A bill for an act prohibiting franchise fees imposed by cities and counties.

This bill prohibits cities and counties in Iowa from imposing or collecting franchise fees on businesses providing essential services (like utilities) starting July 1, 2025. It directly affects all cities and counties that previously collected such fees, which were typically based on a percentage of a business's gross sales. Key provisions eliminate the ability to charge these fees entirely after the effective date, while existing franchise agreements remain valid under current terms. The law specifically bans new franchise fees from being assessed or collected by any city or county on or after July 1, 2025.