April 11, 2025

This Week at the Capitol

Friday morning, Governor Reynolds released a video announcing she will not seek reelection in 2026. Reynolds became Governor in 2017 after Terry Branstad stepped down to serve as the US Ambassador to China. Governor Reynolds won reelection in 2018 and 2022.
After weeks of negotiation, the House and Senate agreed to K-12 school funding, sending the legislation to Governor Reynolds.

League's Priority Legislation

HSB 328 / SSB 1227 | Property Tax System Overhaul
- Updated versions of the property tax overhaul were filed by Ways and Means Chairs this week. Read more about initial reactions from the League here.
- An overview of unofficial analysis from the League on the bill is here.
- The Legislative Team is preparing talking points based on results from cities modeling the updated bills. This will be for local officials to utilize in their conversations with legislators in their home districts.

SF 588 | Public Notice Alignment – to the Governor!
- After unanimous passage through the Senate, SF 588 was passed by the House this week! Congratulations and thank you to all who advocated for this legislation!

Bill Tracker

For a full list of bills being monitored by the League please review this document.
Bills in the table highlighted in gold are sponsored by the Chairs of the House or Senate Ways & Means Committees. Bills highlighted in red failed to advance far enough to remain alive in their current form. Red "funneled" bills would need to be amended onto a live bill to be revived this session. Bills highlighted in Green have passed both chambers and are headed to the Governor’s desk.

Legislation that Advanced

HF 969 | Cancer Coverage for Firefighters and Police Officers

Returns to the House.
After unanimous passage through the House, the Senate unanimously passed the bill this week. The Senate amended the bill to increase the PORS member rate to 11.475%, so will return to the House for approval.
Expands the definition of 'cancer' to include all forms of cancer rather than the 14 cancers that were previously required to be covered. Additionally, the bill increases the applicable employee contribution percentage for special service members by 0.125% annually, decreases the applicable employer contribution percentage for special service members by 0.125% annually, and adjusts the member's contribution rate to 9.675% starting July 1, 2025, with a maximum cap of 11.475%.

SF 592 | Accessory Dwelling Units (ADUs)

To the Governor.

Requires cities and counties to adopt ordinances to allow at least one accessory dwelling unit to be built next to a single-family home. Limits the size of the ADU to 1,000 square feet, or half the size of the main residence, whichever is larger. Allows the restriction of such units in historic areas and common-interest communities. Requires a manufactured home to be put on a permanent foundation. Includes other limits on regulations by cities and counties.

HF 860 | Prohibition of State and Local Regulations on Fuel-Powered Equipment

To the Governor.

After previous passage in the House, the bill passed the Senate this week.
Prohibits state agencies and local governments from adopting or enforcing regulations that prohibit the use of fuel-powered equipment due to the source of the fuel or that require a seller of such equipment to sell off the inventory.

HF 844 | Public Fund Investments

To the Governor.
Strikes a provision that prohibits public funds from being deposited in a financial institution that does not show a commitment to service the local community.

SF 303 | Fireworks Ordinances

Passed by the Senate.
Strikes the power of county supervisors or city councils to limit the use and display of consumer fireworks on July 3 and 4 or December 31.
Attached to the House version which allows for year-round sale of consumer fireworks from permanent structures while prohibiting local governments from restricting their use on July 3, 4, and December 31.

HF 28 | Land Redevelopment Trusts

Advanced through House Committee

Establishes the Iowa Land Redevelopment Trust Act, allowing municipalities to create land redevelopment trusts to rehabilitate dilapidated, abandoned, blighted, and tax-delinquent properties, facilitating their return to productive use while providing various powers, financing options, and tax sale procedures for these trusts.

HF 565 | Disaster Area Property Tax Exemptions

Advanced through the House Committee.

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.

HF 755 | Length of Service Award Programs for Emergency Responders

Advanced through the House Committee.

Establishes a length of service award program for volunteer firefighters, emergency medical care providers, and reserve peace officers in Iowa, funded by lottery revenues and administered through a grant fund to support municipalities that implement such programs.

HF 982 | Natural Hazard Mitigation Financing Program

Advanced through the House Committee.
Establishes regulations for the licensing and oversight of appraisers, umpires, and adjusters, introduces a natural hazard mitigation financing program, and outlines disaster recovery assistance measures, including penalties for violations and provisions for financial assistance to homeowners and renters affected by natural disasters.

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).