ABI Priorities are Alive as the First Funnel Deadline Arrives!

ALIVE:

HF 2516/SF 2260 - Governor’s Work-Based Learning Initiative: Both the House and Senate have moved legislation funnel-proofing Governor Reynolds’ legislation that seeks to improve  work-based learning programs that expose high school students to local employers and prepares workers for in demand professions. Much of this is accomplished through a new Workforce Opportunity Fund. ABI supported the Fund but has been working on an appropriate manner to fill the fund. The Senate version used a portion of the Unemployment Compensation Reserve Fund. The House version was silent on funding. ABI believes language can be developed satisfying all parties in the near term. Stay tuned for more developments.

• ABI Position: Undecided

SSB 3119 - DNR Air Dispersion Modeling: Members of the ABI Environment Committee have worked for years to reign in the costs of discretionary requests from the Air Bureau at the Iowa Department of Natural Resources regarding air dispersion modeling for small sources and small modifications to major sources. ABI members always want to follow federal and state laws and all regulatory requirements but do not want to bear the costs of expensive air dispersion modeling if it is not required in federal law, Iowa Code or Iowa Administrative Rules. SSB 3119 was approved by the Senate Commerce Committee and contains a provision that will relieve Iowa businesses of these costs. Many thanks to Governor Reynolds’ team and those members of the Senate Commerce Committee that helped ABI advance this provision.

• ABI Position: Support

SF 319 - Drug and Alcohol Testing Reform: A key legislative priority this year is the passage of a bill that would make long overdue changes to Iowa’s drug and alcohol testing law. The legislation implements proper jurisprudence as it relates to employers who are alleged to have violated this area of the law. Right now, an employer is assumed guilty until proven innocent. The bill would flip the burden of proof to the plaintiff to prove their case against the employer. It would also provide more flexibility to the employer and employee when exchanging drug and alcohol testing results. Right now, an employer must use certified mail, return receipt requested. The change would allow the employer to offer in-person exchange, electronic exchange and the current method to the employee. The bill tightens up the definition of “safety sensitive position” and also creates an evidentiary standard the plaintiff must satisfy when attempting to prove their case. The legislation has already cleared the Senate and House Labor and Workforce Committee. We’re working to get this bill passed off the House floor and down the Governor Reynolds’ desk.

• ABI Position: Support 

HF 2524/SF 2106 - Unemployment Practices Codified: The Senate Workforce and House Labor and Workforce Committees have signed off on legislation related to two practices that Iowa Workforce Development (IWD) utilizes for unemployment insurance. The bill codifies that four weekly work searches must be completed for those receiving unemployment benefits. It also requires IWD to verify the identity of the claimant via multi-factor authentication prior to releasing unemployment to the claimant. The purpose is to cut down on fraud and allow claimants to receive benefits in a timely fashion.

• ABI Position: Support

SF 455 - Topsoil and Stormwater Regulation: Supporting policies that will facilitate the expansion of affordable and available workforce housing is a priority for ABI. The Senate and the House Local Government Committee have approved legislation that would set one standard for cities and counties to follow when it comes to the regulation of topsoil and stormwater. The parameters of the standard are spelled out in the bill. Legislation like this is critical for homebuilders as they seek to build and provide workforce housing across our state.

• ABI Position: Support

HF 2388/SF 2231 - Vinyl Siding Regulation: Another bill aimed at reducing unnecessary costs in housing has come out of the both the House and Senate Local Government Committees. The legislation preempts cities and counties when it comes to the regulation of styles and materials used for residential building exteriors. It ensures that local governments can’t enforce an ordinance and motion related to styles and materials that exceeds the state building code. There are a few exceptions laid out in the legislation. 

• ABI Position: Support

HF 2401 - Pharmacy Benefit Managers: In 2022, ABI opposed a bill targeting Pharmacy Benefit Managers (PBMs), until several provisions were removed that were costly to private sector health care plans sponsored by or members for their employees. Once the provisions were removed ABI was neutral and the legislation passed unanamously. HF 2401 contains many of the costly concepts that were jettisoned in 2022 and for that reason ABI opposes the measure. The legislation was passed by the House Commerce Committee. ABI will continue to engage on this issue.

• ABI Position: Oppose

HF 2099/SF 2357 - Insurance Division PBM Regulation: Part of the 2022 PBM legislation that passed and mentioned above conferred some regulatory duties to the Iowa Insurance Commissioner. As is not uncommon, as the Insurance Commissioner develops their new powers, tweaks to original provisions are required. That is the premise of these two bills that have passed out of their respective Commerce Committees. ABI is monitoring the legislation as common ground is established between the regulators and the regulated.

• ABI Position: Neutral

SF 108 - Mandatory E-verify: A bill that has been around the Capitol for over a decade now has passed the Senate Judiciary Committee. It requires employers of all sizes to utilize the federal e-verify system when they are hiring someone. The legislation allows any member of the public to file a complaint with Iowa Workforce Development alleging that an employer hired someone illegally. Penalties in the bill are onerous as well as a second violation would mean a business could no longer operate in Iowa. Several organizations are opposed to the bill including ABI.

• ABI Position: Oppose

HF 2551/SF 2372 - Right of First Refusal: In 2023, the Iowa Supreme Court ruled that the Iowa Legislature acted improperly when it attached a provision it deemed unrelated to a separate bill. The provision granted a right of first refusal for Iowa’s incumbent electric transmission owners to construct newly identified transmission projects. Senators and Representatives of both political parties have advanced the legislation that was stricken by the Court to reassert their right to control the proceedings of the Legislature.

• ABI Position:  Neutral

SF 2201 - OSHA Walk-around Rule: In response to a proposed U.S. Department of Labor (DOL) rule that would allow third parties to accompany OSHA inspectors on some on-site safety inspections, the Senate Workforce Committee has passed legislation that some claim would meet the spirit of the new DOL rule without allowing third parties access to inspections. ABI believes the DOL rule is an attempt to put union representatives in non-union facilities and strongly opposes the rule and is working with federal partners and others to prevent adoption through all means possible. ABI is concerned that non-compliance with the rule could result in Federal OSHA replacing Iowa OSHA in administering these inspections. ABI continues to work the issue.

• ABI Position:  Neutral

SSB 3172 - Governor’s Version of Boards and Commissions: During last year’s interim, a boards and commissions review committee was convened due to legislation that was signed into law that reorganized state government for the first time in 40 years. The committee developed recommendations and delivered those to the Legislature and Governor Reynolds. The governor has offered legislation that reflects those recommendations. The bill would eliminate 111 of Iowa’s 256 boards and commissions (43%). It would also require the boards and commissions that would remain intact to be reviewed every four years to determine whether they should continue to be in existence. The bill has passed out of the Senate State Government Committee.

• ABI Position: Support 

HSB 710 - House Version of Boards and Commissions: The House has their own version of boards and commissions reform. They’re considering a much narrower reform as they propose eliminating 49 of them. This bill has moved out of the House State Government Committee.

• ABI Position: Neutral

SF 574 - MEGA Sites: The Senate and a House Ways & Means Subcommittee have approved legislation that would give the Iowa Economic Development Authority (IEDA) additional incentives to attract large scale investment from in-state or out of state companies. Projects that include more than $1 billion in capital investment, create high paying jobs, are geared towards advanced manufacturing, biosciences or research, located at a certified site plus a few other parameters are eligible for the incentives. It’s imperative to pass the legislation as it could unlock a once in a generation type of investment in Iowa.

• ABI Position: Support

DEAD:

SF 2074 - Driving Under the Influence of Cannabidiol: Legislation that would allow the possession of a medical cannabis card as a defense for an individual that has been charged with operating a vehicle while under the influence has failed to advance past the first funnel.  ABI argued that the legislation failed to recognize that the medical cannabis legislation restated an employer’s right to maintain drug-free workplaces and there was no exception for employer-owned vehicles.

• ABI Position: Neutral 

HSB 105 - Mandatory E-verify: A House Judiciary Subcommittee considered identical e-verify legislation that the Senate Judiciary Committee passed. During the subcommittee, testimony was given by a variety of groups that were against the bill including ABI. Though it was initially thought the bill would pass out of subcommittee with recommendation of amendment, the bill died during the subcommittee and wasn’t revived before the end of the funnel deadline.

• ABI Position: Opposed

SF 2026 - Whistleblowers: During the last hours of funnel week, legislation that would have created a new private-sector whistleblower law that shielded employees, legislators and legislative staff from discovery motions in court proceedings was scheduled for Senate Workforce Committee debate but ultimately pulled from consideration. The bill was individually sponsored by a rural lawmaker involved in agriculture and it remains a mystery as to why the bill was brought forward. ABI staff will keep this initiative front-of-mind as we monitor the legislative process through the end of the session.

• ABI Position: Neutral