Professional Developers of Iowa
Policy Perspectives
Legislative Update | Issue #4 | March 6, 2021
TIF Chronicle
House Study Bill 194 (Link), which we alerted you about last issue, is still a live round. The bill is sitting in the House Ways & Means Committee and can be considered at any time. We need you to weigh in now with the legislators that represent your area. Make sure other developers around you are made aware of the legislation too.
In the last issue, we talked about the effects of HSB 194 and provided a template letter you could use in your advocacy. This issue, using input from a few PDI members, bond counsel and other sources, the PDI Legislative Chairs prepared a new document you can use to better understand HSB 194 and how it would impact your community. This should give you more ideas that might help you in your advocacy.

It's important that PDI members use this moment to educate their legislators about how important TIF is to your success. If we are successful in our efforts, we may be able to cultivate some supporters in the Legislature that defend TIF for years into the future.
We have reached the halfway point of the 2021 legislative session. Weeks 7 and 8 are now behind us and Monday, March 8th will mark Day 57 of the 110-day scheduled session.  It has been a wild ride, so far, and it is sure to get crazier as the weeks click by. 
 
First Funnel
Legislators rushed to hold subcommittee hearings and committee meetings this week to get ahead of the first major "funnel" deadline of the 2021 legislative session. The funnel is the way that legislators narrow the list of bills that can be discussed. Bills that did not make it out of committee before the end of this week (Friday, March 5) are technically "dead" for the rest of the year. Lawmakers moved more than 50 bills through committee JUST ON THURSDAY ALONE. 
 
**Since this is the first year of a General Assembly though, bills that die in the funnel will be eligible for action next year, AND some bills that die in the funnel may also re-appear as amendments to other bills late in the session. Don’t let up on your advocacy!
 
Pre-Session Prediction Off Target
In the first update, we warned you that leaders had told us this session would be very focused and there would not be as many bills introduced. That was clearly not an accurate prediction. As of Friday, March 5th, the end of the 8th week, legislators have introduced a whopping 1,925 bills. This consists of 838 Senate bills (averaging roughly 16.8 bills per Senator) and 1087 House bills (averaging roughly 10.9 bills per Representative).  About half of these bills didn't make it out of committee in time to beat the deadline.
 
It is important to note that bills that deal with oversight (Government Oversight Committee), spend money (Appropriations Committee), or deal with taxes (Ways & Means Committee) are exempt from the legislative deadlines, because they tend to come up later in the legislative session once lawmakers turn from policy toward fiscal issues. 
 
Here are a few issues that survived the first funnel cut:
 
  • The "Back the Blue" bill that supports law enforcement by enhancing penalties for rioting, allows police officers to sue people who file false reports against them, and protects police officers that accidentally hit protesters with their car. (SF534SF476)

  • Vaccine changes that include allowing dentists and podiatrists to give COVID-19 vaccines to adults, but do not allow businesses to require their employees get COVID-19 vaccines and vaccinators to update the state's immunization registry. 

  • The Governor's "Broadband Bill" to expand access to fast reliable Internet access to all areas of Iowa. (SF390)

  • "Permit-less Carry" gun bills that would allow people to own and carry guns without a permit. (HF756)

  • Election changes that will shorten time for early voting, require mail-in ballots to be received by Election night, limit who can hand deliver your ballots, and set limits on what county auditors can and cannot do. This bill SF413 is already on its way to the Governor.

  • Overhaul of the state's 42-year-old Bottle Bill in an effort to get bottle and can redemptions out of grocery stores and another attempt to get rid of all traffic cameras.

  • Constitutional amendments on guns, abortion, voting age, and gubernatorial succession. (SJR7HJR5HJR7SJR15). 

  • An end to day light savings time - Iowa would not "fall back" every Fall, and "spring forward" every Spring if this bill passes.

  • Major changes to child care to increase access to child care tax credits, encourage employers to pay for or build child care facilities for their employees, and help families gradually come off of child care assistance (rather than suddenly losing it all).(HF141HF230HF292HF302HF370HF230HF712

  • Additional and more frequent asset tests and income verification in order to continue receiving food assistance (SNAP), Medicaid, and family support (FIP). (SF389)

  • School vouchers that allow kids to attend private schools paid with taxpayer funded scholarships, and a new hybrid charter school program. (SF159)

  • Legislation to allow the Legislative Council to review the constitutionality of Presidential Executive Orders and forward them to the Attorney General to take action. (HF481)

  • A bill that stops all taxpayer funds from supporting technology companies like Google and Facebook, if they censor free speech. (SF 402)

  • Public schools in Iowa would be required to provide annual first amendment rights training to all staff and students. (HF744)
 
Died in the Funnel
There were many bills that didn't make the cut, including controversial bills that limited access to information at libraries, stopped schools from allowing students to use the bathroom that aligns with their gender identity, banned health care providers (including mental health professionals) from treating individuals with gender dysphoria, ended tenure at Iowa colleges, expanded medical marijuana use and legalized "magic mushrooms," reinstated the death penalty, added vaping to the state's Smokefree Air Act, and limited the number of times a US Senator and US Representative could run for office.
 
Second Funnel
Legislators now have until April 2 to vote on the surviving bills, and get them out of committee in the opposite chamber. This "second funnel" requires a House bill to be voted out of the House, and then out of a Senate committee before April 2. This procedural hurdle can be overcome if identical bills are passed by committee in both chambers.
 
This next two weeks will be filled with long days of debate, with committee meetings picking up in the final two weeks before the second funnel deadline. Stay tuned and remember you can watch or listen to live or taped debates at www.legis.iowa.gov
 
REC Meeting
In the middle of this flurry of work is the March 19 Revenue Estimating Conference (Link) meeting when a group of three economists review how much money the state has taken in since the start of the fiscal year on July 1, 2020. They then predict how much money the state has to spend in its budget for the next fiscal year (which begins July 1, 2021). The Legislature will start their budget process using the LOWER of the two estimates from this meeting and the REC meeting from last December. 
 
Redistricting
The Temporary Redistricting Advisory Commission (Link) has been holding video conference meetings the last few Mondays. The role of the commission is to assist the Legislative Services Agency in its duties to draw a redistricting map and to hold public hearings on a new map. The commission still has little clarity over how that process may change this year, since the US Census Bureau has notified states that they won’t have the necessary data available until September 30th. 
 
The Iowa Constitution requires the Iowa Supreme Court to “cause the state to be apportioned” if the Legislature has not approved a map by September 15. Whether legislators can meet in a special redistricting session in October, or if instead the Supreme Court will need to take control of districting, has yet to be determined.
 
NOTE ABOUT BILL TRACKER LINK AT THE BOTTOM:  The default setting is on "active bills," which are those that made it through the funnel. You can see the bills that died and are no longer active by switching the list to "Inactive." Remember it is updated daily, but we are now fully caught up from the whirlwind of funnel week.
 
COVID Relief Bill
This week, the Iowa House passed SF 364 (Link), a COVID-19 relief package for Iowa taxpayers and businesses affected by COVID-19. The bill provides $128 million in tax relief to Iowans by exempting pandemic-related grants and unemployment benefits from state income tax. This will be funded by a combination of the remaining monies within the Taxpayer Relief Fund for FY 21 and some of the State’s remaining ending fund balance.
Iowa Economic Development Authority (IEDA) and Iowa Finance Authority (IFA) Director Debi Durham presented to the House Economic Development Appropriations Subcommittee on Wednesday, February 24th. Her presentation can be found HERE.
Manufacturing 4.0 Advances
Action in the House Economic Growth Committee on the final Thursday of funnel week kept the IEDA’s Manufacturing 4.0 bill alive. The committee met Thursday morning to take up and unanimously pass HSB 233 (Link) which contains adjustments to IEDA tax credit allocations, creation of the Manufacturing 4.0 Technology Fund, a new $5 million line item funding for tourism, and creation of the Energy Infrastructure Revolving Loan Program. HSB 233 will receive a new House File number and will be immediately referred to the House Ways & Means Committee for further consideration.

Alternative Project Delivery
Legislation PDI is supporting that would provide Construction Manager at Risk (CMaR) as an alternative to low bid for public projects was passed by the House State Government Committee this week, making it safe from not just the first, but also the second funnel. SF 183 (Link) can now be considered at any time by the full House. If it is passed without amendment, it will go to the Governor for her review and hopefully signature. 

Port Authorities
Legislation (HSB 204) that would make it easier for communities to utilize Iowa Code Chapter 28J, referring to Port Authorities, was passed by the House Economic Growth Committee and will receive a new House File number. The bill is modeled off some innovative use in Ohio of a similar provision and is designed to give communities an alternative to Chapter 28E arrangements by allowing a port authority to be created by one local government, by not requiring the port authority to be by water, and by allowing local governments to make contributions to a port authority. PDI supports this legislation. 
Big Tech Censorship
A lot of attention has been paid this past week to legislation (SF 402 and HF 633, both to be renumbered soon) that addresses big tech companies from removing controversial posts. Both chambers passed a bill out before the funnel deadline that allows them to continue working on this issue. 
 
The Senate’s bill would prohibit state and local governments from awarding incentives or benefits to companies that censor online. The House’s bill would prohibit such companies from preventing a user from creating or interacting with constitutionally-protected speech on its website. Expect to see more discussion on this topic in the weeks ahead.
Governor’s Housing Bill
The Governor’s Housing bill (SF 295 & HF 582) is still in the Ways & Means Committee in both chambers, awaiting action. We are likely to see more interest in this legislation now that funnel week has passed. PDI is supporting these bills. The Department released more handouts this past week on this legislation that you can see HERE and HERE 
PDI Bi-Weekly Legislative Calls

PDI lobbyist Craig Patterson and the Legislative co-chairs will lead a 30-minute call every other week during the legislative session for members only. Get the most up-to-date information on the weeks when the PDI Policy Perspectives newsletter is not published.  
 
Calls are at 9:00 a.m. using Zoom. The calls are: 
 
March 15 
March 29 
 
You must register in advance for this meeting as it is for members only. 

Register HERE
After registering, you will receive a confirmation email containing information about joining the meeting.
PDI Bills of Interest - Bill Link
LIVE Bills – Bills we are tracking for you that survived the first funnel and can continue to be worked on this session.

HF141 Child Care Services Exemption Summary | Details House Ways & Means Committee
Exempts from the individual income tax wages received for providing certain child care services.

HF142 Sale and Use Tax Refunds Summary | Details House Ways & Means Committee
Makes changes to sales and use tax refunds.

HF230 Child Care/Dependent Tax Credit Summary | Details Senate Human Resources Committee
Expands eligibility for child care/dependent tax credit by doubling income eligibility (from taxpayers earning less than $45,000 to those earning less than $90,000).

HF260 Child Care Homes Summary | Details Senate Floor
Makes changes to the definition of "school-age children" and revises requirements for child care homes.

HF292 Child Care Provider Reimbursement Summary | Details Senate Human Resources Committee
Requires DHS to set the child care provider reimbursement rates for providers that are below the 50th percentile in market survey to be completed July 1, 2021.

HF301 Child Care Workforce State Matching Grants Program Summary | Details Senate Human Resources Committee
Creates a child care workforce state matching grants program.

Establishes a graduated eligibility phase-out program for state child care assistance.

HF304 Personal Delivery Devices Summary | Details Senate Commerce Committee
Authorizes and regulates the operation of personal delivery devices.

Includes the acquisition and improvement of real estate for, and the construction of a child care facilities in the definition of essential corporate purpose.

HF34 New Resident and New Graduate Tax Credits Summary | Details House Ways & Means Committee
Creates the new resident and new graduate tax credits.

HF346 Lobbying Activities Summary | Details House Floor
Places requirements on lobbying activities of political subdivisions.

HF348 Manufacturer Activities Tax Credit Summary | Details House Ways & Means Committee
Creates the manufacturer actives tax credit.

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

HF395 Agricultural Property Tax Summary | Details House Floor
Makes changes to agricultural property taxes based on adjustments to drainage and levee district taxes.

Strikes provisions which state that urban renewal bonds are not indebtedness of the state.

HF418 Multi-Residential Property Summary | Details Sent to Governor
Eliminates property tax classification for multi-residential property by 2022.

HF442 Rental Properties/Mobile Home Parks Summary | Details House Floor
Modifies property law provisions relating to rental properties, manufactured home communities, and mobile home parks.

Excludes 50 percent of the net capital gain from net income computation for state individual income tax if the asset was held for more than two years.

HF47 Business Property Tax Credit Summary | Details House Ways & Means Committee
Strikes the requirement that the owner of part of a property refile for tax credits if the ownership of the rest of the property changes.

Repeals the state inheritance tax and qualified use inheritance tax.

HF495 Road Use Tax Fund Reports Summary | Details Senate Floor
Changes reporting date for cities that receive road use tax fund moneys.

HF496 University Tenure Summary | Details House Floor
Prohibits tenure systems at Regents' universities.

HF543 Senior Housing Tax Credit Program Summary | Details House Ways & Means Committee
Creates a senior housing tax credit program.

HF555 Natural Gas/Propane Sales Summary | Details House Floor
Prohibits counties and cities from regulating the sale of natural gas and propane.

HF559 Apprenticeship Requirements Summary | Details House Floor
Makes changes to EDA apprenticeship sponsor requirements.

HF582 Governor's Housing Bill Summary | Details House Floor
Creates a housing tax credit program, modifies distribution of real estate transfer taxes, modifies workforce housing tax incentives, creates a disaster housing recovery assistance program, and modifies redevelopment tax credits.

HF586 High-Speed Electronic Transmission Mediums Summary | Details House Floor
Establishes a broadband forward certification program and a telecommuter forward certification program.

HF606 High Quality Jobs Program Summary | Details House Floor
Permits new or expansion of existent onsite day care facilities to qualify under the high quality jobs program.

HF607 Public Utility Income Summary | Details House Floor
Excludes from corporate income tax certain income of a public utility regulated by the utilities board.

HF618 Parental Leave Tax Exemption Summary | Details House Ways & Means Committee
Provides an income tax exemption for certain wages paid while on parental leave.

HF626 Revitalization Areas Summary | Details House Floor
Adds additional exemption to a revitalization area.

HF653 Telecommunications Financing Summary | Details House Floor
Allows the use of 28F joint financing for communication works and facilities.

HF69 CEO Taxation/Compensation Summary | Details House Ways & Means Committee
Makes provisions related to taxation of compensation paid to CEOs of publicly traded corporations.

HF712 Child Care Facility Tax Credits Summary | Details House Floor
Gives developers tax credits for constructing child care facilities around the state (including rehab/repair).

HF722 Teach Iowa Scholar Fund Summary | Details House Floor
Allows for the transfer of funds from the teach Iowa scholar program from the teach shortage loan forgiveness and forgivable loan programs.

HF778 Vacant School Building Demolition Grants Summary | Details House Floor
Creates a vacant school building demolition grant program.

HF81 Unresponsive Property Owners Summary | Details House Floor
Authorizes the reduction of damages payable to an unresponsive property owner in condemnation proceedings.

HSB1 Rural Development Tax Credit Program Summary | Details House Ways & Means Committee
Directs EDA to begin accepting rural development tax credit program applications beginning January 3, 2022.

HSB165 Private Flood Insurance Act Summary | Details House Floor
Establishes the Iowa Private Flood Insurance Act.

HSB191 Education Loan Deduction Summary | Details House Ways & Means Committee
Changes effective date for a new deduction for employee income resulting from the payment by and employer of principal or interest on the employee's qualified education loan.

Makes provisions related to tax increment financing.

HSB195 Pandemic Relief Deductions Summary | Details House Ways & Means Committee
Excludes certain COVID-19 related grants from individual and corporate income taxes and allows certain deductions related to the paycheck protection program loan forgiveness.

HSB204 Port Authority Powers Summary | Details House Floor
Makes changes to powers of port authorities.

HSB207 Underground Utilities Summary | Details House Floor
Establishes timelines for marking utility lines after requests from excavators.

HSB227 Internet Exchange Point Summary | Details House Floor
Provides for the creation of an internet exchange point utilizing the ICN.

HSB233 Manufacturing 4.0, Tourism Funding and Other IEDA Programs Summary | Details House Floor
Makes provisions related to Manufacturing 4.0, tourism funding, and other IEDA programs.

Creates land banks.

SF14 Low-Cost Home Construction Tax Exemption Summary | Details Senate Ways & Means Committee
This bill provides a sales tax exemption for a nonprofit whose primary activity is construction of low-cost homes by incarcerated individuals.

Repeals individual income tax and increases the state sales and use tax.

SF159 Governor's Education Plan Summary | Details House Education Committee
Proposes new education initiatives and changes to existing law.

This bill phases out the state inheritance tax by July 1, 2030.

SF160 School Instruction Delivery Summary | Details Signed
Would require schools to offer full-time in person learning options for students during the pandemic. Allows parents/guardians to notify the school district specifying preferred instruction delivery method for students.

SF162 Property Assessment Protests Summary | Details Senate Ways & Means Committee
Makes changes to protests of commercial and industrial property assessments filed with a local board of review.

SF183 Public Construction and Improvement Contracts Summary | Details House State Government Committee
Amends current laws related to public construction and improvement contracts.

SF252 Rental Housing Vouchers Summary | Details House Floor
Prohibits cities/counties from adopting ordinances that prohibit landlords from refusing to accept federal housing vouchers.

SF269 School Allowable Growth Summary | Details Signed
Establishes a school allowable growth of 2.5 percent for the budget year beginning July 1, 2021.

SF27 Research Activities Tax Credits Summary | Details Senate Ways & Means Committee
This bill limits the amount of research activities tax credits that may be refunded each year.

SF339 Unauthorized Alien Employment Summary | Details Senate Floor
Prohibits employers from knowingly employing unauthorized aliens.

SF361 Employee Drug Testing Summary | Details Senate & House Floors
Changes notification requirements for private sector employee drug testing.

SF364 Paycheck Protection Program Summary | Details Senate Floor, Second Time
Fully conforms Iowa tax law to federal law regarding money received from the federal paycheck protection program for all taxpayers.

Makes several provisions related to state taxation.

SF373 Homeownership Development Tax Credit Summary | Details Senate Ways & Means Committee
Creates a homeownership development tax credit.

SF390 Governor's Broadband Proposal Summary | Details Senate & House Floors
Makes provisions related to broadband service availability and administration of the empower rural Iowa broadband grant fund.

SF402 Online Content Provider Contracts Summary | Details Senate Floor
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.

SF442 County Flood Mitigation Summary | Details Senate Floor
Includes the purchase and construction of land and structures to protect from flooding as an essential county purpose.

SF443 Abandoned Buildings Funding Summary | Details Senate Floor
Expands eligibility for funding assistance to address abandoned buildings.

SF469 Manufactured/Mobile Homes Summary | Details Senate Floor
Makes provisions related to regulation of continuing nonconforming uses of manufactured, modular, and mobile homes and site-built dwelling units.

SF490 New Resident Tax Credit Summary | Details Senate Floor
Creates a new resident tax credit.

SF491 Remote Worker Grants Summary | Details Senate Floor
Creates a new remote worker grant fund.

SF493 Public Improvement Contractors Summary | Details Senate Floor
Requires contractors on public improvement projects to file reports with labor commissioner 0prior to performing work.

SF496 Noncompete Agreements for Low-Wage Workers Summary | Details Senate Floor
Prohibits an employer from requiring a low-wage employee to enter into a noncompete agreement.

SF516 Automated/Remote Traffic Enforcement Summary | Details Senate Floor
Prohibits the use of automated and remote traffic enforcement systems.

SF548 Advertising Device Regulation Summary | Details Senate Floor
Modifies regulations and requirements relating to advertising devices along highways.

Makes provisions related to renewable fuel.

SF554 Abandoned Property Titles Summary | Details Senate Floor
Allows counties to follow the same process for acquisition of title to abandoned property in unincorporated as in the city.

SF555 Vaccinations/Immunizations Summary | Details Senate Floor
Makes several provisions related to vaccinations and immunizations.

Proposes a state constitutional amendment to restrict certain individual income tax changes.

SSB1049 Airline Income Apportionment Summary | Details Senate Floor
Provides for the apportionment of airline and air freight forwarder business income.

Makes provisions regarding state taxation.

SSB1172 Unemployment Benefits Summary | Details Senate Floor
Makes changes to unemployment benefits.

SSB1196 Investment/Innovation Fund Tax Credits Summary | Details Senate Ways & Means Committee
Modifies investment tax credits and innovation fund tax credits.

Makes provisions related to the high quality jobs program, manufacturing 4.0 technology investment program, and Iowa energy center.

SSB1242 Governor's Economic Development Budget Summary | Details Senate Appropriations Committee
The governor's budget for economic development authority, department of cultural affairs, Iowa finance authority, public employment relations board, and department of workforce development for for FY2021-2022 and FY2022-2023.

SSB1246 Governor's Transportation Budget Summary | Details Senate Appropriations Committee
The governor's budget on transportation and other infrastructure appropriations for FY2021-2022 and FY2022-2023.

Excludes certain COVID-19 related grants from individual and corporate income taxes.
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DEAD Bills – Bills we are tracking for you that died in the first funnel. Since this is the first year of two-year General Assembly, these bills all come back to life next January. These bills can also be turned into amendments that get added to other bills, so don’t let up on your advocacy efforts!


HF184 School Sports Participation Summary | Details House Education Committee
HF185 Library/School Programming Summary | Details House Judiciary Committee
HF213 Local Entertainment Surcharge Summary | Details House Local Government Committee
HF274 Obscene Material Dissemination Summary | Details House Judiciary Committee
HF288 Digital Content-Blocking Summary | Details House Commerce Committee
HF51 Advanced Opportunities Program Summary | Details House Education Committee
HF597 Public Improvement Assessments Summary | Details House Local Government Committee
HSB114 Workforce Development Board Summary | Details House Labor Committee
HSB162 Off-Campus Face Masks/Social Distancing Summary | Details House Education Committee
HSB241 Midwest Interstate Passenger Rail Compact Summary | Details House Economic Growth Committee
HSB66 Regents Non-State Funds Spending Summary | Details House Education Committee
SF11 State Transportation Commission Summary | Details Senate Transportation Committee
SF224 School Bathroom Access Summary | Details Senate Education Committee
SF393 Targeted Jobs Withholding Credit Pilot Summary | Details Senate Labor and Business Relations Committee
SSB1208 Telecommunications Financing Summary | Details Senate Commerce Committee
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