Legislature Works To Meet Second Funnel Deadline

The Iowa Legislature had a busy week as lawmakers worked around the clock to meet their second deadline. Friday, March 18 marks the second funnel. This means Senate bills and joint resolutions had to clear the full Iowa Senate and a policy committee in the House and the same rule applies for House bills and joint resolutions. As with any proposal, there are exceptions to the rule and procedural moves, such as placing a bill on the Unfinished Business calendar. This action can take place to keep legislation alive until the end of session. ABI’s public policy staff rounded up a list of bills the team has tracked this session. Learn more about the issues and each bill’s status (alive or dead) below.

Bills

Alive Workforce SF 2275/HF 2279: Unemployment Insurance Reform HF 2527: Second Workforce Bill SF 2129/HF 2165: Future Ready Iowa/Last Dollar Scholarship Expansion Data Privacy HF 2302: Affirmative Defenses - Cybersecurity  Employment Related SF 2196: Employee Personnel File Copies  HF 724: Adoption Mandate HF 2411: Prosthetic Devices Under Workers’ Compensation SF 496: Prohibiting Low-Wage Noncompete Agreements Healthcare SF 2231/HF 2384: Pharmacy Benefit Managers SF 2276/HF 2200: Direct Healthcare Agreements Childcare SF 2268/HF 2131: Child Care Ratios HF 2198: Minimum Age for Employees at a Child Care Center Miscellaneous SF 2325: IEDA Bill SF 2287/HF 2387: Catalytic Converters

Dead Employment Related SF 361: Drug and Alcohol Testing Reform HF 2257: Pregnancy Accommodations SF 2250: Guns in Employer Parking Lots SF 339: Mandatory E-Verify Healthcare HF 2199: Non-medical Switching HF 2545: Medical Freedom Data Privacy SF 2208/HF 2506: Consumer Data Protection

Click to Read Bill Summaries and ABI's Positions

SF 2231/HF 2384: Pharmacy Benefits Management Bill Remains Under Consideration - Threatens Huge Cost Increases to Employee Health Plans Rep. Brian Best and Sen. Mike Klimesh are preparing a comprehensive amendment to a bill that makes changes to the role of pharmacy benefit managers in Iowa. Health insurance providers use pharmacy benefit managers to control the cost of prescription drugs in health care plans they provide to employers for their employees. ABI has registered against the bill as introduced, because many of the cost controls currently used would be eliminated. Proponents argue that some changes need to be made to support independent and rural pharmacies. The most costly of the changes in the current legislation does not serve that purpose, but rather benefits out-of-state pharmaceutical manufacturers and market-dominant pharmacies. For an idea of the costs being considered, it is estimated that the original bill language could cost private sector health plans as much as $175 per covered person per year. ABI members will need to be on high alert next week as the comprehensive amendment is released and a call to action may be required. Members can learn more about this issue on ABI’s legislative update Zoom this Friday at 8:00 am or by contacting JD Davis. ABI Position: Against Status: Alive

Watch: Weekly Business Report

ABI Director of Public Policy Brad Hartkopf provides an update on the unemployment insurance reform bill under consideration by the Iowa Legislature. A new poll from the Des Moines Register shows an increased percentage of Iowans from each party support unemployment insurance reform. Find your legislator at IA Votes.

SF 2361/HF 2527: School to Work Initiative Moving Forward A School to Work provision is in the Governor’s broad workforce initiative legislation. It has proved very helpful in exposing high school students to jobs at ABI member companies, particularly in manufacturing. The program extends high school credits to students that participate in the off-campus programming at ABI member facilities. The success of the program and a barrier to statewide use is the capacity of school personnel and the willingness of local school districts to participate. The Governor’s proposal breaks down these barriers. The legislation would allow for the certification of a non-school individual to lead the program after pledging to complete a rudimentary training program, thus removing the program from the heavy workload of local school staff. The legislation would also have local school districts report periodically whether they are participating in such programs, letting ABI member employers know if there is an untapped opportunity to expose high schoolers to post-graduation job opportunities in their local communities. ABI Position: For Status: Alive

Senate Introduces and Advances Second Major Tax Bill Lawmakers have introduced SF 2372 and the bill is making its way through the Iowa Senate. The bill lowers franchise and premium taxes on banks and insurance companies. The bill also makes changes necessary for the tax treatment of “consumable foods” that are needed to align new administrative rules promulgated by the department of revenue with the tax reporting practices of these producers prior to the rule. The bill goes further by eliminating several tax credits such as those affecting computers and computer peripherals that several ABI member companies use. Many of these changes in credits were considered and deleted when the broader corporate and individual income tax bill was negotiated between the Senate, Governor and House. ABI staff will keep members informed on the progress of this legislation. For more information contact JD Davis. ABI Position: For Status: Alive

Iowa Unemployment Rate Drops in January

Iowa Workforce Development (IWD) reported this week that the state’s seasonally adjusted unemployment rate dropped slightly to 3.7% in January. December’s rate was 3.9%. This latest unemployment rate is slightly below the national unemployment rate for January, which increased to 4.0%.  IWD statistics show the state’s businesses added 3,000 jobs in January and the number of Iowans employed also increased. “Since January, more than 640 Iowans involved in our Reemployment Case Management program have found new jobs,” Beth Townsend, Director of IWD, said in the agency’s release. “We will work as hard as possible to keep that number growing.” Read more from the Iowa Capital Dispatch. Learn more about the Reemployment Case Management program here.

Iowa Senate Adopts Resolution for Ukraine

This week, the Iowa Senate adopted a resolution reaffirming the state’s relationship with Ukrainian people and supporting Ukraine’s efforts to remain an independent and autonomous nation.  Iowa has a sister-state relationship with Chekasy Oblast, which was established in 1996 under former Gov. Terry Branstad. Additionally, several communities in Iowa have sister-city relationships with Ukraine. Last year, the state exported more than $73 million of commodities to Ukraine and imported more than $3 million of commodities from Ukraine.  You can read the Senate’s resolution here. The Iowa House’s resolution, adopted last week, can be found here.

Federal Spotlight: Afghanistan and Ukraine TPS Eligibility

The U.S. Department of Homeland Security announced this week that Afghanistan would be designated for Temporary Protected Status for the next year and a half. This would only apply to individuals who are currently in the United States as of March 15, 2022 and meet additional security and background checks.  Earlier this month, Secretary of Homeland Security Alejandro N. Mayorkas also designated Ukraine for TPS for the next year and a half. This applies to individuals who have been continuously residing in the United States since the beginning of March 2022. Beneficiaries of TPS status can receive employment authorization documents and are not removable from the United States.  Read more from The Washington Post.

Federal Spotlight: President Biden Signs Executive Order on Digital Assets

Not only are discussions related to consumer protection taking place in the state, but they are also occurring at the federal level. Last week, President Joe Biden signed an Executive Order covering six priorities related to digital assets, which include policy development for digital asset systems. Read the White House Fact Sheet here.

ABI Attends Fairfield Little Achievers Groundbreaking

On Tuesday, Fairfield Economic Development Association held a groundbreaking for the Cambridge Little Achievers child care center. The new center, once built, will be over 14,000 square feet. Many ABI members contributed to this excellent project as well as Iowa Workforce Development and Iowa Economic Development Authority. Directors Durham and Townsend both spoke as well as community leaders. ABI President Mike Ralston, Executive Vice President Nicole Crain and Communications and Marketing Director Kelsey Smith had the privilege of attending the event. Child care is a workforce issue and one that ABI members have signified as a priority for the association. Congratulations to Josh Laraby and all the supporters of this project. To read more about the project, click here.

Photo: Fairfield Economic Development Association

From the Desk of Josh Malancuk, CPA, CMI

Plan for Iowa Real Property Tax Reductions If you've seen an Iowa property tax bill recently, you might have wondered if your taxes are too high. Well, your business sense is right on point. Odds are, they probably are too high because about 80% of the time, we find that companies are paying inaccurate property tax levels by as much as 20%-30%!

As an Iowa business, your property tax bill likely represents one of your largest tax burdens and it is highly likely that you are paying far above the fair, accurate and equitable amount. So, what’s the best approach to tackle the issue head-on? Keep Reading...

Members Making Headlines

Click on the headlines to learn about the latest ABI member news.

Care Initiatives donates $10,000 to 24/7 Black Leadership Advancement Consortium Photo: The Des Moines Register This Iowan knew she could improve COVID testing, but her lab was at a seed company. Would they help?

DMACC Y-ExCL Summer: Partner Employer Recruitment for Youth Program Grinnell Mutual partners with UnityPoint Health at Work to open on-site clinic

Submit your member news to: communications@iowaabi.org

ABI Members Invited to Attend Eastern Iowa Security Conference

Event by: Torus Technologies When: March 23, 2022 Location: Coralville, Iowa About: This educational event is for security-minded professionals with a keen interest in improving their organizations' security posture.

Learn More

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