Government Relations Legislative Update - Week Seven

Capitol Update 

The focus of the legislature this week turned toward Floor Debate.  Mostly non-controversial bills were considered.  According to Joint House and Senate Rule 20, during week #7 debate is limited to only Senate Files in the Senate and House Files in the House.  The next two weeks of debate are not limited by that rule. 

Budget discussions continued on Monday.  The House Appropriations Administration and Regulation Subcommittee heard from Taryn Frideres, Governor’s Chief of Staff and Kraig Paulsen, Director of the Department of Management.  To see Director Paulsen’s PowerPoint discussion of the FY 25 Department of Management budget, click here.  The presentation includes an update on the state government’s strategic IT consolidation.  Paulsen said that the executive branch currently spends $323 million on IT and that $61 million could be saved over four years through consolidation. 

The Committee also heard from the Department of Insurance and Financial Services, Director Doug Ommen and Chief Financial Officer, David Huang who discussed the department’s activities over the past year.  To see the PPT click here.  The importance of the insurance industry to the state was highlighted with figures showing that the insurance industry is 10.7% of the state’s GDP.  Iowa has the highest share of its private workforce employed in the insurance industry, 2.9% vs 1.74%, in the nation.  The Iowa insurance industry generated $1.0 billion in state and local tax collections which was 5.4% of total tax. 

Income Tax Portion of Governor’s Bill Moves Forward.  The Governor’s tax bill, SSB 3038 was the subject of subcommittee and Committee action this week.  An amendment was adopted in the Senate Ways and Means Committee that removed provisions dealing with childcare and unemployment.  Those issues will be considered in separate bills.  The new tax bill going forward will only focus on the proposed income tax rate reduction. 

Opioid Settlement Funds.  An issue both Democrats and Republicans agree needs to be addressed this session is expenditure of the opioid settlement dollars.  A bill that passed in 2022 not only created a First Responder Fund, but also required that all state-related dollars must be appropriated by the Iowa Legislature.  Last year, there were no appropriations out of that fund.   There are three different proposals of how to do that.  

• HF 2427, sponsored by Representatives Brian Lohse, Jane Bloomingdale, Timi Brown-Powers and Elizabeth Wilson, creates an advisory council within DHHS to make annual recommendations for appropriations. 
• SF 3178, sponsored by Senate Appropriations Chair Tim Kraayenbrink, allocates 75% of the funds to DHHS and 25% to the Attorney General’s Office.  Both departments would be subject to the limitations outlined in the master settlement agreement.  This bill passed subcommittee and Senate Appropriations Committee this week. 
• HSB 689, the Governor’s proposal, gives DHHS the authority to direct funds but specifically allocates money as follows: 
  • $1,550,000 for opioid use prevention and awareness, and naloxone distribution. 
  • $650,000 for syndromic surveillance of opioid use and overdose mapping activities. 
  • $1,000,000 to contract with a third-party vendor to address opioid prescription prevention in medical settings. 
  • $500,000 to example mobile crisis services in local communities related to substance abuse. 
  • $1,000,000 for a peer support overdose response program. 
  • $8,000,000 a recovery provider infrastructure grant program to expand the number of recovery providers in the state. 
  • $3,000,000 for a youth substance use treatment and recovery campus. 
  • $3,000,000 for a recovery housing infrastructure grant program to expand the availability of recovery housing in the state. 
  • $1,500,000 for a scholarship program for individuals who are either seeking treatment or are in active recovery, and for a workforce training program to provide on-the-job training or wage enhancements for individuals who are either seeking treatment or are in active recovery. 

Two bills that give the Iowa General Assembly more rights involving litigation challenging the constitutionality of a statute passed the Senate this week and passed a House subcommittee on Thursday morning. 

• SF 2171 allows the majority leader of the senate, the minority leader of the senate, the speaker of the house of representatives, and minority leader of the house of representatives to file an amicus curiae brief in any appellate proceeding when the constitutionality of an Act of the legislature is called into question.  Each leader may file a separate amicus curiae brief in the proceeding.  The leader’s right to file an amicus curiae brief does not require the leave of the court or written consent of the parties.  Senator Mike Bousselot, the floor leader of the bill, explained that the Iowa Supreme Court updated rules of civil procedure which allow the executive branch and the federal government to file amicus briefs without getting the courts permission, this bill provides the same for the General Assembly. 
• SF 2275 requires notice to the General Assembly in actions regarding the constitutionality of a statute. 

In the Know  

Once bills are placed on the debate calendar, the ability to see that an amendment is filed or to file an amendment becomes very important.  House Rule 31.8 requires that amendments to a bill be filed the day preceding floor debate, by 4:00 p.m. the day before or within 30 minutes of adjournment.  If the House adjourns before 2:00 p.m. on Friday, an amendment can be filed 2 hours after adjournment.  This rule is in effect until April 1, the 12th week of session.  The Senate does not have the same rule governing filing amendments so an amendment can be filed at any time before and sometimes during debate. 

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  

February 21, 2024: Commissioner Ommen stands alongside Governor Reynolds as she delivers the Iowa Insurance Day on the Hill Proclamation.