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HF 2768

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.

2025-2026 Regular Session

The bill requires over-budget utility regulation expenditures to be reimbursed with prior oversight, ensures costs are covered by charges, prioritizes Iowa (then U.S.) products in

Signed by Governor.
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WeVote Research Nonpartisan
Bill Summary · HF 2768

Summary of H.F. 2768 (2025-2026, Iowa)

This summary highlights the bill’s main purpose, key provisions, who is affected, and notable procedural or timeline aspects. The bill is focused on state government administration and regulation, with a mix of budgetary controls, purchasing preferences, cost-recovery through charges, and a limitation on a future appropriation.

1) Purpose and overall intent

  • The bill targets state government administration and regulation, including several named agencies and offices (e.g., Iowa Utilities Board, Department of Insurance and Financial Services, Department of Management, and other related agencies).
  • It emphasizes financial controls, revenue/charge adjustments to cover budgeted expenditures, procurement preferences for Iowa products, and a cap on a future general fund appropriation related to tobacco product manufacturers enforcement.

2) Key provisions and changes

A. Expenditures beyond budgeted amounts for utility regulation (Sec. 25)

  • When the Iowa Utilities Board or the related regulation expenditures exceed the amounts budgeted for utility regulation, those expenditures must be fully reimbursable.
  • Before spending or encumbering any amount in excess of the budgeted moneys, the following steps must occur:
    • a) The commission must notify the Department of Management, the Legislative Services Agency, and the Legislative Fiscal Committee of the need for the expenditures.
    • b) The commission must file with the notified entities the legislative and regulatory justification for the expenditures, along with an estimate of the expenditures.

B. Charges to cover budgeted appropriations (Sec. 26)

  • The Iowa Utilities Commission and each division of the Department of Insurance and Financial Services must include in their charges or revenues an amount sufficient to cover:
    • the amount stated in their appropriation, and
    • any state-assessed indirect costs determined by the Department of Administrative Services.

C. Iowa product and U.S. product procurement preference (Sec. 27)

  • As a condition of receiving an appropriation, any agency receiving funds under this division must give first preference to purchasing:
    • Iowa-made products or products produced by Iowa-based businesses.
    • If no Iowa option is suitable, second preference to United States-made products or products produced by U.S.-based businesses.

D. Limitation on a standing appropriation (Sec. 28)

  • For the fiscal year July 1, 2026, to June 30, 2027, a specific standing appropriation (designated for enforcement of Chapter 453D related to tobacco product manufacturers) is capped.
  • The amount appropriated from the General Fund for that designated purpose shall not exceed a specified amount (the bill text shows a numeric placeholder “-17-” which appears to be a formatting artifact in the excerpt; the intended cap amount would be provided in the final bill text).

3) Who is affected

  • State agencies and divisions named in the bill (notably the Iowa Utilities Board and the Department of Insurance and Financial Services) are directly affected through:
    • mandatory fiscal reporting and justification for any over-budget expenditures.
    • requirement to structure charges to cover appropriations and indirect costs.
    • procurement preferences prioritizing Iowa and then U.S.-made products.
  • The Department of Management, Legislative Services Agency, and Legislative Fiscal Committee are involved in oversight and notification requirements for excess expenditures.
  • Agencies relying on the tobacco product manufacturers enforcement appropriation could be impacted by the new cap (subject to the final cap amount).

4) Procedural and timeline aspects

  • The bill introduces a notification and justification requirement prior to expending funds beyond budgeted amounts for utility regulation (Sec. 25), ensuring legislative and executive oversight before over-expenditure.
  • It requires the affected departments/divisions to align charges and indirect cost allocations with appropriations (Sec. 26).
  • Procurement preferences (Sec. 27) become a budget condition for receiving appropriations, linking funding to local economic priorities.
  • A specific future (2026–2027) standing appropriation for tobacco product enforcement is limited in amount (Sec. 28), signaling tighter control over that line item.

5) Notes

  • The excerpt contains a placeholder “-17-” in the Sec. 28 cap amount, indicating the final numeric cap would be specified in the complete bill text. Readers should refer to the final enrolled bill for the exact cap.
  • The bill’s structure aligns with broader state budgeting and accountability practices, integrating oversight, cost-recovery, and local-product preference into appropriations.

If you’d like, I can provide a line-by-line mapping of each section to the current Iowa Code sections it would interact with or compare these provisions to prior-year budget control measures.

Compiled from official sources — confirm details with the bill’s official record.

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