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What did and didn’t survive the Legislature’s first funnel week

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As the Iowa Legislature enters the second half of the 2021 session, we wanted to take a quick look at those bills that affect the business community and what progress, if any, they have made so far.

Last week was the first of two funnel weeks, where bills had to make it out of committee in order to move on this session. There are exceptions. Any appropriations, ways and means, and government oversight bills can progress at any time during the session and are not subject to the funnel deadlines.

Bills intended to increase access to affordable child care, expand high-speed internet statewide, and to provide incentives to workers who move to Iowa all survived.

Bills that didn’t make it past last week included one that would gradually increase the minimum wage to $15 an hour, one that would extend religious freedom protections to Iowa businesses, and one that would require transgender students to use the bathroom of the sex listed on their birth certificate in schools. Two bills geared toward providing relief and recovery from the coronavirus pandemic also didn’t make it.

Here’s a closer look at what did and what didn’t survive last week’s funnel deadline. Many of the bills have been renamed or renumbered as they made their way through the process.

What survived

New worker incentives
Senate File 491: Creates and makes appropriations to a new remote worker grant fund for new remote workers who move to Iowa but are employed by out-of-state companies.
Senate File 490: This creates a new income tax credit for new residents who have not lived or worked in Iowa for the previous two years, and would allow them to take the credit for the first five years after they move to Iowa.

Child care
House File 362: Creates a workforce child care facility incentive program that would provide tax incentives to developers who complete child care facility projects in the state.
House File 363: Permits new on-site day care facilities or businesses expanding on-site day care facilities to qualify as projects under the state’s high-quality jobs program.
House File 292: Sets reimbursement rates for providers under the child care assistance program at the 50th percentile of the most recent market survey.
House File 302: Establishes a graduated phase-out for child care assistance to avoid what is commonly referred to as the cliff effect for families who face losing child care assistance if they receive a pay raise at work.

Broadband
Senate File 390: Facilitates the expansion of high-speed internet in underserved areas of the state by allocating funds from the Empower Rural Iowa Broadband Grant Fund to providers who install broadband infrastructure in targeted areas.

Housing
Senate File 295: Creates a housing tax credit program and a disaster housing recovery assistance program.

Tenure
House File 496: Would prohibit tenure at the state’s regents universities.

Drug testing
House Study Bill 22: Creates offense for faking a drug or alcohol test by using, distributing or selling another person’s urine or possessing synthetic urine.

What didn’t survive

Minimum wage
House File 122: A gradual, phased-in increase the state’s minimum wage to $15 by July, 1, 2025.

Income tax
Senate File 149: Eliminates the individual income tax and raise sales tax to 11%.

Religious protections
Senate File 436: Extends religious protection to Iowa businesses.

Bottle bill
House File 156: Repeal of the state’s bottle bill.

Housing
House File 657: Allocate $50 million to extend eviction and foreclosure prevention program through June 30, 2022.

Bathroom bill
Senate File 224: Requires elementary and secondary public school students and nonpublic school students to only use the restroom that corresponds with the gender listed on their birth certificate.

COVID-19 relief and recovery
House File 659: Create a pandemic recovery grant fund for Iowa school districts.
House File 688: Allocate funds to local boards of health to establish and administer COVID-19 vaccine drive-thru clinics.

The second funnel deadline for legislation is April 2. All Senate bills must make it out of House committees, and all House bills must pass out of Senate committees to continue.

This year’s session is scheduled to adjourn on April 30.