Week 11 is in the books.  Over the next couple of weeks, new deadlines approach to ensure bills continue to move through the process and budget bills are advancing as the legislature marches toward “sine die.”  Budget work is in full swing and with Education Appropriations and HHS appropriations out in the wild now with agriculture and natural resources and economic development appropriations passing the House, we await final budget targets from the Senate and negotiations between the chambers and they can shut down for the year.

A few key legislators are saying their goal is to finish the session by April 15.  It is possible they could get done within a week of that date on either side.  The Revenue Estimating Conference has increased projections by a bit, and no one is talking about a lack of funding as much as where the extra will go in tax relief, new programs, and existing budget items.

Bills of Interest:

https://docs.google.com/spreadsheets/d/1RGnojS4IXxk7_hoB3PKQO4Pz44AuwV5ZpB46XZPiXMg/edit?usp=sharing 

Articles of Interest:

Sales and Income Tax Changes (SF 2372)

Twelve Month Total Net Tax Receipts Through February 28, 2022

Workforce Omnibus Bill Fiscal Note (HF 2569)

Governor signs bill with changes to workforce housing tax credit included

Senate revives outdoor recreating funding proposal

Proposal would require two-thirds majority to pass tax increases in Iowa

Warrantless “garbage grabs” approved by Iowa Legislature

House advances governor’s education transparency proposal, relaxes some requirements

Funding Iowa’s natural resources still possible, key legislator says

Iowa lawmakers start work on $2.1 billion HHS pending plan

The Governor just signed a huge tax reform bill that will, over time, result in a 3.9% flat tax and an end to taxation on retirement income.  The bill was thrown together quickly and passed within 24 hours of being put together due to Governor Reynolds’ opportunity to give the Republican response to the State of the Union speech this last Tuesday.  She wanted this bill passed and signed before the speech.

The simplest and most succinct description of the bill I’ve seen was in Representative Shannon Latham’s weekly newsletter this week:

"Tax Cuts

House File 2317 delivers the largest tax cut in Iowa history!

Here is how Iowa’s new tax law will help everyone who pays taxes:

• Retired Farmer Lease Income Exclusion. Beginning in 2023, a retired farmer’s income from property rental is exempt from tax. This exclusion allows a farmer to rent land to the next generation and not pay taxes on that “retirement” income.
• Individual Income Tax Rates. Provides for a flat tax of 3.9 percent on all taxable income, beginning in tax year 2026. The average tax cut for a taxpayer will be over $1,000. Following are two scenarios of how families can benefit. A single mom with two kids and Iowa taxable income of $25,000 would see a 27% reduction in her taxes. A family of four with two working parents and an Iowa taxable income of $50,000 would pay $1,918 under our current law. With the tax cut, they will save $1,520. This is more than a 20% tax cut for this middle-class, working family.
• Retirement Income Exemption. Iowa Code provides an income tax exclusion for the first $6,000 of retirement income. Beginning in tax year 2023, all retirement income will be excluded from tax. This will especially benefit retired teachers, nurses, and police officers as it includes qualified retirement plans such as IPERS, 401(k)s, 403(b)s, IRAs. 

With this new law, Iowa is the fourth lowest in the nation for individual income tax rate. These tax cuts will provide incentives for Iowans to rejoin the workforce and help Iowans weather the impact of record-setting inflation. I also hope this tax cut package will help attract residents. Let’s roll out the Welcome mat!"

Iowa House Republicans also summarized the bill in their newsletter which can be found here.

Regarding PHCC business - we are working on the plumbing code references in the bill(s) we emailed about as a board, and we have a subcommittee on inspections that should send it to the full ways and means committee in the House.

Bill Tracker:

https://docs.google.com/spreadsheets/d/1RGnojS4IXxk7_hoB3PKQO4Pz44AuwV5ZpB46XZPiXMg/edit?usp=sharing 

LSA Reports:

Resource Enhancement and Protection Fund (REAP)

County Government Revenues Per Capita

Articles of Interest:

Iowa Governor Kim Reynolds Signs Transgender Women’s Sports Bill Into Law

34 State Senate races on Iowa’s 2022 General Election ballot

Bill to ban state pension fund from owning Unilever, over Ben & Jerry’s Israel stance

Iowa bill would require all books and classroom materials to be published

House passes bill to prohibit COVID-19 vaccine requirements in schools, day cares

Week five of the 2022 legislative session has concluded.  Next week is “funnel” week so we are expecting a flurry of subcommittee meetings, same-day stops for those bills in committee, and a lot of bills to simply get ignored this week as they winnow down those they want to work on for the rest of the session.

School choice, land acquisition for public spaces, “medical freedom,” alcohol-related bills, and continued tax and budget discussions dominated the week’s conversations and meetings.

Below are some interesting articles that give some clues to the varied and sometimes surprising nature of this year’s session.  Many of us at the Capitol are still hoping that the breakneck speed of the process and redistricting means a shorter session but we are ALL also concerned about the ramifications of that for bills that require time to pass.

Bill drafting has still been an issue as the LSA is short-staffed with many new bill drafters.  They have an unenviable task of trying to get out a LOT of legislation in a short amount of time.  Most bills are now coming out but time is short for many of them to get out of the originating chamber’s committee process by Thursday (technically Friday) to avoid being “funneled” for the year.

Bills of Interest (Constant work in progress and most often updated fully on Saturdays - Let me know if I’m missing something and I’ll get it updated!):
https://docs.google.com/spreadsheets/d/1RGnojS4IXxk7_hoB3PKQO4Pz44AuwV5ZpB46XZPiXMg/edit?usp=sharing 

Articles of Interest:
Iowa’s new anti-vaccine mandate bill clears its first legislative test in hours-long hearing

Bill would penalize landowners who sell property for public use

Iowa bill to let parents sue over “obscene” school books advances

Bill would give Iowa mobile home residents more notice of rent hikes

This week was a busy one. Most of us at the Capitol are hard-pressed to remember the last time subcommittee and committee meetings were this frequent and busy this early in the session. Rumors around the Capitol point to a goal of a 90 day session instead of the scheduled 100 day session and, at current pace and without any derailment, they could do it.

The Governor’s bills are starting to come out along with a flurry of others and I’ll attach either a file or link to bills that may be of interest to you.

Please let me know which bills you want me to declare on.

Thank you!

Possible Bills of Interest

https://docs.google.com/spreadsheets/d/1RGnojS4IXxk7_hoB3PKQO4Pz44AuwV5ZpB46XZPiXMg/edit?usp=sharing

The legislative session began this week on Monday with some organizational procedures and speeches by majority and minority leaders in each chamber. This is the second year of a two-year “General Assembly.” Bills that were introduced last year are still in the system and eligible to continue through the process one way or another.

The Governor delivered her fifth Condition of the State Address this week. You can find the transcript here. She addressed the joint assembly of the House and Senate in a rare 6:00pm speech time and outlined a plan for a 4% flat tax, school choice, teacher apprenticeships, repeal of income tax for retirees, reducing the length of unemployment benefits, etc.

The first week of session is mostly organization; speeches by the Governor, judiciary, and national guard; and committee meetings that are primary for rules adoption and introductions.

This year’s session is starting to feel a little bit more “normal” with subcommittees all in person with online options to watch via zoom or webex depending on the chamber.

This week’s summary is brief and pretty general but there are a lot of issues on the table already and it is only week one. Please keep an eye on potential bills of interest and keep me informed about what you are hearing in the field and how I can better serve you as your lobbyist. Thank you!

Articles of Interest:

Supreme Court blocks Biden vaccine mandate for employers outside of health care.

You can watch the Condition of the State Address if you missed it here.

Iowa Condition of the Judiciary Speech

Iowa Condition of the Guard Speech

Inspections Bill - Our bill is in House Ways and Means after passing State Government Committee and is technically still alive IF it were to pass Ways and the Senate were to assign it to Ways.  Big IFs right now but I’m working on it.

Iowa businesses can get over $20K in grants for pre-apprenticeship programs

Another week down.  Legislators had to have their bill requests in by last Friday so now we wait for bill drafters to get all the bills to legislators and get them filed.  The next week or two will see a flurry of bills introduced as legislators scramble to get bills through committee to avoid their bill being “funneled” during the first deadline early next month.

SSB1046- Review of state boards has still not passed committee.  We are undecided.

The third week of the session is already behind us and February is just around the corner! Time flies when you’re worried about the legislature. This week saw a flurry of subcommittees and lots of floor debate. Most years, late night debates happen later in the session but multiple education bills, an upcoming broadband discussion, and other issues may make for a legislative session more peppered with controversy, busy days, and late night debates than usual.