March 4, 2025

This Week at the Capitol

• Iowa’s DOGE Task Force held its kickoff meeting.
  

  • Click here and here to read more about the Iowa DOGE Task Force.

• ‘Hands-Free Driving’ signed into law.

• Cedar Rapids Rep. Sami Scheetz resigned from the Iowa Legislature after being appointed to the Linn County Board of Supervisors.

League's Priority Legislation

• SSB 1208 & HSB 313 | Property Tax System Overhaul 

  • Legislators have recognized the shift to residential property taxpayers and we expect an updated draft of the bill in the next week or so.
    

    • TIF, while being acknowledged by legislators as needing addressed, has been a point of contention with some lawmakers who remain committed to relief for taxpayers above maintaining the current property tax “status quo.”
      

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

  • On Monday, April 7, the Iowa League of Cities will provide a financial impact analysis model to help members understand how the proposed legislation (HSB 313 / SSB 1208) will impact your city when compared to the current property tax system (HF 718 / SF 2442). 
    

When available, please run the model as soon as possible. It’s crucial that we present these findings and build a broader picture of the impact across Iowa.

• SF 588 & HF 651 | Public Notice Alignment 

  • After unanimous passage through the Senate, SF 588 is eligible for floor debate in the House. 

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

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.

• 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 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.
    

Legislation That Advanced

HF 617 | Enhancement of Low and Moderate Income Housing Assistance in Urban Renewal Areas

• Passed through the House Ways and Means Subcommittee this week.
  

• Modifies provisions related to public improvements for housing and residential development in urban renewal areas, increasing the required assistance for low and moderate income family housing from 10% to 20% of project costs and extending the revenue division period from 10 to 20 fiscal years for certain projects. The bill takes effect immediately and applies to projects approved after its enactment.

  • This bill was proposed by the City of Council Bluffs as a tool to increase a city’s ability to drive economic growth using TIF for redevelopment.

League Registered in Support

Lawmakers have asked the League to report back on which communities are interested in utilizing the new provisions outlined in this bill. Please let us know!

SSB 1214 | Enhancement of Low and Moderate Income Housing Assistance in Urban Renewal Areas + Amendment of Tax Increment Financing

• Passed through the Senate Ways and Means Subcommittee this week.

• The bill excludes school district foundation property taxes from the division of revenue for urban renewal projects. 

• For tax increment financing districts that are not limited in duration, the bill stipulates that after 20 years from the effective date of the bill or from the year the municipality first certifies qualifying loans or bonds, the amount of taxes that can be allocated to the municipality's special fund will be capped at 60% of the otherwise authorized amount, with any excess being distributed to the respective taxing districts.
  

• Modifies Iowa’s economic and urban renewal laws to include workforce housing in the definition of economic development, adjusts funding requirements for low and moderate income housing projects, and changes tax increment financing provisions for urban renewal areas.

League Registered Undecided

SF 594 | State Fire Study

• Passed the Senate 48-0. Advanced through the House Local Government Committee. 
  

• 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. The bill was amended on the Senate floor to only apply to the 4 most populous counties; the original bill was a statewide study.
  

HF 856 | DEI Initiative Prohibition

• Passed the House 61-37. Passed out of Senate Committee.

• Prohibits public entities and private educational institutions from engaging in diversity, equity, and inclusion (DEI) activities. By restricting funding and support for DEI offices and activities, the bill may lead to challenges in promoting diversity and equity within city governance and through community engagement efforts.

• Senate committee amendment → strikes division 3 from the bill.
  

SF 507 | Local Government DEI

• Already passed the Senate. Passed through the House Local Government Committee. Eligible for House floor debate. 

• Prohibits counties and cities in Iowa from establishing diversity, equity, and inclusion offices, hiring related personnel, or requiring diversity statements, while defining "diversity, equity, and inclusion" in a way that restricts various related initiatives. The bill aims to prevent any policies or practices that promote differential treatment based on race, gender identity, or sexual orientation, except as required by federal or state law.
  

HF 706 | Open Meetings Penalties

• Passed the House 95-0 and advanced through the Senate State Government Committee. Now eligible for floor debate. 

• Increases the range of damages for violations of the Open Meetings law ($500-$2,500 for violations and $5,000 to $12,500 for knowing violations). Requires a court to order the removal of a member of a board for open meetings violations, regardless of whether damages are assessed. Requires the members of a government body to take training in Open Meetings/Records laws within 90 days of assuming responsibilities. Requires the IPIB to develop such training. Makes a member subject to damages for not completing training.
  

HF 969 | Cancer Coverage for Firefighters and Police Officers

• Passed through the Senate State Government Committee, eligible for floor debate in the Senate. Previously passed the House floor 96-0.

• 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 595 | Construction Regulations

• Previously passed by the Senate. Passed through the House Local Government Committee. Eligible for House floor debate. 

• Amends regulations related to construction in Iowa, focusing on state building codes, contractor licensing, and stormwater management requirements. It prohibits local governments from imposing additional licensing fees on general contractors and restricts them from adopting more stringent stormwater management methods than those initially approved during subdivision reviews.
  

SF 579 | Local Civil Rights Commissions

• Previously passed the Senate. Passed by the House Local Government Committee; eligible for House floor debate. 

• Requires that any complaint about a local government or state agency that is filed with a local Civil Rights Commission must be directed to the Office of Civil Rights. Allows complaints by the local commission to be referred to the state office. Sets timelines for filing and resolving complaints and includes provisions on other related matters. Makes the term of a local commissioner two years.
  

SF 574 | Public Improve Contract Retainage Fees

• Previously passed the Senate. Passed through House Ways and Means Committee; eligible for House floor debate. 
  

• Reduces the amount of retained payments from a contractor for the construction of public projects 5% to 3%.
  

HF 316 | Childcare Facility Property Taxes

• Advanced through the House Ways and Means Committee. 

• Limits the property tax assessments for commercial childcare facilities to assessments similar to residential properties. 
  

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

• Previously passed the House Advanced through the Senate Commerce Committee. 

• 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.
  

SF 619 | Governor’s Natural Hazard Mitigation and Disaster Recovery Programs Plan

• Advanced through the Senate Appropriations Committee.
  

• Outlines various provisions related to disaster recovery, including the establishment of a natural hazard mitigation financing program, regulations for post-loss assignment of benefits by residential contractors, and the licensing and regulation of adjusters, appraisers, and umpires. It also includes measures for financial assistance to homeowners and renters affected by disasters, as well as penalties for violations of these regulations.
  

SF 585 | Governor’s Energy Reform Package

• Advanced through the Senate Appropriations subcommittee.

• Introduces new regulations that may impact city governments by modifying ratemaking principles for electric power generation and energy storage, which could affect local utility costs and service reliability. The bill also establishes land restoration standards for electric transmission lines and expands the energy infrastructure revolving loan program to include funding for water infrastructure projects, providing cities with opportunities to enhance their energy and water systems while promoting sustainable development.
  

Newly Introduced Legislation of Interest

HSB 325 | Joint Taxing Authority for Governmental Units

• Introduces a framework for two or more governmental units in Iowa to enter into joint agreements to combine their services related to levying and collecting taxes, as well as assessing property values. The bill defines 'governmental unit' to include counties, cities, school districts, and townships, thereby broadening the scope of entities that can collaborate. This legislative change aims to enhance operational efficiency and reduce costs associated with tax administration. By allowing these units to work together, the bill seeks to streamline processes and improve service delivery to the public. The provisions are set forth under Code chapter 28E, which governs intergovernmental cooperation.
  

Legislation with Scheduled Subcommittees

SF 96 | Property Tax Abatement for Volunteer Emergency Services Providers

• Enables volunteer emergency services providers who meet specific criteria, including a minimum of five years of service and an annual income of less than $5,000, to file a petition for property tax abatement. The petition must be submitted by October 31 for the upcoming fiscal year, and it requires certification of good standing from the provider's agency. If approved, the abatement can cover up to 10% of property taxes, not exceeding $500, and may extend for the provider's lifetime if they have served for ten or more years. The legislation applies to taxes due from July 1, 2026, onward.

• Subcommittee scheduled for April 7 at 12:30 p.m. Join meeting here.

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).