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SF 619

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.

2025-2026 Regular Session

Establishes a natural hazard mitigation revolving loan program, financed by bonds, to fund disaster resilience projects and disaster recovery housing programs.

NOBA: Final
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Bill Summary · SF 619

Summary — SF 619 (Enacted 2025)

Status: Enacted (signed by Governor April 22, 2025)
Introduced: April 2, 2025 — Final (NOBA: Final, 2025-05-30)

Purpose

SF 619 is a multipart bill that (1) establishes and finances a natural hazard mitigation revolving loan program, (2) creates and funds disaster recovery housing programs, (3) reforms post-loss assignment-of-benefits and the licensing/discipline framework for insurance adjusters, appraisers, and umpires, and (4) provides a new, recurring appropriation from the Iowa Economic Emergency Fund for disaster response and recovery. The Act also includes bond-authority, appropriation, penalty, effective-date, and applicability provisions.

Key provisions (selected/high-level)

  • Natural hazard mitigation financing program (New sections 16.230–16.233 and related to chapter 29D)

    • Defines terms (department = DHS Emergency Management; fund = natural hazard mitigation revolving loan fund; program, project, loan recipient).
    • Authorizes the department (in consultation with the finance authority) to establish funds/accounts administered outside the state general fund (dedicated funds not subject to general appropriation).
    • Authorizes the Iowa finance authority to issue bonds and notes to capitalize the mitigation revolving loan fund and to meet federal matching obligations under the Stafford Act.
    • Bond and security rules: authority may pledge project revenues, loan repayments, fund balances, and other program accounts; may create reserve funds; bonds are special obligations of the authority (not state general obligation debt), exempt from state taxation and exempt interest from state income tax; authority members and bond signatories have no personal liability.

  • Licensing, discipline, and procedural changes for adjusters, appraisers, and umpires

    • Establishes administrative procedures for suspension, revocation, denial, and reinstatement when a certificate of noncompliance is issued by a licensing/issuing agency (including 30‑day timelines for hearings or withdrawal).
    • Reinstatement requirements: payment of fees and completion of continuing education as applicable; commissioner must notify licensees of suspension/reinstatement within 10 days.
    • Clarifies stays and court-ordered lifts of stayed proceedings (details in bill text).

  • Limitations on public adjuster powers (Amendment S‑3103)

    • Removes a broad grant of power of attorney to public adjusters; permits only a limited power of attorney solely to deposit claim payments into an insured’s fiduciary trust account per the cited provision.

  • Iowa Economic Emergency Fund appropriation (Amendment S‑3106)

    • For FY beginning July 1, 2025 and each year thereafter, 10% of the fund’s maximum balance (as calculated for the prior fiscal year) is appropriated from the Iowa Economic Emergency Fund to the Department of Management for disaster response, disaster recovery activities, or disaster aid to citizens.
    • Use is limited to declared disasters: disbursements require a gubernatorial proclamation under section 29C.6 and direction of the Governor with Executive Council approval.
    • Permits interdepartmental transfers (with reporting) and provides that disbursed moneys will generally not revert at fiscal year close but remain available through the succeeding fiscal year; funds may not be used to supplant existing appropriations.

Who is affected

  • Department of Homeland Security & Emergency Management (administration role)
  • Iowa Finance Authority (bond issuance, program cooperation)
  • Department of Management and Executive Council (disbursement authority for emergency fund moneys)
  • Loan recipients and project sponsors participating in mitigation financing
  • Insured homeowners, businesses engaged in disaster recovery housing, public adjusters, insurance adjusters, appraisers, umpires
  • Iowa Economic Emergency Fund balance and future budget flexibility for disaster response

Procedural / Timing notes

  • Division establishing the mitigation financing program declared effective upon enactment.
  • The FY funding appropriation from the Economic Emergency Fund begins July 1, 2025 and repeats each fiscal year subject to the required disaster proclamation and Executive Council approval.
  • Legislative actions: passed both chambers mid‑April 2025, enrolled, and signed by the Governor on April 22, 2025.

Note: The bill contains many additional, detailed implementation and administrative provisions (e.g., licensing process details, trust/agreement mechanics for bonds, program administration) and references to existing Code chapters (29C, 29D, 522C, etc.). This summary highlights the principal structural and fiscal changes. For legal or program implementation purposes, consult the enacted bill text and corresponding Code sections.

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

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