300 Main Street, Suite 200, Dubuque, IA 52001
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Weekly Legislative Update
Local
The City of Dubuque will revisit the potential redevelopment of the Five Flags Center on Monday, January 24th during a scheduled work session. The council decided against scheduling a referendum in early 2021 out of concern for COVID-19. The Five Flags Center has been in need of renovation and reinvestment for years, as capacity for shows does not meet current need and facilities do not meet the capacity of the seating in the Center. You can access past studies on the redevelopment in the linked title. Potential referendum dates for the development bond are September 13, 2022; March 7, 2023; September 12, 2023; and November 7, 2023.
State
SSB3044 & HSB551 – Governor’s Bill establishing a flat individual income tax rate, a reduced corporate tax rate, and other provisions (Chamber Position: For)
This bill makes a number of changes to Iowa tax law, most notably creating a flat 4% individual income tax rate by 2026 (which would benefit small businesses that often operate as sole proprietorships or LLCs) and over time would decrease Iowa's corporate income tax rate from 9.8% today to 5.4% in the future. It also would create tax benefits for employee stock ownership, eliminate taxation of retirement income, and make other changes to tax law.
SSB3046 & HSB541 – Expanding the Last Dollar Scholarship (Chamber Position: For)
This bill would expand eligibility for the last-dollar scholarship to any part-time students. Currently, only summer students can be part-time and still receive the scholarship.
SF2074 – SAVE Penny for Childcare in Schools (Chamber Position: Undecided)
This bill would allow school districts to use money from the SAVE 1-cent sales tax for three years in support of development of pre-school at district facilities
HSB540 – Economic Development Authority Program Changes (Chamber Position: Undecided)
This bill would change eligibility requirements for certain programs at IEDA. More research is needed to determine the impact on Dubuque.
HSB511 - Increasing the 2- and 3-year-old staffing ratio (Chamber Position: For)
This bill would increase the staffing ratio for 2-year-old rooms from 1:6 to 1:8 and for 3-year-old rooms from 1:8 to 1:10. This would potentially increase the number of available spots for children in these age groups and improve the economics of childcare facilities by increasing revenue per staff. Providers have concerns over the impact of this change on staffing and safety, however DHS believes these changes are sound.
HSB539 – Reducing the age requirement for staff or volunteers in childcare settings (Chamber position: For)
This bill would lower the age requirement to 16 for individuals working, substituting, or volunteering at a childcare facility. Individuals would still require any safety certifications and training required of a typical employee, substitute, or volunteer.
HF2024 – Eliminating the absence penalty for CCA recipients (Chamber Position: For)
This bill would allow providers to continue receiving state childcare assistance payments regardless of attendance as long as the provider would have charged a private pay family. Providers and families have cited the attendance requirement as burdensome, making it difficult for some children to maintain enrollment at facilities. Without this change, children on CCA can lose their spot if they do not attend a certain number of days at the facility when previously scheduled to attend.
SF339 (Fmr. SF84) – Requiring Employers to Enroll in the federal E-Verify system (Chamber Position: Against)
This bill prohibits licensed employers from knowingly employing unauthorized aliens and authorizes a county attorney, local law enforcement official, or member of the public to file a complaint of a violation with the Iowa Department of Workforce Development (IWD). If the IWD determines that an employer has committed a violation, the IWD is required to bring an action in district court against the employer for the violation in the county where the unauthorized alien employee is or was employed by the employer. The Bill requires licensed employers hiring or rehiring an employee to verify the employee’s employment eligibility through the federal E-Verify Program and certify to the IWD that the employer has done so.
Federal
Workforce Meeting with Federal Delegation
On Friday, January 28th the Chamber will be meeting with staff from our federal delegation to discuss immigration and education issues. We’ll be bringing business leaders together with the policy makers to advocate on our behalf. If you’re interested in learning more about action you can take to support workforce solutions, consider signing up for the Chamber’s Workforce Action Alerts via this link.
Federal Reserve and Interest Rates
The Federal Reserve is meeting on Wednesday, January 26th to discuss the potential for raising rates later this year. The fed is widely expected to announce rate hikes as a way to combat inflationary pressures in the economy. Discussions around the fed as well as unease over Russian aggression on the Ukrainian border sent the market tumbling on Monday, January 24th.
