Legislative Newsletter - April 2021
April 1, 2021
Policy Update
Following the completion of the second funnel deadline, both have begun chambers working on FY22 budget bills. Senate Republicans released their budget targets on March 24th. This week the House Appropriations and Senate Appropriations Committees considered several budget bills.
Recovery and Resiliency
The House and Senate each have a bill that would provide businesses with additional pandemic relief by excluding COVID-19 grants from individual and corporate income taxes. Any relief granted by the Iowa Economic Development Authority, Iowa Finance Authority, or Department of Agriculture issued to aid individuals or businesses economically impacted by the pandemic is included in the exemption. The bill also conforms Iowa and federal law regarding the treatment of forgiven paycheck protection loans, excluding the amount received from net income and allowing for certain deductions for businesses expenses paid using the funds. SSB 1198 and HSB 195 were both assigned to Ways and Means committees and remain eligible for consideration.
Talent
Legislators have filed several bills aimed toward addressing childcare needs across the state. Most of the bills filed provide grants, tax credits, and incentives to increase childcare providers and encourage businesses to offer childcare options. The House passed the following childcare bills earlier in session and survived the second funnel in the Senate.
- HF 370 - Creates an incentive for employers to provide child care for their employees by providing a tax credit up to $150,000.
- HF 302 - Creates an "off-ramp" from Child Care Assistance program so parents can continue to grow in their career without losing their child care assistance entirely, all at once.
- HF 301 - Creates a fund to provide child care workforce grants on a dollar for dollar matching basis from communities. These programs will help move child care providers up the pay scale and the education pathway.
- HF 606 - Creates additional tax incentives for employers to invest in an onsite daycare option for employees.
- HF 712 - Creates a child care incentive for developers to construct more childcare centers.
- HF 260 - Allows individuals providing child care in their homes to take care of 6 or fewer children, an increase from 5 or fewer.
The Senate passed HF 260 on sent the legislation to Governor Reynolds for consideration. The remaining eligible childcare bills are on the Senate debate calendar or in the Senate Ways and Means committee.
Economic Development
Another one of Governor Reynold's priorities is a housing omnibus bill to address housing needs across the state. SF 295 and HF 582 will increase workforce housing tax credits, establish a housing tax credit program, expand redevelopment tax credits, create disaster recovery housing assistance, support main street revitalization efforts, and support the state housing trust fund. ICA fully supports this effort as these bills address the backlog with workforce housing tax credits and extends the sunset for the Brownfield / Grayfield program. Both bills passed have passed through committees' in each chamber and have been referred to the Ways and Means committees.
A bill addressing port authorities was introduced this year. This bill helps delineate liability and creates flexibility to jointly fund projects with no additional taxing authority. Doing this helps to expand Iowa Code Chapter 28J beyond traditional port authority uses for commerce by allowing utilization for commerce, quality of life, and economic development projects. HF 812 was referred to the Ways and Means committee and was approved by the subcommittee in March.
Business Climate
HF 763 would provide short term relief for resident physician's medical liability insurance premiums by reimbursing the cost of premiums attributed to employed resident physicians of certain family practices and nonprofit organizations. There continue to be ongoing negotiations on the best solution to lower the high cost of premiums that are resulting in medical residency programs being shut down. Additionally, HF 592 and SF 557 would cap noneconomic damages in medical malpractice cases. Both policy proposals survived the second funnel.
Infrastructure
One of Governor Reynold's priorities for the 2021 session is expanding broadband to meet the needs of Iowans with a commitment of $450 million of investment over three years. HF 796 passed both the House and the Senate and has been sent to the Governor for signature. The House and Senate will need to reach an agreement on the program's appropriation by the end of session.
FY2022 Budget Proposals
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Administration and Regulation
House File 867
General Fund Total: $150,896,943
Other Funds Total: $58,360,338
Senate File 594
General Fund Total: $49,639,168
Other Funds Total: $58,435,338
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Infrastructure
House File 862
Total: $121,901,123
Senate File 600
Total: $106,852,633
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Agriculture and Natural Resources
House File 860
General Fund Total: $54,808,995
Other Funds Total: $92,834,867
Senate File 598
General Fund Total: $42,671,477
Other Funds Total: $92,834,867
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Judicial Branch
House File 864
Total: $193,553,894
Senate File 597
Total: $190,912,527
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| Economic Development
House File 871
General Fund Total: $49,734,532
Other Funds Total: $28,066,084
Senate File 595
General Fund Total: $46,187,032
Other Funds Total: $28,066,084
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Justice Systems
House File 861
General Fund Total: $619,566,038
Other Funds Total: $18,999,319
Senate File 599
General Fund Total: $595,555,384
Other Funds Total: $18,499,319
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| Education
House File 868
General Fund Total: $970,357,588
Other Funds Total: $40,300,000
Senate File 596
General Fund Total: $976,760,573
Other Funds Total: $40,300,000
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Transportation
House File 863
Total: $397,763,627
Senate File 592
Total: $397,763,627
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| Health and Human Services
House File LSB 1004YA
General Fund Total: $2,047,793,079
Other Funds Total: $424,540,269
Senate File 606
General Fund Total: $2,025,494,351
Other Funds Total: $424,540,269
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Member Spotlight: Ames Chamber of Commerce
Ames will soon be home to a new pedestrian bridge that will span University Boulevard, the road east of Jack Trice Stadium.
This $10 million project will connect Gate 2 on the east side of the stadium to new parking lots east of University Boulevard. The bridge will span about a quarter-mile and provide a safer path for pedestrians to cross University Boulevard on Cyclone football game days. There is anticipation around the project and the energy it will give the Iowa State University Athletics Department as they are working through major large-scale renovations on the north end of Jack Trice Stadium. In February, the Board of Regents'; Property and Facilities Committee advanced the project meaning the next step will be final approval from the full Board of Regents before construction can begin.
More information and project updates can be found here.
Member News and Upcoming Events
April 23rd: Council Bluffs - Legislative Coffee
April 23rd: Quad Cities - Legislative Event: Highlighting the Future of Transportation in the Quad Cities
April 27th: Des Moines - Iowa Chamber Alliance Pizza Day at the Capitol
April 27th: Iowa City - Congressional Zoom-In: Senator Grassley
April 28th: Iowa City - Congressional Zoom-In: Senator Ernst
April 29th: Iowa City - Congressional Zoom-In: Representative Miller-Meeks
April 30th: Fort Dodge - Eggs and Issues
May 12th: Sioux City - Zoom Call with U.S. Congresswomen Cindy Axne