The first regular session of the 90th Iowa General Assembly gaveled in at 10:00 am on Monday, January 9th. This marked the first day of the scheduled 110-day session. The 90th General Assembly includes a total of 53 new legislators: 39 in the Iowa House and 14 in the Iowa Senate.

Governor Reynolds delivered her Condition of the State address on Tuesday where she provided her budget and priorities for the 2023 session. The main legislative highlights the Governor wishes to pursue are:

• A school choice proposal that allows any Iowa student (after a 3-year phase-in) to be able to take the $7,598/year that would have flowed to their public school and instead direct it toward a private school.
• Major new restructuring of state government that will reorganize the duties of 37 executive branch entities and shrink cabinet level offices to 16.
• A moratorium on any new administrative rules until a four-year review is completed.
• Big investment in health career pathways (apprenticeships) - adding $12 million more to the $3 million already appropriated.

The Iowa House wasted no time with thirty-four House Republicans introducing what will likely be the first of many property tax reform bills of the session, House File 1. According to the Iowa League of Cities, HF1 focuses on four significant changes:

• Division 1 impacts the school aid formula, shifting 50 cents of the current $5.40 school aid foundation levy to state aid. This impacts local governments that use tax increment finance (TIF).
• Assessment Limitation: Division 2 limits future assessments of "actual value" on individual parcels to 103% of the previous assessment year (3% increase.) Exceptions are made for new construction and improvements, changes to the classification of the property, sale of properties and lack of previous assessments.
• Bonding: Division 3 requires cities to deposit 10% of the cost of a project into a fund before seeking bond approval of the project or issuing bonds. Adds individual notice requirements by mail for bonds for every property taxpayer affected.
• Essential Corporate Purpose: Division 3 also moves projects under Chapter 403 (urban renewal and 28E matters) out of Essential Corporate Purpose and places them in General Corporate Purpose.

Once again this legislative session, please follow Bill Tracker for daily updates on legislation tracked by PDI.