Professional Developers of Iowa
Policy Perspectives
Legislative Update | Issue #3 | February 12, 2022
Five weeks down, ten to go … maybe. Monday, February 14th will mark Day 36 of the 100-day scheduled session. Monday also marks the first day of the first funnel week. By close of business Friday, February 18th, all bills that have not been passed by a full committee as dead for the year (excluding tax and spending bills). 
 
Since most bills have to be first passed by a 3-person subcommittee, that means last week and the first part of funnel week was and will be PACKED with subcommittee meetings. As this week progresses, full committee meetings will start taking the place of subcommittees and will be packed in through at least Thursday morning. By the time it’s over, hundreds of bills will be dead for the year.
 
Meanwhile, bills are still being introduced at a higher rate than a couple of weeks ago. Most of them won’t have time to be considered. For the ones that are being scheduled for subcommittees and committee right away, it’s very common to have legislators agreeing a bill needs more work but advancing it in order to keep it alive for further discussion. 
 
Floor Work Heats Up the Week of February 21st
Once the funnel is over this week, the Legislature’s focus will shift to floor work as the chambers will move as many bills as they can to the other chamber in preparation for the second funnel deadline on March 18th. This flurry of activity in the weeks surrounding the first funnel should explain to a lot of people outside the building why the Legislature’s budget process doesn’t start to heat up until March every year. With that said though, it’s clear that both chambers are assembling their budget priorities behind the scenes.
 
Education Funding
The only bill that the Legislature is required to debate and get to the Governor early every session is the School Supplemental Aid (SSA) bill that sets funding for the upcoming school year. Late Thursday, the House passed a 2.5% increase in the SSA ($150 million), which the Governor supports. The Senate’s bill has an increase of 2.25% that they will debate early this week. While the Senate’s percentage increase is lower, their proposal devotes more money to paying down the difference between the district cost per pupil and the state cost per pupil.  
 
Log Into Zoom
For those of you wishing to virtually attend and speak on bills that are in a Senate subcommittee, you can do so on Zoom. However, you MUST be logged into an account. It doesn’t need to be a paid account, but it must be an account with your information. The reason for this is that the Senate, upon initial availability of Zoom for meetings, had problems with people abusing the system by being logged in anonymously and carrying out activities that didn’t belong in the meeting. 
 
The House uses the WebEx system for their subcommittees. You can watch their meetings, but you cannot speak about a bill under consideration unless you are physically in the room.
 
Tax Bills
In the last update, we talked about the similarities and differences between the House, Senate and Governor’s tax bills. Since then, the Senate (SF 2206) and House (HF 2317) both have their bills ready for debate in their respective chamber and we anticipate the House going first this week with consideration of HF 2317. 
 
The non-partisan Legislative Services Agency (LSA) is responsible for analyzing the fiscal impact of legislation. They did release a fiscal note this week on HF 2317 that you can review HERE
 
LSA has not yet completed an analysis of SF 2206 which is much bigger in scope than the House bill. However, the Iowa League of Cities did an analysis of the effect of the Local Option Sales Tax (LOST) changes in the bill and created a tool that you can review HERE. Since the bill would convert the LOST to a statewide penny and since not all jurisdictions have approved the LOST, that means some counties will see some shifting in the distributions of those revenues. The Legislature is still discussing possible changes to the bill that would alleviate this.
Iowa House passing Education SSA funding on Thursday night
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The TIF Chronicle
Currently, the only TIF bill in the Statehouse right now (knock on wood) remains Rep. Hite's legislation (HF 2082) to remove the $5.40 school foundation levy from TIF projects centered around wind turbines. A subcommittee meeting was held last Wednesday where the bill was advanced to the full House Ways & Means Committee. 

PDI's message at the subcommittee was to ensure the bill does not take on any changes that make it larger and we urge members to work with their cities and counties to understand the bill's effects. Several members have asked about the current form of the bill which would affect both new AND EXISTING wind TIFs. It is our impression that the bill will eventually be amended to include new projects only, however we will continue to watch and advocate for that change to occur. Please take some time to talk with your legislators about how your community uses TIF.
PDI's Legislative Calls
PDI's Lobbyist and Legislative Committee Co-Chairs will again be hosting a 30-minute Zoom call every other Monday morning at 9am during the legislative session to brief members on the latest at the Capitol. You must pre-register in order to join us and you can do that HERE. The next call is set for Monday, February 21st. We hope you can join us!

Construction Manager at Risk
We continue to work with our partners to push for House consideration of SF 183, legislation to afford public entities an alternative project delivery system. Iowa is one of only two states that doesn't have some sort of alternative system.

Construction Manager at Risk would be optional for the local government, would eliminate change orders, can help set cost ceilings for projects, and would allow for more pre-construction collaboration between the project's designers and the contractors. Please take some time to tell your Representative (Link) you support SF 183.

Port Authorities
Legislation (SSB 3070) to make is easier for multiple communities to work together on large projects passed subcommittee and now could be considered by the full Senate Committee this week.

Governor's Workforce package
The Governor mentioned during her Condition of the State address the need to tackle workforce issues. Right out of the gates, she introduced legislation (HF 2279 & SSB 3093) that includes tort reform and make changes to unemployment benefits.

This past week, she introduced legislation (HSB 682 & SSB 3123) that makes a number of other changes with a goal of making Iowa more competitive. The bill would expand health care provider loan repayment programs, waive certain fees for veterans, change some professional licensing laws, expand work-based learning in high schools, and create a statewide building code that local governments cannot raise or lower for electrical, plumbing, fire safety and energy efficiency standards. At this point, the bill is expected to survive the funnel in both chambers.

Other Bills you care about
Take a look at the list below and weigh in with your legislators if you see something you support! Or oppose! A lot of the bills in the list below will die this week, so be sure your voice is heard!
Many crowded subcommittees this week!
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PDI Bills of Interest - Bill Link
Alcohol, Drugs, Smoking
Changes notification requirements for private sector employee drug testing.

Broadband & Technology
Allows the use of 28F joint financing for communication works and facilities.

Permits joint financing for telecommunications facilities.

Prohibits the state or political subdivisions from entering into contracts with, or providing tax incentives or other benefits to, certain companies that censor online content.

Requires an agency in control of a road to give non-discriminatory access to an agency-owned conduit to utilities for broadband deployment.

Strikes the cap that purchases by the ITTC for the ICN cannot exceed without approval.

Allows a public utility to apply for Empower Rural Iowa grants with communications service providers supporting their broadband project costs.

Childcare
Creates a child care workforce state matching grants program.

Provides businesses with tax credits for providing child care benefits for employees.

Requires state childcare assistance payments be made to providers for the time the child is scheduled to be in attendance, regardless of whether the child is in attendance.

Allows a childcare provider to collect the difference between the amount of state assistance and the amount the provider normally charges from a family in the childcare assistance program.

Changes child care center staff ratios.

Allows individuals 16 and older working or volunteering at a childcare facility to be unsupervised.

Increases the cap for family incomes for eligibility for the state childcare assistance program.

Civil Rights
Prohibits gender identify instruction for grades 1-6.

Prohibits someone of a different biological sex from using a school bathroom designated for the other biological sex.

Energy & Utility
Prohibits local governments from requiring a public utility to place facilities within an agency-owned conduit as a condition of accessing a public road.

Requires a pipeline company seeking to use eminent domain to acquire approval from 90% of affected landowners prior to beginning construction.

Deems that refurnishing, maintaining or repowering a wind energy project will not cause the property to receive a new special valuation schedule.

Makes provisions related to regulation of gas and electric utilities.

Makes provisions related to special valuation of wind energy conversion property.

Environment & Natural Resources
Moves the repeal of the Iowa Energy Center to 2030.

Creates a restore the outdoors program.

Eliminates requirements for a person seeking a general permit to publish notice and requires the DNR to publish electronic notice.

Places spending restrictions on county conservation boards and DNR when purchasing certain properties.

Housing
Makes provisions related to regulation of continuing nonconforming uses of manufactured, modular, and mobile homes and site-built dwelling units.

Requires the IFA to establish a Neighborhood Housing Revitalization Program with forgivable loans and other programs to assist lending programs in both urban and rural areas.

Requires agencies and local governments to submit an estimated cost to the State Building Commissioner of new or changed rules on residential housing.

Establishes a home loan program fund and a housing renewal program.

Local Government
Limits local government regulation of home-based businesses.

Requires eminent domain and urban renewal plan notices for the condemnation of all real property match the requirements for the notice to condemn agricultural land.

Allows cities to establish entertainment zones and to charge entertainment surcharges in those zones.

Defines protecting information from cyber-attacks as an essential county/corporate purpose.

Prohibits local governments from adopting stormwater ordinances that exceed the requirements of state or federal law.

Allows county zoning commission members to live within the limits of a city in the county if the county is under population of 20,000.

Prohibits local governments from adopting building codes or other ordinances or rules that regulate the use of building materials that are approved in national codes, that are more stringent than national codes, or that diminish the rights of private property owners.

Changes requirements for zoning commission and board of adjustment members.

Requires a groundwater hazard statement be included with a property declaration only when hazardous conditions exist.

Makes provisions related to various matters under the purview of the state.

Other
Adds additional exemption to a revitalization area.

Places requirements for local government lobbying and contracts.

Prohibits any group that receives tax funds from providing training that teaches, advocates, encourages, promotes, or act upon stereotyping, scapegoating, or prejudice toward others on the basis of demographic membership or identity.

Prohibits an employer from requiring an employee to enter into a non-compete contract, unless financial loss or trade secrets are at risk.

Allows any affected party to challenge the accuracy of a recorded plat of survey.

Moves the repeal of the Iowa Energy Center; changes requirements for the High Quality Jobs Program; and allows the EDA to extend the deadline for the workforce housing program.

Moves the date to not allowing public funds to be spent on lodging if the lodging provider has not certified compliance with human trafficking training to June 30, 2022.

Makes provisions for construction bidding procedures for public improvements.

Allows a governmental body to conduct a meeting electronically even when it is possible or practical to conduct the meeting in person.

Amends current laws related to public construction and improvement contracts to allow the use of Construction Manager at Risk.

Expands eligibility for funding assistance to address abandoned buildings.

Makes provisions related to several child and dependent adult programs.

Makes provisions related to the powers and duties of port authorities.

Property Tax
Strikes changes to the commercial and industrial property tax replacement payments made in the 2021 session to reduce or eliminate the payments.

Public Health
Prohibits employers from requiring employees or applicants from having to receive a vaccine that has not been approved by the FDA.

Prohibits the Labor Commissioner from enforcing federal OSHA standards related to COVID vaccination and testing.

Tax
Excludes from corporate income tax certain income of a public utility regulated by the utilities board.

Excludes all retirement income from individual income tax.

Establishes alternative base income taxes for individuals and corporations.

The House's tax reform bill.

Provides a sales tax exemption for digital products, prewritten computer software, and related services sold to public utilities.

The Senate's tax reform bill.

Governor's Tax Plan.

Makes changes to sales, use, and motor vehicle fuel taxes.

Tax Increment Finance
Prohibits a TIF division of school property taxes in an urban renewal area if the area contains a wind energy conversion project subject to special valuation that has been approved by local government.

Transportation
Makes changes to rules related to airport registration or renewal and airport site approval.

Unemployment
Makes changes to employment security benefits.

Workforce
Creates a Growing Our Workforce Tax Credit.

Establishes an advanced opportunities programs and scholarship.

Prohibits employers from knowingly employing unauthorized aliens.

Prohibits an employer from requiring a low-wage employee to enter into a noncompete agreement.

Allows part-time students to participate in the future ready Iowa skilled workforce last-dollar scholarship fund.

Makes changes to unemployment benefits.

Makes provisions related to various matters under the purview of the state.
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