June 4, 2020

Appropriations (Contact: Brad Trow at 1-3471) Inside this issue:

Appropriations 1

Agriculture 2

Commerce 3

Education 3

Environmental Protection 4

Human Resources 4

Judiciary 5

Labor 6

Natural Resources 6

State Government 6

Transportation 7

Veterans Affairs 7

Ways & Means 8

The Revenue Estimating Conference met last Friday afternoon to revise their esti-mates for fiscal years 2020, 2021, and 2022. The meeting was one of the longer meetings in recent memory, as the panel held an extensive discussion on what they envision for state revenue numbers in Fiscal Year 2021. All three members of the REC emphasized that the new figures were subject to change, based on the impact of the Coronavirus outbreak.

Fiscal Year 2020 – For the current fiscal year, the REC lowered the General Fund forecast. They set the current year’s reve-nue estimate to $7.9412 billion. This would be a 1.0 percent increase in state revenue over Fiscal Year 2019’s actual collections. The FY 2020 budget with the supplementals approved this year, spends $7.752 billion.

Fiscal Year 2021 – For the next budget year, the REC new estimates for General Fund revenue is $7.8766 billion. This amount is $360.1 million lower than the March estimate of $8.2367 billion. The

new figure is also $64.6 million lower than what the REC set for the revised FY 2020 forecast, or a decline of 0.8 percent.

Fiscal Year 2022 – The panel also re-vised its forecast of state revenue in Fis-cal Year 2022, the REC projected that General Fund revenue would be $8.1995 billion. This would be revenue growth of 4.1 percent or a $322.9 million increase over the current FY 21 projection.

Rebuild Iowa Infrastructure Fund - The REC also projects gaming tax revenue, which funds the Rebuild Iowa Infrastruc-ture Fund. The panel is expecting gaming tax revenue in Fiscal Year 2020 to be $72.9 million lower than the March fore-cast. With this reduction the RIIF budget will be short of funds for the current fiscal year ending June 30. In Fiscal Year 2021, the REC projected that gaming tax reve-nue will be $25 million lower than what was projected in March.

Revenue Estimating Conference Revises Forecast in Wake

of Economic Disruptions

NEWSLETTER

Agriculture (Contact Lew Olson at 1-3096)

House Republican Newsletter Page 2

On Tuesday. June 2, 2020, the Iowa State University (ISU) Exten-sion and Outreach issued a press release concerning programs designed to help farmers cope with the consequences of the eco-nomic impact and unpredictability produced by the COVID-19 pan-demic. Governor Reynolds has described the effect of COVID-19 on Iowa’s farm economy as devastating. During her May 28 daily press briefing, Governor Reynolds and Iowa Secretary of Agricul-ture Mike Naig communicated that Iowa’s meatpacking plants are operating at only 80% capacity. In addition, the U.S. pork industry has lost about 25% of its processing capacity due to COVID-19. As a result, some livestock producers are having to euthanize ani-mals. Iowa State University economists are saying Iowa’s pork industry has lost more than $2 billion; the beef industry, $700 mil-lion; corn, nearly $800 million; and soybeans, more than $200 mil-lion.

Every Iowan is eligible for free, confidential resource and referral, education and counseling. People can contact the Iowa Con-cern Hotline at 800-447-1985 or go to https://covidrecoveryiowa.org/. Program staff at these sites can also pro-vide referrals to and information about programs that will help Io-wans manage stress, family financial and farm financial concerns throughout the pandemic. These programs include ISU Extension and Outreach farm management resources, resources for parents

and much more. Educational seminars and solutions also are available for farmers and businesses managing staff remotely who need support. Contact COVID Recovery Iowa to learn more and receive a response tailored to your specific personal or business need.

COVID Recovery Iowa resources at a glance

Website: covidrecoveryiowa.org

Facebook: https://www.facebook.com/covidrecoveryIowa

Twitter: https://twitter.com/covidrecoveryia

Instagram: https://www.instagram.com/covidrecoveryiowa/

Phone: Iowa Concern Hotline at 800-447-1985 or Iowa Warm Line at 844-775-9276

Iowa Leaders Petition USDA to Provide CFAP Funds for Egg Producers

On Tuesday, June 2, 2020, the Iowa Department of Agriculture & Land Stewardship (IDALS) issued a press release in which an-nounced that in a letter sent to Secretary Sonny Perdue today, U.S. Senators Chuck Grassley and Joni Ernst, Iowa Gov. Kim Reynolds, and Iowa Secretary of Agriculture Mike Naig asked the United States Department of Agriculture (USDA) to include egg producers in the Coronavirus Food Assistance Program (CFAP). The Iowa leaders wrote in part, “COVID-19 has impacted our Iowa farmers, including our egg producers, whose eggs were destined for the liquid egg market. Because of the massive damage done to this industry as restaurants, schools, and other egg-buying busi-nesses have closed over the past few months, we write today in support of their inclusion into the CFAP to keep these producers afloat until the pandemic abates.” With nearly 70 percent of Iowa’s layer flocks producing for the liquid egg market, the COVID-19 market disruption has proved to be devastating to Iowa’s egg pro-ducers. U.S. Senator Grassley commented--

“I’m glad USDA has said payments to farmers will begin under the Coronavirus Food Assistance Program. Market disruptions have negatively impacted almost all operations in Iowa, including egg producers. The liquid egg market saw a 68 percent price decline as sales to restaurants and hotels dried up during the COVID-19 pandemic. I’m glad to join Governor Reynolds, Senator Ernst and Iowa Secretary of Agriculture Naig in this effort to ensure liquid egg producers are kept afloat until the pandemic ends. We appreciate USDA’s willingness to hear from public comment, and welcome an adjustment to the program to allow egg producers to qualify.”

Iowa is home to over 58 million egg-laying hens and about one in six eggs consumed in the United States each year. As an integral part of the state’s economy, the egg industry is responsible for as much as $2.6 billion in total economic activity, supporting 7,084 jobs and directly employing 2,398 people. Read the letter in its entirety here.

ISU Extension & Outreach notes—COVID Recovery Iowa Available to Agriculture Community

Iowa receives $26.2 million in emergency education relief to expand broadband access

Gov. Kim Reynolds and the Iowa Department of Education an-nounced Monday that the state has received $26.2 million in feder-al relief to ensure education continues for students of all ages im-pacted by the COVID-19 pandemic.

Iowa’s grant is part of the nearly $3 billion Governor’s Emergency Education Relief (GEER) Fund authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The GEER fund al-lows governors to determine how to best meet the needs of stu-dents in public and non-public schools, postsecondary institutions, and other education-related organizations.

Better enabling remote learning for K-12 and postsecondary stu-dents is the goal of Iowa’s GEER application. It focuses on provid-ing and expanding broadband access and improving access to technology in other ways. That could include providing Wi-Fi hotspots and devices. Funding also may be used to offer profes-sional development related to remote learning to educators in school districts and non-public schools as well as in public and private colleges and universities.

“Rapidly expanding and improving broadband access is essential for our state’s future,” said Gov. Reynolds. “As we have seen with a pandemic and an ever-changing economy, learning must contin-ue beyond the classroom. These resources will equip Iowa schools

and educators to pave a pathway for student success in the grow-ing digital classroom and future workplace.”

“Superintendents told us better connectivity is what they need most to provide high-quality learning for all students during the pandemic,” said Iowa Department of Education Director Ann Lebo. “We have students without access to the technology they need and Iowa’s GEER grant is an important step toward solving that problem. I am so proud of the work school leaders and teachers are doing, and that we can help support it in this way.”

The Iowa Department of Education in collaboration with the State Office of the Chief Information Officer (OCIO) is conducting a statewide survey regarding barriers Iowans face to remote learn-ing, including broadband access. The household survey targets families with K-12 students but also asks about college students. The intent is to prioritize areas of the state with the greatest need based on the survey results.

These GEER funds are in addition to the $71.6 million Iowa re-ceived in federal relief for PK-12 schools through the Elementary and Secondary School Emergency Relief Fund within the CARES Act. The Iowa Department of Education will provide more infor-mation soon about how the GEER funding will be allocated

Education Contact Kristin Rozeboom at 1-3015)

House Republican Newsletter Page 3

COVID-19 Liability Protections—Iowan’s Roadmap to Reopening

Commerce (Contact Ben Gentz at 1-3452)

Many businesses in Iowa are important to our food supply, pro-duce or supply medical supplies, and create needed items through manufacturing. These businesses stayed open during the COVID pandemic to provide everyone else with the food and supplies needed to eat and stay alive. Many businesses have expressed concern regarding reopening and the corresponding risk in today’s litigious society. COVID-19 presents unique and unprecedented challenges. Iowa businesses have reacted and complied with proc-lamations and guidelines. Business and market conditions resulted in some businesses operating, others partially operating, many temporally closing, or a combination of the above. Everyone is facing concerns regarding the corresponding COVID-19 liability risks.

Iowa’s economy has taken some damage due to the coronavirus. It is important to balance economic vitality with an ongoing pan-demic. But also, businesses, schools, and other entities are oper-ating in a new risk environment and they need a way to limit expo-sure to frivolous or opportunistic lawsuits that make claims against their already scarce resources. The question is what legal liability should there be in a retail or workplace setting in these circum-stances? Or, how can government policies restore some of Iowa’s GDP and encourage employment while protecting workers and customers from the most egregious instances of harm?

House Republicans have worked with Iowa businesses, healthcare providers, and others on a solution. The focus has been on three main areas:

1. Civil liability for businesses, schools, churches and others

2. Civil liability for front-line health care workers

3. Product liability protection

This legislation uses a recklessness standard for liability balances the responsibility between an organization and the public. Under the recklessness standard, an organization is liable for damages when it knew or should have known that its conduct would likely cause significant harm to others. This standard provides some legal certainty for businesses and others who want to be open,

while not covering hard-to-measure or vague risks. It provides wronged parties a way to be made whole, when the organization was reckless in their response, but it also gives businesses and others an incentive to take precautions and follow public health recommendations.

There is also a requirement for actual injury to bring a lawsuit. This restricts frivolous legal action brought by people who never had the coronavirus. Some are already seeking damages for emotional harm because they were afraid of getting the virus or other ex-penses they attempt to connect to a fear of contracting COVID-19.

So, who and what would be covered under this legislation?

• Limits the liability of businesses, schools, churches and other legal entities – SF 2338 includes a safe harbor for compliance with regulations, executive orders, or public health guidance. For example: a restaurant following guidance by limiting capacity and spacing tables, cannot be sued by a cus-tomer claiming to have gotten the coronavirus at the restau-rant. However, if the restaurant provided masks to employees made from an old tennis net, that would be considered reck-less, and not covered under this legislation.

• Limits the liability of health care providers – SF 2338 pro-vides protections for health care workers who responded to the COVID-19 pandemic to keep our friends, families, and communities safe and healthy. For example, by delaying or canceling nonurgent or elective surgical procedures (like knee replacement) in response to federal or state statute, regula-tion, order or public health guidance

• Limits the liability on products produced and used in re-sponse to COVID-19. Under SF 2338, if a distillery modified their process to make hand sanitizer instead of alcohol, and later someone had an allergic reaction to the sanitizer, the distillery could not be sued. Again, if they intentionally used water instead of alcohol to make the sanitizer, they would have no liability protection.

Human Resources (Contact Natalie Ginty 5-2063)

House Republican Newsletter Page 4

On Thursday, May 28, 2020, the Iowa Department of Natural Re-sources (DNR) published its electronic newsletter ‘EcoNewsWire’ containing an article about derelict building grants. The DNR’s Derelict Building Grant Program deconstructs or renovates aban-doned structures, remove asbestos and limit construction and demolition materials going to the landfill. The DNR Derelict Build-ing Grant Program was instituted by statute to help rural communi-ties with populations of 5,000 or smaller remove environmental hazards, improve community appearance and minimize costs by recycling and reusing building materials through deconstruction or renovation of abandoned, derelict buildings. Grant funding is awarded annually on a competitive basis with cash matches re-quired. Applications for the next funding round will be due on Feb. 19, 2021. The following projects will receive a combined total of up to $403,071.50 as reimbursement grants:

• City of Cambridge — $13,477.50 for renovation of an opera house to add housing units and commercial space.

• City of Clarion - $63,923 for deconstruction. Following decon-struction activities, the city will create a downtown pocket park using bricks from the former building. The park will be used for informal gathering and for outdoor movies, music events and other arts entertainment.

• City of Dedham - $58,786 to abate asbestos and deconstruct an old grocery store. The city plans to develop a green space and pocket park as a central location where people may gath-er near downtown businesses.

• City of Essex - $15,558 to inspect and abate asbestos and complete a phase 1 environmental site assessment and struc-tural engineering analysis for an old church.

• City of Humboldt - $14,300 for asbestos abatement on the former post office. The site will be used for commercial sales expansion.

• City of Lake City - $5,000 for asbestos abatement of an old automobile dealership.

• City of Mallard - $18,115 for asbestos abatement and decon-struction of a grocery store. New site will be used as an ac-cessible parking lot, improving access to downtown business-es for all residents.

• City of Manson - $34,975 for asbestos abatement and renova-tions of an old retail clothing store. Renovated structure will be used for commercial space.

• City of Mediapolis - $63,750 for deconstruction of old grain elevator. Site will be cleaned, backfilled and readied to market for commercial or light manufacturing use.

• City of Monticello - $60,000 asbestos abatement and renova-tion. Future plans include either maintaining ownership to turn into an extension of the Dubuque Innovation Lab with residen-tial rentals on the second floor or offering the building for sale with commercial/office space on the main floor and residential rentals on the second floor.

• City of Oxford Junction - $30,000 for renovation of an old ma-sonry building. The city plans to offer the structure for sale with commercial space on the main level and residential rent-als on the second floor.

• City of Rockwell City - $25,187 for renovation of a 1920 build-ing. The city will offer the property for retail/commercial use on the main floor and residential rentals on the second floor.

For more information about the grant program, application forms and resources, visit: www.iowadnr.gov/Environment/LandStewardship/WasteManagement/DerelictBuildingProgram.aspx.

Environmental Protection (Contact Lew Olson at 1-3096)

DNR Derelict Building Grant Program Awards Funding to 12 Rural Iowa Communities

Iowa has received an A+ data quality grade from the COVID Tracking Project for its Coronavirus Dashboard at https://coronavirus.iowa.gov/. This website provides Iowans with real-time information to understand the local and statewide impact of COVID-19. Only 12 other states/territories received the A+ grade, while 17 received an A, 17 received a B, 6 received a C, and 3 received a D grade.

Please take time to review Iowa’s website where you can track

case counts since the beginning and see that Iowa’s health care

system has stabilized and is beginning to decrease in COVID pa-

tients. I appreciate the transparency provided to Iowans and the

data driven approach the Governor has taken throughout this pub-

lic health emergency.

Iowa Receives A+ for Data by the COVID Tracking Project

House Republican Newsletter Page 5

Help for Iowans Facing Evictions and Foreclosures

Judiciary (Contact Amanda Wille at 1-5230)

COVID Recovery Iowa recently launched and provides free coun-

seling to any Iowan who has been affected throughout this public

health emergency. Iowans can access services through the follow-

ing options:

• Call 800-447-1985 to connect with a counselor specializing in

rural issues and agriculture 24 hours a day, seven days a

week

• Call the Iowa Warm Line, 844-775-9276, to connect with a

peer counselor or request to get in touch with a COVID Re-

covery Iowa counselor.

• Visit www.COVIDrecoveryiowa.org and complete a contact

form and a counselor will get back to you.

The Iowa Department of Human Services received nearly $1 mil-

lion in funding from FEMA to offer this free counseling. DHS has

contracted with five providers throughout the state to provide the

counseling, virtual activities, referrals and help finding resources.

People of all ages may join groups online to find support and learn

new strategies to cope during this uncertain time.

Free Counseling Available to Iowans

In March, Governor Reynolds placed a moratorium on evictions and foreclosures due to the COVID-19 pandemic. Last week, the moratorium ended meaning some Iowans could face losing their homes or being evicted if they have fallen behind in payments. Recognizing the seriousness of the issue, the Governor and the Iowa Finance Authority (IFA) have introduced the COVID-19 Evic-tion and Foreclosure Prevention Program to help Iowans facing housing problems.

The Federal CARES Act provided money to Iowa to help those impacted by COVID-19. The money is being divided up amongst state agencies to help with various needs. IFA has set the guide-lines for Iowans seeking assistance through the Eviction and Fore-closure Prevention Program.

Rental Assistance: Rental assistance is available for up to four months, beginning with April 1st rent payment. This money can be used to help with current rent payments, as well as up to two months of missed rental payments. A maximum of $3,200 per per-son is available. This includes manufactured home rent and lot rent.

Mortgage Payment Assistance: Mortgage assistance is available for up to four months, beginning with April 1st mortgage payment.

This money can be used to help with current mortgage payments, as well as up to two months of missed mortgage payments. A maximum of $3,000 per person is available.

Who Qualifies:

• Current renters and homeowners

• Those at risk of eviction or foreclosure due to a documented

COVID-19 related loss of income on or after March 17, 2020

• The household income cannot exceed 80% of the medium

family income in the county at the time of application.

• Applicants cannot be currently receiving the $600 additional

federal CARES Act stimulus unemployment benefits.

The Governor has allocated $22 million to the program. The mon-ey will be paid directly to the landlord or mortgage service provider and will be provided on a first come first serve basis. Additional information can be found https://www.iowafinance.com/covid-19-iowa-eviction-and-foreclosure-prevention-program/ and those without internet access can call 855-300-5885.

Giving Back While Serving Time

State Government (Contact Logan Murray 1-3626)

Additional Unemployment Benefits Available to Iowans

Iowa Workforce Development (IWD) released information regard-ing two new unemployment benefit programs available to Io-wans. Pandemic Emergency Unemployment Compensation (PEUC), was created by the CARES Act and provides an addition-al 13 weeks of federally funded benefits to individuals who have exhausted their 26 weeks of regular state unemployment bene-fits. PEUC is available for weeks of unemployment beginning on or after March 29, 2020, and continuing through the week ending December 26, 2020. The weekly benefit amount for PEUC is the same amount an individual receives for regular unemployment benefits. Payments will include all back payments for which the individual is eligible, in addition to $600 weekly Federal Pandemic Unemployment Compensation (FPUC) payments through the end of July.

Additionally, due to the increased number of unemployment bene-fits since the middle of March, State Extended Benefits (EB) have been triggered. Unemployed workers who exhaust their allotted weeks of regular state unemployment and then the 13 weeks of federal PEUC benefits will now be eligible for State EB, which pro-vides up to an additional 13 weeks of regular unemployment bene-fits while State EB is still triggered “On” in Iowa. The weekly bene-

fit amount for State EB is the same amount an individual receives for regular unemployment benefits and PEUC. No additional ac-tion is needed by individual claimants at this time as claimants will automatically be moved to the two new programs as they exhaust regular unemployment benefits.

Iowans will not be eligible for State EB until PEUC benefits have first been exhausted. IWD will provide notification to claimants when they exhaust PEUC and become eligible for State EB. The availability of State EB is dependent on a rolling 13-week unem-ployment rate. As the state reopens and more people return to work, the rate will decline and the State EB program will end. IWD will provide additional details of the State EB program as guidance is received from the U.S. Department of Labor.

Statewide unemployment claims data, which reflects activity for the week prior, is made available in a news release issued on Thursday mornings. It is also available on IWD’s web-site: www.IowaWorkforceDevelopment.gov

Governor Reduces Licensing Requirements

House Republican Newsletter Page 6

Labor (Contact Kristin Rozeboom at 1-3015)

Natural Resources (Contact Natalie Ginty 5-2063)

Take a Walk in Iowa State Parks

To celebrate the 100th anniversary of Iowa state parks, the DNR

partnered with three organizations, the Iowa Walking Club, the

Nebraska Wander Freunde Trailblazers, and Iowa Parklands, to

create 5k and 10k walking routes in 20 Iowa state parks. Maps and

directions are free and available for download at https://

www.iowadnr.gov/20walks

The 5k and 10k walks are intended for visitors to explore on their

own or with a small group. Route starting points are marked with a

Walk Box containing free maps, along with supplies for walking

club members to submit donations as part of their membership.

Walkers who are not members may use the maps and enjoy the

walking routes as a free service for the 100th anniversary celebra-

tion.

During the COVID-19 pandemic Governor Reynolds suspended a number of licensing requirements to ensure social distancing and to alleviate burdens put forth through because of the novel virus. Some of the regulations that were altered can be found below.

During the novel COVID-19 virus the Governor removed the re-quirement for in-person continuing education requirements for professional licenses and expiration dates or renewal require-ments that are found in the following code sections: private investi-gative agencies and security agents, amusement ride operators, asbestos removal, asbestos removal and encapsulation, boilers and unfired steam pressure vessels, elevators, boxing, mixed mar-tial arts, and wrestling, construction contractors, pari-mutuel wa-gering), gambling games and sports wagering regulation, fire ex-tinguishing and alarm system contractors and installments, fire protection system installation and maintenance, explosive materi-als, electricians and electrical contractors, plumbers, mechanical professionals and contractors, controlled substances, drugs, devic-es, and cosmetics, Department of Public Health, radon testing,

radiation machines and radioactive materials, general provisions health-related professions, emergency medical care - trauma care, interstate medical licensure compact, medicine and surgery and osteopathic medicine and surgery, physical therapy, occupational therapy, physician assistants.

The completion of background checks for initial applicants as a condition of obtaining professional licensure that are required un-der Iowa Code 272.2(17) (Board of Educational Examiners), 272C.3(1)(a) (regulation of licensed professions and occupations), 543B.15(9) (real estate brokers and salesperson), and 543D.22 (real estate appraisals and appraisers). Additionally, the following licensing requirements were suspended.

(Continued on next page)

Veterans Affairs (Contact Ashley Beall 1-3440 )

Truckers received well-deserved public recognition for working long hours to deliver the medical supplies, food and other goods needed by Americans during the COVID-19 public health emer-gency.

America’s 3.5 million truck drivers are helping support Americans and the economy with their dedication and skill. They are unex-pected heroes. The US Department of Transportation has listened to the trucking industry’s concerns, provided Federal regulatory relief, and helped ensure that truck stops and rest stops are open and provide food for truckers.

This is important because the public health emergency is not only putting a strain on drivers, it is hurting the trucking industry itself in several respects. Drivers are seeing longer delays in shipping and freight transfers of emergency relief goods. Closures of state de-partments of motor vehicles have prevented new entrants from obtaining their commercial learner permits to become truck drivers.

After an initial sharp rise in demand to restock shelves and deliver supplies, the decline in economic activity has had negative conse-quences for the industry with decreases in freight volumes and rates since their peak during the public health emergency in the 3rd week of March. Certain sectors of the industry have been hit harder than others, and the emergency affects trucking companies of all sizes. Many independent drivers and smaller trucking firms, which employ 90 percent of all truck drivers, are struggling to sur-vive.

In addition to regulatory relief from the US Department of Trans-portation, many smaller trucking firms are benefitting from small business aid provided through the Coronavirus Aid, Relief, and. Economic Security CARES Act. These include small business loans and the Paycheck Protection Program. This helps keep the industry intact and ready to get the economy back on its feet when this public health emergency is behind us. Helping truckers do their jobs today will help all Americans get back to work faster.

House Republican Newsletter Page 7

(Continued from page 6)

The governor also suspended the following:

• An application expiration date and deadline for taking certain examinations to be licensed as a professional engineer or land surveyor is suspended.

• Examination deadlines as a condition for initial licensure for appraisers is also suspended.

• The 18-month examination deadline as a condition for initial licensure for prospective certified public accountants.

• Iowa Code § 206.5(2)(a) (pesticides certification) solely as it applies to commercial applicators, public applicators, and pri-vate applicators who were certified applicators as of Decem-ber 31, 2019.

These type of reductions during the pandemic identify some of the

issues and burdens that are placed on workers because of exces-

sive licensing requirements. In License to Work: A National Study

of Burdens from Occupational Licensing, a publication researched

and written by the Institute for Justice, it was determined that Iowa

is the 12th most broadly and onerously licensed state in the coun-

try. The researched identified 102 lower-income occupational and

identified which state licensed these positions. Iowa required occu-

pational licenses for 71 of the 102 occupations. Iowa also licenses

a number of professions that are rarely licensed in other states,

such as travel agencies (6) and dental assistants (8).

According to this study, the average barrier to entry is $178 in

fees, 288 days lost to education and experience, and around one

exam. An excellent example of how burdensome these require-

ments are can be seen in dental assistants (licensed in less than

20% of states) are required to have 20 hours of education, 6

months of experience, $86 in fees, and three examinations. Iowa

also requires 2,100 hours of experience for aspiring barbers and

cosmetologists, which is the highest in the country, while EMTs

only needs 110 hours of experience.

Supporting Truckers and Helping America Recover from COVID-19 More Quickly

Transportation (Contact Ben Gentz at 1-3452)

From the VA:

The U.S. Department of Veterans Affairs (VA) today announced it is teaming with the Bristol Myers Squibb Foundation (Foundation) to build new programs to enable VA oncology specialists to pro-vide Veterans access to precision cancer care regardless of where they live.

The Foundation has committed to providing VA $4.5 million in grant funds over three years to help establish a national teleoncol-ogy center to more effectively reach Veterans living in rural com-munities.

The VA Center for Strategic Partnerships facilitated the grant, which will utilize VA's telehealth infrastructure allowing Veterans access to teleoncology platforms under the Foundation’s Global Cancer Disparities Initiative. This will offer genetic counseling to Veterans who undergo sequencing and afford Veteran oncology patients a range of potentially life-saving clinical trials — even if

they live a distance away from a VA medical center. Veterans en-rolled in VA health care are two and a half times more likely to live in rural areas where access to specialty care is limited.

“Delivering innovative solutions through virtual care technologies is vital,” said VA Secretary Robert Wilkie. “The VA-Bristol Myers Squibb Foundation partnership will build on the Veterans Health Administration’s (VHA) recent telehealth expansion to establish a leading-edge hub for teleoncology which will serve as a model for oncology specialists in every health care system.”

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Multimillion-dollar grant to help reach Veterans in rural areas

Ways & Means (Contact Kristi Kious at 2-5290)

This week the Iowa Department of Revenue put out a news re-lease detailing how Iowa’s tax code handles provisions of the CARES Act. The CARES Act includes a number of changes to federal tax provisions that are retroactive to tax years 2018 and 2019. Iowa generally conforms with tax provisions of the CARES Act to the extent they affect Iowa income taxes for tax years begin-ning on or after January 1, 2020.

Iowa has not conformed with any of these federal tax changes to the extent they apply to any tax year beginning prior to January 1, 2020. The relevant retroactive tax provisions are identified below. The Department is in the process of putting together nonconformi-ty guidance and instructions for how to report these differences on Iowa returns.

Retroactive provisions of the CARES Act with which Iowa does not conform:

• Paycheck Protection Program (PPP) under the CARES Act.

A taxpayer’s PPP loan that is forgiven and properly excluded from federal gross income under section 1106 of the CARES Act in a tax year beginning on or after January 1, 2020, will also qualify for exclusion from income for Iowa tax purposes. However, Iowa is not conformed with sec-tion 1106 of the CARES Act for tax years beginning prior to January 1, 2020. If a taxpayer receives PPP loan for-giveness for a tax year beginning prior to January 1, 2020, that discharge of indebtedness may be considered income for Iowa tax purposes, unless the income quali-fies for exclusion under another applicable provision of federal or Iowa law.

• Modification of Limitation on Losses for Taxpayers Other than Corporations (Excess Business Losses) under the CARES Act.

Section 2304 of the CARES Act temporarily suspended the excess business loss limitation under Internal Revenue Code (IRC) section 461(l) for tax years 2018 through 2020. Iowa was not conformed with the excess business loss limitation for tax year 2018, so the temporary sus-pension of the excess business loss limitation in the CARES Act should have no effect on the calculation of

net income on 2018 Iowa income tax returns. For tax year 2019, the excess business loss limitation will apply for Iowa tax purposes, even though the limitation does not apply for federal purposes.

• Modification of Limitation on Business Interest under the CARES Act.

Section 2306 of the CARES Act makes several changes to the limitation on the deduction of business interest under IRC section 163(j). In relevant part, the provision increas-es, at the election of the taxpayer, the percentage of a taxpayer’s adjusted taxable income (ATI) used in calcu-lating the deduction limitation from 30% to 50% for tax years 2019 and 2020. The provision provides that the ATI increase does not apply to partnerships in tax year 2019, and instead includes special rules that ultimately affect a partner’s business interest limitation calculation beginning in tax year 2020. Iowa is not conformed with this change to the extent it applies retroactively to tax year 2019. Spe-cifically, the ATI percentage used in calculating the de-duction limitation is 30% for Iowa tax purposes in tax year 2019, even though many taxpayers have the option to use 50% for federal purposes.

• Depreciation of Qualified Improvement Property (QIP) under the CARES Act.

Section 2307 of the CARES Act provides that qualified im-provement property, as defined under section 168(e)(6) of the IRC, placed in service after December 31, 2017, may be classified as 15-year MACRS property for federal depreciation purposes and is assigned a class life of 20 years for ADS purposes. Iowa does not conform to this treatment for tax years 2016 through 2019, and instead treats qualified improvement property placed in service during those tax years as 39-year property. Bonus depre-ciation under IRC section 168(k) is not allowed for Iowa tax purposes for any tax year.

Iowa generally conforms with tax provisions of the CARES Act to the extent they affect Iowa income taxes for tax years beginning on or after January 1, 2020.

House Republican Newsletter Page 8

Iowa Non—Conformity with Cares Act-Department Information

(Continued from page 7)

The program will support the delivery of best-in-class care, educa-tion and practice in collaboration with VHA’s existing precision oncology initiative which has had dramatic impacts for some Veter-ans and will now be available to all Veterans with advanced can-cer.

“The Foundation will work with VA to accelerate the growth of tele-oncology,” said Bristol Myers Squibb Foundation President John L. Damonti. “By developing, implementing and standardiz-ing workflow processes, this project will expedite the expansion of a model for delivering specialized oncology care in a virtual setting — and help cancer care teams provide the utmost patient experi-ence in a virtual care environment.” The Foundation’s grant will also be used to create a human centered design training program.

Leaders from Bristol Myers Squibb, Bristol Myers Squibb Founda-tion and VHA will launch the program at the America Society of Clinical Oncology (ASCO) annual meeting. During the ASCO20 virtual education program, August 8-10, they will share individual

capabilities and discuss how collaboration is improving cancer care for the nation’s military Veteran patient population.

“As an oncologist and a veteran of the Army, I welcome the sup-port provided by this grant,” said ASCO President Howard A. “Skip” Burris III, MD, FACP, FASCO. “VA’s leadership in telehealth will be shared with the broader oncology community.

The teleoncology program paves the way for VA and the Bristol Myers Squibb Foundation to enhance the capabilities of VA Video Connect, a platform that allows Veterans and their caregivers to meet virtually with their VA health care teams on any computer, tablet or mobile device with an internet connection. VA Video Con-nect is one of the largest and most successful digital health plat-forms in the nation and is currently responsible for conducting more than 20,000 virtual appointments each day.

Veterans interested in VA’s participating in teleoncology services should consult with their VA health care team. For more infor-mation about VA telehealth, visit connected care.