The bill establishes a Natural Hazard Mitigation Financing Program in Iowa, which aims to provide loans to eligible entities for projects that mitigate the impacts of natural hazards. It creates a dedicated revolving loan fund managed by the Department of Homeland Security and Emergency Management, funded through appropriations, federal grants, and loan repayments. The bill outlines the responsibilities of the department and the Iowa Finance Authority in administering the program, including the issuance of bonds and notes, and specifies that these funds will not be part of the state’s general fund. Additionally, it amends existing laws to incorporate this new program and its funding mechanisms, ensuring compliance with federal regulations under the STORM Act.

Moreover, the bill introduces new regulations for residential contractors and public adjusters, including licensing requirements, standards of conduct, and penalties for violations. It establishes that post-loss assignments cannot be entered into by residential contractors for a minimum of seventy-two hours following a catastrophic disaster and mandates specific disclosures in contracts. The bill also clarifies the roles and responsibilities of appraisers and umpires in the insurance claims process, requiring all property insurance policies issued after January 1, 2026, to include an appraisal clause that adheres to the new regulations. Overall, the legislation aims to enhance consumer protection, streamline disaster recovery efforts, and ensure ethical practices within the insurance industry.

Statutes affected:
Introduced: 16.28, 16.232, 16.57B, 29C.6, 422.35, 507B.4, 515.137A, 505.8, 522B.5A, 522C.2, 522C.4, 522C.5, 522C.6, 522C.15, 522B.11, 8.55