ABI Priority Heads to Governor Reynolds |
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This was a significant week for the Iowa Association of Business and Industry (ABI) as the Legislature passed unemployment insurance tax reform, which is ABI’s top legislative priority for 2022.
Although ABI’s priority bills are awaiting Gov. Kim Reynolds’ signature, the session is not over. Both chambers of the Iowa legislature will need to finish key items, such as the budget. In addition to providing updates on the latest activity on legislation, our public policy team will provide an outlook for the remainder of the legislative session and what to expect in the next several weeks.
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HF 2355 addresses ABI’s workforce policy priority and will modernize the state’s unemployment insurance system by turning it into a re-employment system. This bill accomplishes several things:
- Establishes the maximum time an individual can receive unemployment benefits to four (4) months from six (6) months;
- Establishes the business closing benefit period as six (6) months from nine (9) months;
- Defines “misconduct” and when an employee is disqualified from benefits;
- Enhances suitable work requirements; and
- Streamlines the appeals process and modernizes the guide for interpretation of the legislation.
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In late March, both the Iowa House and Iowa Senate passed slightly different versions of the bill. Originally, the legislation included a provision that required a one-week waiting period before someone could receive unemployment benefits. The House passed a version without a one-week waiting period, and the Senate amended the House bill by including the one-week waiting period.
This week, both the Iowa Senate and House agreed to send the House version of the legislation that does not include a one-week waiting period down to Gov. Kim Reynolds’ where it now awaits her signature. She has signaled her support for this legislation and it was included as part of her Condition of the State address. “The success of Iowa’s robust economy is driven by employed Iowans and their hard work ethic,” she released in a statement in response to the legislature’s actions.
“We’ve realigned our state’s workforce agency to serve as a reemployment agency providing more dedicated, one-on-one career coaching, and to make the process for Iowans to reenter the workforce as simple and efficient as possible,” she added.
ABI is appreciative of the leadership Gov. Reynolds’ demonstrated by making this issue a key priority this year. We’d also like to thank Senate Commerce Chair Jason Schultz (R-Schleswig) and Representative Mike Bousselot (R-Ankeny) for floor managing the bill in the Senate and House respectively.
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Additional Workforce Bill Passes |
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The Legislature also passed and sent another key workforce bill, which ABI supports, to Governor Reynolds for her signature this week. By a vote of 70-24, the House approved SF 2383 which addresses work-based learning, eliminates certain county and city inspections of manufactured homes, expands certain loan forgiveness programs to recruit more healthcare workers and eliminates certain fees for veterans.
ABI is particularly supportive of the changes being implemented under the work-based learning division. It implements reporting requirements for schools concerning students’ participating in work-based learning programs. The bill also creates work-based learning program supervisor certificates which will allow non-school employees to lead and provide this type of programming within schools. The Senate previously passed this legislation unanimously a few weeks ago.
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HF 2128 - Biofuels Legislation Heads to the Governor’s Desk
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This week, both chambers of the legislature passed a bill that requires E-15 to be sold at gas stations across the state by the beginning of 2026. E-15 is gasoline that contains 15% ethanol by volume. Gas stations must dispense E-15 from one qualified motor fuel dispenser if there is only one available, or at least 50% of all qualified motor fuel dispensers.
The bill also provides grants, through a three-tiered system under the Renewable Fuel Infrastructure Program, to gas stations who install the infrastructure needed to provide ethanol. Tier I sites are gas stations that have never sold E-15 blends and did not sell more than 140,000 gallons of gasoline annually. They are eligible for state grants covering the lesser amount of 90% of the cost or $63,900. Tier II stations are those that have not sold E-15 blends but did sell more than 140,000 gallons of gasoline annually. They are eligible for state grants covering the lesser amount of 75% or $53,250. Tier III applies to all other gas stations in the state and qualify for grants covering 70% of the cost.
For smaller gas stations to be exempt from the requirements, they would have to show they existed prior to Jan. 1, 2023 and annual sales for 2020 to 2022 did not exceed 300,000 gallons. Gas stations can also apply for a waiver based on infrastructure’s incompatibility to store and dispense E-15 gasoline. Exemption applications must be sent to the Department of Agriculture.
The Iowa Senate passed this bill 42-3 and the Iowa House passed it 81-13. ABI was registered as undecided on this legislation.
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HF 2198 - Minimum Age at Child Care Centers & Child Care Ratios
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Another bill that is awaiting Gov. Reynolds’ signature is HF 2198, which combines two pieces of legislation tied to child care into one. First, it directs the Iowa Dept. of Human Services to amend its administrative rules to provide that employees and substitutes working at child care centers who are 16 years old or older can provide child care without additional supervision.
Second, it adds language from another bill that stemmed from a recommendation provided by the Governor’s Child Care Task Force. It would amend child care center staff ratios to allow for one child care worker for every seven (7) kids who are under two (2) years old. It would also allow for a ratio of one child care worker for every 10 kids who are at least three (3) years old. The change simply gives child care facilities the option to implement these ratios as they are voluntary, not mandatory.
The bill passed the Iowa Senate last week 30-18 and the Iowa House 52-42.
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Governor Signs a Significant Number of Bills into Law |
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Last Thursday, Gov. Kim Reynolds put her signature on several bills that were previously approved by the Legislature. Bills that were signed related to topics such as groundwater hazard statements, the sale, lease or rental of water treatment systems, airport registration and site approval by the DOT, counties sharing a county assessor, the definition of autism spectrum disorder for purposes of certain health care coverage and many more. You can view the entire list here.
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Federal Spotlight: ABI Signs On to Letter Supporting House’s Version of the America COMPETES Act |
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ABI has joined the National Association of Manufacturers and the Consumer Brands Association to support the Manufacturing Security and Resiliency Program contained in the bipartisan America COMPETES Act as passed by the House. This program would set funding for grants and loans to help with supply chain issues and mitigate ongoing weaknesses. Businesses, industry organizations, state and local chambers can sign this letter through May 4.
Please reach out to Brad Hartkopf if you have any questions about this legislation.
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DNR Air Quality Bureau Meeting Coming Up |
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The Iowa Department of Natural Resources will be holding an Air Quality Client Contact meeting on Thursday, May 19th at 1:00 pm. The focus of the meeting will be on current and upcoming air programs issues and changes. The meeting will be held virtually and an agenda will be sent out two weeks prior to the meeting. If you have any questions, please contact Jessica Reese McIntyre.
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Sustainable Materials Management Meeting Date Moved |
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Last week, ABI’s newsletter highlighted the opportunity for individuals to participate in the next Sustainable Materials Management meeting, which is an initiative being led by the Iowa Department of Natural Resources to reimagine solid waste management in Iowa. At the time of last week’s publication, the meeting was set to take place on May 23.
Last Friday, it was announced that the meeting has been moved to Wednesday, June 15th. The meeting will still take place in West Des Moines from 9am - 4pm. There will be a virtual option as well. If you would like to participate in the meeting, please contact Brad Hartkopf.
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Watch: Weekly Business Report with Brad Hartkopf |
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ABI's Director of Public Policy Brad Hartkopf discusses the latest developments in the unemployment insurance legislation that lawmakers sent to the Governor this week. |
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Conference Spotlight: After Hours at Mississippi Moon Bar with Junk FM |
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When you attend the annual Taking Care of Business Conference, you'll gain valuable insights from main stage speakers and workshop programming you can immediately apply to your business.
Join us Tuesday evening (June 14th) for this after hours event and enjoy live music by Junk FM!
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Leadership Iowa University: Help Your Summer Interns Bridge the Gap Between College and Career |
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Leadership Iowa University is an opportunity for our state’s next decision makers to gain the tools needed for personal and professional success. During the five-day program, participants network with Iowa professionals, tour organizations in both the private and public sectors and receive actionable advice on how to move toward their goals.
We also invite our state's organizations with internship positions or programs to utilize LIU as an internship capstone. Be recognized for your professional development and workforce efforts while providing your intern representative an experience a step above.
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From the Desk of Mike Ralston, President |
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Lawmakers Should Support Continued Entrepreneurial Growth through Technology
Iowa has always been driven by an entrepreneurial spirit, and as we continue through this period of economic recovery, the business community is doing everything in our power to aid those who want to turn their dreams into reality. Even a business that starts in someone’s garage can grow to compete with large and established industries – but only with the proper tools and services in place to scale that growth effectively, and that often includes the products offered by those larger counterparts.
As the largest business network in the state, the Iowa Association of Business and Industry has made it our mission to grow a favorable business, economic, political, and social environment. We do this by fostering a pro-business climate, one that encourages innovation and development that allows our industries to thrive.
In this pursuit, community and economic support from Washington is of course critical. But unfortunately, the anti-tech rhetoric in Congress is not always helpful and the business community asks lawmakers to pursue policies that encourage healthy competition and give power to both consumers and businesses.
The pandemic necessitated online interactions between businesses and customers, and having access to digital services has allowed businesses to reach their customer base regardless of the downturn in foot traffic. And for up-and-coming local businesses and entrepreneurs, being able to utilize online marketplaces and promotional tools allows them to reach a wider range of customers.
With the help of digital tools, we are seeing immense economic and business growth across Iowa, and it would be a shame to see this progress halted as a result of misguided, yet well-intended, policy from Washington.
We hope lawmakers can find a way to lead the change on policies that will benefit hardworking Iowans, encourage partnerships and collaboration to deliver further growth.
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Click on the headlines to learn about the latest ABI member news. |
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