Government Relations Legislative Update - Week Four

Capital Update

Big news on Thursday with the Senate Ways and Means Committee Chair Senator Dan Dawson and the House Ways and Means Committee Chair Representative Bobby Kaufmann jointly releasing a tax reform package that will consist of two different bills (SSB 3141 and SSB 3142).  The Press Release states the following:  

• “The first bill accelerates the current income tax cuts in TY24 - TY26 and lowers the rates even further to 3.65% by TY27. It also establishes the Iowa Taxpayer Relief Trust and the Income Tax Elimination Fund. Under the proposal, the Iowa Taxpayer Relief Trust would receive an initial $2.6 billion transfer from the Taxpayer Relief Fund. It would have an oversight board and will contract through IPERS to invest those dollars. Once the trust becomes operable, 5 percent a year will be transferred to the Income Tax Elimination Fund. The fund will be used to ensure Iowa continues current efforts to responsibly reduce Iowa individual income tax rates to zero. The Trust Fund will benefit future generations of Iowans by setting aside and protecting money today to responsibly eliminate the income tax in the future to ensure economic vitality and growth for Iowa. The Income Tax Elimination Fund will be used to help lower and eventually eliminate the income tax, while assisting with budget stabilization as rates are cut. If the Income Tax Elimination Fund has sufficient funds and sales tax growth hits a certain trigger, the income tax rates will then be automatically reduced. 

• The second bill is a constitutional amendment that requires an enhanced two-thirds majority to increase taxes income rates in Iowa, requiring the General Assembly to show a compelling need for a tax rate increase and likely bipartisan support. In addition, this bill also protects the new flat tax by putting it into the Iowa Constitution, ensuring in the future only the tax rate itself can be changed for every taxpayer.” 

With the first funnel fast approaching, bills need to pass out of a subcommittee and a standing committee to remain eligible for consideration.  During week four, 136 bills were scheduled for consideration in Committees and 146 subcommittee meetings were held.  One bill that cleared both hurdles this week is the Governor’s foreign land ownership proposal SSB 3113 (now SF 2204) which moved through the Senate Agriculture Committee.  The bill would increase reporting and registration requirements for foreign entities seeking to purchase land in the state.  Some of those requirements include describing the interest in the agricultural land as it relates to the business purpose of the entity and requires disclosure of interests in the United States.  The bill gives the Attorney General’s Office authority to look into reports that may be in violation of the law and requires the secretary of State to prepare an annual report summarizing foreign land holding in the state.    

A topic that will continue this session is the use of state-authorized eminent domain for pipelines.  The House held a subcommittee meeting on HSB 608 which gives legislators authority over the use of eminent domain by the state.  The bill provides that at any point during an eminent domain proceeding, 21 House members and 11 Senate members may file a petition requesting withdrawal of the proceeding.  The petition halts the proceeding until greater than three-fifths of the House and Senate vote for the proceeding to continue.  The bill authorizes parties to file for declaratory review from the Polk County District Court - which includes declaration of parties rights, status, and other legal matters related to eminent domain and allows a new action in a district court other than Polk County if more than 18 months have passed or if circumstances have changed.  The members of the subcommittee, Reps. Charlie Thomson, Megan Srinivas, and Steve Holt were unanimously supportive of moving the bill forward.  The bill is likely to go through the House Judiciary Committee next week.   

Appropriations subcommittee meetings continued this week.  The Senate Economic Development Committee heard from Iowa Workforce Development, Councils of Government and had an opportunity to hear from Ambassador Terry Branstad who provided an update on the World Food Prize.  The Senate Health and Human Services Committee also met to discuss the Governor’s priorities for the HHS budget.  The House continued with their meetings as well, notably, Secretary of Agriculture Mike Naig presented before the House Agriculture and Natural Resources Appropriations Subcommittee.  Naig provided the IDALS 2023 Annual Report discussing Iowa’s soil conservation and water quality progress.  He also discussed the IDALS FY 2025 Budget and a Summary of IDALS programs and budgets for FY 23 and FY 24.   

In the Know  

Pipeline Update.  On Monday, POET announced that it would be partnering with Summit Carbon sequestration pipeline, “connecting the world’s largest biofuel producer with the world’s largest carbon capture and storage project.”  The new partnership will include POET’s 12 Iowa plants and five in South Dakota. This new partnership is expected to capture 4.7 million metric tons of CO2 annually.  

Elections Continued.  Senator Todd Taylor (D) announced that he would be retiring from the Senate and has instead opted to run for Linn County Auditor in November.  The current Auditor Joel Miller is not seeking reelection.  Taylor, the second longest-serving legislator at the Capitol was first elected to the House in 1995.  He served in that capacity until his election to the Senate in 2018.  Taylor is the Ranking Member on Justice Systems Appropriations and the Ranking Member on the Transportation Committee.  Current Democratic Representative Art Staed announced he will run for Taylor’s seat.  This means that both the longest serving legislator, Senator Pam Jochum and the second longest serving legislator Taylor will not be returning in 2025.   

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Legislative Forums  

While many lawmakers hold forums in their districts year-round, it’s especially important for them to hear from constituents when they’re making decisions during the legislative session.  The events listed below are opportunities to get involved. You can also find these events on BrownWinick’s Iowa Political Events page.   

Key Dates — 2024 Iowa Legislative Session 

Scene on the Hill

January 30, 2024: High school students from across the state converged on the Capitol in their recognizable purple FFA jackets.  The FFA Association is a youth organization of more than 19,000 student members as part of 260 local chapters across Iowa.