Hawkeye Reporter

The National Federation of Independent Business (NFIB), Iowa's prominent small business advocacy group, has highlighted several legislative successes from the 91st General Assembly, which concluded on May 14, 2025.

One significant achievement is the reform of the unemployment insurance tax system through SF 607. Iowa had accumulated nearly $1 billion in over-collected unemployment insurance taxes over recent years. In response, new legislation reduces the taxable wage base from $39,500 to $19,500 and simplifies tax brackets. This change is expected to save employers more than $800 million over five years. The bill passed with a vote of 60-27 in the House and 32-16 in the Senate. Governor Reynolds signed it into law on June 5, 2025.

Another key piece of legislation is HF 767, addressing challenges under Iowa's drug and alcohol testing statute. Supported by NFIB for several years, this reform allows employers to designate certain jobs as "safety sensitive positions," expands communication methods for test results, makes attorney fees "reasonable," and shifts the burden of proof from employers to plaintiffs in legal disputes. The bill passed with a vote of 60-32 in the House and 31-14 in the Senate. Governor Reynolds signed it into law on June 6, 2025.

Additionally, HF 860 was enacted to prevent state and local regulations from banning fuel-powered equipment. This legislation ensures that no Iowa government entity can prohibit individuals from using or maintaining fuel-powered equipment or parts designed for specific fuel sources. The bill received strong support with an 84-12 vote in the House and a 39-8 vote in the Senate. Governor Reynolds signed it into law on April 18, 2025.