In Week 12, the Iowa Legislature passed through the second funnel and Rita Hart dropped her contest of the election results. The Governor has signed over three dozen bills.

The close of the twelfth week brought the close of the second legislative funnel.  This legislative milestone narrows the policy discussion for the remainder of session.  Going forward, only bills that have advanced through one chamber and through committee in the opposite chamber can be considered in addition to appropriations bills and ways and means bills.  Effectively, committee work on policy has come to completion for the legislative session.  Senate committees will continue to meet to consider Governor appointments, though that work is slated to be completed by the end of week 14 (April 15). 

Next week will bring a flurry of floor action, as the Senate will consider House bills and the House will consider Senate bills.  The 110th calendar day of session falls on April 30.  The legislature is not required to adjourn sine die by that date, but the per diem payments for legislators end on the 110th calendar day. 

Going forward, the emphasis will be on appropriations (and taxes).  We expect consideration of the tax proposals (Tax Bill SF576–accelerating the income tax triggers/phasing out the inheritance tax–and Property Tax Reform SF576) to be a significant portion of the shut-down conversation and final budget.  We have not yet seen budget bills released by either chamber, but the Senate has released an overall target of $7.99 billion ($110 million less than the Governor’s proposed budget).  In a typical year, work on the budget may take two to three weeks to complete, so the legislature is still on pace to finish session on time.  Last year, due to the delays imposed by the pandemic, the legislature passed one large omnibus budget bill during an eleven-day session in June rather than separate budget bills.

Two Governor priorities advanced this week.  Broadband Grants (HF848) passed the House 94-0 on Monday.  The bill will help the state achieve the goal of connecting all of Iowa to high-speed broadband although it merely provides the policy related to broadband service and the grant program, it does not allocate the funding for broadband. The House Ways and Means Committee approved the Governor’s Renewable Fuel bill (HSB185) on Thursday after amending the bill with a strike and replace amendment. The original bill restricted the sale of gasoline with an ethanol blend; the amended bill loosens those restrictions but includes a phase-out of non-ethanol fuels. The House and Senate now have two different versions of the Renewable Fuel proposal.

Bills that survived the second funnel:

Just this week, the following four bills advanced out of the Senate Education Committee, making them alive and eligible for further consideration this session.  These education bills continue to be a hot topic this session:

• Racism Training (HF802) — Establishes requirements for training on racism and sexism in schools and colleges and state and local government, including prohibiting teaching that Iowa is fundamentally racist or sexist.
• College Free Speech (HF744) — Requires the Regents and community colleges to develop policies for protecting 1st Amendment rights and free speech.
• Qualified Supplemental Appropriation (HF439) — Allocates state money (about $30 million) to K-12 schools to offset costs of COVID-19 in-person learning.  This funding is only available to those schools that complied with Governor Reynolds’ mandate that schools return to in-person learning. The number of in-person instruction days between August 10 and January 29 will be used to calculate supplemental appropriation.
• Charter Schools (HF813) — Establishes new provisions on charter schools, allowing the establishment of a charter school by founding groups under a school board, or under the State Board of Education.

Other bills that remain eligible for consideration:

• PPP Loans (SF364) — Exempt business PPP loans/federal jobless benefits from state taxation.
• Tax Bill (SF576) — Accelerates the income tax triggers and phases out inheritance tax.
• Property Tax Reform (SF587) — Revamps mental health funding and cuts property taxes.
• Tech Censorship (SF580/HF633) — Removes state incentives to big tech due to social media censorship.
• “Back the Blue” (SF534) — Enhanced police protections and penalties for certain crimes.
• Medical Malpractice/Trucking Accidents (SF537/HF772) — caps medical malpractice and trucking mishap awards at $1 million.
• Bottle Bill (SF470) — Revamps Iowa’s bottle redemption law and allows grocery stores to opt out.
• Number of Children at Daycare Centers (HF260)/Childcare Workforce Matching Grants (HF301/HF302) — Childcare bills that would expand access to and affordability of child care (GOP priority this session).

A number of the Governor’s proposals survived the legislative funnel:

• Affordable Housing (SSB1142/HF178) — Governor’s proposal to expand affordable housing.
• Broadband (SF390/HF848) — Governor’s plan to expand broadband grant program.
• Ethanol Expansion (SF481/HSB185) — Governor’s plan to expand ethanol.

Bills that died in the funnel:

• School Vouchers (SF159) — provides state-funded “student first” scholarships to private-school families.
• Compensation of Student Athletes (SF245) — authorizes student-athletes to profit from the use of their name, image, and likeness.
• Vaccine Requirement (SF555) — bars employers from requiring Covid-19 vaccinations.
• University Tenure (HF490/SF41) — ends faculty tenure at regent universities.
• Defunding the Police (SF479) — reduces state funds for cities/counties that “defund” the police.
• Discharge of a Sentence (HF818)/Felon Voting Rights amendment (HJR11) — defines when a sentence is discharged and voting rights can be restored/restores rights for eligible felons.
• Executive Order Override (HF815) — allows override of a presidential executive order.
• Mental Health Telehealth (HF294) — requires mental health insurance parity for telehealth services.
• Childcare Reimbursement Rates (HF292)/Dependent Care Tax Credit (HF230) —  expands access to and affordability of child care (GOP priority this session).

Cedar Rapids Gazette journalist Rod Boshart published a summary of bills that are dead and alive. Read his full list on the Gazette’s site.

Executive Branch

Governor Reynolds signed six bills on Friday, April 2, including HF756 Weapons Matters.  To date, the Governor has signed three dozen bills passed by the 89th General Assembly into law.  The Governor made the following statement upon the signing of HF756:

“Today I signed legislation that protects the 2nd Amendment rights of Iowa’s law-abiding citizens while still preventing the sale of firearms to criminals and other dangerous individuals. This law also takes greater steps to inform law enforcement about an individual’s mental illness helping ensure firearms don’t end up in the wrong hands. We will never be able to outlaw or prevent every single bad actor from getting a gun, but what we can do is ensure law-abiding citizens have full access to their constitutional rights while keeping Iowans safe.”

Federal

Rita Hart ended her contest to Iowa’s Second Congressional District election.  Rita Hart, a former State Senator, lost to U.S. Representative Miller-Meeks by six votes; Hart contended that 22 additional ballots should have been counted.  Miller-Meeks has been seated and representing the Second Congressional District of Iowa since January. 

Bill	Bill Title	Date Passed	Governor Signature	Effective
SF160	A bill for an act relating to temporary in-person and remote learning instruction and instructional time requirements for school districts and accredited nonpublic schools and including effective date provisions. (Formerly SSB1064)	1/28/2021	1/29/2021	1/29/2021
SF269	A bill for an act relating to public school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2021, modifying provisions relating to the regular program state cost per pupil, modifying provisions relating to the property tax replacement payment and the transportation equity payments, and including effective date provisions. (Formerly SSB1159)	2/17/2021	2/23/2021	2/23/2021
SF284	A bill for an act relating to financial and regulatory matters by making appropriations for the fiscal year beginning July 1, 2020 and including effective date provisions. (Formerly SSB1162)	2/18/2021	2/23/2021	2/23/2021
HF200	A bill for an act relating to the military code and duty performed by a member of the United States coast guard. (Formerly HSB43)	2/3/2021	3/8/2021	7/1/2021
HF231	A bill for an act relating to a special sentence for sexual abuse committed during a burglary. (Formerly HSB18)	2/17/2021	3/8/2021	7/1/2021
HF232	A bill for an act relating to the crime of disorderly conduct and making penalties applicable. (Formerly HSB29)	2/9/2021	3/8/2021	7/1/2021
HF235	A bill for an act relating to service charges on consumer credit transactions. (Formerly HSB69)	2/9/2021	3/8/2021	7/1/2021
HF283	A bill for an act creating the criminal offense of defrauding a drug or alcohol test and providing penalties. (Formerly HSB22)	2/17/2021	3/8/2021	7/1/2021
HF308	A bill for an act relating to eligibility requirements for students under the senior year plus program and including effective date and applicability provisions. (Formerly HSB110)	2/23/2021	3/8/2021	3/8/2021
HF386	A bill for an act striking certain reporting requirements related to nonprofit school organizations established by school districts. (Formerly HSB107)	2/17/2021	3/8/2021	7/1/2021
HF418	A bill for an act relating to property tax levies, exemptions, classifications, assessment limitations, and administration, and including effective date and applicability provisions. (Formerly HSB93)	2/23/2021	3/8/2021	1/1/2022
SF130	A bill for an act relating to a temporary exception to a limitation on compensation for a member of a board of directors of a school corporation and including effective date provisions. (Formerly SSB1041)	2/17/2021	3/8/2021	3/8/2021
SF173	A bill for an act relating to trusts, including requirements for certifications of trust and the general order of abatement. (Formerly SSB1012)	2/16/2021	3/8/2021	7/1/2021
SF231	A bill for an act regarding driving privileges of persons issued a special minor’s driver’s license and making penalties applicable. (Formerly SF79)	2/16/2021	3/8/2021	7/1/2021
SF239	A bill for an act relating to proper parties in causes of actions following the death of persons entitled or liable to such causes of actions and including applicability provisions. (Formerly SSB1009)	2/16/2021	3/8/2021	7/1/2021
SF240	A bill for an act relating to the creation, administration, and termination of custodial trusts. (Formerly SSB1016)	2/10/2021	3/8/2021	7/1/2021
SF285	A bill for an act relating to suspension of a student’s participation in the all Iowa opportunity scholarship program. (Formerly SSB1068)	2/17/2021	3/8/2021	7/1/2021
SF314	A bill for an act relating to approval of executive branch employee travel claims. (Formerly SSB1119)	2/23/2021	3/8/2021	7/1/2021
SF343	A bill for an act relating to authorized access to certain confidential records by employees of the department of corrections, a judicial district department of correctional services, and the board of parole. (Formerly SSB1102)	2/17/2021	3/8/2021	7/1/2021
SF413	A bill for an act relating to the conduct of elections, including absentee ballots and voter list maintenance activities, making penalties applicable, and including effective date and applicability provisions. (Formerly SSB1199)	2/24/2021	3/8/2021	3/8/2021 *Applicability date: 1/1/22
HF560	A bill for an act relating to financial assurance instruments and surety bonds required for collecting, processing, or transporting waste tires, and making penalties applicable. (Formerly HSB177)	3/10/2021	3/22/2021	7/1/2021
SF129	A bill for an act relating to specialty areas, service commitment area distance requirements, and practice-related requirements under the rural Iowa primary care loan repayment program. (Formerly SSB1042)	2/16/2021	3/22/2021	7/1/2021
SF232	A bill for an act relating to notice and reclamation requirements for abandoned vehicles taken into custody by a police authority or private entity. (Formerly SSB1025)	3/9/2021	3/22/2021	7/1/2021
SF235	A bill for an act relating to the denial and contest of probate claims. (Formerly SSB1037)	3/8/2021	3/22/2021	7/1/2021
SF261	A bill for an act authorizing the college student aid commission to organize a nonprofit corporation. (Formerly SSB1069)	3/8/2021	3/22/2021	7/1/2021
SF289	A bill for an act relating to the powers and duties of the boards of directors of area education agencies, school districts, and school corporations, and to the election of a director as school board president. (Formerly SSB1133)	3/9/2021	3/22/2021	7/1/2021
SF307	A bill for an act relating to the examination and transportation of dead bodies, including associated fees and costs. (Formerly SF106)	3/8/2021	3/22/2021	7/1/2021
SF353	A bill for an act relating to drainage and levee districts, by providing for notices to interested persons including landowners in the district, and for repairs that require a report by an engineer or soil and water conservation district conservationist. (Formerly SSB1180)	3/9/2021	3/22/2021	7/1/2021
SF482	A bill for an act regulating the application of pesticides, including by providing for the certification of applicators, and certain actions taken by the department of agriculture and land stewardship against private applicators, and providing penalties. (Formerly SSB1214)	3/10/2021	3/22/2021	7/1/2021
HF280	A bill for an act authorizing the department of transportation to renew certain valid commercial driver’s licenses without examination, including by electronic renewal, and including effective date provisions. (Formerly HSB99)	3/29/2021	4/2/2021	4/2/2021
HF382	A bill for an act authorizing the department of transportation to issue special permits allowing the transportation of loads of relief supplies that exceed statutory weight limits during periods of national emergency. (Formerly HSB100)	3/29/2021	4/2/2021	7/1/2021
HF389	A bill for an act relating to chauffeurs and exempting certain persons from the requirement to be licensed as a chauffeur. (Formerly HSB83)	3/22/2021	4/2/2021	7/1/2021
HF621	A bill for an act establishing which actions may be brought against firearm, firearm accessory, and ammunition manufacturers, distributors, importers, trade associations, sellers, or dealers. (Formerly HSB116)	3/22/2021	4/2/2021	7/1/2021
HF756	A bill for an act relating to the acquisition and possession of weapons and providing penalties. (Formerly HSB254)	3/22/2021	4/2/2021	7/1/2021
SF230	A bill for an act relating to wrecked or salvage motor vehicles. (Formerly SSB1028)	2/16/2021	4/2/2021	7/1/2021

The eleventh week brought a steady bustle around the Capitol as we head into the next important legislative deadline, the second and final funnel ends on Friday, April 2.  In order for bills to continue to be considered by the legislature, they must be passed by one chamber and advanced through committee in the opposite chamber.  Bills that have not had this success are effectively “dead” and cannot be considered for the remainder of the legislative session.

There are two exceptions:

1. Ways and Means bills are funnel-proof and are eligible for consideration the entirety of a legislative session.
2. Any language can reappear as an amendment to another bill or be included in an appropriations bill.  Meaning everything is fair game until sine die. Typically, the second funnel signals narrowing of the policy discussion and rings in the appropriations phase of the legislative session.

2021 Session Deadlines

Appropriations

The REC’s budget estimates for FY 2021 and FY 2022 were released Friday, March 19. The REC increased the estimate for FY 2021 (from the December estimate) by about $109 million, from $7.969 billion to $8.078 billion, about a 1.9% increase.

Within one week of receiving the REC budget estimates, on Wednesday, March 24, the Senate Republicans released their budget targets.  Budget targets provide an overview of overall estimated spending and a rough outline for how those monies will be spent among budget categories.  Their total budget for FY2022 is $7.999 billion ($195 million increase from FY2021) and represents about 94% of available revenue.  The proposed targets account for the elimination of the triggers in the 2018 tax bill, effective January 1, 2023, and the phasing out of the inheritance tax (both are included in SF576), and significant property tax relief (as provided in SSB1253).

Tax relief provisions in Senate Republican budget targets include eliminating the:

• Revenue triggers in the 2018 tax cut
• Mental health levy on property taxes
• Inheritance tax

Overview of FY 2022 increases in Senate Republican budget targets:

• Education funding increases over $80 million including:
  • $55.3 million for K-12 education
  • $25 million for higher education including additional dollars for Last Dollar Scholarships
• Healthcare funding increases of $98.1 million including:
  • $15 million for provider increases for nursing homes and home and community-based service providers
  • $60 million for mental health services. Over the next two years, the state will provide over $125 million for mental health services
• Public safety funding increases of $13 million including:
  • $5 million for the Department of Public Safety
  • Just over $4 million for the Department of Corrections

Note: One-time expenditures for broadband are not included in the Senate Republican budget targets.

Significant Floor Action

On Monday, March 22, the Senate approved the Weapons Omnibus bill (HF756) on a party line vote.  This bill was approved by the House last week and the Senate substituted their version of the bill for the amended House bill.  The bill strikes permit requirements to acquire or carry a handgun and repeals current background check measures that are required for all gun sales (specifically private gun sales that are made outside of a federally licensed dealer).  After it is enrolled by House and Senate leadership, the bill goes to the Governor for her consideration.

Wednesday, March 24 was a late night in the House, with representatives approving 10 bills and one resolution before adjourning just before 1:00 a.m. Thursday.

The House approved HJR11 Felony Voting Amendment unanimously and HF818 Discharge of a Sentence on a 67-28 vote.  In the 2020 session, the House approved a constitutional amendment to restore voting rights to felons; the Senate Judiciary approved the proposed amendment, but it did not reach the Senate floor.  In the 2020 interim, Governor Reynolds signed an Executive Order restoring voting rights of felons who have completed their sentence.  The Governor has since called upon the legislature to take legislative action to approve a constitutional amendment that will confer these rights constitutionally.

The Discharge of a Sentence bill (HF818) defines when a sentence is discharged and voting rights can be restored; this bill was approved by both chambers and signed by the Governor in 2020, but the measure included a repeal of the provision if the felon voting amendment was not approved (which it was not).  This bill contains the same language from 2020, requiring restitution to victims be paid before a felon can regain the right to vote.

The House debated HF813 Charter Schools for around six hours on Wednesday into Thursday before the bill passed on a 55-40 vote.  The bill had to be referred back to the Appropriations Committee during the debate for the committee to consider a bill that creates a standing appropriation for charter schools.  When the House returned, the majority voted to adopt a time certain, which ended the debate on many of the proposed amendments.  The bill establishes new provisions on charter schools, allowing the establishment of a charter school by founding groups under a school board, or under the State Board of Education.  Additionally, the bill:

• Requires that performance evaluation measures, compensation, and dispute resolution methods for staff and the educational provider, if the group wants to use an educational provider, be in the plan put before the Board of Education.
• Requires the majority of a founding group to live in the geographic area.
• Includes funding provisions on payments from school districts of state funds for students who enroll in the charter school and payments by the state for students previously home-schooled.
• Makes a standing appropriation to cover the state costs.
• Requires charter schools to be renewed every five years.

Republicans believe the bill encourages innovative methods to give schools the flexibility to improve student learning.  Democrats believe the bill lacks oversight to ensure charter schools are high performing and treating students and staff properly and that the state appropriation is a blank check that does not give the state oversight.

Executive Branch Update

On Tuesday, March 23, a Department of Corrections officer and a nurse were killed by an inmate attack at the Anamosa State Penitentiary. Governor Reynolds released the following statement:

Today, our state grieves the loss of two public servants who were attacked while on duty at the Anamosa State Penitentiary,” said Governor Reynolds. “My prayers and deepest condolences are with their families, friends, and colleagues as they begin to cope with this senseless tragedy. We will exhaust every available resource to deliver justice to those who committed this act and bring a sense of closure and peace to the victims’ families.

Redistricting

Last week, the US Census Bureau announced that they may be able to release updated 2020 census data in August in an old format; this may provide a solution to those states that need census data for redistricting in order to meet constitutional deadlines.  Iowa’s constitutional deadlines require the Legislature to finalize a redistricting map by September 1 and for that map to become law by September 15.  If this timeline cannot be met by the Legislature, it is up to the Iowa Supreme Court to draw a map by December 31.

The Iowa Temporary Redistricting Advisory Commission was scheduled to meet on Monday, March 22, via video conference but the meeting was cancelled.

Federal

American Rescue Plan

According to the LSA, Iowa will receive about $4.451 billion from the American Rescue Plan Act with individuals receiving another $3.77 billion in direct stimulus payments. The state is expected to receive:

• $1.379 billion from the State Fiscal Recovery Fund
• Local governments are expected to receive about $1.162 billion ($612 million to counties, $335 million to metropolitan areas, and $216 million to other local governments)
• The state will receive another $152 million for capital projects
• The remainder of the aid will go to state agencies for assistance in various areas, including:
  • $774.5 million for K-12 schools
  • $365.5 million for colleges
  • $385 million for programs for childcare, pre-school, and toddlers
  • $55 million in LIHEAP funds

State and local governments have broad authority to spend the funds as needed but cannot use the money to reduce taxes, either directly or indirectly, or to make pension payments.

2nd Congressional District

The fate of Iowa’s 2^nd Congressional District remains up in the air.  Attorneys for Rita Hart and U.S. Rep. Mariannette Miller-Meeks, R-Iowa, submitted initial legal briefs to a House panel on Monday.  The House Committee on Administration voted earlier this month along party lines to consider the case and postpone a decision on Miller-Meeks’ motion to dismiss Hart’s election challenge.  Republicans at the State and Federal level have engaged publicly, casting this contest as a partisan power grab.  There is no set deadline for the House to resolve Hart’s election contest.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

With two weeks until the second funnel, week 10 was dominated by extended floor debates on big-ticket Republican priorities.

• Rental Vouchers (SF252) prohibits local ordinances that require landlords to accept federal vouchers. Republicans believe the bill is necessary to protect landlords who do not wish to deal with extra paperwork and requirements involved with federal housing vouchers. Democrats believe these ordinances are an important tool in making sure people have access to affordable housing.  The House amended the Senate version of the bill and messaged it back to the Senate; the Senate concurred, and the bill has been messaged to the Governor.  Many believe this bill is afoul to the Governor’s previous proposal on Affordable Housing (HF582/SF295) which deals with the current shortage of affordable homes and are interested to see how the Governor will reconcile the two issues.
• On Tuesday, March 16, the House passed Racism Training (HF802) 59-38.  The bill establishes rules related to training on racism and sexism in schools and colleges, including prohibiting teaching that Iowa is fundamentally racist or sexist.  Specifically, the bill prohibits teaching divisive concepts and race or sex scapegoating.  A floor amendment opened this beyond schools and colleges and makes the bill applicable to state and local governments as well.  The floor manager of the bill said that teaching that the United States and Iowa are inherently racist is simplistic and ignores the efforts of many Americans and Iowans to fight racism and make the country better. Republicans believe the bill allows for balanced diversity and racial sensitivity training and prevents any training that scapegoats the people of a particular race as inherently racist.  Democrats expressed concern that the bill will chill education on important issues in diversity training in a planned way.
• The Senate passed Banning Social Media Censorship (SF580) on a 30-17 party line vote on Wednesday, March 17.  The lead sponsor of the bill has been persistent in his efforts to fight what he believes is the monopoly power of large social media and internet companies.  Republicans believe these companies have the power to affect elections and suppress political views, that the big tech companies have more powers than the monopolies of the 19th century, and the federal government should review the necessity to break these monopolies.  Democrats have expressed concern over how the bill will impact economic growth in the state and that even the introduction of this bill hurts Iowa’s efforts to attract new businesses.  The bill prohibits companies from intentionally interfering with the right of Iowans to interact on various internet platforms, prohibits companies found to be in violation from receiving economic incentives, and requires that the AG take court action to enforce the bill.
• Also on Wednesday, the House passed Weapons Omnibus (HF756) on a 60-37 vote (with one Democrat voting with the majority).  Republicans have continually touted the necessity for “permitless carry,” that Iowans should not need to get permission from the state to exercise their constitutional freedoms.  The floor manager of the bill believes that the increased penalties in HF756 for unauthorized gun sales will lead to more background checks, though the bill strikes the existing state background check provisions.  A lengthy floor debate led to extensive discussion about background checks and permits.  Democrats expressed concern that this bill will repeal background checks on all gun sales (specifically private gun sales that are made outside of a federally licensed dealer) and that permits protect law enforcement officers and are a necessary public safety tool for officers to determine if a person with a gun is allowed to possess one.
• There was one significant bill that passed with surprising bipartisan support: Inheritance Tax/Tax Triggers (SF576). It is a bill that will remove the “tax triggers” that were put into place when the 2018 tax package was negotiated and signed into law. Those “tax triggers” were guardrails established to ensure that Iowa’s revenues hit a certain number before tax cuts become effective in 2023. In addition to striking the triggers, the bill also phases out Iowa’s Inheritance Tax over four years. The bill passed unanimously (46-0) in the Senate on Wednesday afternoon. The Governor had previously proposed removing the tax triggers and making a number of other tax changes in HSB174 Income Tax Changes (the bill has not moved in the House, but is funnel-proof as it is a Ways and Means bill) calling the triggers unnecessary and stating that their removal will allow the state to be more economically competitive if the changes are made (see more about the tax triggers in the REC section below).

Revenue Estimating Conference

The Revenue Estimating Conference (REC) met Friday, March 19, and released the budget estimates for FY 2021 and FY 2022.  The REC increased the estimate for FY 2021 (from the December estimate) by about $109 million, from $7.969 billion to $8.078 billion (about a 1.9% increase).  They also significantly increased the FY 2022 estimate (from the December estimate) by about $120 million, from $8.265 billion to $8,385 billion (about a 3.8% increase).

Governor Reynolds issued a statement on the REC projection and the tax triggers that the legislature is considering removing in SF574:

Today’s forecast shows that Iowa’s economy is strong, and we can make it even stronger by ensuring that our historic 2018 tax cuts are fully implemented, giving Iowans certainty that they’ll see more in their paychecks. We can easily do that by removing the unnecessary triggers, which are no longer needed and only stand in the way of our future growth…I was pleased that the Senate voted unanimously to remove these triggers and look forward to signing the final bill making these significant tax cuts a reality for Iowans.

Executive

Last Wednesday, Governor Reynolds signed Executive Order 8 launching a new Child Care Task Force to develop a comprehensive strategy to address the childcare shortage and barrier to work in Iowa. The governor also announced awardees of two childcare grant programs totaling $13,053,372 and contributing to the creation of more than 4,000 new childcare slots across Iowa.

House Republicans have made improving access to childcare a priority and have already passed eight childcare bills, messaging them to the Senate.

• Child Tax Credits (HF230)
• Childcare Numbers (HF260)
• Childcare Reimbursement Rates (HF292)
• Childcare Matching Grants (HF301)
• Childcare Phase Out (HF302)
• Business Childcare (HF370)
• On-Site Childcare (HF606)
• Workforce Childcare Credits (HF712)

These bills are currently moving through the Senate with HF230 out of committee (funnel-proof).

Other

Concerns over the US Census Bureau and the delay in the release of census data continue.  At least two states, Ohio and Alabama, have engaged in lawsuits.  Iowa faces similar deadline problems, with constitutional requirements for finalizing redistricting mid-September prior to the anticipated release date of census data at the end of September.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

With funnel week behind us, both chambers focused their efforts on floor work to move bills past the second funnel (April 2).  Bills that survived this first funnel must now be passed out of the originating chamber and advanced through committee in the opposite chamber in order to continue to be eligible for consideration for the remainder of this legislative session.

The chambers debated just under 100 bills this week, messaging 89 bills to the opposite chamber (62 to the Senate and 27 to the House) and 8 bills to the Governor.  While the majority of the debate calendars in both chambers were filled with non-contentious bills, a few bills led to lengthy floor debate this week.

The Senate considered a few policing bills this week, a response to the events and movement that unfolded last summer.  Earlier this session, Governor Reynolds introduced a criminal justice reform bill that included provisions on both “Back the Blue” and racial profiling. Senate Republicans included some of her proposals in the bills considered this week but did not include any provisions related to racial profiling. Under consideration:

• Qualified Police Immunity SF476 (as amended):
  • Division I:  Establishes that all law enforcement officers have qualified immunity except when a constitutional right being violated is clearly established.
  • Division II:  Establishes a law enforcement officer bill of rights; includes notice requirements, rights to counsel, requirements for information on complaints, and other matters.
  • Division III:  Includes provisions on rejecting fraudulent financing statements under the UCC.
  • Division IV:  Establishes protected information for officers and protections for peer support communications.
• Reducing Police Funding (SF479)
  • Requires local governments to justify any cuts to law enforcement funding or face cuts in state funding.
  • The Senate passed the bill on a 41-7 vote on Wednesday with seven Democrats voting against the bill.
• Police/Rioting Proposals (SF534)
  • Increases penalties for existing crimes and enacts new crimes related to unlawful assembly.
  • Gives a person driving a car immunity against claims for injuries from a person who is participating in a demonstration or disorderly conduct and is blocking traffic.
  • The Senate approved the bill on a 31-17 party-line vote.

A different bill related to municipal law enforcement, the “411 Disability Bill” (HF797) was considered and passed in the House on Thursday.  A version of the 411 bill was passed by the House last year and failed to move in the Senate due to the pandemic-shortened session.  The manager of the bill Rep. Kaufmann has been persistent in his efforts to pass this bill, stating that this is an issue of equity and ensuring that local fire and police members of the 411 system are treated fairly.

Executive Branch

On Friday, March 4, Governor Reynolds signed a new Disaster Emergency proclamation to extend regulatory relief until April 4.  Though the Governor has relaxed a number of remedial measures (e.g. lifting the limited mask requirement) she continues to urge Iowans to take reasonable health precautions due to COVID.

Governor signed seventeen bills into law on Monday, including SF413 the Election Reform bill.  Governor Reynolds released this statement on the signing of SF413:

It’s our duty and responsibility to protect the integrity of every election. This legislation strengthens uniformity by providing Iowa’s election officials with consistent parameters for Election Day, absentee voting, database maintenance, as well as a clear appeals process for local county auditors. All of these additional steps promote more transparency and accountability, giving Iowans even greater confidence to cast their ballot.

Bills Signed

Bill	Description	Date Signed by Governor Reynolds
SF 160	Act relating to temporary in-person and remote teaming instruction and instructional time requirements for school districts and accredited nonpublic schools and including effective date provisions.	1/29/2021
SF 269	Act relating to public school funding by establishing the state percent of growth and the categorical state percent of growth for the budget year beginning July 1, 2021.	2/23/2021
SF 284	Act relating to financial and regulatory matters by making supplemental appropriations for the fiscal year beginning July 1, 2020.	2/23/2021
SF 130	An act relating to a temporary exception to a limitation compensation for a member of a board of directors of a school corporation and including effective date provisions.	3/8/2021
SF 173	An act relating to trusts, including requirements for certifications of trust and the general order of abatement.	3/8/2021
SF 231	An act regarding driving privileges of persons issued a special minor’s driver’s license and making penalties applicable.	3/8/2021
SF 239	An act relating to proper parties in causes of actions following the death of persons entitled or liable to such causes of actions and including applicability provisions.	3/8/2021
SF 240	An act relating to the creation, administration, and termination of custodial trusts.	3/8/2021
SF 285	An act relating to suspension of a student’s participation in the All Iowa Opportunity Scholarship program.	3/8/2021
SF 314	An act relating to approval of executive branch employee travel claims.	3/8/2021
SF 343	An act relating to authorized access to certain confidential records by employees of the Department of Corrections, a judicial district Department of Correctional Services, and the Board of Parole.	3/8/2021
SF 413	An act relating to the conduct of elections, including absentee ballots and voter list maintenance activities, making penalties applicative, including effective date and applicability provisions.	3/8/2021
HF 200	Act relating to the military code and duty performed by a member of the United States Coast Guard.	3/8/2021
HF 231	Act relating to a special sentence for sexual abuse committed during a burglary.	3/8/2021
HF 232	An act relating to the crime of disorderly conduct and making penalties applicable.	3/8/2021
HF 235	An act relating to service charges on consumer credit transactions.	3/8/2021
HF 283	An act creating the criminal offense of defrauding a drug or alcohol test and providing penalties.	3/8/2021
HF 308	An act relating to eligibility requirements for students under the senior year plus program and including effective date and applicability provisions.	3/8/2021
HF 386	An act striking certain reporting requirements related to non-profit school organizations established by school districts.	3/8/2021
HF 418	An act relating to property tax levies, exemptions, classifications, assessment limitations, and administration, and including effective date and applicability provisions.	3/8/2021

Federal Update

The American Rescue Plan (ARP) was passed by Congress and signed by President Biden on March 11. Our colleagues at Dentons in Washington D.C. have this summary of the ARP:

Senate Democrats passed the ARP bill after a more than 24-hour voting session that included the longest single vote in the chamber’s history. The plan includes a wave of new spending, an extension of jobless benefits, another round of direct household payments, money for state and local governments and an expansion of vaccinations and virus-testing programs including a national vaccine distribution program for all residents regardless of immigration status.

What’s in the bill?

The legislation will send a third round of stimulus payments — this time at $1,400 per eligible individual. Singles earning up to $75,000 will get the full amount, with the payments phasing out completely by $80,000 in income. Couples making up to $150,000 will get $2,800 — $1,400 per person — with the payments declining at higher incomes and zeroing out altogether at $160,000. Children and adult dependents in those households are also eligible for $1,400 payments.

It expands tax credits for low- and middle-income families and makes them refundable for 2021. It also expands the child tax credit to $3,000 from $2,000 for each child aged 6-17. Children 5 and younger would be eligible for $3,600. The tax credits will be sent to households monthly starting in July.  The bill also includes $25 billion for a stabilization fund to help open child-care centers and $15 billion in grants to support essential workers in meeting childcare costs.

It extends the weekly federal unemployment benefit of $300 a week through September 6, it also includes tax relief on the first $10,200 in unemployment payments for workers in households earning up to $150,000 a year. A late addition to the legislation covers 100% of the costs of continuing health insurance through September for laid-off workers.

Our colleague, Susan Freed, prepared an overview of the bill’s provisions relating to COBRA premium subsidies and what it means for Iowa employers.

The legislation also includes:

• $160 billion for vaccine and testing programs
• $360 billion in aid for state, local and territorial governments, including $10 billion that Senate Majority Leader Chuck Schumer added in the final moments before the bill passed
• Other last-minute additions of $10 billion for critical infrastructure, including broadband internet, and $8.5 billion for rural hospitals
• $170 billion to help schools open
• $14 billion for eligible airlines and $1 billion for contractors to the air carriers to extend a payroll support program set to run out on March 31
• $25 billion to help restaurants struggling from pandemic lockdowns and closures and $1.25 billion for venue operators
• $15 billion for targeted Economic Injury Disaster Loans and an additional $7.25 billion for forgivable loans in the Paycheck Protection Program

What’s not in the bill?

$15.00 minimum wage

American Rescue Plan Summaries

Senate Democrats have prepared summaries of many of the bill’s key provisions.

• ARP Title-By-Title Summary
• ARP Summary of Modifications to the House Bill
• State and Local Fiscal Relief
• Enhanced Federal Unemployment Insurance
• Expanded Earned Income Tax Credit and Child Tax Credit
• Additional Round of Direct Payments
• Education Relief Funding
• Emergency Rental Assistance
• FEMA Disaster Relief Fund Estimates
• Child Care and CCDBG
• Head Start
• Transit Relief for Urbanized Areas
• Rural Transit
• Paratransit

The U.S. House Administration Committee voted (6-3) to postpone a decision on a motion from U.S. Representative Miller-Meeks to dismiss a challenge by Rita Hart on the election results for the 2nd Congressional District of Iowa.  Hart continues to contest the election, stating that legally-cast votes were not counted; Republicans believe the House should not hear the contest because Hart did not exhaust all of her remedies under state law before taking action in Congress.

Other

On Tuesday, the League of United Latin American Citizens (LULAC) filed suit against Iowa Secretary of State Pate and Iowa Attorney General Miller challenging SF 413. The LULAC declared that much of the bill is unconstitutional and requested injunctive relief.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

As this was the first funnel week of the 2021 legislative session, both chambers focused their efforts on committee work.  Despite already passing a massive number of bills through committee in the first seven weeks of the legislative session, the legislature moved an impressive 149 bills out of committee this week.  Those bills are now considered “funnel proof” and are eligible for further consideration this legislative session.  Bills that did not make it out of a committee in either the House or the Senate are effectively “dead” and cannot be considered for the remainder of the legislative session.  Two caveats:  1. Ways and Means bills are funnel proof and are eligible for consideration the entirety of a legislative session. 2. Any language can reappear as an amendment to another bill or be included in an appropriations bill.  Meaning–everything is fair game until sine die.

Paycheck Protection Deductions Bill

The House debated one bill this week on Wednesday due to the time-sensitive nature of the bill, SF364 the Paycheck Protection Deductions bill.  The bill was passed by the Senate and the House added language that provides $115 million in tax relief related to the COVID pandemic:

• $90 million of the $115 million will be offset by a transfer to the General Fund from the Taxpayer Trust Fund
• $25 million will come out of the ending balance
• Transfers another $12.8 million from the Taxpayer Trust Fund to cover the impacts on FY2022 for those costs
• The pandemic unemployment exemption in the bill has a $100 million impact
• The remaining reductions are from COVID grants and the Federal Paycheck Protection program

Dead or Alive?

Cedar Rapids Gazette journalist Rod Boshart published a summary of bills that are dead and alive. Read his full list on the Gazette’s site. Included below are bills most interesting to Iowa businesses.

Bills that are still alive and eligible for consideration in 2021

• Increase state K-12 education funding by $36.5 million next fiscal year (SF269)
• K-12 schools must offer in-person classroom instruction option (SF160)
• Provide state-funded “students first” scholarships for children attending private schools (SF159)
• Remove permit requirement, enacting “constitutional carry” gun laws (HSB254/SF535)
• Prohibit contracts with or incentives to tech companies that censor online content (SF402/HF633)
• Amend Iowa Constitution to say there is no right to abortion (SJR2)
• Eliminate state funds for municipalities that “defund” police (SF479)
• Bar employers from requiring employees to be vaccinated against COVID-19 (SF193)
• Expand broadband grant program (SF390)
• Expand affordable housing options (SSB1142/HF178)
• Amend Iowa Constitution with gun rights statement (SJR7)
• Change election laws relating to early and absentee voting (SF413)

Bills that are “dead”

• Reinstate the death penalty for certain crimes against minors (kidnapping, sexual abuse offenses, or murder) (SSB1004)
• Eliminate Iowa income tax and raise state sales tax to 11 percent (SF149)
• Establish a COVID-19 oversight committee to review government expenditures (HF689)
• Provide “religious freedom” protections for businesses (SF436)
• Allow parents of elementary students to opt out of gender identity instruction (SF167)
• Implement 1-year hold on certain Iowa Supreme Court decisions to allow legislative oversight (HF109)
• Ban law enforcement from racial profiling (HF130/HF356)
• Prohibit public colleges/universities from mandating face masks and eliminate Iowa tuition grant funds for private schools that do mandate (HSB162)
• Raise state cigarette tax by 50 cents to $1.86 per pack (HF733)
• Lower some penalties associated with marijuana possession (HF163)
• Require nursing homes to allow visitors even in health emergency (HF571)
• Remove gender identity as protected class under Iowa Civil Rights Act (HF272)
• Require transgender individuals to use the bathroom corresponding to the sex on their birth certificate in elementary and secondary schools (SF224)

Executive Update

Governor Reynolds announced she is joining with 22 other governors to oppose the new standard in President Biden’s stimulus bill for how federal funds would be allocated to states.

Governor Reynolds received her COVID vaccination during her news conference on Wednesday.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

As of the end of week six, the legislature had passed more than 1,500 bills out of committee.  Week seven saw even more committee action, and legislators continue to advance bills in an effort to meet the upcoming funnel deadline, Friday, March 5. Bills that do not advance through one committee by the first funnel are no longer eligible for consideration this session.  Floor action is likely to be limited next week with a heavy focus on moving last-minute bills out through the committee process. 

Election Reform

The focus of this week in both chambers was advancing the election reform bills.  Identical bills (SF413 and HF590) were introduced last week and moved very quickly through the House and Senate committee process to ensure they were both ready for floor action this week. 

The House held a public hearing on HF590 on Monday, February 22.  Opponents of the bill said the changes are not needed to protect voting and many referenced the successful 2020 election, in which Iowa saw record turnout.  Many concerns were expressed about reductions in early voting periods and that the changes to the absentee ballot procedures will make it more difficult for people to cast absentee ballots. 

The floor managers of the bill have stated at the hearing that the state needs uniform procedures to encourage confidence in Iowa voting and that the restrictions in the bill are not overly burdensome and will protect voting in Iowa.

The Senate passed SF413 on a 30-16 party-line vote on Tuesday, February 23, after several hours of debate, and sent the bill over to the House.  The House took up SF413 (substituting HF590 for SF413) and also passed the bill on a 57-37 party-line vote after a lengthy five-hour debate.  The bill was immediately messaged to the Governor and awaits her signature.

Main provisions of the bill include:

• Prohibiting county auditors from sending applications for absentee ballots without receiving a request first
• Prohibiting county auditors from sending applications with pre-filled information
• Reducing the period to request an absentee ballot from 120 days to 70 days
• Reducing the period for early in-person voting and absentee voting from 29 days to 18 days
• Limiting counties to one drop off ballot box site
• Limiting who can drop off a completed absentee ballot for a voter
• Penalties for election misconduct (including felony charges for auditors)

Executive Branch

As of this week, the Governor has signed three bills into law:

Bill	Details	Date Signed
SF 160	Supplemental State Aid (SSA) bill that sets the SSA at 2.4% (increase state aid to schools by $36.5 million).	1/29/2021
SF 269	Makes a supplemental appropriation in FY 2021 of $21 million to the CIO to pay for Workday Central, the personnel, accounting, and budgeting system.	2/23/2021
SF 284	Makes appropriations for the fiscal year and includes effective date provisions.	2/23/2021

Other Updates

Former Iowa Governor Tom Vilsack was confirmed to a second term as the Secretary of the USDA on a 92-7 vote.  Vilsack previously served as the Secretary of the USDA during the Obama administration.

COVID Update

According to the state’s COVID-19 vaccine dashboard, 626,947 doses have been administered to Iowa residents (which represents about 20% of Iowans) and 155,382 individuals have completed the COVID-19 vaccine series.  The Governor announced on Thursday, February 25, that they anticipate moving into the next phase of the COVID-19 vaccine rollout by early April. 

The state has added a new tool to the COVID-19 website to help make COVID-19 vaccine provider information more accessible to Iowans.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

The highlight of this week in Iowa and around the country remains Mother Nature and the unprecedented weather cycle causing major disruptions in the power grid. Here in Iowa, temperatures spent much of the week below zero, which caused a slow start to the week at the legislature. Pace and temperatures picked up progressively throughout the week. At least a dozen bills were sent to the Governor this week for her review and signature.

The next legislative deadline is Friday, March 5 – the first funnel.  With only two weeks left, the urgency to get bills through at least one committee continues to build. Bills that do not advance through one committee by the first funnel are no longer eligible for consideration this session and are otherwise “dead.”

Weather-Related Governor Proclamation

On Monday, February 15, the Governor signed a proclamation to ease rules for hauling diesel fuel, propane, natural gas, and other fuels used in agriculture and commercial heating.  The proclamation temporarily suspends limits on hours of service and oversize and overweight loads of fuel.  The proclamation was issued due to the demand created by hazardous cold in the Midwest and across the country.

Legislative Update

Supplmental State Aid (SSA)

Late last week, the House approved the SSA bill (SF269) sent over by the Senate last week but amended the bill to set the SSA at 2.4% (the original Senate version set the SSA at 2.2%).   On Wednesday, February 17, the Senate concurred with the House amendment setting the SSA at 2.4%.  This amendment will increase state aid to schools by about $36.5 million.

Broadband Grants

The Senate Commerce Committee approved the Governor’s Broadband Grant bill (SSB1089), which would assist in the expansion of broadband access across Iowa.  Governor Reynolds has proposed $450 million over three years to pay for the expansion.

Rental Vouchers

On Wednesday, February 17, the Senate also approved Rental Vouchers (SF252) on a party-line vote.  The bill prohibits cities and counties from adopting ordinances that prohibit landlords from refusing to accept federal housing vouchers.  This bill comes amid conversations about how to increase affordable housing, including the Governor’s Affordable Housing proposal.

Election Reform

Identical versions of election reform (SF 413 and HF 519) moved very quickly through Senate and House subcommittees and committees ensuring that both are ready for floor action next week and plans to have a bill to the Governor for her signature by the end of the week.  Republican chairs of both the Senate and House State Government Committees are coordinating closely to ensure that the bill will keep moving through the legislative process.  

According to proponents, this legislation is necessary to protect the electoral process from fraud and deceptive practices that happened in 2020.  Opponents question the need for such legislation and argue that it will result in voter suppression.  A public hearing is scheduled for Monday, February 22, evening to give the public another opportunity to weigh in.

Redistricting

The U.S. Census Bureau has announced there will be a delay in the release of census information to the states due to COVID-19.  Most recently, the Bureau announced that it expects to deliver redistricting data to all states and the public by September 30, 2021.  The redistricting process in Iowa is driven by a constitutional timeline that requires approval of a redistricting map by September 15.  Legislators in Iowa were already anticipating a special session to approve a redistricting map.  With the recently announced delays, legislative leadership will now have to consider how to best move forward to reconcile the situation. 

Despite delays from the Bureau, lawmakers are starting to move forward with the redistricting process; on Monday, leaders of each caucus appointed a member to the Temporary Redistricting Advisory Commission (two Republicans and two Democrats).  This group will then elect a fifth member that will serve as the chairperson.

• Republicans appointed Chris Hagenow, Vice-President of Iowans for Tax Relief and a former House Majority Leader, as well as David Roederer, who recently retired as director of the state’s Office of Management.
• Democrats named Deidre DeJear, a 2018 candidate for Iowa Secretary of State, and Ian Russell, an attorney from Bettendorf.

Once the Bureau delivers population data to the states and the state Legislative Services Agency drafts the first round of proposed maps, the committee will be tasked with holding at least three public hearings across the state and submitting a report to the Legislature.  Constitutionally, the Legislature is required to approve a plan for legislative redistricting and send it to the Governor by September 1, and it must be enacted by September 15.  If those deadlines are not met, the Iowa Supreme Court is directed to weigh in and draw the maps by December 31. 

COVID Update

In a retraction from statements last week, Governor Reynolds has said that the state has decided not to use Microsoft as a statewide scheduling app for COVID vaccinations.

According to the state’s COVID-19 vaccine dashboard, 529,445 doses have been administered to Iowa residents and 131,500 individuals have completed the COVID-19 vaccine series.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

Week 5 at the Iowa legislature brought a lot of action both in committee and in each chamber.  Dozens of bills passed out of House and Senate committees each day this week, which is a much faster pace than any recent session.  Additionally, the chambers completed a solid amount of floor work, clearing debate calendars of mostly noncontroversial legislation that passed unanimously.  Bills have been messaged from one chamber to the other and a few have already made their way to the Governor.  The pace cannot be understated.  All of this happening while new bills are still being drafted and introduced.  Friday, February 12 is the final day for individual senator and representative requests for bill and joint resolution drafts.

Legislative Update

Senator Dickey from Senate District 41 was sworn-in on Monday after the results of the canvassing board were certified.  Republicans now return to a 32-18 advantage.  The new senator was named Vice-Chair of the Transportation committee and named to the Labor and Ways and Means Committees.

Education Funding

The Senate made quick work of the Supplemental State Aid bill (SF269) which sets education funding. The bill moved through subcommittee and the full Education and Appropriations committees on Monday, February 8.  On Tuesday, the bill was called up on the floor and after a lively debate, passed 32-17, with one Democrat Senator voting with the Republicans.  The bill sets the state growth rate (SSA) and the categorical funding rate for schools at 2.2% for the 2021-2022 school year and creates a new $65 per-pupil qualified instruction supplement, which is based on the number of in-person school days schools held this past school year. 

Amendments from the Democrats addressed concerns that 140 school districts will receive less in state funding under this calculation and property taxes will need to increase to make up the difference. Democrats also believe the qualified supplement punishes Des Moines students because of the dispute over returning to in-person learning during COVID. 

The House has their own SSA bill (HF439) which sets the rate at 2.5%. The House SSA rate is higher than the Senate rate and uses a different formula to distribute $30 million in a qualified supplement to schools. HF439 was approved by the House Education Committee earlier this week.

Childcare

The House passed six childcare bills with largely unanimous support on Wednesday, February 10.

• Child Tax Credits HF230
• Childcare Numbers HF260
• Childcare Reimbursement Rates HF292
• Childcare Matching Grants HF301
• Childcare Phase Out HF302
• Business Childcare HF370

The bills will expand eligibility for childcare credits, increase the number of children allowed in a childcare home, increase reimbursement rates, establish grants to increase wages for childcare workers, establish a phase-out for parents whose income has increased, and give credit to employers who build childcare facilities at work.  These bills have been identified by all parties and the Governor as a priority this session.

Supplemental Funding

The Senate debated a Supplemental Appropriation bill (SF284) that makes a supplemental appropriation in FY 2021 of $21 million to the CIO to pay for the Workday central personnel, accounting, and budgeting system. The appropriation is needed to pay for the system after it was determined that Federal CARES money could not be used to pay for it. 

Executive Branch Update

Economic Recovery Advisory Board Final Report

Governor Reynolds’ Economic Recovery Advisory Board issued recommendations on steps the state should take to recover from the effects of the COVID-19 pandemic.  The entire report was published last week.  Recommendations include the following legislative actions for the current and upcoming legislative sessions:

• Expanding access to childcare and lowering costs for families
• Expanding access to broadband
• Creating new housing programs, including programs to prevent eviction and foreclosure
• Improving health care with better emergency responses and more health care providers and telehealth
• Improving education with more work-based learning, school choice, and charter school options

The board is made up of 12 leaders of Iowa companies, the state economist, a chamber of commerce official, and the CEO of the University of Iowa Hospitals & Clinics. The board also made recommendations to improve manufacturing in Iowa, increase bio-manufacturing opportunities, improve water quality in the state, and improve community life.

Housing

On Monday, February 8, the Governor announced new housing funds available for small rural cities (under 20,000 residents).  The Rural Innovation Grant Program allocated $300,000 for innovative ideas on community investment to spur growth and $100,000 for the Rural Housing Assessment Grant Program to help communities analyze hard data and determine how to make changes through development codes, ordinances, and housing incentives in conjunction with Iowa State University Outreach.

The Governor’s housing proposal (SF295/HSB178) is making its way through both the House and Senate.  Both bills moved through the committee process this week; SF295 was approved by the Senate Local Government and Ways and Means Committees and HSB178 moved through subcommittee.  The bill provides a number of incentives to establish affordable housing in Iowa.

COVID-19 Update

Governor Reynolds issued a new Public Health Disaster Proclamation that relaxed public health measures including lifting the limited mask requirement and repealing other COVID-19 mitigation measures for business and social gatherings.  Governor Reynolds stated that while the pandemic is not over, Iowa has seen a decline in the rate of COVID-19 infections since November which is why she lifted the mitigation efforts.

According to the state’s COVID-19 vaccine dashboard, 366,109 total doses have been administered to Iowa residents and 99,978 individuals have completed the COVID-19 vaccine series.  The state issued an RFP for a vendor for an appointment scheduling system and selected Microsoft.  Governor Reynolds said in addition to the number of doses increasing, appointments will become easier to schedule due to the new scheduling system.

Judicial Branch Update

State Court Administrator Todd Nuccio is resigning as of April 30, 2021.  Nuccio has been the State Court Administrator since September 2017, replacing David Boyd who served 14 years in the position.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

Week four brought extensive committee work in both chambers Monday-Wednesday, with a slower day on Thursday due to the snow in Des Moines and across the state, though virtual meetings allowed the Senate to continue to conduct business, despite the snowstorm. With numerous bills through committee, we will likely see more floor action in the coming weeks. Over 100 study bills were introduced this week alone, and more are expected as individual requests continue to be drafted. Next week brings the first legislative deadline. Friday, February 12 is the final day for individual senator and representative requests for bill and joint resolution drafts.

2021 Session Deadlines:

Childcare and Education

The House continued advancing childcare bills, addressing their priority of expanding access to childcare. The House also passed HF228, Voluntary Diversity Plans, on Tuesday evening, sending it to the Senate. The bill strikes the ability of school districts to use a voluntary diversity plan as a reason for denying open enrollment, giving parents the ability to decide where their children go to school. The bill passed on a 56-32 party-line vote (12 members were absent). The Senate already approved provisions of HF228 in the Governor’s Education Plan (SF159) on a 26-21 vote last week.

Access to Contraception

The House Human Resources Committee approved HSB121, Hormonal Contraceptives, on a 15-2 vote. The bill allows pharmacists to dispense self-administered hormonal contraceptives without a prescription. In the previous General Assembly, Governor Reynolds prioritized expanding access to contraception to Iowan women in rural areas. In 2019, SF513 passed the Senate on a 42-6 vote. The House Human Resources Committee passed a companion bill, but it never received a floor vote in 2019 or 2020.

Affordable Housing

The subcommittee on the Governor’s housing proposal (SSB1142) convened Thursday with immense support from groups across the spectrum. SSB1142 deals with the current shortage of affordable homes by:

• creating a Housing Tax Credit program (aggregate credits of $15 million for affordable housing)
• doubling the existing Workforce Housing Tax Credits ($50 million to clear existing backlog of eligible projects)
• doubling the Redevelopment Tax Credit
• including disaster housing assistance and assistance for downtowns

The Governor’s Office believes Iowa will need an additional 50,000 homes by 2030.

Executive Branch Update

Governor Reynolds has named Michael Bousselot as the new Director of the Department of Management, effective Monday, February 8. Bousselot replaces Director Dave Roederer who served in the role for ten years. Bousselot previously served as Chief of Staff, Legal Counsel, and Policy Advisor in the Branstad-Reynolds administration.

COVID Update

Governor Reynolds plans to request the development of a system to schedule COVID vaccinations. Iowa currently trails much of the nation in the rate of vaccination. The Governor also plans to press federal officials about why Iowa is receiving fewer vaccinations than other states; Iowa is 47th in the nation in per capita vaccine distribution. About 206,000 people in Iowa (6.5% of the population) have received at least one of the two required vaccine doses.

Other News

In a few weeks, Senator Charles Grassley is likely to announce whether he will run again. Senator Grassley is 87 and up for re-election in 2022. He served eight terms in the Iowa House, three terms in the U.S. House, and is serving his seventh term in the U.S. Senate.

This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown.

Both chambers gaveled in for the third week of the legislative session, despite a massive snowstorm that dumped historic levels of snow across most of Iowa and the Des Moines metro. 

While the emphasis this week was largely on committee work, with dozens of bills advancing out of subcommittee each day, the week closed with two main accomplishments–floor action on education bills and constitutional amendments. 

Education Bills

Education bills requiring full-time, in-person learning for the 2020-2021 school year quickly became a top priority for both chambers and the Governor in response to virtual learning plans rolled out by numerous school districts during the COVID-19 pandemic.

The Senate moved the Governor’s Education Plan (SF159, formerly SSB1065, more details here) through subcommittee and committees (Education and Appropriations) on Monday along party-line votes.

Highlights of the bill include:

• Scholarships that would allow parents to move students out of public schools that do not meet federal guidelines
• End the use of voluntary diversity plans to deny open enrollment requests
• Adopt provisions on charter schools
• Require the coordination of school records electronically
• Increase the tuition tax credit

Also on Monday, the Senate Education Committee approved SF160 (formerly SSB1064) School Instructional Time, which would require in-person learning. 

The House Education Committee began debate on both HF229 (formerly HF103 and the companion to SF160). School Instructional Time and HSB64 Voluntary Diversity Plans on Monday and finished the debate Tuesday, moving both bills forward. Provisions of HSB64 are included in the Governor’s proposals on education (which was approved by Senate Education in SF159).

Thursday brought floor action in both chambers on the education bills. The House and Senate both approved School Instructional Time (SF160) with the Senate amending the bill to concur with the language in the House bill. The Senate messaged the amended bill to the House who took it up late in the evening on Thursday, substituting HF229 for SF160, and approved the bill 59-39 before gaveling out for the week. Governor Reynolds signed the bill on Friday, January 29. The bill is effective on enactment and requires in-person learning to begin by the second Monday following the effective date, which is February 15.

The Senate also approved the Governor’s Education Plan (SF159) on a 26-21 vote with three Republican Senators voting with the Democrats.  A fiscal note on the Governor’s Education Plan was also released Thursday, January 28, estimating the impacts to school districts of reductions in state aid and reduced property taxes.  The bill now awaits action in the House.

Constitutional Amendments

In addition to the education bills, both chambers were eager to advance Constitutional Amendment resolutions this week. The Second Amendment Constitutional Amendment is a top priority for the Republicans.

• Second Amendment Constitutional Amendment resolutions (SJR7/HJR4) were debated and advanced in both chambers on Thursday evening (the House substituted HJR4 for SJR7).  Passing on party-line votes, the bill now goes to the Secretary of State to be noticed and placed on the ballot in the 2022 election for a statewide vote before being added as a constitutional amendment.
• No Right to Abortion Constitutional Amendment (HJR5) was debated in the House on Wednesday evening. The House adopted the amendment on a 55-44 vote, with three Republicans voting against the amendment.  The bill was immediately messaged and awaits action in the Senate.

Childcare

A number of childcare bills are being considered and advanced to address the “childcare cliff” in Iowa, which has been identified by all parties as a priority this session.  Significant work was done on these bills this week and it is worth noting which bills have advanced: 

• Child Tax Credits (HF230 formerly HF1)— Doubles the income threshold (to $90,000) for eligibility for child tax credits (advanced out of House Ways & Means Committee).
• Business Childcare (HF4)— Establishes credits against the income tax, franchise tax, or gross premiums tax for businesses that offer childcare for employees of up to 25% of costs. It caps the credit at $150,000 and allows it to be carried forward. Includes building an on-site child center or leasing or paying the expenses of a childcare center (advanced out of House Ways and Means subcommittee). 
• On-Site Childcare (HF3/SF176) — Allows the creation or expansion of an on-site daycare at a business to qualify for credits under the High Quality Jobs program (HF3 advanced out of House Economic Growth subcommittee). 
• Childcare Matching Grants (HF6)— Creates the Iowa Childcare Workforce matching grant program to offer matching grants to communities that provide funding for the childcare WAGES stipend program, the teacher education and compensation helps scholarship program, or other childcare workforce strategies (advanced out of House Human Resources Committee).
• Childcare Reimbursement Rates (HSB2)— Requires DHS to set the reimbursement rate under the Child Care Assistance program for providers whose reimbursement is under 50% level of the most recent market rate (advanced out of House Human Resources Committee).
• Childcare Phase Out (HSB3)— Established a 12-month phase-out of eligibility for childcare assistance after the gross income of the family has increased (advanced out of House Human Resources Committee).

Special Election

Republican Adrian Dickey won the special election in Senate District 41 against Democrat Mary Stewart 5,040 votes to 4,074. Republicans now return to a 31-18 advantage in the Iowa Senate. 

Former State Senator Miller-Meeks has been seated by the U.S. House, though her challenger Former State Senator Hart has petitioned to contest the election; Miller-Meeks resigned before the start of session, which initiated a special election for her open seat.

Other News

Representative Ross Wilburn was selected as the new chair of the Iowa Democratic Party.  A former mayor serving his second term in the Iowa House, Representative Wilburn replaces former Representative Mark Smith who took the position in 2020.

Judge Thomas Bower was re-selected as the Chief Judge of the Iowa Court of Appeals; Judge Bower has served on the Court of Appeals since 2012 and was first elected Chief Judge in 2019.