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House Journal: Wednesday, March 27, 1996

Eightieth Calendar Day - Fifty-fourth Session Day

Hall of the House of Representatives
Des Moines, Iowa, Wednesday, March 27, 1996
The House met pursuant to adjournment at 8:53 a.m., Speaker
Corbett in the chair.
Prayer was offered by Imam Farooq Abo-Elzahab, Islamic Center,
Cedar Rapids.
The Journal of Tuesday, March 26, 1996 was approved.
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Arnold of Lucas and Dinkla of Guthrie, both until their arrival,
on request of Siegrist of Pottawattamie; Baker of Polk, until
his arrival, on request of Schrader of Marion.

CONSIDERATION OF BILLS
Regular Calendar
Senate File 2122, a bill for an act relating to unclaimed
property held by the state, fraudulent practices to obtain the
property, and establishing a penalty, with report of committee
recommending passage, was taken up for consideration.
Bradley of Clinton moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (S.F. 2122)
The ayes were, 95:

Bell           	Bernau         	Blodgett       	Boddicker     
	Boggess        	Bradley        	Brand          	Branstad      
	Brauns         	Brunkhorst     	Burnett        	Carroll       
		Cataldo 	Churchill      	Cohoon         	Connors        		Coon
                 	Cormack        	Daggett        	Dinkla
		Disney         	Doderer        	Drake          	Drees         
		Eddie          	Ertl           	Fallon 	Garman         		Gipp 
         	Greig          	Greiner        	Gries          	Grubbs
	Grundberg      	Hahn           	Halvorson      	Hammitt Barry 
	Hanson         	Harper         	Harrison 	Heaton  	Holveck     
  	Houser         	Huseman        	Jacobs         	Jochum       
 	Klemme         	Koenigs
        		Kreiman        	Kremer         	Lamberti       	Larkin
        		Larson  	Lord           	Main           	Martin       
 	Mascher        	May            	Mertz          	Metcalf       
	Meyer          	Millage        	Moreland   	Mundie        
		Murphy         	Myers          	Nelson, B.      	Nelson, L.   
   	Nutt           	O'Brien        	Ollie          	Osterhaus   
  	Rants          	Renken         	Salton         	Schrader     
 	Schulte        	Shoultz        	Siegrist       	Sukup         
		Taylor	Teig           	Thomson        	Tyrrell        		Van
Fossen  	Van Maanen     	Vande Hoef     	Veenstra      
	Warnstadt      	Weidman        	Weigel         	Welter        
		Wise           	Witt           	Mr. Speaker 
 		 Corbett
The nays were, none.
Absent or not voting, 5:

Arnold	Baker          	Brammer        	Hurley         	McCoy    

The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Senate File 2013, a bill for an act requiring the licensure of
respiratory care therapists and creating a board for respiratory
care practitioners, with report of committee recommending
passage, was taken up for consideration.
Thomson of Linn moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was
read a last time.
On the question "Shall the bill pass?" (S.F. 2013)
The ayes were 80:

Bell           	Bernau         	Blodgett       	Boddicker     
	Boggess        	Bradley        	Brammer        	Brand	Brauns   
     	Burnett        	Cataldo        	Churchill      	Cohoon    
    	Connors        	Coon                  	Cormack       
		Daggett        	Dinkla 	Disney         	Doderer        		Drake
         	Drees          	Eddie          	Gipp           		Greig
         	Greiner        	Gries          	Grubbs         		Hahn 
         	Halvorson      	Hammitt Barry  	Hanson         	Harper
        	Harrison       	Heaton         	Holveck       
	Houser	Huseman        	Jacobs         	Jochum         	Koenigs 
      	Kreiman        	Kremer         	Lamberti       		Larkin  
      	Main           	Martin         	Mascher        		May     
      	McCoy  	Mertz          	Moreland       	Mundie        
	Murphy         	Myers          	Nelson, B.      	Nelson, L.    
  	Nutt           	O'Brien        	Ollie
          		Osterhaus      	Rants          	Renken        
	Salton         	Schrader       	Schulte        	Siegrist      
	Sukup          		Taylor         	Teig           	Thomson       
	Tyrrell        		Van Fossen     	Van Maanen     	Veenstra      
	Warnstadt      	Weidman        	Weigel         	Wise          
	Mr. Speaker  				 Corbett
The nays were, 16:

Branstad       	Brunkhorst     	Carroll        	Fallon        
		Garman         	Grundberg      	Klemme         	Larson        
		Lord           	Metcalf        	Meyer          	Millage       
	Shoultz        	Vande Hoef     	Welter         	Witt           	
Absent or not voting, 4:

Arnold         	Baker          	Ertl           	Hurley         	

The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Senate File 2127, a bill for an act relating to the
confidentiality of social security numbers of the owners of
unclaimed property, with report of committee recommending
passage, was taken up for consideration.
Bradley of Clinton moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (S.F. 2127)
The ayes were, 96:

Bell           	Bernau         	Blodgett       	Boddicker     
	Boggess        	Bradley        	Brammer        	Brand         
		Branstad       	Brauns         	Brunkhorst     	Burnett       
		Carroll        	Cataldo        	Churchill      	Cohoon        
		Connors        	Coon                  	Cormack        	Daggett
       		Dinkla 	Disney         	Doderer        	Drees         
		Eddie          	Fallon         	Garman         	Gipp          
		Greig          	Greiner        	Gries          	Grubbs        
	Grundberg      	Hahn           	Halvorson      	Hammitt Barry
Hanson         	Harper         	Harrison       	Heaton        
	Holveck        	Houser         	Hurley         	Huseman       
	Jacobs         	Jochum         	Klemme         	Koenigs       
		Kreiman        	Kremer         	Lamberti       	Larkin        
		Larson         	Lord           	Main           	Martin        
	Mascher        	May            	McCoy 	Mertz          		Metcalf
       	Meyer          	Millage        	Moreland 
Mundie         	Murphy         	Myers          	Nelson, B.     
	Nelson, L.       	Nutt           	O'Brien        	Ollie        
 		Osterhaus      	Rants          	Renken         	Salton       
 	Schrader       	Schulte        	Shoultz        	Siegrist      
	Sukup          	Taylor         	Teig           	Thomson       
	Tyrrell        	Van Fossen     	Van Maanen     	Vande Hoef    
	Veenstra       	Warnstadt      	Weidman        	Weigel        
		Welter         	Wise           	Witt           	Mr. Speaker 
				 Corbett
The nays were, none.
Absent or not voting, 4:

Arnold         	Baker          	Drake          	Ertl           	

The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGES
Siegrist of Pottawattamie asked and received unanimous consent
that the following bills be immediately messaged to the Senate: 
Senate Files 2013, 2122, 2127.
HOUSE FILE 2174 WITHDRAWN
Bradley of Clinton asked and received unanimous consent to
withdraw House File 2174 from further consideration by the House.
Senate File 2235, a bill for an act relating to the use of
alternative licensing for nursing facilities and providing for a
contingent effective date, with report of committee recommending
passage, was taken up for consideration.
Murphy of Dubuque asked and received unanimous consent to
withdraw amendment H-5503 filed by him on March 20, 1996.
Martin of Scott moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was
read a last time.
On the question "Shall the bill pass?" (S.F. 2235)
The ayes were, 95:

Bell           	Bernau         	Blodgett       	Boddicker     
	Boggess        	Bradley        	Brammer        	Brand		Branstad
      	Brauns         	Brunkhorst     	Burnett        		Carroll 
      	Cataldo        	Churchill      	Cohoon         		Connors 
      	Coon                  	Cormack        	Daggett 
       		Dinkla         	Disney         	Doderer        	Drake  
       		Drees          	Eddie          	Fallon         	Garman 
       		Gipp           	Greig          	Greiner        	Gries  
       	Grubbs         	Grundberg      	Hahn          
	Halvorson      	Hammitt Barry 	Hanson         	Harper        
	Harrison       	Heaton         	Holveck        	Houser        
	Hurley         		Huseman        	Jacobs         	Jochum        
	Klemme         	Koenigs        	Kreiman        	Kremer        
	Lamberti       		Larkin         	Larson         	Lord          
	Main           		Martin         	Mascher        	May           
	McCoy          		Mertz          	Metcalf        	Meyer         
	Moreland       	Mundie         	Murphy         	Myers         
	Nelson, B.      	Nelson, L.       	Nutt           	O'Brien     
  	Ollie          		Osterhaus      	Rants          	Renken      
  	Salton         	Schrader       	Shoultz        	Siegrist     
 	Sukup          		Taylor         	Teig           	Thomson      
 	Tyrrell        		Van Fossen     	Van Maanen     	Vande Hoef   
 	Veenstra       	Warnstadt      	Weidman        	Weigel        
	Welter         		Wise           	Witt           	Mr. Speaker 
 		 Corbett
The nays were, 2:

Millage        	Schulte        	
Absent or not voting, 3:

Arnold         	Baker          	Ertl           	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Cataldo of Polk in the chair at 9:27 a.m.
Senate File 2062, a bill for an act relating to statutory
corrections which may adjust language to reflect current
practices, insert earlier omissions, delete redundancies and
inaccuracies, delete temporary language, resolve inconsistencies
and conflicts, update ongoing provisions, or remove ambiguities,
and providing effective and retroactive applicability dates,
with report of committee recommending amendment and passage, was
taken up for consideration.
Nutt of Woodbury offered the following amendment H-5496 filed by
the committee on  judiciary and moved its adoption:

H-5496

 1     Amend Senate File 2062, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  Page 3, by inserting after line 14 the
 4   following:
 5     "Sec. ___.  Section 85.36, subsection 9, paragraph
 6   a, Code Supplement 1995, is amended to read as
 7   follows:
 8     a.  In computing the compensation to be allowed a
 9   volunteer fire fighter, emergency medical care
10   provider, reserve peace officer, volunteer ambulance
11   driver, volunteer emergency rescue technician as
12   defined in section 147A.1, or emergency medical
13   technician trainee, the earnings as a fire fighter,
14   emergency medical care provider, reserve peace
15   officer, volunteer ambulance driver, volunteer
16   emergency rescue technician, or emergency medical
17   technician trainee shall be disregarded and the
18   volunteer fire fighter, emergency medical care
19   provider, reserve peace officer, volunteer ambulance
20   driver, volunteer emergency rescue technician, or
21   emergency medical technician trainee shall be paid an
22   amount equal to the compensation the volunteer fire
23   fighter, emergency medical care provider, reserve
24   peace officer, volunteer ambulance driver, volunteer
25   emergency rescue technician, or emergency medical
26   technician trainee would be paid if injured in the
27   normal course of the volunteer fire fighter's,
28   emergency medical care provider's, reserve peace
29   officer's, volunteer ambulance driver's, volunteer
30   emergency rescue technician's, or emergency medical
31   technician trainee's regular employment or an amount
32   equal to one hundred and forty percent of the
33   statewide average weekly wage, whichever is greater.
34     Sec. ___.  Section 85.61, subsection 2, Code
35   Supplement 1995, is amended to read as follows:
36     2.  "Employer" includes and applies to a person,
37   firm, association, or corporation, state, county,
38   municipal corporation, school corporation, area
39   education agency, township as an employer of volunteer
40   fire fighters, volunteer emergency rescue technicians,
41   and emergency medical care providers only, benefited
42   fire district, and the legal representatives of a
43   deceased employer.  "Employer" includes and applies to
44   a rehabilitation facility approved for purchase-of-
45   service contracts or for referrals by the department
46   of human services or the department of education.
47     Sec. ___.  Section 85.61, subsection 7, unnumbered
48   paragraph 3, Code Supplement 1995, is amended to read
49   as follows:
50     Personal injuries sustained by volunteer emergency

Page 2  

 1   rescue technicians or emergency medical care providers
 2   as defined in section 147A.1 arise in the course of
 3   employment if the injuries are sustained at any time
 4   from the time the volunteer emergency rescue
 5   technicians or emergency medical care providers are
 6   summoned to duty until the time those duties have been
 7   fully discharged.
 8     Sec. ___.  Section 85.61, subsection 11, unnumbered
 9   paragraph 3, Code Supplement 1995, is amended to read
10   as follows:
11     "Worker" or "employee" includes an emergency
12   medical care provider as defined in section 147A.1, a
13   volunteer emergency rescue technician as defined in
14   section 147A.1, a volunteer ambulance driver, or an
15   emergency medical technician trainee, only if an
16   agreement is reached between such worker or employee
17   and the employer for whom the volunteer services are
18   provided that workers' compensation coverage under
19   chapters 85, 85A, and 85B is to be provided by the
20   employer.  An emergency medical care provider or
21   volunteer emergency rescue technician who is a worker
22   or employee under this paragraph is not a casual
23   employee.  "Volunteer ambulance driver" means a person
24   performing services as a volunteer ambulance driver at
25   the request of the person in charge of a fire
26   department or ambulance service of a municipality.
27   "Emergency medical technician trainee" means a person
28   enrolled in and training for emergency medical
29   technician certification."
30     2.  Page 8, by inserting after line 12 the
31   following:
32     "Sec. ___.  Section 707A.1, subsection 1, as
33   enacted by 1996 Iowa Acts, Senate File 2066, section
34   1, is amended to read as follows:
35     1.  "Licensed health care professional" means a
36   physician and surgeon, podiatrist podiatric
physician,
37   osteopath, osteopathic physician and surgeon,
38   physician assistant, nurse, dentist, or pharmacist
39   required to be licensed under chapter 147."
40     3.  Page 9, line 10, by inserting before the word
41   "Section" the following:  "1."
42     4.  Page 9, by inserting after line 12 the
43   following:
44     "2.  The sections of this Act which amend section
45   85.36, subsection 9, paragraph "a", and section 85.61,
46   subsection 2, subsection 7, unnumbered paragraph 3,
47   and subsection 11, unnumbered paragraph 3, being
48   deemed of immediate importance, take effect upon
49   enactment and apply retroactively to July 1, 1995."
50     5.  By renumbering and correcting internal

Page   3

 1   references as necessary.
The committee amendment H-5496 was adopted.
Nutt of Woodbury moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was
read a last time.
On the question "Shall the bill pass?" (S.F. 2062)
The ayes were, 95:

Bell           	Bernau         	Blodgett       	Boddicker     
	Boggess        	Bradley        	Brammer        	Brand         
		Branstad       	Brauns         	Brunkhorst     	Burnett       
		Carroll               	Churchill      	Cohoon         	Connors
       		Coon           	Corbett, Spkr. 	Cormack        	Daggett
       		Dinkla         	Disney         	Drake          	Drees  
       		Eddie 	Ertl	Fallon         	Garman         		Gipp      
    	Greig          	Greiner        	Gries          	Grubbs
	Hahn           	Halvorson 	Hammitt Barry 	Hanson        
	Harper         	Harrison       	Heaton         	Holveck       
	Houser         	Hurley         	Huseman        	Jacobs        
	Jochum         	Klemme         	Koenigs        		Kreiman       
	Kremer         	Lamberti       	Larkin         		Larson        
	Lord           	Main           	Mascher        		May           
	McCoy          	Mertz          	Metcalf        	Meyer         
	Millage        	Moreland       	Mundie         		Murphy        
	Myers          	Nelson, B.      	Nelson, L.       	Nutt        
  	O'Brien        	Ollie          	Osterhaus      	Rants        
 	Renken         	Salton         	Schrader       	Schulte       
	Shoultz        	Siegrist 	Sukup          		Taylor         	Teig
          	Thomson        	Tyrrell        		Van Fossen     	Van
Maanen     	Vande Hoef     	Veenstra       	Warnstadt     
	Weidman        	Weigel         	Welter         		Wise          
	Witt           	Cataldo, 
 		 Presiding
The nays were, 3:

Doderer        	Grundberg      	Martin 
Absent or not voting, 2:

Arnold         	Baker          	   	     	        	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Senate File 2282, a bill for an act relating to the requirement
of notifying a consumer of a change in the terms of an open-end
credit agreement, with report of committee recommending passage,
was taken up for consideration.
Van Fossen of Scott moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (S.F. 2282)
The ayes were, 95:

Bell           	Bernau         	Blodgett       	Boddicker     
	Boggess        	Bradley        	Brammer        	Branstad      
	Brauns         	Brunkhorst     	Burnett        	Carroll        
      	Churchill      	Cohoon         	Connors        	Coon     
     		Corbett, Spkr.	Cormack        	Daggett        	Dinkla    
    		Disney         	Doderer        	Drake          	Drees     
    		Ertl  	Fallon         	Garman         	Gipp          
		Greig          	Gries          	Grubbs         	Grundberg     
	Hahn           	Halvorson      	Hammitt Barry  	Hanson        
	Harper         	Harrison       	Heaton         	Holveck       
	Houser         	Hurley         	Huseman        	Jacobs        
		Jochum         	Klemme         	Koenigs        	Kreiman       
		Kremer         	Lamberti       	Larkin         	Larson        
		Lord           	Main           	Martin         	Mascher       
		May            	McCoy          	Mertz          	Metcalf       
	Meyer          	Millage        	Moreland       	Mundie        
		Murphy         	Myers          	Nelson, B.      	Nelson, L.   
   	Nutt           	O'Brien        	Ollie          	Osterhaus   
  	Rants          	Renken         	Salton         	Schrader     
 	Schulte        	Shoultz        	Siegrist       	Sukup         
		Taylor         	Teig           	Thomson        	Tyrrell       
		Van Fossen     	Van Maanen     	Vande Hoef     	Veenstra      
	Warnstadt      	Weidman        	Weigel         	Welter        
		Wise           	Witt           	Cataldo, 					  Presiding
The nays were, none.
Absent or not voting, 5:

Arnold         	Baker          	Brand          	Eddie         
	Greiner        	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.

Ways and Means Calendar
Senate File 2449, a bill for an act changing the computation of
the inflation factors for the tax brackets and standard
deduction under the individual income tax; changing the
computation of taxable income of certain subchapter S
corporations and their shareholders; increasing inheritance tax
exemptions for certain relatives; increasing the amount of the
appropriations for homestead credit, military service credit,
and low-income credit and reimbursement claims; providing income
tax credits for investing in a qualified venture capital
company; establishing
 incentives for family farm animal feeding operations and making
an appropriation; adjusting the funding for the family farm and
agricultural land tax credits; establishing a study of the
property tax system as the sole or major source of local funding
and of alternate sources of funding for school, city, and county
services, the repayment of bonds or other debt obligations, and
capital improvements; and providing effective and applicability
date provisions, with report of committee recommending passage,
was taken up for consideration.
The House stood at ease at 9:47 a.m., until the fall of the
gavel.
The House resumed session at 10:58 a.m., Speaker Corbett in the
chair.
Halvorson of Clayton offered amendment H-5523 filed by him as
follows:

H-5523

 1     Amend Senate File 2449, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  By striking everything after the enacting
 4   clause and inserting the following:
 5                         "DIVISION I
 6            INCOME TAX INDEXATION
 7     Section 1.  Section 422.4, subsection 1, paragraphs
 8   a and d, Code 1995, are amended to read as follows:
 9     a.  "Annual inflation factor" means an index,
10   expressed as a percentage, determined by the
11   department by October 15 of the calendar year
12   preceding the calendar year for which the factor is
13   determined, which reflects the purchasing power of the
14   dollar as a result of inflation during the fiscal year
15   ending in the calendar year preceding the calendar
16   year for which the factor is determined.  In
17   determining the annual inflation factor, the
18   department shall use the annual percent change, but
19   not less than zero percent, in the implicit price
20   deflator for the gross national product gross
domestic
21   product price deflator computed for the second quarter
22   of the calendar year by the bureau of economic
23   analysis of the United States department of commerce
24   and shall add one-half all of that percent change to
25   one hundred percent.  The annual inflation factor and
26   the cumulative inflation factor shall each be
27   expressed as a percentage rounded to the nearest one-
28   tenth of one percent.  The annual inflation factor
29   shall not be less than one hundred percent.
30     d.  Notwithstanding the computation of the annual
31   inflation factor under paragraph "a", the annual
32   inflation factor is one hundred percent for any
33   calendar year in which the unobligated state general
34   fund balance on June 30 as certified by the director
35   of the department of management by October 10, is less
36   than sixty million dollars.  Notwithstanding section
37   8.58, in determining the unobligated state general
38   fund balance on June 30, unobligated moneys in the
39   cash reserve fund and Iowa economic emergency fund on
40   June 30 shall be counted as part of the unobligated
41   state general fund balance for purposes of this
42   paragraph.
43     Sec. 2.  Section 422.4, subsection 2, paragraph a,
44   Code 1995, is amended to read as follows:
45     a.  "Annual standard deduction factor" means an
46   index, expressed as a percentage, determined by the
47   department by October 15 of the calendar year
48   preceding the calendar year for which the factor is
49   determined, which reflects the purchasing power of the
50   dollar as a result of inflation during the fiscal year

Page 2  

 1   ending in the calendar year preceding the calendar
 2   year for which the factor is determined.  In
 3   determining the annual standard deduction factor, the
 4   department shall use the annual percent change, but
 5   not less than zero percent, in the implicit price
 6   deflator for the gross national product gross
domestic
 7   product price deflator computed for the second quarter
 8   of the calendar year by the bureau of economic
 9   analysis of the United States department of commerce
10   and shall add one-half all of that percent change to
11   one hundred percent.  The annual standard deduction
12   factor and the cumulative standard deduction factor
13   shall each be expressed as a percentage rounded to the
14   nearest one-tenth of one percent.  The annual standard
15   deduction factor shall not be less than one hundred
16   percent.
17     Sec. 3.  This division of this Act, being deemed of
18   immediate importance, takes effect upon enactment and
19   applies to the computation of the annual inflation
20   factor and annual standard deduction factor for
21   calendar years beginning on or after January 1, 1996.
22   The department of revenue and finance shall adjust the
23   annual inflation factor and annual standard deduction
24   factor previously computed for the 1996 calendar year
25   to reflect the change made in the computation of those
26   factors in this Act.
27                         DIVISION II
28              INHERITANCE TAXATION
29     Sec. 4.  Section 450.7, subsection 1, unnumbered
30   paragraph 1, Code Supplement 1995, is amended to read
31   as follows:
32     Except for the share of the estate passing to the
33   surviving spouse, father or mother, each son and
34   daughter, including legally adopted sons and daughters
35   or biological sons and daughters, stepchildren, and
36   grandchildren, the tax is a charge against and a lien
37   upon the estate subject to tax under this chapter, and
38   all property of the estate or owned by the decedent
39   from the death of the decedent until paid, subject to
40   the following limitation:
41     Sec. 5.  Section 450.9, subsection 1, Code 1995, is
42   amended to read as follows:
43     1.  Surviving spouse, father or mother, son or
44   daughter, including legally adopted sons and daughters
45   or biological sons and daughters, stepchildren, or
46   grandchild, the entire amount of property, interest in
47   property, and income.
48     Sec. 6.  Section 450.9, subsections 2 and 3, Code
49   1995, are amended by striking the subsections.
50     Sec. 7.  Section 450.10, subsection 1, unnumbered

Page   3

 1   paragraph 1, Code 1995, is amended to read as follows:
 2     When the property, interest, or income passes to
 3   the father or mother, or to a child or a lineal
 4   descendant of the decedent, grantor, donor, or vendor,
 5   including a legally adopted child or biological child
 6   entitled to inherit under the laws of this state not
 7   included in subsection 7, the tax imposed shall be on
 8   the individual share so passing in excess of the
 9   exemptions allowed as follows:
10     Sec. 8.  Section 450.10, subsection 2, unnumbered
11   paragraph 1, Code 1995, is amended to read as follows:
12     When the property or any interest therein in
13   property, or income therefrom from property
taxable
14   under the provisions of this chapter passes to the
15   brother or sister, son-in-law, or daughter-in-law, or
16   step-children, the rate of tax imposed on the
17   individual share so passing shall be as follows:
18     Sec. 9.  Section 450.10, subsection 7, Code 1995,
19   is amended to read as follows:
20     7.  Property, interest in property, or income
21   passing to the surviving spouse, father or mother, son
22   or daughter, including legally adopted sons and
23   daughters or biological sons and daughters, stepchild,
24   or grandchild, is not taxable under this section.
25     Sec. 10.  This division of this Act applies to
26   estates of decedents dying on or after July 1, 1996.
27                        DIVISION III
28              SCHOOL PROPERTY TAX
29     Sec. 11.  Section 257.3, subsection 1, unnumbered
30   paragraph 1, Code Supplement 1995, is amended to read
31   as follows:
32     Except as provided in subsections 2 and 3, a A
33   school district shall cause to be levied each year,
34   for the school general fund, a foundation property tax
35   equal to five four dollars and forty
fifteen cents per
36   thousand dollars of assessed valuation on all taxable
37   property in the district.  The county auditor shall
38   spread the foundation levy over all taxable property
39   in the district.
40     Sec. 12.  Section 257.3, subsections 2 and 3, Code
41   Supplement 1995, are amended by striking the
42   subsections.
43     Sec. 13.  Section 257.3, subsection 4, Code
44   Supplement 1995, is amended to read as follows:
45     4.  RAILWAY CORPORATIONS.  For purposes of section
46   257.1, the "amount per pupil of foundation property
47   tax" does not include the tax levied under subsection
48   1, 2, or 3 on the property of a railway corporation,
49   or on its trustee if the corporation has been declared
50   bankrupt or is in bankruptcy proceedings.

Page   4

 1     Sec. 14.  Section 275.55, unnumbered paragraph 4,
 2   Code 1995, is amended by striking the unnumbered
 3   paragraph.
 4     Sec. 15.  Section 425A.3, subsection 1, Code 1995,
 5   is amended to read as follows:
 6     1.  The family farm tax credit fund shall be
 7   apportioned each year in the manner provided in this
 8   chapter so as to give a credit against the tax on each
 9   eligible tract of agricultural land within the several
10   school districts of the state in which the levy for
11   the general school fund exceeds five four dollars
and
12   forty fifteen cents per thousand dollars of assessed
13   value.  The amount of the credit on each eligible
14   tract of agricultural land shall be the amount the tax
15   levied for the general school fund exceeds the amount
16   of tax which would be levied on each eligible tract of
17   agricultural land were the levy for the general school
18   fund five four dollars and forty fifteen
cents per
19   thousand dollars of assessed value for the previous
20   year.  However, in the case of a deficiency in the
21   family farm tax credit fund to pay the credits in
22   full, the credit on each eligible tract of
23   agricultural land in the state shall be proportionate
24   and applied as provided in this chapter.
25     Sec. 16.  Section 425A.5, Code 1995, is amended to
26   read as follows:
27     425A.5  COMPUTATION BY COUNTY AUDITOR.
28     The family farm tax credit allowed each year shall
29   be computed as follows:  On or before March 1, the
30   county auditor shall list by school districts all
31   tracts of agricultural land which are entitled to
32   credit, the taxable value for the previous year, the
33   budget from each school district for the previous
34   year, and the tax rate determined for the general fund
35   of the school district in the manner prescribed in
36   section 444.3 for the previous year, and if the tax
37   rate is in excess of five four dollars and forty
38   fifteen cents per thousand dollars of assessed value,
39   the auditor shall multiply the tax levy which is in
40   excess of five four dollars and forty
fifteen cents
41   per thousand dollars of assessed value by the total
42   taxable value of the agricultural land entitled to
43   credit in the school district, and on or before March
44   1, certify the total amount of credit and the total
45   number of acres entitled to the credit to the
46   department of revenue and finance.
47     Sec. 17.  Section 426.3, Code 1995, is amended to
48   read as follows:
49     426.3  WHERE CREDIT GIVEN.
50     The agricultural land credit fund shall be

Page   5

 1   apportioned each year in the manner hereinafter
 2   provided in this chapter so as to give a credit
 3   against the tax on each tract of agricultural lands
 4   within the several school districts of the state in
 5   which the levy for the general school fund exceeds
 6   five four dollars and forty fifteen cents
per thousand
 7   dollars of assessed value; the amount of such credit
 8   on each tract of such lands shall be the amount the
 9   tax levied for the general school fund exceeds the
10   amount of tax which would be levied on said the
tract
11   of such lands were the levy for the general school
12   fund five four dollars and forty fifteen
cents per
13   thousand dollars of assessed value for the previous
14   year, except in the case of a deficiency in the
15   agricultural land credits fund to pay said credits in
16   full, in which case the credit on each eligible tract
17   of such lands in the state shall be proportionate and
18   shall be applied as hereinafter provided in this
19   chapter.
20     Sec. 18.  Section 426.6, unnumbered paragraph 1,
21   Code 1995, is amended to read as follows:
22     The agricultural land tax credit allowed each year
23   shall be computed as follows:  On or before the first
24   of June the county auditor shall list by school
25   districts all tracts of agricultural lands which they
26   are entitled to credit, together with the taxable
27   value for the previous year, together with the budget
28   from each school district for the previous year, and
29   the tax rate determined for the general fund of the
30   district in the manner prescribed in section 444.3 for
31   the previous year, and if such the tax rate is in
32   excess of five four dollars and forty
fifteen cents
33   per thousand dollars of assessed value, the auditor
34   shall multiply the tax levy which is in excess of five
35   four dollars and forty fifteen cents per
thousand
36   dollars of assessed value by the total taxable value
37   of the agricultural lands entitled to credit in the
38   district, and on or before the first of June certify
39   the amount to the department of revenue and finance.
40     Sec. 19.
41     1.  Sections 11 through 14 of this division of this
42   Act, being deemed of immediate importance, take effect
43   upon enactment, and apply to the computation of school
44   foundation property taxes payable during school budget
45   years beginning on or after July 1, 1996.
46     2.  Sections 15 through 18 of this division of this
47   Act take effect January 1, 1997, and apply to the
48   computation of family farm tax credits and
49   agricultural land tax credits granted for property
50   taxes payable in school budget years beginning on or

Page   6

 1   after July 1, 1997."
 2     2.  Title page, by striking lines 1 through 17 and
 3   inserting the following:  "An Act relating to taxation
 4   within the state by changing the computation of the
 5   inflation factors for the tax brackets and standard
 6   deduction of the state individual income tax,
 7   exemptions from the state inheritance tax, and
 8   reducing the school district uniform levy for purposes
 9   of providing tax relief and providing effective and
10   retroactive and other applicability date provisions."
Wise of Lee offered the following amendment H-5652, to amendment
H-5523, filed by him and moved its adoption:

H-5652

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 1, line 6, by striking the word
 5   "INDEXATION".
 6     2.  Page 2, by inserting after line 16 the
 7   following:
 8     "Sec. 100.  NEW SECTION.  422.120  LIVESTOCK
 9   PRODUCTION TAX CREDIT ALLOWED.
10     1.  a.  There is allowed a state tax credit for
11   livestock production operations located in the state.
12   The amount of the credit equals ten cents for each
13   corn equivalent consumed by the livestock in the
14   production operation as specified under this section.
15   The credit shall be refunded as provided in section
16   422.122.
17     b.  The credit shall be available to an individual
18   or corporate taxpayer who owns livestock and who
19   receives, or accrues in the case of an accrual-basis
20   taxpayer, more than one half of the taxpayer's gross
21   income from farming or ranching operations during the
22   tax year.  Gross income from farming or ranching is
23   the amount reported as gross income on schedule F, or
24   the equivalent schedule, of the taxpayer's income tax
25   return, the total gains from sales of breeding
26   livestock, and, if applicable, the taxpayer's
27   distributive share of income from farming or ranching
28   from a partnership, limited liability company,
29   subchapter S corporation, or an estate or trust.  To
30   determine whether a taxpayer receives more than one-
31   half of gross income from farming or ranching, the
32   taxpayer's amount of gross income from farming or
33   ranching shall be divided by the taxpayer's total
34   gross income as defined in section 61 of the federal
35   Internal Revenue Code.
36     2.  The amount of the credit per operation is
37   determined by adding together for each head of
38   livestock in the operation the product of ten cents
39   times the number of corn equivalents consumed by that
40   head of livestock.  The amount of livestock production
41   credit per operation per tax year shall not exceed
42   three thousand dollars and the amount of livestock
43   production credit per taxpayer per tax year shall not
44   exceed three thousand dollars.
45     The maximum amount of corn equivalents for a head
46   of livestock in a production operation is the
47   following:
48     a.  Hog operations:                        	Corn
equivalents:
49     (1)  Farrow to finish                             		13.0
50     (2)  Farrow to feeder pig                        		  2.6

Page 2  

 1      (3)  Finishing feeder pigs                      	 10.4
 2     b.  Poultry operations:
 3      (1)  Layers                                             
					  0.88
 4      (2)  Turkeys                                           
					  1.5
 5      (3)  Broilers                                           
					  0.15
 6     c.  Beef operations:
 7      (1)  Cow-calf                                        
				              111.5
 8      (2)  Stocker                                           
					41.5
 9      (3)  Feedlot                                           
					75.0
10     (4)  Dairy                                           
				              350.0
11     d.  Sheep operations:
12     (1)  Ewe flock                                       
				20.5
13     (2)  Feedlot                                             
					  4.1
14     3.  If the livestock operation is carried on partly
15   within and partly without the state, the portion of
16   the operation attributable to this state shall be
17   determined pursuant to rules adopted by the
18   department.  The department may adjust the allocation
19   upon request of the taxpayer in order to reflect the
20   actual livestock operation carried on within this
21   state.
22     4.  An individual may claim the livestock
23   production tax credit allowed a partnership, limited
24   liability company, subchapter S corporation, or estate
25   or trust electing to have the income taxed directly to
26   the individual.  The amount claimed by the individual
27   shall be based upon the pro rata share of the
28   individual's earning of the partnership, limited
29   liability company, subchapter S corporation, or estate
30   or trust.
31     5.  A fraudulent claim for a credit refund under
32   this division shall cause the forfeiture of any right
33   or interest to a tax credit refund in subsequent tax
34   years under this division.
35     Sec. 101.  NEW SECTION.  422.121  APPROPRIATION.
36     There is appropriated annually from the general
37   fund of the state ten million dollars to refund the
38   credits allowed under this division.
39     Sec. 102.  NEW SECTION.  422.122  REFUND OF
40   LIVESTOCK PRODUCTION CREDIT CLAIMS.
41     1.  For the tax year the total amount of livestock
42   production credit refund claims that shall be paid
43   shall not exceed ten million dollars.  If the total
44   dollar amount of the refund claims exceeds that
45   amount, each claim shall be paid an amount equal to
46   ten million dollars divided by the total number of
47   claims, not to exceed the amount of the taxpayer's
48   claim.  Remaining funds shall be prorated among those
49   claims not paid in full in the proportion that each
50   such claim bears to the total amount of such claims

Page   3

 1   not paid in full.
 2     2.  In the case where refund claims are not paid in
 3   full, the amount of the refund to which the taxpayer
 4   is entitled is the amount computed in subsection 1,
 5   and paid to the taxpayer, and the taxpayer is not
 6   entitled to any unpaid portion of a claim and is not
 7   entitled to carry forward or backward to another tax
 8   year any unpaid portion of a claim.  A taxpayer shall
 9   not use a refund as an estimated payment for the
10   succeeding tax year.
11     3.  A taxpayer must file a claim for refund within
12   ten months from the close of the taxpayer's tax year.
13   An extension for filing shall not be allowed.  The
14   department shall determine by February 28 of the
15   calendar year following the calendar year in which the
16   claims were filed if the total amount of claims for
17   refund exceeds ten million dollars for the tax year.
18   If the claim is not payable on February 28 because the
19   taxpayer is a fiscal year filer, the claim shall be
20   considered as a claim filed for the following tax
21   year.
22     4.  A claim for refund shall be made on claim forms
23   to be made available by the department.  In order for
24   a taxpayer to have a valid refund claim, the taxpayer
25   must supply legible copies of documents the director
26   deems necessary to verify the amount of the refund."
27     3.  Page 2, by inserting after line 26 the
28   following:
29     "Sec. ___.  APPLICABILITY.  Sections 100 through
30   102 of this division of this Act apply to tax years
31   beginning on or after January 1, 1997."
32     4.  Page 6, line 9, by inserting after the word
33   "relief" the following:  ", providing a livestock
34   production income tax credit,".
35     5.  By renumbering as necessary.
Roll call was requested by Bernau of Story and Mascher of
Johnson.
Rule 75 was invoked.
On the question "Shall amendment H-5652, to amendment H-5523, be
adopted?"  (S.F. 2449)
The ayes were, 38:

Baker          	Bell           	Bernau         	Brammer       
	Brand          	Burnett        	Cataldo        	Cohoon        
		Connors        	Doderer        	Drees          	Fallon        
	Harper         	Jochum         	Koenigs        	Kreiman       
		Larkin         	Main           	Mascher        	May           
		Mertz          	Moreland       	Mundie         	Murphy        
		Myers          	Nelson, L.       	O'Brien        	Ollie       
  		Osterhaus      	Salton         	Schrader       	Shoultz     
  		Taylor         	Teig           	Warnstadt      	Weigel      
  		Wise           	Witt           	
The nays were, 59:

Blodgett       	Boddicker      	Boggess        	Bradley       
		Branstad       	Brauns         	Brunkhorst     	Carroll       
	Churchill      	Coon                  	Cormack        	Daggett 
      		Dinkla         	Disney         	Drake          	Eddie   
      		Garman         	Gipp           	Greig          	Greiner 
      		Gries          	Grundberg      	Hahn          
	Halvorson      	Hammitt Barry  	Hanson         	Harrison      
	Heaton         	Holveck        	Houser         	Hurley        
	Huseman
        	Jacobs         	Klemme         	Kremer        
	Lamberti       		Larson         	Lord           	Martin        
	McCoy          		Metcalf        	Meyer          	Millage       
	Nelson, B.      	Nutt           	Rants          	Renken        
	Schulte        		Siegrist       	Sukup          	Thomson       
	Tyrrell        		Van Fossen     	Van Maanen     	Vande Hoef    
	Veenstra       	Weidman        	Welter         	Mr. Speaker 
 		 Corbett
Absent or not voting, 3:

Arnold         	Ertl           	Grubbs         	
Amendment H-5652 lost.
Fallon of Polk offered the following amendment H-5630, to
amendment H-5523 filed by him and moved its adoption:

H-5630

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 1, by striking line 6 and inserting the
 5   following:  "INCOME TAXATION".
 6     2.  Page 2, by inserting after line 16 the
 7   following:
 8     "Sec. ___.  Section 422.7, Code Supplement 1995, is
 9   amended by adding the following new subsection:
10     NEW SUBSECTION.  35.  Subtract the portion of the
11   special assessment installment paid during the tax
12   year which constitutes interest, as determined by the
13   director."
14     3.  Page 2, line 21, by inserting after the figure
15   "1996." the following:  "This division of this Act
16   applies retroactively to January 1, 1996, to tax years
17   beginning on or after that date."
18     4.  Page 6, line 6, by striking the word "of" and
19   inserting the following:  "and allowing an interest
20   deduction for special assessments for".
Amendment H-5630 lost.
Speaker pro tempore Van Maanen of Marion in the chair at 11:33
a.m.
Brammer of Linn offered the following amendment H-5655, to
amendment H-5523, filed by him from the floor and moved its
adoption:
H-5655

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 2, by inserting after line 26 the
 5   following:
 6                                  "DIVISION    
 7                   INCOME AND TOBACCO TAXES
 8     Sec. 55.  Section 142B.6, Code 1995, is amended to
 9   read as follows:
10     142B.6  CIVIL PENALTY FOR VIOLATION _ UNIFORM
11   APPLICATION ENFORCEMENT.
12     A person who smokes in those areas prohibited in
13   section 142B.2, or who violates section 142B.4, shall
14   pay a civil fine pursuant to section 805.8, subsection
15   11, for each violation.
16     Judicial magistrates shall hear and determine
17   violations of this chapter.  The civil penalties paid
18   pursuant to this chapter shall be deposited in the
19   county treasury.
20     Enforcement of this chapter shall be implemented in
21   an equitable manner throughout the state.  For the
22   purpose of equitable and uniform implementation,
23   application, and enforcement of state and local laws
24   and regulations, the provisions of this chapter shall
25   supersede any local law or regulation which is
26   inconsistent with or conflicts with the provisions of
27   this chapter.  The Iowa department of public health
28   shall adopt rules to enforce this chapter.
29     Sec. 56.  NEW SECTION.  142C.1  LEGISLATIVE
30   FINDINGS _ CIGARETTE AND TOBACCO PRODUCTS.
31     Following an analysis of data regarding cigarettes
32   and tobacco products and the addictive nature of the
33   nicotine contained in these products which was
34   provided by the Iowa department of public health, the
35   United States environmental protection agency, the
36   United States public health service, the world health
37   organization, the American cancer society, the
38   American heart association, the American lung
39   association, the American medical association, the
40   American dental association, the American public
41   health association, the national cancer institute, and
42   the international agency for research on cancer, the
43   general assembly finds and declares all of the
44   following:
45     1.  That cigarettes and tobacco products, with
46   their inherent and supplemented quantities of
47   nicotine, are highly addictive and that use of these
48   products threatens the health and lives of Iowans.
49     2.  That environmental tobacco smoke is a group A
50   carcinogen known to cause lung cancer in nonsmokers as
Page 2  

 1   well as in smokers.
 2     3.  That tobacco and resultant environmental
 3   tobacco smoke are the highest causative agents in
 4   increased mortality and morbidity in the state.
 5     4.  That the federal Americans with Disabilities
 6   Act specifies that persons sensitive to tobacco smoke,
 7   including persons with asthma, are "handicapped
 8   persons" and that businesses are required to make
 9   reasonable accommodations to allow handicapped persons
10   access to offices and workplaces.
11     5.  That a principal manufacturer of tobacco
12   products has admitted to these findings, has agreed to
13   a financial settlement based upon the damage caused by
14   the effects of these products, and has agreed to limit
15   advertising in accordance with the limitations
16   established by the United States environmental
17   protection agency.
18     6.  That based upon all of the above, the general
19   assembly declares the use of cigarettes and tobacco
20   products to be an immediate health emergency of
21   epidemic proportions and a menace as an entry-level
22   drug in the youth population of the state and will
23   enact legislation to address this public health
24   problem.
25     Sec. 57.  NEW SECTION.  249A.30  RECOVERY OF
26   MEDICAL ASSISTANCE EXPENDITURE _ CIGARETTE AND
27   TOBACCO PRODUCTS _ RELATED MEDICAL EXPENSES BY
28   RESIDENT RECIPIENTS.
29     1.  Notwithstanding chapter 668, the attorney
30   general shall institute a civil action on behalf of
31   the state against any manufacturer of cigarettes or
32   other tobacco products to recover the full amount of
33   medical assistance provided by the state to a resident
34   of the state for the payment of medical services which
35   are reasonably attributable to the use of cigarettes
36   or tobacco products and all reasonable expenses
37   associated with instituting the action.
38     2.  In determining liability in an action under
39   this section, all of the following shall apply:
40     a.  Any manufacturer of cigarettes or other tobacco
41   products shall be strictly liable for the medical
42   expenses reasonably attributable to the use of the
43   manufacturer's product, without regard to any
44   negligence, intent, warnings, or other conduct or
45   knowledge on the part of the manufacturer.
46     b.  The state may recover medical expenses, without
47   regard to the defenses of assumption of the risk,
48   contributory or comparative negligence, or other
49   defenses which might be asserted.
50     c.  Any action instituted by the attorney general
Page   3

 1   is independent of any rights or causes of action of
 2   any individual.
 3     3.  In determining the extent of the liability of
 4   any manufacturer under this section, the court shall
 5   apply the following evidentiary presumptions:
 6     a.  The ratio of the expenses attributable to the
 7   use of cigarettes or tobacco products produced by any
 8   manufacturer to the expenses of all manufacturers is
 9   presumed to be equivalent to the ratio of the sales by
10   the manufacturer within the state during the most
11   recent year for which data are available to the sales
12   of all manufacturers for that year.
13     b.  The medical expenses for individuals
14   attributable to the use of cigarettes or tobacco
15   products shall be based on reliable estimates for the
16   class of persons affected, rather than proof of the
17   cause of expenses in the case of any particular
18   individual.
19     c.  Estimates of medical expenses shall be based on
20   epidemiological, scientific, survey, and other data,
21   determined by the director of public health to be
22   reliable and reasonably available.  The Iowa
23   department of public health shall adopt rules to
24   specify the methodology for making the estimates in
25   any action under this section.
26     d.  A defendant shall have the opportunity to rebut
27   any presumption by clear and convincing evidence,
28   provided that the court shall take reasonable steps to
29   ensure that determination of damages is concluded in a
30   timely and expeditious manner and that no party to the
31   action is permitted to unduly delay the conclusion of
32   the action.
33     4.  For the purposes of this section, "cigarette"
34   and "tobacco products" mean cigarette and tobacco
35   products as defined in section 453A.1.
36     Sec. 58.  Section 422.9, subsection 1, Code
37   Supplement 1995, is amended to read as follows:
38     1.  An optional standard deduction, after deduction
39   of federal income tax, equal to one two thousand
two
40   four hundred thirty sixty dollars for a married
person
41   who files separately or a single person or equal to
42   three six thousand thirty sixty dollars for
a husband
43   and wife who file a joint return, a surviving spouse,
44   or an unmarried head of household.  The optional
45   standard deduction shall not exceed the amount
46   remaining after deduction of the federal income tax.
47     Sec. 59.  Section 422B.1, subsections 3, 4, 5, 6,
48   8, and 9, Code Supplement 1995, are amended to read as
49   follows:
50     3.  A local option tax shall be imposed only after
Page   4

 1   an election at which a majority of those voting on the
 2   question favors imposition and shall then be imposed
 3   until repealed as provided in subsection 6, paragraph
 4   "a".  If the tax is a local vehicle tax imposed by a
 5   county, it shall apply to all incorporated and
 6   unincorporated areas of the county.  If the tax is a
 7   local sales and services tax or a local cigarette and
 8   tobacco tax imposed by a county, it shall only apply
 9   to those incorporated areas and the unincorporated
10   area of that county in which a majority of those
11   voting in the area on the tax favors its imposition.
12   For purposes of the local sales and services tax or a
13   local cigarette and tobacco tax, all cities contiguous
14   to each other shall be treated as part of one
15   incorporated area and the tax would be imposed in each
16   of those contiguous cities only if the majority of
17   those voting in the total area covered by the
18   contiguous cities favors its imposition.  For purposes
19   of the local sales and services tax or a local
20   cigarette and tobacco tax, a city is not contiguous to
21   another city if the only road access between the two
22   cities is through another state.
23     4.  a.  A county board of supervisors shall direct
24   within thirty days the county commissioner of
25   elections to submit the question of imposition of a
26   local vehicle tax, or a local sales and services
tax,
27   or a local cigarette and tobacco tax to the registered
28   voters of the incorporated and unincorporated areas of
29   the county upon receipt of a petition, requesting
30   imposition of a local vehicle tax, or a local sales
31   and services tax, or a local cigarette and tobacco
32   tax, signed by eligible electors of the whole county
33   equal in number to five percent of the persons in the
34   whole county who voted at the last preceding state
35   general election.  In the case of a local vehicle tax,
36   the petition requesting imposition shall specify the
37   rate of tax and the classes, if any, that are to be
38   exempt.  If more than one valid petition is received,
39   the earliest received petition shall be used.
40     b.  The question of the imposition of a local sales
41   and services tax or a local cigarette and tobacco tax
42   shall be submitted to the registered voters of the
43   incorporated and unincorporated areas of the county
44   upon receipt by the county commissioner of elections
45   of the motion or motions, requesting such submission,
46   adopted by the governing body or bodies of the city or
47   cities located within the county or of the county, for
48   the unincorporated areas of the county, representing
49   at least one half of the population of the county.
50   Upon adoption of such motion, the governing body of
Page   5

 1   the city or county, for the unincorporated areas,
 2   shall submit the motion to the county commissioner of
 3   elections and in the case of the governing body of the
 4   city shall notify the board of supervisors of the
 5   adoption of the motion.  The county commissioner of
 6   elections shall keep a file on all the motions
 7   received and, upon reaching the population
 8   requirements, shall publish notice of the ballot
 9   proposition concerning the imposition of the local
10   sales and services tax or a local cigarette and
11   tobacco tax.  A motion ceases to be valid at the time
12   of the holding of the regular election for the
13   election of members of the governing body which
14   adopted the motion.  The county commissioner of
15   elections shall eliminate from the file any motion
16   that ceases to be valid.  The manner provided under
17   this paragraph for the submission of the question of
18   imposition of a local sales and services tax or a
19   local cigarette and tobacco tax is an alternative to
20   the manner provided in paragraph "a".
21     5.  The county commissioner of elections shall
22   submit the question of imposition of a local option
23   tax at a state general election or at a special
24   election held at any time other than the time of a
25   city regular election.  The election shall not be held
26   sooner than sixty days after publication of notice of
27   the ballot proposition.  The ballot proposition shall
28   specify the type and rate of tax and in the case of a
29   vehicle tax the classes that will be exempt and in the
30   case of a local sales and services tax or a local
31   cigarette and tobacco tax the date it will be imposed.
32   The ballot proposition shall also specify the
33   approximate amount of local option tax revenues that
34   will be used for property tax relief and shall contain
35   a statement as to the specific purpose or purposes for
36   which the revenues shall otherwise be expended.  If
37   the county board of supervisors decides under
38   subsection 6 to specify a date on which the local
39   option sales and services tax or a local cigarette and
40   tobacco tax shall automatically be repealed, the date
41   of the repeal shall also be specified on the ballot.
42   The rate of the vehicle tax shall be in increments of
43   one dollar per vehicle as set by the petition seeking
44   to impose the tax.  The rate of a local sales and
45   services tax shall not be more than one percent as set
46   by the governing body.  The rate of the cigarette and
47   tobacco tax shall not be more than ten percent as set
48   by the governing body.  The state commissioner of
49   elections shall establish by rule the form for the
50   ballot proposition which form shall be uniform
Page   6

 1   throughout the state.
 2     6.  a.  If a majority of those voting on the
 3   question of imposition of a local option tax favor
 4   imposition of a local option tax, the governing body
 5   of that county shall impose the tax at the rate
 6   specified for an unlimited period.  However, in the
 7   case of a local sales and services tax or a local
 8   cigarette and tobacco tax, the county shall not impose
 9   the tax in any incorporated area or the unincorporated
10   area if the majority of those voting on the tax in
11   that area did not favor its imposition.  For purposes
12   of the local sales and services tax or a local
13   cigarette and tobacco tax, all cities contiguous to
14   each other shall be treated as part of one
15   incorporated area and the tax shall be imposed in each
16   of those contiguous cities only if the majority of
17   those voting on the tax in the total area covered by
18   the contiguous cities favored its imposition.  The
19   local option tax may be repealed or the rate increased
20   or decreased or the use thereof changed after an
21   election at which a majority of those voting on the
22   question of repeal or rate or use change favored the
23   repeal or rate or use change.  The election at which
24   the question of repeal or rate or use change is
25   offered shall be called and held in the same manner
26   and under the same conditions as provided in
27   subsections 4 and 5 for the election on the imposition
28   of the local option tax.  However, in the case of a
29   local sales and services tax or a local cigarette and
30   tobacco tax where the tax has not been imposed
31   countywide, the question of repeal or imposition or
32   rate or use change shall be voted on only by the
33   registered voters of the areas of the county where the
34   tax has been imposed or has not been imposed, as
35   appropriate.  However, the governing body of the
36   incorporated area or unincorporated area where the
37   local sales and services tax or a local cigarette and
38   tobacco tax is imposed may, upon its own motion,
39   request the county commissioner of elections to hold
40   an election in the incorporated or unincorporated
41   area, as appropriate, on the question of the change in
42   use of local sales and services tax revenues.  The
43   election may be held at any time but not sooner than
44   sixty days following publication of the ballot
45   proposition.  If a majority of those voting in the
46   incorporated or unincorporated area on the change in
47   use favor the change, the governing body of that area
48   shall change the use to which the revenues shall be
49   used.  The ballot proposition shall list the present
50   use of the revenues, the proposed use, and the date
Page   7

 1   after which revenues received will be used for the new
 2   use.
 3     When submitting the question of the imposition of a
 4   local sales and services tax or a local cigarette and
 5   tobacco tax, the county board of supervisors may
 6   direct that the question contain a provision for the
 7   repeal, without election, of the local sales and
 8   services tax or a local cigarette and tobacco tax on a
 9   specific date, which date shall be the end of a
10   calendar quarter.
11     b.  Within ten days of the election at which a
12   majority of those voting on the question favors the
13   imposition, repeal, or change in the rate of a local
14   option tax, the governing body shall give written
15   notice to the director of revenue and finance or, in
16   the case of a local vehicle tax, to the director of
17   the department of transportation, of the result of the
18   election.
19     8.  Local option taxes authorized to be imposed as
20   provided in this chapter are a local sales and
21   services tax, a local cigarette and tobacco tax, and a
22   local vehicle tax.  The rate of the tax shall be in
23   increments of one dollar per vehicle for a vehicle tax
24   as set on the petition seeking to impose the vehicle
25   tax.  The rate of a local sales and services tax shall
26   not be more than one percent as set by the governing
27   body.  The rate of the local cigarette and tobacco tax
28   shall not be more than ten percent as set by the
29   governing body.
30     9.  In a county that has imposed a local option
31   sales and services tax or a local option cigarette and
32   tobacco tax, the board of supervisors shall,
33   notwithstanding any contrary provision of this
34   chapter, repeal the local option sales and services
35   tax in the unincorporated areas or in an incorporated
36   city area in which the tax has been imposed upon
37   adoption of its own motion for repeal in the
38   unincorporated areas or upon receipt of a motion
39   adopted by the governing body of that incorporated
40   city area requesting repeal.  The board of supervisors
41   shall repeal the local option sales and services tax
42   effective at the end of the calendar quarter during
43   which it adopted the repeal motion or the motion for
44   the repeal was received.  For purposes of this
45   subsection, incorporated city area includes an
46   incorporated city which is contiguous to another
47   incorporated city.
48     Sec. 60.  NEW SECTION.  422B.5  LOCAL CIGARETTE AND
49   TOBACCO TAX.
50     A local cigarette and tobacco tax at the rate of
Page   8

 1   not more than ten percent may be imposed by a county
 2   on the gross receipts from sales of cigarettes and
 3   tobacco products sold at retail by a retailer as
 4   defined under chapter 422, division IV.  A local
 5   cigarette and tobacco tax shall be imposed only if the
 6   retailer is required under section 422.53 to have a
 7   state tax permit to collect the state sales and
 8   services tax.  A local cigarette and tobacco tax is
 9   applicable to transactions within those incorporated
10   and unincorporated areas of the county where it is
11   imposed and shall be collected by all persons required
12   to collect state gross receipts taxes.  All cities
13   contiguous to each other shall be treated as part of
14   one incorporated area and the tax would be imposed in
15   each of those contiguous cities only if the majority
16   of those voting in the total area covered by the
17   contiguous cities favor its imposition.
18     The amount of the sale, for purposes of determining
19   the amount of the local cigarette and tobacco tax,
20   does not include the amount of any state gross
21   receipts taxes but does include the amount of any tax
22   imposed under chapter 453A.
23     A tax permit other than the state tax permit
24   required under section 422.53 shall not be required by
25   local authorities.
26     Sec. 61.  NEW SECTION.  422B.6  ADMINISTRATION.
27     A local cigarette and tobacco tax shall be imposed
28   either January 1, April 1, July 1 or October 1
29   following the notification of the director of revenue
30   and finance.
31     A local cigarette and tobacco tax shall be repealed
32   only on March 31, June 30, September 30, or December
33   31.  However, a local cigarette and tobacco tax shall
34   not be repealed before the tax has been in effect for
35   one year.  At least forty days before the imposition
36   or repeal of the tax, a county shall provide notice of
37   the action by certified mail to the director of
38   revenue and finance.
39     The director of revenue and finance shall
40   administer a local cigarette and tobacco tax as nearly
41   as possible in conjunction with the administration of
42   state gross receipts tax laws.  The director shall
43   provide appropriate forms or provide on the regular
44   state tax forms for reporting local cigarette and
45   tobacco tax liability.
46     The ordinance of a county board of supervisors
47   imposing a local cigarette and tobacco tax shall adopt
48   by reference the applicable provisions of the
49   appropriate sections of chapter 422, division IV.  All
50   powers and requirements of the director to administer
Page   9

 1   the state gross receipts tax law are applicable to the
 2   administration of a local cigarette and tobacco tax
 3   law, including but not limited to, the provisions of
 4   sections 422.25, subsection 4, 422.30, 422.48 to
 5   422.52, 422.54 to 422.58, 422.67, 422.68, 422.69,
 6   subsection 1, and 422.70 to 422.75.  Local officials
 7   shall confer with the director of revenue and finance
 8   for assistance in drafting the ordinance imposing a
 9   local cigarette and tobacco tax.  A certified copy of
10   the ordinance shall be filed with the director as soon
11   as possible after passage.
12     The director, in consultation with local officials,
13   shall collect and account for a local cigarette and
14   tobacco tax.  The director shall certify each quarter
15   the amount of local cigarette and tobacco tax receipts
16   and any interest and penalties to be credited to the
17   "local cigarette and tobacco tax fund" established in
18   the office of the treasurer of state.
19     All local tax moneys and interest and penalties
20   received or refunded one hundred eighty days or more
21   after the date on which the county repeals its local
22   cigarette and tobacco tax shall be deposited in or
23   withdrawn from the state general fund.
24     Sec. 62.  NEW SECTION.  422B.7  PAYMENT TO LOCAL
25   GOVERNMENTS.
26     1.  The director shall credit the local cigarette
27   and tobacco tax receipts and interest and penalties
28   from the tax imposed in the unincorporated area of a
29   county to the county's account in the local cigarette
30   and tobacco tax fund and from the tax imposed in the
31   unincorporated area of a city to the city's account in
32   the local cigarette and tobacco tax fund.  If the
33   director is unable to determine from which county any
34   of the receipts were collected, those receipts shall
35   be allocated among the possible counties based on
36   allocation rules adopted by the director.
37     2.  a.  The director of revenue and finance within
38   fifteen days of the beginning of each fiscal year
39   shall send to each city or county where the local
40   option tax is imposed, an estimate of the amount of
41   tax moneys each city or county will receive for the
42   year and for each quarter of the year.  At the end of
43   each quarter, the director may revise the estimates
44   for the year and remaining quarters.
45     b.  The director of revenue and finance shall remit
46   ninety percent of the estimate tax receipts for the
47   city or county to the city or county after the end of
48   each quarter no later than the following dates:
49   November 10, February 10, May 10, and August 10.
50     c.  The director of revenue and finance shall remit
Page  10

 1   a final payment of the remainder of tax moneys due the
 2   city or county for the fiscal year before the due date
 3   for the payment of the first quarter of the next
 4   fiscal year.  If an overpayment has resulted during
 5   the previous fiscal year, the first payment of the new
 6   fiscal year shall be adjusted to reflect any
 7   overpayment.
 8     3.  Local cigarette and tobacco tax moneys received
 9   by a city or county shall be expended by the city or
10   county for the purpose of educating minors on the
11   addictiveness and harmful effects of cigarettes and
12   tobacco products and enforcing federal, state, and
13   local cigarette and tobacco laws.
14     Sec. 63.  Section 422B.8, unnumbered paragraph 1,
15   Code Supplement 1995, is amended to read as follows:
16     A local sales and services tax at the rate of not
17   more than one percent may be imposed by a county on
18   the gross receipts taxed by the state under chapter
19   422, division IV.  A local sales and services tax
20   shall be imposed on the same basis as the state sales
21   and services tax and may not be imposed on the sale of
22   any property or on any service not taxed by the state,
23   except the tax shall not be imposed on the gross
24   receipts from the sale of motor fuel or special fuel
25   as defined in chapter 452A, on the gross receipts from
26   the sale of cigarettes and tobacco products as defined
27   in chapter 453A during the period of local cigarette
28   and tobacco tax is imposed, on the gross receipts from
29   the rental of rooms, apartments, or sleeping quarters
30   which are taxed under chapter 422A during the period
31   the hotel and motel tax is imposed, on the gross
32   receipts from the sale of natural gas or electric
33   energy in a city or county where the gross receipts
34   are subject to a franchise fee or user fee during the
35   period the franchise or user fee is imposed, on the
36   gross receipts from the sale of equipment by the state
37   department of transportation, and on the gross
38   receipts from the sale of a lottery ticket or share in
39   a lottery game conducted pursuant to chapter 99E.  A
40   local sales and services tax is applicable to
41   transactions within those incorporated and
42   unincorporated areas of the county where it is imposed
43   and shall be collected by all persons required to
44   collect state gross receipts taxes.  All cities
45   contiguous to each other shall be treated as part of
46   one incorporated area and the tax would be imposed in
47   each of those contiguous cities only if the majority
48   of those voting in the total area covered by the
49   contiguous cities favor its imposition.
50     Sec. 64.  Section 453A.1, subsections 3 and 4, Code
Page  11

 1   1995, are amended by striking the subsections.
 2     Sec. 65.  Section 453A.2, Code 1995, is amended by
 3   adding the following new subsection:
 4     NEW SUBSECTION.  5.  A violation of subsection 1 is
 5   a violation of section 714.16, subsection 2, paragraph
 6   "a".
 7     Sec. 66.  Section 453A.3, unnumbered paragraph 1,
 8   Code 1995, is amended to read as follows:
 9     A person who violates section 453A.2, subsection 1,
10   or section 453A.39 is guilty of a simple misdemeanor.
11     Sec. 67.  Section 453A.6, subsection 1, Code 1995,
12   is amended to read as follows:
13     1.  There is imposed, and shall be collected and
14   paid to the department, the following taxes on all
15   cigarettes used or otherwise disposed of in this state
16   for any purpose whatsoever:
17     Class A.  On cigarettes weighing not more than
18   three pounds per thousand, eighteen mills a tax at
the
19   rate of three and six-tenths cents on each such
20   cigarette.
21     Class B.  On cigarettes weighing more than three
22   pounds per thousand, eighteen mills on each such
23   cigarette.
24     Sec. 68.  Section 453A.13, subsections 1 and 2,
25   Code 1995, are amended to read as follows:
26     1.  PERMITS REQUIRED.  Every distributor,
27   wholesaler, cigarette vendor, and retailer, now
28   engaged or who desires to become engaged in the sale
29   or use of cigarettes, upon which a tax is required to
30   be paid, shall obtain a state or retail cigarette
31   permit as a distributor, wholesaler, cigarette vendor,
32   or retailer, as the case may be.
33     2.  ISSUANCE OR DENIAL.
34     a.  The department shall issue state permits to
35   distributors, and wholesalers, and cigarette
vendors
36   subject to the conditions provided in this division.
37   Cities may issue retail permits to dealers within
38   their respective limits.  County boards of supervisors
39   may issue retail permits to dealers in their
40   respective counties, outside of the corporate limits
41   of cities.
42     b.  The department may deny the issuance of a
43   permit to a distributor, wholesaler, vendor or
44   retailer who is substantially delinquent in the
45   payment of a tax due, or the interest or penalty on
46   the tax, administered by the department at the time of
47   application.  If the applicant is a partnership, a
48   permit may be denied if a partner is substantially
49   delinquent on any delinquent tax, penalty or interest.
50   If the applicant is a corporation, a permit may be
Page  12

 1   denied if any officer having a substantial legal or
 2   equitable interest in the ownership of the corporation
 3   owes any delinquent tax, interest or penalty of the
 4   applicant corporation.
 5     Sec. 69.  Section 453A.13, subsection 3, unnumbered
 6   paragraph 1, Code 1995, is amended to read as follows:
 7     All permits provided for in this division shall
 8   expire on June 30 of each year.  A permit shall not be
 9   granted or issued until the applicant has paid for the
10   period ending June 30 next, to the department or the
11   city or county granting the permit, the fees provided
12   for in this division.  The annual state permit fee for
13   a distributor, cigarette vendor, and wholesaler is one
14   hundred dollars when the permit is granted during the
15   months of July, August, or September.  However,
16   whenever a state permit holder operates more than one
17   place of business, a duplicate state permit shall be
18   issued for each additional place of business on
19   payment of five dollars for each duplicate state
20   permit, but refunds as provided in this division do
21   not apply to any duplicate permit issued.
22     Sec. 70.  Section 453A.13, subsection 6, Code 1995,
23   is amended to read as follows:
24     6.  NO SALES WITHOUT PERMIT.  No distributor,
25   wholesaler, cigarette vendor, or retailer shall sell
26   any cigarettes until such application has been filed
27   and the fee prescribed paid for a permit and until
28   such permit is obtained and only while such permit is
29   unrevoked and unexpired.
30     Sec. 71.  Section 453A.22, subsection 2, unnumbered
31   paragraph 1, Code 1995, is amended to read as follows:
32     If a retailer or employee of a retailer has
33   violated section 453A.2, or 453A.36, subsection 6,
or
34   453A.39, the department or local authority, in
35   addition to the other penalties fixed for such
36   violations in this section, shall assess a penalty
37   upon the same hearing and notice as prescribed in
38   subsection 1 as follows:
39     Sec. 72.  Section 453A.22, subsection 2, unnumbered
40   paragraph 1, Code 1995, is amended to read as follows:
41     If a retailer or employee of a retailer has
42   violated section 453A.2, or 453A.36, subsection 6,
or
43   453A.39 8, or 9, the department or local authority,
in
44   addition to the other penalties fixed for such
45   violations in this section, shall assess a penalty
46   upon the same hearing and notice as prescribed in
47   subsection 1 as follows:
48     Sec. 73.  Section 453A.36, subsection 6, Code 1995,
49   is amended by striking the subsection and inserting in
50   lieu thereof the following:
Page  13

 1     6.  a.  A person shall not sell cigarettes or
 2   tobacco products through a vending machine or through
 3   self-service displays in this state.
 4     b.  A manufacturer, distributor, wholesaler,
 5   retailer, distributing agent or agent thereof shall
 6   not give away cigarettes or tobacco products at any
 7   time in connection with the manufacturer's,
 8   distributor's, wholesaler's, retailers', distributing
 9   agent's or agent's thereof promotion of the business
10   or product.
11     c.  It is unlawful for any manufacturer,
12   distributor, wholesaler, retailer, distributing agent
13   or agent thereof to advertise on any advertising
14   device cigarettes or other tobacco products within one
15   thousand feet of any playground, elementary school,
16   middle school, high school, or other facility when
17   such facility is being used primarily by persons under
18   age eighteen for recreational, educational, or other
19   purposes.
20     d.  A manufacturer, distributor, wholesaler,
21   retailer, distributing agent or agent thereof shall
22   not advertise cigarettes or tobacco products on
23   advertising devices in this state, no matter where
24   located, including but not limited to advertising
25   devices located on public transportation or at the
26   point-of-sale, shall be in black and white text only.
27     e.  A manufacturer, distributor, wholesaler,
28   retailer, distributing agent or agent thereof shall
29   not sell or distribute in this state promotional items
30   and prizes, including but not limited to caps, T-
31   shirts, and bags, which bear the logo or name of a
32   cigarette or tobacco product, and shall not utilize
33   proof-of-purchase exchanges for cigarettes or other
34   tobacco products in this state.
35     f.  Any cigarettes or tobacco products or related
36   items sold or distributed in this state are subject to
37   all of the following, as applicable:
38     (1)  All sales of cigarettes and tobacco products
39   shall be made in face-to-face sales, and age
40   verification shall be required for each sale.
41     (2)  All cigarettes and tobacco products shall be
42   located behind a counter or in another location which
43   is under the exclusive control of the seller and which
44   is not directly accessible to the general public.
45     g.  In addition to any other penalty which applies
46   to a violation of this subsection, any person, as
47   specified in this subsection, who violates this
48   subsection, is guilty of a serious misdemeanor.
49     Sec. 74.  Section 453A.42, subsection 8, Code 1995,
50   is amended to read as follows:
Page  14

 1     8.  "Place of business" means any place where
 2   tobacco products are sold or where tobacco products
 3   are manufactured, stored, or kept for the purpose of
 4   sale or consumption, including any vessel, vehicle,
 5   airplane, or train, or vending machine.
 6     Sec. 75.  Section 453A.43, subsection 1, unnumbered
 7   paragraph 1, Code 1995, is amended to read as follows:
 8     A tax is imposed upon all tobacco products in this
 9   state and upon any person engaged in business as a
10   distributor of tobacco products, at the rate of
11   twenty-two forty-four percent of the wholesale sales
12   price of the tobacco products, except little cigars as
13   defined in section 453A.42.  Little cigars shall be
14   subject to the same rate of tax imposed upon
15   cigarettes in section 453A.6, payable at the time and
16   in the manner provided in section 453A.6; and stamps
17   shall be affixed as provided in division I of this
18   chapter.  The tax on tobacco products, excluding
19   little cigars, shall be imposed at the time the
20   distributor does any of the following:
21     Sec. 76.  Section 453A.43, subsection 2, unnumbered
22   paragraph 1, Code 1995, is amended to read as follows:
23     A tax is imposed upon the use or storage by
24   consumers of tobacco products in this state, and upon
25   the consumers, at the rate of twenty-two forty-four
26   percent of the cost of the tobacco products.
27     Sec. 77.  Section 453A.56, Code 1995, is amended to
28   read as follows:
29     453A.56  UNIFORM APPLICATION.
30     Enforcement of this chapter shall be implemented in
31   an equitable manner throughout the state.  For the
32   purpose of equitable and uniform implementation,
33   application, and enforcement of state and local laws
34   and regulations, the provisions of this chapter shall
35   supersede any local law or regulation which is
36   inconsistent with or conflicts with the provisions of
37   this chapter, unless the local law or regulation is
38   more restrictive in application in which case the more
39   restrictive portion of the local law or regulation
40   shall supersede any inconsistent or conflicting
41   provision of this chapter.  This section and any
other
42   provision in this chapter shall not prohibit the
43   imposition of a local option cigarette and tobacco tax
44   under chapter 422B.
45     Sec. 78.  NEW SECTION.  453A.57  IOWA DO NOT START-
46   STOP SMOKING FUND ESTABLISHED.
47     1.  An Iowa do not start-stop smoking fund is
48   created within the state treasury under the control of
49   the Iowa department of public health.  Moneys received
50   by the department from fees collected and designated
Page  15

 1   for this purpose shall be deposited in the state
 2   treasury to the credit of the fund and are
 3   appropriated for the purposes specified in this
 4   section.  Notwithstanding section 8.33, any unexpended
 5   balance in the fund at the end of each fiscal year
 6   shall be retained in the fund.  Any interest and
 7   earnings on investments from money in the fund shall
 8   be credited to the fund, section 12C.7
 9   notwithstanding.
10     2.  Every manufacturer, distributor, distributing
11   agent, wholesaler, retailer, or subjobber who engages
12   in the sale, distribution, or use of cigarettes or
13   tobacco products in this state, upon which a tax is
14   required to be paid, and who is required to obtain a
15   permit or license, shall pay, in addition to any fee
16   for a permit, a fee of one hundred dollars at the time
17   of application for a permit or license.  If a state
18   permit holder operates more than one place of
19   business, the fee shall only be paid at the time of
20   the initial application for a permit or license.  The
21   moneys collected shall be deposited in the Iowa do not
22   start-stop smoking fund created in this section.
23     3.  The Iowa department of public health shall
24   develop and implement a do not start-stop smoking
25   education campaign to educate minors and others about
26   the hazards of using cigarettes and tobacco products.
27     Sec. 79.  Section 453A.39, Code 1995, is repealed.
28     Sec. 80.  Section 57 of this Act, relating to the
29   recovery of medical assistance expenditures due to
30   smoking, being deemed of immediate importance, takes
31   effect upon enactment.
32     Sec. 81.  This division of this Act with the
33   exception of section 57 takes effect July 1, 1996, and
34   section 58 of this division applies to tax years
35   ending on or after that date.
36     Sec. 82.  RETROACTIVE APPLICABILITY.  The state may
37   recover, pursuant to section 249A.30, in addition to
38   any subsequent damages, any applicable damages
39   incurred within the two years preceding the date of
40   enactment of section 249A.30 of this Act."
41     2.  Page 6, line 6, by inserting after the word
42   "tax," the following:  "increasing the standard
43   deduction for individual income tax purposes,
44   increasing the tax rate on cigarettes and tobacco
45   products, and making other changes relating to
46   cigarette and tobacco products,".
47     3.  Page 6, line 9, by inserting after the word
48   "relief" the following:  ", providing penalties,".
Amendment H-5655 lost.
Bernau of Story offered the following amendment H-5653, to
amendment H-5523, filed by Bernau, et. al., and moved its
adoption:
H-5653

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 3, by inserting after line 26 the
 5   following:
 6                        "DIVISION    
 7         PROPERTY TAX CREDITS FUNDING
 8     Sec. ___.  Section 8.59, Code 1995, is amended to
 9   read as follows:
10     8.59  APPROPRIATIONS FREEZE.
11     Notwithstanding contrary provisions of the Code,
12   the amounts appropriated under the applicable sections
13   of the Code for fiscal years commencing on or after
14   July 1, 1993, are limited to those amounts expended
15   under those sections for the fiscal year commencing
16   July 1, 1992.  If an applicable section appropriates
17   moneys to be distributed to different recipients and
18   the operation of this section reduces the total amount
19   to be distributed under the applicable section, the
20   moneys shall be prorated among the recipients.  As
21   used in this section, "applicable sections" means the
22   following sections:  53.50, 229.35, 230.8, 230.11,
23   405A.8, 411.20, 425.1, 425.39, 426A.1, 663.44, and
24   822.5.
25     Sec. ___.  Section 425.40, subsection 1, Code 1995,
26   is amended to read as follows:
27     1.  A low-income tax credit and reimbursement fund
28   is created.  There is appropriated annually from the
29   general fund of the state to the department of revenue
30   and finance to be credited to the low-income tax
31   credit and reimbursement fund an amount sufficient to
32   implement this division."
33     2.  Page 6, line 7, by inserting after the word
34   "tax," the following:  "fully funding the homestead
35   and military tax credits and the low-income credit and
36   reimbursement programs,".
Roll call was requested by Bernau of Story and McCoy of Polk.
Rule 75 was invoked.
On the question "Shall amendment H-5653, to amendment H-5523, be
adopted?"   (S.F. 2449)
The ayes were, 36:

Baker          	Bell           	Bernau         	Brammer       
	Brand          	Burnett        	Cataldo        	Cohoon        
		Connors        	Doderer        	Drees          	Fallon        
	Harper         	Holveck        	Jochum         	Koenigs       
		Kreiman        	Larkin         	Mascher        	May 
           	McCoy          	Mertz          	Moreland      
	Mundie         		Murphy         	Myers          	Nelson, L.    
  	O'Brien        		Ollie          	Osterhaus      	Schrader    
  	Shoultz        		Taylor         	Warnstadt      	Weigel      
  	Witt           	
The nays were, 60:

Blodgett       	Boddicker      	Boggess        	Bradley       
		Branstad       	Brauns         	Brunkhorst     	Carroll       
	Churchill      	Coon           	Corbett, Spkr.        	Cormack 
      		Daggett        	Dinkla         	Disney         	Drake   
      		Eddie          	Ertl           	Garman         	Gipp    
      		Greig          	Gries          	Grubbs        
	Grundberg      	Hahn           	Halvorson      	Hammitt Barry 
	Hanson         		Harrison       	Heaton         	Hurley        
	Huseman        	Jacobs         	Klemme         	Kremer        
	Lamberti       		Larson         	Lord           	Main          
	Martin         		Metcalf        	Meyer          	Millage       
	Nelson, B.      	Nutt           	Rants          	Renken        
	Salton         	Schulte        	Siegrist       	Sukup         
	Teig           		Thomson        	Tyrrell        	Van Fossen    
    	Vande Hoef     	Veenstra       	Weidman        	Welter     
   	Van Maanen,  				 Presiding
Absent or not voting, 4:

Arnold         	Greiner        	Houser         	Wise           	
Amendment H-5653 lost.
Shoultz of Black Hawk offered the following amendment H-5641, to
amendment H-5523, filed by him and moved its adoption:

H-5641

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 3, by inserting after line 26 the
 5   following:
 6                        "DIVISION    
 7                  ABATEMENT OF TAXES
 8     Sec. ___.  NEW SECTION.  427.8A  PETITION FOR
 9   SUSPENSION AND ABATEMENT OF TAXES DUE TO A DISASTER.
10     The board of supervisors may suspend or abate all
11   or part of taxes on a parcel of private property in
12   order to prevent or abate a public nuisance and to
13   encourage repair or reconstruction of private property
14   damaged due to a disaster.  The owner of property
15   damaged due to a disaster may file a petition, duly
16   sworn to, with the board of supervisors, stating the
17   circumstances of the disaster and giving a statement
18   of parcels, as defined in section 445.1, damaged by
19   the disaster, and other information as the board may
20   require.  The board of supervisors may order the
21   county treasurer to suspend the collection of the
22   taxes, special assessments, and rates or charges,
23   including interest, fees, and costs, which are
24   assessed against the petitioner or the petitioner's
25   estate for the current year and those unpaid for prior
26   years.  If the owner agrees to repair the damage or
27   reconstruct the property, the board may also abate
28   future taxes, special assessments, and rates or
29   charges, including interest, fees, and costs for a
30   period not to exceed five years.  The petition, when
31   approved, shall be filed by March 1 of the current tax
32   year with the treasurer.
33     For purposes of this section, "disaster" means
34   manmade and natural occurrences including, but not
35   limited to, fire, flood, earthquake, tornado, or
36   windstorm which results in damage exceeding fifty
37   percent of the property's assessed value."
38     2.  Page 6, line 7, by inserting after the word
39   "tax," the following:  "allowing for the suspension or
40   abatement of property taxes as a result of a
41   disaster,".
Amendment H-5641 lost.
Weigel of Chickasaw offered the following amendment H-5662, to
amendment H-5523, filed by him from the floor and moved its
adoption:

H-5662

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 3, by inserting after line 26 the
 5   following:
 6                        "DIVISION    
 7   FAMILY FARM AND AGRICULTURAL LAND TAX CREDITS
 8     Sec. ___.  Section 425A.1, Code 1995, is amended to
 9   read as follows:
10     425A.1  FAMILY FARM TAX CREDIT FUND.
11     The family farm tax credit fund is created in the
12   office of the treasurer of state.  There shall be
13   transferred appropriated annually to the fund
the
14   first ten million dollars of the amount annually
15   appropriated to the agricultural land credit fund,
16   provided in section 426.1 an amount sufficient to
17   implement this chapter.  Any balance in the fund on
18   June 30 shall revert to the general fund.
19     Sec. ___.  Section 425A.2, subsection 4, Code 1995,
20   is amended to read as follows:
21     4.  "Designated person" means one of the following:
22     a.  If the owner is an individual, the designated
23   person includes the owner of the tract or a person
24   related to the owner as, the owner's spouse,
parent,
25   grandparent, the owner's child, grandchild,
or
26   stepchild, and their spouses, or the owner's relative
27   within the third degree of consanguinity, and the
28   relative's spouse.
29     b.  If the owner is a partnership, a partner, or
30   the partner's spouse.
31     c.  If the owner is a family farm corporation, a
32   family member who is a shareholder of the family farm
33   corporation or the shareholder's spouse.
34     d.  If the owner is an authorized farm corporation,
35   a shareholder who owns at least fifty-one percent of
36   the stock of the authorized farm corporation or the
37   shareholder's spouse.
38     e.  If the owner is an individual who leases the
39   tract to a family farm corporation, a shareholder of
40   the corporation if the combined stock of the family
41   farm corporation owned by the owner of the tract and
42   persons related to the owner as enumerated in
43   paragraph "a" is equal to at least fifty-one percent
44   of the stock of the family farm corporation.
45     f.  If the owner is an individual who leases the
46   tract to a partnership, a partner if the combined
47   partnership interest owned by the owner of the tract
48   and persons related to the owner as enumerated in
49   paragraph "a" is equal to at least fifty-one percent
50   of the ownership interest of the partnership.

Page 2  

 1     Sec. ___.  Section 426.1, Code 1995, is amended to
 2   read as follows:
 3     426.1  AGRICULTURAL LAND CREDIT FUND.
 4     There is created as a permanent fund in the office
 5   of the treasurer of state a fund to be known as the
 6   agricultural land credit fund, and for the purpose of
 7   establishing and maintaining this fund for each fiscal
 8   year there is appropriated thereto to the fund from
 9   funds in the general fund not otherwise appropriated
10   the sum of thirty-nine twenty-nine million one
hundred
11   thousand dollars of which the first ten million
12   dollars shall be transferred to and deposited into the
13   family farm tax credit fund created in section 425A.1.
14   Any balance in said fund on June 30 shall revert to
15   the general fund.
16     Sec. ___.  This division of this Act, being deemed
17   of immediate importance, takes effect upon enactment
18   and applies to family farm tax credits and
19   agricultural land credits allowed for property taxes
20   due and payable in fiscal years beginning on or after
21   July 1, 1996."
22     2.  Page 6, line 7, by inserting after the word
23   "tax," the following:  "increasing the funding for the
24   family farm tax credit,".
Roll call was requested by Bernau of Story and Weigel of
Chickasaw.
Rule 75 was invoked.
On the question "Shall amendment H-5662, to amendment H-5523, be
adopted?" (S.F. 2449)
The ayes were, 37:

Baker          	Bell           	Bernau         	Brammer       
	Brand          	Burnett        	Cataldo	Cohoon        
		Connors        	Doderer        	Drees          	Fallon        
	Harper         	Holveck        	Jochum         	Koenigs       
		Kreiman        	Larkin         	Mascher        	May           
	McCoy          	Mertz          	Moreland 	Mundie        
		Murphy         	Myers          	Nelson, L.       	O'Brien
		Ollie          	Osterhaus      	Schrader       	Shoultz       
		Taylor         	Warnstadt      	Weigel         	Wise          
		Witt           	
The nays were, 61:

Blodgett       	Boggess        	Bradley        	Branstad      
	Brauns         	Brunkhorst     	Carroll        	Churchill     
	Coon           	Corbett, Spkr.        	Cormack        	Daggett 
      		Dinkla         	Disney         	Drake          	Eddie   
      		Ertl           	Garman         	Gipp           	Greig   
      	Greiner        	Gries          	Grubbs         	Grundberg
     	Hahn           	Halvorson      	Hammitt Barry  	Hanson    
    		Harrison       	Heaton         	Houser         	Hurley    
    		Huseman        	Jacobs         	Klemme         	Kremer    
    		Lamberti       	Larson         	Lord           	Main      
    		Martin         	Metcalf        	Meyer          	Millage   
    		Nelson, B.      	Nutt           	Rants          	Renken   
     		Salton         	Schulte        	Siegrist       	Sukup    
     		Teig           	Thomson        	Tyrrell        	Van
Fossen       	Vande Hoef     	Veenstra       	Weidman       
	Welter         		Van Maanen, 
  Presiding
Absent or not voting, 2:

Arnold         	Boddicker      

Amendment H-5662 lost.
Shoultz of Black Hawk offered the following amendment H-5633, to
amendment H-5523, filed by him and Ollie and moved its adoption:

H-5633

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  By striking page 3, line 28, through page 6,
 5   line 1, and inserting the following:
 6                       "SCHOOL FUNDING
 7     Sec. ___.  Section 256B.9, Code 1995, is amended by
 8   adding the following new subsection:
 9     NEW SUBSECTION.  10.  For the school year
10   commencing July 1, 1996, the director of the
11   department of education shall report to the school
12   budget review committee the total statewide deficit,
13   actual or estimate for the most recent school year
14   available, in costs for providing instruction for
15   children requiring special education in the categories
16   of the weighting plan established under this section,
17   and for providing services to nonpublic school
18   students pursuant to section 256.12, subsection 2.
19   The school budget review committee shall adjust the
20   weighting plan beginning with the school year
21   beginning July 1, 1996, so as to eliminate the amount
22   of the statewide deficit as reported by the director.
23   Any adjustment to weightings made under this
24   subsection shall be in addition to any adjustments
25   made pursuant to subsection 4.
26     Sec. ___.  Section 257.1, subsection 2, unnumbered
27   paragraph 2, Code Supplement 1995, is amended to read
28   as follows:
29     For the budget year commencing July 1, 1991 1996,
30   and for each succeeding budget year the regular
31   program foundation base per pupil is eighty-three
32   eighty-five percent of the regular program state cost
33   per pupil, except that the regular program foundation
34   base per pupil for the portion of weighted enrollment
35   that is additional enrollment because of special
36   education is seventy-nine percent of the regular
37   program state cost per pupil.  For each succeeding
38   budget year, the regular program foundation base shall
39   increase one-half of one percent per year until the
40   regular program foundation base reaches ninety percent
41   of the regular program state cost per pupil.  For the
42   budget year commencing July 1, 1991 1996, and for
each
43   succeeding budget year the special education support
44   services foundation base is seventy-nine eighty-five
45   percent of the special education support services
46   state cost per pupil.  It shall increase at the same
47   rate as the regular program foundation base.  The
48   combined foundation base is the sum of the regular
49   program foundation base and the special education
50   support services foundation base.
Page 2  

 1     Sec. ___.  Section 257.11, unnumbered paragraph 1,
 2   Code Supplement 1995, is amended to read as follows:
 3     In order to provide additional funds for school
 4   districts which send their resident pupils to another
 5   school district or to a community college for classes,
 6   which jointly employ and share the services of
 7   teachers under section 280.15, which use the services
 8   of a teacher employed by another school district, or
 9   which jointly employ and share the services of a
10   school superintendent under section 280.15 or 273.7A,
11   have established programs for returning dropouts and
12   dropout prevention, or which have established gifted
13   and talented children programs, a supplementary
14   weighting plan for determining enrollment is adopted
15   as follows:
16     Sec. ___.  Section 257.11, Code Supplement 1995, is
17   amended by adding the following new subsections:
18     NEW SUBSECTION.  8.  GIFTED AND TALENTED CHILDREN
19   PROGRAMS.  School districts that have established
20   gifted and talented children programs approved
21   pursuant to sections 257.42 through 257.49 may receive
22   supplementary weighting for each pupil enrolled in the
23   program equal to two-tenths.  However, the total
24   additional weighting allowed under this subsection for
25   a budget year for a school district shall not result
26   in additional funding in excess of the lesser of the
27   product of one-fifth of the district cost per pupil
28   multiplied by one-twentieth of the budget enrollment,
29   or of the amount established by the department of
30   management, as required in section 257.46, to be
31   raised from supplementary weighting.
32     NEW SUBSECTION.  9.  RETURNING DROPOUTS AND DROPOUT
33   PREVENTION PROGRAMS.  School districts that have
34   established returning dropouts and dropout prevention
35   programs approved pursuant to sections 257.38 through
36   257.41 may receive supplementary weighting for each
37   pupil enrolled in the program equal to two-tenths.
38   However, the total additional weighting allowed under
39   this subsection for a budget year for a school
40   district shall not result in additional funding in
41   excess of the lesser of the product of one-fifth of
42   the district cost per pupil multiplied by one-
43   twentieth of the budget enrollment, or of the amount
44   established by the department of management, as
45   required in section 257.41, to be raised from
46   supplementary weighting.
47     Sec. ___.  Section 257.20, subsection 1, Code 1995,
48   is amended to read as follows:
49     1.  In order to determine the amount of
50   instructional support state aid and the amount of
Page   3

 1   local funding for the instructional support program
 2   for a district, the department of management shall
 3   divide the total assessed valuation in the state by
 4   the total budget enrollment for the budget year in the
 5   state to determine a state assessed valuation per
 6   pupil and shall divide the assessed valuation in each
 7   district by the district's budget enrollment for the
 8   budget year to determine the district assessed
 9   valuation per pupil.  The department of management
10   shall multiply the ratio of the state's valuation per
11   pupil to the district's valuation per pupil by twenty-
12   five hundredths and subtract that result from one to
13   determine the portion of the instructional support
14   program budget that is local funding.  The remaining
15   portion of the budget shall be funded by instructional
16   support state aid.  However, for the budget year
17   beginning July 1, 1992, only, the amount of state aid
18   is three and one-quarter percent less than the amount
19   computed under this paragraph for that budget year.
20     Sec. ___.  Section 257.20, subsection 2, paragraphs
21   a and b, Code 1995, are amended by striking the
22   paragraphs.
23     Sec. ___.  Section 257.20, subsection 3, Code 1995,
24   is amended by striking the subsection.
25     Sec. ___.  Section 257.38, unnumbered paragraphs 1
26   and 2, Code 1995, are amended to read as follows:
27     Boards of school districts, individually or jointly
28   with boards of other school districts, requesting to
29   use additional allowable growth receive
supplementary
30   weighting for programs for returning dropouts and
31   dropout prevention, shall annually submit
32   comprehensive program plans for the programs and
33   budget costs, including requests for additional
34   allowable growth supplementary weighting for funding
35   the programs, to the department of education as
36   provided in this chapter.  The program plans shall
37   include:
38     Program plans shall identify the parts of the plan
39   that will be implemented first upon approval of the
40   application.  If a district is requesting to use
41   additional allowable growth receive supplementary
42   weighting to finance the program, it shall not
43   identify more than five percent of its budget
44   enrollment for the budget year as returning dropouts
45   and potential dropouts.
46     Sec. ___.  Section 257.40, Code 1995, is amended to
47   read as follows:
48     257.40  PLANS FOR RETURNING DROPOUTS AND DROPOUT
49   PREVENTION.
50     The board of directors of a school district
Page   4

 1   requesting to use additional allowable growth
receive
 2   supplementary weighting for programs for returning
 3   dropouts and dropout prevention shall submit
 4   applications for approval for the programs to the
 5   department not later than November 1 preceding the
 6   budget year during which the program will be offered.
 7   The department shall review the program plans and
 8   shall prior to January 15 either grant approval for
 9   the program or return the request for approval with
10   comments of the department included.  An unapproved
11   request for a program may be resubmitted with
12   modifications to the department not later than
13   February 1.  Not later than February 15, the
14   department shall notify the department of management
15   and the school budget review committee of the names of
16   the school districts for which programs using
17   additional allowable growth receiving supplementary
18   weighting for funding have been approved and the
19   approved budget of each program listed separately for
20   each school district having an approved program.
21     Sec. ___.  Section 257.41, Code 1995, is amended to
22   read as follows:
23     257.41  FUNDING FOR PROGRAMS FOR RETURNING DROPOUTS
24   AND DROPOUT PREVENTION.
25     The budget of an approved program for returning
26   dropouts and dropout prevention for a school district,
27   after subtracting funds received from other sources
28   for that purpose, shall be funded annually on a basis
29   of one-fourth or more from the district cost of the
30   school district and up to three-fourths by an increase
31   in allowable growth as defined in section 257.8
32   receipt of supplementary weighting as provided in
33   section 257.11, subsection 9.  Annually, the
34   department of management shall establish a modified
35   allowable growth the amount of additional funding
36   needed to be raised from the supplementary weighting
37   for each such district equal to the difference between
38   the approved budget for the program for returning
39   dropouts and dropout prevention for that district and
40   the sum of the amount funded from the district cost of
41   the school district plus funds received from other
42   sources.
43     Sec. ___.  Section 257.42, unnumbered paragraph 1,
44   Code 1995, is amended to read as follows:
45     Boards of school districts, individually or jointly
46   with the boards of other school districts, requesting
47   to use additional allowable growth receive
48   supplementary weighting for gifted and talented
49   children programs, may annually submit program plans
50   for gifted and talented children programs and budget
Page   5

 1   costs, including requests for additional allowable
 2   growth supplementary weighting for funding the
 3   programs, to the department of education and to the
 4   applicable gifted and talented children advisory
 5   council, if an advisory council has been established,
 6   as provided in this chapter.
 7     Sec. ___.  Section 257.42, unnumbered paragraphs 4
 8   and 5, Code 1995, are amended to read as follows:
 9     The department of education shall adopt rules under
10   chapter 17A relating to the administration of sections
11   257.42 through 257.49.  The rules shall prescribe the
12   format of program plans submitted under section 257.43
13   and shall require that programs fulfill specified
14   objectives.  The department shall encourage and assist
15   school districts to provide programs for gifted and
16   talented children whether or not additional allowable
17   growth supplementary weighting is requested under
this
18   chapter.
19     The department may request that the staff of the
20   auditor of state conduct an independent program audit
21   to verify that the gifted and talented children
22   programs funded by additional allowable growth
23   supplementary weighting conform to a district's
24   program plans.
25     Sec. ___.  Section 257.45, subsection 1, Code 1995,
26   is amended to read as follows:
27     1.  The board of directors of a school district
28   requesting to use additional allowable growth
receive
29   supplementary weighting for gifted and talented
30   children programs shall submit applications for
31   approval for the programs to the department not later
32   than November 1 preceding the fiscal year during which
33   the program will be offered.  The board shall also
34   submit a copy of the program plans to the gifted and
35   talented children advisory council, if an advisory
36   council has been established.  The department shall
37   review the program plans and shall prior to January 15
38   either grant approval for the program or return the
39   request for approval with comments of the department
40   included.  Any unapproved request for a program may be
41   resubmitted with modifications to the department not
42   later than a date established by the department.  Not
43   later than February 15 the department shall notify the
44   department of management and the school budget review
45   committee of the names of the school districts for
46   which gifted and talented children programs using
47   additional allowable growth receiving supplementary
48   weighting for funding have been approved and the
49   approved budget of each program listed separately for
50   each school district having an approved program.
Page   6

 1     Sec. ___.  Section 257.46, Code 1995, is amended to
 2   read as follows:
 3     257.46  FUNDING.
 4     The budget of an approved gifted and talented
 5   children program for a school district, after
 6   subtracting funds received from other sources for that
 7   purpose, shall be funded annually on a basis of one-
 8   fourth or more from the district cost of the school
 9   district and up to three-fourths by an increase in
10   allowable growth as defined in section 257.8 receipt
11   of supplementary weighting as provided in section
12   257.11, subsection 8.  The approved budget for a
13   gifted and talented children program shall not exceed
14   an amount equal to one and twenty-four-hundredths
15   percent of the district cost per pupil of the district
16   for the base year multiplied by the budget enrollment
17   of the district for the budget year.  Annually, the
18   department of management shall establish a modified
19   allowable growth the amount of additional funding
20   needed to be raised from the supplementary weighting
21   for each such district equal to the difference between
22   the approved budget for the gifted and talented
23   children program for that district and the sum of the
24   amount funded from the district cost of the school
25   district plus funds received from other sources.
26     If any portion of the gifted and talented program
27   budget remains unexpended at the end of the budget
28   year, the part of the remainder equal to the
29   proportion of the original budget which was funded by
30   an increase in allowable growth, as defined in section
31   257.8, supplementary weightings shall be carried
over
32   to the subsequent budget year and added to the gifted
33   and talented program budget for that year.
34     Sec. ___.  This division of this Act, being deemed
35   of immediate importance, takes effect upon enactment,
36   and applies to the computation of school funding for
37   school budget years commencing on or after July 1,
38   1996.""
39     2.  Page 6, by striking line 8 and inserting the
40   following:  "providing additional state aid for
41   purposes".
A non-record roll call was requested.
The ayes were 30, nays 49.
Amendment H-5633 lost.
Brand of Benton offered amendment H-5668, to amendment H-5523,
filed by him from the floor as follows:
H-5668

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 1, line 6, by striking the word
 5   "INDEXATION".
 6     2.  Page 2, by inserting after line 16 the
 7   following:
 8     "Sec. ___.  NEW SECTION.  422.12F  CAPITAL GAIN
 9   CREDIT.
10     1.  The taxes imposed under this division shall be
11   reduced by a capital gain credit equal to fifty
12   percent of the net capital gain of the taxpayer on the
13   sale of agricultural land to a beginning farmer under
14   the "Farm-On" program of the agricultural extension
15   service.  However, to receive the credit both the
16   taxpayer and the beginning farmer must be enrolled in
17   the "Farm-On" program prior to the sale of the
18   agricultural land.
19     2.  The taxpayer must completely fill out the
20   return and determine the taxpayer's tax liability
21   without deduction for the credit allowed in subsection
22   1 and pay the amount of tax owed.  The taxpayer shall
23   then recompute the taxpayer's income tax liability
24   pursuant to this division with the deduction for the
25   credit allowed in subsection 1 on a special return.
26   This special return shall be filed with the regular
27   return and constitutes a claim for refund of the
28   difference between the amount of tax the taxpayer paid
29   on the regular return and the amount of tax determined
30   on the special return.
31     3.  For any tax year, the aggregate amount of
32   refund claims that shall be paid pursuant to this
33   section shall not exceed ten million dollars.  If, for
34   a tax year, the aggregate amount of refund claims
35   filed pursuant to this section exceeds ten million
36   dollars, each claim for refund shall be paid on a pro
37   rata basis so that the aggregate amount of refund
38   claims does not exceed ten million dollars.  In the
39   case where refund claims are not allowed in full, the
40   amount of the refund to which the taxpayer is entitled
41   under this section is the pro rata amount that was
42   paid and the taxpayer is not entitled to a refund of
43   the unpaid portion and is not entitled to carry that
44   amount forward or backward to another tax year.
45   Taxpayers shall not use refunds as estimated payments
46   for the succeeding tax year.  The department shall
47   determine by October 1 of the tax year following the
48   tax year for which the refund claim is filed if the
49   aggregate amount of refund claims exceeds ten million
50   dollars for the tax year.  Notwithstanding any
Page 2  

 1   provision, interest shall not be due on any refund
 2   claims that are paid by December 31 of the tax year
 3   following the tax year for which the refund claim is
 4   filed.  For taxpayers that are fiscal year filers, the
 5   amount of the refund claim allowed shall be in the
 6   same ratio as the refund claims allowed for the tax
 7   year in which the taxpayer's fiscal year began."
 8     3.  Page 2, line 21, by inserting after the figure
 9   "1996." the following:  "This division of this Act
10   applies retroactively to January 1, 1996, to tax years
11   beginning on or after that date."
12     4.  Page 6, line 6, by striking the word "of" and
13   inserting the following:  "and providing a credit for
14   the sale of farmland to a beginning farmer under".
Speaker Corbett in the chair at 1:04 p.m.
Brand of Benton moved the adoption of amendment H-5668, to
amendment H-5523.
A non-record roll call was requested.
The ayes were 25, nays 57.
Amendment H-5668 lost.
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Tyrrell of Iowa, until his return, on request of Siegrist of
Pottawattamie.
Wise of Lee offered the following amendment H-5670, to amendment
H-5523, filed by Wise, Shoultz and Ollie from the floor and
moved its adoption:

H-5670

 1     Amend amendment, H-5523, to Senate File 2449, as
 2   amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 3, line 28, by striking the words
 5   "PROPERTY TAX" and inserting the following:
 6   "FUNDING".
 7     2.  By striking page 3, line 29, through page 6,
 8   line 1, and inserting the following:
 9     "Sec. ___.  Section 257.1, subsection 2, unnumbered
10   paragraph 2, Code Supplement 1995, is amended to read
11   as follows:
12     For the budget year commencing July 1, 1991 1996,
13   and for each succeeding budget year the regular
14   program foundation base per pupil is eighty-three
15   eighty-seven percent of the regular program state cost
16   per pupil, except that the regular program foundation
17   base per pupil for the portion of weighted enrollment
18   that is additional enrollment because of special
19   education is seventy-nine percent of the regular
20   program state cost per pupil.  For each succeeding
21   budget year, the regular program foundation base shall
22   increase one-half of one percent per year until the
23   regular program foundation base reaches ninety percent
24   of the regular program state cost per pupil.  For the
25   budget year commencing July 1, 1991 1996, and for
each
26   succeeding budget year the special education support
27   services foundation base is seventy-nine
eighty-seven
28   percent of the special education support services
29   state cost per pupil.  It shall increase at the same
30   rate as the regular program foundation base.  The
31   combined foundation base is the sum of the regular
32   program foundation base and the special education
33   support services foundation base.
34     Sec. ___.  This division of this Act, being deemed
35   of immediate importance, takes effect upon enactment,
36   and applies to the computation of school funding for
37   school budget years commencing on or after July 1,
38   1996."
39     3.  Page 6, by striking line 8 and inserting the
40   following:  "providing additional state aid to school
41   districts for purposes".
42     4.  By renumbering as necessary.
Roll call was requested by Wise of Lee and Ollie of Clinton.
On the question "Shall amendment H-5670, to amendment H-5523, be
adopted?"  (S.F. 2449)
The ayes were, 36:

Bell           	Bernau         	Brammer        	Brand         
		Burnett        	Cataldo        	Cohoon         	Connors       
	Doderer        	Drees          	Fallon         	Hanson        
	Harper         	Holveck        	Jochum         	Koenigs       
		Kreiman        	Larkin         	Mascher        	May           
	McCoy          	Moreland       	Mundie         	Murphy        
		Myers          	Nelson, L.       	O'Brien        	Ollie       
  		Osterhaus      	Schrader       	Shoultz        	Taylor      
  	Warnstadt      	Weigel         	Wise           	Witt         

The nays were, 57:

Blodgett       	Boddicker      	Boggess        	Branstad      
	Brauns         	Brunkhorst     	Churchill      	Coon           
      		Cormack        	Daggett        	Dinkla         	Disney  
      		Drake          	Eddie          	Ertl           	Garman  
      		Gipp           	Greig          	Greiner        	Gries 
         	Grubbs         	Grundberg      	Hahn          
	Halvorson      	Hammitt Barry  	Harrison       	Heaton        
	Houser         		Hurley         	Huseman        	Jacobs        
	Klemme         		Kremer         	Lamberti       	Larson        
	Martin         		Mertz          	Metcalf        	Meyer         
	Millage        		Nelson, B.      	Nutt           	Rants 
	Renken         		Salton         	Schulte        	Siegrist      
	Sukup          		Teig           	Thomson        	Van Fossen    
	Van Maanen     	Vande Hoef     	Veenstra       	Weidman       
	Welter         		Mr. Speaker 
  Corbett
Absent or not voting, 7:

Arnold         	Baker          	Bradley        	Carroll       
		Lord           	Main           	Tyrrell        	
Amendment H-5670 lost.

Carroll of Poweshiek in the chair at 1:52 p.m.
Speaker Corbett in the chair at 1:55 p.m.
Halvorson of Clayton moved the adoption of amendment H-5523.
Roll call was requested by Siegrist of Pottawattamie and Rants
of Woodbury.
On the question "Shall amendment H-5523 be adopted?" (S.F. 2449)
The ayes were, 62:

Arnold         	Blodgett       	Boddicker      	Boggess       
		Bradley        	Branstad       	Brauns         	Brunkhorst    
	Carroll        	Churchill      	Coon                  	Cormack 
      		Daggett        	Dinkla         	Disney         	Drake   
      		Eddie          	Garman         	Gipp           	Greig   
      	Greiner        	Gries          	Grubbs         	Grundberg
     	Hahn           	Halvorson      	Hammitt Barry  	Hanson    
    		Harrison 	Heaton         	Houser         	Hurley        
		Huseman        	Jacobs         	Klemme         	Kremer        
		Lamberti       	Larson         	Lord           	Main          
		Martin         	Mertz          	Metcalf        	Meyer         
		Millage        	Mundie         	Nelson, B.      	Nutt         
 		Rants          	Renken         	Salton         	Schulte      
 		Siegrist       	Sukup          	Teig           	Thomson      
 	Van Fossen     	Van Maanen     	Veenstra       	Weidman       
	Welter         	Mr. Speaker 
 	 Corbett
The nays were, 34:

Bell           	Bernau         	Brammer        	Brand         
		Burnett        	Cataldo        	Cohoon         	Connors       
	Doderer  	Drees          	Ertl           	Fallon
         	Harper         	Holveck        	Jochum        
	Koenigs        		Kreiman        	Larkin         	Mascher       
	May            	McCoy          	Moreland       	Myers         
	Nelson, L.       	O'Brien        	Ollie          	Osterhaus    
 	Schrader       	Shoultz 	Taylor         	Warnstadt     
	Weigel         		Wise           	Witt           	
Absent or not voting, 4:

Baker          	Murphy         	Tyrrell        	Vande Hoef     	
Amendment H-5523 was adopted.
Halvorson of Clayton moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill
was read a last time.
On the question "Shall the bill pass?" (S.F. 2449)
The ayes were, 95:

Arnold         	Bell           	Bernau         	Blodgett      
		Boddicker	Boggess        	Bradley        	Brand         
		Branstad       	Brauns         	Brunkhorst     	Burnett       
		Carroll        	Cataldo        	Churchill      	Cohoon        
		Connors        	Coon                  	Cormack        	Daggett
       		Dinkla         	Disney         	Doderer        	Drake  
       		Drees          	Eddie          	Ertl           	Garman 
       		Gipp           	Greig          	Greiner        	Gries  
       	Grubbs         	Grundberg      	Hahn          
	Halvorson      	Hammitt Barry  	Hanson         	Harrison      
	Heaton         	Holveck        	Houser         	Hurley        
	Huseman        	Jacobs         	Jochum         	Klemme        
	Koenigs        		Kreiman        	Kremer         	Lamberti      
	Larkin         		Larson         	Lord           	Main          
	Martin         	Mascher        	May            	McCoy         
	Mertz          		Metcalf        	Meyer          	Millage       
	Moreland       	Mundie         	Murphy         	Nelson, B.     
	Nelson, L.       	Nutt           	O'Brien        	Ollie        
 	Osterhaus      	Rants          	Renken         	Salton        
	Schrader       	Schulte        	Shoultz        	Siegrist      
	Sukup          		Taylor         	Teig           	Thomson       
	Tyrrell        		Van Fossen     	Van Maanen     	Vande Hoef    
	Veenstra       	Warnstadt      	Weidman        	Weigel        
	Welter         		Wise           	Witt           	Mr. Speaker 
 		 Corbett
The nays were, 4:

Brammer        	Fallon 	Harper         	Myers          	

Absent or not voting, 1:

Baker          	      	        	
The bill having received a constitutional majority was declared
to have passed the House and the title, as amended, was agreed
to.
IMMEDIATE MESSAGES
Siegrist of Pottawattamie asked and received unanimous consent
that the following bills be immediately messaged to the Senate: 
Senate Files 2062, 2235, 2282 and 2449.
SPECIAL PRESENTATION
Nelson of Pottawattamie presented to the House Brian Heithoff
and Joseph Reid, representatives of the Fourth and Fifth Grade
Classes of Gunn Elementary School, Council Bluffs. The classes,
and their teacher Mrs. Heithoff,  have taken "The Capitol
Bulilding Restoration" as an ongoing project. Through bake
sales, car washes, and donations from organizations, companies
and families, the students were able to present a check for
$2,153.82 to Speaker Corbett to be used for the Capitol Building
restoration project.
The House rose and expressed its appreciation.
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 March 27, 1996, amended and passed the
following bill in which the concurrence of the House is asked:
House File 514, a bill for an act relating to Iowa motor vehicle
registration plates, by providing for special United States
armed forces retired plates, special plates for education and an
Iowa education transportation enhancement fund, and special
silver and bronze star plates, providing for special
registration plates with distinguishing processed emblems,
providing for required plate specifications, making penalties
applicable, and providing an effective date.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the Senate was asked:
House File 2230, a bill for an act relating to the duties of the
department of inspections and appeals concerning liens on
improper provider payments from the department of human
services, the administration of certain health care statutes,
and the conducting of audits.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the Senate was asked:
House File 2409, a bill for an act relating to the regulation of
activities of state banks and state bank affiliates, interstate
branching or banking, and personnel of the banking division,
state banks, and state bank affiliates, and the regulation of
financial transactions involving such entities and personnel.
Also: That the Senate has on March 4, 1996, passed the following
bill in which the concurrence of the House is asked:
Senate File 2216, a bill for an act providing that the
examination for commercial applicators of pesticides be given at
each community college.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2280, a bill for an act relating to filing fees
charged by county recorders and eliminating a surcharge fee.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2368, a bill for an act providing for the regulation
of investment securities under Article 8 of the Uniform
Commercial Code, and providing conforming changes, and an
effective date.
Also: That the Senate has on March 18, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2411, a bill for an act providing the state auditor
with the right to examine documents of state officers and
departments.
Also: That the Senate has on March 27, 1996, adopted the
following resolution in which the concurrence of the House is
asked:
Senate Concurrent Resolution 113, a concurrent resolution
declaring Miss Iowa an official hostess for the State of Iowa.
Also: That the Senate has on March 27, 1996, adopted the
following resolution in which the concurrence of the House is
asked:
Senate Concurrent Resolution 116, a Senate concurrent resolution
to urge the federal government to restore requirements for the
reporting of information regarding cattle fed in Iowa feedlots.
JOHN F. DWYER, Secretary
SENATE MESSAGES CONSIDERED
Senate File 2216, by committee on agriculture, a bill for an
act providing that the examination for commercial applicators of
pesticides be given at each community college.
Read first time and referred to committee on agriculture.
Senate File 2280, by committee on local government, a bill
for an act relating to filing fees charged by county recorders
and eliminating a surcharge fee.
Read first time and passed on file.
Senate File 2411, by committee on state government, a bill
for an act providing the state auditor with the right to examine
documents of state officers and departments.
Read first time and referred to committee on state government.
On motion by Siegrist of Pottawattamie, the House was recessed
at 2:30 p.m., until  3:30 p.m.
AFTERNOON SESSION
The House reconvened at 3:43 p.m., Speaker Corbett in the chair.
QUORUM CALL
A non-record roll call was requested to determine that a quorum
was present.  The vote revealed eighty-one members present,
nineteen absent.

MOTIONS TO RECONSIDER WITHDRAWN
(Senate File 2423)
Kreiman of Davis and Greiner of Washington asked and received
unanimous consent to withdraw the motion to reconsider Senate
File 2423, a bill for an act prohibiting a person from
soliciting another person to arrange a sex act with a child and
making a penalty applicable, filed by them on March 25, 1996.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 2423 be immediately messaged to the Senate.
RULES SUSPENDED
Siegrist of Pottawattamie asked and received unanimous consent
to suspend the rules for immediate consideration of Senate File
2446.

CONSIDERATION OF BILLS
Appropriations Calendar
Senate File 2446, a bill for an act relating to agriculture and
natural resources, by providing for appropriations, providing
related statutory changes, and providing effective dates, with
report of committee recommending amendment and passage, was
taken up for consideration.
Hahn of Muscatine offered amendment H-5482 filed by the
committee on appropriations as follows:

H-5482

 1     Amend Senate File 2446, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  By striking everything after the enacting
 4   clause and inserting the following:
 5       "DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP
 6     Section 1.  GENERAL APPROPRIATION.  There is
 7   appropriated from the general fund of the state to the
 8   department of agriculture and land stewardship for the
 9   fiscal year beginning July 1, 1996, and ending June
10   30, 1997, the following amounts, or so much thereof as
11   is necessary, to be used for the purposes designated:
12     1.  ADMINISTRATIVE DIVISION
13     a.  For salaries, support, maintenance, the support
14   of the state 4-H foundation, support of the statistics
15   bureau, and miscellaneous purposes, and for the
16   salaries and support of not more than the following
17   full-time equivalent positions:
18   	$  1,586,111
19    	FTEs      41.45
20     (1)  Of the funds appropriated in this paragraph
21   "a", $322,406 and 7.00 FTEs shall be used to support
22   horticulture.  The president of the state horticulture
23   society or the president's designee and the department
24   shall consult and mutually agree on all expenditures
25   of moneys in this subparagraph and on the filling of
26   full-time equivalent positions, as allocated in this
27   subparagraph.
28     (2)  Of the amount appropriated in this paragraph
29   "a", $50,000 shall be allocated to the state 4-H
30   foundation to foster the development of Iowa's youth
31   and to encourage them to study the subject of
32   agriculture.
33     (3)  Of the amount appropriated and full-time
34   equivalent positions authorized in this paragraph "a",
35   $130,519 and 4.00 FTEs shall be allocated to the
36   statistics bureau to provide county-by-county
37   information on land in farms, production by crop,
38   acres by crop, and county prices by crop.  This
39   information shall be made available to the department
40   of revenue and finance for use in the productivity
41   formula for valuing and equalizing the values of
42   agricultural land.
43     (4)  Of the amount appropriated in this paragraph
44   "a", not more than $5,000 shall be allocated to the
45   Iowa limousin cattle junior association in connection
46   with the 1996 national junior limousin cattle show.
47     b.  For the operations of the dairy trade practices
48   bureau:
49   	$     66,846
50     c.  For the purpose of performing commercial feed

Page 2  

 1   audits:
 2  	$     64,698
 3     d.  For the purpose of performing fertilizer
 4   audits:
 5   	$     64,697
 6     2.  REGULATORY DIVISION
 7     a.  For salaries, support, maintenance,
 8   miscellaneous purposes, and for not more than the
 9   following full-time equivalent positions:
10   	$  3,848,960
11   	FTEs     122.50
12     b.  For the costs of inspection, sampling,
13   analysis, and other expenses necessary for the
14   administration of chapters 192, 194, and 195:
15   	$    651,220
16     3.  LABORATORY DIVISION
17     a.  For salaries, support, maintenance, and
18   miscellaneous purposes, including the administration
19   of the gypsy moth program, and for not more than the
20   following full-time equivalent positions:
21   	$    875,475
22   	FTEs      85.10
23     (1)  Of the amount appropriated in this paragraph
24   "a", $110,000 shall be used to administer a program
25   relating to the detection, surveillance, and
26   eradication of the gypsy moth.  The department shall
27   allocate and use the appropriation made in this
28   paragraph before moneys other than those appropriated
29   in this paragraph are used to support the program.
30     (2)  Of the amount appropriated and the number of
31   full-time equivalent positions authorized in this
32   paragraph "a", $49,850 and 1.00 FTE shall be used to
33   support a regional entomologist for purposes of
34   conducting laboratory inspection activities.
35     (3)  Of the amount appropriated in this paragraph
36   "a", $82,000 shall be used for the acquisition of
37   laboratory equipment, including, but not limited to, a
38   fat analyzer and a nitrogen protein combustion
39   analyzer.
40     (4)  Of the number of full-time equivalent
41   positions authorized in this paragraph "a" and funded
42   in paragraph "c", 1.00 FTE shall be used to support an
43   organics program coordinator who shall assure
44   compliance of organic foods sold commercially within
45   the state with federal regulations relating to organic
46   foods.
47     b.  For the operations of the commercial feed
48   programs:
49   	$    742,499
50     c.  For the operations of the pesticide programs:

Page   3

 1   	$  1,291,781
 2     Of the amount appropriated in this paragraph "c",
 3   $200,000 shall be allocated to Iowa state university
 4   for purposes of training commercial pesticide
 5   applicators.
 6     d.  For the operations of the fertilizer programs:
 7   	$    633,832
 8     4.  SOIL CONSERVATION DIVISION
 9     a.  For salaries, support, maintenance, assistance
10   to soil conservation districts, miscellaneous
11   purposes, and for not more than the following full-
12   time equivalent positions:
13   	$  5,805,591
14   	FTEs     171.28
15     Of the amount appropriated in this paragraph "a",
16   $330,000 shall be used to reimburse commissioners of
17   soil and water conservation districts for
18   administrative expenses.  Moneys used for the payment
19   of meeting dues by counties shall be matched on a
20   dollar-for-dollar basis by the soil conservation
21   division.
22     b.  To provide financial incentives for soil
23   conservation practices under chapter 161A:
24   	$  6,418,606
25     c.  The following requirements apply to the moneys
26   appropriated in paragraph "b":
27     (1)  Not more than 5 percent of the moneys
28   appropriated in paragraph "b" may be allocated for
29   cost sharing to abate complaints filed under section
30   161A.47.
31     (2)  Of the moneys appropriated in paragraph "b", 5
32   percent shall be allocated for financial incentives to
33   establish practices to protect watersheds above
34   publicly owned lakes of the state from soil erosion
35   and sediment as provided in section 161A.73.
36     (3)  Not more than 30 percent of a district's
37   allocation of moneys as financial incentives may be
38   provided for the purpose of establishing management
39   practices to control soil erosion on land that is row
40   cropped, including but not limited to no-till
41   planting, ridge-till planting, contouring, and contour
42   strip-cropping as provided in section 161A.73.
43     (4)  The state soil conservation committee created
44   in section 161A.4 may allocate moneys to conduct
45   research and demonstration projects to promote
46   conservation tillage and nonpoint source pollution
47   control practices.
48     (5)  The financial incentive payments may be used
49   in combination with department of natural resources
50   moneys.

Page   4

 1     d.  The provisions of section 8.33 shall not apply
 2   to the moneys appropriated in paragraph "b".
 3   Unencumbered or unobligated moneys remaining on June
 4   30, 2000, from moneys appropriated in paragraph "b"
 5   for the fiscal year beginning July 1, 1996, shall
 6   revert to the general fund on August 31, 2000.
 7     Sec. 2.  AUTHORITY OF ADMINISTRATIVE UNITS.
 8   Notwithstanding any other provision of law or
 9   departmental policy or practice, for the fiscal year
10   beginning July 1, 1996, and ending June 30, 1997, the
11   following shall apply to the department of agriculture
12   and land stewardship:
13     1.  Each division director of the department, and
14   not the secretary of agriculture or the secretary's
15   designee, shall be responsible for carrying out
16   functions of that division as required by law
17   including this Act.  Each division director shall be
18   the sole authority within the department for
19   establishing and approving a budget and for
20   authorizing the expenditure of moneys for purposes
21   provided in this Act, including functions described in
22   section 1 of this Act for that director's division,
23   including but not limited to authorizing the payment
24   of salaries, support, and maintenance; the support of
25   full-time equivalent positions; and the filling of
26   full-time equivalent positions.
27     2.  The divisions of the department shall not be
28   reorganized or restructured.  The head of an
29   administrative unit of the department serving at the
30   secretary's pleasure, including each division
31   director, shall not be subject to action by the
32   department, including the secretary of agriculture or
33   the secretary's designee, that affects the employment
34   position or status of the unit's head, unless the
35   action increases the salary or benefits, or increases
36   the powers and duties, of the administrative unit's
37   head.
38     This section shall not affect accounting or payroll
39   requirements, policies, or practices.  This section
40   shall not affect the powers and duties of the
41   department of management, the department of personnel,
42   or affect the provisions of any collective bargaining
43   agreement.
44     Sec. 3.  FARMERS' MARKET COUPON PROGRAM.  There is
45   appropriated from the general fund of the state to the
46   department of agriculture and land stewardship for the
47   fiscal year beginning July 1, 1996, and ending June
48   30, 1997, the following amount, or so much thereof as
49   is necessary, to be used for the purposes designated:
50     For salaries, support, maintenance, and

Page   5

 1   miscellaneous purposes, to be used by the department
 2   to continue and expand the farmers' market coupon
 3   program by providing federal special supplemental food
 4   program recipients with coupons redeemable at farmers'
 5   markets, and for not more than the following full-time
 6   equivalent positions:
 7   	$    215,807
 8   	FTEs       1.00
 9     Sec. 4.  PSEUDORABIES ERADICATION PROGRAM.
10     1.  There is appropriated from the general fund of
11   the state to the department of agriculture and land
12   stewardship for the fiscal year beginning July 1,
13   1996, and ending June 30, 1997, the following amount,
14   or so much thereof as is necessary, to be used for the
15   purpose designated:
16     For support of the pseudorabies eradication
17   program:
18   	$    900,300
19     2.  Persons, including organizations interested in
20   swine production in this state and in the promotion of
21   Iowa pork products who contribute support to the
22   program, are encouraged to increase financial support
23   for purposes of ensuring the program's effective
24   continuation.
25     Sec. 5.  HORSE AND DOG RACING.  There is
26   appropriated from the moneys available under section
27   99D.13 to the regulatory division of the department of
28   agriculture and land stewardship for the fiscal year
29   beginning July 1, 1996, and ending June 30, 1997, the
30   following amount, or so much thereof as is necessary,
31   to be used for the purpose designated:
32     For salaries, support, maintenance, and
33   miscellaneous purposes for the administration of
34   section 99D.22:
35   	$    192,560
36     Sec. 6.  As a condition of the appropriations made
37   to the department of agriculture and land stewardship
38   in sections 1, 3, 4, and 5 of this Act, the position
39   of deputy secretary of agriculture, established
40   pursuant to section 14A.1, shall be eliminated.
41     Sec. 7.  INTERSTATE COMPACT ON AGRICULTURAL GRAIN
42   MARKETING.  There is appropriated from the general
43   fund of the state to the interstate agricultural grain
44   marketing commission for the fiscal year beginning
45   July 1, 1996, and ending June 30, 1997, the following
46   amount, or so much thereof as is necessary, to be used
47   for the purpose designated:
48     For carrying out duties of the commission as
49   provided in Article IV of the interstate compact on
50   agricultural grain marketing as provided in chapter

Page   6

 1   183:
 2   	$     80,000
 3               DEPARTMENT OF NATURAL RESOURCES
 4     Sec. 8.  GENERAL APPROPRIATION.  There is
 5   appropriated from the general fund of the state to the
 6   department of natural resources for the fiscal year
 7   beginning July 1, 1996, and ending June 30, 1997, the
 8   following amounts, or so much thereof as is necessary,
 9   to be used for the purposes designated:
10     1.  ADMINISTRATIVE AND SUPPORT SERVICES
11     For salaries, support, maintenance, miscellaneous
12   purposes, and for not more than the following full-
13   time equivalent positions:
14   	$  2,052,389
15   	FTEs       119.25
16     Of the amount appropriated and the number of full-
17   time equivalent positions authorized in this
18   subsection 1, at least $200,000 and 4.00 FTEs shall be
19   used by administration and support services to support
20   a compliance and permit assistance team to facilitate
21   cooperation between the department and persons
22   regulated by the department in order to ensure
23   efficient compliance with applicable legal
24   requirements.
25     2.  PARKS AND PRESERVES DIVISION
26     For salaries, support, maintenance, miscellaneous
27   purposes, and for not more than the following full-
28   time equivalent positions:
29   	$  5,546,988
30   	FTEs       195.73
31     3.  FORESTS AND FORESTRY DIVISION
32     For salaries, support, maintenance, miscellaneous
33   purposes, and for not more than the following full-
34   time equivalent positions:
35   	$  1,494,908
36   	FTEs         48.71
37     4.  ENERGY AND GEOLOGICAL RESOURCES DIVISION
38     For salaries, support, maintenance, miscellaneous
39   purposes, and for not more than the following full-
40   time equivalent positions:
41   	$  1,681,228
42   	FTEs         52.00
43     5.  a.  ENVIRONMENTAL PROTECTION DIVISION
44     (1)  For salaries, support, maintenance,
45   miscellaneous purposes, and for not more than the
46   following full-time equivalent positions:
47   	$  2,026,509
48   	FTEs       218.00
49     (2)  Of the amount appropriated and the number of
50   full-time equivalent positions authorized in

Page   7

 1   subparagraph (1) at least $480,600 and 9.00 FTEs shall
 2   be used to support the regulation of animal feeding
 3   operations.
 4     (3)  Of the number of full-time equivalent
 5   positions authorized in subparagraph (1), 1.00 FTE
 6   shall be used to support administration of the waste
 7   tire management fund, if enacted in 1996 Iowa Acts,
 8   House File 2433.
 9     b.  WATER QUALITY PROTECTION FUND
10     For allocation to the administrative account of the
11   water quality protection fund established pursuant to
12   section 455B.183A, to carry out the purpose of that
13   account:
14   	$    879,000
15     (1)  Of the number of full-time equivalent
16   positions authorized in paragraph "a", 36.00 FTEs
17   shall be dedicated to carrying out the provisions of
18   chapter 455B relating to the administration,
19   regulation, and enforcement of the federal Safe
20   Drinking Water Act and to support the program to
21   assist water supply systems as provided in section
22   455B.183B.  However, the limitation on full-time
23   equivalent positions provided in paragraph "a", shall
24   not limit the number of additional full-time
25   equivalent positions supported by moneys deposited in
26   the water quality protection fund as provided in
27   section 455B.183A, in order to carry out the
28   provisions of division III of chapter 455B relating to
29   the administration, regulation, and enforcement of the
30   federal Safe Drinking Water Act, and the
31   administration of the program to assist water supply
32   systems pursuant to section 455B.183B.
33     (2)  In providing assistance to water supply
34   systems, the department shall provide priority to
35   water supply systems serving a population of seven
36   thousand or less.  At least 2.00 FTEs shall be
37   allocated to provide assistance to systems serving a
38   population of seven thousand or less.
39     6.  FISH AND WILDLIFE DIVISION
40     For not more than the following full-time
41   equivalent positions:
42   	FTEs     342.18
43     7.  WASTE MANAGEMENT ASSISTANCE DIVISION
44     For not more than the following full-time
45   equivalent positions:
46   	FTEs      16.75
47     Sec. 9.  STATE FISH AND GAME PROTECTION FUND _
48   APPROPRIATION TO THE DIVISION OF FISH AND WILDLIFE.
49     1.  There is appropriated from the state fish and
50   game protection fund to the division of fish and

Page   8

 1   wildlife of the department of natural resources for
 2   the fiscal year beginning July 1, 1996, and ending
 3   June 30, 1997, the following amount, or so much
 4   thereof as is necessary, to be used for the purposes
 5   designated:
 6     For administrative support, and for salaries,
 7   support, maintenance, equipment, and miscellaneous
 8   purposes:
 9   	$ 21,290,891
10     2.  The department shall not expend more moneys
11   from the fish and game protection fund than provided
12   in this section, unless the expenditure derives from
13   contributions made by a private entity, or a grant or
14   moneys received from the federal government, and is
15   approved by the natural resource commission.  The
16   department of natural resources shall promptly notify
17   the legislative fiscal bureau and the chairpersons and
18   ranking members of the joint appropriations
19   subcommittee on agriculture and natural resources
20   concerning the commission's approval.
21     Sec. 10.  MARINE FUEL TAX RECEIPTS _ BOATING
22   FACILITIES AND ACCESS.  There is appropriated from the
23   marine fuel tax receipts deposited in the general fund
24   of the state to the department of natural resources
25   for the fiscal year beginning July 1, 1996, and ending
26   June 30, 1997, the following amount, or so much
27   thereof as is necessary, to be used for the purpose
28   designated:
29     For purposes of maintaining and developing boating
30   facilities and access to public waters by the parks
31   and preserves division:
32  	$    411,311
33     Sec. 11.  SNOWMOBILE FEES _ TRANSFER FOR
34   ENFORCEMENT PURPOSES.  There is transferred on July 1,
35   1996, from the fees deposited under section 321G.7 to
36   the fish and game protection fund and appropriated to
37   the department of natural resources for the fiscal
38   year beginning July 1, 1996, and ending June 30, 1997,
39   the following amount, or so much thereof as is
40   necessary, to be used for the purpose designated:
41     For the purpose of enforcing snowmobile laws as
42   part of the state snowmobile program administered by
43   the department of natural resources:
44   	$    100,000
45     Sec. 12.  VESSEL FEES _ TRANSFER FOR ENFORCEMENT
46   PURPOSES.  There is transferred on July 1, 1996, from
47   the fees deposited under section 462A.52 to the fish
48   and game protection fund and appropriated to the
49   department of natural resources for the fiscal year
50   beginning July 1, 1996, and ending June 30, 1997, the

Page   9

 1   following amount, or so much thereof as is necessary,
 2   to be used for the purpose designated:
 3     For the administration and enforcement of
 4   navigation laws and water safety:
 5   	$  1,250,000
 6     Of the amount appropriated in this section, $50,000
 7   may be used for purposes of controlling and
 8   eradicating eurasian milfoil.
 9     Notwithstanding section 8.33, moneys transferred
10   pursuant to this section which are unencumbered or
11   unobligated on June 30, 1997, shall be transferred on
12   July 1, 1997, to the special conservation fund
13   established by section 462A.52 to be used as provided
14   in that section, and shall not revert as provided in
15   section 8.33.
16            RESOURCES ENHANCEMENT AND PROTECTION
17     Sec. 13.  GENERAL APPROPRIATION.  Notwithstanding
18   the amount of the standing appropriation from the
19   general fund of the state under section 455A.18,
20   subsection 3, there is appropriated from the general
21   fund of the state to the Iowa resources enhancement
22   and protection fund, in lieu of the appropriation made
23   in section 455A.18, for the fiscal year beginning July
24   1, 1996, and ending June 30, 1997, the sum of
25   $8,000,000, of which all moneys shall be allocated as
26   provided in section 455A.19.
27                   RELATED APPROPRIATIONS
28     Sec. 14.  APPROPRIATION FROM ORGANIC NUTRIENT
29   MANAGEMENT FUND.  There is appropriated from the
30   organic nutrient management fund to the following
31   entities in the fiscal year beginning July 1, 1996,
32   and ending June 30, 1997, the following amounts, or so
33   much thereof as is necessary, to be used for the
34   purpose designated:
35     To Iowa state university for supporting odor
36   control applications of animal feeding operations,
37   including confinement feeding operations, regulated by
38   the department of natural resources pursuant to
39   chapter 455B:
40   	$    500,000
41     1.  Moneys provided under this section for odor
42   control applications of animal feeding operations
43   shall be provided on a dollar-for-dollar match with an
44   individual owner or operator and shall not exceed the
45   amount actually spent by or on behalf of the owner or
46   operator for odor control.
47     2.  Notwithstanding section 8.33, moneys provided
48   under this subsection for odor control applications of
49   animal feeding operations shall not revert to the
50   organic nutrient management fund but shall remain

Page  10

 1   available for use as provided in this subsection
 2   during the fiscal year beginning July 1, 1997, and
 3   ending June 30, 1998.  The moneys appropriated in this
 4   section which remain unexpended or unobligated on June
 5   30, 1998, shall revert to the organic nutrient
 6   management fund on August 31, 1998.
 7     Sec. 15.  MULTIFLORA ROSE ERADICATION.
 8     1.  There is appropriated from the general fund of
 9   the state to Iowa state university for the fiscal year
10   beginning July 1, 1996, and ending June 30, 1997, the
11   following amount, or so much thereof as is necessary,
12   to be used for the purpose designated:
13     For supporting multiflora rose eradication research
14   and projects:
15   	$     25,000
16     2.  Notwithstanding 1995 Iowa Acts, chapter 216,
17   section 19, subsection 2, moneys allocated pursuant to
18   1995 Iowa Acts, chapter 216, section 19, subsection 1,
19   paragraph "d", which remain unencumbered or
20   unobligated on June 30, 1996, shall not revert
21   pursuant to section 8.33, but shall remain available
22   to Iowa state university for purposes of supporting
23   multiflora rose eradication research and projects, for
24   subsequent fiscal years.
25     Sec. 16.  NONREVERSION OF MONEYS ALLOCATED TO IOWA
26   GRAIN QUALITY INITIATIVE.  Notwithstanding 1995 Iowa
27   Acts, chapter 216, section 19, subsection 2, moneys
28   allocated pursuant to 1995 Iowa Acts, chapter 216,
29   section 19, subsection 1, paragraph "f", subparagraph
30   (1), which remain unencumbered or unobligated on June
31   30, 1996, shall not revert pursuant to section 8.33,
32   but shall remain available to Iowa state university
33   for purposes of supporting the Iowa cooperative
34   extension service in agriculture and home economics in
35   establishing and administering an Iowa grain quality
36   initiative in subsequent fiscal years.
37     Sec. 17.  TRANSFERS OF MONEYS REQUIRED TO BE
38   DEPOSITED IN THE WATER PROTECTION FUND.
39   Notwithstanding section 161C.4 and the reversion and
40   allocation provisions in section 455A.19, subsection
41   1, paragraph "c", of the unencumbered and unobligated
42   moneys remaining, which are required to be deposited
43   in the water protection fund created in section
44   161C.4, as provided in section 455A.19, subsection 1,
45   paragraph "c", the following amount shall be
46   transferred first from moneys required to be deposited
47   in the water protection practices account, and if
48   necessary from moneys required to be deposited in the
49   water quality protection projects account, which shall
50   be used for the following purposes:

Page  11

 1     To the Loess Hills development and conservation
 2   authority, for deposit in the Loess Hills development
 3   and conservation fund created in section 161D.2 for
 4   the purposes specified in section 161D.1:
 5   	$    400,000
 6     Sec. 18.  REVENUE ADMINISTERED BY THE IOWA
 7   COMPREHENSIVE UNDERGROUND STORAGE TANK FUND BOARD _
 8   TRANSFER.  There is appropriated from the unassigned
 9   revenue fund administered by the Iowa comprehensive
10   underground storage tank fund board, to the department
11   of natural resources for the fiscal year beginning
12   July 1, 1996, and ending June 30, 1997, the following
13   amount, or so much thereof as is necessary, to be used
14   for the purpose designated:
15     For administration expenses of the underground
16   storage tank section of the department of natural
17   resources:
18   	$     75,000
19     Sec. 19.  TRANSFER _ AIR QUALITY.  For the fiscal
20   year beginning July 1, 1996, and ending June 30, 1997,
21   the department of natural resources shall transfer up
22   to $430,000 from the hazardous substance remedial fund
23   created pursuant to section 455B.423, to support
24   purposes related to carrying out the duties of the
25   commission under section 455B.133, or the director
26   under section 455B.134, or for carrying out the
27   provisions of chapter 455B, division II.
28                        MISCELLANEOUS
29     Sec. 20.  DOLLIVER MEMORIAL STATE PARK _ BRIDGE
30   CONSTRUCTION PROHIBITED _ ROAD EXPENSES SHARED.
31     1.  The department shall not construct a bridge at
32   or near the historic ford of a stream across a
33   secondary road in Dolliver memorial state park.  The
34   department may make repairs or improvements at the
35   historic ford to provide for flood control.
36     2.  The department, pursuant to section 306.4,
37   shall enter into an agreement to match the
38   expenditures, not to exceed fifty percent of the cost
39   of each project, with the board of supervisors for the
40   reconstruction, repair, and maintenance of the
41   secondary road entering and exiting Dolliver memorial
42   state park.
43     Sec. 21.  WITHDRAWAL FROM THE AGRICULTURAL GRAIN
44   MARKETING COMPACT _ REPEAL.  Pursuant to article VI
45   of the agricultural grain marketing compact, the state
46   of Iowa withdraws from the compact by enacting this
47   section repealing the compact.  Notwithstanding this
48   section, the state retains its membership in the
49   compact and shall continue to function under the
50   compact as if it were in effect, until one year

Page  12

 1   following the effective date of this section and
 2   notification of withdrawal by the governor of this
 3   state to the interstate agricultural grain marketing
 4   commission.
 5     Sec. 22.  STATE NURSERIES.  Notwithstanding section
 6   17A.2, subsection 10, paragraph "g", the department of
 7   natural resources shall adopt administrative rules
 8   establishing a range of prices of plant material grown
 9   at the state forest nurseries to cover all expenses
10   related to the growing of the plants.
11     1.  The department shall develop programs to
12   encourage the wise management and preservation of
13   existing woodlands and shall continue its efforts to
14   encourage forestation and reforestation on private and
15   public lands in the state.
16     2.  The department shall encourage a cooperative
17   relationship between the state forest nurseries and
18   private nurseries in the state in order to achieve
19   these goals.
20     Sec. 23.  TRANSFER OF MONEYS OR POSITIONS; CHANGES
21   IN TABLES OF ORGANIZATION _ NOTIFICATION.  In
22   addition to the requirements of section 8.39, in each
23   fiscal quarter, the department of agriculture and land
24   stewardship and the department of natural resources
25   shall notify the chairpersons, vice chairpersons, and
26   ranking members of the joint appropriations
27   subcommittee on agriculture and natural resources for
28   the previous fiscal quarter of any transfer of moneys
29   or full-time equivalent positions made by either
30   department which is not authorized in this Act, or any
31   permanent position added to or deleted from either
32   department's table of organization.
33     Sec. 24.  AIR QUALITY PROGRAM _ NONGENERAL FUND
34   SUPPORT.  The department of natural resources for the
35   fiscal year beginning July 1, 1996, and ending June
36   30, 1997, shall not use moneys appropriated from the
37   general fund of the state pursuant to this Act, to
38   support any purpose related to carrying out the duties
39   of the commission under section 455B.133 or the
40   director under section 455B.134, or for carrying out
41   the provisions of chapter 455B, division II.
42     Notwithstanding section 455B.133B, the department
43   may use moneys deposited in the air contaminant source
44   fund created in section 455B.133B during the fiscal
45   year beginning July 1, 1996, and ending June 30, 1997,
46   for any purpose related to carrying out the duties of
47   the commission under section 455B.133 or the director
48   under section 455B.134, or for carrying out the
49   provisions of chapter 455B, division II.
50     Sec. 25.  STUDY OF LOCATING FIELD OFFICE IN NORTH

Page  13

 1   CENTRAL DISTRICT.  The department of natural resources
 2   shall conduct a study of the feasibility of locating a
 3   field office in the department's north central
 4   district.  On or before January 1, 1997, the
 5   department of natural resources shall submit a report
 6   including findings and recommendations resulting from
 7   the study to the committees of the general assembly
 8   which have jurisdiction over natural resources.
 9     Sec. 26.  NATIVE AMERICAN WAR MEMORIAL.  The
10   department of natural resources may purchase, with
11   funds which become available under chapter 465A for
12   the fiscal year beginning July 1, 1996, and ending
13   June 30, 1997, lands on which to locate a native
14   American war memorial.
15     Sec. 27.  DEPARTMENTAL INFORMATION REQUIRED.
16     1.  The department of agriculture and land
17   stewardship and the department of natural resources,
18   in cooperation as necessary with the department of
19   management and the department of personnel, shall
20   provide a list to the legislative fiscal bureau, on a
21   quarterly basis, of all permanent positions added to
22   or deleted from the departments' table of organization
23   in the previous fiscal quarter.  This list shall
24   include at least the position number, salary range,
25   projected funding source or sources of each position,
26   and the reason for the addition or deletion.  The
27   legislative fiscal bureau may use this information to
28   assist in the establishment of the full-time
29   equivalent position limits authorized in law for the
30   departments.
31     2.  The department of natural resources shall
32   provide the legislative fiscal bureau information and
33   financial data by cost center, on at least a monthly
34   basis, relating to the indirect cost accounting
35   procedure, the amount of funding from each funding
36   source for each cost center, and the internal budget
37   system used by the department.  The information shall
38   include but is not limited to financial data covering
39   the department's budget by cost center and funding
40   source prior to the start of the fiscal year, and to
41   the department's actual expenditures by cost center
42   and funding source after the accounting system has
43   been closed for that fiscal year.
44     3.  The department of agriculture and land
45   stewardship shall provide the legislative fiscal
46   bureau information and financial data on at least a
47   monthly basis, relating to the internal budget system
48   used by the department.  The information shall include
49   but is not limited to financial data covering the
50   department's budget prior to the start of the fiscal

Page  14

 1   year, and to the department's actual expenditures
 2   after the accounting system has been closed for that
 3   fiscal year.
 4     Sec. 28.  TRUST FUND INFORMATION.  The department
 5   of revenue and finance in cooperation with each
 6   appropriate agency shall track receipts to the general
 7   fund of the state which under law were previously
 8   collected to be used for specific purposes, or to be
 9   credited to, or be deposited to a particular account
10   or fund, as provided in section 8.60.
11     The department of revenue and finance and each
12   appropriate agency shall prepare reports detailing
13   revenue from receipts previously deposited into each
14   of the funds.  A report shall be submitted to the
15   legislative fiscal bureau at least once for each
16   three-month period as designated by the legislative
17   fiscal bureau.
18     Sec. 29.  SOIL AND WATER CONSERVATION.  The
19   division of soil conservation of the department of
20   agriculture and land stewardship shall establish a
21   voluntary financial incentive program under section
22   161A.73 which provides for the allocation of cost-
23   share moneys as financial incentives for the same
24   purposes that are supported from the soil and water
25   enhancement account of the resources enhancement and
26   protection fund as provided in section 455A.19, or by
27   the water protection practices account of the water
28   protection fund established pursuant to section
29   161C.4.  The financial incentives shall not exceed
30   fifty percent of the estimated cost of establishing
31   the practices, or fifty percent of the actual cost,
32   whichever is less.
33     Sec. 30.  PREFERENCE PROVIDED _ PERSONS MEETING
34   ELIGIBILITY REQUIREMENTS OF THE GREEN THUMB PROGRAM.
35   In its employment of persons in temporary positions in
36   conservation and outdoor recreation, the department of
37   natural resources shall give preference to persons
38   meeting eligibility requirements for the green thumb
39   program under section 15.227 and to persons working
40   toward an advanced education in natural resources and
41   conservation.
42     Sec. 31.  Section 14A.1, Code 1995, is amended to
43   read as follows:
44     14A.1  DEPUTIES.
45     The secretary, auditor, and treasurer of state,
and
46   secretary of agriculture may each appoint, in writing,
47   any person, except one holding a state office, as
48   deputy, for whose acts the appointing officer shall be
49   responsible, and from whom the appointing officer
50   shall require bond, which appointment and bond must be

Page  15

 1   approved by the officer having the approval of the
 2   principal's bond, and such appointment may be revoked
 3   in the same manner.  The appointment and revocation
 4   shall be filed with and kept by the secretary of
 5   state.  The state shall pay the reasonable cost of the
 6   bonds required by this section.
 7     Sec. 32.  Section 159.14, Code 1995, is amended to
 8   read as follows:
 9     159.14  BONDS.
10     The secretary shall require every inspector or
11   employee who collects fees or handles funds belonging
12   to the state to give an official bond, properly
13   conditioned and signed by sufficient sureties, in a
14   sum to be fixed by the secretary, which bond shall be
15   approved by the secretary and filed in the office of
16   the secretary of state.  This section shall not apply
17   to the deputy secretary of agriculture.  The state
18   shall pay the reasonable cost of the bonds required by
19   this section.
20     Sec. 33.  REPEAL.  Chapter 183, Code 1995, is
21   repealed.
22     Sec. 34.  EFFECTIVE DATES.  Section 15, subsection
23   2, and sections 16, 21, and 33 of this Act, being
24   deemed of immediate importance, take effect upon
25   enactment."
26     2.  Title page, by striking lines 2 and 3 and
27   inserting the following:  "providing for
28   appropriations, and providing effective dates."

Schrader of Marion offered amendment H-5513, to the committee
amendment H-5482, filed by him and Koenigs as follows:

H-5513

 1     Amend the amendment, H-5482, to Senate File 2446,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 1, line 18, by striking the figure
 5   "1,586,111" and inserting the following:  "1,788,434".
 6     2.  Page 1, line 19, by striking the figure
 7   "41.45" and inserting the following:  "45.45".
Carroll of Poweshiek in the chair at 4:10 p.m.
Schrader of Marion moved the adoption of amendment H-5513, to
the committee amendment H-5482.
Roll call was requested by Schrader of Marion and Murphy of
Dubuque.
Rule 75 was invoked.
On the question "Shall amendment H-5513, to the committee
amendment H-5482, be adopted?" (S.F. 2446)
The ayes were, 37:

Baker          	Bell           	Bernau         	Brand         
		Branstad       	Burnett        	Cataldo  	Cohoon        
		Connors        	Doderer        	Drees          	Fallon        
		Garman         	Harper         	Holveck        	Jochum   
Koenigs        	Kreiman        	Larkin         	Mascher       
		May            	McCoy          	Mertz          	Moreland      
	Mundie         	Murphy         	Myers          	Nelson, L.     
 	O'Brien        	Ollie          	Osterhaus      	Schrader      
	Shoultz        	Taylor         	Warnstadt      	Weigel        
		Witt           	
The nays were, 58:

Arnold         	Blodgett       	Boggess        	Bradley       
	Brauns                	Churchill      	Coon           	Corbett,
Spkr.   	Cormack        	Daggett        	Dinkla         	Disney 
       		Drake          	Eddie          	Ertl           	Gipp   
       		Greig          	Greiner        	Gries          	Grubbs 
       		Hahn           	Halvorson      	Hammitt Barry  	Hanson 
       		Harrison       	Heaton         	Houser         	Hurley 
       		Huseman        	Jacobs         	Klemme         	Kremer 
       		Lamberti       	Larson         	Lord           	Main   
       		Martin         	Metcalf        	Meyer          	Millage
       		Nelson, B.      	Nutt           	Rants          	Renken
        		Salton         	Schulte        	Siegrist       	Sukup 
        		Teig           	Thomson        	Tyrrell        	Van
Fossen     	Van Maanen     	Vande Hoef     	Veenstra      
	Weidman        	Welter         	Carroll, 
 	 Presiding
Absent or not voting, 5:

Boddicker      	Brammer        	Brunkhorst     	Grundberg     
	Wise           	
Amendment H-5513 lost.      

Koenigs of Mitchell asked and received unanimous consent that
amendment H-5572, to the committee amendment H-5482, be deferred.
Koenigs of Mitchell asked and received unanimous consent that
amendment H-5628, to the committee amendment H-5482, be deferred.
Garman of Story offered amendment H-5536, to the committee
amendment H-5482, filed by her. Division was requested as
follows:

H-5536

 1     Amend the amendment, H-5482, to Senate File 2446,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:

H_5536A

 4     1.  Page 1, line 19, by striking the figure
 5   "41.45" and inserting the following:  "42.45".
H_5536B

 6     2.  Page 4, by striking lines 7 through 43.

H_5536A
 7     3.  Page 5, by striking lines 36 through 40.
 8     4.  By striking page 14, line 42, through page 15,
 9   line 19.
10     5.  By renumbering as necessary.
The House stood at ease at 4:32 p.m., until the fall of the
gavel.
The House resumed session at 5:40 p.m., Speaker Corbett in the
chair.
Garman of Story moved the adoption of amendment H-5536A, to the
committee amendment H-5482.
Roll call was requested by Connors of Polk and Schrader of
Marion.
On the question "Shall amendment H-5536A, to the committee
amendment H-5482, be adopted?" (S.F. 2446)
The ayes were, 38:

Baker          	Bell           	Brand          	Burnett       
		Carroll        	Cataldo        	Cohoon         	Connors       
	Doderer        	Drees          	Fallon         	Garman        
	Harper         	Harrison       	Holveck        	Jochum        
	Koenigs        	Kreiman        	Larkin         	Mascher       
		May            	McCoy          	Mertz          	Moreland      
	Mundie         	Murphy         	Myers          	Nelson, L.     
 	O'Brien        	Ollie          	Osterhaus      	Schrader      
	Shoultz        	Taylor         	Warnstadt      	Weigel        
		Wise           	Witt           	
The nays were, 56:

Arnold	Boggess        	Branstad       	Brauns        
	Brunkhorst     	Churchill      	Coon                  	Cormack 
      		Daggett        	Disney         	Drake          	Eddie   
      		Ertl           	Gipp           	Greig          	Greiner 
      		Gries          	Grubbs         	Grundberg      	Hahn    
      		Halvorson      	Hammitt Barry  	Hanson         	Heaton  
      	Houser         	Hurley         	Huseman        	Jacobs   
     	Klemme         	Kremer         	Lamberti       	Larson    
    		Lord           	Main           	Martin         	Metcalf   
    	Meyer          	Millage        	Nelson, B.      	Nutt      
    		Rants          	Renken         	Salton         	Schulte   
    		Siegrist       	Sukup          	Teig           	Thomson   
    	Tyrrell        	Van Fossen     	Van Maanen     	Vande Hoef 
   	Veenstra       	Weidman        	Welter         	Mr. Speaker 
 		 	  Corbett
Absent or not voting, 6:

Bernau         	Blodgett       	Boddicker      	Bradley       
	Brammer        	Dinkla         	
Amendment H-5536A lost.
Mertz of Kossuth offered the following amendment H-5614, to the
committee amendment H-5482, filed by Mertz, et. al., and moved
its adoption:

H-5614

 1     Amend the amendment, H-5482, to Senate File 2446,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 2, line 21, by striking the figure
 5   "875,475" and inserting the following:  "959,475".
 6     2.  Page 2, by inserting after line 46 the
 7   following:
 8     "(   )  Of the amount appropriated in this
 9   paragraph "a", $25,000 shall be used for inspections
10   of bottled water sold commercially within the state."
11     3.  By renumbering as necessary.
Roll call was requested by Doderer of Johnson and Mascher of
Johnson.
On the question "Shall amendment H-5614, to the committee
amendment H-5482, be adopted?" (S.F. 2446)
The ayes were, 35:

Arnold         	Baker          	Bell           	Brand  		Burnett
       	Cataldo        	Cohoon         	Connors        	Doderer 
      	Drees          	Fallon         	Harper         	Holveck  
     	Jochum         	Koenigs        	Kreiman        		Larkin   
     	Mascher        	May            	McCoy          		Mertz    
     	Moreland       	Mundie         	Murphy  		Myers         
	Nelson, L.       	O'Brien        	Ollie          		Osterhaus   
  	Schrader       	Taylor         	Warnstadt      	Weigel       
 	Wise           	Witt           	
The nays were, 58:

Boggess        	Branstad       	Brauns         	Carroll       
	Churchill      	Coon                  	Cormack        	Daggett 
      		Dinkla         	Disney         	Drake          	Eddie   
      		Ertl           	Garman         	Gipp           	Greig   
      	Greiner        	Gries          	Grubbs         	Grundberg
	Hahn           	Halvorson	Hammitt Barry  	Hanson        
		Harrison       	Heaton         	Houser         	Hurley 
        		Huseman        	Jacobs         	Klemme         	Kremer
        		Lamberti       	Larson         	Lord           	Main  
        		Martin         	Metcalf        	Meyer         
	Millage        		Nelson, B.      	Nutt           	Rants        
 	Renken         		Salton         	Schulte        	Siegrist     
 	Sukup          		Teig           	Thomson        	Tyrrell      
 	Van Fossen     	Van Maanen     	Vande Hoef     	Veenstra      
	Weidman        	Welter         	Mr. Speaker 					  Corbett
Absent or not voting, 7:

Bernau         	Blodgett       	Boddicker      	Bradley       
	Brammer        	Brunkhorst     	Shoultz        	
Amendment H-5614 lost.
Hahn of Muscatine offered the following amendment H-5640, to the
committee amendment H-5482, filed by him and requested division
as follows:

H-5640

 1     Amend the amendment, H-5482, to Senate File 2446,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:

H_5640A

 4     1.  Page 2, line 34, by striking the word
 5   "laboratory" and inserting the following:  "field".
 6     2.  Page 2, line 36, by striking the word "shall"
 7   and inserting the following:  "may".

H_5640B

 8     3.  Page 13, line 10, by striking the word "may"
 9   and inserting the following:  "shall".
Hahn of Muscatine moved the adoption of amendment H-5640A, to
the committee amendment H-5482.
Amendment H-5640A was adopted.
Mertz of Kossuth offered the following amendment H-5615, to the
committee amendment H-5482, filed by Mertz, et. al., and moved
its adoption:

H-5615

 1     Amend the amendment, H-5482, to Senate File 2446,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 3, line 24, by striking the figure
 5   "6,418,606" and inserting the following:  "6,750,850".
Roll call was requested by Schrader of Marion and Murphy of
Dubuque.
On the question "Shall amendment H-5615, to the committee
amendment H-5482, be adopted?" (S.F. 2446)
The ayes were, 34:

Baker          	Bell           	Bernau         	Brand         
		Burnett        	Cataldo        	Cohoon         	Connors       
	Doderer        	Drees          	Fallon         	Harper        
	Holveck        	Jochum         	Koenigs        	Kreiman       
		Larkin         	Mascher        	May            	Mertz         
		Moreland       	Mundie         	Murphy         	Myers         
		Nelson, L.       	Ollie          	Osterhaus      	Schrader    
  	Shoultz        	Taylor         	Warnstadt      	Weigel       
 		Wise           	Witt           	
The nays were, 61:

Arnold         	Blodgett       	Boggess        	Bradley       
		Branstad       	Brauns         	Brunkhorst     	Carroll       
		Coon                  	Cormack        	Daggett        	Dinkla 
       		Disney         	Drake          	Eddie          	Ertl   
       		Garman         	Gipp           	Greig          	Greiner
       		Gries          	Grubbs         	Grundberg      	Hahn   
       		Halvorson      	Hammitt Barry  	Hanson        
	Harrison       	Heaton         	Houser         	Hurley        
	Huseman        	Jacobs         	Klemme         	Kremer        
	Lamberti       		Larson         	Lord           	Main          
	Martin         		Metcalf        	Meyer          	Millage       
	Nelson, B.      	Nutt           	Rants          	Renken        
	Salton         	Schulte        	Siegrist 	Sukup          	Teig 
         		Thomson        	Tyrrell        	Van Fossen     	Van
Maanen     	Vande Hoef     	Veenstra       	Weidman       
	Welter         		Mr. Speaker  					  Corbett
Absent or not voting, 5:

Boddicker      	Brammer        	Churchill      	McCoy         
	O'Brien        	      	
Amendment H-5615 lost.

Garman of Story called up for consideration amendment H-5536B,
to the committee amendment H-5482, found on page 1073 of the
House Journal.
Rants of Woodbury in the chair at 7:04 p.m.
Garman of Story moved the adoption of amendment H-5536B, to the
committee amendment H-5482.
Roll call was requested by Schrader of Marion and Murphy of
Dubuque
Rule 75 was invoked.
On the question "Shall amendment H-5536B, to the committee
amendment H-5482, be adopted?" (S.F.2446)
The ayes were, 60:

Arnold	Baker          	Bell           	Bernau         		Boggess 
      	Bradley        	Brand          	Branstad       		Burnett 
      	Carroll        	Cataldo        	Cohoon         		Connors 
      	Dinkla         	Doderer        	Drees          		Ertl    
      	Fallon         	Garman         	Gipp           		Gries   
      	Grundberg      	Harper         	Harrison       	Heaton   
     	Holveck        	Hurley         	Huseman        	Jacobs    
    	Jochum         	Klemme         	Koenigs        		Kreiman   
    	Lamberti       	Larkin         	Lord           		Main      
    	Martin         	Mascher        	May            	McCoy      
   	Mertz          	Metcalf        	Moreland       	Mundie      
  	Murphy         	Myers          	Nelson, B.      	Nelson, L.  
    	Nutt           	Ollie          	Osterhaus      	Schrader   
   	Shoultz        	Taylor         	Warnstadt      	Weidman     
  	Weigel         	Wise           	Witt           	
The nays were, 36:

Brauns         	Brunkhorst     	Churchill      	Coon          
		Corbett, Spkr.        	Cormack        	Daggett        	Disney 
       		Drake          	Eddie          	Greig          	Greiner
       	Grubbs         	Hahn           	Halvorson      	Hammitt
Barry 	Hanson         	Houser         	Kremer         	Larson   
     	Meyer          	Millage                 	Renken        
	Salton         	Schulte        	Siegrist       	Sukup         
	Teig           		Thomson        	Tyrrell        	Van Fossen    
	Van Maanen     	Vande Hoef     	Veenstra       	Welter        
	Rants,  					  Presiding
Absent or not voting, 4:

Blodgett       	Boddicker      	Brammer        	O'Brien        	
Amendment H-5536B was adopted.
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 2446 be deferred and that the bill be placed on
the unfinished business calendar.
(The committee amendment H-5482 pending.)
SENATE FILE 2160 REFERRED
The Speaker announced that Senate File 2160, presently on the
calendar, was referred to committee on appropriations.
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 March 27, 1996, passed the following bill in
which the concurrence of the Senate was asked:
House File 308, a bill for an act relating to the election of
workers' compensation coverage by a limited liability company
member.
Also: That the Senate has on March 27, 1996, amended and passed
the following bill in which the concurrence of the House is
asked:
House File 2390, a bill for an act providing for the branding of
livestock.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2077, a bill for an act relating to a property tax
exemption for a person who is totally disabled while on active
duty with the armed forces of the United States and providing an
effective date.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2221, a bill for an act relating to alternate energy
production and purchasing requirements, and providing an
applicability provision and an effective date.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2357, a bill for an act relating to school finance
providing for an increase in the amount certified for levy in
excess of that previously authorized for bonded indebtedness
repayment.
Also: That the Senate has on March 27, 1996, refused to concur
in the House amendment to the following bill in which the
concurrence of the Senate was asked:
Senate File 2443, a bill for an act appropriating funds to the
department of economic development, the Iowa finance authority,
certain board of regents institutions, the public employment
relations board, and the department of employment services, and
making related statutory changes.
Also: That the Senate has on March 27, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2452, a bill for an act relating to the
modernization of the vital statistics process and establishing a
fee.
JOHN F. DWYER, Secretary
EXPLANATION OF VOTE
I was temporarily absent from the House chamber the morning of
March 27, 1996. Had I been present, I would have voted "aye" on
Senate Files 2013, 2062, 2122, 2127, 2235, 2282 and "aye" on
amendments H-5652 and H-5662, to Senate File 2449,  and "nay" on
amendments H-5653 and H-5670 to Senate File 2449. 
ARNOLD of Lucas
PRESENTATION OF VISITORS
Holveck of Polk presented to the House the Honorable Janet
Adams, former member of the House representing Hamilton County.
The Speaker announced that the following visitors were present
in the House chamber:
Twelve Government students from Monticello High School,
Monticello, accompanied by Frank Frostestad.  By Welter of Jones.
Thirty-eight junior students from Underwood Community High
School, Underwood, accompanied by Nick Benling, Kathy Knott, Don
Knudtson, Shelley Olberding and Craig Riemersma.  By Drake of
Pottawattamie.
Fourty-four fourth and fifth grade students from Gunn
Elementary, Council Bluffs, accompanied by Mrs. Heithoff and Dr.
Ann Fox.  By Nelson of Pottawattamie.
High School students from Highland Community Schools, Riverside,
accompanied by Mrs. Brennaman.  By Greiner of Washington, Heaton
of Henry and Brauns of Muscatine.
COMMUNICATION RECEIVED
The following communication was received and filed in the office
of the Chief Clerk:
IOWA COLLEGE STUDENT AID COMMISSION
The 1993-1994 Information Digest of Postsecondary Education in
Iowa, pursuant to Chapter 261, Code of Iowa.
CERTIFICATES OF RECOGNITION
MR. SPEAKER: The Chief Clerk of the House respectfully reports
that certificates of recognition have been issued as follows.
ELIZABETH A. ISAACSON
Chief Clerk of the House      
1996\364	Commander R.L. "Reinie" Dobson, Keokuk - For being
selected to attend the F.B.I. National Academy.
1996\365	Mark Rial, Ft. Dodge - For winning the Class 3A
championship in the 125 lb. weight class of the 1996 State
Wrestling Tournament.
1996\366	David J. Sohl, Hinton - For attaining the rank of Eagle
Scout, the highest rank in the Boy Scouts of America.
1996\367	Chad A. Greene, Hinton - For attaining the rank of
Eagle Scout, the highest rank in the Boy Scouts of America.

COMMITTEE RECOMMENDATIONS
MR. SPEAKER: The Chief Clerk of the House respectfully reports
that the following committee recommendations have been received
and are on file in the office of the Chief Clerk.
ELIZABETH A. ISAACSON
Chief Clerk of the House
COMMITTEE ON ADMINISTRATION AND RULES
Committee Resolution, a resolution relating to an annual budget
for the daily operations of the House of Representatives.
Fiscal Note is not required.
Recommended Amend and Do Pass March 26, 1996.
Committee Resolution, a concurrent resolution to approve and
confirm the appointment of the citizens' aide.
Fiscal Note is not required.
Recommended Do Pass March 26, 1996.
COMMITTEE ON APPROPRIATIONS
Senate File 2195, a bill for an act relating to the Iowa
communications network by providing for state ownership of a
Part III connection and for the connection and support of
certain Part III users, making appropriations, and providing
effective dates.
Fiscal Note is not required.
Recommended Amend and Do Pass with amendment H_5683 March 27,
1996.
Committee Bill (Formerly House Study Bill 750), appropriating
federal funds made available from federal block grants and other
federal grants, allocating portions of federal block grants, and
providing procedures if federal funds are more or less than
anticipated or if federal block grants are more or less than
anticipated or if categorical grants are consolidated into new
or existing block grants, and providing an effective date.
Fiscal Note is not required.
Recommended Amend and Do Pass March 27, 1996. 
COMMITTEE ON ENVIRONMENTAL PROTECTION
Senate File 2301, a bill for an act relating to lead abatement
and inspection, training and certification requirements, and
providing penalties.
Fiscal Note is not required.
Recommended Do Pass March 20, 1996. 
RESOLUTIONS FILED
HCR 122, by Schrader, a concurrent resolution to designate March
29, 1996, Iowa State Flag Day.
Laid over under Rule 25.
HCR 123, by committee on administration and rules, a concurrent
resolution to approve and confirm the appointment of the
citizens' aide.
Laid over under Rule 25.
HR 105, by Burnett and Bernau, a resolution congratulating the
Iowa State Cyclones Men's Basketball Team.
Laid over under Rule 25.
HR 106, by committee on administration and rules, a resolution
relating to an annual budget for the daily operations of the
House of Representatives.
Laid over under Rule 25.
SCR 113, by Drake, a concurrent resolution declaring Miss Iowa
an official hostess for the State of Iowa.
Laid over under Rule 25.
SCR 116, by Kibbie, a concurrent resolution to urge the federal
government to restore requirements for the reporting of
information regarding cattle fed in Iowa feedlots.

Referred to committee on  agriculture.

AMENDMENTS FILED

H_5656	S.F.	2446	Garman of Story
H_5657	S.F.	2446	Hahn of Muscatine					Mertz of Kossuth
H_5658	S.F.	2446	Weigel of Chickasaw
H_5659	S.F.	2446	Weigel of Chickasaw
H_5660	S.F.	2446	Koenigs of Mitchell
H_5661	S.F.	2446	Brand of Benton
H_5663	S.F.	2446	Sukup of Franklin
H_5664	H.F.	2304	Brauns of Muscatine
H_5665	S.F.	2399	Kreiman of Davis
H_5666	S.F.	2406	Kreiman of Davis
H_5667	S.F.	2448	Blodgett of Cerro Gordo
H_5669	S.F.	2446	Hahn of Muscatine
H_5671	H.F.	2298	Jacobs of Polk
H_5672	H.F.	2298	Jacobs of Polk
H_5673	H.F.	2416	Garman of Story
H_5674	S.F.	2186	Harper of Black Hawk
H_5675	S.F.	2324	Boddicker of Cedar
H_5676	S.F.	2399	Cataldo of Polk						Boddicker of
Cedar					Houser of Pottawattamie
			Moreland of Wapello
H_5677	H.F.	 514	Senate Amendment
H_5678	S.F.	2301	Rants of Woodbury
H_5679	S.F.	2448	Weigel of Chickasaw
H_5680	S.F.	2448	Weigel of Chickasaw
H_5681	S.F.	2448	Murphy of Dubuque
H_5682	S.F.	2446	Hahn of Muscatine
H_5683	S.F.	2195	Committee on 
 			Appropriations
H_5684	H.F.	2390	Senate Amendment
H_5685	H.F.	2298	Metcalf of Polk
H_5686	H.F.	2298	Metcalf of Polk
H_5687	H.F.	2298	Metcalf of Polk
H_5688	H.F.	2298	Metcalf of Polk
H_5689	H.F.	2298	Metcalf of Polk
H_5690	H.F.	2298	Metcalf of Polk
H_5691	H.F.	2298	Metcalf of Polk
H_5692	H.F.	2298	Metcalf of Polk
H_5693	H.F.	2298	Metcalf of Polk
H_5694	H.F.	2298	Metcalf of Polk
H_5695	H.F.	2298	Metcalf of Polk
H_5696	H.F.	2298	Metcalf of Polk
H_5697	H.F.	2298	Metcalf of Polk
H_5698	H.F.	2481	Shoultz of Black Hawk
H_5699	H.F.	2481	Shoultz of Black Hawk
H_5700	S.F.	  454	Witt of Black Hawk
			Carroll of Poweshiek
H_5701	S.F.	2448	Mascher of Johnson
			Mundie of Webster
H_5702	S.F.	2448	Mascher of Johnson
H_5703	S.F.	2448	Harrison of Scott
			Brunkhorst of Bremer
H_5704	S.F.	2448	Weigel of Chickasaw
	Murphy of Dubuque		Kreiman of Davis
	Mascher of Johnson		Brand of Benton
	Burnett of Story		Bernau of Story
	Witt of Black Hawk		Mundie of Webster
H_5705	S.F.	2147	Brunkhorst of Bremer
			Harrison of Scott
H_5706	S.F.	2375	Moreland of Wapello
H_5707	S.F.	2375	Kreiman of Davis
H_5708	S.F.	2448	Shoultz of Black Hawk
H_5709	S.F.	2448	Brand of Benton
H_5710	S.F.	2448	Brand of Benton
On motion by Siegrist of Pottawattamie, the House adjourned at
7:30 p.m., until 8:45 a.m., Thursday, March 28, 1996.      

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