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House Journal: Monday, February 27, 1995

The House met pursuant to adjournment at 10:05 a.m., Speaker
Corbett in the chair.
Prayer was offered by Reverend Bruce Rulapaugh, Grace Baptist
Church, Sheffield.
The Journal of Friday, February 24, 1995 was approved.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Reverend Bruce Rulapaugh,
Sheffield.
INTRODUCTION OF BILL
House File 221, by Hurley, a bill for an act relating to
handicapped parking and providing a penalty.
Read first time and referred to committee on transportation.
QUORUM CALL
A non-record roll call was requested to determine that a quorum
was present.  The vote revealed sixty-three members present,
thirty-seven absent.
The House stood at ease at 10:15 a.m., until the fall of the
gavel.
The House resumed session at  12:25 p.m., Larson of Linn in the
chair.
On motion by Siegrist of Pottawattamie, the House was recessed
at 12:26 p.m., until 1:30 p.m.
AFTERNOON SESSION
The House reconvened at 1:42 p.m., Speaker Corbett in the chair.
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Greiner of Washington, until her arrival, on request of Van
Maanen of Marion.
CONSIDERATION OF BILLS
Special Order Calendar
Senate File 69, a bill for an act relating to county
expenditures of property taxes for mental health and
developmental disabilities costs
by providing for reduction of property taxes, making
appropriations, and providing an effective date, with report of
committee recommending amendment and passage, was taken up for
consideration.
Halvorson of Clayton offered amendment H-3030 filed by the
committee on ways and means as follows:

H-3030

 1     Amend Senate File 69, as passed by the Senate, as
 2   follows:
 3     1.  By striking everything after the enacting
 4   clause and inserting the following:
 5	"DIVISION I
 6	INCOME TAX REDUCTION AND SPECIAL FUNDS
 7     Section 1.  Section 422.4, subsection 1, paragraphs
 8   b and c, Code 1995, are amended to read as follows:
 9     b.  "Cumulative inflation factor" means the product
10   of the annual inflation factor for the 1988 1995
11   calendar year and all annual inflation factors for
12   subsequent calendar years as determined pursuant to
13   this subsection.  The cumulative inflation factor
14   applies to all tax years beginning on or after January
15   1 of the calendar year for which the latest annual
16   inflation factor has been determined.
17     c.  The annual inflation factor for each of the
18   1988 1995, 1996, 1997, 1998, and 1999 calendar
year
19   years is one hundred percent.
20     Sec. 2.  Section 422.5, subsection 1, unnumbered
21   paragraph 1, and paragraphs a through i, Code 1995,
22   are amended by striking the unnumbered paragraph and
23   lettered paragraphs and inserting in lieu thereof the
24   following:
25     A tax is imposed upon every resident and
26   nonresident of the state which tax shall be levied,
27   collected, and paid annually upon and with respect to
28   the entire taxable income as defined in this division
29   at rates and for tax years beginning in the following
30   calendar years as follows:
31     On all taxable
32     income exceeding
33     the beginning                  CALENDAR YEARS          
   
34     amount through                                   1999 and
35     the ending                                      
subsequent
36     amount:              1995    1996   1997   1998  years
37     a.  $     0- 1,060    .4 %    .4 %   .35%   .35%  .35%
38     b.    1,060- 2,120    .8      .75    .75    .7    .7
39     c.    2,120- 4,240   2.65    2.55   2.45   2.35  2.3
40     d.    4,240- 9,540   4.9     4.75   4.55   4.35  4.25
41     e.    9,540-15,900   6.65    6.45   6.2    5.95  5.8
42     f.   15,900-21,200   7.05    6.8    6.6    6.3   6.1
43     g.   21,200-31,800   7.35    7.15   6.9    6.6   6.4
44     h.   31,800-47,700   8.6     8.3    8.05   7.65  7.5
45     i.   47,700+         9.75    9.45   9.15   8.7   8.5
46     Sec. 3.  Section 8.56, subsection 1, Code 1995, is
47   amended to read as follows:
48     1.  A cash reserve fund is created in the state
49   treasury.  The cash reserve fund shall be separate
50   from the general fund of the state and shall not be
Page 2  
 1   considered part of the general fund of the state
 2   except in determining the cash position of the state
 3   as provided in subsection 3.  The moneys in the cash
 4   reserve fund are not subject to section 8.33 and shall
 5   not be transferred, used, obligated, appropriated, or
 6   otherwise encumbered except as provided in this
 7   section.  Notwithstanding section 12C.7, subsection 2,
 8   interest or earnings on moneys deposited in the cash
 9   reserve fund shall be credited to the rebuild Iowa
10   economic emergency fund infrastructure account
created
11   in section 8.57.  Moneys in the cash reserve fund may
12   be used for cash flow purposes provided that any
13   moneys so allocated are returned to the cash reserve
14   fund by the end of each fiscal year.  However, the
15   fund shall be considered a special account for the
16   purposes of section 8.53.
17     Sec. 4.  Section 8.56, subsection 4, paragraph b,
18   Code 1995, is amended to read as follows:
19     b.  In addition to the requirements of paragraph
20   "a", an appropriation shall not be made from the cash
21   reserve fund which would cause the fund's balance to
22   be less than three percent of the adjusted revenue
23   estimate for the year for which the appropriation is
24   made unless the bill or joint resolution making the
25   appropriation is approved by vote of at least three-
26   fifths of the members of both chambers of the general
27   assembly and is signed by the governor.
28     Sec. 5.  Section 8.57, subsection 1, paragraph a,
29   Code 1995, is amended by striking the paragraph and
30   inserting in lieu thereof the following:
31     a.  The cash reserve goal percentage for fiscal
32   years beginning on or after July 1, 1995, is five
33   percent of the adjusted revenue estimate.  For each
34   fiscal year beginning on or after July 1, 1995, in
35   which the appropriation of the surplus existing in the
36   general fund of the state at the conclusion of the
37   prior fiscal year pursuant to paragraph "b" was not
38   sufficient for the cash reserve fund to reach the cash
39   reserve goal percentage for the current fiscal year,
40   there is appropriated from the general fund of the
41   state an amount to be determined as follows:
42     (1)  If the balance of the cash reserve fund in the
43   current fiscal year is not more than four percent of
44   the adjusted revenue estimate for the current fiscal
45   year, the amount of the appropriation under this
46   lettered paragraph is one percent of the adjusted
47   revenue estimate for the current fiscal year.
48     (2)  If the balance of the cash reserve fund in the
49   current fiscal year is more than four percent but less
50   than five percent of the adjusted revenue estimate for
Page   3
 1   that fiscal year, the amount of the appropriation
 2   under this lettered paragraph is the amount necessary
 3   for the cash reserve fund to reach five percent of the
 4   adjusted revenue estimate for the current fiscal year.
 5     (3)  The moneys appropriated under this lettered
 6   paragraph shall be credited in equal and proportionate
 7   amounts in each quarter of the current fiscal year.
 8     Sec. 6.  Section 8.57, subsection 1, paragraph b,
 9   Code 1995, is amended to read as follows:
10     b.  Commencing June 30, 1993, the The surplus
11   existing in the general fund of the state at the
12   conclusion of the fiscal year is appropriated for
13   distribution in the succeeding fiscal year as provided
14   in this section subsections 2 and 3.  Moneys
credited
15   to the cash reserve fund from the appropriation made
16   in this paragraph shall not exceed the amount
17   necessary for the cash reserve fund to reach the cash
18   reserve goal percentage for the succeeding fiscal
19   year.  As used in this paragraph, "surplus" means the
20   excess of revenues and other financing sources over
21   expenditures and other financing uses for the general
22   fund of the state in a fiscal year.
23     Sec. 7.  NEW SECTION.  8.57A  PERSONAL INCOME TAX
24   RATE REDUCTION REPLACEMENT FUND.
25     1.  The personal income tax rate reduction
26   replacement fund is created in the state treasury
27   under the authority of the department of management.
28   The fund shall be separate from the general fund of
29   the state and shall not be considered part of the
30   general fund of the state except in determining the
31   cash position of the state for payment of state
32   obligations.  The moneys in the fund are not subject
33   to the provisions of section 8.33 and shall not be
34   transferred, used, obligated, appropriated, or
35   otherwise encumbered except as provided in this
36   section.  Moneys in the fund may be used for cash flow
37   purposes provided that any moneys so allocated are
38   returned to the fund by the end of each fiscal year.
39   However, the fund shall be considered a special
40   account for the purposes of section 8.53, relating to
41   elimination of any GAAP deficit.  The fund is created
42   upon the effective date of this section, and shall
43   remain in existence until the close of the fiscal year
44   beginning July 1, 1999.
45     2.  The provisions of this subsection apply for the
46   fiscal years beginning July 1 of 1994, 1995, 1996,
47   1997, and 1998.  Notwithstanding the provisions of
48   section 8.57, subsection 3, for each of the designated
49   fiscal years, moneys remaining following the
50   appropriations made pursuant to section 8.57,
Page   4
 1   subsection 1, shall not be appropriated to the Iowa
 2   economic emergency fund but are instead appropriated
 3   to the personal income tax rate reduction replacement
 4   fund.
 5     3.  Effective for the fiscal year beginning July 1,
 6   1995, and the subsequent three fiscal years, on or
 7   before December 31 of each of the fiscal years, the
 8   state revenue estimating conference created in section
 9   8.22A shall certify an estimate of the net change in
10   revenues deposited into the general fund of the state
11   for that fiscal year due to the personal income tax
12   rate reduction implemented pursuant to section 422.5.
13   The director of the department of management shall
14   transfer not more than the certified amount from the
15   personal income tax rate reduction replacement fund to
16   the general fund of the state.  Prior to the transfer,
17   the director shall determine whether the balance of
18   the general fund of the state is sufficient to absorb
19   the revenue change, and if the certified balance is
20   sufficient the director may defer the transfer to a
21   succeeding fiscal year.  Moneys transferred to the
22   general fund of the state pursuant to this section
23   shall be added to the general fund expenditure
24   limitation, to the extent not already included, for
25   the fiscal year in which the transfer takes place and
26   ninety-nine percent of the transferred amount is
27   available for expenditure as directed by the general
28   assembly.
29     4.  Notwithstanding section 12C.7, subsection 2,
30   interest or earnings on moneys deposited in the
31   personal income tax rate reduction replacement fund
32   shall be credited to the rebuild Iowa infrastructure
33   account created in section 8.57.
34     5.  This section is repealed September 1, 2000.
35     Sec. 8.  TRANSFER TO INFRASTRUCTURE ACCOUNT.
36   Moneys in the Iowa economic emergency fund, created in
37   section 8.55, at the conclusion of the fiscal year
38   beginning July 1, 1994, shall be transferred to the
39   rebuild Iowa infrastructure account.
40     Sec. 9.  EFFECTIVE DATES.
41     1.  Sections 1 and 2 of this Act, being deemed of
42   immediate importance, take effect upon enactment and
43   apply retroactively to January 1, 1995, for tax years
44   beginning on or after that date.
45     2.  Sections 3 through 9 of this Act, being deemed
46   of immediate importance, take effect upon enactment.
47	DIVISION II
48	SUBCHAPTER S CORPORATIONS
49     Sec. 10.  Section 422.5, subsection 1, paragraph j,
50   Code 1995, is amended by adding the following new
Page   5
 1   unnumbered paragraph:
 2     NEW UNNUMBERED PARAGRAPH.  The tax imposed upon the
 3   taxable income of a resident shareholder in a
 4   corporation which has in effect for the tax year an
 5   election under subchapter S of the Internal Revenue
 6   Code and carries on business within and without the
 7   state shall be computed by reducing the amount
 8   determined pursuant to paragraphs "a" through "i" by
 9   the amounts of nonrefundable credits under this
10   division and by multiplying this resulting amount by a
11   fraction of which the resident's net income allocated
12   to Iowa, as determined in section 422.8, subsection 2,
13   paragraph "b", is the numerator and the resident's
14   total net income computed under section 422.7 is the
15   denominator.  This paragraph also applies to
16   individuals who are residents of Iowa for less than
17   the entire tax year.
18     Sec. 11.  Section 422.5, subsection 1, paragraph k,
19   unnumbered paragraph 4, Code 1995, is amended to read
20   as follows:
21     In the case of a resident, including a resident
22   estate or trust, the state's apportioned share of the
23   state alternative minimum tax is one hundred percent
24   of the state alternative minimum tax computed in this
25   subsection.  In the case of a resident or part year
26   resident shareholder in a corporation which has in
27   effect for the tax year an election under subchapter S
28   of the Internal Revenue Code and carries on business
29   within and without the state, a nonresident, including
30   a nonresident estate or trust, or an individual,
31   estate, or trust that is domiciled in the state for
32   less than the entire tax year, the state's apportioned
33   share of the state alternative minimum tax is the
34   amount of tax computed under this subsection, reduced
35   by the applicable credits in sections 422.10 through
36   422.12 and this result multiplied by a fraction with a
37   numerator of the sum of state net income allocated to
38   Iowa as determined in section 422.8, subsection 2,
39   paragraph "a" or "b" as applicable, plus tax
40   preference items, adjustments, and losses under
41   subparagraph (1) attributable to Iowa and with a
42   denominator of the sum of total net income computed
43   under section 422.7 plus all tax preference items,
44   adjustments, and losses under subparagraph (1).  In
45   computing this fraction, those items excludable under
46   subparagraph (1) shall not be used in computing the
47   tax preference items.  Married taxpayers electing to
48   file separate returns or separately on a combined
49   return must allocate the minimum tax computed in this
50   subsection in the proportion that each spouse's
Page   6
 1   respective preference items, adjustments, and losses
 2   under subparagraph (1) bear to the combined preference
 3   items, adjustments, and losses under subparagraph (1)
 4   of both spouses.
 5     Sec. 12.  Section 422.7, Code 1995, is amended by
 6   adding the following new subsection:
 7     NEW SUBSECTION.  32.  Resident shareholders of a
 8   corporation which has in effect an election under
 9   subchapter S of the Internal Revenue Code shall add
10   their proportionate share of a deemed distribution of
11   current year income, upon which Iowa income tax has
12   not been paid as determined under rules of the
13   director, to the extent that the salaries, wages, or
14   other compensation for services performed by all
15   shareholders does not equal ten percent of net income
16   of the corporation computed in accordance with section
17   422.35 and considering items of income and expense
18   which pass directly to the shareholders under
19   provisions of the Internal Revenue Code before
20   deduction of shareholders' salaries, wages, or other
21   compensation for services performed.  In addition
22   there shall be added any cash or the value of any
23   property distributions made to the extent they are
24   made from income upon which Iowa income tax has not
25   been paid as determined under rules of the director.
26     Sec. 13.  Section 422.8, subsection 2, Code 1995,
27   is amended to read as follows:
28     2.  a.  Nonresident's net income allocated to Iowa
29   is the net income, or portion thereof, which is
30   derived from a business, trade, profession, or
31   occupation carried on within this state or income from
32   any property, trust, estate, or other source within
33   Iowa.  However, income derived from a business, trade,
34   profession, or occupation carried on within this state
35   and income from any property, trust, estate, or other
36   source within Iowa shall not include distributions
37   from pensions, including defined benefit or defined
38   contribution plans, annuities, individual retirement
39   accounts, and deferred compensation plans or any
40   earnings attributable thereto so long as the
41   distribution is directly related to an individual's
42   documented retirement and received while the
43   individual is a nonresident of this state.  If a
44   business, trade, profession, or occupation is carried
45   on partly within and partly without the state, only
46   the portion of the net income which is fairly and
47   equitably attributable to that part of the business,
48   trade, profession, or occupation carried on within the
49   state is allocated to Iowa for purposes of section
50   422.5, subsection 1, paragraph "j", and section 422.13
Page   7
 1   and income from any property, trust, estate, or other
 2   source partly within and partly without the state is
 3   allocated to Iowa in the same manner, except that
 4   annuities, interest on bank deposits and interest-
 5   bearing obligations, and dividends are allocated to
 6   Iowa only to the extent to which they are derived from
 7   a business, trade, profession, or occupation carried
 8   on within the state.
 9     b.  A resident's income allocable to Iowa is the
10   income determined under section 422.7 reduced by the
11   net income or loss of a corporation which is fairly
12   and equitably attributable without the state under
13   section 422.33, subsections 2 and 3.  For the purposes
14   of this paragraph, "corporation" means a corporation
15   which has in effect for the tax year an election under
16   subchapter S of the Internal Revenue Code and carries
17   on business partly within and partly without the
18   state.  This paragraph also applies to individuals who
19   are residents of Iowa for less than the entire tax
20   year.
21     Sec. 14.  Section 422.8, Code 1995, is amended by
22   adding the following new subsection:
23     NEW SUBSECTION.  6.  If the resident or part year
24   resident is a shareholder of a corporation which has
25   in effect an election under subchapter S of the
26   Internal Revenue Code, subsections 1 and 3 do not
27   apply to any income taxes paid to another state or
28   foreign country on the income from the corporation
29   which has in effect an election under subchapter S of
30   the Internal Revenue Code.
31     Sec. 15.  This division of this Act, being deemed
32   of immediate importance, takes effect upon enactment
33   and applies retroactively to January 1, 1995, for tax
34   years beginning on or after that date.
35	DIVISION III
36	MACHINERY AND EQUIPMENT
37	EXEMPTION AND REPLACEMENT FUNDS
38     Sec. 16.  Section 427B.17, Code 1995, is amended by
39   striking the section and inserting in lieu thereof the
40   following:
41     427B.17  PROPERTY SUBJECT TO SPECIAL VALUATION.
42     1.  Property defined in section 427A.1, subsection
43   1, paragraphs "e" and "j", shall be valued by the
44   local assessor as follows:
45     a.  For the assessment year beginning January 1,
46   1995, at twenty-six percent of the net acquisition
47   cost.
48     b.  For the assessment year beginning January 1,
49   1996, at twenty-two percent of the net acquisition
50   cost.
Page   8
 1     c.  For the assessment year beginning January 1,
 2   1997, at eighteen percent of the net acquisition cost.
 3     d.  For the assessment year beginning January 1,
 4   1998, at fourteen percent of the net acquisition cost.
 5     e.  For the assessment year beginning January 1,
 6   1999, at ten percent of the net acquisition cost.
 7     f.  For the assessment year beginning January 1,
 8   2000, at six percent of the net acquisition cost.
 9     g.  For the assessment year beginning January 1,
10   2001, and all subsequent assessment years, at zero
11   percent of the net acquisition cost.
12     2.  For purposes of this section:
13     a.  Property assessed by the department of revenue
14   and finance pursuant to sections 428.24 to 428.29, or
15   chapters 433, 434, and 436 to 438 shall not receive
16   the benefits of this section.
17     b.  The net acquisition cost of property acquired
18   before January 1, 1995, which was owned or used by a
19   related person shall be the net acquisition cost of
20   the transferor of the property.
21     c.  "Related person" means a person who owns or
22   controls the taxpayer's business and another business
23   entity from which property is acquired or leased or to
24   which property is sold or leased.  Business entities
25   are owned or controlled by the same person if the same
26   person directly or indirectly owns or controls fifty
27   percent or more of the assets or any class of stock or
28   who directly or indirectly has an interest of fifty
29   percent or more in the ownership or profits.
30     d.  "Net acquisition cost" means the acquired cost
31   of the property, including all foundations and
32   installation cost less any excess cost adjustment.
33     3.  Property assessed pursuant to this section
34   shall not be eligible to receive a partial exemption
35   under sections 427B.1 to 427B.6.
36     4.  The taxpayer's valuation of property defined in
37   section 427A.1, subsection 1, paragraphs "e" and "j",
38   and located in an urban renewal area for which an
39   urban renewal plan provides for the division of taxes
40   as provided in section 403.19 to pay the principal and
41   interest on loans, advances, bonds issued under the
42   authority of section 403.9, subsection 1, or
43   indebtedness incurred by a city or county to finance
44   an urban renewal project within the urban renewal
45   area, if such loans, advances, or bonds were issued or
46   indebtedness incurred, on or after January 1, 1982,
47   and on or before June 30, 1995, shall be limited to
48   thirty percent of the net acquisition cost of the
49   property.  Such property located in an urban renewal
50   area shall not be valued pursuant to subsection 1
Page   9
 1   until the assessment year following the calendar year
 2   in which the obligations created by any loans,
 3   advances, bonds, or indebtedness payable from the
 4   division of taxes as provided in section 403.19 have
 5   been retired.  The taxpayer's valuation for such
 6   property shall then be the valuation specified in
 7   subsection 1 for the applicable assessment year.  If
 8   the loans, advances, or bonds issued, or indebtedness
 9   incurred between January 1, 1982, and June 30, 1995,
10   are refinanced or refunded after June 30, 1995, the
11   valuation of such property shall then be the valuation
12   specified in subsection 1 for the applicable
13   assessment year beginning with the assessment year
14   after the calendar year in which any of those loans,
15   advances, bonds, or other indebtedness are refinanced
16   or refunded after June 30, 1995.
17     5.  For the purpose of dividing taxes under section
18   260E.4 or 260F.4, the employer's or business's
19   valuation of property defined in section 427A.1,
20   subsection 1, paragraphs "e" and "j", and used to fund
21   a new jobs training project which project's first
22   written agreement providing for a division of taxes as
23   provided in section 403.19, is approved on or before
24   June 30, 1995, shall be limited to thirty percent of
25   the net acquisition cost of the property.  An
26   employer's or business's taxable property used to fund
27   a new jobs training project shall not be valued
28   pursuant to subsection 1 until the assessment year
29   following the calendar year in which the certificates
30   or other funding obligations have been retired or
31   escrowed.  The taxpayer's valuation for such property
32   shall then be the valuation specified in subsection 1
33   for the applicable assessment year.  This subsection
34   shall not apply to the refunding of certificates or
35   refinancing of other obligations issued between
36   January 1, 1982, and June 30, 1995.
37     Sec. 17.  NEW SECTION.  427B.18  ASSESSOR AND
38   COUNTY AUDITOR DUTIES.
39     1.  On or before July 1 of each year, the assessor
40   shall determine the taxpayer's valuation of the
41   property specified in section 427B.17 for that year
42   and the valuation of the property if the property were
43   valued, for assessment purposes, at thirty percent of
44   net acquisition cost and shall report the valuations
45   to the county auditor.
46     2.  On or before July 1, 1996, and on or before
47   July 1 of each subsequent year, the county auditor
48   shall prepare a statement listing for each taxing
49   district in the county:
50     a.  Beginning with the assessment year beginning
Page  10
 1   January 1, 1995, the difference between the assessed
 2   valuation of property defined in section 427A.1,
 3   subsection 1, paragraphs "e" and "j", and assessed
 4   pursuant to section 427B.17 and the valuation of the
 5   property if the property were valued, for assessment
 6   purposes, at thirty percent of net acquisition cost.
 7     b.  The tax levy rate for each taxing district
 8   levied against assessments made as of January 1 of the
 9   previous year.
10     c.  The industrial machinery, equipment and
11   computers tax replacement claim for each taxing
12   district, which is equal to the amount determined
13   pursuant to paragraph "a", multiplied by the tax rate
14   specified in paragraph "b".
15     3.  The county auditor shall certify and forward
16   one copy of the statement to the department of revenue
17   and finance not later than July 1 of each year.
18     Sec. 18.  NEW SECTION.  427B.19  REPLACEMENT.
19     Each county treasurer shall be paid an amount equal
20   to the following percentages of the industrial
21   machinery, equipment and computers tax replacement
22   claim for that county determined pursuant to section
23   427B.18, subsection 2:
24     1.  For the fiscal year beginning July 1, 1996,
25   ninety percent.
26     2.  For the fiscal year beginning July 1, 1997,
27   seventy-five percent.
28     3.  For the fiscal year beginning July 1, 1998,
29   sixty percent.
30     4.  For the fiscal year beginning July 1, 1999,
31   forty-five percent.
32     5.  For the fiscal year beginning July 1, 2000,
33   thirty percent.
34     6.  For the fiscal year beginning July 1, 2001,
35   twenty percent.
36     7.  For the fiscal year beginning July 1, 2002,
37   twenty percent.
38     8.  For the fiscal year beginning July 1, 2003,
39   twenty percent.
40     9.  For the fiscal year beginning July 1, 2004,
41   fifteen percent.
42     10.  For the fiscal year beginning July 1, 2005,
43   ten percent.
44     Sec. 19.  NEW SECTION.  427B.19A  FUND CREATED.
45     1.  The industrial machinery, equipment and
46   computers property tax replacement fund is created.
47   There is appropriated annually from the general fund
48   of the state to the department of revenue and finance
49   to be credited to the industrial machinery, equipment
50   and computers property tax replacement fund, the
Page  11
 1   amounts specified in section 427B.19B.
 2     2.  Each county treasurer shall be paid from the
 3   fund created in this section the amount calculated
 4   pursuant to section 427B.19.  The payment shall be
 5   made in two equal installments on or before September
 6   30 and March 30 of each year.  The county treasurer
 7   shall apportion the payment in the manner provided in
 8   section 445.57.
 9     3.  If an amount appropriated in section 427B.19B
10   for a fiscal year is insufficient to pay all claims
11   according to the replacement schedule in section
12   427B.19, the director shall prorate the disbursements
13   from the fund to the county treasurers and shall
14   notify the county auditors of the pro rata percentage
15   on or before August 1.  If an amount appropriated in
16   section 427B.19B for a fiscal year is in excess of the
17   amount necessary to pay all claims according to the
18   replacement schedule in section 427B.19, the director
19   shall prorate the disbursements from the fund to the
20   county treasurers, notwithstanding the amount
21   calculated pursuant to section 427B.19, and shall
22   notify the county auditors of the pro rata percentage
23   on or before August 1.
24     4.  The replacement amount paid to each school
25   district shall be regarded as property tax for the
26   purposes of the school foundation property tax levy in
27   section 257.3 and the additional property tax levy in
28   section 257.4.  The department of management shall
29   annually make the adjustments necessary to implement
30   this subsection.
31     Sec. 20.  NEW SECTION.  427B.19B  APPROPRIATION.
32     There is appropriated in each of the following
33   fiscal years from the general fund of the state to the
34   industrial machinery, equipment and computers property
35   tax replacement fund the following amounts:
36     1.  For the fiscal year beginning July 1, 1996, ten
37   million dollars.
38     2.  For the fiscal year beginning July 1, 1997,
39   seventeen million dollars.
40     3.  For the fiscal year beginning July 1, 1998,
41   twenty-three million dollars.
42     4.  For the fiscal year beginning July 1, 1999,
43   twenty-three million, four hundred thousand dollars.
44     5.  For the fiscal year beginning July 1, 2000,
45   twenty-one million, one hundred thousand dollars.
46     6.  For the fiscal year beginning July 1, 2001,
47   eighteen million, one hundred thousand dollars.
48     7.  For the fiscal year beginning July 1, 2002,
49   twenty-four million dollars.
50     8.  For the fiscal year beginning July 1, 2003,
Page  12
 1   twenty-five million, six hundred thousand dollars.
 2     9.  For the fiscal year beginning July 1, 2004,
 3   twenty million, four hundred thousand dollars.
 4     10.  For the fiscal year beginning July 1, 2005,
 5   fourteen million, five hundred thousand dollars.
 6     Sec. 21.  NEW SECTION.  427B.19C  PHASEOUT OF TAX.
 7     Effective on July 1, 2002, all property taxes on
 8   property defined in section 427A.1, subsection 1,
 9   paragraphs "e" and "j", are repealed.  For assessment
10   years beginning on or after January 1, 2005, such
11   property shall not be listed or assessed.  This
12   section shall prevail over all inconsistent statutes.
13     Sec. 22.  NEW SECTION.  427B.19D  GUARANTEE OF
14   STATE REPLACEMENT FUNDS.
15     If for any reason an appropriation specified in
16   section 427B.19 is not made or the appropriation made
17   is less than that specified in section 427B.19 for the
18   applicable fiscal year, the director of the department
19   of management shall compute the difference between the
20   amount specified in section 427B.19B and the amount
21   actually appropriated or zero if no appropriation is
22   made.  The department shall divide that difference by
23   the consolidated tax levy rate to determine the amount
24   of taxable value necessary to raise the difference at
25   that tax rate.  The department shall compute an
26   adjustment factor as a percentage of net acquisition
27   cost which will yield such taxable value.  The
28   director of revenue and finance shall review and
29   certify such adjustment factor to the county auditor.
30   The auditor shall apply such adjustment factor to all
31   taxable property described in section 427B.17 for the
32   assessment year beginning January 1 preceding the
33   fiscal year for which the specified appropriation was
34   not made.  Property taxes generated by the adjustment
35   factor in this section shall not be considered
36   property tax dollars certified for purposes of the
37   property tax limitation in chapter 444.
38	DIVISION IV
39	PROPERTY TAX CREDITS
40     Sec. 23.  Section 8.59, Code 1995, is amended to
41   read as follows:
42     8.59  APPROPRIATIONS FREEZE.
43     Notwithstanding contrary provisions of the Code,
44   the amounts appropriated under the applicable sections
45   of the Code for fiscal years commencing on or after
46   July 1, 1993, are limited to those amounts expended
47   under those sections for the fiscal year commencing
48   July 1, 1992.  If an applicable section appropriates
49   moneys to be distributed to different recipients and
50   the operation of this section reduces the total amount
Page  13
 1   to be distributed under the applicable section, the
 2   moneys shall be prorated among the recipients.  As
 3   used in this section, "applicable sections" means the
 4   following sections:  53.50, 229.35, 230.8, 230.11,
 5   405A.8, 411.20, 425.1, 425.39, 426A.1, 663.44, and
 6   822.5.
 7     Sec. 24.  Section 405A.8, subsection 1, Code 1995,
 8   is amended to read as follows:
 9     1.  There are appropriated from the general fund of
10   the state to the department of revenue and finance the
11   following sums to carry out the provisions of this
12   chapter:  For the fiscal year beginning July 1, 1988,
13   and each subsequent fiscal year ending before July 1,
14   1995, sixty-seven million seven hundred thirty-seven
15   thousand dollars.  For the fiscal year beginning July
16   1, 1995, and each subsequent fiscal year, sixty-five
17   million one hundred thousand dollars.
18     Sec. 25.  Section 422.65, Code 1995, is amended by
19   striking the section and inserting in lieu thereof the
20   following:
21     422.65  DEPOSIT OF REVENUE.
22     All moneys received from the franchise tax on or
23   after July 1, 1995, shall be deposited into the
24   general fund of the state.
25     Sec. 26.  Section 425.1, subsection 1, Code 1995,
26   is amended to read as follows:
27     1.  A homestead credit fund is created.  There is
28   appropriated annually from the general fund of the
29   state to the department of revenue and finance to be
30   credited to the homestead credit fund, an amount
31   sufficient to implement this chapter the sum of
32   ninety-three million eight hundred thousand dollars.
33     The director of revenue and finance shall issue
34   warrants on the homestead credit fund payable to the
35   county treasurers of the several counties of the state
36   under this chapter.
37     If the amount in the fund is insufficient to pay
38   all claims in full, the director shall prorate the
39   amounts paid to the county treasurers based upon the
40   amount of certified claims submitted by each.
41     Sec. 27.  Section 425.17, subsections 2 and 8, Code
42   1995, are amended to read as follows:
43     2.  "Claimant" means either of the following:
44     a.  A a person filing a claim for credit or
45   reimbursement under this division who has attained the
46   age of sixty-five years on or before December 31 of
47   the base year, who is a surviving spouse having
48   attained the age of fifty-five years on or before
49   December 31, 1988, or who is totally disabled and was
50   totally disabled on or before December 31 of the base
Page  14
 1   year, and was domiciled in this state during the
 2   entire base year, and is domiciled in this state at
 3   the time the claim is filed or at the time of the
 4   person's death in the case of a claim filed by the
 5   executor or administrator of the claimant's estate.
 6     b.  A person filing a claim for credit or
 7   reimbursement under this division who has attained the
 8   age of twenty-three years on or before December 31 of
 9   the base year or was a head of household on December
10   31 of the base year, as defined in the Internal
11   Revenue Code, but has not attained the age or
12   disability status described in paragraph "a", and was
13   domiciled in this state during the entire base year,
14   and is domiciled in this state at the time the claim
15   is filed or at the time of the person's death in the
16   case of a claim filed by the executor or administrator
17   of the claimant's estate, and was not claimed as a
18   dependent on any other person's tax return for the
19   base year.
20     "Claimant" under paragraph "a" or "b" includes a
21   vendee in possession under a contract for deed and may
22   include one or more joint tenants or tenants in
23   common.  In the case of a claim for rent constituting
24   property taxes paid, the claimant shall have rented
25   the property during any part of the base year.  If a
26   homestead is occupied by two or more persons, and more
27   than one person is able to qualify as a claimant, the
28   persons may determine among them who will be the
29   claimant.  If they are unable to agree, the matter
30   shall be referred to the director of revenue and
31   finance not later than June 1 of each year and the
32   director's decision is final.
33     8.  "Property taxes due" means property taxes
34   including any special assessments, but exclusive of
35   delinquent interest and charges for services, due on a
36   claimant's homestead in this state, but includes only
37   property taxes for which the claimant is liable and
38   which will actually be paid by the claimant.  However,
39   if the claimant is a person whose property taxes have
40   been suspended under sections 427.8 and 427.9,
41   "property taxes due" means property taxes including
42   any special assessments, but exclusive of delinquent
43   interest and charges for services, due on a claimant's
44   homestead in this state, but includes only property
45   taxes for which the claimant is liable and which would
46   have to be paid by the claimant if the payment of the
47   taxes has not been suspended pursuant to sections
48   427.8 and 427.9.  "Property taxes due" shall be
49   computed with no deduction for any credit under this
50   division or for any homestead credit allowed under
Page  15
 1   section 425.1.  Each claim shall be based upon the
 2   taxes due during the fiscal year next following the
 3   base year.  If a homestead is owned by two or more
 4   persons as joint tenants or tenants in common, and one
 5   or more persons are not members of claimant's
 6   household, "property taxes due" is that part of
 7   property taxes due on the homestead which equals the
 8   ownership percentage of the claimant and the
 9   claimant's household.  The county treasurer shall
10   include with the tax receipt a statement that if the
11   owner of the property is eighteen years of age or
12   over, the person may be eligible for the credit
13   allowed under this division.  If a homestead is an
14   integral part of a farm, the claimant may use the
15   total property taxes due for the larger unit.  If a
16   homestead is an integral part of a multidwelling or
17   multipurpose building the property taxes due for the
18   purpose of this subsection shall be prorated to
19   reflect the portion which the value of the property
20   that the household occupies as its homestead is to the
21   value of the entire structure.  For purposes of this
22   subsection, "unit" refers to that parcel of property
23   covered by a single tax statement of which the
24   homestead is a part.
25     Sec. 28.  Section 425.23, subsection 1, paragraph
26   a, Code 1995, is amended to read as follows:
27     a.  The tentative credit or reimbursement for a
28   claimant described in section 425.17, subsection 2,
29   paragraph "a" and paragraph "b" if no appropriation is
30   made to the fund created in section 425.40 shall be
31   determined in accordance with the following schedule:
32                                  Percent of property taxes
33                                  due or rent constituting
34                                  property taxes paid
35   If the household               allowed as a credit or
36   income is:                     reimbursement:
37   $     0 --  5,999.99....................100%
38     6,000 --  6,999.99.................... 85
39     7,000 --  7,999.99.................... 70
40     8,000 --  9,999.99.................... 50
41    10,000 -- 11,999.99.................... 35
42    12,000 -- 13,999.99.................... 25
43     Sec. 29.  Section 425.23, subsection 1, paragraph
44   b, Code 1995, is amended by striking the paragraph.
45     Sec. 30.  Section 425.23, subsection 3, paragraph
46   a, Code 1995, is amended to read as follows:
47     a.  A person who is eligible to file a claim for
48   credit for property taxes due and who has a household
49   income of six thousand dollars or less and who has an
50   unpaid special assessment levied against the homestead
Page  16
 1   may file a claim with the county treasurer that the
 2   claimant had a household income of six thousand
 3   dollars or less and that an unpaid special assessment
 4   is presently levied against the homestead.  The
 5   department shall provide to the respective treasurers
 6   the forms necessary for the administration of this
 7   subsection.  The claim shall be filed not later than
 8   September 30 of each year.  Upon the filing of the
 9   claim, interest for late payment shall not accrue
10   against the amount of the unpaid special assessment
11   due and payable.  The claim filed by the claimant
12   constitutes a claim for credit of an amount equal to
13   the actual amount due upon the unpaid special
14   assessment, plus interest, payable during the fiscal
15   year for which the claim is filed against the
16   homestead of the claimant.  However, where the
17   claimant is an individual described in section 425.17,
18   subsection 2, paragraph "b", and the tentative credit
19   is determined according to the schedule in section
20   425.23, subsection 1, paragraph "b", subparagraph (2),
21   the claim filed constitutes a claim for credit of an
22   amount equal to one-half of the actual amount due and
23   payable during the fiscal year.  The department of
24   revenue and finance shall, upon the filing of the
25   claim with the department by the treasurer, pay that
26   amount of the unpaid special assessment during the
27   current fiscal year to the treasurer.  The treasurer
28   shall submit the claims to the director of revenue and
29   finance not later than October 15 of each year.  The
30   director of revenue and finance shall certify the
31   amount of reimbursement due each county for unpaid
32   special assessment credits allowed under this
33   subsection.  The amount of reimbursement due each
34   county shall be paid by the director of revenue and
35   finance on October 20 of each year, drawn upon
36   warrants payable to the respective treasurer.  There
37   is appropriated annually from the general fund of the
38   state to the department of revenue and finance an
39   amount sufficient to carry out the provisions of this
40   subsection.  The treasurer shall credit any moneys
41   received from the department against the amount of the
42   unpaid special assessment due and payable on the
43   homestead of the claimant.
44     Sec. 31.  Section 425.39, subsection 2, Code 1995,
45   is amended by striking the subsection.
46     Sec. 32.  Section 426.1, Code 1995, is amended to
47   read as follows:
48     426.1  AGRICULTURAL LAND FARM TAX CREDIT FUND.
49     There is created as a permanent fund in the office
50   of the treasurer of state a fund to be known as the
Page  17
 1   agricultural land farm tax credit fund, and for the
 2   purpose of establishing and maintaining this fund for
 3   each fiscal year there is appropriated thereto from
 4   funds in the general fund of the state not otherwise
 5   appropriated the sum of thirty-nine forty-nine
million
 6   one three hundred thousand dollars of which the
first
 7   ten million dollars shall be transferred to and
 8   deposited into the family farm tax credit fund created
 9   in section 425A.1.  Any balance in said the
fund on
10   June 30 shall revert to the general fund of the state.
11     Sec. 33.  Section 426.3, Code 1995, is amended to
12   read as follows:
13     426.3  WHERE AMOUNT OF CREDIT GIVEN.
14     The agricultural land farm tax credit fund shall
be
15   apportioned each year in the manner hereinafter
16   provided so as to give a credit against the tax on
17   each tract of agricultural lands within the several
18   school districts of the state in which the levy for
19   the general school fund exceeds five dollars and forty
20   cents per thousand dollars of assessed value; the
21   amount of such credit on each tract of such lands
22   shall be the amount the tax levied for the general
23   school fund exceeds the amount of tax which would be
24   levied on said tract of such lands were the levy for
25   the general school fund five dollars and forty cents
26   per thousand dollars of assessed value for the
27   previous year, each county equal to one dollar and
28   fifty cents per acre of agricultural land, except in
29   the case of a deficiency in the agricultural land
30   credits farm tax credit fund to pay said
the credits
31   in full, in which case the credit on each eligible
32   tract of such lands in the state shall be
33   proportionate and shall be applied as hereinafter
34   provided.
35     Sec. 34.  Section 426.6, Code 1995, is amended to
36   read as follows:
37     426.6  COMPUTATION BY AUDITOR -- APPEAL.
38     The agricultural land farm tax credit allowed each
39   year shall be computed as follows:  On or before the
40   first of June March 15 the county auditor shall list
41   by school districts all tracts of agricultural lands
42   which they are entitled to credit, together with the
43   taxable value for the previous year, together with the
44   budget from each school district for the previous
45   year, and the tax rate determined for the general fund
46   of the district in the manner prescribed in section
47   444.3 for the previous year, and if such tax rate is
48   in excess of five dollars and forty cents per thousand
49   dollars of assessed value, the auditor shall multiply
50   the tax levy which is in excess of five dollars and
Page  18
 1   forty cents per thousand dollars of assessed value by
 2   the total taxable value of the agricultural lands
 3   entitled to credit in the district, and on or before
 4   the first of June and shall certify the amount
of
 5   credit to the department of revenue and finance.
 6     In the event the county auditor denies a credit
 7   upon any such lands, the auditor shall immediately
 8   mail to the owner at the owner's last known address
 9   notice of the decision thereon.  The owner may, within
10   thirty days thereafter, appeal to the board of
11   supervisors of the county wherein the land involved is
12   situated by serving notice of said appeal upon the
13   chairperson of said the board.  The board shall hear
14   such the appeal promptly and shall determine anew
all
15   questions involved in said the appeal and shall
within
16   ten days after such the hearing, mail to the owner
at
17   the owner's last known address, notice of its
18   decision.  In the event of disallowance the owner may,
19   within ten days from the date such the notice is
20   mailed, appeal such the disallowance by the board of
21   supervisors to the district court of that county by
22   serving written notice of appeal on the county
23   auditor.  The appeal shall be tried de novo and may be
24   heard in term time or vacation.  The decision of the
25   district court thereon shall be final.
26     Sec. 35.  Section 426.7, Code 1995, is amended to
27   read as follows:
28     426.7  WARRANTS DRAWN BY DIRECTOR.
29     After receiving from the county auditors the
30   certifications provided for in section 426.6, and
31   during the following fiscal year, the director of
32   revenue and finance shall draw warrants on the
33   agricultural land credits credit fund created in
34   section 426.1, payable to the county treasurers in the
35   amount certified by the county auditors of the
36   respective counties and mail the warrants to the
37   county auditors on August 15 of each year taking into
38   consideration the relative budget and cash position of
39   the state resources.  However, if the agricultural
40   land credits credit fund is insufficient to pay in
41   full the total of the amounts certified to the
42   director of revenue and finance, the director shall
43   prorate the fund to the county treasurers and notify
44   the county auditors of the pro rata percentage on or
45   before August June 1.
46     Sec. 36.  Section 441.21, subsection 1, Code 1995,
47   is amended by adding the following new paragraph:
48     NEW PARAGRAPH.  h.  Notwithstanding any other
49   provision of this section, beginning with valuations
50   established as of January 1, 1996, in computing actual
Page  19
 1   value of agricultural structures, other than
 2   agricultural dwellings, the assessor shall exclude the
 3   first two hundred thousand dollars in total actual
 4   value of all such structures on each parcel of land.
 5   The excluded valuation of such structures shall not be
 6   removed from the productivity formula in establishing
 7   agricultural values.
 8     Sec. 37.  Section 425.40, Code 1995, is repealed.
 9     Sec. 38.  Chapter 425A, Code 1995, is repealed.
10     Sec. 39.  EFFECTIVE DATES.
11     1.  Sections 23, 24, 25, 26, 27, 28, 29, 30, 31,
12   and 37 of this Act, being deemed of immediate
13   importance, take effect upon enactment for purposes of
14   property tax credits payable on or after July 1, 1995.
15     2.  Sections 32, 33, 34, 35, and 38 of this Act
16   take effect January 1, 1996, for property taxes
17   payable on or after July 1, 1996.
18     3.  Section 36 of this Act takes effect January 1,
19   1996, for computing valuations for taxes payable on or
20   after July 1, 1997.
21	DIVISION V
22	  MENTAL HEALTH PROPERTY TAX RELIEF -- LIMITATION
23     Sec. 40.  Section 123.38, unnumbered paragraph 2,
24   Code 1995, is amended to read as follows:
25     Any licensee or permittee, or the licensee's or
26   permittee's executor or administrator, or any person
27   duly appointed by the court to take charge of and
28   administer the property or assets of the licensee or
29   permittee for the benefit of the licensee's or
30   permittee's creditors, may voluntarily surrender a
31   license or permit to the division.  When a license or
32   permit is surrendered the division shall notify the
33   local authority, and the division or the local
34   authority shall refund to the person surrendering the
35   license or permit, a proportionate amount of the fee
36   received by the division or the local authority for
37   the license or permit as follows:  If a license or
38   permit is surrendered during the first three months of
39   the period for which it was issued, the refund shall
40   be three-fourths of the amount of the fee; if
41   surrendered more than three months but not more than
42   six months after issuance, the refund shall be one-
43   half of the amount of the fee; if surrendered more
44   than six months but not more than nine months after
45   issuance, the refund shall be one-fourth of the amount
46   of the fee.  No refund shall be made, however, for any
47   special liquor permit, nor for a liquor control
48   license, wine permit, or beer permit surrendered more
49   than nine months after issuance.  For purposes of this
50   paragraph, any portion of license or permit fees used
Page  20
 1   for the purposes authorized in section 331.424,
 2   subsection 1, paragraphs "a", and "b", "c", "d",
"e",
 3   "f", "g", and "h", and in section 331.438A, shall
not
 4   be deemed received either by the division or by a
 5   local authority.  No refund shall be made to any
 6   licensee or permittee, upon the surrender of the
 7   license or permit, if there is at the time of
 8   surrender, a complaint filed with the division or
 9   local authority, charging the licensee or permittee
10   with a violation of this chapter.  If upon a hearing
11   on a complaint the license or permit is not revoked or
12   suspended, then the licensee or permittee is eligible,
13   upon surrender of the license or permit, to receive a
14   refund as provided in this section; but if the license
15   or permit is revoked or suspended upon hearing the
16   licensee or permittee is not eligible for the refund
17   of any portion of the license or permit fee.
18     Sec. 41.  Section 218.99, Code 1995, is amended to
19   read as follows:
20     218.99  COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS'
21   PERSONAL ACCOUNTS.
22     The administrator of a division of the department
23   of human services in control of a state institution
24   shall direct the business manager of each institution
25   under the administrator's jurisdiction which is
26   mentioned in section 331.424, subsection 1, paragraphs
27   "a" through "g" and "b" and for which services are
28   paid under section 331.438A to quarterly inform the
29   auditor of the county of legal settlement of any
30   patient or resident who has an amount in excess of two
31   hundred dollars on account in the patients' personal
32   deposit fund and the amount on deposit.  The
33   administrators shall direct the business manager to
34   further notify the auditor of the county at least
35   fifteen days before the release of funds in excess of
36   two hundred dollars or upon the death of the patient
37   or resident.  If the patient or resident has no county
38   of legal settlement, notice shall be made to the
39   director of the department of human services and the
40   administrator of the division of the department in
41   control of the institution involved.
42     Sec. 42.  Section 225C.4, subsection 2, paragraph
43   b, Code 1995, is amended to read as follows:
44     b.  Establish mental health and mental retardation
45   services for all institutions under the control of the
46   director of human services and establish an autism
47   unit, following mutual planning with and consultation
48   from the medical director of the state psychiatric
49   hospital, at an institution or a facility administered
50   by the administrator to provide psychiatric and
Page  21
 1   related services and other specific programs to meet
 2   the needs of autistic persons as defined in section
 3   331.424, subsection 1, and to furnish appropriate
 4   diagnostic evaluation services.
 5     Sec. 43.  Section 331.301, subsection 12, Code
 6   1995, is amended to read as follows:
 7     12.  The board of supervisors may credit funds to a
 8   reserve for the purposes authorized by subsection 11
 9   of this section; section 331.424, subsection 1,
10   paragraph "l" "f"; and section 331.441, subsection
2,
11   paragraph "b".  Moneys credited to the reserve, and
12   interest earned on such moneys, shall remain in the
13   reserve until expended for purposes authorized by
14   subsection 11 of this section; section 331.424,
15   subsection 1, paragraph "l" "f"; or section 331.441,
16   subsection 2, paragraph "b".
17     Sec. 44.  Section 331.424, subsection 1, Code 1995,
18   is amended to read as follows:
19     1.  For general county services, an amount
20   sufficient to pay the charges for the following:
21     a.  To the extent that the county is obligated by
22   statute to pay the charges for:
23     (1)  Care and treatment of patients by a state
24   mental health institute.
25     (2)  Care and treatment of patients by either of
26   the state hospital-schools or by any other facility
27   established under chapter 222 and diagnostic
28   evaluation under section 222.31.
29     (3)  Care and treatment of patients under chapter
30   225.
31     (4) (1)  Care and treatment of persons at the
32   alcoholic treatment center at Oakdale.  However, the
33   county may require that an admission to the center
34   shall be reported to the board by the center within
35   five days as a condition of the payment of county
36   funds for that admission.
37     (5) (2)  Care of children admitted or committed to
38   the Iowa juvenile home at Toledo.
39     (6) (3)  Clothing, transportation, medical, or
40   other services provided persons attending the Iowa
41   braille and sight saving school, the Iowa school for
42   the deaf, or the state hospital-school for severely
43   handicapped children at Iowa City, for which the
44   county becomes obligated to pay pursuant to sections
45   263.12, 269.2, and 270.4 through 270.7.
46     b.  To the extent that the board deems it advisable
47   to pay, the charges for professional evaluation,
48   treatment, training, habilitation, and care of persons
49   who are mentally retarded, autistic persons, or
50   persons who are afflicted by any other developmental
Page  22
 1   disability, at a suitable public or private facility
 2   providing inpatient or outpatient care in the county.
 3   As used in this paragraph:
 4     (1)  "Developmental disability" has the meaning
 5   assigned that term by 42 U.S.C. sec. 6001(7) (1976),
 6   Supp. II, 1978, and Supp. III, 1979.
 7     (2)  "Autistic persons" means persons, regardless
 8   of age, with severe communication and behavior
 9   disorders that became manifest during the early stages
10   of childhood development and that are characterized by
11   a severely disabling inability to understand,
12   communicate, learn, and participate in social
13   relationships.  "Autistic persons" includes but is not
14   limited to those persons afflicted by infantile
15   autism, profound aphasia, and childhood psychosis.
16     c.  Care and treatment of persons placed in the
17   county hospital, county care facility, a health care
18   facility as defined in section 135C.1, subsection 6,
19   or any other public or private facility, which
20   placement is in lieu of admission or commitment to or
21   is upon discharge, removal, or transfer from a state
22   mental health institute, hospital-school, or other
23   facility established pursuant to chapter 222.
24     d.  Amounts budgeted by the board for the cost of
25   establishment and initial operation of a community
26   mental health center in the manner and subject to the
27   limitations provided by state law.
28     e. b.  Foster care and related services provided
29   under court order to a child who is under the
30   jurisdiction of the juvenile court, including court-
31   ordered costs for a guardian ad litem under section
32   232.71.
33     f.  The care, admission, commitment, and
34   transportation of mentally ill patients in state
35   hospitals, to the extent that expenses for these
36   services are required to be paid by the county,
37   including compensation for the advocate appointed
38   under section 229.19.
39     g.  Amounts budgeted by the board for mental health
40   services or mental retardation services furnished to
41   persons on either an outpatient or inpatient basis, to
42   a school or other public agency, or to the community
43   at large, by a community mental health center or other
44   suitable facility located in or reasonably near the
45   county, provided that services meet the standards of
46   the mental health and developmental disabilities
47   commission created in section 225C.5 and are
48   consistent with the annual plan for services approved
49   by the board.
50     h.  Reimbursement on behalf of mentally retarded
Page  23
 1   persons under section 249A.12.
 2     i. c.  Elections, and voter registration pursuant
 3   to chapter 48A.
 4     j. d.  Employee benefits under chapters 96, 97B,
 5   and 97C, which are associated with salaries for
 6   general county services.
 7     k. e.  Joint county and city building authorities
 8   established under section 346.27, as provided in
 9   subsection 22 of that section.
10     l. f.  Tort liability insurance, property
11   insurance, and any other insurance that may be
12   necessary in the operation of the county, costs of a
13   self-insurance program, costs of a local government
14   risk pool, and amounts payable under any insurance
15   agreements to provide or procure such insurance, self-
16   insurance program, or local government risk pool.
17     m. g.  The maintenance and operation of the
courts,
18   including but not limited to the salary and expenses
19   of the clerk of the district court and other employees
20   of the clerk's office, and bailiffs, court costs if
21   the prosecution fails or if the costs cannot be
22   collected from the person liable, costs and expenses
23   of prosecution under section 189A.17, salaries and
24   expenses of juvenile court officers under chapter 602,
25   court-ordered costs in domestic abuse cases under
26   section 236.5, the county's expense for confinement of
27   prisoners under chapter 356A, temporary assistance to
28   the county attorney, county contributions to a
29   retirement system for bailiffs, reimbursement for
30   judicial magistrates under section 602.6501, claims
31   filed under section 622.93, interpreters' fees under
32   section 622B.7, uniform citation and complaint
33   supplies under section 805.6, and costs of prosecution
34   under section 815.13.
35     n. h.  Court-ordered costs of conciliation
36   procedures under section 598.16.
37     o. i.  Establishment and maintenance of a joint
38   county indigent defense fund pursuant to an agreement
39   under section 28E.19.
40     p. j.  The maintenance and operation of a local
41   emergency management agency established pursuant to
42   chapter 29C.
43     The board may require a public or private facility,
44   as a condition of receiving payment from county funds
45   for services it has provided, to furnish the board
46   with a statement of the income, assets, and legal
47   residence including township and county of each person
48   who has received services from that facility for which
49   payment has been made from county funds under
50   paragraphs "a" through "h" and "b".  However, the
Page  24
 1   facility shall not disclose to anyone the name or
 2   street or route address of a person receiving services
 3   for which commitment is not required, without first
 4   obtaining that person's written permission.
 5     Parents or other persons may voluntarily reimburse
 6   the county or state for the reasonable cost of caring
 7   for a patient or an inmate in a county or state
 8   facility.
 9     Sec. 45.  Section 331.424, Code 1995, is amended by
10   adding the following new subsection:
11     NEW SUBSECTION.  1A.  The maximum amount of
12   property tax dollars which may be certified by a
13   county for taxes levied under subsection 1 and payable
14   in the fiscal year beginning July 1, 1995, and
15   succeeding fiscal years shall not exceed the amount of
16   property tax dollars certified by the county for taxes
17   payable in the fiscal year beginning July 1, 1994,
18   minus an adjustment for the amounts levied by the
19   county under subsection 1 for mental health, mental
20   retardation, and developmental disabilities in the
21   fiscal year beginning July 1, 1995.  The adjustment
22   and maximum amount which may be levied by the county
23   shall be determined for the county by the department
24   of management.
25     Sec. 46.  Section 331.426, subsection 1, Code 1995,
26   is amended by adding the following new paragraph:
27     NEW PARAGRAPH.  h.  An unusual need for a service
28   or cost paid from levies under section 331.424,
29   subsection 1, which would cause the total expenditures
30   of services and costs paid from those levies to exceed
31   the maximum levies authorized under section 331.424,
32   subsection 1A.
33     Sec. 47.  Section 331.438, subsection 1, paragraph
34   b, Code 1995, is amended to read as follows:
35     b.  "State payment" means the payment made by the
36   state under section 331.438A to a county determined to
37   be eligible for the payment in accordance with section
38   331.439.  Except as modified based upon the actual
39   amount of the appropriation for purposes of state
40   payment under section 331.439, the amount of the state
41   payment for a fiscal year shall be calculated as fifty
42   percent of the amount by which the county's qualified
43   expenditures during the immediately preceding fiscal
44   year were in excess of the amount of the county's base
45   year expenditures.
46     Sec. 48.  Section 331.438, Code 1995, is amended by
47   adding the following new subsection:
48     NEW SUBSECTION.  1A.  The state of Iowa shall
49   provide funding for the county expenditures for mental
50   health and mental retardation assistance so that over
Page  25
 1   the five-year period beginning July 1, 1995, and
 2   ending June 30, 2000, the relative shares of the state
 3   and counties for these expenditures shall become
 4   either equal or greater for the state.
 5     Sec. 49.  NEW SECTION.  331.438A  STATE AND COUNTY
 6   EXPENDITURES FOR MENTAL HEALTH, MENTAL RETARDATION,
 7   AND DEVELOPMENTAL DISABILITIES ASSISTANCE -- FUND
 8   CREATED.
 9     1.  The mental health, mental retardation, and
10   developmental disabilities property tax relief fund is
11   created in the office of the treasurer of state under
12   the authority of the department of revenue and
13   finance.  The relief fund shall consist of moneys
14   appropriated to the fund.
15     2.  The department of management shall determine
16   each county's proportion of all counties' base year
17   expenditures, as defined in section 331.438.  In each
18   fiscal year, a county shall receive for property tax
19   relief the proportion of the moneys appropriated to
20   the relief fund for that fiscal year equivalent to the
21   county's proportion of all counties' base year
22   expenditures.  However, moneys provided to a county
23   for property tax relief in a fiscal year in accordance
24   with this section shall not be less than the amount
25   provided to the county for property tax relief in the
26   previous fiscal year.
27     3.  The department of management shall notify the
28   department of revenue and finance of the amount due
29   each county and the director of revenue and finance
30   shall draw warrants on the relief fund, payable to the
31   county treasurer in the amount due a county in
32   accordance with subsection 2, and mail the warrants to
33   county auditors by September 1 and March 1.
34     4.  Before June 1, 1995, the director of human
35   services shall notify the county auditor of each
36   county of the amount of moneys the county will receive
37   from the relief fund pursuant to subsection 2 in the
38   succeeding fiscal year.  For the fiscal year beginning
39   July 1, 1995, the department of management shall
40   reduce the certified budget amount received from the
41   board of supervisors for that fiscal year by an amount
42   equal to the amount the county will receive and the
43   department of management shall determine the rate of
44   taxation necessary to raise the reduced amount.  For
45   subsequent fiscal years, the county auditor shall
46   reduce the county's property tax requests in the
47   manner specified in section 444.25A.
48     5.  In addition to moneys received by a county
49   pursuant to subsection 2, the county shall be allowed
50   an inflation factor adjustment for assistance paid
Page  26
 1   from the county's services fund under section 331.424A
 2   which is in accordance with the county's management
 3   plan implemented pursuant to section 331.439.  The
 4   inflation factor adjustment shall address costs
 5   associated with new consumers of assistance, service
 6   cost inflation, and investments for economy and
 7   efficiency.  The amount of the inflation factor
 8   adjustment shall not exceed the inflation factor
 9   amount specified in the appropriation for the
10   adjustment.  Payment of the inflation factor
11   adjustment shall be made as provided in the
12   appropriation.
13     6.  The director of revenue and finance shall
14   prescribe forms and adopt rules pursuant to chapter
15   17A to administer this section.
16     Sec. 50.  Section 331.439, Code 1995, is amended by
17   striking the section and inserting in lieu thereof the
18   following:
19     331.439  ELIGIBILITY FOR STATE PAYMENT.
20     1.  The state payment to eligible counties under
21   this section shall be made as provided in section
22   331.438A.  A county is eligible for the state payment,
23   as defined in section 331.438, for the fiscal year
24   beginning July 1, 1995, and for subsequent fiscal
25   years if the director of human services determines for
26   a specific fiscal year that all of the following
27   conditions are met:
28     a.  The county accurately reported by October 15
29   the county's expenditures for mental health, mental
30   retardation, and developmental disabilities services
31   for the previous fiscal year on forms prescribed by
32   the department of human services.
33     b.  The county developed and implemented a county
34   management plan for the county's mental health and
35   mental retardation services in accordance with the
36   provisions of this paragraph.  The plan shall comply
37   with the administrative rules adopted for this purpose
38   by the council on human services and is subject to the
39   approval of the director of human services in
40   consultation with the state-county management
41   committee created in section 331.438.  The plan shall
42   include a description of the county's service
43   management provision for mental health, mental
44   retardation, and developmental disabilities services.
45   The plan shall have the following two parts:
46     (1)  For mental health service management, the
47   county must contract with a state-approved managed
48   mental health care contractor or provide a comparable
49   system of managed care.  For the fiscal year beginning
50   July 1, 1995, this part of the plan shall be
Page  27
 1   implemented on or before October 15, 1995, after
 2   approval by the department of human services.  For
 3   subsequent fiscal years, this part of the plan shall
 4   be submitted to the department by April 1 for the
 5   succeeding fiscal year.
 6     (2)  For mental retardation service management, the
 7   county shall implement a system of managed care within
 8   six months of the date by which the department of
 9   human services approves a managed care contractor.
10   The county must either contract with a state-approved
11   mental retardation managed contractor or provide a
12   comparable system of managed care.  In fiscal years
13   succeeding the fiscal year of initial implementation,
14   this part of the plan shall be submitted to the
15   department of human services by April 1 for the
16   succeeding fiscal year.
17     c.  Changes to the approved plan are submitted
18   sixty days prior to the proposed change and are not to
19   be implemented prior to the director of human
20   services' approval.
21     2.  A county may provide assistance to service
22   populations with disabilities to which the county has
23   historically provided assistance but who are not
24   included in the service management provisions required
25   under subsection 1, subject to the availability of
26   funding.
27     3.  For the fiscal year beginning July 1, 1995, and
28   succeeding fiscal years, implementation of the county
29   management plan is subject to a fixed budget
30   consisting of the moneys deposited by the state and
31   county in the county mental health, mental
32   retardation, and developmental disabilities services
33   fund created in section 331.424A.
34     4.  A county's implementation of the service
35   management provisions required under subsection 1 for
36   mental health and mental retardation shall incorporate
37   the single entry point process described in section
38   331.440.
39     5.  The basis for determining whether a managed
40   care system proposed by a county is comparable to a
41   managed care contractor approved by the department of
42   human services shall include but is not limited to all
43   of the following elements:
44     a.  The enrollment and eligibility process.
45     b.  The scope of services included.
46     c.  The method of plan administration.
47     d.  The process for managing utilization and access
48   to services and other assistance.
49     e.  The quality assurance process.
50     f.  The risk management provisions and fiscal
Page  28
 1   viability of the provisions.
 2     6.  The director's approval of a county's mental
 3   health, mental retardation, and developmental
 4   disabilities services management plan shall not be
 5   construed to constitute certification of the county's
 6   budget.
 7     Sec. 51.  NEW SECTION.  331.424A  MENTAL HEALTH,
 8   MENTAL RETARDATION, AND DEVELOPMENTAL DISABILITIES
 9   SERVICES FUND.
10     1.  For the purposes of this chapter, unless the
11   context otherwise requires, "services fund" means the
12   county mental health, mental retardation, and
13   developmental disabilities services fund created in
14   subsection 2.
15     2.  For the fiscal year beginning July 1, 1995, and
16   succeeding fiscal years, county revenues from taxes
17   and other sources designated for mental health, mental
18   retardation, and developmental disabilities services
19   shall be credited to the mental health, mental
20   retardation, and developmental disabilities services
21   fund of the county.  The board shall make
22   appropriations from the fund for payment of services
23   provided under the county management plan approved
24   pursuant to section 331.439.
25     3.  For the fiscal year beginning July 1, 1995, and
26   succeeding fiscal years, receipts from the state or
27   federal government for such services shall be credited
28   to the services fund, including moneys allotted to the
29   county from the state payment made pursuant to section
30   331.439 and moneys allotted to the county for property
31   tax relief pursuant to section 331.438A.
32     4.  For the fiscal year beginning July 1, 1995, and
33   for each subsequent fiscal year, the county may
34   certify a levy for payment of services.  Unless
35   otherwise provided by state law, for each fiscal year,
36   county revenues from taxes imposed by the county
37   credited to the services fund shall not exceed an
38   amount equal to the amount of base year expenditures
39   from property taxes imposed by the county and paid for
40   services in the fiscal year beginning July 1, 1993,
41   and ending June 30, 1994, as defined in section
42   331.438, less the amount of property tax relief to be
43   received pursuant to section 331.438A in the fiscal
44   year for which the budget is certified.
45     5.  Appropriations specifically authorized to be
46   made from the mental health, mental retardation, and
47   disabilities services fund shall not be made from the
48   general fund of the county.
49     Sec. 52.  Section 444.25A, subsection 1, Code 1995,
50   is amended to read as follows:
Page  29
 1     1.  COUNTY LIMITATION.  The maximum amount of
 2   property tax dollars which may be certified by a
 3   county for taxes payable in the fiscal year beginning
 4   July 1, 1995, shall not exceed the amount of property
 5   tax dollars certified by the county for taxes payable
 6   in the fiscal year beginning July 1, 1994, minus the
 7   amount of the property tax relief payment to be
 8   received by the county for the fiscal year beginning
 9   July 1, 1995, pursuant to section 331.438A, subsection
10   2, and the maximum amount of property tax dollars
11   which may be certified by a county for taxes payable
12   in the fiscal year beginning July 1, 1996, shall not
13   exceed the amount of property tax dollars certified by
14   the county for taxes payable in the fiscal year
15   beginning July 1, 1995, minus the difference between
16   the amount of the property tax relief payment received
17   by the county in the fiscal year beginning July 1,
18   1995, and the amount of the property tax relief
19   payment to be received by the county in the fiscal
20   year beginning July 1, 1996, pursuant to section
21   331.438A, subsection 2, for each of the levies for the
22   following, except for the levies on the increase in
23   taxable valuation due to new construction, additions
24   or improvements to existing structures, remodeling of
25   existing structures for which a building permit is
26   required, annexation, and phasing out of tax
27   exemptions, and on the increase in valuation of
28   taxable property as a result of a comprehensive
29   revaluation by a private appraiser under a contract
30   entered into prior to January 1, 1992, or as a result
31   of a comprehensive revaluation directed or authorized
32   by the conference board prior to January 1, 1992, with
33   documentation of the contract, authorization, or
34   directive on the revaluation provided to the director
35   of revenue and finance, if the levies are equal to or
36   less than the levies for the previous year, levies on
37   that portion of the taxable property located in an
38   urban renewal project the tax revenues from which are
39   no longer divided as provided in section 403.19,
40   subsection 2, or as otherwise provided in this
41   section:
42     a.  General county services under section 331.422,
43   subsection 1.
44     b.  Rural county services under section 331.422,
45   subsection 2.
46     c.  Other taxes under section 331.422, subsection
47   4.
48     Sec. 53.  Section 444.25A, subsection 3, paragraph
49   b, subparagraph (3), Code 1995, is amended to read as
50   follows:
Page  30
 1     (3)  Need for additional moneys for health care,
 2   treatment, and facilities, including mental health and
 3   mental retardation care and treatment pursuant to
 4   section 331.424, subsection 1, paragraphs "a" through
 5   "h" and "b".
 6     Sec. 54.  NEW SECTION.  444.25B  PROPERTY TAX
 7   LIMITATIONS FOR 1998 AND 1999 FISCAL YEARS.
 8     1.  COUNTY LIMITATION.  The maximum amount of
 9   property tax dollars which may be certified by a
10   county for taxes payable in the fiscal year beginning
11   July 1, 1996, shall not exceed the amount of property
12   tax dollars certified by the county for taxes payable
13   in the fiscal year beginning July 1, 1996, minus the
14   difference between the amount of the property tax
15   relief payment received by the county in the fiscal
16   year beginning July 1, 1996, and the amount of the
17   property tax relief payment to be received by the
18   county in the fiscal year beginning July 1, 1997,
19   pursuant to section 331.438A, subsection 2, and the
20   maximum amount of property tax dollars which may be
21   certified by a county for taxes payable in the fiscal
22   year beginning July 1, 1998, shall not exceed the
23   amount of property tax dollars certified by the county
24   for taxes payable in the fiscal year beginning July 1,
25   1997, minus the difference between the amount of the
26   property tax relief payment received by the county in
27   the fiscal year beginning July 1, 1997, and the amount
28   of the property tax relief payment to be received by
29   the county in the fiscal year beginning July 1, 1998,
30   pursuant to section 331.438A, subsection 2, for each
31   of the levies for the following, except for the levies
32   on the increase in taxable valuation due to new
33   construction, additions or improvements to existing
34   structures, remodeling of existing structures for
35   which a building permit is required, annexation, and
36   phasing out of tax exemptions, and on the increase in
37   valuation of taxable property as a result of a
38   comprehensive revaluation by a private appraiser under
39   a contract entered into prior to January 1, 1992, or
40   as a result of a comprehensive revaluation directed or
41   authorized by the conference board prior to January 1,
42   1992, with documentation of the contract,
43   authorization, or directive on the revaluation
44   provided to the director of revenue and finance, if
45   the levies are equal to or less than the levies for
46   the previous year, levies on that portion of the
47   taxable property located in an urban renewal project
48   the tax revenues from which are no longer divided as
49   provided in section 403.19, subsection 2, or as
50   otherwise provided in this section:
Page  31
 1     a.  General county services under section 331.422,
 2   subsection 1.
 3     b.  Rural county services under section 331.422,
 4   subsection 2.
 5     c.  Other taxes under section 331.422, subsection
 6   4.
 7     2.  EXCEPTIONS.  The limitations provided in
 8   subsection 1 do not apply to the levies made for the
 9   following:
10     a.  Debt service to be deposited into the debt
11   service fund pursuant to section 331.430.
12     b.  Taxes approved by a vote of the people which
13   are payable during the fiscal year beginning July 1,
14   1997, or July 1, 1998.
15     c.  Hospitals pursuant to chapters 37, 347, and
16   347A.
17     d.  Emergency management to be deposited into the
18   local emergency management fund and expended for
19   development of hazardous substance teams pursuant to
20   chapter 29C.
21     e.  Unusual need for additional moneys to finance
22   existing programs which would provide substantial
23   benefit to county residents or compelling need to
24   finance new programs which would provide substantial
25   benefit to county residents.  The increase in taxes
26   levied under this exception for the fiscal year
27   beginning July 1, 1997, is limited to no more than the
28   product of the total tax dollars levied in the fiscal
29   year beginning July 1, 1996, and the percent change,
30   computed to two decimal places, in the price index for
31   government purchases by type for state and local
32   governments computed for the third quarter of calendar
33   year 1996 from that computed for the third quarter of
34   calendar year 1995.  The increase in taxes levied
35   under this exception for the fiscal year beginning
36   July 1, 1998, is limited to no more than the product
37   of the total tax dollars levied in the fiscal year
38   beginning July 1, 1997, and the percent change,
39   computed to two decimal places, in the price index for
40   government purchases by type for state and local
41   governments computed for the third quarter of calendar
42   year 1997 from that computed for the third quarter of
43   calendar year 1996.
44     For purposes of this paragraph, the price index for
45   government purchases by type for state and local
46   governments is defined by the bureau of economic
47   analysis of the United States department of commerce
48   and published in table 7.11 of the national income and
49   products accounts.  For the fiscal years beginning
50   July 1, 1997, and July 1, 1998, the price index used
Page  32
 1   shall be the revision published in the November 1996
 2   and November 1997 issues, respectively, of the United
 3   States department of commerce publication, "survey of
 4   current business".  For purposes of this paragraph,
 5   tax dollars levied in the fiscal years beginning July
 6   1, 1996, and July 1, 1997, shall not include funds
 7   levied for paragraphs "a", "b", and "c" of this
 8   subsection.
 9     Application of this exception shall require an
10   original publication of the budget and a public
11   hearing and a second publication and a second hearing
12   both in the manner and form prescribed by the director
13   of the department of management, notwithstanding the
14   provisions of section 331.434.  The publications and
15   hearings prescribed in this paragraph shall be held
16   and the budget certified no later than March 15.  The
17   taxes levied for counties whose budgets are certified
18   after March 15, 1997, shall be frozen at the fiscal
19   year beginning July 1, 1996, level, and the taxes
20   levied for counties whose budgets are certified after
21   March 15, 1998, shall be frozen at the fiscal year
22   beginning July 1, 1997, level.
23     3.  APPEAL PROCEDURES.  In lieu of the procedures
24   in sections 24.48 and 331.426, which procedures do not
25   apply for taxes payable in the fiscal years beginning
26   July 1, 1997, and July 1, 1998, if a county needs to
27   raise property tax dollars from a tax levy in excess
28   of the limitations imposed by subsection 1, the
29   following procedures apply:
30     a.  Not later than March 1, and after the
31   publication and public hearing on the budget in the
32   manner and form prescribed by the director of the
33   department of management, notwithstanding section
34   331.434, the county shall petition the state appeal
35   board for approval of a property tax increase in
36   excess of the increase provided for in subsection 2,
37   paragraph "e", on forms furnished by the director of
38   the department of management.  Applications received
39   after March 1 shall be automatically ineligible for
40   consideration by the board.
41     b.  Additional costs incurred by the county due to
42   any of the following circumstances shall be the basis
43   for justifying the excess in property tax dollars:
44     (1)  Natural disaster or other life-threatening
45   emergencies.
46     (2)  Unusual need for additional moneys to finance
47   existing programs which would provide substantial
48   benefit to county residents or compelling need to
49   finance new programs which would provide substantial
50   benefit to county residents.
Page  33
 1     (3)  Need for additional moneys for health care,
 2   treatment, and facilities, including mental health and
 3   mental retardation care and treatment pursuant to
 4   section 331.424, subsection 1, paragraphs "a" and "b".
 5     (4)  Judgments, settlements, and related costs
 6   arising out of civil claims against the county and its
 7   officers, employees, and agents, as defined in chapter
 8   670.
 9     c.  The state appeal board shall approve,
10   disapprove, or reduce the amount of excess property
11   tax dollars requested.  The board shall take into
12   account the intent of this section to provide property
13   tax relief.  The decision of the board shall be
14   rendered at a regular or special meeting of the board
15   within twenty days of the board's receipt of an
16   appeal.
17     d.  Within seven days of receipt of the decision of
18   the state appeal board, the county shall adopt and
19   certify its budget under section 331.434, which budget
20   may be protested as provided in section 331.436.  The
21   budget shall not contain an amount of property tax
22   dollars in excess of the amount approved by the state
23   appeal board.
24     4.  Rate adjustment by county auditor.  In addition
25   to the requirement of the county auditor in section
26   444.3 to establish a rate of tax which does not exceed
27   the rate authorized by law, the county auditor shall
28   also adjust the rate if the amount of property tax
29   dollars to be raised is in excess of the amount
30   specified in subsection 1, as may be adjusted pursuant
31   to subsection 3.
32     Sec. 55.  NEW SECTION.  444.25C  PROPERTY TAX
33   LIMITATIONS FOR 2000 AND 2001 FISCAL YEARS.
34     1.  COUNTY LIMITATION.  The maximum amount of
35   property tax dollars which may be certified by a
36   county for taxes payable in the fiscal year beginning
37   July 1, 1999, shall not exceed the amount of property
38   tax dollars certified by the county for taxes payable
39   in the fiscal year beginning July 1, 1998, minus the
40   difference between the amount of the property tax
41   relief payment received by the county in the fiscal
42   year beginning July 1, 1998, and the amount of the
43   property tax relief payment to be received by the
44   county in the fiscal year beginning July 1, 1999,
45   pursuant to section 331.438A, subsection 2, and the
46   maximum amount of property tax dollars which may be
47   certified by a county for taxes payable in the fiscal
48   year beginning July 1, 2000, shall not exceed the
49   amount of property tax dollars certified by the county
50   for taxes payable in the fiscal year beginning July 1,
Page  34
 1   1999, minus the difference between the amount of the
 2   property tax relief payment received by the county in
 3   the fiscal year beginning July 1, 1999, and the amount
 4   of the property tax relief payment to be received by
 5   the county in the fiscal year beginning July 1, 2000,
 6   pursuant to section 331.438A, subsection 2, for each
 7   of the levies for the following, except for the levies
 8   on the increase in taxable valuation due to new
 9   construction, additions or improvements to existing
10   structures, remodeling of existing structures for
11   which a building permit is required, annexation, and
12   phasing out of tax exemptions, and on the increase in
13   valuation of taxable property as a result of a
14   comprehensive revaluation by a private appraiser under
15   a contract entered into prior to January 1, 1992, or
16   as a result of a comprehensive revaluation directed or
17   authorized by the conference board prior to January 1,
18   1992, with documentation of the contract,
19   authorization, or directive on the revaluation
20   provided to the director of revenue and finance, if
21   the levies are equal to or less than the levies for
22   the previous year, levies on that portion of the
23   taxable property located in an urban renewal project
24   the tax revenues from which are no longer divided as
25   provided in section 403.19, subsection 2, or as
26   otherwise provided in this section:
27     a.  General county services under section 331.422,
28   subsection 1.
29     b.  Rural county services under section 331.422,
30   subsection 2.
31     c.  Other taxes under section 331.422, subsection
32   4.
33     2.  EXCEPTIONS.  The limitations provided in
34   subsection 1 do not apply to the levies made for the
35   following:
36     a.  Debt service to be deposited into the debt
37   service fund pursuant to section 331.430.
38     b.  Taxes approved by a vote of the people which
39   are payable during the fiscal year beginning July 1,
40   1999, or July 1, 2000.
41     c.  Hospitals pursuant to chapters 37, 347, and
42   347A.
43     d.  Emergency management to be deposited into the
44   local emergency management fund and expended for
45   development of hazardous substance teams pursuant to
46   chapter 29C.
47     e.  Unusual need for additional moneys to finance
48   existing programs which would provide substantial
49   benefit to county residents or compelling need to
50   finance new programs which would provide substantial
Page  35
 1   benefit to county residents.  The increase in taxes
 2   levied under this exception for the fiscal year
 3   beginning July 1, 1999, is limited to no more than the
 4   product of the total tax dollars levied in the fiscal
 5   year beginning July 1, 1998, and the percent change,
 6   computed to two decimal places, in the price index for
 7   government purchases by type for state and local
 8   governments computed for the third quarter of calendar
 9   year 1998 from that computed for the third quarter of
10   calendar year 1997.  The increase in taxes levied
11   under this exception for the fiscal year beginning
12   July 1, 2000, is limited to no more than the product
13   of the total tax dollars levied in the fiscal year
14   beginning July 1, 1999, and the percent change,
15   computed to two decimal places, in the price index for
16   government purchases by type for state and local
17   governments computed for the third quarter of calendar
18   year 1999 from that computed for the third quarter of
19   calendar year 1998.
20     For purposes of this paragraph, the price index for
21   government purchases by type for state and local
22   governments is defined by the bureau of economic
23   analysis of the United States department of commerce
24   and published in table 7.11 of the national income and
25   products accounts.  For the fiscal years beginning
26   July 1, 1999, and July 1, 2000, the price index used
27   shall be the revision published in the November 1998
28   and November 1999 issues, respectively, of the United
29   States department of commerce publication, "survey of
30   current business".  For purposes of this paragraph,
31   tax dollars levied in the fiscal years beginning July
32   1, 1998, and July 1, 1999, shall not include funds
33   levied for paragraphs "a", "b", and "c" of this
34   subsection.
35     Application of this exception shall require an
36   original publication of the budget and a public
37   hearing and a second publication and a second hearing
38   both in the manner and form prescribed by the director
39   of the department of management, notwithstanding the
40   provisions of section 331.434.  The publications and
41   hearings prescribed in this paragraph shall be held
42   and the budget certified no later than March 15.  The
43   taxes levied for counties whose budgets are certified
44   after March 15, 1999, shall be frozen at the fiscal
45   year beginning July 1, 1998, level, and the taxes
46   levied for counties whose budgets are certified after
47   March 15, 2000, shall be frozen at the fiscal year
48   beginning July 1, 1999, level.
49     3.  APPEAL PROCEDURES.  In lieu of the procedures
50   in sections 24.48 and 331.426, which procedures do not
Page  36
 1   apply for taxes payable in the fiscal years beginning
 2   July 1, 1999, and July 1, 2000, if a county needs to
 3   raise property tax dollars from a tax levy in excess
 4   of the limitations imposed by subsection 1, the
 5   following procedures apply:
 6     a.  Not later than March 1, and after the
 7   publication and public hearing on the budget in the
 8   manner and form prescribed by the director of the
 9   department of management, notwithstanding section
10   331.434, the county shall petition the state appeal
11   board for approval of a property tax increase in
12   excess of the increase provided for in subsection 2,
13   paragraph "e", on forms furnished by the director of
14   the department of management.  Applications received
15   after March 1 shall be automatically ineligible for
16   consideration by the board.
17     b.  Additional costs incurred by the county due to
18   any of the following circumstances shall be the basis
19   for justifying the excess in property tax dollars:
20     (1)  Natural disaster or other life-threatening
21   emergencies.
22     (2)  Unusual need for additional moneys to finance
23   existing programs which would provide substantial
24   benefit to county residents or compelling need to
25   finance new programs which would provide substantial
26   benefit to county residents.
27     (3)  Need for additional moneys for health care,
28   treatment, and facilities, including mental health and
29   mental retardation care and treatment pursuant to
30   section 331.424, subsection 1, paragraphs "a" and "b".
31     (4)  Judgments, settlements, and related costs
32   arising out of civil claims against the county and its
33   officers, employees, and agents, as defined in chapter
34   670.
35     c.  The state appeal board shall approve,
36   disapprove, or reduce the amount of excess property
37   tax dollars requested.  The board shall take into
38   account the intent of this section to provide property
39   tax relief.  The decision of the board shall be
40   rendered at a regular or special meeting of the board
41   within twenty days of the board's receipt of an
42   appeal.
43     d.  Within seven days of receipt of the decision of
44   the state appeal board, the county shall adopt and
45   certify its budget under section 331.434, which budget
46   may be protested as provided in section 331.436.  The
47   budget shall not contain an amount of property tax
48   dollars in excess of the amount approved by the state
49   appeal board.
50     4.  Rate adjustment by county auditor.  In addition
Page  37
 1   to the requirement of the county auditor in section
 2   444.3 to establish a rate of tax which does not exceed
 3   the rate authorized by law, the county auditor shall
 4   also adjust the rate if the amount of property tax
 5   dollars to be raised is in excess of the amount
 6   specified in subsection 1, as may be adjusted pursuant
 7   to subsection 3.
 8     Sec. 56.  Section 445.23, Code 1995, is amended to
 9   read as follows:
10     445.23  STATEMENT OF TAXES DUE.
11     1.  Upon request, the The county treasurer
shall
12   state in writing the full amount of taxes against a
13   parcel, all sales for unpaid taxes, and the amount
14   needed to redeem the parcel, if redeemable.  If the
15   person requesting the statement is not the titleholder
16   of record or contract holder of record of the parcel,
17   that person shall pay a fee at the rate of two dollars
18   per parcel for each year for which information is
19   requested, and the money shall be deposited in the
20   county general fund.
21     2.  The county treasurer shall include in a
22   prominent place on the tax statement the amount of
23   each of the following state tax credits that apply to
24   the parcel and amount by which each credit reduced the
25   taxes due on the parcel:
26     a.  Homestead credit under chapter 425.
27     b.  Military service credit under chapter 426A.
28     c.  Extraordinary credit under chapter 425.
29     d.  Mental health, mental retardation, and de-
30   velopmental disabilities property tax relief under
31   section 331.438A.
32     e.  Farm tax credit under chapter 426.
33     Sec. 57.  REPEAL.  1994 Iowa Acts, chapter 1163,
34   section 8, is repealed.
35     Sec. 58.  INTERIM COMMITTEE CREATED.  The
36   legislative council is requested to establish an
37   interim committee comprised of members of the general
38   assembly with the charge of developing a system to
39   regulate and contain county expenditures for mental
40   health, mental retardation, and developmental
41   disabilities and to develop a formula for distribution
42   of property tax relief moneys to counties under
43   section 331.438A, subsection 2.  The committee should
44   be directed to report to the governor and the general
45   assembly prior to the 1996 legislative session.
46     Sec. 59.  EFFECTIVE DATE.  This division of this
47   Act, being deemed of immediate importance, takes
48   effect upon enactment."
49     2.  Title page, by striking lines 1 through 4 and
50   inserting the following:  "An Act relating to income
Page  38
 1   tax relief, property tax relief, machinery and
 2   equipment phase-in exemption, reimbursement, mental
 3   health, and providing effective dates."
Weigel of Chickasaw asked and received unanimous consent to
withdraw amendment H-3203, to the committee amendment H-3030, 
filed by Weigel, et. al., on February 23, 1995.
Bernau of Story offered amendment H-3200, to the committee
amendment H-3030, filed by Bernau, et. al., as follows:
H-3200
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate as follows:
 3     1.  Page 1, by striking lines 6 through 45 and
 4   inserting the following:  "SPECIAL FUNDS".
 5     2.  By striking page 3, line 23, through page 4,
 6   line 34.
 7     3.  Page 4, by striking lines 41 through 44.
 8     4.  Page 4, line 45, by striking the figure "2."
 9     5.  Page 25, line 14, by striking the word "fund."
10   and inserting the following:  "fund and the amount of
11   allocations from the fund for property tax relief
12   pursuant to subsection 2 and for the adjustment factor
13   pursuant to subsection 5 shall be as specified in law
14   by the general assembly.  There is appropriated to the
15   mental health, mental retardation, and developmental
16   disabilities property tax relief fund for the
17   indicated fiscal years from the general fund of the
18   state the following amounts:
19     a.  For the fiscal year beginning July 1, 1995,
20   eighty-one million dollars.
21     b.  For the fiscal year beginning July 1, 1996,
22   ninety-eight million dollars.
23     c.  For the fiscal year beginning July 1, 1997, one
24   hundred ninety-nine million dollars.
25     d.  For the fiscal year beginning July 1, 1998, two
26   hundred ninety-two million dollars.
27     e.  For the fiscal year beginning July 1, 1999, and
28   succeeding fiscal years, three hundred seven million
29   dollars."
30     6.  Page 26, by striking lines 8 through 12 and
31   inserting the following:  "adjustment shall not exceed
32   the amount specified by the general assembly for the
33   fiscal year."
Speaker pro tempore Van Maanen of Marion in the chair at 2:41
p.m.
Bernau of Story moved the adoption of amendment H-3200, to the
committee amendment H-3030.
Roll call was requested by Bernau of Story and Murphy of Dubuque.
On the question "Shall amendment H-3200, to the committee
amendment H-3030, be adopted?" (S.F. 69)
The ayes were, 34:
Arnold	Baker          	Bell           	Bernau         	Brand    
     	Burnett        	Cataldo        	Cohoon         	Connors   
    	Doderer        	Drees          	Fallon         	Harper     
   	Holveck        	Jochum         	Koenigs        	Larkin      
  	Mascher        	May            	McCoy          	Mertz        
 	Moreland       	Murphy         	Myers          	Nelson, L.    
  	O'Brien        	Ollie          	Running        	Schrader     
 	Shoultz        	Warnstadt      	Weigel         	Wise          
	Witt           	

The nays were, 64:

Blodgett       	Boddicker      	Boggess        	Bradley       
	Branstad       	Brauns         	Brunkhorst     	Carroll       
	Churchill      	Coon           	Corbett, Spkr.	Cormack       
	Cornelius      	Daggett        	Dinkla         	Disney        
	Drake          	Eddie          	Ertl           	Garman        
	Gipp           	Greig          	Gries          	Grubbs        
	Grundberg      	Hahn           	Halvorson      	Hammitt       
	Hanson         	Harrison       	Heaton         	Houser        
	Hurley         	Huseman        	Jacobs         	Klemme        
	Kreiman        	Kremer         	Lamberti       	Larson        
	Lord           	Main           	Martin         	Metcalf       
	Meyer          	Millage        	Mundie         	Nelson,  B.    
 	Nutt           	Rants          	Renken         	Salton        
	Schulte        	Siegrist       	Sukup          	Teig          
	Thomson        	Tyrrell        	Van Fossen     	Vande Hoef    
	Veenstra       	Weidman        	Welter         	Van Maanen,				
Absent or not voting, 2:
Brammer               	Greiner        	
Amendment H-3200 lost.
Doderer of Johnson offered the following amendment H-3202, to
the committee amendment H-3030, filed by Doderer, et. al., and
moved its adoption:
H-3202
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate as follows:
 3     1.  Page 1, by striking lines 6 through 45 and
 4   inserting the following:
 5     "DEPENDENT TAX CREDIT AND SPECIAL FUND.
 6     Section 1.  Section 422.12, subsection 1, paragraph
 7   c, Code 1995, is amended by striking the paragraph.
 8     Sec. 2.  NEW SECTION.  422.12A  DEPENDENT TAX
 9   CREDIT.
10     1.  The taxes imposed under this division less the
11   credits allowed under sections 422.11A, 422.11B,
12   422.11C, 422.12, and 422.12B shall be reduced by a
13   dependent tax credit equal to one hundred thirty-five
14   dollars for each dependent for tax years beginning on
15   or after January 1, 1995, but before January 1, 1997,
16   and four hundred fifteen dollars for each dependent
17   for tax years beginning on or after January 1, 1997.
18   The term "dependent" means the same as defined in the
19   internal Revenue Code.
20     2.  Any credit in excess of the tax liability shall
21   be refunded.  In lieu of claiming a refund, a taxpayer
22   may elect to have the overpayment shown on the
23   taxpayer's final, completed return credited to the tax
24   liability for the following taxable year."
25     2.  By striking page 3, line 23, through page 4,
26   line 33.
Roll call was requested by Bernau of Story and Schrader of
Marion.
On the question "Shall amendment H-3202, to the committee
amendment H-3030, be adopted?" (S.F. 69)
The ayes were, 34:
Baker          	Bell           	Bernau         	Brand         
	Brunkhorst     	Burnett        	Cataldo        	Cohoon        
	Connors        	Doderer        	Drees          	Grubbs        
	Grundberg      	Harper         	Holveck        	Jochum        
	Koenigs        	Larkin         	Mascher        	May           
	Mertz          	Moreland       	Mundie         	Murphy        
	Myers          	Nelson, L.       	O'Brien        	Ollie        
 	Running        	Schrader       	Shoultz        	Warnstadt     
	Weigel         	Witt           	
The nays were, 64:
Arnold         	Blodgett       	Boddicker      	Boggess       
	Bradley        	Branstad       	Brauns         	Carroll       
	Churchill      	Coon                  	Corbett, Spkr.	Cormack  
     	Cornelius      	Daggett        	Dinkla         	Disney    
    	Drake          	Eddie          	Ertl           	Fallon     
   	Garman         	Gipp           	Greig          	Gries       
  	Hahn           	Halvorson      	Hammitt        	Hanson       
 	Harrison       	Heaton         	Houser         	Hurley        
	Huseman        	Jacobs         	Klemme         	Kreiman       
	Kremer         	Lamberti       	Larson         	Lord          
	Main           	Martin         	McCoy          	Metcalf       
	Meyer          	Millage        	Nelson,  B.      	Nutt         
 	Rants          	Renken         	Salton         	Schulte       
	Siegrist       	Sukup          	Teig           	Thomson       
	Tyrrell        	Van Fossen     	Vande Hoef     	Veenstra      
	Weidman        	Welter         	Wise	Van Maanen ,			 	 
Presiding
Absent or not voting, 2:
Brammer        	Greiner        	
Amendment H-3202 lost.
Running of Linn offered the following amendment H-3206, to the
committee amendment H-3030, filed by Running, et. al., and moved
its adoption:
H-3206
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate, as follows:
 3     1.  Page 4, by inserting before line 35 the
 4   following:
 5     "Sec. 100.  Section 422.7, Code 1995, is amended by
 6   adding the following new subsection:
 7     NEW SUBSECTION.  32.  For a person who is disabled,
 8   or is fifty-five years of age or older, or is the
 9   surviving spouse of an individual or a survivor having
10   an insurable interest in an individual who would have
11   qualified for the exemption under this subsection for
12   the tax year, subtract, to the extent included, the
13   total amount of a governmental or other pension,
14   retirement pay, annuity, or other similar periodic
15   payment made under a plan maintained or contributed to
16   by an employer, or maintained or contributed to by a
17   self-employed person as an employer, up to a maximum
18   of seven thousand five hundred dollars for a person
19   who files a separate state income tax return, and up
20   to a maximum of fifteen thousand dollars for a husband
21   and wife who file a joint state income tax return.
22   However, a surviving spouse who is not disabled or
23   fifty-five years of age or older can only exclude the
24   amount of annuities or other similar periodic payments
25   received as a result of the death of the other
26   spouse."
27     2.  Page 4, by inserting after line 46 the
28   following:
29     "Sec. ___.  APPLICABILITY.  Section 100 of this Act
30   applies retroactively to January 1, 1995, for tax
31   years beginning on or after that date."
32     3.  By renumbering as necessary.
Roll call was requested by Running of Linn and Schrader of
Marion.
On the question "Shall amendment H-3206, to the committee
amendment H-3030, be adopted?" (S.F. 69)
The ayes were, 41:
Baker          	Bell           	Bernau         	Bradley       
	Brand          	Burnett        	Cataldo        	Cohoon        
	Connors        	Doderer        	Fallon         	Harrison      
	Holveck        	Hurley         	Jochum         	Koenigs       
	Kreiman        	Larkin         	Martin         	Mascher       
	May            	McCoy          	Mertz          	Millage       
	Moreland       	Mundie         	Murphy         	Myers   
	Nelson, B.      	Nelson, L.       	O'Brien        	Ollie       
  	Running        	Schrader       	Shoultz        	Thomson      
 	Van Fossen     	Warnstadt      	Weigel         	Wise          
	Witt           	
The nays were, 57:
Arnold         	Blodgett       	Boddicker      	Boggess       
	Branstad       	Brauns         	Brunkhorst     	Carroll       
	Churchill      	Coon                  	Corbett, Spkr.	Cormack  
     	Cornelius      	Daggett        	Dinkla         	Disney    
    	Drake          	Drees          	Eddie          	Ertl       
   	Garman         	Gipp           	Greig          	Gries       
  	Grubbs         	Grundberg      	Hahn           	Halvorson    
 	Hammitt        	Hanson         	Harper         	Heaton        
	Houser         	Huseman        	Jacobs         	Klemme        
	Kremer         	Lamberti       	Larson         	Lord          
	Main           	Metcalf        	Meyer          	Nutt          
	Rants          	Renken         	Salton         	Schulte       
	Siegrist       	Sukup          	Teig           	Tyrrell       
	Vande Hoef     	Veenstra       	Weidman        	Welter	Van
Maanen,				  Presiding     	         	
Absent or not voting, 2:
Brammer        	Greiner        	      	
Amendment H-3206 lost.
O'Brien of Boone offered the following amendment H-3207, to the
committee amendment H-3030, filed by O'Brien, et. al., and moved
its adoption:
H-3207
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate, as follows:
 3     1.  Page 4, by inserting before line 35 the
 4   following:
 5     "Sec. ___.  Section 422.73, Code 1995, is amended
 6   by adding the following new subsection:
 7     NEW SUBSECTION.  3.  Notwithstanding subsection 2,
 8   a claim for credit or refund of individual income tax
 9   paid for any tax year beginning on or after January 1,
10   1985, and before January 1, 1989, is considered timely
11   if filed with the department on or before April 30,
12   1996, if the taxpayer's claim is the result of the
13   unconstitutional taxation of federal pension benefits
14   based upon the decision in Davis v. Michigan
15   Department of Treasury, 489 U.S. 803, 109 S. Ct. 1500
16   (1989).
17     A taxpayer entitled to a credit or refund of tax
18   paid under this subsection shall receive an amount
19   equal to ninety-five percent of the credit or refund
20   plus interest with interest not accruing after January
21   12, 1994.  The claim for credit or refund shall be
22   made on the income tax return for the tax year
23   beginning in the 1995 calendar year.  If the taxpayer
24   does not owe tax or the credit is in excess of the tax
25   computed, the taxpayer shall receive a refund of the
26   excess."
27     2.  By renumbering as necessary.
Roll call was requested by Schrader of Marion and Murphy of
Dubuque.
Rule 75 was invoked.
On the question "Shall amendment H-3207, to the committee
amendment H-3030, be adopted?" (S.F. 69)
The ayes were, 46:
Arnold         	Baker          	Bell           	Bernau        
	Bradley        	Brand          	Brauns         	Burnett       
	Cataldo        	Cohoon         	Connors        	Cornelius     
	Daggett        	Doderer        	Drees          	Fallon        
	Garman         	Gries          	Harper         	Harrison      
	Holveck        	Jochum         	Koenigs        	Kreiman       
	Larkin         	Martin         	Mascher        	May           
	McCoy          	Mertz          	Moreland       	Mundie        
	Murphy         	Myers          	Nelson, L.       	O'Brien      
 	Ollie          	Running        	Schrader       	Shoultz       
	Tyrrell        	Van Fossen     	Warnstadt      	Weigel        
	Wise           	Witt           	
The nays were, 52:
Blodgett       	Boddicker      	Boggess        	Branstad      
	Brunkhorst     	Carroll        	Churchill      	Coon           
      	Corbett, Spkr.	Cormack        	Dinkla         	Disney    
    	Drake          	Eddie          	Ertl           	Gipp       
   	Greig          	Grubbs         	Grundberg      	Hahn        
  	Halvorson      	Hammitt        	Hanson         	Heaton       
 	Houser         	Hurley         	Huseman        	Jacobs        
	Klemme         	Kremer         	Lamberti       	Larson        
	Lord           	Main           	Metcalf        	Meyer         
	Millage        	Nelson,  B.      	Nutt           	Rants        
 	Renken         	Salton         	Schulte        	Siegrist      
	Sukup          	Teig           	Thomson        	Vande Hoef    
	Veenstra       	Weidman        	Welter         	Van Maanen,				
 Presiding
Absent or not voting, 2:
Brammer        	Greiner        	

Amendment H-3207 lost.
Halvorson of Clayton offered the following amendment H-3192, to
the committee amendment H-3030, filed by him and moved its
adoption:
H-3192
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate as follows:
 3     1.  Page 6, by striking lines 5 through 25.
 4     2.  Page 7, by striking lines 9 through 20 and
 5   inserting the following:
 6     "b.  A resident's income allocable to Iowa is the
 7   income determined under section 422.7 reduced by items
 8   of income and expenses from a subchapter S corporation
 9   which pass directly to the shareholders under
10   provisions of the Internal Revenue Code and increased
11   by the greater of the following:
12     (1)  The net income or loss of the corporation
13   which is fairly and equitably attributable to this
14   state under section 422.33, subsections 2 and 3.
15     (2)  The taxpayer's pro rata share of an amount
16   deemed distributed to shareholders which when added to
17   the salaries, wages, or other compensation for
18   services performed by all shareholders will equal ten
19   percent of the net income of the corporation computed
20   in accordance with section 422.35 and considering
21   items of income and expense which pass directly to the
22   shareholders under provisions of the Internal Revenue
23   Code before deduction of shareholder's salaries,
24   wages, or other compensation for services performed.
25     (3)  Any cash or the value of any property
26   distributions made to the extent they are paid from
27   income upon which Iowa income tax has not been paid as
28   determined under rules of the director."
Amendment H-3192 was adopted.
Shoultz of Black Hawk offered the following amendment H-3208, to
the committee amendment H-3030, filed by Shoultz, et. al., and
moved its adoption:
H-3208
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate as follows:
 3     1.  By striking page 4, line 47, through page 7,
 4   line 34.
 5     2.  Page 37, by inserting after line 32 the
 6   following:
 7     "Sec. ___.  There is appropriated to the mental
 8   health, mental retardation, and developmental
 9   disabilities property tax relief fund for the
10   indicated fiscal years from the general fund of the
11   state in addition to any other moneys so appropriated
12   the following amounts:
13     a.  For the fiscal year beginning July 1, 1995,
14   eight million dollars.
15     b.  For the fiscal year beginning July 1, 1996,
16   eight million dollars.
17     c.  For the fiscal year beginning July 1, 1997,
18   eight million dollars.
19     d.  For the fiscal year beginning July 1, 1998,
20   eight million dollars.
21     e.  For the fiscal year beginning July 1, 1999, and
22   succeeding fiscal years, eight million dollars."
Roll call was requested by Schrader of Marion and Shoultz of
Black Hawk.
On the question "Shall amendment H-3208, to the committee
amendment H-3030, be adopted?" (S.F. 69)
The ayes were, 28:
Baker          	Bernau         	Brand          	Burnett       
	Cohoon         	Connors        	Doderer        	Drees         
	Fallon         	Grundberg      	Harper         	Holveck       
	Jochum         	Koenigs        	Kreiman        	Larkin        
	Mascher        	May            	Murphy         	Myers         
	Nelson, L.       	O'Brien        	Ollie          	Running      
 	Schrader       	Shoultz        	Weigel         	Wise          

The nays were, 69:
Arnold         	Bell           	Blodgett       	Boddicker     
	Boggess        	Bradley        	Branstad       	Brauns        
	Brunkhorst     	Carroll        	Cataldo        	Churchill     
	Coon                  	Corbett, Spkr.	Cormack        	Cornelius
     	Daggett        	Dinkla         	Disney         	Drake     
    	Eddie          	Garman         	Gipp           	Greig      
   	Gries          	Grubbs         	Hahn           	Halvorson   
Hammitt        	Hanson         	Harrison       	Heaton        
	Houser         	Hurley         	Huseman        	Jacobs        
	Klemme         	Kremer         	Lamberti       	Larson        
	Lord           	Main           	Martin         	McCoy         
	Mertz          	Metcalf        	Meyer          	Millage       
	Moreland       	Mundie         	Nelson,  B.      	Nutt         
 	Rants          	Renken         	Salton         	Schulte       
	Siegrist       	Sukup          	Teig           	Thomson       
	Tyrrell        	Van Fossen     	Vande Hoef     	Veenstra      
	Warnstadt      	Weidman        	Welter         	Witt          
	Van Maanen,				  Presiding
Absent or not voting, 3:
Brammer        	Ertl           	Greiner        	
Amendment H-3208 lost.
Rule 76, invoked. Under the provisions of Rule 76, conflict of
interest, Ertl of Dubuque refrained from voting.
Rants of Woodbury offered the following amendment H-3121, to the
committee amendment H-3030, filed by Rants, et. al., and moved
its adoption:
H-3121
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate, as follows:
 3     1.  Page 8, by inserting after line 16 the follow-
 4   ing:
 5     "Any electric power generating plant which operated
 6   during the preceding assessment year at a net capacity
 7   factor of more than twenty percent, shall not receive
 8   the benefits of this section.  For purposes of this
 9   section, "electric power generating plant" means any
10   name plate rated electric power generating plant, in
11   which electric energy is produced from other forms of
12   energy, including all taxable land, buildings, and
13   equipment used in the production of such energy.  "Net
14   capacity factor" means net actual generation divided
15   by the product of net maximum capacity times the
16   number of hours the unit was in the active state
17   during the assessment year.  Upon commissioning, a
18   unit is in the active state until it is de-
19   commissioned.  "Net actual generation" means net
20   electrical megawatt hours produced by the unit during
21   the preceding assessment year.  "Net maximum capacity"
22   means the capacity the unit can sustain over a
23   specified period when not restricted by ambient
24   conditions or equipment deratings, minus the losses
25   associated with station service or auxiliary loads."
Amendment H-3121 was adopted.
Halvorson of Clayton offered the following amendment H-3196, to
the committee amendment H-3030, filed by him and moved its
adoption:
H-3196
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate, as follows:
 3     1.  Page 9, line 14, by striking the word "after"
 4   and inserting the following:  "following".
 5     2.  Page 9, by striking lines 33 through 36 and
 6   inserting the following:  "for the applicable
 7   assessment year.  If the certificates issued, or other
 8   funding obligations incurred, between January 1, 1982,
 9   and June 30, 1995, are refinanced or refunded after
10   June 30, 1995, the valuation of such property shall
11   then be the valuation specified in subsection 1 for
12   the applicable assessment year beginning with the
13   assessment year following the calendar year in which
14   those certificates or other funding obligations are
15   refinanced or refunded after June 30, 1995."
16     3.  Page 12, by striking lines 15 through 37 and
17   inserting the following:
18     "If for any reason an appropriation specified in
19   section 427B.19B is not made or the appropriation made
20   is less than that specified in section 427B.19B for
21   the applicable fiscal year, the director of revenue
22   and finance shall compute for each county the
23   difference between the total of all replacement claims
24   for taxing districts within the county and the amount
25   paid to the county treasurer for disbursement to the
26   taxing districts in the county.  The department shall
27   divide that difference by the consolidated tax levy
28   rate in each county computed for the fiscal year in
29   which the specified appropriation should have been
30   made and shall certify the amount of taxable value
31   necessary to raise the difference at that tax rate.
32   The department shall notify the local assessor of such
33   amount of taxable value.  The assessor, for the
34   assessment year beginning January 1 preceding the
35   fiscal year for which the specified appropriation was
36   not made, shall reassess all taxable property
37   described in section 427B.17 in the county at a
38   percentage of net acquisition cost which will yield
39   such taxable value and the property shall be assessed
40   and taxed in such manner for taxes due and payable in
41   the following fiscal year in addition to being
42   assessed and taxed in the applicable manner under
43   section 427B.17.  Property tax dollar amounts
44   certified pursuant to this section shall not be
45   considered property tax dollars certified for purposes
46   of the property tax limitation in chapter 444."
Amendment H-3196 was adopted.
Halvorson of Clayton offered the following amendment H-3199, to
the committee amendment H-3030, filed by him and moved its
adoption:
H-3199
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate, as follows:
 3     1.  Page 11, by striking lines 36 and 37 and
 4   inserting the following:
 5     "1.  For the fiscal year beginning July 1, 1996,
 6   eight million, one hundred thousand dollars."
 7     2.  Page 11, by striking line 39 and inserting the
 8   following:  "fifteen million, two hundred thousand
 9   dollars."
10     3.  Page 11, by striking line 41 and inserting the
11   following:  "twenty-one million, one hundred thousand
12   dollars."
13     4.  Page 12, by inserting before line 38 the
14   following:
15     "Sec. ___.  NEW SECTION.  427B.19E  INDUSTRIAL
16   MACHINERY, EQUIPMENT AND COMPUTERS RELIEF FUND.
17     1.  The industrial machinery, equipment and
18   computers relief fund is created.  There is
19   appropriated annually from the general fund of the
20   state to the department of revenue and finance to be
21   credited to the relief fund, the following amounts:
22     a.  For the fiscal year beginning July 1, 1996, one
23   million, nine hundred thousand dollars.
24     b.  For the fiscal year beginning July 1, 1997, one
25   million, eight hundred thousand dollars.
26     c.  For the fiscal year beginning July 1, 1998, one
27   million, nine hundred thousand dollars.
28     Moneys in the fund at the end of a fiscal year
29   shall not revert to the general fund of the state,
30   notwithstanding section 8.33.
31     2.  a.  The purpose of the industrial machinery,
32   equipment and computers relief fund is to provide
33   funds to those taxing districts in which an increase
34   in property tax revenue has not been realized as a
35   result of the elimination of the property tax on
36   property assessed pursuant to section 427B.17.
37   Beginning with the fiscal year beginning July 1, 1996,
38   a taxing district may apply for funds under this
39   section by filing an application with the director of
40   the department of management not later than March 1
41   preceding the fiscal year in which the funds will be
42   distributed.  The state appeal board shall approve,
43   disapprove, or reduce the amount of funds requested by
44   the taxing district.
45     b.  On forms provided by the department of
46   management, the taxing district shall request an
47   amount not exceeding the product of the decrease in
48   assessed valuation for the fiscal year for which the
49   application is filed compared to the assessed
50   valuation in the previous fiscal year, as determined
Page 2  
 1   pursuant to subsection 3, and the property tax rate
 2   applied in the previous fiscal year, less any property
 3   tax replacement funds received pursuant to section
 4   427B.19A in the previous fiscal year.  The taxing
 5   district shall also submit with the application the
 6   district's plan to improve its future budget position.
 7     c.  Claims approved by the state appeal board shall
 8   be paid to the taxing district by October 1 following
 9   submission of the application for funds.
10     3.  To be eligible to receive funds under this
11   section, a taxing district must show that there has
12   been a decrease of more than three percent in the
13   assessed valuation for taxes payable in the fiscal
14   year for which the application is submitted compared
15   to the assessed valuation for taxes payable in the
16   previous fiscal year, which decrease is attributable
17   to the elimination of the property tax on industrial
18   machinery, equipment and computers pursuant to section
19   427B.17.  The taxing district, to be eligible for
20   funds, must also show that the district has exhausted
21   all other lawful alternatives for improving the
22   district's budget position.
23     4.  If the amount appropriated in this section is
24   insufficient to pay all applications approved, the
25   director of revenue and finance shall prorate the
26   disbursements from the relief fund and shall report
27   the amount of the shortfall to the director of the
28   department of management.  By January 1 of the
29   following year, the director of the department of
30   management shall submit to the general assembly a plan
31   for the funding of approved applications that were not
32   fully funded in that fiscal year.
33     5.  Amounts received pursuant to this section shall
34   not be considered property tax dollars certified for
35   purposes of the property tax limitation in chapter
36   444.
37     6.  The department of revenue and finance and the
38   department of management shall adopt rules necessary
39   to implement this section."
40     5.  By renumbering as necessary.
Amendment H-3199 was adopted.
Weigel of Chickasaw offered the following amendment H-3209, to
the committee amendment H-3030, filed by Weigel, et. al., and
moved its adoption:
H-3209
 1     Amend the amendment, H-3030, to Senate File 69, as
 2   passed by the Senate, as follows:
 3     1.  By striking page 7, line 38, through page 12,
 4   line 37, and inserting the following:
 5     "Sec. ___.  NEW SECTION.  427B.18  TAXPAYER
 6   REIMBURSEMENT.
 7     1.  By July 1 of each year, the county treasurer
 8   shall certify and mail to each taxpayer who pays
 9   property taxes on property defined in section 427A.1,
10   subsection 1, paragraphs "e" and "j", and assessed
11   pursuant to section 427B.17, a statement of the amount
12   of property taxes paid in the previous fiscal year for
13   such property and the statement shall serve as a
14   voucher for purposes of claiming taxpayer
15   reimbursement from the state for property taxes paid
16   on such property.
17     2.  Not later than September 1, the claimant shall
18   submit the certified voucher to the department of
19   revenue and finance for reimbursement of property
20   taxes paid on property assessed pursuant to section
21   427B.17.  By December 1 of each year, the department
22   shall issue warrants to each claimant in the amount of
23   the claimant's certified voucher."
24     2.  By renumbering as necessary.
Roll call was requested by Weigel of Chickasaw and Schrader of
Marion.
On the question "Shall amendment H-3209, to the committee
amendment H-3030, be adopted?" (S.F. 69)
The ayes were, 34:
Baker          	Bell           	Bernau         	Brand         
	Burnett        	Cataldo        	Cohoon         	Connors       
	Doderer        	Drees          	Fallon         	Harper        
	Holveck        	Jochum         	Koenigs        	Kreiman       
	Larkin         	Mascher        	May            	McCoy         
	Mertz          	Moreland       	Mundie         	Murphy        
	Myers          	Nelson, L.       	Ollie          	Running      
 	Schrader       	Shoultz        	Warnstadt      	Weigel        
	Wise           	Witt           	
The nays were, 64:
Arnold         	Blodgett       	Boddicker      	Boggess       
	Bradley        	Branstad       	Brauns         	Brunkhorst    
	Carroll        	Churchill      	Coon           	Cormack       
	Cornelius      	Daggett        	Dinkla         	Disney        
	Drake          	Eddie          	Ertl           	Garman        
	Gipp           	Greig          	Greiner        	Gries         
	Grubbs         	Grundberg      	Hahn           	Halvorson     
Hammitt        	Hanson         	Harrison       	Heaton        
	Houser         	Hurley         	Huseman        	Jacobs        
	Klemme         	Kremer         	Lamberti       	Larson        
	Lord           	Main           	Martin         	Metcalf       
	Meyer          	Millage        	Nelson,  B.      	Nutt         
 	O'Brien        	Rants          	Renken         	Salton        
	Schulte        	Siegrist       	Sukup          	Teig          
	Thomson        	Tyrrell        	Van Fossen     	Vande Hoef    
	Veenstra       	Weidman        	Welter         	Van Maanen,				
 Presiding    	

Absent or not voting, 2:
Brammer               	Corbett, Spkr.

Amendment H-3209 lost.
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 69 be deferred and that the bill retain its
place on the special order calendar.
(The committee amendment H-3030, as amended, pending.)
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Mr. Speaker: I am directed to inform your honorable body that
the Senate has on February 27, 1995, passed the following bill
in which the concurrence of the House is asked:
Senate File 142, a bill for an act establishing felonious child
endangerment as a nonbailable offense.
Also: That the Senate has on February 27, 1995, passed the
following bill in which the concurrence of the House is asked:
Senate File 159, a bill for an act relating to the payment of
wages to a suspended or terminated employee under the Iowa wage
payment collection law.
Also: That the Senate has on February 27, 1995, passed the
following bill in which the concurrence of the House is asked:
Senate File 175, a bill for an act relating to the definition of
the federal Truth in Lending Act in the Iowa consumer credit
code.
JOHN F. DWYER, Secretary

SPONSOR ADDED
(House File 208)
Harrison of Scott requested to be added as a sponsor of House
File 208.
COMMUNICATIONS RECEIVED
The following communications were received and filed in the
office of the Chief Clerk:
DEPARTMENT OF HUMAN SERVICES
The report of the study committee to review the feasibility of
creating a special class of nursing facility to service persons
with mental retardation who do not require active treatment,
pursuant to Chapter 1186.3(3)(c), 1994 Acts of the Seventy-fifth
General Assembly.
DEPARTMENT OF NATURAL RESOURCES
Environmental Protection Commission
A draft of proposed rules which address regulation of infectious
waste treatment and disposal facilities, pursuant to Chapter
455B.503, Code of Iowa.
DEPARTMENT OF PUBLIC HEALTH
Advisory Council on Head Injuries
The Annual Report, pursuant to Chapter 135.22A(6)(f), Code of
Iowa.
IOWA'S CENTER FOR AGRICULTURAL SAFETY AND HEALTH
The 1994 Annual Report, pursuant to Chapter 262.78(6), Code of
Iowa.
STATE HEALTH REGISTRY OF IOWA
The 1995 Cancer in Iowa, annual report. This report includes
cancer projections for 1995 as well as a special section on 20
years of cancer data for the state of Iowa.
HOUSE STUDY BILL COMMITTEE ASSIGNMENTS
H.S.B. 200 Commerce-Regulation
Relating to delinquency charges on credit cards used to purchase
or lease goods or services from less than one hundred persons
not related to the card issuer.
H.S.B. 201 Commerce-Regulation
Relating to the relationship between a licensed real estate
salesperson or broker and the parties to a transaction and
providing an effective date.
H.S.B. 202 Commerce-Regulation
Concerning health care coverage availability to unemployed
individuals.
H.S.B. 203 Commerce-Regulation
Relating to the prepayment of loans sold into the agricultural
mortgage secondary market by providing for interest and
penalties.
H.S.B. 204 Commerce-Regulation
Relating to construction contractors by imposing penalties,
regulating home improvement contractors by requiring a bond, and
providing consumer remedies, and providing an effective date.
H.S.B. 205 State Government
Changing the number of state employees required to activate
automatic payroll deduction for payment of professional or trade
association dues or fees.
H.S.B. 206 State Government
Providing for the reincorporation of nonprofit corporations and
providing for retroactive applicability and effective dates.
H.S.B. 207 State Government
Relating to the office of secretary of state and the conduct of
elections and voter registration in the state and relating to
corrective and technical changes to Iowa's election laws.
H.S.B. 208 Commerce-Regulation
Relating to the regulation of state banks and other financial
institutions by the division of banking of the department of
commerce.
H.S.B. 209 Local Government
Relating to the control and maintenance of township cemeteries
and abandoned cemeteries by the county board of supervisors.
H.S.B. 210 Human Resources
Relating to the family investment program and related human
services programs by requiring the department of human services
to apply for certain federal waivers and providing applicability
provisions.
H.S.B. 211 Human Resources
Relating to case permanency plans for children in out-of-home
placements.
H.S.B. 212 Human Resources
Relating to an interview of a child alleged to be a victim of
child abuse.
H.S.B. 213 Human Resources
Relating to the statistical reporting of terminations of
pregnancy and establishing penalties.
H.S.B. 214 Economic Development
Establishing the Iowa hope loan program, creating an Iowa hope
loan fund, allocating gaming revenues and making an
appropriation, and providing for other properly related matters.
H.S.B. 215 Judiciary
Prohibiting the operation of a motorboat or sailboat while
intoxicated and providing for penalties and other related
matters.
H.S.B. 216 Judiciary
Relating to the exemption for attorneys who have provided
abstract services under the title guaranty program.
H.S.B. 217 Judiciary
Relating to discriminatory employment practices towards
individuals with disabilities and making penalties applicable
and providing an effective date.
H.S.B. 218 Commerce-Regulation
Relating to the elimination of a requirement that a transaction
engaged in with a retailer through a satellite terminal located
in this state which results in a debit to a customer asset
account be cleared and paid at par to the retailer.
H.S.B. 219 Commerce-Regulation
Relating to electronic transfer of funds and establishing
certain requirements for full-function point-of-sale terminals
and electronic funds transfer facilities owned by a national
card association, and establishing a civil penalty.
AMENDMENTS FILED
H-3213	H.J.R.	9	Jochum of Dubuque
			Mascher of Johnson
H-3214	H.J.R.	9	Jochum of Dubuque
			Mascher of Johnson
			Harper of Black Hawk
			Mundie of Webster
H-3215	H.J.R.	9	Jochum of Dubuque
			Harper of Black Hawk
			Mundie of Webster
			Mascher of Johnson
H-3216	H.F.	179	Vande Hoef of Osceola
On motion by Siegrist of Pottawattamie, the House adjourned at
7:17 p.m. until 8:45 a.m., Tuesday, February 28, 1995.

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

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