Iowa Association of 
Business and Industry  

Legislative News


The Voice of Iowa Business Since 1903 

 

May 1, 2007

In this issue you'll read:

2007 Legislative Session Adjourns

Representative Switches Party, Thins Democratic Majority in House

2007 Session Report Card

Employment
Workers' Compensation

Liability Issues

Health Care

Environment

Taxes

Misc.


STAFF:

Mike Ralston
President
515/235-0562

Government Relations Team:

John R. Gilliland
Senior Vice President, 
Government Relations
515/235-0566

Kellie Paschke
Vice President, 
Government Relations
515/235-0567

Tess Dickinson
Government Relations Coordinator
515/235-0561


ABI ADVISORY COUNCIL


Resources & Links

ABI Political Education & Action Center
for
-Issue Alerts
-Write Your Legislator
-ABI Voting Records

Iowa Prosperity Project
for
-2007 Officials
-Register to Vote
-Issue Education


For your own FREE
Prosperity Project website, click here.

www.iowaabi.org


Upcoming ABI Events - Mark Your Calendar!
Click Here to Register

Workers Comp Seminar
May 23 - Des Moines
May 24 - Bettendorf

ABI Annual Convention
June 13 to 15 - Okoboji

Workforce Solutions Tour
July 10 - Waterloo
July 12 - Spencer
July 17 - Atlantic
July 19 - Des Moines
July 26 - Burlington

Creating a Drug-Free Workplace Solutions Tour
August 7 - Oskaloosa
August 9 - Mason City
August 14 - Sioux City
August 16 - Clarinda

Employee Drug Testing Compliance
September 27 - Ankeny

ABI Environmental Conference
October 1 & 2 - Coralville

Manufacturing and Distributors Conference
October 16 - Coralville


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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2007 Legislative Session Adjourns
 

Shortly after midnight Saturday, the Iowa General Assembly adjourned for the year.  Many business leaders are calling the session one of the most challenging ever as it related to business issues.  Despite playing a defensive role throughout the session, ABI was able to promote a pro-active growth agenda; maintaining Iowa ’s economic progress and keeping the state from falling backward was paramount.  

“ABI takes seriously its responsibility to its members and the business community at large to work for an environment in which companies can succeed, grow and create jobs,” said ABI President Mike Ralston .  “The 2007 legislative session presented many challenges in that regard.  In the end, ABI members worked with legislators and the Governor in such a way that negative proposals did not advance and select pro-business issues, such as increased insurance–pooling options, did.”  

A complete analysis of all the important legislative proposals will be completed in the coming days, but below is a summary of the final outcome of a number of key items.   


Representative Switches Party, Thins Democratic Majority in House  

Representative Dawn Pettengill (R-Mt. Auburn) announced yesterday that she was leaving the Democratic Party.  She changed her voter registration, became a Republican, and will be a member of the Republican Caucus in the Iowa House.  The Democratic Majority in the House is now 53 to 47.  

One issue of contention between Representative Pettengill and the House Democratic Leadership was legislation which would have dismantled Iowa ’s 60-year-old Right to Work law.  ABI appreciated her strong support for maintaining Iowa ’s law and her steadfast opposition to proposed changes (the association also appreciated the support of other House Democrats with regard to this issue). 


2007 Session Report Card  

Employment

 

 

 

SF 413 – Guts Iowa ’s Right to Work law by allowing unions to collect fees from non-members.  Amended to apply to public sector unions only.  Passed Senate 28-21 on March 8.

 
FAILED TO PASS

 

 

Workers’ Compensation

 

 

 

SF 424/HF 914/SF 584 – Would repeal employer choice of medical provider in workers’ compensation claims, and instead allow employee to choose.  Allows employee to seek own care at employers’ expense without notice of injury to employer for up to 90 days.

 
FAILED TO PASS

 

 

SF 341 – Would allow workers’ compensation claims to be made in Iowa for injuries suffered by an employee while working outside the state, but domiciled in Iowa .  Would toll statute of limitations for potential claims in Iowa .  Passed Senate 30-19 on March 29.

 

FAILED TO PASS

 

 

HF 676 – allow claimants to reopen an award or agreement for settlement of worker’s compensation benefits based on changes in earning capacity that were known at settlement but not adequately reflected at time of settlement.

 
FAILED TO PASS

 

 

HF 797 – repeals apportionment of successive injuries from benefits previously paid.

 FAILED TO PASS

 

 

HF 743 – Eliminates use of scheduled injuries and allows for additional workers’ compensation payments for an injury resulting in a reduction in the employee’s earning capacity.

 
FAILED TO PASS

 

 

SF 421 - a "consensus bill" sponsored by the Workers' Compensation Advisory Committee where all stakeholders are represented. Includes a provision regarding specific exclusions in work comp policies as well as some provisions related to balance billing by health care providers.

 
PASSED

 

 

Liability Issues

 

 

 

SF 520 – Creates a private cause of action for consumer fraud with overly broad definition of deception and fraud, allows attorney fees, allows treble damages for willful violations.

 
FAILED TO PASS

 

 

SF 538 - Creates a cause of action for parents to recover damages for loss of consortium or loss of services resulting from injury or death to a child of any age.  Passed Senate 37-13 on April 3. Passed House 56-40 on April 26.

 
PASSED

 

 

Health Care

 

 

 

HF 790 – Allows small employers to pool employees to purchase health insurance, and provides wellness incentives.  Passed House 97-0 and Senate 49-0.

 
SIGNED

 

 

SF 382/HF 769 – mandates expanded insurance coverage for broadly defined mental illness, alcohol and substance abuse, including eating disorders, reading difficulty and sexual disorders.

 
FAILED TO PASS

 

 

SF 514 – Creates new healthcare mandates for coverage of certain enteral formulas, audiological services and hearing aids for children, and vaccinations for human papilloma virus.

 
FAILED TO PASS

 

 

SF 508/HF 791– Creates new healthcare mandate for coverage of prosthetic devices. Passed Senate 37-11 on April 4.

 
FAILED TO PASS

 

 

Environment

 

 

 

HF 497 – Implements increased fee structure for water withdrawal and use.

FAILED TO PASS

   

 HF 800 – permits negotiated reimbursement amounts paid by distributors to dealers, redemption center operators, and dealer agents for empty beverage containers.

 
FAILED TO PASS

 

 

Taxes

 

 

 

HF 326/SSB 1242 – Combined or “unitary” corporate income tax reporting for companies domiciled outside of Iowa .

FAILED TO PASS

 

 

HF 854/SSB 1361 – Increase in statewide sales tax from five to six cents to replace school infrastructure local option (SILO) tax.  Includes use tax on materials purchased by manufacturers and road use tax on vehicle purchases.

 
FAILED TO PASS

 

 

SF 604 – Reclassifies apartments and manufactured homes from commercial to “residential-commercial” over 7 years, and freezes residential “rollback” at 45.6%.

 
FAILED TO PASS

 

 

HF 931 – Provided commercial property owners owing property valued at less than $300,000 a $320 tax reduction.  Reduces the growth rate for assessed valuation of commercial and industrial property from four to one percent.

 
FAILED TO PASS

 

 

HF 319 – Updates the Iowa code for research and development tax credits consistent with the Internal Revenue Code.

 SIGNED

 

 

Misc.

 

 

 

HF 810 – would establish a prevailing wage rates for all public construction projects including repair, maintenance, renovations and new construction.  Would set wages and benefits from union collective bargaining agreements adding significant costs and liabilities of public projects, costing taxpayers millions because lack of competitive bidding.

 
FAILED TO PASS

 

 

SF 472 - Requires DOT administrative rules to regulate railways on private property for close-clearance. Provides reimbursement to property owners for signs and installation.

 PASSED

 

 

SF 475 – Prohibits below cost sales of petroleum.

FAILED TO PASS

 

 

SF 427– Adds additional protected classes beyond federal standards creating additional causes of action under the Iowa Civil Rights Act.  Passed House 59-37 and Senate 34-16 on April 25.

 
PASSED

 

 

SF 512/HF 798 – Regulates private contracts of pharmacy benefit managers.

FAILED TO PASS

 

Iowa Association of Business and Industry
904 Walnut Street, Suite #100
Des Moines, IA  50309
www.iowaabi.org
515-280-8000 / 800-383-4224