Policy Perspectives
February 21, 2016
Professional Developers of Iowa's Bill Tracker is HERE 
One Funnel Down, One to Go
 
Monday, February 22nd will mark the 43rd Day of the 100-day Legislative Session. It will also mark the beginning of the post-First Funnel portion of the session. On Friday, any non-spending or tax bills that had not been passed by the committee to which they were assigned fell victim to the first funnel and died for the year.   As is tradition, the first funnel kills several hundred bills every session. Additionally, many of the bills that survived were advanced out of committee with legislators knowing they needed more work before they could advance.
 
As we enter the seventh week, we start the march toward the Second Funnel deadline which occurs in three weeks on Friday, March 11th. By that deadline, any non-taxing or spending bill will need to have been passed by the committee to which it was assigned in BOTH legislative chambers.
 
Both chambers will spend the next three weeks conducting a large amount of both floor debate and committee work in an attempt to move priority legislation over to the other chamber and out of committee. This differs from the run-up to the first funnel, where the chambers conduct very little floor debate as the focus is solely on committee and subcommittee work.
 
School Funding continues to remain unresolved as we near the halfway point of the session. The Senate continues to hold the line at four percent while the House continues to argue that the State budget cannot afford that amount. Both sides have valid arguments and neither one looks like they are backing down any time soon. The rest of the State budget will likely be hard to start piecing together while education funding remains unresolved.
 
Some other big issues at the Statehouse:

Medical Cannabidiol - The House Commerce Committee advanced legislation, 17-6, that would fix Iowa's previously enacted medical cannabidiol program. The bill would legalize the limited growth of marijuana in Iowa for distribution as medicine to treat three conditions: epilepsy, multiple sclerosis and end-stage cancer. Legislators cited a number of constituent stories of people whose lives could be improved or saved by the law change.
 
Fireworks - The legalization of fireworks remains a hot topic at the Capitol.
 
Federal coupling - Whether or not Iowa will amend its tax code to take full advantage of some federal tax changes remains a heated debate. Doing so would put a whole in the state budget, but failing to do so means some Iowans would not see a tax break on their state taxes.
 
SAVE - In the last issue, we talked about the Secure an Advanced Vision for Education (SAVE) Fund proposal from the Governor and Legislators. This issue continues to advance at the Capitol with a couple of different versions clearing the funnel deadline.

Medicaid Privatization - A handful of bills to slow down or alter the Governor's plan to have Medicaid operated by managed care companies have cleared the funnel.
Legislative Forums
Advocate with your State Senator and Representative!! Please follow that link below to find out where legislative forums are occurring in your area!!
 
 
If you know of other legislative forums that do not appear on this list, let us know at info@ialobby.com!


Other PDI Issues

Tax Increment Financing
Still no news on the upcoming TIF bill.  For reference, you can view our summary of Rep. Sands' bill from last year, House File 628, HERE.

Renewable Chemical Production Tax Credit 
The Renewable Chemical Production Tax Credit legislation continued its march forward by clearing the funnel deadline in both chambers.  Now, the companion bills will be sent to each chamber's Ways & Means Committee (exempt from funnel) for more refinements and negotiation.  For the record, House leaders announced the passage of the bill in their newsletters among the list of success story bills.  That's always a good sign!

FY 2017 Budget
While budget work should be heating up, most budget subcommittees have wrapped up their work for the year (but an occasional meeting may be planned).  If you go HERE, you'll find a spreadsheet with House-Senate-Governor budget comparisons.  Not much will happen before the March revenue estimates are released (usually mid-March).  Those estimates will set the final threshold for legislative spending, since legislators will have a firm grasp on how much revenue the state will take in for the year, and how much they can spend (by law, they can spend 99% of this estimate).  Depending on how much those estimates change, House and Senate budget targets may need to be tweaked.

Enhance Iowa 
Senator Dotzler's Enhance Iowa bill was advanced through the funnel in the Senate and will now be referred to the Senate Appropriations Committee for further changes.
 
 
Live Bills Being Tracked

Below is a table of the bills we are tracking for you. Please be sure to check the "Bill Tracker" link at the top and bottom of this message to see a more current version.

Bill# Title Status
HF2111 
Abandoned Building Program
Summary | Details 
House Floor
 
Makes changes to city eligibility requirements for receipt of abandoned building program funding assistance.
HF2242 
Workforce Housing Tax Incentives Program
Summary | Details 
House Ways & Means Committee 
 
Increases to $25 million from $20 million the maximum amount of tax credits that the economic development authority may annually allocate to the workforce housing tax incentives program.
HF2260 
SAVE Fund Extension
Summary | Details 
House Floor
 
Extends the Secure an Advanced Vision for Education (SAVE) fund to January 1, 2050.
HF2288 
High Quality Jobs Program & Chemical Production Tax Credit Program
Summary | Details 
Senate & House Floors
 
Relates to the administration of programs by the economic development authority (EDA) by modifying the high quality jobs program and creating a renewable chemical production tax credit program.
HF2352 
Water Service Taxation
Summary | Details 
House Ways & Means Committee 
 
Exempts water service by a utility from the state sales tax. Creates a state excise tax on water utility sales. Allows counties to impose a local water service tax.
HF628 
Tax Increment Financing (TIF) Changes
Summary | Details 
House Ways & Means Committee 
 
*Last year's bill. Bans the use of TIF for public buildings, limits existing TIF's without an end date by ratcheting up the base by 7.5 percent per year, limits new TIF districts to 20 years. 
HF656 
IEDA Tax Credits - Renewable Chemical
Summary | Details 
Senate Ways & Means Committee 
 
Makes changes to the administration of tax credits by the Iowa Economic Development Authority.
HJR2008 
Manufacturing Sales and Use Tax Exemptions
Summary | Details 
House Ways & Means Committee 
 
Nullifies several Department of Revenue administrative rules and amendments relating to the manufacturing sales and use tax exemptions.
HR102 
ISBDC and 2016 Award Winners Recognition
Summary | Details 
Adopted
 
Recognizes Iowa Small Business Development Centers and honors 2016 award winners.
HSB256 
IWILL, Formula Changes, AMT
Summary | Details 
House Ways & Means Committee 
 
Implements the 3/8 cent sales tax increase for the Natural Resources and Outdoor Recreation Trust Fund.  Also contains significant changes to the Trust Fund's voter-approved funding formula and creates an Iowa Alternative Minimum Tax (AMT).
HSB601 
SAVE Fund
Summary | Details 
House Floor
 
Extends the state sales tax of 6% until January 1, 2050, to support the Secure and Advanced Vision for Education (SAVE) fund, and modifies use of SAVE revenues to include water quality initiatives.
HSB620 
Academic/Career Guidance & CTE Programs
Summary | Details 
House Floor
 
 
Modifies provisions relating to a student plan for progress toward high school graduation, which each eighth grade student enrolled in a school district must complete. Modifies provisions related to career and technical education.
SF2005 
Property Tax Revenue from Wind Energy
Summary | Details 
Senate Ways & Means Committee 
 
Authorizes municipalities to provide for the division of property tax revenue (tax increment financing) collected against wind energy conversion property located within an urban renewal area.
SF2006 
Property Taxes for Wind Energy
Summary | Details 
Senate Ways & Means Committee 
 
Authorizes municipalities to provide for the division of property tax revenue (tax increment financing) collected against property located within an urban renewal area.
SF2018 
Urban Renewal Law
Summary | Details 
Senate Ways & Means Committee 
 
Prohibits urban renewal plans and projects from using TIF revenues for a tax-exempt public building.
SF2067 
Residential Metered Water
Summary | Details 
Senate Ways & Means Committee 
 
Exempts from the state sales tax the sales price from the sale or furnishing of water to residential customers and creates state and local residential water excise taxes.
SF2102 
Drug Prescribing and Dispensing Information Program
Summary | Details 
House Floor
 
Requires the Board of Pharmacy to implement improvements to facilitate secure access to the Iowa Prescription Monitoring Program through electronic health and pharmacy information systems.
SF2154 
Economic Development Authority
Summary | Details 
Senate & House Floors
 
Makes changes to programs and duties of the Economic Development Authority.
SF2179 
High Quality Jobs Program & Chemical Production Tax Credit Program
Summary | Details 
Senate Floor
 
Permits the Economic Development Authority to provide additional tax incentives to businesses using apprenticeship training program contractors and subcontractors for projects in which qualifying investments are made under the high quality jobs program.
SF2212 
Sales Tax Rebate
Summary | Details 
Senate Floor
 
Modifies the rebate of state sales tax to the owner or operator of a baseball and softball tournament facility and movie site.
SF2229 
Nuisance Property Remediation Fund
Summary | Details 
Senate Floor
 
Allows the Economic Development Authority to provide grants to cities for the remediation of nuisance properties and abandoned buildings.
SF2246 
Water Quality Initiative
Summary | Details 
Senate Appropriations Committee 
 
Redirects wagering tax receipts from the Vision Iowa fund to the water quality initiative fund beginning in FY2017-2018.  Makes an appropriation of $30.4 million from the general fund for FY 2015-2016 to the state bond repayment fund.
SSB1272 
Iowa Water & Land Legacy (IWILL)
Summary | Details 
Senate Ways & Means Committee 
 
Raises the state's sales tax to fund the Natural Resources and Outdoor Recreation Trust Fund.
SSB3051 
Governor's Transportation Budget
Summary | Details 
Senate Appropriations Committee 
 
Governor's Transportation Budget.
SSB3080 
Solar Energy Tax Credits
Summary | Details 
Senate Ways & Means Committee 
 
Increases the amount of business and residential solar energy tax credits that may be claimed annually.
SSB3094 
Enhance Iowa
Summary | Details 
Senate Floor
 
Creates Enhance Iowa Board, establishes Enhance Iowa Fund, and establishes sports tourism program.
SSB3162 
Governor's Infrastructure Funding Bill.
Summary | Details 
Senate Appropriations Committee 
 
Governor's infrastructure funding bill.
SSB3163 
Construction Equipment Sales Tax
Summary | Details 
Senate Ways & Means Committee 
 
Provides that the purchase of construction equipment for a subsequent lease or rental that will qualify for the construction equipment exemption will only fail to qualify for the sale-for-resale exemption if the sale is to a nonqualified dealer. 


Bills Being Watched by PDI that  
DIED in the First Funnel
*Note that some of these bills were introduced just prior to being killed by the funnel deadline. And some of these bills are holdovers from last session.

Bill# Title Status
HF2125 
Rural Highways Speed Limit
Summary | Details 
House Transportation Committee 
 
Raises the speed limit on rural highways from 55 to 60 miles per hour. 
HF2126 
Rural Highways Speed Limit
Summary | Details 
House Transportation Committee 
 
Raises the speed limit on rural highways to 65 miles per hour.
HF2150 
Rural Opportunity Zones
Summary | Details 
House Economic Growth Committee 
 
Creates rural opportunity zones, a student loan repayment program and fund, and an individual income tax credit.
HF2153 
Minimum Hourly Wage
Summary | Details 
House Labor Committee 
 
Increases the state minimum hourly wage.
HF375 
Drainage/Levee Districts
Summary | Details 
House Local Government Committee 
 
Requires an attorney or abstracter to indicate that the land is part of a drainage or levee district when preparing an abstract of title.
HF619 
Eminent Domain for Lakes/Drinking Water
Summary | Details 
House Government Oversight Committee 
 
Makes changes to current law regarding the use of condemnation for the purpose of creating a lake for drinking water purposes.
HJR2005 
Fewer Counties Constitutional Amendment
Summary | Details 
House State Government Committee 
 
Proposes an amendment to the Constitution of the State of Iowa requiring the creation of 40 counties in Iowa in 2021. 
HSB185 
Petitions for Electric Transmission Line Franchise
Summary | Details 
House Government Oversight Committee 
 
Relates to petitions for electric transmission line franchises.
SF128 
Rural Improvement Zones
Summary | Details 
Senate Local Government Committee 
 
Makes changes to rural improvement zones.
SF193 
Promotion Areas/Lodging Fee
Summary | Details 
Senate Local Government Committee 
 
Relates to the establishment of promotion areas by cities and authorizes the imposition of a local lodging fee in those areas.
SF234 
Iowa Employment Rides Initiative
Summary | Details 
House Transportation Committee 
 
Establishes an Iowa Employment Rides Initiative. 
SF327 
Targeted Jobs Withholding Tax Credit
Summary | Details 
Senate Economic Growth/Rebuild Iowa Committee 
 
Modifies the qualifications as well as number of cities that can participate in the targeted jobs withholding tax credit program. 
SF367 
Endow Iowa Tax Credits/Gifts
Summary | Details 
Senate Ways & Means Committee 
 
Modifies the types of endowment gifts that qualify for the Endow Iowa Tax Credit.
SF408 
Iowa Innovation Learning Spaces
Summary | Details 
Senate Appropriations Committee 
 
Directs the STEM collaborative initiative established at the University of Northern Iowa to administer Iowa Innovation Learning Spaces.
SF41 
Secondary Road Bridge Projects
Summary | Details 
Senate Appropriations Committee 
 
Appropriates $200 million for secondary road bridge projects.
SF50 
Wind Energy Conversion Property
Summary | Details 
Senate Economic Growth/Rebuild Iowa Committee 
 
Allows local governments to include wind energy conversion property in an urban renewal area property.
SF61 
Sports Tourism Program
Summary | Details 
Senate Economic Growth/Rebuild Iowa Committee 
 
Creates a Sports Tourism Program in the Iowa Economic Development Authority.
SSB1104 
Endow Iowa Tax Credits
Summary | Details 
Senate Ways & Means Committee 
 
Increases the amount of Endow Iowa Tax Credits that can be authorized by $1.5 million.
SSB1105 
Aggregate Tax Credit Limits /EDA Programs
Summary | Details 
Senate Ways & Means Committee 
 
Reduces the aggregate tax credit limits for certain IEDA programs. 
SSB1139 
Governor's Iowa Next program
Summary | Details 
Senate Economic Growth/Rebuild Iowa Committee 
 
Establishes the Governor's proposed Iowa Next Program, which replaces (and repeals) the Vision Iowa/Community Attractions and Tourism program.
SSB1287 
Iowa Next (Take Two)
Summary | Details 
Senate Ways & Means Committee 
 
After the Governor's original Iowa Next bill died in the first legislative funnel, Senator Dotzler constructed this bill to keep the Iowa Next concept alive and through the legislative process.
   




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