is recommending annual registration and reporting for all types of boarding homes, a uniform assessment tool for determining dependent adult abuse, inter-agency coordination in the investigation of unlicensed health care facilities, and improved record-keeping. 

 

The task force also recommends that the Iowa Civil Rights Commission be given subpoena power and that the Legislature make wage discrimination against any employee, including those with disabilities, an unfair employment practice.

 

The Government Oversight Committee’s hearings into the Atalissa case will resume next week. Hearings were temporarily suspended to allow the Department of Criminal Investigation to conduct its investigation.

 

 

Nominate your favorite teacher for big honor

 

Do you know any great teachers who’ve made a difference in the lives of their students? If so, nominate them for the 2010 Teacher of the Year award!

 

The Teacher of the Year award recognizes an Iowa teacher who motivates, challenges and inspires excellence; who is respected by students and peers; who is a dedicated professional that helps nurture hidden talents and abilities; who is a creative, caring individual; who takes teaching beyond textbooks and blackboards; and who is an exceptional teacher helping to redefine American education.

 

For more information and a nomination form, go to www.iowa.gov/educate and search “TOY”. The deadline is April 15.