Week 4 Legislative Update

February 6, 2023


The pace quickened during the fourth week of session with committee activity increasing, sending several bills to floor debate in both the House and Senate.

Gov. Reynolds introduced a proposal to consolidate state government Wednesday. Senate Study Bill 1123 and House Study Bill 126, call for the realignment of all state cabinet level departments. The proposal is aimed at saving taxpayer dollars, increasing efficiency within the combined state agencies, and improving the overall operations, performance, and outcomes among state agencies.  Both the House and Senate versions have been assigned to their respective State Government Committees, but no subcommittee meetings have been scheduled as of Friday February 3rd.

Last week, Governor Reynolds and the Department of Management announced the release of an Invitation to Qualify for communities in need of future broadband investments.

“This is a first of its kind program and it relies directly on Iowa communities to inform the state where opportunities exist to expand broadband access,” said Gov. Reynolds. “Empowering local communities will help lay the foundation for future success and access to broadband statewide.” 

Instructions for the ITQ are available here, including videos, guides, and templates to assist communities who wish to submit an application. Community representatives may also e-mail ociogrants@iowa.gov for assistance. To subscribe to email updates, go to https://ocio.iowa.gov/broadband and click the “Subscribe to Broadband Grant Updates” button at the top of the page. 

Priority Legislation

Health Care:

Gov. Reynolds omnibus health care bill House Study Bill 91, passed through a House Health and Human Services subcommittee meeting on Wednesday. The proposal includes the following divisions:

  • State Licensure for Rural Emergency Hospitals
  • $1 Million Appropriation to the Regional Centers of Excellence Grant Program
  • Noneconomic Damages Awards Cap Against Healthcare Providers
  • State-funded Family Medicine Obstetrics Fellowship Program
  • Self-Administered Hormonal Contraceptives
  • Public Policy Considerations Related to the Review and Approval of Insurance Benefits
  • Fatherhood Initiatives, More Options for Maternal Support Program
  • State Employee Paid Parental Leave Benefit
  • Property Tax Modifications for Licensed Child Care Centers and Facilities
  • Adoption Subsidy Program
  • All Iowa Opportunity Scholarship Program

Many of the divisions included in the omnibus bill have been introduced in standalone bills as well. 

Property Tax:

The Senate passed a bill Wednesday to fix an error that occurred in the administration of a property tax rollback calculation concerning multi-residential properties that would negatively impact local government budgets. A 2021 law was passed that affected property classifications, but the formula for calculating the appropriate rate for taxation was not updated. During debate Senators from both parties acknowledged that better communication is needed so that mistakes such as these do not occur again. Senate File 181 passed the Senate 49-0 and was sent over the House for consideration.

Tort Reform (Trucker Tort):

A tort reform bill concerning commercial trucking operations was introduced in both chambers this week.  The purpose of the bill is to address the shrinking market for umbrella insurance coverage available to commercial trucking companies by limiting the causes of action and cap noneconomic damages.  The bill provides that in the event of an accident, if the trucking company admits the truck driver was an employee and therefore the doctrine of respondeat superior applies, additional causes of action such as negligent hiring, training, or supervising would be dismissed.  The bill caps noneconomic damages awarded at $1 million in personal injury or wrongful death cases. House Study Bill 114, passed out of subcommittee and committee this week, while the Senate companion file, Senate Study Bill 1114 passed subcommittee. Those opposed to the bill argue that this would make the roads more dangerous, while supporters say it will provide family farmers and Iowa businesses with more predictability.

Other Bills of Interest

House File 42: Would allow cities to authorize entertainment areas and to impose an entertainment surcharge within the area. The bill passed out of subcommittee on Tuesday.

House File 47: This bill provides a tax exemption for the amount of wages received by a taxpayer for providing certain childcare services. The bill received unanimous approval in a subcommittee.

House Study Bill 63: Creates a new resident and new graduate tax credit available against income taxes for new residents in the past year who are employed full time. The bill passed subcommittee on Tuesday.

Senate File 108: Prohibits employees from knowingly hiring individuals not legally allowed to work in the U.S. by requiring employers utilize an e-verify system. The SF 108 passed out of the Senate Judiciary Committee.  

Next Week

The first funnel date is four weeks away and the two chambers will continue advancing legislative priorities through the committee process. Tax reform bill proposals will continue to be discussed, as well as the governor’s omnibus health care bill and government reorganization bill.

In the News

“Editorial: CR’s Mogo Continues into 2023” – Corridor Business Journal

Session Timeline

·         March 3rd first funnel

·         March 31st second funnel

·         April 28th last scheduled day of session