Iowa’s economy had its strongest months in three years, according to a Creighton University survey. The duration of the move into positive territory is unknown with impact of new tariffs acting as a wildcard.

The Mid-America Business Conditions Index surveys business purchasing managers in nine midwestern states – Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota – on a monthly basis. The survey looks at five key indicators:  new orders, production or sales of products, product inventories, delivery lead time, and employment. The Index scores these on a scale of 1-100, with 50.0 being a growth neutral score.

For March, the regional index came in at a reading of 56.7.  This was higher than the February figure of 52.0 and the highest figure since July 2022. The strong number may not last long, according to Dr. Ernie Goss, director of the survey and Creighton University economics professor.  Goss said the March survey showed a level of volatility in the regional economy, with the prospect of new tariffs raising the level of uncertainty.

The March figures for Iowa were a significant rebound from February’s low report.  The index for Iowa’s economy came in at 56.3, which is double digit growth when compared to February’s level of 44.5. Positive numbers were reported in four of the five survey categories, with only company inventories in negative territory. Despite continued slowdowns in the ag manufacturing sector leading to lower hours and fewer workers, Iowa’s employment numbers remain strong.

As with the regional economy, the Iowa reading could change based on the impact of changes in tariff policy.

This week the Iowa House Agriculture Committee passed Senate File 491 over the objections of urban Democrats. SF 491 amends existing laws restricting remotely piloted aircraft (RPA) over agricultural animal facilities to broadening the scope of the current RPA law.  The bill defines terms such as ‘farmstead’ and ‘farm commodity’ to clarify the scope of the legislation.  It further outlines the conditions under which a person may petition for injunctive relief against unauthorized RPA use. The measure provides penalties for violations are categorized as misdemeanors, with enhanced penalties for repeat offenders.  The bill aims to protect the privacy and security of farming operations from intrusive surveillance.  The bill was amended to remove language from the bill that limited the restriction to farmstead with more than 40-contigious acres.

Key aspects of the bill are that it:

• Prohibits the use of remotely piloted aircraft over farm properties, specifically within a secured area of 400 feet surrounding farm animals, equipment, or structures.
• Redefines ‘farmstead’ to include at least 40 contiguous acres used for farming, owned or leased by a farmer, generating a minimum of $15,000 from farm commodity sales in the previous year.
• Establishes penalties for violations categorized as misdemeanors, with enhanced penalties for repeat offenders.
• Allows owners or lessees of farm properties to petition for injunctive relief against unauthorized RPA use.
• Clarifies definitions of ‘farm animal’, ‘farm commodity’, ‘farm equipment’, and ‘farm structure’ to ensure comprehensive coverage under the law.

This week the House Economic Growth and Technology Committee unanimously passed Senate File 146. The bill came over from the Senate unanimously and goes after non-human ticket buyers that seem to get all of the Taylor Swift tickets before anyone else has a chance. Then the parents of the swifties are forced to buy them from the bots at a significant markup.

Senate File 146 defines bot as an automated software program that performs automatic and repetitive tasks and is designed to impersonate or replicate human activity on the internet. The bill provides that a person shall not use or create a bot to purchase tickets in excess of the posted limit for any one internet ticket sale. It also prohibits a person from circumventing or disabling an electronic queue, waiting period, presale code, or other sales volume limitation system associated with an internet ticket sale.

Who is going to arrest the non-human bots? The bill requires a ticket seller to report known violations to the attorney general within five days of becoming aware and provides that if the attorney general has reasonable belief that a person is violating this chapter, the attorney general has the sole authority to bring civil action to include a civil penalty of up to $100,000.

Senate File 146 can now move to the House Floor for final consideration.

It has been 18 years since the original bill on bullying passed the Legislature. Iowa’s law ties bullying to a list of traits and characteristics which invites identity politics into discipline. House File (HF) 865 eliminates the list of traits or characteristics which says bullying is tied to the following, “age, color, creed, national origin, race, religion, marital status, sex, sexual orientation, gender identity, physical attributes, physical or mental ability or disability, ancestry, political party preference, political belief, socioeconomic status, or familial status.”

HF 865 focuses on behavior over identity and applies the same standard to all kids. The emphasis placed on the list of traits, intentionally or not, had become wrapped up into identity politics left-wing social justice.

The original concerns about that 2007 law were that the practical implementation of the law, despite the words “includes but is not limited to” would veer toward some school personnel narrowly applying the law by only focusing on enumerated traits. In other words, if a student doesn’t have one or more of the listed traits, that student cannot be bullied. The situation that student is experiencing is a conflict. Instead of evaluating the negative behavior of one student towards another student, it evaluates the traits of the student first and then assigns a label of bullying or a conflict based on those traits.

Additionally, the bill adds the words “repeated” and “targeted” to the definition of harassment and bullying. Under the bill, that definition would read:

Harassment and bullying shall be construed to mean any repeated and targeted electronic, written, verbal or physical act or conduct toward a student that creates an objectively hostile school environment that meets one or more of the following conditions:

1. Places the student in reasonable fear of harm to the student’s person or property.
2. Has a substantially detrimental effect on the student’s physical or mental health.
3. Has the effect of substantially interfering with a student’s academic performance.
4. Has the effect of substantially interfering with the student’s ability to participate in or benefit from the services, activities, or privileges provided by a school.

This week the Senate Education Committee approved HF 865. The bill awaits final approval on the Senate floor.

With these changes Iowa’s bullying law focuses on what we all know bullying is – mean and persistent behavior of one student towards another student instead of focusing on identity, systemic inequalities or social justice.

HF 865 focuses on a straightforward, individual-centered approach rooted in observable behavior, universal standards, and personal responsibility, avoiding an overreach into cultural or ideological territory.

School bullying is repeated and targeted aggression by one or more students against another, where the aggressor exploits a clear advantage in strength, numbers, or social leverage to cause physical, emotional, or social harm. It’s about actions. A kid picking on another kid because they’re weak, weird, or just there doesn’t need a lecture on privilege or a list of protected traits; it’s bullying if it’s mean, ongoing, and one-sided.

HF 865 aligns with what Iowans voted for in 2024. It brings a practical, no-nonsense approach over an overly sensitive or politicized framework.

This week the House Ways and Means Committee approved House Study Bill 322 which proposes a new Code chapter that regulates off-farm Community Anaerobic Digester Systems separate from other code chapters (459, 459A, 459B) that provide the Department of Natural Resources (DNR) with environmental regulatory oversight of animal feeding operations (AFOs). This separation of Code provisions is because while animal feeding operations are not subject to county legislation or zoning, commercial manure processing to produce energy, and plant nutrient should be.

Interest in anaerobic digester utilization of manure has been growing as technology has figured out more reliable methods metabolize and hence, strip out and essentially harvest hydrogen molecules that can be converted into usable energy. At the same time, the digestion process both reduces objectionable odors from manure and eradicates bacterial and virus loads passes from animals. Likewise, the crop nutrient of the digestate is less likely to move in the environment after application and could help reduce surface water nutrient level. There I also a significant economic benefit from digester systems in that they produce an Iowa produced natural gas supply that nearby community can tap into to provide to their residents.

HSB 322 specifically enhances the developments through appropriate regulation of community anaerobic digester systems, which process organic materials, primarily manure, into renewable energy and nutrient-rich digestate. The measure creates a new Code chapter that outlines definitions, construction requirements, and operational standards for these systems, emphasizing the separation distances from residences and water sources to ensure environmental protection. The measure mandates permits for construction and establishes penalties for violations. It also specifies storage requirements for digester manure and feedstock, as well as digestate management practices. The legislation differentiate legal consideration applicable between Off-Farm Community Anaerobic Digesters and On-Farm Animal Agricultural Compliance Act structures. Overall, the legislation seeks to promote sustainable agricultural practices while safeguarding public health and the environment.

Key aspects of this legislation:

• Defines key terms related to agricultural animals, digester systems, and digestate;
• Establishes construction permit requirements for digester structures, including application fees not exceeding $1,000;
• Imposes a 2,500-foot separation distance requirements for digester structures from residences and water sources to protect air and water quality; and
• Mandates specific storage and management practices for digester manure, feedstock, and digestate.

Processed digestate may be used for non-agricultural purposes such as yard and garden uses and detached from DNR regulation with specific waivers for such use. However, processed digestate if applied to crop land must have a digestate management supplement attached to cropland subject to manure management plans applicable to confinement livestock operations or nutrient management plan required of open feedlots. If processed digestate from off-farm system is mixed with unprocessed manure DNR will regulate it as manure.

The second measure, HSB 323 deals with on-farm anaerobic digester systems identified with specific livestock farms and consequently regulated by DNR as an aspect of an animal feeding operation. The bill regulates anaerobic digester systems used in animal feeding operations, focusing on the storage, processing, and application of organic materials, particularly manure. The measure provides definitions and requirements for various structures involved in the digestion process, including digester feedstock storage and processing structures. The legislation mandates construction permits for these systems and outlines the responsibilities of owners and operators. The bill further sets forth separation distance requirements for air and water quality, equivalent to similar manure storage structure ensuring that these operations do not adversely affect nearby residences and water sources. The measure emphasizes compliance with existing environmental standards and includes penalties for violations.

Key aspects of HSB 323 are that it:

• Introduces definitions for ‘anaerobic digester system’ and related structures, clarifying their roles in processing organic materials;
• Mandates construction permits for digester structures, requiring detailed applications including engineering reports and operational plans;
• Establishes separation distance requirements to protect air and water quality, treating anaerobic digester systems as part of confinement feeding operations;
• Specifies that digestate produced from these systems is not regulated as manure unless combined with manure, and
• Imposes penalties for violations of the regulations outlined in the bill functionally equivalent to those assessed to animal feeding operations.

The combination of HSB 322 and HSB 323 further seeks to establish a regulatory fence so that the party with operational control of manure and anaerobic processed manure derived substances is the responsible party for any spill and spill clean-up cost and ensuing potential regulatory sanctions.

The House Judiciary Committee has considered a significant number of bills this year. Below is a list of a few key bills that have survived the second funnel and are ready for debate in either the House or Senate.

HF 571 / HSB 139 – Medical Conscious
House File 571, provides protections for medical practitioners, health care institutions, and health care payors regarding their rights to exercise their conscience, engage in whistleblower activities, and express free speech.

HF 864 / HF 62 – Obscene Material Online
House File 864 establishes civil liability for commercial entities that publish or distribute obscene material on the internet if minors access that material. It requires these entities to verify the age of individuals attempting to access such content using reasonable methods. If they fail to do so, they can be held liable for damages and must cover court costs and attorney fees. The bill does not apply to providers or users of interactive computer services.

HJR 9 / HSB 35 – Constitutional Amendment – Right to Confront Accuser 
House Joint Resolution 9 is a proposal to change the Iowa Constitution. It aims to protect children under 18 and witnesses with mental illnesses or disabilities by allowing laws that limit an accused person’s right to confront these witnesses face to face in court. If approved, this amendment would be published and then sent to the next group of lawmakers for further consideration before being put to a public vote.

SF 180 – Right to Refuse Certain Medical Services – Reason of Conscience
This bill allows individuals to refuse certain medical services, like vaccines or treatments, if they have personal or religious reasons for doing so. If someone chooses to refuse a medical service that is either declared an emergency measure or has special approval from health authorities, they cannot be punished or discriminated against by employers, businesses, or government officials. This means they can’t be denied a job, services, or access to commerce, and they can’t be treated unfairly in any way. If someone feels they have been treated unfairly after refusing a medical service, they can take legal action against the entity that discriminated against them and seek compensation or other legal remedies.

SF 473 – Foster Care and Adoption – Protection of Religious and Moral Beliefs
The bill prohibits the Iowa Department of Health and Human Services from requiring foster care providers and prospective adoptive parents to affirm or support policies related to sexual orientation or gender identity that conflict with their sincerely held religious or moral beliefs. It ensures that individuals cannot be disqualified from providing foster care or adopting based on these beliefs. The bill also allows for legal action if these provisions are violated and emphasizes the importance of considering the beliefs of the child and their family when making placement decisions.

This week the Senate Workforce Committee passed House File 441 which makes significant changes to the Employment Appeal Board’s authority, specifically assigning it responsibilities previously held by the Public Employment Relations Board. The bill clarifies the board’s jurisdiction over contested cases and outlines the procedures for judicial review, including the filing process and representation during such reviews.  Furthermore, it specifies that the board and the Department of Inspections, Appeals, and Licensing are not liable for unemployment benefits that are not due or payable.  The bill specifically:

• Creates of a full-time Employment Appeal Board within the Department of Inspections, Appeals, and Licensing,
• Assigns powers and responsibilities to the Employment Appeal Board as per Code chapter 20,
• Clarifies the application process for rehearing and judicial review procedures, and
• Exempts the Employment Appeal Board and the Department of Workforce Development from liability for unemployment benefits not due or payable.

This week is the second legislative funnel, which requires bills to have passed a policy committee in the chamber opposite of its origin. As the General Assembly approached this deadline the House Local Government Committee reported out four Senate Files.

SF 595 aims to reign in excessive and burdensome local regulation that contributes to rising housing costs. The bill would limit stormwater regulations that are stricter than the level when the land was originally approved for platting, subdivision, or plotting. The bill also limits cities and counties from requiring additional licenses and/or licensing fees for general contractors and subcontractors.

SF 579 requires local agency and commissions on civil rights to refer open complaints to the Iowa Office of Civil Rights for processing if the complaint remains open after 12 months if a party requests.

SF 594 directs the State Fire Marshal to conduct a study on the cost and effectiveness for the 4 most populous counties to provide countywide fire protection services.

This week the House Natural Resources Committee approved four Senate Files before the second funnel deadline.

SF 593 creates a requirement for county auditors to create and file a district parcel record with the county recorder upon receiving relevant survey documents.  This record must detail all parcels within a drainage or levee district, including legal descriptions, parcel identification numbers, and owner names. Auditors who have not filed such records before the act’s effective date must do so by June 30, 2026. The legislation aims to enhance transparency and organization regarding land parcels in these districts, ensuring that all relevant information is systematically recorded and accessible.

The instigation for SF 593 is that there are a number of counties with extensive drainage district or levee district acreages where construction and maintenance of such systems frequently create a substantial assessment to properties benefitting from those system that haven’t attached that information to the property.  What sometime happens is a person may purchase such property not knowing the size of district assessment that come with the property. Once this information is transferred to property records, as required by the legislation, the provision requiring the catch up or recording such information will auto-repeal since going forward any changes to assessment will be updated to property records.

The second bill, SF 427 modifies existing licensure process for professional land surveyors in Iowa that was changed by the Governor’s reorganization legislation to allow reciprocity across state lines of license professionals. There have been several instances where out-of-state professional land surveyors didn’t understand unique nuances of Iowa laws and regulations which apply to these activities. Because the entities are not licensed in Iowa, or were operating under a temporary license, the state couldn’t effectively discipline the party involved for the mistakes that were made. This legislation simply mandates that applicants seeking to do work in Iowa must successfully pass an examination that focuses on the laws specific to the state. The bill further prohibits the issuance of temporary licenses by the engineering and land surveying examining board. These changes aim to ensure that licensed professionals are well-versed in state laws, thereby enhancing the quality and reliability of land surveying practices in Iowa.

The third measure passed by the House Natural Resources Committee was SF 256 that clarifies the process by which land boundaries and corners can be established through acquiescence. Historically this could happen with agreement of both parties, but a recent Iowa Supreme Court ruled otherwise. The measure stipulates that if boundaries have been recognized and acquiesced in for a period of ten years, they shall be permanently established. Notably, the measure introduces a self-executing provision, meaning that once established, these boundaries remain in effect even if the adjacent tracts come under common ownership. Furthermore, it allows for the possibility of new boundaries to be recognized and established if they are acquiesced by both landowner for another ten-year period. This legislation aims to provide clarity and stability in property boundary disputes.

The final measure that was approved was SF 148 that modifies the existing provisions for issuing wild turkey hunting licenses to farm unit owners and tenants.   Existing law allows for one free wild turkey license to be issued annually to either the owner or tenant, but not both. This bill extends the validity of such licenses to any open turkey hunting season and does not require the holder to specify the season at time of obtaining the license. The measure specifies that the hunter with these licenses must use the method of take specified for the particular season the hunter is in the field.

Four House Public Safety Bills have made it to the Governor’s desk.

HF 180 / HSB22 – Grooming 
Individuals convicted of grooming, under current Iowa code, will be required to register as tier I sex offenders for a period of 10 years.

HF 181 / HSB 29 – THC Open Container 
House File 181 prohibits drivers and passengers from possessing open containers of beverages containing tetrahydrocannabinol (THC) in the passenger area of motor vehicles. The bill aligns with existing laws that restrict open containers of alcoholic beverages. Violating this law is classified as a simple misdemeanor, punishable by a scheduled fine of $260.

HF182 / HSB25 – Controlled Substances 
This bill updates Iowa’s controlled substances schedules by adding new substances and modifying existing classifications to align with federal regulations. It includes specific chemical compounds that are considered dangerous and may lead to severe penalties for violations, including significant fines and prison time. Additionally, the bill addresses reporting requirements for precursor substances used in the production of controlled substances. The legislation is set to take effect immediately upon enactment

SF 397 / HF 177 / HSB 24 – Assault Against Certain Professions
Senate File 397 increases penalties for assaults against certain occupations, including peace officers, correctional staff, juvenile detention staff, and Department of Inspections Appeals and Licensing (DIAL) inspectors. It increases the severity of penalties for assaults committed with intent to cause serious injury or using a dangerous weapon. The bill also includes provisions for assaults that result in contact with bodily fluids, such as saliva, and establishes a minimum seven-day sentence for certain offenses.

After several years of discussion and debate, the Iowa House of Representatives passed legislation last week limiting how a driver can use their cell phone while operating a motor vehicle.

Last Wednesday, the chamber debated Senate File 22. The bill requires a driver to use their cell phone in the hands-free mode when operating a motor vehicle.  Under the new law, a driver could not have their phone in their hand while making a call or utilizing an app. The bill does provide some exceptions to the ban including public safety officials who are performing their official duties, health care professionals who are dealing with a health care emergency, and motorists who are reporting an emergency.

This requirement will go into effect on July 1st. Drivers who are found to be violating the law will be issued a warning for the first six months. Actual citations, which will be punishable with a $100 fine, will not be issued until January 1, 2026.

The new language replaces the state’s current ban on texting while driving. The current law was found to be difficult to enforce, as it was very hard for law enforcement to verify that a suspected driver was, in fact, texting while operating a motor vehicle.

With the House passage of Senate File 22, the bill went to the Governor’s office for final action. On the morning of April 2nd, Governor Reynolds signed the bill into law.

Last week the Iowa Department of Revenue announced it is in the final year of major efforts to enhance and improve the overall efficiency department technology. These efforts include a range of modernized initiatives and customer-centered solutions designed to better serve the people, local governments, and businesses of Iowa and to streamline tax and licensing-related processes.

This November the Iowa Department of Revenue will go live with new capabilities in the integrated tax and licensing system and customer facing portal, GovConnectIowa. These updates will provide new benefits to lottery retailers and to alcohol retailers, brewers, distillers, brokers, shippers, carriers, and manufacturers.

New capabilities and efforts include:

• Integrating various alcohol and lottery licenses and permits into GovConnectIowa, simplifying the management process for all stakeholders.
• Making it easier for owners and third parties to manage their authority levels via GovConnectIowa, offering a more efficient, user-friendly experience.
• Electronic filing options for all beer, wine, and alcohol-related reports, providing a more convenient, streamlined process for compliance.
• Law Enforcement Portal will integrate alcohol education and compliance initiatives, supporting law enforcement and improving regulatory oversight.
• Enhancing the GovConnectIowa Licensing Portal to facilitate alcohol license reviews and reporting, ensuring a smoother process for managing these tasks.
• Developing a public database that allows users to easily search for alcohol and lottery licenses and permits, promoting transparency and accessibility.

More details and updates will be provided as it gets closer to going live in November.

As always, you can can shoot me an email with any questions or concerns at taylor.collins@legis.iowa.gov or you can call the Capitol Switchboard and leave me a message at (515) 281-7340.

Sincerely,

Rep. Taylor Collins