Legislative Session Updates
2023 Iowa Legislative Session
Week 17
The 2023 legislative session officially adjourned for the year at 12:33 PM this afternoon. It is an honor for Larry, Nick and I to represent you at the Capitol.
This session marked major changes in education, state government structure, property taxes, healthcare, economic development, as well as many other priorities of the governor’s office and the legislature. Governor Reynolds released the following statement on the conclusion of the 2023 session:
“Iowa’s national profile is rising, and Americans are taking notice as states around the country are looking to Iowa as a beacon for freedom and opportunity. This year's historic legislative session saw transformational education reform that kicked off a national school choice revolution, a consequential alignment of state government, much-needed property tax relief, and stability for our health care system across the state.
“Iowans will be able to look back upon our promises and know we delivered for them. Our state is on a new path, one that was forged by our hard-working people, has their families at the forefront, and is a place where everyone has the freedom to flourish.”
Below is a summary of the major legislation passed during the 17-week legislative session:
EDUCATION
HF 68 provided universal school choice, created flexibility for schools to increase teacher pay, provided public schools with approximately $1,205 in new funding for each resident student who attends an accredited non-public school, and increased flexibility for public schools to share operational functions through 2034.
HF 135 created a platform for prospective students at Iowa’s regent universities to have information they need to make smart choices regarding different career paths and student debt.
HF 604 provided teachers more tools in dealing with student behavioral issues in the classroom.
STATE GOVERNMENT REORGANIZATION
SF 514 reduced the number of cabinet-level state agencies from 37 to 16, creating significant savings for taxpayers and aligned state government structure and operations to improve collaboration among state agencies, create efficiencies, and elevate services to Iowans.
PROPERTY TAXES, ECONOMIC DEVELOPMENT, and HEALTHCARE SERVICES
HF 718 is expected to reduce property taxes by $100 million, provide additional property tax relief for older Iowans and military families and require property tax bill transparency.
SF 181 clarified legislative intent on the multi-residential assessment limitation and prevented a property tax increase of $112 million.
SF 549 established the captive insurance marketplace in Iowa, providing companies with the independence to self-insure and avoid some of the inefficiencies of the commercial insurance market. The bill also reformed the premium insurance tax rate, lowering the rate to 0.9% by 2027.
HF 617 established an independent review of utility rate making to determine if revised provisions or procedures would lead to more cost-effective rates for all consumers.
SF 577 Appropriated $6.5 million to a permanent Destination Iowa grant program and expanded commercial air service vertical infrastructure grants with an additional $10 million to fund commercial aviation terminal construction. The bill also increased funding for Renewable Fuels Infrastructure by $15 million.
HF 161 capped non-economic damage awards in medical malpractice cases to protect and improve Iowans’ access to health care services.
SF 561 established a state-funded Family Medicine OB Fellowship program to provide obstetrical training to up to 4 Family Medicine physicians per year in exchange for practicing in a rural community for a minimum of 5 years and increased Medicaid funding for mental health and substance use disorder provider reimbursement rates by $13 million.
HF 656 allows Iowa to become the first state to join the dental and dental hygienist interstate licensure compact to reduce barriers to license portability across state lines.
SF 75 established rural emergency hospitals as a new hospital licensure category to protect rural Iowans’ access to critical health care services in their communities.
SF 228 established a cap for non-economic damages in civil actions involving commercial motor vehicles to promote stability and certainty for Iowa trucking companies.
SF 542 expanded employment eligibility and work-based learning opportunities for young Iowans seeking to gain experience in the workforce.
News Clips:
2023 Iowa Legislative Session comes to an end after major GOP platforms enacted
Iowa Legislature adjourns 2023 session that saw major changes to education, state government
Iowa lawmakers adjourn 2023 legislative session
Week 16
This week, the Senate concurred to the House amendment to SF 478 AUDITOR INFORMATION and sent the bill down to the Governor on a 33-16 vote. Senator Bousselot, who managed the bill, said that the bill is needed to prevent the State Auditor from accessing personal information that is not needed for an audit. Democrats said that the bill will lead to increased fraud. After the passage of the bill, State Auditor Rob Sand said that the bill will allow government entities to hide records that are needed for audits.
The Senate also amended HF 685 MEDICAID RECOVERIES & HMO PREMIUMS to add provisions on nursing homes that previously had been in the Senate bill. This bill makes changes to Medicaid procedures and requirements for repayments by Medicaid recipients, including on recoveries from 3rd-parties and in tort actions and requires Medicaid payors to receive permission from HHS before filing certain legal actions.
On Thursday, Governor Reynolds signed the following bills into law:
HF 316: A bill for an act relating to value-added products or services offered by insurers or producers.
HF 570: A bill for an act relating to assault including assault on pregnant women and domestic abuse assault, and providing penalties.
HF 656: A bill for an act establishing the dentist and dental hygienist compact.
SF 135: A bill for an act relating to registered interior design and providing penalties.
SF 193: A bill for an act relating to the removal of human remains by a removal technician.
Updates on Notable Bills:
HF 471 MH SERVICES
Makes changes to MH/DD services. SA: Removes a person with only SA problems from eligibility for a state MHI. MHI: Designates the Independence MHI for specialized treatment of youth and Cherokee for the specialized treatment of adults. ChINA: Allows a guardian to enter into a safety plan during a ChINA and prohibits a safety plan as being construed as the removal of a child without a court order to that effect. Makes corrections regarding ChINA cases. Regions: Makes changes to governance and membership of boards. Adds additional services to the regions and reporting requirements by the HHS. Adoption: Requires an adoption petitioner to give any siblings of the person to be adopted at least 20 days’ notice before a hearing when on-going contact is in the child’s best interest. Allows for notice through regular mail. Includes circumstances where notice is not required. Incompetency: Requires the MH/DS region of residency to pay for the pre-trial costs of MH treatment for a person found to be incompetent to stand trial. Includes requirements for written status reports and on who can evaluate the person. Includes provisions on notice when a person is restored to competency. The Senate PASSED the bill 49-0; it now GOES to the Governor.
HF 630 HUMAN TRAFFICKING PENALTIES
Increases the range of penalties for human trafficking from an aggravated misdemeanor ranging to a Class C felony to a Class D felony ranging to a Class B felony, and to a Class A felony for specified offenses against minors. Prohibits deferred judgments or suspended sentences. The Senate PASSED the bill 49-0; it now GOES to the Governor.
SF 549 CAPTIVE INSURANCE COMPANIES
Enacts provisions on captive insurance companies. Defines such companies. Includes reporting requirements, tax payments on direct premiums, requirements to apply to the Insurance Commissioner for authority to issue various kinds of insurance, the duties of the Insurance Commissioner, timelines on examinations and on other matters. Re-enacts with new provisions on captive insurance companies. Tax: Lowers the insurance premium tax rate to 0.9%.The Senate PASSED the bill as amended 49-0; it now GOES to the Governor.
HF 357 DIRECT HEALTH CARE SERVICES
Defines direct services for health care agencies/entities and includes services by nurses, nurse’s aides, medication aide and medication managers. Excludes janitorial, housekeeping and meal preparation and various other licensed health care professionals, including PAs, physical therapists, speech pathologist and audiologists. Excludes certain contract work by health care workers that meets certain conditions. Retroactive to 2019. The Senate PASSED the bill 49-0; it now GOES to the Governor.
SF 554 PBM REVERSE AUCTIONS
Establishes a process through DAS for PBMs to participate in an on-line reverse auction to allow a PBM to counteroffer a lower price on a prescription drug to a multiple health plan prescription drug purchasing plan. Includes specifics on the bidding process, participants in the plan, timelines for starting the auctions and on implementing matters. Allows DAS to vacate an auction if it determines that the PBM bids are not below market prices. Delays use of the reverse auctions by self-funded plans with substantial participation by state employees for three years. Includes provisions on per-prescription fees from a PBA selected by a self-funded plan with substantial participation by state employees. The Senate PASSED the bill as amended 48-1; it now GOES to the House.
News Clips:
$500,000 increase for Iowa governor’s office budget
Iowa delegation gets biofuel roll backs out of debt ceiling package
Senate sends governor bill to limit State Auditor’s authority
Iowa lawmakers vote to dramatically increase human trafficking penalties
Week 15
This week the Senate passed SF 228 TRUCK ACCIDENT LIABILITY on a 31-19 vote, sending the bill to the Governor’s desk. The Senate passed SF 542 CHILD LABOR on a 32-17 vote, adding two amendments from Senator Dickey to the bill to change language that prohibited 16 and 17 year-olds from selling or serving alcohol in bars or in establishments with exotic dancing. The Senate also passed SF 569 PROPERTY TAX CREDITS, LIMITS & FEES on a 48-1 vote. Senator Dawson, who handled SF 569, said the property tax system in Iowa is unfair and in need of reform. He said that SF 569 is only the first step in a multi-year process to change the property tax system. Additionally, the Senate returned to the House SF 496 GOVERNORS EDUCATION BILL on a 34-16 vote with an amendment that struck most of the prior amendments added by the House. On Thursday, the House accepted the Senate amendment and subsequently passed the bill 58-37, sending it to the Governor’s desk.
Governor Reynolds appointed Kristen Stiffler as the new Executive Director of the Iowa Civil Rights Commission, as of Monday, April 24, 2023. Stiffler has served as the Hearing Officer for the Nebraska HHS and as the legal counsel to the HHS committee in the Nebraska Legislature. She has a JD from Creighton and a BA from Regis University. Reynolds said, “Generations of Iowans have dedicated their lives to advancing civil rights and the work of protecting those civil rights is a job I know Kristen will excel at. Her compassionate nature, experience in state government, and study of law make Kristen the right leader for the commission.”
Governor Reynolds also made additional appointments to state boards and commissions this week including the appointment of Sarah Martz to the Iowa Utilities Board. A full list of the governor’s appointments can be found here.
Updates on Notable Bills:
HF 158 ALCOHOL PLACEMENTS & INCENTIVES
Requires the ABD to adopt federal rules on the placement of alcoholic drinks and on inducements offered by brewers, distillers and wholesalers. Makes corrections related to government reorganization. The House PASSED the bill as amended 95-0; it now GOES to the Governor.
HF 681 FAIR SALES TAX EXEMPTION
Exempts the sale of tangible personal property and specified digital products furnished to county and district fairs from the sales tax. The House PASSED the bill 95-0; it now GOES to the Senate.
HF 599 UTILITY MATTERS
Small utilities: Deems that an electric public utility with fewer than 10,000 customers and electric co-ops are subject to the IUB on public utility RR crossings but strikes the authority in regard to pilot projects. Municipals:Deems that municipally owned utilities are subject to IUB authority on public utility RR crossings and if the utility offers local exchange services, for certain purposes. Strikes various requirements for such utilities but deems other duties do apply to municipal utilities. Deposits: Excludes some utilities from deposit rules. Other: Deems that all proceedings taking place before the effective date of the bill for establishing or operating a utility that have not been declared invalid shall be determined to be legally sufficient. The Senate PASSED the bill 50-0; it now GOES to the Governor.
SSB 1207 SUPERMAJORITY TAX INCREASE
Proposes a constitutional amendment to require a two-thirds supermajority vote in the Legislature to increase corporate or income tax rates and a Taxpayer Relief Fund to be used to reduce taxes. Allows lawsuits to be filed within one year. PASSED the Senate Ways & Means Committee 12-6.
HF 433 TO GO DRINKS
Excludes certain kinds of cups (plastic cups for one-time use, paper and foam cups, cups with a lid with a hold or a sealed pouch) from the definition of a sealed container for the open container law. The Senate PASSED the bill 50-0; it now GOES to the Governor.
HF 595 GOVERNORS FENTANYL PROPOSALS
Fentanyl: Makes manufacturing/selling/possessing more than 50 grams of fentanyl a Class B felony (50 years and up to $1 million in fines); for amounts between 5-50 grams a Class B felony (25 years and a fine between $5,000 and $100,000); for measurable amounts, a Class C felony and fine between $1,000 and $50,000. Death: Triples the sentence of a person who manufactures a controlled substance that results in death and doubles if it results in serious injury. Does not allow the sentence to be deferred or for the manufacturer to use protections for someone who assists a person who overdoses. Deems the act of manufacturing the substance to be the cause of death. Minors: Adds current enhancements for manufacturing meth in the presence of minors to the manufacture of controlled substances and increases the penalty by doubling the sentence. Strikes certain 99-year sentences for dealing meth with minors and doubles the sentence instead. Makes subsequent violations a Class A felony. Includes additional substances under provisions covering deliver of controlled substances to minors. Opioid Antagonists: Allows a health care provider to prescribe opioid antagonists to a secondary distributor and for a pharmacist to dispense them to a secondary distributor. Defines secondary distributors (law enforcement, EMS, health care providers, schools, county health departments, HHS). Allows a pharmacist to administer opioid antagonists instead of naloxone. Allows community-based rehab providers to have access to opioid antagonists. The Senate PASSED the bill 41-9; it now GOES to the Governor.
HF 617 IUB RATE-MAKING REVIEW
Requires the IUB to review current rate making procedures to determine if different procedures would result in more cost-effective rates. Requires the Consumer Advocate and rate-regulated utilities to participate. Allows other interested parties to participate and allows the IUB to use additional services. Requires recommendations by 1/2024, a study similar to the bill, with more specifics, and requires practices in other states be reviewed.The Senate PASSED the bill as amended 49-0; it now RETURNS to the House.
SF 571 BIOGAS LINES
States the importance of developing renewable biogas in Iowa. Establishes procedures for livestock operations to use gathering lines to collect biogas from anaerobic digesters and to cross into the right-of- way of secondary roads. PASSED Senate Ways & Means Committee 18-0.
News Clips:
Senate confirms two new members to Iowa Utilities Board
Iowa unemployment rate fell to 2.8% in March, workforce participation rate up
Bipartisan backing for House, Senate property tax plans
Senate confirms governor’s pick for top state tax official
Senate passes changes in Iowa child labor law
Governor’s priority issue of trucking liability protection clears legislature
Week 14
This week the House passed SF 494 PUBLIC ASSISTANCE OVERSIGHT on a 58-41 vote, sending the bill to the Governor's desk. The bill Requires the HHS to conduct an asset check on all members of the household of a SNAP recipient. Requires the HHS to enter into memos of understanding with any necessary department. Sets the income threshold at 160% of the FPL. The bill also Requires someone receiving Medicaid to cooperate with the CSRU and requires the HHS to redesign and implement a new computer verification system for income and eligibility for other kinds of public benefits by July 2024.
Representative Fry, who managed SF 494 on the floor, said that the new verification process will ensure that the recipients of benefits are eligible and could help the HHS identify applicants who are eligible for additional benefits. He said it will protect the state safety net. Opponents of the bill said that the new requirements create unnecessary hurdles and will lead to some eligible persons losing benefits.
Last Friday, Governor Reynolds made a series of appointments to Iowa’s state boards and commissions including the appointment of Erik Helland to the Iowa Utilities Board who will serve as chair of the board beginning May 1, 2023. A full list of this latest set of gubernatorial appointments can be found here.
Governor Reynolds also announced that Iowa will partner with Nebraska and Missouri to establish the Mid-Continent Clean Hydrogen Hub. The states have applied for a federal grant to fund the proposal. The proposed hub is expected to use the agricultural and industrial strengths of the three states in promoting and developing the use of hydrogen energy, improving technology and pipelines. Governor Reynolds said:
Together we have an opportunity to open new markets for agriculture while strengthening our commitment to American-made renewable energy. As the regions’ leading states, we understand the power of coming together to create innovative solutions that grow our economies for the future.
Updates on Notable Bills:
SF 549 CAPTIVE INSURANCE COMPANIES
Enacts provisions on captive insurance companies. Defines such companies. Includes reporting requirements, tax payments on direct premiums, requirements to apply to the Insurance Commissioner for authority to issue various kinds of insurance, the duties of the Insurance Commissioner, timelines on examinations and on other matters. Amended to lower the insurance premium tax rate to 0.9%. The House PASSED the bill as amended 99-0; it now RETURNS to the Senate.
HSB 245 CAUCUSES & REGISTRATION (now HF 716)
Caucuses: Requires a person voting at a caucus to have been a member of the party for 70 days prior to the caucus. Requires the person to be physically at the caucus to vote. Registration: Strikes a requirement for the state registrar (SOS) to use information from the electronic registration system to update information and allows the SOS to use information from other sources to update the statewide registration system. PASSED House Ways & Means Committee 16-9.
HF 685 MEDICAID RECOVERIES & HMO PREMIUMS
Makes changes to Medicaid procedures and requirements for repayments by Medicaid recipients, including on recoveries from 3rd-parties and in tort actions. Requires Medicaid payors to receive permission from HHS before filing certain legal actions. Contains other provisions. Tax: Establishes a 2.5% tax on the premiums of HMOs related to contracts for administering Medicaid services. Contains implementing provisions. The House PASSED the bill 98-0; it now GOES to the Senate.
News Clips:
More frequent verification of SNAP, Medicaid eligibility in bill headed to Iowa’s governor
Governor says mail-in ballots for Iowa Caucuses put first-in-the-nation status in jeopardy
Governor selects new chair for Iowa Utilities Board
Week 13
The thirteenth week of the 2023 legislative session has adjourned. This week, Governor Reynolds signed SF 514 STATE GOVERNMENT REORGANIZATION into law. The bill enacts provisions to reorganize all of state government. This reduces the number of cabinet level agencies from 37 to 16 and renames departments. It also reduces the votes needed in the Senate to confirm to 30 and increases the positions which are appointed by the Governor. The bill removes many administrators from the salary range and eliminates some protections for transferred employees and removes some from the merit system/collective bargaining system. Finally, this provides the AG authority over election misconduct and allows the AG to prosecute crimes even if the county attorney declines.
The House approved SF 496 GOVERNORS EDUCATION BILL on a 55-42 vote, and returned it to the Senate after amending the bill.
Updates on Notable Bills:
SF 462 MEDICAID RECOVERIES & MCO PREMIUMS: Makes changes to Medicaid governance, including on recoveries from 3rd-parties. Tax: Establishes a 2.5% tax on the premiums of HMOs related to contracts for administering Medicaid services. Contains implementing provisions. Adds provisions on nursing homes during a change in ownership. PASSED Senate Ways & Means Committee 15-1.
HF 265 MIDWIFE LICENSING: Establishes provisions for midwife licensing. Requires a license by July 2024. Includes exemptions for the Amish and Mennonites, Native American tribes and certain other persons. Requires an applicant to be 21 and to have completed certain training. Prohibits unlicensed persons from using the term licensed midwife. Limits the liability of a health care provider who accepts a transfer of a patient from a midwife. Establishes a board.PASSED Senate Ways & Means Committee 15-1.
Week 12
The twelfth week of the 2023 legislative session has adjourned. This week marked the end of the SECOND legislative funnel. Legislation failing to have passed a full committee vote in both the Senate and the House will no longer be eligible for consideration this year, with the exception of Appropriation or Ways & Means bills.
Governor Reynolds signed two bills into law this week. SF 75 RURAL EMERGENCY HOSPITALS and SF 262 PERSONAL DATA. The Governor provided the following comments on the two bills:
- SF 75: “This is part of our unwavering commitment to ensuring all Iowans, no matter where they live, receive the quality medical care they need and deserve. This bill is an impactful step in that direction, and it’s a pleasure to sign it into law.”
- SF 262: “In our digital age, it’s never been more important to state, clearly and unmistakably, that consumers deserve a reasonable level of transparency and control over their personal data. That’s exactly what this bill does, making Iowa just the sixth state to provide this kind of comprehensive protection.”
On Tuesday, Governor Reynolds appointed Mary Mosiman as the new Director of the Iowa Department of Revenue (IDR). Mosiman currently serves as the department’s Deputy Director and Tax Management Division Administrator. A certified public accountant, Mosiman’s career also includes having served as Iowa’s Auditor of State from May 2013 through December 2018, Deputy of Elections for the Iowa Secretary of State from January 2011 to May 2013, and Story County Auditor from January 2001 to December 2010.
Mosiman replaces Kraig Paulsen, who has served as the IDR Director since 2019. Since October 2021, he has served concurrently as Director of the Iowa Department of Management, a position he will retain as he manages the implementation of Governor Reynolds’ state government alignment initiative.
Notable bills to survive the second funnel (remain eligible to become law):
Enacts provisions to reorganize all of state government.
HF 595 / SF 508 GOVERNORS FENTANYL PROPOSALS: Fentanyl: Makes manufacturing/selling/possessing more than 50 grams of fentanyl a Class B felony (50 years and up to $1 million in fines); for amounts between 5-50 grams a Class B felony (25 years and a fine between $5,000 and $100,000); for measurable amounts, a Class C felony and fine between $1,000 and $50,000. Death: Triples the sentence of a person who manufactures a controlled substance that results in death and double if it results in serious injury. Does not allow the sentence to be deferred or for the manufacturer to use protections for someone who assists a person who overdoses. Minors: Adds current enhancements for manufacturing meth in the presence of minors to the manufacture of controlled substances and increases the penalty by doubling the sentence. Strikes certain 99-year sentences for dealing meth with minors and doubles the sentence instead. Includes additional substances under provisions covering deliver of controlled substances to minors. Opioid Antagonists: Allows a health care provider to prescribe opioid antagonists to a secondary distributor and for a pharmacist to dispense them to a secondary distributor. Defines secondary distributors (law enforcement, EMS, health care providers, schools, county health departments, HHS). Allows a pharmacist to administer opioid antagonists instead of naloxone.
SF 228 TRUCK ACCIDENT LIABILITY: Imposes a $5 million cap per plaintiff with incidents related to commercial motor vehicles. Employers will not face civil liability for negligent hiring of an employee if certain conditions have been met.
SF 507 PUBLIC FUND INVESTMENT / ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG): Restricts IPERS and other retirement systems and the Regents from contracting with public funds managers that take actions based on economic boycotts, or environmental or social criteria that are not solely based on the financial interest of the funds and the beneficiaries. Defines companies involved in the fossil fuel, firearms, ammunition, agriculture, timber, and mining industries as protected. Includes other definitions. Bans granting proxy authority that violates these conditions. Bans investments in companies that are engaged in economic boycotts. Bans state banks and credit unions from using these improper factors in loan decisions. Gives the Attorney General enforcement powers.
HF 265 MIDWIFE LICENSING: Establishes provisions for midwife licensing. Requires a license by July 2024. Includes exemptions for the Amish and Mennonites, Native American tribes and certain other persons. Requires an applicant to be 21 and to have completed certain training. Prohibits unlicensed persons from using the term licensed midwife. Limits the liability of a health care provider who accepts a transfer of a patient from a midwife. Establishes a board.
Notable bills failing to survive the second funnel (no longer eligible to become law):
HF 626 NON-MEDICAL SWITCHING: Prohibits health plans from limiting coverage of a prescription drug for a covered person if the person is medically stable, as determined by medical professionals, the person was previously approved for the drug by the coverage plan and the prescriber has issued a prescription for the drug in the last six months. Includes exceptions for equivalent generic drugs, for federal actions or the discontinuance of the drug. Requires that the plan have an option for a covered person to seek a coverage exemption and for expedited procedures for decisions. Authorizes the Insurance Commissioner to take necessary enforcement actions. Includes other provisions on coverage decisions.
Week 11
The eleventh week of the 2023 Iowa legislative session has adjourned. This week, the Senate passed SF 496 GOVERNORS EDUCATION BILL on a party-line vote. Senator Rozenboom, who managed the bill, described the bill as protecting the rights of parents to direct the education of their children. He said the majority of Iowans support the restrictions on any gender identification education in grade school and on restricting materials available in school libraries.
The Senate also approved SF 547 NO ELECTRONICS WHILE DRIVING on a 47-3 vote. Senator Lofgren said the current restrictions on texting and driving do not cover enough circumstances, and said widening the ban will make driving on the highways safer.
The final bill approved by the Senate was SF 506 CERTIFICATE OF NEED/BIRTHING CENTERS, on a 29-21 vote. Senator Edler said the bill is needed to update the Certificate of Need (CON) process and said IT should ease the shortage of birthing centers in rural Iowa. Edler said the CON process was federally-mandated in an effort to keep hospital costs down but that many states have eliminated the CON because it hasn’t worked as intended.
This week the Governor also signed a number of bills into law, including:
- HF 337: A bill for an act relating to the use of certain refrigerants.
- HF 202: A bill for an act relating to explosive materials including blasting agents, detonators, and destructive devices, providing penalties, and including effective date provisions.
- HF 113: A bill for an act relating to the state public defender pilot project for child welfare legal representation.
- SF 154: A bill for an act exempting hydro excavation equipment from certain size, weight, load, and permit requirements on highways.
- SF 157: A bill for an act authorizing certain persons to administer the final field test of an approved driver education course.
- HF 133: A bill for an act relating to refund payments made in connection with motor vehicle debt cancellation coverage.
- HF 205: A bill for an act relating to the distribution of certain barrel tax revenues collected on beer.
- HF 257: A bill for an act relating to third-party testers who administer the knowledge and driving skills tests required for a commercial learner’s permit or commercial driver’s license.
- SF 538: A bill for an act relating to prohibited activities regarding gender transition procedures relative to minors and including effective date and applicability provisions.
- SF 482: A bill for an act prohibiting persons from entering single and multiple occupancy restrooms or changing areas and other facilities in elementary and secondary schools that do not correspond with the person’s biological sex and including effective date provisions.
Updates on Notable Bills:
HF 605 ENERGY BENCHMARKING: Prohibits local governments from using energy benchmarking (requiring a decrease in the average energy used by a property or requiring that the property use less energy than a similar property). The House PASSED the bill as 61-34; it now GOES to the Senate.
HF 248 POWER PLANT EMISSION PLANS: Allows coal-fired power plants in Iowa to develop multi-year, reasonably cost-effective plans on managing emissions. Strikes the current requirement for such plans and updates. Allows for the advanced review and approval of pollution and emission projects and requires rate-regulated utilities to seek such review. Effective on enactment. The Senate PASSED the bill 41-9; it now GOES to the Governor.
HF 316 VALUE ADDED INSURANCE SERVICES: Excludes various value-added services from insurers that are offered at low cost from rebates or unfair discrimination. Requires the cost to the insurer to be reasonable in relation to the premiums paid by the insured. Requires the insurer to give the customer various information on the product and that it be offered in a non-discriminatory manner. Requires the insurer to be able to document that the product is offered in a non-discriminatory manner. Allows an insurer to offer such a service under a pilot project if data is needed to show non-discrimination. The Senate PASSED the bill 49-1; it now GOES to the Governor.
SF 284 PBM REVERSE AUCTIONS (now SF 554): Establishes a process through DAS for PBMs to participate in an on-line reverse auction to allow a PBM to counteroffer a lower price on a prescription drug to a multiple health plan prescription drug purchasing plan. Includes specifics on the bidding process, participants in the plan, timelines for starting the auctions and on implementing matters. Allows DAS to vacate an auction if it determines that the PBM bids are not below market prices. PASSED Senate Ways & Means Committee 13-5.
HF 265 MIDWIFE LICENSING: Establishes provisions for midwife licensing. Requires a license by July 2024. Includes exemptions for the Amish and Mennonites, Native American tribes and certain other persons. Requires an applicant to be 21 and to have completed certain training. Prohibits unlicensed persons from using the term licensed midwife. Limits the liability of a health care provider who accepts a transfer of a patient from a midwife. Establishes a board. The House PASSED the bill 91-3; it now GOES to the Senate.
HF 467 EXPLAINING HEALTH CARE BENEFITS: Requires a patient’s primary health care plan to give an explanation of benefits to a secondary health plan within 30 days of a request by the secondary plan. The House PASSED the bill as amended 90-4; it now GOES to the Senate.
HF 547 TERMINATING LEASES: Allows a tenant to terminate a lease early and without penalty if the tenant is the victim of domestic or sexual abuse, stalking or other crimes with a risk of death or injury. Requires written notice to the landlord and specific documentation. Makes the tenant liable for the rent in the month the tenant ends the lease. Deems that the tenant cannot be subject to a negative reference or fee due to the termination of the lease. Includes confidentiality provisions. Limits the termination of the lease to the leasehold interest of the person who requests the termination. The House PASSED the bill 94-0; it now GOES to the Senate.
HF 525 MEDICAID RECOVERIES & MCO PREMIUMS: Makes changes to Medicaid governance, including on recoveries from 3rd-parties and the taxation of premiums related to MCOs. Includes implementing provisions. PASSED House Ways & Means Committee 24-0.
HSB 225 FAIR REFUNDS: Designates district fairs and county fairs as designated exempt entities in terms of the sales tax. Retroactive to 2021. Allows for refunds but caps the aggregate at $50,000. PASSED House Ways & Means Committee 24-0.
HF 617 IUB RATE-MAKING REVIEW: Requires the IUB to review current rate making procedures to determine if different procedures would result in more cost-effective rates. Requires the Consumer Advocate and rate-regulated utilities to participate. Allows other interested parties to participate and allows the IUB to use additional services. Requires recommendations by 1/2024. PASSED Senate Commerce Committee 18-0.
News Clips:
House GOP plans Medicaid reimbursement hike for Iowa nursing homes: https://www.radioiowa.com/2023/03/23/house-gop-plans-medicaid-reimbursement-hike-for-iowa-nursing-homes/
Reynolds signs bills on transgender care, bathroom use by transgender students: https://www.radioiowa.com/2023/03/22/reynolds-signs-bills-on-transgender-care-bathroom-use-by-transgender-students/
Iowa Senate votes to ban motorists from handling smart phones while driving: https://www.radioiowa.com/2023/03/22/iowa-senate-votes-to-ban-motorists-from-handling-smart-phones-while-driving/
Week 9
The ninth week of the 2023 legislative session has adjourned. Of most importance to the insurance industry are the following bills:
HF 423 PHARMACY DISPENSING FEES: Prohibits a health plan or PBM from discriminating against a covered entity/contract pharmacy by paying a smaller dispensing fee less than other entities. Prohibits the imposition of certain contract requirements on such covered entities, contract pharmacies and pharmacies that participate in the 340B drug program. Authorizes enforcement by the Insurance Commissioner. The House PASSED the bill 98-0; it now GOES to the Senate.
SF 509 CAPTIVE INSURANCE COMPANIES: Enacts provisions on captive insurance companies. Defines such companies. Includes reporting requirements, tax payments on direct premiums, requirements to apply to the Insurance Commissioner for authority to issue various kinds of insurance, the duties of the Insurance Commissioner and on other matters related to these companies. PASSED Senate Ways & Means Committee 18-0.
Additionally this week, both the Senate and the House approved SF 538 BANNING GENDER AFFIRMING TREATMENT, sending the bill to the Governor’s office.
The Senate also passed SF 514 STATE GOVERNMENT REORGANIZATION on a 34-15 vote. Senator Schultz, who managed the bill, said it will increase efficiency and save the state money. Governor Reynolds released the following statement on the bill:
Serving the needs of Iowans efficiently and effectively is state government’s primary responsibility, and Iowans rightfully expect nothing less. Government alignment proposes the type of commonsense, fiscally responsible change that will improve how the executive branch works together, elevate services for Iowans, and save taxpayers a projected $215 million over the next four years. For too long politicians have only promised to reduce the size and cost of government, but today the Iowa Senate took an important step forward to making it a reality.
Governor Reynolds also appointed Chad Aldis as the new Director of the Iowa Department of Education this week. Aldis grew up in Iowa and has been the vice-president for Ohio policy at the Thomas B Fordham Institute. Aldis has a BA in economics from the University of Mississippi and a law degree from Florida State University. Aldis will officially begin his tenure on March 15, 2023.
Updates on other Notable Bills:
HF 269 AMUSEMENT CONCESSION PAYMENTS: Allows amusement concessions at a park or arcade to accept credit cards. The House PASSED the bill 96-2; it now GOES to the Senate.
HF 205 BEER BARREL TAX: Moves the barrel tax receipts for beer brewed at a brewpub for retail sale to the barrel tax fund. The Senate PASSED the bill 47-2; it now GOES to the Governor.
SF 478 AUDITOR INFORMATION: Prohibits the State Auditor from having access to the medical, academic or other private information of an individual during an audit. Requires the Auditor to work using federal standards for government audits and audits start. Requires the Auditor to keep confidential information confidential and limits the access of the Auditor to some information (income tax, health records, peace officer records, various other records for law enforcement and attorneys, personal information and other specified records). Requires the auditor to take steps to protect information. Prohibits litigation between statutory and constitutional offices. The Senate PASSED 33-16; it now GOES to the House.
SF 411 BANNING ENERGY SOURCES: Prohibits a city or county from restricting the access a consumer has to different energy sources including a de facto prohibition on a source or related infrastructure. The Senate PASSED the bill 41-6; it now GOES to the House.
SF 482 SCHOOL RESTROOMS: Requires K-12 schools to designate multi-occupant restrooms and changing rooms as being for one sex. Prohibits a person from using a toilet that does not correspond to the person’s biological sex. Allows a school to designate alternative facilities on the request of the parent of a child. Allows any citizen to file a complaint and AG to investigate and take enforcement actions. The Senate PASSED the bill 33-16; it now GOES to the House.
SF 207 NO ELECTRONICS WHILE DRIVING: Prohibits the use of any electronic devices while driving. Establishes exemptions in some situations for hands-free devices, for law enforcement, health care workers, transit workers, utility maintenance workers, in emergency situations, agricultural uses and for other reasons. Other: Makes citations a moving violation and increases the scheduled fine to $100. Establishes a warning period until January 2024. PASSED Senate Ways & Means Committee 18-0.
News Clips:
· Bill would bar books with explicit sexual content from school libraries: https://www.radioiowa.com/2023/03/09/bill-would-bar-books-with-explicit-sexual-content-from-school-libraries/
· Governor hires school choice advocate to lead Iowa Department of Education: https://www.radioiowa.com/2023/03/09/governor-hires-school-choice-advocate-to-lead-iowa-dept-of-education/
· Bill bans instruction of sexual orientation in Iowa’s K-6 classrooms: https://www.radioiowa.com/2023/03/09/bill-bans-instruction-of-sexual-orientation-in-iowas-k-6-classrooms/
· State GOP votes to put some documents off limits in state auditor’s investigations: https://www.radioiowa.com/2023/03/08/state-gop-votes-to-put-some-documents-off-limits-in-state-auditors-investigations/
· Senate GOP sends Reynolds’ gov’t reorganization plan to House: https://www.radioiowa.com/2023/03/07/senate-gop-sends-reynolds-govt-reorganization-plan-to-house/
Week 3
The third week of the 2023 legislative session featured the House and Senate passing
HF 68 EDUCATION SAVINGS ACCOUNTS late Monday evening. The House approved the bill on a 55-45 vote and the Senate approved the bill 31-18.
Governor Reynolds signed the Students First Act into law on Tuesday, January 24.
Movement on notable bills:
HF 11 UNIVERSITY GRADUATE INFORMATION
Requires the Regents to publish the average income and student loan debt graduates with a bachelor’s degree. Requires the state universities to give the Regents such information about students. Includes requirements for the information to be on the internet and to be sortable, to include information about graduate school and other matters. Requires the universities to connect students with career planning services. PASSED House Education Committee 15-8.
HF 12 SCHOOL GOVERNMENT CURRICULUM
Requires that comparative discussions of political ideologies that conflict with freedom and democracy essential to the founding of the US be taught in HS government. PASSED House Education Committee 14-9.
HSB 37 GUBERNATORIAL SUCCESSION
Proposes a constitutional amendment to establish the process for the succession of a governor in the case of death or disability. Deems the position of lieutenant governor to be vacant for the rest of the term if the lieutenant governor becomes governor due to death or resignation of the governor. PASSED House State Government Committee 19-4.
HSB 39 ALCOHOL PLACEMENTS & INCENTIVES
Requires the ABD to adopt federal rules on the placement of alcoholic drinks and on inducements offered by brewers, distillers, and wholesalers. PASSED House State Government Committee 23-0.
SF 108 UNAUTHORIZED ALIEN WORKERS
Prohibits employers from employing unauthorized alien workers. Allows county attorneys, local law enforcement and members of the public to file complaints with the DWD. Requires the DWD to investigate and bring actions in court if needed. Requires the use of the e-verify system. Establishes defenses, rebuttable presumptions, and other restrictions under the bill. Includes other provisions. PASSED Senate Judiciary Committee 12-6.
SSB 1063 NON-ECONOMIC DAMAGES
Caps non-economic damages against health care providers for substantial or permanent loss of bodily function, substantial disfigurement, or death at $1 million. Deems losses related to dependent care to be economic damage. PASSED Senate Judiciary Committee 11-7.
HF 102 (a companion bill to SSB 1063 also passed through its subcommittee this week).
SSB 1026 CHILD CAR SEATS
Requires children under the age of two or 30 pounds to be in a rear-facing child seat. Restraint systems: Requires children under 8 to be in child restraint systems used according to the manufacturer’s instruction. Other: Requires children under 18 to use restraint systems. Strikes exemptions from the use of child seats if a seat belt is not available for use for the child seat. PASSED Senate Judiciary Committee 16-0.
SSB 1028 DRIVING TESTS
Allows persons who are qualified to give behind-the-wheel driving instruction but who are not licensed teachers to administer a final field driving test. PASSED Senate Judiciary Committee 16-0.
SF 86 NON-MEDICAL SWITCHING
Prohibits health plans from limiting coverage of a prescription drug for a covered person if the person is medically stable, as determined by medical professionals, the person was previously approved for the drug by the coverage plan and the prescriber has issued a prescription for the drug in the last six months. Includes exceptions for equivalent generic drugs, for federal actions or the discontinuance of the drug. Requires that the plan have an option for a covered person to seek a coverage exemption and for expedited procedures for decisions. Authorizes the Insurance Commissioner to take necessary enforcement actions. Includes other provisions on coverage decisions. PASSED Subcommittee.
SF 60 NO ELECTRONICS WHILE DRIVING
Prohibitions: Prohibits the use of any electronic devices while driving. Establishes exemptions in some situations for hands-free devices, for law enforcement, health care workers, transit workers, utility maintenance workers, in emergency situations, agricultural uses and for other reasons. Other: Makes citations a moving violation. Passed Subcommittee.
Week 2
The second week of the legislative session has come to a close. On Tuesday evening, the House held a public hearing on HSB 1 EDUCATION SAVINGS ACCOUNTS to allow supporters and opponents of the bill to speak on the bill.
By Thursday morning, both the House and Senate passed the Education Savings Accounts legislation out of their respective committees on party-line votes. New bill numbers have been assigned to this legislation in either chamber: SF 94 / HF 68.
Debate on the legislation is expected next week starting with the Iowa House on Monday.
Movement on House Republican priority bills:
House File 6 – Workforce Grant and Incentive Program
- A new program that incentivizes students attending the three Regent universities to go into high-demand job fields.
- The bill passed its subcommittee on a 7-0 vote and is now eligible for debate by the full House Appropriations Committee.
- Makes all school employees over 18 mandatory reporters and requires schools and the BOEE to keep a record of all complaints made against employees so they can identify trends. It also prohibits school districts and teachers from entering into an agreement that prohibits them from discussing an incident or waiving liability.
- The bill passed its subcommittee on a 3-0 vote and is now eligible for debate by the full House Education Committee.
House File 11 – Student Right to Know
- Requires the Board of Regents to provide students with information about post-graduation median salary, loan debt, debt-to-income ratio, and more for the degrees they offer.
- The bill passed its subcommittee on a 2-1 vote and is now eligible for debate by the full House Education Committee.
House File 12 – Teaching the Crimes of Communism
- Requires within the US Government curriculum that there is a comparative discussion of political ideologies such as communism and totalitarianism, which conflict with the principles of freedom and democracy that are essential to the founding principles of the United States.
- The bill passed its subcommittee on a 2-1 vote and is now eligible for debate by the full House Education Committee.
House File 13 – Rural Hospitals
- Establishes licensure in Iowa for Rural Emergency Hospitals - a health care facility that maintains a 24-hour emergency room, but does not include acute inpatient care - allowing them to receive reimbursement from Medicare and Medicaid at a higher rate.
- The bill passed its subcommittee on a 3-0 vote and is now eligible for debate by the full House Health and Human Services Committee.
Week 1
The first session of the 90th General Assembly is on its way! Tuesday evening, Governor Reynolds delivered the Condition of the State address.
Governor Reynolds' major piece of legislation this year is school choice reform:
Governor Reynolds Student First Act will set up an Education Savings Account (ESA) Program. For parents who choose to enroll their children in an accredited private school, they will receive $7,598, which is the amount of per pupil funds allocated annually by the state, to use for tuition, fees, textbooks, tutoring, curriculum or material costs, online education programs, vocational or life skills training, standardized test fees, and educational services for students with disabilities.
Funds will be deposited into an ESA each year until students graduate or turn 20 years of age, whichever is sooner. At that time, all remaining balances are returned to the state general fund.
Here is the eligibility breakdown:
Year 1 (2023-2024):
- All kindergarten students
- All current public school students
- Current private school students who are at or below 300% FPL.
Year 2 (2024-2025):
- All kindergarten students
- All current public school students
- Current private school students who are at or below 400% FPL.
Year 3 and beyond (2025-)
- All K-12 students in Iowa regardless of income.
Other student funding generated by the per pupil categorical funding formulas will remain with the respective public school district, even though a student has moved to a nonpublic school. This will be new funding that they have never been able to receive before. It is estimated that a public school district will retain about $1,205 per pupil in categorical funding for each student who attends a private school from their district.
(Info from the office of Governor Reynolds)
House Republicans unveiled their top 13 priority bills this session, each came with 30+ co-sponsors:
House File 1 – Property Tax Reform
- Provides certainty for the taxpayers by reducing the $5.40 levy, increasing transparency requirements, and capping assessment increases.
House File 2 – Protecting Public Funds
- Keeps Iowa’s money safe from activist Environmental, Social and Governance (ESG) policies.
- Ensures Iowa’s welfare programs are available for truly eligible Iowans by codifying practices to authenticate the identity of applicants and verify information prior to enrollment.
House File 4 – Alternative Teacher Licensing
- Creates two additional pathways to license teachers in an effort to address Iowa’s workforce shortages in the teaching profession.
House File 5 – Curriculum Transparency
- Gives parents access to the resources provided to their children by their school.
House File 6 – Workforce Grant and Incentive Program
- A new program that incentivizes students attending the three Regent universities to go into high-demand job fields.
House File 7 – Teacher Prep Program Reform
- Authorizes a study to dive into how Iowa’s Regent Universities are training future teachers and requires regents to define exactly what they are teaching in their teacher education programs.
House File 8 – Prohibiting Gender Identity/Sexual Orientation Instruction to Children
- Classroom instruction on sexual orientation or gender identity may not occur in kindergarten through third grade, or in a manner that is not age-appropriate for students
House File 9 - Parental Notification on Gender Identity
- Ensures that school employees can’t hide information about a student’s requested gender transition or identity from the child’s parents. School employees cannot facilitate, encourage, or coerce students to withhold information from their parents.
- Makes all school employees over 18 mandatory reporters and requires schools and the BOEE to keep a record of all complaints made against employees so they can identify trends. It also prohibits school districts and teachers from entering into an agreement that prohibits them from discussing an incident or waiving liability.
House File 11 – Student Right to Know
- Requires the Board of Regents to provide students with information about post-graduation median salary, loan debt, debt-to-income ratio, and more for the degrees they offer.
House File 12 – Teaching the Crimes of Communism
- Requires within the US Government curriculum that there is a comparative discussion of political ideologies such as communism and totalitarianism, which conflict with the principles of freedom and democracy that are essential to the founding principles of the United States.
House File 13 – Rural Hospitals
- Establishes licensure in Iowa for Rural Emergency Hospitals - a health care facility that maintains a 24-hour emergency room, but does not include acute inpatient care - allowing them to receive reimbursement from Medicare and Medicaid at a higher rate.
Legislative Makeup:
- GOP House Majority: 64-36
- GOP Senate Majority: 34-16
