On Thursday, members of a House Ways and Means subcommittee held a meeting on  HSB 671, the Governor's tax policy proposal. Rep. Peter Cownie, Chairman of the Commerce Committee, is the floor manager of the tax bill. Rep. Cownie will also be the guest speaker at Iowa Business Day on the Hill on Tuesday, March 13. During the meeting, several members of the public spoke, and a few items mentioned include: support of increase in Sec. 179 and Qualified Business Income deduction, incorporating corporate into the Governor's bill, definitions of lodging in the expansion of sales tax, concerns with definition of digital good and budget sustainability.

The Democrat members of the subcommittee raised some concerns with the current budget situation, and referenced more resources for water quality and mental health funding. At the conclusion of the subcommittee, Chairman Cownie mentioned he intends to move the legislation out of committee the week after the second legislative funnel, which is the week after Iowa Business Day on the Hill and the ABI board meeting. If you would like to provide feedback, please contact  Nicole Crain.

Don't forget the opportunity to enjoy breakfast and conversation with ABI members and Sen. Craig Johnson and Rep. Sandy Salmon in Waverly on Friday, March 2 at 8 a.m. This event is open to ABI members and their guests who are interested in talking about key issues facing your business in the Legislature. It's not too late to RSVP. Please email Michelle Vollstedt.

Final-stage Manufacturer Legislation Sent to Governor

The Iowa House on Thursday unanimously passed  SF 2262, which cleared the Senate last week on a vote of 49-0. The legislation, as you have  read in previous newsletters, will allow Iowa final-stage manufacturers of work vehicles to cleanly pass the title to the end customer. This legislation is a pro-manufacturing piece of legislation and will now go to the Governor for her consideration.

Iowa Senate Passes Legislation to Enhance the Insurance Fraud Bureau

The Senate on Tuesday debated and passed SF 2305, a bill introduced by Sen. Chapman, to enhance the Iowa Insurance Division's Fraud Bureau by creating a new workers' compensation division. ABI supports the bill. Under the bill, this new division would focus on prosecuting the new crime of workers' compensation fraud instituted by the bill. The bill provides for a workers' compensation prosecutor to be housed at the Iowa Insurance Division's Workers' Compensation Fraud Division. The bill underwent changes from its original version, as Sen. Chapman worked to improve the bill to address stakeholder concerns. The bill now goes to the House. Click here to read an article from the Des Moines Register.

Federal Workforce Conformity Bill Moves Forward

The Senate passed SF 2353 , a bill to conform Iowa with the federal requirements in the Workforce Opportunity and Innovation Act (WIOA), by a vote of 48-2 on Wednesday. The bill requires the state workforce board to comply with WIOA requirements to expand the number of participants on the board to include more than 50 percent business people, and the board chair must be a business person. The bill also changes the makeup of local workforce boards and changes who appoints the board members. ABI supports the legislation to ensure Iowa compliance with federal law. The bill now goes to the House.

Subcommittee Discusses Eliminating Property Tax Backfill

A subcommittee was held Tuesday to begin discussions on eliminating the property tax backfill allocated to local governments by the state. The backfill was to offset the 10 percent rollback of commercial and industrial property taxes put in place during property tax reform in 2013. Local governments receive this backfill based on a formula, and the appropriation from the state annually totals approximately $152 million. SF 2081 would phase out the backfill by a third each of the next three fiscal years beginning in FY19. Keep reading.

Business Day on Hill -- Chairman Cownie to Speak on March 13

A little more than a week remains until Iowa business leaders will hear from policy staff on key business issues pending in the Legislature. With tax reform in full swing, you won't want to miss the opportunity to get an update on the proposals and an inside look at what's happening in the 2018 legislative session. In addition to a policy update and hill visits, ABI members will hear from Chairman Peter Cownie of the House Commerce Committee. Rep. Cownie has championed several pro-jobs pieces of legislation through the Iowa House and is now the floor manager of the tax policy bill working its way through the Legislature. Click here to register today.

Federal Spotlight: NLRB Returns to Browning-Ferris

Earlier this week the National Labor Relations Board (NLRB) vacated the Hy-Brand decision, and now employers must once again follow the Browning-Ferris joint-employer standard. This issue brings uncertainty to employers, especially those who have contractors or franchise owners. Read more from the U.S. Chamber of Commerce.

Federal Spotlight: Supreme Court Declines to Hear Appeal of DACA Ruling

On Monday, the U.S. Supreme Court said it won't hear an appeal of a ruling made by a federal judge in California pertaining to the Deferred Action for Childhood Arrivals (DACA) program. The judge's ruling concluded the program must continue in its current form. The Trump Administration wanted to bypass the 9th Circuit Court of Appeals and go straight to the Supreme Court for appeal. It's extremely rare for the Supreme Court to take an appeal that would bypass a lower court in the appeals process. The DACA program, which President Trump said last September would end in early March if Congress didn't come up with a legislative fix, will continue for now, as the case will be heard before the 9th Circuit Court of Appeals.