This bill establishes new provisions for settlement agreements involving counties and cities in Iowa. It allows counties and cities to enter into settlement agreements that resolve legal disputes related to monetary damages, equitable relief, or violations of rules or statutes. Importantly, the bill mandates that the respective governing bodies—county boards of supervisors and city councils—must hold a public hearing on any such settlement agreement. They are required to publish a notice of the hearing at least four days but no more than twenty days in advance.

Furthermore, the bill stipulates that no implementation of the settlement agreement or any payments related to it can occur until the agreement has been approved during the public hearing. This process aims to enhance transparency and public involvement in the decision-making related to legal settlements by local governments.