Week 11 at the Iowa Legislature
The 11th week under the golden dome was an important one for Iowa business and industry. The Iowa House and Senate each passed legislation linked to ABI’s top priority for the 2022 legislative session. The bills aim to modernize the state’s unemployment insurance trust fund and bolster Iowa’s workforce.
Iowa House and Senate Approve Versions of Unemployment Insurance Reform
On Wednesday, both the House and Senate passed historic legislation that will modernize and transform Iowa’s unemployment insurance system into a re-employment system. The House acted first by amending and passing HF 2355. Their version of the bill reduces the maximum amount of time an individual can be on unemployment from 6 months to 4 months. The bill also shortens business closing benefit time from 9 months to 6 months, defines “misconduct,” enhances suitable work requirements, streamlines the appeals process and modernizes the guide for interpretation. These reforms come as the state has implemented a Reemployment Case Management program to help more Iowans return to the workforce.

The Senate then amended the House bill by adding the one-week waiting period back into the legislation. The legislation is back in the House. 

Further, the bill adds language to state that if an employer’s failure to respond timely or adequately was due to untimely notification by Iowa Workforce Development, the overpayment will not be charged to the employer’s account. ABI is also supportive of this provision in the legislation.
  • Status: Passed House; Passed Senate
  • ABI Position: For
HF 2384: Pharmacy Benefit Managers
This Tuesday, ABI asked members to contact their legislators and request they oppose language in HF 2384, commonly known as the Pharmacy Benefit Manager (PBM) bill, and the amendment legislators were also considering. The underlying bill aims to change some PBM practices and aid small, independent and rural pharmacies. ABI supports that goal, but opposed costly provisions in the bill that did not serve the goal. Thanks to ABI members' efforts, the Iowa House amended the bill to modify these costly provisions that would have been costly to ABI member company health insurance plans and ultimately employee costs for health care. The bill has moved to the Iowa Senate, where ABI will seek further changes to preserve the goal of the legislation and reduce unnecessary costs.
 
ABI’s larger members with self-insured ERISA plans need to be aware that the House legislation – for the first time in Iowa – seeks to regulate large employer ERISA plans. This will have serious cost impacts to those plans and ABI will be asking Senators to exclude these plans from final legislation. If you would like more information or would like to contact your senators and need help with that please contact JD Davis via email or by calling 515-979-1212. You can also send a letter here.
  • Status: Passed House
  • ABI Position: Against
HF 2200: Direct Health Care Agreements
The Iowa Senate passed a bill this week on a 33-16 vote to allow unregulated direct health care agreements to be sold between a provider and a patient, or the patient’s representative. Direct health care agreements are not the same as traditional health plans and do not cover all of the various services under traditional health plans. The Iowa House already passed this bill with a 90-9 vote.
  • Status: Passed House; Passed Senate
  • ABI Position: Against
Aircraft Omnibus Bill
The Iowa Senate this week passed a bill that provides sales tax exemptions on parts and service of general aviation aircraft. ABI previously testified in a subcommittee earlier this month in favor of SF 2370. This bill expands the aircraft repair and maintenance sales and use tax to general aviation, providing those companies with the same sales tax status in Iowa as commercial aviation. Iowa’s community colleges prepare students for careers in aircraft repair, and the hope is that this bill makes it easier and more competitive for in-state repairs on general aviation aircraft. You can learn more from the fiscal note.
  • Status: Passed Senate
  • ABI Position: For
Second Tax Bill Passes Senate
SF 2372 passed the Iowa Senate earlier this week. 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 many other ABI member companies utilize. When lawmakers between the Senate, House and the Governor negotiated the broader corporate and individual income tax bill, many of these changes in credits were considered and deleted. ABI staff will work to keep the beneficial provisions in the legislation when being considered by the House. For more information, contact JD Davis.
  • Status: Passed Senate
  • ABI Position: For
School to Work Bill Advances House Ways and Means
ABI is supportive of the school-to-work initiative outlined in Gov. Kim Reynolds’ comprehensive workforce package. As ABI has previously explained, school-to-work programming has connected high school students to careers in manufacturing, such as the jobs provided by ABI member companies. 

Gov. Reynolds’ bill provides the opportunity for non-school employees/personnel to provide this type of programming within school districts. The hope is that this streamlines and encourages further participation.

The House Ways and Means Committee advanced HF 2569 this week and it is now on the Ways and Means calendar and remains eligible for debate. 
  • Status: Alive
  • ABI Position: For
ABI Regional Meetings Set to Take Place in May
Following the conclusion of each legislative session, ABI’s public policy team hits the road and travels across the state to present the results of the session to ABI members. Regional meetings will take place in Atlantic, Cedar Rapids, Fort Dodge, Fairfield and Des Moines. Watch future newsletters for more information on dates, times and registration.
IIPAC Investors to Receive Exclusive Comprehensive Preview of Races for the Iowa House and Senate
The filing deadline for candidates ended March 18 and ABI members can find a list of candidates for the June 7, 2022 primary here. This is a significant year because it is the first election after the Iowa Legislature passed new maps for redistricting at the end of 2021.

Those who have invested in ABI’s political action committee, IIPAC this year will receive a quarterly newsletter that provides insight and analysis of where things stand in races for the Iowa House and Senate. With the filing deadline passing, this newsletter will break down:
  1. Which legislators are running for re-election,
  2. Who has decided to run for a seat in the opposite chamber of which they currently sit, and
  3. Who is retiring. 

There will also be a number of contested primaries between incumbents and open seats as well. This kind of analysis is just one of many exclusive benefits available only to those who contribute to IIPAC. The newsletter will be sent out to donors by April 1. If you haven’t invested yet, do so today!
Federal Spotlight: EPA Proposes Good Neighbor Plan
The U.S. Environmental Protection Agency recently proposed a “Good Neighbor” Plan to set NOx emissions standards and limitations on power plants and industrial sources across 23 covered states starting in 2026. This is tied to the EPA’s ongoing effort to ensure states meet their obligations under the 2015 Ozone National Ambient Air Quality Standards (NAAQS). 

Sidley Austin’s expert legal team briefed members of the National Association of Manufacturers to help companies understand what this proposal means, and to advocate for a workable final rule. ABI is a member of NAM, and encourages members who are interested in this topic to reach out with any feedback. The EPA plans to take comment and hold a public hearing on the proposal for 60 days once it is published in the Federal Register. 
Federal Spotlight: SCOTUS Nominee Hearings Took Place This Week
The U.S. Senate held confirmation hearings for Judge Ketanji Brown Jackson, who President Joe Biden has nominated to fill the seat of Supreme Court Associate Justice Stephen Breyer. Justice Breyer announced his plans to retire earlier this year. 
Judge Jackson is a graduate of Harvard Law School and was a federal district judge prior to becoming a circuit judge on the United States Court of Appeals for the DC Circuit in 2021. 

Learn more about Judge Jackson here.

Photo: whitehouse.gov
Consul General of Canada Visits ABI
Earlier this month, we had the pleasure of a visit from The Honorable Ariel Delouya, Consul General of Canada (pictured far right). 

The Office of the Consul General is a longtime ABI member/partner.
Watch: Weekly Business Report with Nataliya Boychenko Stone
Nataliya Boychenko Stone, employee benefits consultant, shareholder, at ABI member Holmes Murphy joined the Weekly Business Report to share her perspective about the war in Ukraine and how the Iowa business community can help. She was born in Ukraine and first came to Iowa when she was 14 as an exchange student. She moved to Iowa for college in 2001. 

She recently penned an article that ABI members might have read on the Holmes Murphy page, or in the Business Record's Fearless newsletter.
From the Desk of Sean Solberg:
US Companies Losing Their Patent Rights in Russia
Sean D. Solberg
Shareholder, Patent Attorney Fredrikson & Byron, P.A.
In addition to the economic steps taken to punish Russia for its invasion of Ukraine, the U.S. government’s actions have now expanded to the patent world, which will ultimately impact U.S. companies with Russian patents.

On March 4, the U.S. Patent and Trademark Office announced that it had terminated engagement with the equivalent patent and trademark office in Russia (called “Rospatent”), along with the Eurasian Patent Organization, which is also based in Russia, and the IP office in Belarus.
Subsequently, on March 11, the USPTO terminated its Global Patent Prosecution Highway (“GPPH”) relationship with Rospatent. The GPPH is a program that allows for acceleration of the patent application process in one GPPH member country based on approval of the corresponding application in another member country. As a result of this termination, a U.S. patent application will no longer be fast-tracked based on approval of a corresponding Russian application and any applications previously placed on the fast-track will be removed.
Members Making Headlines
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Submit your member news to: communications@iowaabi.org
PARTICIPATE: U.S. Chamber America Works Survey
ABI is partnering with the U.S. Chamber of Commerce and other chambers nationwide to better understand the underlying issues of the ongoing workforce challenges in business and industry. This is part of its America Works Initiative and ABI members can provide insight by participating in a quick survey.
With the America Works Initiative, the U.S. Chamber of Commerce is tackling a workforce shortage issue each month over the next several months to address elements critical to expanding the workforce, such as child care. Explore related topics here.
Supporters - Governor