February 23, 2018
This week was full of floor debate. We passed a number of bills, most on a bipartisan vote, and sent them to the House for their consideration.
One of these was Senate File 2177, an important bill for consumers, especially since the Equifax breach last year affected nearly 1.1 million Iowans. This bill removes the ability for consumer reporting agencies to charge a fee to freeze someone’s credit, to temporarily unfreeze their credit, and to permanently unfreeze their credit. These companies would have to provide this service for free to Iowans.
Currently, the state allows fees up to $10 for initiating and permanently removing a freeze, and $12 per temporary unfreeze – per agency. This means people who would like to freeze their credit must pay $30 to these agencies, and $36 if they wanted to unfreeze it for a major purchase, like buying a house. That is $66 dollars in fees to simply have credit agencies freeze and unfreeze credit.
Additionally, the bill updates the code to reflect changes in technology so companies will now be required to allow consumers to ask for a freeze by mail, telephone, email, or through a secure online connection. If passed by the House and signed by the governor, it would be effective immediately.
Another bill passed by the Senate this week was Senate File 2113. This bill requires a one-hour training for educators on suicide awareness, occurring when a teacher is renewing their license. It will help ensure those providing services to students are able to recognize the signs of depression and suicide in children, teens, and young adults.
Suicide is the third leading cause of death for children ages 5-14 in our state. Teachers interact with our children almost daily, and this bill helps equip them with the tools to recognize the signs of suicide and depression and helps keep our students safe.
The Senate also passed Senate File 2229. It was an interesting bill because it was repealing a statute, regarding mechanic’s liens, enacted in 1855. It was brought to our attention by constituents over the interim. This policy was no longer necessary due to changes in other provisions in later years. Bills like this one are a great example of some of the things we look into when we’re not in session and things our constituents bring up during those months.
Tax relief for Iowa families: This week, we also presented our tax relief plan: Iowa Working Families Tax Relief Act. Our plan has the Iowa family at the center and accomplishes one of our key goals of tax relief – to simplify. This proposal cuts overall individual income tax rates by 30 percent. Taxpayers will receive a cut on average of $1,000 a year. This policy means over $1 billion annually in tax relief. Middle-income earners in our state will keep more of their own money.
This money can be saved for a college education. This money can be re-invested into your own business or a local business. This money is put back into your community. For hard-working, middle-class families, this money can go a long way.
Additionally, our proposal simplifies the complex tax code, making it easier for Iowans to pay taxes. Iowa Working Families Tax Relief Act provides clarity to taxpayers and job creators, while making Iowa one of the most tax-friendly states in the nation.
Leveling the playing field for Iowa job creators: We also proposed a new economic development tool this week to help spur investment in Iowa, grow the workforce, and put more money into the pockets of hard-working Iowans.
This initiative is more than rewriting Iowa’s complex tax code. It is a plan that reverses a long-standing trend of passing tax carve-outs for special interests and businesses to relocate or even stay in Iowa. Our plan, Iowa Working Families Tax Relief Act, would create a path to take Iowa from one of the higher taxed in the nation to one of the most tax friendly.
One of the key components of the proposal would cut the individual income tax rates by 30 percent. This significant reduction is a tremendous help to recruiting new business and bringing its workforce to Iowa as well as rewarding existing companies and their hard-working employers.
The tax relief proposal also addresses Iowa’s tax credit program. With the proposed reduction in individual income tax and lowering the state’s top corporate tax rate from 12 to 7 percent, those tools become the engine to help drive Iowa’s economy and create new career opportunities. The new competitive tax rates would lessen the need for use of tax credits, which would sunset most of those credits currently on the books. Under the proposal, the Iowa Tax Expenditure Committee would be tasked with evaluating the future of tax credits in the state.
This initiative can set Iowa on a course to be the state others want to copy and follow our lead, when it comes to economic growth.
As always, I want to hear from you. My Senate number is (515) 281-3371 and my home number is (515) 432-7327 or write me at: State Capitol, Des Moines, IA 50319 or at my home address: 1313 Quill Avenue, Boone, IA 50036 or email me at jerry.behn@legis.iowa.gov
