A bill for an act relating to captive insurance companies and life captive reinsurance companies, and including civil penalties.

This bill strengthens privacy protections for tax returns filed by captive insurance companies and life captive reinsurance companies in Iowa. It prohibits state employees from inspecting or disclosing these returns (with violations punishable as a serious misdemeanor, including dismissal from state employment) while allowing sharing with federal tax authorities or other states under formal agreements. The bill also clarifies incorporation procedures for these companies and defines key terms like "captive company," "protected cell," and "foreign captive company" to standardize regulatory oversight. It directly affects captive insurance entities operating in Iowa and state officials handling their tax filings. The changes focus on regulatory clarity and confidentiality, not new taxes or financial obligations.