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SF 378 – Undivided Rural Highways, Speed Limit (LSB1416SV)
Staff Contact: Garry Martin (515.281.4611) garry.martin@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 378 increases the default speed limit to 60 miles per hour (mph). The Bill
authorizes the agency that exercises jurisdiction over a highway for which the speed limit is
increased to attach nonpermanent overlays or stickers approved by the Department of
Transportation (DOT) to existing speed limit signs to display the new speed limit until the speed
limit sign is permanently replaced.
The Bill does not increase the 55-mph minimum speed limit a local authority is authorized to
provide for by ordinance under Iowa Code section 321.293.
Background
Under current law, the default speed limit for all vehicular traffic is 55 mph, unless otherwise
provided. Construction and maintenance of the primary road system, under the DOT, is funded
by the Primary Road Fund (PRF). Construction and maintenance of secondary roads is funded
by counties, which are provided for through a variety of federal, State, and local revenue.
Assumptions
• The DOT will temporarily replace speed limit signs with an overlaying material before fully
replacing speed limit signs. The timeline to permanently replace each sign is unknown.
• There are an estimated 1,794 55 mph speed limit signs that will each cost an estimated $52
for an overlay and an estimated $171 to be replaced under the jurisdiction of the DOT.
• Under the jurisdiction of counties, there are an estimated 3,465 55 mph speed limit signs
across the State that will cost an estimated $111 each to replace.
Fiscal Impact
Senate File 378 is estimated to have a one-time cost of $783,000 as shown in Figure 1. Of this
amount, $476,000 will occur in FY 2026. Any costs incurred by the DOT will be paid from the
Primary Road Fund. Any costs for county sign replacement will be paid by individual counties.
Figure 1 – Implementation Costs of SF 378
DOT Temporary Overlay 93,000$
DOT Sign Replacement 307,000
County Sign Replacement 383,000
Total Cost 783,000$
Fiscal Note
Fiscal Services Division 2
Sources
Department of Transportation
Iowa County Engineers Association
Legislative Services Agency
/s/ Jennifer Acton
April 1, 2025
Doc ID 1525393
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov