Week 12 of the Iowa Legislature

The Iowa legislature just finished its 12th week under the golden dome, and lawmakers are continuing to advance legislation. Legislators addressed several issues the ABI public policy team is tracking. The legislature is less than a month away from reaching the 100th calendar day of the session, which is April 19.
Here are some of the bills of interest to business and industry that the ABI public policy team tracked this week:

SF 2372 / HSB 552: House and Senate Advance Important Tax Policy Sought by Members

The Senate has passed SF 2372 and the House Ways & Means Committee has passed HSB 552. Both bills contain reductions in the bank franchise tax. This tax was not considered in the broader personal and corporate reform and reduction bill that was passed and signed by the Governor earlier this session. Both bills also have language that adjusts the application of a tax on the manufacture of foods for human consumption to align the application of this tax with how manufacturers have understood the intent of the law. An administrative rule published by the Department of Revenue created a situation where both the Department and taxpayers agreed that the best way to create a common understanding of the application of the tax was to codify one. ABI staff will now work to coordinate the final passage of these agreed upon tax matters.

• Status: Alive
• ABI Position: For

HF 2384: Pharmacy Benefits Manager Bill Remains Under Consideration in Iowa Senate

As you have read in this space previously, ABI public policy staff is working to influence the final version of a Pharmacy Benefits Manager (PBM) bill that aids local, rural, independent pharmacies in their interactions with PBMs who are hired by health insurance companies to control prescription drug costs. Local pharmacies want certain standards of conduct and robust regulatory and audit provisions placed upon PBMs. Our goal is to aid in the passage of a bill that addresses all the points of the legislation identified as important by local pharmacies while making sure that there is no collateral damage financially to the prescription drug plans that our members secure for their employees. ABI has identified a path that will do that and we are sharing it with members of the Senate as that body considers the House bill before them.

As we noted last week, the current version of HF 2384 would regulate all private sector pharmacy benefit plans, including ERISA plans, that are now only subject to federal regulation. For more information contact JD Davis by email or by phone at 515-979-1212.

• Status: Alive
• ABI Position: Against

SF 2361: Second Workforce Bill - Contains ABI Priority School to Work Program Changes

SF 2361 was voted out of the Senate Ways and Means Committee on Thursday, March 31. It contains a provision that will allow for the training of individuals to oversee students that participate in the program, relieving school staff from this function but still allowing students to earn high school credit for the programs that expose them to job opportunities local ABI members. The bill also asks school districts to report if school to work programs are available to their students. House and Senate versions of this bill vary and ABI staff will be working to coordinate a final bill that can be signed by the Governor.

• Status: Alive
• ABI Position: For

SF 2370: Aircraft Omnibus Bill

The House Ways and Means Committee passed SF 2370 this week. ABI is in favor of this proposal, which would define aircraft as “any contrivance now known, or hereafter invented, used or designed for navigation of or flight in the air, for the purpose of transporting persons or property, or both'' for purposes of the sales and use tax exemptions. Current law requires the aircraft to be in a scheduled or nonscheduled FAA operation in order to qualify for exemptions from the sales and use tax. This update under the bill would mean sales and use tax exemptions apply to general aviation aircraft. The Senate passed this bill on March 23.

• Status: Alive
• ABI Position: For

SF 2378: Bottle Bill

This week, the Iowa Senate advanced SF 2378, which changes Iowa’s Bottle Bill law. Iowa lawmakers have introduced proposals every year. SF 2378 would add high alcoholic content beer and canned cocktails to the definition of “beverage” in the state. Furthermore, it raises the handling fee from one cent to three cents, allows retailers to opt-out of redeeming cans and codifies that distributors get to keep the five cents from unredeemed cans. The House has their own version of legislation that could be debated as early as next week. Learn more at the fiscal note here.

• Status: Alive
• ABI Position: Undecided