February 28, 2025

This Week at the Capitol

• Lawmakers sent a bill to the Governor’s desk removing gender identity from the Civil Rights Act.
  

League's Priority Legislation

• Public Notice Alignment SSB 1116 & HSB 154

  • House bill has passed full committee and makes this initiative funnel-proof.
    

    • We are hopeful the Senate bill will pass full committee this week.

• Sidewalk Liability SSB 1118 & HF 192

  • House bill has passed its subcommittee but needs to pass the full committee this week to make this initiative funnel-proof. We are working with the Judiciary Chair, Rep. Holt to get it on the Judiciary Committee schedule this week.

  • Senate bill needs to pass both subcommittee and full committee this week to be funnel-proof.

How to Read Legislative Link

• Includes all bills that have been identified by the Government Affairs team as potentially affecting cities. Bills are organized as follows:
• 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 Bills 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 With Scheduled Subcommittees

HF 563 | Property Tax Assessment Standards

• Establishes new property assessment standards requiring adherence to guidelines from the International Association of Assessing Officers, including specific measures for equity in property valuations and outlines procedures for property assessment appeals and litigation representation.

• State Government Committee on March 3 at 11:45 a.m.
  

HSB 205 | Tax Sales

• Requires that if a city or county cancels the sale of property containing an abandoned building to a tax sale certificate holder, the county treasurer must refund the purchase money along with 2% monthly interest on the total amount due.

• Local Government Committee on March 3 at 12:30 p.m.
  

HSB 214 | Prohibition of Regulations on Fuel-Powered Equipment

• This bill prevents state and local governments in Iowa from making rules that restrict or prohibit the use of fuel-powered equipment based on the type of fuel it uses, such as gasoline or diesel.

• Natural Resources Committee on March 3 at 12:30 p.m.
  

SF 362 | First Responder Personnel Investigative Rights/Procedures

• Updates rules regarding investigations and disciplinary actions for law enforcement and emergency personnel, ensuring they receive timely access to investigation reports and witness statements. Also establishes protections for confidential communications with peer support counselors and clarifies the rights of officers placed on a Brady-Giglio list. Additionally, it allows for appeals to the district court regarding disciplinary decisions.

• Judiciary Committee on March 3 at 4 p.m.
  

SSB 1176 | Election Recounts

• Modifies the procedures for conducting election recounts in Iowa, including changes to the composition of recount boards based on county population, establishes penalties for improper recount requests, and allows for administrative audits of election results.

• State Government Committee on March 3 at 3:30 p.m.
  

HSB 247 | Proof of Publication

• Amends the definition of "proof of publication" for public notices, allowing newspapers to charge for additional elements while ensuring such proofs are admissible as evidence.

• State Government Committee on March 4 at noon.
  

SSB 1188 | Governor’s Hazard Mitigation

• Establishes regulations for the licensing and regulation of appraisers, umpires, and adjusters, outlines penalties for violations, and creates funding mechanisms for disaster recovery and hazard mitigation programs.

• Local Government Committee on March 4 at noon.
  

HSB 221 | Grayfields & Redevelopment Tax Credits

• Proposes comprehensive changes to the Iowa Economic Development Authority and Iowa Finance Authority, including the elimination of certain programs and councils, the establishment of new funds and tax credit processes, and modifications to existing requirements related to infrastructure, redevelopment, tourism, historic preservation, homelessness, title guarantee, and arts and culture initiatives.

• Ways and Means Committee on March 5 at 8:30 a.m.
  

New Legislation Of Interest

SSB 1190 | Solid Waste Rate Caps

• Establishes a maximum annual rate increase for solid waste collection and disposal services by governmental entities, limits increases to 2% or the consumer price index, and introduces a property tax rebate for property owners who opt out of these services.
  

HSB 274 | Rural Development Tax Credits

• Establishes the Iowa Rural Development Tax Credit Program, which provides tax credits for capital contributions to certified rural business growth funds that invest in qualified businesses, with specific eligibility criteria and application processes outlined for both the funds and their investors.
  

HSB 272 | Removal of EMS Funds from TIF

• Modifies the emergency medical services trust fund by excluding related property taxes from urban renewal revenue divisions and clarifying that fund expenditures must directly support emergency medical services without violating laws or servicing debt, with changes applicable to fiscal years starting July 1, 2026.
  

HSB 271 | Disaster Area Homestead Tax Credits

• 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.

HSB 270 | Historic Tax Credit Preservation

• Amends the historic preservation tax credit provisions to extend the preservation of existing rights for tax credits issued, awarded, or allowed until July 1, 2023, ensuring that taxpayers can still claim or redeem these credits without adverse effects from recent changes.

HF 617 | Low-Income Urban Renewal Provisions

• Modifies urban renewal provisions to require that at least 20% of project costs in certain economic development areas be allocated for low and moderate income family housing, extends tax revenue divisions to 20 years, and updates terminology related to income classifications.
  

SF 431 | Public Improvement Contract Fees

• Modifies the retention of fees for public improvement contracts by allowing contractors to receive retention funds upon filing a surety bond for claims, establishing timelines for payment and interest accrual, and ensuring attorney fees are awarded to prevailing parties in disputes.

HF 600 | Property Tax Levy Rate Limitations

• Establishes limitations on property tax levy rates for local governments, capping them at 102% of the average rate over the previous five years starting July 1, 2026, and allowing for temporary increases through a 60% voter approval in elections.

HSB 246 & SSB 1188 | Governor’s Hazard Mitigation

• Establishes regulations for the licensing and penalties of appraisers, umpires, and adjusters, creates disaster recovery programs, and outlines financial assistance for homeowners and renters affected by natural disasters in Iowa.

HF 493 | Railroad Constructions Requirements

• Requires the Iowa Department of Transportation to erect and maintain a traffic-control signal at a specific intersection in Hull and mandates the construction of an overpass over railway tracks in Merrill, while allowing cities to require railway companies to build overpasses or underpasses on nonprimary highways within city limits, subject to certain conditions.
  

HF 564 | Public Improvement Contracting Procedures

• Allows governmental entities in Iowa to reject the lowest responsive bidders for public improvement contracts based on experience and financial capability, mandates specific requirements for guaranteed maximum price contracts, and establishes conditions for bid proposals and evaluations.

HF 565 | Property Tax Exemption for Disaster Housing

• 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.

SSB 1184 | Civil-Rights Commission Referral Procedures

• Requires complaints involving political subdivisions filed with local civil rights commissions or agencies be referred to the Iowa office of civil rights, allows for transfer of unresolved complaints after twelve months, and establishes a two-year term for commissioners.

SSB 1181 | Prohibition of Franchise Fees

• Prohibits cities and counties in Iowa from assessing or collecting franchise fees starting July 1, 2025. This change eliminates the current ability of local governments to charge fees based on a percentage of gross revenues from franchisees providing essential services.
  

SSB 1182 (Companion to HSB 162) | Accessory Dwelling Units

• Requires cities and counties to adopt regulations allowing at least one accessory dwelling unit (ADU) on the same lot as a single-family residence, while prohibiting overly restrictive limitations on size, appearance, occupancy, and utility requirements. The bill aims to streamline the approval process for ADUs and ensure consistency in regulations across different types of residential properties.
  

SSB 1180 | Amendments to Property Assessment for Development Properties

• Amends property assessment regulations to ensure that development property acquired or improved after January 1, 2020, is assessed based on its prior classification until certain conditions are met, while also repealing an existing code section and establishing effective and retroactive applicability dates.

SSB 1183 (Companion to HSB 193) | Elimination of Population Threshold for Regional Transit Districts

• Removes the population threshold of 175,000 for counties to create a regional transit district with participating cities.

SSB 1185 | Amendments to County and City Regulation of Real Property

• Allows county and city boards of adjustment to grant variances from zoning ordinances regarding area, dimensional, or numerical limitations when unique practical difficulties arise for property owners, provided that such variances do not harm the public interest or alter the character of the surrounding neighborhood.

HF 596 | Election Recount and Contest Procedures

• Modifies the procedures for recounting and contesting elections in Iowa, including changes to deadlines, bond requirements, and the composition of recount boards and contest courts, while also imposing penalties for noncompliance with election laws.
  

HSB 266 (Companion to SF 272) | Cancer Presumption

• Requires public employers to provide cancer screening examinations for full-time fire fighters, police officers, and emergency medical services providers, with state reimbursement for costs, while expanding the definition of "cancer" for retirement and disability benefits.
  

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).