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6919 Vista Drive

West Des Moines, IA 50266

2024 Iowa Legislative Session

 

 

Week 6 - Highlights

The sixth week of the 2024 Iowa legislative session has come to an end and with it – the first legislative funnel has closed. Most legislation, with a handful of exceptions, had to pass a vote by a full committee in one of the chambers by this funnel deadline to remain eligible to become law this year.
 
The Senate Education Committee approved SSB 3073 GOVERNOR AEA/TEACHER BILL, but only after striking the entire bill for new language. The House is moving forward with their version, AREA EDUCATION AGENCY PLANS HSB 713, passing out of the House Education Committee this week. 

Governor Reynolds shared that all of her legislative priorities survived the first funnel and released a the following statement:

Iowans expect their elected leaders to lead on issues that help move our state forward. My legislative priorities focus on improving literacy, teacher salaries, and special education, aligning our mental health and substance use regions to better serve Iowans, extending postpartum coverage for women in need, cutting taxes, and further strengthening our laws on foreign ownership of land. As the legislative process continues, so will conversations on how we deliver results for Iowans. Iowa has cemented itself as a national leader, and these priorities take us another step further.
 

Updates on Notable Bills

SF 2359 PERSONAL INSURANCE LINES NON-RENEWAL
Increases the time for notice of non-renewal/renewal of a personal lines insurance policy to 60 days before the policy ends.

HF 2492 BIOMARKER TESTING
Requires health insurance policies cover biomarker testing when the testing has demonstrated clinical utility. Defines such testing and the circumstances when the testing is covered. Requires the Insurance commissioner to adopt rules. Includes HAWK-I and Medicaid MCO contracts. Effective after January 2025.
 
HF 2488 PRIOR AUTHORIZATION
Requires a utilization review organization to respond to a request for a prior authorization within 48 hours for urgent requests and 10 days for non-urgent requests, with some exceptions for unusual circumstances or a high volume of requests. Requires the provider receive notice of the request within 24 hours. Requires the organization to review the requests and to eliminate prior authorization for procedures that are usually approved. Authorizes complaints to be made to the Insurance Division. Pilot: Requires a pilot program to exempt providers from prior authorization. Requires reports to the Insurance Commissioner.
 
HF 2490 MUTUAL INSURANCE COMPANIES
Allows a county or state mutual association to reorganize by forming a mutual holding company, or with the approval of the Insurance Commissioner, to reorganize as an insurance holding company. Includes domestic mutual property & casualty insurers and mutual insurers.
 
HF 260 BEER SHIPPING
Creates a direct beer shipper license governed under the same rules as for wine shipping. Sets the fee at $25 and requires the shipper to pay the beer barrel taxes.
 
HF 2483 GOVERNOR’S FOREIGN LAND BILL
Establishes registration requirements for foreign ownership of agricultural land and eliminates some current requirements. Specifies information that must be included in a registration. Gives the AG enforcement duties and increases civil penalties
 
SF 2299 BREWER WHOLESALER AGREEMENTS
Prohibits brewer from requiring wholesalers to agree to unreasonable conditions regarding the use of an e-commerce platform from the brewer.
 
SF 2293 REINSURANCE REQUIREMENTS
Allows state and county mutual insurance associations to reinsure with any company that complies with reinsurance requirements.
 
SSB 3108 INSURANCE INVESTMENTS
NAIC insurers:
 Prohibits specified insurers from acquiring an investment that makes the aggregate amount of investment held by the insurer to be more than 25% of the assets of the insurer. Collateral Loans: Allows an insurer to acquire collateral loans or debt secured by assets or investments as long as the loan does not exceed 90% of the value.
 
HF 2447 ELECTRIC & NATURAL GAS VEHICLE WEIGHTS
Lets electric vehicles with batteries and natural gas powered vehicles to exceed weight limits, up to 82,000.
 
SF 2251 GOVERNOR POST-PARTUM COVERAGE
Requires the HHS to submit a Medicare/Medicaid amendment to provide 12-months of continuous post-partum coverage to women at 215% of the FPL and to update infant eligibility for CHIP. Effective as of January 2025.
 
HF 2400 DENTAL CARE NETWORKS
Permits a contracting entity to grant 3rd party access to a dental provider care network if a number of specified conditions are met. Prohibits a dental service from requiring payment through a virtual credit card. Does not allow provisions to be waived
 
HF 2401 PBM DISCRIMINATION
Prohibits a PBM from discriminating against a pharmacy in regard to referrals, reimbursements or participation in covered services if the pharmacy is acting within its scope of authority and according to law. Applies to contracts renewed on or after July 2024 for 2025.
 
SF2357 PHARMACY BENEFIT MANAGERS
Deems that PBMs owe pharmacies a duty of fair dealing and good faith. Prohibits a PBM from assessing or collecting charges that pass from a pharmacist to the PBM. Requires PBMs to update the maximum allowable cost list within seven days of a 10% increase in the national average drug acquisition cost. Requires the annual report by PBMs include protections for certain information regarding third-party payors, prices and rebates.

HF 2402 MEDICAID CLAIMS
Requires DHHS to establish a tiered rate methodology for PMIC Medicaid reimbursements, based on patient acuity, as of January 2025.
 
SF 2268 SERVICE ANIMAL ACCOMMODATIONS
Allows a housing provider to deny an accommodation for an assistance or service animal if the accommodation would impose an undue financial burden, or pose a threat to health and safety, cause substantial property damage or is otherwise unreasonable. Finding: Requires a written finding from an approved licensee that an assistance animal is a reasonable accommodation, and that the licensee has met with the animal owner in the last 30 days. Includes other requirements for the finding. Makes a written finding valid for 12 months. Instructs the Commission on Civil rights to create forms and offer training to medical boards.
 
SF 2382 REAL ESTATE BROKERS
Creates an exception to regulations on real estate brokers for a person or entity that is involved in renting property for various limited liability companies and partnerships. Effective on enactment.
 
HF 83 SHIPPING LIQUORS
Establishes a direct shipping license for native distillers who distill less than 100,000 gallons annually. Models the provisions on shipping licenses for native wineries. Includes requirements to register products with the ABD, to make regular shipping reports and to make payments to the ABD for the liquors that are shipped. Establishes penalties.
 
SF 2081 MEDICARE SUPPLEMENT OPEN ENROLLMENT
Establishes an open enrollment period for Medicare supplement policies from 30 days after an applicant’s birthday. Makes definitions, including for eligible applicants (over 65 and eligible for Medicare or under 65 but eligible due to renal disease or exposure to environmental hazards). Includes restrictions on conditioning the policies on certain restrictions. Requires the Insurance Commissioner to adopt rules.
 
SF 2214 INSULIN PRICE
Requires insurance coverage to cap the price of insulin at $25 for a month supply. Does not prohibit insurance from charging less.

SF 2244 IUB PLANS & MATTERS
Requires the IUB to seek safe, affordable and non-discriminatory rates for Iowans. Prohibits setting different rates for customers in the same service class unless the utility can demonstrate measurable differences. Plans: Requires rate-regulated utilities to file an integrated resource plan and update the plan every three years. Requires the plan to include proposed facilities, projected service demands, energy efficiency plans and other matters. Requires electric utilities required to file an energy efficiency plan to include the plan in the integrated resource plan. Allows the IUB to create procedures for contested cases. Requires the IUB and the Consumer Advocate to review the plan. Other: Strikes intent language by the Legislature to create renewable power for electric needs.

SF 2360 GENETIC INFORMATION RELEASES
Includes life insurance, disability insurance and long-term care insurance under the provisions limiting the release of genetic information by insurers.
 
SF 2356 SOLAR COMMUNITY FACILITIES
Establishes a community solar facility program for distributed generation. Allows a subscriber to receive bill credits for electricity generated. Makes definitions, including that for the bill, an electric utility is a rate- regulated public utility. Requires a utility to purchase in accordance to established billing methods. Requires the IUB to develop interconnection agreements. Limits the solar community to in-state subscribers. Allows it to be investor owned. Requires the IUB to adopt rules.

SF 2368 CHARTER SCHOOLS / SCHOOL START DATE
Establishes a new formula for funding charter schools (regular school aid plus add-ins). Requires public schools to give charter schools reasonable access to school property and to give charter schools a right of first refusal on purchases of property. Makes definitions. Start date: Makes the school start date the first Tuesday after the final day of the Iowa State Fair. Other: Strikes requirements for members of charter school boards to be Iowans.
 

News Clips

House GOP unveils its own plan for AEAs

Senate Republicans outline another AEA restructuring plan

Governor’s plan to cut, merge 111 state boards gets scaled back

Hundreds at Iowa House hearing on bill with gender definitions

 

Week 5 - Highlights

The fifth week of the 2024 Iowa legislative session has come to an end and the date of the first funnel deadline is just a week away (2/16/24). This week was a busy week for the legislature, passing many bills through respective committees to keep legislative priorities alive.
 
This week also saw the unfortunate passing away of an Iowa leader in the agriculture community and a friend to many across the state and the nation. Former Iowa Secretary of Agriculture Bill Northey has died. Northey farmed around Spirit Lake and was elected as the Secretary of Agriculture three times. He served for 11 years and left the Secretary of Agriculture position to serve as an undersecretary at the USDA from 2018-2021.
 
Governor Reynolds ordered state flags be flown at half-staff and issued a statement Monday:
 
Bill was a great leader whose work ethic and passion for Iowa agriculture was unmatched. Iowans and farmers around the country were fortunate to have such a rock-solid advocate and friend. Bill understood well our responsibility to be good stewards of the land and exemplified that calling throughout his career. But his life’s greatest role was as a loving husband, father, and grandfather. Bill will be missed. Kevin and I offer our deepest condolences and prayers to Cindy and their family.
 
This week, Governor Reynolds also extended the proclamation for the city of Perry and the Perry schools that deploys all available state resources, equipment and materials to assist Dallas County and the city of Perry after the January 4th shooting at Perry High School. The proclamation now continues through March 6, 2024. The extension of the proclamation continues the emergency activation of state agencies in their assistance efforts, prompts enhanced coordination processes at the State Emergency Operations Center and removes administrative barriers.
 

Updates on Notable Bills

HF 71 BREAST CANCER COVERAGE
Requires various health insurance coverages to cover diagnostic breast cancer exams. Makes definitions and includes limits on cost-sharing. Requires the Insurance Commissioner to adopt rules. AMENDED & PASSED 22-0 out of House Commerce Committee. 
 
HF 2157 BIOMARKER TESTING
Requires health insurance policies cover biomarker testing when the testing has demonstrated clinical utility. Defines such testing and the circumstances when the testing is covered. Requires the Insurance commissioner to adopt rules. Includes HAWK-I and Medicaid MCO contracts. Effective after January 2025. AMENDED & PASSED 22-0 out of House Commerce Committee.
 
HSB 641 PRIOR AUTHORIZATION
Requires a utilization review organization to respond to a request for a prior authorization within 48 hours for urgent requests and 10 days for non-urgent requests, with some exceptions for unusual circumstances or a high volume of requests. Requires the provider receive notice of the request within 24 hours. Requires the organization to review the requests and to eliminate prior authorization for procedures that are usually approved. Authorizes complaints to be made to the Insurance Division. Pilot: Requires a pilot program to exempt providers from prior authorization. Requires reports to the Insurance Commissioner. AMENDED & PASSED 22-0 out of House Commerce Committee.
 
HSB 652 MUTUAL INSURANCE COMPANIES
Allows a county or state mutual association to reorganize by forming a mutual holding company, or with the approval of the Insurance Commissioner, to reorganize as an insurance holding company. Includes domestic mutual property & casualty insurers and mutual insurers. AMENDED & PASSED 22-0 out of House Commerce Committee.
 
HF 260 BEER SHIPPING
Creates a direct beer shipper license governed under the same rules as for wine shipping. Sets the fee at $25 and requires the shipper to pay the beer barrel taxes. PASSED 19-3 out of House State Government Committee.
 
HSB 663 GOVERNOR’S FOREIGN LAND BILL
Establishes registration requirements for foreign ownership of agricultural land and eliminates some current requirements. Specifies information that must be included in a registration. Gives the AG enforcement duties and increases civil penalties. PASSED 22-0 out of House State Government Committee.
 
SSB 3075 UTILITIES OMNIBUS
Alternate Energy: Adds electric energy storage facilities and nuclear facilities to the definition of alternative energy facilities. Strikes certain reporting requirements by the IUB on wind energy facilities. Public Utilities:Raises the reporting threshold for certain financial disclosures by public utility affiliates to $250,000. Cable: Makes changes related to cable franchises, including in definitions and in extending franchises to 25 years.AMENDED & PASSED 17-0 out of Senate Commerce Committee.
 
SSB 3076 BREWER WHOLESALER AGREEMENTS
Prohibits brewer from requiring wholesalers to agree to unreasonable conditions regarding the use of an e-commerce platform from the brewer. AMENDED & PASSED 17-0 out of Senate Commerce Committee.
 
SSB 3083 REINSURANCE REQUIREMENTS (now SF 2293)
Allows state and county mutual insurance associations to reinsure with any company that complies with reinsurance requirements. PASSED 17-0 out of Senate Commerce Committee.
 
SSB 3108 INSURANCE INVESTMENTS
NAIC insurers:
 Prohibits specified insurers from acquiring an investment that makes the aggregate amount of investment held by the insurer to be more than 25% of the assets of the insurer. Collateral Loans: Allows an insurer to acquire collateral loans or debt secured by assets or investments as long as the loan does not exceed 90% of the value. PASSED 17-0 out of Senate Commerce Committee.
 
HSB 611 ELECTRIC & NATURAL GAS VEHICLE WEIGHTS
Lets electric vehicles with batteries to exceed weight limits and natural gas powered vehicles, up to 82,000. PASSED 21-0 out of House Transportation Committee.
 
SSB 3140 GOVERNOR POST-PARTUM COVERAGE (now SF 2251)
Requires the HHS to submit a Medicare/Medicaid amendment to provide 12-months of continuous post- partum coverage to women at 215% of the FPL and to update infant eligibility for CHIP. Effective as of January 2025. PASSED 9-5 out of Senate Health & Human Services Committee.
 
HSB 606 INSURANCE INVESTMENTS (now HF 2405)
NAIC insurers: 
Prohibits specified insurers from acquiring an investment that makes the aggregate amount of investment held by the insurer to be more than 25% of the assets of the insurer. Collateral Loans: Allows an insurer to acquire collateral loans or debt secured by assets or investments as long as the loan does not exceed 90% of the value. PASSED 23-0 out of House Commerce Committee.
 
HSB 638 DENTAL CARE NETWORKS (now HF 2400)
Permits a contracting entity to grant 3rd party access to a dental provider care network if a number of specified conditions are met. Prohibits a dental service from requiring payment through a virtual credit card. Does not allow provisions to be waived. AMENDED & PASSED 23-0 out of House Commerce Committee.
 
HSB 640 PBM DISCRIMINATION (now HF 2401)
Prohibits a PBM from discriminating against a pharmacy by in regard to referrals, reimbursements or participation in covered services if the pharmacy is acting within its scope of authority and according to law. Applies to contracts renewed on or after July 2024 for 2025. PASSED 23-0 out of House Commerce Committee.
 
HSB 502 MEDICAID CLAIMS (now HF 2402)
Requires DHHS to establish a tiered rate methodology for PMIC Medicaid reimbursements, based on patient acuity, as of January 2025. AMENDED & PASSED 21-0 out of House Health & Human Services Committee.
 

News Clips

Widow of Iowa firefighter who died of cancer lobbies for legislation

Bill would require parental permission for minors to have social media accounts

Former Iowa Ag Secretary Bill Northey has died

Reynolds to send another group of Iowa officials to assist Texas at Mexican border

Senate GOP leader optimistic lawmakers can agree on some AEA changes

 

 

Week 4 - Highlights

The fourth week of the 2024 Iowa legislative session has come to an end. This week the Senate and House held subcommittees on their respective GOVERNOR AEA/TEACHER BILL (SSB 3073 HSB 542). The Senate moved their bill forward, but the House did not move the bill out of their subcommittee at this time. The legislation is expected to be amended before it reaches the floor for debate. Both Senator Rozenboom, who sits on the Senate subcommittee and Representative Wheeler, who is managing the House bill, said that the idea will need more work.
 
On Thursday, the leaders of both tax writing committees in the Legislature issued a joint press release announcing bills that will seek to make Iowa’s tax climate more competitive. SSB 3141 would Accelerate current income tax cuts for Tax Years 2024-2026 and Lower the individual rate to 3.65% in TY 2027
 
A Taxpayer Relief Trust and Income Tax Elimination Fund will be created that eliminates the individual tax rate by buying down the rate over time. Corporate net receipts over $700 million each fiscal year are used to buy down the corporate tax rate. Iowa's top rate for TY 2024 is 7.1%. Current law allows that to be brought down to a flat 5.5%. That rate would drop to 4.9% under the bill.
 
Senator Dan Dawson and Representative Bobby Kauffman introduced a second bill proposing a constitutional amendment, stipulating that a two-thirds majority in both chambers would be required to increase income tax rates. Additionally, this amendment would solidify the implementation of a flat tax. The legislation would need to pass two consecutive legislatures and would then be placed on the ballot for Iowans to vote.
 

Updates on Notable Bills

HSB 105 SF 108 UNAUTHORIZED ALIEN WORKERS
Prohibits the employment of unauthorized workers and requires the use of the e-verify system. The senate bill (SF 108) PASSED 11-5 out of Senate Judiciary Committee, but the House companion bill (HSB 105) was TABLED and did not pass its subcommittee at this time.
 
HSB 514 PERSONAL INSURANCE LINES NON-RENEWAL
Increases the time for notice of non-renewal/renewal of a personal lines insurance policy to 60 days before the policy ends. PASSED 23-0 out of House Commerce CommitteeBill renumbered as HF 2265.
 
HSB 540 BREWER WHOLESALER AGREEMENTS
Prohibits brewer from requiring wholesalers to agree to unreasonable conditions regarding the use or non-use of an e-commerce platform from the brewer. Amended and PASSED 23-0 out of House Commerce Committee. Bill renumbered as HF 2277.
 
HSB 554 INSURANCE INFORMATION & POWERS
Includes information from individual producers and business producers under confidentiality provisions for insurance information. Prohibits disclosure by the Insurance Division or release through subpoenas. Power:Includes insurance providers who are subject to a federal securities provision under the current penalty powers of the Insurance Commissioner. PASSED 23-0 out of House Commerce Committee. Bill renumbered to HF 2263. The companion bill SSB 3081 also passed 16-0 out of Senate Commerce Committee and was renumbered as SF 2153.
 
HSB 555 UTILITIES OMNIBUS
Alternate Energy:
 Adds electric energy storage facilities and nuclear facilities to the definition of alternative energy facilities. Strikes certain reporting requirements by the IUB on wind energy facilities. Public Utilities: Raises the reporting threshold for certain financial disclosures by public utility affiliates to $250,000. Cable: Makes changes related to cable franchises, including in definitions and in extending franchises to 25 years.PASSED 23-0 out of House Commerce Committee. Renumbered as HF 2279.
 
HSB 585 SCHOOL START DATE
Allows the earliest school start date to be the Monday preceding August 23 if August 23 is a weekday. PASSED 21-1 out of House Education Committee. 
 
HSB 501 REVIEW OF MEDICAID CLAIMS 
Limits the review of paid Medicaid claims after 24 months except for fraud or misrepresentation. Does not allow for repayment or for offsets of the old claims. PASSED 21-0 out of House Health & Human Services Committee. Bill renumbered as HF 2268.
 
SSB 1097 WATER SYSTEM PURCHASES
Increases the threshold value for the purchase of a water utility by a public utility to $5 million before needing IUB approval. Requires a city to certify that it has met appraisal requirements and considered alternatives before the purchase of a city utility. Requires the rate base in the final order to include reasonable closing costs. Retains requirements that the IUB issue a final order in 120 days for at-risk utilities and 180 days for other acquisitions. Amended & PASSED 16-0 out of Senate Commerce Committee. Renumbered as SF 2181.
 
SSB 3001 BIOMARKER TESTING 
Requires health insurance policies cover biomarker testing. Defines such testing and the circumstances when the testing is covered. Requires the Insurance commissioner to adopt rules. Includes HAWK-I and Medicaid MCO contracts. Effective after January 2025. Amended & PASSED 16-0 out of Senate Commerce Committee. Renumbered as SF 2159.
                                                                       
HF 496 WARRANTLESS TOBACCO INSPECTIONS
Requires retailers of tobacco products and alternative nicotine products to allow warrantless searches and inspections by various law enforcement, fire and health officials and government agencies for violations as a condition of receiving a permit. Amended & PASSED 22-0 out of House State Government Committee. Similar, but not companion, bill SF 2023 PASSED 17-0 out of Senate State Government Committee.
 
HSB 595 RENTAL MANAGEMENT EXCEPTIONS
Creates an exception to regulations on real estate brokers for a person or entity that is involved in renting property for various limited liability companies and partnerships. Creates an exception for a non-licensed employee of a real estate broker to perform various real estate rental practices. Effective on enactment and affects pending proceedings and proceedings that are not fully adjudicated. Amended & PASSED 22-0 out of Senate State Government. 
 
SSB 3113 GOVERNOR’S FOREIGN LAND OWNERSHIP BILL
Establishes registration requirements for foreign ownership of agricultural land in owner and eliminates some current requirements. Specifies information that must be included in a registration. Gives the AG enforcement duties and increases civil penalties. PASSED 16-0 out of Senate Judiciary Committee.
 
 

News Clips

Iowa’s individual income tax could be eliminated under Republican lawmakers’ plan

Tax panel chairmen propose new idea as ‘glide path’ to 0% Iowa income tax

Grassley says House GOP resetting conversation about AEA overhaul

Bill calls for confidential report on foreign ownership of Iowa farmland

 

Week 3 - Highlights

The third week of the 2024 Iowa legislative session has concluded. More than one hundred subcommittee meetings took place this week and the House and Senate continue to pass bills out of full committees. The first funnel deadline is 3 weeks away (2/15) – in order for a bill to pass the first funnel, it must be approved by a standing committee by or before this date. There are exceptions to this rule for Ways & Means, Appropriations, and a few other types of legislation. 
 
This week the Governor extended her proclamation easing restrictions on transporting fuels used for heat. It suspends hours of service restrictions propane diesel, natural gas and any other fuels used for residential, commercial and agricultural purposes. The proclamation is now effective through February 8, 2024. 
 
The Governor also made comments on the border issuing a joint statement with 24 other Republicans on the Texas-Mexico border reading as follows: 
 
"President Biden and his Administration have left Americans and our country completely vulnerable to unprecedented illegal immigration pouring across the Southern border. Instead of upholding the rule of law and securing the border, the Biden Administration has attacked and sued Texas for stepping up to protect American citizens from historic levels of illegal immigrants, deadly drugs like fentanyl, and terrorists entering our country.
 
We stand in solidarity with our fellow Governor, Greg Abbott, and the State of Texas in utilizing every tool and strategy, including razor wire fences, to secure the border. We do it in part because the Biden Administration is refusing to enforce immigration laws already on the books and is illegally allowing mass parole across America of migrants who entered our country illegally. The authors of the U.S. Constitution made clear that in times like this, states have a right of self-defense, under Article 4, Section 4 and Article 1, Section 10, Clause 3 of the U.S. Constitution. Because the Biden Administration has abdicated its constitutional compact duties to the states, Texas has every legal justification to protect the sovereignty of our states and our nation."
 

Area Education Agencies Update

Governor Reynolds announced changes to her AEA bill (SSB 3073 and HSB 542) and will allow AEAs to continue to offer additional services, such as media services to schools. Representative Wheeler and Senator Evans are chairing the subcommittees, and subcommittee work is expected to begin next week. The Governor’s proposal will give the DOE oversight over the AEAs and will allow schools to decide if they wish to use special education services from an AEA or from another provider.
 
Reynolds said that the decision to amend the bills followed discussions with parents, school personnel and legislators. Reynolds said, “Student success is my central focus, and the goal of my bill is to ensure Iowa’s students with disabilities receive the world class education they deserve. Schools and parents know their students best, and this bill ensures they are in the driver’s seat in deciding how best to support their students. This model will give schools control over their money and create more transparency in the system, while also ensuring AEAs can provide the education support some schools rely on.”
 

Updates on Notable Bills

SF 108 UNAUTHORIZED ALIEN WORKERS
Prohibits the employment of unauthorized workers and requires the use of the e-verify system. PASSED 2-1 out of Senate subcommittee. 
 
HSB 509 MEDICAL TRUST FEES
Increases the amount for medical income assistance trust fees to $50 a month if the income of the beneficiary income is no more than 125% of the FPL. AMENDED & PASSED 20-0 out of House Judiciary Committee.
 

Introduction of Notable Bills

SSB 3094 FINANCIAL DISCRIMINATION
Prohibits financial institutions from using social credit scores to discriminate against persons. Makes definitions and allows the AG to bring enforcement actions.
 
HF 2121 REINSURANCE TAX RATES
Decreases the rates for reinsurance premiums for captive insurance companies: (0.02 % for the first $20 million; 0.0125% for $20 million to $40 million; 0.045% over $40 million. Effective on enactment.
 
SSB 3102 LANDLORD OMNIBUS
Fee: Increases the fee for a manufactured/mobile home manufacturer to $120. Other: Makes conforming changes for the use of the word “rent” between landlord/tenant and mobile home law. Makes changes to computing certain deadlines for service, in eviction (forcible entry & detainer cases) notices, in bars to eviction actions and changes in other related matters.
 
HF 2127 MEDICAL STATUTE OF REPOSE
Exempts an action from the medical malpractice statute of repose limits (six years) if the cause of the injury or death was concealed by the doctor or health care professional.
 
HF 2139 SCHOOL PRONOUNS
Prohibits schools and charter schools from disciplining employees, contractors or students for the use of a legal name, or the failure to use a personal pronoun. Allows an employee who is terminated to sue for reinstatement and to seek civil damages in three times the amount of back pay.
 
HF 2157 BIOMARKER TESTING
Requires health insurance policies cover biomarker testing when the testing has demonstrated clinical utility. Defines such testing and the circumstances when the testing is covered. Requires the Insurance commissioner to adopt rules. Includes HAWK-I and Medicaid MCO contracts.
 
SF 2117 CAR TITLE INFO
Strikes the requirement that a car title include the name and address of the previous owner and requires the county treasurer and the DOT to maintain such information.

SF 2116 DRIVING RULES
Makes changes to driving rules. Requires a driver to stay in the right lane on two-lane roads with exceptions for passing and avoiding obstructions and in the center lane for three-lane roads, with the right lane for exiting the road. Authorizes passing only when it can be completed safely.
 
SF 2122 PHARMACIST/PRACTITIONER JUDGEMENT 
Prohibits various health boards or employers from acting to restrict what a pharmacist can dispense or what a practitioner can prescribe, if those restrictions interfere with the judgement of the pharmacist or practitioner about the best medical treatment. Makes any such restriction unenforceable and deems that it cannot be the basis of disciplinary action. Makes definitions.
 
SF 2123 SHORT-TERM RENTAL EXEMPTION
Exempts cities and counties with less than 75,000 people from current restrictions on the power of counties and cities to regulate short-term rentals.
 
SF 2124 DELINQUENT PROPERTY ASSESSMENT COLLECTIONS
Allows for collections related to a delinquent assessment for the cost of a public improvement adjacent to a property if the value of the building is more than $5,000.
 

News Clips

 

Week 2 - Highlights

The second week of the 2024 Iowa legislative session has come to an end. Nearly 350 bills have already been filed and the House and Senate subcommittees moved several bills this week with some House committees passing legislation out of full committees for the first time on Thursday. While no bills have seen floor debate yet this year, the House adopted a resolution, HR 101 SUPPORTING ISRAEL, on Thursday morning. The resolution condemns the attacks by Hamas on October 7, and proclaims the support of Iowa for Israel. The sponsors of the resolution read the text, but legislators did not debate the resolution. 
 
TikTok Lawsuit:
Attorney General Bird filed a lawsuit against the TikTok app on Wednesday in federal district court in Polk County. Bird said that the app misleads parents about the sexual content, and other inappropriate content, available to minors. In a statement she said:
 
TikTok has kept parents in the dark. It’s time we shine a light on TikTok for exposing young children to graphic materials such as sexual content, self-harm, illegal drug use, and worse. TikTok has sneaked past parental blocks by misrepresenting the severity of its content. But no longer. As a mom and prosecutor, I am committed to equipping parents with information to keep their kids safe and to holding TikTok accountable.
 
Area Education Agencies:
The Governor has made it a priority to reform Iowa’s AEA System this session. Here are her latest remarks on the issue: 
 
If there’s an issue Iowans are most passionate about, it’s undoubtedly about our kids. As a grandmother of 11, ranging in age from pre-school to high school, I understand. There’s nothing more important than our children. It’s why so many of my policy priorities as governor have focused on building strong families and elevating education for every student. This year is no exception. 
 
In fact, students are the very focus of my education policy this legislative session. Whether it’s raising teacher salaries or improving literacy, my priority is ensuring every child has the advantage of a quality education to help them reach their highest potential. That includes students with disabilities who receive special education services—and it’s why I’m proposing to reform Iowa’s Area Education Agencies (AEAs). 
 
Fifty years ago, regional AEAs were created to serve children and students with disabilities. These services are critical. From early interventions for infants and toddlers to speech therapy for K-12 students, AEAs will continue to offer the guidance and reassurance families need and the support teachers rely on.   
 
Over the years, AEAs have expanded well beyond the scope of special education, providing a wide array of other offerings for teachers, schools, and districts. These range from athletic coaching certification, cybersecurity, and classroom book sets, to providing graphic design and printing. In fact, only about one-third of the services AEAs list today are focused on supporting children with disabilities.  
 
As the AEAs expanded their services, the outcomes of students with disabilities declined. Over the last 20 years, Iowa’s fourth grade students with disabilities have consistently performed below the national average when compared to students with disabilities in other states. In the last five years, fourth and eighth graders with disabilities have ranked 30th or lower on nine of 12 national reading and math assessments. 
 
Despite consistently poor outcomes, under the current system schools are forced to send their state and federal money for special education services directly to the AEAs. Iowa is the only state in the nation that operates this way. If we don’t do something different, we can simply expect more of the same. That’s not good enough for our children, and it’s why I’m proposing a change. 
 
Under my bill, AEAs will continue providing special education services as they do now, including Early ACCESS and Child Find. But state and federal special education funds will be controlled by Iowa’s public school districts. I’m also proposing schools get their share of AEA funding for education services. 
 
With control of these funds, schools will determine what’s best for their students. If they like the services from their AEA, they can continue to use them exactly as they do today. Or they could choose to use the services of a neighboring AEA. They can also go outside the AEA system and partner with other districts to share services or contract with another accredited provider. Or they can spend more on special education teachers and put the funds right into the classroom. This legislation puts control in the hands of those who work directly with students every day. 
 
And to ensure the AEA system is held accountable and results for students with disabilities improve, the Iowa Department of Education will provide meaningful oversight of special education.
 
AEAs play an important role in our state and that will continue. But their role should be entirely focused on students—not maintaining a system. We don’t need the AEAs to be all things. We need them to be one thing: the state’s premier provider of special education services.
 
The Governor’s Tax Legislation: 
Governor Kim Reynolds unveiled a bold legislative proposalHSB 543 SSB 3038, seeking to enhance our income tax climate, provides property tax relief to childcare centers and cuts unemployment insurance taxes. 
 

Details of the bill:
  • In Tax Year 2024, there’s a flat individual income tax rate of 3.65% (which is retroactive to January 1). In Tax Year 2025, that rate becomes 3.5%.
  • Childcare facilities will be recategorized as residential property through a property tax limitation.
  • The maximum Unemployment Insurance tax rate will be lowered from 7% to 5.4% in all tax tables.
  • The number of tax tables will be reduced from eight to four.
  • The tax table rankings will drop from 21 to nine, effectively cutting overall tax categories from 168 to 36.
 
These unemployment tax changes are projected to save employers $800 million over five years.
 

Week 2 - Updates on Notable Legislation

HF 473 WATER SYSTEM PURCHASES
Increases the threshold value for the purchase of a water utility by a public utility to $3 million before needing IUB approval. Requires a city to certify that it has met appraisal requirements and considered alternatives before the purchase of a city utility. Requires the rate base in the final order include reasonable closing costs. Retains the requirement that the IUB issue a final order in 120 days for at-risk utilities and gives the IUB 180 days for others. PASSED 20-0 out of House Commerce Committee.
 
HSB 535 REINSURANCE TAX RATES
Lowers the insurance rates collected on the first $60 million dollars of reinsurance premiums for captive insurance companies. Adds a new rate tier for reinsurance premiums collected over $60 million. Effective on enactment. PASSED 20-0 out of House Commerce Committee.
 
HSB 536 PHARMACY BENEFIT MANAGERS – NABIP has registered for this bill
Deems that PBMs owe pharmacies a duty of fair dealing and good faith. Prohibits a PBM from assessing or collecting charges that pass from a pharmacist to the PBM. Requires PBMs to update the maximum allowable cost list within seven days of a 10% increase in the national average drug acquisition cost. Requires the annual report by PBMs include protections for certain information regarding third-party payors, prices and rebates. PASSED 20-0 out of Commerce Committee.
 

Week 2 - Introduction of Notable Legislation

IA SSB 3001 BIOMARKER TESTING – NABIP has registered against this bill at this time as it’s written
This bill relates to health insurance coverage for biomarker testing.
 
HSB 590 340B DRUG PURCHASES
Prohibits a wholesaler or manufacturer from interfering with the acquisition of 340B drugs by pharmacies or covered entities, or from imposing other restrictions on 340B drug purchases.
 
SSB 3090 DRIVING RULES
Makes changes to driving rules. Requires a driver to stay in the right lane on two-lane roads with exceptions for passing and avoiding obstructions and in the center lane for three-lane roads, with the right lane for exiting the road. Authorizes passing only when it can be completed safely.
 
SF 2052 REAL ESTATE BROKERS
Creates an exception to regulations on real estate brokers for a person or entity that is involved in renting property for various limited liability companies and partnerships. Effective on enactment.
 
SSB 3073 GOVERNOR AEA/TEACHER BILL
Limits the number of AEAs to 9 and gives the governing duties to an executive director, appointed by the DOE, instead of an administrator. Makes AEA boards advisory. Duties: Limits AEAs to special education services and strikes other duties, including media duties. Allows the AEA to offer special education services only if a school requests such services. Requires the services to be done through a contract and limits such contracts to two years. Strikes various planning and collaboration requirements. Property: Prohibits AEAs holding real property and includes transition periods for ending various AEA property or lease interests. Re- Org: Requires the approval of the DOE for a reorganization of an AEA and deems that only the DOE has the authority to dissolve an AEA. Includes transition provisions for employees. Funding: Eliminates the professional development categorical funding for AEAs. Makes corresponding changes. Allows the DOM to reduce the school, district management levy to reflect the funding changes and for the DOM to evaluate the property taxes levies by schools to determine if reductions due to the reduced costs are adequate. Makes other funding changes to reflect changes in AEA duties. Shared Operations: Does not allow AEAs to share operational functions with schools and eliminates any weighting funding. Teachers: Raises the minimum salary for teachers $50,000 and $62,500 for teachers with twelve years of experience. Requires that schools be divided into ten tiers, based on enrollment, for the teacher salary supplement. Requires the DOM to calculate payments for the supplement. Other: Strikes limits on school spending on media services. Makes conforming and other changes.
 
SSB 3075 UTILITIES OMNIBUS
Alternate Energy: Adds electric energy storage facilities and nuclear facilities to the definition of alternative energy facilities. Strikes certain reporting requirements by the IUB on wind energy facilities. Public Utilities: Raises the reporting threshold for certain financial disclosures by public utility affiliates to $250,000. Cable: Makes changes related to cable franchises, including in definitions and in extending franchises to 25 years.
 
SSB 3079 PHARMACY BENEFIT MANAGERS
Deems that PBMs owe pharmacies a duty of fair dealing and good faith. Prohibits a PBM from assessing or collecting charges that pass from a pharmacist to the PBM. Requires PBMs to update the maximum allowable cost list within seven days of a 10% increase in the national average drug acquisition cost. Requires the annual report by PBMs include protections for certain information regarding third-party payors, prices and rebates.
 
HSB 560 AGRICULTURAL OMNIBUS
Horses: Adds requirements for determining a racehorse is Iowa-foaled. Choose Iowa: Expands the products covered and makes a name change. Milk: Includes Grade B milk in the Dairy Innovation fund and makes technical changes. Rewrites Code sections related to Grade A milk. Value-Added Grants: Establishes the value-added grant program to assist in value-added agriculture programs. Breeders: Strikes an exception for greyhound breeders, regulating them like other commercial breeders.
 
SSB 3063 MANUFACTURED HOME REQUIREMENTS
Defines manufactured home communities and mobile home parks. Defines factory-built structures to include commercial modular structures, model home parks and tiny homes. Requires commercial modular structures to meet building code requirements and have anchoring systems designed by architects and meeting federal regulations. Requires par model homes to meet federal anchoring requirements. Requires tiny homes of more than 200 square feet to meet building code safety requirements.

 

 

Week 1 - Highlights

This session is the second session of the 90th General Assembly and is scheduled to be shorter than the first, with 100 days of per diem pay ending on April 16 this year. The first funnel deadline is scheduled for Friday, February 16, and the second funnel deadline is scheduled for Friday, March 15. Find the full legislative session timetable here. 
 
The first week of session included speeches by leadership setting priorities for the coming year and reflecting on a recent Iowa school shooting in Perry, IA just days prior to the start of session. Here are a few highlights: 
 
Speaker Grassley:
Grassley said that House Republicans will continue to be responsible with the tax money of Iowans. He said Republicans will have a “a bold agenda” for the 2024 session. Grassley said Republicans will act to make “sure Iowa is a safe place to live and raise a family.” He said that the shooting at the Perry High School makes this “more urgent than ever.” Grassley said that Republicans will invest in school security, prioritize school resource officers and act to protect children’s mental health. He said that Republicans will rid “our classrooms and school libraries of inappropriate content.” He said that legislation passed last session would have protected school children from inappropriate content and has been ”shocked” by the fight against the bill. Grassley said that Republicans will pass “additional legislation this year to protect our kids from this over- sexualization” if needed.
 
Senate President Sinclair:
Senator Sinclair said that efforts to improve Iowa are working. She said that the state tax climate has improved in national rankings and that the budget “has never been in a stronger position’ due to legislators reducing spending to 88% of ongoing revenues. She said that since gaining “the majority in 2017, Senate Republicans have worked tirelessly to lower taxes, empower families, and restore individual liberties.”
 
Senate Minority Leader Jochum:
Senator Jochum gave her first opening day remarks as the Senate Democratic leader. She had previously served as the Senate president when Democrats were in the majority. Senator Jochum said that the state must “find a solution to gun violence.” She said that no child should go to school in fear and that gun safety and protecting kids are not partisan issues. She said that legislators should find real solutions for problems in Iowa schools, including increased support for our public schools and a meaningful investment in youth mental health services.”
 
 

Week 1 - Notable Bills

HSB 502 MEDICAID CLAIMS 
Requires DHHS to establish a tiered rate methodology for PMIC Medicaid reimbursements, based on patient acuity, as of January 2025.

SF 2010 SCHOOL START DATE
Changes the earliest school start date to the first Tuesday after the end of the State Fair.

HF 2007 VEHICLE ACCIDENT RESTITUTION 
Requires additional restitution based on maintenance needs of minor children from a driver who causes a death in situations currently requiring maintenance. Establishes the factors to be used by the court in determining maintenance amounts.

HSB 536 PHARMACY BENEFIT MANAGERS
Deems that PBMs owe pharmacies a duty of fair dealing and good faith. Prohibits a PBM from assessing or collecting charges that pass from a pharmacist to the PBM. Requires PBMs to update the maximum allowable cost list within seven days of a 10% increase in the national average drug acquisition cost. Requires the annual report by PBMs include protections for certain information regarding third-party payors, prices and rebates.

HSB 554 INSURANCE INFORMATION & POWERS
Includes information from individual producers and business producers under confidentiality provisions for insurance information. Prohibits disclosure by the Insurance Division or release through subpoenas. Power: Includes insurance providers who are subject to a federal securities provision under the current penalty powers of the Insurance Commissioner.

HSB 555 UTILITIES OMNIBUS
Alternate Energy: Adds electric energy storage facilities and nuclear facilities to the definition of alternative energy facilities. Strikes certain reporting requirements by the IUB on wind energy facilities. Public Utilities: Raises the reporting threshold for certain financial disclosures by public utility affiliates to $250,000. Cable: Makes changes related to cable franchises, including in definitions and in extending franchises to 25 years.

Government Relations Chair

For questions regarding government relations, please contactm strouse17

Katie Rosenboom
krosenboom@heartlandbanks.bank

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