Public workers theft bill, supported by Democratic Iowa Auditor Rob Sand, advanced by statehouse Republicans

DES MOINES — Public workers who steal from or defraud their government employer by more than $10,000 would be required to serve jail time under legislation supported by Democratic Iowa Auditor Rob Sand and advanced Thursday by Republican state lawmakers.

Under the proposal, a public employee convicted of stealing more than $10,000 from the government would not be eligible for deferred judgments. The proposed legislation was introduced by Democratic Rep. Elizabeth Wilson, a Democrat from Marion, and is similar to legislation proposed in previous years by Sand.

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The bill was advanced Thursday through a legislative subcommittee — the first step in the state lawmaking process — and approved unanimously by the Iowa House Judiciary Committee. Such action in the Iowa Legislature is unusual for bills introduced by the minority party.

“Let me just point out that Rep. Wilson submitted this bill, I thought it was a good bill, and here we are,” Rep. Steve Holt, a Republican from Denison who chairs the House Judiciary Committee, said before he and the other committee members approved the bill.

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Thanks to Thursday’s action, House File 2574 remains eligible for further consideration this session after this week’s legislative deadline.

John McCormally, with the Iowa Auditor’s Office, spoke in favor of the bill during the public input segment of Thursday’s subcommittee hearing. Sand has proposed similar legislation in previous years and did again in advance of the 2026 legislative session.

“It’s our position that making jail time part of theft of public funds is a necessary step toward accountability for those who are charged with stewardship of public funds, so we’re very supportive,” McCormally said.

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Wilson said she sees the legislation as an important step toward preventing cases of public employees defrauding taxpayers, especially in smaller towns where there are fewer checks in place because of smaller staff sizes.

“I brought this bill forward because we keep hearing about these small entities in different counties and cities, as well as some of the bigger cities, where we get theft with public dollars,” Wilson said. “And I think to make a strong statement about what this is doing and why we are having these instances and to increase the penalty is important.”

Lisa Davis Cook, with the Iowa Association for Justice, said her organization typically opposes legislation that limits a judge’s discretion in sentencing but sees this differently.

“Normally, if we see a bill that is taking away the judge's ability to sentence as they see fit, we have a real concern with that,” Davis Cook said. “With this one, I understand it is a question of public trust. And so it may be this is one of the few circumstances where taking away that judicial discretion is warranted.”

The proposal is now eligible for debate by the full Iowa House.

Comments: (515) 355-1300, erin.murphy@thegazette.com

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