Members,

Last Week

The Legislature convened at 10:00am on Tuesday after observing Martin Luther King Jr. Day. The House and Senate held 136 subcommittee meetings combined between Tuesday and Thursday.

Property Tax

On Wednesday, House Study Bill 596 was introduced by the House Ways and Means Chair, Representative Nordman. HSB 596 would make the following changes to property taxes:

• Cap all local government revenue growth at 2%, but excluding new valuation connected to new construction, debt service, and school funding.
• New residential property tax exemption in 427.1 of $25,000 but not applicable to taxes imposed by school districts.
• Additional reporting for certifying boards that are not political subdivisions and identified under a designation of special taxing districts.
• New clear and concise reporting requirement for property taxes
• Requires the Council of Governments to provide planning and technical assistance on sharing services between local governments.
• Adds limitations on 28E bonding
• Clarification to regional transit 28M.
• Additional limitations on county general obligation bonds.
• Adds new notice and approval changes for school district bonding.

 

Eminent Domain

Two weeks ago, the House Judiciary Committee advanced House Study Bill 507 out of committee. The bill would prohibit the use of eminent domain for the construction of carbon capture pipelines. Last Wednesday, after a brief debate, the House sent the bill to the Senate with a 64-28 vote.

In the Senate, Senate Majority Leader Mike Klimesh introduced two bills related to carbon capture pipelines. “Today I am filing two proposals that put landowners first and put Iowa on a path of growth and prosperity,” said Senator Klimesh. “I started this legislative session by telling Iowans about my vision for this state, and it is a vision where energy is abundant and affordable, where Iowans can exercise their private property rights, and private investment can find voluntary easements to help our state grow. Currently our system is overregulated and government has inserted itself between investment and private property rights creating needless conflict between investors and landowners. This process must be improved and these bills will do just that.”

“Affordability in Iowa also must be improved. These proposals will help lower the cost of energy, increase markets for Iowa’s agricultural products, raise incomes for farmers, create more manufacturing jobs for Iowans, provide millions of hours of work for skilled trades, and accelerate Iowa’s path to zero income tax. All those results are possible with voluntary agreements between investors and landowners.”

Senate File 2067:

• Allows a company, any time after the mandatory county informational meeting, to contact any landowner within a "voluntary easement corridor" that includes land anywhere in the county, and anywhere within five miles of the initially proposed route, for the purpose of proposing voluntary purchase of easements
• Requires companies provide a landowner all the information presented at the meeting and provides landowners with a right to opt out of any further contact from the company except for mail (which can be easily discarded)
• Requires diligent efforts by a company to assemble a project route using only voluntary easements, such as requiring the company to inform a landowner about the easement it seeks and to request permission to conduct a civil survey (also includes specific deadlines for a survey and for a determination of land suitability), adding additional transparency for landowners
• Provides for a company to present, at a county informational meeting, a template easement and an easement valuation methodology
• Allows a pipeline company to hold a separate general informational meeting, without proposing specific easement terms, to facilitate healthy communication between the company and any interested person

Senate File 2069:

• Imposes a severance tax of $1 per metric ton of liquefied carbon dioxide transported by a pipeline company for use in enhanced oil recovery
• Imposes a severance tax of $2.50 per metric ton of liquefied carbon dioxide transported by a pipeline company for all other uses
• All funds collected as part of this proposal go to the Taxpayer Relief Fund

 

Other Bills of Interest

House File 2017: a bill creating a state work opportunity tax credit that is equal to 100% of the federal work opportunity tax credit. The bill passed out of subcommittee on Wednesday.

Senate Study Bill 3039: a bill requiring disclosures for the use of synthetic media in campaign materials. The bill passed out of subcommittee on Wednesday.

House File 993: a bill allowing for the direct shipment of alcohol within the state. The bill passed out of subcommittee on Thursday.

Senate File 2030: requires the DOT to revoke the driver’s license of a person who is convicted of exceeding a speed limit with a detected speed of 100 mph or more. The bill passed out of subcommittee with a recommended amendment on Tuesday.

 

This Week

The legislature will convene on Monday and continue holding subcommittee and committee meetings. On Tuesday, President Trump will be in Iowa delivering a speech on energy and the economy.

House Schedule

Senate Schedule

Chris LaFerla
President & CEO
Council Bluffs Chamber