Light at the end of the tunnel

I believe we are seeing light at the end of the tunnel as we approach the last few weeks of the legislative session. Statutorily we are supposed to be done by the 100th calendar day during election years, and the 110th calendar day in nonelection years. That would put our day to Sine Die for this year on Tuesday next week. However, the legislature often goes into overtime by about a week each year as final budget pieces are negotiated and voted upon by both chambers.

Governor Signs Bill on Foreign Ownership of Land into Law

This week Governor Reynolds signed into law legislation to strengthen Iowa’s laws on ownership of Iowa’s agricultural land by nonresident aliens. Senate File 2204 easily passed with bipartisan support with a vote of 95-0 in the House. The new law increases reporting requirements, increases enforcement of current laws, and authorizes the Attorney General’s office to investigate reports of potential violations of Iowa’s laws concerning foreign ownership.

SF 2204 expands the registration requirements for nonresident ownership to include intermediaries and parent corporations. The reports shall now also include the legal name, birthplace, nationality of the owner, and the supervisor of the daily operations on the land. Additionally, the reports require a statement of the purpose for conducting business in the state. The bill gives the Attorney General the authority to conduct investigations regarding violations of land ownership, including subpoena powers.

The new law also increases the civil penalties for failing to file a report on time by increasing the penalty up to 25% the assessed value of the land. The legislation also requires the Secretary of State to prepare an annual report compiling the information included in the foreign land ownership registrations to be provided to the General Assembly and the Governor.

Regulation of Speed Cameras Passes House

On Tuesday, the House acted on an issue that has vexed the chamber for years – automated traffic enforcement (ATE), aka traffic cameras. For the first time, the House voted to regulate the use of automated traffic enforcement systems surveilling motorists’ speed

The bill, House File 2681, requires all speed cameras to go through a permitting process by the Department of Transportation before they could be put into operation. Cities or counties would have to show the speed and safety issues at the camera’s location and how utilizing the speed camera is necessary to improving traffic safety at that location.

Under the bill, cities or counties only have to apply for one permit, but would have to get DOT approval for all proposed speed camera locations. Cities or counties with a population of under 20,000 would not be allowed to utilize a mobile ATE system for issuing speeding citations. Additionally, the bill establishes standards for the placement of signs alerting motorists to the use of speed cameras. These signs have to be posted between 500 and 1000 feet in front of the camera’s location.

The bill also addresses an issue that many have raised about the current traffic camera situation – at what speed is a violation and how much is the fine. HF 2681 sets a standard for all speed cameras. Penalties will not be imposed if a driver is less than 10 miles an hour over the speed limit. The bill also sets out the fee schedule. The fines are:

•Between 10 and 20 mph over - $75 fine

•Between 20 and 25 mph over - $100 fine

•Between 25 and 30 mph over - $250 fine

•In excess of 30 mph over - $500 fine.

The fines double for citations issued in a designated work zone. Violations are considered civil infractions and are not considered by the DOT in determining driver’s license sanctions. Violations also are not be considered in the determination of auto insurance premium rates.

For those cities and counties that had speed cameras in operation before January 1st of this year, they can continue to operate them as the DOT reviews their permit request. These communities could apply on July 1st for a permit, and DOT must decide on the application by October 1st. For those communities that did not have cameras in operation on January 1st of this year, they could apply to the DOT for permit but they would not be allowed to put the cameras into operation before July 1st of 2026.

The bipartisan bill now moves to the Senate, where similar legislation is awaiting action.

Senate Gives Final Approval to Meat & Egg Integrity Act

On Wednesday, the Senate passed Senate File 2391 on a 33-aye to 12-nay vote. A week earlier, the House had passed the bill by a partisan 60-aye to 34-nay vote. The bill now goes to the Governor for her consideration and likely enactment. The measure provides accurate protein labeling definitions to enable Iowa consumers to know what they are putting on their plates and into their bodies when they purchase an ever-proliferating array of protein food sources, with many of the new products not being historical or typical food stuffs and are now being designed and produced through laboratory activities. The goals of the bill is to:

•Define meat products, cultivated-protein, insect-protein, and plant-protein products,

•Create fair labeling standards, and

•Ensure transparency in the marketplace for consumers.

The bill additionally seeks to:

•Proscribe lab-grown proteins from being purchased through federal SNAP and WIC programs used by low income Iowans,

•Curtail schools (K-12) from purchasing lab-grown protein for school breakfast / lunches, and

•Restricts Regent Institutions and community colleges from purchasing lab-grown protein.

The bill was amended by House to create a parallel and similar provisions through a new Code chapter 137A to protect the integrity of egg products and the branding of egg products and the accuracy of egg marketing terms.

House Releases Health and Human Services Budget

This week, the House released the House Health and Human Services Budget. This budget appropriates $2.217 billion of state general fund to the Department of Veterans Affairs and the Department of Health and Human Services for Fiscal Year 2025. This represents a $92.5 million increase in general fund compared to Fiscal Year 2024. With federal matching funds included, this budget appropriates over $6 billion towards Medicaid, child care, child welfare, public health, aging, and veteran services in Iowa.

Care for Disabled Iowans

•This budget increases home and community-based services rates to care for disabled Iowans in their communities with a $14.6 million investment from the general fund. With additional general fund to backfill ARPA dollars, this budget in total increases disabled care with over $84 million.

•This budget provides $5 million of state general fund to increase access to enhanced case management for Iowans using long-term services and supports.

•This budget provides $1.78 million to increase the eligibility for the Medicaid for Employed people with disabilities program.

Mental Health

•This budget provides $2.25 million in increased state funding towards mental health Medicaid rates. This builds on the work from last year when the legislature passed a $13 million increase.

•Provides an increase to community mental health centers and psychologists based on the 2023 and 2024 Medicaid rate reviews.

•Provides for an enhanced rate to PMICs that provide care to the most complex children in our state.

•Provides funding and employees to specialize the Independence Mental Health Institute to behaviorally complex youth and the Cherokee MHI to acute and forensic adults.

•$3 million for the 988 suicide and crisis hotline.

Older Iowans

•This budget provides a $3 million increase to home health rates. We want to do everything we can to keep Iowans in their homes for longer and to ensure access to rural Iowa.

Pharmacies

•The House has prioritized assisting Iowa’s independent pharmacies against Pharmacy Benefits Managers (HF2401) and passed the Pharmacy Practice Act (House File 555). This budget builds on that work by increasing the Medicaid pharmacy dispensing fee by $2 million.

Provider Rates

•DHHS has provided the legislature with measurable rates in need that are either below Medicare or surrounding states rates. This budget provides rate increases based on that methodology to PTs, medical supplies, OTs, PAs, and nurse midwife's.

Child Welfare

•Decreases the ratio of supervisors to social workers out in the field.

•Increases the stipend for those in the child welfare system utilizing the preparation for adult living program.

•Increases foster care rates and adoption subsidy rates.

•Pays for home studies for those Iowans that are hoping to adopt a child in need.

•Funds House File 2134 to expand subsidized apartment living.

•Funds the Eldora State Training School at the level recommended by the Governor.

Veterans

This budget funds the Department of Veterans Affairs, the Veterans Cemetery, and the Iowa Veterans Home at the Governor’s recommended level. Iowa’s veterans deserve all the support possible for their service to this country, and this budget ensures they have access to benefits through the department and can be put to rest with honor and dignity.

More Public Safety Bills Head to the Governor’s Desk

As session moves towards its completion, more policy bills are headed to the Governor's desk for her approval. Below is a list of some Public Safety bills that have passed both the House and Senate and are awaiting action by the Governor.

House File - 2422 Accessory After the Fact

Raises the penalty for accessory after a crime was committed. The charge is a class "D" felony if the offense was a violation of murder in the first, or second degree, or solicitation to commit murder. The charge is an aggravated misdemeanor if the offense was a felony not listed above and a simple misdemeanor if the offense was a misdemeanor

House File 2592 - Updates to Brady Giglio Law

Allows an officer the right to petition the district court, appeal, or intervene in an action regarding the county attorney’s decision to place the officer on a brady Giglio list. This gives the court jurisdiction over the prosecutor’s decisions on this matter. The court shall perform an in-camera review of the evidence and may hold a closed hearing. The court may affirm, modify, or reverse a prosecutor's decision and issues orders to remove the officer's name from a brady Giglio list. Evidence presented shall be kept confidential. Standard of proof under this chapter shall be preponderance of the evidence.

House File 2605 - Hemp Products

HF 2605 Makes changes to the Iowa Hemp Act. HF 2605 does not impact the Medical Cannabis Program. It ensures that those who illegally produce or sell consumable hemp can be prosecuted and not slip through the cracks if they are violating the law. The bill prohibits sales to those under 21. Consumable hemp products may not be mixed with alcoholic beverages in licensed facilities. THC is capped at 4mg of THC max per serving, 10 mg max per container. No synthetic THC can be produced or sold. Labels on THC products similar to labels on alcohol warning of risks of use.

SF 2161 - False Reports to Law Enforcement

It is a class "D" felony if a person makes a false report or call to public safety officials and claims there is a: forcible felon occurring (felonious child endangerment, assault, murder, sexual abuse, kidnapping, robbery, human trafficking, arson in the first degree, or burglary in the first degree), intimidation with a dangerous weapon, an act of terrorism, unlawful possession of biological agents or diseases, any arson crime. If one of the false claims above is made, and the information results in serious bodily injury or death of another, the person who made the false report is guilty of a class "C" felony.

Applications for Students First Education Savings Accounts Opens Soon

The application window for Education Savings Accounts for the 2024-2025 school year is open from 8:00AM on April 16th through 11:59PM June 30th

Parents who choose to enroll their eligible children in one of Iowa’s accredited nonpublic schools will receive an amount equal to the per pupil funding allocated to public school districts for the same budget school year. For the 2024-25 school year, the amount will be $7,826. Funds are held in an education savings account (ESA) to be used for tuition, fees, and other eligible qualified education expenses.

The state contracted with Odyssey for ESA program administration, including applications, financial transactions, compliance, fraud prevention and customer service. Odyssey securely administers funds and provides families with direct customer service and support.

Students First ESAs are awarded based on the following eligibility:

2024-25 School Year

•A student that was approved and used an ESA in the 2023-24 school year.

•A student entering kindergarten at an accredited nonpublic school.

•A student that attended a public school in the prior year.

•A student enrolled in an accredited nonpublic school with a household income at or below 400% of the 2024 Federal Poverty level.

2025-26 School Year

•All Iowa resident K-12 students attending an accredited nonpublic school regardless of income.

Tips for Returning Families

•Applications:

oAnnual ESA applications are required for all prospective ESA participants.

oA student who was approved for and used an ESA in the 2023-24 school year is not subject to household income requirements for the 2024-25 school year.

oOpen: April 16, 2024

oClose: June 30, 2024

•Funding amount:

oThe ESA amount for the 2024-25 school year will be $7,826.

oESA funds for the 2024-25 school year will be available beginning July 15th, or 30 days after the application is approved, whichever is later.

•ESA Balance from prior year: Funds remaining in an ESA from a prior year are eligible to be used in another year the student is an ESA participant.

•School of Choice: The ability to select the school your child plans to attend in the 2024-25 school year will be available in the Odyssey portal immediately after an application is approved.

Public School District Funding

Funding generated through the state funding formula for a public school district will remain with the public school district. This includes funding for students who choose to leave their public school and for all students who live in the district but attend an accredited nonpublic school and receive an ESA. In FY25, it is estimated that Iowa’s public school districts will receive approximately $1,205 per pupil in categorical funding for resident students receiving ESAs.

House Passes Rural Development Tax Credit Program

House File 2666 passed the House last week unanimously. The legislation relates to the taxability of income from certain farm tenancy agreements.

Current law provides a tax exclusion on a retired farmer’s total net income from a farm tenancy agreement covering real property held by the retired farmer for 10 or more years if the farmer materially participated in a farming business for 10 or more years. However, income from a farm tenancy agreement earned by an entity taxed as a partnership for federal tax purposes, an S corporation, or a trust or estate is not eligible for the farm tenancy lease income exclusion.

HF 2666 allows net income from a farm tenancy agreement by these entities to be eligible for the farm tenancy lease income exclusion. It allows net income accruing to a grantor trust or to a business entity that is a disregarded entity to be deemed to have been distributed to its sole owner to the extent the sole owner of such disregarded entity or trust has the right to withdraw or compel distribution of such net income.

Because the bill applies retroactively to January 1st of 2023, there is a larger fiscal impact in Fiscal Year 2025 due to amended returns. That impact is estimated at $3.90 million and then $1.8 million annually thereafter. The bill is now currently in a Senate subcommittee.

Connecting Public Dollars to Charitable Services

This week Governor Reynolds signed into law House File 2264 to help connect public dollars to charitable services that benefit local communities provided by religious groups. Currently, under Iowa law counties and townships are not allowed to directly appropriate public funds to institutions, schools, or associations under ecclesiastical or sectarian management. HF 2264 would allow public funds to be given to these groups to be utilized for projects and programs to benefit the public. These programs would be meal services, homeless shelters, etc. The new law specifies that the group receiving the funds cannot require participation in religious services, educational programs, or other participation to receive the benefit of the program. This bill would be another tool for local governments to further utilize public dollars to help those in their communities who need assistance.