Week 8 of the Iowa Legislature |
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There are two weeks left until the Iowa Legislature reaches its second deadline or the “second funnel.” Senate bills and joint resolutions must be cleared by the Senate and the corresponding policy committee in the Iowa House. The same rule applies for House bills and joint resolutions considered by committees in the Iowa Senate.
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ABI Joins Governor, Legislators at Tax Reform Bill Signing |
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Photo: Office of the Governor |
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On Tuesday, March 1, 2022, Iowa Governor Kim Reynolds held a signing ceremony for HF 2317, a bill that reforms and reduces individual and corporate income taxes in Iowa. The event was held at LBS, a bookbinding and packaging company based in Des Moines.
Instead of several progressive tax rates that charged businesses and individuals higher rates on higher levels of income, Iowa will now transition to a flat, single rate for both of these types of income tax payers.
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The change in taxing philosophy intends to reward work instead of taxing the next increment of income at higher rates. The bill also dramatically cuts individual tax rates from a current rate of 8.53% to a flat 3.9% in 2026. Corporations will also see reduction in tax rates over time, finally settling on a single flat rate of 5.5% for all corporate income taxpayers.
Mere hours after signing the legislation, Governor Reynolds trumpeted the tax cuts on national television in a response to President Biden’s State of the Union Address. The hope is that the juxtaposition is an invitation to individuals and businesses to take notice of Iowa when considering where to start or expand business and where to live, work and retire.
You can find the division-by-division description of the bill here.
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Update on Other Key Bills |
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ABI’s public policy team continues to track bills that are of interest to members and related to business and industry as lawmakers advance legislation out of their committees and chambers. |
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- The Iowa House passed the Iowa Economic Development Authority Bill, which allows a project under the Workforce Housing Tax Credit Program to get an additional one-year extension on a deadline if the housing business applies and shows the IEDA that this is needed due to “extenuating circumstances outside the control of the housing business.”
- Status: Passed Senate 45-0; Passed House 99-0
- ABI Position: For
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The Iowa House unanimously approved a bill that expands the eligibility of the Future Ready Iowa Last Dollar Scholarship program by allowing part-time students to apply. There is a similar bill that has passed the Senate Education Committee.
- ABI Position: For
HF 2521: Health Care Employment Agencies
- The Iowa House unanimously passed legislation that requires health care employment agencies to register every year with the Iowa Department of Inspections and Appeals and adds additional recordkeeping requirements.
- ABI Position: Monitoring
- The Iowa House Labor Committee approved a bill that creates an exception in Iowa law to allow people under 18 to operate power-driven pizza dough rollers with specific safeguards on the machines.
- ABI Position: Monitoring
- The Ways & Means Committee passed a bill that eliminates the current sales tax on the parts and service of general aviation aircraft. This provides the same sales tax status for general aviation as for commercial aviation in Iowa and makes the tax code competitive with our border states.
- ABI Position: For
HF 2198: Minimum Age for Employees at a Child Care Center
- The Iowa House approved a bill to amend Department of Human Services rules to allow employees and substitutes who are at least 16 years old to provide child care without additional supervision.
- ABI Position: Monitoring
HF 2200: Direct Healthcare Agreements
- ABI staff has been advocating against a bill that allows the sale of direct care agreements between individuals or groups of healthcare professionals and individuals. The Iowa House passed this bill and similar legislation is being considered in the Senate.
- ABI Position: Against
- The Iowa Senate passed a bill that requires scrap metal companies to comply with specific requirements for transactions related to catalytic converters, including recordkeeping procedures.
- ABI Position: Against
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Read more in-depth descriptions of each bill here.
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Federal Spotlight: Iowa Gov. Kim Reynolds Presents Republican Response to President Biden’s State of the Union Address |
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Photo: Facebook - Governor Kim Reynolds |
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Gov. Kim Reynolds delivered the GOP response to President Biden’s State of the Union Address Tuesday, the same day she signed Iowa’s new tax reform law.
According to a recent U.S. Chamber of Commerce straw poll, the top three issues the business community wanted to hear about were (1) inflation, (2) government overreach and (3) the workforce shortage.
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Delivering her remarks from Des Moines, the Governor highlighted the state’s response to the COVID-19 pandemic in business and education. The Governor also touted Iowa’s recent action on tax reform and the state’s ranking as one of the top 20 states with low unemployment rates during her speech.
You can read the full copy of Gov. Reynolds’ speech here.
You can read the full copy of President Biden’s State of the Union address here.
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Federal Spotlight: White House Task Force Worker Organizing and Empowerment Releases Report |
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This month, the White House’s Task Force on Worker Organizing and Empowerment published a report that addresses recommendations to promote worker organizing and collective bargaining for federal employees, as well as public and private-sector workers.
The task force recommended directing the Department of Energy (DOE) to continue strengthening U.S. manufacturing requirements across science and energy programs “to better ensure the technologies that are funded by the DOE are substantially manufactured in the United States.” On labor matters, the task force’s recommendations include instructing the Department of Labor to review rules and policies related to reporting for employer communications and campaigns related to unions, also known as “persuader” activity.
Another recommendation involves instructing the Department of Labor to “lead a coordinated, government-wide initiative to increase awareness” among employees about their right to organize and collectively bargain with their employers. Furthermore, the task force highlighted the Biden Administration’s support of the Protecting the Right to Organize (PRO) Act.
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ABI Attends Fairfield Manufacturers Association Event |
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ABI’s team traveled to Fairfield last week to provide a public policy update during Fairfield Manufacturers Association's first meeting of 2022. The event was hosted by Weaton Companies.
Prior to the meeting, the ABI team was given a factory tour of Weaton Companies, led by Nate Weaton and Matt Doty.
ABI is grateful for this opportunity to provide public policy insight to our members and learn more about Fairfield manufacturing.
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ABI President Mike Ralston and ABI Vice President of Public Policy JD Davis discuss the tax reform bill signed into law. |
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The registration deadline for Day on the Hill is Sunday.
Members will join ABI’s public policy team at the Iowa Capitol to connect with elected officials and talk about advancing key policy priorities important to business and industry. ABI will begin the day with a legislative update from Vice President of Public Policy JD Davis and Director of Public Policy Brad Hartkopf, as well as State Sen. Dan Dawson (R-Council Bluffs).
We hope ABI members take this opportunity to register today to join ABI’s team and other members for this important event filled with advocacy.
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From the Desk of the Iowa Secretary of State’s Office |
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Iowa Businesses Against Trafficking (IBAT) is a statewide recognition and education initiative from the Iowa Secretary of State’s office. IBAT strives to empower businesses to help in the fight to end human trafficking in Iowa through trainings and outreach. In 2020, the Iowa Attorney General’s office identified 558 sex trafficking victims and 158 labor trafficking victims. It’s time we stand-up against human trafficking.
By joining businesses are committing to Learn Something about human trafficking and Do Something to educate their community on this horrific crime. Since our launch on January 13, 2022 we’ve had over 450 businesses become a member of IBAT and we would love for YOU to as well.
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The Iowa Secretary of State also administers an address confidentiality program, Safe at Home (SAH). Which provides a legal substitute address, mail-forwarding and confidential voter registration/absentee voting to survivors of trafficking, domestic violence, and other violent crimes. For More information visit SafeatHome.iowa.gov
If you have any questions, please contact Safe at Home Outreach Coordinator, Sydney Fox at 515-725-0174 or Sydney.fox@sos.iowa.gov!
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ABI Members Advance Through Senate Confirmation Process |
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This week, as part of the Senate confirmation process, the Senate Labor and Business Relations Committee advanced the appointments of ABI members Mary Landhuis and Kelly Barrick to the Iowa Workforce Development Board. Barrick is from ABI member company CIBC Bank USA and Landhuis is with Lisle Corporation/EZ Way, Inc.
The next step in the Senate confirmation process requires two-thirds approval by the full Iowa Senate. If you’re an ABI member and interested in serving on a state or local board, find openings here.
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Mary Landhuis
Lisle Corporation/EZ Way, Inc.
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Click on the headlines to learn about the latest ABI member news. |
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