State Government – week of March 2, 2015

SSB 1062 – Time off Work for Presidential Caucuses

SSB 1065 – Competitive Bidding Interim

SSB 1073 – Open Records

SSB 1122 – Radon Control in New Residential Construction

SSB 1131 – E911 Emergency Communications Fund

SSB 1134 – Safe at Home

SSB 1155 – Radon Testing

SSB 1170 – First-time Homebuyer Savings Accounts

SSB 1172 – Durable Medical Equipment Providers Licensure

SSB 1213 – Police Officers Retirement

SSB 1215  – Elections Administration

SF 225 – Adoptions

HF 202 – Retired Volunteer Dentists & Dental Hygienists

COMMITTEE ACTION:

SSB 1062 states that a person will be entitled to unpaid time off from work to attend a presidential precinct caucus for up to four hours beginning one hour prior to the start of the precinct caucus. The employee is required to  make a written application two weeks ahead with their employer for such absence, and the employee is not liable for any penalty nor will any deduction be made from the person’s regular salary or wages except for the period of time of the absence.

The requirement to allow time off does not apply if the person is employed in a position that affects the protection of public health or safety or by an entity that would experience severe economic disruption because of the person’s absence. Such an employer must file a written notice with the county auditor specifying the circumstances justifying the denial of such leave and the minimum number of persons needed, by position, to protect public health and safety or maintain minimum operational capacity, and that the number of persons not applying for leave is less than the minimum number specified by the employer. The denial of leave for those number of persons needed to reach the minimum staffing number specified must be done in a nondiscriminatory manner.

An employer is permitted, in lieu of providing unpaid leave, to provide paid leave for the absence or to allow affected employees the option to work the hours of the absence at such other time so long as either option is made available to all affected employees.

An employer who denies an employee the privilege to attend a presidential precinct caucus commits election misconduct in the fourth degree, a simple misdemeanor. A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625 or by both. [3/4: 10-5 (party-line, except Bertrand “yes”)]

SSB 1065 requests the Legislative Council to establish an interim study committee on Iowa’s competitive bidding law. The committee is to consider the status of the current law, identify concerns or problems related to current law, and consider alternatives or changes to current law. [3/4: 15-0]

SSB 1073  is proposed by the Public Information Board and includes:

• Sections 1 and 2 clarify when advisory entities to government bodies are subject to the open meetings laws. Currently, many of these advisory entities are not subject to the open meetings laws because they do not make public policy recommendations. The bill makes clear that if these entities are created by a government body and are making recommendations to a government body or are simply discussing the duties for which they are created, they are subject to the open meetings laws. This enhances the public trust and confidence in government by making these meetings open to the public. The changes do not apply to public hospitals licensed under 135B.
• Section 3 clarifies that the 24-hour requirement for posting notice of a public meeting does not include weekends or holidays when the government building is closed. [3/2: 13-0 (Chapman, Whitver excused)]

SSB 1134 establishes a “Safe at Home” program for those who are a victim of domestic abuse, sexual abuse or stalking. The program is administered by the Secretary of State’s office. The Safe at Home program is an address confidentiality program. The Secretary of State’s office establishes a U.S. Post Office box for the participant. The SOS receives the participant’s mail and forwards it to them at the designated P.O. box. This program also allows the participant to sign up as a permanent absentee ballot voter by using their confidential address. [3/2: 13-0 (Chapman, Whitver excused)]

SSB 1122 makes a number of changes to Iowa’s radon laws. Highlights include:

• The building code commissioner is required to adopt requirements and standards for radon control in new residential construction. The standards apply to new construction on or after January 1, 2016.
• The building code commissioner may provide training to builders, contractors and others on the new requirements.

The Department of Public Health must transfer $100,000 in fiscal years 2016 and 2017 to the Department of Public Safety to be used by the State Building Code Commissioner to implement this Act.

• The builder of the residence will not be liable for any claims related to radon control standards or requirements after the conveyance of the residence.
• Eliminating “radon progeny” from the Code. [3/4: 9-6 (party-line)]

SSB 1155 allows a certified radon tester to disclose the results of a radon test to a potential buyer of a nonpublic building when an offer to purchase has been presented by the buyer and if the potential buyer paid for the testing. [3/4: 14-0 (Chapman “pass”)]

SSB 1131 makes changes to the distribution of the E911 Emergency Communications Fund. Highlights include:

• The program manager is required to allocate to each joint E911 Service Board and to the Department of Public Safety (DPS) a minimum of $1,000 per calendar quarter for each public safety answering point (PSAP) within the service area of the DPS or joint E911 service board that has submitted an annual written request by May 15 of each year.
• The amount allocated is 76 percent of the total amount of surcharge generated per calendar quarter and is allocated based on this formula:

** 65 percent of the total available is allocated in proportion to the square miles of the service area to the total square miles in Iowa.

** 45 percent is allocated in proportion to the wireless E911 calls taken at the PSAP in the service area to the total number of wireless E911 calls originating in Iowa.

** Notwithstanding the previous allocation, the minimum amount allocated to each joint E911 service board and to the DPS is no less than $1,000 for each PSAP within the service area of the DPS or joint E911 service board.

• These allocated funds are to be used for communication equipment for the receipt and disposition of 911 calls.
• The program manager, in consultation with the E911 communications council, is required to allocate an amount not to exceed $50,000 per fiscal year for development of public awareness and educational programs related to the use of 911 by the public
• SSB 1131 clarifies that the funds are for the receipt and disposition of 911 calls. [3/4: 11-3 (Courtney, Chapman, Whitver “no”; Dvorsky “pass”)]

SSB 1170 allows first-time homebuyers who are residents of Iowa to establish a first-time homebuyer savings account to finance the purchase of a principal residence in this state. The account is required to be an interest-bearing savings account. The account may be established individually or jointly with the resident’s spouse. However, married taxpayers electing to file separate tax returns or separately on a combined tax return will not establish or maintain a joint account.

There is no limitation on the amount of contributions that may be made to or retained in a first-time homebuyer savings account. An account holder is required to use the funds in an account for eligible costs related to the purchase of a principal residence within 10 years following the year in which the account is first established. Eligible costs include the down payment and allowable closing costs of a principal residence that was purchased after the establishment of the account. If the account holder withdraws funds for any purpose other than the payment of eligible costs, the account holder is subject to a penalty equal to 10 percent of the withdrawal, unless the withdrawal occurs on the last business day of the calendar year or was because of the death of the account holder.

SSB 1170 prohibits the account holder from using account funds to pay administrative expenses of the account, but the bill does allow a financial institution where the account is held to charge a service fee.

SSB 1170 provides for two individual income tax incentives relating to first-time homebuyer savings accounts. First, an account holder is allowed to subtract from the individual income tax the amount of contributions made during the year to the account holder’s account, not to exceed $3,000 per individual, or $6,000 for a married couple with a joint account and filing a joint income tax return. If the account holder contributes more than that amount, the excess may be subtracted in a subsequent tax year provided the total exemption in any one year does not exceed $3,000 or $6,000, as applicable. Second, the bill exempts any interest or earnings received from an account holder’s account. Both the contribution exemption and interest exemption only apply for the first 10 years after the account holder establishes an account. SSB 1170 requires an account holder to add to net income the amount of withdrawal from an account that was made for purposes other than eligible costs of the account holder to the extent it was previously subtracted as a contribution.

SSB 1170 makes it a serious misdemeanor to knowingly prepare or cause to be prepared a false claim, statement or billing to justify the withdrawal of money from a first-time homebuyer savings account. 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. SSB 1170 requires the director of revenue and the treasurer of state to each adopt rules to jointly implement and administer the bill. SSB 1170 takes effect January 1, 2016, and applies to tax years beginning on or after that date. [3/4: 15-0]

SSB 1172 establishes a seven-person Board of Durable Medical Equipment Providers, and sets up the parameters and regulations for durable medical equipment providers to operate in Iowa.

KEY DEFINITIONS:

• Accrediting Organization – Any organization recognized by centers for Medicare and Medicaid Services as an accreditation body for durable medical equipment providers.
• Affiliated person – Any person who directly or indirectly managers, controls, or oversees the operation of a business entity that is a licensee, regardless of whether the person is a partner, shareholder, owner, officer, director, agent, or employee of the entity.
• Applicant – is an individual in the case of a sole proprietorship, or any officer, etc., or shareholder having an ownership interest equal to five percent or greater in the business entity.
• Consumer or Patient – is a person who uses durable medical equipment in their residence.
• Durable Medical Equipment – any product reimbursed under Medicare Part B durable medical equipment benefits and any product as defined by the federal government or reimbursable under Medicaid. This includes hospital beds, oxygen, walkers, continuous positive airway pressure machines, customized wheelchairs, and related seating and positioning devices, but does not include prosthetics or orthotics or any splints, braces, or aids custom-fabricated by a licensed health care practitioner.
• Durable medical equipment provider – a person or entity that sells, rents to or for a consumer any durable medical equipment or durable medical equipment services.
• Durable medical equipment provider personnel – persons who are employed by or under contract with a durable medical equipment provider.
• Durable medical equipment services – equipment management and consumer instruction, including selection, delivery, setup, and maintenance of equipment and other related services for the use of durable medical equipment in the consumer’s regular or temporary residence.
• General manager – individual who has the general administrative charge of the premises of a licensed durable medical equipment provider.
• Licensee – the person or entity who has the license to operate as a durable medical equipment provider.
• Moratorium – mandated temporary cessation or suspension of sales/services. Except that services related to durable medical equipment sold or rented prior to the moratorium will be continued without interruption, unless ordered otherwise by the board.
• Premises – buildings and equipment which are located at the address of the licensed durable medical equipment provider.
• Residence – a consumer’s home or place of residence, which may include a nursing home, assisted living program, elder group home, transitional living facility or other congregate residential facility.
• Retail sale – sale or rental of durable medical equipment directly to a consumer which does not require a prescription or billing of Medicare, Medicaid, or any other third-party insurance.

LICENSE REQUIRED – EXEMPTIONS

• A person will not do any of the following without a license from the Board.

** Hold oneself out to the public as providing durable medical equipment or services or accept physician orders.

** Hold oneself out to the public as providing durable medical equipment that typically requires services.

** Provide durable medical equipment or services to Iowa consumers.

• A separate license is required for those operating on separate premises, even if the providers are operating under the same management. For each location a provider operates, a Board inspection is required.
• These entities are exempt from licensure:

** Durable medical equipment providers operated by the federal government.

** Nursing Homes

** Assisted Living Programs

** Home Health Agencies

** Hospice Programs

** Intermediate care facilities for persons with intellectual disabilities or mental illnesses.

** Homes for special services

** Transitional living facilities

** Hospitals

** Ambulatory surgical centers

** Manufacturers and wholesale distributors when not selling directly to consumers

** Licensed health care practitioners who utilize durable medical equipment in the course of their practice, but do not sell/rent to their patients.

** Pharmacies

** Any durable medical equipment provider who only provides items for retail sale.

• A license is required in order to advertise.

PRINCIPAL PLACE OF BUSINESS OUT OF STATE – A provider that has a principal place of business outside of Iowa is required to maintain an office or place of business within Iowa, unless the principal place of business is located in a bordering state, is within 50 miles of an Iowa border and meets the other requirements.

LICENSE APPLICATION – RENEWAL – DUPLICATES – FEES

• Application is made under oath and accompanied by appropriate license fee.
• Applicant submits information showing compliance, which includes:

** A report specifying by category the durable medical equipment to be provided and indicating the equipment offered either directly or through contractual arrangements with existing providers – such as respiratory modalities, ambulation aids, mobility aids, sickroom setup, disposables

** A report specifying by the services to be provided and indicating those offered directly or through contractual arrangements with existing providers, including intake, equipment selectin, delivery, setup and installation, patient training, ongoing service and maintenance, retrieval.

** A list of contractors

** A description and explanation of any exclusions, suspensions, or terminations of the applicant from Medicare or Medical Assistance Program. Proof of compliance with the disclosure of ownership and control interest requirements of Medicare or Medical Assistance program will be accepted in lieu of this submission.

** A description and explanation of any felony committed by a member of the board of directors, etc. This does not apply to a director of a not-for-profit or organization if the director serves solely in a voluntary capacity, does not take part in day-to-day operations, receives no compensation, and has no financial interest and no family members with a financial interest.

** The applicant demonstrates financial ability to operate. This may include a $50,000 surety bond.  An existing surety bond will be sufficient.

** An applicant for license renewal who has demonstrated financial inability to operate is required to demonstrate financial ability to operate before renewal may occur.

** The Board is required to do criminal background checks.

** The Board will not issue a license to an applicant who has been found guilty of or has entered a plea of nolo contendere or guilty to any felony.

** Proof of professional and commercial liability insurance will be submitted. The amount will not be less than $250,000 per claim.

** Duplicate license – fee not to exceed the actual cost.

** License must be displayed. License may not be sold, assigned or transferred.

** License fees are nonrefundable.

** State, county or municipal governments are exempt from the license fees.

** If there is a change of ownership, the fee will not exceed $300 and an inspection fee of not more than $400 is to be paid by the applicant.

PROVISIONAL LICENSES – CHANGE OF OWNERSHIP

• Provisional license is issued for 90 days. Board is to conduct an investigation during this time to determine compliance. If this is met, a two-year license is issued.
• If there is a change of the general manager – the licensee is required to notify the Board within 45 days.

STANDARDS

• All applicable federal and state licensure and regulatory requirements.
• Honor of all warranties.
• Must maintain a physical facility, which is accessible to the public and staffed during posted hours of business. The location must be at least 200 square feet and contain space for storing records.
• Must maintain a primary business telephone. The exclusive use of a beeper, answering machine, answering service or cell phone during posted business hours is prohibited.
• Furnish the Board with any information required under Iowa law.
• Notify the accrediting organization when a new location is open.
• All locations must adhere to the standards set.
• Disclose to the Board all products and services, including the addition of new product lines.
• Be open to the public for at least 30 hours per week.

DUTIES OF THE PROVIDER

• Offer and provide durable medical equipment and services to consumers
• Provide at least one category of equipment directly by filling orders from its own inventory
• Respond to orders received by filling orders from own inventory or from other companies with which it has contracted, or customizing or fitting times for sale from supplies purchased under contract.
• Maintain trained personnel.
• Ensure that delivery personnel are trained appropriately.
• Appropriately and safely set up the equipment.
• Instruct patients and caregivers in the safe operation of the equipment.
• Recognize when additional education or follow-up patient compliance monitoring is appropriate.

INSPECTIONS BY THE BOARD

• Licensure inspections
• Inspections directed by Medicare and Medicaid.
• Licensure complaint investigations
• The Board will accept, in lieu of its own inspections for licensure, submission of a survey or inspection of an accrediting organization, provided the accreditation of the provider is not provisional.

LICENSE DENIAL REVOCATION OR SUSPENSION

• The Board may deny, revoke or suspend a license, or impose a civil penalty not to exceed $5,000 per violation per day.
• Grounds for administrative action or civil penalties include violation of rules, or an intentional reckless or negligent act that materially affects the health or safety of a patient.
• The Board may deny a license or revoke a license of a licensee who does any of the following:

** Makes false representation or mission of any material fact in an application.

** Has been previously found by any board under Chapter 147 to have violated the standards or conditions relating to licensure.

** Has been or is currently excluded, suspended or  terminated form, or has involuntarily withdrawn from, participation in and state Medicaid program, the Medicare program, or any other governmental or private health care or health insurance program.

• The Board may issue an emergency order immediately suspending or revoking a license.
• The Board may impose an immediate moratorium on the license.

PENALTIES

• Penalties for operating without a license are a class “D” felony.
• A fraud referral is made if a person received a government reimbursement for services from an unlicensed operator.
• Civil penalty of not more than $500,000 per violation or suspend any of the licensee’s existing licenses if a licensee is concurrently operating licensed and unlicensed provider locations.
• A provider found to be operating without a license may apply for licensure but will cease operations until a license is issued.
• Initial appointees to the Board will hold accreditation from an accrediting organization.
• Sections relating to forming the Board are effective upon enactment.
• Effective date and implementation is effective January 1, 2016. [3/2: 13-0 (Chapman, Whitver excused)]

SSB 1213 allows persons who have a Peace Officer Retirement Systems (PORS) disability benefit to earn 2.5 times the amount of the current earnable compensation of an active member of PORS at the same position on the salary scale, before their benefit is reduced. The current allowable amount is 1.5 times the amount. [3/2: 13-0 (Chapman, Whitver excused)]

SSB 1215 makes changes to Iowa election laws. Under current law, precinct election officials are required to tally and record write-in votes after the polls close in all elections. Under SSB 1215, the county auditor in a county using digital ballot counting technology  may direct the precinct election officials to tally or count the write-in votes after the polls close or may direct the officials to deliver those ballots to the special precinct board to tally and record the write-in votes on any day after the election and before the county board of supervisors canvasses the votes. Digital ballot counting technology is defined as technology in which digital images of write-in votes are printed by the precinct election officials at the polling place after the close of voting.

SSB 1215  also provides that precincts consolidated by the county auditor may have populations greater than 3,500. Current law prohibits any precinct from having a population greater than 3,500.

SSB 1215 also provides that the deputy in charge of election administration will earn an annual salary not to exceed 85 percent of the annual salary of the county auditor. [3/4: 15-0]

SF 225 provides that the employment protections to employees (Iowa Civil Rights Act) relating to pregnancy and childbirth also apply to employees who are absent from work due to adoption.

Under the bill, an employee’s absence due to an adoption is, for job-related purposes, a temporary disability and is required to be treated as such under any health or temporary disability insurance or sick leave plan. Employment policies and practices involving such items as the commencement and duration of leave, the accrual of seniority, and payment under any health or temporary disability insurance or sick leave plan must apply to a disability due to the employee’s absence because of an adoption on the same terms and conditions as they are applied to other temporary disabilities.

SF 225 prohibits an employer from terminating employees that are  absent because of an adoption.

When leave is not available or sufficient leave is not available under any health or temporary disability insurance or sick leave plan in connection with employment, SF 225 prohibits an employer from refusing to grant the employee a leave of absence if the leave of absence is for the period that the employee is preparing for or participating in the adoption of a child, or caring for a newly adopted child within the first year of adoption, or for eight weeks, whichever is less. The employee is required to provide timely notice of the period of leave requested. The employer may first require that the employee’s adoption of a child be documented and that the employee certify that the employee will not be able to reasonably perform their duties.

Penalty provisions for discriminatory employment practices are applicable to violations of the employment protections granted in SF 225. [3/2: 12-1 (Schultz “no”; Chapman, Whitver excused)]

HF 202 passed the House on February 17 by a vote of 98 to 1. HF 202 relates to the practice of retired volunteer dentists and dental hygienists. Highlights include:

• The Board may issue a retired volunteer license to a dentist or dental hygienist who has held an active license to practice within the past five years, and who has retired from practice. The retired volunteer license will enable the retiree to provide volunteer dental services. The Board is required to adopt rules, including eligibility requirements and services that may be performed.
• The Board will not charge an application or licensing fee for issuing or renewing a retired volunteer license. A retired volunteer license will not be converted to a regular license. A retired volunteer license will not be considered an active license.
• A person holding a retired volunteer license will not charge a fee or receive compensation in any form from any person or third party, including, but limited to, an insurance company, health plan, or state or federal benefit program.
• A person holding a retired volunteer license is subject to all rules and regulations governing dentistry or dental hygiene, except those relating to payment of fees, license renewal and continuing education requirements.
• A dental hygienist holding a retired volunteer license will abide by the permitted scope of practice of actively licensed dental hygienists. However, they may perform screenings or educational programs without an actively licensed dentist present.
• Applicants for a retired volunteer license will not be eligible for a retired volunteer license if they have surrendered, resigned, converted or allowed a license to lapse or expire because of or in lieu of disciplinary action.
• The Board may waive the five-year requirement if the applicant demonstrates that the applicant possesses sufficient knowledge and skills to practice safely and competently. [3/4: 15-0]