Following the first funnel of the 2025 Iowa legislative session, much of the work last week included floor debate of bills in both the House and Senate. This week appears to be on a similar path.
After a bill has passed through a full committee, the next step in the process is floor debate, which happens when the Speaker of the House or the President of the Senate calls a bill up for consideration by all members of the respective chamber. Legislators discuss the bill, and representatives or senators may speak in favor or opposition. When the discussion concludes, a vote is taken to determine if the bill shall pass. If passed, the bill is sent across the rotunda to the other chamber for consideration.
All bills must move through a subcommittee, the relevant full committee, and floor debate in both chambers before reaching the governor’s desk for consideration. As the focus on priority bills continues to narrow, having companion bills in their respective chambers keeps the legislative process moving more quickly. However, the bills must be passed in identical formats before reaching the governor.
The second funnel is set for April 4. By that deadline, bills focused solely on policy must move through floor debate in one chamber and through a committee in the other chamber to maintain eligibility. Once again, bills with funding or tax implications are not subject to the funnels and may be considered at any point before final adjournment.
Center staff continue to track the progress of our priority bills as they move through the legislative process. Of note, House File (HF) 550, the bill supporting rural grocery and local foods, remains alive for consideration. The energy siting bill introduced by Sen. Mike Klimesh failed to pass out of the full committee before the funnel deadline, but it could reappear in the governor's omnibus utility bill, which successfully passed out of the Commerce Committee in both chambers.
See below to read about the other bills we are following.
If you have feedback on the bills we are monitoring, do not hesitate to reach out to me and share the rural issues important to you at [email protected] or 402.687.2100 ext. 1034.
Rural grocery / local food
HF 550 (previously HF 59) / Senate Study Bill (SSB) 1054 — Support: Introduced by Reps. Brian Lohse and Chad Ingels, this Center priority bill creates the Grocer Reinvestment Program and the Local Food Processing Program as well as appropriates money for the grocery reinvestment and local food processing fund. The legislation directs the Iowa Economic Development Authority to create a grant program for new or current grocery stores. To be eligible, the grocery store must exist in and benefit a community with a population of 20,000 or fewer and not share a border with a city with a population of 40,000 or greater. Prioritization is given to projects focused on cost-saving efforts and business efficiency measures to ensure the long-term sustainability of stores. Grants are directed to help small, locally owned grocery stores sell perishable foods in rural communities. The Senate bill did not clear the first funnel and is considered dead. The House bill was considered by the Economic Growth and Technology Committee on Feb. 19 and passed unanimously. It awaits consideration by the Appropriations Committee; a subcommittee has not yet been assigned. The House bill cleared the first funnel and is still alive.
Check out this feature story on Mulholland Grocery!
Senate File (SF) 232 (previously SSB 1012) / HF 920 — Support: Introduced by the Senate Committee on Health and Human Services (HHS) by Chairperson Mike Klimesh and by 33 representatives in the House, this bill allocates funding to the Iowa Healthiest State Initiative to administer Double Up Food Bucks. This program doubles the investment for purchases of fruits and vegetables by Iowans participating in the Supplemental Nutrition Assistance Program (SNAP). It also specifically benefits local food producers who accept SNAP at farmers markets, grocery stores, and other local places of sale. The Senate bill was considered by the Senate HHS Committee on Feb. 10 and passed on a vote of 17-0. It was renumbered and awaits consideration by the Appropriations Committee; a subcommittee has been assigned, but a meeting has not yet been scheduled. The House version was introduced on March 12 and referred to the Appropriations Committee; a subcommittee has not yet been assigned. Both bills are clear of the first funnel and are still alive.
HF 796 (previously HSB 216) — Monitor: Introduced by the House Committee on HHS by Chairperson Carter Nordman, this bill is similar to SF 232, also allocating funding to the Iowa Healthiest State Initiative to administer Double Up Food Bucks. However, there is an additional piece requiring Iowa HHS to request a waiver from the U.S. Department of Agriculture Food and Nutrition Service providing limitations on eligible food purchases. The bill was considered by the House HHS Committee on March 3 and passed on a vote of 14-6. It was subsequently renumbered and awaits consideration by the Appropriations Committee; a subcommittee has been assigned, but a meeting has not yet been scheduled. It cleared the first funnel and is still alive.
SF 9 / HF 179 (previously HF 32) — Monitor: Introduced in both chambers, this legislation distinguishes two separate categories for food processing licenses: a category in which meat or poultry is processed on a farm or private residence, and a general category including all other processing locations. In 2023, the general assembly revised the methods used to calculate the annual license fees imposed on food processing plants. The updated correlating license fee structure is included in the bill. The Senate bill did not clear the first funnel and is considered dead. The House bill passed through the Agriculture Committee on Jan. 28 by a vote of 23-0. It was renumbered and awaits consideration by the Ways and Means Committee; a subcommittee has not yet been assigned. The House bill cleared the first funnel and is still alive.
SF 525 (previously SSB 1158) / HF 851 (previously HSB 173) — Monitor: Introduced by Senate Committee on Agriculture by Chairperson Dawn Driscoll and House Committee on State Government by Chairperson Bloomingdale, these companion bills require education on nutrition, agriculture, food, and natural resources to K-12 students related to the career and technical education components of instruction. They also require the Department of Education to apply for a waiver to update nutritional guidelines creating exemptions for school lunch recommendations and prioritizing food groups in the following order: animal-based proteins, dairy products, vegetables, and fruits. The Senate version was considered by the Agriculture Committee on March 4 and passed by a vote of 11-4. It was renumbered and awaits consideration on the Senate floor. The House version was considered by the State Government Committee on March 5 and passed by a vote of 15-6. It was renumbered and awaits consideration on the House floor. Both bills are clear of the first funnel and still alive.
Water quality
SF 3 / House Study Bill (HSB) 83 — Support: Introduced by Sen. Lynn Evans and Rep. Megan Jones, this legislation designates additional flood mitigation activities to include reconnection of floodplains as well as wetland and oxbow restorations as “essential county purposes” in regard to the issuance of General Obligation bonds by counties. The Senate subcommittee considered the bill on Jan. 22 and recommended its passage. The House subcommittee considered the bill on Feb. 11 and recommended its passage. Both bills await consideration by the Local Government Committees. Both bills did not clear the first funnel and are considered dead.
Senate Joint Resolution (SJR) 6 — Monitor: Introduced by 17 senators, this bill repeals the natural resources and outdoor recreation trust fund from the constitution and directs funds from an increased sales tax for the benefit of property tax relief. The bill was introduced on Feb. 17 and considered by a subcommittee on Feb. 19, who recommended its passage by a vote of 2-1. Although this bill has not made it through a full committee, it is still alive and eligible for consideration, as joint resolutions are not subject to the funnel process.
HF 861 (previously HF 480) — Undecided: Introduced by five representatives, this bill removes the definition of beneficial use as it relates to water allocation permitting. Instead, the Iowa Department of Natural Resources would consider each permit request on a case-by-case basis when determining whether to grant a permit for the diversion, storage, or withdrawal of water, and must not be based on the category of use. After attending the subcommittee, Center staff learned of the limitations the current definition presents. We continue to research what the process is for permitting and other considerations to determine how to weigh in. The bill was considered by the Natural Resources Committee and passed by a vote of 20-1. It was renumbered and awaits consideration on the House floor. It cleared the first funnel and is still alive.
HF 329 / SF 200 — Undecided: Introduced by Rep. Mike Sexton and Sen. Amy Sinclair, these companion bills relate to the distribution of water exempt from taxation and the use of tax exemption certificates. With definitions for water utility and exemption certification provided, the bill requires a water utility to accept and retain a valid exemption certificate, rather than receiving the exemption themselves. The water utility shall not unnecessarily require a person, who presents a valid exemption certificate, to obtain a sale or water service refund from the Department of Revenue. After attending the House subcommittee meeting, Center staff learned this bill was requested by Iowa Select Farms and may no longer be needed based on new interpretations of current Iowa code. We continue to research the potential positive or negative implications for rural communities. The Senate version has been assigned a subcommittee, but a meeting has not yet been scheduled. A subcommittee considered the House version on March 12 and recommended its passage. The bill awaits consideration by the House Ways and Means Committee; it cleared the first funnel and is still alive.
HSB 226 — Undecided: Introduced by the House Committee on Way and Means Chairperson Bobby Kaufmann, this bill makes rural water districts a designated exempt entity for sales and use tax purposes. Center staff know rural water districts provide drinking water where private wells and municipalities do not. This bill cleans up the confusion the current code causes by allowing all purchases by rural water districts to be tax- exempt. A subcommittee considered the bill on March 13 and recommended its passage. It awaits consideration by the House Ways and Means Committee. It cleared the first funnel and is still alive.
Renewable energy
HF 404 (previously HSB 81) — Support: Introduced by Chairperson Shannon Lundgren of the House Commerce Committee, this bill would establish a community solar facility program enabling any entity, including farms and small businesses, to own and operate a solar farm that has at least three participants who subscribe to the community solar. Subscribers would receive a credit to their energy bill based on the energy generated by the facility. The program would allow those who are unable to invest in individual solar systems to participate in a renewable energy project and capture energy savings. A community solar facility program offers additional options for Iowans to invest in solar energy generation to help meet the growing energy demand while helping to lower participants’ energy bills. This bill passed out of the Commerce Committee on Feb. 11 and is scheduled for debate on the House floor today, March 18. It cleared the first funnel and is still alive.
HF 834 (previously HSB 123) / SF 585 (previously SSB 1112) — Undecided: Introduced by Gov. Reynolds, these bills address a variety of energy and utility issues, including a new requirement for public utilities to file Integrated Resource Plans every five years with the Iowa Utilities Commission, a process commonly found in other states. While the bill creates more transparency for future energy plans, the legislation does not allow official public input in the process. Another key update provides further protections for farmers by requiring transmission line developers to uphold certain land restoration standards, an idea supported by the Center. The bills passed out of their respective House and Senate Commerce Committees. As companion bills, they are headed to their respective Appropriations Committees for more work on the Integrated Resource Plan components and other ratepayer issues. Both bills cleared the first funnel and are still alive.
SF 376 — Undecided: Introduced by Sen. Mike Klimesh, this bill would have removed a county's ability to self-regulate wind and solar energy within their county. The bill laid out a set of standards that all county wind and solar energy ordinances would have to comply with. The bill had a subcommittee hearing on March 4th. While many of the standards met our recommendations for counties, we provided verbal testimony to amend the bill to either make it voluntary for counties to adopt or provide greater flexibility for standards to maintain more substantial local control. The bill passed out of the subcommittee on March 4; however, it was not considered by the full Commerce Committee before the first funnel. While this specific bill is considered dead, it could be amended to the governor’s energy bills. Center staff will actively monitor for new developments.
Other bills of interest
HF 369 (previously HF 33) — Support: Introduced by Reps. Chad Ingels and Shannon Latham, this bill establishes an agriculture education grant program to expand high school students’ access to instruction related to agriculture, food, and natural resources. The bill was considered by the House Education Committee on Feb. 11 and passed by a vote of 23-0. The bill has been renumbered and awaits consideration by the Appropriations Committee, but a subcommittee has not yet been assigned. It cleared the first funnel and is still alive.
SF 394 (previously SSB 1051) — Oppose: Introduced by Chairperson Jason Schultz of the Senate Judiciary Committee, this bill relates to pesticides and the duty to warn or label. It would provide pesticide companies civil liability protection in a court of law if their products meet sufficient duty to warn label requirements and are approved and registered by the Environmental Protection Agency. The bill was considered by the Senate Judiciary Committee on Feb. 19 and passed by a vote of 11-7. It cleared the first funnel, is still alive, and awaits consideration on the Senate floor.
HF 852 (previously HF 99) / SF 383 (previously SSB 1074) — Support: Introduced by House Commerce Committee Chair Rep. Shannon Lundgren and Senate Health and Human Services Committee Chair Sen. Mike Klimesh, these companion bills relate to pharmacy benefits managers, pharmacies, and prescription drugs. Fair pricing requirements allow rural pharmacies to be competitive and stay in business, preventing more areas of the state from losing local pharmacy services. The House version was considered by the House Commerce Committee on Feb. 11 and passed by a vote of 23-0. It has been renumbered and awaits consideration on the House Floor. The Senate version was considered by the Senate Health and Human Services Committee on Feb. 19 and passed by a vote of 16-1. It was renumbered and awaits consideration on the Senate floor. Both bills cleared the first funnel and are still alive.
HF 209 (previously HF 15) / SF 250 — Undecided: Introduced by Rep. Brian Lohse and Sen. Annette Sweeney, these companion bills create a rural attorney recruitment assistance program. Rural counties and municipalities recruiting attorneys to practice in their areas would be eligible to apply for financial incentives through the College Student Aid Commission, providing program requirements are met. Center staff are researching the potential impact of this legislation, as it limits assistance to no more than five attorneys across the state. The Senate bill did not clear the first funnel and is considered dead. The House bill was considered by the House Judiciary Committee and passed by a vote of 21-0. It has been renumbered and awaits consideration by the Appropriations Committee; a subcommittee has not yet been assigned. It cleared the first funnel and is still alive.
HF 143 — Support: Introduced by Rep. Devon Wood, this bill creates a rural veterinary practice innovation and revitalization fund and program. Funding would be appropriated to assist veterinary practices in rural counties. The bill was introduced on Jan. 27 and referred to the Appropriations Committee but has not yet been assigned a subcommittee. It cleared the first funnel and is still alive.
HF 235 — Undecided: Introduced by Rep. Henry Stone, this bill changes the general and rural county services levy rate limitation for upcoming fiscal years, allowing counties to adjust levy rates if property tax income is equal to or less than the expected general county service expenses. Center staff are monitoring this bill to better understand the monetary consequences for counties that have declining property tax income. The bill was introduced on Feb. 6 and referred to the Ways and Means Committee but has not yet been assigned a subcommittee. It cleared the first funnel and is still alive.
SF 270 / HSB 274 — Support: Introduced by Sen. Mike Klimesh and House Ways and Means Committee Chairperson Bobby Kaufmann, these bills create the Iowa Rural Development Tax Credit Program. Through an application process, the Iowa Economic Development Authority could award tax credits to qualifying businesses for investing in special capital contributions in rural areas. The Senate version was introduced and referred to the Ways and Means Committee, and a subcommittee was assigned on Feb. 18 but a meeting has not yet been scheduled. It cleared the first funnel and is still alive. The House version was considered by a subcommittee on March 11, who recommended its passage. It cleared the first funnel and is still alive.
HF 799 (previously HSB 143) / SF 522 (previously SSB 1160) — Undecided: Introduced by the Department of Agriculture and Land Stewardship, these bills seek to clean up some parts of the Iowa Code and make changes to a few sections, including those covering crop production nutrient application, animal health, and foreign disease threats, agriculture food processing and licensing fees, and agriculture marketing as it relates to the grain indemnity fund. Center staff are exploring the details of this large bill and how it would impact rural communities. The House bill was considered by the House Agriculture Committee on March 3 and passed by a vote of 22-0. It awaits consideration by the House Ways and Means Committee; a subcommittee has not yet been assigned. The Senate bill was considered by the Senate Agriculture Committee on March 3 and passed by a vote of 15-0. It awaits consideration by the Senate Ways and Means Committee; a subcommittee has been assigned, but a meeting has not yet been scheduled. Both bills are clear of the first funnel and still alive.
HF 624 (previously HF 56) — Support: Introduced by Reps. Bill Gustoff, Derek Wulf, and Megan Jones, this bill allows net income earned, received, or reported from farm tenancy by an S corporation, a trust, or an estate to be excluded from a farmer’s taxable income. To be eligible, the farmer must have held the property that is under tenancy for 10 or more years. The bill was considered by the House Ways and Means Committee on Feb. 25 and passed on a vote of 24-0. It was renumbered and awaits consideration by the House Ways and Means Committee again now that a fiscal note has been filed; a subcommittee has not yet been assigned. It cleared the first funnel and is still alive.
