All Roll Calls
Yes: 138 • No: 1
IowaSF 61991st General Assembly (2025–2026)SenateWALLET
A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and applicability provisions. (Formerly SF 591, SSB 1188.) Effective date: 04/22/2025, 07/01/2025. Applicability date: Conditional, 01/01/2024.
Sponsored By: COMMITTEE ON APPROPRIATIONS
Signed by Governor
ways and means
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Bill Overview
Analyzed Economic Effects
23 provisions identified: 13 benefits, 6 costs, 4 mixed.
Iowa tax break on mitigation bonds
Interest on bonds issued for the natural hazard mitigation program is exempt from Iowa income tax. State law also adds a subtraction for authorized income from these program bonds. This lowers Iowa taxes for investors who hold the bonds.
Lower taxes on disaster housing grants
If you received a qualifying state new housing grant that you applied for between August 20, 2024 and December 31, 2024, you can subtract that amount from your Iowa taxable income. This division takes effect upon enactment and applies to tax years starting on or after January 1, 2024. The subtraction is repealed January 1, 2028.
Business tax break for housing grants
If your business received a qualifying state new housing grant that you applied for between August 20, 2024 and December 31, 2024, you can subtract that grant amount from Iowa taxable income. The subtraction is repealed January 1, 2028.
Stronger enforcement for appraisers and umpires
The commissioner can file charges, subpoena records, and issue summary orders that take effect right away. Civil fines can be up to $1,000 per violation (max $10,000), or up to $5,000 each (max $50,000 in six months) if you knew or should have known; employers can be fined too. Unlicensed practice or willful violations are a class D felony, or class C if losses exceed $10,000. Many actions are grounds for discipline, including fraud, misappropriation, exam cheating, incompetence, and failure to pay taxes, child support, or student loans; licenses must be denied or suspended upon certified noncompliance. Investigation files are confidential but may be shared with regulators or law enforcement, and appraisers and umpires are expressly covered by insurance oversight laws.
Faster claim replies and fair inspections
Adjusters must not block timely insurer inspections. If your public adjuster’s delay would slow an inspection, you must allow the insurer to inspect without them. Adjusters must answer claim questions within 15 business days, and insurers must send needed claim forms and help within 15 business days. Adjusters cannot claim damage without inspecting the damaged areas and must give you and your insurer a detailed repair estimate. Public adjusters must provide a detailed invoice before asking you to pay. Adjusters also face conflict‑of‑interest bans and must keep claim records for at least 5 years.
No adjuster solicitations right after disasters
For at least 72 hours after a catastrophic disaster, public adjusters cannot contact you in person or by phone to get your business. You can reach out to them first. The insurance commissioner can extend this ban another 72 hours after a public hearing if needed.
Public adjuster contracts, fee caps, safeguards
Public adjusters must use a commissioner‑approved contract and tell your insurer within 72 hours. Fees are capped at 15% of non‑catastrophe payments and 10% of catastrophe payments. Your adjuster must keep your money in a separate trust account and deposit it within 5 business days, then pay contractors within 30 days after you approve the work. A public adjuster cannot accept or reject a settlement without your written consent and must act with complete loyalty to you. Contracts with unlicensed adjusters are void, and you owe them nothing.
Stronger homeowner rules for post-loss assignments
Home repair assignments must be clear and itemized, with bold 14‑point notices. You must sign, and the contractor must send a copy to you, your insurer, and any mortgagee within 5 business days. You can cancel for any reason within 5 business days after you get the signed copy, or if no substantial work starts within 30 days. After cancellation, the contractor must return all payments within 10 business days. Insurers keep their right to communicate with you, and assignments do not harm a mortgagee’s interests.
Stronger rules on post-loss assignments
Residential contractors who take a post-loss assignment cannot rebate your deductible, charge cancellation or processing fees, or act as a public adjuster without a license. They also cannot take insurer payments not tied to repair work. If a contractor breaks these rules, the assignment is void and it is an unfair practice. For at least 72 hours after a catastrophic disaster, contractors cannot make contracts that include a post-loss assignment. The insurance commissioner sends the consumer advocate to help and can extend the ban another 72 hours after a hearing.
Yearly disaster aid set-aside from reserves
Beginning July 1, 2025, the state sets aside each year 10% of the prior year’s maximum balance of the economic emergency fund for disaster response. Money is released only after a governor’s disaster proclamation and with executive council approval. Funds can move between departments and stay available until the end of the next fiscal year. They cannot replace other appropriations.
2024-25 funding for housing and cleanup
For July 1, 2024 to June 30, 2025, the state adds $11.6 million to the disaster recovery housing assistance fund and $2 million to the nuisance property remediation fund. Any unused money at year end stays available until the end of the next fiscal year.
Higher penalties and suspensions for adjusters
The commissioner can order you to stop violations and fine you up to $1,000 per violation (max $10,000). If you knew or should have known, fines can be up to $5,000 each (max $50,000 in six months). Acting without a license or willfully breaking the law is a felony, higher if losses exceed $10,000. Theft or misuse of trust funds is also a felony. If you are not in compliance with child support or state taxes, the commissioner must deny or suspend your license after 30 days’ notice; a court hearing can pause the action.
New licenses and rules for appraisers, umpires
Appraisers must be licensed, show training or experience (normally 3 years unless waived), and pass an exam; crop‑only appraisers are exempt. Appraisers must finish continuing education to renew and report name or address changes within 30 days. Appraisers and umpires must disclose conflicts quickly (5 business days for appraisers after hire; 3 business days for umpires after selection), and step aside if a disqualifying conflict exists. Umpires must sign a written contract before starting and issue a written, itemized award limited to the disputed issues. Appraisers and umpires must keep usual records and make them available; most appraisal records must be kept at least 3 years after final claim resolution. The division posts a public list of licensed appraisers with contact details and license dates.
New licenses, bond, and fees for adjusters
You cannot act as a public or independent adjuster in Iowa without a license. Resident and nonresident applicants must meet character, exam, and financial‑responsibility rules, and business entities must name a responsible Iowa‑licensed adjuster. Apply through the NIPR gateway; a license costs $50 for each 24‑month period, reinstatement is $50, and reinstatement after discipline is $100. Before licensing, you must carry a surety bond of at least $50,000; the bond needs 30 days’ notice to end or your license becomes inactive. Three months after April 22, 2025, anyone working as an independent or staff adjuster on January 1, 2025 must meet the new license and exam rules.
Stronger enforcement for adjuster misconduct
The division can fine, suspend, revoke, or refuse adjuster licenses for many causes, including fraud, crimes, misappropriation, incompetence, or lying on applications, and for failing to pay state income tax. A business can be punished if leaders knew or should have known about violations and did not act or report them. If a nonresident adjuster is disciplined in another state, their Iowa license becomes inactive immediately and they must notify the commissioner within 7 days. Complaint and investigation files are confidential but can be shared with regulators; crimes must be reported to law enforcement.
Licensing and reinstatement for appraisers/umpires
New appraiser and umpire applicants must pass a criminal history check. If your license was revoked, suspended, or forfeited, you can apply for reinstatement after meeting terms, satisfying licensing requirements, and paying fees; if no terms were set, you usually wait one year. If your application is denied or not renewed, you get a written reason and 30 calendar days to request a hearing.
Standard appraisal timelines and payment rules
After a proper appraisal demand, each side has 20 calendar days to pick an appraiser and 15 days for appraisers to agree on an umpire (or the division can select one). Appraisers then have 45 days to finish, and the umpire has 45 days to issue a written, itemized award. Each party pays its own appraiser and splits the reasonable umpire and joint costs equally. Unless the parties agree otherwise, the award is binding and the insurer must pay within 60 calendar days, subject to limits and deductibles. Starting January 1, 2026, all property policies in Iowa must include an appraisal clause that follows these rules.
Housing help after natural disasters
The Iowa Finance Authority runs a disaster recovery housing program. After the governor declares a disaster in your county, help is available for primary homes damaged on or after June 16, 2021. Homeowners can get forgivable loans to repair or replace a home, and down payment help, but homes cannot be in a 100‑year floodplain. If you sell before the loan term ends, you must repay the remaining balance. To qualify, damage must be beyond insurance and other aid, a local official must find the home repairable or beyond repair, awards cannot duplicate other aid, and you must register with the disaster case advocacy program. Renters can get short‑term rent help if a local administrator finds the home uninhabitable or beyond repair. No more than 5% of funds deposited on July 1 each year can be used for administration.
Tighter ethics and roles for adjusters
Adjusters cannot have a financial stake in your claim or take salvage from it. They must not handle claims beyond their skills or make false material statements. An adjuster cannot also be the appraiser or umpire on the same claim, and public and independent roles cannot be combined on one claim. Staff adjusters cannot do outside public or independent work while employed. Public adjusters cannot take a power of attorney, file a complaint in your name without your written consent, solicit you from 8 p.m. to 9 a.m., use unlicensed staff for licensed work, or offer to pay or waive your deductible.
New hazard mitigation loans and bonds
The state creates a loan program for projects that reduce disaster risk. The homeland security department and the Iowa Finance Authority run it and set rules. Money sits in dedicated accounts outside the general fund. The finance authority can issue bonds and pledge program revenues; these bonds are not state debt. The governor can direct emergency fund disbursements with executive council approval.
State fund finances hazard mitigation loans
The law creates a Natural Hazard Mitigation Revolving Loan Fund. Money comes from state appropriations, FEMA STORM grants, loan repayments, and other receipts. Starting July 1, 2025, the department may accept FEMA capitalization grants into the fund. Money is used mainly for loans to eligible entities for eligible project costs. The authority sets interest rates and repayment terms and may charge fees. The fund cannot lend to a private entity to buy real property, and the department must keep strong fiscal controls.
New licenses and fees for umpires, appraisers
Appraiser and umpire licenses are valid for two years. A new or renewed license costs $50. Reinstating or reissuing an expired or suspended license costs $100. Umpires must be licensed and pass an exam, with some crop-only umpires exempt; exam results are valid 90 days.
Clear exam and reciprocity for adjusters
Most adjuster applicants must pass a written exam, pay the exam fee, and apply within 90 days of the test. A joint exam is allowed if you also apply as an appraiser. You are exempt from the Iowa exam if you were licensed in another state with an Iowa-specific exam, or if you move to Iowa, apply within 90 days, and were in good standing. The law clarifies who counts as an adjuster and lets the commissioner set detailed rules. If you lost your license for discipline, you may seek reinstatement after meeting all terms, passing any exams, and usually waiting one year if no terms were set; you may need a criminal history check.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON APPROPRIATIONS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/17/2025
Passed House
Yes: 91 • No: 1
Senate vote • 4/16/2025
Passed Senate
Yes: 47 • No: 0
Actions Timeline
NOBA: Final
5/30/2025legislatureExplanation of vote.
4/24/2025legislatureSigned by Governor.
4/22/2025GovernorReported correctly enrolled, signed by President and Speaker, and sent to Governor.
4/21/2025SenateMessage from House.
4/21/2025HouseImmediate message.
4/17/2025legislaturePassed House, yeas 91, nays 1.
4/17/2025HouseSubstituted for HF 1012.
4/17/2025legislatureRead first time, passed on file.
4/17/2025legislatureMessage from Senate.
4/17/2025SenateNOBA: Senate Floor
4/16/2025SenateImmediate message.
4/16/2025legislaturePassed Senate, yeas 47, nays 0.
4/16/2025SenateAmendment S-3106 filed, adopted.
4/16/2025legislatureAmendment S-3103 filed, adopted.
4/16/2025legislaturePlaced on Ways and Means calendar.
4/14/2025legislaturePlaced on calendar.
4/10/2025legislatureCommittee report, recommending passage.
4/10/2025legislatureSubcommittee recommends passage.
4/10/2025legislatureSubcommittee Meeting: 04/10/2025 8:30AM Senate Lounge.
4/10/2025SenateNOBA: Senate Full Approps
4/9/2025SenateSubcommittee: Rowley, Dotzler, and Koelker.
4/8/2025legislatureReferred to Ways and Means.
4/7/2025legislatureCommittee report, approving bill.
4/2/2025legislatureIntroduced, placed on Appropriations calendar.
4/2/2025legislature
Bill Text
As Introduced
Enrolled
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