# Judiciary



The trouble with sales tax (It's not just the internet)

As the Iowa legislature considers extending sales tax to internet purchases and some other goods and services that are now exempt, Randy Bauer explains what’s at stake and other factors that have eroded sales tax revenues. -promoted by desmoinesdem

For many American taxpayers, April 17 is understood as the 2018 due date for federal (and many state) income taxes. It also features prominently in state and local tax discussions, as it is the date when the U.S. Supreme Court will hear oral arguments in a case that may impact on remote sales and use tax collection practices for state and local governments.

While that would be a major development and boon to many state and local governments, it is really only part of the story.

Supreme Court Limits on Collection of Sales Tax by Remote Sellers

The case to be heard next month, South Dakota vs. Wayfair, concerns sales tax collection related to sales conducted over the Internet. Two 20th century Supreme Court cases, Bellas Hess v. Illinois (1967) and Quill v. North Dakota (1992) have established limits on government’s ability to compel collection of sales taxes on remote transactions. In the Bellas Hess case, the high court determined that physical presence in a state was necessary to require the seller to collect sales tax for catalogue sales transactions conducted via phone or mail. As the catalogue sales era declined and the Internet became a more important part of commerce, the court extended this “nexus via physical presence” standard to include e-commerce transactions via Quill.

Background on Major State and Local Tax Revenue Sources

In general, the three largest revenue sources for state and local governments are property taxes (the largest local government source) and individual income and sales and use taxes. In the last few decades, sales taxes have become the largest state tax revenue source, and several states have sought to increase the use of this consumption-based tax source while reducing the use of income-based taxes.

There are credible arguments for relying on a consumption-based tax. For one, the tax is collected in generally small increments, which allows taxpayers to base purchasing decisions around their ability to pay. These small incremental payments also reduce the “sticker shock” that often comes from large lump sum payments of property and individual income taxes. Consumption taxes will also be borne by nearly all consumers – unlike, say, income taxes that can often be avoided by a large number of citizens.

That said, there is no “perfect tax,” and sales taxes are no different. All taxes will have a negative impact on economic activity (the “deadweight loss” associated with the increased cost for goods and services subject to tax). Sales taxes are also considered to be something of a regressive tax, in that lower income individuals and households tend to pay a higher percentage of their income as tax. Some of this concern is reflected in exemptions for broad categories of goods and services – all states exempt prescription drugs from sales tax, and a majority do the same for food. It is also possible to use refundable credits via the individual income tax to reimburse lower income taxpayers, as is done in several states.

Sales Tax and e-Commerce

As Amazon boxes on our doorsteps have become a ubiquitous part of everyday commerce, the revenue loss associated with the Quill case has become a significant concern to state and local governments. As Supreme Court Justice Anthony Kennedy noted in a 2015 concurring opinion (where he signaled his willingness to reconsider the decision in Quill), “When the Court decided Quill, mail-order sales in the United States totaled $180 billion. But in 1992, the Internet was in its infancy. By 2008, e-commerce sales alone totaled $3.16 trillion per year in the United States.”

That number continues to grow – according to Internet Retailer, U.S. web sales in 2016 reached $394.86 billion, or 11.7 percent of the nation’s total retail sales ($4.846 trillion).

State Strategies to Heighten Sales Tax Collection

In the face of this significant revenue loss, states have pursued a number of strategies to deal with the revenue loss. The first strategy was to seek to address the Court’s concerns in Quill, by working to simplify and develop greater consistency in sales tax statutes, primarily around definitions and other requirements directed at those who collect the tax.

The Streamlined Sales Tax Initiative was initiated by the National Governors Association (NGA) and the National Conference of State Legislatures (NCSL) in 1999. The goal was to increase uniformity that would either lead to greater vendor voluntary collection or the reconsideration of the two Supreme Court decisions. As of 2017, 24 states participate in the program as full members. While this is a significant number of states, several major states (such as California, Texas and New York) do not, which limits the agreement’s impact. While it is true that there are vendors who are voluntarily complying with this initiative and collecting tax on behalf of the participating states, it will likely never reach the necessary “critical mass” from a compliance perspective.

The next foray came via the U.S. Congress. Via its authority to regulate interstate commerce, Congress could establish a national requirement for collection of state and local sales taxes on purchases via the Internet (or, for that matter, on catalogue and phone sales as well). Bills have been introduced for many years in Congress to do just that, and they have, in recent years, also received support from major “bricks and mortar” retailers who argue the existing taxing structure creates a double standard that harms this segment of the retail market.

From a tax policy perspective, the point is well taken: a commonly accepted principle of taxation is “horizontal equity” – that taxpayers in similar circumstances should be treated fairly. When local retail establishments are required to collect this tax but remote sellers are not, the resulting price disparity is a perfect example of horizontal inequity.

To date, no version of the “Marketplace Fairness Act” has made its way through the legislative process. It came (somewhat) close in 2013, when the bill was passed by the Senate on a bipartisan 69-27 vote. However, it did not clear the House, and current efforts to revive the bill do not look promising.

It is important to remember that sales (or use) taxes are nearly always owed on these remote purchases – the issue isn’t one of creating a new tax but getting compliance with payment of the existing tax. As previously noted, an advantage of the sales tax is it is paid in hundreds/thousands/millions of separate transactions. The downside is that it is administratively difficult to collect the tax from the hundreds/thousands/millions of consumers who, if the tax isn’t collected at the time of purchase, are to remit it to comply with state and local sales tax statutes.

As a result, state legislatures have resorted to a variety of statutory strategies to induce sales tax collection. Some of the first attempts related to creating nexus beyond mere physical presence. This was initiated by the State of New York in 2008, often referred to as the “Amazon tax.” Under the New York State statute, a rebuttable presumption is created that a nonresident Internet seller has nexus with the State for sales/use tax purposes if (i) the nonresident has agreements with in-state companies whereby potential customers are referred to the nonresident, and (ii) the nonresident’s gross receipts from customers under such an agreement exceed $10,000 during the previous four quarters. According to a report by the New York State Comptroller, since the law’s inception, online retailers remitted $360 million in sales taxes (on over $4 billion in taxable online sales) as of February 2012.

Since that first state foray – and the litigation that followed – other states have also considered and/or adopted similar legislation. It could be argued that the multiple state efforts to create “Amazon nexus” has proven successful, as Amazon is (as of April 1, 2017) collecting sales tax on sales in all 50 states. Additional attempts to create “economic nexus” (where the amount of sales into a state alone creates sufficient grounds to require collection of the tax) have become popular, with many states enacting this type of statute.

State Efforts to Create an Economic Nexus Standard to Compel Collection of Sales Tax

The economic nexus standard was first adopted by the States of Alabama and South Dakota – and South Dakota legislative and policymakers have been up-front about the fact that the economic nexus statute was crafted as a method to bring the issues of Quill back before the Supreme Court. Several other states passed economic nexus standards last year, including Indiana, Maine, North Dakota, Ohio, Rhode Island, Tennessee (done by rule) and Wyoming. The South Dakota statute is now the one before the high court.

A somewhat different state strategy has been undertaken by the State of Colorado, which enacted a law focused on enticing retailers to collect the tax or face significant paperwork requirements. The law, which survived court challenges (including the U.S. Supreme Court declining to review it, and then U.S. Court of Appeals Judge Neil Gorsuch writing a concurring opinion strongly implying that, given the opportunity, the Supreme Court should overrule Quill), requires retailers that do not collect sales taxes to file a report with the State Department of Revenue on how much their Colorado customers have purchased and to inform customers that they may owe state taxes on the purchases. The law requires large online retailers to send customers a notice every time they buy something to explain that they may owe use tax; if the customer makes more than $500 a year in purchases, the retailer must also send them an annual summary of their purchases. The seller must also file an annual report with the State detailing customer name, billing and shipping addresses and the total amount spent each year.

Other states have replicated this approach. Advocates for the policy believe that it will better inform consumers of their obligation to pay use tax on their out-of-state purchases or lead to sellers voluntarily collecting the tax to escape the reporting requirements (for both them and their customers). States who adopted Colorado-type reporting standards (all effective July 1, 2017) include Alabama, Louisiana and Rhode Island.

What’s At Stake?

The revenue at stake in this area is significant. While the estimates of lost revenue vary considerably (and some of the “lost revenue” estimates include Amazon sales that are now applying sales tax in all 50 states), there is little doubt that it is “real money” to state and local governments. The federal General Accountability Office (GAO) estimated that state and local governments could have collected up to $13 billion more in 2017 if they’d been allowed to require sales tax payments from online merchants and other remote sellers. That said, that estimate comprises a significant amount of business-to-business sales – and pretty good data suggests there already is reasonable compliance by businesses through payment of use tax on at least the majority of these transactions.

Besides the obvious issues related to revenue loss and impact on the economy, what are the issues on both sides of this controversy? Those who support the Quill standard (or at least something other than unfettered state ability to compel collection of the tax by sellers) argue that the thousands of different taxing jurisdictions and definitions make collecting the tax overly burdensome.

It is notable, however, that in the years since Quill, a number of Internet-based businesses have cropped up to handle the administrative side of determining the tax that is owed and applying it to electronic transactions. Meanwhile, the thousands of vendors who already comply with varying state and local sales taxes suggest this is not unsolvable. In fact, much of the effort on the seller side has been focused on providing some reimbursement for collection of the tax – which suggests the issue is more one of economics than legal compliance. While opponents also argue that the burden will fall disproportionately on small businesses, it is notable that the state “economic nexus” statutes to date have included an exemption for businesses with low levels of sales into a state.

On the other side of the argument, supporters of collection point to Justice Kennedy, when he noted, “There is a powerful case to be made that a retailer doing extensive business within a State has a sufficiently ‘substantial nexus’ to justify imposing some minor tax-collection duty, even if that business is done through mail or the Internet.” After all, “interstate commerce may be required to pay its fair share of state taxes.” D.H. Holmes Co. v. McNamara, 486 U.S. 24, 31 (1988).

My guess is that the Supreme Court will, in some way, overturn its ruling from Quill – perhaps via the “substantial nexus” approach Justice Kennedy suggests. The question will be how far the court goes and whether their action leads the Congress to consider finally taking action to create something of a national standard for nexus and the amount of obligation to collect the tax that might be imposed on sellers.

While any greater latitude for state and local governments in collecting these taxes will be welcome news, my personal belief is that there are bigger issues at play relating to sales tax and the U.S. economy, and some of the focus on South Dakota v. Wayfair blinds policymakers to more fundamental issues.

Sales Tax Erosion of the Base

The fact is that the sales tax base has been eroding for decades, using common measures such as sales tax collections as a share of personal income. While state and local governments have attempted to ameliorate these declines through rate increases, that creates its own set of problems.

Why is this happening? There are several reasons. For one thing, legislatures continue to provide new or expanded exemptions from the tax (after all, most every legislator loves to cut taxes). In Iowa, a good example is the broadened sales tax exemption for supplies used in the manufacturing process. When passed in 2016, that exemption was estimated to reduce revenue by approximately $29 million a year, but it now looks like a revenue loss in the neighborhood of $100 million a year.

Some of the reduction in sales tax revenue is simply a function of demographics. As a population, we continue to get older – and as we get older, we generally make fewer purchases, per capita, that are subject to the sales tax.

Sales Tax Statutory Construction

An even bigger problem, in my estimation, concerns how state sales tax statutes are structured. The state sales tax statues generally were written in the early part of the 20th century, when most consumption consisted of tangible goods. As a result, nearly all state sales tax statute will broadly tax all tangible goods – the standard generally is that tangible goods are presumed to be subject to tax unless specifically exempted. On the other hand, relatively few services were a part of everyday commerce; as a result, the statutes generally presume that services are not subject to tax unless specifically enumerated.

This “double standard” related to sales tax on consumption has become increasingly more important, as what we consume has gradually – but dramatically – shifted from goods to services. Fifty years ago, about two-thirds of consumption was tangible goods, but now about two-thirds is services. Absent legislative action to change the standard of presumption related to consumption subject to the sales tax, states have had to rely on the often heavy lift of identifying specific services to be subject to tax. This is a difficult process, and few states (generally only those with the greatest reliance on sales tax) have been able to broadly apply the tax to services.

This trend is likely to continue in the coming years. For one thing, health care has become a huge service industry in this country. An example of how health care and the consumption tax code have played out in Iowa is instructive. In 1999, the Iowa legislature passed and Governor Tom Vilsack signed into law a sales tax exemption for goods and services related to non-profit hospitals. At the time of passage, the fiscal note suggested the annual cost of exempting these services (granted, some goods as well, but mostly services) was about $15 million. However, when the Department of Revenue issued its tax expenditure report in 2000, the cost was now estimated at $53.7 million. It ballooned to $108.4 million in 2005, $125.4 million in 2010 and $160.6 million in 2015.

Several governors – Republicans and Democrats alike – have made attempts to significantly broaden the sales tax base to include more services. However, to date, those efforts have been largely unsuccessful.

If states are to rely on consumption taxes as their primary revenue source, they will have to come to grips with a system that has mostly ignored well over half of what is actually consumed. While changes to collection of taxes from Internet sales are nice, it is still only improving collection rates on a minority of consumption – and that is, in the long run, a losing proposition for state and local governments.

Randall Bauer is a director in the Management and Budget Consulting practice for the PFM Group. Since 2005, he has led its state and local government tax policy practice. He has numbered nearly half the state and many large local governments among his clients. Prior to joining PFM, he spent 18 years in state government, including serving for seven years as Governor Tom Vilsack’s State Budget Director.

Doug Gross used Des Moines Register to lobby for his law firm's client

Longtime Republican power-broker Doug Gross published two Des Moines Register guest columns within a three-month period criticizing a planned Polk County program to assess the risk of releasing defendants before trial. The BrownWinick partner did not disclose to the newspaper’s editors that his law firm’s lobbying team represents Lederman Bail Bonds, a company that would be adversely affected if fewer low-risk offenders are required to post a cash bond to get out of jail.

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Senate GOP's budget cuts could close more than 30 county courthouses

More than 30 county courthouses could close if the Iowa legislature enacts Senate Republicans’ plan to cut more than $4.8 million from the judicial branch for the remainder of the 2018 fiscal year, State Court Administrator Todd Nuccio warned on January 25. Iowa Senate Appropriations Committee Chair Charles Schneider proposed some $52 million in mid-year budget cuts the same day; within hours, his committee approved the bill along party lines.

Earlier this month, Governor Kim Reynolds proposed about $27 million in spending cuts before the end of the fiscal year, of which about $1.6 million would come from the judicial branch. House Republicans have not yet released a plan for mid-year cuts. In January 2017, leaders from both chambers worked out a deal behind closed doors before publishing a bill. But House Speaker Linda Upmeyer “said Thursday the House was still working on its plan for spending reductions,” the Des Moines Register’s William Petroski and Brianne Pfannenstiel reported.

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Weekend open thread: Accountability

Senator Chuck Grassley hit a new low last week in running interference for the White House on the Trump/Russia investigation. After leaders of the private research firm Fusion GPS called on Congressional Republicans “to release full transcripts of our firm’s testimony” about the so-called Steele dossier, Grassley and Senator Lindsey Graham wrote to the Department of Justice and the FBI “urging an investigation into Christopher Steele.” Ranking Senate Judiciary Committee Democrat Dianne Feinstein was not consulted about the referral, which she accurately characterized as “another effort to deflect attention from what should be the committee’s top priority: determining whether there was collusion between the Trump campaign and Russia to influence the election and whether there was subsequent obstruction of justice.”

Here in Iowa, the Department of Human Services recently acknowledged that privatizing Medicaid “will save the state 80 percent less money this fiscal year than originally predicted,” Tony Leys reported for the Des Moines Register. The Branstad/Reynolds administration has claimed since 2015 that shifting care for one-sixth of Iowans to private companies would result in big savings for the state. Officials were never able to show the math underlying those estimates. Staff for Governor Kim Reynolds and the DHS now portray the miscalculation as an honest mistake, which a more “comprehensive methodology” will correct. The governor would have been wiser to pull the plug on this disaster last year.

Forthcoming Bleeding Heartland posts will address those failures in more depth. But now it’s time to hold myself accountable for the 17 Iowa politics predictions I made at the beginning of 2017. Did I improve on my showing of seven right, two half-right, and seven wrong out of my 16 predictions for 2016?

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Kent Sorenson's prison sentence will stand

A panel of judges on the Eighth Circuit Court of Appeals unanimously found that U.S. District Court Judge Robert Pratt did not abuse his discretion by sentencing former State Senator Kent Sorenson to 15 months in prison. Federal prosecutors had recommended probation after Sorenson admitted to taking money in exchange for endorsing Ron Paul for president, citing his cooperation with investigations of former Paul campaign operatives. But Pratt concluded that “Defendant’s conduct, viewed through the lens of America’s traditional understanding of the profound evils of political corruption, requires a substantial sentence.” A term of probation would not “reflect the seriousness” of his offenses, nor would it “deter others from engaging in similar criminal conduct.”

Sorenson appealed the sentence on several grounds. The Appeals Court found Pratt was not required to consider the value of Sorenson’s campaign work as a mitigating factor, nor was he wrong to consider the senator’s public office when imposing a sentence. I enclose below today’s full decision from the Eighth Circuit panel. You can read the District Court’s lengthy sentencing memorandum here.

Sorenson began serving time in March at a federal prison in Illinois. According to a September blog post by Shawnee Sorenson, her husband will transfer to a halfway house in January to finish his sentence. She had previously accused Judge Pratt of imposing a harsh punishment as “retribution for the work Kent did to unseat three unlawful Supreme Court Justices and unseat a current Supreme Court Justices [sic] wife.” Sorenson campaigned against retaining three Iowa Supreme Court justices in 2010, the same year he defeated Democratic State Senator Staci Appel. Her husband, Brent Appel, continues to serve on the high court.

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How Iowa could have lost three Supreme Court justices in 2016

Remember how awful you felt on November 9, 2016, as you started to grasp what we were up against following the most devastating Iowa election in decades?

Would you believe the results could have been even worse?

Imagine Governor Terry Branstad appointing three right-wingers to the Iowa Supreme Court. It could have happened if conservative groups had targeted Chief Justice Mark Cady, Justice Brent Appel, and Justice Daryl Hecht with the resources and fervor they had applied against three justices in 2010.

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Muscatine official hides cost of crusade against mayor

Going into tomorrow’s mayoral and city council elections, citizens of Muscatine have no idea how much city leaders spent on the unsuccessful and unconstitutional attempt to remove Mayor Diana Broderson from office. Key internal correspondence related to the long-running power struggle and “kangaroo court” removal proceeding has also been shielded from public view.

City administrator Gregg Mandsager has thwarted records requests from local media by charging outrageous fees for obtaining documents or by redacting information from records provided.

Mandsager’s approach has subverted the spirit of the open records law, raising more questions about the advice Muscatine officials have received from city attorney Matthew Brick.

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Courts reject legal challenges to Iowa collective bargaining law

Two Polk County District Court judges have dismissed lawsuits challenging the constitutionality of Iowa’s new collective bargaining law. Although the plaintiffs are likely to appeal the rulings, the bar will be high to convince four Iowa Supreme Court justices the state had no rational basis to enact changes affecting some public employees more adversely than others.

I enclose below the court rulings and key points, along with reaction from leaders of AFSCME Council 61 and the Iowa State Education Association, which filed the lawsuits earlier this year.

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Court vacates "fundamentally unfair" removal of Muscatine mayor

“Due process requires a fair trial before a fair tribunal, not simply the empty appearance of fairness,” declared District Court Judge Mark Cleve in a ruling that threw out the removal of Mayor Diana Broderson in May. Cleve found that the Muscatine City Council’s “fundamentally unfair” actions violated Broderson’s due process rights in two ways: by in effect having council members act as investigators, prosecutors, and judges; and by “having an interest in the outcome of the removal proceeding.”

The October 24 decision (enclosed in full below) drew heavily on what happened during five closed meetings between February 2016 and January 2017. During those sessions, council members discussed with city attorney Matthew Brick their grievances against the mayor and various options for dealing with her.

The city of Muscatine had unsuccessfully appealed to the Iowa Supreme Court, hoping to prevent the District Court from considering transcripts of those closed sessions. And no wonder: Cleve found “the record clearly demonstrates that the Council had prejudged the issues,” and that “the Mayor’s removal was a foregone conclusion.”

Although Cleve did not directly address Brick’s conduct, his decision raises questions about the legal advice council members received from a partner in Iowa’s top law firm for representing municipalities.

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Groups challenge Iowa's "ag gag" law in federal court

Two years ago, a federal court in Idaho ruled that state’s “Ag Gag” law unconstitutional, saying the ban on “interference with agricultural production” violated the First Amendment. That ruling pointed to similar problems with Iowa’s law prohibiting so-called “agricultural production facility fraud.”

Today, “a broad coalition of public interest groups” asked a federal court to strike down Iowa’s law under the U.S. Constitution and “enter an order blocking the state from enforcing it.”

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Former Iowa prison nurse files landmark transgender rights lawsuit

A former prison nurse has filed Iowa’s first transgender rights case since state lawmakers and the governor added gender identity protections to the Iowa Civil Rights Act in 2007, the American Civil Liberties Union of Iowa announced today.

Jesse Vroegh is suing the Iowa Department of Corrections, the Iowa Department of Administrative Services, the insurance company Wellmark Blue Cross/Blue Shield of Iowa, and State Penitentiary Warden Patti Wachtendorf on four counts of discrimination on the basis of gender identity and sex. The plaintiff charges that while employed at the Iowa Correctional Institution for Women in Mitchellville, he “was continuously denied the use of restrooms and locker rooms consistent with his gender identity, because he is transgender.”

In addition, the Department of Corrections “denied transgender employees the same level of health care benefit coverage that it provided to non-transgender employees,” while the Department of Administrative Services “was involved in the decision to select and offer to employees of the Iowa Department of Corrections only employer-sponsored health care plans which discriminated against transgender employees.”

Vroegh claims the state’s actions violated the Civil Rights Act and provisions in the Iowa Constitution that prohibit discrimination on the basis of sex and require equal protection for historically disfavored groups. I enclose below the plaintiff’s initial court filing and a press release providing more background on the case.

Although he no longer works for the Department of Corrections, Vroegh said in a statement he is proceeding with the lawsuit “because I feel I need to fight for the rights not only of transgender people who work for the state but for other Iowa workers as well. I’m not asking for any special treatment of myself or any other transgender person. All I’m asking for is that transgender people be treated the same way as people who are not transgender.”

The ACLU of Iowa noted, “The first transgender employment discrimination case, Sommers v. Iowa Civil Rights Commission, was decided in 1983. But today’s action is the first case we’re aware of to be filed in Iowa District Court that asserts gender identity discrimination in employment since the Iowa Civil Rights Act was amended in 2007 to include gender identity and sexual orientation.” A few state House and Senate Republicans joined almost all of the Democratic lawmakers to approve the new civil rights language during the first year Democrats had controlled both chambers of the legislature in more than a decade. Governor Chet Culver signed the bill into law.

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Iowa Senate Republicans hold no one accountable for sexual harassment case

Iowa Senate Republicans voted last Friday to make no changes in the caucus’s staff or leadership, following a sexual harassment lawsuit that led to a $2.2 million verdict against the state. Instead, Secretary of the Senate Charlie Smithson will internally review allegations that came to light through Kirsten Anderson’s lawsuit, with the chamber’s number two Republican, Senate President Jack Whitver, “overseeing the investigation.”

Senate Majority Leader Bill Dix has claimed repeatedly that any problems relating to a hostile work environment were resolved soon after he took charge of the Senate GOP caucus in late 2012. But court testimony indicated that neither senators nor top Republican staffers ever asked others employed by the caucus whether they had observed sexual harassment or other offensive workplace conduct. Although Dix admitted hearing about matters “I was not aware of” during the trial, he still insists Anderson was fired in May 2013 solely because of her work product. Meanwhile, the current Iowa Senate Republican communications staffers occupy themselves with who-knows-what, as opposed to keeping the website and social media feeds current.

Dix confirmed that Republicans will not cover the costs of any payout to Anderson, opting to let taxpayers foot the bill for the lack of professionalism that persisted for years.

Republicans’ failure to hold anyone accountable for this debacle underscores the need for independent consultants to take a hard look at what happened in the Senate GOP caucus and how to fix the work environment. Anderson has asked a Polk County District Court to make that happen.

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Weekend open thread: Short-sighted elected officials edition

Who knew that when you tell a state agency leader to save another $1.3 million somehow, he might cut some important programs and services? Not State Representative Dave Heaton, the Republican chair of the Iowa legislature’s Health and Human Services Appropriations Subcommittee.

Who knew that when you impeach a mayor using a kangaroo court proceeding, a judge might order the mayor reinstated while her appeal is pending? Not Muscatine City Council members.

Follow me after the jump for more on those stories. This is an open thread: all topics welcome.

I’m also interested to know what readers think about Iowa Insurance Commissioner Doug Ommen’s request to waive certain provisions of the Affordable Care Act in order to bring Wellmark Blue Cross/Blue Shield back to Iowa’s individual insurance market for 2018. Elements of the “stopgap” measure violate federal law; health care law expert Timothy Jost told the Des Moines Register’s Tony Leys that some parts of Ommen’s proposal are “extremely problematic” and not likely “doable.” Writing in the Wall Street Journal, Anna Wilde Mathews and Louise Radnofsky saw the Iowa developments as “a key test of the ability to modify the [Affordable Care Act] through executive authority.” Slate’s Jordan Weissmann agreed.

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Where things stand with Iowa's new anti-abortion law

Ten days after Governor Terry Branstad signed sweeping limits on access to abortions, part of the new law is still on hold while courts consider a challenge filed by Planned Parenthood of the Heartland. Planned Parenthood maintains that a 72-hour waiting period for abortions at any stage of pregnancy would violate women’s due process and equal protection guarantees. In addition to creating an “undue burden” for women with “onerous and medically unnecessary restrictions that the Iowa Legislature does not impose upon any other medical procedure for which people may consent,” the law imposes new requirements for physicians, which Planned Parenthood is challenging as a violation of the doctors’ due process rights.

That aspect of the lawsuit informed the Iowa Supreme Court’s May 9 order continuing a temporary injunction. The high court found, “The State has failed to rebut the assertion by the petitioners that the materials that serve as the foundation information required to be provided to women seeking an abortion have not yet been developed by the Department of Public Health pursuant to the law.” The order remanded the case back to Polk County District Court, where within 30 days, Judge Jeffrey Farrell will hold a final hearing on Planned Parenthood’s request for an injunction on the new law. Farrell had denied the first request for a temporary injunction, saying plaintiffs had not shown new burdens on women seeking abortions in Iowa would constitute an “undue burden.”

For those who want a preview of the legal points Farrell will consider when he decides whether to block enforcement of Iowa’s law, I enclose below four documents:

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Not with a bang but a whimper - quiet conclusion to Muscatine impeachment

I’ll be stunned if this holds up in court after reading Tracy Leone’s previous reports on the unprecedented effort to remove the Muscatine mayor. -promoted by desmoinesdem

There were almost as many journalists in the room as there were Muscatine residents present when the city council voted unanimously on May 11 to remove Mayor Diana Broderson from office in the conclusion of the first impeachment trial in Iowa history. (Watch the video of the meeting, which lasted less than three minutes.)

The special council meeting was called shortly after the deadline for defense and prosecution attorneys to submit their evidence Tuesday, May 2.

The decision to remove the mayor was the single issue on the agenda. The copies of the agenda sitting on a small table just inside council chambers stated that this would be an “In-Depth” meeting. The second item on the agenda after the roll call said there would be “Discussion and Possible Action Regarding Petition to Remove Mayor”. It was followed by four bullet points:

• Post-Hearing Brief in Support of Removal of Mayor – John Nahra
• Finding of Fact and Order on the City of Muscatine’s Written Charges of Removal – John Nahra
• Brief and Memorandum of Law – William Sueppel
• Proposed Decision – William Sueppel

After all this thoughtful discussion from the prosecution and defense, the third item on the agenda there said there would be a time for “Comments”, assumedly from the public.

None of that “in-depth” consideration happened.

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Early clues about the Kim Reynolds leadership style are not encouraging

Lieutenant Governor Kim Reynolds will likely begin performing the duties of our state’s highest office very soon, following Governor Terry Branstad’s expected confirmation as U.S. ambassador to China. Speaking to journalists, some Republicans who have worked with Reynolds have enthused about her willingness to study the issues and be engaged in policy-making as part of her long preparation for the job.

Unfortunately, the way Reynolds has handled the controversy surrounding her authority to appoint a new lieutenant governor has revealed a willful disdain for research and opposing views.

Now, she admits she may have trouble working with Attorney General Tom Miller, whom she views as “my legal counsel” interfering with “my plan.”

If recent events reflect how Reynolds will approach other complicated and contentious issues, Iowans have reason to worry.

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Read Planned Parenthood's lawsuit against Iowa's new anti-abortion law

Iowa’s proposed 72-hour waiting period for all abortions represents an “unwarranted intrusion into women’s personal privacy and autonomy” that “will threaten women’s health” and create “an undue burden” with “an improper purpose,” according to a lawsuit Planned Parenthood of the Heartland filed yesterday in Polk County.

Governor Terry Branstad plans to sign Senate File 471, which would be one of the country’s most restrictive anti-abortion laws, first thing in the morning May 5. Originally conceived as a ban on most abortions after 20 weeks of pregnancy, the bill became much broader when Iowa House Republicans added the no-exceptions 72-hour waiting period, new ultrasound rules and a requirement that doctors inform women about other options and “indicators, contra-indicators, and risk factors including any physical, psychological, or situational factors related to the abortion.”

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Iowa Supreme Court suspends Ted Sporer's law license for six months

A once-prominent voice for central Iowa Republicans will be unable to practice law for six months under an Iowa Supreme Court ruling announced yesterday. In a unanimous decision enclosed in full below, the justices found that Ted Sporer made “false statements to a tribunal” and engaged in “misrepresentation or deceit,” as well as conduct “prejudicial to the administration of justice.” For Sporer’s side of the story, watch his presentation during last month’s oral arguments before the high court (video also enclosed below).

The disciplinary action stemmed from a 2013 case, in which Polk County District Court Judge Douglas Staskal determined “beyond a reasonable doubt” that Sporer “fabricated evidence” and “lied under oath” to help a client who was violating the terms of a divorce decree. Bleeding Heartland posted relevant excerpts from that ruling here.

The Supreme Court’s Grievance Commission had recommended the six-month suspension, citing “significant aggravating circumstances”: Sporer’s long experience as an attorney, violations of multiple ethics rules, and prior disciplinary history including a public reprimand. Scroll to the end of this post to read a 2011 letter to Sporer from the Iowa Supreme Court Attorney Disciplinary Board, citing misrepresentations to a client he had failed to represent “with reasonable diligence and promptness.”

Sporer chaired the Polk County Republican Party from 2001 to 2009 and served on the Republican Party of Iowa’s State Central Committee from 2002 to 2008, during which time he spent five years as the GOP’s State Organization Chairman. He was also an active voice in Iowa’s conservative blogosphere during the last decade. However, he has not updated The Real Sporer blog since 2012.

The last time Sporer was in the news, he was representing then State Senator Kent Sorenson in a lawsuit over allegedly stolen e-mails (which was later settled out of court) and during a criminal investigation of Sorenson’s actions before and after the 2012 Iowa caucuses. Sporer repeatedly denied his client had received any “direct or indirect payment from the Ron Paul campaign.” Even as revelations about payments from Michele Bachmann’s presidential campaign forced Sorenson to resign from the Iowa Senate, Sporer continued to insist his client had not lied. Sorenson later pled guilty to the hidden payment scheme and was eventually sentenced to 15 months in prison after cooperating with the federal investigation into former Paul campaign operatives.

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Resolution of lawsuit removes political case for Des Moines Water Works bill

Opponents of the legislative effort to disband the Des Moines Water Works got a boost yesterday when the water utility’s Board of Trustees voted not to appeal last month’s federal court ruling dismissing their lawsuit against three northwest Iowa counties. The Iowa Farm Bureau’s wrath over that case inspired a bill that would transfer authority over the Des Moines Water Works to three area city councils.

Agriculture committees in the Iowa House and Senate advanced versions of the Water Works bill, but neither chamber voted on the measure before a “funnel” deadline in late March. Several House and Senate Republicans representing districts with independently-managed water utilities spoke privately about opposing the bill.

Among Iowans who have been fighting this legislative overreach, one big fear has been that powerful Republicans would slip Water Works language into an appropriations bill during the final days of the session. Senate Appropriations Committee Chair Charles Schneider has pledged not to do so, but his House counterpart Pat Grassley has made no such promise. The deadline for appealing the federal court ruling was coming up on April 17, and some Water Works supporters worried that pursuing the case might strengthen the Farm Bureau’s allies at the Capitol, who are still trying to get this language to Governor Terry Branstad.

Instead, the Water Works will waive its right to appeal in exchange for the defendants agreeing not to pursue legal fees. According to Laura Sarcone, communications specialist for the water utility, the next step will be defense counsel getting the boards of supervisors of Sac, Buena Vista, and Calhoun counties to sign off on the agreement. The U.S. Department of Justice would also have to approve the resolution.

I would guess that the county supervisors will happily agree not to pursue legal fees in exchange for finalizing an end to the lawsuit. After all, the cost of defending the case didn’t come out of their budgets. As Art Cullen discussed in a Pulitzer Prize-winning series of editorials for the Storm Lake Times, secret donors, supposedly unknown even to the county supervisors themselves, paid for the first $1 million or so of the defendants’ legal expenses. The Iowa Farm Bureau and Iowa Corn Growers Association stepped in to cover the rest.

I enclose below a Water Works news release and the ruling from U.S. District Court Chief Judge Leonard Strand. In dismissing the case, he found that the Water Works “may well have suffered an injury” from pollutants entering waterways in the named counties, but the northwest Iowa drainage districts “lack the ability to redress that injury.” Almost certainly, the Water Works would not have prevailed on appeal to the Eighth Circuit. The lawsuit accomplished only one thing: making Iowa’s dirty water a more salient political issue. Even so, bills that would address the major source of the problem–agricultural runoff–have no more traction now than they ever did.

APRIL 19 UPDATE: No Water Works provisions are in the standings bill Schneider introduced this week.

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Weekend open thread: Stolen Supreme Court seat edition

Confession: I didn’t watch the confirmation hearings of Judge Neil Gorsuch*. The outcome was foreordained, down to Republicans invoking the “nuclear option” of changing Senate rules to allow confirmation of U.S. Supreme Court nominees with a simple majority of votes. The late-breaking news of flagrant plagiarism by Gorsuch* was never going to change any Republican minds.

Democrats could make various political arguments for fighting this nomination through extraordinary means. Even though I knew the filibuster wouldn’t keep Gorsuch* off the high court, I supported the tactic for one reason alone: “business as usual” cannot go on after the theft of a Supreme Court seat.

No matter how qualified Gorsuch* is on paper, he should never have been able to receive this lifetime appointment. Denying the equally qualified Judge Merrick Garland a Judiciary Committee hearing was unprecedented and will be a permanent stain on Senator Chuck Grassley’s legacy. Republican excuses for refusing to consider President Barack Obama’s nominee have no more merit now than they did a year ago. Gorsuch* will never be a legitimate Supreme Court justice in my eyes, and Bleeding Heartland will put an asterisk by his name in perpetuity.

This is an open thread: all topics welcome.

Another tragic story caught my attention this past week: Rekha Basu’s feature for the Des Moines Register on former Mason City council member Alex Kuhn. Well-liked and seen by many as a rising star, Kuhn took his own life last summer. Basu told the story through the frame of the intensely negative feedback–by some accounts bullying–Kuhn received after opposing an incentives package for a huge Prestage pork processing plant. When John Skipper told the story of Kuhn’s final months in the Mason City Globe-Gazette last December, he focused on the young man’s battle with depression. According to Basu, Kuhn’s parents believe Skipper built “a narrative around depression, enabling those who had hurt Alex to turn his suffering back on him.”

The Globe-Gazette’s editor David Mayberry wasn’t a fan of the way Basu built her narrative, on grounds he laid out in this Twitter thread. He observed that “pinning a suicide to one cause is a well-documented no-no in journalism” and linked to this guide for reporters to support his case.

No one can precisely reconstruct why Kuhn’s suffering became too much to bear. Clearly the Prestage controversy profoundly affected him. I can’t imagine what a devastating blow his death was to his loved ones. It’s a huge loss for Iowa as well. Whatever you may think about local giveaways to profitable corporations, elected officials with Kuhn’s political courage are few and far between.

Read the teachers union lawsuit against Iowa's collective bargaining law

The largest labor union representing Iowa teachers and its Davenport affiliate filed a lawsuit yesterday challenging the constitutionality of House File 291, which eliminated almost all collective bargaining rights for teachers.

I enclose below the full text of the initial Polk County District Court filing. Scroll down to read comments Iowa State Education Association President Tammy Wawro delivered at a press conference, which you can watch here.

Like the lawsuit Iowa’s AFSCME chapter filed in February, the new lawsuit targets the unequal treatment of two classes of workers under the revised Chapter 20, which governed collective bargaining here for more than four decades. “Public safety” workers will be able to keep bargaining over a larger range of subjects, while other public employees can negotiate only about a handful of subjects, primarily base pay. ISEA maintains that this division violates Article I, Section 6 of the state constitution, which stipulates, “All laws of a general nature shall have a uniform operation; the general assembly shall not grant to any citizen, or class of citizens, privileges or immunities, which, upon the same terms shall not equally belong to all citizens.”

In addition, the ISEA is challenging the law’s two biggest union-busting provisions: a ban on automatic payroll deduction for union membership and political contributions, and procedures that will make it harder for public unions to stay certified. ISEA holds that the payroll deduction ban also violates the uniformity clause of Article I, Section 6, because such deductions will be allowed for other professional associations or organizations. In addition, the lawsuit charges that by creating “an undemocratic election system” for unions representing public workers, which “counts votes based on population instead of number of votes cast,” the law violates the substantive due process guarantee of Article I, Section 9.

Attorney General Tom Miller is not defending the collective bargaining law, to “avoid any questions about a potential conflict.” The state retained the Belin McCormick law firm to handle legal challenges. At the end of this post, I enclose the motion filed to dismiss ASFCME’s lawsuit; the defense against ISEA’s suit will make the same arguments.

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Weekend open thread: Iowa legislative news roundup

The Iowa legislature’s second “funnel” deadline passed on March 31. In theory, aside from appropriations bills, any legislation that hasn’t yet cleared one chamber and at least one committee in the other chamber is no longer eligible for consideration for this year. However, leaders can resurrect “dead” bills late in the session or include their provisions in appropriations bills. The Des Moines Register’s William Petroski and Brianne Pfannenstiel reviewed important bills that did or did not make it through the funnel. James Q. Lynch and Rod Boshart published a longer list in the Cedar Rapids Gazette.

This paragraph caught my eye from the Register’s story.

Senate Majority Leader Bill Dix, R-Shell Rock, said everything that lawmakers are doing is a reflection of learning from states where prosperity is occurring as a result of business-friendly policies. That formula includes low-cost government, innovative public services, and easing regulatory burdens on businesses to spur job creation and to allow Iowa companies to compete in a global marketplace, he added.

Not so much: Republicans following a similar playbook drove Kansas and Louisiana into the ground. Wisconsin has performed poorly in employment growth, poverty reduction, household income, and wages compared to neighboring Minnesota, where corporate interests didn’t capture state government.

This is an open thread: all topics welcome. I enclose below links and clips about bills I haven’t had time to write about yet. Two are “business-friendly” policies that will hurt Iowans suffering because of exposure to asbestos or medical malpractice. One would make local governments and first responders less accountable by excluding all “audio, video and transcripts of 911 calls involving injured victims of crimes or accidents” from Iowa’s open records law.

Quick update on House File 484, the bill to dismantle the Des Moines Water Works: once seen as almost a sure thing due to covert support from the Iowa Farm Bureau, the bill was on the House debate calendar for many days in March but never brought to the floor. Majority Leader Chris Hagenow put House File 484 on the “unfinished business” calendar on March 30, after House Republicans voted down a Democratic motion to exclude it from that list.

Opponents of the Water Works bill have become more confident lately, as several GOP representatives and senators have said privately they oppose the legislation. In addition, a Harper Polling survey commissioned by the Water Works showed that 68 percent of respondents oppose disbanding independent water works boards in Des Moines, West Des Moines, and Urbandale in order to give city councils control over the water utility. The same poll indicated that by a 55 percent to 23 percent margin, respondents said an independent board of trustees rather than the city council is “best qualified to manage your local water utility.” By an 88 percent to 5 percent margin, respondents said “people who live in the community” and not the state legislature should have “the final say” on municipal utilities. No one should be complacent, because powerful forces are behind this legislation. Republican leaders could attach Water Works language to must-pass budget bills.

P.S.- The legislature is supposed to wrap up its business this month and adjourn for the year before the end of April. I suspect that even with unified Republican control, the session will go into overtime. Lawmakers haven’t finalized budget targets for the 2018 fiscal year yet. With less money to go around following the recent downgrade in revenue forecasts, and legislators of both parties calling for a review of increasingly expensive tax credits and exemptions, I expect several more weeks of behind the scenes negotiations before the House and Senate are ready to approve appropriations bills.

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Why my conservative values make me vote for Democrats

A guest commentary by a committed activist who served on the Iowa Democratic Party Platform and Rules Committees and currently serves on a county central committee. -promoted by desmoinesdem

I believe in obeying the Constitution. The 14th Amendment says that debts of the USA shall not be questioned. Steve King–and most Republicans–voted to not raise the debt ceiling which would have put the government in default. That vote led to the downgrading of the government’s credit rating. The 14th amendment also guarantees equal protection under the law. But Republicans don’t think the Constitution applies to same sex couples who wish to marry. George W. Bush violated the constitutional rights of Americans by spying on them without a warrant. Democrats objected; Republicans didn’t. President Barack Obama nominated a replacement for the late Justice Scalia. Republicans senators refuse to do their duty and vote to confirm—or not—that nominee.

I don’t believe judges should legislate from the bench, but I do believe they must strike down laws that violate the Constitution. Republicans applauded the U.S. Supreme Court for striking down the Washington D.C. handgun law, but went nuts when the Iowa Supreme Court unanimously struck down the law banning gay marriage. Republicans agreed when activist justices on the U.S. Supreme Court created a new right for corporations to spend unlimited secret money to try to buy our elections with misleading TV ads; Democrats want that decision overturned.

Originalists, who claim that the Constitution must be interpreted as the Founding Fathers meant it, are contradicted by the Founding Fathers themselves.

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Read the first lawsuit over revoked University of Iowa scholarships

University of Iowa undergraduate Ben Muller filed a class action lawsuit today in Polk County District Court, charging that the university “revoked its scholarship offers to Plaintiff and the putative class without warning, without due process, and without just compensation.” Muller is among 3,015 undergraduates who learned last week that the University of Iowa was discontinuing five scholarship programs to help cover losses in state funding. Scroll down to read the full seven-page court filing, which alleges multiple violations of the Fifth and Fourteenth Amendments to the U.S. Constitution.

In a news release also enclosed below, attorney Steve Wandro described the university’s action as “not only immoral, but illegal as well.” Jon Muller, the plaintiff’s father, said, “What has occurred here is insane. My son’s decision to attend the University of Iowa was partially based on his being awarded a scholarship.”

Attorneys have scheduled meetings in West Des Moines and Iowa City this Saturday for “students, parents of students, and interested alumni to discuss their concerns and legal options.” The press release includes details on meeting locations and times.

The plaintiff is asking for a jury trial. A Facebook page created to support a class-action filing has nearly 250 likes.

My hunch is that University of Iowa President Bruce Harreld and his advisers will come up with a face-saving way out of this mess before Muller and other members of his class have their day in court. A trial pitting the university against students, most of whom are children of alumni, would generate massive terrible publicity.

After Harreld figures out how to cover the $4,343,699 the university planned to save by canceling the current students’ scholarships, he needs to deal with an extra $1,237,500 reduction in state funding before June 30. The Branstad administration announced additional mid-year cuts to higher education last Friday.

UPDATE: Added below details on a second class-action lawsuit that undergraduate Jenna Pokorny filed in Johnson County District Court on February 27.

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Key Iowa Senate Republican: "Loser pays" bill going nowhere

A Republican bill that would have made Iowa courts far less accessible to ordinary people will die in an Iowa Senate subcommittee, GOP State Senator Charles Schneider told Bleeding Heartland on February 25. Bill Brauch, former director of the Consumer Protection Division in the Iowa Attorney General’s Office, explained here how the so-called “loser pays” bill “would in effect kill Iowa’s private consumer fraud law, and just about eliminate any other type of legal action by an individual against a defendant with money.”

Senate Judiciary Committee Chair Brad Zaun introduced Senate Study Bill 1008 during the first week of the legislative session, then assigned it to a subcommittee chaired by Schneider. Following a February 25 public forum in Clive, I asked Schneider about that bill’s status. He replied, “I don’t think it’s going anywhere. I haven’t held a subcommittee meeting for it, and I’m not planning to.”

I mentioned that Senate Majority Leader Bill Dix had named “loser pays” as one of his top four priorities in an interview with Radio Iowa. Schneider responded, “I’m not planning to hold a subcommittee meeting on it. I don’t think any other tort reform bills include a ‘loser pays’ section in them.”

Under Iowa legislative rules, most non-appropriations bills will be dead for the year if they have not cleared at least one Iowa House or Senate committee by the first “funnel,” coming up on Friday, March 3. The leaders of subcommittees and committees have discretion on what bills to bring up for a vote.

I’m pleasantly surprised to learn Senate Study Bill 1008 will go down without a fight. Only a month and a half ago, Dix cited a “measure that ensures losers in those court cases pay for the cost associated with the case” as one of “four bills that I believe define us and give Iowans a clear indication of where we plan to go with policies for our state.” The Iowa Association of Business and Industry, a lobby group with substantial influence among statehouse Republicans, registered in favor of this bill almost immediately. Perhaps Schneider, who practices law as a day job, was able to convince non-attorneys Dix and Zaun that “loser pays” is unnecessary and unfair. Or perhaps Zaun miscalculated by putting Schneider in charge of this subcommittee.

Whatever caused this bill’s demise, any bit of good news from this dreadful legislative session is worth celebrating.

UPDATE: Reader Marian Kuper noticed that Senate Study Bill 1144 contains a “loser pays” clause for nuisance lawsuits against large livestock farms. Senate Agriculture Committee Chair Dan Zumbach proposed that bill, which contains several provisions designed to shield confined animal feeding operations (CAFOs) from lawsuits. It has passed a subcommittee and appears likely to survive the funnel, with support from several Big Ag lobby groups.

Iowa attorney general: Outside counsel should defend collective bargaining law

To “avoid any questions about a potential conflict,” Iowa Attorney General Tom Miller will request that outside legal counsel defend the state against a public employee union’s legal challenge to Iowa’s new collective bargaining law. AFSCME, the largest labor union representing state workers, and four of its members filed suit on February 20, charging that House File 291 violates Iowa constitutional provisions on equal protection and non-interference in contracts. In a statement I enclose in full below, Miller said he will ask the Iowa Executive Council to approve other counsel for this case, because “the new collective bargaining law has the potential to existentially threaten the viability of public sector unions,” which have supported him in past campaigns.

The council is likely to approve Miller’s request. Its five members are Governor Terry Branstad, Secretary of State Paul Pate, State Treasurer Mike Fitzgerald, Secretary of Agriculture Bill Northey, and State Auditor Mary Mosiman. Branstad’s spokesperson Ben Hammes told Barbara Rodriguez of the Associated Press, “[Miller] summed it up when he said that AFSCME had supported him in the past and he wants to avoid any questions about a potential conflict.”

The Attorney General’s Office defended the Branstad administration against a lawsuit challenging the closure of the Iowa Juvenile Home, for which AFSCME Iowa Council 61 President Danny Homan was a plaintiff. But outside counsel defended the state when Democratic lawmakers and Homan challenged the governor’s use of line-item vetoes to close Iowa Workforce Development offices.

Miller may need to ask outside counsel to be appointed if other labor unions and public employees file additional lawsuits challenging the collective bargaining law. Aside from the points raised by AFSCME, several other provisions may raise constitutional questions:

• The law bans automatic payroll deductions for labor union dues, while allowing such deductions to continue for professional association memberships or recurring charitable contributions.

• The law may violate free association rights by requiring unions to win a majority of all eligible voters, not just those who cast ballots, in order to stay certified.

• The law eliminates a quid pro quo contained in the first paragraph of Chapter 20, which could be seen as a due process violation.

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Read the first lawsuit challenging Iowa's horrible new collective bargaining law

AFSCME Iowa Council 61 and four of its members filed suit today in Polk County District Court, saying the collective bargaining law Governor Terry Branstad signed on Friday is unconstitutional. I enclose below the petition filed on behalf of Iowa’s largest union representing state employees, as well as the plaintiffs’ request for expedited hearing. The filing repeatedly refers to “the amendments” because House File 291 amended Chapter 20 of the Iowa Code, which has regulated collective bargaining since 1974.

The new law’s disparate treatment of “public safety workers” and other public employees is the central issue raised in AFSCME’s lawsuit. Plaintiffs argue that Article I, section 6 of the Iowa Constitution requires that “all laws of a general nature shall have a uniform operation” and that the legislature “shall not grant to any citizen, or class of citizens, privileges or immunities, which, upon the same terms shall not equally belong to all citizens.” All four individual plaintiffs fail to qualify as “public safety workers,” and therefore have lost almost all meaningful collective bargaining rights, even though some of their occupations are as dangerous or more so, compared to some of the “public safety” jobs. Johnathon Good is a corrections officer, Ryan De Vries is a police officer III, Terra Kinney is a motor vehicle enforcement officer, and Susan Baker is a drafter for the University of Northern Iowa. Excerpt from page 7 of the petition:

The arbitrary definition of “Public Safety Employee,” the arbitrary classification of public employees as “Public Safety Employees” or other public employees and the arbitrary classification of bargaining units into those whose members are at least thirty percent “Public Safety Employees” and those whose members are not which are included in the Amendments deprive Officer Good, Officer De Vries, and Ms. Baker of the constitutional guaranty of equality of all before the law that is set forth in Art. I, § 6 of the Iowa Constitution.

The petition also argues that “transition procedures” altering and terminating bargaining procedures and schedules established in the union contracts violate Article I, section 21 of the Iowa Constitution, which prohibits passing a “law impairing the obligation of contracts.”

Before the text of House File 291 became public, Republican lawmakers were rumored to be at odds over whether to exempt “public safety workers” from most of the new restrictions on collective bargaining. Supposedly Iowa House Republicans opposed that division, while key GOP senators wanted to copy the political strategy used in Wisconsin six years ago. The collective bargaining bill Iowa House Republicans approved in 2011 did not treat law enforcement officers or firefighters differently from other public employees.

Sources in Iowa’s labor community expect other lawsuits challenging the collective bargaining law to be filed later this year. The two main union-busting provisions are seen as particularly ripe for challenge: onerous election requirements for unions to stay certified, and a ban on automatic payroll deductions for union members, even though employees will still be able to automatically deduct membership fees in other professional associations and recurring charitable donations. Neither provision was part of the 2011 Iowa House collective bargaining bill.

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Standing in Solidarity Speech

On Saturday, February 4th, 2017, Linn County Supervisor Stacey Walker joined several organizations from around the state at Mt. Zion Missionary Baptist Church in Cedar Rapids, Iowa to call for fair policing and justice reform. Below is the speech Supervisor Walker gave at the event. -promoted by desmoinesdem

Thank you all for coming here today as we stand in solidarity.

Thank you to Pastor Epps for opening the doors of this church for this very important community event.

And to the Mitchell family. We are all here for you today.

Since that fateful night in November, when Jerime Mitchell was fired upon three times at close range, with one bullet entering his neck, leaving him paralyzed, much has been said by many people in this community. These incidents tend to be controversial in nature for many reasons, one of them being our society tends to hold certain institutions as sacrosanct. And any time those institutions are challenged or questioned, our society divides itself into two camps: those who believe certain institutions are infallible and those who wish to hold all institutions to an equal account.

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Trump delivers stolen Supreme Court seat to Neil Gorsuch

President Donald Trump announced this evening that he is nominating 10th Circuit Appeals Court Judge Neil Gorsuch for the U.S. Supreme Court seat that should have gone to President Barack Obama’s nominee. A few good backgrounders on the man who will benefit from last year’s unprecedented Republican obstruction: Eric Citron for SCOTUS blog, Robert Barnes for the Washington Post, and Adam Liptak for the New York Times. Liptak dug up a 2002 article by Gorsuch, in which he lamented the Senate’s treatment of two appeals court nominees “widely considered to be among the finest lawyers of their generation”: John Roberts (the current Chief Justice) and Merrick Garland (who should have been confirmed to fill this vacancy).

USA Today’s justice reporter Brad Heath observed, “It would be hard for Trump to have picked a federal appellate judge more like Scalia than Gorsuch.” Heath posted excerpts from a number of Gorsuch’s opinions in this thread, noting the judge believes in “applying the Constitution’s ‘original public meaning.’” Some of the rulings are counter-intuitive, such as this case in which Gorsuch found “extortion doesn’t violate the Equal Protection Clause if [the] corrupt official solicited bribes from everyone.”

Senator Chuck Grassley praised Gorsuch for being well qualified and having been confirmed unanimously to the appeals court. Speaking to the Des Moines Register’s Jason Noble, the Judiciary Committee chair said he hoped Democrats would not filibuster Gorsuch, just as Republicans didn’t filibuster Supreme Court nominees during the first terms of Presidents Bill Clinton and Barack Obama. What’s missing from this narrative? Grassley never even gave Garland a hearing.

After the jump I’ve posted prepared statements from Grassley and Senator Joni Ernst welcoming the nomination. I also enclose below the Alliance for Justice fact sheet on Gorsuch, which references many of his legal writings. That non-profit’s president Nan Aron described Gorsuch as a “disastrous choice,” because his “record shows no sign that he would offer an independent check on the dangerous impulses of this administration. What it does show is that he would put the agenda of powerful special interests ahead of the rights of everyday people […].”

Gorsuch is only 49 years old, so he will probably serve on the high court for decades. Several analysts believe picking him was an effort to “reassure” Justice Anthony Kennedy “that it would be safe to retire.” Once Kennedy goes and Trump appoints another justice, we can say goodbye to reproductive rights, voting rights, any kind of environmental and labor regulations, consumer protections, and equal rights for women and LGBTQ people. The Supreme Court will for all practical purposes be unavailable as a check on Republican governance.

While conservatives across the country celebrate tonight, a few locals may be disappointed Trump passed over 8th Circuit Appeals Court Judge Steven Colloton of Iowa. Colloton and Iowa Supreme Court Justice Edward Mansfield were both on the long list of possible Supreme Court nominees Trump released during the campaign. By some recent accounts, Colloton was on the president’s short list after the election too. Maybe next time.

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Iowans Lose with Senate "Loser Pays" Bill

Bill Brauch, the former director of the Consumer Protection Division in the Iowa Attorney General’s Office, warns about a “little sleeper of a bill” that would be “a nuclear weapon against judicial fairness.” -promoted by desmoinesdem

Iowa Senate Republicans have hit the ground running this session, and their agenda is replete with extreme proposals. One of them hasn’t gotten much notice yet but, if enacted, would represent the most radical change to Iowa’s judicial system since its inception.

Senate Study Bill 1008 would impose the “loser pays” standard in all civil actions in Iowa courts. This means that if you lose a civil lawsuit you not only have to pay your own attorney fees, you have to pay the other side’s attorney fees as well. Another term for this would be “instant bankruptcy!”

Imagine you are injured in a car accident and sue the other driver to seek recovery for your injuries. If the case is hard-fought both sides might run up tens of thousands of dollars in attorney fees. Say the case is a close one and you lose by a whisker – the jury thought you had a good case but your proof fell just short. Under SSB 1008, you’ll not only have to pay your own attorney fees, you’ll have to pay the other side’s as well!

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Steve King's unconstitutional Obamacare bill getting national ridicule

For a self-style “constitutional conservative,” Representative Steve King has a lot of trouble with the separation of powers concept. In the past, King has tried to block federal courts from hearing cases related to marriage rights and encouraged state governments to disregard the U.S. Supreme Court’s 2015 marriage equality ruling.

King went one step further this week by introducing a bill to prohibit the Supreme Court from citing its previous cases involving the 2010 Affordable Care Act.

Legal experts agree King’s proposal is itself unconstitutional.

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A year's worth of guest posts, plus tips for guest authors

One of my blogging new year’s resolutions for 2016 was to publish more work by other authors, and I’m grateful to the many talented writers who helped me meet that goal. After the jump I’ve linked to all 140 guest posts published here last year.

I encourage readers to consider writing for this site in 2017. Guest authors can write about any political issue of local, state, or national importance. As you can see from the stories enclosed below, a wide range of topics and perspectives are welcome here.

Pieces can be short or long, funny or sad. You can write in a detached voice or let your emotions show.

Posts can analyze what happened or advocate for what should happen, either in terms of public policy or a political strategy for Democrats. Authors can share first-person accounts of campaign events or more personal reflections about public figures.

Guest authors do not need to e-mail a draft to me or ask permission to pursue a story idea. Just register for an account (using the “sign up” link near the upper right), log in, write a post, edit as needed, and hit “submit for review” when you are ready to publish. The piece will be “pending” until I approve it for publication, to prevent spammers from using the site to sell their wares. You can write under your own name or choose any pseudonym not already claimed by another Bleeding Heartland user. I do not reveal authors’ identity without their permission.

I also want to thank everyone who comments on posts here. If you’ve never participated that way, feel free to register for a user account and share your views. If you used to comment occasionally but have not done so lately, you may need to reset your password. Let me know if you have any problems registering for an account, logging in, or changing a password. My address is near the lower right-hand corner of this page.

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Politically motivated Iowa fraud case points to Polk County prosecutor's failure

A former administrative law judge who testified about political interference at Iowa Workforce Development is facing a felony fraud charge after staff in the Polk County Attorney’s office failed to do their homework.

Ryan Foley reported Thursday for the Associated Press that former Administrative Law Judge Susan Ackerman is charged with making fraudulent submissions, having “falsely certified that her married daughter was single so that she could receive state health insurance in 2013 and 2014.” When the Iowa Supreme Court Attorney Disciplinary Board reviewed an Iowa Workforce Development complaint citing the same conduct a year and a half ago, the board determined “that Ackerman didn’t commit an ethical violation and declined to take action against her law license,” Foley noted.

So why is she facing criminal prosecution now? Because no one in the Polk County Attorney’s office researched this case before filing charges.

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Iowa Supreme Court: Branstad had power to veto mental health funding

Another one for the “elections have consequences” file: The Iowa Supreme Court unanimously ruled on November 10 that Governor Terry Branstad “did not exceed the scope of his constitutional authority” when he vetoed funds state lawmakers had approved to keep open mental health facilities in Mount Pleasant and Clarinda.

A large group of Democratic legislators, joined by the president of the public employee union AFSCME, filed suit soon after Branstad vetoed the funding in July 2015. Their lawsuit contended that Iowa Code contains language requiring the state to operate Mental Health Institutes in Mt. Pleasant and Clarinda. But last November, a Polk County District Court held that “Existing statutes are not conditions on appropriations” and “cannot limit the Governor’s item veto authority.” Bleeding Heartland published excerpts from Judge Douglas Staskal’s decision here.

Last week’s Iowa Supreme Court opinion by Justice David Wiggins affirmed Staskal’s ruling but found that the District Court “failed to address” a matter of constitutional law raised by the plaintiffs. After additional analysis of the legislative intent behind language designating the facilities in Mount Pleasant and Clarinda as “state hospitals for persons with mental illness,” the high court reached the same conclusion as Staskal: the governor had the power to veto funds earmarked for operating facilities he had closed. I enclose below excerpts from the opinion.

Branstad’s spokesperson Ben Hammes did quite the spin job in his statement:

Today’s unanimous Supreme Court decision affirms the Governor’s action by allowing more Iowans to have access to quality mental health care and substance abuse treatment than ever before. The State’s mental health care redesign allows Iowans to access treatment in a community-based setting and through more modern means. Gov. Branstad is committed to putting patients first, improving care, increasing access and modernizing the delivery of mental health services. In fact, there are currently at any time 60-100 psychiatric inpatients beds open across the state. Iowa now maintains a robust level of access to mental health beds that are more efficiently delivered.

Nice try, Hammes. In reality, the justices did not assess either the merits of Branstad’s decision to close the in-patient facilities or the quality of mental health care and substance abuse treatment in Iowa. In reality, Iowa “consistently ranks in the bottom five of all states in every single category of mental health programs and services.” In reality, Iowa “ranks dead last in the country for state psychiatric beds per capita.” In reality, “many Iowans with serious mental illnesses are being marooned” for weeks or months in hospitals, for lack of adequate facilities or services to monitor their care.

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