Labor & Employment

This bill revises regulations for city civil service employees, primarily impacting police and fire departments, and modifies city civil service commissions. It prohibits cities with civil service commissions from establishing citizen review boards for officer conduct and mandates that larger cities (over 50,000 residents) establish civil service commissions with five to seven members. The legislation also changes the standard for employee discipline, requiring "just cause" and proof by a "preponderance of the evidence" for violations of law, city policies, or department rules, with cities bearing the burden to show punishment is proportionate. Furthermore, it requires the disclosure of exculpatory evidence to employees facing charges and adjusts appeal hearing procedures.

SF 315, known as the "Iowa Competitive Pharmacy Benefits Managers Marketplace Act," aims to reduce prescription drug costs for public employees in self-funded state health plans. The bill mandates that the state department procure pharmacy benefits manager (PBM) services through a "reverse auction" process. This online, competitive bidding system allows PBMs to offer progressively lower prices for their services. Additionally, the department must acquire a technology platform to conduct these auctions and perform detailed, line-by-line audits of PBM claims to ensure contract compliance. The first PBM contract awarded through this new system is scheduled to take effect on January 1, 2026.

Senate File 507 proposes to restrict diversity, equity, and inclusion (DEI) programs within county and city governments in Iowa. The bill would prevent counties and cities from establishing DEI offices or hiring staff to perform DEI-related duties. It also prohibits local governments from requiring DEI statements or giving preferential consideration based on them. The bill defines "diversity, equity, and inclusion" broadly, including efforts to influence composition or promote differential treatment based on characteristics like race, sex, or gender identity, and restricts the promotion of certain related concepts. However, it explicitly allows for legal compliance activities related to federal anti-discrimination laws.