The first day of spring was Monday, bringing new life to the Capitol in Week 11. As the weather continues to warm, farmers will be eager to start planting crops; we will keep you apprised of the soil temperature in the state, which is a good indicator of when the legislature will adjourn sine die.
Thursday marked the beginning of the Sweet 16 round of March Madness, with the Iowa Hawkeye women’s team the only team in the state to continue forward. Under the dome, this week was slow for bill introductions, with just 52 resolutions and bills introduced or renumbered. The end of next week marks the second funnel, when all policy bills must receive floor approval in their originating chamber and advance through committee in the opposite chamber to remain eligible.
Legislative Activity
Pipeline
The House spent much of Wednesday’s debate on the pipeline bill (HF565) and ultimately passed the bill on a 73-20 vote. Support and opposition for the bill were split between the parties, with members from both caucuses speaking on either side. Representatives Jones and Srinivas did not vote due to financial conflicts.
Ultimately the bill would restrict carbon dioxide pipeline companies’ ability to use eminent domain by requiring that companies obtain voluntary easements for 90% of their routes before they could use eminent domain for the rest. Representative Mommsen, who voted against the bill, offered an amendment to expand the bill to cover all pipelines but the amendment was ruled not germane. Mommsen said that Iowans need stronger protections against eminent domain takings.
The House amended the bill to strike the prohibition against the Iowa Utilities Board (IUB) from issuing a permit for a liquid CO2 (carbon capture) pipeline until federal safety rules have been adopted. Representative Holt said that the bill offers important eminent domain protections as amended and said he was trying to craft a bill that could reach the Senate floor and make it down to the Governor.
It is unclear the fate of HF565 in the Senate. The state has been embroiled in discussions about pipelines and eminent domain ever since carbon pipeline projects were announced in Iowa; three carbon capture pipelines intend to capitalize on billions in federal tax credits and enhance ethanol markets by reducing the carbon footprint of the ethanol production process. The projects pit various interest groups against each other—ethanol and corn industries vs. landowners and environmental groups—making for interesting bedfellows and setting up a massive controversy in the Iowa legislature.
Several lawmakers are skeptical about whether the Senate will consider a bill regulating pipeline projects. Governor Reynolds has publicly expressed her support for the existing permit procedure.
This is likely an issue that will make its way into final negotiations to close down the 2023 legislative session.
Taxes
House and Senate Republicans remain at a stalemate on issues related to taxes. This week provided no movement or newsworthy activity on any tax-related issues, though it is anticipated that discussions/negotiations are happening behind the scenes.
Republican leaders and Governor Reynolds all said in January that property taxes will be a priority this session. Senator Wahls said that Senate Democrats support property tax reform but that it must “ease property tax burdens on middle-class families and those with fixed incomes,” and not be a giveaway for the rich. Senate Republicans are looking to lower property taxes due to Iowa’s low rating compared to other states.
Income tax reduction (SF552) has entered the discussion as well as conversations related to Statewide Sales Tax/IWILL (SF550). See a roll-up of the tax bills in last week’s update.
Gubernatorial Succession
The Senate State Government Committee approved HJR 3, which proposes a constitutional amendment to establish the process for the succession of a governor in the case of death or disability. It also deems the position of lieutenant governor to be vacant for the rest of the term if the lieutenant governor becomes governor due to the death or resignation of the governor.
Legislators approved HJR 2005 in the 2022 session. If the full Senate approves the proposed Constitutional Amendment, it will go on the ballot in 2024 to be approved by the Iowa electorate.
Budget Update
Another sign budgeting season is nearing—the House GOP released their budget target this week. The House proposes spending $8.58 billion in FY 2024, an increase of 4.5% from the current year. This proposal is about $90 million more than the Governor’s budget and the Senate GOP proposed budget ($8.486 billion).
The REC estimates Iowa’s revenue at $9.65 billion for FY 2024. By state law, lawmakers must not spend more than 99% of that estimate.
Republicans have consistently spent less than 99% in the past several years, and Grassley said the budget proposal reflects Republican goals of spending about 89% of projected revenue. Regarding the $90 million difference, Speaker Grassley stated:
“We have other priorities that we would like to have conversations within the caucus, like mental health, rebasing for nursing homes and workforce issues,” he said. “…So we wanted to make sure that those are all reflected, some of the priorities that are still out there, within our budget.”
The government reorganization bill will complicate the appropriations process as both chambers generate their line-by-line breakdown of funding per department. If various departments are consolidated, the budget will have to reflect the new structure.
Executive Branch Update
Gov. Reynolds appoints Deputy Adjutant General
The Governor released this statement: “General McClintock’s extensive experience and proven leadership, alongside General Osborn, will ensure that the Iowa National Guard is ‘Always Ready,’” said Governor Kim Reynolds. “With his nearly four decades of service, including his roles as Assistant Adjutant General and Army Chief of Staff, I know General McClintock can help Iowa navigate this increasingly unpredictable world, no matter what comes our way.”
Bills Signed by the Governor (as of 3/22/2023)
The governor was busy this week, she signed ten bills on Wednesday, including the ban on gender-affirming care and the controversial school bathroom bill, along with several non-controversial pieces of legislation.
At this point in session, 22 bills have been enrolled and sent down to the Governor, seven of these await her signature and 15 bills have been signed into law by the Governor. A complete list of enrolled bills and enactment dates can be found here.
What is next?
Week 12 brings another major milestone, the second legislative funnel. As of next Friday, March 31, policy bills that do not receive floor approval in their originating chamber and advance through committee in the opposite chamber are “dead” and not eligible for further consideration this legislative session. With, of course, numerous exceptions: including Ways and Means, Appropriations, and Leadership bills. Additionally, chamber rules allow for procedural exceptions such as placing bills on the Unfinished Business calendar, which allow for bills to remain eligible for consideration beyond the funnel.
We are also five weeks out from the scheduled 110th day of session with the bulk of tax reform and budgeting still in front of us. The full 2023 Session Timetable can be found here.
The big question for the Dentons Government Relation Bulldogs—will the legislature adjourn sine die in time for Drake Relays?
