First Funnel Deadline Approaching, Unemployment Insurance Reform and Tax Bills Advance and More

Just Two Weeks Until the First “Funnel” Deadline at the Capitol

We are four weeks into the 2022 legislative session under the golden dome, and Iowa lawmakers are two weeks away from their first legislative deadline, commonly known as the “funnel.”

February 18 is the final date for most Senate bills and joint resolutions to be reported out of Senate committees and most House bills and joint resolutions out of House committees.
There are a few exceptions to the funnel deadline, which include appropriations and ways & means bills.

You can learn about the latest action happening at the Capitol by joining the public policy team of JD Davis and Brad Hartkopf as they brief ABI members via a legislative update this morning at 8:00. If you would like to register, please contact Brad Hartkopf. These zoom updates are exclusively for ABI members.

ABI’s public policy team is tracking several bills of interest to business and industry, which you can read more about below. You can learn more about ABI’s legislative priorities here.

The House Advances ABI’s Top Legislative Priority in Unemployment Insurance Reform

This week, the House Labor Committee approved HSB 631, which is a comprehensive workforce bill introduced by Governor Reynolds that aims to return Iowans who are without employment back to the workforce more quickly.

ABI’s top priority in 2022 is modernizing Iowa’s unemployment insurance system and turning that into a re-employment system.
The Iowa Legislature took a significant step forward on this issue by passing HSB 631 out of subcommittee on Tuesday and then approving it through full committee on Wednesday.

Workforce: Division 1 of the bill does a number of important things including:

Minimizing the maximum amount of time an individual can be on unemployment from 6 months to 4 months.
Reinstates the one-week waiting period.
Defines “misconduct.”
Enhances suitable work requirements.

Tort Reform: Division 2 of the bill enacts hard caps on noneconomic damages for medical malpractice cases and also hard caps on cases against the owner or operator of a commercial motor vehicle, which ABI also supports.

HSB 631 is a critical bill that will help address workforce challenges in this state. You can read the full analysis of the legislation here. The legislation could be debated as soon as next week in the Iowa House.

Contact your House member and ask them to support HSB 631.

Find your legislator here. Iowa House Republicans are holding forums and you can find that schedule here. You can find the forums for the Iowa House Democrats here.

Watch: Weekly Business Report with JD Davis and Brad Hartkopf

ABI Vice President of Public Policy JD Davis and ABI Director of Public Policy Brad Hartkopf discuss House Study Bill 631.

Activity Continues This Week with Efforts to Reform and Reduce Taxes

The House and Senate Tax Committees scheduled time this week to consider their respective tax bills in full committee. While the House ultimately canceled their meeting, the Senate Ways and Means Committee gave their plan, SSB 3074, a hearing and passed it out of full committee with two technical amendments. Watch the Senate committee hearing.

Gov. Kim Reynolds also held a press conference at the parent company of ABI member Corporate Image to signal she was ready to negotiate with the House and the Senate while reinforcing her position that corporate income taxes in Iowa are uncompetitive and that reductions should be included in the final work product of collaboration between the House, Senate and the Governor. Read more from Radio Iowa.

ABI public policy staff is encouraging the continued push to include corporate relief in all proposals, while ensuring members that file at the individual level see a net reduction. If you have any questions, please reach out to JD Davis or Brad Hartkopf.

See the full comparison included in last week’s newsletter.

Other Bills of Interest to ABI Members

In addition to priority legislation, ABI is tracking several pieces of legislation that would affect members.

Guns in Employer Parking Lots

Lawmakers from the Senate advanced SF 2143 this week during a subcommittee meeting. The bill provides that an employer must not prohibit an employee “from carrying, transporting, or possessing a firearm or ammunition” if the firearm or ammunition is out of sight and locked inside the employee’s car on the employer’s property. An employee would include a contract employee or volunteer.
ABI Position: Against

E-verify

The Senate Judiciary Committee advanced SF 339 this week. The bill would mandate all businesses in Iowa to use the federal e-verify system. This legislation would impose severe penalties on businesses, including revoking all business licenses for an entity that commits a second violation. ABI has concerns over the contracting language in the legislation and the ability of a member of the public to file a complaint against any business.
ABI Position: Against

Copies of Employee Files

SF 355 would require an employer to provide an employee with one copy of the employee’s personnel file at no cost. This could be administered electronically. It passed out of the Senate State Government Committee with an amendment.
ABI Position: Neutral

Limiting the Implementation of Solar Farms

A bill that requires commercially-owned solar panels installed on agricultural land to have a corn suitability rating (CSR) of 65 or lower passed out of subcommittee on Wednesday. SF 2127 also requires a commercially-owned solar panel field installed on agricultural land to be not less than one-half mile distance from surrounding solar panel fields and not less than 1,250 feet from the nearest adjacent landowner. CSR is defined in the legislation to be the most recent ratings determined by the Iowa State University Extension and Outreach for different types of soil for potential row-crop productivity.
ABI Position: Tracking

Pizza Dough Roller Bill

A bill to create an exception for people under 18 years old to operate power-driven pizza dough rollers with specific safeguards passed out of a Senate subcommittee with recommendation of an amendment and then the Senate Labor and Business Relations Committee this week. SSB 3072 adds new language to a provision in Iowa Code that prohibits people under age 18 from operating certain power-driven bakery machines.
ABI Position: Tracking

Federal Spotlight: Attracting Employees to Manufacturing Careers

According to ABI’s partner, the National Association of Manufacturers (NAM), the labor shortage will continue with very minimal growth each year between 2024 to 2031. However, the manufacturing sector added 349,000 employees last year. According to NAM Chief Economist Chad Moutray, this addition was the most since 1994.

Recently, NAM held its Creators Wanted campaign in Pella, and partnered with the Manufacturing Institute, Pella Corporation, and Vermeer. Learn more about the initiative to attract new workers to manufacturing careers here.

Iowa Workforce Development Board Openings

ABI always appreciates those who apply for and serve on state and local boards and commissions. Each year, ABI shares with members openings on state boards. It’s a great way for members to help shape the direction of Iowa. For example, ABI members have served on the Iowa Workforce Development (IWD) Board, the Environmental Protection Commission and Judicial Nomination Commission for their Judicial Districts, Civil Rights Commission, STEM Councils and several others.

This spring, there will be business member openings on the IWD board. A number of ABI members currently serve on the board and you can learn more about the board here. It is a position that requires confirmation by the Iowa senate. If you are interested in bringing your expertise and experience to this board or others, please contact Brad Hartkopf.

Nomination Deadline Approaches for Leadership Iowa Host Communities

Would your town make a great host for a Leadership Iowa session? Is there a particular topic that would allow your city to shine? Showcase your community with a nomination! The deadline to submit your community nomination is next Wednesday, February 9.

The nomination process is a quick and easy online form.

Click below to nominate your community as a potential host.

Nominate Your Community

From the Desk of Mike Ralston: Providing Value for Your ABI Membership

Mike Ralston, President

ABI

All of us on the staff at ABI have an incredible perk as a daily part of our jobs. We have the opportunity to learn what it takes to have a successful business. Our teachers are the very best found anywhere and they are you, ABI members.

One thing you teach is that providing value for customers is Job One. If that doesn't happen, there is no reason for your customers to buy your products or services. Well, we have customers at ABI, we just happen to call them members. And we better be providing you with value for your investment in the association.

In that regard, ABI and the ABI Foundation produce the best public policy advocacy in Iowa, meetings and events that can help your business, and community and leadership development programs that can improve your community.

Because of your counsel and participation, all of these services and programs are constantly being improved.

That's important and your investment is never, ever taken for granted.

All of that is a lead-in for me to tell you that your counsel and participation has led to the development of yet another fabulous Taking Care of Business Conference. The 2022 conference will be held in Dubuque June 14-16 and there is great excitement about the event.

In fact, the 2022 conference is shaping up to be the very best ever. You will find terrific venues and high-value, nationally-known speakers. You will find fun golf and social events. And of course, you will find the very best business networking in Iowa. You truly do not want to miss this event!

I urge you now to mark your calendars for February 24 - the day conference registration opens! And on behalf of ABI Chair Jack Hasken and the ABI Board of Directors, I look forward to seeing you in Dubuque. You will be glad you came!