February 21, 2025

This Week at the Capitol

The legislative funnel deadline is just two weeks away, which means the pace at the statehouse has quickened. The Government Affairs team has added almost 40 bills to the bill tracker and legislators are rapidly scheduling meetings to discuss these proposals. Some attention grabbing headlines this week included advancing the Governor's energy package and a bill to repeal and replace the Natural Resources and Outdoor Recreation Trust Fund (IWILL).

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!

• “FYI” Bills

  • These bills may have indirect effects on your community, but are not the primary focus of the League at this time. We want you to be able to elevate issues in this category to us in case they need to be monitored more closely.

Legislation With Scheduled Subcommittees

SSB1150 | Iowa Bill to Restrict Diversity, Equity, and Inclusion Programs in Local Governments

• Prohibits cities from establishing or maintaining diversity, equity, and inclusion offices, hiring employees or contractors for such roles, and requiring diversity statements from individuals.
  

• Subcommittee scheduled for Feb. 24 at noon.

HF415 | Amendments to County and City Regulation of Real Property

• Allows city boards of adjustment to grant variances from zoning ordinances regarding area, dimensional, or numerical limitations when property owners demonstrate unique practical difficulties and that such variances will not significantly alter the character of the surrounding neighborhood.

• Subcommittee scheduled for Feb. 24 at 12:30 p.m.
  

SSB1157 | Iowa Gambling and Tourism Enhancement Act

• Increases tax rate on sports wagering from 6.75% to 9%.
  

  • Redirects funds for state public safety equipment.
    

• Establishes state financial assistance program for entities that bring large events with significant economic impact to Iowa.

• Subcommittee scheduled for Feb. 24 at 2 p.m.

SSB1168 | Amendments to Guaranteed Maximum Price Contracts for Public Improvements

• Allows government entities to use guaranteed maximum price contracts for public construction projects only if the estimated cost exceeds $150 million. It requires that proposals from construction managers include specific costs without contingencies and mandates that the lowest cost proposal be selected instead of the best value. Additionally, it establishes rules for bidding and contract awards related to trade work and materials.

• Subcommittee scheduled for Feb. 24 at 3 p.m.
  

SF235 | Repeal of Obscenity Exemptions for Libraries and Educational Institutions

• Repeals a section of Iowa law that currently allows public libraries and educational institutions to use certain materials that might be considered obscene for educational purposes. It means that these institutions would no longer have specific legal protections, opening up libraries to litigation with associated legal costs falling to cities. 

• Subcommittee scheduled for Feb. 25 at 10 a.m.

SSB1056 | Fiduciary Voting Responsibilities and Economic Analysis for Pension Plans

• Requires fiduciaries managing public pension plans to vote on shareholder proposals solely in the best economic interest of the plan's participants and beneficiaries, avoiding any influence from environmental or social goals unless they can prove it benefits the participants financially.

• Subcommittee scheduled for Feb. 25 at 12:30 p.m.
  

SSB1073 | Amendments to Emergency Services Compensation and City Council Roles

• Allows for nominal stipends and benefits to be received by volunteer firefighters and EMS providers who hold public office provided there is no conflict with other public offices. Also allows for a city council member to serve as chief of a volunteer fire department upon a majority vote of the rest of the city council.

• Companion to HF297 which passed Local Government Committee Feb. 10.
  

• Senate subcommittee scheduled for Feb. 25 at 1 p.m.

HSB193 | Elimination of Population Threshold for Regional Transit Districts in Iowa

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

• Subcommittee scheduled for Feb. 26 at 8 a.m.
  

HSB162 | Regulation of Accessory Dwelling Units in Iowa

• Sets specific rules to prevent local governments from imposing overly strict regulations on the size, appearance, or use of accessory dwelling units.

• Subcommittee scheduled for Feb. 26 at 12:30 p.m.
  

HSB198 | Iowa Statewide Interoperable Communications System Access Bill

• This bill streamlines the process for public entities and certain organizations to access Iowa's statewide communications system by requiring the governing board to handle applications directly.

• Subcommittee scheduled for Feb. 26 at 12:30 p.m.
  

New Legislation Of Interest

SSB1140 | “Stormwater 2.0”

• Establishes a maximum annual increase of 2% for storm water drainage system service rates charged by governmental entities, while also providing exemptions from charges for properties with significant standing water or compliant retention ponds. Additionally, voter approval is required for any rate increases exceeding the established limits.
  

HF418 | Property Tax System Reform Bill

• Modifies property tax regulations in Iowa by establishing a limitation on the actual value of residential properties for assessment purposes, implementing a gradual increase in assessment limitations for residential properties until they reach 100% by 2034, and adjusting property tax levy rates in relation to these changes. The bill aims to provide more predictable property tax assessments and reduce fluctuations in property tax rates.

• This is not THE property tax bill, but it does contain themes we have heard legislators are interested in pursuing.
  

HSB187 | Local Law Enforcement Participation with ICE

• Requires law enforcement agencies to enter into written agreements with U.S. ICE by January 1, 2026, to participate in federal immigration programs under section 287(g) of the Immigration and Nationality Act.

• Advanced through House subcommittee on Feb. 20.
  

HSB188 | Legislative Access to Confidential Records

• Requires government bodies to provide confidential records to members, agencies, or committees of the general assembly for legislative purposes, while allowing for confidentiality agreements and establishing procedures for determining the confidentiality of such records.

SJR6 | Repeal of Iowa's Natural Resources Trust Fund (IWILL)

• Proposes an amendment to the Iowa Constitution to repeal the natural resources and outdoor recreation trust fund and establish a property tax relief trust fund funded by a portion of increased sales and use tax revenue.

• Advanced through Senate subcommittee Feb. 19.
  

SF161 | “Freedom to Garden”

• Prohibits state agencies and local governments from regulating residential gardens on privately owned or leased properties, while outlining specific exceptions and conditions under which such regulations may still apply.

• Subcommittee recommended passage Feb. 19.

HF444 | Introduces a New Classification of Property Known as “Recreational Property” Specifically for Commercial Golf Courses

• Properties will be assessed at 75% of their actual value to promote financial sustainability.

• Provides that solar energy systems constructed on golf courses will not increase their taxable value for 5 years.

SF348 | Exemption of Non-Permanently Anchored Structures from Property Assessments

• This bill states that structures not permanently anchored to a foundation will not be taxed as real property, and it takes effect immediately, applying to property assessments starting January 1, 2025.

SSB1151 | Amendment to Contractor Bond Requirements

• Prohibits local governments from imposing any additional bonds than what is laid out in Iowa Code.
  

HSB205 | Cancellation of Tax Sale Certificates by Local Governments

• Cities will have to pay an additional 2% over the face value should they decide to cancel a tax sale certificate.
  

• Companion to SF28.
  

HSB204 | Amendment to City Utility Approval Processes

• This bill allows city councils to approve or change city utility franchises and proposals without needing voter approval, streamlining the process to a public hearing and council resolution instead.
  

• Senate Companion (SSB1115) advanced through subcommittee Feb. 20.
  

HF483 | Iowa Public Building Design and State Architects Act

• Establishes the position of a state architect in Iowa, requiring a certificate of need for the construction of applicable public buildings, and outlines policies for architectural design to ensure that such buildings reflect the dignity and heritage of the state.

SSB1159 & HSB208 | Urban Renewal Limitations for Gaming Properties

• Prohibits urban renewal plans from including properties operated by new gambling licensees issued after January 1, 2025, establishes minimum assessment values for such properties, and excludes them from tax increment financing, taking effect immediately with certain provisions applicable to property taxes due after July 1, 2025.
  

• Senate bill advanced through subcommittee Feb. 20.
  

HF451 | Contracts with Speech Censoring Companies

• Prohibits the state and political subdivisions from contracting with or providing tax incentives to companies that censor online content, establishes enforcement mechanisms, and outlines penalties for violations, while allowing citizens and governmental entities to report and intervene in related actions.
  

SF333 | Prohibits Banning the Use of Golf Carts on City Streets

• This bill allows people with a valid driver's license to operate golf carts on city streets and prevents local authorities from banning this practice, while still requiring safety measures and restrictions.

Legislation For Your Information

SF362 & HSB201 | Amends Officer/Emergency Personnel Rights and Investigative Procedures

• Makes changes to administrative investigations and disciplinary processes for law enforcement and emergency personnel, ensuring officers receive timely access to investigative materials, establishing rights regarding Brady-Giglio lists, and enhancing confidentiality for peer support communications.
  

SSB1132 | Amending Constitution to Affirm Hunting and Fishing Rights

• Similar to HJR1 & HJR7.

SF354 | Iowa-Minnnesota Land Purchase Negotiation Act

• Subcommittee scheduled for Feb. 25 at 3 p.m.
  

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).