# News



Four reasons the GOP attack on trans Iowans won't hold up in court

Republicans slipped a couple of nasty surprises into the health and human services budget on the penultimate day of the Iowa legislature’s 2019 session. One of the new provisions in House File 766 would amend the Iowa Civil Rights Act to deprive transgender and intersex Iowans of access to surgery through Medicaid or other public health insurance programs.

Governor Kim Reynolds should strike this language because denying health care to people in need is reprehensible.

If she lacks the empathy to comprehend why punching down on a marginalized group is wrong, the governor should use her item veto power for a pragmatic reason: the Iowa Supreme Court is unlikely to let this discriminatory act stand.

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Highlights from the Rod Blum ethics investigation

The Office of Congressional Ethics found “substantial reason to believe” Representative Rod Blum failed to accurately report all of his business interests on his disclosure forms, and also “substantial reason to believe” the internet company Tin Moon misused Blum’s official photo and “utilized deceptive, false, or unsubstantiated endorsements.”

In a referral approved in July and first published today, the non-partisan office asked the U.S. House Ethics Committee to further investigate possible violations of “federal law, House rules, and standards of conduct.” The report further recommended that the House committee subpoena Blum and top associates, who refused to cooperate with the OCE review. But don’t expect any more shoes to drop: having lost his re-election bid, Blum will not be subject to the committee’s jurisdiction in a couple of weeks.

The full report and supporting exhibits are well worth reading. I’ve enclosed those documents at the end of this post, along with Blum’s combative response to the findings. Some noteworthy highlights:

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Iowa DHS withheld records on "fishy" Medicaid deal before election

For weeks this fall, the Iowa Department of Human Services stonewalled a journalist’s request for easily accessible public records that would have cast an unflattering light on management of the state’s Medicaid program.

Three days after Governor Kim Reynolds won the election, the department sent a copy of one key document to Ryan Foley of the Associated Press. DHS released other relevant files on December 6, allowing Foley to confirm Director Jerry Foxhoven had cut a deal in April allowing UnityPoint Health affiliates to keep nearly $2.4 million they had been overpaid for services provided to Medicaid patients.

The settlement agreement came shortly after UnityPoint agreed to remain part of the network for Amerigroup, one of the private companies DHS picked to manage care for Medicaid recipients.

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Exclusive: How Kim Reynolds got away with violating Iowa's constitution

Governor Kim Reynolds swore an oath to “support the constitution of the United States and the constitution of the State of Iowa.” But when she missed a deadline for filling a district court vacancy in June, she did not follow the process outlined in Iowa’s constitution.

Public records obtained by Bleeding Heartland indicate that Reynolds did not convey her choice for Judicial District 6 to anyone until four days after her authority to make the appointment had lapsed. Nevertheless, staff assured the news media and Iowa Supreme Court Chief Justice Mark Cady that the governor had named Judge Jason Besler on time.

Reynolds and Secretary of State Paul Pate later signed an appointment and commission certificate that was backdated, creating the impression the governor had acted within the constitutionally-mandated window.

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Iowa Republicans not challenging Attorney General Tom Miller

What a difference two election cycles makes. After going all in against longtime Attorney General Tom Miller in 2010 and making a token effort to defeat him in 2014, Iowa Republicans did not even nominate a candidate for attorney general at their June 16 state convention.

It’s an embarrassing capitulation for a party whose leaders relentlessly and dishonestly bashed Miller during last year’s controversy over Governor Kim Reynolds’ constitutional authority to name a new lieutenant governor.

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Exclusive: A review of the new, improved Waterloo Police use-of-force policy

More than two years after outside experts recommended a “complete review” of guidelines on the use of force, the Waterloo Police Department finally adopted a new policy in December 2017. Police leaders didn’t publicize the changes, and to my knowledge, no media have reported on the revisions.

In many ways, Waterloo’s updated use-of-force policy reflects national consensus on best policing practices. Some improved passages appear to be a response to notorious local incidents of officer misconduct.

On the other hand, several important principles on the use of force are missing from Waterloo’s new document.

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Dems contesting far more Iowa House, Senate seats than in 2010 or 2014

Democrats are fielding a nearly full slate of Iowa House and Senate candidates this year, leaving far fewer GOP-held seats unchallenged than in the last two midterm elections.

The improvement is particularly noticeable in the Iowa House, where Republicans have an unusually large number of open seats to defend. Twelve of the 59 GOP state representatives are retiring, and a thirteenth seat (House district 43) is open due to Majority Leader Chris Hagenow’s move to safer Republican territory in Dallas County.

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Shady internet company still mentions fake clients, but not Rod Blum

Dubuque-based Tin Moon still promotes its work on behalf of 11,000 website clients it doesn’t have and “success stories” that did not involve the firm’s customers, if they happened at all.

But the company selling search engine optimization and reputation management services “recently removed any mention” of U.S. Representative Rod Blum from its website, the AP’s Ryan Foley reported today.

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The state of play in Iowa's most competitive Congressional race

It’s been too long since Bleeding Heartland checked in on the campaign in Iowa’s first Congressional district. Two-term Representative Rod Blum is not only our state’s most endangered U.S. House member, he is among the country’s most vulnerable GOP incumbents, according to leading election forecasters.

Recent revelations about Blum’s shady, undisclosed internet company may further undermine his election prospects. Tin Moon used Blum’s chief of staff in a fake testimonial, touted phony client “success stories” on its website, and solicited business by promising to make FDA warning letters harder to find in online searches.

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Rod Blum's internet business, other firms tout identical "success stories"

The Dubuque-based company mostly owned by U.S. Representative Rod Blum touts the same 11,000 clients and verbatim “success stories” as several other firms offering search engine optimization (SEO) services around the country.

Tin Moon‘s existence and connection to Blum became widely known this week following coverage by the Associated Press. Todd McCally, listed on Tin Moon’s website as “Chief Technology Officer and Director of SEO Activity and Research,” holds similar titles for at least four other companies, several of which promote the same customer testimonials.

The founders of two such firms told Bleeding Heartland today that they and Tin Moon were “affiliates” of McCally’s parent company, GetMePlacement.com.

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Democrats squandered best chance to help DREAMers

While many Americans enjoy a peaceful Christmas with loved ones, hundreds of thousands of “DREAMers” who have lived in this country since childhood risk losing everything unless Congress acts before March 2018.

Democrats in the U.S. House and Senate, including Iowa’s Representative Dave Loebsack, just blew their best chance to provide some form of permanent legal status to these victims of a broken immigration system.

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Kim Reynolds misled public about Iowa attorney general's view of her powers

Top staffers for Governor Terry Branstad knew more than a month ahead of time that Iowa Attorney General Tom Miller had determined Kim Reynolds would not have the authority to name a new lieutenant governor after becoming Iowa’s head of state.

Records released by the Iowa Attorney General’s office undercut numerous public statements by Reynolds and other Republican leaders, which alleged or implied Miller had blindsided the administration with a sudden reversal of his earlier view.

Documents support Miller’s comments on May 1 about the exhaustive legal and historical research informing his 23-page response to independent State Senator David Johnson. Despite accusations made by many GOP politicians, records reveal no effort by any Democratic officials to influence Miller’s views on succession questions.

On the contrary: if the attorney general faced any political pressure to change his stance on Reynolds’ constitutional authority, available information suggests that pressure came from the governor’s office.

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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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Four oddities from the audit of ISU president's weapons policy compliance

Iowa State University’s Office of Internal Audit has completed its review of “the storage and transportation of weapons to ensure current practices are in compliance with ISU’s Firearms and Other Weapons policy.”

ISU officials requested the audit after Bleeding Heartland reported in November that President Steven Leath and some companions on his hunting trips neither requested nor received written authorization to transport weapons on university aircraft, as required by ISU policy.

In their brief report on what appears to be an open-and-shut case of the president not following the rules, internal auditors managed to create a lot of wiggle room. ISU staff have not responded to my follow-up questions or provided documents that could address inconsistencies in the new official narrative.

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Will ISU's president ever fully cover the cost of his personal medical travel?

Six weeks after Iowa State University released the Internal Audit report on ISU Flight Service and University Owned Aircraft, I’ve made surprisingly little headway toward filling in the gaps.

Not for lack of trying.

The Iowa Board of Regents and ISU have withheld information that should have been included in a “comprehensive audit” purporting to cover every flight President Steven Leath has taken on a university airplane.

For today, I will focus on one issue: ISU staff’s refusal to tell me whether Leath has reimbursed the ISU Foundation for the full cost of flights to Rochester, Minnesota in July 2015. The matter raises questions about the foundation’s compliance with federal tax code and the accuracy of ISU’s official narrative.

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Twelve holes in the internal ISU Flight Service audit

The Iowa Board of Regents gave Iowa State University President Steven Leath a well-choreographed vote of confidence on Monday. First, Chief Audit Executive Todd Stewart took the board through highlights from his team’s review of ISU’s Flight Service, noting the “full cooperation” provided by ISU staff. Then a contrite yet defensive Leath took the floor. Still insisting he did not violate any policies or laws, the president admitted he could have shown “better judgment” and said he is “very sorry” about “things I should have done differently.” In particular, he “used the university planes more frequently than was absolutely necessary, and should have been more transparent about some of the use.” He promised to be “more thoughtful” and learn from this experience. The 12-page auditor’s report and full statement from Leath are enclosed at the end of this post.

Regent Larry McKibben was up next to thank Leath for his leadership and contribution to positive trends at ISU, adding that he hopes for more “great things” during the next five years. The chair of the Regents’ audit committee has never viewed what he called a “ding on an airplane wing” as grounds to change his opinion of Leath. His remarks before the regents went into closed session signaled that the overseers would neither fire nor severely sanction the ISU president.

After board members evaluated Leath’s performance, Board President Bruce Rastetter asserted that Leath had “eliminate[d] any questions about the personal benefit that he may have received by using the university aircraft,” having reimbursed the ISU Foundation for costs associated with some flights. He went on to say,

“Clearly, President Leath’s acknowledgment that he takes full responsibility for the issues identified in the audit and that he should have been more transparent about the use of the planes reassures this board, and I hope all Iowans, that the president deserves our continued trust and support,” Rastetter said. “Furthermore, the board believes the audit has put to rest any concerns about President Leath’s use of the aircraft.”

This Iowan is not reassured. The audit has big holes and failed to fully account for costs of Leath’s airplane habit.

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ISU stonewalls, Leath plays the victim ahead of airplane use audit

Any day now, the internal auditor for the Iowa Board of Regents may complete his review of all plane trips on Iowa State University’s Flight Service since President Steven Leath came to ISU nearly five years ago.

Although Leath has promised to be “as open and transparent as possible” regarding his airplane use, ISU officials have steadfastly refused to clarify certain details about specific flights or university practices. Reporters probing facts not found on the “frequently asked questions” page keep getting the same runaround: ISU cannot comment, so as not to “jeopardize the integrity of the audit.”

ISU has also slow-walked some information requests related to the airplane controversy. Ten days since the university’s Public Records Office received my payment for one set of records, I’m still waiting for documents that were supposed to take only 3.5 hours to compile. The delay will prevent me from reporting on a potentially newsworthy angle before Todd Stewart sends his findings to the Board of Regents. Depending on when the material arrives, how long it takes to review it, and whether ISU answers follow-up questions promptly, I may not be able to publish before board members convene a special meeting to discuss the internal audit.

Leath complained last week about supposedly “vicious personal attacks” in media coverage of the airplane controversy. It’s not the first time he has claimed to endure “unfair” treatment by writers supposedly engaged in “distortions” and asking “inappropriate” questions.

In reality, “planegate” reporting has addressed Leath’s conduct and use of university resources, not his personal qualities.

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ISU president didn't follow university policy on transporting firearms

Since late September, Iowa State University President Steven Leath has repeatedly asserted that his use of ISU’s two airplanes was consistent with university policies.

Multiple audits and perhaps a criminal investigation will shed light on whether Leath violated ISU policy (and state law) on personal use of university property. Questionable flights include several unexplained trips to the city where the Mayo Clinic is located, stops at a New York airport to pick up and drop off Leath’s relatives, a trip to Kansas City after ISU had been eliminated from the Big 12 basketball tournament, and numerous visits to the town where Leath owns a home. On one of those trips, ISU’s plane was on the ground in North Carolina for only 37 minutes before returning to Ames.

Whatever conclusion investigators reach regarding Leath’s use of the airplanes, one fact is clear: the president has not complied with university policy on transporting weapons when using ISU’s Flight Service for various hunting trips.

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ISU slipped previously undisclosed airplane spending onto "FAQ" page

Pro tip: Promising to “be as open and transparent as possible” works better when you don’t keep concealing relevant facts from the public.

Iowa State University linked incomplete and redacted files on its page for “Frequently Asked Questions” about President Steven Leath’s use of university-owned airplanes. Staff employed several methods to prevent outsiders from obtaining information about the flights. In an October 22 editorial, the Des Moines Register described the “clumsy response” by ISU and Leath as “every bit as damaging to the university’s reputation as the original offense.”

I would add a few other points to the Register’s list. For instance, ISU quadrupled down on a cover story that makes no sense in order to explain questionable stops on one of Leath’s trips.

In addition, university officials quietly admitted in recent days that ISU’s Foundation spent much more than previously disclosed on one of the airplanes purchased in 2014.

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If ISU pilots chose to land at Elmira, it wasn't for cheap fuel

Iowa State University finally released its aviation insurance policy and some other documents related to President Steven Leath’s use of university-owned aircraft on October 12, a week after Leath promised to be “open and transparent” about the controversy.

While I work my way through those incomplete materials, let’s take a closer look at one of the least plausible narratives ISU has floated in connection with this scandal: en route to and from an NCAA Sweet Sixteen basketball game in March 2014, pilots of the university’s King Air 350 200 “unilaterally decided” to refuel at the Elmira Corning Regional Airport in Horseheads, New York. The stops supposedly chosen by the pilots allowed Leath’s brother and sister-in-law to hitch a ride at no additional cost to ISU.

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Seven ways ISU President Leath's airplane excuses don't add up

Iowa State University President Steven Leath tried on Monday to cut off further scrutiny of how he used a university plane. Shorter version of the seven-paragraph statement you can find near the bottom of this post: I did nothing wrong, and I won’t do it again. End of story. Leath has donated $15,000 to the ISU Foundation scholarship fund to cover costs associated with fixing and storing a Cirrus SR22 damaged in a July 2015 “hard landing.”

While ISU spokesperson John McCarroll slow-walks my information requests, refusing to send me even the insurance policy that should take his staff minutes to retrieve, now seems like a good time to explain why Iowans haven’t heard the last about this scandal.

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