Effective January 1, 2022, Iowa public entities, including public hospitals and schools, must ensure that any lodging provider they pay or reimburse with public funds for lodging, conferences, meetings, or banquet space has an up-to-date certification verifying compliance with Iowa’s human trafficking prevention requirements.

The new requirements are outlined in Iowa Code § 80.45A and apply to expenditures directly from the public entity as well as reimbursements by the public entity of expenses incurred by a public employee.

What is a “lodging provider”?

A “lodging provider” is defined broadly and includes a person or entity that owns, operates, or manages rooms, apartments, or sleeping quarters in a hotel, motel, inn, public lodging house, rooming house, cabin, apartment, residential property, or manufactured or mobile home which is tangible personal property or in a tourist court, or in any place where sleeping accommodations are furnished to transient guests for rent. It includes VRBO and Air BnB hosts, campgrounds, and hotels providing the public entity with only conference or meeting room space.

The new requirements relate only to lodging providers within the state of Iowa. If a public employee stays at an Iowa lodging provider which does not have an up-to-date certification by the Iowa Office to Combat Human Trafficking, public funds cannot be used to reimburse them.

Review and update policies

Iowa public employers should update their expense reimbursement policies to require any expenses to be paid or reimbursed from a lodging provider for lodging or conferences, meetings, banquets require the lodging provider have an up-to-date certification of compliance with human trafficking training requirements by the Iowa Office to Combat Human Trafficking before they are eligible for payment or reimbursement. Iowa maintains a website of lodging providers who have satisfied the training requirements.

In addition, public employers who are contractually obligated in agreements with third parties to pay for lodging provider expenses should review these agreements to determine whether Iowa Code § 80.45A is applicable and if so, amend such agreements to condition reimbursement on utilizing a certified lodging provider.