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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
June 11,2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 659, an Act relating to state government and finances, including by making,
modifying, limiting, or reducing appropriations, distributions, or transfers; authorizing
expenditure of unappropriated moneys in special funds; providing for properly related
matters including crystalline polymorph psilocybin, medical residency and fellowship
positions, state membership in the Iowa individual health benefit reinsurance association,
student abuse by school employees, modified supplemental amounts for school budgets,
wagering taxes, a state fire marshal study, certain legislative interim studies, and 911
emergency communications services; making corrections; and including effective date,
applicability, and retroactive applicability provisions.
The above Senate File is hereby approved on this date.
Sincerely,
Kim KtfynoldN^.^
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
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Senate File 659
AN ACT
RELATING TO STATE GOVERNMENT AND FINANCES, INCLUDING BY
MAKING, MODIFYING, LIMITING, OR REDUCING APPROPRIATIONS,
DISTRIBUTIONS, OR TRANSFERS; AUTHORIZING EXPENDITURE OF
UNAPPROPRIATED MONEYS IN SPECIAL FUNDS; PROVIDING FOR
PROPERLY RELATED MATTERS INCLUDING CRYSTALLINE POLYMORPH
PSILOCYBIN, MEDICAL RESIDENCY AND FELLOWSHIP POSITIONS,
STATE MEMBERSHIP IN THE IOWA INDIVIDUAL HEALTH BENEFIT
REINSURANCE ASSOCIATION, STUDENT ABUSE BY SCHOOL EMPLOYEES,
MODIFIED SUPPLEMENTAL AMOUNTS FOR SCHOOL BUDGETS, WAGERING
TAXES, A STATE FIRE MARSHAL STUDY, CERTAIN LEGISLATIVE
INTERIM STUDIES, AND 911 EMERGENCY COMMUNICATIONS
SERVICES; MAKING CORRECTIONS; AND INCLUDING EFFECTIVE DATE,
APPLICABILITY, AND RETROACTIVE APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE
AUTHORITY
Section 1. LIMITATIONS OF STANDING APPROPRIATIONS FY
2025-2026. Notwithstanding the standing appropriation in the
following designated section for the fiscal year beginning July
1, 2025, and ending June 30, 2026, the amount appropriated from
Senate Pile 659, p. 2
the general fund of the state pursuant to that section for the
following designated purpose shall not exceed the following
amount:
For payment of claims for nonpublic school pupil
transportation under section 285.2;
$ 8,997,091
If total approved claims for reimbursement for nonpublic
school pupil transportation exceed the amount appropriated in
accordance with this section, the department of education shall
prorate the amount of each approved claim.
Sec. 2, INSTRUCTIONAL SUPPORT STATE AID — FY 2025-2026. In
lieu of the appropriation provided in section 257.20,
subsection 2, the appropriation for the fiscal year
beginning July 1, 2025, and ending June 30, 2026, for paying
instructional support state aid under section 257.20 for the
fiscal year is zero.
Sec. 3. SPECIAL FUNDS SALARY ADJUSTMENTS FY
2025-2026. For the fiscal year beginning July 1, 2025, and
ending June 30, 2026, salary adjustments otherwise provided
may be funded as determined by the department of management,
subject to any applicable constitutional limitation, using
unappropriated moneys remaining in the commerce revolving
fund, the gaming enforcement revolving fund, the gaming
regulatory revolving fund, the primary road fund, the road
use tax fund, the fish and game protection fund, and the Iowa
public employees' retirement fund, and in other departmental
revolving, trust, or special funds for which the general
assembly has not made an operating budget appropriation.
Sec. 4. IOWA ECONOMIC EMERGENCY FUND EXCESS USE FOR
FOUNDATION AID. Of the excess moneys transferred to the
general fund of the state under section 8.55, subsection 2,
paragraph '"b", for the fiscal year beginning July 1, 2024,
$21,881,303 shall be used in lieu of a like amount of other
general fund moneys to pay foundation aid under chapter 257,
as described in section 257.16, for the fiscal year beginning
July 1, 2025. This section is based on the application of
assessment limitations calculated under section 441.21 due to
the enactment of 2023 Iowa Acts, chapter 5.
Senate File 659, p. 3
Sec. 5. Section 257.35, subsection 2, Code 2025, is amended
to read as follows:
2. Notwithstanding the deduction and payment under
auboGCtion 1, the The amounts specified for school districts
and aroa education agencies in aubaection 1, paragraph
section 257.10, subsection 7, for the fiscal year beginning
July 1, 2024 2025, and each succeeding fiscal year, shall be
reduced by the department of management by seven million five
hundred thousand dollars. The department of management shall
calculate a state aid reduction such that such amounts shall
be reduced proportionally to the amount that the district or-
agency would otherwise have received under this section if the
reduction imposed pursuant to this subsection did not apply
257.10, subsection 7.
Sec. 6. Section 257.35, Code 2025, is amended by adding the
following new subsections:
NEW SUBSECTION. 19A. In addition to the state aid reduction
applicable pursuant to subsection 2, the state aid portion of
the amounts specified for school districts in section 257.10,
subsection 7, for the fiscal year beginning July 1, 2025, and
ending June 30, 2026, shall be reduced by the department of
management by twenty-five million dollars. The reductions
for each district shall be prorated based on the proportional
reduction that the district receives under subsection 2.
NEW SUBSECTION. 19B, The director of the department of
management may deduct the following from the state aid due to
each school district pursuant to this chapter and shall pay the
amounts to the respective area education agencies on a monthly
basis from September 15 through June 15 during each school year
for purposes of providing services to students enrolled in
nonpublic schools within the boundaries of the area education
agency:
a# The amount calculated for media services for the school
district that is attributable to the number of students
enrolled in nonpublic schools within the school district who
are provided with media services by an area education agency.
b. The amount calculated for educational services for the
school district that is attributable to the number of students
enrolled in nonpublic schools within the school district who
Senate File 659, p. 4
are provided with educational services by an area education
agency.
DIVISION II
CORRECTIVE PROVISIONS
Sec. 7. Section 29D.4, subsection 2, paragraph b, as enacted
by 2025 Iowa Acts, Senate File 619, section 8, is amended to
read as follows:
b. Moneys in the fund are appropriated to the department to
provide loans to eligible entities pursuant to section 2QD.Q
290.8, and for administration of the program as permitted
under the STORM Act. Moneys in the fund shall not be used to
provide a loan to a private entity for the acquisition of real
property. Moneys in the fund shall not be considered part of
the general fund of the state subject to appropriation for any
other purpose by the general assembly, and in determining a
general fund balance, shall not be included in the general fund
of the state subject to section 16.31, insofar as section 16.31
complies with the STORM Act.
Sec. 8. Section 144E.3, Code 2025, as amended by 2025 Iowa
Acts, Senate File 233, section 2, if enacted, is amended to
read as follows:
144E.3 Manufacturer and eligible facility rights.
1, A manufacturer of an investigational drug, biological
product, or device or a manufacturer operating within,
and in compliance with all requirements applicable to, an
eligible facility may make available, and an eligible patient,
as applicable under section 144E.1 144E.2, subsection 2,
paragraph or may request from a manufacturer of
an investigational drug, biological product, or device,
or a manufacturer operating within, and in compliance with
all requirements applicable to, an eligible facility, the
manufacturer's investigational drug, biological product, or
device, or the manufacturer's individualized investigational
treatment under this chapter. This chapter does not require a
manufacturer of an investigational drug, biological product,
or device, or of an individualized investigational treatment
to provide or otherwise make available the investigational
drug, biological product, or device, or the individualized
investigational treatment to an eligible patient.
Senate File 659, p. 5
2. An eligible facility, or a manufacturer described
in subsection 1, that is in compliance with all applicable
requirements, may do any of the following:
a. Provide an investigational drug, biological product,
or device, or an individualized investigational treatment
to an eligible patient, as applicable under section 144E.1
144E.2, subsection 2, paragraph or without receiving
compensation.
b. Require an eligible patient, as applicable under section
144E.1 144E,2, subsection 2, paragraph or '^b", to pay the
costs of, or the costs associated with, the manufacture of the
investigational drug, biological product, or device, or the
individualized investigational treatment.
Sec. 9. Section 237.10, subsection 1, paragraph d, if
enacted by 2025 Iowa Acts, House File 644, section 3, is
amended to read as follows:
d. (1) The department shall notify an individual licensee,
and the parents or guardians of a child, if the department
delegates the department's right to consent to emergency
medical care and routine medical care on behalf of the child
under section 232.2, subsection 12, paragraph to the
individual licensee.
(2) The department shall notify the department of
education, an individual licensee, and the parents or guardians
of a child if the department delegates the department's right
to consent to participation in an individualized education
program on behalf of the child under section 232.2, subsection
12, paragraph to the individual licensee.
Sec. 10. Section 237.10, subsection 1, paragraph d, if
enacted by 2025 Iowa Acts, House File 644, section 7, is
amended to read as follows:
d. (1) The department shall notify an individual licensee
or an approved kinship caregiver, and the parents or guardians
of a child, if the department delegates the department's right
to consent to emergency medical care and routine medical care
on behalf of the child under section 232.2, subsection 12,
paragraph to the individual licensee or approved kinship
caregiver,
(2) The department shall notify the department of
Senate File 659, p. 6
education, an individual licensee or an approved kinship
caregiver, and the parents or guardians of a child, if the
department delegates the department's right to consent to
participation in an individualized education program on behalf
of the child under section 232.2, subsection 12, paragraph
to the individual licensee or approved kinship caregiver.
Sec. 11. Section 256.9, subsection 69, as enacted by 2025
Iowa Acts, House File 782, section 1, is amended to read as
follows:
69. On or before May 1, 2025, develop and distribute
to school districts, accredited nonpublic schools, charter
schools, and innovation zone schools model policies that,
if adopted, would satisfy a school district's, charter
school'3,—or innovation gone school's responsibilities under
section 279.87 relating to policies governing student use of
personal electronic devices.
Sec. 12. Section 280.36, subsection 1, as enacted by 2025
Iowa Acts, Senate File 583, section 4, is amended to read as
follows:
1. The board of directors of each school district and the
authorities in charge of each accredited nonpublic school may
establish a multidisciplinary school safety assessment team.
If established, the multidisciplinary school safety assessment
team shall coordinate resources and assess and intervene
when a student enrolled in the school district or accredited
nonpublic school exhibits behavior that may pose a threat to
the safety of the school district or accredited nonpublic
school, employees of the school district or accredited
nonpublic school, or other student students enrolled in the
school district or accredited nonpublic school.
Sec. 13. Section 299.ID, subsection 1, paragraph f, if
enacted by 2025 Iowa Acts, House File 870, section 2, is
amended to read as follows:
f. The school district or accredited nonpublic school
must not expend any moneys related to the course in religious
instruction, not including de minimis administrative costs
associated with processing notifications received under
QuboGGtion 1 paragraph and tracking the child's attendance
to ensure compliance with this section.
Senate File 659, p. 7
Sec. 14. Section 404A.3, subsection 3, paragraph b,
subparagraph (5), subparagraph division (c), if enacted by 2025
Iowa Acts, House File 975, section 19, is amended to read as
follows:
(c) Upon application of the eligible taxpayer made prior
to the expiration of an extension under subparagraph division
(b), the authority may, at the discretion of the authority,
extend the date by which the qualified rehabilitation project
must be complete up to an additional twelve consecutive months.
The qualified eligible taxpayer must substantiate to the
satisfaction of the authority that the requested extension is
warranted due to extenuating circumstances outside the control
of the eligible taxpayer.
Sec. 15. Section 510B.8E, subsection 3, unnumbered
paragraph 1, if enacted by 2025 Iowa Acts, Senate File 383,
section 7, is amended to read as follows:
The pharmacy benefits manger manager shall respond to an
appeal within seven business days after the date on which the
pharmacy benefits manager receives the appeal.
Sec. 16. Section 514F.8, subsection lA, paragraph c,
subparagraph (8), if enacted by 2025 Iowa Acts, House File 303,
section 1, is amended to read as follows:
(8) The average and median time that elapsed between the
submission of a nonurgent prior authorization request and a
determination by the utilization review organization for the
urgent nonurgent prior authorization request, aggregated for
all health care services or items.
Sec. 17. Section 522F,4, subsection 2, as enacted by 2025
Iowa Acts, Senate File 619, section 59, is amended to read as
follows:
2. Any- The fee for a criminal history check shall be
the same as any applicable fee for a criminal history check
pursuant to section 522B.5A.
Sec. 18. Section 522F.9, subsection 2, as enacted by 2025
Iowa Acts, Senate File 619, section 64, is amended to read as
follows:
2. Any The fee for a criminal history check shall be
the same as any applicable fee for a criminal history check
pursuant to section 522B.5A.
Senate File 659, p. 8
Sec. 19. CODE EDITOR DIRECTIVE. 2025 lowa Acts, Senate File
619, section 29, amends section 515.137A, subsections 3, 4, and
5, Code 2025, by striking the subsections and inserting in lieu
thereof new subsections 3, 4, and 5, and, notwithstanding the
Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10.
The Code editor is directed to codify 2025 Iowa Acts, Senate
File 619, section 29, by striking section 515.137A, subsections
3, 4, and 5, Code 2025, and inserting in lieu thereof new
subsections 3, 4, and 5, and then by amending section 515.137A,
Code 2025, by adding new subsections 6, 7, 8, 9, and 10.
Sec. 20. EFFECTIVE DATE. The following, being deemed of
immediate importance, takes effect upon enactment:
The section of this division of this Act amending section
256.9, subsection 69, as enacted by 2025 Iowa Acts, House File
782, section 1.
Sec. 21. RETROACTIVE APPLICABILITY. The following applies
retroactively to April 30, 2025:
The section of this division of this Act amending section
256.9, subsection 69, as enacted by 2025 Iowa Acts, House File
782, section 1.
DIVISION III
CRYSTALLINE POLYMORPH PSILOCYBIN
Sec. 22. Section 124.201, subsection 5, if enacted by 2025
Iowa Acts, House File 383, section 1, is amended to read as
follows:
5. a» Notwithstanding section 124.204, subsection 4, a drug
that contains the pharmaceutical composition of crystalline
polymorph psilocybin, also known as COMF 360, or any other
trade name approved by the United States food and drug
administration, shall be immediately removed from schedule I
under section 124.204, subsection 4, paragraph upon its
approval by the United States food and drug administration and
rescheduled based upon the recommendations of the United States
food and drug administration and its listing in the federal
Controlled Substances Act, 21 U.S.C. §812, and 21 C.F.R.
§1308.14.
b. Immediately upon the rescheduling of the drug under
paragraph , it shall be lawful to prescribe, distribute, and
market the pharmaceutical composition of crystalline polymorph
Senate File 659, p. 9
psilocybiny also known aa COMF 360/ or any other trade name
approved by the United States food and drug administration.
DIVISION IV
MEDICAL RESIDENCY AND FELLOWSHIP POSITIONS RESIDENTS OF IOWA
Sec. 23. Section 262.9, subsection 39, paragraph e,
subparagraph (2), if enacted by 2025 Iowa Acts, House File 516,
section 1, is amended to read as follows:
(2) An individual who has lived in Iowa for at least four
consecutive years immediately preceding the date the individual
applies for admiaaion to begins classes at the college of
medicine in the doctor of medicine program or the college of
dentistry at the state university of Iowa, or begins a
residency at the university of Iowa hospitals and clinics.
DIVISION V
STATE MEMBERSHIP REINSURANCE ASSOCIATION
Sec. 24. Section 513C.10, subsection 1, paragraph a. Code
2025, is amended to read as follows:
a. All persons that provide health benefit plans in this
state including insurers providing accident and sickness
insurance under chapter 509, 514, or 514A, whether on an
individual or group basis; fraternal benefit societies
providing hospital, medical, or nursing benefits under chapter
512B; and health maintenance organizations, other entities
providing health insurance or health benefits subject to state
insurance regulation, and all other insurers as designated
by the board of directors of the Iowa comprehensive health
insurance association with the approval of the commissioner
shall be members of the association. However, the state,
including a department, an independent agency, the state board
of regents, and an institution under the control of the state
board of regents, shall not be a member of the association.
Sec, 25. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 26. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2020.
DIVISION VI
STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE DEPARTMENT OF
HEALTH AND HUMAN SERVICES INVESTIGATIONS
Sec. 27. NEW SECTION. 232E.1 Definitions.
Senate Pile 659, p. 10
As used in this chapter, unless the context otherwise
requires:
1. '^Board of educational examiners'' means the board created
in section 256.146.
2. ^Department" means the department of health and human
services.
3. ^Investigation" means the process by which the department
responds to all accepted reports of alleged student abuse.
4. "^Nonpublic school" means the same as defined in section
280.2.
5. ''^Public school" means the same as defined in section
280.2.
6. Tublic school district" means a public school district
as described in chapter 274, and includes a charter school
under chapter 256E, or a charter school or an innovation zone
school under chapter 256F.
7. ''^School employee" means any of the following:
a, A person employed by a public school or a nonpublic
school.
b, A vendor, or an employee of a vendor, that provides goods
or services to a public school or a nonpublic school.
c, An agent, or an employee of an agent, of a public school
or a nonpublic school.
d* A volunteer under the direction and control of any of the
following:
(1) The board of directors or any administrator of a public
school district.
(2) The board or authorities in control of a nonpublic
school.
(3) The board of directors or administrator of an agency
called upon by a school official to provide services to
students in an educational capacity.
8. ^"^Student" means a person enrolled in a public school,
a nonpublic school, or a prekindergarten program in a public
school or a nonpublic school.
9. ''^Student abuse" means any of the following which occur on
school grounds during school time, or on or at a school-related
curricular or extracurricular activity:
a. Any nonaccidental physical injury, or an injury which
Senate File 659, p. 11
does not match the history provided for how the injury
occurred, suffered by a student as the result of an act or
omission of a school employee, that is not otherwise excluded
by section 280.21, subsection 2,
b. The commission of a sexual offense under chapter 709,
section 726.2, or section 728.12, subsection 1, with or to a
student as a result of an act or omission of a school employee.
c. An act or omission of a school employee which allows,
permits, or encourages a student to engage in an act prohibited
under section 725.1.
Sec. 28. NEW SECTION. 232E.2 Investigation of alleged
student abuse by school employees — rules.
1. The department shall administer this chapter to provide
for the investigation of reports of alleged student abuse by
school employees as specified in this chapter.
2. a. If, during the child abuse intake process under
chapter 232, subchapter III, part 2, the department receives
a report from an identifiable source and the department
determines the report constitutes an allegation of student
abuse involving a school employee, the department shall notify
the board of directors of the public school district or the
authorities in charge of the nonpublic school associated with
the school employee, and the board of educational examiners, of
the determination.
b. Upon notification under paragraph the board of
directors of the public school district or the authorities in
charge of the nonpublic school shall place the school employee
on administrative leave and shall prohibit the school employee
from entering school property until the investigation is
completed.
3. If the department determines the alleged student abuse
constitutes a criminal act, the department shall do all of the
following:
a. Immediately refer the matter to, and jointly investigate
the matter with, the appropriate law enforcement agency.
b» Notify the board of directors of the public school
district, or the authorities in charge of the nonpublic school,
associated with the school employee of the referral under
paragraph ^a",
Senate File 659, p. 12
c» If the school employee is licensed, certified, or
authorized by the board of educational examiners, or holds
an active statement of recognition issued by the board of
educational examiners, notify the board of educational
examiners of the referral under paragraph
4. Following receipt of a report of alleged student abuse,
the department shall do all of the following:
a. Commence an investigation within twenty-four hours of
receipt of the report.
b. Complete the investigation within thirty business days of
receipt of the report.
5. Upon completion of an investigation, the department
shall submit a written investigation report to all of the
following:
a. The board of directors of the public school district, or
the authorities in charge of the nonpublic school, associated
with the school employee subject to the investigation.
b» The board of educational examiners if the school
employee subject to the investigation is licensed, certified,
or authorized by the board of educational examiners, or holds
an active statement of recognition issued by the board of
educational examiners.
6. The department shall adopt rules pursuant to chapter
17A, in consultation with the department of education, to
administer this chapter. Rules adopted by the department shall
include rules regarding the intake and investigation processes,
investigation reports, case and investigation record retention
and dissemination, and case disposition.
7. The department shall maintain information and data
regarding student abuse reports, investigations, and
dispositions under this chapter separately from information
and data regarding child abuse reports, assessments, and
dispositions under chapter 232.
DIVISION VII
STUDENT ABUSE INVOLVING A SCHOOL EMPLOYEE DEPARTMENT OF
EDUCATION
Sec. 29. Section 280.17, Code 2025, is amended by striking
the section and inserting in lieu thereof the following:
280.17 Student abuse investigations — termination of
Senate File 659, p. 13
employment.
1. The board of directors of a public school district and
the authorities in charge of a nonpublic school shall comply
with chapter 232E, and shall cooperate with the department of
health and human services during an investigation commenced
under chapter 232E.
2. The board of directors of a public school or the
authorities in charge of a nonpublic school shall terminate the
employment of a school employee if the board of directors or
authorities in charge receive a written investigation report
under section 232E.2, subsection 5, indicating the department
of health and human services has determined the school employee
committed student abuse.
3. The department of education, in consultation with the
department of health and human services, shall adopt rules
pursuant to chapter 17A, and a model policy, for the handling
of investigations pursuant to chapter 232E.
Sec. 30. Section 321.375, subsection 3, paragraph d. Code
2025, is amended to read as follows:
d. The commission of or conviction for a public offense as
defined by the Iowa criminal code, if the offense is relevant
to and affects driving ability, or if the offense includes
sexual involvement with a minor student with the intent to
commit acts and practices proscribed under sections 709.2
through 709.4, section 709.8, and sections 725.1 through 725.3,
or io a violation of the rules of the department of education
adopted-to implement section 280.17 student abuse as defined
in section 232E.1.
DIVISION VIII
SCHOOL BUDGETS MODIFIED SUPPLEMENTAL AMOUNTS
Sec. 31. Section 257.31, subsection 5, paragraph o. Code
2025, is amended to read as follows:
o. (1) The percentage of students enrolled in the school
district as the result of open enrollment under section
282.18 is equal to or greater than forty-five percent of the
total number of students enrolled in the school district.
The committee shall not approve supplemental aid or a
modified supplemental amount that exceeds an amount equal
to fifty percent of the product of the net change in the
Senate File 659, p. 14
school district's expected enrollment due to open enrollment
multiplied by the sum of the following amounts:
(a) The difference between the district's regular program
district cost per pupil minus the regular program state cost
per pupil.
-(-b-)—The toachor salary aupplcmont diotrict coot per pupil.
-(-e^ (b) The professional development supplement district
cost per pupil.
(c) The early intervention supplement district cost per
pupil.
(2) Prior to filing a request for supplemental aid or a
modified supplemental amount based on the grounds specified
in this paragraph, the board of directors shall hold a public
hearing on the issue and shall publish the notice of the time
and place of the public hearing. Notice of the time and place
of the public hearing shall be published not less than ten nor
more than twenty days before the public hearing in a newspaper
that is a newspaper of general circulation in the school
district.
(3) A school district is not eligible for supplemental aid
or a modified supplemental amount under this paragraph if a
majority of the students enrolled in the school district as
the result of open enrollment are students receiving online
instruction from a private provider under section 256.43,
subsection 2.
(4) A achool diotrict io only eligible for aupplomontal
aid or a modified aupplomcntal amount under thio paragraph for
the budget year beginning July 1, 2024 If a school district is
granted a modified supplemental amount under this paragraph for
a budget year beginning on or after July 1, 2025, the school
district's combined property tax rate per one thousand dollars
for all school district levies for the succeeding budget year
shall not exceed the combined property tax rate for all such
levies for the budget year for which the modified supplemental
amount was granted.
Sec. 32. REPEAL. 2024 Iowa Acts, chapter 1152, section 45,
is repealed.
Sec. 33. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Senate File 659, p. 15
Sec. 34. APPLICABILITY. This division of this Act applies
to school budget years beginning on or after July 1, 2025.
DIVISION IX
WAGERING TAXES
Sec. 35. Section 99D.15, subsection 4, paragraph b. Code
2025, is amended to read as follows:
b. If wagering on simultaneously telecast horse races and
dog races is conducted by a licensee under section 99D.9D,
a tax of two percent is imposed on the gross sum wagered by
the pari-mutuel method on horse races and dog races which
are simultaneously telecast in excess of twenty-five million
dollars in a calendar year. Of the tax—f-evenue collected
from simulcast horoo races under—this paragraph,—ono-half of
one percent of the gross sum wagorod shall be romittcd to
the trcaourcr of the county in which a horse racetrack—ts-
located in this state and liconaod under this chapter. The
tax revenue from simulcast horse races under this paragraph
shall be deposited in the Iowa horse racing fund created in
section 99D.27B. The remaining amount of tax revenue shall be
deposited with the commission.
Sec. 36. Section 99D.17, Code 2025, is amended to read as
follows:
99D.17 Use of funds moneys.
Funds Unless otherwise provided by section 99D.15 or another
provision of law, moneys received pursuant to sections 99D.14
and 99D.15 shall be deposited as provided in section 8.57,
subsection 3. These funds moneys shall first be used to the
extent appropriated by the general assembly. The commission
is subject to the budget requirements of chapter 8 and the
applicable auditing requirements and procedures of chapter 11,
Sec. 37. NEW SECTION. 99D.27B Iowa horse racing fund —
advance deposit wagering tax.
1. An Iowa horse racing fund is created in the state
treasury under the control of the commission.
2. The fund shall consist of tax revenue collected and
deposited in the fund pursuant to subsection 6 and section
99D.15, subsection 4, and such other moneys appropriated to,
transferred to, or deposited in the fund.
3. a. Moneys in the fund are appropriated to the commission
Senate File 659, p. 16
for distribution in a manner and in an amount as determined by
the commission to individual entities or a recognized compact
of entities tasked with the regulation of the horse racing
industry in accordance with the federal Horseracing Integrity
and Safety Act of 2020, 15 U.S.C. ch, 57A.
b. In the event that the federal Horseracing Integrity
and Safety Act of 2020, 15 U.S.C. ch. 57A, is repealed,
moneys in the fund shall be transferred to the rebuild Iowa
infrastructure fund created in section 8.57.
4. Members of the commission and those acting on behalf of
the commission assisting in the distribution of the moneys in
the fund shall be held harmless against any claim of liability
made by an individual or entity arising out of the distribution
of the moneys from the fund by the commission.
5. Section 8.33 does not apply to moneys in the fund.
Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the fund shall be credited to
the fund.
6. A tax of two percent is imposed on the gross sum wagered
by the pari-mutuel method as an advance deposit wager under
section 99D.11, subsection 6, paragraph The tax imposed
under this subsection is in lieu of any tax imposed on such
wagers under section 99D.15. The tax revenue generated under
this subsection shall be deposited in the fund.
DIVISION X
STATE FIRE MARSHAL STUDY
Sec. 38. STATE FIRE MARSHAL COUNTYWIDE FIRE PROTECTION
SERVICES STUDY.
1. The state fire marshal shall conduct a study of fire
protection services in this state to analyze whether a
structure of countywide fire protection services would maximize
fire protection coverage and emergency response times. The
study shall be conducted in consultation with representatives
from the following stakeholders:
a. The department of homeland security and emergency
management.
b. The Iowa association of professional fire chiefs.
c. The Iowa fire chiefs' association.
d. The Iowa firefighters association.
Senate File 659, p. 17
e. The Iowa professional fire fighters.
f. The Iowa emergency management association.
g. At least one attorney licensed to practice law in this
state with experience representing entities associated with
fire protection services.
h. At least one representative from a city having a
population of thirty-seven thousand or more as determined by
the 2020 federal decennial census.
i. At least one representative from a city having a
population of less than five thousand as determined by the 2020
federal decennial census.
j. At least one representative from a county having a
population of ninety thousand or more as determined by the 2020
federal decennial census.
k. Four members of the general assembly serving as
ex officio, nonvoting members, one representative to be
appointed by the speaker of the house of representatives, one
representative to be appointed by the minority leader of the
house of representatives, one senator to be appointed by the
president of the senate after consultation with the majority
leader of the senate, and one senator to be appointed by the
minority leader of the senate.
2. The countywide fire protection services study shall
include all of the following;
a. A cost analysis for upfront and ongoing costs to provide
consolidated countywide fire protection services systems. The
analysis and recommendations shall include proposed funding
mechanisms and potential consolidated funding resources that
comply with local, state, and federal law. The analysis shall
also include the potential effects countywide fire protection
services could have on local authority expenditures and
budgets.
b. An analysis of current fire protection coverage
including current response times and recommendations for
placement of service stations to maximize fire protection
coverage and emergency response times in the most efficient and
cost-effective manner.
c. An analysis of current and future staffing needs
including a proposed employment structure for countywide
Senate Pile 659, p. 18
fire protection services that focuses on adequate employee
pay and volunteer staffing, including benefits, stipends, or
other compensation allowed in accordance with local, state, or
federal law.
d. An analysis of current fire protection services
equipment and future fire protection services equipment needs
including proposed placement of fire protection services
equipment in service stations to maximize fire protection
coverage and emergency response times.
e. An analysis of current communication and dispatch
challenges including proposed recommendations for more
efficient and effective communications.
f. An analysis of the need for city and township fire
protection services in relation to the implementation of a
countywide fire protection service.
g. An analysis of existing countywide fire protection
service programs in this state including outlining current
processes and procedures. The analysis under this paragraph
must include outlines of any current or proposed fire
protection service programs under chapter 28E, 357B, 357F,
357G, or 357J, and any other legal agreement, contract, or
consolidated effort, including as part of a district.
h. An analysis of countywide fire protection services in
other states, with an emphasis on midwest states, including an
analysis of those fire protection programs in comparison to the
fire protection needs of this state.
i. Recommendations for the implementation of countywide
fire protection services in this state including proposed
functionality and an emphasis on the potential impact of
implementation on the four most populous counties in this
state as determined by the 2020 federal decennial census,
along with surrounding counties if a multicounty approach to
fire protection services would be more beneficial based on the
study's findings.
3. The state fire marshal shall submit a report of the
study's findings to the general assembly on or before June 30,
2026.
Sec. 39. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Senate File 659, p. 19
DIVISION XI
INTERIM STUDIES
Sec. 40. INTERIM STUDY COMMITTEE ALL-TERRAIN VEHICLES
AND OFF-ROAD UTILITY VEHICLES ON HIGHWAYS.
1. The legislative council is requested to establish an
interim study committee to meet during the 2025 legislative
interim to examine policy matters and recommend statutory
changes relating to the operation of all-terrain vehicles
and off-road utility vehicles on highways, including but not
limited to the following:
a. Requiring registration and a fee for all-terrain
vehicles and off-road utility vehicles to be operated on a
highway, other than the registration required for such vehicles
to be operated on public land, public ice, or a designated
riding trail of this state.
b. Consolidating Code provisions that regulate the
operation of all-terrain vehicles and off-road utility
vehicles.
2. The interim study committee shall consist of three
members of the senate, two of whom shall be appointed by
the majority leader of the senate and one of whom shall be
appointed by the minority leader of the senate, and three
members of the house of representatives, two of whom shall be
appointed by the speaker of the house of representatives and
one of whom shall be appointed by the minority leader of the
house of representatives.
3. The interim study committee, in consultation with
the director of the department of transportation or the
director's designee, the commissioner of public safety or the
commissioner's designee, and the director of the department of
natural resources or the director's designee, shall submit a
report with its findings and recommendations to the general
assembly no later than January 12, 2026. A proposed bill by
the interim study committee may be filed in lieu of submitting
a final report.
Sec. 41. SUBACUTE MENTAL HEALTH CARE SERVICES INTERIM
STUDY COMMITTEE.
1. The legislative council is requested to establish an
interim study committee during the 2025 legislative interim
Senate Pile 659, p. 20
to review the following topics as related to subacute mental
health care services:
a. The mental health services that should be available at a
subacute level of care.
b. Whether subacute mental health care services would be
most effectively delivered through a single subacute mental
health care facility serving the entire state, several regional
subacute mental health care facilities, or local options for
subacute mental health care services.
c. The mental health care providers that could best provide
subacute mental health care services.
d. The requirements for an individual's commitment, whether
voluntary or involuntary, to a subacute mental health care
facility or for subacute mental health care services.
e. The changes that may be required to the current
commitment process to allow for an individual's commitment to
a subacute mental health care facility or for subacute mental
health care services.
f. The requirements for an individual's discharge from a
subacute mental health care facility or from subacute mental
health care services.
2. The interim study committee shall consist of five members
of the senate and five members of the house of representatives.
Three members of the senate shall be appointed by the majority
leader of the senate and two members of the senate shall be
appointed by the minority leader of the senate. Three members
of the house of representatives shall be appointed by the
speaker of the house of representatives and two members of the
house of representatives shall be appointed by the minority
leader of the house of representatives.
3. The interim study committee shall report the committee's
findings and recommendations to the general assembly no later
than January 12, 2026.
DIVISION XII
911 EMERGENCY COMMUNICATIONS SERVICES
Sec. 42. NEW SECTION. 34A.12 Delivery of 911 calls —
reimbursement.
The program manager may request reimbursement from each
joint 911 service board for reasonable costs under section
Senate File 659, p. 21
34A.7A related to the delivery of 911 call traffic to public
safety answering points. Upon request, each joint 911 service
board shall reimburse the department of homeland security and
emergency management for such costs within thirty days.
AMY SINQ^IR
President of the Senate
PAT grassle:
Speaker the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 659, Ninety-first General Assembly.
Approve IIVi—
2025
W. CHARLES SMITHSON
Secr.etaj ^ of^fciie Senate
KIM RE
Governor