Iowa lawmakers returned to Des Moines this week to convene the second legislative session of the 89th General Assembly. As Republicans enter the sixth year of a ‘GOP trifecta’ they will continue to drive the state’s policy agenda for the 2022 session. On Monday, leaders from both parties in the Senate and House welcomed members back to the Capitol and outlined priorities with their opening speeches.
In his opening remarks, Senate Majority Leader Jack Whitver (R-Ankeny) praised Iowa’s response to the COVID pandemic and highlighted the state’s strong fiscal position. He referenced the largest income tax cut in state history in 2018 but stated that more tax relief is needed to make Iowa more attractive to and work. “If policy makers want this state to grow, then we must be on the list of states with the lowest income tax in America,” said Whitver. In addition to tax reform, Whitver stressed the need to address workforce challenges. Senate Minority Leader Zach Wahls (D-Coralville) also identified workforce as a major issue and stated that workforce is the most important issue facing Iowa. Wahls thanked President Biden and U.S. Congresswoman Cindy Axne (D-Des Moines) for passing the American Rescue Plan and the recent Infrastructure Deal.
Across the chamber, Speaker Pat Grassley (R-New Hartford) cited responsible budgeting practices which produced a healthy ending balance, full reserves, and a Taxpayer Relief Fund in excess of $1 billion. “The state is taking in more in tax money than it needs. And Iowans deserve their money back,” Grassley said. The Speaker also identified workforce as a major challenge and stated the need to increase access to high-quality and affordable childcare. In her first address as House Minority Leader, Jennifer Konfrst (D-Windsor Heights), stated the need for Iowa to address workforce, childcare, housing, and healthcare challenges. She also stressed the need to address misinformation. “It’s become increasingly clear we can no longer ignore the lies and misinformation so pervasive today,” said Konfrst. “As elected officials, we have a deep responsibility to not just tell the truth, but defend the truth and hold each other accountable.”
On Tuesday night, Governor Reynolds gave her fifth condition of the state address before a joint session of the Iowa Legislature. In her address, Reynolds stressed the need to continue to be bold and identified taxes, workforce, education, and renewable energy as key priorities for the upcoming session. Regarding taxes, Governor Reynolds announced she would be introducing legislation that would eliminate Iowa’s current income tax bracket structure and replace it with a 4% flat tax, eliminate retirement income tax, exempt net capital gains on sales of employee-awarded capital stock, and reduce Iowa’s corporate income tax, over time. Like legislative leaders, Reynolds
believes a holistic approach is necessary to address workforce problems. She plans to introduce a comprehensive bill that will reform Iowa’s unemployment system, reduce the term of regular unemployment benefits, limit non-economic damages in cases of medical malpractice and trucking accidents, improve access to childcare, and build Iowa’s healthcare workforce through strengthening recruitment and residency programs.
Governor Reynolds also spoke at length about providing educational choice by reintroducing Students First Scholarships, allowing Iowa’s per-pupil funding to follow students to private schools or other educational programs, and improving transparency by requiring schools to publish course materials and books online. Finally, the Governor announced she would be reintroducing an amended biofuels proposal that will require all retailers with compatible infrastructure to offer E-15 by 2026, ensure that any new infrastructure is E-85 and B-20 compatible, and recommends a $50m investment over five years in the Renewable Fuels Infrastructure Program.
In other news, the U.S. Supreme Court announced rulings Thursday afternoon regarding two challenges to COVID-19 vaccine mandates. Via a 6-3 decision, the Court blocked a “vaccine-or-test” mandate for businesses with more than 100 employees that was issued by the Occupational Safety and Health Administration (OSHA). The ruling came three days after the initial compliance deadline which left states to determine whether they would adopt the federal standard. Iowa did not. Labor Commissioner Rod Roberts said that “Iowa doesn’t have a standard requiring the COVID-19 vaccine or testing. But after closely reviewing the federal OSHA Vaccine Mandate, Iowa has determined it will not adopt the federal standard. Iowa has concluded that it is not necessary because Iowa’s existing standards are at least as effective as the federal standard change.”
The second challenge regarded a vaccine mandate for health care workers at facilities that receive federal funding (Medicare and/or Medicaid). Also argued before the U.S. Supreme Court on Monday, the Court ruled 5-4 that a mandate can be enforced by facilities as it “fits neatly within” the authority granted to HHS by Congress to impose certain conditions on federal funds. “After all, ensuring that providers take steps to avoid transmitting a dangerous virus to their patients is consistent with the fundamental principle of the medical profession: first, do no harm,” the opinion read. “It would be the ‘very opposite of efficient and effective administration for a facility that is supposed to make people well to make them sick with COVID-19.’”
In Iowa news, Governor Reynolds and the Office of the Chief Information Office recently announced another round of broadband grant recipients. To date, the Empower Rural Iowa Broadband Grant Program has awarded $880 million in grant funding for new broadband infrastructure that will reach approximately 115,000 homes, businesses, and schools once the projects are completed. The 160 winning applicants, which can be found here, will split $210 million which will be leveraged to generate $526 million of new broadband infrastructure.
“Our commitment to high-speed, reliable broadband for all Iowans continues to make great progress,” said Gov. Reynolds. “We’ve received an overwhelming number of applications and funding requests, which highlights the considerable need to expand broadband to all corners of the state. Our investments will help
bridge the gap and provide thousands more Iowans the necessary connectivity needed in their homes and communities.”
The Empower Rural Iowa (ERI) initiative was created via executive order in 2018 and in partnership with the Iowa Rural Development Council. The Empower Rural Iowa Act also created three task forces (Investing in Rural Iowa; Growing Rural Iowa, and Connecting Rural Iowa) which develop policy recommendations for the Governor in advance of each legislative session.
To view additional summaries from the 2022 Iowa Legislative session or to learn more about BrownWinick’s Government Relations Team, visit our Lobbying and Public Policy team page.