State Capitol Report 
 Issue 6 | April 2, 2017  
Legislative Session Update

Monday, April 3, 2017, will mark the 85th Session Day of the 2017 Legislative Session, a mere 15 days from the April 18th target adjournment date. In fact, some legislators believe they may finish even earlier - before Easter - but there is lot of heavy lifting remaining that suggests otherwise.
 
Second Funnel
This past week marked the end of the second legislative "funnel," an administrative function the Legislature uses to winnow out legislation that is not showing significant enough forward progress to have a realistic chance at enactment. By the end of the week, legislation had to have been passed by committee in both the House and the Senate. Exempt from the funnel deadline are bills before the Appropriations, Oversight or Ways & Means Committees. All other committees are essentially done with their work for the year.
 
Publication Note
At this time, it is appropriate for us to note that this publication, which typically comes out every two weeks during session, will NOT be published two weeks from now IF it looks like the Legislature could adjourn in the near future. If that is the case, we will instead wait and publish AFTER they adjourn for the year. In the mean time though, keep an eye out for timely alerts requesting you to take action.
 
The Governor's Revised Budget
With the second funnel deadline passed, the list of "must-do" legislation is getting shorter, and pieces that do not have full agreement are being thrown overboard to try again next year. Meanwhile, the Legislature has shifted fully into budget mode. The March 14th meeting of the Revenue Estimating Conference (REC) required the Governor to revise his budget recommendations for the upcoming FY 2018 budget. Those revisions were submitted on March 28.
 
To summarize, the Governor's budget numbers are pretty tough, as expected. However, we are hearing that the Legislature's numbers that we will see next week will be even tougher. Here are a few highlights of the Governor's budget proposal: 
  • The Governor borrows $131.1 million from the Cash Reserve Fund to cover the shortfall in FY 17 revenue (the current fiscal year which ends on June 30, 2017).
  • The Governor proposes to repay those funds over two years - $104.8 million in FY 2018 and the remaining $26.3 million in FY 2019.
  • In FY 2018, the Governor proposes to spend $7.2836 billion from the General Fund, an increase of $24 million over the revised FY 2017 budget. (But a decrease of $173.3 million from his earlier FY 2018 budget).
  • Funding for K-12 education will increase by $40.1 million over FY 2017, per an earlier agreement.
  • Medicaid spending in the Governor's budget is increased by $34.5 million in FY 2018.
  • The Governor's Budget fully funds the backfill provided to local governments to cover shortfalls created by the Property Tax Reduction bill.
You can view the Governor's proposal HERE and the non-partisan Legislative Service Agency's assessment of the proposal HERE.
 
Of specific interest to TFI, here are some observations about the Governor's proposed budget:
  • Reduction in IEDA Administration Budget of $87,778 (on top of a $1,031,180 reduction since last Fiscal Year).
  • Establishment of a cap on Tourism Marketing funds from gaming revenues at $1,067,800 (without the cap, this program in FY 2016 equaled $1,178,000).
  • Provides level funding for Community Attraction and Tourism ($5M), Regional Sports Authorities ($500k), Great Places ($1M).
  • Provides level funding (of $42M) to the Environment First Fund (EFF); REAP funding last year came from the EFF. (The Governor's Budget does not show the EFF in detail, so we can assume $42M means the Governor would fund REAP at $16M. We are hearing the legislative budgets MAY reduce REAP below that.)
  • Reduces State Park Infrastructure funding by $1M (to $2M)
  • Reduces Lake Restoration & Water Quality by $1M (to $8.6M)
  • Eliminates the $1M for Water Trails and Low Head Dam Safety Grants
  • Reduces Recreational Trail funding by $1M (to $1.5M)
What does this mean for you? It's not time to panic, but IT IS GO TIME. In the next few days, we should see budget proposals from the Legislature and they are predicted to be LEANER than the Governor's budget numbers. NOW IS THE TIME to be reaching out to YOUR LEGISLATORS to weigh in with your thoughts. The next two weeks will be crucial. And the results of these two weeks will be FINAL for your priorities.
Your VOICE is NEEDED!!
 
As the session winds down, your input into the process can mean the difference between success and failure for our legislative priorities. Please take a few moments to weigh in with your House and Senate members (Find them HERE) about the three biggest remaining priorities for TFI!!
 
Priority #1 - The Tourism Budget
The IEDA Budget has seen over $1 million in reductions this Fiscal Year, and the Tourism Marketing funds from gaming have been capped. Legislators need to hear from you. Businesses should never cut their marketing budget in a downturn and neither should the State!
 
Priority #2 - Water Quality
The Legislature does not have consensus around a single water quality proposal. TFI is supporting the WISE Solution because, in addition to being the only permanent and sustainable solution, it is the ONLY proposal that includes funds for important Quality of Life initiatives that drive tourism. You can find more information about The WISE Solution HERE.
 
Priority #3 - Hotel/Motel Stay Extension
TFI is supporting legislation ( HF 477) that would extend from 30 to 90 days the length of stay in a lodging establishment before the hotel/motel tax drops off. Right now, if a construction company puts workers in a hotel in your city for a stay that exceeds 30 days, NO hotel/motel tax can be collected for that entire stay. Since construction season coincides with tourism season in a lot of Iowa communities, this has a devastating effect on hotel/motel tax revenue.
 
Please call and email YOUR LEGISLATORS about these priorities today! And then, recruit a couple or your friends and neighbors to also reach out to their legislators! Time is running out!!
Bill Tracker
TFI's bill list is now at http://www.ialobby.com/billtracker/tfi/ 

Public Forums

You can find a list of legislative and Congressional forums planned throughout the state  here.
Bills Being Tracked for TFI
This is a list of the bills being tracked for TFI and their status at the time of publication.  The online bill list is updated constantly, so if you wish to see the updated bill list, just go to http://www.ialobby.com/billtracker/tfi/ 

Bill# Title Status
HF107
Iowa Zoo Fund
Summary | Details
House Ways & Means Committee

Creates the Iowa Zoo Fund and a $1 income tax return checkoff for the fund.
HF203
Primary Road Fund
Summary | Details
Signed

Allows the state transportation commission to periodically allocate funds from the Primary Road Fund (PRF) to the secondary and municipal road systems in exchange for retaining all or a portion of federal aid road funds that would otherwise be allocated to counties and cities.
HF245
Cultural Trust Fund
Summary | Details
House Appropriations Committee

Allocates $6,135,000 from the taxpayer trust fund to the Iowa cultural trust fund for FY2016-2017.
HF288
Water Service Taxation
Summary | Details
House Ways & Means Committee

Exempts from the state sales tax the sales price from the sale or furnishing by a water utility of a water service in the state to consumers or users. 
HF291
Collective Bargaining
Summary | Details
Signed

Makes changes to several employment matters involving public employees, including collective bargaining, educator employment matters, personnel records and settlement agreements, and city civil service requirements.
HF295
Minimum Wage
Summary | Details
Signed

Prohibits a county or city from providing for any terms or conditions of employment that exceed or conflict with the requirements of federal or state law relating to a minimum or living wage rate, any form of employment leave, hiring practices, employment benefits, scheduling practices, or other terms or conditions of employment.
HF335
Public Recreational Use Area Tax Credit
Summary | Details
House Ways & Means Committee

Provides a tax credit and other benefits for private land owners who make land and water areas available for public recreational purposes.   
HF477
Hotel/Motel Tax Exemption
Summary | Details
House Ways & Means Committee

Extends the length of a room rental to qualify for the state and local hotel/motel taxes from 31 consecutive days to 90 or more consecutive days.
HF517
Gun Law Changes
Summary | Details
Senate Floor

Makes several provisions related to carrying, possessing, acquiring, and using weapons, including allowing the possessing of pistols and revolvers by individuals under age 14, permitting concealed carry at the State Capitol, and justifiable use of reasonable and deadly force (stand your ground).
HF518
Workers' Compensation
Summary | Details
Signed

Makes several provisions related to workers' compensation.
HF573
School Board Powers
Summary | Details
Senate Floor

Allows a school board to exercise any power, not inconsistent with the laws of the general assembly, related to the operation, control, and supervision of the public schools located within its district boundaries.
HF575
Bottle Bill Repeal and Replace
Summary | Details
House Ways & Means Committee

Repeals the beverage containers control law and replaces it with new recycling, litter control, and community enhancement programs.
HF597
The WISE Solution for Water Quality
Summary | Details
House Ways & Means Committee

A permanent $180-200 million/year that flows into the Natural Resources and Outdoor Recreation Trust Fund, at least 60% of which would have to be used for specific water quality.
HF607
Alcoholic Beverage Control
Summary | Details
House Floor

Makes several changes concerning alcoholic beverage control and matters administered by the Alcoholic Beverages Division of the Department of Commerce.
HF609
Hotel/Motel Tax
Summary | Details
Senate Ways & Means Committee

Permits the Amana Colonies in the State to jointly impose the local hotel and motel tax upon the renting of any lodging within the district.
HF612
Water Quality Programs
Summary | Details
House Appropriations Committee

Establishes new water quality programs, makes appropriations related to water quality, and creates a state water service excise tax and a related sales tax exemption.
HF619
State Park Fees and Privileges
Summary | Details
House Ways & Means Committee

Authorizes DNR to establish fees for camping, use of rental facilities, and other special privileges at state parks and recreation areas under the DNR's jurisdiction.
HF90
Raceway Facility Sales and Use Tax Rebate
Summary | Details
House Ways & Means Committee

Modifies the sales and use tax rebate to the owner or operator of a raceway facility.
HSB43
Local Option Sales Tax
Summary | Details
House Ways & Means Committee

Makes changes to the process for approving and imposing a the local option sales and services tax.
SF130
FY17 Deappropriation
Summary | Details
Signed

Deappropriates $117 million for the current fiscal year (FY2017), which ends on June 30, 2017.
SF14
Sales Tax Increase
Summary | Details
Senate Ways & Means Committee

Increases state sales tax rate from 6 percent to 6.375 percent and provides for the transfer of sales tax revenues to the natural resources and outdoor recreation trust fund.
SF167
State Sales and Use Tax
Summary | Details
Senate Ways & Means Committee

Increases the state sales and use tax to 6.375%, and provides for the transfer of sales tax revenues to the natural resources and outdoor recreation trust fund. Amends the transfer of use tax revenues to the SAVE fund to 15.6863%.
SF176
IEDA Technical Corrections
Summary | Details
Senate Unfinished Business Calendar

Makes technical corrections to IEDA programs and projects.
SF217
Enhance Iowa Fund
Summary | Details
Senate Appropriations Committee

Makes contingent appropriations of $25 million to the Enhance Iowa Fund.
SF257
Bass Fishing Tournaments
Summary | Details
House Floor

Establishes requirements for bass fishing tournaments on public waters and requires a permit to conduct such tournaments.
SF362
Pathogen Transmission
Summary | Details
House Floor

Provides that a county or district fair is not liable for damages caused by a pathogen transmitted from a location at a fair event where an animal is kept for more than three hours.
SF38
Individual Income & State Sales and Use Taxes
Summary | Details
Senate Ways & Means Committee

Repeals the individual income tax and increases the state sales and use tax rates.
SF456
Des Moines Water Works Restructuring
Summary | Details
Senate Unfinished Business Calendar

Creates a regional water authority and regional water authority board to assume the transfer of powers, duties, assets, and liabilities of a water utility.
SF482
Water Quality/Wastewater Treatment
Summary | Details
Senate Appropriations Committee

Modifies existing wastewater treatment program, establishes new water quality programs, and creates a water service excise tax and sales tax exemption.
SF493
Recreational Lake/Water District Bonding Authority
Summary | Details
House Ways & Means Committee

Gives combined benefited recreational lake and water quality districts the same power to issue bonds that cities have.
SJR9
General Fund Expenditure Limitation Constitutional Amendment
Summary | Details
House Appropriations Committee

Proposes an amendment to the Iowa Constitution that limits state spending to 99% of revenue estimates, or 104% of the revenue estimates for the current fiscal year (whichever is greater).
SSB1162
Hotel/Motel Tax Exemption
Summary | Details
Senate Ways & Means Committee

Modifies hotel/motel tax exemption.
SSB1181
Federal Block Grant Appropriations
Summary | Details
Senate Floor

Appropriates federal block grants for federal fiscal year 2018 & 2019.
 
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