Iowa House Bill HF1044

Iowa 2025-2026 Regular Session

• Introduced: 5/9/25
• Engrossed: 5/13/25
• Enrolled: 5/28/25
• Enrolled: 5/27/25
• Passed: 6/11/25

Caption

A bill for an act relating to and making appropriations for state government administration and regulation, including the department of administrative services, auditor of state, ethics and campaign disclosure board, offices of governor and lieutenant governor, department of inspections, appeals, and licensing, department of insurance and financial services, department of management, Iowa public employees’ retirement system, public information board, department of revenue, secretary of state, treasurer of state, and utilities commission, and providing for properly related matters including the deposit of captive company premium tax revenue. (Formerly HSB 343, HSB 341.) Effective date: 07/01/2025.

Summary

HF 1044 is Iowa’s fiscal year 2025-2026 appropriations bill for a broad set of state government administration and regulatory agencies. It funds operations for the Department of Administrative Services, Auditor of State, Ethics and Campaign Disclosure Board, Governor and Lieutenant Governor, Department of Inspections, Appeals, and Licensing, Department of Insurance and Financial Services, Department of Management, IPERS, the Public Information Board, Department of Revenue, Secretary of State, Treasurer of State, and the Iowa Utilities Commission. The bill sets agency operating budgets, full-time equivalent staffing limits, and several special-purpose allocations, including funding for Terrace Hill, state library services, historical resources, health facilities regulation, professional licensing, gaming regulation, and utility and tax administration. The bill also contains several policy and fiscal provisions beyond base appropriations. It authorizes carryforward of certain unspent funds, sets a $2 monthly administrative charge for state employee health insurance contracts, directs the Department of Inspections, Appeals, and Licensing to collect and retain certain licensing and registration fees while depositing $800,000 into the general fund, and allows the Secretary of State to refund certain filing fees under rules it adopts. It also includes a large, long-term appropriation for a pension administrative system at IPERS and directs some revenues, such as captive insurance premium tax receipts, into the captive insurance regulatory and supervision fund. In terms of state law impact, HF 1044 amends Iowa Code provisions governing captive insurance funding by redirecting premium tax receipts into the captive insurance regulatory and supervision fund and updating the fund’s revenue sources. It also affects how several agencies may use and retain fees, how certain funds may carry forward between fiscal years, and how some administrative costs are recovered. The bill reinforces existing appropriations structures while making targeted changes to revenue deposits, fee handling, and agency spending authority. The general sentiment reflected in the voting history appears to be supportive overall, but not unanimous. The bill passed the House and Senate with clear majorities, indicating broad agreement on the need to fund core state administrative and regulatory functions. At the same time, the votes show meaningful opposition, especially on an attempted suspension of the rules to consider amendment H-1336, which failed by a wide margin, suggesting disagreement over at least one proposed change to the bill. The main points of contention likely centered on the amendment process and on the bill’s mix of appropriations and policy directives. Because the bill covers many agencies and includes provisions affecting fees, fund transfers, and long-term spending authority, members may have differed on the size and structure of agency budgets, the use of dedicated funds, and the redirection of revenues such as captive insurance premium taxes. The recorded votes suggest the underlying appropriations package was acceptable to most legislators, while specific amendments or adjustments drew sharper division.

Impact

HF 1044 appropriates state funds for FY 2025-2026 across multiple administrative and regulatory agencies, establishes or limits staffing and spending authority, and modifies several fund and fee provisions. It affects state budget law, agency operating authority, fee retention and remittance rules, and the deposit of captive insurance premium tax revenue into the captive insurance regulatory and supervision fund. It also creates or extends carryforward authority for certain unspent balances and sets specific administrative charges and reporting requirements for selected agencies and programs.

Sentiment

The bill appears to have been generally supported as a routine but substantial appropriations measure, with passage in both chambers by comfortable margins. The votes suggest broad bipartisan acceptance of the need to fund state government administration and regulation, though not without dissent. The failed motion to suspend the rules for amendment consideration indicates that while the overall bill was viable, there was disagreement over at least some proposed changes and the pace or manner of floor action.

Contention

The most visible contention in the available record was over amendment H-1336, which failed to obtain the votes needed to suspend the rules for consideration. That suggests at least some legislators wanted to alter the bill’s contents before final passage. More generally, likely areas of disagreement included the size of agency appropriations, the use of dedicated funds and fee revenues, the long-term IPERS system appropriation, and the bill’s policy riders such as fee refunds, fund carryforwards, and the redirection of captive insurance premium tax receipts.