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March 20, 2020

During what would have been the busy second funnel week, the legislature convened and worked late into the night on Monday, March 16 to respond to COVID-19 in Iowa. The Legislature passed a deal that funds the government through the end of August and suspended the legislative session for at least 30 days through April 15. (SF2408 and SCR102) The capitol building is closed to the public until March 31. It is unclear at this time when the session will reconvene.

Many changes have quickly occurred, with community spread of COVID-19 caused by the coronavirus identified March 14, in Dallas county. Additional cases of community spread have since been identified in many other Iowa counties. Yesterday at a press conference Governor Kim Reynolds told reporters there are 44 positive cases and 642 negative tests. Testing capabilities remain limited and IDPH is recommending most people with mild symptoms do not get tested, so the statistics on reported cases do not accurately reflect the number of people in Iowa with the virus. The latest official IDPH numbers are listed here. The Governor issued a declaration this morning easing some regulations, deadlines and restrictions to respond to COVID-19. The text can be found here

Governor Reynolds declared a state of Public Health Disaster March 17. The Governor suggested schools close for a month, and universities, schools, and daycares have been responding. Gyms, restaurants and bars closed at noon on St. Patrick’s Day, and any public gathering of more than 10 people is prohibited. IowaBio staff, along with many other Iowa companies are currently mainly working from home.

These developments significantly change the landscape not only for each Iowan’s personal and work lives, but for the legislative session, that was scheduled to end on April 21st.

Because the legislature funded the government at status quo through August, a state budget for FY2021 will need to be passed before the end of August. The fate of all policy bills now is in question. IowaBio will continue to gather information on IowaBio priorities and on bills we opposed, during the suspension.

IowaBio member companies including Integrated DNA Technologies, Pfizer, and Johnson & Johnson among others, are helping respond directly to the threat of the virus, developing tests, and vaccines respectively and ramping up production capacity.

At this time no “shelter in place” order has been issued by the Federal Government, the state of Iowa, or local city or county. However, IowaBio has sent a formal letter to the Governor’s office with language exempting biotechnology companies from any potential shelter in place order the administration may issue. The language provided would exclude biotechnology and pharmaceutical companies and the supply chain from any potential shelter-in-place order, to ensure the critical work provided by these and other IowaBio member companies can continue.

Action Items

  • If your company is helping respond to COVID-19, IowaBio wants to know about it. Please, send any information about what your biotechnology company or organization is doing to help, to Jessica Hyland at Jessica@iowabio.org.
     
  • If IowaBio can assist you in getting information out, connecting with public officials, or support your company in another way, please do not hesitate to reach out.
  • Please, also consider responding by March 23 to this Iowa Economic Development Authority survey gathering the impact of COVID-19 on businesses and organizations. Here is a direct link to the survey. The data collected in the survey will be instrumental in gathering information so that the Governor, legislature and IEDA can plan an effective, comprehensive and appropriate response from the State. The survey is open through Monday, March 23.
     
  • In addition, the Iowa Department of Public Health has called for companies who have extra personal protective equipment to donate these supplies to health care facilities. Any type of health care PPE will be welcomed, especially gloves, gowns, eye protection, and masks. Local public health and local emergency management officials can work to address needs locally and beyond. 
To donate PPE, please contact your county public health department or local emergency manager.  Local health department contact information can be found at https://idph.iowa.gov/lphs/local-public-health-agencies, county emergency management agency information can be found at https://www.homelandsecurity.iowa.gov/documents/county/COORD_Public_List.pdf

Please, let Jessica know if you need assistance with this.

Federal Update

Late on Wednesday night, the President signed the  Families First Coronavirus Response Act. The House previously passed the bill (and then a correcting resolution), which is the second COVID-19 supplemental appropriations package. View the bill summary here. The bill contains two types of mandatory sick and family leave with tax credits to help pay for them:

Emergency Sick Leave--Employers with fewer than 500 employees are required to provide employees with paid sick time off to:
  • Self-quarantine or to seek a diagnosis or preventative care for coronavirus;
  • Provide care for a family member who is in quarantine or seeking a diagnosis or preventative care; or
  • Provide care for a child whose school or childcare arrangements are unavailable due to coronavirus.
Full-time employees are entitled to 2 weeks (80 hours) of such leave, and part-time employees are entitled to the average number of hours that they work in a two-week period.

Employers must provide full pay for employees caring for themselves (up to $511 per day/ $5,110 total) and two-thirds pay for employees caring for family members (up to $200 per day and $2,000 total).

Employers with similar existing paid leave policies are required to provide workers with the emergency paid sick leave as well. An employer may not require a worker to use other available paid leave before using this emergency paid sick leave.

Extension of Family and Medical Leave Act--Employees of employers with fewer than 500 employees, who have been on the job for at least 30 days, are provided the right to take up to 12 weeks of job-protected leave under the Family and Medical Leave Act to be used to care for a child whose school or childcare arrangements are unavailable due to coronavirus.

After 10 days of leave (unpaid under this provision, but can be covered by the emergency sick leave), employers must provide paid leave that is at least two-thirds of the employee’s usual pay, but not to exceed $200 per day per employee and $10,000 in the aggregate.

Employer Tax Credits--The legislation provides payroll tax credits for employers to offset the cost of these required leave programs:
  • Credits taken against the employer’s share of the payroll tax (Social Security tax), and thus would be available even for companies without an income tax liability.
  • Credits are refundable, so in the event the amount of wages exceeds a company’s payroll tax liability, the excess will be refunded to the company.
  • Both of these credits are available through the end of 2020.
  • Credit for wages paid pursuant to the emergency sick leave provision are limited to:
    • $511 per employee per day for wages paid while an employee is caring for him- or herself;
    • $200 per day for care of a family member; and
    • Up to an aggregate of 10 days.
  • Credit for wages paid under the Family and Medical Leave provision for each employee is limited to $200 per day or a total of $10,000.
 There are currently multiple proposals floating around for a third supplemental, which will be Senate-driven. Senate Minority Leader Chuck Schumer released details of a $750 billion proposal, Treasury Sec. Steven Mnuchin has offered ideas for a $1.2 trillion package, and Senate Republicans have put together a bill that would cost around $850 billion.

Additional Federal Action
  • The FDA issued a guidance for industry, investigators, and institutional review boards conducting clinical trials during the coronavirus (COVID-19) pandemic.
  • President Trump announced that he will invoke the Defense Production Act (DPA), which would allow the Administration to mobilize American industry to manufacture medical supplies, such as masks, gloves, and other PPE, that are in short supply.
  • Yesterday, the Federal Communications Commission (FCC) granted U.S. Cellular special temporary authority to use more airwaves to help meet increased consumer demand for broadband during the pandemic.
  • The Department of Education announced today that college accreditors conduct college oversight reviews over the phone or via video call in order to limit nonessential travel in light of recent college closures and suspensions.
    • The visits must be followed up by an in-person review at a “reasonable” time, and accreditors have the option to extend recognition for a college currently undergoing renewal of accreditation.
    • Colleges also received broad approval from Education Secretary Betsey DeVos to move to online instruction, and K-12 schools may be able to seek a one year waiver from federal testing requirements.
  • The Office of Management and Budget sent a letter to Congress outlining additional funding needs for FY20 and FY21 for the COVID-19 response. 
  • Reps. Ben McAdams (D-UT) and Mario Diaz-Balart (R-FL) have both tested positive for COVID-19.
  • HUD Secretary Ben Carson authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single-family homeowners with FHA-insured mortgages for the next 60 days. 
  • For the next in its FAQ series, CMS released updates to their Frequently Asked Questions (FAQs) for State Medicaid and Children’s Health Insurance Program (CHIP) Agencies.
  • CMS has released recommendations on adult elective surgeries and non-essential medical, surgical, and dental procedures.
View Bill Tracker Report
Please contact me directly with any questions and I would be happy to assist.

Sincerely,
Jessica

Jessica Hyland, J.D.
Executive Director
Iowa Biotechnology Association
Cell: (515) 822-1315
Office: (515) 327-9156
Fax: (515) 327-1407
jessica@iowabio.org
www.iowabio.org
Copyright © 2020 Iowa Biotechnology Association, All rights reserved.


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