Government : HELLO HOUSE DISTRICT 75 FROM THE STATE CAPITOL!

May 6, 2021

State Revenue Grows Significantly in April

State tax revenues grew in April according to the non-partisan Legislative Services Agency. How much did they grow? When compared to April 2020, state receipts were up $374.6 million. This amount is a 75 percent increase over what the state took in last April, when tax payments to the state were delayed due to the Coronavirus pandemic.

For the year, cash receipts to the General Fund are up 16.1 percent. This figure is just slightly higher than the 1.8 percent growth forecasted by the Revenue Estimating Conference in March. It is important to note that the current cash receipts number includes all the FY 2020 tax dollars that the state received after than fiscal year closed, which was approximately $300 million. When the FY 2021 books are closed, this imbalance will be adjusted.

All three major revenue streams - personal income tax, sales and use tax, and corporate income tax - increased significantly for the month. Sales and use tax and corporate income tax for the year are running well ahead of REC projections. Personal income tax is close to the REC forecast and will likely see a jump once state income tax returns are filed by the May 30 deadline.

It is clear that state tax collections are rising. According to the Department of Management, April's tax payments to the state were the largest amount ever received by the state in a single month coming in at over $1.1 billion.

Agriculture

IDALS Issues Reminder - Century & Heritage Farm

Applications due June 1

On Monday, May 3, 2021, the Iowa Department of Agriculture and Land Stewardship (IDALS) issued a press release in which Iowa Secretary of Agriculture Mike Naig reminds eligible farm owners to apply for the 2021 Century and Heritage Farm Program now. The program was created by IDALS and the Iowa Farm Bureau Federation to recognize families who have owned their farms for 100 years and 150 years, respectively. To be included in the 2021 Century or Heritage Farm Program, completed applications must be received by June 1, 2021. To apply, download the application on the Department's website at iowaagriculture.gov/century-and-heritage-farm-program.

Commerce

Appropriations

Governor Signs Commerce Legislation

This past week, Governor Reynolds signed several pieces of legislation that started in the Commerce committee. These bills include:

House File 236 - This bill allows for securities collateralized by US Treasury notes are added as approved short-term investment by life insurance companies.

House File 284 - This bill updates streamlines the requirements for obtaining a professional engineering license.

House File 390 - This bill requires a notice to customers before permanently discontinuing fluoridation in the water supply.

House File 556 - This bill requires a supplier to repurchase inventory if a dealership agreement is terminated by the supplier or dealer. It clarifies the rights of equipment dealers to provide protections with the supplier when an agreement is terminated.

House File 583 - This bill creates a framework for offering private flood insurance in Iowa. Federal changes have created an opening where private flood insurance could be less expensive for consumers than options offered through the federal government. Iowa is a leader in the insurance industry and this legislation is important for the state to retain its leadership role in the country.

Economic Growth

Affordable Housing Assistance Programs

Three housing programs focused on low and moderate income Iowans are currently taking applications for funding. The programs are funded through the federal Community Development Block Grant (CDBG).

The owner-occupied rehabilitation program is focused on three areas of improvement: energy efficiency, exterior improvements, and the removal of architectural barriers to allow aging in home. The maximum award amount is $24,999 per unit plus lead hazard reduction and technical services.

The homebuyer assistance program provides down payment and closing cost assistance to low and moderate income homebuyers. The maximum award amount is $24,999 per unit plus lead hazard reduction and technical services.

The upper story housing conversion program aims to convert existing downtown building space into new residential units. The maximum award under this program is $500,000.

Applications for these programs are accepted on an ongoing basis as funds are available.

Education

Parents Continue to Push Back Against Politically Biased Curriculum

Legislators continue to hear from countless parents, guardians, and concerned citizens about what can be done to push back against their school districts on the content being taught, the way it is being taught, and other school district decisions. But more and more it seems parents are feeling empowered to take a stand. Some teachers and districts are only giving one side of an issue, skewing an issue, or misrepresenting facts. Some districts are even making teachers and students afraid to voice their opinions or concerns. Some districts continue to ignore parents when making decisions that directly affect these parents' children.

News stories from around Iowa show parents choosing to show up to school board meetings and push back. Earlier this week in Johnston, a full house of parents, students, and community members showed up to a school board meeting voice concerns over a new Diversity and Equity coordinator. Last month, hundreds showed up to a North Scott school board meeting regarding curriculum and school assignments. Earlier in the year we saw Ankeny parents get active and more recently Ames families get active in voicing their opinions to the school boards, districts, and our own legislators. It seems almost every week we hear of another school or instance where politically biased curriculum is showing only one side or simply not factual. AEAs have been questioned on whether they have been providing curriculum on divisive concepts to schools. On an AEA google doc linked via Twitter, there is a whole page discussing resources for anti-racism, bias, and white privilege. Remember, there are things parents, guardians, and educators can do to push back.

First, parents, guardians, and licensed teachers may file a complaint with the Board of Educational Examiners if there is a violation of the code of professional conduct and ethics. A teacher cannot deny the student, without just cause, access to varying points of view. A teacher cannot deliberately suppress or distort subject matter for which the educator bears responsibility. A teacher can not fail to make a reasonable effort to protect the health and safety of the student or create conditions harmful to student learning. A teacher can also not conduct professional business in such a way that the practitioner repeatedly exposes students or other practitioners to unnecessary embarrassment or disparagement. More info on how to file a complaint may be found here: https://boee.iowa.gov/about-us/complaints.

Second, parents and guardians can always contact their teacher, principal, superintendent, or school board. Formal requests can be made to the school board on things such as curriculum. If a school board makes a decision on a formal request it may be subject to administrative review by the state board or the director of the Department and/or to further challenge in district court. If the issue is not resolved, or at any time in the process, you can contact the Department of Education and your area School Improvement Consultant. Parents, guardians, and community members may formally or informally bring their issues before the state board if they have exhausted their local remedies. There are also certain decisions that can be appealed to the director of the Department by petition. More info may be found here: https://educateiowa.gov/pk-12/parent-guardian-and-community-concerns

(Info from the BOEE and Iowa Department of Education)

(Info from Iowa Department of Education)

Iowa Students Stand Out for National History Day

More than 360 students came from virtually everywhere across Iowa last week to compete online in this year's National History Day in Iowa state contest. For the second straight year, the academic enrichment program moved to an online format due to the Covid pandemic. Sixty-three students representing 21 different schools took top honors during the state contest and advanced to the national contest, where they will compete online in June for scholarships and prizes.

National History Day challenges students to research, develop and present papers, exhibits, documentaries, websites and performances about historical topics related to an annual theme. This year's theme is "Communication in History: The Key to Understanding." To view a list of winners click here: https://iowaculture.gov/history/education/national-history-day/contests/state-contest/awards.

(Info from the State Historical Society of Iowa)

Environmental Protection

DNR Notes-Smoky Air? Protect Yourself from Wildfires

On Monday, May 3, 2021, the Iowa Department of Natural Resources (DNR) issued a press release observing that healthy air is important for everyone. Breathing smoke, however, can be a risky prospect. Remember haze blanketing the sky from the Canadian forest fires? Or, the grass burning in the Flint Hills of Kansas? If the air seems smoky, you can easily check for large or small fires burning close to you. Look at the newly updated Fire and Smoke map on AirNow. Set your location on the map, then click on the nearest air quality monitor to find results for small particulate matter (also known as smoke) levels. These small particles can cause serious health problems, including asthma and heart attacks, strokes and early death.

But you can protect yourself by using the Air Quality Index to plan outdoor activities. If the AQI is green, air quality is good. A yellow color indicates acceptable air quality, but there may be a risk for people who are sensitive to air pollution. Risks may be higher for people with heart or lung disease, and for children, athletes and older adults. Although it seldom happens in Iowa, if the index shows orange or red, it's more likely for sensitive groups to be affected (orange) or for some of the general public to have health effects (red). On those days, you can limit your exposure to particle pollution by:

- Spending less time outdoors.

- Choosing light exercise over strenuous activities.

- Limiting time near pollution sources like busy roads.

May 3 - 7 is national Clean Air Week. Find out more about particle pollution from the U.S. Environmental Protection Agency. Learn what you can do to improve air quality in Iowa, including 6 Ways to Keep Air Healthy.

Source: DNR

Iowa Ranks 2nd in the Country for COVID Recovery This week Iowa was named the second-best state in the nation for recovering from the COVID-19 public health emergency by Wallet Hub. This study compared the 50 states and D.C. on 22 metrics. Based on these metrics, Iowa ranked 6th for COVID related health issues, 1st for leisure and travel, and 7th for economy and labor market. In the study, Iowa ranked 5th for highest share of vaccine supply used. As of Wednesday, Iowa has administered 2.4 million doses of the COVID vaccine. Compare these vaccination numbers to the number of Iowans that have tested positive for COVID over the last 14 months. As of Wednesday, 395,910 individuals have tested positive since the beginning of the public health emergency. The media and liberal bloggers continue to attack the Governor for vaccine distribution, but this ranking makes clear that Iowa has done better in quickly providing vaccines to those who want them compared to the rest of the nation. This study also ranks Iowa as tied for 3rd for the lowest share of hospitals with staff shortages and tied for 1st for the lowest share of hospitals with supply shortages. These rankings highlight House Republicans and the Governor's dedication to getting Iowa back to normal following the business and school closures last spring. The stark contrast is seen in these rankings which put liberal states like Michigan (51st), New Jersey (50th), New York (49th), Pennsylvania (48th), Delaware (47th), DC (46th), and Rhode Island (45th) at the very bottom for economic and health recovery. Judiciary

Human Resources

House Passes Bill to Ban Vaccine Passports Now that vaccines for COVID-19 are widely available many people are concerned that the state or federal government will soon require proof of vaccination to live their everyday lives. Iowans reached out to House Republicans and asked for legislation that ensures they can make their own health care decisions and would not have to disclose those decisions to simply go to the grocery store or the mall. House File 889 was put together by House Republicans, Senate Republicans and the Governor's office. While reasonable minds can differ if the bill should have gone further, the bill strikes a balance between health care needs of vulnerable Iowans, privacy and the right to make one's own health care decisions. The bill explicitly prohibits the state and any political subdivisions (counties, cities, etc.) from issuing vaccine passports that identify if a person has or has not had the COVID-19 vaccine. This does not stop doctors and pharmacists from keeping vaccine records but does prevent official identification from being issued by the government. Section two of the bill prohibits a business or government entity from requiring proof of COVID-19 vaccination as a condition for entering the property. This ensures government buildings, schools, colleges and universities, malls, grocery stores and others cannot require a person to verify they have had a COVID-19 vaccine. This allows Iowans to go on with their everyday life no matter what health care choices they make. A business or governmental entity who violates this law, will be prohibited from receiving additional state grant money or state contracts. HF 889 provides an exception for health care facilities including but not limited to hospitals, inpatient centers, residential care facilities and nursing facilities. They may ask for and even require proof of COVID-19 vaccination. However, as of now, no facilities are doing this. The reason for this exception is to ensure these facilities remain in line with any federal requirements and to allow flexibility for those caring for the most medically vulnerable to COVID-19, should it be needed. The bill passed with bi-partisan support 58-35 and is now in the Senate. Labor Iowa has Logged 37,000 Fraudulent Pandemic Unemployment Claims Iowa has fielded at least 37,000 fraudulent claims for unemployment benefits since the COVID-19 pandemic began, according to state officials. That works out to more than 87 fraudulent claims filed each day of the pandemic. Those claims are tied specifically to identity theft, wherein people have filed claims pretending to be real Iowans who may or may not be jobless. "The last few months we saw the largest increase in those numbers, with last week having a significant decrease," Iowa Workforce Development Deputy Director Ryan West said. It's not known how the total 37,000 fraudulent claims compares to the previous 14-month period. But in fiscal year 2019, the agency said it had identified $5,362,332 in unemployment overpayments that could be attributed to fraud. In fiscal year 2020, which ended just four months into the pandemic, that number increased 7 percent to $5,732,627.

West stated that IWD "uses many fraud detection and prevention mechanisms, most of which we will not discuss publicly to ensure their efficacy." (Info from IWD and the Times-Republican)

Local Government

Counties Given Control to Address Abandoned Property

As Iowa continues to see population shifts from rural to more urban a growing problem for counties is starting appear. What to do with abandoned property in the unincorporated areas of their counties. Cities have had the ability to address abandoned property that has become a public safety or public nascence issue. Properties that sit abandoned can end up becoming exposed to the elements leading to deterioration or a large presence of vermin. Sometimes these buildings become places where trespassers gather to vandalize or commit other crimes.

Senate File 554, floor managed by Representative Gobble, would give counties the same ability to petition a district judge to award the title of an abandoned property to the county once a district court deems a property has been deemed abandoned for at least six months. Anyone who may hold an interest in the property shall be named as a respondent in the petition. After 60 days of filing the petition, the county may request a hearing on the petition. The county is required to include the intended use of the property and a plan to transfer the title of the property to another entity within 18 months. The court must consider over 13 factors when determining whether the property has been abandoned and the county shall be awarded the title for up to 18 months to address the abandoned building.

SF 554 was reported out of the House Local Government Committee, passed the House Floor, and was signed into law by Governor Reynolds in April. SF554 will give counties the ability to address properties that have been abandoned and have created public health or nuisance problems.

Natural Resources

Fish Survey Data Returns to Iowa DNR Website

Iowa anglers can once again access fish survey data collected by Iowa Department of Natural Resources (DNR) fisheries staff during electroshocking and netting surveys on lakes, rivers and streams.

Survey summaries from individual lakes and rivers, fish species lengths compared across lakes, and fish length and weight data can be viewed and downloaded from www.iowadnr.gov/Fishing/Fish-Survey-Data. Additional data and summaries will be available in the future.

Fish survey data was removed from the DNR webpage in 2018, while a new data management system was acquired to capture and store fisheries data. The new data management system will be updated with new fish survey data faster than with the previous system

Source: DNR

ABATE of Iowa District 4 Authorized for Toy Drive at Iowa Capitol

This October, A Brotherhood Aimed Towards Education (ABATE) of Iowa District 4 will hold their 38th annual toy run parade at the Iowa Capitol. District 4 of ABATE of Iowa holds this annual toy drive, rally, and fundraising event at the Capitol to collect toys and raise money to purchase toys and gifts for underprivileged children in Dallas, Polk, and Warren counties. The motorcyclists meet at the Capitol Complex where they sell commemorative t-shirts, sweatshirts, lapel pins, and patches during the toy run to raise funds in addition to the toys collected.

Iowa Administrative Code prohibits sales to the public on the Capitol complex grounds without prior approval. In February, the State Government Committee unanimously passed House Joint Resolution 10 to give approval to the ABATE of Iowa to hold their annual toy drive. HJR10 passed both the House and Senate Chambers with bipartisan support. Last week, Governor Reynolds signed the resolution and secured the ability for the annual toy run to continue to be held on the Capitol complex.

Transportation

Expanding Access to CDL Testing

Commercial drivers play an essential role in delivering necessary supplies, driving school busses and supporting our local communities. About 10 percent of all Iowa license holders have a CDL, but often have long wait times and difficulty accessing testing locations near their work.

State Government

In 2019, the legislature directed the Iowa DOT to conduct a study on access to the driving skills test for CDLs, and asked the DOT to evaluate testing options to increase access. The report can be found here. Currently, there are 16 Iowa DOT locations, 12 county treasurer locations, and 15 third-party locations.

Based on this report, the House Transportation Committee drafted House File 828 and recently this bill has been sent down to the Governor with strong bipartisan support in both chambers. This legislation allows counties that provide the driving skills test for a CDL to charge $25 for each of the three component tests (pre-trip vehicle inspection, basic vehicle control skills, and the on-road driving skills test). Currently, counties providing this testing do not receive any extra funds, leaving little incentive to maintain testing or expand testing to additional areas of the state. This bill also allows the DOT to charge $25 for the pre-trip test.

Government entities are exempted from all fees under the bill except for one $25 fee if they choose to test at the county level.

Additionally, the Governor has signed House File 280 which allows for CDL's to be renewed online every other renewal cycle.

Ways & Means

House Republicans Offer Wide-Ranging Tax Compromise

At the very beginning of the 2021 legislative session, Gov. Reynolds made clear that repealing the triggers contained in the 2018 tax cuts was a top priority. Repealing the triggers results in the second round of income tax cuts going into effect on Jan. 1, 2023 instead of being dependent on revenue benchmarks. The triggers were nearly reached with the current revenue picture and Gov. Reynolds asked the Legislature to implement the second round of tax cuts so Iowans wouldn't have to wait.

Senate Majority Leader Jack Whitver went on Iowa Press just a few weeks ago and said, "But the Governor as well as the Senate have said, getting rid of the triggers is the most important thing that we can do."

House Republicans have responded with a wide-ranging tax policy compromise that includes a repeal of the income tax triggers and several tax benefits for Iowans. Key details of the compromise are as follows:

Repeal Triggers

* Second round of income tax cuts go into effect Jan. 1, 2023

New Brackets as of 1-1-23

Over But Not Over Tax Rate

$0 $6,000 4.4%

$6,000 $30,000 4.82%

$30,000 $75,000 5.7%

$75,000 Or more 6.5%

Child Care Tax Credits HF 230

* Families who make up to $90,000 now qualify for the credit

Covid-19 related grants H-1115 to SF 364

* Exempt from income tax grants that went to businesses, restaurants, bowling alleys, etc.

Payroll Protection Program H-1115 to SF 364

* Fiscal year filer fix (so they are treated the same as calendar year filers)

School Tuition Organization (STO) changes

* Increasing the percentage of the credit from 65% to 87%

* Increasing the program cap so more people can donate

Targeted Jobs Withholding Tax Credit

* Helps border communities

* Extends program 5 years

Ending Balance

* At the end of the fiscal year, Dept. of Management determines the amount of the ending balance. The plan limits the amount to be carried over to the next year after filling the Cash Reserve Fund and the Economic Emergency Fund, to 5 percent of the expected General Fund revenue.

* Any amount over that number is be deposited in the Taxpayer Relief Fund.

Taxpayer relief fund

* Return overcollection of tax dollars to Iowans through an income tax credit

Inheritance Tax

* Completely phased-out over ten years

Small Businesses Allowed a Tax Credit for Covid-Related Paid Leave-Including Leave for Vaccination

The American Rescue Plan Act of 2021 (ARP) contains a provision allowing small and midsize employers, and certain governmental employers, to claim refundable tax credits intended as reimbursement for providing paid sick and family leave to employees due to COVID-19, including leave related to vaccinations. The ARP tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021.

To be eligible, an employer, including a tax-exempt organization, must have fewer than 500 employees. Employers can then claim tax credits for wages paid for leave taken by employees who are not able to work or telework due to reasons related to COVID-19, including not feeling well after vaccination.

The tax credits under the ARP are against the employer's share of the Medicare tax. They are refundable-meaning the employer could receive a refund if the credits exceed the amount of Medicare tax the employer owes.

The tax credit amount equals the sick leave wages paid for COVID-19 related reasons for up to two weeks (80 hours), limited to $511 per day and $5,110 in the aggregate, at 100 percent of the employee's regular rate of pay. The tax credit for paid family leave wages is equal to the family leave wages paid for up to twelve weeks, limited to $200 per day and $12,000 in the aggregate, at 2/3rds of the employee's regular rate of pay. All applicable forms for the tax credit can be found on the IRS.gov website.