This week marks the first funnel deadline of the 2023 Legislature where a bill needs to make it out of a committee in either chamber for it to move on this session.

At the start of the session the Business Record identified several issues that the business community would be watching this year, and with the first funnel upon us we wanted to revisit where some of those bills stand and which ones have survived the deadline. The list is not inclusive of all issues that could affect the business community.

Bills that involve taxes, fees and the budget are not subject to the funnel deadline.

Bills that have survived the funnel

Government reorganization: House Study Bill 126 would cut the number of state agencies from 37 to 16. The reorganization was one of Gov. Kim Reynolds’ top priorities for the 2023 session. The 1,500-page bill proposes the streamlining of state government, including the elimination of unfilled positions and combining offices.

Medical malpractice: House file 161 establishes a $1 million cap on noneconomic damages in cases regarding medical malpractice. The bill passed both the House and the Senate and was signed into law by Reynolds last month.

Commercial motor vehicle tort reform: Senate File 228 and House File 201 cap noneconomic damages from lawsuits involving commercial vehicle companies to $2 million.

Child care: House File 343 would make child care providers automatically eligible for the state’s child care assistance program; House File 47 would exempt Iowa child care providers from state income tax.

Apprenticeships: House Study Bill 82 and Senate File 318 create the Iowa State Registered Apprenticeship Office, helping to establish a streamlined approach to better enable participation for companies and people in registered apprenticeship programs.

Mental Health: House File 494 and Senate File 127 would enable Iowa to participate in a national Counseling Compact, helping increase the pipeline of mental health professionals into the state.

Workforce: Senate File 167 would revise the state’s child labor law, allowing teenagers to work in jobs that were previously prohibited as long as they are part of a training program.

Economic development: House Study Bill 147 would create a major economic growth attraction program that would be administered by the Iowa Economic Development Authority. To be eligible, a business’s proposed project must be located on a certified site greater than 250 acres and the business’s investment in the project must exceed $1 billion.

Technology: House File 143 and Senate File 203 make the use of ransomware illegal in Iowa and outline criminal penalties. The bills make exceptions for education, research, training and law enforcement purposes. House File 346 and Senate File 262 provide consumers the right to know what personal data of theirs companies have processed. The measure would apply to businesses in Iowa that annually control or process personal data of more than 99,999 consumers or control or process personal data of 25,000 consumers with 50% of gross revenue derived from the sale of the personal data. If passed, the requirement would go into effect on Jan. 1, 2025. Senate Study Bill 1095 protects entities from tort claims alleging failure to implement reasonable information security controls resulting in a data breach as long as the entity was following industry-recognized frameworks when the breach occurred.

Education: House File 68, which was signed into law by Reynolds, created taxpayer-funded educational savings accounts that families could use to pay private school tuition and other educational expenses. It is valued at $7,598 per student in the first year — the amount the state spends per pupil on public K-12 education. The program would be phased in over three years. In the third year, all K-12 students — including private school students — would be eligible for the funding, with no income restrictions. The bill also allows public school districts to use unspent funds from leadership and compensation, professional development and talented and gifted programs to increase teacher pay.

Diversity, equity and inclusion efforts: Senate File 136 would eliminate Iowa’s gender balance law, which requires that all state, county and municipal boards and commissions be gender-balanced. House Study Bill 218 would make it so the universities governed by the Iowa Board of Regents can no longer use funds for diversity equity and inclusion, DEI offices or such employees.

LGBTQ rights: Senate File 335 would prohibit people from using school bathrooms and locker rooms not corresponding with their biological sex, but allow schools to provide accommodations, like single-occupancy restrooms. Senate Study Bill 1145 would require school staff members who believe a child identifies with a gender other than the one assigned at birth to notify parents or guardians, unless the staff determines there is a risk of child abuse. The bill would also create a statewide “removal list” of all books successfully challenged in any Iowa school district. Any books on that list would require parental permission for students to access; and House File 348 bans teaching of gender identity or sexual orientation in kindergarten through sixth grade.

Bills not subject to the funnel

Property tax reform: Senate File 356 would cap cities’ and counties’ general property tax levies and reduce the value at which properties are assessed.

Public transit funding: Senate Study Bill 1125 limits the rate of a franchise fee to 7.5% of gross revenue generated from sales of the franchisee, with franchise fee amounts collected over 5% of gross revenue being designated solely to reduce property taxes collected to support public transportation systems.

The second funnel deadline, which requires Senate bills to be passed by a House Committee and House bills to make it out of a Senate committee in order to continue this year, is scheduled for March 31.

This year’s session is set to adjourn on April 28, the last day lawmakers are paid a per diem for their work.

Business Record reporters Emily Kestel and Sarah Bogaards contributed to this report