2025 Government Relations Legislative Update - Week Sixteen

By: Matthew H. McKinney, R.G. Schwarm & Julie A. Smith

Capitol Update

The 110th day of session has passed without a sine die resolution. The House didn't debate at all this week. The Senate met and passed 22 bills. There are now 128 enrolled bills. The Governor signed 9 bills this week, bringing the total bills signed so far this session to 44. The legislative session will extend into next week and likely beyond that.

On Wednesday, the Governor signed HF 782, the statewide ban on cellphone use during class time. The bill requires that policies be adopted for the school year starting July 1, 2025 and allows for schools to adopt more stringent policies. The bill requires the Iowa Department of Education to develop and distribute model policies governing the use of electronic devices by May 1, 2025. For a more detailed description of the bill, see BW’s Week 11 newsletter.

On Tuesday, Angel Ramirez won the special election for the House District 78 seat (SE Cedar Rapids) that was vacated by former Representative Sami Sheetz. Sheetz was appointed to the Linn County Board of Supervisors. Ramirez is a nonprofit leader and community organizer. Luckily for Representative-Elect Ramirez, the session is extending beyond the target adjournment date so she will be able to participate in the 2025 session.

The announcements in anticipation of the 2026 election keep coming. Lieutenant Governor Chris Cournoyer has filed paperwork to run for State Auditor in 2026. Cournoyer was appointed by the Governor to her current position in December when then Lieutenant Governor Adam Gregg left to run the Iowa Bankers Association. Current State Auditor Democrat Rob Sand has not announced whether he will seek reelection for the Auditor’s seat or will run for Governor.

On Monday, the Governor and the Senate announced an agreement on budget targets for the FY 2026 state budget. The House was not included in that agreement and announced separate targets later that day. The Governor/Senate proposed target is a total of $9.417 billion. The House target is $9.453 billion. A difference of $36 million. The Governor/Senate is an increase of $470 million and the House is an increase of $506 million over the FY 2025 budget.

SF 646 (AG/DNR), SF 644 (Judicial Branch) and SF 645 (Economic Development) were moved out of the Senate Appropriations Committee on Wednesday. Despite not holding floor debate, the House moved forward with appropriations bills this week. The House Appropriations Committee met on Thursday and voted out several appropriations bills - HSB 336 (Economic Development), SF 628 (DOT), HSB 334 (RIIF), SF 626 (Federal Block Grants). The House also held subcommittees on Thursday and voted out HSB 341 (Administration and Regulation), HSB 338 (Ag and Natural Resources), HSB 342 (Health and Human Services) and HSB 339 and HSB 349 (Justice System and Judicial Branch).

The House Government Oversight Committee met again on Wednesday and continued a sometimes contentious discussion of the misallocation of $27 million of court debt that should have gone to the Victim Compensation Fund and the Department of Transportation. The Committee heard testimony from State Auditor Rob Sand in regard to the Auditors process for auditing the courts and the misallocation of court debt. The Committee discussed the collection and distribution of court fees, fines and debts and the role of the State Auditor. Last week, the Committee heard from the State Court Administrator, Bob Gast, who explained that the misallocation of funds was due to computer coding errors from implementation of new legislation in 2020 and 2021. Gast stated that the Court plans to bring legislation in 2026 to implement changes to the way court debt fines are distributed.

A school safety bill, SF 583, initially proposed by the Department of Public Safety is awaiting the Governor’s signature. SF 583 authorizes information sharing of records or information that are reasonably necessary to ensure access to appropriate services for a student or to ensure the safety of the student or others. In addition, the bill authorizes the board of directors of a school district and authorities in charge of an accredited nonpublic school to establish multidisciplinary threat assessment teams. The purpose of threat assessment teams are to coordinate resources and assess and intervene when an enrolled student exhibits behavior that may pose a threat to the safety of employees or students. The bill anticipates that a threat assessment team include a local law enforcement official, a representative from juvenile court services, a mental health professional, a social services representative, and a school official. The bill provides immunity from civil action for a person who, in good faith with reasonable cause and without malice, acts to report, investigate or disclose activities of a student or person who poses a credible danger.

In the Know

The end of the session is always consumed with taxes and the budget. The procedure for funding the state budget is through passage of appropriations bills. The Iowa Constitution Article III, Section 24 states that “No money shall be drawn from the treasury but in consequence of appropriations made by law.” So, pursuant to the Constitutional requirement, all appropriations for the budget must be made through legislation. Appropriations bills are divided into areas of state government, generally by Department although several departments may be combined into one bill. Bills include Administration and Regulation, Agriculture (IDALS), Natural Resources (DNR), Economic Development (IEDA, IFA), Education (DOE), Federal Block Grants, Health and Human Services (HHS, Aging, Veterans Affairs, Public Health), Judicial Branch, Justice Systems, Rebuild Iowa Infrastructure Fund (RIIF), Standings, and Transportation (DOT). There have been years where appropriations for the entire budget were included in one big bill.