Senate File 2500 - Reprinted SENATE FILE 2500 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 2431) (SUCCESSOR TO SSB 3009) (As Amended and Passed by the Senate April 22, 2026 ) A BILL FOR An Act relating to townships, including the appointment and 1 duties of township officers, township budgets, and the 2 provision of fire protection and emergency medical services 3 to townships by cities, and including effective date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 2500 (3) 91 js/jh/mb

S.F. 2500 DIVISION I 1 TOWNSHIP GOVERNANCE 2 Section 1. Section 39.22, unnumbered paragraph 1, Code 3 2026, is amended to read as follows: 4 The This section applies only to the election or appointment 5 of township officers in townships not subject to the provisions 6 of section 359.11, subsection 1. The appointment of township 7 officers in townships subject to the provisions of section 8 359.11, subsection 1, shall occur only as provided in that 9 subsection. Otherwise, the offices of township trustee and 10 township clerk shall be filled by appointment or election as 11 follows: 12 Sec. 2. Section 64.1A, subsection 5, Code 2026, is amended 13 to read as follows: 14 5. Township trustees and, if appointed pursuant to section 15 359.11, subsection 1, township clerks . 16 Sec. 3. Section 69.8, subsection 5, Code 2026, is amended 17 to read as follows: 18 5. Elected township offices. 19 a. When a vacancy occurs in the office of township clerk 20 or township trustee in a township that is not subject to the 21 provisions of section 359.11, subsection 1 , the vacancy shall 22 be filled by appointment by the trustees. All appointments to 23 fill vacancies in township offices shall be until a successor 24 is elected at the next general election and qualifies by taking 25 the oath of office. If the term of office in which the vacancy 26 exists will expire within seventy days after the next general 27 election, the person elected to the office for the succeeding 28 term shall qualify by taking the oath of office within ten days 29 after the election and shall serve for the remainder of the 30 unexpired term, as well as for the next four-year term. 31 b. However, if the offices of two trustees are vacant in 32 a township that is not subject to the provisions of section 33 359.11, subsection 1, the county board of supervisors shall 34 fill the vacancies by appointment. If the offices of three 35 -1- SF 2500 (3) 91 js/jh/mb 1/ 9

S.F. 2500 trustees are vacant in a township that is not subject to the 1 provisions of section 359.11, subsection 1, the board may 2 fill the vacancies by appointment, or the board may adopt a 3 resolution stating that the board will exercise all powers and 4 duties assigned by law to the trustees of the township in which 5 the vacancies exist until the vacancies are filled at the next 6 general election. If a township office vacancy is not filled 7 by the trustees within thirty days after the vacancy occurs, 8 the board of supervisors may appoint a successor to fill the 9 vacancy until the vacancy can be filled at the next general 10 election. 11 c. When a vacancy occurs in the office of township trustee 12 or township clerk in a township that is subject to the 13 provisions of section 359.11, subsection 1, the vacancy shall 14 be filled pursuant to that subsection. 15 Sec. 4. Section 331.502, subsection 24, Code 2026, is 16 amended to read as follows: 17 24. Carry out duties related to posting financial 18 information of a township as provided in sections 359.23 and 19 359.49 and 359.51A . 20 Sec. 5. Section 331.512, subsection 1, paragraph i, Code 21 2026, is amended to read as follows: 22 i. The levy of taxes certified by the board of trustees of a 23 township as provided in chapters chapter 359 and 360 . 24 Sec. 6. Section 359.10, Code 2026, is amended to read as 25 follows: 26 359.10 New township —— first election Initial township 27 elections . 28 When a new township is formed and is not subject to the 29 provisions of section 359.11, subsection 1, or when a township 30 ceases to be subject to the provisions of section 359.11, 31 subsection 1 , in which and township officers are to be 32 elected, the board of supervisors shall call the first township 33 election, to be held at such place as it may designate, on the 34 day of the next general election. If at any time a new township 35 -2- SF 2500 (3) 91 js/jh/mb 2/ 9

S.F. 2500 has been created in a year in which no general election is 1 held, the board may call a special election for the election of 2 the township officers of the new township, who shall continue 3 in office until their successors are elected and qualified. 4 There shall be elected two trustees for a term of two years, 5 whose successors shall serve terms of four years, one trustee 6 for a term of four years, and one clerk for a term of four 7 years. 8 Sec. 7. Section 359.11, Code 2026, is amended by striking 9 the section and inserting in lieu thereof the following: 10 359.11 Appointment of trustees and clerks —— training. 11 1. a. This subsection applies only to townships located in 12 a county with a population of less than seventy-five thousand 13 according to the most recent federal decennial census, except 14 this subsection does not apply to any township with a taxable 15 valuation for property tax purposes of two hundred fifty 16 million dollars or more. 17 b. Prior to January 1, 2027, the board of supervisors shall 18 appoint three registered voters of each township to serve on 19 the board of trustees in each township, whose terms shall begin 20 January 1, 2027. The initial terms of the board of trustees 21 shall be staggered. One appointee under this paragraph shall 22 serve a term of one year, one appointee under this paragraph 23 shall serve a term of two years, and one appointee under this 24 paragraph shall serve a term of three years. This paragraph is 25 repealed January 1, 2031. 26 c. A board of trustees in each township shall consist 27 of three registered voters of the township appointed by the 28 board of supervisors to serve three-year terms staggered so 29 that one term expires on January 1 of each year. Prior to 30 the expiration of the term of an appointee to the board of 31 trustees, the board of supervisors shall appoint a registered 32 voter of the township to serve a term of three years beginning 33 January 1. 34 d. The board of supervisors shall appoint a township clerk 35 -3- SF 2500 (3) 91 js/jh/mb 3/ 9

S.F. 2500 to serve a term of four years beginning January 1. 1 2. A township that has appointed officers pursuant to 2 subsection 1 that is no longer subject to subsection 1 due to 3 the township being located in a county with a population of 4 at least seventy-five thousand according to the most recent 5 federal decennial census or the taxable valuation of the 6 township for property tax purposes reaching or exceeding two 7 hundred fifty million dollars shall arrange for the election of 8 township officers pursuant to section 359.10. 9 3. The board of supervisors may remove a person appointed 10 under subsection 1 at any time for neglect of duty or 11 maladministration. 12 4. A vacancy on the board of trustees or of the position 13 of township clerk shall be filled for the unexpired portion of 14 the regular term in the same manner as regular appointments are 15 made pursuant to subsection 1 or as provided in section 69.8, 16 if applicable. 17 5. a. Prior to initially taking office as a township 18 trustee or township clerk, the appointee or officer-elect 19 shall attend training on township budgets, duties, and 20 responsibilities, including but not limited to a trustee’s role 21 as a fence viewer under chapter 359A. The training shall be 22 offered by the county agriculture extension council created 23 pursuant to section 176A.5. If multiple county agricultural 24 extension councils exist in the same county, the county 25 agricultural extension councils shall coordinate to offer the 26 required training. County agricultural extension councils may 27 collaborate with the department of management and organizations 28 representing county and city governments in producing the 29 content for and presenting the required training. The county 30 agricultural extension council shall notify the board of 31 supervisors when an appointee or officer-elect has attended the 32 required training. 33 b. If an appointee under subsection 1 fails to attend the 34 required training, the board of supervisors shall make a new 35 -4- SF 2500 (3) 91 js/jh/mb 4/ 9

S.F. 2500 appointment for the position and the new appointee shall attend 1 the required training prior to taking office. 2 Sec. 8. NEW SECTION . 359.51A Annual reports. 3 Each township clerk shall prepare and submit to the 4 department of management and the county board of supervisors, 5 on or before July 31 of each year, a report in writing, 6 showing all receipts of money and disbursements in the clerk’s 7 office for each separate tax levy authorized by law for the 8 preceding fiscal year, showing the current public debt of the 9 township, showing the balance as of June 30 of all separate 10 reserve accounts held by the township, and providing an 11 itemized statement and any other information the department of 12 management deems relevant, which shall be certified as correct 13 by the trustees of the township. The report shall be in a form 14 prescribed by the department of management in consultation with 15 the county finance committee. Each township clerk shall send a 16 copy of this written report to the department of management, 17 county board of supervisors, and county auditor. The county 18 auditor shall post the report or a summary of the report in 19 a prominent place in the building where the auditor’s office 20 is located. The department of management shall post all 21 reports received pursuant to this section on the department of 22 management’s internet site and a county shall post all reports 23 received pursuant to this section on the county’s internet 24 site. The county treasurer shall withhold disbursement of 25 township taxes until the report is filed with the county board 26 of supervisors and the county auditor. The county auditor 27 shall notify the county treasurer if taxes are to be withheld. 28 Sec. 9. NEW SECTION . 359.61 Intergovernmental agreements. 29 1. Any legal or contractual agreement or obligation to which 30 a township is subject in effect prior to the township becoming 31 subject to the provisions of section 359.11, subsection 1, 32 shall remain in effect until the expiration of the legal or 33 contractual agreement or obligation. 34 2. Any agreement entered into under chapter 28E to which a 35 -5- SF 2500 (3) 91 js/jh/mb 5/ 9

S.F. 2500 township is a party is invalid and unenforceable on and after 1 January 1, 2027, if the agreement has not been filed with the 2 secretary of state by that date pursuant to section 28E.8. 3 This subsection does not prohibit a township from entering a 4 new agreement under chapter 28E as long as the agreement is 5 filed pursuant to section 28E.8. 6 Sec. 10. NEW SECTION . 384.12A Rural fire protection fund. 7 1. A city that provides fire protection and emergency 8 medical services to a township pursuant to a contract shall 9 establish a rural fire protection fund under the control of the 10 city’s fire department. 11 2. A city that receives payment from a township pursuant 12 to a township’s levy for fire protection or emergency medical 13 services pursuant to section 359.43 shall deposit such payments 14 into the city’s rural fire protection fund. The city shall use 15 moneys in the rural fire protection fund only for purposes of 16 providing fire protection and emergency medical services. 17 3. By June 30, 2026, and by June 30 of each year thereafter, 18 a city that deposits payments from a township into the city’s 19 rural fire protection fund pursuant to subsection 2 shall 20 share with the township board of trustees and, if the township 21 is subject to the provisions of section 359.11, subsection 22 1, with the county board of supervisors an itemized list of 23 expenditures from the fund. 24 4. Moneys remaining in a city’s rural fire protection fund 25 at the close of the city’s fiscal year shall remain available 26 for expenditure for the purposes of fire protection and 27 emergency medical services. 28 Sec. 11. REPEAL. Sections 359.23, 359.38, and 359.39, Code 29 2026, are repealed. 30 Sec. 12. REPEAL. Chapter 360, Code 2026, is repealed. 31 Sec. 13. TRANSITION —— ELECTED TOWNSHIP OFFICIALS. The 32 term of all elected township officials in all townships subject 33 to the provisions of section 359.11, subsection 1, as enacted 34 by this division of this Act, shall terminate on January 1, 35 -6- SF 2500 (3) 91 js/jh/mb 6/ 9

S.F. 2500 2027. A person serving as a township trustee or township clerk 1 pursuant to chapter 359, Code 2026, may continue serving in 2 that role until January 1, 2027. 3 Sec. 14. TRANSITION —— TRANSFER OF MONEYS. On or before 4 September 1, 2026, any moneys collected by a township pursuant 5 to taxes levied under chapter 360, Code 2026, and under control 6 of the township clerk shall be transferred by the township 7 clerk to the general fund of a school district or districts pro 8 rata in which the moneys were raised. 9 Sec. 15. EFFECTIVE DATE. This division of this Act, being 10 deemed of immediate importance, takes effect upon enactment. 11 DIVISION II 12 TOWNSHIP BUDGETS 13 Sec. 16. Section 359.49, Code 2026, is amended by adding the 14 following new subsection: 15 NEW SUBSECTION . 1A. a. Prior to adoption and certification 16 of the budget proposed pursuant to this section, the board of 17 trustees shall provide the proposed budget to the board of 18 supervisors. 19 b. The board of supervisors shall have the option to approve 20 or reject the proposed budget of a township subject to section 21 359.11, subsection 1. The board of supervisors shall approve 22 or reject the proposed budget of a township subject to section 23 359.11, subsection 1, and direct changes to be made in a timely 24 manner so as to not delay the duties of the board of trustees to 25 adopt a budget and certify taxes by the deadlines provided in 26 this section. 27 c. The board of supervisors shall not direct or allocate 28 any moneys collected pursuant to a levy in one township for 29 use in another township. This paragraph does not prohibit 30 cost-sharing agreements entered into between two or more 31 townships. 32 d. All approved budgets, whether approved by the board 33 of trustees or by the board of supervisors as required under 34 paragraph “b” , shall be itemized and presented at hearings and 35 -7- SF 2500 (3) 91 js/jh/mb 7/ 9

S.F. 2500 meetings for the review or consideration of the county budget 1 or a county levy. 2 Sec. 17. Section 359.49, subsections 4 and 7, Code 2026, are 3 amended to read as follows: 4 4. The board of trustees shall transmit a copy of the 5 proposed budget and a notice of the meeting set as required by 6 subsection 5 to the county auditor for posting. The county 7 auditor shall post the notice and the proposed budget in an 8 area of the courthouse where notices to the public are commonly 9 posted. The county auditor shall also post the notice and 10 proposed budget on the county’s internet site. 11 7. After the meeting on the proposed budget, the board of 12 trustees shall adopt by resolution a budget for at least the 13 next fiscal year, and the clerk shall certify the necessary 14 tax levy for the next fiscal year to the county auditor and 15 the county board of supervisors by April 30. The tax levy 16 certified may be less than but shall not be more than the 17 amount estimated in the proposed budget submitted at the 18 meeting. Two copies each of the detailed budget as adopted 19 and of the certified tax levy must be transmitted to the 20 county auditor by April 30. The county auditor shall post the 21 detailed budget on the county’s internet site. 22 Sec. 18. Section 359.50, subsection 1, Code 2026, is amended 23 to read as follows: 24 1. A township budget as finally adopted for the following 25 fiscal year becomes effective July 1. A township budget for 26 the current fiscal year may be amended , with the approval of 27 the board of supervisors if approval is required under section 28 359.49, subsection 1A, paragraph “b” , for any of the following 29 purposes: 30 a. To permit the expenditure of unexpended, unencumbered 31 cash balances on hand at the end of the preceding fiscal year 32 which that had not been anticipated in the budget. 33 b. To permit the expenditure of amounts anticipated to be 34 available from sources other than property taxation, and which 35 -8- SF 2500 (3) 91 js/jh/mb 8/ 9