Legislative Developments from the 2014 Iowa Legislative

SessionMarc BeltrameBrownWinick

666 Grand Avenue, Suite 2000Des Moines, IA 50309-2510

Telephone: 515-242-2449 (direct)Telephone: 515-229-9134 (cell)

Facsimile: 515-323-8549E-mail: beltrame@brownwinick.com

Political Considerations

Iowa Senate:

26 (Democrats) 24 (Republicans)

Iowa House:

53 (Republicans) 47 (Democrats)

Governor Terry Branstad (Republican)

2014 = Election Year

2013 Review

“Major Activity”

1. Historic commercial property tax reform legislation.

2. Education reform.

3. Medicaid reform.

Result:A. $1 billion surplus spent.

B. Appetite for major action in 2014 limited.

2014 Overview

Major Accomplishments of Session

Major Disappointments

Tax

Litigation

Agriculture/Environmental

Major Accomplishments

Tuition Freeze (2nd straight year)

Medical Cannabis Oil

Drone Regulation

Greyhound Racing

Paddlefishing

Crossbows

Uniform Power of Attorney Act

Major Disappointments

Gas tax increase

Broadband expansion

Texting while driving

Fantasy sports authorization

Easier power transmission line permitting

Sales tax increase for outdoor trust fund

Tax

Section 42: Low Income Housing (HF 2466)

1. Removes IRC Section 42 assessment procedures when property is no longer eligible for that tax treatment.

2. Allows property owner to make a one-time and irrevocable election to withdraw eligible property

from IRC Section 42 assessment.

3. Passed.

Tax (cont.)

Military Veterans (SF 303)1. Exempts military pensions from state income tax (surviving spouses included in exemption).

2. Part of “Home Base Iowa” proposal to recruit veterans from other states to Iowa.

3. Passed.

Litigation

Pitts v. Farm Bureau Fix (Passed)1. Insurance agents not in business of supplying information.

2. Insurance agents have no duty to change beneficiary unless in writing.

3. Insurance agents owe duties only to policy holder or person in privity of contract.

Litigation (cont.)

Statute of Repose (HF 2094)1. Would have amended Iowa Code Section 614

concerning the repose period for improvements to real property.

a. Residential: would remain at 15 years.

b. Commercial: would be reduced to 10 years.

2. Passed House. Not taken up in Senate. Did not become law.

Litigation (cont.)

Wage Payment Collection Act (SF 2295)1. Makes violation strict liability (removes intent

requirement).

2. Expands retaliatory action to persons other than employees (so-called “whistleblower”).

3. Creates a rebuttable presumption that employer did not pay required minimum wage if records

are not kept properly by employer.

4. Passed Senate but did not become law.

Agriculture/Environmental

Native Prairie and Wetlands (SF 2017)1. Specifies that payments received by an owner of real property under the federal wetlands program shall not be considered a use of the property for economic gain.

2. Some county assessors are considering the federal money as economic gain and taxing the land as agriculture.

3. Did not become law.

Agriculture/Environmental (cont.)

Record Funding1. REAP: $25 million for first time in history of

program (25th anniversary).

2. Lake/River Restoration: $9.6 million for lakes; $2 million for rivers (both record amounts).

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