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House Journal: Tuesday, April 30, 1996

One hundred fourteenth Calendar Day - Seventy-fifth Session Day

Hall of the House of Representatives
Des Moines, Iowa, Tuesday, April 30, 1996
The House met pursuant to adjournment at 9:07 a.m., Speaker
Corbett in the chair.
Prayer was offered by Mark Vander Tuig, Lutheran Church of the
Cross, Altoona.
The Journal of Monday, April 29, 1996 was approved.
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Blodgett of Cerro Gordo and Harrison of Scott, both on request
of Siegrist of Pottawattamie.
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 April 29, 1996, appointed the conference
committee to House File 2387, a bill for an act relating to the
office of secretary of state and the conduct of elections and
voter registration in the state and relating to corrective and
technical changes to Iowa's election laws, and providing an
effective date, and the members of the Senate are: The Senator
from Pottawattamie, Senator Gronstal, Chair; the Senator from
Boone, Senator Sorensen; the Senator from Polk, Senator Dearden;
the Senator from Clinton, Senator Rittmer and the Senator from
Muscatine, Senator Drake.
Also: That the Senate has on April 29, 1996, concurred in the
House amendment to the Senate amendment, and passed the
following bill in which the concurrence of the Senate was asked:
House File 2497, a bill for an act relating to the compensation
and benefits for public officials and employees and making
appropriations.
Also: That the Senate has on April 29, 1996, passed the
following bill in which the concurrence of the Senate was asked:
House File 2500, a bill for an act providing for the
modification or termination of certain testamentary trusts by
the court.
Also: That the Senate has on April 29, 1996, amended the House
amendment, concurred in the House amendment as amended, and
passed the following bill in which the concurrence of the House
is asked:
Senate File 2147, a bill for an act increasing the membership of
the Iowa telecommunications and technology commission.
Also: That the Senate has on April 29, 1996, adopted the
following resolution in which the concurrence of the House is
asked:
Senate Concurrent Resolution 106, a Senate concurrent resolution
commemorating the veterans of the United States armed forces who
fought and won the Battle of the Bulge during World War II.
JOHN F. DWYER, Secretary

ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(House File 2458)
Dinkla of Guthrie called up for consideration the report of the
conference committee on House File 2458 and the amendments
contained therein as follows:

REPORT OF THE CONFERENCE COMMITTEE
ON HOUSE FILE 2458
To the Speaker of the House of Representatives and the President
of the Senate:
We, the undersigned members of the conference committee
appointed to resolve the differences between the House of
Representatives and the Senate on House File 2458, a bill for An
Act relating to the right to appointed counsel or a public
defender, by relating to the eligibility for certain indigents,
the recovery of defense costs, and by restricting the right to
counsel for certain parents in child in need of assistance
cases, respectfully make the following report:
1.  That the House recedes from its amendment, S-5816.
2.  That the Senate recedes from its amendment, H-5922.
3.  That House File 2458, as amended, passed, and reprinted by
the House, is amended to read as follows:
1.  Page 1, by inserting after line 16 the following:
"Sec. ___.  Section 216A.136, unnumbered paragraph 1, as enacted
by 1996 Iowa Acts, House File 2448, section 2, if enacted, is
amended to read as follows:
The division shall maintain an Iowa statistical analysis center
for the purpose of coordinating with data resource agencies to
provide data and analytical information to federal, state, and
local governments, and assist agencies in the use of criminal
and juvenile justice data.  Notwithstanding any other provision
of state law, unless prohibited by federal law or regulation,
the division shall be granted access, for purposes of research
and evaluation, to criminal history records, official juvenile
court records, juvenile court social records, and any other data
collected or under control of the board of parole, department of
corrections, district departments of correctional services,
department of human services, judicial department, and
department of public safety.  However, intelligence data and
peace officer investigative reports maintained by the department
of public safety shall not be considered data for the purposes
of this section.  Any record, data, or information obtained by
the division under this section and the division itself are
subject to the federal and state confidentiality laws and
regulations which are applicable to the original record, data,
or information obtained by the division and to the original
custodian of the record, data, or information.  The access shall
include but is not limited to all of the following:
Sec.    .  Section 216A.136, subsection 4, as enacted by
1996 Iowa Acts, House File 2448, section 2, if enacted, is
amended to read as follows:
4.  Criminal history and intelligence data maintained under
chapter 692."
2.  By striking page 4, line 28, through page 5, line 12.
3.  Page 5, by inserting before line 13 the following:
"Sec.    .  NEW SECTION.  901A.1  CORRECTIONS CONTINUUM
-INTERMEDIATE CRIMINAL SANCTIONS PROGRAM.
1.  The corrections continuum consists of the following:
a.  LEVEL ONE.  Noncommunity-based corrections sanctions
including the following:
(1)  SELF-MONITORED SANCTIONS.  Self-monitored sanctions which
are not monitored for compliance including, but not limited to,
fines and community service.
(2)  OTHER THAN SELF-MONITORED SANCTIONS.  Other than
selfmonitored sanctions which are monitored for compliance by
other than the district department of correctional services
including, but not limited to, mandatory mediation, victim and
offender reconciliation, and noncommunity-based corrections
supervision.
b.  LEVEL TWO.  Probation and parole options consisting of the
following:
(1)  MONITORED SANCTIONS.  Monitored sanctions are
administrative supervision sanctions which are monitored for
compliance by the district department of correctional services
and include, but are not limited to, low-risk offenderdiversion
programs.
(2)  SUPERVISED SANCTIONS.  Supervised sanctions are regular
probation or parole supervision and any conditions established
in the probation or parole agreement or by court order.
(3)  INTENSIVE SUPERVISION SANCTIONS.  Intensive supervision
sanctions provide levels of supervision above sanctions in
subparagraph (2) but are less restrictive than sanctions under
paragraph "c" and include electronic monitoring, day reporting,
day programming, live-out programs for persons on work release
or who have violated chapter 321J, and institutional work
release under section 904.910.
c.  LEVEL THREE.  Quasi-incarceration sanctions. 
Quasiincarceration sanctions are those supported by residential
facility placement or twenty-four hour electronic monitoring
including, but not limited to, the following:
(1)  Residential treatment facilities.
(2)  Operating while intoxicated offender treatment facilities.
(3)  Work release facilities.
(4)  House arrest with electronic monitoring.
d.  LEVEL FOUR.  Short-term incarceration designed to be of
short duration, including, but not limited to, the following:
(1)  Twenty-one-day shock incarceration for persons who violate
chapter 321J.
(2)  Jail for less than thirty days.
(3)  Violators' facilities.
(4)  Prison with sentence reconsideration.
e.  LEVEL FIVE.  Incarceration which consists of the following:
(1)  Prison.
(2)  Jail for thirty days or longer.
2.  "Intermediate criminal sanctions program" means a program
structured around the corrections continuum in subsection 1,
describing sanctions and services available in each level of the
continuum in the district and containing the policies of the
district department of correctional services regarding placement
of a person in a particular level of sanction and the
requirements and conditions under which a defendant will be
transferred between levels in the corrections continuum under
the program.
3.  An intermediate criminal sanctions program shall consist of
only levels two, three, and sublevels one and three of level
four of the corrections continuum and shall be operated in
accordance with an intermediate criminal sanctions plan adopted
by the chief judge of the judicial district and the director of
the judicial district department of correctional services.  The
plan adopted shall be designed to reduce probation revocations
to prison through the use of incremental, community-based
sanctions for probation violations.
The plan shall be subject to rules adopted by the department of
corrections.  The rules shall include provisions for
transferring individuals between levels in the continuum.  The
provisions shall include a requirement that the reasons for the
transfer be in writing and that an opportunity for the
individual to contest the transfer be made available.
A copy of the program and plan shall be filed with the chief
judge of the judicial district, the department of corrections,
and the division of criminal and juvenile justice planning of
the department of human rights.
4.  a.  The district department of correctional services shall
place an individual committed to it under section 907.3 to the
sanction and level of supervision which is appropriate to the
individual based upon a current risk assessment evaluation. 
Placements may be to levels two and three of the corrections
continuum.  The district department may, with the approval of
the department of corrections, place an individual in a level
four violator facility established pursuant to section 904.207
only as a penalty for a violation of a condition imposed under
this section.
b.  The district department may transfer an individual along the
intermediate criminal sanctions program operated pursuant to
subsection 3 as necessary and appropriate during the period the
individual is assigned to the district department. However,
nothing in this section shall limit the district department's
ability to seek a revocation of the individual's probation
pursuant to section 908.11.
Sec.    .  Section 905.1, subsection 2, Code 1995, is
amended to read as follows:
2.  "Community-based correctional program" means correctional
programs and services, including but not limited to an
intermediate criminal sanctions program in accordance with the
corrections continuum in section 901A.1, designed
 to supervise and assist individuals who are charged with or
have been convicted of a felony, an aggravated misdemeanor or a
serious misdemeanor, or who are on probation or parole in lieu
of or as a result of a sentence of incarceration imposed upon
conviction of any of these offenses, or who are contracted to
the district department for supervision and housing while on
work release.
An intermediate criminal sanctions program shall be designed
by a district department in a manner that provides services in a
manner free of disparities based upon an individual's race or
ethnic origin.
Sec.    .  Section 907.3, subsection 1, unnumbered paragraph
1, Code Supplement 1995, is amended to read as follows:
With the consent of the defendant, the court may defer judgment
and may place the defendant on probation upon such
conditions as it may require.  Upon a showing that the defendant
is not co-operating cooperating with the program of
probation or is not responding to it, the court may withdraw the
defendant from the program, pronounce judgment, and impose any
sentence authorized by law.  Before taking such action, the
court shall give the defendant an opportunity to be heard on any
matter relevant to the proposed action.  Upon fulfillment of the
conditions of probation, the defendant shall be discharged
without entry of judgment.  Upon violation of the conditions of
probation, the court may proceed as provided in chapter 908.
Sec.    .  Section 907.3, subsection 2, Code Supplement
1995, is amended to read as follows:
2.  At the time of or after pronouncing judgment and with the
consent of the defendant, the court may defer the sentence and
assign the defendant to the judicial district department of
correctional services.  The court may assign the defendant to
supervision or services under section 901A.1 at the level of
sanctions which the district department determines to be
appropriate, if an intermediate criminal sanctions plan and
program has been adopted in the judicial district under section
901A.1.  However, the court shall not defer the sentence for a
violation of section 708.2A if the defendant has previously
received a deferred judgment or sentence for a violation of
section 708.2 or 708.2A which was issued on a domestic abuse
assault, or if similar relief was granted anywhere in the United
States concerning that jurisdiction's statutes which
substantially correspond to domestic abuse assault as provided
in section 708.2A.  In addition, the court shall not defer a
sentence if it is imposed for a conviction for or plea of guilty
to a violation of section 236.8 or for contempt pursuant to
section 236.8 or 236.14.  Upon a showing that the defendant is
not fulfilling the conditions of probation, the court may revoke
probation and impose any sentence authorized by law. Before
taking such action, the court shall give the defendant an
opportunity to be heard on any matter relevant to the proposed
action.  Upon violation of the conditions of probation, the
court may proceed as provided in chapter 908.
Sec.    .  Section 907.3, subsection 3, Code Supplement
1995, as amended by 1996 Iowa Acts, Senate File 2269, section 4,
is amended to read as follows:
3.  By record entry at the time of or after sentencing, the
court may suspend the sentence and place the defendant on
probation upon such terms and conditions as it may require
including commitment to an alternate jail facility or a
community correctional residential treatment facility for a
specific number of days to be followed by a term of probation as
specified in section 907.7, or commitment of the defendant to
the judicial district department of correctional services for
supervision 

or services under section 901A.1 at the level of sanctions which
the district department determines to be appropriate.  A
person so committed who has probation revoked shall be given
credit for such time served.  However, the court shall not
suspend the minimum term of two days imposed pursuant to section
708.2A, subsection 6, paragraph "a", or a sentence imposed under
section 708.2A, subsection 6, paragraph "b", and the court shall
not suspend a sentence imposed pursuant to section 236.8 or
236.14 for contempt.
Sec.    .  Section 907.6, Code 1995, is amended to read as
follows:
907.6  CONDITIONS OF PROBATION - REGULATIONS.
Probationers are subject to the conditions established by the
judicial district department of correctional services subject to
the approval of the court, and any additional reasonable
conditions which the court or district department may impose
to promote rehabilitation of the defendant or protection of the
community.  Conditions may include but are not limited to
adherence to regulations generally applicable to persons
released on parole and including requiring unpaid community
service as allowed pursuant to section 907.13."
4.  Page 6, by inserting after line 18 the following:
"Sec.    .  Section 910.4, Code Supplement 1995, is amended
to read as follows:
910.4  CONDITION OF PROBATION - PAYMENT PLAN.
1.  When restitution is ordered by the sentencing court and
the offender is placed on probation, restitution shall be a
condition of probation.
a.  Failure of the offender to comply with the plan of
restitution, plan of payment, or community service requirements
when community service is ordered by the court as restitution,
shall constitute a violation of probation and shall constitute
contempt of court.
b.  The If an offender fails to comply with
restitution requirements during probation, the court may hold
the offender in contempt, revoke probation, or extend the period
of probation, or upon notice of such noncompliance and hearing
thereon, the court may enter a civil judgment against the
offender for the outstanding balance of payments under the plan
of restitution and such judgment shall be governed by the law
relating to judgments, judgment liens, executions, and other
process available to creditors for the collection of debts.
(1)  However, if If the court extends the period of
probation, is extended it shall not be for more than the
maximum period of probation for the offense committed as
provided in section 907.7.  After discharge from probation or
after the expiration of the period of probation, the failure of
an offender to comply with the plan of restitution ordered by
the court shall constitute contempt of court.  As part of the
order discharging an offender from probation, the court shall
enter a civil judgment against the offender for the balance, if
any, of any restitution owed by the offender to the victim of
the crime.
(2)  If an offender's probation is revoked, the offender's
assigned probation officer shall forward to the director of the
Iowa department of corrections, information concerning the
offender's restitution plan, restitution plan of payment, the
restitution payment balance, and any other pertinent information
concerning or affecting restitution by the offender.
2.  When the offender is committed to a county jail, or to
an alternate facility, the office or individual charged with
supervision of the offender shall prepare a restitution plan of
payment taking into consideration the offender's income,
physical and mental health, age, education, employment and
family circumstances.
a.  The office or individual charged with supervision of the
offender shall review the plan of restitution ordered by the
court, and shall submit a restitution plan of payment to the
sentencing court.
b.  When community service is ordered by the court as
restitution, the restitution plan of payment shall set out a
plan to meet the requirement for the community service.
c.  The court may approve or modify the plan of restitution
and restitution plan of payment.
d.  When there is a significant change in the offender's
income or circumstances, the office or individual which has
supervision of the plan of payment shall submit a modified
restitution plan of payment to the court.
3.  When there is a transfer of supervision from one office
or individual charged with supervision of the offender to
another, the sending office or individual shall forward to the
receiving office or individual all necessary information
regarding the balance owed against the original amount of
restitution ordered and the balance of public service required.
When the offender's circumstances and income have significantly
changed, the receiving office or individual shall submit a new
plan of payment to the sentencing court for approval or
modification based on the considerations enumerated in this
section.
Sec.    .  Section 910.5, Code Supplement 1995, is amended
to read as follows:
910.5  CONDITION OF WORK RELEASE OR PAROLE.
1.  a.  When an offender is committed to the custody of the
director of the Iowa department of corrections pursuant to a
sentence of confinement, the sentencing court shall forward to
the director, a copy of the offender's restitution plan,
present restitution payment plan if any, and other pertinent
information concerning or affecting restitution by the offender.
b.  However, if If the offender is committed to the
custody of the director after revocation of probation, this
all information regarding the offender's restitution
plan shall be forwarded by the offender's probation officer.
c.  An offender committed to a penal or correctional
facility of the state shall make restitution while placed in
that facility.
d.  Upon commitment to the custody of the director of the
Iowa department of corrections, the director or the director's
designee shall prepare a restitution plan of payment or modify
any existing plan of payment.
(1)  The new or modified plan of payment shall reflect the
offender's present circumstances concerning the offender's
income, physical and mental health, education, employment, and
family circumstances.
(2)  The director or the director's designee may modify the
plan of payment at any time to reflect the offender's present
circumstances.
e.  After the expiration of the offender's sentence, the
failure of an offender to comply with the plan of restitution
ordered by the court shall constitute contempt of court.  Upon
the expiration of the offender's sentence, the department shall
notify the court which sentenced the offender and the court
shall enter a civil judgment against the offender for the
balance, if any, of any restitution owed by the offender to the
victim of the crime.
2.  If an offender is to be placed on work release from an
institution under the control of the director of the Iowa
department of corrections, restitution shall be a condition of
work release.
a.  The chief of the bureau of community correctional
services of the Iowa department of corrections shall prepare a
restitution plan of payment or may modify any previously
existing restitution plan of payment.
(1)  The new or modified plan of payment shall reflect the
offender's present circumstances concerning the offender's
income, physical and mental health, education, employment, and
family circumstances.
(2)  The bureau chief may modify the plan of payment at any
time to reflect the offender's present circumstances.
b.  Failure of the offender to comply with the restitution
plan of payment, including the community service requirement, if
any, shall constitute a violation of a condition of work release
and the work release privilege may be revoked.
c.  After the expiration of the offender's sentence, the
failure of an offender to comply with the plan of restitution
ordered by the court shall constitute contempt of court.  Upon
the expiration of the offender's sentence, the bureau chief
shall notify the court which sentenced the offender and the
court shall enter a civil judgment against the offender for the
balance, if any, of any restitution owed by the offender to the
victim of the crime.
3.  If an offender is to be placed on work release from a
facility under control of a county sheriff or the judicial
district department of correctional services, restitution shall
be a condition of work release.
a.  The office or individual charged with supervision of the
offender shall prepare a restitution plan of payment or may
modify any previously existing restitution plan of payment.
(1)  The new or modified plan of payment shall reflect the
offender's present circumstances concerning the offender's
income, physical and mental health, education, employment and
family circumstances.
(2)  Failure of the offender to comply with the restitution
plan of payment including the community service requirement, if
any, constitutes a violation of a condition of work release.
(3)  The office or individual charged with supervision of
the offender may modify the plan of restitution at any time to
reflect the offender's present circumstances.
b.  After the expiration of the offender's sentence, the
failure of an offender to comply with the plan of restitution
ordered by the court shall constitute
 contempt of court.  Upon the expiration of the offender's
sentence, the office or individual charged with supervision of
the offender shall notify the court which sentenced the offender
and the court shall enter a civil judgment against the offender
for the balance, if any, of any restitution owed by the offender
to the victim of the crime.
4.  If an offender is to be placed on parole, restitution shall
be a condition of parole.
a.  The district department of correctional services to
which the offender will be assigned shall prepare a restitution
plan of payment or may modify any previously existing
restitution plan of payment.
(1)  The new or modified plan of payment shall reflect the
offender's present circumstances concerning the offender's
income, physical and mental health, education, employment, and
family circumstances.
(2)  Failure of the offender to comply with the restitution
plan of payment including a community service requirement, if
any, shall constitute a violation of a condition of parole.
(3)  The parole officer may modify the plan of payment any
time to reflect the offender's present circumstances.
(4)  A restitution plan of payment or modified plan of
payment, prepared by a parole officer, must meet the approval of
the director of the district department of correctional services.
b.  After the expiration of the offender's sentence, the
failure of an offender to comply with the plan of restitution
ordered by the court shall constitute contempt of court.  Upon
the expiration of the offender's sentence, the parole officer
shall notify the court which sentenced the offender and the
court shall enter a civil judgment against the offender for the
balance, if any, of any restitution owed by the offender to the
victim of the crime.
5.  The director of the Iowa department of corrections shall
promulgate adopt rules pursuant to chapter 17A
concerning the policies and procedures to be used in preparing
and implementing restitution plans of payment for offenders who
are committed to an institution under the control of the
director of the Iowa department of corrections, for offenders
who are to be released on work release from institutions under
the control of the director of the Iowa department of
corrections, for offenders who are placed on probation, and for
offenders who are released on parole.
Sec.    .  LEGAL REPRESENTATION OF INDIGENTS - STUDY.  The
legislative council is requested to establish an interim
committee to study issues concerning the provision of legal
representation to indigents.  Matters to be reviewed by the
interim committee shall include, but are not limited to,
reclassification of indictable misdemeanors as simple
misdemeanors, the efficiencies of the state public defender's
office, and recoupment of indigent defense costs.  The
legislative fiscal bureau, the department of justice, and the
state public defender shall provide information requested by the
committee pertaining to indigent defense, including but not
limited to information concerning total cost expenditures by the
state public defender, including costs for employee salaries and
benefits and for all related office expenses, and statistical
data concerning crimes for which penalties have been increased,
or which have been recently reclassified as a higher level
offense.  The interim committee shall consider input from the
Iowa state bar
 association, the Iowa association of criminal defense lawyers,
the Iowa judges association, the Iowa magistrates association,
the public defenders association, the state public defender, and
the county attorneys association.  The interim committee shall
submit a report and recommendations to the general assembly by
January 1, 1997."
5.  Title page, line 1, by inserting after the words "relating
to" the following:  "criminal and juvenile justice, including
criminal corrections sanctions and criminal intelligence data
and".
6.  Title page, line 3, by inserting after the word "costs," the
following:  "conducting a study on legal representation for
indigents,".
7.  By renumbering, relettering, or redesignating and correcting
internal references as necessary. 
ON THE PART OF THE HOUSE        	ON THE PART OF THE SENATE

DWIGHT DINKLA, Chair    	STEVEN D. HANSEN, Chair      
JEFFREY LAMBERTI         	RICHARD F. DRAKE
HAROLD VAN MAANEN     	RANDAL J. GIANNETTO
                                               	O. GENE MADDOX
                                                	TOM VILSACK
Speaker pro tempore Van Maanen of Marion in the chair at 10:04
a.m.
Dinkla of Guthrie moved the adoption of the conference committee
report on House File 2458.
The motion prevailed and the report was adopted.
Dinkla of Guthrie 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?" (H.F. 2458)
The ayes were, 60:

Arnold         	Boddicker      	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         	Heaton         	Houser         	Hurley   
     		Huseman        	Jacobs         	Klemme         	Kremer   
     		Lamberti       	Larson         	Lord           	Main     
     		Martin         	Metcalf        	Meyer          	Millage  
     		Nelson, B.      	Nutt           	Rants          	Renken  
      	Schulte        	Siegrist       	Sukup          	Teig     
     		Thomson        	Tyrrell        	Van Fossen         	Vande
Hoef     	Veenstra       	Weidman        	Welter         	Van
Maanen,  				Presiding
The nays were, 34:

Baker          	Bell           	Bernau         	Brand         
		Burnett        	Cataldo        	Cohoon         	Connors       
	Doderer        	Drees          	Fallon         	Harper        
	Holveck        	Jochum         	Koenigs        	Larkin        
	Mascher        	May            	McCoy          	Mertz         
		Moreland       	Mundie         	Murphy         	Nelson, L.    
  	O'Brien        	Ollie          	Osterhaus      	Schrader     
 	Shoultz        	Taylor         	Warnstadt      	Weigel        
		Wise           	Witt           	
Absent or not voting, 6:

Blodgett       	Brammer        	Harrison       	Kreiman       
		Myers          	Salton         	
The bill having received a constitutional majority was declared
to have passed the House and the title, as amended, was agreed
to.
Rule 76 invoked: Kreiman of Davis, invoked Rule 76, conflict of
interest, and refrained from voting.

MOTION TO RECONSIDER
Kremer of Buchanan called up for consideration the motion to
reconsider Senate File 2153, filed by him on April 16, 1996, and
moved to reconsider the vote by which Senate File 2153, a bill
for an act relating to Iowa law enforcement officer
certification by the Iowa law enforcement academy, passed the
House and was placed on its last reading on April 16, 1996.
A non-record roll call was requested.
The ayes were 34, nays 46.
The motion to reconsider lost, placing out of order the motion
to reconsider Senate File 2153 filed by Metcalf of Polk on April
16, 1996.
SENATE AMENDMENT CONSIDERED
Brunkhorst of Bremer called up for consideration Senate File
2147, a bill for an act increasing the membership of the Iowa
telecommunications and technology commission, amended by the
House, further amended by the Senate and moved that the House
concur in the following Senate amendment H-6055 to the House
amendment:

H-6055

 1     Amend the House amendment, S-5615, to Senate File
 2   2147, as passed by the Senate, as follows:
 3     1.  By striking page 1, line 5, through page 5,
 4   line 42, and inserting the following:
 5     ""Section 1.  Section 8D.3, subsection 2, Code
 6   Supplement 1995, is amended to read as follows:
 7     2.  MEMBERS.  The commission is composed of three
 8   five members appointed by the governor and subject to
 9   confirmation by the senate.  Members of the commission
10   shall not serve in any manner or be employed by an
11   authorized user of the network or by an entity seeking
12   to do or doing business with the network.  The
13   governor shall appoint a member as the chairperson of
14   the commission from the three five members appointed
15   by the governor, subject to confirmation by the
16   senate.  Members of the commission shall serve six-
17   year staggered terms as designated by the governor and
18   appointments to the commission are subject to the
19   requirements of sections 69.16, 69.16A, and 69.19.
20   Vacancies shall be filled by the governor for the
21   duration of the unexpired term.  The salary of the
22   members of the commission shall be twenty twelve
23   thousand dollars per year, except that the salary of
24   the chairperson shall be twenty-five seventeen
25   thousand dollars per year.  Members of the commission
26   shall also be reimbursed for all actual and necessary
27   expenses incurred in the performance of duties as
28   members.  Meetings of the commission shall be held at
29   the call of the chairperson of the commission.  In
30   addition to the members appointed by the governor, the
31   auditor of state or the auditor's designee shall serve
32   as a nonvoting, ex officio member of the commission.
33     The benefits and salary paid to the members of the
34   commission shall be adjusted annually equal to the
35   average of the annual pay adjustments, expense
36   reimbursements, and related benefits provided under
37   collective bargaining agreements negotiated pursuant
38   to chapter 20.
39     Sec. 2.  Section 68B.35, subsection 2, paragraph e,
40   Code 1995, is amended to read as follows:
41     e.  Members of the banking board, the ethics and
42   campaign disclosure board, the credit union review
43   board, the economic development board, the employment
44   appeal board, the environmental protection commission,
45   the health facilities council, the Iowa business
46   investment corporation board of directors, the Iowa
47   finance authority, the Iowa seed capital corporation,
48   the Iowa public employees' retirement system
49   investment board, the lottery board, the natural
50   resource commission, the board of parole, the

Page 2  

 1   petroleum underground storage tank fund board, the
 2   public employment relations board, the state racing
 3   and gaming commission, the state board of regents, the
 4   tax review board, the transportation commission, the
 5   office of consumer advocate, the utilities board, the
 6   Iowa telecommunications and technology commission, and
 7   any full-time members of other boards and commissions
 8   as defined under section 7E.4 who receive an annual
 9   salary for their service on the board or commission.
10     Sec. 3.  INITIAL APPOINTMENTS OF NEW COMMISSION
11   MEMBERS.  The two new members of the Iowa
12   telecommunications and technology commission provided
13   for in section 1 of this Act shall be appointed on or
14   before July 1, 1996, to the following terms:
15     1.  One member shall be appointed for a term of
16   five years.
17     2.  One member shall be appointed for a term of
18   three years."
19     2.  Title page, line 2, by inserting after the
20   word "commission" the following:  ", providing for
21   matters relating to the authority and duties of the
22   commission, and providing an effective date".
The motion prevailed and the House concurred in the Senate
amendment H-6055, to the House amendment.
Brunkhorst of Bremer moved that the bill, as amended by the
House, further amended by the Senate and concurred in by the
House, 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. 2147)
The ayes were, 92:

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

Greig          	Klemme         	Meyer          	
Absent or not voting, 5:

Blodgett       	Brammer        	Harrison       	Myers         
		Salton         	           	         	
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:
House File 2458 and Senate File 2147.
CONSIDERATION OF HOUSE RESOLUTION 112
McCoy of Polk asked and received unanimous consent for the
immediate consideration of House Resolution 112, a resolution to
honor professional truck drivers who serve their country each
day by safely and efficiently delivering freight vital to the
welfare of the United States, and moved its adoption.
The motion prevailed and the resolution was adopted.
On motion by Siegrist of Pottawattamie, the House was recessed
at 10:55 a.m., until 2:00 p.m.

AFTERNOON SESSION
The House reconvened at 2:25 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 seventy-nine members present,
twenty-one absent.
PRESENTATION TO RETIRING MEMBERS AND LEADERS
Halvorson of Clayton and Doderer of Johnson invited to the well
of the House, for special recognition, members of the House who
will be retiring or are candidates for the Iowa Senate. Plaques
were presented to the following members:
- 1996
Philip E. Brammer, District 53	1983 - 1996
Clifford O. Branstad, District 16	1979 - 1996
Brian A. Coon, District 89		1995 - 1996
Horace C. Daggett, District 88	1973 - 1996
Steven E. Grubbs, District 40	1991 - 1996
Donald E. Hanson, District 24	1991 - 1996
Patricia M. Harper, District 26	1987 - 1990, 1993 - 1996
Neil P. Harrison, District 44	1995 - 1996
Matthew W. McCoy, District 67	1993 - 1996
C. Arthur Ollie, District 38		1983 - 1996
Robert H. Renken, District 21	1980 - 1996
The House rose and expressed its appreciation.
House Speaker Ron Corbett, Majority Leader, Brent Siegrist and
Minority Leader, David Schrader were invited to the Speaker's
station for a special presentation.
Halvorson of Clayton and Doderer of Johnson, on behalf of the
House, presented plaques to each leader in appreciation of his
service and dedication to the Iowa House of Representatives
during the Seventy-sixth General Assembly.

The House stood at ease at 4:29 p.m., until the fall of the
gavel.
The House resumed session at 6:50 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
QUORUM CALL
A non-record roll call was requested to determine that a quorum
was present.  The vote revealed seventy-nine members present,
twenty-one absent.
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 April 30, 1996, concurred in the House
amendment and passed the following bill in which the concurrence
of the Senate was asked:
Senate File 2153, a bill for an act relating to Iowa law
enforcement officer certification by the Iowa law enforcement
academy.
Also: That the Senate has on April 30, 1996, passed the
following bill in which the concurrence of the House is asked:
Senate File 2470, a bill for an act relating to state
expenditure and regulatory matters by making standing and other
appropriations, and providing technical provisions, studies of
runaway youth, physician utilization, and retirement system
issues, and providing a penalty and effective dates.
JOHN F. DWYER, Secretary
SENATE AMENDMENT CONSIDERED
Grundberg of Polk called up for consideration House File 2477, a
bill for an act relating to the funding of, operation of, and
appropriation of moneys to agencies, institutions, commissions,
departments, and boards responsible for education and cultural
programs of this state and making related statutory changes and
providing effective date provisions, amended by the Senate
amendment H-5522 as follows:

H-5522

 1     Amend House File 2477, as amended, passed, and
 2   reprinted by the House, as follows:
 3     1.  Page 1, by striking lines 13 through 18.
 4     2.  Page 1, line 27, by striking the figure
 5   "345,000" and inserting the following:  "395,000".
 6     3.  Page 2, by inserting after line 26 the
 7   following:
 8     "   .  For enhanced forgivable loans:
 9   	$    115,000
10     The amount of an enhanced forgivable loan shall not
11   exceed $11,500.  To qualify for a loan a person shall:
12     (1)  Be required to practice primary care in a
13   community designated as underserved by state and
14   federal authorities and having a population of less
15   than 20,000.  A student must provide one year of
16   practice for every year of loan forgiveness.
17     (2)  Have shown superior academic achievement and
18   demonstrated exceptional financial need during the
19   last year of undergraduate study.
20     The commission shall prescribe by rule the terms of
21   repayment and forgiveness.  The rules shall be
22   consistent with the requirements of section 261.19A.
23   The commission shall deposit payments made by loan
24   recipients into the fund created in section 261.19B."
25     4.  Page 3, by inserting after line 4 the
26   following:
27     "   .  NATIONAL GUARD TUITION AID PROGRAM
28     For tuition aid for Iowa national guard members as
29   provided in section 261.21, as enacted by this Act:
30  	$    400,000"
31     5.  Page 3, line 15, by striking the figure
32   "28.95" and inserting the following:  "31.95".
33     6.  Page 3, line 24, by striking the words "and
34   which are in addition" and inserting the following:
35   "if the amount of federal funds appropriated for state
36   student incentive grant purposes is less than the
37   amount needed for those purposes in the fiscal year
38   beginning July 1, 1996.  If the amount of federal
39   funds for state student incentive grant purposes are
40   sufficient, the funds appropriated in this section
41   shall be divided equally for purposes of the Iowa
42   vocational-technical tuition grants and the work-study
43   program.  Funds appropriated in this section are in
44   addition".
45     7.  Page 3, line 25, by inserting after the figure
46   "3" the following:  ", and section 261.85".
47     8.  Page 4, line 4, by striking the figure
48   "150,000" and inserting the following:  "155,000".
49     9.  Page 4, by striking lines 6 through 8 and
50   inserting the following:  "section 261.71, the next

Page 2  

 1   $15,000 shall be used to provide grants to students
 2   who would meet the requirements for receipt of a
 3   vocational-technical tuition grant, but who are
 4   enrolled in a licensed school of cosmetology arts and
 5   sciences under chapter 157, or a licensed barber
 6   school under chapter 158, and any excess remaining".
 7     10.  Page 4, line 30, by striking the figure
 8   "1,061,568" and inserting the following:  "1,081,918".
 9     11.  Page 5, line 5, by striking the figure
10   "2,523,932" and inserting the following:  "2,643,267".
11     12.  Page 5, line 6, by striking the figure
12   "58.00" and inserting the following:  "58.75".
13     13.  Page 5, by striking lines 7 through 10.
14     14.  Page 5, line 15, by striking the figure
15   "311,039" and inserting the following:  "386,039".
16     15.  Page 5, line 16, by striking the figure
17   "4.00" and inserting the following:  "5.00".
18     16.  Page 5, line 21, by striking the figure
19   "220,227" and inserting the following:  "260,227".
20     17.  Page 6, line 4, by striking the figure
21   "5,138,382" and inserting the following:  "5,378,382".
22     18.  Page 6, line 5, by striking the figure
23   "94.95" and inserting the following:  "96.95".
24     19.  Page 6, by inserting after line 34 the
25   following:
26     "The department of education shall conduct a study
27   of open enrollment across state boundaries and report
28   its findings and specific recommendations to the
29   general assembly by January 1, 1997."
30     20.  By striking page 6, line 35, through page 7,
31   line 3.
32     21.  Page 7, line 8, by inserting after the figure
33   "1." the following:  "The department shall determine
34   the goals of the K-12 and community college management
35   information system and establish a timeline by which
36   the goals shall be accomplished.  The goals and
37   timeline shall be included in the annual report
38   submitted to the general assembly and the legislative
39   fiscal bureau by January 1, 1997."
40     22.  Page 7, line 19, by striking the figure
41   "194,582" and inserting the following:  "284,582".
42     23.  Page 8, line 17, by striking the figure
43   "2,470,915" and inserting the following:  "2,914,455".
44     24.  Page 8, line 18, by striking the figure
45   "34.50" and inserting the following:  "35.50".
46     25.  Page 8, line 26, by striking the figure
47   "6,925,335" and inserting the following:  "7,121,340".
48     26.  Page 8, line 27, by striking the figure
49   "101.00" and inserting the following:  "104.50".
50     27.  Page 9, line 22, by striking the figure

Page   3

 1   "13.00" and inserting the following:  "14.00".
 2     28.  Page 9, line 35, by striking the figure
 3   "69,400" and inserting the following:  "84,400".
 4     29.  Page 10, by striking lines 5 through 17 and
 5   inserting the following:
 6     "   .  CENTER FOR ASSESSMENT
 7     For the purpose of developing academic standards in
 8   the areas of math, history, science, English, language
 9   arts, and geography:
10	$    300,000
11     The department of education shall submit in a
12   report to the general assembly by January 1, 1997, the
13   amount of state funding anticipated to be needed to
14   fund the department's future participation with the
15   center for assessment and shall determine the number
16   of years participation is necessary.
17        .  NATIONAL ASSESSMENT OF EDUCATION PROGRESS
18   (NAEP)
19     For participation by the department of education in
20   a state and national project, the national assessment
21   of education progress (NAEP), to determine the
22   academic achievement of Iowa students in math,
23   reading, science, United States history, or geography:
24  	$     50,000
25        .  ENVIRONMENTAL EDUCATION
26     For purposes of establishing an environmental
27   education program as set forth in Senate File 2415, as
28   passed in the 1996 legislative session by the Senate,
29   and for the following full-time equivalent position:
30  	$    150,000
31 	FTEs         1.00"
32     30.  By striking page 10, line 27, through page
33   11, line 15, and inserting the following:
34   "	$126,506,270
35     The funds appropriated in this subsection shall be
36   allocated as follows:
37     a.  Merged Area I	$    6,035,436 
38     b.  Merged Area II	$    7,116,730
39     c.  Merged Area III	$    6,720,072
40     d.  Merged Area IV	$    3,273,974
41     e.  Merged Area V	$    6,848,081
42     f.   Merged Area VI	$    6,346,118
43     g.  Merged Area VII	$    9,052,574
44     h.  Merged Area IX	$  11,099,434
45     i.   Merged Area X 	$   17,227,964
46     j.   Merged Area XI	$   18,540,456
47     k.  Merged Area XII	$     7,310,574
48     l.   Merged Area XIII	$     7,477,178
49     m. Merged Area XIV	$     3,316,469
50     n.  Merged Area XV	$   10,344,668

Page   4

 1     o.  Merged Area XVI ........................... $   
5,796,542
 2     Of the moneys allocated to merged area XI in
 3   paragraph "j", for the fiscal year beginning July 1,
 4   1996, and ending June 30, 1997, $135,000 shall be
 5   expended on the career opportunity program to provide
 6   assistance to minority persons who major in fields or
 7   subject areas where minorities are currently
 8   underutilized pursuant to section 260C.29.
 9     Sec. 201.  APPROPRIATION TO MERGED AREAS _
10   CONTINGENCY.  Notwithstanding any Act enacted in 1996
11   during the Seventy-sixth General Assembly, all moneys
12   from appropriations made pursuant to any Act enacted
13   in 1996 by the Seventy-sixth General Assembly to a
14   merged area shall be reduced by 100 percent, if the
15   merged area enters into an agreement under chapter
16   260E or 260F, for a project which includes program
17   services for employees of a confinement feeding
18   operation as defined in section 455B.161."
19     31.  By striking page 11, line 18, through page
20   12, line 2, and inserting the following:  "257B.1A,
21   subsection 1, and subsequent to the distribution of
22   funds as provided in section 257B.1A, subsections 2
23   and 3, any unobligated or unencumbered moneys in the
24   interest for Iowa schools fund on June 30, 1996, shall
25   be transferred to the department of education for the
26   fiscal year beginning July 1, 1996, and ending June
27   30, 1997, to be used for local arts comprehensive
28   educational strategies (LACES)."
29     32.  Page 12, by striking lines 12 through 16.
30     33.  Page 12, by striking lines 22 through 32 and
31   inserting the following:  "general fund of the state
32   but shall be distributed to the department of
33   education for the fiscal year beginning July 1, 1996,
34   and ending June 30, 1997, for purposes of the gifted
35   and talented summer institute."
36     34.  Page 13, by striking lines 5 through 17 and
37   inserting the following:
38     "   .  For salaries, support, maintenance,
39   miscellaneous purposes, and for not more than the
40   following full-time equivalent positions:
41  	$ 1,152,417
42  	FTEs        15.63
43     If the moneys provided in this lettered paragraph
44   are augmented by reimbursements from the institutions
45   under the control of the state board of regents for
46   the funding of the office of the state board of
47   regents, the office shall report quarterly such
48   reimbursements to the chairpersons and ranking members
49   of the joint appropriations subcommittee on
50   education."

Page   5

 1     35.  Page 13, line 34, by striking the figure
 2   "84,156" and inserting the following:  "104,156".
 3     36.  Page 14, line 21, by striking the figure
 4   "202,267,198" and inserting the following:
 5   "203,577,328".
 6     37.  Page 14, line 22, by striking the figure
 7   "4,020.47" and inserting the following:  "4,022.97".
 8     38.  Page 14, line 33, by inserting after the word
 9   "salaries," the following:  "general".
10     39.  Page 17, line 33, by striking the figure
11   "282,101" and inserting the following:  "608,448".
12     40.  Page 17, by inserting after line 34, the
13   following:
14     "It is the intent of the general assembly that
15   fiscal year 1997-1998 shall be the last fiscal year in
16   which the general assembly appropriates funds for
17   purposes of the planning and construction of the
18   national advanced driving simulator.
19        .  Research park
20     For salaries, support, maintenance, equipment,
21   miscellaneous purposes, and for not more than the
22   following full-time equivalent positions:
23  	$    321,000
24  	FTEs         4.35"
25     41.  Page 18, line 5, by striking the figure
26   "160,639,691" and inserting the following:
27   "161,859,066".
28     42.  Page 18, line 6, by striking the figure
29   "3,581.98" and inserting the following:  "3,583.64".
30     43.  Page 18, line 9, by striking the figure
31   "1,500,000" and inserting the following:  "2,000,000".
32     44.  Page 18, by striking lines 10 through 13 and
33   inserting the following:  "livestock program."
34     45.  Page 18, line 26, by striking the figure
35   "19,270,398" and inserting the following:
36   "19,280,398".
37     46.  Page 19, by inserting after line 4 the
38   following:
39     "   .  Research park
40     For salaries, support, maintenance, miscellaneous
41   purposes, and for not more than the following full-
42   time equivalent positions:
43  	$    370,000
44  	FTEs         4.31"
45     47.  Page 19, by striking line 6 and inserting the
46   following:
47     "a.  General university
48     For salaries, support, maintenance, equipment,".
49     48.  Page 19, line 9, by striking the figure
50   "71,771,714" and inserting the following:

Page   6

 1   "72,821,314".
 2     49.  Page 19, by striking lines 13 through 18 and
 3   inserting the following:
 4     "   .  Metal casting
 5   	$    160,000
 6        .  Distance education
 7     To expand coursework at community colleges,
 8   including support for the elementary education program
 9   through merged area XI at the Carroll campus:
10  	$ 150,000"
11     50.  Page 20, by striking lines 4 through 15.
12     51.  Page 23, by inserting after line 20 the
13   following:
14     "Sec. ___.  IOWA GRAIN QUALITY INITIATIVE.
15   Notwithstanding section 423.24, subsection 1,
16   paragraph "b", subparagraph (1), there is appropriated
17   for the fiscal year beginning July 1, 1996, and ending
18   June 30, 1997, an amount equal to two and three-
19   quarters percent of the total revenues collected
20   pursuant to section 423.7 and deposited in the value-
21   added agricultural products and processes financial
22   assistance fund, pursuant to section 423.24,
23   subsection 1, paragraph "b", subparagraph (1), to the
24   Iowa cooperative extension service in agriculture and
25   home economics at Iowa state university of science and
26   technology as matching funds for the Iowa grain
27   quality initiative.  Funds appropriated pursuant to
28   this section are contingent upon the receipt of
29   dollar-for-dollar matching funds from grain promotion
30   boards."
31     52.  Page 24, by striking lines 17 through 23.
32     53.  By striking page 24, line 28, through page
33   25, line 31.
34     54.  Page 25, line 33, by striking the word
35   "subsections" and inserting the following:
36   "subsection".
37     55.  By striking page 25, line 34, through page
38   26, line 1.
39     56.  Page 26, line 12, by striking the word
40   "subsections" and inserting the following:
41   "subsection".
42     57.  By striking page 26, line 13, through page
43   27, line 12.
44     58.  Page 27, line 28, by inserting before the
45   word "for" the following:  "and".
46     59.  Page 27, by striking lines 29 through 31 and
47   inserting the following:  "258 and 260C, for a fiscal
48   year, shall".
49     60.  Page 29, by inserting after line 10 the
50   following:

Page   7

 1     "Sec. ___.  Section 260C.29, subsection 3, Code
 2   Supplement 1995, is amended by adding the following
 3   new paragraphs:
 4     NEW PARAGRAPH.  f.  Contract with other community
 5   colleges to expand the availability of program
 6   services and increase the number of students served by
 7   the program.
 8     NEW PARAGRAPH.  g.  Establish a separate account,
 9   which shall consist of all appropriations, grants,
10   contributions, bequests, endowments, or other moneys
11   or gifts received specifically for purposes of the
12   program by the community college administering the
13   program as provided in subsection 2.  Not less than
14   eighty percent of the funds received from state
15   appropriations for purposes of the program shall be
16   used for purposes of assistance to students as
17   provided in subsection 5."
18     61.  Page 30, by striking line 2 and inserting the
19   following:  "as defined under section 260D.2,".
20     62.  Page 31, line 16, by striking the word
21   "hundred" and inserting the following:  "one
hundred".
22     63.  By striking page 31, line 17, through page
23   32, line 3.
24     64.  Page 34, by striking lines 13 through 25, and
25   inserting the following:
26     "4.  The eligibility of applicants shall be".
27     65.  Page 35, by striking lines 3 through 13.
28     66.  Page 35, by striking lines 20 and 21 and
29   inserting the following:  "thirty-five thirty-eight
30   million six nine hundred sixty-four thousand seven
31   hundred fifty dollars".
32     67.  Page 35, by inserting after line 24 the
33   following:
34     "Sec. ___.  Section 261.85, unnumbered paragraph 1,
35   Code Supplement 1995, is amended to read as follows:
36     There is appropriated from the general fund of the
37   state to the commission for each fiscal year the sum
38   of two three million nine one hundred fifty
thousand
39   dollars for the work-study program."
40     68.  Page 36, line 7, by striking the word
41   "subsections" and inserting the following:
42   "subsection".
43     69.  Page 36, by striking lines 19 through 22.
44     70.  By striking page 36, line 34, through page
45   37, line 8, and inserting the following:
46     "Sec. ___.  NEW SECTION.  273.10  MEMBERSHIP IN
47   OTHER ORGANIZATIONS.
48     Duly elected members of boards of directors of area
49   education agencies and designated administrators of
50   area education agencies may join, including the

Page   8

 1   payment of dues, and participate in local, regional,
 2   and national organizations which directly relate to
 3   the functions of the board of directors and
 4   administrators.
 5     Sec. ___.  Section 280.18, Code 1995, is amended by
 6   adding the following new unnumbered paragraph:
 7     NEW UNNUMBERED PARAGRAPH.  Annually, each
 8   accredited higher education institution, as defined in
 9   section 261.92, shall report the freshman grades of
10   the graduates of a school district to the board of
11   directors of the school district.  Not later than one
12   year after the date on which the majority of the
13   district's seniors graduate, the board shall conduct
14   an annual survey of a representative sampling of
15   employers of the local business community.  The survey
16   shall assess the employability skills of the
17   district's high school graduates who have entered the
18   local workforce.  The employability skills assessed
19   shall include, but are not limited to, reading for
20   information, applied mathematics, listening, and
21   writing.  Annually, the school district shall tabulate
22   and summarize the information collected pursuant to
23   this paragraph and shall file a report with the
24   department of education.  The board shall make copies
25   of the report available upon request."
26     71.  Page 37, by striking lines 13 and 14 and
27   inserting the following:  "alliance, seventy thousand
28   dollars for gifted and talented, and one hundred
29   eighty thousand dollars for a management".
30     72.  Page 37, by striking lines 16 through 20 and
31   inserting the following:  "phase I to phase III."
32     73.  By striking page 37, line 24 through page 38,
33   line 9, and inserting the following:  "thousand
34   dollars for support for the operations of the new Iowa
35   schools development corporation and for school
36   transformation design and implementation projects
37   administered by the corporation.  Of the amount
38   provided in this subsection, one hundred fifty
39   thousand dollars shall be used for the school and
40   community planning initiative."
41     74.  Page 38, line 17, by striking the figure
42   "25,000" and inserting the following:  "50,000".
43     75.  Page 38, by striking lines 18 through 23 and
44   inserting the following:
45     "   .  For matching grants for teachers who select
46   to participate in the national board for professional
47   teaching standards process:
48 	$     40,000
49     From the moneys appropriated in this subsection,
50   not more than one thousand dollars per teacher shall

Page   9

 1   be available toward the cost of the certification
 2   process to be matched by the teacher or by the school
 3   district which employs the teacher or has a continuing
 4   contract with the teacher.
 5        .  For the development of a K-12 and community
 6   college management information system:
 7 	$    150,000
 8     If funds available are insufficient to fully fund
 9   the appropriation for a management information system
10   in this subsection, the amount distributed for the
11   management information system shall be reduced to an
12   amount equal to the available funds.
13     Sec. ___.  FUNDING FORMULA RECOMMENDATIONS.  By
14   January 1, 1997, the department of education, in
15   consultation with the Iowa association of community
16   college trustees, shall submit recommendations for a
17   funding formula that identifies and addresses
18   community college needs.
19     Sec. ___.  REPEAL _ DIRECTION TO CODE EDITOR.
20   Section 260C.18A, as enacted in this Act, is repealed
21   effective July 1, 1997.  The Code editor shall strike
22   the reference to section 260C.18A in section 260C.34
23   effective July 1, 1997."
24     76.  Page 38, line 25, by striking the figure
25   "225.28".
26     77.  By striking page 38, line 29, through page
27   39, line 6.
28     78.  Page 39, line 7, by striking the word and
29   figures "8, 12, and 46" and inserting the following:
30   "201, 8, and 12".
31     79.  By renumbering as necessary.
Grundberg of Polk offered the following amendment H-6057, to the
Senate amendment H-5522 filed by Grundberg, Shoultz, Hammitt-
Barry, Gries, Witt, Rants and Nelson of Pottawattamie from the
floor and moved its adoption:

H-6057

 1     Amend the Senate amendment, H-5522, to House File
 2   2477, as amended, passed, and reprinted by the House,
 3   as follows:
 4     1.  By striking page 1, line 3, through page 9,
 5   line 31, and inserting the following:
 6     "   .  By striking everything after the enacting
 7   clause and inserting the following:
 8               "COLLEGE STUDENT AID COMMISSION
 9     Section 1.  There is appropriated from the general
10   fund of the state to the college student aid
11   commission for the fiscal year beginning July 1, 1996,
12   and ending June 30, 1997, the following amounts, or so
13   much thereof as may be necessary, to be used for the
14   purposes designated:
15     1.  GENERAL ADMINISTRATION
16     For salaries, support, maintenance, miscellaneous
17   purposes, and for not more than the following full-
18   time equivalent positions:
19  		 $	    342,797
20  		 FTEs	       7.05
21     The college student aid commission shall conduct a
22   study of and consider possible differentiations in the
23   grants awarded that are based upon parental income and
24   assets under the Iowa tuition grant program and shall
25   consider the reimbursement of grant moneys by a
26   student if the student does not complete a term of
27   study funded by an Iowa tuition grant or a vocational-
28   technical tuition grant.  The commission shall submit
29   a report of its findings and recommendations to the
30   general assembly by January 1, 1997.
31     2.  UNIVERSITY OF OSTEOPATHIC MEDICINE AND HEALTH
32   SCIENCES
33     a.  For forgivable loans to Iowa students attending
34   the university of osteopathic medicine and health
35   sciences, under the forgivable loan program pursuant
36   to section 261.19A:
37  		 $	    379,260
38     b.  For the university of osteopathic medicine and
39   health sciences for an initiative in primary health
40   care to direct primary care physicians to shortage
41   areas in the state:
42  		 $	    395,000
43     The moneys appropriated in this lettered paragraph
44   shall be used as follows:
45     (1)  To reduce student loan debt for primary care
46   physicians in an amount not to exceed $30,000 per
47   student for a four-year period of medical service in
48   medically under-served areas of the state.
49     (2)  For tuition scholarships for students
50   attending the university of osteopathic medicine and

Page 2  

 1   health sciences who agree to practice primary care
 2   medicine in medically under-served areas of the state.
 3   The student shall practice in the state two years for
 4   every year of tuition.  A person receiving funds under
 5   this subparagraph shall not be eligible for funds
 6   under subparagraph (1).
 7     (3)  For general administration costs of the
 8   university for the primary care initiative, the
 9   university shall expend an amount not to exceed
10   $50,000.
11     Within one month of the end of a fiscal quarter,
12   the university of osteopathic medicine and health
13   sciences shall submit a report to the legislative
14   fiscal bureau concerning the expenditure of funds used
15   pursuant to subparagraphs (1), (2), and (3) of this
16   lettered paragraph.  The university shall also submit
17   the annual audit of the university to the legislative
18   fiscal bureau within six months following the end of
19   the year being audited.
20     The college student aid commission shall not
21   provide moneys for subparagraphs (1) and (2) of this
22   lettered paragraph until the university has signed and
23   submitted contracts for the use of these moneys for
24   reduction of student loan debt and tuition
25   scholarships.  Funds for subparagraph (3) of this
26   lettered paragraph shall be provided quarterly to the
27   university.
28     Notwithstanding section 8.33, the funds for this
29   lettered paragraph shall not revert to the general
30   fund but be available for expenditure the following
31   fiscal year for purposes of subparagraphs (1) and (2).
32     The college student aid commission, the university
33   of osteopathic medicine and health sciences, and the
34   legislative fiscal bureau shall cooperatively develop
35   and propose uniform time periods of medical practice
36   which shall be served in the state in return for an
37   allocation of state funds for purposes of the
38   university of osteopathic medicine and health
39   sciences.  Proposals developed may relate to
40   allocations of funds within a single appropriation
41   concept and include contracting provisions.  Proposals
42   shall be submitted in a report to the general assembly
43   by January 1, 1997.
44     3.  STUDENT AID PROGRAMS
45     For payments to students for the Iowa grant
46   program:
47  		 $	  1,397,790
48     Sec. 2.  There is appropriated from the loan
49   reserve account to the college student aid commission
50   for the fiscal year beginning July 1, 1996, and ending
Page   3

 1   June 30, 1997, the following amount, or so much
 2   thereof as may be necessary, to be used for the
 3   purposes designated:
 4     For operating costs of the Stafford loan program
 5   including salaries, support, maintenance,
 6   miscellaneous purposes, and for not more than the
 7   following full-time equivalent positions:
 8  		 $	  4,596,739
 9  		 FTEs	      31.95
10     Sec. 3.  Notwithstanding the maximum allowed
11   balance requirement of the scholarship and tuition
12   grant reserve fund as provided in section 261.20,
13   there is appropriated from the scholarship and tuition
14   grant reserve fund to the college student aid
15   commission for the fiscal year beginning July 1, 1996,
16   and ending June 30, 1997, the funds remaining
17   following transfer, pursuant to section 261.20 for the
18   fiscal year ending June 30, 1995, which are to be
19   divided equally for purposes of the Iowa vocational-
20   tuition grants and the work study program.  Funds
21   appropriated in this section are in addition to funds
22   appropriated in section 261.25, subsection 3, and
23   section 261.85.
24     Sec. 4.  Not later than September 1, 1996, the
25   college student aid commission shall compile a list of
26   affected students receiving tuition grants during the
27   fiscal year beginning July 1, 1995, and who
28   transferred from a nonaccredited to an accredited
29   private institution for the fiscal year beginning July
30   1, 1996.  If the student meets all financial aid
31   criteria as set forth by the commission, the
32   transferring affected student may continue to receive
33   a tuition grant for the fiscal year beginning July 1,
34   1996.  The commission shall calculate the funds
35   remaining from tuition grants awarded to affected
36   students who do not transfer to an accredited private
37   institution in the fiscal year beginning July 1, 1996.
38   Notwithstanding section 261.25, subsection 1, the
39   first $200,000 of these funds shall be used for
40   national guard tuition aid as provided in section
41   261.21 as enacted by this Act, the next $115,000 shall
42   be used for enhanced forgiveable loans as provided in
43   this section, the next $100,000 shall be used for
44   chiropractic graduate student forgiveable loans as
45   provided in section 261.71, the next $15,000 shall be
46   used to provide grants to students who would meet the
47   requirements for receipt of a vocational-technical
48   tuition grant, but who are enrolled in a licensed
49   school of cosmetology arts and sciences under chapter
50   157, or a licensed barber school under chapter 158,
Page   4

 1   and any excess remaining funds shall be used to award
 2   tuition grants to eligible students.  For purposes of
 3   this paragraph, "affected student" means a qualified
 4   student for whom payment of a tuition grant was made
 5   under section 261.13 for one or more semesters or
 6   trimesters while the student was attending a private
 7   institution which was accredited as defined in section
 8   261.9 for the fiscal year beginning July 1, 1995, but
 9   which does not meet the requirements for an accredited
10   private institution for the fiscal year beginning July
11   1, 1996.
12     The amount of an enhanced forgivable loan issued
13   under this section shall not exceed $11,500.  To
14   qualify for an enhanced forgiveable loan a person
15   shall do all of the following:
16     (1)  Practice as a primary care physician in a
17   community designated as underserved by state and
18   federal authorities and which has a population of less
19   than 20,000.  A student must provide one year of
20   practice for every year of loan forgiveness.
21     (2)  Have shown superior academic achievement and
22   demonstrated exceptional financial need during the
23   last year of undergraduate study.
24     The commission shall prescribe by rule the terms of
25   repayment and forgiveness.  The rules shall be
26   consistent with the requirements of section 261.19A.
27   The commission shall deposit payments made by loan
28   recipients into the fund created in section 261.19B.
29               DEPARTMENT OF CULTURAL AFFAIRS
30     Sec. 5.  There is appropriated from the general
31   fund of the state to the department of cultural
32   affairs for the fiscal year beginning July 1, 1996,
33   and ending June 30, 1997, the following amounts, or so
34   much thereof as is necessary, to be used for the
35   purposes designated:
36     1.  ARTS DIVISION
37     For salaries, support, maintenance, miscellaneous
38   purposes, including funds to match federal grants, for
39   areawide arts and cultural service organizations that
40   meet the requirements of chapter 303C, and for not
41   more than the following full-time equivalent
42   positions:
43  		 $	  1,081,918
44  		 FTEs	      11.00
45     The Iowa arts council shall develop and implement a
46   simplified, uniform grant application for use by all
47   grant applicants and shall prescribe a uniform grant
48   application renewal period for all grant applicants by
49   January 15, 1997.
50     2.  HISTORICAL DIVISION
Page   5

 1     For salaries, support, maintenance, miscellaneous
 2   purposes, and for not more than the following full-
 3   time equivalent positions:
 4  		 $	  2,626,267
 5  		 FTEs	      58.50
 6     3.  HISTORIC SITES
 7     For salaries, support, maintenance, miscellaneous
 8   purposes, and for not more than the following full-
 9   time equivalent positions:
10  		 $	    386,039
11  		 FTEs	       5.00
12     4.  ADMINISTRATION
13     For salaries, support, maintenance, miscellaneous
14   purposes, and for not more than the following full-
15   time equivalent positions:
16  		 $	    250,227
17  		 FTEs	       4.30
18     5.  COMMUNITY CULTURAL GRANTS
19     For planning and programming for the community
20   cultural grants program established under section
21   303.3, and for not more than the following full-time
22   equivalent position:
23  		 $	    707,721
24  		 FTEs	       0.70
25                   DEPARTMENT OF EDUCATION
26     Sec. 6.  There is appropriated from the general
27   fund of the state to the department of education for
28   the fiscal year beginning July 1, 1996, and ending
29   June 30, 1997, the following amounts, or so much
30   thereof as may be necessary, to be used for the
31   purposes designated:
32     1.  GENERAL ADMINISTRATION
33     For salaries, support, maintenance, miscellaneous
34   purposes, and for not more than the following full-
35   time equivalent positions:
36  		 $	  5,378,382
37  		 FTEs	      96.95
38     The department of education shall conduct a study
39   of the special education funding system with the
40   following goals:  increasing the capacity of the whole
41   school to meet the needs of all children; increasing
42   support available to "at-risk" students; and ensuring
43   predictable and equitable special education funding at
44   both the state and local levels.  The study shall
45   include, but is not limited to, an examination of the
46   consequences of increasing the current special
47   education weights and the impact that will have on
48   those districts whose expenditures exceed the amounts
49   generated under the present weighting plan and on
50   those districts which are generating sufficient funds;
Page   6

 1   the issues and feasibility of alternative special
 2   education funding systems based on school district
 3   experiences with involvement from representatives of
 4   the education community, including representatives
 5   from area education agencies, special education
 6   teachers, administrators, and advocacy groups; and the
 7   possibility of establishing a funding system to
 8   address students that are "at-risk" but are not
 9   currently eligible for special education services.
10   The department shall submit its findings and specific
11   recommendations in a report to the general assembly
12   and the legislative fiscal bureau by January 1, 1997.
13     The department of education shall conduct a study
14   of the trends in the number of students requiring
15   services to become proficient in the English language
16   and the current and projected costs related to
17   providing such services by local school districts.
18   The department shall report its findings and specific
19   recommendations regarding funding to the general
20   assembly and the legislative fiscal bureau by January
21   1, 1997.
22     The department of education, in consultation with
23   the department of human services, shall conduct a
24   study of the funding for educational programs provided
25   for each child living with an individual licensed
26   under chapter 237, or in a foster care or other
27   facility as defined in sections 282.19 and 282.27.
28   The recommendations developed shall include but not be
29   limited to the funding structure and source of
30   funding.  The department shall submit a report of its
31   findings and recommendations to chairpersons and
32   ranking members of the joint appropriations
33   subcommittee on education and the chairpersons and
34   ranking members of the standing education committees
35   by January 1, 1997.
36     The department of education shall review the
37   reports required of the department by the general
38   assembly since 1980 and shall catalog the progress,
39   success, and failures of the general assembly in
40   implementing or responding to the recommendations
41   contained in those reports.  The department shall
42   submit its findings and recommendations to the
43   chairpersons and ranking members of the joint
44   appropriations subcommittee on education and the
45   chairpersons and ranking members of the standing
46   education committees of the senate and the house of
47   representatives by January 1, 1997.
48     The department of education shall conduct a study
49   of the means by which student employability skills may
50   be measured, including but not limited to the
Page   7

 1   employability skills of students at various levels of
 2   their secondary education and students who have
 3   graduated, the businesses that employ them, and the
 4   institutions of higher learning which admit the
 5   graduates.  The department shall submit its findings
 6   and recommendations to the chairpersons and ranking
 7   members of the joint appropriations subcommittee on
 8   education and the chairpersons and ranking members of
 9   the standing education committees of the senate and
10   the house of representatives by January 1, 1997.
11     The department of education shall submit an annual
12   report of funds expended and activities accomplished
13   in the K-12 and community college management
14   information system to the the general assembly and the
15   legislative fiscal bureau by January 1, 1997.  The
16   department shall determine the goals of the K-12 and
17   community college management information system and
18   establish a timeline by which the goals shall be
19   accomplished.  The goals and timeline shall be
20   included in the annual report submitted to the general
21   assembly and the legislative fiscal bureau by January
22   1, 1997.
23     2.  VOCATIONAL EDUCATION ADMINISTRATION
24     For salaries, support, maintenance, miscellaneous
25   purposes, and for not more than the following full-
26   time equivalent positions:
27  		 $	    656,057
28  		 FTEs	      18.60
29     3.  BOARD OF EDUCATIONAL EXAMINERS
30     For salaries, support, maintenance, miscellaneous
31   purposes, and for not more than the following full-
32   time equivalent positions:
33  		 $	    194,582
34  		 FTEs	       2.00
35     4.  VOCATIONAL REHABILITATION DIVISION
36     a.  For salaries, support, maintenance,
37   miscellaneous purposes, and for not more than the
38   following full-time equivalent positions:
39  		 $	  4,098,243
40  		 FTEs	     289.75
41     The division of vocational rehabilitation services
42   of the department of education shall seek, in addition
43   to state appropriations, funds other than federal
44   funds, which may include but are not limited to local
45   funds, for purposes of matching federal vocational
46   rehabilitation funds.
47     Notwithstanding the full-time equivalent position
48   limit established in this subsection for the fiscal
49   year ending June 30, 1997, if federal funding is
50   available to pay the costs of additional employees for
Page   8

 1   the vocational rehabilitation division who would have
 2   duties relating to vocational rehabilitation services
 3   paid for through federal funding, authorization to
 4   hire not more than four full-time equivalent employees
 5   shall be provided, the full-time equivalent position
 6   limit shall be exceeded, and the additional employees
 7   shall be hired by the division.
 8     b.  For matching funds for programs to enable
 9   severely physically or mentally disabled persons to
10   function more independently, including salaries and
11   support, and for not more than the following full-time
12   equivalent positions:
13  		 $	     75,169
14  		 FTEs	       1.50
15     5.  STATE LIBRARY
16     For salaries, support, maintenance, miscellaneous
17   purposes, and for not more than the following full-
18   time equivalent positions:
19  		 $	  2,797,190
20  		 FTEs	      34.50
21     Reimbursement of the institutions of higher
22   learning under the state board of regents for
23   participation in the access plus program during the
24   fiscal year beginning July 1, 1996, and ending June
25   30, 1997, shall not exceed the total amount of
26   reimbursement paid to the regents institutions of
27   higher learning for participation in the access plus
28   program during the fiscal year beginning July 1, 1995,
29   and ending June 30, 1996.
30     6.  REGIONAL LIBRARY
31     For state aid:
32  		 $	  1,537,000
33     7.  PUBLIC BROADCASTING DIVISION
34     For salaries, support, maintenance, capital
35   expenditures, miscellaneous purposes, and for not more
36   than the following full-time equivalent positions:
37  		 $	  7,075,335
38  		 FTEs	     104.50
39     8.  CAREER PATHWAYS PROGRAM
40     For purposes of developing and implementing a
41   career pathways program to expand opportunities for
42   youth and adults to become prepared for and succeed in
43   high-wage, high-skill employment:
44  		 $	    650,000
45     Of the funds appropriated in this subsection, and
46   from funds available pursuant to section 256.39,
47   subsection 7, for each year during the fiscal period
48   beginning July 1, 1996, and ending June 30, 1998,
49   $50,000 may be expended for purposes of employing an
50   individual to administer and direct the career
Page   9

 1   pathways program.
 2     Notwithstanding section 8.33, unobligated and
 3   unencumbered money remaining on June 30, 1997, from
 4   the allocation made in this subsection shall not
 5   revert but shall be available for expenditure during
 6   the following fiscal year.
 7     9.  VOCATIONAL EDUCATION TO SECONDARY SCHOOLS
 8     For reimbursement for vocational education
 9   expenditures made by secondary schools:
10  		 $	  3,308,850
11     Funds allocated in this subsection shall be used
12   for expenditures made by school districts to meet the
13   standards set in sections 256.11, 258.4, and 260C.14
14   as a result of the enactment of 1989 Iowa Acts,
15   chapter 278.  Funds shall be used as reimbursement for
16   vocational education expenditures made by secondary
17   schools in the manner provided by the department of
18   education for implementation of the standards set in
19   1989 Iowa Acts, chapter 278.
20     10.  SCHOOL FOOD SERVICE
21     For use as state matching funds for federal
22   programs that shall be disbursed according to federal
23   regulations, including salaries, support, maintenance,
24   miscellaneous purposes, and for not more than the
25   following full-time equivalent positions:
26  		 $	  2,716,859
27  		 FTEs	      14.00
28     11.  TEXTBOOKS OF NONPUBLIC SCHOOL PUPILS
29     To provide funds for costs of providing textbooks
30   to each resident pupil who attends a nonpublic school
31   as authorized by section 301.1.  The funding is
32   limited to $20 per pupil and shall not exceed the
33   comparable services offered to resident public school
34   pupils:
35  		 $	    616,000
36     12.  VOCATIONAL AGRICULTURE YOUTH ORGANIZATION
37     To assist a vocational agriculture youth
38   organization sponsored by the schools to support the
39   foundation established by that vocational agriculture
40   youth organization and for other youth activities:
41  		 $	    107,900
42     13.  FAMILY RESOURCE CENTERS
43     For support of the family resource center
44   demonstration program established under chapter 256C:
45  		 $	    120,000
46     14.  CENTER FOR ASSESSMENT
47     For the purpose of developing academic standards in
48   the areas of math, history, science, English, language
49   arts, and geography:
50  		 $	    200,000
Page  10

 1     The department of education shall submit in a
 2   report to the general assembly by January 1, 1997, the
 3   amount of state funding anticipated to be needed to
 4   fund the department's future participation with the
 5   center for assessment and shall determine the number
 6   of years participation is necessary.
 7     15.  COMMUNITY COLLEGES
 8     Notwithstanding chapter 260D, if applicable, for
 9   general state financial aid, including general
10   financial aid to merged areas in lieu of personal
11   property tax replacement payments under section
12   427A.13, to merged areas as defined in section 260C.2,
13   for vocational education programs in accordance with
14   chapters 258 and 260C:
15   	$ 126,006,270
16	     The funds appropriated in this subsection shall be
17   allocated as follows:
18     a.  	Merged Area I	 $	  6,011,556
19     b.  	Merged Area II	 $	  7,088,572
20     c.  	Merged Area III	 $	  6,693,483
21     d.  	Merged Area IV	 $	  3,261,020
22     e.  	Merged Area V	 $	  6,820,986
23     f.  	Merged Area VI	 $	  6,321,009 
24     g.  	Merged Area VII	 $	  9,016,757
25     h.  	Merged Area IX	 $	 11,055,518
26     i.  	Merged Area X	 $	 17,159,800
27     j.  	Merged Area XI	 $	 18,467,633
28     k.  	Merged Area XII	 $	  7,281,649
29     l.  	Merged Area XIII	 $	  7,447,594
30     m.  	Merged Area XIV	 $	  3,303,347
31     n.  	Merged Area XV	 $	 10,303,739
32     o.  	Merged Area XVI	 $	  5,773,608
33     Of the moneys allocated to merged area XI in
34   paragraph "j", for the fiscal year beginning July 1,
35   1996, and ending June 30, 1997, $135,000 shall be
36   expended on the career opportunity program established
37   in section 260C.29 to provide assistance to minority
38   persons who major in fields or subject areas where
39   minorities are currently underutilized.
40     By January 1, 1997, the department of education, in
41   consultation with the Iowa association of community
42   college trustees, shall submit recommendations for a
43   funding formula that identifies and addresses
44   community college needs.
45     Unless the board of directors of a community
46   college filed a dental hygiene program intent form
47   with the department of education by December 1, 1995,
48   the board shall not authorize the creation of a dental
49   hygienist program until after the adjournment of the
50   first regular session of the Seventy-seventh General
Page  11

 1   Assembly.
 2     Sec. 7.  The board of directors of each community
 3   college shall submit to the department of education
 4   and the legislative fiscal bureau, by August 15, 1996,
 5   on forms designed by the department of education in
 6   consultation with the community colleges, information
 7   which shall include, but is not limited to, the
 8   following:
 9     1.  The number of full-time and part-time students
10   enrolled in each program offered by the community
11   college, listed by program.
12     2.  The number of and any appropriate demographic
13   information, including salaries of full-time and part-
14   time staff, relating to the faculty, administration,
15   and support personnel employed at each community
16   college.
17     3.  The full-time equivalent total of persons
18   employed as identified in subsection 2.
19     4.  Tuition charges, fees, and other costs payable
20   to the community college by a student.
21     5.  The types of degrees granted by the community
22   college and the number of students receiving these
23   degrees.
24     6.  The amounts of revenues and expenditures from
25   state financial aid, federal funds, tax levies,
26   projects authorized under chapters 260E and 260F,
27   tuition, bonds, other local sources, foundation
28   sources, and donations and gifts that may be accepted
29   by the governing board of a community college.
30     7.  An inventory of buildings and facilities owned
31   and leased by the community college, and any related
32   operation and maintenance costs.
33     8.  Infrastructure plans, which shall include, but
34   are not limited to, the amounts expended in the
35   current fiscal year on renovation and construction,
36   and any future plans and projected costs for
37   expansion.
38     The department of education may withhold from a
39   community college any state financial assistance
40   appropriated to the department for allocation to the
41   community college for the fiscal year beginning July
42   1, 1996, and ending June 30, 1997, if the community
43   college fails to substantially meet the requirements
44   of this section.
45     Sec. 8.  Notwithstanding section 8.33 and 1995 Iowa
46   Acts, chapter 218, section 1, subsection 17, funds
47   appropriated and allocated for advanced placement
48   pursuant to 1995 Iowa Acts, chapter 218, section 1,
49   subsection 17, remaining unencumbered and unobligated
50   on June 30, 1996, shall not revert to the general fund
Page  12

 1   of the state but shall be distributed to the
 2   department of education for the fiscal year beginning
 3   July 1, 1996, and ending June 30, 1997, as follows:
 4     1.  The amount of $50,000 for participation by the
 5   department of education in a state and national
 6   project, the national assessment of education progress
 7   (NAEP), to determine the academic achievement of Iowa
 8   students in math, reading, science, United States
 9   history, or geography.
10     2.  The amount of $19,000 for purposes of providing
11   grants to support qualifying teams for a worldwide
12   academic competition.
13     If funds available from the specified source under
14   this section are insufficient to fully fund the
15   appropriations made in this section, the amounts
16   appropriated to the department for the purposes
17   specified under this section shall be reduced
18   proportionately.
19     Sec. 9.  DEPARTMENT OF EDUCATION INTERIM MEETING.
20   It is the intent of the general assembly that the
21   chairpersons and ranking members of the joint
22   appropriations subcommittee on education, the
23   legislative fiscal bureau, and the legislative service
24   bureau meet with representatives from the
25   international center for gifted and talented education
26   and the first in the nation in education foundation
27   during the 1996 legislative interim period to
28   determine and recommend a permanent funding source and
29   the amount of funding needed to support the center and
30   the foundation.
31     Sec. 10.  INTERNATIONAL CENTER FOR GIFTED AND
32   TALENTED EDUCATION.  It is the intent of the general
33   assembly that the international center for gifted and
34   talented education fund the gifted and talented summer
35   institute during the fiscal year beginning July 1,
36   1996, from the moneys appropriated to the
37   international center for gifted and talented education
38   pursuant to section 257B.1A for the fiscal year
39   beginning July 1, 1996, and ending June 30, 1997.
40     Sec. 11.  Notwithstanding section 257B.1A,
41   subsection 5, as amended by 1996 Iowa Acts, House File
42   570, and this Act, for the fiscal year beginning July
43   1, 1996, and ending June 30, 1997, 50 percent of the
44   interest remaining in the interest for Iowa schools
45   fund after the total of the transfer of moneys to the
46   first in the nation in education foundation pursuant
47   to section 257B.1A, subsection 2, and after the
48   transfer of moneys to the international center
49   endowment fund in section 257B.1A, subsection 3,
50   paragraph "a", shall, in addition, be transferred to
Page  13

 1   the international center endowment fund and the
 2   remaining 50 percent, rather than become a part of the
 3   interest for Iowa schools fund, shall be transferred
 4   to the first in the nation in education foundation.
 5                   STATE BOARD OF REGENTS
 6     Sec. 12.  There is appropriated from the general
 7   fund of the state to the state board of regents for
 8   the fiscal year beginning July 1, 1996, and ending
 9   June 30, 1997, the following amounts, or so much
10   thereof as may be necessary, to be used for the
11   purposes designated:
12     1.  OFFICE OF STATE BOARD OF REGENTS
13     a.  For salaries, support, maintenance,
14   miscellaneous purposes, and for not more than the
15   following full-time equivalent positions:
16  		 $	  1,137,417
17  		 FTEs	      15.63
18     If the moneys provided in this lettered paragraph
19   are augmented by reimbursements from the institutions
20   under the control of the state board of regents for
21   the funding of the office of the state board of
22   regents, the office shall report quarterly such
23   reimbursements to the chairpersons and ranking members
24   of the joint appropriations subcommittee on education.
25     The board shall prepare a quarterly report,
26   regarding the board office budget and the
27   reimbursements provided to the board by the
28   institutions of higher learning under the control of
29   the board, which shall be submitted quarterly to the
30   general assembly and the legislative fiscal bureau.
31     b.  For allocation by the state board of regents to
32   the state university of Iowa, the Iowa state
33   university of science and technology, and the
34   university of northern Iowa to reimburse the
35   institutions for deficiencies in their operating funds
36   resulting from the pledging of tuitions, student fees
37   and charges, and institutional income to finance the
38   cost of providing academic and administrative
39   buildings and facilities and utility services at the
40   institutions:
41  		 $	 26,984,350
42     The state board of regents, the department of
43   management, and the legislative fiscal bureau shall
44   cooperate to determine and agree upon, by November 15,
45   1996, the amount that needs to be appropriated for
46   tuition replacement for the fiscal year beginning July
47   1, 1997.
48     c.  For funds to be allocated to the southwest Iowa
49   graduate studies center:
50  		 $	    104,156
Page  14

 1     d.  For funds to be allocated to the siouxland
 2   interstate metropolitan planning council for the
 3   tristate graduate center under section 262.9,
 4   subsection 21:
 5  		 $	     74,511
 6     e.  For funds to be allocated to the quad-cities
 7   graduate studies center:
 8  		 $	    154,278
 9     It is the intent of the general assembly that the
10   state board of regents explore options relating to
11   locating the graduate centers under its control within
12   the appropriate campuses of the community college
13   system, and that the board consider the benefits of
14   fully utilizing the Iowa communications network to
15   maximize efficiency.  The board shall review options
16   regarding relocation of the centers and submit
17   recommendations to the legislative fiscal bureau and
18   the joint appropriations subcommittee on education by
19   January 1, 1997.
20     2.  STATE UNIVERSITY OF IOWA
21     a.  General university, including lakeside
22   laboratory
23     For salaries, support, maintenance, equipment,
24   miscellaneous purposes, and for not more than the
25   following full-time equivalent positions:
26  	 	$	202,702,328
27	  	FTEs	   4,022.97
28     b.  For the primary health care initiative in the
29   college of medicine and for not more than the
30   following full-time equivalent positions:
31  		 $	    771,000
32  		 FTEs	      11.00
33     From the moneys appropriated in this lettered
34   paragraph, $330,000 shall be allocated to the
35   department of family practice at the state university
36   of Iowa college of medicine for family practice
37   faculty and support staff.
38     c.  University hospitals
39     For salaries, support, maintenance, equipment, and
40   miscellaneous purposes and for medical and surgical
41   treatment of indigent patients as provided in chapter
42   255, for medical education, and for not more than the
43   following full-time equivalent positions:
44  		 $	 29,452,383
45  		 FTEs	   5,701.67
46     The university of Iowa hospitals and clinics shall
47   submit quarterly a report regarding the portion of the
48   appropriation in this lettered paragraph expended on
49   medical education.  The report shall be submitted in a
50   format jointly developed by the university of Iowa
Page  15

 1   hospitals and clinics, the legislative fiscal bureau,
 2   and the department of management, and shall delineate
 3   the expenditures and purposes of the funds.
 4     Funds appropriated in this lettered paragraph shall
 5   not be used to perform abortions except medically
 6   necessary abortions, and shall not be used to operate
 7   the early termination of pregnancy clinic except for
 8   the performance of medically necessary abortions.  For
 9   the purpose of this lettered paragraph, an abortion is
10   the purposeful interruption of pregnancy with the
11   intention other than to produce a live-born infant or
12   to remove a dead fetus, and a medically necessary
13   abortion is one performed under one of the following
14   conditions:
15     (1)  The attending physician certifies that
16   continuing the pregnancy would endanger the life of
17   the pregnant woman.
18     (2)  The attending physician certifies that the
19   fetus is physically deformed, mentally deficient, or
20   afflicted with a congenital illness.
21     (3)  The pregnancy is the result of a rape which is
22   reported within 45 days of the incident to a law
23   enforcement agency or public or private health agency
24   which may include a family physician.
25     (4)  The pregnancy is the result of incest which is
26   reported within 150 days of the incident to a law
27   enforcement agency or public or private health agency
28   which may include a family physician.
29     (5)  The abortion is a spontaneous abortion,
30   commonly known as a miscarriage, wherein not all of
31   the products of conception are expelled.
32     The total quota allocated to the counties for
33   indigent patients for the fiscal year beginning July
34   1, 1996, shall not be lower than the total quota
35   allocated to the counties for the fiscal year
36   commencing July 1, 1995.  The total quota shall be
37   allocated among the counties on the basis of the 1990
38   census pursuant to section 255.16.
39     d.  Psychiatric hospital
40     For salaries, support, maintenance, equipment,
41   miscellaneous purposes, for the care, treatment, and
42   maintenance of committed and voluntary public
43   patients, and for not more than the following full-
44   time equivalent positions:
45  		 $	  7,225,868
46  		 FTEs	     307.05
47     e.  Hospital-school
48     For salaries, support, maintenance, miscellaneous
49   purposes, and for not more than the following full-
50   time equivalent positions:
Page  16

 1  		 $	  5,938,345
 2  		 FTEs	     167.10
 3     f.  Oakdale campus
 4     For salaries, support, maintenance, miscellaneous
 5   purposes, and for not more than the following full-
 6   time equivalent positions:
 7  		 $	  2,896,269
 8  		 FTEs	      63.58
 9     g.  State hygienic laboratory
10     For salaries, support, maintenance, miscellaneous
11   purposes, and for not more than the following full-
12   time equivalent positions:
13  		 $	  3,309,148
14  		 FTEs	     102.49
15     h.  Family practice program
16     For allocation by the dean of the college of
17   medicine, with approval of the advisory board, to
18   qualified participants, to carry out chapter 148D for
19   the family practice program, including salaries and
20   support, and for not more than the following full-time
21   equivalent positions:
22  		 $	  2,060,917
23  		 FTEs	     180.74
24     i.  Child health care services
25     For specialized child health care services,
26   including childhood cancer diagnostic and treatment
27   network programs, rural comprehensive care for
28   hemophilia patients, and the Iowa high-risk infant
29   follow-up program, including salaries and support, and
30   for not more than the following full-time equivalent
31   positions:
32  		 $	    464,274
33  		 FTEs	      10.60
34     j.  Agricultural health and safety programs
35     For agricultural health and safety programs, and
36   for not more than the following full-time equivalent
37   positions:
38  		 $	    253,213
39  		 FTEs	       3.48
40     k.  Statewide cancer registry
41     For the statewide cancer registry, and for not more
42   than the following full-time equivalent positions:
43  		 $	    195,167
44  		 FTEs	       3.07
45     l.  Substance abuse consortium
46     For funds to be allocated to the Iowa consortium
47   for substance abuse research and evaluation, and for
48   not more than the following full-time equivalent
49   positions:
50  		 $	     64,396
Page  17

 1  		 FTEs	       1.15
 2     m.  Center for biocatalysis
 3     For the center for biocatalysis, and for not more
 4   than the following full-time equivalent positions:
 5  		 $	  1,017,000
 6  		 FTEs	      14.40
 7     n.  National advanced driving simulator
 8     For the national advanced driving simulator, and
 9   for not more than the following full-time equivalent
10   positions:
11  		 $	    608,448
12  		 FTEs	       3.58
13     It is the intent of the general assembly that
14   fiscal year 1997-1998 shall be the last fiscal year in
15   which the general assembly appropriates funds for
16   purposes of the planning and construction of the
17   national advanced driving simulator.
18     o.  Research park
19     For salaries, support, maintenance, equipment,
20   miscellaneous purposes, and for not more than the
21   following full-time equivalent positions:
22  		 $	    321,000
23  		FTEs 	      4.35
24     3.  IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY
25     a.  General university
26     For salaries, support, maintenance, equipment,
27   miscellaneous purposes, and for not more than the
28   following full-time equivalent positions:
29  		 $	161,084,066
30	  	 FTEs	   3,583.64
31     Of the funds appropriated in this lettered
32   paragraph, for the fiscal year beginning July 1, 1996,
33   and ending June 30, 1997, $40,000 shall be expended
34   for purposes of the institute of public leadership.
35     Of the funds appropriated in this lettered
36   paragraph, for the fiscal year beginning July 1, 1996,
37   and ending June 30, 1997, $1,700,000 shall be expended
38   for purposes of the healthy livestock program.
39     b.  Agricultural experiment station
40     For salaries, support, maintenance, miscellaneous
41   purposes, and for not more than the following full-
42   time equivalent positions:
43  		 $	 31,754,200
44  		 FTEs	     546.98
45     c.  Cooperative extension service in agriculture
46   and home economics
47     For salaries, support, maintenance, miscellaneous
48   purposes, including salaries and support for the fire
49   service institute, and for not more than the following
50   full-time equivalent positions:
Page  18

 1  		 $	 19,280,398
 2  		 FTEs	     431.85
 3     By January 1, 1997, Iowa state university of
 4   science and technology shall submit a report
 5   concerning the population served and each service
 6   provided by the Iowa cooperative extension service in
 7   agriculture and home economics to the chairpersons and
 8   ranking members of the joint appropriations
 9   subcommittee on education and the legislative fiscal
10   bureau.
11     d.  Leopold center
12     For agricultural research grants at Iowa state
13   university under section 266.39B, and for not more
14   than the following full-time equivalent positions:
15  		 $	    560,593
16  		 FTEs	      11.25
17     e.  Livestock disease research
18     For deposit in and the use of the livestock disease
19   research fund under section 267.8, and for not more
20   than the following full-time equivalent positions:
21  		 $	    276,022
22  		 FTEs	       3.17
23     f.  Research park
24     For salaries, support, maintenance, miscellaneous
25   purposes, and for not more than the following full-
26   time equivalent positions:
27  		 $	    370,000
28  		 FTEs	       4.31
29     4.  UNIVERSITY OF NORTHERN IOWA
30     a.  General university
31     For salaries, support, maintenance, equipment,
32   miscellaneous purposes, and for not more than the
33   following full-time equivalent positions:
34  		 $	 72,083,159
35  		 FTEs	   1,425.50
36     b.  Recycling and reuse center
37  		 $	    239,745
38     c.  Metal casting
39  		 $	    160,000
40     5.  STATE SCHOOL FOR THE DEAF
41     For salaries, support, maintenance, miscellaneous
42   purposes, and for not more than the following full-
43   time equivalent positions:
44  		 $	  6,703,655
45  		 FTEs	     124.14
46     6.  IOWA BRAILLE AND SIGHT SAVING SCHOOL
47     For salaries, support, maintenance, miscellaneous
48   purposes, and for not more than the following full-
49   time equivalent positions:
50  		 $	  3,736,503
Page  19

 1  		 FTEs	      83.68
 2     7.  TUITION AND TRANSPORTATION COSTS
 3     For payment to local school boards for the tuition
 4   and transportation costs of students residing in the
 5   Iowa braille and sight saving school and the state
 6   school for the deaf pursuant to section 262.43 and for
 7   payment of certain clothing and transportation costs
 8   for students at these schools pursuant to section
 9   270.5:
10  		 $	     11,882
11     Sec. 13.  If revenues received by the state board
12   of regents from indirect cost reimbursements, refunds
13   and reimbursements, interest, and other categories
14   within the general operating budgets of the
15   institutions of higher learning under the control of
16   the regents equal an amount greater than the original
17   budget approved by the regents board for the fiscal
18   year beginning July 1, 1996, and ending June 30, 1997,
19   the increase shall be used for building repair,
20   deferred maintenance, or fire safety at the respective
21   institutions of higher learning under the control of
22   the board, and shall not be used to increase budget
23   ceilings adopted by the regents board.
24     Sec. 14.  Reallocations of sums received under
25   section 12, subsections 2, 3, 4, 5, and 6, of this
26   Act, including sums received for salaries, shall be
27   reported on a quarterly basis to the co-chairpersons
28   and ranking members of the legislative fiscal
29   committee and the joint appropriations subcommittee on
30   education.
31     Sec. 15.  It is the intent of the general assembly
32   that $328,155 of the money appropriated to the
33   university of northern Iowa for the fiscal year
34   beginning July 1, 1996, and ending June 30, 1997, in
35   1996 Iowa Acts, Senate File 2195, section 3, if
36   enacted, shall be treated by the department of
37   management in the same manner as the money
38   appropriated under the general university category for
39   the university of northern Iowa in section 12,
40   subsection 4, paragraph "a", of this Act.
41     Sec. 16.  Notwithstanding section 8.33, funds
42   appropriated in 1995 Iowa Acts, chapter 218, section
43   6, subsection 1, paragraph "b", remaining unencumbered
44   or unobligated on June 30, 1996, shall not revert to
45   the general fund of the state but shall be available
46   for expenditure for the purposes listed in section 12,
47   subsection 1, paragraph "b", of this Act during the
48   fiscal year beginning July 1, 1996, and ending June
49   30, 1997.
50     Sec. 17.  MEDICAL ASSISTANCE - SUPPLEMENTAL
Page  20

 1   AMOUNTS.  For the fiscal year beginning July 1, 1996,
 2   and ending June 30, 1997, the department of human
 3   services shall continue the supplemental
 4   disproportionate share and a supplemental indirect
 5   medical education adjustment applicable to state-owned
 6   acute care hospitals with more than 500 beds and shall
 7   reimburse qualifying hospitals pursuant to that
 8   adjustment with a supplemental amount for services
 9   provided medical assistance recipients.  The
10   adjustment shall generate supplemental payments
11   intended to equal the state appropriation made to a
12   qualifying hospital for treatment of indigent patients
13   as provided in chapter 255.  To the extent of the
14   supplemental payments, a qualifying hospital shall,
15   after receipt of the funds, transfer to the department
16   of human services an amount equal to the actual
17   supplemental payments that were made in that month.
18   The aggregate amounts for the fiscal year shall not
19   exceed the state appropriation made to the qualifying
20   hospital for treatment of indigent patients as
21   provided in chapter 255.  The department of human
22   services shall deposit the portion of these funds
23   equal to the state share in the department's medical
24   assistance account and the balance shall be credited
25   to the general fund of the state.  To the extent that
26   state funds appropriated to a qualifying hospital for
27   the treatment of indigent patients as provided in
28   chapter 255 have been transferred to the department of
29   human services as a result of these supplemental
30   payments made to the qualifying hospital, the
31   department shall not, directly or indirectly, recoup
32   the supplemental payments made to a qualifying
33   hospital for any reason, unless an equivalent amount
34   of the funds transferred to the department of human
35   services by a qualifying hospital pursuant to this
36   provision is transferred to the qualifying hospital by
37   the department.
38     If the state supplemental amount allotted to the
39   state of Iowa for the federal fiscal year beginning
40   October 1, 1996, and ending September 30, 1997,
41   pursuant to section 1923 (f)(3) of the federal Social
42   Security Act, as amended, or pursuant to federal
43   payments for indirect medical education is greater
44   than the amount necessary to fund the federal share of
45   the supplemental payments specified in the preceding
46   paragraph, the department of human services shall
47   increase the supplemental disproportionate share or
48   supplemental indirect medical education adjustment by
49   the lesser of the amount necessary to utilize fully
50   the state supplemental amount or the amount of state
Page  21

 1   funds appropriated to the state university of Iowa
 2   general education fund and allocated to the university
 3   for the college of medicine.  The state university of
 4   Iowa shall transfer from the allocation for the
 5   college of medicine to the department of human
 6   services, on a monthly basis, an amount equal to the
 7   additional supplemental payments made during the
 8   previous month pursuant to this paragraph.  A
 9   qualifying hospital receiving supplemental payments
10   pursuant to this paragraph that are greater than the
11   state appropriation made to the qualifying hospital
12   for treatment of indigent patients as provided in
13   chapter 255 shall be obligated as a condition of its
14   participation in the medical assistance program to
15   transfer to the state university of Iowa general
16   education fund on a monthly basis an amount equal to
17   the funds transferred by the state university of Iowa
18   to the department of human services.  To the extent
19   that state funds appropriated to the state university
20   of Iowa and allocated to the college of medicine have
21   been transferred to the department of human services
22   as a result of these supplemental payments made to the
23   qualifying hospital, the department shall not,
24   directly or indirectly, recoup these supplemental
25   payments made to a qualifying hospital for any reason,
26   unless an equivalent amount of the funds transferred
27   to the department of human services by the state
28   university of Iowa pursuant to this paragraph is
29   transferred to the qualifying hospital by the
30   department.
31     Continuation of the supplemental disproportionate
32   share and supplemental indirect medical education
33   adjustment shall preserve the funds available to the
34   university hospital for medical and surgical treatment
35   of indigent patients as provided in chapter 255 and to
36   the state university of Iowa for educational purposes
37   at the same level as provided by the state funds
38   initially appropriated for that purpose.
39     The department of human services shall, in any
40   compilation of data or other report distributed to the
41   public concerning payments to providers under the
42   medical assistance program, set forth reimbursements
43   to a qualifying hospital through the supplemental
44   disproportionate share and supplemental indirect
45   medical education adjustment as a separate item and
46   shall not include such payments in the amounts
47   otherwise reported as the reimbursement to a
48   qualifying hospital for services to medical assistance
49   recipients.
50     For purposes of this section, "supplemental
Page  22

 1   payment" means a supplemental payment amount paid for
 2   medical assistance to a hospital qualifying for that
 3   payment under this section.
 4     Sec. 18.  For the fiscal year beginning July 1,
 5   1996, and ending June 30, 1997, the state board of
 6   regents may use notes, bonds, or other evidences of
 7   indebtedness issued under section 262.48 to finance
 8   projects that will result in energy cost savings in an
 9   amount that will cause the state board to recover the
10   cost of the projects within an average of six years.
11     Sec. 19.  Notwithstanding section 270.7, the
12   department of revenue and finance shall pay the state
13   school for the deaf and the Iowa braille and sight
14   saving school the moneys collected from the counties
15   during the fiscal year beginning July 1, 1996, for
16   expenses relating to prescription drug costs for
17   students attending the state school for the deaf and
18   the Iowa braille and sight saving school.
19     Sec. 20.  Section 11.6, subsection 1, paragraph a,
20   unnumbered paragraph 1, Code 1995, is amended to read
21   as follows:
22     The financial condition and transactions of all
23   cities and city offices, counties, county hospitals
24   organized under chapters 347 and 347A, memorial
25   hospitals organized under chapter 37, entities
26   organized under chapter 28E having gross receipts in
27   excess of one hundred thousand dollars in a fiscal
28   year, merged areas, area education agencies, and all
29   school offices in school districts, shall be examined
30   at least once each year, except that cities having a
31   population of seven hundred or more but less than two
32   thousand shall be examined at least once every four
33   years, and cities having a population of less than
34   seven hundred may be examined as otherwise provided in
35   this section.  The examination shall cover the fiscal
36   year next preceding the year in which the audit is
37   conducted.  The examination of school offices shall
38   include an audit of all school funds, the certified
39   annual financial report, and the certified enrollment
40   as provided in section 257.6.  Examinations of
41   community colleges shall include an audit of eligible
42   and noneligible contact hours as defined in section
43   260D.2.  Eligible and noneligible contact hours and
44   any differences Differences in certified enrollment
45   shall be reported to the department of management.
46     Sec. 21.  Section 256.52, subsections 1 and 2, Code
47   1995, are amended to read as follows:
48     1.  The state commission of libraries consists of
49   one member appointed by the supreme court, the
50   director of the department of education, or the
Page  23

 1   director's designee, and six members appointed by the
 2   governor to serve four-year terms beginning and ending
 3   as provided in section 69.19.  Of the governor's
 4   appointees, one member shall be from the medical
 5   profession and five members selected at large.  Not
 6   more than three of the members appointed by the
 7   governor shall be of the same gender.  The members
 8   shall be reimbursed for their actual expenditures
 9   necessitated by their official duties.  Members may
10   also be eligible for compensation as provided in
11   section 7E.6.
12     2.  The commission shall elect one of its members
13   as chairperson.  The commission shall meet at the time
14   and place specified by call of the chairperson.  Four
15   Five members are a quorum for the transaction of
16   business.
17     Sec. 22.  Section 257.31, subsection 16, Code 1995,
18   is amended to read as follows:
19     16.  The committee shall perform the duties
20   assigned to it under chapter 260D and section
sections
21   257.32 and 260C.18B.
22     Sec. 23.  Section 257B.1A, subsections 2 through 4,
23   if enacted by 1996 Iowa Acts, House File 570, are
24   amended to read as follows:
25     2.  For a transfer of moneys from the interest for
26   Iowa schools fund to the first in the nation in
27   education foundation, prior to July 1, October 1,
28   January 1, and March 1 of each year, the governing
29   board of the first in the nation in education
30   foundation established in section 257A.2 shall certify
31   to the treasurer of state the cumulative total value
32   of cash contributions received under section 257A.7
33   for deposit in the first in the nation in education
34   fund and for the use of the foundation.  The value of
35   in-kind contributions shall be based upon the fair
36   market value of the contribution determined for income
37   tax purposes.
38     The portion of the permanent school fund that is
39   equal to the cumulative total value of cash
40   contributions, less the portion of the permanent
41   school fund dedicated to the international center for
42   gifted and talented education, is dedicated to the
43   first in the nation in education foundation for that
44   year.  The interest earned on this dedicated amount
45   shall be transferred by the treasurer of state to the
46   credit of the first in the nation in education
47   foundation.
48     3.  a.  For a transfer of moneys from the interest
49   for Iowa schools fund to the international center
50   endowment fund established in section 263.8A, prior to
Page  24

 1   July 1, October 1, January 1, and March 1 of each
 2   year, the state university of Iowa shall certify to
 3   the treasurer of state the cumulative total value of
 4   cash contributions received and deposited in the
 5   international center endowment fund.  Within fifteen
 6   days following certification by the state university
 7   of Iowa, the treasurer of state shall transfer from
 8   the interest for Iowa schools fund to the
 9   international center an amount equal to the amount of
10   interest earned on the portion of the permanent school
11   fund that is equal to one-half the cumulative total
12   value of the cash contributions deposited in the
13   international center endowment fund, not to exceed
14   eight hundred seventy-five thousand dollars.
15     b.  However, if prior to July 1, 1998, the general
16   assembly appropriates moneys for the international
17   center endowment fund established in section 263.8A in
18   an aggregate amount equal to eight hundred seventy-
19   five thousand dollars, the transfer of the interest
20   earned based upon the cumulative value of cash
21   contributions equal to one million seven hundred fifty
22   thousand dollars deposited in the international center
23   endowment fund on July 1, 1995, is no longer required
24   under this section.  If, on or after July 1, 1998, the
25   general assembly appropriates moneys for the
26   international center endowment fund in an aggregate
27   amount equal to six hundred seventy-five thousand
28   dollars, the transfer of interest earned based upon
29   the cumulative value of cash contributions equal to
30   one million three hundred fifty thousand dollars
31   deposited in the international center endowment fund
32   between July 1, 1995, and June 30, 1998, is no longer
33   required under this section.
34     4.  In addition to the moneys transferred pursuant
35   to subsection 3, paragraph "a", effective on the date
36   on which the cumulative total value of cash
37   contributions deposited in the international center
38   endowment fund between July 1, 1995, and June 30,
39   1998, equals or exceeds one million three hundred
40   fifty thousand dollars, and annually thereafter, the
41   treasurer of state shall transfer moneys from the
42   interest for Iowa schools fund to the international
43   center endowment fund in an amount equal to the
44   interest earned on six hundred seventy-five thousand
45   dollars in the permanent school fund.
46     Sec. 24.  Section 260C.2, Code 1995, is amended by
47   adding the following new subsection:
48     NEW SUBSECTION.  2A.  "Instructional cost center"
49   means one of the following areas of course offerings
50   of the community colleges:
Page  25

 1     a.  Arts and sciences cost center.
 2     b.  Vocational-technical preparatory cost center.
 3     c.  Vocational-technical supplementary cost center.
 4     d.  Adult basic education and high school
 5   completion cost center.
 6     e.  Continuing and general education cost center.
 7     Sec. 25.  Section 260C.4, subsection 4, paragraph
 8   h, Code 1995, is amended to read as follows:
 9     h.  This subsection is void and shall be stricken
10   from the Code effective June 30, 1995 1998, except
as
11   provided in section 260C.47.
12     Sec. 26.  Section 260C.14, Code 1995, is amended by
13   adding the following new subsection:
14     NEW SUBSECTION.  22.  Provide, within a reasonable
15   time, information as requested by the departments of
16   management and education.
17     Sec. 27.  Section 260C.18, subsection 4, Code 1995,
18   is amended to read as follows:
19     4.  State aid and supplemental state aid to be paid
20   in accordance with the statutes which provide such
21   aid.
22     Sec. 28.  NEW SECTION.  260C.18A  STATE AID.
23     For the fiscal year beginning July 1, 1996, and for
24   each succeeding fiscal year, moneys appropriated by
25   the general assembly from the general fund of the
26   state to the department of education for community
27   college purposes for general state financial aid,
28   including general financial aid to merged areas in
29   lieu of personal property tax replacement payments
30   under section 427A.13, to merged areas as defined in
31   section 260C.2, and for vocational education programs
32   in accordance with chapters 258 and 260C, for a fiscal
33   year, shall be allocated to each community college by
34   the department of education in the proportion that the
35   allocation to that community college in 1995 Iowa
36   Acts, chapter 218, section 1, subsection 19, bears to
37   the total appropriation made in 1995 Iowa Acts,
38   chapter 218, section 1, subsection 19.
39     Sec. 29.  NEW SECTION.  260C.18B  COMMUNITY COLLEGE
40   BUDGET REVIEW.
41     1.  A community college budget review procedure is
42   established for the school budget review committee
43   created in section 257.30.  The school budget review
44   committee, in addition to its duties under chapter
45   257, shall meet and hold hearings each year under this
46   chapter to review unusual circumstances of community
47   colleges, either upon the committee's motion or upon
48   the request of a community college.  The committee may
49   grant supplemental state aid to the community college
50   from funds appropriated to the department of education
Page  26

 1   for community college budget review purposes.
 2     Unusual circumstances shall include but not be
 3   limited to the following:
 4     a.  An unusual increase or decrease in enrollment
 5   or contact hours.
 6     b.  Natural disasters.
 7     c.  Unusual staffing problems.
 8     d.  Unusual necessity for additional funds to
 9   permit continuance of a course or program in an
10   instructional cost center which provides substantial
11   benefit to students.
12     e.  Unusual need for a new course or program in an
13   instructional cost center which will provide
14   substantial benefit to students, if the community
15   college establishes the need and the amount of
16   necessary increased cost.
17     f.  Unique problems of community colleges to
18   include vandalism, civil disobedience, and other costs
19   incurred by community colleges.
20     2.  When the school budget review committee makes a
21   decision under subsection 1, it shall provide written
22   notice of its decision, including the amount of
23   supplemental state aid approved, to the board of
24   directors of the community college and to the
25   department of education.
26     3.  All decisions by the school budget review
27   committee under this chapter shall be made in
28   accordance with reasonable and uniform policies which
29   shall be consistent with this chapter.
30     4.  Failure by a community college to provide
31   information or appear before the school budget review
32   committee as requested for the accomplishment of
33   review or hearing constitutes justification for the
34   committee to instruct the department of revenue and
35   finance to withhold supplemental state aid to that
36   community college until the committee's inquiries are
37   satisfied completely.
38     Sec. 30.  Section 260C.22, Code 1995, is amended by
39   adding the following new subsection:
40     NEW SUBSECTION.  4.  The board of directors of any
41   merged area that failed to certify for levy under
42   subsection 3 by March 15, 1982, and March 15, 1983,
43   may certify for levy by April 15, 1997, and April 15,
44   1998, a tax on taxable property in the merged area at
45   rates that will provide total revenues for the two
46   years equal to five percent of the area school's
47   general fund expenditures for the fiscal year ending
48   June 30, 1995, in order to provide a cash reserve for
49   that area school.  As nearly as possible, one-half the
50   revenue for the cash reserve fund shall be collected
Page  27

 1   during each year.
 2     The revenues derived from the levies shall be
 3   placed in a separate cash reserve fund.
 4   Notwithstanding subsection 3, moneys from the cash
 5   reserve fund established by a merged area under
 6   subsection 3 or this subsection shall be used only to
 7   alleviate temporary cash shortages and for the
 8   acquisition, lease, lease-purchase, installation, and
 9   maintenance of instructional technology equipment,
10   including hardware and software, materials and
11   supplies, and staff development and training related
12   to instructional technology.  If moneys from the cash
13   reserve fund are used to alleviate a temporary cash
14   shortage, the cash reserve fund shall be reimbursed
15   immediately from the general fund of the community
16   college as funds in the general fund become available,
17   but in no case later than June 30 of the current
18   fiscal year, to repay the funds taken from the cash
19   reserve fund.
20     Sec. 31.  Section 260C.29, subsection 3, Code
21   Supplement 1995, is amended by adding the following
22   new paragraphs:
23     NEW PARAGRAPH.  f.  Contract with other community
24   colleges to expand the availability of program
25   services and increase the number of students served by
26   the program.
27     NEW PARAGRAPH.  g.  Establish a separate account,
28   which shall consist of all appropriations, grants,
29   contributions, bequests, endowments, or other moneys
30   or gifts received specifically for purposes of the
31   program by the community college administering the
32   program as provided in subsection 2.  Not less than
33   eighty percent of the funds received from state
34   appropriations for purposes of the program shall be
35   used for purposes of assistance to students as
36   provided in subsection 5.
37     Sec. 32.  Section 260C.34, Code 1995, is amended to
38   read as follows:
39     260C.34  USES OF FUNDS.
40     Funds obtained pursuant to section 260C.17; section
41   260C.18, subsections 3, 4, and 5 of section 260C.18;
42   section and sections 260C.18A, 260C.18B,
260C.19;, and
43   section 260C.22 shall not be used for the construction
44   or maintenance of athletic buildings or grounds but
45   may be used for a project under section 260C.56.
46     Sec. 33.  Section 260C.39, unnumbered paragraph 5,
47   Code 1995, is amended to read as follows:
48     The terms of employment of personnel, for the
49   academic year following the effective date of the
50   agreement to combine the merged areas shall not be
Page  28

 1   affected by the combination of the merged areas,
 2   except in accordance with the procedures under
 3   sections 279.15 to 279.18 and section 279.24, to the
 4   extent those procedures are applicable, or under the
 5   terms of the base bargaining agreement.  The authority
 6   and responsibility to offer new contracts or to
 7   continue, modify, or terminate existing contracts
 8   pursuant to any applicable procedures under chapter
 9   279, shall be transferred to the acting, and then to
10   the new, board of the combined merged area upon
11   certification of a favorable vote to each of the
12   merged areas affected by the agreement.  The
13   collective bargaining agreement of the merged area
14   with the largest number of contact hours eligible for
15   receiving the greatest amount of general state
aid, as
16   defined under section 260D.2, shall serve as the base
17   agreement for the combined merged area and the
18   employees of the merged areas which combined to form
19   the new combined merged area shall automatically be
20   accreted to the bargaining unit from that former
21   merged area for purposes of negotiating the contracts
22   for the following years without further action by the
23   public employment relations board.  If only one
24   collective bargaining agreement is in effect among the
25   merged areas which are combining under this section,
26   then that agreement shall serve as the base agreement,
27   and the employees of the merged areas which are
28   combining to form the new combined merged area shall
29   automatically be accreted to the bargaining unit of
30   that former merged area for purposes of negotiating
31   the contracts for the following years without further
32   action by the public employment relations board.  The
33   board of the combined merged area, using the base
34   agreement as its existing contract, shall bargain with
35   the combined employees of the merged areas that have
36   agreed to combine for the academic year beginning with
37   the effective date of the agreement to combine merged
38   areas.  The bargaining shall be completed by March 15
39   prior to the academic year in which the agreement to
40   combine merged areas becomes effective or within one
41   hundred eighty days after the organization of the
42   acting board of the new combined merged area,
43   whichever is later.  If a bargaining agreement was
44   already concluded in the former merged area which has
45   the collective bargaining agreement that is serving as
46   the base agreement for the new combined merged area,
47   between the former merged area board and the employees
48   of the former merged area, that agreement is void,
49   unless the agreement contained multiyear provisions
50   affecting academic years subsequent to the effective
Page  29

 1   date of the agreement to form a combined merged area.
 2   If the base collective bargaining agreement contains
 3   multiyear provisions, the duration and effect of the
 4   agreement shall be controlled by the terms of the
 5   agreement.  The provisions of the base agreement shall
 6   apply to the offering of new contracts, or the
 7   continuation, modification, or termination of existing
 8   contracts between the acting or new board of the
 9   combined merged area and the combined employees of the
10   new combined merged area.
11     Sec. 34.  Section 260C.47, subsection 1, unnumbered
12   paragraph 1, Code 1995, is amended to read as follows:
13     The state board of education shall establish an
14   accreditation process for community college programs
15   by July 1, 1994 1997.  The process shall be jointly
16   developed and agreed upon by the department of
17   education and the community colleges.  The state
18   accreditation process shall be integrated with the
19   accreditation process of the north central association
20   of colleges and schools, including the evaluation
21   cycle, the self-study process, and the criteria for
22   evaluation, which shall incorporate the standards for
23   community colleges developed under section 260C.48;
24   and shall identify and make provision for the needs of
25   the state that are not met by the association's
26   accreditation process.  If a joint agreement has not
27   been reached by July 1, 1994 1997, the approval
28   process provided under section 260C.4, subsection 4,
29   shall remain the required accreditation process for
30   community colleges.  For the academic year commencing
31   July 1, 1995 1998, and in succeeding school years,
the
32   department of education shall use a two-component
33   process for the continued accreditation of community
34   college programs.
35     Sec. 35.  NEW SECTION.  260C.49  RULES.
36     The department of education shall adopt rules and
37   definitions of terms necessary for the administration
38   of this chapter.  The school budget review committee
39   shall adopt rules under chapter 17A to carry out
40   section 260C.18B.
41     Sec. 36.  Section 261.12, subsection 1, paragraph
42   b, Code Supplement 1995, is amended to read as
43   follows:
44     b.  For the fiscal year beginning July 1, 1995
45   1996, and for each following fiscal year, two
three
46   thousand nine one hundred fifty dollars.
47     Sec. 37.  NEW SECTION.  261.21  NATIONAL GUARD
48   TUITION AID PROGRAM.
49     1.  Subject to an appropriation of sufficient funds
50   by the general assembly, a member of the national
Page  30

 1   guard who meets the eligibility requirements of this
 2   subsection is entitled to attend and pursue any
 3   undergraduate course of study at a community college
 4   as defined in chapter 260C, or an institution of
 5   higher learning under the control of the state board
 6   of regents upon the payment by the member personally
 7   of fifty percent of the tuition charged by the
 8   community college or institution of higher learning.
 9   The remaining tuition shall be paid by the college
10   student aid commission from funds appropriated by the
11   general assembly.  To be eligible for tuition aid
12   under this section, a national guard member shall meet
13   the following conditions:
14     a.  Be a resident of the state and a member of an
15   Iowa army or air national guard unit throughout each
16   semester or duration of the vocational program for
17   which the member has applied for benefits.
18     b.  Have satisfactorily completed required initial
19   active duty training.
20     c.  Have maintained satisfactory performance of
21   duty upon return from initial active duty training,
22   including attending a minimum ninety percent of
23   scheduled drill dates and attending annual training.
24     d.  Have satisfactorily met the entrance
25   requirements for admission to a community college, or
26   institution of higher learning under the control of
27   the state board of regents, and maintain satisfactory
28   academic progress.
29     e.  Have provided proper notice of national guard
30   status to the community college or institution at the
31   time of registration for the term in which tuition
32   benefits are sought.
33     f.  Apply to the adjutant general of Iowa, who
34   shall determine eligibility and whose decision is
35   final.
36     2.  Participation in the tuition aid program by an
37   accredited private institution, as defined in section
38   261.9, is voluntary.  Subject to an appropriation of
39   sufficient funds by the general assembly, a member of
40   the Iowa national guard who meets the eligibility
41   requirements of subsection 1, except for subsection 1,
42   paragraph "d",  is entitled to attend and pursue any
43   undergraduate course of study at any participating
44   accredited private institution, as defined in section
45   261.9, upon admission to the institution and payment
46   of tuition less an amount equal to fifty percent of
47   the resident tuition rate established for institutions
48   of higher learning under the control of the state
49   board of regents.  The remaining tuition, not to
50   exceed fifty percent of the resident tuition rate for
Page  31

 1   a regents university, shall be paid by the college
 2   student aid commission from funds appropriated by the
 3   general assembly.
 4     3.  An eligible member of the national guard,
 5   attending an educational institution as a full-time
 6   student, shall not receive tuition aid under this
 7   section for more than eight semesters, or if attending
 8   as a part-time student, not more than sixteen
 9   semesters of undergraduate study, or the trimester or
10   quarter equivalent.  A guard member who has met the
11   educational requirements for a baccalaureate degree is
12   ineligible for tuition aid under this section.
13     4.  The eligibility of applicants shall be
14   certified by the adjutant general of Iowa to the
15   college student aid commission, and all amounts that
16   are or become due to a community college, accredited
17   private institution, or institution of higher learning
18   under the control of the state board of regents under
19   this section shall be paid to the college or
20   institution by the college student aid commission upon
21   receipt of certification by the president or governing
22   board of the educational institution as to accuracy of
23   charges made, and as to the attendance of the
24   individual at the educational institution.  The
25   college student aid commission shall maintain an
26   annual record of the number of participants and the
27   tuition dollar value of the participation.
28     5.  The college student aid commission shall adopt
29   rules pursuant to chapter 17A to administer this
30   section.
31     Sec. 38.  Section 261.25, subsections 1 and 3, Code
32   Supplement 1995, are amended to read as follows:
33     1.  There is appropriated from the general fund of
34   the state to the commission for each fiscal year the
35   sum of thirty-five thirty-eight million six hundred
36   sixty-four thousand seven hundred fifty dollars for
37   tuition grants.
38     3.  There is appropriated from the general fund of
39   the state to the commission for each fiscal year the
40   sum of one million four six hundred twenty-four
eight
41   thousand seven two hundred eighty
fifty-seven dollars
42   for vocational-technical tuition grants.
43     Sec. 39.  Section 261.48, unnumbered paragraph 4,
44   Code 1995, is amended by striking the unnumbered
45   paragraph.
46     Sec. 40.  Section 261C.6, subsection 2, unnumbered
47   paragraph 2, Code 1995, is amended to read as follows:
48     A pupil is not eligible to enroll on a full-time
49   basis in an eligible postsecondary institution and
50   receive payment for all courses in which a student is
Page  32

 1   enrolled.  If an eligible postsecondary institution is
 2   a community college established under chapter 260C,
 3   the contact hours of a pupil for which a tuition
 4   reimbursement amount is received are not contact hours
 5   eligible for general aid under chapter 260D.
 6     Sec. 41.  Section 262.9, subsection 4, unnumbered
 7   paragraph 1, Code Supplement 1995, is amended to read
 8   as follows:
 9     Manage and control the property, both real and
10   personal, belonging to the institutions.  The board
11   shall purchase or require the purchase of, when the
12   price is reasonably competitive and the quality as
13   intended, and in keeping with the schedule established
14   in this subsection, soybean-based inks and plastic
15   products with recycled content, including but not
16   limited to plastic garbage can liners.  For purposes
17   of this subsection, "recycled content" means that the
18   content of the product contains a minimum of thirty
19   percent postconsumer material.  All inks purchased
20   that are used internally or are contracted for by the
21   board shall be soybean-based to the extent
22   formulations for such inks are available.
23     Sec. 42.  Section 262.9, subsection 4, paragraphs
24   a, b, and c, Code Supplement 1995, are amended by
25   striking the paragraphs.
26     Sec. 43.  Section 262.9, subsection 10, Code
27   Supplement 1995, is amended by striking the
28   subsection.
29     Sec. 44.  Section 262.9, Code Supplement 1995, is
30   amended by adding the following new subsection:
31     NEW SUBSECTION.  30.  By January 1 annually, submit
32   a report to the general assembly and the legislative
33   fiscal bureau on the facilities overhead use allowance
34   and the amount of building and equipment use
35   allowances of the overall indirect cost recovery on
36   federally sponsored research programs.  The report
37   shall include the individual institutional policies of
38   distribution of the federal facilities overhead use
39   allowance within each institution of higher learning
40   under the control of the board, and shall be in a
41   format agreed to by the board and the legislative
42   fiscal bureau.
43     Sec. 45.  Section 262.34A, Code 1995, is amended to
44   read as follows:
45     262.34A  BID REQUESTS.
46     The state board of regents shall request bids and
47   proposals for materials, products, supplies,
48   provisions, and other needed articles to be purchased
49   at public expense, from Iowa state industries as
50   defined in section 904.802, subsection 2, when the
Page  33

 1   articles are available in the requested quantity and
 2   at comparable prices and quality.  The exceptions
 3   provided under section 904.808, subsection 1, shall
 4   not apply to the state board of regents.
 5     Sec. 46.  Section 272.2, subsection 15, if enacted
 6   by 1996 Iowa Acts, House File 455, is amended to read
 7   as follows:
 8     15.  Adopt rules that require specificity in
 9   written complaints that are filed by individuals who
10   have personal knowledge of an alleged violation and
11   which are accepted by the board, provide that the
12   jurisdictional requirements as set by the board in
13   administrative rule are met on the face of the
14   complaint before initiating an investigation of
15   allegations, provide that before initiating an
16   investigation of allegations, provide that any
17   investigation be limited to the allegations contained
18   on the face of the complaint, provide for an adequate
19   interval between the receipt of a complaint and public
20   notice of the complaint, permit parties to a complaint
21   to mutually agree to a resolution of the complaint
22   filed with the board, allow the respondent the right
23   to review any investigative report for accuracy with
24   its author prior to the submission of the report to
25   upon a finding of probable cause for further action by
26   the board, require that the conduct providing the
27   basis for the complaint occurred within three years of
28   the filing discovery of the complaint event
by the
29   complainant unless good cause can be shown for an
30   extension of this limitation, and require complaints
31   to be resolved within one hundred eighty days unless
32   good cause can be shown for an extension of this
33   limitation.
34     Sec. 47.  Section 273.3, subsection 12, Code 1995,
35   is amended to read as follows:
36     12.  Prepare an annual budget estimating income and
37   expenditures for programs and services as provided in
38   sections 273.1 to 273.9 and chapter 256B within the
39   limits of funds provided under section 256B.9 and
40   chapter 257.  The board shall give notice of a public
41   hearing on the proposed budget by publication in an
42   official county newspaper in each county in the
43   territory of the area education agency in which the
44   principal place of business of a school district that
45   is a part of the area education agency is located.
46   The notice shall specify the date, which shall be not
47   later than March 1 of each year, the time, and the
48   location of the public hearing.  The proposed budget
49   as approved by the board shall then be submitted to
50   the state board of education, on forms provided by the
Page  34

 1   department, no later than March 15 preceding the next
 2   fiscal year for approval.  The state board shall
 3   review the proposed budget of each area education
 4   agency and shall before April 1, either grant approval
 5   or return the budget without approval with comments of
 6   the state board included.  An unapproved budget shall
 7   be resubmitted to the state board for final approval
 8   not later than April 15.  For the fiscal year
 9   beginning July 1, 1999, and each succeeding fiscal
10   year, the state board shall give final approval only
11   to budgets submitted by area education agencies
12   accredited by the state board or that have been given
13   conditional accreditation by the state board.
14     Sec. 48.  Section 273.3, Code 1995, is amended by
15   adding the following new subsection:
16     NEW SUBSECTION.  22.  Meet annually with the
17   members of the boards of directors of the school
18   districts located within its boundaries if requested
19   by the school district boards.
20     Sec. 49.  NEW SECTION.  273.10  ACCREDITATION OF
21   AREA EDUCATION PROGRAMS.
22     1.  The department of education shall develop, in
23   consultation with the area education agencies, and
24   establish an accreditation process for area education
25   agencies by July 1, 1997.  At a minimum, the
26   accreditation process shall consist of the following:
27     a.  The timely submission by an area education
28   agency of information required by the department on
29   forms provided by the department.
30     b.  The use of an accreditation team appointed by
31   the director of the department of education to conduct
32   an evaluation, including an on-site visit of each area
33   education agency.  The team shall include, but is not
34   limited to, department staff members, representatives
35   from the school districts served by the area education
36   agency being evaluated, area education agency staff
37   members from area education agencies other than the
38   area education agency that conducts the programs being
39   evaluated for accreditation, and other team members
40   with expertise as deemed appropriate by the director.
41     2.  Prior to a visit to an area education agency,
42   the accreditation team shall have access to that area
43   education agency's program audit report filed with the
44   department.  After a visit to an area education
45   agency, the accreditation team shall determine whether
46   the accreditation standards for a program have been
47   met and shall make a report to the director and the
48   state board, together with a recommendation as to
49   whether the programs of the area education agency
50   should receive initial accreditation or remain
Page  35

 1   accredited.  The accreditation team shall report
 2   strengths and weaknesses, if any, for each
 3   accreditation standard and shall advise the area
 4   education agency of available resources and technical
 5   assistance to further enhance the strengths and
 6   improve areas of weakness.  An area education agency
 7   may respond to the accreditation team's report.
 8     3.  The state board of education shall determine
 9   whether a program of an area education agency shall
10   receive initial accreditation or shall remain
11   accredited.  Approval of area education agency
12   programs by the state board shall be based upon the
13   recommendation of the director of the department of
14   education after a study of the factual and evaluative
15   evidence on record about each area education agency
16   program in terms of the accreditation standards
17   adopted by the state board.
18     Approval, if granted, shall be for a term of three
19   years.  However, the state board may grant conditional
20   approval for a term of less than three years if
21   conditions warrant.
22     4.  If the state board of education determines that
23   an area education agency's program does not meet
24   accreditation standards, the director of the
25   department of education, in cooperation with the board
26   of directors of the area education agency, shall
27   establish a remediation plan prescribing the
28   procedures that must be taken to correct deficiencies
29   in meeting the program standards, and shall establish
30   a deadline date for correction of the deficiencies.
31   The remediation plan is subject to the approval of the
32   state board.
33     5.  The area education agency program shall remain
34   accredited during the implementation of the
35   remediation plan.  The accreditation team shall visit
36   the area education agency and shall determine whether
37   the deficiencies in the standards for the program have
38   been corrected and shall make a report and
39   recommendation to the director and the state board of
40   education.  The state board shall review the report
41   and recommendation and shall determine whether the
42   deficiencies in the program have been corrected.
43     6.  If the deficiencies in an area education
44   program have not been corrected, the agency board
45   shall take one of the following actions within sixty
46   days from removal of accreditation:
47     a.  Merge the deficient program with a program from
48   another accredited area education agency.
49     b.  Contract with another area education agency or
50   other public educational institution for purposes of
Page  36

 1   program delivery.
 2     The rules developed by the state board of education
 3   for the accreditation process shall include provisions
 4   for removal of accreditation, including provisions for
 5   proper notice to the administrator of the area
 6   education agency, each member of the board of
 7   directors of the area education agency, and the
 8   superintendents and administrators of the schools of
 9   the districts served by the area education agency.
10     Sec. 50.  NEW SECTION.  273.11  STANDARDS FOR
11   ACCREDITING AREA EDUCATION PROGRAMS.
12     1.  The state board of education shall develop
13   standards and rules for the accreditation of area
14   education agencies by July 1, 1997.  Standards shall
15   be general in nature, but at a minimum shall identify
16   requirements addressing the services provided by each
17   division, as well as identifying indicators of quality
18   that will permit area education agencies, school
19   districts, the department of education, and the
20   general public to judge accurately the effectiveness
21   of area education agency services.
22     2.  Standards developed shall include, but are not
23   limited to, the following:
24     a.  Support for school-community planning,
25   including a means of assessing needs, establishing
26   shared direction and implementing program plans and
27   reporting progress.
28     b.  Professional development programs that respond
29   to current needs.
30     c.  Support for curriculum development,
31   instruction, and assessment for reading, language
32   arts, math and science, using research-based
33   methodologies.
34     d.  Special education compliance and support.
35     e.  Management services, including financial
36   reporting and purchasing as requested and funded by
37   local districts.
38     f.  Support for instructional media services that
39   supplement and support local district media centers
40   and services.
41     g.  Support for school technology planning and
42   staff development for implementing instructional
43   technologies.
44     h.  A program and services evaluation and reporting
45   system.
46     Sec. 51.  Section 282.4, subsection 3, Code
47   Supplement 1995, is amended to read as follows:
48     3.  Notwithstanding section 282.6, if a student has
49   been expelled or suspended from school and has not met
50   the conditions of the expulsion or suspension and if
Page  37

 1   the student, or the parent or guardian of the student,
 2   changes district of residence, the student shall not
 3   be enrolled permitted to enroll in the new a
school
 4   district of residence until the board of directors of
 5   the new school district of residence approves,
by a
 6   majority vote, the enrollment of the student.
 7     Sec. 52.  Section 282.5, Code Supplement 1995, is
 8   amended to read as follows:
 9     282.5  READMISSION OF STUDENT.
10     When a student is suspended by a teacher,
11   principal, or superintendent, pursuant to section
12   282.4, the student may be readmitted by the teacher,
13   principal, or superintendent when the conditions of
14   the suspension have been met, but when expelled by the
15   board the student may be readmitted only by the board
16   or in the manner prescribed by the board.
17     Sec. 53.  Section 294A.25, subsections 7 and 8,
18   Code Supplement 1995, are amended to read as follows:
19     7.  Commencing with the fiscal year beginning July
20   1, 1993 1996, the amount of fifty thousand dollars
for
21   geography alliance, seventy thousand dollars for
22   gifted and talented, and one hundred eighty thousand
23   dollars for a management information system from
24   additional funds transferred from phase I to phase
25   III.
26     8.  For the fiscal year beginning July 1, 1995
27   1996, and ending June 30, 1997, to the department of
28   education from phase III moneys the amount of one
29   million two hundred fifty thousand dollars for support
30   for the operations of the new Iowa schools development
31   corporation and for school transformation design and
32   implementation projects administered by the
33   corporation.  Of the amount provided in this
34   subsection, one hundred fifty thousand dollars shall
35   be used for the school and community planning
36   initiative.
37     Sec. 54.  Section 298.9, Code Supplement 1995, is
38   amended to read as follows:
39     298.9  SPECIAL LEVIES.
40     If the voter-approved physical plant and equipment
41   levy, consisting solely of a physical plant and
42   equipment property tax levy, is voted at a special
43   election and certified to the board of supervisors
44   after the regular levy is made, the board shall at its
45   next regular meeting levy the tax and cause it to be
46   entered upon the tax list to be collected as other
47   school taxes.  If the certification is filed prior to
48   April May 1, the annual levy shall begin with the
tax
49   levy of the year of filing.  If the certification is
50   filed after April May 1 in a year, the levy shall
Page  38

 1   begin with the levy of the fiscal year succeeding the
 2   year of the filing of the certification.
 3     Sec. 55.  FUNDS TRANSFERRED.  For the fiscal year
 4   beginning July 1, 1996, and ending June 30, 1997, the
 5   following amounts for the purposes designated shall be
 6   paid to the department of education from additional
 7   funds transferred from phase I to phase III:
 8     1.  For support of the Iowa mathematics and science
 9   coalition:
10  		 $	     50,000
11     2.  For purposes of the Iowa law and school safety
12   project:
13  		 $	     75,000
14     3.  For supplemental funds for a management
15   information system:
16  		 $	    120,000
17     If funds available are insufficient to fully fund
18   the appropriation for a management information system
19   under this section, the amount distributed for the
20   management information system shall be reduced to an
21   amount equal to the available funds.
22     Sec. 56.  1996 Iowa Acts, Senate File 2080, section
23   70, subsection 1, is amended to read as follows:
24     1.  Sections 260C.24 and Section 303.18, Code
25   Supplement 1995, are is repealed.
26     Sec. 57.  1996 Iowa Acts, Senate File 2080, section
27   16, is repealed.
28     Sec. 58.  REPEAL - DIRECTION TO CODE EDITOR.
29   Section 260C.18A, as enacted in this Act, is repealed
30   effective July 1, 1997.  The Code editor shall strike
31   the reference to section 260C.18A in section 260C.34
32   effective July 1, 1997.
33     Sec. 59.  REPEAL.
34     1.  Sections 225.34, 261.45, 261.52A, and 294.15,
35   Code 1995, are repealed.
36     2.  Chapter 260D, Code and Code Supplement 1995, is
37   repealed.
38     Sec. 60.  EFFECTIVE DATE.  The unnumbered paragraph
39   relating to the creation of a dental hygienist program
40   provided for in section 6, subsection 15, of this Act,
41   being deemed of immediate importance, takes effect
42   upon enactment.
43     Sec. 61.  EFFECTIVE AND RETROACTIVE APPLICABILITY
44   DATES.  The sections of this Act which amend section
45   260C.4, subsection 4, paragraph "h", and section
46   260C.47, subsection 1, unnumbered paragraph 1, being
47   deemed of immediate importance, take effect upon
48   enactment and apply retroactively to June 30, 1994.
49     Sec. 62.  Sections 3, 8, and 16 of this Act and
50   section 59, subsection 2, of this Act, being deemed of
Page  39

 1   immediate importance, take effect upon enactment.""
Amendment H-6057 was adopted.
On motion by Grundberg of Polk, the House concurred in the
Senate amendment H-5522, as amended.
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Dinkla of Guthrie and Eddie of Buena Vista, both on request of
Siegrist of Pottawattamie; Holveck of Polk and Mertz of Kossuth,
both on request of Schrader of Marion, all until their return.
Grundberg of Polk moved that the bill, as amended by the Senate,
further amended and concurred in by the House, 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?" (H.F. 2477)
The ayes were, 92:

Arnold         	Baker          	Bell           	Bernau        
		Boggess        	Bradley        	Brammer        	Brand         
		Branstad       	Brauns         	Brunkhorst     	Burnett       
		Carroll        	Cataldo        	Churchill      	Cohoon        
		Connors        	Coon           	Corbett, Spkr.        	Cormack
       		Daggett        	Disney         	Doderer        	Drake  
       		Drees          	Ertl           	Fallon         	Garman 
       		Gipp           	Greig          	Greiner        	Gries  
       	Grubbs   	Grundberg      	Hahn           	Halvorson     
	Hammitt Barry 	Hanson         	Harper         	Harrison      
	Heaton         	Houser         	Hurley         	Huseman       
	Jacobs   	Jochum         	Klemme         	Koenigs       
		Kreiman        	Kremer         	Lamberti       	Larkin        
		Larson         	Lord           	Main           	Martin        
	Mascher        	May            	McCoy          	Metcalf       
	Meyer          	Millage        	Moreland       	Mundie        
		Murphy         	Nelson, B.      	Nelson, L.       	Nutt       
   	O'Brien        	Ollie          	Osterhaus      	Rants       
  		Renken         	Schrader       	Schulte        	Shoultz     
  		Siegrist       	Sukup          	Taylor         	Teig        
  		Thomson        	Tyrrell        	Van Fossen         	Vande
Hoef     	Veenstra       	Warnstadt      	Weidman        	Weigel
        		Welter         	Wise           	Witt           	Van
Maanen,  				 Presiding
The nays were, none.
Absent or not voting, 8:

Blodgett       	Boddicker      	Dinkla         	Eddie         
						Holveck        	Mertz          	Myers          	Salton    


The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that House File 2477 be immediately messaged to the Senate.

ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(House File 2486)
Sukup of Franklin called up for consideration the report of the
conference committee on House File 2486 and moved the adoption
of the conference committee report and the amendments contained
therein as follows:

REPORT OF THE CONFERENCE COMMITTEE
ON HOUSE FILE 2486
To the Speaker of the House of Representatives and the President
of the Senate:
We, the undersigned members of the conference committee
appointed to resolve the differences between the House of
Representatives and the Senate on House File 2486, a bill for An
Act 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, respectfully make the following
report:
1.  That the Senate recedes from its amendment, H-6032.
2.  That House File 2486, as amended, passed, and reprinted by
the House, is amended as follows:
1.  Page 13, line 24, by striking the figure "8,306,132" and
inserting the following:  "8,633,742".
2.  Page 24, by inserting after line 22 the following:
"Sec. ___.  CULTURAL AFFAIRS - FEDERAL ACTIONS.  The department
of management shall conduct a review of federal actions
concerning the level of funding and policies relating to the
arts and to cultural affairs and the anticipated effects of the
federal actions upon the department of cultural affairs and the
department of cultural affairs' programs.  Based upon the
anticipated effects, the department of management shall examine
the functions and programs of the department of cultural affairs
and make recommendations to the governor and the general
assembly as to options for restructuring the department of
cultural affairs' programs.  The recommendations shall be
submitted to the governor and the general assembly prior to the
convening of the Seventy-seventh General Assembly.
Sec.    .  WELFARE REFORM BLOCK GRANT.
1.  Notwithstanding contrary provisions of section 8.41,
subsection 3, as enacted in 1996 Iowa Acts, House File 2256, the
provisions of this section shall apply if all of the following
conditions are met:
a.  The provisions of this section shall apply only to programs,
funding, and policies of the family investment program and the
job opportunities and basic skills (JOBS) program.
b.  Federal law creating a welfare reform block grant is enacted
which provides for optional early implementation dates which
precede the convening of the Seventy-seventh General Assembly.
c.  The department of human services determines early
implementation of the federal block grant provisions is
advantageous to Iowa.  All of the following requirements shall
apply in order for the department to make such a determination:
(1)  Early implementation will result in additional federal
funding for the family investment program or the JOBS program.
(2)  The early implementation of the block grant provisions will
not disadvantage any applicant or recipient of assistance under
the family investment program by resulting in reduced benefits,
terminated eligibility, or denied eligibility to the extent
those conditions would not have resulted under Iowa's welfare
reform provisions in effect prior to the early implementation of
the federal block grant provisions.  The department may satisfy
this requirement by using one hundred percent state funds to
offset any disadvantage to an applicant or recipient for
services eligible for federal financial participation prior to
the early implementation of the federal block grant provisions
if the increase in state funds used does not exceed any
additional federal funding received under the block grant.
(3)  The department can reasonably make computer system and
procedural changes necessary to implement the provisions within
any federally mandated time frames as necessary to qualify for
early implementation of the federal block grant provisions.
(4)  The state will not incur any excessive financial risks with
early implementation of the federal block grant provisions.
2.  If the federal legislation described is enacted, the
department shall seek input from the individuals of the work
group which considered the state human investment policy or a
successor interagency task force which makes recommendations to
the department concerning the family investment program.
3.  If all of the conditions of subsections 1 and 2 are met, the
department may take steps to notify the United States department
of health and human services, or some other such entity as
designated in the federal legislation, that the state of Iowa is
opting for early implementation of the federal welfare reform
block grant provisions.  If the department takes steps to elect
early implementation of the federal block grant provisions, the
department shall notify the fiscal committee of the legislative
council, the legislative fiscal bureau, the chairpersons and
ranking members of the senate and house committees on human
resources, and the chairpersons and ranking members of the
senate and house appropriations subcommittee on human services
of all of the following:
a.  The findings that the conditions in subsection 1 are met.
b.  The notice to the federal government of electing early
implementation of the block grant provisions.
c.  Fiscal impacts of electing early implementation of the block
grant provisions.
4.  If allowed by federal law, the department may discontinue
the provisions for control groups as required by the federal
government and apply welfare reform policies to all applicants
and recipients of assistance in the family investment program
equally.  The department shall make notifications similar to
those required in subsection 3 of any decision to continue or
discontinue control groups.
5.  The department of human services may adopt administrative
rules under section 17A.4, subsection 2, and section 17A.5,
subsection 2, paragraph "b", to implement the provisions of this
section and the rules shall become effective immediately upon
filing, unless the effective date is delayed by the
administrative rules review committee, notwithstanding section
17A.4, subsection 5, and section 17A.8, subsection 9, or a later
effective date is specified in the rules.  Any rules adopted in
accordance with this subsection shall not take effect before the
rules are reviewed by the administrative rules review committee.
 Any rules adopted in accordance with the provisions of this
subsection shall also be published as notice of intended action
as provided in section 17A.4.
Sec.    .  FEDERAL FUNDING STUDY.  The legislative council
is requested to provide for a review during the 1996 legislative
interim of issues associated with federal funding and federal
block grants.  Issues considered may include but are not limited
to all of the following:
1.  Methods for the general assembly to provide greater
oversight.
2.  Methods for appropriations subcommittees to effectively
incorporate planning for federal funding and grants into budget
deliberations.
3.  An analysis of the impact of federal funding and grants and
their associated federal requirements upon the effectiveness and
efficiency of the state and local government agencies
administering the federal funding and grants.
4.  Methods for analysis of the cash flows associated with
federal funding and grants, including variations between state
and federal fiscal years, and the multiple year commitment of
federal funding known as "forward funding."
5.  Policy analysis tools for use in addressing new and revised
federal block grants and federal funding."
3.  By renumbering, relettering, or redesignating and correcting
internal references as necessary.

ON THE PART OF THE HOUSE	ON THE PART OF THE SENATE

STEVE SUKUP, Chair	TOM FLYNN, Chair
BOB BRUNKHORST	BRAD BANKS
JANET METCALF	H. KAY HEDGE
	MARY NEUHAUSER  
Roll call was requested by Murphy of Dubuque and Schrader of
Marion.
On the question "Shall the conference committee report be
adopted?" (H.F. 2486)
The ayes were, 64:

Arnold         	Baker          	Boggess        	Bradley       
	Brammer        	Branstad       	Brauns         	Brunkhorst    
	Carroll        	Cataldo        	Churchill      	Coon          
		Corbett, Spkr.        	Cormack        	Daggett        	Disney 
       		Drake          	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         	Schulte        	Shoultz        	Siegrist     
 	Sukup          	Teig           	Thomson        	Tyrrell       
		Van Fossen         	Vande Hoef     	Veenstra       	Weidman   
    	Welter         	Wise           	Witt           	Van Maanen,
 				 Presiding
The nays were, 28:

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

Absent or not voting, 8:

Blodgett       	Boddicker      	Dinkla         	Eddie         
	Holveck        	Mertz          	Myers          	Salton         	
The motion prevailed and the report was adopted.
Sukup of Franklin 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?" (H.F. 2486)
The ayes were, 92:

Arnold         	Baker          	Bell           	Bernau        
		Boggess        	Bradley        	Brammer        	Brand         
		Branstad       	Brauns         	Brunkhorst     	Burnett       
		Carroll        	Cataldo        	Churchill      	Cohoon        
		Connors        	Coon           	Corbett, Spkr.        	Cormack
       		Daggett        	Disney         	Doderer        	Drake
          		Drees          	Ertl           	Fallon        
	Garman         		Gipp           	Greig          	Greiner       
	Gries          	Grubbs         	Grundberg      	Hahn          
	Halvorson      	Hammitt Barry  	Hanson         	Harper        
	Harrison       	Heaton         	Houser         	Hurley        
	Huseman        	Jacobs         	Jochum         	Klemme        
	Koenigs        		Kreiman        	Kremer         	Lamberti      
	Larkin         		Larson         	Lord           	Main          
	Martin         	Mascher        	May            	McCoy         
	Metcalf        	Meyer          	Millage  	Moreland      
	Mundie         		Murphy         	Nelson, B.      	Nelson, L.   
   	Nutt           	O'Brien        	Ollie          	Osterhaus   
  	Rants          		Renken         	Schrader       	Schulte     
  	Shoultz        		Siegrist       	Sukup          	Taylor      
  	Teig           		Thomson        	Tyrrell        	Van Fossen  
      	Vande Hoef     	Veenstra       	Warnstadt      	Weidman  
     	Weigel         		Welter         	Wise           	Witt     
     	Van Maanen,  				 Presiding
The nays were, none.
Absent or not voting, 8:

Blodgett       	Boddicker      	Dinkla         	Eddie         
	Holveck        	Mertz          	Myers          	Salton         	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Gipp of Winneshiek asked and received unanimous consent that
House File 2486 be immediately messaged to the Senate.

MESSAGE FROM THE SENATE
The following message was received from the Senate:
Mr. Speaker: I am directed to inform your honorable body that
the Senate has on April 30, 1996, adopted the conference
committee report and passed Senate File 2442, a bill for an act
relating to appropriations for the department of human services
and the prevention of disabilities policy council and including
other provisions and appropriations involving human services and
health care and providing for effective and applicability dates.
JOHN F. DWYER, Secretary

ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(Senate File 2442)
Houser of Pottawattamie called up for consideration the report
of the conference committee on Senate File 2442 and moved the
adoption
 of the conference committee report and the amendments contained
therein as follows:

REPORT OF THE CONFERENCE COMMITTEE
ON SENATE FILE 2442
To the President of the Senate and the Speaker of the House of
Representatives:
We, the undersigned members of the conference committee
appointed to resolve the differences between the Senate and the
House of Representatives on Senate File 2442, a bill for An Act
relating to appropriations for the department of human services
and the prevention of disabilities policy council and including
other provisions and appropriations involving human services and
health care and providing for effective and applicability dates,
respectfully make the following report:
1.  That the House recedes from its amendment, S-5550.
2.  That Senate File 2442, as amended, passed, and reprinted by
the Senate, is amended to read as follows:
1.  By striking everything after the enacting clause and
inserting the following:
"Section 1.  FAMILY INVESTMENT PROGRAM.  There is appropriated
from the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the purpose designated:
For assistance under the family investment program under chapter
239:  
	 $	 34,787,255
1.  The department shall continue the special needs program
under the family investment program.
2.  The department may adopt administrative rules for the family
investment, food stamp, and medical assistance programs to
change or delete welfare reform initiatives that threaten the
integrity or continuation of the program or that are not
cost-effective.  Prior to the adoption of rules, the department
shall consult with the welfare reform council, members of the
public involved in development of the policy established in the
1993 session of the Seventy-fifth General Assembly, and the
chairpersons and ranking members of the human resources
committees of the senate and the house of representatives.
Sec. 2.  EMERGENCY ASSISTANCE.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
For emergency assistance to families with dependent children for
homeless prevention programs:  
	 $	  1,967,500
1.  The emergency assistance provided for in this section shall
be available beginning October 1 of the fiscal year and shall be
provided only if all other publicly funded resources have been
exhausted. Specifically, emergency assistance is the
 program of last resort and shall not supplant assistance
provided by the low-income home energy assistance program
(LIHEAP), county general relief, and veterans affairs programs.
The department shall establish a $500 maximum payment, per
family, in a twelve-month period.  The emergency assistance
includes, but is not limited to, assisting people who face
eviction, potential eviction, or foreclosure, utility shutoff or
fuel shortage, loss of heating energy supply or equipment,
homelessness, utility or rental deposits, or other specified
crisis which threatens family or living arrangements.  The
emergency assistance shall be available to migrant families who
would otherwise meet eligibility criteria.  The department may
contract for the administration and delivery of the program. The
program shall be terminated when funds are exhausted.
2.  For the fiscal year beginning July 1, 1996, the department
shall continue the process for the state to receive refunds of
rent deposits for emergency assistance recipients which were
paid by persons other than the state.  The refunds received by
the department under this subsection shall be deposited with the
moneys of the appropriation made in this section and used as
additional funds for the emergency assistance program. 
Notwithstanding section 8.33, moneys received by the department
under this subsection which remain after the emergency
assistance program is terminated and state moneys in the
emergency assistance account which remain unobligated or
unexpended at the close of the fiscal year shall not revert to
the general fund of the state but shall remain available for
expenditure when the program resumes operation on October 1 in
the succeeding fiscal year.
3.  Of the funds appropriated in this section, $10,000 is
allocated to the community voice mail program to continue the
existing program.  The funds shall be made available beginning
July 1, 1996.
Sec. 3.  MEDICAL ASSISTANCE.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
For medical assistance, including reimbursement for abortion
services, which shall be available under the medical assistance
program only for those abortions which are medically necessary:  
	$	366,687,988
1.  Medically necessary abortions are those performed under any
of the following conditions:
a.  The attending physician certifies that continuing the
pregnancy would endanger the life of the pregnant woman.
b.  The attending physician certifies that the fetus is
physically deformed, mentally deficient, or afflicted with a
congenital illness.
c.  The pregnancy is the result of a rape which is reported
within 45 days of the incident to a law enforcement agency or
public or private health agency which may include a family
physician.
d.  The pregnancy is the result of incest which is reported
within 150 days of the incident to a law enforcement agency or
public or private health agency which may include a family
physician.
e.  Any spontaneous abortion, commonly known as a miscarriage,
if not all of the products of conception are expelled.
2.  Notwithstanding section 8.39, the department may transfer
funds appropriated in this section to a separate account
established in the department's case management unit for
expenditures required to provide case management services for
mental health, mental retardation, and developmental
disabilities services under medical assistance which are jointly
funded by the state and county, pending final settlement of the
expenditures.  Funds received by the case management unit in
settlement of the expenditures shall be used to replace the
transferred funds and are available for the purposes for which
the funds were appropriated in this section.
3.  If a medical assistance recipient is more than 17 years of
age and is receiving care which is reimbursed under a federally
approved home and community-based services waiver but would
otherwise be approved for care in an intermediate care facility
for the mentally retarded, the recipient's county of legal
settlement shall reimburse the department on a monthly basis for
the portion of the recipient's cost of care which is not paid
from federal funds.
4.  a.  The county of legal settlement shall be billed for 50
percent of the nonfederal share of the cost of case management
provided for adults, day treatment, and partial hospitalization
in accordance with sections 249A.26 and 249A.27, and 100 percent
of the nonfederal share of the cost of care for adults which is
reimbursed under a federally approved home and community-based
waiver that would otherwise be approved for provision in an
intermediate care facility for the mentally retarded, provided
under the medical assistance program.  The state shall have
responsibility for the remaining 50 percent of the nonfederal
share of the cost of case management provided for adults, day
treatment, and partial hospitalization.  For persons without a
county of legal settlement, the state shall have responsibility
for 100 percent of the nonfederal share of the costs of case
management provided for adults, day treatment, partial
hospitalization, and the home and community-based waiver
services.  The case management services specified in this
subsection shall be billed to a county only if the services are
provided outside of a managed care contract.
b.  The state shall pay the entire nonfederal share of the costs
for case management services provided to persons 17 years of age
and younger who are served in a medical assistance home and
community-based waiver program for persons with mental
retardation.
c.  Medical assistance funding for case management services for
eligible persons 17 years of age and younger shall also be
provided to persons residing in counties with child welfare
decategorization projects implemented in accordance with section
232.188, provided these projects have included these persons in
their service plan and the decategorization project county is
willing to provide the nonfederal share of costs.
d.  When paying the necessary and legal expenses of intermediate
care facilities for the mentally retarded (ICFMR), the cost
payment requirements of section 222.60 shall be considered
fulfilled when payment is made in accordance with the medical
assistance payment rates established for ICFMRs by the
department and the state or a county of legal settlement is not
obligated for any amount in excess of the rates.
5.  The department may adopt and implement administrative rules
regarding a prepaid mental health services plan for medical
assistance patients.  The rules
 shall include but not be limited to service provider standards,
service reimbursement, and funding mechanisms.  Notwithstanding
the provisions of subsection 4, paragraph "a", of this section
and section 249A.26, requiring counties to pay all or part of
the nonfederal share of certain services provided to persons
with disabilities under the medical assistance program, the
state shall pay 100 percent of the nonfederal share of any
services included in the plan implemented pursuant to this
subsection.
6.  The department shall utilize not more than $60,000 of the
funds appropriated in this section to continue the AIDS/HIV
health insurance premium payment program as established in 1992
Iowa Acts, Second Extraordinary Session, Chapter 1001, section
409, subsection 6.  Of the funds allocated in this subsection,
not more than $5,000 may be expended for administrative purposes.
7.  Of the funds appropriated to the Iowa department of health
for substance abuse grants, $950,000 for the fiscal year
beginning July 1, 1996, shall be transferred to the department
of human services for an integrated substance abuse managed care
system.
8.  The department shall implement a new medical assistance home
and community-based waiver for persons with physical
disabilities as a means to further develop the personal
assistance services program under section 225C.46.  The waiver
shall not be implemented in a manner which would require
additional county or state funding for assistance provided to an
individual served under the waiver.
9.  The department may expand the drug prior authorization
program to include the therapeutic class of gastrointestinal
drugs known as proton pump inhibitors.  The department shall not
expand the requirement of drug prior authorization without prior
approval of the general assembly except to require prior
authorization of an equivalent of a prescription drug which is
subject to prior authorization as of June 30, 1996.  The
department shall adopt administrative rules to implement this
provision.
10.  The department of human services shall expand the program
to administratively pursue reimbursements for pharmacy services
to include all pharmacy claims for which a recipient of medical
assistance also has third-party coverage.
11.  The department of human services, in consultation with the
Iowa department of public health and the department of
education, shall develop and implement a proposal to utilize the
early and periodic screening, diagnosis, and treatment (EPSDT)
funding under medical assistance, to the extent possible, to
implement the screening component of the EPSDT program through
the school system.  The department may enter into contracts to
utilize maternal and child health centers, the public health
nursing program, or school nurses in implementing this provision.
12.  The department shall implement the case study for
outcome-based performance standards for programs serving persons
with mental retardation or other developmental disabilities
proposed pursuant to 1994 Iowa Acts, chapter 1170, section 56. 
The department shall adopt rules applicable to the programs
included in the case study, request a waiver of applicable
federal requirements, and take other actions deemed necessary by
the department to implement the case study.
13.  The department of human services shall submit a report to
the general assembly on or before January 1, 1997, regarding
reimbursement for teleconsultive
 services provided by health care providers to recipients of
medical assistance.  The report shall include but is not limited
to recommendations regarding the feasibility of implementation
of a pilot program, including the adoption and utilization of an
alternative reimbursement methodology, to determine the effect
of teleconsultive services on health care quality, access, and
cost.
14.  A member of the joint appropriations subcommittee on human
services participating during the 1996 legislative interim in a
planning process for long-term care provided in nursing
facilities and through alternative types of care involving a
national foundation held by the department in the state, is
entitled to per diem and expenses payable as a joint expense
under section 2.12.
Sec. 4.  MEDICAL CONTRACTS.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
For medical contracts:  
	 $	  6,811,400
1.  The department shall continue to contract for drug
utilization review under the medical assistance program.
2.  The department shall negotiate with the department's
contractor for mental health managed care under the medical
assistance program to establish performance standards for
successful outcomes for persons receiving services under the
contract.  The performance standards shall be incorporated into
the contract or shall be made an addendum to the contract which
is in effect as of the effective date of this subsection.  The
contractor's attainment of these performance standards shall be
a factor in the department's decision to extend the contract in
effect for managed mental health care or to initiate a new
procurement process.  Any future contract shall contain
sanctions for failure to attain the performance standards.  The
provisions of section 228.5 as amended in this Act are
applicable to the requirements of this subsection.
3.  Any future contract entered into by the department for
mental health managed care or for other services under the
medical assistance program shall include a provision which
requires the contractor to make public information the amount of
profit realized by the contractor and the amount of funds
expended by the contractor for administrative purposes under the
contract.
Sec. 5.  STATE SUPPLEMENTARY ASSISTANCE.  There is appropriated
from the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the purpose designated:
For state supplementary assistance, funeral assistance, and the
mental retardation waiver rent subsidy program:  
	 $	 19,190,000
1.  The department shall increase the personal needs allowance
for residents of residential care facilities by the same
percentage and at the same time as federal supplemental security
income and federal social security benefits are increased due to
a recognized increase in the cost of living. The department may
adopt emergency rules to implement this subsection.
2.  a.  If during the fiscal year beginning July 1, 1996, the
department projects that state supplementary assistance
expenditures for a calendar year will not meet the federal
pass-along requirement specified in Title XVI of the federal
Social Security Act, section 1618, as codified in 42 U.S.C. }
1382g, the department may take actions including but not limited
to increasing the personal needs allowance for residential care
facility residents and making programmatic adjustments or upward
adjustments of the residential care facility or in-home
healtH-related care reimbursement rates prescribed in this Act
to ensure that federal requirements are met.  The department may
adopt emergency rules to implement the provisions of this
subsection.
b.  If during the fiscal year beginning July 1, 1996, the
department projects that state supplementary assistance
expenditures will exceed the amount appropriated, the department
may transfer funds appropriated in this Act for medical
assistance for the purposes of the state supplementary
assistance program.  However, funds shall only be transferred
from the medical assistance appropriation if the funds
transferred are projected to be in excess of the funds necessary
for the medical assistance program.
3.  The department may use up to $75,000 of the funds
appropriated in this section for a rent subsidy program for
adult persons to whom all of the following apply:
a.  Are receiving assistance under the medical assistance home
and community-based services for persons with mental retardation
(HCBS/MR) program.
b.  Were discharged from an intermediate care facility for the
mentally retarded (ICFMR) immediately prior to receiving HCBS/MR
services.
The goal of the subsidy program shall be to encourage and assist
in enabling persons who currently reside in an ICFMR to move to
a community living arrangement.  An eligible person may receive
assistance in meeting their rental expense and, in the initial
two months of eligibility, in purchasing necessary household
furnishings and supplies.  The program shall be implemented so
that it does not meet the federal definition of state
supplementary assistance and will not impact the federal
pasS-along requirement specified in Title XVI of the federal
Social Security Act, section 1618, as codified in 42 U.S.C. }
1382g.
Sec. 6.  CHILD DAY CARE ASSISTANCE.  There is appropriated from
the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the purposes designated:
For protective child day care assistance and state child care
assistance:  
	 $	 12,547,100
1.  Of the funds appropriated in this section, $2,496,286 shall
be used for protective child day care assistance.
2.  Of the funds appropriated in this section, $8,180,889 shall
be used for state child care assistance.
3.  For the purposes of this subsection, the term "poverty
level" means the poverty level defined by the poverty income
guidelines published by the United States department of health
and human services.  Based upon the availability of the funding
provided in subsection 2 the department shall establish waiting
lists for state child care assistance in descending order of
prioritization as follows:
a.  Families with an income at or below 100 percent of the
federal poverty level whose members are employed at least 30
hours per week, and parents with a family income at or below 100
percent of the federal poverty level who are under the age of 21
and are participating in an educational program leading to a
high school diploma or equivalent.
b.  Parents with a family income at or below 100 percent of the
federal poverty level who are under the age of 21 and are
participating, at a satisfactory level, in an approved training
program or in an educational program.
c.  Families with an income of more than 100 percent but not
more than 110 percent of the federal poverty level whose members
are employed at least 30 hours per week.  Assistance provided to
families pursuant to this paragraph shall be provided in
accordance with a sliding fee scale developed by the department.
 If, pursuant to an evaluation of expenditures for state child
care assistance it is determined that sufficient funding is
available, the department shall implement the provisions of this
paragraph on or before January 2, 1997.
d.  Families with an income at or below 155 percent of the
federal poverty level with a special needs child as a member of
the family.
e.  Families with an income at or below 100 percent of the
federal poverty level whose members are employed part-time at
least 20 hours per week.
The department may adopt emergency rules to implement the
provisions of this subsection.
4.  a.  Migrant seasonal farm worker families whose family
income is equal to or less than 100 percent of the United States
office of management and budget poverty guidelines are eligible
for state child care assistance.  The monthly family income
shall be determined by calculating the total amount of family
income earned during the 12-month period preceding the date of
application for the assistance and dividing the total amount by
12.
b.  Nothing in this section shall be construed or is intended
as, or shall imply, a grant of entitlement for services to
persons who are eligible for assistance due to an income level
consistent with the requirements of this section. Any state
obligation to provide services pursuant to this section is
limited to the extent of the funds appropriated in this section.
5.  If the department projects that funding for state child care
assistance is reasonably adequate to fund the provisions of
subsection 3, paragraphs "a", "b", and "c", the department may
transfer not more than $200,000 of the funding appropriated in
this section to the appropriation in this Act for child and
family services to provide additional funding for familycentered
services.
6.  Of the funds appropriated in this section, $636,641 is
allocated for the statewide program for child day care resource
and referral services under section 237A.26.
7.  The department may use any of the funds appropriated in this
section as a match to obtain federal funds for use in expanding
child day care assistance and related programs.
8.  Of the funds appropriated in this section, $1,178,284 is
allocated for transitional child care assistance.
9.  During the 1996-1997 fiscal year, the department shall
utilize the moneys deposited in the child day care credit fund
created in section 237A.28 for state child care assistance, in
addition to the moneys allocated for that purpose in this
section.
10.  Of the funds appropriated in this section, the department
shall expend not more than $20,000 to develop a system in
cooperation with child day care resource and referral services
under section 237A.26, in which volunteer evaluation teams are
utilized to review and inspect registered family day care homes
on behalf of the department.  The department shall also review
requirements for payment of publicly funded child day care,
including but not limited to the effects on providers and the
state budget of paying for child day care on a daily basis,
block-of-hours basis, or hourly basis.  The department shall
review the policy implications of encouraging family day care
home registration by providing an enhanced reimbursement for
family day care homes that are registered.  In addition, the
department shall develop a proposal for a disproportionate share
reimbursement adjustment for the child day care providers for
which 75 percent or more of the children provided care receive
public funding for the cost of their care.  The department shall
submit a report to the general assembly on or before January 15,
1997, which includes recommendations concerning the issues
required by this subsection.
11.  Of the funds appropriated in this section, $35,000 is
allocated for use by the united Mexican-American center in Des
Moines for the center's child day care program.
12.  A family who was eligible for and received state child care
assistance during the fiscal year beginning July 1, 1995, shall
continue to receive the assistance in the succeeding fiscal year
for as long as the family continues to meet the eligibility
requirements in effect for the fiscal year beginning July 1,
1995.
13.  Notwithstanding section 8.33, moneys appropriated to the
department of human services for state child care assistance in
1996 Iowa Acts, House File 2114, section 2, which remain
unexpended or unobligated at the close of the fiscal year shall
not revert to the general fund of the state but shall remain
available for expenditure in the succeeding fiscal year.
Sec. 7.  JOBS PROGRAM.  There is appropriated from the general
fund of the state to the department of human services for the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount, or so much thereof as is necessary, to be
used for the purposes designated:
For the federal-state job opportunities and basic skills (JOBS)
program, food stamp employment and training program, family
development and self-sufficiency grants, entrepreneurial
training, and implementing family investment agreements, in
accordance with this section:  
	 $	 12,601,592
1.  Of the funds appropriated in this section, $11,692,292 is
allocated for the JOBS program.  For family investment
agreements developed in the fiscal year beginning July 1, 1996,
the maximum time period for postsecondary education is limited
to two years.
2.  The department shall continue to contract for services in
developing, delivering, and monitoring an entrepreneural
training waiver program to provide technical assistance in
self-employment training to families which receive assistance
under the family investment program, contingent upon federal
approval of waiver renewal requests.
3.  Of the funds appropriated in this section, $129,985 is
allocated for the food stamp employment and training program.
4.  Of the funds appropriated in this section, $779,315 is
allocated to the family development and self-sufficiency grant
program as provided under section 217.12.
a.  Not more than 5 percent of the funds allocated in this
subsection shall be used for the administration of the grant
program.
b.  Federal funding matched by state, county, or other funding
which is not appropriated in this section shall be deposited in
the department's JOBS account.  If the match funding is
generated by a family development and selfsufficiency grantee,
the federal funding received shall be used to expand the family
development and self-sufficiency grant program.  If the match
funding is generated by another source, the federal funding
received shall be used to expand the grant program or the JOBS
program.  The department may adopt rules to implement the
provisions of this paragraph.
c.  Based upon the annual evaluation report concerning each
grantee funded by this allocation, the family development and
self-sufficiency council may use funds allocated to renew grants.
Sec. 8.  CHILD SUPPORT RECOVERY.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purposes designated:
For child support recovery, including salaries, support,
maintenance, and miscellaneous purposes and for not more than
the following full-time equivalent positions:  
	 $	  6,517,000
	 FTEs	     226.22
1.  The director of human services, within the limitations of
the funds appropriated in this section, or funds transferred
from the family investment program appropriation for this
purpose, shall establish new positions and add employees to the
child support recovery unit if the director determines that both
the current and additional employees together can reasonably be
expected to maintain or increase net state revenue at or beyond
the budgeted level.  If the director adds employees, the
department shall demonstrate the costeffectiveness of the
current and additional employees by reporting to the joint
appropriations subcommittee on human services the ratio of the
total amount of administrative costs for child support
recoveries to the total amount of the child support recovered.
2.  Nonpublic assistance application fees and federal tax refund
offsets received by the child support recovery unit are
appropriated and shall be used for the purposes of the child
support recovery program.  The director of human services may
add positions within the limitations of the amount appropriated
for salaries and support for the positions.  The director shall
report any positions added pursuant to this subsection to the
chairpersons and ranking members of the joint appropriations
subcommittee on human services and the legislative fiscal bureau.
3.  The director of human services, in consultation with the
department of management and the legislative fiscal committee,
is authorized to receive and deposit state child support
incentive earnings in the manner specified under applicable
federal requirements.
4.  The director of human services may establish new positions
and add state employees to the child support recovery unit if
the director determines the employ
ees are necessary to replace county-funded positions eliminated
due to termination, reduction, or nonrenewal of a chapter 28E
contract.  However, the director must also determine that the
resulting increase in the state share of child support recovery
incentives exceeds the cost of the positions, the positions are
necessary to ensure continued federal funding of the program, or
the new positions can reasonably be expected to recover at least
twice the amount of money necessary to pay the salaries and
support for the new positions.
5.  The child support recovery unit shall continue to work with
the judicial department to determine the feasibility of a pilot
project utilizing a court-appointed referee for judicial
determinations on child support matters.  The extent and
location of any pilot project shall be jointly developed by the
judicial department and the child support recovery unit.
6.  The department shall expend up to $50,000, including federal
financial participation, for the fiscal year beginning July 1,
1996, for a child support public awareness campaign. The
department shall cooperate with the office of the attorney
general in continuation of the campaign.  The public awareness
campaign shall emphasize, through a variety of media activities
and through continuation of the publication of names of persons
who are delinquent in payment of child support obligations, the
importance of maximum involvement of both parents in the lives
of their children as well as the importance of payment of child
support obligations.
7.  The department shall continue the pilot program option to
provide and supervise a community service pilot project for
absent parents who are ordered by the court to perform community
service for failure to pay child support pursuant to section
598.23A.
8.  The director of human services may enter a contract with
private collection agencies to collect support payments for
cases which have been identified by the department as difficult
collection cases if the department determines that this form of
collection is more cost effective than departmental collection
methods.  The director may use a portion of the state share of
funds collected through this means to pay the costs of any
contracts authorized under this subsection.
9.  The department shall employ on or before July 2, 1996, at
least 1.00 FTE to respond to telephone inquiries during all
weekly business hours.
10.  The department shall develop guidelines to be used in lieu
of the child support guidelines prescribed under section 598.21,
subsection 4, for establishing a support obligation and the
amount of the support debt accrued and accruing pursuant to
section 234.39 for the costs of foster care services.  The
proposed guidelines shall reflect the public purpose of
establishing a support obligation without causing a serious
disruption of the family of the obligor.  The department shall
submit the proposed guidelines to the general assembly on or
before January 15, 1997.
Sec. 9.  JUVENILE INSTITUTIONS.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purposes designated:
For the operation of the state training school and the Iowa
juvenile home, including salaries, support, maintenance, and
miscellaneous purposes and for not more than the following
full-time equivalent positions:
For the state juvenile institutions: 
	 $	 13,769,809
	 FTEs	     320.77
1.  The following amounts of the funds appropriated and
full-time equivalent positions authorized in this section are
allocated for the Iowa juvenile home at Toledo:  
	 $	  5,130,863
	 FTEs	     118.54
2.  The following amounts of the funds appropriated and
full-time equivalent positions authorized in this section are
allocated for the state training school at Eldora:  
	 $	  8,638,946
	 FTEs	     202.23
3.  During the fiscal year beginning July 1, 1996, the
population levels at the state juvenile institutions shall not
exceed the population guidelines established under 1990 Iowa
Acts, chapter 1239, section 21.
4.  Of the funds appropriated in this section, $10,000 shall be
used by the state training school and $8,000 by the Iowa
juvenile home for grants for adolescent pregnancy prevention
activities at the institutions in the fiscal year beginning July
1, 1996.
5.  Within the funds appropriated in this section, the
department may reallocate funds as necessary to best fulfill the
needs of the institutions provided for in the appropriation.
Sec. 10.  CHILD AND FAMILY SERVICES.  There is appropriated from
the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the purpose designated:
For child and family services:  
	 $	 85,460,607
1.  The department may transfer moneys appropriated in this
section as necessary to pay the nonfederal costs of services
reimbursed under medical assistance or the family investment
program which are provided to children who would otherwise
receive services paid under the appropriation in this section.
The department may transfer funds appropriated in this section
to the appropriations in this Act for general administration and
for field operations for resources necessary to implement and
operate the services funded in this section.
2.  a.  Of the funds appropriated in this section, up to
$24,601,280 is allocated as the statewide expenditure target
under section 232.143 for group foster care maintenance and
services.
b.  The department shall report quarterly to the legislative
fiscal bureau concerning the status of each region's efforts to
contain expenditures for group foster care placements in
accordance with the regional plan established pursuant to
section 232.143.
c.  The department shall not certify any additional enhanced
residential treatment beds, unless the director of human
services approves the beds as necessary,
 based on the type of children to be served and the location of
the enhanced residential treatment beds.
d.  (1)  Of the funds appropriated in this section, not more
than $6,538,215 is allocated as the state match funding for
psychiatric medical institutions for children.
(2)  The department may transfer all or a portion of the funds
appropriated in this section for psychiatric medical
institutions for children (PMICs) to the appropriation in this
Act for medical assistance and may amend the managed mental
health care contract to include PMICs.
e.  Of the funds allocated in this subsection, not more than
$1,077,995 is allocated as the state match funding for 50 highly
structured juvenile program beds.
3.  The department shall establish a goal that not more than 15
percent of the children placed in foster care funded under the
federal Social Security Act, Title IV-E, may be placed in foster
care for a period of more than 24 months.
4.  In accordance with the provisions of section 232.188, the
department shall continue the program to decategorize child
welfare services in additional counties or clusters of counties.
5.  Of the funds appropriated in this section, up to $96,512 is
allocated for continued foster care services to a child who is
18 years of age or older in accordance with the provisions of
section 234.35, subsection 3, paragraph "c".  However, if
funding in this appropriation would remain unobligated at the
end of the fiscal year, the allocation in this subsection may be
exceeded to the extent necessary to provide the continued foster
care services.  The department shall distribute the moneys
allocated in this subsection to the department's regions based
on each region's proportion of the total number of children
placed in foster care on March 31 preceding the beginning of the
fiscal year, who, during the fiscal year would no longer be
eligible for foster care due to age.
6.  Notwithstanding section 232.142, subsection 3, the financial
aid paid by the state for the establishment, improvements,
operation, and maintenance of county or multicounty juvenile
detention homes in the fiscal year beginning July 1, 1996, shall
be limited to $872,500.  Funds allocated in this subsection
shall be prorated among eligible detention homes.
7.  The amount of the appropriation made in this section
available for foster care is based upon expansion of the number
of children in foster care who are eligible for federal
supplemental security income (SSI).  The department may use up
to $300,000 of those funds to enter into a performance-based
contract to secure SSI benefits for children placed in foster
care.  The contract shall include provisions for training of
department of human services and juvenile court staff,
completion of applications, tracking of application results, and
representation during the appeals process whenever an appeal is
necessary to secure SSI benefits.  Notwithstanding section
217.30 and section 232.2, subsection 11, and any other provision
of law to the contrary, the director or the director's designee
on behalf of a child in foster care may release medical, mental
health, substance abuse, or any other information necessary only
to determine the child's eligibility for SSI benefits, and may
sign releases for the information. In any release of information
made pursuant to this subsection, confidentiality shall be
maintained to the maximum extent possible.
8.  A portion of the funds appropriated in this section may be
used for emergency family assistance to provide other resources
required for a family participating in a family preservation or
reunification project to stay together or to be reunified.
9.  Notwithstanding section 234.35, subsection 1, for the fiscal
year beginning July 1, 1996, state funding for shelter care paid
pursuant to section 234.35, subsection 1, paragraph "h", shall
be limited to $3,223,732.  The department shall develop a
formula in consultation with the shelter care committee created
by the department to allocate shelter care funds to the
department's regions.  The formula shall be based on the
region's proportion of the state population of children and
historical usage.  The department may adopt emergency rules to
implement the provisions of this subsection.
10.  Of the funds appropriated in this section, not more than
$527,137 may be used to develop and maintain the state's
implementation of the national adoption and foster care
information system pursuant to the requirements of Pub. L. No.
99-509.  The department may transfer funds as necessary from the
appropriations in this Act for field operations and general
administration to implement this subsection.  Moneys allocated
in accordance with this subsection shall be considered
encumbered for the purposes of section 8.33.
11.  Of the funds appropriated in this section, up to $619,433
may be used as determined by the department for any of the
following purposes:
a.  For general administration of the department to improve
staff training efforts.
b.  For oversight of termination of parental rights and
permanency planning efforts on a statewide basis.
c.  For personnel, assigned by the attorney general, to provide
additional services relating to termination of parental rights
and child in need of assistance cases.
d.  For specialized permanency planning field operations staff.
12.  The department may adopt administrative rules following
consultation with child welfare services providers to implement
outcome-based child welfare services pilot projects.  The rules
may include, but are not limited to, the development of program
descriptions, provider licensing and certification standards,
reimbursement and payment amounts, contract requirements,
assessment and service necessity requirements, eligibility
criteria, claims submission procedures, and accountability
standards.
13.  Of the funds appropriated in this section, up to $125,340
may be used to develop, in cooperation with providers of
children and family services, a performance-based monitoring
program to evaluate and improve outcomes for children and
families.  The department may adopt administrative rules to
implement this subsection.
14.  The department may develop, within the funds available, a
pilot kinship care project to enhance family involvement in the
development of the permanency plan required under chapter 232
for children who are removed from their homes.  The project
components may include family involvement before and after
removal of the child and shall stress safety for the child.
15.  Within the funds appropriated in this section, the
department may develop a subsidized guardianship program to
provide financial assistance to guardians of children who have a
permanency order under section 232.104, subsection 2, paragraph
"d", subparagraph (1), in cases in which all of the following
conditions exist:
a.  The option of reunification has been eliminated and
termination of parental rights is not appropriate.
b.  The child has lived with the potential guardian for at least
six months.
c.  The child is either 14 years of age or older or, if under 14
years of age, is part of a sibling group and cannot be made
available for adoption.
d.  The placement does not require departmental supervision.
The financial assistance provided shall be in the same amount as
provided for family foster care.  For purposes of medical
assistance and child support recovery, these payments shall be
considered foster care payments.
16.  The department shall continue to make adoption presubsidy
and adoption subsidy payments to adoptive parents at the
beginning of the month for the current month.
17.  If Title XIX of the federal Social Security Act is repealed
prior to January 17, 1997, and the state is otherwise authorized
to establish requirements for providing health and
rehabilitative services to persons who would be eligible for
medical assistance under chapter 249A, the department shall
eliminate the clinical assessment and consultation teams
operating as part of the medical assistance children's
rehabilitative services initiative.  The provisions of this
subsection shall apply through January 16, 1997.
18.  Federal funds received by the state during the fiscal years
beginning July 1, 1995, and July 1, 1996, as the result of the
expenditure of state funds appropriated during a previous state
fiscal year for a service or activity funded under this section
shall be used as additional funding for services provided under
this section.  Moneys received by the department in accordance
with the provisions of this section shall remain available for
the purposes designated until June 30, 1998.
19.  The department may adopt emergency rules to revise
administrative rules relating to rehabilitative treatment
services under the child welfare program as necessary to comply
with federal requirements to maintain nonstate funding.
20.  The department in cooperation with the department of
education shall collect data to determine the number of children
for whom sheltered workshops and supported employment will be
required during the period beginning July 1, 1997, through June
30, 2002.  The department shall report the findings of the study
to the general assembly by January 2, 1997.
21.  Of the funds appropriated in this section, up to $150,000
shall be transferred to the Iowa healthy kids trust fund for use
by the division of insurance of the department of commerce for
planning, administration, and implementation of the Iowa healthy
kids program as established in chapter 514I as enacted in this
Act.
Sec. 11. COMMUNITY-BASED PROGRAMS - ADOLESCENT PREGNANCY
PREVENTION.  There is appropriated from the general fund of the
state to the department of human services for the fiscal year
beginning July 1, 1996, and ending June 30, 1997, the following
amount, or so much thereof as is necessary, to be used for the
purpose designated:
For community-based programs, on the condition that family
planning services are funded, including salaries, support,
maintenance, and miscellaneous purposes and for not more than
the following full-time equivalent positions:  
	 $	  2,635,146
	 FTEs	       1.00
1.  Of the funds appropriated in this section, $736,146 shall be
used for adolescent pregnancy prevention grants, including not
more than $156,048 for programs to prevent pregnancies during
the adolescent years and to provide support services for
pregnant or parenting adolescents.  It is the intent of the
general assembly that by July 1, 1998, grants awarded under this
subsection be required to meet the criteria under subsection 2
including the provision of community-wide services within the
proximity of the community or region.
2.  Of the funds appropriated in this section, $298,000 shall be
used for grants to community or regional groups which
demonstrate broad-based representation from community
representatives including but not limited to schools, churches,
human service-related organizations, and businesses.  Priority
in the awarding of grants shall be given to groups which provide
services to both urban and rural areas within the proximity of
the community or region and which provide ageappropriate
programs adapted for both male and female youth at the
elementary, middle, and high school levels.  A program shall
focus on the prevention of initial pregnancies during the
adolescent years by emphasizing sexual abstinence as the only
completely safe and effective means of avoiding pregnancy and
sexually transmitted diseases and by providing information
regarding the comparative failure rates of contraceptives, and
by emphasizing responsible decision making in relationships,
managing of peer and social pressures, development of
selfesteem, the costs and responsibilities of parenting, and
information regarding the alternative of adoption for placement
of a child.  The program shall also include an evaluation and
assessment component which includes evaluation of and
recommendations for improvement of the program by the youth and
parents involved.  Evaluation and assessment reports shall be
provided to the department of human services, at a time
determined by the department in the grant award.  Community or
regional groups interested in applying for a grant under this
subsection may be issued a planning grant or may utilize grant
moneys for the costs of technical assistance to analyze
community needs, match service providers to needs, negotiate
service provision strategies, or other assistance to focus grant
services provided under this subsection.  The technical
assistance may be provided by organizations affiliated with
institutions under the authority of the state board of regents
or other organizations experienced in providing technical
assistance concerning similar services.
3.  The department of human services, in cooperation with the
Iowa department of public health, shall determine the criteria
to be used in measuring the results of all pregnancy prevention
programs for which funds are allocated in this section.  The
criteria to be used shall be made available to the interim
committee established in subsection 4.
4.  The legislative council is requested to established a
legislative interim committee during the 1996 interim of the
general assembly to evaluate the effectiveness of current and
proposed adolescent pregnancy prevention programs.
5.  Of the funds appropriated in this section, $846,014 shall be
used by the department for child abuse prevention grants.  Of
the funds allocated in this sub
section, $115,000 shall be transferred to the Iowa department of
public health for the Iowa healthy family program under section
135.106, to be expended in accordance with the provisions
relating to this program in 1996 Iowa Acts, Senate File 2448.
Sec. 12.  COURT-ORDERED SERVICES PROVIDED TO JUVENILES. There is
appropriated from the general fund of the state to the
department of human services for the fiscal year beginning July
1, 1996, and ending June 30, 1997, the following amount, or so
much thereof as is necessary, to be used for the purpose
designated:
Payment of the expenses of court-ordered services provided to
juveniles which are a charge upon the state pursuant to section
232.141, subsection 4:  
	 $	  3,090,000
1.  Notwithstanding section 232.141 or any other provision of
law, the funds appropriated in this section shall be allocated
to the judicial districts as determined by the state court
administrator.  The state court administrator shall make the
determination on the allocations on or before June 15.
2.  a.  Each judicial district shall continue the planning group
for the court-ordered services for juveniles provided in that
district which was established pursuant to 1991 Iowa Acts,
chapter 267, section 119.  A planning group shall continue to
perform its duties as specified in that law.  Reimbursement
rates for providers of court-ordered evaluation and treatment
services paid under section 232.141, subsection 4, shall be
negotiated with providers by each judicial district's planning
group.
b.  Each district planning group shall submit an annual report
in January to the state court administrator and the department
of human services.  The report shall cover the preceding fiscal
year and shall include a preliminary report on the current
fiscal year.  The administrator and the department shall compile
these reports and submit the reports to the chairpersons and
ranking members of the joint appropriations subcommittee on
human services and the legislative fiscal bureau.
3.  The department of human services shall develop policies and
procedures to ensure that the funds appropriated in this section
are spent only after all other reasonable actions have been
taken to utilize other funding sources and community-based
services.  The policies and procedures shall be designed to
achieve the following objectives relating to services provided
under chapter 232:
a.  Maximize the utilization of funds which may be available
from the medical assistance program including usage of the early
and periodic screening, diagnosis, and treatment (EPSDT) program.
b.  Recover payments from any third-party insurance carrier
which is liable for coverage of the services, including health
insurance coverage.
c.  Pursue development of agreements with regularly utilized
out-of-state service providers which are intended to reduce per
diem costs paid to those providers.
4.  The department of human services, in consultation with the
state court administrator and the judicial district planning
groups, shall compile a monthly report describing spending in
the districts for court-ordered services for juveniles,
including the utilization of the medical assistance program. 
The reports shall be 
submitted on or before the twentieth day of each month to the
chairpersons and ranking members of the joint appropriations
subcommittee on human services and the legislative fiscal bureau.
5.  Notwithstanding chapter 232 or any other provision of law, a
district or juvenile court in a department of human services
district shall not order any service which is a charge upon the
state pursuant to section 232.141 if there are insufficient
court-ordered services funds available in the district
allocation to pay for the service.  The chief juvenile court
officer shall work with the judicial district planning group to
encourage use of the funds appropriated in this section such
that there are sufficient funds to pay for all court-related
services during the entire year.  The eight chief juvenile court
officers shall attempt to anticipate potential surpluses and
shortfalls in the allocations and shall cooperatively request
the state court administrator to transfer funds between the
districts' allocations as prudent.
6.  Notwithstanding any provision of law to the contrary, a
district or juvenile court shall not order a county to pay for
any service provided to a juvenile pursuant to an order entered
under chapter 232 which is a charge upon the state under section
232.141, subsection 4.
7.  Of the funds appropriated in this section, not more than
$100,000 may be used by the judicial department for
administration of the requirements under this section and for
travel associated with court-ordered placements which are a
charge upon the state pursuant to section 232.141, subsection
4.
8.  Of the funds appropriated in this section, not more than
$400,000 may be transferred to the appropriation in this Act for
child and family services and used to provide school-based
supervision of children adjudicated under chapter 232.
Sec. 13.  MENTAL HEALTH INSTITUTES.  There is appropriated from
the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the purposes designated:
For the state mental health institutes for salaries, support,
maintenance, and miscellaneous purposes and for not more than
the following full-time equivalent positions:  
	 $	 41,537,333
	 FTEs	     927.16
1.  The funds appropriated and full-time equivalent positions
authorized in this section are allocated as follows:
a.  State mental health institute at Cherokee:  
	 $	 13,581,308
	 FTEs	     306.04
b.  State mental health institute at Clarinda:  
	 $	  6,172,607
	 FTEs	     136.82
c.  State mental health institute at Independence:  
	 $	 16,946,094
	 FTEs	     401.82
d.  State mental health institute at Mount Pleasant:  
	 $	  4,837,324
	 FTEs	      82.48
2.  Within the funds appropriated in this section, the
department may reallocate funds as necessary to best fulfill the
needs of the institutions provided for in the appropriation.
3.  As part of the discharge planning process at the state
mental health institutes, the department shall provide
assistance in obtaining eligibility for federal supplemental
security income (SSI) to those individuals whose care at a state
mental health institute is the financial responsibility of the
state.
Sec. 14.  HOSPITAL-SCHOOLS.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purposes designated:
For the state hospital-schools, for salaries, support,
maintenance, and miscellaneous purposes and for not more than
the following full-time equivalent positions:  
	 $	 62,029,824
	 FTEs	   1,516.00
1.  The funds appropriated and full-time equivalent positions
authorized in this section are allocated as follows:
a.  State hospital-school at Glenwood:  
	 $	 35,070,700
	 FTEs	     872.50
b.  State hospital-school at Woodward:  
	 $	 26,959,124
	 FTEs	     643.50
2.  Within the funds appropriated in this section, the
department may reallocate funds as necessary to best fulfill the
needs of the institutions provided for in the appropriation.
Sec. 15.  MENTAL ILLNESS SPECIAL SERVICES.  There is
appropriated from the general fund of the state to the
department of human services for the fiscal year beginning July
1, 1996, and ending June 30, 1997, the following amount, or so
much thereof as is necessary, to be used for the purpose
designated:
For mental illness special services:  
	 $	    121,220
1.  The department and the Iowa finance authority shall develop
methods to implement the financing for existing community-based
facilities and to implement 
financing for the development of affordable community-based
housing facilities. The department shall assure that clients are
referred to the housing as it is developed.
2.  The funds appropriated in this section are to provide funds
for construction and start-up costs to develop community living
arrangements to provide for persons with mental illness who are
homeless.  These funds may be used to match federal Stewart B.
McKinney Homeless Assistance Act grant funds.
Sec. 16.  FAMILY SUPPORT SUBSIDY PROGRAM.  There is appropriated
from the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used by the division of children and family
services for the purpose designated:
For the family support subsidy program:  
	 $	  1,344,000
The division of children and family services shall utilize not
more than $200,000 of the funds appropriated in this section to
implement a pilot project of the children-at-home component
under the comprehensive family support program in at least one
rural and one urban county.  Not more than $50,000 of the funds
allocated in this paragraph shall be used for administrative
costs.  
Sec. 17.  SPECIAL NEEDS GRANTS.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
To provide special needs grants to families with a family member
at home who has a developmental disability or to a person with a
developmental disability:  
	 $	     53,212
Grants must be used by a family to defray special costs of
caring for the family member to prevent out-of-home placement of
the family member or to provide for independent living costs. 
The grants may be administered by a private nonprofit agency
which serves people statewide provided that no administrative
costs are received by the agency.  Regular reports regarding the
special needs grants with the family support subsidy program and
an annual report concerning the characteristics of the grantees
shall be provided to the legislative fiscal bureau.
Sec. 18.  MI/MR/DD STATE CASES.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purposes designated:
For purchase of local services for persons with mental illness,
mental retardation, and developmental disabilities where the
client has no established county of legal settlement:  
	 $	  5,454,000
If a county has a county management plan which is approved by
the director of human services pursuant to section 331.439, the
services paid for under this section are exempt from the
department's purchase of service system requirements.  The
department shall adopt rules to implement the provisions of this
paragraph.
Sec. 19.  MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES -
COMMUNITY SERVICES FUND.  There is appropriated from the general
fund of the state to the mental health and developmental
disabilities community services fund created in section 225C.7
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
For mental health and developmental disabilities community
services in accordance with this Act:  
	 $	 16,230,000
1.  Of the funds appropriated in this section, $15,951,138 shall
be allocated to counties for funding of community-based mental
health and developmental disabilities services.  The moneys
shall be allocated to a county as follows:
a.  Fifty percent based upon the county's proportion of the
state's population of persons with an annual income which is
equal to or less than the poverty guideline established by the
federal office of management and budget.
b.  Fifty percent based upon the county's proportion of the
state's general population.
2.  a.  A county shall utilize the funding the county receives
pursuant to subsection 1 for services provided to persons with a
disability, as defined in section 225C.2. However, no more than
50 percent of the funding shall be used for services provided to
any one of the service populations.
b.  A county shall use at least 50 percent of the funding the
county receives under subsection 1 for contemporary services
provided to persons with a disability, as described in rules
adopted by the department.
3.  Of the funds appropriated in this section, $30,000 shall be
used to support the Iowa compass program providing computerized
information and referral services for Iowans with disabilities
and their families.
4.  The department shall submit an annual report concerning each
population served and each service funded in this section to the
chairpersons and ranking members of the joint appropriations
subcommittee on human services and the legislative fiscal bureau.
5.  Of the funds appropriated in this section, not more than
$248,862 shall be provided to those counties having supplemental
per diem contracts in effect on June 30, 1994, which were
originally ini
tiated under 1993 Iowa Acts, chapter 172, section 16, subsection
2.  The amount provided to each county shall be equal to the
amount the county would be eligible to receive under the
supplemental per diem contracts in effect on June 30, 1994, if
the contracts were continued in effect for the entire fiscal
year beginning July 1, 1996.
6.  a.  Funding from the federal social services block grant in
the amount of $13,038,763 is allocated for distribution to
counties for local purchase of services for persons with mental
illness or mental retardation or other developmental disability.
b.  The funds allocated in this subsection shall be expended by
counties in accordance with eligibility guidelines established
in the department's rules outlin
ing general provisions for service administration.  Services
eligible for payment with funds allocated in this subsection are
limited to any of the following which are provided in accordance
with the department's administrative rules for the services: 
adult support, adult day care, administrative support for
volunteers, community supervised apartment living arrangements,
residential services for adults, sheltered work, supported
employment, supported work training, transportation, and work
activity.
c.  In purchasing services with funds allocated in this
subsection, a county shall designate a person to provide for
eligibility determination and development of a case plan for
individuals for whom the services are purchased.  The designated
person shall be a medical assistance case manager serving the
person's county of residence.  If an individual does not have a
case manager, the individual's eligibility shall be determined
by a social services caseworker of the department serving the
individual's county of residence.  The case plan shall be
developed in accordance with the department's rules outlining
general provisions for service administration.
d.  Services purchased with funds allocated in this subsection
must be the result of a referral by the person who identified
the services in developing the individual's case plan.
e.  Services purchased with funds allocated in this subsection
must be under a purchase of service contract established in
accordance with the department's administrative rules for
purchase of service.
f.  The funds provided by this subsection shall be allocated to
each county as follows:
(1)  Fifty percent based upon the county's proportion of the
state's population of persons with an annual income which is
equal to or less than the poverty guideline established by the
federal office of management and budget.
(2)  Fifty percent based upon the amount provided to the county
for local purchase of services in the preceding fiscal year.
g.  Each county shall submit to the department a plan for
funding of the services eligible for payment under this
subsection.  The plan may provide for allocation of the funds
for one or more of the eligible services.  The plan shall
identify the funding amount the county allocates for each
service and the time period for which the funding will be
available.  Only those services which have funding allocated in
the plan are eligible for payment with funds provided in this
subsection.
h.  A county shall provide advance notice to the individual
receiving services, the service provider, and the person
responsible for developing the case plan of the date the county
determines that funding will no longer be available for a
service.
i.  The moneys provided under this subsection do not establish
an entitlement to the services funded under this subsection.
7.  If a county has a county management plan which is approved
by the director of human services pursuant to section 331.439,
the county shall be considered to have met the requirements of
subsection 2, and subsection 6, paragraphs "b", "c", "d", "e",
and "g".  The department shall adopt rules to implement the
provisions of this subsection.
Sec. 20.  PERSONAL ASSISTANCE - FAMILY SUPPORT.  There is
appropriated from the general fund of the state to the
department of human services for the
 fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount or so much thereof as is necessary, to be
used for the purpose designated:
For continuation of a pilot project for the personal assistance
services program in accordance with this section:  
	 $	    364,000
The funds appropriated in this section shall be used by the
division of children and family services to continue the pilot
project for the personal assistance services program under
section 225C.46 in an urban and a rural area.  A portion of the
funds may be used for costs to develop a federal home and
community-based waiver under the medical assistance program for
persons with physical disabilities or other expenditures
necessary to develop the personal assistance program in the most
appropriate and cost-effective manner.  However, not more than
$50,000 shall be used for administrative costs.  The pilot
project and the waiver shall not be implemented in a manner that
would require additional county or state costs for assistance
provided to an individual served under the pilot project or the
waiver.
Sec. 21.  FIELD OPERATIONS.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
For field operations, including salaries, support, maintenance,
and miscellaneous purposes and for not more than the following
full-time equivalent positions:  
	 $	 38,483,998
	 FTEs	   2,019.00
Sec. 22.  GENERAL ADMINISTRATION.  There is appropriated from
the general fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the purpose designated:
For general administration, including salaries, support,
maintenance, and miscellaneous purposes and for not more than
the following full-time equivalent positions:  
	 $	 11,917,316
	 FTEs	     401.00
1.  Of the funds appropriated in this section, $57,090 is
allocated for the prevention of disabilities policy council
established in section 225B.3.
2.  a.  Except as provided under this subsection and under the
appropriation in this Act to the legislative council, the
department shall not implement the options for service system
modification developed by the department's modification teams in
response to proposed federal action and shall not implement
other actions in response to enacted federal changes affecting
the programs administered by the department unless the
department is implementing a policy or action authorized in law
by the Seventy-sixth General Assembly, 1996 Session, or by the
Seventy-seventh General Assembly.
b.  The department may make changes to the requirements for
periodic reporting by participants under the family investment
program, food stamp program, or medical assistance program if
the changes would result in a reduction in paper
work for the participants and for department staff.  If a
federal waiver is necessary to implement a change, the
department may submit the waiver request to the United States
departments of health and human services and agriculture, as
applicable.  If the department elects to submit a waiver request
or to adopt rules to implement a change under this paragraph,
the department shall first consult with a group similar to the
work group that considered the state human investment policy
proposal or with a successor interagency task force which makes
recommendations concerning the family investment program, and
shall share the proposals with the chairpersons and ranking
members of the committees on human resources of the senate and
house of representatives.
c.  If implementation of the request would result in increased
federal funding and would permit greater flexibility in service
funding, the department may submit a waiver request to the
United States department of health and human services for Title
IV-E funding to be provided to the state in a fixed amount. 
Prior to submission of the request, the department shall consult
with representatives of the juvenile court and service providers.
Sec. 23.  DEPARTMENT OF HUMAN SERVICES RESTRUCTURING TASK FORCE
ON THE FUTURE OF HUMAN SERVICES.  There is appropriated from the
general fund of the state to the legislative council for the
fiscal period beginning July 1, 1996, and ending June 30, 1998,
the following amount, or so much thereof as is necessary, to be
used for the purpose designated:
For expenses associated with the activities of the task force
for assessing the structure and function of the department of
human services and human services programs in accordance with
this section:  
	 $	     75,000
1.  The legislative council shall establish a task force to
develop a comprehensive proposal for changing the role and
function of the department of human services and its programs.
The purpose of the changes is to improve services to Iowans
through the creation of new federal, state, and local
partnerships.  The task force shall make recommendations
regarding restructuring the department of human services in
order to achieve better human services results, to improve the
quality of service delivery, and to increase the quality of the
department's interaction with the public.  The task force may
also assess program duplication and linkages with other federal,
state, or local programs or funding streams.
2.  The task force shall be composed of not more than 21 members
appointed by the legislative council and shall include not more
than five individuals recommended by the governor and
legislators who are members of the joint appropriations
subcommittee on human services and other knowledgeable
legislators designated by the legislative council.  The task
force may use moneys appropriated in this section for technical
assistance.  The task force shall consult with service
consumers, experts who are representative of organizations such
as nonprofit service organizations, health insurers, and human
serviceS-oriented community organizations, representatives of
local governments, representatives of state agencies, federal
officials with expertise or responsibilities regarding human
services in Iowa, and others, as determined by the task force.
An interim report shall be completed prior to the convening of
the Seventy-seventh General Assembly.
The task force shall provide for public input concerning the
four modification proposals developed by the department in
response to proposed federal actions submitted to the joint
appropriations subcommittee on human services in February 1996.
The task force may establish work groups to assist in the task
force's consideration of the modification proposals which may
include the following:
a.  A review of the child welfare modification proposal which
may include input from representatives of the juvenile court,
service providers, families receiving services, the attorney
general, representatives of local governments, representatives
of state agencies, and other citizens and officials.
b.  A review of the mental health and developmental disabilities
proposal which shall incorporate issues associated with
implementation of the funding reform enacted in 1995 Iowa Acts,
chapter 206; usage of service providers such as intermediate
care facilities for the mentally retarded, state institutions,
and other services for persons with disabilities; distribution
of services throughout the state; and other issues.  In
addition, the review shall consider a proposal to replace the
single contract for managed care under medical assistance with
not more than four regional plans utilizing collaborations
between community mental health centers as umbrella agencies.
c.  A review of the family investment program proposal which may
include input from the work group which considered the state
human investment policy proposal or a successor interagency task
force which makes recommendations to the department concerning
the family investment program. Consideration of issues
associated with the proposal may include review of the emergency
assistance program, the family development and self-sufficiency
(FaDSS) program, and child day care programs, and an assessment
of the feasibility of transferring all or part of the functions
of the child support recovery unit to other agencies of state
government.
d.  A review of the medical assistance proposal which may
include input from representatives of the medical assistance
advisory council, the long-term care resident's advocate, and
consumer groups such as the Iowa affiliate of the American
association of retired persons, Iowa citizens' action network,
the governor's DD council which was formerly referred to as the
governor's planning council for developmental disabilities, and
representatives of maternal and child health centers.
3.  If federal law requires the state to make changes in the
programs and services directed to the populations addressed by
the modification proposals and authorizes the changes to be made
without state legislation, the department shall adopt rules to
implement the changes.  The rules shall be submitted to the task
force for review and recommendation prior to their submission to
the administrative rules review committee.  
Sec. 24.  VOLUNTEERS.  There is appropriated from the general
fund of the state to the department of human services for the
fiscal year beginning July 1, 1996, and ending June 30, 1997,
the following amount, or so much thereof as is necessary, to be
used for the purpose designated:
For development and coordination of volunteer services:  
	 $	     98,900
Sec. 25.  MEDICAL ASSISTANCE, STATE SUPPLEMENTARY ASSISTANCE,
AND SOCIAL SERVICE PROVIDERS REIMBURSED UNDER THE DEPARTMENT OF
HUMAN SERVICES.
1.  a.  The department of human services may allocate increases
among items and procedures for durable medical products and
supplies as deemed appropriate in
 cooperation with durable medical equipment and supply dealers,
audiologists, and hearing aid dealers.
b.  For the fiscal year beginning July 1, 1996, skilled nursing
facilities shall remain at the rates in effect on June 30, 1996.
c.  The dispensing fee for pharmacists shall remain at the rate
in effect on June 30, 1996.  The reimbursement policy for drug
product costs shall be in accordance with federal requirements.
d.  Reimbursement rates for in-patient and outpatient hospital
services shall remain at the rates in effect on June 30, 1996. 
The department shall continue the outpatient hospital
reimbursement system based upon ambulatory patient groups
implemented pursuant to 1994 Iowa Acts, chapter 1186, section
25, subsection 1, paragraph "f".  Reimbursements made between
July 1, 1996, and June 30, 1997, under the outpatient hospital
reimbursement system implemented pursuant to 1994 Iowa Acts,
chapter 1186, section 25, subsection 1, paragraph "f", shall be
retrospectively adjusted so that the reimbursement made is
within a ten percent deviation of the lower of the cost or the
charges for the services provided during the fiscal year ending
June 30, 1996.  In addition, the department shall continue the
revised medical assistance payment policy implemented pursuant
to that paragraph to provide reimbursement for costs of
screening and treatment provided in the hospital emergency room
if made pursuant to the prospective payment methodology
developed by the department for the payment of outpatient
services provided under the medical assistance program.
e.  Reimbursement rates for rural health clinics shall be
increased in accordance with increases under the federal
medicare program.
f.  Home health agencies certified for the federal Medicare
program, hospice services, and acute care mental hospitals shall
be reimbursed for their current federal Medicare audited costs.
g.  The basis for establishing the maximum medical assistance
reimbursement rate for nursing facilities shall be the 70th
percentile of facility costs as calculated from the June 30,
1996, unaudited compilation of cost and statistical data. 
However, to the extent funds are available within the amount
projected for reimbursement of nursing facilities within the
appropriation for medical assistance in this Act, and within the
appropriation for medical assistance as a whole, the department
shall adjust the maximum medical assistance reimbursement for
nursing facilities to the 70th percentile, as calculated on
December 31, 1996, unaudited compilation of cost and statistical
data and the adjustment shall take effect January 1, 1997.
h.  The department may modify the reimbursement methodology for
skilled nursing facilities which participated in the medical
assistance program on or before May 31, 1993, and which met the
departmental disproportionate share payment provisions as of May
31, 1993, if it is possible to demonstrate that the modification
would result in a cost savings to the medical assistance program.
i.  The department may revise the fee schedule used for
physician reimbursement.
j.  Federally qualified health centers shall be reimbursed at
100 percent of reasonable costs as determined by the department
in accordance with federal requirements.
k.  The department may allocate increases among items and
procedures for dental procedures as deemed appropriate in
cooperation with dentists.
2.  For the fiscal year beginning July 1, 1996, the maximum cost
reimbursement rate for residential care facilities reimbursed by
the department shall be $21.54 per day.  The flat reimbursement
rate for facilities electing not to file semiannual cost reports
shall be $15.41 per day.  For the fiscal year beginning July 1,
1996, the maximum reimbursement rate for providers reimbursed
under the in-home healtH-related care program shall be $414.11
per month.
3.  Unless otherwise directed in this section, when the
department's reimbursement methodology for any provider
reimbursed in accordance with this section includes an inflation
factor, this factor shall not exceed the amount by which the
consumer price index for all urban consumers increased during
the calendar year ending December 31, 1995.
4.  Notwithstanding section 234.38, in the fiscal year beginning
July 1, 1996, the foster family basic daily maintenance rate and
the maximum adoption subsidy rate for children ages 0 through 5
years shall be $12.34, the rate for children ages 6 through 11
years shall be $13.06, the rate for children ages 12 through 15
years shall be $14.23, and the rate for children ages 16 and
older shall be $15.12.
5.  For the fiscal year beginning July 1, 1996, the maximum
reimbursement rates for social service providers shall be the
same as the rates in effect on June 30, 1996, except under any
of the following circumstances:
a.  If a new service was added after June 30, 1996, the initial
reimbursement rate for the service shall be based upon actual
and allowable costs.
b.  If a social service provider loses a source of income used
to determine the reimbursement rate for the provider, the
provider's reimbursement rate may be adjusted to reflect the
loss of income, provided that the lost income was used to
support actual and allowable costs of a service purchased under
a purchase of service contract.
c.  The department revises the reimbursement rates as part of
the changes in the mental health and developmental disabilities
services system initiated pursuant to 1995 Iowa Acts, chapter
206 (Senate File 69), and associated legislation.
d.  The reimbursement rate revision is necessary to implement
the change required by the appropriation in this Act for an
increase in the reimbursement for residential care facilities.
6.  The group foster care reimbursement rates paid for placement
of children out-of-state shall be calculated according to the
same rate-setting principles as those used for in-state
providers unless the director determines that appropriate care
cannot be provided within the state.  The payment of the daily
rate shall be based on the number of days in the calendar month
in which service is provided.
7.  For the fiscal year beginning July 1, 1996, the combined
service and maintenance components of the reimbursement rate
paid to a shelter care provider shall be based on the cost
report submitted to the department.  The maximum reimbursement
rate shall be $76.61 per day.  If the department would reimburse
the provider at less than the maximum rate but the provider's
cost report justifies a rate of at least $76.61, the department
shall readjust the provider's reimbursement rate to the maximum
reimbursement rate.  In January 1997, the department shall
review the usage of shelter care and the funding allocated for
shelter care, if the usage is less than anticipated and the
existing contracts for provision of shelter care do not obligate
the total amount of the funds allocated, the department may
utilize moneys in the allocation, which would otherwise be
unexpended, for wrap-around services or support to enable group
foster care placement to be prevented or the length of stay
reduced.
8.  The department, through the drug utilization review
commission, shall propose a pilot project for an alternative
payment system, recommended in the study completed by the drug
utilization review commission, for compensation of pharmacists
for pharmaceutical care services under medical assistance at no
cost to the state.  The department shall submit the proposal to
the members of the joint appropriations subcommittee on human
services on or before November 30, 1996.
9.  For the fiscal year beginning July 1, 1996, the department
shall calculate reimbursement rates for intermediate care
facilities for the mentally retarded at the 80th percentile. 
The department shall address any other proposals for containment
of intermediate care facilities for the mentally retarded costs
with the work group for restructuring of the department of human
services created pursuant to this Act.
10.  The department of human services shall adopt rules
applicable to agencies providing services under the department's
rehabilitative treatment program for children and their families
to eliminate reimbursement rate limits on service components
which are within a category of cost which itself has a
reimbursement rate limit.  The change required by this
subsection shall be implemented in a manner which is cost
neutral.
11.  The department shall negotiate with providers of services
under the department's medical assistance rehabilitative
treatment program for children and families, to revise the
department's rules providing reimbursement rates under the
program, including a review of cost principles.  The goals for
the revision are to simplify the reimbursement process, reduce
paperwork for providers, and provide full payment for necessary
services provided under contract with the department.  Prior to
adoption of the rules and no later than October 1, 1996, the
department shall provide a description of the agreement to the
chairpersons and ranking members of the joint appropriations
subcommittee on human services.  The provisions of this
subsection shall be separate from the provisions of subsection
10.
12.  The department of human services, in consultation with
representatives of nursing facilities, consumers, legislators, a
representative of the department of management or the governor's
designee, and other interested entities, shall do all of the
following with the goals of improving the quality of care and
improving the recruitment and retention of qualified direct
health care providers in nursing facilities:
a.  Establish definitions for the direct health care,
administrative, room and board, and property cost categories for
reimbursement of nursing facilities under the medical assistance
program.
b.  Analyze and make recommendations for the distribution of
costs among the cost categories which may include elimination or
replacement of the cost categories.
c.  Analyze and make recommendations to eliminate reimbursement
rate limits on components which are within a category of cost
which itself has a reimbursement rate limit.
d.  Conduct a cost-benefit analysis of incentive payments,
evaluate their impact on quality of care and patient wellbeing,
and make recommendations based upon the analysis and evaluation.
e.  Analyze and make recommendations for clarification and
simplification of the cost report format, which may include
standardization with the county charts of accounts.
f.  Analyze and make recommendations regarding the use of a
reimbursement allowance for those nursing facilities serving a
disproportionate share of medical assistance patients.
g.  Analyze and make recommendations regarding effective ways to
mediate disputes between a nursing facility and the department
of inspections and appeals concerning significant violations,
prior to a formal appeal.
h.  Submit a report of the definitions, analysis, and
recommendations to the general assembly on or before December
16, 1996.
13.  The department may adopt emergency rules to implement the
provisions of this section.
Sec. 26.  RESIDENTIAL SERVICES - PURCHASE OF SERVICES -
REIMBURSEMENT RATE INCREASE.  There is appropriated from the
general fund of the state to the department of human services
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amount, or so much thereof as is necessary,
to be used for the purpose designated:
For an increase in the purchase of service reimbursement rate
for adult residential services provided to persons residing in
any category of licensed residential care facility. Beginning
July 1, 1996, provider service rates for adult residential
services shall be increased up to the amount of actual and
allowable costs plus inflation, based upon the cost reports on
which rates have been established as of April 1, 1996.  However,
a provider service rate shall not be increased by more than
$4.36 per day.  If a provider service rate in effect prior to
July 1, 1996, is greater than the actual and allowable costs
plus inflation, based upon the cost report, or if the difference
between the provider service rate and the actual and allowable
costs is less than $.44 per day, the provider service rate shall
be increased by $.44 per day:  
	 $	  1,300,000
1.  Funding appropriated in this section shall be allocated to
counties in accordance with the distribution guidelines for
local purchase of services in accordance with the appropriation
in this Act for the mental health and developmental disabilities
community services fund.  Use of the funding is restricted to
reimbursement of a licensed residential care facility provider
of adult residential services which had a purchase of service
contract for those services in effect on June 30, 1996, and for
which the rate negotiated for fiscal year 1996-1997 is greater
than the rate paid in fiscal year 1995-1996.
2.  Of the moneys appropriated in this section, $130,000 shall
be transferred to the appropriation in this Act for MI/MR/DD
state cases and shall be used for payment of the increased
reimbursement rate to residential care facilities providing
services through local purchase of services for persons under
the state cases program, and in accordance with the guidelines
in this Act for local purchase of services.
Sec. 27.  APPROPRIATIONS REDUCTIONS.  The following
appropriations in this Act for the fiscal year beginning July 1,
1996, and ending June 30, 1997, are reduced by a total of
$1,560,000: child support recovery, juvenile institutions,
community-based programs, mental health institutes, state
hospital-schools, field operations, and general administration.
The department shall use the following guidelines in achieving
these reductions:
1.  As the highest priority, avoid disruptions of direct client
services.
2.  To the extent possible, use attrition to reduce the number
of positions filled.
3.  To the extent possible, not disproportionately affect a
single job classification.
4.  Not include in the reduction, the elimination of the 3.00
FTEs for managed care specialists in the medical services
division.
5.  Consider reductions in administration, overhead, and program
duplication.
The department shall submit the department's plan for
accomplishing the reductions to the chairpersons and ranking
members of the joint appropriations subcommittee on human
services, the department of management, and the legislative
fiscal bureau on or before June 15, 1996.
Sec. 28.  STATE INSTITUTIONS - CLOSINGS, REDUCTIONS, AND BILLING
PRACTICES.
1.  If a state institution administered by the department of
human services is to be closed or reduced in size, prior to the
closing or reduction the department shall initiate and
coordinate efforts in cooperation with the Iowa department of
economic development to develop new jobs in the area in which
the state institution is located.  In addition, the department
may take other actions to utilize any closed unit or other
facilities and services of an institution, including but not
limited to assisting public or private organizations in
utilizing the services and facilities.  The actions may also
include assisting an organization with remodeling and lease
costs by forgiving future rental or lease payments to the extent
necessary for a period not to exceed five years.  The department
of human services and the department of economic development
shall submit a joint report to the chairpersons and ranking
members of the joint appropriations subcommittee on human
services on or before January 2, 1997, regarding any efforts
made pursuant to this subsection.
2.  For purposes of this section, "state institution" means a
state mental health institute, a state hospital-school, the
state training school, and the Iowa juvenile home under the
authority of the department of human services listed in section
218.1.  If excess capacity exists at a state institution beyond
the capacity required for placements at the institution under
law, the department of human services may enter into a contract
with a managed care provider or an organized delivery system for
health care, to provide services during the fiscal year
beginning July 1, 1996, at the institution for the plan or
system.
3.  The department shall work with administrators of state
institutions and the department of management and the
legislative fiscal bureau in reviewing revenues and expenditures
attributable to state institutions, applicable fiscal
procedures, and other information as necessary to develop a
proposal to revise the manner of making appropriations to these
state institutions and of accounting for reimbursements and
expenditures so that in future fiscal years the amounts
appropriated reflect the net amount of state funds needed.  The
proposal shall be submitted to the general assembly on or before
December 16, 1996.  If deemed feasible by those performing the
review, the department of human services and the department of
management shall incorporate the proposed revisions in the
budget documents for the fiscal year beginning July 1, 1997.
4.  The superintendents of the state hospital-schools shall work
with the department's administrative staff in studying the
manner in which services and costs are combined for purposes of
billing for medical assistance reimbursement at the state
hospital-schools.  Following the study, the superintendents
shall submit a
 report which may include a proposal for revising the state
hospital-schools' manner of billing for medical assistance
reimbursement to be more comparable to other intermediate care
facilities for the mentally retarded.  The report shall be
submitted to the general assembly on or before December 16, 1996.
5.  The superintendent of the state hospital-schools shall work
with the department's administrative staff in developing
methodologies to bill services, consultation, and other
assistance provided by the state hospital-schools in support of
community-based services.  The department may implement the
methodologies in the fiscal year beginning July 1, 1996.
6.  In addition to existing planning efforts for communitybased
alternatives to placements at a state hospital-school, if the
department's budget planning for fiscal year 1997-1998 includes
a proposal for reduction of capacity at a state hospital-school
or mental health institute, the department shall work with
counties, service providers, advocates, and the department's
contractor for managed mental health care under medical
assistance, in developing a plan for community-based placements
in place of the capacity proposed to be reduced. The plan shall
be submitted for review to the task force on the future of human
services created in this Act and to the statecounty management
committee.  It is the intent of the general assembly that any
authorization for any reduction of capacity at a state
hospital-school or state mental health institute in fiscal year
1997-1998 is contingent upon development of sufficient
community-based placements to replace the reduced capacity.
7.  To the extent possible, the department shall consult with
the applicable workgroups of the task force on the future of the
department of human services created in this Act concerning the
activities required of the department pursuant to this section.
Sec. 29.  STANDARDS FOR CASELOADS.  The department of human
services shall develop a plan for meeting national standards on
caseloads for the department's social workers.
The department shall submit the planning provisions required by
this section to the members of the joint appropriations
subcommittee on human services of the senate and house of
representatives on or before January 8, 1997.
Sec. 30.  REPORTS.  Any reports or information required to be
compiled and submitted under this Act shall be submitted to the
chairpersons and ranking members of the joint appropriations
subcommittee on human services, the legislative fiscal bureau,
the legislative service bureau, and to the caucus staffs on or
before the dates specified for submission of the reports or
information.
Sec. 31.  REPORTS BY PROVIDERS OF FOSTER CARE SERVICES - REVIEW
- PROCESS SIMPLIFICATION.  The department of human services
shall consult with providers of rehabilitation treatment
services relating to the medical assistance child services
initiative in reviewing provider requirements relating to
financial and statistical accountability reporting and the
process for submission of the reports relating to these
requirements.  Following this review, and no later than January
1, 1997, the department of human services shall implement a
process which provides, at a minimum, for a simplified means of
documenting compliance with provider accountability requirements
which shall, at a minimum, include consolidation of the reports
required and which may provide a means for submission of the
reports in an electronic format.
Sec. 32.  Section 135H.6, Code 1995, is amended by adding the
following new subsections:
NEW SUBSECTION.  5A.  The department of human services may
give approval to conversion of beds specializing in substance
abuse treatment previously approved under subsection 5,
paragraph "b", to beds which are not specialized as referenced
in subsection 5, paragraph "a".  Beds converted under this
subsection shall be in addition to the number of beds authorized
under subsection 5, paragraph "a".  However, the total number of
beds approved under subsection 5 shall not exceed four hundred
thirty.  Conversion of beds under this subsection shall not
require a revision of the certificate of need issued for the
psychiatric institution making the conversion.
NEW SUBSECTION.  7.  A psychiatric institution licensed
prior to January 1, 1996, may exceed the number of beds
authorized under subsections 5 and 5A if the excess beds are
used to provide services funded from a source other than the
medical assistance program under chapter 249A.  Notwithstanding
subsections 4, 5, and 5A, the provision of services using such
excess beds does not require a certificate of need or a review
by the department of human services.
Sec. 33.  Section 228.5, subsection 1, Code 1995, is amended to
read as follows:
1.  An individual or an individual's legal representative shall
be informed that mental health information relating to the
individual may be disclosed to employees or agents of or for the
same mental health facility or to other providers of
professional services or their employees or agents if and to
the extent necessary to facilitate the provision of
administrative and professional services to the individual.
Sec. 34.  Section 228.5, Code 1995, is amended by adding the
following new subsection:
NEW SUBSECTION.  4.  Mental health information relating to
an individual may be disclosed to other providers of
professional services or their employees or agents if and to the
extent necessary to facilitate the provision of administrative
and professional services to the individual.
Sec. 35.  Section 232.143, Code Supplement 1995, is amended to
read as follows:
232.143  REGIONAL GROUP FOSTER CARE TARGET BUDGET
TARGETS.
1.  A statewide expenditure target for the average number
of for children in group foster care placements on any
day of in a fiscal year, which placements are a charge
upon or are paid for by the state, shall be established annually
in an appropriation bill by the general assembly.  The
department and the judicial department shall jointly develop a
formula for allocating a portion of the statewide
expenditure target established by the general assembly to
each of the department's regions.  The formula shall be based
upon the region's proportion of the state population of children
and of the statewide number of children placed in usage
of group foster care in the previous five completed fiscal
years and other indicators of need.  The number
expenditure amount determined in accordance with the formula
shall be the group foster care placement budget target
for that region.  A region may exceed its budget target for
group foster care by not more than five percent in a fiscal
year, provided the overall funding allocated by the department
for all child welfare services in the region is not exceeded.
2.  For each of the department's regions, representatives
appointed by the department and the juvenile court shall
establish a plan for containing the number 

of expenditures for children placed in group foster care
ordered by the court within the budget target allocated to
that region pursuant to subsection 1.  The plan shall include
monthly targets and strategies for developing alternatives to
group foster care placements in order to contain expenditures
for child welfare services provided to children within
the amount appropriated by the general assembly for that
purpose.  Each regional plan shall be established in advance of
the fiscal year to which the regional plan applies.  To the
extent possible, the department and the juvenile court shall
coordinate the planning required under this subsection with
planning for services paid under section 232.141, subsection 4. 
The department's regional administrator shall communicate
regularly, as specified in the regional plan, with the juvenile
courts within that region concerning the current status of the
regional plan's implementation.
3.  State payment for group foster care placements shall be
limited to those placements which are in accordance with the
regional plans developed pursuant to subsection 2.  If a
proposed group foster care placement in a region would meet the
region's plan requirements except that the placement would cause
a monthly or overall budget target to be exceeded and the child
is eligible for an alternative service which is costlier and
more restrictive than the proposed placement, the director of
human services, after consultation with appropriate juvenile
court officials, may allow an exception to policy and authorize
the placement.  At the close of the fiscal year, moneys for
specific placements authorized by the director under this
subsection shall be transferred from the state appropriation for
the alternative placement to the appropriation for group foster
care placements, as necessary to prevent a deficit in the
appropriation for group foster care.
Sec. 36.  Section 234.39, unnumbered paragraph 1, Code
Supplement 1995, is amended to read as follows:
It is the intent of this chapter that an individual receiving
foster care services and the individual's parents or guardians,
shall have primary responsibility for paying the cost of the
care and services.  The support obligation established and
adopted under this section shall be consistent with the
limitations on legal liability established under sections 222.78
and 230.15, and by any other statute limiting legal
responsibility for support which may be imposed on a person for
the cost of care and services provided by the department.  The
department shall notify an individual's parents or guardians at
the time of the placement of an individual in foster care, of
the responsibility for paying the cost of care and services. 
Support obligations shall be established as follows:
Sec. 37.  Section 234.39, Code Supplement 1995, is amended by
adding the following new subsection:
NEW SUBSECTION.  4.  The support debt for the costs of
services, for which a support obligation is established pursuant
to this section, which accrues prior to the establishment of the
support debt, shall be collected, at a maximum, in the amount
which is the amount of accrued support debt for the three months
preceding the earlier of the following:
a.  The provision by the child support recovery unit of the
initial notice to the parent or guardian of the amount of the
support obligation.
b.  The date that the written request for a court hearing is
received by the child support recovery unit as provided in
section 252C.3 or 252F.3.
Sec. 38.  NEW SECTION.  239.23  FAMILY INVESTMENT PROGRAM
HOST
 HOMES.
1.  As used in this section, unless the context otherwise
requires:
a.  "Host home" means a host home authorized in accordance with
the provisions of this section and licensed by the department to
provide a living arrangement and related services to minor
parents and pregnant minors or an alternative adult supervised
placement approved by the department.
b.  "Minor parent" means a recipient of or applicant for
assistance who is less than eighteen years of age and has never
been married.
2.  The department shall perform a home assessment of a minor
parent who applies for assistance to assess the minor parent's
living arrangement prior to the granting of assistance.  If a
minor parent is receiving assistance at the time the provisions
of this section are implemented, the department shall perform a
home assessment as a condition of continued assistance.
3.  If the department determines, based upon the home
assessment, that the minor parent is living in an environment
which is conducive to the positive upbringing of the minor
parent's child, the department may allow the minor parent to
continue living in the home with the parent or the legal
guardian of the minor parent or in another current living
arrangement which is approved by the department.
4.  If the department determines, based upon the home
assessment, that good cause exists for the minor parent to not
live with their parent or legal guardian or in the other current
living arrangement because the home environment is not conducive
to the minor parent's physical, emotional, or mental well-being,
the department shall require the minor parent to relocate to a
host home, as a condition of assistance under this chapter.  If
the minor parent does not live in a host home and the department
determines the resulting level of risk to the minor parent
warrants the filing of a child in need of assistance petition,
the department shall file the petition.
5.  If the department determines, based upon the home
assessment, that remaining in the current living arrangement is
not in the best interest of the minor parent or a child of the
minor parent and the minor parent is placed in a host home, the
parent or legal guardian shall be referred to the department's
child support recovery unit to establish a child support
obligation in accordance with the child support guidelines
prescribed pursuant to section 598.21, subsection 4, not to
exceed the cost of the host home placement.  However, if a child
in need of assistance petition is filed and the child is placed
in a foster care setting, the child support obligation shall be
determined as provided in section 234.39.
6.  a.  The department shall issue a request for proposals for
grants for nonprofit organizations to establish host homes to
provide adult supervision to minor parents and pregnant minors
presumed to be eligible for assistance.  A proposal shall
demonstrate the organization's ability to provide supervision,
services, and other support to enable a minor parent or pregnant
minor to develop self-sufficiency.
b.  Funding for a host home shall be obtained through assignment
of the minor parent's assistance under this chapter, as
permitted under federal law or waiver, through child support
recovered from the parent or legal guardian of the minor parent,
and through appropriations made for the purposes of reimbursing
host homes.
c.  The department shall adopt rules for licensing of host homes
which are
 distinct from foster care licensure requirements.
d.  Host home services shall include but are not limited to
training in family development, parenting and self-sufficiency
skills, and assistance in completing an education.
e.  A host home shall not be considered to be a group foster
care facility or to be another licensed facility which provides
care for children.  The placement of a minor parent or pregnant
minor and the children of a minor parent shall not be considered
a placement which is subject to the statewide target for the
number of group foster care placements under section 232.143 and
associated provisions.
7.  This section shall not be implemented prior to July 1, 1997,
and implementation is contingent upon federal approval of a
waiver authorizing the implementation.
Sec. 39.  Section 252B.4, Code 1995, is amended to read as
follows:
252B.4  NONASSISTANCE CASES.
The child support and paternity determination services
established by the department pursuant to this chapter and other
appropriate services provided by law including but not limited
to the provisions of chapters 239, 252A, 252C, 252D, 252E, 252F,
598, and 600B shall be made available by the unit to an
individual not otherwise eligible as a public assistance
recipient upon application by the individual for the services.
The application shall be filed with the department.
1.  The director shall require an application fee of five
dollars.
2.  The director may require an additional collect a fee
to cover the costs incurred by the department in providing the
support collection and paternity determination services for
service of process, genetic testing and court costs if the
entity providing the service charges a fee for the services.
a.  The director shall, by rule, establish and inform all
applicants for support enforcement and paternity determination
services of the fee schedule.
b.  The additional fee for services may be deducted from the
amount of the support money recovered by the department or may
be collected from the recipient of the services following
recovery of support money by the department.
3.  When the unit intercepts a federal tax refund of an obligor
for payment of delinquent support and the funds are due to a
recipient of services who is not otherwise eligible for public
assistance, the unit shall deduct a twenty-five dollar fee from
the funds before forwarding the balance to the recipient.
a.  The unit shall inform the recipient of the fee under this
subsection prior to assessment.
b.  The fee shall be assessed only to individuals who receive
support from the federal tax refund offset program.  If the tax
refund due the recipient is less than fifty dollars, the fee
shall not be assessed.
4.  The department may adopt rules to establish fees which
provide for recovery of administrative costs of the program in
addition to other fees identified.
5. 4.  Fees collected pursuant to this section shall be
retained by the department for use by the unit.  The director or
a designee shall keep an accurate record of funds so retained.
6. 5.  An application fee paid by a recipient of
services pursuant to subsection 1
 may be recovered by the unit from the person responsible for
payment of support and if recovered, shall be used to reimburse
the recipient of services.
a.  The fee shall be an automatic judgment against the person
responsible to pay support.
b.  This subsection shall serve as constructive notice that the
fee is a debt due and owing, is an automatic judgment against
the person responsible for support, and is assessed as the fee
is paid by a recipient of services.  The fee may be collected in
addition to any support payments or support judgment ordered,
and no further notice or hearing is required prior to collecting
the fee.
c.  Notwithstanding any provision to the contrary, the unit may
collect the fee through any legal means by which support
payments may be collected, including but not limited to income
withholding under chapter 252D or income tax refund offsets,
unless prohibited under federal law.
d.  The unit is not required to file these judgments with the
clerk of the district court, but shall maintain an accurate
accounting of the fee assessed, the amount of the fee, and the
recovery of the fee.
e.  Support payments collected shall not be applied to the
recovery of the fee until all other support obligations under
the support order being enforced, which have accrued through the
end of the current calendar month, have been paid or satisfied
in full.
f.  This subsection applies to fees that become due on or after
July 1, 1992.
Sec. 40.  Section 426B.2, subsection 5, Code Supplement 1995, is
amended to read as follows:
5.  The department of human services shall notify the director
of revenue and finance of the amounts due a county in accordance
with the provisions of this section.  The director of revenue
and finance shall draw warrants on the property tax relief fund,
payable to the county treasurer in the amount due to a county in
accordance with subsections 1 and 3 and mail distribute
the warrants to the county auditors in September on July
1 and March January 1 of each year.  Warrants for the
state payment in accordance with subsection 2 shall be
mailed distributed in January of each year.
Sec. 41.  NEW SECTION.  514I.1  IOWA HEALTHY KIDS PROGRAM -
LEGISLATIVE INTENT.
1.  The general assembly finds that increased access to health
care services could improve children's health and reduce the
incidence and costs of childhood illness and disabilities among
children in this state.  Many children do not have health care
services available or funded, and for those who do, lack of
access is a restriction to obtaining such services.  It is the
intent of the general assembly that a program be implemented to
provide health care services and comprehensive health benefits
or insurance coverage to children.  A goal for the program is to
cooperate with any existing programs with similar purposes
funded by either the public or private sector.
2.  For the purposes of this chapter, unless the context
otherwise requires:
a.  "Advisory council" means the advisory council created by the
division under section 514I.4.
b.  "Division" means the insurance division of the department of
commerce.
c.  "Program" means the program developed by the division in
accordance with section 514I.3.
Sec. 42.  NEW SECTION.  514I.2  IOWA HEALTHY KIDS PROGRAM
AUTHORIZATION.
1.  The general assembly authorizes the division to implement
the Iowa healthy kids program.  The division shall have all
powers necessary to carry out the purposes of this chapter,
including, but not limited to, the power to receive and accept
grants, loans, or advances of funds from any person and to
receive and accept from any source contributions of money,
property, labor, or any other thing of value, to be held, used,
and applied for the purposes of the program.
2.  The program shall operate initially on a pilot project basis
to include urban and rural areas.  Expansion beyond the initial
pilot project is subject to authorization by law.
3.  Implementation of the program shall be limited to the extent
of the funding appropriated for the purposes of the program.
Sec. 43.  NEW SECTION.  514I.3  IOWA HEALTHY KIDS PROGRAM
OBJECTIVES.
The division shall develop a program to attain all of the
following objectives:
1.  Organize groupings of children for provision of
comprehensive health benefits or insurance coverage.
2.  Arrange for the collection of any payment or premium, in an
amount to be determined by the division.  The payment or premium
shall be collected from a family of a participating child or
other person to provide for payment for health care services or
premiums for comprehensive health benefits or insurance coverage
and for the actual or estimated administrative expenses incurred
during the period for which the payments are made.  The amount
of payment or premium charged shall be based on the ability of
the family of a child to pay.  The division shall provide for
adjustment of the amount charged to reflect contributions,
public subsidy, or other means used to defray the amount charged.
3.  Establish administrative and accounting procedures for the
operation of the program.
4.  Establish, in consultation with appropriate professional
organizations, standards for health care services, providers,
and comprehensive health benefits or insurance coverage
appropriate for children and their family members.
5.  Establish eligibility criteria which children and their
family members must meet in order to participate in the program.
6.  Establish participation criteria for the program and, if
appropriate, contract with an authorized insurer, health
maintenance organization, or insurance or benefits administrator
to provide administrative services to the program.
7.  Contract with authorized insurers, benefits providers, or
any provider of health care services meeting standards
established by the division, for the provision of comprehensive
health benefits or insurance coverage and health care services
to participants.
8.  Develop and implement a plan to publicize the program,
eligibility requirements of the program, and procedures for
enrollment in the program and to maintain public awareness of
the program.
9.  Provide for administration of the program.
10.  As appropriate, enter into contracts with local school
boards or other agencies to provide on-site information,
enrollment, and other services necessary to the operation of the
program.
11.  Provide an interim report on or before March 1, 1997, to
the governor and general assembly, on the development of the
program to date and an annual report thereafter until the
program is terminated or extended statewide.
Sec. 44.  NEW SECTION.  514I.4  ADVISORY COUNCIL.
1.  The division may create an advisory council to assist the
division in implementing the program.  The advisory council
membership may include, but is not limited to, the following:
a.  A school administrator.
b.  A member of a school board.
c.  An employee of the state or local government in public
health services.
d.  A pediatrician who is a member of the American academy of
pediatrics, Iowa chapter.
e.  The director of human services or the director's designee.
f.  A member of the association of Iowa hospitals and health
systems.
g.  A representative of authorized health care insurers or
health maintenance organizations.
h.  A representative of a university center for health issues.
i.  A family practice physician who is a member of the Iowa
academy of family physicians.
j.  A school nurse who is a member of the Iowa nurses
association.
k.  The director of public health or the director's designee.
l.  A citizen who is knowledgeable concerning health care and
children's issues.
m.  A citizen who is a parent with children at home who is
active in a school-parent organization.
2.  Advisory council members are entitled to receive, from funds
of the division, reimbursement for actual and necessary expenses
incurred in the performance of their official duties.
Sec. 45.  NEW SECTION.  514I.5  LICENSING NOT REQUIRED -
FISCAL OPERATION.
1.  Health benefits or insurance coverage obtained under the
program is secondary to any other available private or public
health benefits or insurance coverage held by the participant
child.  The division may establish procedures for coordinating
benefits under this program with benefits under other public and
private coverage.
2.  The program shall not be deemed to be insurance. However,
the insurance division may require that any marketing
representative utilized and compensated by the program be
appointed as a representative of the insurers or health benefits
services providers with which the program contracts.
Sec. 46.  NEW SECTION.  514I.6  THE IOWA HEALTHY KIDS TRUST
FUND.
1.  An Iowa healthy kids trust fund is created in the state
treasury under the authority of the commissioner of insurance,
to which all appropriations shall be deposited and used to carry
out the purposes of this chapter.  Other revenues of the program
such as grants, contributions, matching funds, and participant
payments shall not be considered revenue of the state, but
rather shall be funds of the program.  However, the division may
designate portions of grants, contributions, matching funds, and
participant payments as funds of the state and deposit those
funds in the trust fund.
2.  The trust fund shall be separate from the general fund of
the state and shall not be considered part of the general fund
of the state.  The moneys in the trust fund are not subject to
section 8.33 and shall not be transferred, used, obligated,
appropriated, or otherwise encumbered except as provided in this
section.  Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys deposited in the trust fund shall be
credited to the trust fund.
Sec. 47.  NEW SECTION.  514I.7  ACCESS TO RECORDS -
CONFIDENTIALITY - PENALTIES.
1.  Notwithstanding any other law to the contrary, the program
shall have access to the medical records of a child who is
participating or applying to participate in the program upon
receipt of permission from a parent or guardian of the child,
including but not limited to the medical records maintained by
the state or a political subdivision of the state.
Notwithstanding chapter 22, any identifying information,
including medical records and family financial information,
obtained by the program pursuant to this subsection is
confidential.  Except as provided in section 252B.9, chapter
252E, or any federal law or regulation to the contrary, the
program, the program's employees, and agents of the program
shall not release, without the written consent of the
participant or the parent or guardian of the participant, to any
state or federal agency, to any private business or person, or
to any other entity, any confidential information received
pursuant to this subsection.
2.  A violation of the provisions of subsection 1 is a serious
misdemeanor.
Sec. 48.  FEDERAL WAIVERS.
1.  The department of human services shall submit a waiver
request or requests to the United States department of health
and human services as necessary to implement the changes in the
family investment program and host home provisions under section
239.23 as enacted by this Act.  In addition, the department may
submit additional waiver requests to the United States
department of health and human services to make changes to the
medical assistance program under chapter 249A, as necessary to
revise the program in accordance with any waiver provision
implemented pursuant to section 239.23.
2.  The waiver request or requests submitted by the department
of human services to the United States department of health and
human services shall be to apply the provisions of section
239.23 statewide.  If federal waiver approval of the provisions
is granted, the department of human services shall implement the
provisions in accordance with the federal approval.  If an
approved waiver is in
 conflict with a provision of state law, the waiver provision
shall apply and the department shall propose an amendment to
resolve the conflict.  The proposed amendment shall be submitted
in accordance with the provisions of section 2.16 to the
Seventyseventh General Assembly.
3.  The department of human services shall adopt administrative
rules pursuant to chapter 17A to implement the provisions of an
approved waiver.  If necessary to conform with federal waiver
terms and conditions or to efficiently administer the
provisions, the rules may apply additional policies and
procedures which are consistent with the provisions of the
approved waiver.
4.  The effective date of a waiver requested under this section
which is granted by the federal government shall be established
by rule but shall not be earlier than July 1, 1997. If federal
law is enacted to permit the state to implement a provision of
section 239.23 without a federal waiver, the department shall
proceed to implement the provisions within the timeframe
specified in this subsection.
Sec. 49.  EMERGENCY RULES.  If specifically authorized by a
provision of this Act, the department of human services or the
mental health and mental retardation commission may adopt
administrative rules under section 17A.4, subsection 2, and
section 17A.5, subsection 2, paragraph "b", to implement the
provisions and the rules shall become effective immediately upon
filing, unless the effective date is delayed by the
administrative rules review committee, notwithstanding section
17A.4, subsection 5, and section 17A.8, subsection 9, or a later
effective date is specified in the rules.  Any rules adopted in
accordance with this section shall not take effect before the
rules are reviewed by the administrative rules review committee.
 Any rules adopted in accordance with the provisions of this
section shall also be published as notice of intended action as
provided in section 17A.4.
Sec. 50.  EFFECTIVE DATE.  The following provisions of this Act,
being deemed of immediate importance, take effect upon enactment:
1.  Section 4, subsection 2, relating to the mental health
managed care program.
2.  Section 6, subsection 13, relating to moneys appropriated in
1996 Iowa Acts, House File 2114.
3.  Section 10, subsection 18, relating to expenditure of
federal funds for child and family services.
4.  Section 27, relating to appropriations reductions." 

ON THE PART OF THE HOUSE	ON THE PART OF THE SENATE

HUBERT HOUSER, Chair	JOHNIE HAMMOND, Chair
RICHARD ARNOLD	PATRICK J. DELUHERY
DANNY CARROLL	ELAINE SZYMONIAK
ED FALLON 	NANCY BOETTGER
PAM JOCHUM	MAGGIE TINSMAN
The motion prevailed and the report was adopted.
Houser of Pottawattamie 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. 2442)
The ayes were, 87:

Arnold         	Baker          	Bell           	Bernau        
	Blodgett  	Boggess        	Bradley        	Brammer       
	Brand          	Branstad       	Brauns         	Burnett       
		Carroll        	Cataldo        	Churchill      	Cohoon        
		Connors        	Corbett, Spkr.        	Cormack        	Daggett
       		Disney         	Doderer        	Drake          	Drees  
       		Ertl           	Fallon         	Garman         	Gipp   
       		Greig          	Greiner        	Gries          	Grubbs 
       	Grundberg      	Hahn           	Halvorson      	Hammitt
Barry 	Hanson         	Harper         	Harrison       	Heaton   
     	Houser         	Hurley         	Huseman        	Jacobs    
    		Jochum         	Klemme         	Koenigs        	Kremer    
    		Lamberti       	Larkin         	Larson         	Lord      
    		Main           	Martin         	Mascher        	May       
    	McCoy          	Metcalf  	Millage        	Mundie        
		Murphy         	Nelson, B.      	Nelson, L.       	Nutt       
   	O'Brien        	Ollie          	Osterhaus      	Renken      
  	Schrader       	Schulte        	Shoultz        	Siegrist     
 	Sukup          	Taylor         	Teig           	Thomson       
	Tyrrell        	Van Fossen         	Vande Hoef     	Veenstra   
   	Warnstadt      	Weidman        	Weigel         	Welter      
  		Wise           	Witt           	Van Maanen, 
 		 Presiding
The nays were, 5:

Brunkhorst     	Coon           	Kreiman        	Meyer         
		Moreland       	
Absent or not voting, 8:

Boddicker      	Dinkla         	Eddie          	Holveck       
		Mertz          	Myers          	Rants          	Salton        

The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 2442 be immediately messaged to the Senate.

SENATE MESSAGE CONSIDERED
Senate File 2470, by committee on appropriations, a bill for
an act relating to state expenditure and regulatory matters by
making standing and other appropriations, and providing
technical provisions, stud
ies of runaway youth, physician utilization, and retirement
system issues, and providing a penalty and effective dates.
Read first time and referred to committee on appropriations.
The House stood at ease at 7:53 p.m., until the fall of the
gavel.
The House resumed session at 8:26 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
MESSAGE FROM THE SENATE
The following message was received from the Senate:
Mr. Speaker: I am directed to inform your honorable body that
the Senate has on April 30, 1996, adopted the conference
committee report and passed House File 2458, a bill for an act
relating to the right to appointed counsel or a public defender,
by relating to the eligibility for certain indigents, the
recovery of defense costs, and by restricting the right to
counsel for certain parents in child in need of assistance cases.
JOHN F. DWYER, Secretary

ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(House File 2421)
Millage of Scott called up for consideration the report of the
conference committee on House File 2421 and the amendments
contained therein as follows:

REPORT OF THE CONFERENCE COMMITTEE ON
HOUSE FILE 2421
To the Speaker of the House of Representatives and the President
of the Senate:
We, the undersigned members of the conference committee
appointed to resolve the differences between the House of
Representatives and the Senate on House File 2421, a bill for An
Act relating to and making appropriations to the state
department of transportation including allocation and use of
moneys from the general fund, road use tax fund, and primary
road fund, making appropriations for capital projects from the
rebuild Iowa infrastructure fund, and relating to the Iowa
communications network, construction projects for the commission
of veterans affairs, county fairs, recreational trails, and
nonreversion of certain appropriations, and providing an
effective date, respectfully make the following report:
1.  That the Senate recedes from its amendment, H-5960.
2.  That House File 2421, as amended, passed, and reprinted by
the House, is amended as follows:
1.  Page 2, by inserting after line 20 the following:
"8.  For automating the oversize vehicle permitting system
authorized under chapter 321E in order to improve communication
between carriers and the department regarding changing road
conditions, including construction zones:  
	 $	    125,000
9.  For joining the I-35 corridor coalition:  
	 $	    150,000
This appropriation is contingent upon appointment of the
membership of the Iowa delegation in accordance with the
following:
a.  Four shall be legislative members of the general assembly. 
One member shall be appointed by the speaker of the house of
representatives, one member shall be appointed by the minority
leader of the house of representatives, one member shall be
appointed by the majority leader of the senate, and one member
shall be appointed by the minority leader of the senate.
b.  Two shall be appointed by the governor."
2.  Page 3, by inserting after line 14 the following:
"g.  For construction, reconstruction, and maintenance of the
state highway system as appropriated for in chapter 313:  
	 $	300,000,000
It is the intent of the general assembly, that if additional
moneys become available to the primary road fund, the state
transportation commission may expend the funds pursuant to
section 313.4."
3.  Page 4, by striking lines 15 and 16 and inserting the
following:
"b.  For field garage facilities in Anamosa and Southeast Des
Moines:  
	 $	  1,500,000"
4.  Page 4, by striking line 30 and inserting the following: 
"the highway construction program and highway".
5.  Page 5, line 2, by inserting after the figure "1996." the
following:  "The department shall include input from department
employees who are members of a statewide employee organization
on the effects of implementation of these recommendations on
job-related activities and employee displacement."
6.  Page 5, by inserting after line 2 the following:
"Sec. ___.  DIRECTIVES TO STATE DEPARTMENT OF TRANSPORTATION.
1.  The state department of transportation shall establish a
maintenance standard, equivalent to the department's "c"
classification for maintenance, on state highways located
between population centers of ten thousand or more persons.
2.  The state department of transportation shall consider the
location of the Iowa communication network's underground
facilities and other telecommunication underground facilities
when engineering road construction and repair projects and,
where possible, shall engineer projects to minimize relocation
of Iowa communications network underground facilities and other
telecommunication underground facilities.
3.  The state department of transportation shall take
affirmative action to resolve the safety issues associated with
access on highway 218, located between Ainsworth and Riverside,
by students to schools located in the Highland community school
district."
7.  Page 7, by inserting after line 14, the following:
"5.  The state board of regents may use any available resources
for planning the renovation of Lang hall at the university of
northern Iowa."
8.  Page 7, line 19, by striking the word "amount" and inserting
the following:  "amounts".
9.  Page 7, line 20, by striking the word "purpose" and
inserting the following:  "purposes".
10.  Page 7, line 21, by inserting before the word "For" the
following:  "1."
11.  Page 7, by inserting after line 23 the following:
"2.  For annual payment relating to the financial arrangement
for the construction of expansion in prison capacity as provided
in 1990 Iowa Acts, chapter 1257, section 24:  
	 $	  3,179,500
DEPARTMENT OF CULTURAL AFFAIRS
Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of cultural
affairs for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be allocated to an Iowa project that has received
a national endowment for the humanities award for a museum and
discovery center:  
	 $	    500,000
Allocation of moneys pursuant to this section shall be
contingent upon a two-to-one matching contribution of private
moneys.
It is the intent of the general assembly that an additional
$500,000 shall be appropriated from the rebuild Iowa
infrastructure fund for the fiscal year beginning July 1, 1997,
for completion of the project in this section.
Notwithstanding section 8.33, unencumbered or unobligated moneys
remaining on June 30, 1997, from the funds appropriated in this
section shall revert to the rebuild Iowa infrastructure fund on
August 31, 1997.  
DEPARTMENT OF EDUCATION
Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of education
for the fiscal year beginning July 1, 1996, and ending June 30,
1997, the following amounts, or so much thereof as is necessary,
to be used for the purposes designated:
1.  For southwestern community college for construction of a
rural heritage center:  
	 $	    500,000
Funding for the rural heritage center shall be contingent upon
receipt of matching contributions from any other source. The
matching contributions may be in the form of real property to
house the center and shall be valued at the property's fair
market value.  It is the intent of the general assembly that an
additional $500,000 shall be appropriated for the fiscal year
beginning July 1, 1997.
2.  For improvement and maintenance of institutional roads on
community college campuses:
	 $	    600,000
Notwithstanding section 8.33, unencumbered or unobligated moneys
remaining on June 30, 1997, from the funds appropriated in this
section shall revert to the rebuild Iowa infrastructure fund on
August 31, 1997."
12.  By striking page 7, line 25, through page 8, line 23, and
inserting the following:
"Sec. 50.  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of general
services for the fiscal year beginning July 1, 1995, and ending
June 30, 1996, the following amount, or so much thereof as is
necessary, to be used for the following purpose:
To provide for the renovation and repair of the soldiers and
sailors monument of the civil war and the Allison monument
located on the state capitol complex:  
	 $	    200,000
Of the appropriation in this section, $50,000 shall be used for
renovation and repair of the Allison monument located on the
state capitol complex.  An effort shall be made by the
department of education to match this appropriation from the
citizens and the school children of Iowa as occurred when the
monument was initially built.  
Notwithstanding section 8.33, unencumbered or unobligated moneys
remaining on June 30, 1998, from the funds appropriated in this
section shall revert to the rebuild Iowa infrastructure fund on
August 31, 1998.
Sec. 51.  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of general
services for the fiscal year beginning July 1, 1995, and ending
June 30, 1996, the following amount, or so much thereof as is
necessary, to be used for the following purpose:
To provide for the planning, siting, and construction of a world
war II veterans memorial:  
	 $	    200,000
1.  The moneys appropriated in this section may be used to match
nonstate funds for the planning, siting, and construction of the
memorial.  The state match shall be $2 of state money for each
$3 of nonstate money.
2.  Notwithstanding section 8.33, unencumbered or unobligated
moneys remaining on June 30, 1998, from the funds appropriated
in this section shall revert to the rebuild Iowa infrastructure
fund on August 31, 1998.
Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of general
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amounts, or so much thereof as is
necessary, to be used for the purposes designated:
1.  For major maintenance needs including health, life, and fire
safety and for compliance with the federal Americans with
Disabilities Act for state-owned buildings and facilities:  
	 $	  6,500,000
2.  For critical and deferred maintenance at Terrace Hill:  
	 $	    150,000
As a condition of receiving this appropriation, private matching
funds must be contributed on a dollar-for-dollar basis.
Notwithstanding section 8.33, unencumbered or unobligated funds
remaining on June 30, 2001, from the funds appropriated in this
section shall revert to the rebuild Iowa infrastructure fund of
the state on August 31, 2001.
Sec.    .
1.  There is appropriated from the rebuild Iowa infrastructure
fund of the state to the department of general services for the
fiscal period beginning July 1, 1996, and ending June 30, 1999,
the following amounts, or so much thereof as is necessary, to be
used for the projects in the amounts and for the fiscal years as
designated in subsection 2:  
a.  For the fiscal year beginning July 1, 1996, and
ending June 30, 1997:
	 $	 20,700,000
b.  For the fiscal year beginning July 1, 1997, and ending June
30, 1998:  
	 $	 14,600,000
c.  For the fiscal year beginning July 1, 1998, and ending June
30, 1999:  
	 $	  3,900,000
2.  a.  For exterior state capitol building restoration:
(1)  For the fiscal year beginning July 1, 1996, and ending June
30, 1997:  
	 $	  9,300,000
(2)  For the fiscal year beginning July 1, 1997, and ending June
30, 1998:  
	 $	  7,600,000
b.  For interior state capitol building restoration:
(1)  For the fiscal year beginning July 1, 1996, and ending June
30, 1997:  
	 $	  2,800,000
(2)  For the fiscal year beginning July 1, 1998, and ending June
30, 1999:  
	 $	  2,300,000
c.  For renovation of the old historical building:
(1)  For the fiscal year beginning July 1, 1996, and ending June
30, 1997:  
	 $	  5,400,000
(2)  For the fiscal year beginning July 1, 1997, and ending June
30, 1998:  
	 $	  4,100,000
(3)  For the fiscal year beginning July 1, 1998, and ending June
30, 1999:  
	 $	  1,600,000
d.  For renovation of the Lucas tunnel:
(1)  For the fiscal year beginning July 1, 1996, and ending June
30, 1997:  
	 $	    100,000
(2)  For the fiscal year beginning July 1, 1997, and ending June
30, 1998:  
	 $	    400,000
e.  For renovation of the Lucas state office building:
(1)  For the fiscal year beginning July 1, 1996, and ending June
30, 1997:  
	 $	    3,100,000
(2)  For the fiscal year beginning July 1, 1997, and ending June
30, 1998:  
	 $	  2,500,000
It is the intent of the general assembly that the first and
second floors of the Lucas state office building shall be used
primarily by the general assembly and other legislative
agencies.  
Notwithstanding section 8.33, unencumbered or unobligated funds
remaining on June 30, 2001, from the funds appropriated in this
section shall revert to the rebuild Iowa infrastructure fund of
the state on August 31, 2001.  
DEPARTMENT OF HUMAN SERVICES
Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of human
services for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amounts, or so much thereof as is
necessary, to be used for the purposes designated:
1.  For training, maintenance, and upgrades of computer
software:  
	 $	    818,000
2.  For the development costs of the "X-PERT" knowledgebased
computer software package for public assistance benefit
eligibility determination, including salaries, support,
maintenance, and miscellaneous purposes:  
	 $	    790,000
Moneys appropriated in this section shall be considered
encumbered for the purposes of section 8.33."
13.  Page 9, by inserting after line 3 the following:
"Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the department of natural
resources for the fiscal year beginning July 1, 1996, and ending
June 30, 1997, the following amount, or so much thereof as is
necessary, to be used for the following purpose:
For the rehabilitation, preservation, and continued use of state
park facilities, including low-head dams and historic buildings,
appurtenant structures, and utilities built by the civilian
conservation corps (CCC) or the works progress administration
(WPA):  
	 $	  3,000,000
All rehabilitation and preservation of CCC or WPA buildings
funded by this appropriation shall conform to the United States
secretary of the interior's standards for rehabilitation and
guidelines for rehabilitating historic buildings.  Where
feasible, the department shall encourage the use of youth
employment for rehabilitation and preservation efforts provided
for in this section.
Notwithstanding section 8.33, unencumbered or unobligated moneys
remaining on June 30, 1999, from the funds appropriated in this
section, shall revert to the rebuild Iowa infrastructure fund on
August 31, 1999."
14.  Page 9, line 21, by striking the word "amount" and
inserting the following:  "amounts".
15.  Page 9, line 22, by striking the word "purpose" and
inserting the following:  "purposes".
16.  Page 9, line 23, by inserting before the word "To" the
following:  "1."
17.  Page 9, by inserting after line 30 the following:
"2.  For costs associated with the maintenance of the automated
fingerprint information system (AFIS):  
	 $	    222,155"
18.  Page 10, line 20, by striking the figure "1997" and
inserting the following:  "1998".
19.  Page 10, line 22, by striking the figure "1997" and
inserting the following:  "1998".
20.  Page 10, by inserting after line 22 the following:
"Sec.    .  It is the intent of the general assembly that
$1,400,000 shall be appropriated from the rebuild Iowa
infrastructure fund to the commission of veterans affairs for
fiscal year 1997-1998 for additional funding for food
preparation and dining room expansion.  However, the additional
funding shall be contingent upon receiving notification from the
United States department of veterans affairs that federal funds
have also been appropriated to the commission for that
expansion."
21.  By striking page 10, line 23 through page 11, line 24.
22.  By striking page 11, line 32, through page 12, line 2, and
inserting the following:
"For renovation and restoration of the grandstand, the cattle
barn, the horse barn, the swine barn, and for improvements to
sewer, water, and electrical systems located on the state
fairgrounds:  
	 $	  5,000,000"
23.  Page 12, by inserting after line 18 the following:
"Sec.    .  Section 8.22A, subsection 5, unnumbered
paragraph 2, Code Supplement 1995, is amended to read as follows:
a.  The amount of lottery revenues for the following fiscal
year to be available for disbursement following the deductions
made pursuant to section 99E.10, subsection 1.
b.  The amount of revenue for the following fiscal year from
gambling revenues and from interest earned on the cash reserve
fund and the economic emer

gency fund to be deposited in the rebuild Iowa infrastructure
fund under section 8.57, subsection 5, paragraph "e".
Sec. 300.  Section 8.57, subsection 5, paragraph c, Code
Supplement 1995, is amended to read as follows:
c.  Moneys in the fund in a fiscal year shall be used as
directed by the general assembly for public
infrastructurerelated expenditures vertical infrastructure
projects.  For the purposes of this subsection, "vertical
infrastructure" includes only land acquisition and construction,
major renovation and major repair of buildings, all appurtenant
structures, utilities, site development, and recreational
trails. "Vertical infrastructure" does not include routine,
recurring maintenance or operational expenses or leasing of a
building, appurtenant structure, or utility without a
lease-purchase agreement.  However, appropriations may be made
for the fiscal years beginning July 1, 1997, and July 1, 1998,
for the purpose of funding the completion of Part III of the
Iowa communications network.
Sec. 400.  Section 8.57, subsection 5, Code Supplement 1995, is
amended by adding the following new paragraph:
NEW PARAGRAPH.  e.  Notwithstanding provisions to the
contrary in sections 99D.17 and 99F.11, for the fiscal years
beginning July 1, 1995, and July 1, 1996, not more than a total
of sixty million dollars; for the fiscal year beginning July 1,
1997, not more than fifty million dollars; for the fiscal year
beginning July 1, 1998, not more than forty million dollars; and
for the fiscal year beginning July 1, 1999, and for each fiscal
year thereafter, not more than thirty-two million, five hundred
thousand dollars; shall be deposited in the general fund of the
state in any fiscal year pursuant to sections 99D.17 and 99F.11.
 The total moneys in excess of the moneys deposited in the
general fund in a fiscal year shall be deposited in the
infrastructure fund and shall be used as provided in this
section, notwithstanding section 8.60."
24.  Page 12, by inserting after line 30 the following:
"Sec.    .  NEW SECTION.  18A.12  STATE CAPITOL VIEW
PRESERVATION.
The department of general services shall develop a state capitol
view preservation plan.  The purpose of the plan shall be to
ensure that the most scenic views of the state capitol remain
unobstructed by the erection of structures, including but not
limited to buildings, towers, and monuments.
The plan shall include proposals for height and setback
limitations of structures erected within the state capitol view,
and shall include appropriate drawings, schematics, and aerial
photographs necessary to establish the plan with sufficient
clarity and definition.
The department shall negotiate implementation of the plan with
the city of Des Moines with the goal of entering into a
memorandum of understanding in relation to the plan.  The
department shall provide the governor and the capitol planning
commission with quarterly reports regarding progress made on the
capitol view preservation plan and execution of the memorandum
of understanding."
25.  Page 16, by inserting after line 27 the following:
"Sec.    .  Section 307.10, subsection 1, Code 1995, is
amended by striking the subsection and inserting in lieu thereof
the following:
1.  a.  Develop and coordinate an updated comprehensive
transportation policy
 for the state by January 15, 1997.  The policy shall be
submitted to the general assembly for approval, modification, or
rejection.  Future revisions to the policy shall be submitted to
the general assembly for its approval.
b.  A comprehensive transportation plan which is based upon the
updated comprehensive transportation policy shall be submitted
to the governor and the general assembly annually on January 15."
26.  Page 16, by inserting after line 29 the following:
"Sec.    .  Section 465B.4, subsection 1, Code 1995, is
amended to read as follows:
1.  Funds appropriated by the general assembly.  There shall
be appropriated from the rebuild Iowa infrastructure fund of the
state to the state department of transportation, beginning July
1, 1996, and each fiscal year thereafter, one million dollars to
be used for the purposes of this chapter.
Sec. 500.  Section 602.8108, subsection 2, Code 1995, is amended
to read as follows:
2.  Except as otherwise provided, the clerk of the district
court shall report and submit to the state court administrator,
not later than the fifteenth day of each month, the fines and
fees received during the preceding calendar month.  Except as
provided in subsection subsections 4 and 5, the
state court administrator shall deposit the amounts received
with the treasurer of state for deposit in the general fund of
the state.  The state court administrator shall report to the
legislative fiscal bureau within thirty days of the beginning of
each fiscal quarter the amount received during the previous
quarter in the account established under this section.
Sec. 501.  Section 602.8108, Code 1995, is amended by adding the
following new subsection:
NEW SUBSECTION.  5.  The state court administrator shall
allocate all of the fines and fees attributable to commercial
vehicle violation citations issued by motor vehicle division
personnel of the state department of transportation to the
treasurer of state for deposit in the road use tax fund.
However, the fines and fees to be deposited under this
subsection, shall not be deposited in the road use tax fund
unless and until the deposit to the Iowa prison infrastructure
fund provided for in section 602.8108A has been made."
27.  Page 17, by striking lines 14 through 24 and inserting the
following:
"Sec.    .  STATE GENERAL FUND BUDGET INCLUSIONS.  For the
fiscal year beginning July 1, 1997, and each fiscal year
thereafter, the department of personnel, the auditor of state,
the attorney general's office, the department of inspections and
appeals, the department of management, and the department of
revenue and finance shall request appropriations from the
general fund of the state that are currently appropriated or
reimbursed from the road use tax fund, primary road fund, motor
vehicle use tax receipts, or from motor fuel taxes.
Sec.    .  SOYDIESEL DEMONSTRATION PROJECTS.
1.  The state department of transportation shall conduct a
soydiesel demonstration project by operating diesel-fueled
vehicles with soydiesel fuel for a period of one year.  For
purposes of this section, "soydiesel fuel" means a mixture of
diesel fuel and processed soybean oil, if at least 5 percent of
the mixed fuel by volume is processed soybean oil. The
department shall evaluate the performance of the vehicles,
including the rate of repairs and comments from persons
operating and
 maintaining the vehicles.
2.  The department shall report the findings of the
demonstration project and any recommendations to the general
assembly, to the chairpersons and ranking members of the senate
and house of representatives standing committees on agriculture
and to the renewable fuels and coproducts advisory committee, by
October 1, 1997.
3.  Prior to the allocation under section 423.24, subsection 1,
paragraph "b", one hundred thousand dollars shall be allocated
to the state department of transportation for purposes of the
demonstration project under this section. Notwithstanding
section 8.33, funds allocated under this section shall remain
available for expenditure until June 30, 1998.  Unobligated or
unencumbered funds remaining on June 30, 1998, shall be credited
to the value-added agricultural products and processes financial
assistance fund under section 15E.112.
Sec. 200.  SOYDIESEL - NONREVERSION.  Notwithstanding 1994 Iowa
Acts, chapter 1119, section 32, subsection 2, paragraph "d", as
amended by 1995 Iowa Acts, chapter 216, section 34, moneys
remaining unexpended or unobligated on June 30, 1996, shall not
be credited to the value-added agricultural products and
processes financial assistance fund, but shall be allocated to
the state department of transportation for the purposes of
continuing the soydiesel demonstration project as provided for
in this Act.
Sec.    .  VERTICAL INFRASTRUCTURE DEFINITION TASK FORCE.
The department of general services shall coordinate a vertical
infrastructure definition task force for the purpose of
reviewing and providing recommendations to further refine the
definition of vertical infrastructure as it is contained in
section 8.57, subsection 5, paragraph "c".  The task force shall
consist of the following members:
1.  The director of the department of general services or the
director's designee, who shall be the chairperson of the task
force.
2.  A member who is a consulting engineer, appointed by the
governor.
3.  A representative from the association of business and
industry.
4.  A representative from the master builders.
5.  A representative from the Iowa chapter, national electrical
association.
6.  A representative from Iowa state university.
7.  Two members from the general assembly, who shall be the
chairpersons of the joint appropriations subcommittee on
transportation, infrastructure, and capitals or the
chairpersons' designees.
The task force shall make recommendations to the general
assembly for proposed changes to the definition of vertical
infrastructure by December 15, 1997.
Sec.    .  INFRASTRUCTURE STUDY.  The legislative council is
requested to study the issue of creating a board to evaluate and
prioritize expenditure of moneys from the rebuild Iowa
infrastructure fund and to study the issue of establishing a
financing mechanism to provide local governments with assistance
to finance infrastructure improvements and to provide a
dedicated funding stream to be allocated to the rebuild Iowa
infrastructure fund.  The purpose of the study is to provide
recommendations regarding members of the board and a process for
determining expenditures and to recommend a financing mechanism
and a dedicated
 funding source to provide infrastructure assistance to local
governments.  Consideration shall be given to providing for the
participation of the department of general services, the
department of management, and the Iowa state university of
science and technology's department of construction engineering
in the study.  Results of the study shall be provided to the
legislative council by January 31, 1997.
Sec.    .  LOCAL INFRASTRUCTURE, BONDING AND STATE FINANCIAL
ASSISTANCE NEEDS INTERIM STUDY.  The legislative council is
requested to establish an interim committee to study the issue
of local infrastructure and associated bonding and state
financial assistance needs.  The committee shall assess the
state of local infrastructure and the resources which local
governments have available to assist in providing for long-term
infrastructure needs including a study of the approval
requirements for local bond referendums.
Sec.    .  STATE GOVERNMENT - SPACE ALLOCATION STUDY.  The
department of general services, in consultation with the
department of management, and the legislative council shall
study and make an assessment of the space allocation needs for
all state agencies and entities in all areas of state
government.  The study shall make a determination of the
feasibility of eliminating or reducing leased office space and
of relocating various areas of state government outside of the
Des Moines metropolitan area.  The goal of this relocation
effort shall be to provide at least fifty percent of the
projected off-complex space needs in areas located outside of
the Des Moines metropolitan area.  The relocation shall only be
considered in areas that would provide connections with the Iowa
communications network.  The fifty-percent relocation
calculation shall not include the state department of
transportation complex located in Ames.
Sec.    .  REBUILD IOWA INFRASTRUCTURE FUND - CONTINGENCY
APPROPRIATION.  If the rebuild Iowa infrastructure fund does not
receive an appropriation from the operation of section 8.57,
subsection 5, paragraph "e", in an amount equivalent to at least
$48,400,000, for the fiscal year beginning July 1, 1996, and
ending June 30, 1997, moneys in an amount equivalent to the
difference shall be appropriated from the moneys transferred to
the general fund of the state pursuant to section 8.55,
subsection 2, for the fiscal year beginning July 1, 1996.
Sec.    .  LEGISLATIVE FISCAL BUREAU ESTIMATES.  The
legislative fiscal bureau shall provide yearly estimates of the
annual operating costs for operation of proposed buildings to be
constructed from funds provided from the rebuild Iowa
infrastructure fund.  The estimates shall be presented to the
legislative fiscal committee and to the joint appropriations
subcommittee on transportation, infrastructure, and capitals.
Sec.    .  ACCESS IOWA HIGHWAYS - INTENT - REPORT.
1.  INTENT.  It is the intent of the general assembly to
formulate an access Iowa plan which shall designate portions of
the commercial and industrial network of highways as access Iowa
highways.  The goal of the access Iowa plan shall be to enhance
the existing Iowa economy and ensure its continuing development
and growth in the national and global competitive marketplace by
providing for early completion of the construction of the most
important portions of the Iowa highway system.  These portions
of the system shall be those that are essential for support of
intrastate transportation and commerce and essential for
ensuring Iowans direct access to the nation's system of
interstate highways and transportation services.
The general assembly's past actions are consistent with the
access Iowa plan.  The general assembly has set general policy
guidelines for the state transportation commission's planning
and programming development, directed that road service
 be equalized throughout the state, determined that a commercial
and industrial network of highways would benefit Iowa
transportation services, directed the commission to focus at
least part of their legislatively provided resources on the
commercial and industrial network, and directed that the
commission consider equalization of accessibility for economic
development as one of the factors in establishing its plan and
program priorities for the commercial and industrial network.
These actions recognize that interstate commerce and national
economic development are furthered and supported by the national
system of interstate and defense highways and the national
highway system, and that Iowa commerce and economic development
are supported by Iowa's commercial and industrial network of
highways.
2.  ACCESS IOWA HIGHWAY DESIGNATION.  The state department of
transportation shall designate portions of the commercial and
industrial network of highways as access Iowa highways and shall
expedite and accelerate development of access Iowa highways. 
When designating those portions of the commercial and industrial
network as access Iowa highways, the department shall consider
the direct and priority linkages between economic centers within
the state with populations of 20,000 or more and the enhancement
of intrastate mobility and Iowa regional accessibility and
national accessibility.
3.  REPORT.  The state department of transportation shall
provide a report to the general assembly by January 15, 1997,
designating which portions of the commercial and industrial
network of highways the department determines to be access Iowa
highways.  The department shall list the highway improvements
necessary to provide modern and safe four-lane highway service
on access Iowa highways.  The report shall include program
changes and options needed to enable the early, rapid,
expedited, and accelerated completion of the development of
access Iowa highways, including funding and other support
necessary to ensure the early completion of the construction of
the access Iowa highways.  
DIVISION IV
PHYSICAL INFRASTRUCTURE ASSISTANCE PROGRAM
Sec.    .  NEW SECTION.  15E.175  PHYSICAL
INFRASTRUCTURE ASSISTANCE PROGRAM.
1.  The Iowa department of economic development shall establish
a physical infrastructure financial assistance program to
provide financial assistance for business or community physical
infrastructure development or redevelopment projects.  Physical
infrastructure projects that create the necessary infrastructure
for economic success throughout Iowa, that provide the
opportunity for the creation of quality, highwage jobs, and that
involve substantial capital investment may be eligible for
financial assistance under the program provided, however, that
the project could not be assisted through or eligible for
financial assistance from other existing private, local, or
state funds or programs.  Physical infrastructure development or
redevelopment projects include, but are not limited to, projects
involving any mode of transportation infrastructure, public
works and utilities such as sewer, water, power or
telecommunications, physical improvements which mitigate,
prevent or eliminate environmental contaminants, and any other
project deemed appropriate by the department.
2.  A physical infrastructure assistance fund is created within
the state treasury under the control of the Iowa department of
economic development.
a.  The fund shall include any moneys appropriated to the fund
by the general assembly, payments of interest earned, recaptures
of awards, repayments of moneys loaned or expended from the
physical infrastructure assistance program, and any other moneys
designated by the department for placement in the fund.
b.  The fund shall be used for the following:
(1)  To provide reimbursement to the department of natural
resources for activities related to physical infrastructure
assistance projects under this section.
(2)  To provide financial assistance for qualifying projects.
(3)  To provide funding for any other purpose consistent with
this section and deemed appropriate by the department.
c.  Section 8.33 shall not apply to the physical infrastructure
assistance fund.  Notwithstanding section 12C.7, interest earned
on moneys in the fund shall be credited to the fund.
3.  The department shall establish procedures and guidelines for
the physical infrastructure assistance program and shall proceed
in accordance with the following:
a.  Consult with and coordinate with the state department of
transportation, the department of natural resources, and any
other appropriate state agency which is responsible for the
development or redevelopment of physical infrastructure in this
state to ensure that activities conducted pursuant to this
section are consistent with the policies and plans of other
state agencies and are coordinated with other physical
infrastructure projects.
b.  Provide financial assistance in the form of a loan,
forgivable loan, loan guarantee, cost-share, indemnification of
costs, or any combination of financial assistance deemed by the
department to be most efficient in facilitating the physical
infrastructure project.
c.  Enter into contracts and to sue and be sued.  However, the
department shall not in any manner directly or indirectly pledge
the credit of the state of Iowa.
d.  Authorize payment of costs, commissions, attorney fees,
consultant fees, and other reasonable expenses from the fund.
Expenses may include costs relating to carrying out the duties
necessary for insuring or guaranteeing loans, co-sharing or
indemnifying costs under the physical infrastructure financial
assistance program, and for the recovery of loans insured or
guaranteed, costs co-shared or indemnified, or the management of
property acquired in connection with such loans or costs.
e.  Adopt administrative rules necessary to carry out the
provisions of this section.
Sec.    .  NEW SECTION.  455B.433  PHYSICAL
INFRASTRUCTURE ASSISTANCE - FUNDING - LIABILITY.
1. The department of natural resources shall work in conjunction
with the Iowa department of economic development to identify
environmentally contaminated sites which qualify for the
physical infrastructure assistance program under section
15E.175.  The department shall provide an assessment of the site
and shall provide any emergency response activities which the
department deems necessary.  The department may take any further
action, including remediation of the site, that the department
deems to be appropriate and which promotes the pur
poses of the physical infrastructure assistance program.
2.  The department shall be reimbursed from the physical
infrastructure assistance fund under section 15E.175 for any
costs incurred pursuant to this section.  Notwithstanding the
limitations of chapter 455G, any costs incurred on a site
contaminated by a leaking underground storage tank may be
reimbursed from the Iowa comprehensive petroleum underground
storage tank fund.
3.  A person shall not have standing pursuant to section
455B.111 to commence a citizen suit which is based upon property
that is part of the physical infrastructure assistance program
pursuant to section 15E.175.
Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the Iowa department of
economic development for the fiscal year beginning July 1, 1996,
and ending June 30, 1997, the following amounts, or so much
thereof as is necessary, to be deposited in the physical
infrastructure assistance fund created in section 15E.175:  
	 $	  2,000,000
Sec.    .  There is appropriated from the rebuild Iowa
infrastructure fund of the state to the Iowa department of
economic development for the fiscal years beginning July 1,
1996, and ending June 30, 1998, the following amounts, or so
much thereof as is necessary, to be deposited in the physical
infrastructure assistance fund created in section 15E.175 and
used only in accordance with subsection 3:
1.  For the fiscal year beginning July 1, 1996, and ending June
30, 1997, the following amount:  
	 $	  3,900,000
2.  For the fiscal year beginning July 1, 1997, and ending June
30, 1998, the following amount:  
	 $	  6,100,000
3.  The moneys appropriated in this section shall be used only
for providing assistance in the form of loan guarantees,
irrevocable letters of credit, and indemnification for liability
agreements entered into prior to October 15, 1996. Moneys
appropriated in this section shall not be allocated by the Iowa
department of economic development unless the legislative fiscal
committee has approved the allocation.
Sec.    .  Notwithstanding the allocation of moneys pursuant
to section 455B.423, subsection 2, the first two hundred
thousand dollars of moneys allocated to the hazardous substance
remedial fund for the fiscal year beginning July 1, 1996, and
ending June 30, 1997, shall be transferred to the physical
infrastructure assistance fund created under section 15E.175.  
DIVISION V
Sec.    .  Section 232.52, subsection 2, paragraph a,
subparagraph (4), Code Supplement 1995, is amended to read as
follows:
(4)  The suspension or revocation of the motor vehicle
license or operating privilege of the child, for a period of
one year, for the commission of one or more delinquent
acts which are a violation of section any of the
following:
(a)  Section 123.46, section.
(b)  Section 123.47 regarding the purchase or attempt to
purchase of alcoholic beverages, or chapter.
(c)  Chapter 124, or two.
(d)  Section 126.3.
(e)  Chapter 453B.
(f)  Two or more delinquent acts which are a violation
violations of section 123.47 regarding the possession of
alcoholic beverages for a period of one year.
SUBPARAGRAPH DIVIDED.  The child may be issued a temporary
restricted license or school license if the child is otherwise
eligible.
Sec.    .  Section 321.205, unnumbered paragraph 2, Code
1995, is amended by striking the paragraph.
Sec.    .  Section 321.209, subsection 8, Code 1995, is
amended by striking the subsection.
Sec.    .  Section 321.212, subsection 1, paragraph d, Code
1995, is amended to read as follows:
d.  The department shall revoke a motor vehicle license under
section 321.209, subsection 8, according to an order issued
pursuant to section 901.5, subsection 10, for one hundred
eighty days.  If the person has not been issued a motor vehicle
license, the issuance of a motor vehicle license shall be
delayed for one hundred eighty days after the person is first
eligible.  If the person's operating privileges have been
suspended or revoked at the time the person is convicted, the
one-hundred-eighty-day revocation period shall not begin until
all other suspensions or revocations have terminated.
Sec.    .  Section 321.213, Code Supplement 1995, is amended
to read as follows:
321.213  LICENSE SUSPENSIONS OR REVOCATIONS DUE TO VIOLATIONS BY
JUVENILE DRIVERS.
Upon the entering of an a dispositional order at the
conclusion of an adjudicatory hearing suspending or revoking
the motor vehicle license or operating privileges of the
juvenile under section 232.47 that the child violated a
provision of this chapter or chapter 124, 126, 321A, 321J, or
453B for which the penalty is greater than a simple
misdemeanor 232.52, subsection 2, paragraph "a", the clerk
of the juvenile court in the adjudicatory hearing shall
forward a copy of the adjudication and the dispositional
order to the department. Notwithstanding section 232.55, a
final adjudication in a juvenile court that the child violated a
provision of this chapter, chapter 124, a drug offense under
section 126.3, or chapter 321A, or 321J, or 453B
constitutes a final conviction for purposes of section 321.189,
subsection 8, paragraph "b", and sections 321.193, 321.194,
321.200, 321.209, 321.210, 321.215, 321.555, 321A.17, 321J.2,
321J.3, and 321J.4. However, suspensions for violations of
chapter 124, section 126.3, or chapter 453B shall be in
accordance with section 321.213A.
Sec.    .  Section 321.213A, Code Supplement 1995, as
amended by 1996 Iowa Acts, Senate File 2080, section 20, is
amended to read as follows:
321.213A  LICENSE SUSPENSION FOR JUVENILES ADJUDICATED
DELINQUENT FOR CERTAIN DRUG OR ALCOHOL OFFENSES.
Upon the entering of an a dispositional order at the
conclusion of a dispositional hearing under section 232.50,
where the child has been adjudicated to have committed a
delinquent act, which would be a first or subsequent violation
of section 123.46, section 123.47 involving the purchase or
attempt to purchase alco

holic beverages, chapter 124, section 126.3, chapter 453B, or a
second or subsequent violation of section 123.47 regarding the
possession of alcoholic beverages, under section 232.52,
subsection 2, paragraph "a", the clerk of the juvenile court
in the dispositional hearing shall forward a copy of the
adjudication and the dispositional order suspending or
revoking the motor vehicle license or operating privileges of
the juvenile to the department.  The department shall suspend
the license or operating privilege of the child for one year. 
The child may receive a temporary restricted license or
permit, if eligible, as provided in section 321.215.
Sec.    .  Section 321.215, subsection 1, unnumbered
paragraph 2, Code Supplement 1995, is amended to read as follows:
However, a temporary restricted license shall not be issued to a
person whose license is revoked under section 321.205 for a
drug or drug-related offense or pursuant to a court order
issued under section 901.5, subsection 10, or under section
321.209, subsections 1 through 5 or subsection 7, or 8
or to a juvenile whose license has been suspended under
section 321.213A or revoked pursuant to a dispositional
order under section 232.52, subsection 2, paragraph "a", for a
violation of chapter 124 or 453B, or section 126.3.  A temporary
restricted license may be issued to a person whose license is
revoked under section 321.209, subsection 6, only if the person
has no previous drag racing convictions.  A person holding a
temporary restricted license issued by the department under this
section shall not operate a motor vehicle for pleasure.
Sec.    .  Section 321.215, subsection 2, unnumbered
paragraph 1, Code Supplement 1995, as amended by 1996 Iowa Acts,
Senate File 2266, section 17, is amended to read as follows:
Upon conviction and the suspension or revocation of a person's
motor vehicle license under section 321.205 for a drug or
drug-related offense; 321.209, subsection 5, or 6,
or 8; section 321.210; 321.210A; or 321.513; or upon
revocation pursuant to a court order issued under section 901.5,
subsection 10; or upon the denial of issuance of a motor
vehicle license under section 321.560, based solely on offenses
enumerated in section 321.555, subsection 1, paragraph "c", or
section 321.555, subsection 2; or a juvenile, whose license has
been suspended under section 321.213A or revoked pursuant
to a dispositional order under section 232.52, subsection 2,
paragraph "a", for a violation of chapter 124 or 453B, or
section 126.3, a person may petition the district court having
jurisdiction for the residence of the person for a temporary
restricted permit to operate a motor vehicle for the limited
purpose or purposes specified in subsection 1.  The petition
shall include a current certified copy of the petitioner's
official driving record issued by the department.  The
application may be granted only if all of the following criteria
are satisfied:
Sec.    .  Section 321.215, subsection 2, paragraph d, Code
Supplement 1995, is amended to read as follows:
d.  Proof of financial responsibility is established as defined
in chapter 321A.  However, such proof is not required if the
motor vehicle license was suspended under section 321.210A or
321.513 or revoked under section 321.209, subsection 8, or
suspended or revoked under section 321.205 for a drug or
drug-related offense pursuant to a court order issued under
section 901.5, subsection 10.
Sec.    .  Section 321.491, unnumbered paragraph 7, Code
1995, is amended by striking the paragraph.
Sec.    .  Section 321A.17, subsection 5, Code Supplement
1995, is amended to read as follows:
5.  An individual applying for a motor vehicle license following
a period of suspension or revocation under section 321.205 for
a drug or drug-related offense, section 321.209, subsection 8,
pursuant to a dispositional order issued under section 232.52,
subsection 2, paragraph "a", or under section 321.210,
subsection 1, paragraph "d", or section 321.210A, 321.213A,
321.213B, 321.216B, or 321.513, following a period of suspension
under section 321.194, or following a period of revocation
pursuant to a court order issued under section 901.5,
subsection 10, or under section 321J.2A, is not required to
maintain proof of financial responsibility under this section.
Sec.    .  Section 901.5, Code 1995, is amended by adding
the following new subsection:
NEW SUBSECTION.  10.  In addition to any sentence imposed
pursuant to chapter 902 or 903, the court shall order the state
department of transportation to revoke the defendant's driver's
license or motor vehicle operating privilege for a period of one
hundred eighty days, or to delay the issuance of a motor vehicle
license for one hundred eighty days after the person is first
eligible if the defendant has not been issued a motor vehicle
license, and shall send a copy of the order in addition to the
notice of conviction required under section 124.412, 126.26, or
453B.16, to the state department of transportation, if the
defendant is being sentenced for any of the following offenses:
a.  A controlled substance offense under section 124.401,
124.401A, 124.402, or 124.403.
b.  A drug or drug-related offense under section 126.3.
c.  A controlled substance tax offense under chapter 453B.
If the person's operating privileges are suspended or revoked at
the time of sentencing, the order shall provide that the one
hundred eighty-day revocation period shall not begin until all
other suspensions or revocations have terminated. Any order
under this section shall also provide that the department shall
not issue a temporary restricted license to the defendant during
the revocation period, without further order by the court.
Sec.    .  EFFECTIVE DATE.  This division of this Act, being
deemed of immediate importance, takes effect upon enactment.  
DIVISION VI
Sec.    .  REPEAL.  Section 312.2A, Code 1995, is repealed.
Sec.    .  RETROACTIVITY, EFFECTIVE DATE, AND APPLICABILITY
PROVISIONS.
1.  Sections 50, 51, and 200 of this Act, being deemed of
immediate importance, take effect upon enactment.
2.  Section 300 of this Act, takes effect July 1, 1997.
3.  Section 400 of this Act, amending section 8.57, subsection
5, Code Supplement 1995, by adding new paragraph "e", being
deemed of immediate importance, takes effect upon enactment and
applies retroactively to July 1, 1995.
4.  Sections 500 and 501 of this Act amending section 602.8108
are effective July 1, 1997."
28.  Page 17, line 25, by striking the words and figures "13,
subsection 3, and".
29.  Page 17, by striking line 26 and inserting the following: 
"25, being deemed of immediate importance, takes effect upon
enactment."
30.  Title page, by striking lines 5 and 6 and inserting the
following:  "rebuild Iowa infrastructure fund, providing for
certain procedures for revocation or suspension of drivers'
licenses for certain drug-related offenses, construction
projects for the".
31.  By renumbering as necessary.  

ON THE PART OF THE HOUSE	ON THE PART OF THE SENATE

DAVID MILLAGE, Chair	ROD HALVORSON, Chair
CLYDE BRADLEY	MICHAEL GRONSTAL
BARRY BRAUNS	JOHN JENSEN
DENNIS COHOON	LARRY MURPHY
STEVE WARNSTADT

Warnstadt of Woodbury rose on a point of order in invoked rule
39A, relating to consideration of conference committee reports.
The Speaker ruled the point well taken and the conference
committee report on House File 2421 not in order.
Millage of Scott asked for unanimous consent to consider the
conference committee report on House File 2421.
Objection was raised.
Millage of Scott moved to consider the conference committee
report on House File 2421.
A non-record roll call was requested.
The ayes were 51, nays 29.
The motion prevailed and the House considered the conference
committee report on House File 2421.
On motion by Millage of Scott, the  conference committee report
was adopted.
Millage 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?" (H.F. 2421)
The ayes were, 90:

Arnold         	Baker          	Bell           	Bernau        
	Blodgett       	Boggess        	Bradley        	Brand         
		Branstad       	Brauns         	Burnett        	Carroll       
		Cataldo        	Churchill      	Cohoon         	Connors
        		Coon           	Corbett, Spkr.        	Cormack       
	Daggett        		Disney         	Doderer        	Drake         
	Drees          		Ertl           	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          	Metcalf       
	Meyer          		Millage        	Mundie         	Murphy        
	Nelson, B.      	Nelson, L.       	Nutt           	O'Brien     
  	Ollie          		Osterhaus      	Rants          	Renken      
  	Schrader       	Schulte        	Shoultz        	Siegrist     
 	Sukup          		Taylor         	Teig           	Thomson      
 	Tyrrell        		Van Fossen         	Vande Hoef     	Veenstra 
     	Warnstadt      	Weidman        	Weigel         	Welter    
    	Wise           		Witt           	Van Maanen, 
 	 Presiding
The nays were, 3:

Brunkhorst     	Fallon         	Moreland       	
Absent or not voting, 7:

Boddicker      	Brammer        	Dinkla         	Eddie         
		Mertz          	Myers          	Salton         	
The bill having received a constitutional majority was declared
to have passed the House and the title, as amended, was agreed
to.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that House File 2421 be immediately messaged to the Senate.
HOUSE RECEDES
Blodgett of Cerro Gordo called up for consideration Senate File
2140, a bill for an act increasing the speed limit on certain
highways, requiring a report on safety in construction zones,
and providing an effective date, and moved that the House recede
from its amendment.
The motion prevailed and the House receded.
Blodgett of Cerro Gordo 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. 2140)
The ayes were, 70:

Bell           	Bernau         	Blodgett       	Boggess       
		Bradley        	Branstad       	Brunkhorst     	Burnett       
		Carroll        	Cataldo        	Churchill      	Cohoon        
		Connors        	Coon           	Cormack        	Daggett       
		Disney         	Doderer        	Garman         	Gipp          
		Gries          	Halvorson 	Hammitt Barry  	Hanson        
	Harper         	Harrison       	Heaton  	Holveck       
		Huseman        	Jacobs         	Jochum         	Koenigs       
		Kreiman        	Kremer         	Lamberti       	Larkin        
		Larson         	Lord           	Main           	Martin        
	Mascher        	May            	McCoy          	Metcalf       
	Meyer          	Moreland       	Mundie         	Murphy        
		Nelson, B.      	Nelson, L.       	Nutt           	O'Brien    
   		Ollie          	Osterhaus      	Rants          	Renken     
   	Schrader       	Schulte        	Shoultz        	Siegrist    
  	Sukup          	Taylor         	Teig           	Thomson      
    	Vande Hoef     	Weidman        	Weigel         	Welter     
   		Witt           	Van Maanen, 
 	 Presiding
The nays were, 20:

Arnold         	Baker          	Brand          	Brauns        
		Drake          	Drees          	Fallon         	Greiner       
	Grubbs         	Grundberg      	Hahn           	Houser        
		Hurley	Klemme         	Millage        	Tyrrell        		Van
Fossen     	Veenstra       	Warnstadt      	Wise           	
Absent or not voting, 10:

Boddicker      	Brammer        	Corbett, Spkr.        	Dinkla   
     		Eddie          	Ertl           	Greig          	Mertz    
     		Myers          	Salton         	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 2140 be immediately messaged to the Senate.

SPONSOR ADDED
(House Resolution 111)
Brand of Benton requested to be added as a sponsor of House
Resolution 111.
EXPLANATION OF VOTE
I was temporarily absent from the House chamber on April 30,
1996. Had I been present, I would have voted "aye" on House File
2458.
HARRISON of Scott
BILL ENROLLED, SIGNED AND SENT TO GOVERNOR
The Chief Clerk of the House submitted the following report:
Mr. Speaker: The Chief Clerk of the House respectfully reports
that the following bill has been examined and found correctly
enrolled, signed by the Speaker of the House and the President
of the Senate, and presented to the Governor for his approval on
this Thirtieth day of April, 1996: House File 570.
ELIZABETH A. ISAACSON
Chief Clerk of the House
Report adopted.
BILLS SIGNED BY THE GOVERNOR
A communication was received from the Governor announcing that
on April 30, 1996, he approved and transmitted to the Secretary
of State the following bills:
House File 476, an act eliminating the appeal period for the
awarding of contracts by the purchasing division of the
department of general services.
House File 2153, an act relating to the reinstatement to active
service of members of the statewide fire and police retirement
system and the public safety peace officers' retirement,
accident, and disability system upon denial of disability
benefits.
Senate File 2351, an act relating to department of economic
development programs, including the workforce development fund
program and the Iowa small business new jobs training Act,
providing a supplemental new jobs credit from withholding,
making an annual allocation from an appropriation, and
establishing an effective date.
Senate File 2357, 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.
Senate File 2366, an act relating to lease-purchase agreements.
Senate File 2399, an act relating to child protection system
provisions involving the child abuse assessment pilot projects
administered by the department of human services and certain
multidisciplinary teams, and providing an effective date.
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\551	Daphen and Harold Prough, Chariton - For celebrating
their Fiftieth wedding anniversary.
1996\552	Timothy Rummer, Corning Community School, Corning - For
being named to the Des Moines Register's 1996 Academic All State
Team.
1996\553	Corning Main Street, Corning - For being named a
semi-finalist in the Great American Main Street Award
Competition.
1996\554	Shirley Hatcher, Council Bluffs - For receiving the
Harry C. Voss Award, recognizing people who have made community
volunteering a way of life.
1996\555	Ethel and John Bern, Sioux City - For celebrating their
Fiftieth wedding anniversary.
1996\556	CAL 5th Grade, Latimer - For their completion of the
DARE Program.
1996\557	Sheffield-Chapin 5th Grade, Sheffield - For their
completion of the DARE Program.
1996\558	Ida May Ridinger, Wayland - For celebrating her One
hundredth birthday.
1996\559	Jade Bettin, Odebolt-Arthur Community School - For
being selected the Iowa 5th Congressional District Show Winner
of Art to be displayed in the U. S. Capitol.
1996\560	John Cousins, Low Moor - For celebrating his Eightieth
birthday.
1996\561	Beverly and Leroy Mensinger, Camanche - For celebrating
their Fiftieth wedding anniversary.
1996\562	Angela and Clair Hindman, Newton - For celebrating
their Fiftieth wedding anniversary.
1996\563	Emily Pearson, Dubuque - For being selected a Northeast
Regional Winner for the Des Moines Register's 1996 Academic All
State Team.
1996\564	Sarah Vicker, Creston - For being selected a Southwest
Regional Winner for the Des Moines Register's 1996 Academic All
State Team.
1996\565	Anthony Fischer, Neola - For being selected a Southwest
Regional Winner for the Des Moines Register's 1996 Academic All
State Team.
1996\566	Scotty Christofferson, Exira -  For being selected a
Southwest Regional Winner for the Des Moines Register's 1996
Academic All State Team.
1996\567	Brian Young, Clinton - For being selected a Southeast
Regional Winner for the Des Moines Register's 1996 Academic All
State Team.
1996\568	Elizabeth Laughlin, North Hills Elementary School,
Burlington - For receiving an Excellence in Science Teaching
Award.
1996\569	Nadine Weirather, Central Lee Junior High - For
receiving an Excellence in Science Teaching Award from the Iowa
Academy of Science.
     RESOLUTIONS FILED
HCR 130, by Weigel, a concurrent resolution declaring Miss Iowa
USA an official hostess for the State of Iowa.
Laid over under Rule 25.
HCR 131, by Shoultz, a concurrent resolution requesting that the
Legislative Council appoint an interim study committee relating
to family law issues.
Referred to committee on judiciary.
HR 113, by Harrison, Van Fossen, Martin, Myers, Jacobs, Bradley
and Grubbs, a resolution designating motorcycle awareness month
in Iowa.
Laid over under Rule 25.
SCR 106, by Freeman, a concurrent resolution commemorating the
veterans of the United States armed forces who fought and won
the Battle of the Bulge during World War II.
Laid over under Rule 25.
AMENDMENTS FILED

H_6056   	S.F.   	2265   	Hurley of Fayette
			Lamberti of Polk
			Doderer of Johnson
H_6058	H.F.	  560	Vande Hoef of Osceola
H_6059	S.F.	  454	Carroll of Poweshiek
				Witt of Black Hawk						Martin of Scott
On motion by Siegrist of Pottawattamie, the House adjourned at
9:07 p.m., until 9:00 a.m., Wednesday, May 1, 1996.

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