State Unemployment Rate Remains at 3% in January

Editor’s Note: this is an abridged copy of Rep. Taylor Collins’ weekly newsletter.

The second funnel deadline has come and passed which means the scope of many bills the legislature can consider is only a fraction of what has been introduced by either chamber. As we approach the last month of session, the General Assembly will now begin working on the state budget and any tax bills.

Iowa’s Unemployment Rate Remains at 3% in January

Iowa’s seasonally adjusted unemployment rate was 3.0% in January, down from the 3.2% announced in December but unchanged from a revised December rate. The state’s jobless rate was 2.9% one year ago. The U.S. unemployment rate remained at 3.7% in January.

The total number of unemployed Iowans decreased to 50,900 in January, down 1,100 from revised December data. The total number of working Iowans decreased by 1,200 to 1,653,800. The labor force participation rate decreased to 67.3% from a revised December rate of 67.5%.

Over the past twelve months, the state has gained 12,700 jobs. Among private services, education and health care has added the most jobs (+6,400). Over half of the hires were related to health care and social assistance. Construction is now up 2,700 jobs annually, while manufacturing continues to trend up and has gained 2,100 jobs since last January. On the other hand, trade, transportation, and utilities shed the most jobs annually (-5,400) as transportation and warehousing fueled most of the decline (-3,600).

House Republicans Pass Second School Security Bill

In the wake of the tragic shooting in Perry, Iowans have demanded workable and effective school security measures. A recent poll in the Des Moines Register indicated 60% of Iowans supported the House Republican plan to thoroughly train and arm school personnel who volunteer to serve in such a capacity inside school buildings. All Democrats present for the bill voted against it. Regardless, House Republicans have methodically moved forwarded with additional school security plans during the 2024 legislature session.

On Wednesday, the House passed a bill that looks at school safety from the side of infrastructure.

This bill creates a task force to develop school safety building codes to determine what makes school buildings safer — currently none exist. With new standards, school officials will be able to make sure they are doing what they can from an infrastructure standpoint to make buildings safe for students and teachers. Along that same line, the bill prevents districts from bonding to build athletic stadiums or facilities unless and until their facilities are up to date with the school safety building standards from the task force. Safety and security should be the priority.

House Ag Panel Approves Meat Integrity Act

On Tuesday, the House Agriculture Committee passed Senate File 2391 by a vote of 18-5. SF 2391 previously passed the Senate by a 49-0 vote last month. 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 now being designed and produced through laboratory activities, the bill aims to provide Iowans with some clarity.

The goals of the bill are 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 also aims to proscribe lab-grown proteins from being purchased through federal SNAP and WIC programs used by low-income Iowans, and curtail schools (K-12) from purchasing lab-grown protein for school breakfast/lunches.

Democrats Oppose Bill to Curb Illegal Immigration, Punish Human Traffickers

The negative impacts of the Biden’s Administrations failure to enforce current laws and protect the southern border are being felt more than a thousand miles away right here in Iowa. House File 2608 removes some perceived incentives for these individuals from coming to Iowa while also targeting those who illegally smuggle people into our state.

Most Iowans support legal immigration and recognize that their own ancestors once left their homelands to become Americans. These individuals helped build our country while maintaining their own customs but also adapting to American culture. Democrats talk about immigration as if there is no distinction between legal and illegal. They also like to talk as if there is no downside to Iowans with unrestricted flows of unidentified foreign nationals.

HF 2608 is focused only on illegal immigration. Division one of the bill requires the Department of Health and Human Services to determine if a noncitizen is eligible for state assistance by verifying their immigration status. Under federal law this is already required, but since President Biden and Democrats have refused to enforce this federal law on the border, the House Judiciary Committee was rightly concerned that this and other federal laws could change or be ignored. Codifying it into state law ensures that those who are here legally get the state assistance they need and those who are here illegally do not have access to state tax dollars. Iowa taxpayers are not obligated to provide financial incentives to illegal border crossers regardless of the actions of the Biden Administration.

Commerce Committee Advances PBM Legislation

This week, the Iowa House and Senate Commerce Committees passed House File 2401 related to Pharmacy Benefit Managers (PBMs). PBMs are the entity between health insurers and drug manufacturers who process prescription medication claims on behalf of the insurer or employer.

This bill ensures pharmacies are reimbursed for their services within their scope of practice, requires profits from spread-pricing to go back to the employer/insurer, and requires an appeals process for pharmacies that are unable to acquire drugs at the reimbursement rate from the PBM.

In 2022, the legislature brought PBM oversight under the Department of Insurance, and this session, the department also proposed a bill based on a year and a half of regulating the industry. House File 2099 passed the Iowa House unanimously. This bill expands PBM’s duty of good faith and fair dealing to pharmacies and prohibits retaliation against pharmacies that file complaints against PBMs.

These bills support Iowa’s pharmacies. Since 2008, there has been a 13.77% decrease in Iowa pharmacies of all types. 75% of those closures were rural pharmacies. According to the Iowa Pharmacy Association survey of community pharmacies in October 2023, 40.8% of responding pharmacies indicated they expect to close or sell in 2024.

House Committee Passes Two Constitutional Amendments

This week the House Ways and Means Committee passed two constitutional amendments. One requires a 2/3 majority to increase any tax based on income or to create a new tax. The second requires any tax based on income be imposed at a single rate. If adopted, the proposed constitutional amendments would be published, and then referred to the next general assembly (the 91st General Assembly beginning in January of 2025) for adoption, before being submitted to the electorate for ratification.

Proposed Constitutional Amendment #1:

Under this amendment, passage of a bill that increases the individual income tax rate or the corporate income tax rate, or the rate of any other type of tax based upon income or legal and special reserves, shall require the affirmative votes of at least two-thirds of the members elected to each house of the general assembly. This requirement does not apply to taxes imposed at the option of a local government.

Additionally, under this amendment, passage of a bill that establishes a new tax on any type of income or legal and special reserves imposed by the state shall require the affirmative votes of at least two-thirds of the members elected to each house of the general assembly. This would not include sales tax.

Proposed Constitutional Amendment #2:

Under this amendment, a tax on income or based upon income for individuals shall be imposed at a single rate. A graduated rate of taxation on such income is prohibited. The amendment prohibits more than one income tax rate above zero imposed by the state on an individual at any one time.

Staying in Touch

As always, you also can shoot me an email with any questions or concerns at taylor.collins@legis.iowa.gov or you can call the Capitol Switchboard and leave me a message at (515) 281-7340.

Sincerely, Rep. Taylor Collins