Iowa Lawmakers Close 2023 Session

The First Session of Iowa’s 90th General Assembly adjourned Thursday, May 5, 2023. Governor Reynolds saw many of her top priorities addressed, including Tax Reform, Government Reorganization, and School Choice legislation, but some things will take until the next session to address. Here is a summary of the top legislation we tracked this year that could impact the Quad Cities, organized by Chamber priorities:

Talent Attraction and Development:

• Youth Employment (SF 542): Allows for minors to serve alcohol in restaurants with parental permission, allows for exceptions to prohibited jobs for 16- and 17-year-olds participating in a registered work-based learning program, and extends the eligible hours a minor can work to 9 p.m. during the school year and 11 p.m. during the summer. Sent to Governor
• Apprenticeships (SF 318): Establishes the Iowa Office of Apprenticeship to serve as the state registration agency, establishes labor standards for quality apprenticeships and establishes rules regarding registered apprenticeships. Sent to Governor
• Medical Malpractice Tort Reform (HF 161): Creates a $2 million cap on noneconomic damages for medical malpractice lawsuits against hospitals, and $1 million in lawsuits against clinics and individual doctors. Signed by Governor
• Commercial Motor Vehicle Tort Reform (SF 228): Creates a $5 million cap on noneconomic damages and allows plaintiffs to recover 100% of punitive damages in commercial vehicle crash cases. Iowa’s trucking industry has pushed for the legislation for several years, arguing the need for a limit to protect businesses against rising insurance rates. Signed by Governor

Business and Economic Growth:

• Destination Iowa, a program started in 2022 with American Rescue Plan Act funding for quality-of-life projects, received a $6.5 million appropriation in FY24 to continue funding transformational projects.
• Pass Through Entities (HF 352): Creates a new voluntary PTE tax and a new income tax credit to be passed through to individual owners of partnerships and S-corporations that elect to pay the PTE tax. Sent to Governor.
• Property Tax Reform (HF 718): Restores levy limitations, consolidates 15 levies, and limits local government spending growth. Signed by Governor.
• Rollback Calculation (SF 181): Reduces the residential and multi-residential rollback by $127 million statewide. Signed by Governor.
• MEGA Program (SF 574): Authorizes the IEDA to create a Major Economic Growth Attraction program. The MEGA Program was a Chamber priority this year because it would be used to help close large scale development deals by providing additional incentives. The House advanced the bill out of committee but failed to vote it off the floor before adjournment. It is believed that IEDA will continue to work on the bill’s passage next year and it may be an avenue for ICA to attach a proactive TIF proposal. Failed.
• Changes to Tax Credits (SF 575): An omnibus bill introduced by IEDA that made various changes to tax credits including:
  • Extending the renewable chemical production tax credit until 2041 and strikes the waitlist.
  • Strikes the waitlist for the Innovation Fund and extends the sunset to 2028.
  • Expands the Housing Tax Credit to include housing built on a greenfield site. Failed.

Placemaking and Place Management:

• Port Authorities (SF 526): Allows for the creation of a port authority by one or more political subdivisions anywhere in the state and provides that a port authority is a separate entity. Failed.
• Uniform Limited Liability Act (HF 655): Amends existing code as approved and recommended by the national conference on commissioners of uniform state laws. Failed.
• Entertainment Districts (HF 412): Authorizes cities to establish entertainment areas and to impose an entertainment surcharge if a majority of businesses in the area approve. Failed.

The Second Session of the 90th General Assembly will convene on January 8th, 2024. Legislation that was not adopted this year will remain eligible for consideration when the legislature reconvenes.