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Senate File 659 - ReprintedA Bill ForAn Act 1relating to state government and finances, including by
2making, modifying, limiting, or reducing appropriations,
3distributions, or transfers; authorizing expenditure of
4unappropriated moneys in special funds; providing for
5properly related matters including crystalline polymorph
6psilocybin, medical residency and fellowship positions,
7state membership in the Iowa individual health benefit
8reinsurance association, student abuse by school employees,
9modified supplemental amounts for school budgets, wagering
10taxes, a state fire marshal study, certain legislative
11interim studies, and 911 emergency communications
12services; making corrections; and including effective date,
13applicability, and retroactive applicability provisions.
14BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE
3AUTHORITY
4 Section 1. LIMITATIONS OF STANDING APPROPRIATIONS — FY
52025-2026. Notwithstanding the standing appropriation in the
6following designated section for the fiscal year beginning July
71, 2025, and ending June 30, 2026, the amount appropriated from
8the general fund of the state pursuant to that section for the
9following designated purpose shall not exceed the following
10amount:
11For payment of claims for nonpublic school pupil
12transportation under section 285.2:
.................................................. $138,997,091
14If total approved claims for reimbursement for nonpublic
15school pupil transportation exceed the amount appropriated in
16accordance with this section, the department of education shall
17prorate the amount of each approved claim.
18 Sec. 2. INSTRUCTIONAL SUPPORT STATE AID — FY 2025-2026. In
19lieu of the appropriation provided in section 257.20,
20subsection 2, the appropriation for the fiscal year
21beginning July 1, 2025, and ending June 30, 2026, for paying
22instructional support state aid under section 257.20 for the
23fiscal year is zero.
24 Sec. 3. SPECIAL FUNDS — SALARY ADJUSTMENTS — FY
252025-2026. For the fiscal year beginning July 1, 2025, and
26ending June 30, 2026, salary adjustments otherwise provided
27may be funded as determined by the department of management,
28subject to any applicable constitutional limitation, using
29unappropriated moneys remaining in the commerce revolving
30fund, the gaming enforcement revolving fund, the gaming
31regulatory revolving fund, the primary road fund, the road
32use tax fund, the fish and game protection fund, and the Iowa
33public employees’ retirement fund, and in other departmental
34revolving, trust, or special funds for which the general
35assembly has not made an operating budget appropriation.
-1-1 Sec. 4. IOWA ECONOMIC EMERGENCY FUND EXCESS — USE FOR
2FOUNDATION AID. Of the excess moneys transferred to the
3general fund of the state under section 8.55, subsection 2,
4paragraph “b”, for the fiscal year beginning July 1, 2024,
5$21,881,303 shall be used in lieu of a like amount of other
6general fund moneys to pay foundation aid under chapter 257,
7as described in section 257.16, for the fiscal year beginning
8July 1, 2025. This section is based on the application of
9assessment limitations calculated under section 441.21 due to
10the enactment of 2023 Iowa Acts, chapter 5.
11 Sec. 5. Section 257.35, subsection 2, Code 2025, is amended
12to read as follows:
132. Notwithstanding the deduction and payment under
14subsection 1, the The amounts specified for school districts
15and area education agencies in subsection 1, paragraph “a”
16section 257.10, subsection 7, for the fiscal year beginning
17July 1, 2024 2025, and each succeeding fiscal year, shall be
18reduced by the department of management by seven million five
19hundred thousand dollars. The department of management shall
20calculate a state aid reduction such that such amounts shall
21be reduced proportionally to the amount that the district or
22agency would otherwise have received under this section if the
23reduction imposed pursuant to this subsection did not apply
24 257.10, subsection 7.
25 Sec. 6. Section 257.35, Code 2025, is amended by adding the
26following new subsections:
27 NEW SUBSECTION. 19A. In addition to the state aid reduction
28applicable pursuant to subsection 2, the state aid portion of
29the amounts specified for school districts in section 257.10,
30subsection 7, for the fiscal year beginning July 1, 2025, and
31ending June 30, 2026, shall be reduced by the department of
32management by twenty-five million dollars. The reductions
33for each district shall be prorated based on the proportional
34reduction that the district receives under subsection 2.
35 NEW SUBSECTION. 19B. The director of the department of
-2-1management may deduct the following from the state aid due to
2each school district pursuant to this chapter and shall pay the
3amounts to the respective area education agencies on a monthly
4basis from September 15 through June 15 during each school year
5for purposes of providing services to students enrolled in
6nonpublic schools within the boundaries of the area education
7agency:
8a. The amount calculated for media services for the school
9district that is attributable to the number of students
10enrolled in nonpublic schools within the school district who
11are provided with media services by an area education agency.
12b. The amount calculated for educational services for the
13school district that is attributable to the number of students
14enrolled in nonpublic schools within the school district who
15are provided with educational services by an area education
16agency.
17DIVISION II
18CORRECTIVE PROVISIONS
19 Sec. 7. Section 29D.4, subsection 2, paragraph b, as enacted
20by 2025 Iowa Acts, Senate File 619, section 8, is amended to
21read as follows:
22b. Moneys in the fund are appropriated to the department to
23provide loans to eligible entities pursuant to section 29D.9
24 29D.8, and for administration of the program as permitted
25under the STORM Act. Moneys in the fund shall not be used to
26provide a loan to a private entity for the acquisition of real
27property. Moneys in the fund shall not be considered part of
28the general fund of the state subject to appropriation for any
29other purpose by the general assembly, and in determining a
30general fund balance, shall not be included in the general fund
31of the state subject to section 16.31, insofar as section 16.31
32complies with the STORM Act.
33 Sec. 8. Section 144E.3, Code 2025, as amended by 2025 Iowa
34Acts, Senate File 233, section 2, if enacted, is amended to
35read as follows:
-3- 1144E.3 Manufacturer and eligible facility rights.
21. A manufacturer of an investigational drug, biological
3product, or device or a manufacturer operating within,
4and in compliance with all requirements applicable to, an
5eligible facility may make available, and an eligible patient,
6as applicable under section 144E.1 144E.2, subsection 2,
7paragraph “a” or “b”, may request from a manufacturer of
8an investigational drug, biological product, or device,
9or a manufacturer operating within, and in compliance with
10all requirements applicable to, an eligible facility, the
11manufacturer’s investigational drug, biological product, or
12device, or the manufacturer’s individualized investigational
13treatment under this chapter. This chapter does not require a
14manufacturer of an investigational drug, biological product,
15or device, or of an individualized investigational treatment
16to provide or otherwise make available the investigational
17drug, biological product, or device, or the individualized
18investigational treatment to an eligible patient.
192. An eligible facility, or a manufacturer described
20in subsection 1, that is in compliance with all applicable
21requirements,may do any of the following:
22a. Provide an investigational drug, biological product,
23or device, or an individualized investigational treatment
24to an eligible patient, as applicable under section 144E.1
25 144E.2, subsection 2, paragraph “a” or “b”, without receiving
26compensation.
27b. Require an eligible patient, as applicable under section
28144E.1 144E.2, subsection 2, paragraph “a” or “b”, to pay the
29costs of, or the costs associated with, the manufacture of the
30investigational drug, biological product, or device, or the
31individualized investigational treatment.
32 Sec. 9. Section 237.10, subsection 1, paragraph d, if
33enacted by 2025 Iowa Acts, House File 644, section 3, is
34amended to read as follows:
35d. (1) The department shall notify an individual licensee,
-4-1and the parents or guardians of a child, if the department
2delegates the department’s right to consent to emergency
3medical care and routine medical care on behalf of the child
4under section 232.2, subsection 12, paragraph “c”, to the
5individual licensee.
6(2) The department shall notify the department of
7education, an individual licensee, and the parents or guardians
8of a child if the department delegates the department’s right
9to consent to participation in an individualized education
10program on behalf of the child under section 232.2, subsection
1112, paragraph “c”, to the individual licensee.
12 Sec. 10. Section 237.10, subsection 1, paragraph d, if
13enacted by 2025 Iowa Acts, House File 644, section 7, is
14amended to read as follows:
15d. (1) The department shall notify an individual licensee
16or an approved kinship caregiver, and the parents or guardians
17of a child, if the department delegates the department’s right
18to consent to emergency medical care and routine medical care
19on behalf of the child under section 232.2, subsection 12,
20 paragraph “c”, to the individual licensee or approved kinship
21caregiver.
22(2) The department shall notify the department of
23education, an individual licensee or an approved kinship
24caregiver, and the parents or guardians of a child, if the
25department delegates the department’s right to consent to
26participation in an individualized education program on behalf
27of the child under section 232.2, subsection 12, paragraph “c”,
28to the individual licensee or approved kinship caregiver.
29 Sec. 11. Section 256.9, subsection 69, as enacted by 2025
30Iowa Acts, House File 782, section 1, is amended to read as
31follows:
3269. On or before May 1, 2025, develop and distribute
33to school districts, accredited nonpublic schools, charter
34schools, and innovation zone schools model policies that,
35if adopted, would satisfy the a school district’s, charter
-5-1school’s, or innovation zone school’s responsibilities under
2section 279.87 relating to policies governing student use of
3personal electronic devices.
4 Sec. 12. Section 280.36, subsection 1, as enacted by 2025
5Iowa Acts, Senate File 583, section 4, is amended to read as
6follows:
71. The board of directors of each school district and the
8authorities in charge of each accredited nonpublic school may
9establish a multidisciplinary school safety assessment team.
10If established, the multidisciplinary school safety assessment
11team shall coordinate resources and assess and intervene
12when a student enrolled in the school district or accredited
13nonpublic school exhibits behavior that may pose a threat to
14the safety of the school district or accredited nonpublic
15school, employees of the school district or accredited
16nonpublic school, or other student students enrolled in the
17school district or accredited nonpublic school.
18 Sec. 13. Section 299.1D, subsection 1, paragraph f, if
19enacted by 2025 Iowa Acts, House File 870, section 2, is
20amended to read as follows:
21f. The school district or accredited nonpublic school
22must not expend any moneys related to the course in religious
23instruction, not including de minimis administrative costs
24associated with processing notifications received under
25subsection 1 paragraph “a” and tracking the child’s attendance
26to ensure compliance with this section.
27 Sec. 14. Section 404A.3, subsection 3, paragraph b,
28subparagraph (5), subparagraph division (c), if enacted by 2025
29Iowa Acts, House File 975, section 19, is amended to read as
30follows:
31(c) Upon application of the eligible taxpayer made prior
32to the expiration of an extension under subparagraph division
33 (b), the authority may, at the discretion of the authority,
34extend the date by which the qualified rehabilitation project
35must be complete up to an additional twelve consecutive months.
-6-1The qualified eligible taxpayer must substantiate to the
2satisfaction of the authority that the requested extension is
3warranted due to extenuating circumstances outside the control
4of the eligible taxpayer.
5 Sec. 15. Section 510B.8E, subsection 3, unnumbered
6paragraph 1, if enacted by 2025 Iowa Acts, Senate File 383,
7section 7, is amended to read as follows:
8The pharmacy benefits manger manager shall respond to an
9appeal within seven business days after the date on which the
10pharmacy benefits manager receives the appeal.
11 Sec. 16. Section 514F.8, subsection 1A, paragraph c,
12subparagraph (8), if enacted by 2025 Iowa Acts, House File 303,
13section 1, is amended to read as follows:
14(8) The average and median time that elapsed between the
15submission of a nonurgent prior authorization request and a
16determination by the utilization review organization for the
17urgent nonurgent prior authorization request, aggregated for
18all health care services or items.
19 Sec. 17. Section 522F.4, subsection 2, as enacted by 2025
20Iowa Acts, Senate File 619, section 59, is amended to read as
21follows:
222. Any The fee for a criminal history check shall be
23the same as any applicable fee for a criminal history check
24pursuant to section 522B.5A.
25 Sec. 18. Section 522F.9, subsection 2, as enacted by 2025
26Iowa Acts, Senate File 619, section 64, is amended to read as
27follows:
282. Any The fee for a criminal history check shall be
29the same as any applicable fee for a criminal history check
30pursuant to section 522B.5A.
31 Sec. 19. CODE EDITOR DIRECTIVE. 2025 Iowa Acts, Senate File
32619, section 29, amends section 515.137A, subsections 3, 4, and
335, Code 2025, by striking the subsections and inserting in lieu
34thereof new subsections 3, 4, and 5, and, notwithstanding the
35Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10.
-7-1The Code editor is directed to codify 2025 Iowa Acts, Senate
2File 619, section 29, by striking section 515.137A, subsections
33, 4, and 5, Code 2025, and inserting in lieu thereof new
4subsections 3, 4, and 5, and then by amending section 515.137A,
5Code 2025, by adding new subsections 6, 7, 8, 9, and 10.
6 Sec. 20. EFFECTIVE DATE. The following, being deemed of
7immediate importance, takes effect upon enactment:
8The section of this division of this Act amending section
9256.9, subsection 69, as enacted by 2025 Iowa Acts, House File
10782, section 1.
11 Sec. 21. RETROACTIVE APPLICABILITY. The following applies
12retroactively to April 30, 2025:
13The section of this division of this Act amending section
14256.9, subsection 69, as enacted by 2025 Iowa Acts, House File
15782, section 1.
16DIVISION III
17CRYSTALLINE POLYMORPH PSILOCYBIN
18 Sec. 22. Section 124.201, subsection 5, if enacted by 2025
19Iowa Acts, House File 383, section 1, is amended to read as
20follows:
215. a. Notwithstanding section 124.204, subsection 4, a drug
22that contains the pharmaceutical composition of crystalline
23polymorph psilocybin, also known as COMP 360, or any other
24trade name approved by the United States food and drug
25administration, shall be immediately removed from schedule I
26under section 124.204, subsection 4, paragraph “s”, upon its
27approval by the United States food and drug administration and
28rescheduled based upon the recommendations of the United States
29food and drug administration and its listing in the federal
30Controlled Substances Act, 21 U.S.C.§812, and 21 C.F.R.
31§1308.14.
32b. Immediately upon the rescheduling of the drug under
33paragraph “a”, it shall be lawful to prescribe, distribute, and
34market the pharmaceutical composition of crystalline polymorph
35psilocybin, also known as COMP 360, or any other trade name
-8-1approved by the United States food and drug administration.
2DIVISION IV
3MEDICAL RESIDENCY AND FELLOWSHIP POSITIONS — RESIDENTS OF IOWA
4 Sec. 23. Section 262.9, subsection 39, paragraph e,
5subparagraph (2), if enacted by 2025 Iowa Acts, House File 516,
6section 1, is amended to read as follows:
7(2) An individual who has lived in Iowa for at least four
8consecutive years immediately preceding the date the individual
9applies for admission to begins classes at the college of
10medicine in the doctor of medicine program or the college of
11dentistry at the state university of Iowa, or for begins a
12residency at the university of Iowa hospitals and clinics.
13DIVISION V
14STATE MEMBERSHIP — REINSURANCE ASSOCIATION
15 Sec. 24. Section 513C.10, subsection 1, paragraph a, Code
162025, is amended to read as follows:
17a. All persons that provide health benefit plans in this
18state including insurers providing accident and sickness
19insurance under chapter 509, 514, or 514A, whether on an
20individual or group basis; fraternal benefit societies
21providing hospital, medical, or nursing benefits under chapter
22512B; and health maintenance organizations, other entities
23providing health insurance or health benefits subject to state
24insurance regulation, and all other insurers as designated
25by the board of directors of the Iowa comprehensive health
26insurance association with the approval of the commissioner
27shall be members of the association. However, the state,
28including a department, an independent agency, the state board
29of regents, and an institution under the control of the state
30board of regents, shall not be a member of the association.
31 Sec. 25. EFFECTIVE DATE. This division of this Act, being
32deemed of immediate importance, takes effect upon enactment.
33 Sec. 26. RETROACTIVE APPLICABILITY. This division of this
34Act applies retroactively to January 1, 2020.
35DIVISION VI
-9-1STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE — DEPARTMENT OF
2HEALTH AND HUMAN SERVICES INVESTIGATIONS
3 Sec. 27. NEW SECTION. 232E.1 Definitions.
4As used in this chapter, unless the context otherwise
5requires:
61. “Board of educational examiners” means the board created
7in section 256.146.
82. “Department” means the department of health and human
9services.
103. “Investigation” means the process by which the department
11responds to all accepted reports of alleged student abuse.
124. “Nonpublic school” means the same as defined in section
13280.2.
145. “Public school” means the same as defined in section
15280.2.
166. “Public school district” means a public school district
17as described in chapter 274, and includes a charter school
18under chapter 256E, or a charter school or an innovation zone
19school under chapter 256F.
207. “School employee” means any of the following:
21a. A person employed by a public school or a nonpublic
22school.
23b. A vendor, or an employee of a vendor, that provides goods
24or services to a public school or a nonpublic school.
25c. An agent, or an employee of an agent, of a public school
26or a nonpublic school.
27d. A volunteer under the direction and control of any of the
28following:
29(1) The board of directors or any administrator of a public
30school district.
31(2) The board or authorities in control of a nonpublic
32school.
33(3) The board of directors or administrator of an agency
34called upon by a school official to provide services to
35students in an educational capacity.
-10- 18. “Student” means a person enrolled in a public school,
2a nonpublic school, or a prekindergarten program in a public
3school or a nonpublic school.
49. “Student abuse” means any of the following which occur on
5school grounds during school time, or on or at a school-related
6curricular or extracurricular activity:
7a. Any nonaccidental physical injury, or an injury which
8does not match the history provided for how the injury
9occurred, suffered by a student as the result of an act or
10omission of a school employee, that is not otherwise excluded
11by section 280.21, subsection 2.
12b. The commission of a sexual offense under chapter 709,
13section 726.2, or section 728.12, subsection 1, with or to a
14student as a result of an act or omission of a school employee.
15c. An act or omission of a school employee which allows,
16permits, or encourages a student to engage in an act prohibited
17under section 725.1.
18 Sec. 28. NEW SECTION. 232E.2 Investigation of alleged
19student abuse by school employees — rules.
201. The department shall administer this chapter to provide
21for the investigation of reports of alleged student abuse by
22school employees as specified in this chapter.
232. a. If, during the child abuse intake process under
24chapter 232, subchapter III, part 2, the department receives
25a report from an identifiable source and the department
26determines the report constitutes an allegation of student
27abuse involving a school employee, the department shall notify
28the board of directors of the public school district or the
29authorities in charge of the nonpublic school associated with
30the school employee, and the board of educational examiners, of
31the determination.
32b. Upon notification under paragraph “a”, the board of
33directors of the public school district or the authorities in
34charge of the nonpublic school shall place the school employee
35on administrative leave and shall prohibit the school employee
-11-1from entering school property until the investigation is
2completed.
33. If the department determines the alleged student abuse
4constitutes a criminal act, the department shall do all of the
5following:
6a. Immediately refer the matter to, and jointly investigate
7the matter with, the appropriate law enforcement agency.
8b. Notify the board of directors of the public school
9district, or the authorities in charge of the nonpublic school,
10associated with the school employee of the referral under
11paragraph “a”.
12c. If the school employee is licensed, certified, or
13authorized by the board of educational examiners, or holds
14an active statement of recognition issued by the board of
15educational examiners, notify the board of educational
16examiners of the referral under paragraph “a”.
174. Following receipt of a report of alleged student abuse,
18the department shall do all of the following:
19a. Commence an investigation within twenty-four hours of
20receipt of the report.
21b. Complete the investigation within thirty business days of
22receipt of the report.
235. Upon completion of an investigation, the department
24shall submit a written investigation report to all of the
25following:
26a. The board of directors of the public school district, or
27the authorities in charge of the nonpublic school, associated
28with the school employee subject to the investigation.
29b. The board of educational examiners if the school
30employee subject to the investigation is licensed, certified,
31or authorized by the board of educational examiners, or holds
32an active statement of recognition issued by the board of
33educational examiners.
346. The department shall adopt rules pursuant to chapter
3517A, in consultation with the department of education, to
-12-1administer this chapter. Rules adopted by the department shall
2include rules regarding the intake and investigation processes,
3investigation reports, case and investigation record retention
4and dissemination, and case disposition.
57. The department shall maintain information and data
6regarding student abuse reports, investigations, and
7dispositions under this chapter separately from information
8and data regarding child abuse reports, assessments, and
9dispositions under chapter 232.
10DIVISION VII
11STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE — DEPARTMENT OF
12EDUCATION
13 Sec. 29. Section 280.17, Code 2025, is amended by striking
14the section and inserting in lieu thereof the following:
15280.17 Student abuse investigations — termination of
16employment.
171. The board of directors of a public school district and
18the authorities in charge of a nonpublic school shall comply
19with chapter 232E, and shall cooperate with the department of
20health and human services during an investigation commenced
21under chapter 232E.
222. The board of directors of a public school or the
23authorities in charge of a nonpublic school shall terminate the
24employment of a school employee if the board of directors or
25authorities in charge receive a written investigation report
26under section 232E.2, subsection 5, indicating the department
27of health and human services has determined the school employee
28committed student abuse.
293. The department of education, in consultation with the
30department of health and human services, shall adopt rules
31pursuant to chapter 17A, and a model policy, for the handling
32of investigations pursuant to chapter 232E.
33 Sec. 30. Section 321.375, subsection 3, paragraph d, Code
342025, is amended to read as follows:
35d. The commission of or conviction for a public offense as
-13-1defined by the Iowa criminal code, if the offense is relevant
2to and affects driving ability, or if the offense includes
3sexual involvement with a minor student with the intent to
4commit acts and practices proscribed under sections 709.2
5through 709.4, section 709.8, and sections 725.1 through 725.3,
6or is a violation of the rules of the department of education
7adopted to implement section 280.17 student abuse as defined
8in section 232E.1.
9DIVISION VIII
10school budgets — modified supplemental amounts
11 Sec. 31. Section 257.31, subsection 5, paragraph o, Code
122025, is amended to read as follows:
13o. (1) The percentage of students enrolled in the school
14district as the result of open enrollment under section
15282.18 is equal to or greater than forty-five percent of the
16total number of students enrolled in the school district.
17The committee shall not approve supplemental aid or a
18modified supplemental amount that exceeds an amount equal
19to fifty percent of the product of the net change in the
20school district’s expected enrollment due to open enrollment
21multiplied by the sum of the following amounts:
22(a) The difference between the district’s regular program
23district cost per pupil minus the regular program state cost
24per pupil.
25(b) The teacher salary supplement district cost per pupil.
26(c) (b) The professional development supplement district
27cost per pupil.
28(d) (c) The early intervention supplement district cost per
29pupil.
30(2) Prior to filing a request for supplemental aid or a
31modified supplemental amount based on the grounds specified
32in this paragraph, the board of directors shall hold a public
33hearing on the issue and shall publish the notice of the time
34and place of the public hearing. Notice of the time and place
35of the public hearing shall be published not less than ten nor
-14-1more than twenty days before the public hearing in a newspaper
2that is a newspaper of general circulation in the school
3district.
4(3) A school district is not eligible for supplemental aid
5or a modified supplemental amount under this paragraph if a
6majority of the students enrolled in the school district as
7the result of open enrollment are students receiving online
8instruction from a private provider under section 256.43,
9subsection 2.
10(4) A school district is only eligible for supplemental
11aid or a modified supplemental amount under this paragraph for
12the budget year beginning July 1, 2024 If a school district is
13granted a modified supplemental amount under this paragraph for
14a budget year beginning on or after July 1, 2025, the school
15district’s combined property tax rate per one thousand dollars
16for all school district levies for the succeeding budget year
17shall not exceed the combined property tax rate for all such
18levies for the budget year for which the modified supplemental
19amount was granted.
20 Sec. 32. REPEAL. 2024 Iowa Acts, chapter 1152, section 45,
21is repealed.
22 Sec. 33. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24 Sec. 34. APPLICABILITY. This division of this Act applies
25to school budget years beginning on or after July 1, 2025.
26DIVISION IX
27wagering taxes
28 Sec. 35. Section 99D.15, subsection 4, paragraph b, Code
292025, is amended to read as follows:
30b. If wagering on simultaneously telecast horse races and
31dog races is conducted by a licensee under section 99D.9D,
32a tax of two percent is imposed on the gross sum wagered by
33the pari-mutuel method on horse races and dog races which
34are simultaneously telecast in excess of twenty-five million
35dollars in a calendar year. Of the tax revenue collected
-15-1from simulcast horse races under this paragraph, one-half of
2one percent of the gross sum wagered shall be remitted to
3the treasurer of the county in which a horse racetrack is
4located in this state and licensed under this chapter. The
5tax revenue from simulcast horse races under this paragraph
6shall be deposited in the Iowa horse racing fund created in
7section 99D.27B. The remaining amount of tax revenue shall be
8deposited with the commission.
9 Sec. 36. Section 99D.17, Code 2025, is amended to read as
10follows:
1199D.17 Use of funds moneys.
12Funds Unless otherwise provided by section 99D.15 or another
13provision of law, moneys received pursuant to sections 99D.14
14and 99D.15 shall be deposited as provided in section 8.57,
15subsection 3. These funds moneys shall first be used to the
16extent appropriated by the general assembly. The commission
17is subject to the budget requirements of chapter 8 and the
18applicable auditing requirements and procedures of chapter 11.
19 Sec. 37. NEW SECTION. 99D.27B Iowa horse racing fund —
20advance deposit wagering tax.
211. An Iowa horse racing fund is created in the state
22treasury under the control of the commission.
232. The fund shall consist of tax revenue collected and
24deposited in the fund pursuant to subsection 6 and section
2599D.15, subsection 4, and such other moneys appropriated to,
26transferred to, or deposited in the fund.
273. a. Moneys in the fund are appropriated to the commission
28for distribution in a manner and in an amount as determined by
29the commission to individual entities or a recognized compact
30of entities tasked with the regulation of the horse racing
31industry in accordance with the federal Horseracing Integrity
32and Safety Act of 2020, 15 U.S.C.ch.57A.
33b. In the event that the federal Horseracing Integrity
34and Safety Act of 2020, 15 U.S.C.ch.57A, is repealed,
35moneys in the fund shall be transferred to the rebuild Iowa
-16-1infrastructure fund created in section 8.57.
24. Members of the commission and those acting on behalf of
3the commission assisting in the distribution of the moneys in
4the fund shall be held harmless against any claim of liability
5made by an individual or entity arising out of the distribution
6of the moneys from the fund by the commission.
75. Section 8.33 does not apply to moneys in the fund.
8Notwithstanding section 12C.7, subsection 2, interest or
9earnings on moneys deposited in the fund shall be credited to
10the fund.
116. A tax of two percent is imposed on the gross sum wagered
12by the pari-mutuel method as an advance deposit wager under
13section 99D.11, subsection 6, paragraph “c”. The tax imposed
14under this subsection is in lieu of any tax imposed on such
15wagers under section 99D.15. The tax revenue generated under
16this subsection shall be deposited in the fund.
17DIVISION X
18STATE FIRE MARSHAL STUDY
19 Sec. 38. STATE FIRE MARSHAL — COUNTYWIDE FIRE PROTECTION
20SERVICES STUDY.
211. The state fire marshal shall conduct a study of fire
22protection services in this state to analyze whether a
23structure of countywide fire protection services would maximize
24fire protection coverage and emergency response times. The
25study shall be conducted in consultation with representatives
26from the following stakeholders:
27a. The department of homeland security and emergency
28management.
29b. The Iowa association of professional fire chiefs.
30c. The Iowa fire chiefs’ association.
31d. The Iowa firefighters association.
32e. The Iowa professional fire fighters.
33f. The Iowa emergency management association.
34g. At least one attorney licensed to practice law in this
35state with experience representing entities associated with
-17-1fire protection services.
2h. At least one representative from a city having a
3population of thirty-seven thousand or more as determined by
4the 2020 federal decennial census.
5i. At least one representative from a city having a
6population of less than five thousand as determined by the 2020
7federal decennial census.
8j. At least one representative from a county having a
9population of ninety thousand or more as determined by the 2020
10federal decennial census.
11k. Four members of the general assembly serving as
12ex officio, nonvoting members, one representative to be
13appointed by the speaker of the house of representatives, one
14representative to be appointed by the minority leader of the
15house of representatives, one senator to be appointed by the
16president of the senate after consultation with the majority
17leader of the senate, and one senator to be appointed by the
18minority leader of the senate.
192. The countywide fire protection services study shall
20include all of the following:
21a. A cost analysis for upfront and ongoing costs to provide
22consolidated countywide fire protection services systems. The
23analysis and recommendations shall include proposed funding
24mechanisms and potential consolidated funding resources that
25comply with local, state, and federal law. The analysis shall
26also include the potential effects countywide fire protection
27services could have on local authority expenditures and
28budgets.
29b. An analysis of current fire protection coverage
30including current response times and recommendations for
31placement of service stations to maximize fire protection
32coverage and emergency response times in the most efficient and
33cost-effective manner.
34c. An analysis of current and future staffing needs
35including a proposed employment structure for countywide
-18-1fire protection services that focuses on adequate employee
2pay and volunteer staffing, including benefits, stipends, or
3other compensation allowed in accordance with local, state, or
4federal law.
5d. An analysis of current fire protection services
6equipment and future fire protection services equipment needs
7including proposed placement of fire protection services
8equipment in service stations to maximize fire protection
9coverage and emergency response times.
10e. An analysis of current communication and dispatch
11challenges including proposed recommendations for more
12efficient and effective communications.
13f. An analysis of the need for city and township fire
14protection services in relation to the implementation of a
15countywide fire protection service.
16g. An analysis of existing countywide fire protection
17service programs in this state including outlining current
18processes and procedures. The analysis under this paragraph
19must include outlines of any current or proposed fire
20protection service programs under chapter 28E, 357B, 357F,
21357G, or 357J, and any other legal agreement, contract, or
22consolidated effort, including as part of a district.
23h. An analysis of countywide fire protection services in
24other states, with an emphasis on midwest states, including an
25analysis of those fire protection programs in comparison to the
26fire protection needs of this state.
27i. Recommendations for the implementation of countywide
28fire protection services in this state including proposed
29functionality and an emphasis on the potential impact of
30implementation on the four most populous counties in this
31state as determined by the 2020 federal decennial census,
32along with surrounding counties if a multicounty approach to
33fire protection services would be more beneficial based on the
34study’s findings.
353. The state fire marshal shall submit a report of the
-19-1study’s findings to the general assembly on or before June 30,
22026.
3 Sec. 39. EFFECTIVE DATE. This division of this Act, being
4deemed of immediate importance, takes effect upon enactment.
5DIVISION XI
6INTERIM STUDies
7 Sec. 40. INTERIM STUDY COMMITTEE — ALL-TERRAIN VEHICLES
8AND OFF-ROAD UTILITY VEHICLES ON HIGHWAYS.
91. The legislative council is requested to establish an
10interim study committee to meet during the 2025 legislative
11interim to examine policy matters and recommend statutory
12changes relating to the operation of all-terrain vehicles
13and off-road utility vehicles on highways, including but not
14limited to the following:
15a. Requiring registration and a fee for all-terrain
16vehicles and off-road utility vehicles to be operated on a
17highway, other than the registration required for such vehicles
18to be operated on public land, public ice, or a designated
19riding trail of this state.
20b. Consolidating Code provisions that regulate the
21operation of all-terrain vehicles and off-road utility
22vehicles.
232. The interim study committee shall consist of three
24members of the senate, two of whom shall be appointed by
25the majority leader of the senate and one of whom shall be
26appointed by the minority leader of the senate, and three
27members of the house of representatives, two of whom shall be
28appointed by the speaker of the house of representatives and
29one of whom shall be appointed by the minority leader of the
30house of representatives.
313. The interim study committee, in consultation with
32the director of the department of transportation or the
33director’s designee, the commissioner of public safety or the
34commissioner’s designee, and the director of the department of
35natural resources or the director’s designee, shall submit a
-20-1report with its findings and recommendations to the general
2assembly no later than January 12, 2026. A proposed bill by
3the interim study committee may be filed in lieu of submitting
4a final report.
5 Sec. 41. SUBACUTE MENTAL HEALTH CARE SERVICES — INTERIM
6STUDY COMMITTEE.
71. The legislative council is requested to establish an
8interim study committee during the 2025 legislative interim
9to review the following topics as related to subacute mental
10health care services:
11a. The mental health services that should be available at a
12subacute level of care.
13b. Whether subacute mental health care services would be
14most effectively delivered through a single subacute mental
15health care facility serving the entire state, several regional
16subacute mental health care facilities, or local options for
17subacute mental health care services.
18c. The mental health care providers that could best provide
19subacute mental health care services.
20d. The requirements for an individual’s commitment, whether
21voluntary or involuntary, to a subacute mental health care
22facility or for subacute mental health care services.
23e. The changes that may be required to the current
24commitment process to allow for an individual’s commitment to
25a subacute mental health care facility or for subacute mental
26health care services.
27f. The requirements for an individual’s discharge from a
28subacute mental health care facility or from subacute mental
29health care services.
302. The interim study committee shall consist of five members
31of the senate and five members of the house of representatives.
32Three members of the senate shall be appointed by the majority
33leader of the senate and two members of the senate shall be
34appointed by the minority leader of the senate. Three members
35of the house of representatives shall be appointed by the
-21-1speaker of the house of representatives and two members of the
2house of representatives shall be appointed by the minority
3leader of the house of representatives.
43. The interim study committee shall report the committee’s
5findings and recommendations to the general assembly no later
6than January 12, 2026.
7DIVISION XII
8911 emergency communications services
9 Sec. 42. NEW SECTION. 34A.12 Delivery of 911 calls —
10reimbursement.
11The program manager may request reimbursement from each
12joint 911 service board for reasonable costs under section
1334A.7A related to the delivery of 911 call traffic to public
14safety answering points. Upon request, each joint 911 service
15board shall reimburse the department of homeland security and
16emergency management for such costs within thirty days.
ns/jh/mb
2making, modifying, limiting, or reducing appropriations,
3distributions, or transfers; authorizing expenditure of
4unappropriated moneys in special funds; providing for
5properly related matters including crystalline polymorph
6psilocybin, medical residency and fellowship positions,
7state membership in the Iowa individual health benefit
8reinsurance association, student abuse by school employees,
9modified supplemental amounts for school budgets, wagering
10taxes, a state fire marshal study, certain legislative
11interim studies, and 911 emergency communications
12services; making corrections; and including effective date,
13applicability, and retroactive applicability provisions.
14BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE
3AUTHORITY
4 Section 1. LIMITATIONS OF STANDING APPROPRIATIONS — FY
52025-2026. Notwithstanding the standing appropriation in the
6following designated section for the fiscal year beginning July
71, 2025, and ending June 30, 2026, the amount appropriated from
8the general fund of the state pursuant to that section for the
9following designated purpose shall not exceed the following
10amount:
11For payment of claims for nonpublic school pupil
12transportation under section 285.2:
.................................................. $138,997,091
14If total approved claims for reimbursement for nonpublic
15school pupil transportation exceed the amount appropriated in
16accordance with this section, the department of education shall
17prorate the amount of each approved claim.
18 Sec. 2. INSTRUCTIONAL SUPPORT STATE AID — FY 2025-2026. In
19lieu of the appropriation provided in section 257.20,
20subsection 2, the appropriation for the fiscal year
21beginning July 1, 2025, and ending June 30, 2026, for paying
22instructional support state aid under section 257.20 for the
23fiscal year is zero.
24 Sec. 3. SPECIAL FUNDS — SALARY ADJUSTMENTS — FY
252025-2026. For the fiscal year beginning July 1, 2025, and
26ending June 30, 2026, salary adjustments otherwise provided
27may be funded as determined by the department of management,
28subject to any applicable constitutional limitation, using
29unappropriated moneys remaining in the commerce revolving
30fund, the gaming enforcement revolving fund, the gaming
31regulatory revolving fund, the primary road fund, the road
32use tax fund, the fish and game protection fund, and the Iowa
33public employees’ retirement fund, and in other departmental
34revolving, trust, or special funds for which the general
35assembly has not made an operating budget appropriation.
-1-1 Sec. 4. IOWA ECONOMIC EMERGENCY FUND EXCESS — USE FOR
2FOUNDATION AID. Of the excess moneys transferred to the
3general fund of the state under section 8.55, subsection 2,
4paragraph “b”, for the fiscal year beginning July 1, 2024,
5$21,881,303 shall be used in lieu of a like amount of other
6general fund moneys to pay foundation aid under chapter 257,
7as described in section 257.16, for the fiscal year beginning
8July 1, 2025. This section is based on the application of
9assessment limitations calculated under section 441.21 due to
10the enactment of 2023 Iowa Acts, chapter 5.
11 Sec. 5. Section 257.35, subsection 2, Code 2025, is amended
12to read as follows:
132. Notwithstanding the deduction and payment under
14subsection 1, the The amounts specified for school districts
15and area education agencies in subsection 1, paragraph “a”
16section 257.10, subsection 7, for the fiscal year beginning
17July 1, 2024 2025, and each succeeding fiscal year, shall be
18reduced by the department of management by seven million five
19hundred thousand dollars. The department of management shall
20calculate a state aid reduction such that such amounts shall
21be reduced proportionally to the amount that the district or
22agency would otherwise have received under this section if the
23reduction imposed pursuant to this subsection did not apply
24 257.10, subsection 7.
25 Sec. 6. Section 257.35, Code 2025, is amended by adding the
26following new subsections:
27 NEW SUBSECTION. 19A. In addition to the state aid reduction
28applicable pursuant to subsection 2, the state aid portion of
29the amounts specified for school districts in section 257.10,
30subsection 7, for the fiscal year beginning July 1, 2025, and
31ending June 30, 2026, shall be reduced by the department of
32management by twenty-five million dollars. The reductions
33for each district shall be prorated based on the proportional
34reduction that the district receives under subsection 2.
35 NEW SUBSECTION. 19B. The director of the department of
-2-1management may deduct the following from the state aid due to
2each school district pursuant to this chapter and shall pay the
3amounts to the respective area education agencies on a monthly
4basis from September 15 through June 15 during each school year
5for purposes of providing services to students enrolled in
6nonpublic schools within the boundaries of the area education
7agency:
8a. The amount calculated for media services for the school
9district that is attributable to the number of students
10enrolled in nonpublic schools within the school district who
11are provided with media services by an area education agency.
12b. The amount calculated for educational services for the
13school district that is attributable to the number of students
14enrolled in nonpublic schools within the school district who
15are provided with educational services by an area education
16agency.
17DIVISION II
18CORRECTIVE PROVISIONS
19 Sec. 7. Section 29D.4, subsection 2, paragraph b, as enacted
20by 2025 Iowa Acts, Senate File 619, section 8, is amended to
21read as follows:
22b. Moneys in the fund are appropriated to the department to
23provide loans to eligible entities pursuant to section 29D.9
24 29D.8, and for administration of the program as permitted
25under the STORM Act. Moneys in the fund shall not be used to
26provide a loan to a private entity for the acquisition of real
27property. Moneys in the fund shall not be considered part of
28the general fund of the state subject to appropriation for any
29other purpose by the general assembly, and in determining a
30general fund balance, shall not be included in the general fund
31of the state subject to section 16.31, insofar as section 16.31
32complies with the STORM Act.
33 Sec. 8. Section 144E.3, Code 2025, as amended by 2025 Iowa
34Acts, Senate File 233, section 2, if enacted, is amended to
35read as follows:
-3- 1144E.3 Manufacturer and eligible facility rights.
21. A manufacturer of an investigational drug, biological
3product, or device or a manufacturer operating within,
4and in compliance with all requirements applicable to, an
5eligible facility may make available, and an eligible patient,
6as applicable under section 144E.1 144E.2, subsection 2,
7paragraph “a” or “b”, may request from a manufacturer of
8an investigational drug, biological product, or device,
9or a manufacturer operating within, and in compliance with
10all requirements applicable to, an eligible facility, the
11manufacturer’s investigational drug, biological product, or
12device, or the manufacturer’s individualized investigational
13treatment under this chapter. This chapter does not require a
14manufacturer of an investigational drug, biological product,
15or device, or of an individualized investigational treatment
16to provide or otherwise make available the investigational
17drug, biological product, or device, or the individualized
18investigational treatment to an eligible patient.
192. An eligible facility, or a manufacturer described
20in subsection 1, that is in compliance with all applicable
21requirements,may do any of the following:
22a. Provide an investigational drug, biological product,
23or device, or an individualized investigational treatment
24to an eligible patient, as applicable under section 144E.1
25 144E.2, subsection 2, paragraph “a” or “b”, without receiving
26compensation.
27b. Require an eligible patient, as applicable under section
28144E.1 144E.2, subsection 2, paragraph “a” or “b”, to pay the
29costs of, or the costs associated with, the manufacture of the
30investigational drug, biological product, or device, or the
31individualized investigational treatment.
32 Sec. 9. Section 237.10, subsection 1, paragraph d, if
33enacted by 2025 Iowa Acts, House File 644, section 3, is
34amended to read as follows:
35d. (1) The department shall notify an individual licensee,
-4-1and the parents or guardians of a child, if the department
2delegates the department’s right to consent to emergency
3medical care and routine medical care on behalf of the child
4under section 232.2, subsection 12, paragraph “c”, to the
5individual licensee.
6(2) The department shall notify the department of
7education, an individual licensee, and the parents or guardians
8of a child if the department delegates the department’s right
9to consent to participation in an individualized education
10program on behalf of the child under section 232.2, subsection
1112, paragraph “c”, to the individual licensee.
12 Sec. 10. Section 237.10, subsection 1, paragraph d, if
13enacted by 2025 Iowa Acts, House File 644, section 7, is
14amended to read as follows:
15d. (1) The department shall notify an individual licensee
16or an approved kinship caregiver, and the parents or guardians
17of a child, if the department delegates the department’s right
18to consent to emergency medical care and routine medical care
19on behalf of the child under section 232.2, subsection 12,
20 paragraph “c”, to the individual licensee or approved kinship
21caregiver.
22(2) The department shall notify the department of
23education, an individual licensee or an approved kinship
24caregiver, and the parents or guardians of a child, if the
25department delegates the department’s right to consent to
26participation in an individualized education program on behalf
27of the child under section 232.2, subsection 12, paragraph “c”,
28to the individual licensee or approved kinship caregiver.
29 Sec. 11. Section 256.9, subsection 69, as enacted by 2025
30Iowa Acts, House File 782, section 1, is amended to read as
31follows:
3269. On or before May 1, 2025, develop and distribute
33to school districts, accredited nonpublic schools, charter
34schools, and innovation zone schools model policies that,
35if adopted, would satisfy the a school district’s, charter
-5-1school’s, or innovation zone school’s responsibilities under
2section 279.87 relating to policies governing student use of
3personal electronic devices.
4 Sec. 12. Section 280.36, subsection 1, as enacted by 2025
5Iowa Acts, Senate File 583, section 4, is amended to read as
6follows:
71. The board of directors of each school district and the
8authorities in charge of each accredited nonpublic school may
9establish a multidisciplinary school safety assessment team.
10If established, the multidisciplinary school safety assessment
11team shall coordinate resources and assess and intervene
12when a student enrolled in the school district or accredited
13nonpublic school exhibits behavior that may pose a threat to
14the safety of the school district or accredited nonpublic
15school, employees of the school district or accredited
16nonpublic school, or other student students enrolled in the
17school district or accredited nonpublic school.
18 Sec. 13. Section 299.1D, subsection 1, paragraph f, if
19enacted by 2025 Iowa Acts, House File 870, section 2, is
20amended to read as follows:
21f. The school district or accredited nonpublic school
22must not expend any moneys related to the course in religious
23instruction, not including de minimis administrative costs
24associated with processing notifications received under
25subsection 1 paragraph “a” and tracking the child’s attendance
26to ensure compliance with this section.
27 Sec. 14. Section 404A.3, subsection 3, paragraph b,
28subparagraph (5), subparagraph division (c), if enacted by 2025
29Iowa Acts, House File 975, section 19, is amended to read as
30follows:
31(c) Upon application of the eligible taxpayer made prior
32to the expiration of an extension under subparagraph division
33 (b), the authority may, at the discretion of the authority,
34extend the date by which the qualified rehabilitation project
35must be complete up to an additional twelve consecutive months.
-6-1The qualified eligible taxpayer must substantiate to the
2satisfaction of the authority that the requested extension is
3warranted due to extenuating circumstances outside the control
4of the eligible taxpayer.
5 Sec. 15. Section 510B.8E, subsection 3, unnumbered
6paragraph 1, if enacted by 2025 Iowa Acts, Senate File 383,
7section 7, is amended to read as follows:
8The pharmacy benefits manger manager shall respond to an
9appeal within seven business days after the date on which the
10pharmacy benefits manager receives the appeal.
11 Sec. 16. Section 514F.8, subsection 1A, paragraph c,
12subparagraph (8), if enacted by 2025 Iowa Acts, House File 303,
13section 1, is amended to read as follows:
14(8) The average and median time that elapsed between the
15submission of a nonurgent prior authorization request and a
16determination by the utilization review organization for the
17urgent nonurgent prior authorization request, aggregated for
18all health care services or items.
19 Sec. 17. Section 522F.4, subsection 2, as enacted by 2025
20Iowa Acts, Senate File 619, section 59, is amended to read as
21follows:
222. Any The fee for a criminal history check shall be
23the same as any applicable fee for a criminal history check
24pursuant to section 522B.5A.
25 Sec. 18. Section 522F.9, subsection 2, as enacted by 2025
26Iowa Acts, Senate File 619, section 64, is amended to read as
27follows:
282. Any The fee for a criminal history check shall be
29the same as any applicable fee for a criminal history check
30pursuant to section 522B.5A.
31 Sec. 19. CODE EDITOR DIRECTIVE. 2025 Iowa Acts, Senate File
32619, section 29, amends section 515.137A, subsections 3, 4, and
335, Code 2025, by striking the subsections and inserting in lieu
34thereof new subsections 3, 4, and 5, and, notwithstanding the
35Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10.
-7-1The Code editor is directed to codify 2025 Iowa Acts, Senate
2File 619, section 29, by striking section 515.137A, subsections
33, 4, and 5, Code 2025, and inserting in lieu thereof new
4subsections 3, 4, and 5, and then by amending section 515.137A,
5Code 2025, by adding new subsections 6, 7, 8, 9, and 10.
6 Sec. 20. EFFECTIVE DATE. The following, being deemed of
7immediate importance, takes effect upon enactment:
8The section of this division of this Act amending section
9256.9, subsection 69, as enacted by 2025 Iowa Acts, House File
10782, section 1.
11 Sec. 21. RETROACTIVE APPLICABILITY. The following applies
12retroactively to April 30, 2025:
13The section of this division of this Act amending section
14256.9, subsection 69, as enacted by 2025 Iowa Acts, House File
15782, section 1.
16DIVISION III
17CRYSTALLINE POLYMORPH PSILOCYBIN
18 Sec. 22. Section 124.201, subsection 5, if enacted by 2025
19Iowa Acts, House File 383, section 1, is amended to read as
20follows:
215. a. Notwithstanding section 124.204, subsection 4, a drug
22that contains the pharmaceutical composition of crystalline
23polymorph psilocybin, also known as COMP 360, or any other
24trade name approved by the United States food and drug
25administration, shall be immediately removed from schedule I
26under section 124.204, subsection 4, paragraph “s”, upon its
27approval by the United States food and drug administration and
28rescheduled based upon the recommendations of the United States
29food and drug administration and its listing in the federal
30Controlled Substances Act, 21 U.S.C.§812, and 21 C.F.R.
31§1308.14.
32b. Immediately upon the rescheduling of the drug under
33paragraph “a”, it shall be lawful to prescribe, distribute, and
34market the pharmaceutical composition of crystalline polymorph
35psilocybin, also known as COMP 360, or any other trade name
-8-1approved by the United States food and drug administration.
2DIVISION IV
3MEDICAL RESIDENCY AND FELLOWSHIP POSITIONS — RESIDENTS OF IOWA
4 Sec. 23. Section 262.9, subsection 39, paragraph e,
5subparagraph (2), if enacted by 2025 Iowa Acts, House File 516,
6section 1, is amended to read as follows:
7(2) An individual who has lived in Iowa for at least four
8consecutive years immediately preceding the date the individual
9applies for admission to begins classes at the college of
10medicine in the doctor of medicine program or the college of
11dentistry at the state university of Iowa, or for begins a
12residency at the university of Iowa hospitals and clinics.
13DIVISION V
14STATE MEMBERSHIP — REINSURANCE ASSOCIATION
15 Sec. 24. Section 513C.10, subsection 1, paragraph a, Code
162025, is amended to read as follows:
17a. All persons that provide health benefit plans in this
18state including insurers providing accident and sickness
19insurance under chapter 509, 514, or 514A, whether on an
20individual or group basis; fraternal benefit societies
21providing hospital, medical, or nursing benefits under chapter
22512B; and health maintenance organizations, other entities
23providing health insurance or health benefits subject to state
24insurance regulation, and all other insurers as designated
25by the board of directors of the Iowa comprehensive health
26insurance association with the approval of the commissioner
27shall be members of the association. However, the state,
28including a department, an independent agency, the state board
29of regents, and an institution under the control of the state
30board of regents, shall not be a member of the association.
31 Sec. 25. EFFECTIVE DATE. This division of this Act, being
32deemed of immediate importance, takes effect upon enactment.
33 Sec. 26. RETROACTIVE APPLICABILITY. This division of this
34Act applies retroactively to January 1, 2020.
35DIVISION VI
-9-1STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE — DEPARTMENT OF
2HEALTH AND HUMAN SERVICES INVESTIGATIONS
3 Sec. 27. NEW SECTION. 232E.1 Definitions.
4As used in this chapter, unless the context otherwise
5requires:
61. “Board of educational examiners” means the board created
7in section 256.146.
82. “Department” means the department of health and human
9services.
103. “Investigation” means the process by which the department
11responds to all accepted reports of alleged student abuse.
124. “Nonpublic school” means the same as defined in section
13280.2.
145. “Public school” means the same as defined in section
15280.2.
166. “Public school district” means a public school district
17as described in chapter 274, and includes a charter school
18under chapter 256E, or a charter school or an innovation zone
19school under chapter 256F.
207. “School employee” means any of the following:
21a. A person employed by a public school or a nonpublic
22school.
23b. A vendor, or an employee of a vendor, that provides goods
24or services to a public school or a nonpublic school.
25c. An agent, or an employee of an agent, of a public school
26or a nonpublic school.
27d. A volunteer under the direction and control of any of the
28following:
29(1) The board of directors or any administrator of a public
30school district.
31(2) The board or authorities in control of a nonpublic
32school.
33(3) The board of directors or administrator of an agency
34called upon by a school official to provide services to
35students in an educational capacity.
-10- 18. “Student” means a person enrolled in a public school,
2a nonpublic school, or a prekindergarten program in a public
3school or a nonpublic school.
49. “Student abuse” means any of the following which occur on
5school grounds during school time, or on or at a school-related
6curricular or extracurricular activity:
7a. Any nonaccidental physical injury, or an injury which
8does not match the history provided for how the injury
9occurred, suffered by a student as the result of an act or
10omission of a school employee, that is not otherwise excluded
11by section 280.21, subsection 2.
12b. The commission of a sexual offense under chapter 709,
13section 726.2, or section 728.12, subsection 1, with or to a
14student as a result of an act or omission of a school employee.
15c. An act or omission of a school employee which allows,
16permits, or encourages a student to engage in an act prohibited
17under section 725.1.
18 Sec. 28. NEW SECTION. 232E.2 Investigation of alleged
19student abuse by school employees — rules.
201. The department shall administer this chapter to provide
21for the investigation of reports of alleged student abuse by
22school employees as specified in this chapter.
232. a. If, during the child abuse intake process under
24chapter 232, subchapter III, part 2, the department receives
25a report from an identifiable source and the department
26determines the report constitutes an allegation of student
27abuse involving a school employee, the department shall notify
28the board of directors of the public school district or the
29authorities in charge of the nonpublic school associated with
30the school employee, and the board of educational examiners, of
31the determination.
32b. Upon notification under paragraph “a”, the board of
33directors of the public school district or the authorities in
34charge of the nonpublic school shall place the school employee
35on administrative leave and shall prohibit the school employee
-11-1from entering school property until the investigation is
2completed.
33. If the department determines the alleged student abuse
4constitutes a criminal act, the department shall do all of the
5following:
6a. Immediately refer the matter to, and jointly investigate
7the matter with, the appropriate law enforcement agency.
8b. Notify the board of directors of the public school
9district, or the authorities in charge of the nonpublic school,
10associated with the school employee of the referral under
11paragraph “a”.
12c. If the school employee is licensed, certified, or
13authorized by the board of educational examiners, or holds
14an active statement of recognition issued by the board of
15educational examiners, notify the board of educational
16examiners of the referral under paragraph “a”.
174. Following receipt of a report of alleged student abuse,
18the department shall do all of the following:
19a. Commence an investigation within twenty-four hours of
20receipt of the report.
21b. Complete the investigation within thirty business days of
22receipt of the report.
235. Upon completion of an investigation, the department
24shall submit a written investigation report to all of the
25following:
26a. The board of directors of the public school district, or
27the authorities in charge of the nonpublic school, associated
28with the school employee subject to the investigation.
29b. The board of educational examiners if the school
30employee subject to the investigation is licensed, certified,
31or authorized by the board of educational examiners, or holds
32an active statement of recognition issued by the board of
33educational examiners.
346. The department shall adopt rules pursuant to chapter
3517A, in consultation with the department of education, to
-12-1administer this chapter. Rules adopted by the department shall
2include rules regarding the intake and investigation processes,
3investigation reports, case and investigation record retention
4and dissemination, and case disposition.
57. The department shall maintain information and data
6regarding student abuse reports, investigations, and
7dispositions under this chapter separately from information
8and data regarding child abuse reports, assessments, and
9dispositions under chapter 232.
10DIVISION VII
11STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE — DEPARTMENT OF
12EDUCATION
13 Sec. 29. Section 280.17, Code 2025, is amended by striking
14the section and inserting in lieu thereof the following:
15280.17 Student abuse investigations — termination of
16employment.
171. The board of directors of a public school district and
18the authorities in charge of a nonpublic school shall comply
19with chapter 232E, and shall cooperate with the department of
20health and human services during an investigation commenced
21under chapter 232E.
222. The board of directors of a public school or the
23authorities in charge of a nonpublic school shall terminate the
24employment of a school employee if the board of directors or
25authorities in charge receive a written investigation report
26under section 232E.2, subsection 5, indicating the department
27of health and human services has determined the school employee
28committed student abuse.
293. The department of education, in consultation with the
30department of health and human services, shall adopt rules
31pursuant to chapter 17A, and a model policy, for the handling
32of investigations pursuant to chapter 232E.
33 Sec. 30. Section 321.375, subsection 3, paragraph d, Code
342025, is amended to read as follows:
35d. The commission of or conviction for a public offense as
-13-1defined by the Iowa criminal code, if the offense is relevant
2to and affects driving ability, or if the offense includes
3sexual involvement with a minor student with the intent to
4commit acts and practices proscribed under sections 709.2
5through 709.4, section 709.8, and sections 725.1 through 725.3,
6or is a violation of the rules of the department of education
7adopted to implement section 280.17 student abuse as defined
8in section 232E.1.
9DIVISION VIII
10school budgets — modified supplemental amounts
11 Sec. 31. Section 257.31, subsection 5, paragraph o, Code
122025, is amended to read as follows:
13o. (1) The percentage of students enrolled in the school
14district as the result of open enrollment under section
15282.18 is equal to or greater than forty-five percent of the
16total number of students enrolled in the school district.
17The committee shall not approve supplemental aid or a
18modified supplemental amount that exceeds an amount equal
19to fifty percent of the product of the net change in the
20school district’s expected enrollment due to open enrollment
21multiplied by the sum of the following amounts:
22(a) The difference between the district’s regular program
23district cost per pupil minus the regular program state cost
24per pupil.
25(b) The teacher salary supplement district cost per pupil.
26(c) (b) The professional development supplement district
27cost per pupil.
28(d) (c) The early intervention supplement district cost per
29pupil.
30(2) Prior to filing a request for supplemental aid or a
31modified supplemental amount based on the grounds specified
32in this paragraph, the board of directors shall hold a public
33hearing on the issue and shall publish the notice of the time
34and place of the public hearing. Notice of the time and place
35of the public hearing shall be published not less than ten nor
-14-1more than twenty days before the public hearing in a newspaper
2that is a newspaper of general circulation in the school
3district.
4(3) A school district is not eligible for supplemental aid
5or a modified supplemental amount under this paragraph if a
6majority of the students enrolled in the school district as
7the result of open enrollment are students receiving online
8instruction from a private provider under section 256.43,
9subsection 2.
10(4) A school district is only eligible for supplemental
11aid or a modified supplemental amount under this paragraph for
12the budget year beginning July 1, 2024 If a school district is
13granted a modified supplemental amount under this paragraph for
14a budget year beginning on or after July 1, 2025, the school
15district’s combined property tax rate per one thousand dollars
16for all school district levies for the succeeding budget year
17shall not exceed the combined property tax rate for all such
18levies for the budget year for which the modified supplemental
19amount was granted.
20 Sec. 32. REPEAL. 2024 Iowa Acts, chapter 1152, section 45,
21is repealed.
22 Sec. 33. EFFECTIVE DATE. This division of this Act, being
23deemed of immediate importance, takes effect upon enactment.
24 Sec. 34. APPLICABILITY. This division of this Act applies
25to school budget years beginning on or after July 1, 2025.
26DIVISION IX
27wagering taxes
28 Sec. 35. Section 99D.15, subsection 4, paragraph b, Code
292025, is amended to read as follows:
30b. If wagering on simultaneously telecast horse races and
31dog races is conducted by a licensee under section 99D.9D,
32a tax of two percent is imposed on the gross sum wagered by
33the pari-mutuel method on horse races and dog races which
34are simultaneously telecast in excess of twenty-five million
35dollars in a calendar year. Of the tax revenue collected
-15-1from simulcast horse races under this paragraph, one-half of
2one percent of the gross sum wagered shall be remitted to
3the treasurer of the county in which a horse racetrack is
4located in this state and licensed under this chapter. The
5tax revenue from simulcast horse races under this paragraph
6shall be deposited in the Iowa horse racing fund created in
7section 99D.27B. The remaining amount of tax revenue shall be
8deposited with the commission.
9 Sec. 36. Section 99D.17, Code 2025, is amended to read as
10follows:
1199D.17 Use of funds moneys.
12Funds Unless otherwise provided by section 99D.15 or another
13provision of law, moneys received pursuant to sections 99D.14
14and 99D.15 shall be deposited as provided in section 8.57,
15subsection 3. These funds moneys shall first be used to the
16extent appropriated by the general assembly. The commission
17is subject to the budget requirements of chapter 8 and the
18applicable auditing requirements and procedures of chapter 11.
19 Sec. 37. NEW SECTION. 99D.27B Iowa horse racing fund —
20advance deposit wagering tax.
211. An Iowa horse racing fund is created in the state
22treasury under the control of the commission.
232. The fund shall consist of tax revenue collected and
24deposited in the fund pursuant to subsection 6 and section
2599D.15, subsection 4, and such other moneys appropriated to,
26transferred to, or deposited in the fund.
273. a. Moneys in the fund are appropriated to the commission
28for distribution in a manner and in an amount as determined by
29the commission to individual entities or a recognized compact
30of entities tasked with the regulation of the horse racing
31industry in accordance with the federal Horseracing Integrity
32and Safety Act of 2020, 15 U.S.C.ch.57A.
33b. In the event that the federal Horseracing Integrity
34and Safety Act of 2020, 15 U.S.C.ch.57A, is repealed,
35moneys in the fund shall be transferred to the rebuild Iowa
-16-1infrastructure fund created in section 8.57.
24. Members of the commission and those acting on behalf of
3the commission assisting in the distribution of the moneys in
4the fund shall be held harmless against any claim of liability
5made by an individual or entity arising out of the distribution
6of the moneys from the fund by the commission.
75. Section 8.33 does not apply to moneys in the fund.
8Notwithstanding section 12C.7, subsection 2, interest or
9earnings on moneys deposited in the fund shall be credited to
10the fund.
116. A tax of two percent is imposed on the gross sum wagered
12by the pari-mutuel method as an advance deposit wager under
13section 99D.11, subsection 6, paragraph “c”. The tax imposed
14under this subsection is in lieu of any tax imposed on such
15wagers under section 99D.15. The tax revenue generated under
16this subsection shall be deposited in the fund.
17DIVISION X
18STATE FIRE MARSHAL STUDY
19 Sec. 38. STATE FIRE MARSHAL — COUNTYWIDE FIRE PROTECTION
20SERVICES STUDY.
211. The state fire marshal shall conduct a study of fire
22protection services in this state to analyze whether a
23structure of countywide fire protection services would maximize
24fire protection coverage and emergency response times. The
25study shall be conducted in consultation with representatives
26from the following stakeholders:
27a. The department of homeland security and emergency
28management.
29b. The Iowa association of professional fire chiefs.
30c. The Iowa fire chiefs’ association.
31d. The Iowa firefighters association.
32e. The Iowa professional fire fighters.
33f. The Iowa emergency management association.
34g. At least one attorney licensed to practice law in this
35state with experience representing entities associated with
-17-1fire protection services.
2h. At least one representative from a city having a
3population of thirty-seven thousand or more as determined by
4the 2020 federal decennial census.
5i. At least one representative from a city having a
6population of less than five thousand as determined by the 2020
7federal decennial census.
8j. At least one representative from a county having a
9population of ninety thousand or more as determined by the 2020
10federal decennial census.
11k. Four members of the general assembly serving as
12ex officio, nonvoting members, one representative to be
13appointed by the speaker of the house of representatives, one
14representative to be appointed by the minority leader of the
15house of representatives, one senator to be appointed by the
16president of the senate after consultation with the majority
17leader of the senate, and one senator to be appointed by the
18minority leader of the senate.
192. The countywide fire protection services study shall
20include all of the following:
21a. A cost analysis for upfront and ongoing costs to provide
22consolidated countywide fire protection services systems. The
23analysis and recommendations shall include proposed funding
24mechanisms and potential consolidated funding resources that
25comply with local, state, and federal law. The analysis shall
26also include the potential effects countywide fire protection
27services could have on local authority expenditures and
28budgets.
29b. An analysis of current fire protection coverage
30including current response times and recommendations for
31placement of service stations to maximize fire protection
32coverage and emergency response times in the most efficient and
33cost-effective manner.
34c. An analysis of current and future staffing needs
35including a proposed employment structure for countywide
-18-1fire protection services that focuses on adequate employee
2pay and volunteer staffing, including benefits, stipends, or
3other compensation allowed in accordance with local, state, or
4federal law.
5d. An analysis of current fire protection services
6equipment and future fire protection services equipment needs
7including proposed placement of fire protection services
8equipment in service stations to maximize fire protection
9coverage and emergency response times.
10e. An analysis of current communication and dispatch
11challenges including proposed recommendations for more
12efficient and effective communications.
13f. An analysis of the need for city and township fire
14protection services in relation to the implementation of a
15countywide fire protection service.
16g. An analysis of existing countywide fire protection
17service programs in this state including outlining current
18processes and procedures. The analysis under this paragraph
19must include outlines of any current or proposed fire
20protection service programs under chapter 28E, 357B, 357F,
21357G, or 357J, and any other legal agreement, contract, or
22consolidated effort, including as part of a district.
23h. An analysis of countywide fire protection services in
24other states, with an emphasis on midwest states, including an
25analysis of those fire protection programs in comparison to the
26fire protection needs of this state.
27i. Recommendations for the implementation of countywide
28fire protection services in this state including proposed
29functionality and an emphasis on the potential impact of
30implementation on the four most populous counties in this
31state as determined by the 2020 federal decennial census,
32along with surrounding counties if a multicounty approach to
33fire protection services would be more beneficial based on the
34study’s findings.
353. The state fire marshal shall submit a report of the
-19-1study’s findings to the general assembly on or before June 30,
22026.
3 Sec. 39. EFFECTIVE DATE. This division of this Act, being
4deemed of immediate importance, takes effect upon enactment.
5DIVISION XI
6INTERIM STUDies
7 Sec. 40. INTERIM STUDY COMMITTEE — ALL-TERRAIN VEHICLES
8AND OFF-ROAD UTILITY VEHICLES ON HIGHWAYS.
91. The legislative council is requested to establish an
10interim study committee to meet during the 2025 legislative
11interim to examine policy matters and recommend statutory
12changes relating to the operation of all-terrain vehicles
13and off-road utility vehicles on highways, including but not
14limited to the following:
15a. Requiring registration and a fee for all-terrain
16vehicles and off-road utility vehicles to be operated on a
17highway, other than the registration required for such vehicles
18to be operated on public land, public ice, or a designated
19riding trail of this state.
20b. Consolidating Code provisions that regulate the
21operation of all-terrain vehicles and off-road utility
22vehicles.
232. The interim study committee shall consist of three
24members of the senate, two of whom shall be appointed by
25the majority leader of the senate and one of whom shall be
26appointed by the minority leader of the senate, and three
27members of the house of representatives, two of whom shall be
28appointed by the speaker of the house of representatives and
29one of whom shall be appointed by the minority leader of the
30house of representatives.
313. The interim study committee, in consultation with
32the director of the department of transportation or the
33director’s designee, the commissioner of public safety or the
34commissioner’s designee, and the director of the department of
35natural resources or the director’s designee, shall submit a
-20-1report with its findings and recommendations to the general
2assembly no later than January 12, 2026. A proposed bill by
3the interim study committee may be filed in lieu of submitting
4a final report.
5 Sec. 41. SUBACUTE MENTAL HEALTH CARE SERVICES — INTERIM
6STUDY COMMITTEE.
71. The legislative council is requested to establish an
8interim study committee during the 2025 legislative interim
9to review the following topics as related to subacute mental
10health care services:
11a. The mental health services that should be available at a
12subacute level of care.
13b. Whether subacute mental health care services would be
14most effectively delivered through a single subacute mental
15health care facility serving the entire state, several regional
16subacute mental health care facilities, or local options for
17subacute mental health care services.
18c. The mental health care providers that could best provide
19subacute mental health care services.
20d. The requirements for an individual’s commitment, whether
21voluntary or involuntary, to a subacute mental health care
22facility or for subacute mental health care services.
23e. The changes that may be required to the current
24commitment process to allow for an individual’s commitment to
25a subacute mental health care facility or for subacute mental
26health care services.
27f. The requirements for an individual’s discharge from a
28subacute mental health care facility or from subacute mental
29health care services.
302. The interim study committee shall consist of five members
31of the senate and five members of the house of representatives.
32Three members of the senate shall be appointed by the majority
33leader of the senate and two members of the senate shall be
34appointed by the minority leader of the senate. Three members
35of the house of representatives shall be appointed by the
-21-1speaker of the house of representatives and two members of the
2house of representatives shall be appointed by the minority
3leader of the house of representatives.
43. The interim study committee shall report the committee’s
5findings and recommendations to the general assembly no later
6than January 12, 2026.
7DIVISION XII
8911 emergency communications services
9 Sec. 42. NEW SECTION. 34A.12 Delivery of 911 calls —
10reimbursement.
11The program manager may request reimbursement from each
12joint 911 service board for reasonable costs under section
1334A.7A related to the delivery of 911 call traffic to public
14safety answering points. Upon request, each joint 911 service
15board shall reimburse the department of homeland security and
16emergency management for such costs within thirty days.
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