March 21, 2025

This Week at the Capitol

• The Iowa Senate voted to require 'hands-free' phone use while driving.

• The Iowa House passed Gov. Reynolds' bill to restrict cellphone use at school.
  

• The Iowa Senate passed a bill prohibiting ranked choice voting (RCV).
  

League's Priority Legislation

• SSB 1208 & HSB 313 | Property Tax System Overhaul 

  • Bill Sponsors have asked for feedback from the League and other stakeholders on amendments that fit within the current framework of the bill.

    • Conversations from the League, constituents, and other stakeholders confirm that legislators are open to amendments that function within the framework of the bill to improve its implementation.

    • Addressing existing TIF agreements throughout the proposed rollback phaseout period remains a focus of conversations. 

  • The League’s explanatory overview of the bill in its current form can be found here.

  • The League is in the final stages of development on a modeling tool for cities to use to understand the impacts of this legislation on communities. We will be sending the model out next week.

• SF 588 & HF 651 | Public Notice Alignment 

  • Both House and Senate bills passed full committees, making them funnel-proof.

    • League is working to maintain the bill’s form against proposed amendments that lengthen the minimum reporting period to 10 days from 4 days, which exacerbates the issue the bill is meant to address.
      

• SSB 1118 & HF 192 | Sidewalk Liability 

  • Disappointingly, both bills died in the legislative funnel. The Government Affairs team will elevate this issue with lawmakers for further discussion.

How to Read Legislative Link

With many bills failing to cross the legislative “funnel” deadline. The Legislature will begin to consider Ways & Means bills dealing with fiscal policy alongside other policy bills that remain alive. Legislative Link will change to reflect these designations with these bills.

• Legislation that Advanced 

  • These bills advanced in the legislative process this past week.

• Legislation with Scheduled Subcommittees
  

  • These bills will be heard in subcommittee next week. Please review for any impacts to your community for us to know as we attend and testify at these meetings. If you would like to testify yourself, we are happy to assist you. You can find the full list of scheduled subcommittees here.
    

• Newly Introduced Legislation of Interest

  • We expect these bills to have a direct influence on local government, but may not affect all communities the same. Let us know of impacts to your city!
    

Legislation that Advanced

SF 603 | Iowa Workforce Development and Unemployment Insurance Reform Act

• To the Governor. 

• Makes changes to DWD programs. Changes adult literacy programs to align the role of community colleges with federal law. Strikes giving employers credit for UE programs for wages paid in other states. Combines the STEM and TIP (targeted industry program) internship programs. 

• Amendment S-3030 by the House - Prohibits cities and counties from adopting requirements for apprenticeships, compensation or other requirements for contractors that are different from state law. Deems apprenticeship programs to be voluntary and not to be mandated.

• The House passed the bill as amended 64-34 (March 18).

• The Senate concurred and passed the bill as amended 32-15.
  

Feedback Needed

• S-3030 → Do you foresee an issue or negative financial impact on your operations with this amendment?
  

SF 594 | State Fire Study

• Passed Senate 48-0.

• Requires the State Fire Marshal, in consultation with stakeholders, to conduct a statewide study of fire protection services and consolidation, and requires a report by June 2026.
  

HF 856 | DEI Initiative Prohibition

• Passed House 61-37.

• A bill for an act prohibiting state entities from expending moneys to fund diversity, equity, and inclusion offices or to hire individuals to serve as diversity, equity, and inclusion officers, creating a private cause of action, and including effective date provisions. (Formerly HSB 155).
  

SF 75 | County Supervisors Representation and Vacancy

• To the Governor.

• Requires counties with the main campus of a state university to use Plan 3 (district) representation for supervisors. 

• Sets timelines for changes. 

• Vacancies: Requires vacancies in Plan 3 counties to be filled by special election and vacancies in other counties to be filled by appointment.

• Passed House 65-33. (previously passed by Senate 35-12).
  

SF 601 | City Utility Discontinuance Proposal Timeline

• Passed Senate 48-0.

• Shortens the timeline for an election on the decision of a city to discontinue a city utility to 30 days.
  

SF 311 | Civil Service Commissions

• Passed Senate 37-9. 

• Prohibits a city with a civil services commission from adopting a board of citizen review for police officers. Requires cities over 50,000 to have a commission with five to seven members. Changes the standards for dismissing a civil service employee and includes provisions on collecting attorney fees and costs for employees who substantially prevail.
  

HF 510 | City Council Vacancies

• Passed House 66-30.

• Allows a city council to file in court to void a petition to fill a vacancy in an elected city office. Requires the city to show that a special election would be unduly burdensome. Requires the court to rule in 10 days.
  

HF 652 | Local Regulation of Real Property and Variance Authority.

• Passed House 89-6.

• Allows city and county boards of adjustment to grant variances from zoning ordinances related to area, dimensional, or numerical limitations when strict enforcement would cause practical difficulties for property owners, provided the difficulties are unique to the property and do not alter the character of the surrounding neighborhood.
  

HF 895 | Regional Transit Districts

• The House passed the bill 91-5; it now goes to the Senate.

• Strikes the county population requirements for creating a regional transit district.
  

SF 609 | Property Tax Abatements

• Voted out of Senate Committee.

• Allows the surviving spouse of an EMS worker who dies in the line of duty to apply for a property tax abatement. Requires the spouse to submit a petition and authorizes the supervisors to order an abatement.
  

Legislation with Scheduled Subcommittees

HSB 316 | Property Tax Assessment Limits for Child Care Facilities

• Establishes assessment limitations for commercial child care facilities for property tax purposes, allowing these properties to be assessed at a reduced value starting from the assessment year 2025.
  

• Subcommittee scheduled for March 25 at 8:15 a.m. Link to Join.
  

HF 565 | Partial Property Tax Exemption for Residential Properties in Disaster Areas

• Establishes a partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development to homestead tax credit recipients in disaster areas, providing decreasing exemptions over four assessment years.
  

• Subcommittee scheduled for March 25 at noon. Link to Join.
  

Newly Introduced Legislation of Interest

SSB 1214 | Economic Development and Housing Enhancement

• Expands the definition of 'economic development' to include the provision of workforce housing.

• It introduces new policies that prioritize the development of workforce housing and modifies existing requirements for low and moderate income family housing. The bill allows municipalities to reduce the percentage of funding allocated for low and moderate income housing in certain projects, while extending the duration of tax revenue collection for urban renewal projects.
  

• Additionally, it clarifies the definition of low and moderate income families and excludes specific school district taxes from urban renewal financing.

HSB 320 | Establishment of Economic Property Assessed Capital Expenditure Programs (E-PACE)

• Allows local governments to create E-PACE programs, enabling owners of agricultural, commercial, industrial, or multifamily residential properties to secure long-term financing for improvements that enhance energy efficiency, water conservation, and overall sustainability. The legislation emphasizes the voluntary nature of participation and prohibits local governments from compelling property owners to enter into agreements.
  

You can view all editions of Legislative Link at iowaleague.org/resource/legislative-link.

Like our membership, the Iowa League of Cities is a non-partisan, service-oriented organization that does not participate in elections, make campaign contributions, or have a political action committee (PAC).