Week 14 of the Iowa Legislature is in the Books; 100th Day of Session is Next Week
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The 100th calendar day of the 2022 legislative session is drawing near. Tuesday, April 19th is when per diem expenses expire for lawmakers. This deadline typically acts as a catalyst for legislators to finish their work for the year, but it’s become obvious that we’re still at least a few weeks away from adjournment due to the chambers finding themselves at odds over a number of significant policy issues. The budget is the only item that technically has to be completed before adjourning sine die, but the Legislature and the Governor have made clear they want certain matters addressed before the 2022 legislative session concludes.
With this week being relatively quiet in terms of floor action and with where we’re at in session, it’s prudent for members to have the lay of the land on some of the key issues that are still outstanding.
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The House has passed all nine budget bills which means they’re currently in the Senate. The Senate Appropriations Committee met on Wednesday and approved HF 2557, the Transportation Budget, which is typically a bipartisan bill. Subcommittees have been assigned to a few other budget bills, but that’s it at this point.
One key issue related to the budgets currently under consideration that ABI members should be aware of is eminent domain.
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ABI’s top public policy priority this session is workforce, and HF 2355 is legislation that will bolster Iowa’s workforce by transforming our unemployment insurance system into a re-employment system. The goal is to reform the state’s current unemployment system to help unemployed Iowans reenter the workforce faster. Another goal is to improve and ensure the Unemployment Insurance Trust Fund (UITF)’s solvency. The UITF is funded through taxes that Iowa employers pay.
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Pharmacy Benefit Manager Legislation |
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ABI staff continues to work with members of the Senate on legislation (HF 2384) to reform the relationship between pharmacy benefit managers (PBMs) and the pharmacies they reimburse for prescriptions filled for participants in ABI member employee health plans. As mentioned in this column before, ABI staff sees a path to provide these state-based reforms that will provide more financial certainty for local independent pharmacies. Care must be taken not to drive up costs for employer sponsored health plans while doing so, and that is the focus of staff efforts.
Larger employers that fully self-fund their health plans have been federally regulated under the 1974 Employee Retirement Income Security Act (ERISA) and were at risk of new state regulations under the proposed law. We now expect clarification that ERISA plans will be exempt from the legislation if passed.
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Both the House and Senate are moving separate bills (HF 2583 and SF 2372) with many important pieces of tax policy that were not considered when the larger tax cut bill HF 2317 was passed earlier this year. ABI staff will be working with legislators to make sure that the reconciliation of the measures includes the sections important to ABI members.
Included in both bills is language sought by manufacturers of food for human consumption. These manufacturers held that a newly promulgated administrative rule exposed more of their operations to taxation than was the case prior to the adoption of the rule. The language in both bills solves this tax problem.
The franchise tax rate paid by Iowa banks was not addressed when personal and corporate tax rates were reduced under the larger tax bill signed into law in March. Under the pending Senate bill, these rates will be lowered over time to 3.9%, matching the rate paid for personal income going forward. Under the House bill the bank franchise tax rate will move to 3.5% over time and approximate the tax burden of Iowa credit unions.
ABI is supportive of both bills and is working to ensure a reconciled bill heads to the governor.
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The Iowa Senate passed this bill two weeks ago, but on Tuesday, the House passed a strike-after amendment to SF 2378 and ultimately approved the legislation 73-17. This means that the amended version of this bill is back in the court of the Senate. The bill the House approved adds high alcoholic content beer and canned cocktails to the definition of “beverage” in Iowa code. It also raises the handling fee distributors pay redemption centers from one cent to three cents, and also includes retailers. The five-cent refund must be returned to the consumer by the retailer or redemption centers within a reasonable time not beyond 10 days.
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HF 2128 requires gas stations to advertise for sale and sell E15 gasoline based on the following guidelines: one qualified motor fuel dispenser, if there is only one qualified motor fuel dispenser, or at least 50 percent of all pumps, if there is more than one. This would have to take place by the beginning of 2026. Under this bill, the Iowa Sec. of Agriculture could issue a waiver for those gas stations that are unable to comply with the requirements. The bill passed the House 82-10 in early February. It’s passed through the Senate Agriculture Committee and is currently sitting in Ways & Means. ABI is neutral on the legislation.
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Business is a Leading Institution That’s Trusted |
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The U.S. Chamber of Commerce recently highlighted key findings from the 2022 Edelman Trust Barometer. The report concluded that business is the most trusted institution for people not only in the United States, but also around the world.
Some key takeaways from the report – with more than 36,000 respondents across 28 countries – include:
- Fifty-two (52) percent of respondents say they only need to see the information repeated by their employer once or twice before believing it;
- Business and NGOs are seen as a effective agents of positive change; and
- Sixty-five (65) percent of respondents say business “can successfully execute plans and strategies that yield results.”
Learn more about the report here.
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Federal Spotlight: District Court Rules Finkenauer Ineligible for U.S. Senate Democratic Primary |
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Late Sunday, Polk County District Judge Scott Beattie ruled that former Congresswoman and former State House Rep. Abby Finkenauer was ineligible to be on the Democratic primary ballot for U.S. Senate. This challenge was based on the validity of three signatures – one from Allamakee County and two from Cedar County – which the challengers argue did not include a date. |
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The plaintiffs in the case argue Finkenauer did not meet the requirement set by law, which states, “Nominations for candidates . . . for United States senator may be made by nomination petitions signed by not less than three thousand five hundred (3,500) eligible electors, including at least one hundred (100) eligible electors from at least nineteen (19) counties of the state.”
A panel of state officials – the State Objections Panel – had ruled the signatures were valid on a 2-1 vote. Iowa Sec. of State Paul Pate, Attorney General Tom Miller, and State Auditor Rob Sand serve on this panel.
This Wednesday, the Iowa Supreme Court heard oral arguments as the case was appealed to determine whether these signatures followed the requirements set by Iowa law. The Iowa Supreme Court is expected to reach a decision that is released today, as ballots for absentee voting will be printed soon. Election Day for the primary is June 7, 2022.
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Federal Spotlight: President Joe Biden Touts E15 in Iowa Visit |
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President Joe Biden traveled to Iowa Tuesday and visited POET Bioprocessing to advocate for ethanol. During his visit, President Biden unveiled his administration’s plan to allow E15 to be sold this summer. According to the White House, this will be accomplished through a national emergency waiver.
Iowa Gov. Kim Reynolds praised this announcement.
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In a release, she stated: “Thank you to the Biden Administration for this very welcome news. While there is more to be done from the Administration to address high energy and fuel prices, unrestricted access to E15 is a great first step.”
“This action, although temporary, will ensure Iowans continued access to E15 and higher blends of ethanol. It is critical that the EPA implements this in a way to fully allow E15 for the entire summer driving season,” she added.
Other steps to work toward sustainable energy, President Biden added, include his administration’s goal of zero-carbon for aviation and a Sustainable Aviation Fuel Grand Challenge of producing 3 billion gallons each year of sustainable aviation fuels by 2030.
Read President Biden’s full remarks here.
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Watch: Weekly Business Report with Kelly Barrick |
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Kelly Barrick, Market Lead - US Mid Corporate Banking at ABI member company CIBC, shares her insight about how financial institutions can help businesses navigate supply chain issues.
Barrick is a member of ABI's board of directors, a member of the Leadership Iowa class 2015-2016, and serves on the Leadership Iowa board.
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#ABICON22 Trivia: Win a Free Conference Registration |
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In order to highlight some of the great agenda items in store for this year’s conference and to reminisce on past conferences, ABI is having a social media trivia contest through the month of April. Each week, a trivia question will be posted on our social pages. At the end of the month, one lucky participant will receive a free registration to the 2022 conference. |
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From the Desk of Holly Mueggenberg |
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Present at the 2022 Manufacturing Conference
Do you have expertise on issues important to Iowa manufacturers?
Share your insight with attendees at the 2022 Manufacturing Conference, taking place on October 5 at the FFA Enrichment Center in Ankeny.
ABI is now accepting proposals for workshops. We are seeking speakers and best practice sharing discussion leaders that can cover a variety of issues.
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Preferred topics include:
- Workforce (including retention and recruitment)
- Successful ways to attract new employees
- Industry 4.0 (including automation)
- Supply Chain
- Marketing
- Modern technology
- Using data to stay in the loop on product availability and lead time
- Best Practices – Statewide workforce programs
- Best Practices - Manufacturing roundtable discussions
- Best practices – implementing a new CRM
Proposals are due June 30. Email me at [email protected] if you would like to receive a proposal form.
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