Senate
Study
Bill
1181
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LOCAL
GOVERNMENT
BILL
BY
CHAIRPERSON
WEBSTER)
A
BILL
FOR
An
Act
prohibiting
franchise
fees
imposed
by
cities
and
1
counties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
331.301,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
26.
Beginning
on
July
1,
2025,
a
county
3
shall
not
assess
or
collect
a
franchise
fee.
4
Sec.
2.
Section
364.2,
subsection
4,
paragraph
f,
5
subparagraph
(1),
subparagraph
division
(a),
Code
2025,
is
6
amended
to
read
as
follows:
7
(a)
A
franchise
fee
assessed
by
a
city
may
be
based
upon
8
a
percentage
of
gross
revenues
generated
from
sales
of
the
9
franchisee
within
the
city
not
to
exceed
five
percent
except
10
as
provided
in
subparagraph
division
(b),
without
regard
to
11
the
city’s
cost
of
inspecting,
supervising,
and
otherwise
12
regulating
the
franchise.
Beginning
on
July
1,
2025,
a
city
13
shall
not
assess
a
franchise
fee
related
to
any
franchise
14
granted
by
the
city.
15
Sec.
3.
Section
480A.6,
Code
2025,
is
amended
to
read
as
16
follows:
17
480A.6
Franchise
ordinance
not
superseded.
18
This
chapter
does
not
modify
or
supersede
the
rights
and
19
obligations
of
a
local
government
and
the
public
utility
20
established
by
the
terms
of
any
existing
or
future
franchise
21
granted,
approved,
and
accepted
pursuant
to
section
364.2,
22
subsection
4
.
A
For
fiscal
years
beginning
before
July
1,
23
2025,
a
city
which
collects
a
city
franchise
fee
from
an
entity
24
pursuant
to
section
364.2,
subsection
4
,
under
an
existing
or
25
future
franchise,
shall
not
also
collect
a
fee
from
that
entity
26
under
section
480A.3
.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
Currently,
a
city
may
grant
a
franchise
to
erect
and
maintain
31
essential
city
services
described
in
Code
section
364.2(4)(a),
32
and
may
impose
a
franchise
fee
upon
the
gross
sales
amount
33
of
such
services
not
to
exceed
5
percent.
In
cities
with
a
34
population
exceeding
200,000,
the
franchise
fee
allowed
to
be
35
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_____
imposed
shall
not
exceed
7
percent
of
the
gross
sales
amount.
1
This
bill
eliminates
a
city’s
ability
to
impose
any
franchise
2
fees
beginning
July
1,
2025.
3
The
bill
also
prohibits
a
county
from
imposing
or
collecting
4
a
franchise
fee
beginning
July
1,
2025.
5
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