Legislative Action Picking up at the State House
The third week of the 2022 legislative session wrapped up Thursday. The Legislature is starting to kick things into full gear as lawmakers held dozens of subcommittee meetings and passed numerous bills out of committee.
This week, ABI’s public policy team attended subcommittee and committee meetings to track several bills related to employment matters that you can read about below.
Two of ABI’s 2022 legislative priorities are advancing. In addition to ABI supported workforce legislation, the Governor and Legislature have introduced tax reduction and reform proposals.
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Governor, Senate and House Republicans all Unveil Significant Tax Cuts & Reform Package - A Comparison: |
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This week saw the emergence of tax reform and reduction plans from Gov. Kim Reynolds, and the majority Republicans in both the House and Senate. The three bills have a number of similarities and a few key differences.
- ABI Position: Support
- Reduce personal income taxes over four years to 4.0%
- Eliminate the tax on retirement income in 2023
- Remove the tax on capital gains upon the sale of stock related to employee stock ownership plans (ESOPs).
- ABI Position: Undecided
- Does all of the same things as the Governor's bill but does not include the reduction to corporate income taxes.
- ABI Position: Support
- Mirrors the Governor’s tax treatment of ESOP capital gains, retirement income and retired farmer cash rent income.
- Individual income taxes would reduce to a flat rate of 3.6% over five years
- Lowers the corporate income tax rate 20% from 9.8% to 7.8% and limits refundability of certain business tax credits.
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Employment Legislation Under Consideration at the Capitol: |
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Gov. Reynolds’ Workforce Legislation
The legislation for Gov. Kim Reynolds’ proposal to address workforce priorities has not been filed yet. We are still waiting to see the language and will keep ABI members updated as soon as the bill is filed.
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HSB 511: Increasing Child Care Slots
- ABI Position: Support
- The House Human Resources Committee passed legislation that will allow for an increase of the number of young children that may be watched by an individual child care worker.
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- ABI Position: Support
- House and Senate Education Subcommittees advanced legislation that expands eligibility for those seeking to qualify for a last dollar scholarship under the Future Ready Iowa program.
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SF 496: Prohibiting Low-Wage Noncompete Agreements
- ABI Position: Undecided
- The House Commerce Committee approved legislation that would null and void any noncompete agreement where an individual would earn a monthly wage that is less than or equal to $14.50 an hour.
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- ABI Position: Against
- A Senate Judiciary Subcommittee signed off on legislation that would mandate all businesses in Iowa to use the federal e-verify system.
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SF 485: Pregnancy Accommodations
- ABI Position: Against
- A proposed state law that would require employers to provide reasonable accommodations for employees based on pregnancy or childbirth advanced out of subcommittee this week.
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December Unemployment Rate Update: |
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Iowa’s unemployment rate decreased in December to 3.5%, according to the Iowa Workforce Development (IWD). This is down from 3.7% in November, as well as 3.7 from one year ago. IWD also reports the total number of unemployed Iowans decreased by 3,800 to 57,900 in December.
Iowa’s workforce increased by 5,200 between November and December. The total number of working Iowans in December was 1,604,800. IWD reports this is an increase by 45,200 from one year ago. IWD also reports the labor force participation rate increased to 66.9%.
“More than 45,000 Iowans joined the employed last year as Iowa reignited its focus on job growth and getting citizens back to work,” Director of Iowa Workforce Development Beth Townsend said. We intend to build on this momentum this year by using our Reemployment Case Management and other improvements to help more and more Iowans find new careers in 2022.”
Click here to read Iowa Workforce Development’s latest news release.
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Other Key Bills to Watch: |
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- ABI Position: Undecided
- Following efforts by the Governor and many legislators that stalled last year to increase the market share of ethanol blended in fuels in Iowa this legislation moved out of subcommittee and the full House Ways and Means Committee this week.
- Work remains to bring all parties together, especially regarding who pays for the conversion of existing fuel infrastructure that would be required to be modified or installed under the bill.
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- ABI Position: Against
- A bill banning certain practices by health plans and health plan administrators had both a House and Senate hearing this week.
- Promoted by pharmaceutical companies and some patient groups and others would make it difficult for health plans to evolve away from name-brand drugs as generic and biosimilar alternatives reach the market.
- It has been estimated that such a practice could add up to $75 million in costs to Iowa’s private sector health plans.
- This bill passed out of the House Human Resources Committee this week.
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OSHA Withdraws COVID-19 Vax-or-Test ETS Mandate |
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This week, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) withdrew its vaccination and testing Emergency Temporary Standard (ETS) for private employers with 100 or more workers. This latest development comes after the U.S. Supreme Court blocked the ETS earlier this month and allowed the appeals process to continue for the lawsuits challenging the ETS. OSHA has asked the Sixth Circuit to dismiss these lawsuits.
“Although OSHA is withdrawing the vaccination and testing ETS as an enforceable emergency temporary standard, the agency is not withdrawing the ETS as a proposed rule,” a statement on OSHA’s website reads. “The agency is prioritizing its resources to focus on finalizing a permanent COVID-19 Healthcare Standard.”
To establish a COVID-19 Healthcare Standard, OSHA must undergo a formal rulemaking process. This will require a notice-and-comment period.
Click here to read OSHA’s update in the Federal Register.
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Watch: Weekly Business Report with Emily Schmitt |
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Emily Schmitt, Chief Administrative Officer and General Counsel for Sukup Manufacturing, shares her insight on child care.
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From the Desk of Kelsey Smith: |
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Buy ABI Saves You Dollars and Adds Value to Your Business |
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Kelsey Smith
Marketing and Communications Director - ABI
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Photo: Quad Cities Regional Business Journal
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Top Supporters - Governor: |
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