SB 2326 – “Lumber Freedom Bill” or Preferred Contractor Legislation Fails Funnel

A legislative proposal sponsored by the National Federation of Independent Businesses that would have ended an insurance company's ability to proscribe specific suppliers and contractors to its claimants failed to clear the legislature's second funnel deadline. Senate File 2326, sometimes referred to as the "lumber freedom" bill, was not debated by the full Senate or even considered by a House committee, as lawmakers were unwilling to delve into the insurance industry's ability to establish their own business practices. Insurance companies successfully argued the practice saved its customers millions of dollars annually.

While neither chamber debated the bill, passage of the legislation by the Senate Commerce Committee put insurance companies on notice that this type of contractual relationship is met with some skepticism. Lawmakers encouraged the insurance industry to voluntarily reconsider the practice of using preferred suppliers and contractors or face potential regulatory and legislative oversight in the future.

HF 2653 - Bill Seeks to Deter Mortgage Scammers
Scammers that target families who face mortgage foreclosure in Iowa would face roadblocks under a legislative proposal that was approved by the Iowa House. Foreclosure consultants are people who, for a fee, offer to stop, postpone or in some way help families who face losing their homes. The problem is that, in some cases, scammers charge unreasonable fees. House File 2653 would set limits on consultants and would forbid them from accepting pay until after all services are performed. The bill passed the House unanimously. It now goes to the Senate.

House Committees

House Commerce Committee: Voted Out:
SF 517 ENERGY CONSERVATION CODE
Requires the State Building Code Commissioner to require in the state building code that all construction must comply with energy conservation requirements. Allows the Commissioner to offer training to builders and other interested persons on energy conservation requirements. Contains other related provisions. Amended & PASSED, 22-0

SF 2386 ENERGY EFFICIENCY GOALS
Creates a statewide energy savings goal of 1.5% per capita, per year 2011 to 2021. Establishes a three-year phase-in period to develop strategies for the goal. Directs the Office of Energy Independence, with assistance from advisory councils created in the bill, to coordinate strategies. Establishes reporting requirements, requirements for utilities and a pilot project. Contains other provisions on achieving the energy use reduction goal. PASSED, 22-0

House Labor Committee: Voted Out:
SF 2303 WORKERS COMP SETTLEMENTS
Continues the Worker’s Compensation Commissioner’s jurisdiction over settlements that include an agreement for continued medical benefit during the time covered by the agreement. Strikes the provisions for sun setting the Labor Commissioner’s authority to impose a surcharge for the second injury fund. PASSED, 16-0, Floor Manager: T Taylor

SF 2344 WORKERS COMP PENALTIES
Allows up to 50% of a withheld benefit to be awarded as a penalty for a benefit if the denial or delay was without reasonable or probable cause. Establishes provisions for determining what reasonable cause which require the employer to make an investigation and base the cause on what is learned during the investigation. PASSED, 10-6

Senate Floor Action

SF 2377 UNEMPLOYMENT BENEFITS
Brings Iowa unemployment benefits in compliance with federal laws. Authorizes special training benefits for some workers who have exhausted their regular benefits. Establishes an alternative method for calculating the base period for persons who would otherwise be ineligible for benefits. Authorizes benefits for persons who leave employment due to a move by a spouse or who leave because of the illness of a family member. Domestic Abuse: Allows a person who leaves employment due to domestic abuse or stalking to collect unemployment, and allows the employer to be relieved of the cost. Requires the DWD to keep records for such persons confidential.

S-5183 by Wieck - Makes changes to increase requirements for eligibility. Strikes provisions making someone eligible who leaves work due to a move or due to illness. FAILED, 17-30

S-5168 by Dotzler - Makes the provisions regarding a person who moves contingent on certain federal funding and on the claim being filed 120 days after that funding is approved. Makes corrections on the effective dates. ADOPTED

S-5167 - OUT-OF-ORDER
The Senate PASSED the bill, as amended, 29-16; it now goes to the House

Senate Committees

HF 2542 OUT-OF-STATE INJURIES
Allows an employee to make a claim for injury suffered while working out-of-state if the employer has a place of business in the state, or the employee is working under a contract for hire made in Iowa and the state, of country, where the injury occurred has no available worker’s comp for such an injury, or the employer has a place of business in Iowa and the work for hire contract states that claims will be governed by Iowa law. Deems worker’s comp benefits paid in another state or country as weekly compensation benefits in regards to limitation of actions for compensation payments. Other: Allows a workers comp claim to be reopened because a factor that could have, but was not, considered at the time of the claim. PASSED, 10-0

HF 2568 WORKERS COMP CALCULATIONS
Requires the calculation of workers’ comp benefits to include shift differential. Changes the rate for permanent disability for inmates of certain state institutions two-thirds of the state average weekly wage to the minimum rate. PASSED, 10-0

HF 2589 UNEMPLOYMENT REPORTING
Creates a $35 penalty for each delinquent or insufficient unemployment report from an employer and a $30 fee, plus costs, for a faulty unemployment payment to the DWD. Makes an employer responsible for paying costs associated with a subpoena relating to unemployment law and a $250 fine for a refusal or negligent failure to honor the subpoena. PASSED, 7-4

Senate State Government Committee: Voted Out:
HF 2390 PLUMBING LICENSING DATES
Moves up the creation of the Plumbing and Mechanical Systems Examining Board to the enactment date of this bill. Postpones the effective date of licensing requirements until January 1, 2029.

HF 2671 CITY FRANCHISE TAXES, Etc.

The legislation creates a 10 city pilot project that would provide local governments with the authority to raise revenue from alternative sources. These sources include franchise fees, local option taxes, and tobacco excise taxes. As a condition of utilizing these alternative revenue sources, cities must agree to offset the revenue gains by providing property tax relief - primarily for commercial and industrial properties.

Legislators have provided a mixed reaction to the legislation, which mirrors the proposal offered by the Iowa League of Cities during the legislature's interim study on property taxes. Given the late date of the bill's introduction (the General Assembly hopes to adjourn in two weeks) and the controversial nature of the subject, it is unclear if this is a priority of legislative leadership.

More information will be provided as lawmakers confer on the issue next week.

· 1-percent sales tax (without voter approval)
· Local tobacco tax without limit
· Local franchise taxes on utilities of no more than 5 percent
· Hotel-motel taxes of up to 9 percent of lodging bills. The current ceiling is 7 percent.
· Charge non-profit, tax-exempt properties (except religious institutions) for police and fire protection.

SSB 3287 LOCAL DEVELOPMENT SALES TAX Authorizes special charter cities of over 75,000 (Des Moines, Cedar Rapids, Davenport, Sioux City) to impose a 1% local sales tax, including on utilities, with 90% of the revenue going for economic development and 10% for public safety. Requires that the tax be approved at an election. Allows for a repeal date to be included in the original election or for a second election on whether the tax should be kept.

HF 2542 OUT-OF-STATE INJURIES
Allows an employee to make a claim for injury suffered while working out-of-state if the employer has a place of business in the state, or the employee is working under a contract for hire made in Iowa and the state, of country, where the injury occurred has no available worker’s comp for such an injury, or the employer has a place of business in Iowa and the work for hire contract states that claims will be governed by Iowa law. Deems worker’s comp benefits paid in another state or country as weekly compensation benefits in regards to limitation of actions for compensation payments. Other: Allows a workers comp claim to be reopened because a factor that could have, but was not, considered at the time of the claim.

The Senate PASSED the bill, 31-16; it now goes to the Governor

The Senate PASSED the bill, 49-0; it now goes to the Governor

HF 2411 ELECTRICIAN LICENSING
Changes the requirements for granting a license to a Class B master electrician or journeyman without examination from having worked since 1990 to meeting specific requirements as to the number of hours worked.

S-5264 by Kettering - Changes the grandfathering requirement back to those who have worked continuously for five years. FAILED

The Senate PASSED the bill, 48-1; it now goes to the Governor