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April 7, 2025 Legislative Update

Legislative Update 2025

Neither the House nor the Senate held floor debate last week. Policy committees met and advanced legislation from the opposite chamber prior to the second funnel deadline. Legislation that failed to advance out of a policy committee in the opposite chamber from which it originated is no longer eligible for consideration this session. Bills in either the Ways and Means or Appropriations committees or bills placed on the unfinished business calendar are exempt from this deadline.

On Tuesday, Representative Sami Scheetz, a Democrat representing District 78, resigned from the Iowa House of Representatives after being appointed to fill a vacancy on the Linn County Board of Supervisors. House District 78 represents downtown Cedar Rapids, Governor Reynolds must call a special election to fill the seat “at the earliest practical time, giving at least 18 days’ notice of the special election” according to Iowa law.

On Wednesday, President Trump announced a 10% tariff on all imports. Republican leaders in the House and Senate shared that they would be conservative in setting the Fiscal Year 26 budget to ensure the state can withstand any financial uncertainty. The Revenue Estimating Conference projected Iowa will take in $8.91 billion in the upcoming fiscal year, roughly $400 million less than the current fiscal year spending. Currently, Iowa has approximately $6 billion combined in the budget surplus, Taxpayer Relief Fund, and reserve funds.

 

Iowa DOGE Taskforce

 

Wednesday also marked the first meeting of the Iowa DOGE Task Force. Governor Reynolds announced during the Condition of the State in January that she would be creating a task force to review the government reorganization completed in 2024 and find ways to further reduce government spending. In February, Governor Reynolds signed an executive order creating the task force with 16 members comprised of business leaders and Republican officials. Senator Dan Dawson and Representative Hans Wilz sit on the task force as non-voting members.

“I was honored to speak today at the first meeting of our Iowa DOGE Task Force,” Gov. Reynolds said. “This task force is yet another opportunity to apply Iowa's proven formula of asking tough questions and making bold, transformative changes. I couldn’t have more confidence in the talented members of this group, under Emily Schmitt’s leadership, to build on our strong foundation and chart the course for more efficient government at all levels for Iowans.”

Members of the Iowa DOGE Task Force are as follows:

  • Emily Schmitt, Sukup Manufacturing Co.
  • Nick Bowdish, Elite Octane
  • Brianne Schulte, Vermeer
  • Adam Keune, University of Iowa Pappajohn Entrepreneurial Center
  • Craig Dozark, Crawford County Board of Supervisors
  • ReNae Arnold, Dallas County Recorder
  • Terry Lutz, McClure Engineering
  • Beth Tinsman, Twin State Technical Services
  • Kathy Kay, Principal Financial Group
  • Ryan Schaap, Well Enterprises
  • Dave Mulcahy, MABSCO Investments
  • David Spalding, Iowa State University College of Business
  • Reynolds Cramer, Fareway
  • Joe Murphy, Iowa Business Council
  • Hans Wilz (ex-Officio Member), Iowa House of Representatives
  • Dan Dawson (ex-Officio Member), Iowa Senate

Click here for more about the Iowa DOGE Task Force.

Hands-Free Legislation

On Wednesday, Governor Reynolds signed Senate File 22 during a ceremony at the Iowa Capitol. SF 22 prohibits the use of cellphones or other electronic devices while driving unless the device is in a hands-free or voice-activated mode. There are 30 other states with similar legislation in place. During the Condition of the State Address, Governor Reynolds encouraged the Legislature to send her a bill this session to address cell phone use and distracted driving. Current law prohibits texting while driving, however, law enforcement has advocated for a number of years to expand the law to prohibit any cell phone use, arguing the current law was too hard to enforce.

SF 22 includes penalties for distracted driving, increasing the fine from $45 to $100. An individual who causes serious injury will be subject to a $500 fine and possible license suspension, while an individual causing the death of another will be subject to a $1,000 fine. The law includes exemptions for public safety officials, healthcare workers responding to an emergency, utility workers, public transit workers, and individuals operating farm equipment for livestock. The legislation takes effect July 1.

 

Other Bills of Interest

House File 889 provides paid maternity leave of up to four weeks and paid paternal leave of one week after the birth of a child for state employees. The bill provides up to four weeks of paid parental leave for adoption. The House previously approved the bill with a 87-2 vote on March 20th, and the bill advanced out of the Senate Workforce Committee this week to survive the second funnel deadline.

House File 639 was adopted by the House on March 26 regulating carbon capture pipelines and the use of eminent domain. On Wednesday, the Senate Commerce Committee amended the bill to include restrictions on other types of utility pipelines and allows for voluntary easements to avoid eminent domain. The committee advanced the bill before the second funnel deadline but House Republicans expressed frustrations with the amended language, arguing it stripped the bill of necessary regulations on carbon capture pipelines.

House File 617 expands the allowable uses for tax increment financing for large scale green field housing projects and positive changes for low and moderate-income housing assistance projects. The bill advanced out of the House Ways and Means subcommittee meeting on Thursday.

Senate Study Bill 1214 expands the allowable uses for tax increment financing for large scale green field housing projects and positive changes for low and moderate-income housing assistance projects. In addition to the changes to housing, the bill also places restrictions on full increment usage in perpetual TIF districts and excludes the school district foundation property tax from TIF districts. The bill advanced out of a Senate Ways and Means subcommittee meeting on Wednesday.

This week: Floor debate will resume this week as committee work shifts to focus on tax and appropriation issues, as well as various budget bills introduced by the Governor, encouraging the House and Senate to begin budget negotiations.

Chris LaFerla

President & CEO

Council Bluffs Chamber of Commerce

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