Field Notes – First funnel week; rural grocery and local foods bill safe, energy bill in limbo

HF 550 (previously HF 59) / Senate Study Bill (SSB) 1054 — Support: Introduced in both the House and the Senate, these Center priority bills create the Grocer Reinvestment Program and the Local Food Processing Program as well as appropriate money for the grocery reinvestment and local food processing fund. The legislation directs the Iowa Economic Development Authority to create a grant program for new or current grocery stores. Proposed amendments would provide updated eligibility requirements for grocery stores based on town population; the grocery store must exist in and benefit a community with a population of 20,000 or fewer and not share a border with a city with a population of 40,000 or greater. Prioritization would be given to projects focused on cost-saving efforts and business efficiency measures to ensure the long-term sustainability of stores. Grants would be directed to help small, locally owned grocery stores selling perishable foods in rural communities. The Senate version has been assigned to a subcommittee, but a meeting has not yet been scheduled. The House version was considered by the Economic Growth and Technology Committee on Feb. 19 and passed unanimously. The bill has been renumbered and will next be considered by the Appropriations Committee; a subcommittee has not yet been assigned. It is clear of the funnel, as it has passed through the House Economic Growth and Technology Committee and has an appropriation component.

Check out this feature story on Mulholland Grocery!

SF 232 (previously SSB 1012) — Support: Introduced by the Senate Committee on Health and Human Services (HHS) by Chairperson Mike Klimesh, this bill allocates funding to the Iowa Healthiest State Initiative to administer Double Up Food Bucks. This program doubles the investment for purchases of fruits and vegetables by Iowans participating in the Supplemental Nutrition Assistance Program (SNAP). It also specifically benefits local food producers who accept SNAP at farmers markets, grocery stores, and other local places of sale. The bill was considered by the Senate HHS Committee on Feb. 10 and passed by a vote of 17-0. The bill has been renumbered and will next be considered by the Appropriations Committee; a subcommittee has been assigned, but a meeting has not yet been scheduled.  It is clear of the funnel, as it has passed through the Senate HHS Committee and has an appropriation component.

SF 9 / HF 179 (previously HF 32) — Monitor: These companion bills have been introduced in both chambers. The legislation distinguishes two separate categories for food processing licenses: a category in which meat or poultry is processed on a farm or private residence, and a general category including all other processing locations. In 2023, the general assembly revised the methods used to calculate the annual license fees imposed on food processing plants. The updated correlating license fee structure is included in the bill. The Senate subcommittee considered the bill on Jan. 28 and recommended its passage with amendments to make the bills identical. The House version passed through the Agriculture Committee on Jan. 28 by a vote of 23-0 and was renumbered. It is clear of the funnel, as it has passed through the House Agriculture Committee.

SF 3 / House Study Bill (HSB) 83 — Support: Introduced by Sen. Lynn Evans and Rep. Megan Jones, this legislation designates additional flood mitigation activities to include reconnection of floodplains as well as wetland and oxbow restorations as “essential county purposes” in regard to the issuance of General Obligation bonds by counties. The Senate subcommittee considered the bill on Jan. 22 and recommended its passage. The House subcommittee considered the bill on Feb. 11 and recommended its passage. Both bills await consideration by the Local Government Committees. At least one bill, or both bills, must pass through the House or Senate Local Government Committees this week to clear the funnel.

Senate Joint Resolution (SJR) 6 — Monitor: Introduced by 17 senators, this bill repeals the natural resources and outdoor recreation trust fund from the constitution and directs funds from an increased sales tax for the benefit of property tax relief. The bill was introduced on Feb. 17 and considered by a subcommittee on Feb. 19, who recommended its passage by a vote of 2-1. It is not subject to the funnel, due to its tax implications.

HF 480 — Undecided: Introduced by five representatives, this bill removes the definition of beneficial use as it relates to water allocation permitting. Instead, the Iowa Department of Natural Resources would consider each permit request on a case-by-case basis when determining whether to grant a permit for the diversion, storage, or withdrawal of water, and must not be based on the category of use. After attending the subcommittee, Center staff learned of the limitations the current definition presents and are digging in to see if there are other considerations to make before weighing in on the bill. The bill was introduced on Feb. 19 and considered by a subcommittee on Feb. 24 recommending its passage. It must pass through the House Natural Resources Committee this week to clear the funnel.

HF 329 / SF 200 — Undecided: Introduced by Rep. Mike Sexton and Sen. Amy Sinclair, these companion bills relate to the distribution of water exempt from taxation and the use of tax exemption certificates. With definitions for water utility and exemption certification provided, the bill requires a water utility to accept and retain a valid exemption certificate, rather than receiving the exemption themselves. The water utility shall not unnecessarily require a person, who presents a valid exemption certificate, to obtain a sale or water service refund from the Department of Revenue. Center staff are looking into and learning more about the motivation behind the bill and the potential positive or negative implications seen in rural communities. The bills were introduced and have been assigned subcommittees, but meetings have not yet been scheduled. It is not subject to the funnel, due to its tax implications.

HSB 226 — Undecided: Introduced by the House Committee on Way and Means Chairperson Bobby Kaufmann, this bill makes rural water districts a designated exempt entity for sales and use tax purposes. Center staff know rural water districts provide drinking water where private wells and municipalities do not, so we hope to learn more about the benefits or potential downfalls. The bill was introduced on Feb. 20 and assigned a subcommittee, but a meeting has not yet been scheduled. It is not subject to the funnel, due to its tax implications.

HF 486 — Monitor: Introduced by Rep. Brett Barker, this bill removes the requirement for a trustee of a drainage district to live in the district or the county next to it, and instead only requires that they live within the state of Iowa. In the interest of public health, convenience, and welfare, drainage districts were established to review the drainage of surface waters from agricultural and other lands for the protection of the land from overflow. Currently, the Iowa code designates the County Board of Supervisors as trustees, but landowners may elect their own trustees and maintain the drainage districts if they wish. The bill was introduced on Feb. 19, but a subcommittee has not yet been assigned. It must move through a subcommittee and the full House Agriculture Committee this week to clear the funnel.

HF 404 (previously HSB 81) / SF 267 — Support: Introduced by Chairperson Shannon Lundgren of the House Commerce Committee and Sen. Klimesh, this legislation establishes a community solar facility program enabling any entity, including farms and small businesses, to own and operate a solar farm that has at least three participants who subscribe to the community solar. Subscribers would receive a credit to their energy bill based on the energy generated by the facility. The program would allow those who are unable to invest in individual solar systems to participate in a renewable energy project and capture energy savings. A community solar facility program offers additional options for Iowans to invest in solar energy generation to help meet the growing energy demand while helping to lower participants’ energy bills. The House version passed out of the full Commerce Committee on Feb. 11. It has been renumbered and will next be considered on the House floor. The Senate version was considered by a subcommittee on Feb. 20 and will be amended to serve as the companion bill to HF 404. It is clear of the funnel, as it has passed through the House Commerce Committee.

HSB 123 / SSB 1112 — Undecided: Introduced by Gov. Reynolds, this legislation relates to energy planning, rate making, electric transmission lines, anaerobic digester systems, and expanding the existing energy infrastructure loan program. The Center is actively analyzing and researching each section and will monitor these bills closely. A Senate subcommittee considered the bill on Feb. 13 and recommended its passage; it awaits consideration by the Senate Commerce Committee. The House Commerce Committee met on Feb. 18 to consider the bill and recommended its passage with an amendment by a vote of 16-6. It is clear of the funnel, as it has passed through the House Commerce Committee.

SF 376 — Undecided: Introduced by Sen. Klimesh, this bill seeks to remove a county's ability to self-regulate wind and solar energy within their county. The bill lays out a set of minimally restrictive standards for all wind and solar energy ordinances in the state. While many of the standards meet our recommendations for counties, we do not support mandatory statewide ordinances on clean energy; we would support an amendment to this bill to instead make it voluntary guidance for counties to adopt at will. The bill will be considered by a subcommittee today, March 4, at noon. It must pass out of the subcommittee and the full Senate Commerce Committee this week to clear the funnel.

HF 369 (previously HF 33) — Support: Introduced by Reps. Chad Ingels and Shannon Latham, this bill establishes an agriculture education grant program to expand high school students’ access to instruction related to agriculture, food, and natural resources. The bill was considered by the House Education Committee on Feb. 11 and passed by a vote of 23-0. The bill has been renumbered and will next be considered by the Appropriations Committee, but a subcommittee has not yet been assigned. It is clear of the funnel, as it has passed through the House Education Committee and has an appropriation component.

SF 394 (previously SSB 1051) — Oppose: Introduced by Chairperson Jason Schultz of the Senate Judiciary Committee, this bill relates to pesticides and the duty to warn or label. It would provide pesticide companies civil liability protection in a court of law if their products meet sufficient duty to warn label requirements and are approved and registered by the Environmental Protection Agency. The bill was considered by the Senate Judiciary Committee on Feb. 19 and passed by a vote of 11-7. It is clear of the funnel, as it has passed through the Senate Judiciary Committee.

HF 99 / SF 383 (previously SSB 1074) — Support: Introduced by House Commerce Committee Chair Rep. Shannon Lundgren and Senate Health and Human Services Committee Chair Sen. Mike Klimesh, this bill relates to pharmacy benefits managers, pharmacies, and prescription drugs. Fair pricing requirements would allow rural pharmacies to be competitive and stay in business, preventing more areas of the state from losing local pharmacy services. The House version was considered by the House Commerce Committee on Feb. 11 and passed by a vote of 23-0. The Senate version was considered by the Senate Health and Human Services Committee on Feb. 19 and passed by a vote of 16-1. It is clear of the funnel, as it has passed through the House Commerce Committee and the Senate Health and Human Services Committee.

HF 209 (previously HF 15) / SF 250 — Undecided: Introduced by Rep. Brian Lohse and Sen. Annette Sweeney, these companion bills create a rural attorney recruitment assistance program. Rural counties and municipalities recruiting attorneys to practice in their areas would be eligible to apply for financial incentives through the College Student Aid Commission, providing program requirements are met. Center staff are researching the potential impact of this legislation, as it limits assistance to no more than five attorneys across the state. The House bill was considered by the House Judiciary Committee and passed by a vote of 21-0. It has been renumbered and will next be considered by the Appropriations Committee. The Senate bill was introduced on Feb. 10. A subcommittee has been assigned, but a meeting has not yet been scheduled. It is clear of the funnel, as it has passed through the House Judiciary Committee and has an appropriation component.

HF 143 — Support: Introduced by Rep. Devon Wood, this bill creates a rural veterinary practice innovation and revitalization fund and program. Funding would be appropriated to assist veterinary practices in rural counties. The bill was introduced on Jan. 27 but has not yet been assigned a subcommittee. It is clear of the funnel, due to its assignment to the House Appropriations Committee and its appropriation component.

HF 235 — Undecided: Introduced by Rep. Henry Stone, this bill changes the general and rural county services levy rate limitation for upcoming fiscal years, allowing counties to adjust levy rates if property tax income is equal to or less than the expected general county service expenses. Center staff are monitoring this bill to better understand the monetary consequences for counties that have declining property tax income. The bill was introduced on Feb. 6 but has not yet been assigned a subcommittee. It is not subject to the funnel, due to its tax implications.

SF 270 — Support: Introduced by Sen. Mike Klimesh, this bill creates the Iowa Rural Development Tax Credit Program. Through an application process, the Iowa Economic Development Authority could award tax credits to qualifying businesses for investing in special capital contributions in rural areas. This bill was introduced and a subcommittee was assigned on Feb. 18, but a meeting has not yet been scheduled. It is not subject to the funnel, due to its tax implications.

HSB 143 / SSB 1160 — Undecided: Introduced by the Department of Agriculture and Land Stewardship, these bills seek to clean up some parts of the Iowa Code and make changes to a few sections, including those covering crop production nutrient application, animal health, and foreign disease threats, agriculture food processing and licensing fees, and agriculture marketing as it relates to the grain indemnity fund. Center staff are exploring the details of this large bill and how it would impact rural communities. The bill was introduced on Feb. 10 and a subcommittee was assigned. The House subcommittee met and considered the bill on Feb. 18 and recommended its passage. The Senate subcommittee met and considered the bill yesterday, March 3, and recommended its passage.  It must move through at least one full House or Senate Agriculture Committee this week to clear the funnel.