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2022 LEGISLATIVE SESSION UPDATE
WEEK 6
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Last week marked the first funnel deadline of the legislative session. It was a busy week as legislators pushed bills through subcommittees and committees to keep them alive past the legislatively imposed deadline. Many bills did not make the deadline, leaving them "dead" for the session.
On Thursday, Governor Reynolds signed into law the first bill of the 2022 legislative session. House File 2316 increases the state’s public education budget for fiscal year 2023 by 2.5% per pupil, resulting in $159 million in new money for Iowa’s K-12 public schools.
On Wednesday, the House passed their tax reform bill on a 61-37 vote. Their proposal would gradually decrease the income tax rate until all Iowans pay a 4% "flat" rate by tax year 2026. Also, beginning in tax year 2023, there would be no retirement income tax and the bill would introduce new exemptions for retired farmers. Iowa House Democrats offered six amendments to the bill that lost and one amendment that was withdrawn. The House tax plan is now eligible for consideration in the Senate. Senate Republicans have their own plan (SF 2206) to lower the income tax rate to 3.6%, reduce the corporate tax rate to 7.8%, and remove $141 million of corporate exemptions. It would also fund water quality and outdoor recreational programs by shifting the current local option sales tax and applying it statewide.
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House and Senate Release Budget Targets
On Tuesday, the Senate released their overall budget targets for FY 2023. The total budget target is $8,201.7 billion, the same amount Governor Reynolds released in her budget in January.
The new spending highlights from the Senate Budget proposal include:
- Net Increase in Spending – $76.8 million, a 0.9 percent increase
- Total New Spending – $283 million, a 3.5 percent increase
- New funds to K-12 schools – $159 million, 57 percent of all new spending
- Funds transportation equity and continues to address per pupil equity
- Provides an increase of $71.2 million for mental health funding, eliminates the county property tax levy, and provides property tax relief to Iowa families
On Thursday, the House released their spending plan for the FY 2023 state budget. Their budget target is $8.2738 billion. This is an increase of $149.9 million over the current year spending level of $8.1249 billion. The largest increase goes to the state's local school districts. These increases are included in HF 2316, which the Governor signed into law on Thursday afternoon.
Below is the funding breakdown of various budget subcommittees:
| The net overall spend difference between the House and the Senate is roughly $72M (with the House having the higher overall budget). The budget will be impacted by negotiations on tax reform and the March Revenue Estimating Conference could result in some changes to the overall budget targets. |
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Bills on the Move
HF 2408 (Formerly HSB 688) - Food Deliveries
- Requires a food delivery service to have an agreement with a restaurant before making deliveries. Prohibits the service from using the image, or other material, from a restaurant, without permission and requires a delivery service to make a disclaimer that it is independent. Requires delivery services meet various standards for carrying food safely, including from carrying passengers or smoking or vaping while making deliveries.
- PASSED 23-0
- Floor Manager: Rep. Nordman
SF 2275 (Formerly SSB 3093) - Unemployment Reductions
- UE: Requires a one-week waiting period for unemployment. Reduces the calculations for maximum benefits to sixteen weeks. Defines misconduct and gives examples. Lowers the amount for suitable wages. Allows for any ALJ decision to be appealed to the district court without going through the Employment Appeals boards. Makes decisions more broadly applicable rather than binding only the parties. Torts: Limits the liability of employers for torts/damages related to truck/commercial vehicle accidents.
- This week, LSA also released a fiscal note on the bill.
- PASSED 9-5
- Floor Manager: Sen. Schultz
- As previously reported, The House bill, HF2279, has been approved by the Labor Committee and Representative Bousselot will be the floor manager. That fiscal note can be read here.
- Moreover, Senator Dickey will floor manage SF2249, out of the Senate Labor Committee. This bill is similar to SF 2275, but has more extensive provisions and reductions.
SSB 3012 - Banning Automated Traffic Enforcement
- Bans the use of automated traffic enforcement devices. Prohibits the DOT and the DPS from sharing information to enforce such violations through existing compacts, unless the compact specifically authorizes sharing such information. Requires local governments to stop using such devices by July 2022 and voids any local ordinances but deems tickets mailed before then to be valid.
- PASSED 9-6
- Floor Manager: Zaun
SF 2160 - Utilities and Pipelines
- Utilities: Strikes the exclusion for utilities from eminent domain provisions on condemnation for public uses.
- Pipelines: Increases pipeline inspection fees. Includes the economical delivery of a hazardous liquid that benefits the public in the definition of public convenience for pipelines.
- This bill passed out of subcommittee on Tuesday, but was pulled from full committee consideration Wednesday. It did not meet the funnel deadline, therefore will not advance.
HSB 718 - Endow Iowa Credits
- Reduces the amount of the Endow Iowa credits that can be claimed by one taxpayer in a year from 5% of the $6 million cap to no more than $100,000.
- Passed out of subcommittee Thursday, 3-0
HF 2316 - 2.5 SSA
- Sets the SSA at 2.5%. For the school year 2022-23, makes the regular program per-pupil cost equal the regular program cost plus the supplemental and $5. Makes the appropriation for transportation equity equal to the amount needed to fully fund transportation equity payments. Changes the property tax replacement formula. Other: Exempts the bill from deadlines for passing the SSA after the submission of the budget by the Governor.
- The House PASSED the bill 57-39 (2/10)
- The Senate PASSED the bill 31-17
- The Governor signed this bill into law on Thursday afternoon
HSB 647 - Medical Freedom Act
- Strikes the current prohibitions against businesses requiring proof of COVID immunizations and enacts a broad restriction against schools, businesses, employers and governments from asking about medical treatments, immunizations and other matters, including immunization passports, a prohibition on offering incentives, and on other related matters. Prohibits businesses from requiring masks based on the medical history/immunization of a person. Establishes liability provisions.
- AMENDED & PASSED 14-8
- FM: Jacobsen
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The tourism and hospitality industry was decimated due to the COVID-19 pandemic. The industry is starting to see some recovery, but much work is still left to be done. Increased tourism investment will lead to a healthier economy and a strong workforce for the entire state. The following initiatives will assist with the recovery of the hospitality industry. Learn more on the
website. |
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The full 2022 legislative calendar can be found here. Below are the key dates of interest.
JANUARY 10 – First day of session (Iowa Code Sec. 2.1)
JANUARY 11 - Governors Condition of the State Address
FEBRUARY 18 – Final date for Senate bills and joint resolutions to be reported out of Senate committees and House bills and joint resolutions out of House committees (First Funnel)
MARCH 18 – Final date for Senate bills and joint resolutions to be reported out of House committees and House bills and joint resolutions out of Senate committees (Second Funnel)
APRIL 19 – 100th calendar day of the session (Per diem expenses end) |
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