Minimum wage hike fails, broadband passes.
The Iowa House and Senate wrapped up a six-month legislative season in early June, capping a legislative season in which the wins for small business came from a number of defeated bills, NFIB/Iowa State Director Kristin Failor said. Here are some of the biggest positives of the legislative season:
Minimum wage hike defeated—A bill that would have raised Iowa’s minimum wage more than 20 percent by 2016 died in the House, after making it out of the Senate. It would have increased the state’s minimum wage from $7.25 to $8 and then to $8.75 next fiscal year.
Wage theft bill defeated—This bill focused on nonpayment and underpayment of wages, violations of tipping laws, unauthorized or illegal paycheck deductions, and incorrect classification of employees to avoid paying minimum wage and overtime. Had it passed, it would have burdened small business owners with mounting regulations and paperwork.
Broadband expansion passes—Gov. Terry Branstad’s initiative to bring broadband to rural areas across Iowa, called “Connect Every Acre,” was one of the bigger wins this legislative season. The House and Senate agreed to grant property tax breaks as a business incentive for network expansion. “Our very, very rural areas needed more access to broadband,” Failor said. “And we’re a very rural state, so a lot of our members are out there, but having a higher speed or more reliable bandwidth is essential to them.”
Sales tax hike defeated—The Iowa Senate debated a bill to raise the sales tax by three-eighths of one percent to fund natural resources and outdoor recreation. The legislation was expected to generate an estimated $180 million annually for the Iowa Natural Resources and Outdoor Recreation Trust Fund, but met strong opposition by Senate Republicans.
Adoption leave defeated—This bill would have given parents of adopted children the same paid time off employers offer to families with newborns. Leave could have been granted to any employee who had adopted a child in the past 12 months, but the bill failed to advance in the House.
