Relating to matters under the purview of the department of inspections, appeals, and licensing, and including effective date provisions

Sponsored by the Senate State Government Committee

Proposed by the Department of Inspections, Appeals, and Licensing · their explanation · all agency proposals

Topics:Alcohol, cannabis & gaming Families & human services Professional licensing

Same legislation: SSB 3040, HSB 586, HF 2503

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedJanuary 15, 2026
Done: SubcommitteeJanuary 15, 2026
Done: Senate committeeFebruary 11, 2026
Done: Passes the SenateFebruary 23, 202644–0
Done: House committeeApril 8, 2026
Done: Passes the HouseApril 21, 202693–0
Done: To the GovernorMay 5, 2026
Done: Signed into lawMay 15, 2026

Signed into law What’s a funnel?

What’s in it

AI summary This bill changes several rules regarding gambling, building codes, and care facilities in Iowa. It increases the amount of money state gaming commissioners can be paid back for their work expenses and gives them more power to stop illegal gambling. It also expands lifetime bans for certain gambling crimes and changes how taxes are taken out of gambling winnings. Additionally, the bill updates which state agencies help set rules for storm shelters and allows certain pediatric care centers to operate even if they have no residents.¹

Read the official explanation

This bill relates to matters under the purview of the department of inspections, appeals, and licensing. The bill is organized in divisions. DIVISION I —— GAMBLING. The bill raises the $30,000-per-year total cap on reimbursements that the state racing and gaming commission (commission) may pay to all commissioners for expenses incurred in the performance of the commissioners’ duties to $70,000 per year. The bill grants the commission explicit authority to issue cease and desist orders and seek injunctive relief against persons who offer gambling services in the state without an appropriate license or authorization. 15(4). The bill expands the lifetime ban to include sports wagering and advance deposit sports wagering. The bill also imposes a lifetime ban from sports wagering and advance deposit sports wagering on a person who is convicted twice of unlawful betting. The bill requires state income tax to be withheld on winnings from gambling activities authorized under Code chapter 99D (pari-mutuel wagering) and from slot machines authorized under Code chapter 99F (gambling games and sports wagering regulation) if the winnings are in an amount sufficient to require that an information return be filed under the federal Internal Revenue Code, rather than if the winnings exceed certain amounts. This provision of the bill takes effect upon enactment. DIVISION II —— STATE BUILDING CODE. The bill requires the state building code commissioner to consult with the department of homeland security and emergency management, instead of the department of public defense, in adopting rules relating to safe rooms and storm shelters. The bill also requires fees collected by the state building code commissioner to be deposited in the licensing and regulation fund instead of the general fund of the state. DIVISION III —— RESIDENTIAL CARE FACILITIES. The bill allows a residential care facility that is a pediatric palliative care center to serve as few as zero individuals. Under current law, an entity must serve at least three individuals to be defined as a residential care facility.

Changed since by amendments H-8349, S-5019; see Amendments.

Full bill text · What changed before it passed²

House subcommittee

Named March 23, 2026. On April 1, 2026 it recommended passage.

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Fiscal note

Cost: up to $15,000 Compare with other bills

AI summary This bill changes gambling reimbursement caps, updates state income tax withholding thresholds for gambling winnings, modifies building code consultation requirements, redirects building code fees, and adjusts service requirements for pediatric palliative care centers. Division I is expected to increase Gaming Regulatory Revolving Fund fees by $15,000 annually and will cause a significant timing delay in state income tax collections, resulting in a $7.8 million decrease for the General Fund in fiscal year 2027 and an annual decrease of $188,000 in subsequent years. Division II is estimated to deposit approximately $313,000 into the Licensing and Regulation Fund annually starting in fiscal year 2027, while Division III is not anticipated to have a fiscal impact to the state.³

From the note: Division I of the Bill is anticipated to increase fees paid into the GRF by $15,000 annually. The IRGC receives an annual appropriation from the GRF in the Administration and Regulation Appropriations Act. The fiscal impact of Division I on State income tax is anticipated to be revenue neutral but is expected to change the timing of revenues between fiscal years.

How the estimate changed