House File 1055 H-1361 Amend House File 1055 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 5 AUTHORITY 6 Section 1. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 7 2025-2026. Notwithstanding the standing appropriation in the 8 following designated section for the fiscal year beginning July 9 1, 2025, and ending June 30, 2026, the amount appropriated from 10 the general fund of the state pursuant to that section for the 11 following designated purpose shall not exceed the following 12 amount: 13 For payment of claims for nonpublic school pupil 14 transportation under section 285.2 : 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,997,091 16 If total approved claims for reimbursement for nonpublic 17 school pupil transportation exceed the amount appropriated in 18 accordance with this section, the department of education shall 19 prorate the amount of each approved claim. 20 Sec. 2. INSTRUCTIONAL SUPPORT STATE AID —— FY 2025-2026. In 21 lieu of the appropriation provided in section 257.20, 22 subsection 2, the appropriation for the fiscal year 23 beginning July 1, 2025, and ending June 30, 2026, for paying 24 instructional support state aid under section 257.20 for the 25 fiscal year is zero. 26 Sec. 3. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— FY 27 2025-2026. For the fiscal year beginning July 1, 2025, and 28 ending June 30, 2026, salary adjustments otherwise provided 29 may be funded as determined by the department of management, 30 subject to any applicable constitutional limitation, using 31 unappropriated moneys remaining in the commerce revolving 32 fund, the gaming enforcement revolving fund, the gaming 33 regulatory revolving fund, the primary road fund, the road 34 use tax fund, the fish and game protection fund, and the Iowa 35 -1- HF 1055.2153 (1) 91 ns/jh 1/ 23 #1.

public employees’ retirement fund, and in other departmental 1 revolving, trust, or special funds for which the general 2 assembly has not made an operating budget appropriation. 3 Sec. 4. IOWA ECONOMIC EMERGENCY FUND EXCESS —— USE FOR 4 FOUNDATION AID. Of the excess moneys transferred to the 5 general fund of the state under section 8.55, subsection 2, 6 paragraph “b”, for the fiscal year beginning July 1, 2024, 7 $21,881,303 shall be used in lieu of a like amount of other 8 general fund moneys to pay foundation aid under chapter 257, 9 as described in section 257.16, for the fiscal year beginning 10 July 1, 2025. This section is based on the application of 11 assessment limitations calculated under section 441.21 due to 12 the enactment of 2023 Iowa Acts, chapter 5. 13 Sec. 5. Section 257.35, subsection 2, Code 2025, is amended 14 to read as follows: 15 2. Notwithstanding the deduction and payment under 16 subsection 1, the The amounts specified for school districts 17 and area education agencies in subsection 1 , paragraph “a” 18 section 257.10, subsection 7 , for the fiscal year beginning 19 July 1, 2024 2025 , and each succeeding fiscal year, shall be 20 reduced by the department of management by seven million five 21 hundred thousand dollars. The department of management shall 22 calculate a state aid reduction such that such amounts shall 23 be reduced proportionally to the amount that the district or 24 agency would otherwise have received under this section if the 25 reduction imposed pursuant to this subsection did not apply 26 257.10, subsection 7 . 27 Sec. 6. Section 257.35, Code 2025, is amended by adding the 28 following new subsections: 29 NEW SUBSECTION . 19A. In addition to the state aid reduction 30 applicable pursuant to subsection 2, the state aid portion of 31 the amounts specified for school districts in section 257.10, 32 subsection 7, for the fiscal year beginning July 1, 2025, and 33 ending June 30, 2026, shall be reduced by the department of 34 management by twenty-five million dollars. The reductions 35 -2- HF 1055.2153 (1) 91 ns/jh 2/ 23

for each district shall be prorated based on the proportional 1 reduction that the district receives under subsection 2. 2 NEW SUBSECTION . 19B. The director of the department of 3 management may deduct the following from the state aid due to 4 each school district pursuant to this chapter and shall pay the 5 amounts to the respective area education agencies on a monthly 6 basis from September 15 through June 15 during each school year 7 for purposes of providing services to students enrolled in 8 nonpublic schools within the boundaries of the area education 9 agency: 10 a. The amount calculated for media services for the school 11 district that is attributable to the number of students 12 enrolled in nonpublic schools within the school district who 13 are provided with media services by an area education agency. 14 b. The amount calculated for educational services for the 15 school district that is attributable to the number of students 16 enrolled in nonpublic schools within the school district who 17 are provided with educational services by an area education 18 agency. 19 DIVISION II 20 CORRECTIVE PROVISIONS 21 Sec. 7. Section 29D.4, subsection 2, paragraph b, as enacted 22 by 2025 Iowa Acts, Senate File 619, section 8, is amended to 23 read as follows: 24 b. Moneys in the fund are appropriated to the department to 25 provide loans to eligible entities pursuant to section 29D.9 26 29D.8 , and for administration of the program as permitted 27 under the STORM Act. Moneys in the fund shall not be used to 28 provide a loan to a private entity for the acquisition of real 29 property. Moneys in the fund shall not be considered part of 30 the general fund of the state subject to appropriation for any 31 other purpose by the general assembly, and in determining a 32 general fund balance, shall not be included in the general fund 33 of the state subject to section 16.31, insofar as section 16.31 34 complies with the STORM Act. 35 -3- HF 1055.2153 (1) 91 ns/jh 3/ 23

Sec. 8. Section 144E.3, Code 2025, as amended by 2025 Iowa 1 Acts, Senate File 233, section 2, if enacted, is amended to 2 read as follows: 3 144E.3 Manufacturer and eligible facility rights. 4 1. A manufacturer of an investigational drug, biological 5 product, or device or a manufacturer operating within, 6 and in compliance with all requirements applicable to, an 7 eligible facility may make available, and an eligible patient, 8 as applicable under section 144E.1 144E.2 , subsection 2, 9 paragraph “a” or “b” , may request from a manufacturer of 10 an investigational drug, biological product, or device, 11 or a manufacturer operating within, and in compliance with 12 all requirements applicable to, an eligible facility, the 13 manufacturer’s investigational drug, biological product, or 14 device, or the manufacturer’s individualized investigational 15 treatment under this chapter . This chapter does not require a 16 manufacturer of an investigational drug, biological product, 17 or device, or of an individualized investigational treatment 18 to provide or otherwise make available the investigational 19 drug, biological product, or device, or the individualized 20 investigational treatment to an eligible patient. 21 2. An eligible facility, or a manufacturer described 22 in subsection 1 , that is in compliance with all applicable 23 requirements, may do any of the following: 24 a. Provide an investigational drug, biological product, 25 or device, or an individualized investigational treatment 26 to an eligible patient, as applicable under section 144E.1 27 144E.2 , subsection 2, paragraph “a” or “b” , without receiving 28 compensation. 29 b. Require an eligible patient, as applicable under section 30 144E.1 144E.2 , subsection 2, paragraph “a” or “b” , to pay the 31 costs of, or the costs associated with, the manufacture of the 32 investigational drug, biological product, or device, or the 33 individualized investigational treatment. 34 Sec. 9. Section 237.10, subsection 1, paragraph d, if 35 -4- HF 1055.2153 (1) 91 ns/jh 4/ 23

enacted by 2025 Iowa Acts, House File 644, section 3, is 1 amended to read as follows: 2 d. (1) The department shall notify an individual licensee, 3 and the parents or guardians of a child, if the department 4 delegates the department’s right to consent to emergency 5 medical care and routine medical care on behalf of the child 6 under section 232.2, subsection 12, paragraph “c” , to the 7 individual licensee. 8 (2) The department shall notify the department of 9 education, an individual licensee, and the parents or guardians 10 of a child if the department delegates the department’s right 11 to consent to participation in an individualized education 12 program on behalf of the child under section 232.2, subsection 13 12, paragraph “c” , to the individual licensee. 14 Sec. 10. Section 237.10, subsection 1, paragraph d, if 15 enacted by 2025 Iowa Acts, House File 644, section 7, is 16 amended to read as follows: 17 d. (1) The department shall notify an individual licensee 18 or an approved kinship caregiver, and the parents or guardians 19 of a child, if the department delegates the department’s right 20 to consent to emergency medical care and routine medical care 21 on behalf of the child under section 232.2, subsection 12, 22 paragraph “c” , to the individual licensee or approved kinship 23 caregiver. 24 (2) The department shall notify the department of 25 education, an individual licensee or an approved kinship 26 caregiver, and the parents or guardians of a child, if the 27 department delegates the department’s right to consent to 28 participation in an individualized education program on behalf 29 of the child under section 232.2, subsection 12, paragraph “c” , 30 to the individual licensee or approved kinship caregiver. 31 Sec. 11. Section 256.9, subsection 69, as enacted by 2025 32 Iowa Acts, House File 782, section 1, is amended to read as 33 follows: 34 69. On or before May 1, 2025, develop and distribute 35 -5- HF 1055.2153 (1) 91 ns/jh 5/ 23

to school districts, accredited nonpublic schools, charter 1 schools, and innovation zone schools model policies that, 2 if adopted, would satisfy the a school district’s , charter 3 school’s, or innovation zone school’s responsibilities under 4 section 279.87 relating to policies governing student use of 5 personal electronic devices. 6 Sec. 12. Section 280.36, subsection 1, as enacted by 2025 7 Iowa Acts, Senate File 583, section 4, is amended to read as 8 follows: 9 1. The board of directors of each school district and the 10 authorities in charge of each accredited nonpublic school may 11 establish a multidisciplinary school safety assessment team. 12 If established, the multidisciplinary school safety assessment 13 team shall coordinate resources and assess and intervene 14 when a student enrolled in the school district or accredited 15 nonpublic school exhibits behavior that may pose a threat to 16 the safety of the school district or accredited nonpublic 17 school, employees of the school district or accredited 18 nonpublic school, or other student students enrolled in the 19 school district or accredited nonpublic school. 20 Sec. 13. Section 299.1D, subsection 1, paragraph f, if 21 enacted by 2025 Iowa Acts, House File 870, section 2, is 22 amended to read as follows: 23 f. The school district or accredited nonpublic school 24 must not expend any moneys related to the course in religious 25 instruction, not including de minimis administrative costs 26 associated with processing notifications received under 27 subsection 1 paragraph “a” and tracking the child’s attendance 28 to ensure compliance with this section. 29 Sec. 14. Section 404A.3, subsection 3, paragraph b, 30 subparagraph (5), subparagraph division (c), if enacted by 2025 31 Iowa Acts, House File 975, section 19, is amended to read as 32 follows: 33 (c) Upon application of the eligible taxpayer made prior 34 to the expiration of an extension under subparagraph division 35 -6- HF 1055.2153 (1) 91 ns/jh 6/ 23

(b), the authority may, at the discretion of the authority, 1 extend the date by which the qualified rehabilitation project 2 must be complete up to an additional twelve consecutive months. 3 The qualified eligible taxpayer must substantiate to the 4 satisfaction of the authority that the requested extension is 5 warranted due to extenuating circumstances outside the control 6 of the eligible taxpayer. 7 Sec. 15. Section 510B.8E, subsection 3, unnumbered 8 paragraph 1, if enacted by 2025 Iowa Acts, Senate File 383, 9 section 7, is amended to read as follows: 10 The pharmacy benefits manger manager shall respond to an 11 appeal within seven business days after the date on which the 12 pharmacy benefits manager receives the appeal. 13 Sec. 16. Section 514F.8, subsection 1A, paragraph c, 14 subparagraph (8), if enacted by 2025 Iowa Acts, House File 303, 15 section 1, is amended to read as follows: 16 (8) The average and median time that elapsed between the 17 submission of a nonurgent prior authorization request and a 18 determination by the utilization review organization for the 19 urgent nonurgent prior authorization request, aggregated for 20 all health care services or items. 21 Sec. 17. Section 522F.4, subsection 2, as enacted by 2025 22 Iowa Acts, Senate File 619, section 59, is amended to read as 23 follows: 24 2. Any The fee for a criminal history check shall be 25 the same as any applicable fee for a criminal history check 26 pursuant to section 522B.5A. 27 Sec. 18. Section 522F.9, subsection 2, as enacted by 2025 28 Iowa Acts, Senate File 619, section 64, is amended to read as 29 follows: 30 2. Any The fee for a criminal history check shall be 31 the same as any applicable fee for a criminal history check 32 pursuant to section 522B.5A. 33 Sec. 19. CODE EDITOR DIRECTIVE. 2025 Iowa Acts, Senate File 34 619, section 29, amends section 515.137A, subsections 3, 4, and 35 -7- HF 1055.2153 (1) 91 ns/jh 7/ 23

5, Code 2025, by striking the subsections and inserting in lieu 1 thereof new subsections 3, 4, and 5, and, notwithstanding the 2 Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10. 3 The Code editor is directed to codify 2025 Iowa Acts, Senate 4 File 619, section 29, by striking section 515.137A, subsections 5 3, 4, and 5, Code 2025, and inserting in lieu thereof new 6 subsections 3, 4, and 5, and then by amending section 515.137A, 7 Code 2025, by adding new subsections 6, 7, 8, 9, and 10. 8 Sec. 20. EFFECTIVE DATE. The following, being deemed of 9 immediate importance, takes effect upon enactment: 10 The section of this division of this Act amending section 11 256.9, subsection 69, as enacted by 2025 Iowa Acts, House File 12 782, section 1. 13 Sec. 21. RETROACTIVE APPLICABILITY. The following applies 14 retroactively to April 30, 2025: 15 The section of this division of this Act amending section 16 256.9, subsection 69, as enacted by 2025 Iowa Acts, House File 17 782, section 1. 18 DIVISION III 19 CRYSTALLINE POLYMORPH PSILOCYBIN 20 Sec. 22. Section 124.201, subsection 5, if enacted by 2025 21 Iowa Acts, House File 383, section 1, is amended to read as 22 follows: 23 5. a. Notwithstanding section 124.204, subsection 4, a drug 24 that contains the pharmaceutical composition of crystalline 25 polymorph psilocybin , also known as COMP 360, or any other 26 trade name approved by the United States food and drug 27 administration, shall be immediately removed from schedule I 28 under section 124.204, subsection 4, paragraph “s” , upon its 29 approval by the United States food and drug administration and 30 rescheduled based upon the recommendations of the United States 31 food and drug administration and its listing in the federal 32 Controlled Substances Act, 21 U.S.C. §812, and 21 C.F.R. 33 §1308.14. 34 b. Immediately upon the rescheduling of the drug under 35 -8- HF 1055.2153 (1) 91 ns/jh 8/ 23

paragraph “a” , it shall be lawful to prescribe, distribute, and 1 market the pharmaceutical composition of crystalline polymorph 2 psilocybin , also known as COMP 360, or any other trade name 3 approved by the United States food and drug administration . 4 DIVISION IV 5 MEDICAL RESIDENCY AND FELLOWSHIP POSITIONS —— RESIDENTS OF IOWA 6 Sec. 23. Section 262.9, subsection 39, paragraph e, 7 subparagraph (2), if enacted by 2025 Iowa Acts, House File 516, 8 section 1, is amended to read as follows: 9 (2) An individual who has lived in Iowa for at least four 10 consecutive years immediately preceding the date the individual 11 applies for admission to begins classes at the college of 12 medicine in the doctor of medicine program or the college of 13 dentistry at the state university of Iowa, or for begins a 14 residency at the university of Iowa hospitals and clinics. 15 DIVISION V 16 STATE MEMBERSHIP —— REINSURANCE ASSOCIATION 17 Sec. 24. Section 513C.10, subsection 1, paragraph a, Code 18 2025, is amended to read as follows: 19 a. All persons that provide health benefit plans in this 20 state including insurers providing accident and sickness 21 insurance under chapter 509 , 514 , or 514A , whether on an 22 individual or group basis; fraternal benefit societies 23 providing hospital, medical, or nursing benefits under chapter 24 512B ; and health maintenance organizations, other entities 25 providing health insurance or health benefits subject to state 26 insurance regulation, and all other insurers as designated 27 by the board of directors of the Iowa comprehensive health 28 insurance association with the approval of the commissioner 29 shall be members of the association. However, the state, 30 including a department, an independent agency, the state board 31 of regents, and an institution under the control of the state 32 board of regents, shall not be a member of the association. 33 Sec. 25. EFFECTIVE DATE. This division of this Act, being 34 deemed of immediate importance, takes effect upon enactment. 35 -9- HF 1055.2153 (1) 91 ns/jh 9/ 23

Sec. 26. RETROACTIVE APPLICABILITY. This division of this 1 Act applies retroactively to January 1, 2020. 2 DIVISION VI 3 STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE —— DEPARTMENT OF 4 HEALTH AND HUMAN SERVICES INVESTIGATIONS 5 Sec. 27. NEW SECTION . 232E.1 Definitions. 6 As used in this chapter, unless the context otherwise 7 requires: 8 1. “Board of educational examiners” means the board created 9 in section 256.146. 10 2. “Department” means the department of health and human 11 services. 12 3. “Investigation” means the process by which the department 13 responds to all accepted reports of alleged student abuse. 14 4. “Nonpublic school” means the same as defined in section 15 280.2. 16 5. “Public school” means the same as defined in section 17 280.2. 18 6. “Public school district” means a public school district 19 as described in chapter 274, and includes a charter school 20 under chapter 256E, or a charter school or an innovation zone 21 school under chapter 256F. 22 7. “School employee” means any of the following: 23 a. A person employed by a public school or a nonpublic 24 school. 25 b. A vendor, or an employee of a vendor, that provides goods 26 or services to a public school or a nonpublic school. 27 c. An agent, or an employee of an agent, of a public school 28 or a nonpublic school. 29 d. A volunteer under the direction and control of any of the 30 following: 31 (1) The board of directors or any administrator of a public 32 school district. 33 (2) The board or authorities in control of a nonpublic 34 school. 35 -10- HF 1055.2153 (1) 91 ns/jh 10/ 23

(3) The board of directors or administrator of an agency 1 called upon by a school official to provide services to 2 students in an educational capacity. 3 8. “Student” means a person enrolled in a public school, 4 a nonpublic school, or a prekindergarten program in a public 5 school or a nonpublic school. 6 9. “Student abuse” means any of the following which occur on 7 school grounds during school time, or on or at a school-related 8 curricular or extracurricular activity: 9 a. Any nonaccidental physical injury, or an injury which 10 does not match the history provided for how the injury 11 occurred, suffered by a student as the result of an act or 12 omission of a school employee, that is not otherwise excluded 13 by section 280.21, subsection 2. 14 b. The commission of a sexual offense under chapter 709, 15 section 726.2, or section 728.12, subsection 1, with or to a 16 student as a result of an act or omission of a school employee. 17 c. An act or omission of a school employee which allows, 18 permits, or encourages a student to engage in an act prohibited 19 under section 725.1. 20 Sec. 28. NEW SECTION . 232E.2 Investigation of alleged 21 student abuse by school employees —— rules. 22 1. The department shall administer this chapter to provide 23 for the investigation of reports of alleged student abuse by 24 school employees as specified in this chapter. 25 2. a. If, during the child abuse intake process under 26 chapter 232, subchapter III, part 2, the department receives 27 a report from an identifiable source and the department 28 determines the report constitutes an allegation of student 29 abuse involving a school employee, the department shall notify 30 the board of directors of the public school district or the 31 authorities in charge of the nonpublic school associated with 32 the school employee, and the board of educational examiners, of 33 the determination. 34 b. Upon notification under paragraph “a” , the board of 35 -11- HF 1055.2153 (1) 91 ns/jh 11/ 23

directors of the public school district or the authorities in 1 charge of the nonpublic school shall place the school employee 2 on administrative leave and shall prohibit the school employee 3 from entering school property until the investigation is 4 completed. 5 3. If the department determines the alleged student abuse 6 constitutes a criminal act, the department shall do all of the 7 following: 8 a. Immediately refer the matter to, and jointly investigate 9 the matter with, the appropriate law enforcement agency. 10 b. Notify the board of directors of the public school 11 district, or the authorities in charge of the nonpublic school, 12 associated with the school employee of the referral under 13 paragraph “a” . 14 c. If the school employee is licensed, certified, or 15 authorized by the board of educational examiners, or holds 16 an active statement of recognition issued by the board of 17 educational examiners, notify the board of educational 18 examiners of the referral under paragraph “a” . 19 4. Following receipt of a report of alleged student abuse, 20 the department shall do all of the following: 21 a. Commence an investigation within twenty-four hours of 22 receipt of the report. 23 b. Complete the investigation within thirty business days of 24 receipt of the report. 25 5. Upon completion of an investigation, the department 26 shall submit a written investigation report to all of the 27 following: 28 a. The board of directors of the public school district, or 29 the authorities in charge of the nonpublic school, associated 30 with the school employee subject to the investigation. 31 b. The board of educational examiners if the school 32 employee subject to the investigation is licensed, certified, 33 or authorized by the board of educational examiners, or holds 34 an active statement of recognition issued by the board of 35 -12- HF 1055.2153 (1) 91 ns/jh 12/ 23

educational examiners. 1 6. The department shall adopt rules pursuant to chapter 2 17A, in consultation with the department of education, to 3 administer this chapter. Rules adopted by the department shall 4 include rules regarding the intake and investigation processes, 5 investigation reports, case and investigation record retention 6 and dissemination, and case disposition. 7 7. The department shall maintain information and data 8 regarding student abuse reports, investigations, and 9 dispositions under this chapter separately from information 10 and data regarding child abuse reports, assessments, and 11 dispositions under chapter 232. 12 DIVISION VII 13 STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE —— DEPARTMENT OF 14 EDUCATION 15 Sec. 29. Section 280.17, Code 2025, is amended by striking 16 the section and inserting in lieu thereof the following: 17 280.17 Student abuse investigations —— termination of 18 employment. 19 1. The board of directors of a public school district and 20 the authorities in charge of a nonpublic school shall comply 21 with chapter 232E, and shall cooperate with the department of 22 health and human services during an investigation commenced 23 under chapter 232E. 24 2. The board of directors of a public school or the 25 authorities in charge of a nonpublic school shall terminate the 26 employment of a school employee if the board of directors or 27 authorities in charge receive a written investigation report 28 under section 232E.2, subsection 5, indicating the department 29 of health and human services has determined the school employee 30 committed student abuse. 31 3. The department of education, in consultation with the 32 department of health and human services, shall adopt rules 33 pursuant to chapter 17A, and a model policy, for the handling 34 of investigations pursuant to chapter 232E. 35 -13- HF 1055.2153 (1) 91 ns/jh 13/ 23

Sec. 30. Section 321.375, subsection 3, paragraph d, Code 1 2025, is amended to read as follows: 2 d. The commission of or conviction for a public offense as 3 defined by the Iowa criminal code, if the offense is relevant 4 to and affects driving ability, or if the offense includes 5 sexual involvement with a minor student with the intent to 6 commit acts and practices proscribed under sections 709.2 7 through 709.4 , section 709.8 , and sections 725.1 through 725.3 , 8 or is a violation of the rules of the department of education 9 adopted to implement section 280.17 student abuse as defined 10 in section 232E.1 . 11 DIVISION VIII 12 SCHOOL BUDGETS —— MODIFIED SUPPLEMENTAL AMOUNTS 13 Sec. 31. Section 257.31, subsection 5, paragraph o, Code 14 2025, is amended to read as follows: 15 o. (1) The percentage of students enrolled in the school 16 district as the result of open enrollment under section 17 282.18 is equal to or greater than forty-five percent of the 18 total number of students enrolled in the school district. 19 The committee shall not approve supplemental aid or a 20 modified supplemental amount that exceeds an amount equal 21 to fifty percent of the product of the net change in the 22 school district’s expected enrollment due to open enrollment 23 multiplied by the sum of the following amounts: 24 (a) The difference between the district’s regular program 25 district cost per pupil minus the regular program state cost 26 per pupil. 27 (b) The teacher salary supplement district cost per pupil. 28 (c) (b) The professional development supplement district 29 cost per pupil. 30 (d) (c) The early intervention supplement district cost per 31 pupil. 32 (2) Prior to filing a request for supplemental aid or a 33 modified supplemental amount based on the grounds specified 34 in this paragraph, the board of directors shall hold a public 35 -14- HF 1055.2153 (1) 91 ns/jh 14/ 23

hearing on the issue and shall publish the notice of the time 1 and place of the public hearing. Notice of the time and place 2 of the public hearing shall be published not less than ten nor 3 more than twenty days before the public hearing in a newspaper 4 that is a newspaper of general circulation in the school 5 district. 6 (3) A school district is not eligible for supplemental aid 7 or a modified supplemental amount under this paragraph if a 8 majority of the students enrolled in the school district as 9 the result of open enrollment are students receiving online 10 instruction from a private provider under section 256.43, 11 subsection 2 . 12 (4) A school district is only eligible for supplemental 13 aid or a modified supplemental amount under this paragraph for 14 the budget year beginning July 1, 2024 If a school district is 15 granted a modified supplemental amount under this paragraph for 16 a budget year beginning on or after July 1, 2025, the school 17 district’s combined property tax rate per one thousand dollars 18 for all school district levies for the succeeding budget year 19 shall not exceed the combined property tax rate for all such 20 levies for the budget year for which the modified supplemental 21 amount was granted . 22 Sec. 32. REPEAL. 2024 Iowa Acts, chapter 1152, section 45, 23 is repealed. 24 Sec. 33. EFFECTIVE DATE. This division of this Act, being 25 deemed of immediate importance, takes effect upon enactment. 26 Sec. 34. APPLICABILITY. This division of this Act applies 27 to school budget years beginning on or after July 1, 2025. 28 DIVISION IX 29 WAGERING TAXES 30 Sec. 35. Section 99D.15, subsection 4, paragraph b, Code 31 2025, is amended to read as follows: 32 b. If wagering on simultaneously telecast horse races and 33 dog races is conducted by a licensee under section 99D.9D , 34 a tax of two percent is imposed on the gross sum wagered by 35 -15- HF 1055.2153 (1) 91 ns/jh 15/ 23

the pari-mutuel method on horse races and dog races which 1 are simultaneously telecast in excess of twenty-five million 2 dollars in a calendar year. Of the tax revenue collected 3 from simulcast horse races under this paragraph, one-half of 4 one percent of the gross sum wagered shall be remitted to 5 the treasurer of the county in which a horse racetrack is 6 located in this state and licensed under this chapter . The 7 tax revenue from simulcast horse races under this paragraph 8 shall be deposited in the Iowa horse racing fund created in 9 section 99D.27B. The remaining amount of tax revenue shall be 10 deposited with the commission. 11 Sec. 36. Section 99D.17, Code 2025, is amended to read as 12 follows: 13 99D.17 Use of funds moneys . 14 Funds Unless otherwise provided by section 99D.15 or another 15 provision of law, moneys received pursuant to sections 99D.14 16 and 99D.15 shall be deposited as provided in section 8.57, 17 subsection 3 . These funds moneys shall first be used to the 18 extent appropriated by the general assembly. The commission 19 is subject to the budget requirements of chapter 8 and the 20 applicable auditing requirements and procedures of chapter 11 . 21 Sec. 37. NEW SECTION . 99D.27B Iowa horse racing fund —— 22 advance deposit wagering tax. 23 1. An Iowa horse racing fund is created in the state 24 treasury under the control of the commission. 25 2. The fund shall consist of tax revenue collected and 26 deposited in the fund pursuant to subsection 6 and section 27 99D.15, subsection 4, and such other moneys appropriated to, 28 transferred to, or deposited in the fund. 29 3. a. Moneys in the fund are appropriated to the commission 30 for distribution in a manner and in an amount as determined by 31 the commission to individual entities or a recognized compact 32 of entities tasked with the regulation of the horse racing 33 industry in accordance with the federal Horseracing Integrity 34 and Safety Act of 2020, 15 U.S.C. ch. 57A. 35 -16- HF 1055.2153 (1) 91 ns/jh 16/ 23

b. In the event that the federal Horseracing Integrity 1 and Safety Act of 2020, 15 U.S.C. ch. 57A, is repealed, 2 moneys in the fund shall be transferred to the rebuild Iowa 3 infrastructure fund created in section 8.57. 4 4. Members of the commission and those acting on behalf of 5 the commission assisting in the distribution of the moneys in 6 the fund shall be held harmless against any claim of liability 7 made by an individual or entity arising out of the distribution 8 of the moneys from the fund by the commission. 9 5. Section 8.33 does not apply to moneys in the fund. 10 Notwithstanding section 12C.7, subsection 2, interest or 11 earnings on moneys deposited in the fund shall be credited to 12 the fund. 13 6. A tax of two percent is imposed on the gross sum wagered 14 by the pari-mutuel method as an advance deposit wager under 15 section 99D.11, subsection 6, paragraph “c” . The tax imposed 16 under this subsection is in lieu of any tax imposed on such 17 wagers under section 99D.15. The tax revenue generated under 18 this subsection shall be deposited in the fund. 19 DIVISION X 20 STATE FIRE MARSHAL STUDY 21 Sec. 38. STATE FIRE MARSHAL —— COUNTYWIDE FIRE PROTECTION 22 SERVICES STUDY. 23 1. The state fire marshal shall conduct a study of fire 24 protection services in this state to analyze whether a 25 structure of countywide fire protection services would maximize 26 fire protection coverage and emergency response times. The 27 study shall be conducted in consultation with representatives 28 from the following stakeholders: 29 a. The department of homeland security and emergency 30 management. 31 b. The Iowa association of professional fire chiefs. 32 c. The Iowa fire chiefs’ association. 33 d. The Iowa firefighters association. 34 e. The Iowa professional fire fighters. 35 -17- HF 1055.2153 (1) 91 ns/jh 17/ 23

f. The Iowa emergency management association. 1 g. At least one attorney licensed to practice law in this 2 state with experience representing entities associated with 3 fire protection services. 4 h. At least one representative from a city having a 5 population of thirty-seven thousand or more as determined by 6 the 2020 federal decennial census. 7 i. At least one representative from a city having a 8 population of less than five thousand as determined by the 2020 9 federal decennial census. 10 j. At least one representative from a county having a 11 population of ninety thousand or more as determined by the 2020 12 federal decennial census. 13 k. Four members of the general assembly serving as 14 ex officio, nonvoting members, one representative to be 15 appointed by the speaker of the house of representatives, one 16 representative to be appointed by the minority leader of the 17 house of representatives, one senator to be appointed by the 18 president of the senate after consultation with the majority 19 leader of the senate, and one senator to be appointed by the 20 minority leader of the senate. 21 2. The countywide fire protection services study shall 22 include all of the following: 23 a. A cost analysis for upfront and ongoing costs to provide 24 consolidated countywide fire protection services systems. The 25 analysis and recommendations shall include proposed funding 26 mechanisms and potential consolidated funding resources that 27 comply with local, state, and federal law. The analysis shall 28 also include the potential effects countywide fire protection 29 services could have on local authority expenditures and 30 budgets. 31 b. An analysis of current fire protection coverage 32 including current response times and recommendations for 33 placement of service stations to maximize fire protection 34 coverage and emergency response times in the most efficient and 35 -18- HF 1055.2153 (1) 91 ns/jh 18/ 23

cost-effective manner. 1 c. An analysis of current and future staffing needs 2 including a proposed employment structure for countywide 3 fire protection services that focuses on adequate employee 4 pay and volunteer staffing, including benefits, stipends, or 5 other compensation allowed in accordance with local, state, or 6 federal law. 7 d. An analysis of current fire protection services 8 equipment and future fire protection services equipment needs 9 including proposed placement of fire protection services 10 equipment in service stations to maximize fire protection 11 coverage and emergency response times. 12 e. An analysis of current communication and dispatch 13 challenges including proposed recommendations for more 14 efficient and effective communications. 15 f. An analysis of the need for city and township fire 16 protection services in relation to the implementation of a 17 countywide fire protection service. 18 g. An analysis of existing countywide fire protection 19 service programs in this state including outlining current 20 processes and procedures. The analysis under this paragraph 21 must include outlines of any current or proposed fire 22 protection service programs under chapter 28E, 357B, 357F, 23 357G, or 357J, and any other legal agreement, contract, or 24 consolidated effort, including as part of a district. 25 h. An analysis of countywide fire protection services in 26 other states, with an emphasis on midwest states, including an 27 analysis of those fire protection programs in comparison to the 28 fire protection needs of this state. 29 i. Recommendations for the implementation of countywide 30 fire protection services in this state including proposed 31 functionality and an emphasis on the potential impact of 32 implementation on the four most populous counties in this 33 state as determined by the 2020 federal decennial census, 34 along with surrounding counties if a multicounty approach to 35 -19- HF 1055.2153 (1) 91 ns/jh 19/ 23

fire protection services would be more beneficial based on the 1 study’s findings. 2 3. The state fire marshal shall submit a report of the 3 study’s findings to the general assembly on or before June 30, 4 2026. 5 Sec. 39. EFFECTIVE DATE. This division of this Act, being 6 deemed of immediate importance, takes effect upon enactment. 7 DIVISION XI 8 INTERIM STUDIES 9 Sec. 40. INTERIM STUDY COMMITTEE —— ALL-TERRAIN VEHICLES 10 AND OFF-ROAD UTILITY VEHICLES ON HIGHWAYS. 11 1. The legislative council is requested to establish an 12 interim study committee to meet during the 2025 legislative 13 interim to examine policy matters and recommend statutory 14 changes relating to the operation of all-terrain vehicles 15 and off-road utility vehicles on highways, including but not 16 limited to the following: 17 a. Requiring registration and a fee for all-terrain 18 vehicles and off-road utility vehicles to be operated on a 19 highway, other than the registration required for such vehicles 20 to be operated on public land, public ice, or a designated 21 riding trail of this state. 22 b. Consolidating Code provisions that regulate the 23 operation of all-terrain vehicles and off-road utility 24 vehicles. 25 2. The interim study committee shall consist of three 26 members of the senate, two of whom shall be appointed by 27 the majority leader of the senate and one of whom shall be 28 appointed by the minority leader of the senate, and three 29 members of the house of representatives, two of whom shall be 30 appointed by the speaker of the house of representatives and 31 one of whom shall be appointed by the minority leader of the 32 house of representatives. 33 3. The interim study committee, in consultation with 34 the director of the department of transportation or the 35 -20- HF 1055.2153 (1) 91 ns/jh 20/ 23