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House Journal: Tuesday, April 29, 1997

One Hundred Seventh Calendar Day - Sixty-eighth Session Day

Hall of the House of Representatives
Des Moines, Iowa, Tuesday, April 29, 1997
The House met pursuant to adjournment at 9:15 a.m., Speaker
Corbett in the chair.
Prayer was offered by Reverend Gil Dawes, Hispanic United
Methodist Church, Des Moines.
The Journal of Monday, April 28, 1997 was approved.
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 29, 1997, amended and passed the
following bill in which the concurrence of the House is asked:
House File 731, a bill for an act relating to public budgeting,
regulatory, and organizational matters, making fund transfers
and appropriations, and providing technical provisions, and
providing effective dates.
MARY PAT GUNDERSON, Secretary
SENATE AMENDMENT CONSIDERED
Dinkla of Guthrie called up for consideration House File 642, a
bill for an act relating to limited partnerships and the rights
and duties of limited partners, partnership agreements, duties
of the secretary of state with respect to limited partnerships,
and other related matters affecting foreign and domestic limited
partnerships, and establishing fees and penalties, amended by
the Senate, and moved that the House concur in the following
Senate amendment H-1962:

H-1962

 1     Amend House File 642, as amended, passed, and
 2   reprinted by the House, as follows:
 3     1.  Page 30, by inserting after line 5 the
 4   following:
 5     "Sec. ___.  Section 490.1109, subsection 3,
 6   paragraph e, as enacted in 1997 Iowa Acts, House File
 7   628, if enacted, is amended to read as follows:
 8     e.  "Interested shareholder" means any person,
 9   other than the corporation and any direct or indirect
10   majority-owned subsidiary of the corporation, that is
11   the owner of fifteen ten percent or more of the
12   outstanding voting stock of the corporation, or is an
13   affiliate or associate of the corporation and was the
14   owner of fifteen ten percent or more of the
15   outstanding voting stock of the corporation at any
16   time within the three-year period immediately prior to
17   the date on which it is sought to be determined
18   whether such person is an interested shareholder, and
19   the affiliates and associates of such person.
20   "Interested shareholder" does not include either of
21   the following:
22     (1)  A person who owns shares in excess of the
23   fifteen percent limitation and who acquired such
24   shares as follows:
25     (a)  Pursuant to a tender offer commenced prior to
26   January 1, 1998, or pursuant to an exchange offer
27   announced prior to January 1, 1998, and commenced
28   within ninety days after such date, if such person
29   satisfies either of the following:
30     (i)  Continues to own shares in excess of the
31   fifteen percent limitation or would continue to own
32   such shares but for action taken by the corporation.
33     (ii)  Is an affiliate or associate of the
34   corporation and continues, or would continue but for
35   action taken by the corporation, to be the owner of
36   fifteen percent or more of the outstanding voting
37   stock of the corporation at any time within the three-
38   year period immediately prior to the date on which it
39   is sought to be determined whether such person is an
40   interested shareholder.
41     (b)  From a person subject to subparagraph
42   subdivision (a) by gift, devise, or in a transaction
43   in which no consideration for the shares was
44   exchanged.
45     (2)  A a person whose ownership of shares in
excess
46   of the fifteen ten percent limitation is the result
of
47   action taken solely by the corporation, provided that
48   such person is an interested shareholder if, after
49   such action by the corporation, the person acquires
50   additional shares of voting stock of the corporation,

Page 2  

 1   other than as a result of further corporate action not
 2   caused, directly or indirectly, by such person.
 3     For purposes of determining whether a person is an
 4   interested shareholder, the outstanding voting stock
 5   of the corporation does not include any other unissued
 6   stock of the corporation which may be issuable
 7   pursuant to any agreement, arrangement, or
 8   understanding, or upon exercise of conversion rights,
 9   warrants, or options, or otherwise.
10     Sec. ___.  Section 490A.102, subsections 13, 16,
11   and 18, Code 1997, are amended to read as follows:
12     13.  "Limited liability company" or "domestic
13   limited liability company" means an entity that is an
14   unincorporated association having two one or more
15   members, and that is organized under or subject to
16   this chapter.
17     16.  "Member" means a person with a membership
18   interest in a limited liability company under this
19   chapter or, with respect to a foreign limited
20   liability company, under the laws of the state,
21   foreign country, or other foreign jurisdiction under
22   which such company is organized.
23     18.  "Operating agreement" means any agreement,
24   written or oral, of the members as to the affairs of a
25   limited liability company and the conduct of its
26   business.
27     Sec. ___.  Section 490A.202, subsection 17, Code
28   1997, is amended by striking the subsection and
29   inserting in lieu thereof the following:
30     17.  Indemnify and hold harmless a member, manager,
31   or other person against a claim, liability, or other
32   demand, as provided in an operating agreement.
33     Sec. ___.  Section 490A.303, subsection 1,
34   paragraph d, Code 1997, is amended to read as follows:
35     d.  The period of its duration, which shall not
may
36   be perpetual.
37     Sec. ___.  NEW SECTION.  490A.304  CONVERSION OF
38   CERTAIN ENTITIES TO A LIMITED LIABILITY COMPANY.
39     1.  As used in this section, the term "other
40   entity" means a corporation, business trust or
41   association, real estate investment trust, common-law
42   trust, or any other unincorporated business, including
43   any partnership, whether general or limited, or a
44   foreign limited liability company.
45     2.  Any other entity may convert to a domestic
46   limited liability company by complying with subsection
47   8 and filing in the office of the secretary of state
48   both of the following:
49     a.  Articles of conversion to a limited liability
50   company executed by one or more authorized persons.

Page   3

 1     b.  Articles of organization executed by one or
 2   more authorized persons.
 3     3.  The articles of conversion to a limited
 4   liability company shall state all of the following:
 5     a.  The date on which, and jurisdiction where, the
 6   converting entity was first created, formed,
 7   incorporated, or otherwise came into being and, if it
 8   has changed, its jurisdiction immediately prior to its
 9   conversion to a domestic limited liability company.
10     b.  The name of the converting entity immediately
11   prior to the filing of the articles of conversion to a
12   limited liability company.
13     c.  The name of the limited liability company.
14     d.  The future effective date or time certain of
15   the conversion to a limited liability company if it is
16   not to be effective upon the filing of the articles of
17   conversion and the articles of organization.
18     4.  Upon the filing in the office of the secretary
19   of state of the articles of conversion and the
20   articles of organization or upon the future effective
21   date or time of the articles of conversion and the
22   articles of organization, the converting entity shall
23   be converted into a domestic limited liability company
24   and the limited liability company, from that date or
25   time, is subject to this chapter, except that the
26   existence of the limited liability company is deemed
27   to have commenced on the date the converting entity
28   commenced its existence in the jurisdiction in which
29   the converting entity was first created, formed,
30   incorporated, or otherwise came into being.
31     5.  The conversion of an entity into a domestic
32   limited liability company does not affect any
33   obligations or liabilities of the other entity
34   incurred prior to its conversion to a domestic limited
35   liability company, or the personal liability of any
36   person incurred prior to such conversion.
37     6.  When a conversion is effective, for all
38   purposes of the laws of this state, all of the rights,
39   privileges, and powers of the converting entity, and
40   all property, real, personal, and mixed, and all debts
41   due to the converting entity, as well as all other
42   things and causes of action belonging to such entity,
43   are vested in the domestic limited liability company
44   and are the property of the domestic limited liability
45   company as they were of the converting entity.  The
46   title to any real property vested by deed or otherwise
47   in the converting entity shall not revert or be in any
48   way impaired by reason of this chapter, and all rights
49   of creditors and all liens upon any property of such
50   other entity are preserved unimpaired, and all debts,

Page   4

 1   liabilities, and duties of the converting entity shall
 2   attach to the domestic limited liability company, and
 3   may be enforced against it to the same extent as if
 4   the debts, liabilities, and duties had been incurred
 5   or contracted by the domestic limited liability
 6   company.
 7     7.  Unless otherwise agreed, or as required under
 8   the laws of a jurisdiction other than this state, the
 9   converting entity is not required to wind up its
10   affairs or pay its liabilities and distribute its
11   assets, and the conversion does not constitute a
12   dissolution of the converting entity.
13     8.  Prior to filing the articles of conversion to a
14   limited liability company with the office of the
15   secretary of state, an operating agreement must be
16   approved in the manner provided for by the documents,
17   instrument, agreement, or other writing, as the case
18   may be, governing the internal affairs of the
19   converting entity and the conduct of its business or
20   by applicable law, as appropriate.
21     9.  This section shall not be construed to limit
22   the ability to change the law governing, or the
23   domicile of, a converting entity to this state by any
24   other means provided for in an operating agreement or
25   as otherwise permitted by law, including by the
26   amendment of an operating agreement.
27     Sec. ___.  NEW SECTION.  490A.305  SERIES OF
28   MEMBERS, MANAGERS, OR MEMBERSHIP INTERESTS.
29     1.  An operating agreement may establish or provide
30   for the establishment of designated series of members,
31   managers, or membership interests having separate
32   rights, powers, or duties with respect to specified
33   property or obligations of the limited liability
34   company or profits and losses associated with
35   specified property or obligations, and, to the extent
36   provided in the operating agreement, any such series
37   may have a separate business purpose or investment
38   objective.
39     2.  Notwithstanding contrary provisions of this
40   chapter, the debts, liabilities, and obligations
41   incurred, contracted for, or otherwise existing with
42   respect to a particular series shall be enforceable
43   against the assets of that series only, and not
44   against the assets of the limited liability company
45   generally, if all of the following apply:
46     a.  The operating agreement creates one or more
47   series.
48     b.  Separate and distinct records are maintained
49   for the series and the assets associated with the
50   series are held and accounted for separately from the

Page   5

 1   other assets of the limited liability company, or from
 2   any other series of the limited liability company.
 3     c.  The operating agreement provides for such
 4   limitation on liabilities.
 5     d.  Notice of the limitation on liabilities of a
 6   series is set forth in the articles of organization of
 7   the limited liability company.  Filing of articles of
 8   organization containing a notice of the limitation on
 9   liabilities of a series in the office of the secretary
10   of state constitutes notice of the limitation on
11   liabilities of such series.
12     3.  Notwithstanding section 490A.601, or a contrary
13   provision in an operating agreement, a member or
14   manager may agree to be obligated personally for any
15   or all of the debts, obligations or liabilities of one
16   or more series.
17     4.  An operating agreement may provide for classes
18   or groups of members or managers associated with a
19   series having such relative rights, powers, and duties
20   as the operating agreement may provide.  The operating
21   agreement may provide for the future creation of
22   additional classes or groups of members or managers
23   associated with the series having such relative
24   rights, powers, and duties as may from time to time be
25   established, including rights, powers, and duties
26   senior to existing classes and groups of members or
27   managers associated with the series.  An operating
28   agreement may provide for the taking of an action,
29   including the amendment of the operating agreement,
30   without the vote or approval of any member or manager
31   or class or group of members or managers, including
32   all action to create under the provisions of the
33   operating agreement a class or group of the series of
34   membership interests that was not previously
35   outstanding.  An operating agreement may provide that
36   any member or class or group of members associated
37   with a series have no voting rights.
38     5.  An operating agreement may grant to all or
39   certain identified members or managers or a specified
40   class or group of the members or managers associated
41   with a series the right to vote on any matter
42   separately or with all or any class or group of the
43   members or managers associated with the series.
44   Voting by members or managers associated with a series
45   may be on a per capita, number, financial interest,
46   class, group, or other basis.
47     6.  Unless otherwise provided in an operating
48   agreement, the management of a series shall be vested
49   in the members associated with such series in
50   proportion to the then-current percentage or other

Page   6

 1   interest of members in the profits of the series owned
 2   by all of the members associated with such series.
 3   The decision of members owning more than fifty percent
 4   of the series or other interest in the profits shall
 5   control.  However, if an operating agreement provides
 6   for the management of the series, in whole or in part,
 7   by a manager, the management of the series, to the
 8   extent so provided, is vested in the manager who shall
 9   be chosen as provided in the operating agreement.  The
10   manager of the series shall also hold the offices and
11   have the responsibilities accorded to managers as set
12   forth in the operating agreement.  A series may have
13   more than one manager.  A manager shall cease to be a
14   manager with respect to a series as provided in the
15   operating agreement.  Except as otherwise provided in
16   the operating agreement, an event under this chapter
17   or identified in an operating agreement that causes a
18   manager to cease to be a manager with respect to a
19   series, by itself, shall not cause the manager to
20   cease to be a manager of the limited liability company
21   or with respect to any other series of the limited
22   liability company.
23     7.  Notwithstanding any other provision of this
24   chapter, except subsections 8 and 11 and unless
25   otherwise provided in an operating agreement, at the
26   time a member associated with a series that has been
27   established pursuant to subsection 1 becomes entitled
28   to receive a distribution with respect to such series,
29   the member has the status of, and is entitled to, all
30   remedies available to a creditor of the series with
31   respect to the distribution.  An operating agreement
32   may provide for the establishment of a record date
33   with respect to allocations and distributions with
34   respect to a series.
35     8.  Notwithstanding any other provision of this
36   chapter, a limited liability company may make a
37   distribution with respect to a series that has been
38   established pursuant to subsection 1.  However, a
39   limited liability company shall not make a
40   distribution with respect to a series that has been
41   established pursuant to subsection 1 to the extent
42   that at the time of the distribution, after giving
43   effect to the distribution, all liabilities of such
44   series, other than liabilities to members on account
45   of their membership interests with respect to such
46   series and liabilities for which the recourse of
47   creditors is limited to specified property of such
48   series, exceed the fair value of the assets associated
49   with such series.  However, the fair value of an asset
50   of the series that is subject to a liability for which

Page   7

 1   the recourse of creditors is limited shall be included
 2   in the assets associated with such series only to the
 3   extent that the fair value of that asset exceeds that
 4   liability.  A member who receives a distribution in
 5   violation of this subsection, and who knew at the time
 6   of the distribution that the distribution violated
 7   this subsection, is liable for the amount of the
 8   distribution.  Subject to section 490A.807, which
 9   applies to any distribution made with respect to a
10   series under this subsection, this subsection shall
11   not affect any obligation or liability of a member
12   under an agreement or other applicable law for the
13   amount of a distribution.
14     9.  Unless otherwise provided in the operating
15   agreement, a member shall cease to be associated with
16   a series and to have the power to exercise any rights
17   or powers of a member with respect to such series upon
18   the assignment of all of the member's membership
19   interest with respect to such series.  Except as
20   otherwise provided in an operating agreement, an event
21   under this chapter or identified in an operating
22   agreement that causes a member to cease to be
23   associated with a series, by itself, shall not cause
24   such member to cease to be associated with any other
25   series or terminate the continued membership of a
26   member in the limited liability company.
27     10.  Subject to section 490A.1301, except to the
28   extent otherwise provided in the operating agreement,
29   a series may be terminated and its affairs wound up
30   without causing the dissolution of the limited
31   liability company.  The termination of a series
32   established pursuant to subsection 1 shall not affect
33   the limitation on liabilities of such series provided
34   by subsection 2.  A series is terminated and its
35   affairs shall be wound up upon the dissolution of the
36   limited liability company under section 490A.1301 or
37   otherwise upon the first to occur of the following:
38     a.  At the time specified in the operating
39   agreement.
40     b.  Upon the happening of events specified in the
41   operating agreement.
42     c.  Unless otherwise provided in the operating
43   agreement, upon the written consent of all members
44   associated with such series.
45     d.  The termination of such series under subsection
46   10.
47     11.  Notwithstanding section 490A.1303, unless
48   otherwise provided in the operating agreement, any of
49   the following persons may wind up the affairs of the
50   series:

Page   8

 1     a.  A manager associated with a series who has not
 2   wrongfully terminated the series.
 3     b.  If there is no manager of a series, the members
 4   associated with the series or a person approved by the
 5   members associated with the series.
 6     c.  If there is more than one class or group of
 7   members associated with the series, then by each class
 8   or group of members associated with the series, in
 9   either case, by members who own more than fifty
10   percent of the then-current percentage or other
11   interest in the profits of the series owned by all of
12   the members associated with the series or by the
13   members of each class or group associated with the
14   series.
15     However, if the series has been established
16   pursuant to subsection 1, the district court of the
17   county in which the limited liability company has its
18   principal place of business, upon cause shown, may
19   wind up the affairs of the series upon application of
20   any member associated with the series or the member's
21   legal representative or assignee, and in connection
22   with such winding up, may appoint a liquidating
23   trustee.  The persons winding up the affairs of a
24   series, in the name of the limited liability company
25   and for and on behalf of the limited liability company
26   and such series, may take all actions with respect to
27   the series as are permitted under section 490A.1303.
28   The persons winding up the affairs of a series shall
29   provide for the claims and obligations of the series
30   as provided in section 490A.1304 and distribute the
31   assets of the series as provided in section 490A.1304.
32   Actions taken pursuant to this subsection shall not
33   affect the liability of members and shall not impose
34   liability on a liquidating trustee.
35     12.  On application by or for a member or manager
36   associated with a series established pursuant to
37   subsection 1, the district court in the county in
38   which the limited liability company has its principal
39   place of business may enter an order for dissolution
40   of such series if it is not reasonably practicable to
41   carry on the business of the series in conformity with
42   the operating agreement.
43     13.  A foreign limited liability company that is
44   registering to do business in this state under this
45   chapter which is governed by an operating agreement
46   that establishes or provides for the establishment of
47   designated series of members, managers, or membership
48   interests having separate rights, powers, or duties
49   with respect to specified property or obligations of
50   the foreign limited liability company, or profits and

Page   9

 1   losses associated with the specified property or
 2   obligations, shall indicate that fact on the
 3   application for registration as a foreign limited
 4   liability company.  In addition, the foreign limited
 5   liability company shall state on the application
 6   whether the debts, liabilities, and obligations
 7   incurred, contracted for, or otherwise existing with
 8   respect to a particular series, if any, are
 9   enforceable against the assets of such series only,
10   and not against the assets of the foreign limited
11   liability company generally.
12     Sec. ___.  NEW SECTION.  490A.306  ADMISSION OF
13   MEMBERS.
14     1.  In connection with the formation of a limited
15   liability company, a person is admitted as a member of
16   the limited liability company upon the later to occur
17   of the following:
18     a.  The formation of the limited liability company.
19     b.  The time provided in, and upon compliance with,
20   the operating agreement or, if the operating agreement
21   does not so provide, when the person's admission is
22   reflected in the records of the limited liability
23   company.
24     2.  After the formation of a limited liability
25   company, a person is admitted as a member of the
26   limited liability company as follows:
27     a.  In the case of a person who is not an assignee
28   of a membership interest, including a person acquiring
29   a membership interest directly from the limited
30   liability company and a person to be admitted as a
31   member of the limited liability company without
32   acquiring a membership interest in the limited
33   liability company, at the time provided in and upon
34   compliance with the operating agreement or, if the
35   operating agreement does not so provide, upon the
36   consent of all members and the person's admission
37   being reflected in the records of the limited
38   liability company.
39     b.  In the case of an assignee of a membership
40   interest, as provided in section 490A.903 and at the
41   time provided in and upon compliance with the
42   operating agreement, or if the operating agreement
43   does not so provide, when any such person's permitted
44   admission is reflected in the records of the limited
45   liability company.
46     c.  Unless otherwise provided in an agreement of
47   merger, in the case of a person acquiring a membership
48   interest in a surviving or resulting limited liability
49   company pursuant to a merger approved pursuant to
50   section 490A.1203, at the time provided in and upon

Page  10

 1   compliance with the operating agreement of the
 2   surviving or resulting limited liability company.
 3     3.  A person may be admitted to a limited liability
 4   company as a member of the limited liability company
 5   and may receive a membership interest in the limited
 6   liability company without making a contribution or
 7   being obligated to make a contribution to the limited
 8   liability company.  Unless otherwise provided in an
 9   operating agreement, a person may be admitted to a
10   limited liability company as a member of the limited
11   liability company without acquiring a membership
12   interest in the limited liability company.
13     Sec. ___.  NEW SECTION.  490A.307  CLASSES AND
14   VOTING.
15     1.  An operating agreement may provide for classes
16   or groups of members and the relative rights, powers,
17   and duties of such members, and may provide for the
18   future creation of additional classes or groups of
19   members having such relative rights, powers, and
20   duties as may from time to time be established,
21   including rights, powers, and duties senior to
22   existing classes and groups of members.  An operating
23   agreement may provide for taking action, including the
24   amendment of the operating agreement, without the vote
25   or approval of any member or class or group of
26   members, including an action to create a class or
27   group of membership interests that was not previously
28   outstanding.  An operating agreement may provide that
29   any member or class or group of members has no voting
30   rights.
31     2.  An operating agreement may grant to all or
32   certain identified members or a specified class or
33   group of the members the right to vote separately or
34   with all or any class or group of members or managers
35   on any matter.  Voting by members may be on a per
36   capita, number, financial interest, class, group, or
37   any other basis.
38     3.  An operating agreement which grants a right to
39   vote may set forth provisions relating to notice of
40   the time, place, or purpose of any meeting at which
41   any matter is to be voted on by any members, waiver of
42   any notice, action by consent without meeting, the
43   establishment of a record date, quorum requirements,
44   voting in person or by proxy, or any other matter with
45   respect to the exercise of any such right to vote.
46     Sec. ___.  NEW SECTION.  490A.603  LIABILITY OF
47   MEMBERS.
48     1.  Except as otherwise provided in this chapter or
49   by written agreement of a member, a member or manager
50   of a limited liability company is not personally

Page  11

 1   liable solely by reason of being a member or manager
 2   of the limited liability company under any judgment,
 3   or in any other manner, for any debt, obligation, or
 4   liability of the limited liability company, whether
 5   that liability or obligation arises in contract, tort,
 6   or otherwise.
 7     2.  A member of a limited liability company is
 8   personally liable under a judgment or for any debt,
 9   obligation, or liability of the limited liability
10   company, whether that liability or obligation arises
11   in contract, tort, or otherwise, under the same or
12   similar circumstances and to the same extent as a
13   shareholder of a corporation may be personally liable
14   for any debt, obligation, or liability of the
15   corporation, except that the failure to hold meetings
16   of members or managers or the failure to observe
17   formalities pertaining to the calling or conduct of
18   meetings shall not be considered a factor tending to
19   establish that the members have personal liability for
20   any debt, obligation, or liability of the limited
21   liability company.
22     3.  Nothing in this section shall be construed to
23   affect the liability of a member of a limited
24   liability company to third parties for the member's
25   participation in tortious conduct.
26     Sec. ___.  Section 490A.702, subsection 4, Code
27   1997, is amended by striking the subsection and
28   inserting in lieu thereof the following:
29     4.  Except as provided in subsection 4A, the
30   validity of an act of a limited liability company is
31   not challengeable on the ground that the limited
32   liability company lacks or lacked the power or
33   authority to act.
34     Sec. ___.  Section 490A.702, Code 1997, is amended
35   by adding the following new subsections:
36     NEW SUBSECTION.  4A.  A limited liability company's
37   power to act may be challenged in the following
38   proceedings:
39     a.  In an action by a member against the limited
40   liability company to enjoin an unauthorized act.
41     b.  In an action by the limited liability company
42   against an incumbent or former manager, employee, or
43   agent of the limited liability company, either
44   directly, derivatively, or through a receiver,
45   trustee, or other legal representative.
46     c.  By the attorney general under section
47   490A.1409.
48     NEW SUBSECTION.  4B.  In a member's proceeding
49   under subsection 4A, paragraph "a", to enjoin an
50   unauthorized act, the court may enjoin or set aside

Page  12

 1   the act if equitable and if all affected persons are
 2   parties to the proceeding.  The court may award
 3   damages, other than anticipated profits, for loss
 4   suffered by the limited liability company or another
 5   party as a result of the unauthorized act being
 6   enjoined.
 7     Sec. ___.  Section 490A.703, Code 1997, is amended
 8   by adding the following new subsection:
 9     NEW SUBSECTION.  2A.  a.  A written operating
10   agreement or other writing may provide for a person to
11   be admitted as a member of a limited liability
12   company, or to become an assignee of a limited
13   liability company membership interest or other rights
14   or powers of a member, to the extent that either of
15   the following occurs:
16     (1)  If the person, or a representative authorized
17   by the person orally, in writing, or by other action
18   such as payment for a limited liability company
19   interest, executes the operating agreement or any
20   other writing evidencing the intent of such person to
21   become a member or assignee.
22     (2)  Without execution of the operating agreement
23   or similar writing, if the person or such authorized
24   representative of the person complies with the
25   conditions for becoming a member or assignee as set
26   forth in the operating agreement or any other writing
27   and requests orally, in writing, or by other action
28   such as payment for a limited liability company
29   interest, that the records of the limited liability
30   company reflect such admission or assignment.
31     b.  A written operating agreement or another
32   written agreement or writing is not unenforceable by
33   reason of its not having been signed by a person being
34   admitted as a member or becoming an assignee, or the
35   member's or assignee's representative, as provided in
36   paragraph "a".
37     Sec. ___.  NEW SECTION.  490A.704A  RESIGNATION OR
38   WITHDRAWAL OF MEMBER.
39     1.  a.  This section applies to a limited liability
40   company whose original articles of organization are
41   filed with the secretary of state on or after July 1,
42   1997.
43     b.  This section applies to a limited liability
44   company whose original articles of organization are
45   filed with the secretary of state and effective on or
46   prior to June 30, 1997, if such company's operating
47   agreement provides that it is subject to this section.
48     c.  If no provision is made in the operating
49   agreement, a limited liability company whose original
50   articles of organization were filed with the secretary

Page  13

 1   of state and effective on or prior to June 30, 1997,
 2   is subject to section 490A.704.
 3     2.  A member may resign or withdraw from a limited
 4   liability company only at the time or upon the
 5   happening of an event specified in an operating
 6   agreement and pursuant to the operating agreement.
 7     3.  Unless an operating agreement provides
 8   otherwise, a member may not resign or withdraw from a
 9   limited liability company prior to the dissolution and
10   winding up of the limited liability company.  However,
11   if the articles of organization or an operating
12   agreement do not specify the time or the events upon
13   the happening of which a member may resign or
14   withdraw, a member may resign or withdraw from the
15   limited liability company in the event any amendment
16   to the articles of organization or operating agreement
17   that is adopted over the member's written dissent
18   adversely affects the rights or preferences of the
19   dissenting member's membership interest in any of the
20   ways described in paragraphs "a" through "e".  A
21   resignation or withdrawal in the event of such dissent
22   and adverse effect is deemed to have occurred as of
23   the effective date of the amendment, if the member
24   gives notice to the limited liability company not more
25   than sixty days after the date of the amendment.  In
26   valuing the member's distribution pursuant to this
27   subsection, any depreciation in anticipation of the
28   amendment shall be excluded.  An amendment that does
29   any of the following is subject to this subsection:
30     a.  Alters or abolishes a member's right to receive
31   a distribution.
32     b.  Alters or abolishes a member's right to
33   voluntarily withdraw or resign.
34     c.  Alters or abolishes a member's right to vote on
35   any matter, except as the rights may be altered or
36   abolished through the acceptance of contributions or
37   the making of contribution agreements.
38     d.  Alters or abolishes a member's preemptive right
39   to make contributions.
40     e.  Establishes or changes the conditions for or
41   consequences of expulsion.
42     4.  A member withdrawing under this section is not
43   liable for damages for the breach of any agreement not
44   to withdraw.
45     5.  An operating agreement may provide that a
46   membership interest may be assigned prior to the
47   dissolution and winding up of the limited liability
48   company.
49     Sec. ___.  NEW SECTION.  490A.705A  CLASSES OF
50   MANAGERS AND VOTING.

Page  14

 1     1.  An operating agreement may provide for classes
 2   or groups of managers having such relative rights,
 3   powers, and duties as the operating agreement may
 4   provide, and may make provision for the future
 5   creation of additional classes or groups of managers
 6   having such relative rights, powers, and duties as may
 7   from time to time be established, including rights,
 8   powers, and duties senior to existing classes and
 9   groups of managers.  An operating agreement may
10   provide for taking action, including the amendment of
11   the operating agreement, without the vote or approval
12   of any manager or class or group of managers,
13   including an action to create a class or group of
14   membership interests that was not previously
15   outstanding.
16     2.  An operating agreement may grant to all or
17   certain identified managers or a specified class or
18   group of managers the right to vote on any matter,
19   separately or with all or any class or group of
20   managers or members.  Voting by managers may be on a
21   per capita, number, financial interest, class, group,
22   or any other basis.
23     3.  An operating agreement which grants a right to
24   vote may set forth provisions relating to notice of
25   the time, place, or purpose of any meeting at which
26   any matter is to be voted on by any manager or class
27   or group of managers, waiver of any such notice,
28   action by consent without a meeting, the establishment
29   of a record date, quorum requirements, voting in
30   person or by proxy, or any other matter with respect
31   to the exercise of any such right to vote.
32     Sec. ___.  Section 490A.709, subsection 2,
33   unnumbered paragraph 1, Code 1997, is amended to read
34   as follows:
35     Each member has the right for any purpose
36   reasonably related to the member's interest as a
37   member of the limited liability company, upon
38   reasonable request and subject to reasonable standards
39   as may be set forth in an operating agreement, to do
40   any of the following:
41     Sec. ___.  NEW SECTION.  490A.710  DELEGATION OF
42   RIGHTS AND POWERS TO MANAGE.
43     Unless otherwise provided in the operating
44   agreement, a member or manager of a limited liability
45   company may delegate to one or more other persons the
46   member's or manager's rights and powers to manage and
47   control the business and affairs of the limited
48   liability company, including to agents and employees
49   of a member or manager of the limited liability
50   company, and to delegate by a management agreement or

Page  15

 1   another agreement with other persons.  Unless
 2   otherwise provided in the operating agreement, such
 3   delegation by a member or manager of a limited
 4   liability company shall not cause the member or
 5   manager to cease to be a member or manager of the
 6   limited liability company.
 7     Sec. ___.  NEW SECTION.  490A.711  CONTRACTUAL
 8   APPRAISAL RIGHTS.
 9     An operating agreement or an agreement of merger
10   may provide that contractual appraisal rights with
11   respect to a membership interest or another interest
12   in a limited liability company are available for any
13   class or group of members or membership interests in
14   connection with an amendment of an operating
15   agreement, a merger in which the limited liability
16   company is a constituent party to the merger, or the
17   sale of all or substantially all of the limited
18   liability company's assets.  The district court of the
19   county in which the limited liability company has its
20   principal place of business has jurisdiction to hear
21   and determine any matter relating to such appraisal
22   rights.
23     Sec. ___.  NEW SECTION.  490A.712  CESSATION OF
24   MEMBERSHIP.
25     A person ceases to be a member of a limited
26   liability company upon the occurrence of any of the
27   following events:
28     1.  The person withdraws or resigns from the
29   limited liability company.
30     2.  The person is removed as a member pursuant to
31   the operating agreement.
32     3.  Unless otherwise provided in the operating
33   agreement or with the consent of all other members,
34   the person does any of the following:
35     a.  Makes an assignment for the benefit of
36   creditors.
37     b.  Files a voluntary petition in bankruptcy.
38     c.  Is adjudged bankrupt or insolvent or has
39   entered against the person an order for relief in any
40   bankruptcy or insolvency proceeding.
41     d.  Files a petition or answer seeking for that
42   person any reorganization, arrangement, composition,
43   readjustment, liquidation, dissolution, or similar
44   relief under any statute or rule.
45     e.  Seeks, consents to, or acquiesces in the
46   appointment of a trustee, receiver, or liquidator for
47   the member or for all or any substantial part of the
48   member's properties.
49     f.  Files an answer or other pleading admitting or
50   failing to contest the material allegations of a

Page  16

 1   petition filed against the person in any proceeding
 2   described in this subsection.
 3     4.  Unless otherwise provided in the operating
 4   agreement, or with the consent of all other members,
 5   the continuation of any proceeding against the person
 6   seeking reorganization, arrangement, composition,
 7   readjustment, liquidation, dissolution, or similar
 8   relief under any statute or rule for one hundred
 9   twenty days after the commencement of such proceeding,
10   or the appointment of a trustee, receiver, or
11   liquidator for the member or for all or any
12   substantial part of the member's properties without
13   the member's agreement or acquiescence, which
14   appointment is not vacated or stayed for one hundred
15   twenty days or, if the appointment is stayed, for one
16   hundred twenty days after the expiration of the stay
17   during which period the appointment is not vacated.
18     5.  Unless otherwise provided in the operating
19   agreement or with the consent of all other members, in
20   the case of a member who is an individual, the
21   individual's death or adjudication by a court of
22   competent jurisdiction as incompetent to manage the
23   individual's person or property.
24     6.  Unless otherwise provided in the operating
25   agreement or with the consent of all other members, in
26   the case of a member who is acting as a member by
27   virtue of being a trustee of a trust, the termination
28   of the trust.
29     7.  Unless otherwise provided in the operating
30   agreement or with the consent of all other members, in
31   the case of a member that is a partnership or another
32   limited liability company, the dissolution and
33   commencement of winding up of the partnership or
34   limited liability company.
35     8.  Unless otherwise provided in the operating
36   agreement or with the consent of all other members, in
37   the case of a member that is a corporation, the
38   dissolution of the corporation or the revocation of
39   its articles of incorporation.
40     9.  Unless otherwise provided in the operating
41   agreement or with the consent of all other members, in
42   the case of a member that is an estate, the
43   distribution by the fiduciary of the estate's entire
44   interest in the limited liability company.
45     Sec. ___.  Section 490A.801, Code 1997, is amended
46   by adding the following new subsection:
47     NEW SUBSECTION.  4.  An operating agreement may
48   provide that the interest of any member who fails to
49   make a contribution that the member is obligated to
50   make is subject to specified penalties for, or

Page  17

 1   specified consequences of, such failure.  The penalty
 2   or consequence may take the form of reducing or
 3   eliminating the defaulting member's proportionate
 4   interest in a limited liability company, subordinating
 5   the member's membership interest to that of a
 6   nondefaulting member, a forced sale of the member's
 7   membership interest, forfeiture of the member's
 8   membership interest, the lending by other members of
 9   the amount necessary to meet the member's commitment,
10   a fixing of the value of the member's membership
11   interest by appraisal or by formula and redemption, or
12   sale of the member's membership interest at such value
13   or other penalty or consequence.
14     Sec. ___.  NEW SECTION.  490A.809  RIGHT TO
15   DISTRIBUTION.
16     Subject to sections 490A.807 and 490A.1304, and
17   unless otherwise provided in an operating agreement,
18   at the time a member becomes entitled to receive a
19   distribution, the member has the status of, and is
20   entitled to all remedies available to, a creditor of
21   the limited liability company with respect to the
22   distribution.  An operating agreement may provide for
23   the establishment of a record date with respect to
24   allocations and distributions by a limited liability
25   company.
26     Sec. ___.  Section 490A.902, unnumbered paragraph
27   1, Code 1997, is amended to read as follows:
28     Unless otherwise provided in the articles of
29   organization or an operating agreement, a membership
30   interest in a limited liability company is assignable
31   in whole or in part.  An assignment of an interest in
32   a limited liability company does not of itself
33   dissolve the limited liability company.  An Except
as
34   provided in the articles of organization or an
35   operating agreement, an assignment does not entitle
36   the assignee to participate in the management and
37   affairs of the limited liability company or to become
38   or to exercise any rights of a member.  Such Except
as
39   provided in the articles of organization or an
40   operating agreement, an assignment entitles the
41   assignee to receive, to the extent assigned, only the
42   distribution to which the assignor would be entitled.
43   Except as provided in the articles of organization or
44   an operating agreement, a member ceases to be a member
45   upon assignment of the member's entire membership
46   interest.
47     Sec. ___.  Section 490A.1301, subsection 3, Code
48   1997, is amended by striking the subsection."
49     2.  Title page, line 1, by inserting after the
50   word "to" the following:  "the organization and

Page  18

 1   operation of certain legal entities, including".
 2     3.  Title page, line 5, by inserting after the
 3   word "partnerships," the following:  "and including
 4   limited liability companies and the conversion of
 5   other entities to limited liability companies, and the
 6   rights, duties, obligations, and interests of members
 7   and managers with respect to such companies,".
 8     4.  By renumbering as necessary.
The motion prevailed and the House concurred in the Senate
amendment H-1962.
Dinkla of Guthrie moved that the bill, as 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?" (H.F. 642)

The ayes were, 96:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand          	Brauns         	Brunkhorst     	Bukta         
	Burnett        	Carroll        	Cataldo        	Chapman       
	Chiodo	Churchill      	Cohoon                	Cormack       
	Dinkla         	Dix            	Dolecheck      	Dotzler       
	Drake          	Drees          	Eddie          	Falck	Fallon   
     	Foege          	Frevert        	Garman         	Gipp      
    	Greig          	Greiner        	Gries          	Grundberg  
   	Hahn           	Hansen         	Heaton         	Holmes      
  	Holveck        	Houser         	Huseman        	Huser        
 	Jacobs         	Jenkins        	Jochum         	Kinzer        
	Klemme         	Koenigs        	Kreiman        	Kremer        
	Lamberti       	Larkin         	Larson         	Lord          
	Martin         	Mascher        	May            	Mertz         
	Metcalf        	Meyer          	Millage        	Moreland	Mundie
        	Murphy         	Myers          	O'Brien       
	Osterhaus      	Rants          	Rayhons       
	Reynolds-Knight	Richardson     	Scherrman      	Schrader      
	Shoultz        	Siegrist       	Sukup          	Taylor        
	Teig           	Thomas         	Thomson        	Tyrrell       
	Van Fossen     	Van Maanen     	Vande Hoef     	Veenstra      
	Warnstadt      	Weidman        	Weigel         	Welter        
	Whitead        	Wise           	Witt           	Mr. Speaker
			  Corbett

The nays were, none.

Absent or not voting, 4:

Connors        	Doderer	Ford	Nelson         	
The bill having received a constitutional majority was declared
to have passed the House and the title, as amended, was agreed
to.
ADOPTION OF HOUSE RESOLUTION 12
Garman of Story called up for consideration House Resolution 12,
a resolution honoring Mr. Harry Cannon upon his retirement as
the Deputy Director for Prison Industries of the Iowa Department
of Corrections, and moved its adoption.
The motion prevailed and the resolution was adopted.
Garman of Story introduced Mr. Harry Cannon and his wife,
Madalene.
The House rose in appreciation.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that House File 642 be immediately messaged to the Senate.
ADOPTION OF HOUSE CONCURRENT RESOLUTION 22
Dinkla of Guthrie called up for consideration House Concurent
Resolution 22, a concurrent resolution requesting the
Legislative Council to establish a task force to study Iowa's
system of state and local taxation and requiring reporting by
certain dates, amended by the Senate, and moved that the House
concur in the following Senate amendment H-1961:

H-1961

 1     Amend House Concurrent Resolution 22, as amended,
 2   passed, and reprinted by the House, as follows:
 3     1.  Page 2, line 30, by striking the word "shall"
 4   and inserting the following:  "may".
 5     2.  Page 3, line 29, by striking the word "force."
 6   and inserting the following:  "force; and"
 7     3.  By striking page 3, line 30 through page 4,
 8   line 6.
 9     4.  Page 4, line 14, by inserting after the word
10   "shall" the following:  "present a progress".
11     5.  Page 4, line 16, by inserting after the word
12   "convening" the following:  "and shall present its
13   final report along with any recommendations to the
14   General Assembly meeting in 1999 upon its convening".
15     6.  Page 4, by inserting after line 16 the
16   following:
17     "BE IT FURTHER RESOLVED, That recommendations
18   contained in the progress report prepared by the task
19   force or contained in the final report prepared by the
20   task force shall be drafted as study bills by the
21   legislative service bureau for consideration by the
22   General Assembly."
23     7.  By renumbering, relettering, or redesignating
24   and correcting internal references as necessary.
The motion prevailed and the House concurred in the Senate
amendment H-1961.
Dinkla of Guthrie moved the adoption of House Concurrent
Resolution 22.
The motion prevailed and the resolution was adopted.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that House Concurrent Resolution 22 be immediately messaged to
the Senate.
RULES SUSPENDED
Siegrist of Pottawattamie asked and received unanimous consent
to suspend the rules for the immediate consideration of Senate
Files 544, 553 and 541.

Ways and Means Calendar
Senate File 544, a bill for an act relating to the designation
of unincorporated areas of a county as rural improvement zones,
providing for improvement projects in the zones, authorizing the
issuance of certificates of indebtedness, and payment of the
indebtedness by tax increment financing and an annual standby
tax by such zones, with report of committee recommending
passage, was taken up for consideration.
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.
Under the provision of Rule 76, Jacobs of Polk refrained from
voting.
On the question "Shall the bill pass?" (S.F. 544)

The ayes were, 86:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand          	Brauns         	Brunkhorst     	Bukta         
	Burnett        	Carroll        	Cataldo        	Chapman       
	Cohoon                	Cormack        	Dinkla         	Dix     
      	Doderer        	Dolecheck      	Drake          	Eddie    
     	Foege          	Ford           	Frevert        	Gipp      
    	Greig          	Greiner        	Gries          	Grundberg  
   	Hahn           	Hansen         	Heaton         	Holmes      
  	Houser         	Huseman        	Huser          	Jenkins      
 	Jochum         	Kinzer         	Klemme         	Koenigs       
	Kremer         	Lamberti       	Larkin         	Larson        
	Lord           	Martin         	Mascher        	May           
	Mertz          	Metcalf        	Meyer          	Millage       
	Moreland       	Mundie         	Murphy	Myers          	
O'Brien        	Osterhaus      	Rants          	Rayhons       
	Reynolds-Knight	Richardson     	Scherrman      	Siegrist      
	Sukup          	Taylor         	Teig           	Thomas        
	Thomson        	Tyrrell        	Van Fossen     	Van Maanen    
	Vande Hoef     	Veenstra       	Warnstadt      	Weidman       
	Weigel         	Welter         	Whitead        	Wise          
	Witt           	Mr. Speaker
	  Corbett

The nays were, 10:
Chiodo         	Dotzler        	Drees          	Falck         
	Fallon         	Garman         	Holveck        	Kreiman       
	Schrader       	Shoultz        	

Absent or not voting, 4:
Churchill      	Connors        	Jacobs	Nelson         	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Regular Calendar
Senate File 541, a bill for an act relating to child day care
provisions involving group day care homes and establishing a
child care home pilot project, with report of committee
recommending amendment and passage, was taken up for
consideration.
Veenstra of Sioux in the chair at 10:00 a.m.
Kremer of Buchanan offered the following amendment H-1956 filed
by the committee on human resources and moved its adoption:

H-1956

 1     Amend Senate File 541, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  Page 2, line 7, by striking the word "six" and
 4   inserting the following:  "four".
 5     2.  Page 3, line 15, by striking the word "may"
 6   and inserting the following:  "shall".
 7     3.  Page 7, line 15, by striking the word "six"
 8   and inserting the following:  "four".
The committee amendment H-1956 was adopted.
Kremer of Buchanan 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. 541)
The ayes were, 97:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand          	Brauns         	Brunkhorst     	Bukta         
	Burnett        	Carroll        	Cataldo        	Chapman       
	Chiodo         	Churchill	Cohoon         	Corbett, Spkr.  
	Cormack        	Dinkla         	Dix            	Doderer       
	Dolecheck      	Dotzler        	Drake          	Drees         
	Eddie          	Falck          	Fallon         	Foege         
	Ford           	Frevert        	Garman         	Gipp          
	Greig          	Greiner        	Gries          	Grundberg     
	Hahn           	Hansen         	Heaton         	Holmes        
	Holveck        	Houser	Huseman        	Huser          	Jacobs  
      	Jenkins        	Jochum         	Kinzer         	Klemme   
     	Koenigs        	Kreiman        	Kremer         	Lamberti  
    	Larkin         	Larson         	Lord           	Martin     
   	Mascher        	May            	Mertz          	Metcalf     
  	Meyer          	Millage        	Moreland       	Mundie       
 	Murphy         	Myers          	O'Brien       
	Osterhaus	Rants          	Rayhons       
	Reynolds-Knight	Richardson     	Scherrman     
	Schrader	Shoultz        	Siegrist       	Sukup          	Taylor
        	Teig           	Thomas         	Thomson        	Tyrrell
       	Van Maanen     	Vande Hoef          	Warnstadt     
	Weidman        	Weigel         	Welter         	Whitead       
	Wise           	Witt           	Veenstra,
  Presiding

The nays were, none.

Absent or not voting, 3:

Connors         	Nelson	Van Fossen     	
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Ways and Means Calendar
Senate File 553, a bill for an act relating to the tax treatment
of financial institutions and their shareholders which have made
an election under subchapter S of the Internal Revenue Code and
including a retroactive applicability date provision, with
report of committee recommending amendment and passage, was
taken up for consideration.
Larson of Linn offered the following amendment H-1974 filed by
the committee on ways and means and moved its adoption:

H-1974

 1     Amend Senate File 553, as passed by the Senate, as
 2   follows:
 3     1.  Page 1, by striking lines 8 through 11 and
 4   inserting the following:  "amount of the tax credit by
 5   recomputing the amount of tax under this division by
 6   reducing the taxable income of the taxpayer by the
 7   taxpayer's pro rata share of the items of income and
 8   expense of the financial institution and subtracting
 9   the credits allowed under section 422.12.  This
10   recomputed tax shall be subtracted from the amount of
11   tax computed under this division after the deduction
12   for".
A non-record roll call was requested.
The ayes were 45, nays 34.
The committee amendment H-1974 was adopted.
Larson of Linn moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was
read a last time.
On the question "Shall the bill pass?" (S.F. 553)

The ayes were, 98:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand          	Brauns	Brunkhorst     	Bukta          	Burnett 
      	Carroll        	Cataldo        	Chapman        	Chiodo   
     	Churchill      	Cohoon         	Corbett, Spkr.   	Cormack 
      	Dinkla         	Dix            	Doderer        	Dolecheck
     	Dotzler        	Drake          	Drees          	Eddie     
    	Falck	Fallon         	Foege          	Ford          
	Frevert        	Garman         	Gipp           	Greig         
	Greiner        	Gries          	Grundberg      	Hahn          
	Hansen         	Heaton         	Holmes         	Holveck       
	Houser         	Huseman        	Huser          	Jacobs        
	Jenkins        	Jochum         	Kinzer         	Klemme        
	Koenigs        	Kreiman        	Kremer         	Lamberti      
	Larkin         	Larson         	Lord           	Martin        
	Mascher        	May            	Mertz          	Metcalf       
	Meyer          	Millage        	Moreland       	Mundie        
	Murphy         	Myers          	O'Brien        	Osterhaus     
	Rants          	Rayhons        	Reynolds-Knight	Richardson    
	Scherrman      	Schrader       	Shoultz        	Siegrist	Sukup 
        	Taylor         	Teig           	Thomas         	Thomson
       	Tyrrell        	Van Fossen     	Van Maanen     	Vande
Hoef           	Warnstadt      	Weidman        	Weigel        
	Welter         	Whitead        	Wise           	Witt          
	Veenstra,
	  Presiding

The nays were, none.
Absent or not voting, 2:

Connors        	Nelson
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
IMMEDIATE MESSAGES
Siegrist of Pottawattamie asked and received unanimous consent
that the following bills be immediately messaged to the Senate:
Senate Files 544, 553 and 541.
COMMITTEE RECOMMENDATION
MR. SPEAKER: The Chief Clerk of the House respectfully reports
that the following committee recommendation has been received
and is on file in the office of the Chief Clerk.
ELIZABETH A. ISAACSON
Chief Clerk of the House
COMMITTEE ON ADMINISTRATION AND RULES
Senate Concurrent Resolution 1, a concurrent resolution relating
to the compensation of chaplains, officers and employees of the
seventy-seventh general assembly.
Fiscal Note is not required.
Recommended Amend and Do Pass with amendment H-1976 April 29,
1997.
RULES SUSPENDED
Siegrist of Pottawattamie asked and received unanimous consent
to suspend the rules for the immediate consideration of Senate
Concurrent Resolution 1.
ADOPTION OF SENATE CONCURRENT RESOLUTION 1
Rants of Woodbury called up for consideration Senate Concurrent
Resolution 1, a concurrent resolution relating to the
compensation of chaplains, officers and employees of the
seventy-seventh general assembly, as follows:

 1                    SENATE CONCURRENT RESOLUTION 1
 2         BY  COMMITTEE ON RULES AND ADMINISTRATION
 3  A concurrent resolution relating to the compensation
 4   of chaplains, officers and employees of the
 5   seventy-sixth seventy-seventh general assembly.
 6     Whereas, section 2.11 of the Code provides that
 7  "The compensation of the chaplains, officers, and
 8  employees of the general assembly shall be fixed by
 9  joint action of the house and senate by resolution at
10  the opening of each session, or as soon thereafter as
11  conveniently can be done", Now Therefore,
12     Be It Resolved By The Senate, The House Concurring,
13  That the compensation for the following officers for
14  the period commencing January 9, 1995 13, 1997 and
15  ending January 13, 1997 11, 1999, shall be within the
16  following ranges:
17     Secretary of the Senate and Chief
18      Clerk of the House................. $44,373 to
$76,580
19	 $46,847 to $80,849
20  Within the indicated ranges the exact compensation
21  shall be set or adjusted for the senate officers by
22  the senate rules and administration committee and for
23  the house officers by the house administration and
24  rules committee.  The committees shall report the
25  exact compensation assigned to each position on the
26  next legislative day, or, if such action is during the
27  interim, on the first day the senate or house shall
28  convene.  Any action by the senate or house to
29  disapprove or amend the report shall be effective the
30  day after the action.

Page 2  

 1     Be It Further Resolved, That the compensation of
 2  the employees of the seventy-sixth seventy-seventh
 3  general assembly is set, effective from January 9,
 4  1995 13, 1997, until January 13, 1997 11,
1999, in
 5  accordance with the following salary schedule:
 6  #8                 #9                #10               #11
              #12
 7  $12,022.40   $12,625.60  $13,270.40   $13,936.00  
$14,643.20
 8             5.78              6.07             6.38        
     6.70              7.04
 9  
10  #13              #14              #15               #16   
           #17
11  $15,350.40  $16,161.60  $17,014.40   $17,867.20  
$18,678.40
12             7.38             7.77             8.18         
    8.59              8.98
13  
14  #18              #19              #20               #21   
           #22
15  $19,572.80  $20,488.00  $21,528.00   $22,526.40  
$23,628.80
16             9.41             9.85           10.35          
 10.83            11.36
17  
18  #23              #24              #25               #26   
           #27
19  $24,772.80  $25,916.80  $27,206.40   $28,475.20  
$29,848.00
20           11.91           12.46           13.08           
13.69            14.35
21
22  #28              #29              #30               #31   
           #32
23  $31,304.00  $32,801.60  $34,361.60   $36,046.40  
$37,731.20
24           15.05           15.77           16.52           
17.33            18.14
25  
26  #33              #34              #35               #36   
           #37
27  $39,603.20  $41,454.40  $43,430.40   $45,531.20  
$47,736.00
28           19.04           19.93           20.88           
21.89            22.95
29  
30  #38             #39              #40               #41    
          #42

Page   3

 1  $50,003.20  $52,416.00  $54,974.40   $57,595.20  
$60,382.40
 2           24.04           25.20           26.43           
27.69            29.03
 3
 4  #8                #9                #10               #11 
             #12
 5  $12,688.00  $13,332.80  $13,998.40   $14,705.60  
$15,454.40
 6             6.10             6.41             6.73         
    7.07              7.43
 7  
 8  #13              #14              #15               #16   
           #17
 9  $16,203.20  $17,056.00  $17,971.20   $18,865.60  
$19,718.40
10            7.79             8.20             8.64          
   9.07              9.48
11  
12  #18             #19              #20               #21    
          #22
13  $20,654.40 $21,632.00  $22,734.40   $23,774.40  
$24,939.20
14             9.93          10.40           10.93           
11.43            11.99
15  
16  #23             #24              #25               #26    
          #27
17  $26,166.40 $27,352.00  $28,724.80   $30,056.00  
$31,512.00
18           12.58          13.15           13.81           
14.45            15.15
19  
20  #28             #29              #30               #31    
          #32
21  $33,051.20 $34,632.00  $36,296.00   $38,064.00  
$39,832.00
22           15.89          16.65           17.45           
18.30            19.15
23  
24  #33             #34              #35               #36    
          #37
25  $41,808.00 $43,763.20  $45,864.00   $48,068.80  
$50,398.40
26           20.10          21.04           22.05           
23.11            24.23
27  
28  #38             #39              #40               #41    
          #42
29  $52,790.40 $55,348.80  $58,032.00   $60,798.40  
$63,752.00
30           25.38          26.61           27.90           
29.23            30.65

Page   4

 1  
 2  #43              #44              #45               #46   
           #47
 3  $66,747.20  $70,012.80  $73,361.60   $76,856.00  
$80,537.60
 4           32.09           33.66           35.27           
36.95            38.72
 5     In this schedule, each numbered block shall be the
 6  yearly and hourly compensation for the pay grade of
 7  the number heading the block.  Within each grade there
 8  shall be six steps numbered "1" through "6".  In the
 9  above schedule the steps for all grades are determined
10  in the following manner.  Each numbered block is
11  counted as the "1" step for that grade.  The next
12  higher block is counted as the "2" step; the next
13  higher block is the "3" step; the next higher block is
14  the ""4";" step; the next higher block is the "5" step;
15  the next higher block is the "6" step.
16     All employees shall be available to work daily
17  until completion of the senate's and house of
18  representatives' business.  The employee's division
19  supervisor shall schedule all employees' working hours
20  to, as far as possible, maintain regular working
21  hours.
22     All employees, other than those designated "part-
23  time" shall be compensated for 40 hours of work in a
24  one-week pay period.  Secretaries to senators and
25  representatives are presumed to have 40 hours of work
26  each week the legislature is in session and shall be
27  paid only on that basis.  Except for the personnel
28  designated to the contrary in this resolution,
29  employees who are required to work in excess of 40
30  hours in a one-week pay period shall either be

Page   5

 1  compensated at a rate of pay equal to one and one-half
 2  times the hourly pay provided in this resolution or
 3  allowed compensatory time off at a rate of one and
 4  one-half hours for each hour of overtime.
 5     The following personnel shall not be paid an
 6  overtime premium:
 7	Secretary of the Senate
 8	Chief Clerk of the House
 9	Assistant Secretary of the Senate
10	Assistant Chief Clerk of the House
11	Senate Legal Counsel
12	House Legal Counsel
13	Finance Officer
14	Senior Finance Officer
15	Senior Journal Editor
16	All Administrative Assistants
17	All Research Analysts
18	All Research Assistants
19	All Secretaries to Senators and Representatives
20	All Caucus Staff Directors
21	All Senior Caucus Secretaries
22	Administrative, Executive, and Confidential
23         Secretaries to President, Speaker, Leader or
24         Secretary of Senate or Chief Clerk of House
25     This list may be modified pursuant to the annual
26  review authorized in this resolution.
27     Beginning with the convening of the Seventy-seventh
28  General Assembly, all caucus secretaries shall not be
29  paid an overtime premium.
30     Be It Further Resolved, That part-time employees

Page   6

 1  shall be compensated at the scheduled hourly rate for
 2  their pay grade and step.
 3     Be It Further Resolved, That compensatory time off
 4  shall be granted to employees not eligible for the
 5  overtime premium in a uniform manner for all
 6  legislative employees as determined by the legislative
 7  council.
 8     Be It Further Resolved, That in the event the
 9  promulgated by the personnel commission pursuant to
10  salary schedule for employees of the State of Iowa as
11  section 19A.9, subsection 2, Code 1995 1997, is
12  revised upward at any time during the seventy-sixth
13  seventy-seventh general assembly, such revised
14  schedule shall simultaneously be adopted for the
15  compensation of the employees of the seventy-sixth
16  seventy-seventh general assembly assigned a grade by
17  this resolution.  The pay ranges of those positions
18  specifically listed on page one of this resolution
19  shall be automatically adjusted to reflect any cost of
20  living increases granted to those employees not
21  included in the collective bargaining agreements made
22  final under chapter 20 of the Code and increases
23  provided by the legislative council for agency
24  directors.
25     Be It Further Resolved, That adjustments in the
26  positions and compensation listed in this resolution
27  may be made through an annual interim review of all
28  legislative employees for internal equity and to
29  assure compliance with appropriate legal standards for
30  granting of overtime and compensatory time off.  Such

Page   7

 1  review shall be conducted by a legislative committee
 2  made up of members of the service committee of
 3  legislative council and the appropriate salary
 4  subcommittees of the senate and house.  Only one such
 5  review may be done in any fiscal year and adjustments
 6  suggested must be approved by the appropriate hiring
 7  body.
 8     Be It Further Resolved, That the employees of the
 9  seventy-sixth seventy-seventh general assembly be
10  placed in the following pay grades:
11                    EMPLOYEES OF THE HOUSE
12  Sr. Assistant Chief Clerk of the House	Grade 41
13  Assistant Chief Clerk of the House III	Grade 38
14  Assistant Chief Clerk of the House II	Grade 35
15  Assistant Chief Clerk of the House I	 Grade 32
16  Legal Counsel II	Grade 35
17  Legal Counsel I	Grade 32
18  Legal Counsel	Grade 30
19  Sr. Caucus Staff Director	Grade 41
20  Caucus Staff Director	Grade 38
21  Administrative Assistant to Leader
22      or Speaker	Grade 27
23  Administrative Assistant I to Leader
24      or Speaker	Grade 29
25  Administrative Assistant II to Leader
26      or Speaker	Grade 32
27  Administrative Assistant III to Leader,
28      or Speaker, or Speaker Pro Tempore	Grade 35
29  Sr. Administrative Assistant to
30      Leader or Speaker	Grade 38

Page   8

 1  Research Assistant	Grade 24
 2  Legislative Research Analyst	Grade 27
 3  Legislative Research Analyst I	Grade 29
 4  Legislative Research Analyst II	Grade 32
 5  Legislative Research Analyst III	Grade 35
 6  Sr. Legislative Research Analyst	Grade 38
 7  Secretary to Leader or Speaker	Grade 19
 8  Caucus Secretary	Grade 21
 9  Senior Caucus Secretary	Grade 24
10  Administrative Secretary to Leader,
11      Speaker, or Chief Clerk	Grade 21
12  Executive Secretary to Leader,
13      Speaker or Chief Clerk	Grade 24
14  Confidential Secretary to Leader,
15      Speaker, or Chief Clerk	Grade 27
16  Clerk to Chief Clerk	Grade 16
17  Supervisor of Secretaries	Grade 21
18  Supervisor of Secretaries I	Grade 24
19  Supervisor of Secretaries II	Grade 27
20  Senior Editor	Grade 30
21  Editor II	Grade 25
22  Editor I	Grade 22
23  Assistant Editor	Grade 19
24  Compositor/Desk Top Specialist	Grade 17
25  Sr. Text Processor	Grade 25
26  Text Processor II	Grade 22
27  Text Processor I	Grade 19
28  Senior Finance Officer	Grade 31
29  Finance Officer II	Grade 27
30  Finance Officer I	Grade 24

Page   9

 1  Assistant Finance Officer	Grade 21
 2  Recording Clerk II	Grade 24
 3  Recording Clerk I	Grade 21
 4  Assistant Legal Counsel	Grade 27
 5  Engrossing & Enrolling Processor	Grade 27
 6  Assistant to the Legal Counsel	Grade 19
 7  Indexer II	Grade 25
 8  Indexer I	Grade 22
 9  Indexing Assistant	Grade 19
10  Supply Clerk	Grade 16
11  Switchboard Operator	Grade 14
12  Legislative Secretary	Grade 15
13  Legislative Committee Secretary	Grade 17
14  Bill Clerk	Grade 14
15  Assistant Bill Clerk	Grade 12
16  Postmaster	Grade 12
17  Sergeant-at-Arms	Grade 17
18  Assistant Sergeant-at-Arms	Grade 14
19  Chief Doorkeeper	Grade 12
20  Doorkeepers	Grade 11
21  Pages	Minimum Wage
22     Be It Further Resolved, That authorization for the
23  position of Administrative Assistant III to Speaker
24  Pro Tempore ends July 1, 1996.
25                   EMPLOYEES OF THE SENATE
26  Sr. Assistant Secretary of the Senate	Grade 41
27  Assistant Secretary of the Senate III	Grade 38
28  Assistant Secretary of the Senate II	Grade 35
29  Assistant Secretary of the Senate I	Grade 32
30  Legal Counsel II	Grade 35

Page  10

 1  Legal Counsel I	Grade 32
 2  Legal Counsel	Grade 30
 3  Sr. Caucus Staff Director	Grade 41
 4  Caucus Staff Director	Grade 38
 5  Administrative Assistant to Leader
 6      or President	Grade 27
 7  Administrative Assistant I to Leader
 8      or President	Grade 29
 9  Administrative Assistant II to Leader
10      or President	Grade 32
11  Administrative Assistant III to Leader
12      or President	Grade 35
13  Sr. Administrative Assistant to
14      Leader or President	Grade 38
15  Research Assistant	Grade 24
16  Legislative Research Analyst	Grade 27
17  Legislative Research Analyst I	Grade 29
18  Legislative Research Analyst II	Grade 32
19  Legislative Research Analyst III	Grade 35
20  Sr. Legislative Research Analyst	Grade 38
21  Caucus Secretary	Grade 21
22  Senior Caucus Secretary	Grade 24
23  Secretary to Leader or President	Grade 19
24  Administrative Secretary to Leader, President,
25  President Pro Tempore, or
26       Secretary of the Senate	Grade 21
27  Executive Secretary to Leader, President,
28      or Secretary of the Senate	Grade 24
29  Confidential Secretary to Leader, President,
30      or Secretary of the Senate	Grade 27
Page  11

 1  Supervisor of Secretaries	Grade 21
 2  Supervisor of Secretaries I	Grade 24
 3  Supervisor of Secretaries II	Grade 27
 4  Senior Editor	Grade 30
 5  Editor II	Grade 25
 6  Editor I	Grade 22
 7  Assistant Editor	Grade 19
 8  Compositor/Desk Top Specialist	Grade 17
 9  Assistant Legal Counsel	Grade 27
10  Assistant to the Legal Counsel	Grade 19
11  Proofreader	Grade 16
12  Senior Finance Officer	Grade 31
13  Finance Officer II	Grade 27
14  Finance Officer I	Grade 24
15  Assistant Finance Officer	Grade 21
16  Recording Clerk II	Grade 24
17  Recording Clerk I	Grade 21
18  Indexer II	Grade 25
19  Indexer I	Grade 22
20  Indexing Assistant	Grade 19
21  Records and Supply Clerk	Grade 18
22  Switchboard Operator	Grade 14
23  Legislative Secretary	Grade 15
24  Legislative Committee Secretary	Grade 17
25  Bill Clerk	Grade 14
26  Assistant Bill Clerk	Grade 12
27  Postmaster	Grade 12
28  Sergeant-at-Arms	Grade 17
29  Assistant Sergeant-at-Arms	Grade 14
30  Chief Doorkeeper	Grade 12

Page  12

 1  Doorkeepers	Grade 11
 2  Pages	Minimum Wage
 3     Be It Further Resolved, That authorization for the
 4  position of Administrative Secretary to President Pro
 5  Tempore ends July 1, 1996.
 6     Be It Further Resolved, That there shall be four
 7  classes of appointments as employees of the general
 8  assembly:
 9     A "permanent full-time" or "permanent part-time"
10  employee is one who is employed the year around and
11  eligible to receive state benefits.
12     An "exempt full-time" employee is one who is
13  employed for the period of the sessions with
14  extensions post-session and pre-session as scheduled.
15  This class is eligible to receive state benefits with
16  the cost of benefits to the state to be paid by the
17  employee when not on the payroll.
18     A "session-only" employee is one who is employed
19  for only a portion of the year, usually the
20  legislative session.  This class is not eligible for
21  state benefits, except IPERS, and insurance as
22  provided in section 2.40.
23     A "part-time" employee is one who is employed to
24  work less than 40 hours per week.  This class is not
25  eligible for state benefits, except IPERS if eligible.
26     Be It Further Resolved, That the exact
27  classification for individuals in a job series created
28  by this resolution shall be set or changed for senate
29  employees by the senate rules and administration
30  committee and for the house employees by the house

Page  13

 1  administration and rules committee.  The committees
 2  shall base the classification upon the following
 3  factors:
 4     1.  The extent of formal education required of the
 5  position; and,
 6     2.  The extent of the responsibilities to be
 7  assigned to the position; and,
 8     3.  The amount of supervision placed over the
 9  position; and,
10     4.  The number of persons the position is assigned
11  to supervise and skill and responsibilities of those
12  positions supervised.
13     The committees shall report the exact
14  classifications assigned to each individual on the
15  next legislative day, or, if such action is during the
16  interim, on the first day the senate or house shall
17  convene.  Any action by the senate or house to
18  disapprove a report or a portion of a report shall be
19  effective the day after the action.
20     Recommendations for a pay grade for a new position
21  shall be developed in accordance with the factor
22  scores in the comparable worth report.  Beginning in
23  1997 1999, every four years the senate rules and
24  administration committee, the house administration and
25  rules committee, and the legislative council shall
26  review all positions in the legislative branch to
27  assure conformity to comparable worth.
28     Be It Futher Resolved, That a senator or
29  representative may employ a secretary who in the
30  judgment of the senator or representative employing

Page  14

 1  such person, possesses the necessary skills to perform
 2  the duties such senator or representative shall
 3  designate, under the administrative direction, as
 4  appropriate, of the secretary of the senate or the
 5  chief clerk of the house.
 6     Each standing committee chairperson, ethics
 7  committee chairperson, and each appropriations
 8  subcommittee chairperson shall designate a secretary
 9  who is competent to perform the following duties:
10  prepare committee minutes, committee reports, type
11  committee correspondence, maintain committee records,
12  and otherwise assist the committee.  Such duties shall
13  be performed in accordance with standards which shall
14  be provided by the secretary of the senate and chief
15  clerk of the house.  In making the designation,
16  chairpersons shall consider persons for possible
17  designation as the secretary to the committee in the
18  following order:
19     First:  The secretary to the chairperson.
20     Second:  The secretary to the committee's vice-
21  chairperson.
22     Third:  The secretary to any other member of the
23  committee.
24     Fourth:  The secretary to any other member in the
25  same house as the committee.
26     Be It Further Resolved, That a Legal Counsel II
27  shall be a person who has graduated from an accredited
28  school of law and is admitted to practice in Iowa as
29  an Attorney and Counselor at Law and possesses either
30  a Masters of Law degree or has at least two years of

Page  15

 1  legal experience after admission to practice.
 2     A Legal Counsel I shall be a person who has
 3  graduated from an accredited school of law and is
 4  admitted to practice in Iowa as an Attorney and
 5  Counselor at Law.
 6     Be It Further Resolved, That employees of the
 7  general assembly may be eligible for either:
 8     a)  increases in salary grade or step based on
 9  evaluation of their job performance and
10  recommendations of their administrative officers,
11  subject to approval of the senate committee on rules
12  and administration or the house committee on
13  administration and rules, as appropriate, provided,
14  however, that for promotions between classes with a
15  three or more pay grade difference, the employee shall
16  be given a two-step increase in pay or the employee's
17  salary shall be adjusted to the entry level in the
18  grade of the new position, whichever is greater; or
19     b)  mobility within a pay grade at the discretion
20  of the chief clerk of the house upon recommendation by
21  the employee's division supervisor on the part of the
22  house, and the discretion of the employee's division
23  supervisor on the part of the senate, subject to the
24  approval of the house committee on administration and
25  rules or the senate committee on rules and
26  administration, as appropriate _ in accord with the
27  following schedule:
28     (1)  Progression from step "1" to "2" for a newly
29  hired employee - six months of actual employment.
30     (2)  Progression from step "1" to "2" following

Page  16

 1  promotion within a job series - twelve months of
 2  actual employment in that position.
 3     (3)  Progression from step "2" to "3", and step "3"
 4  to "4", and step "4" to "5", and step "5" to "6" -
 5  twelve months of actual employment.
 6     Be It Further Resolved, that in addition to the
 7  steps provided in the preceding paragraph, that
 8  secretaries to senators and representatives who were
 9  employees of the senate or house of representatives
10  during any general assembly prior to January 9, 1989,
11  and who have received certification for passing a
12  typing and shorthand performance examination shall be
13  eligible for two additional steps.
14     Be It Further Resolved, That in addition to the
15  steps provided in the preceding paragraph, that
16  secretaries to senators and representatives shall be
17  eligible for a maximum of three additional grades
18  beyond grade 15, in any combination, as provided in
19  this paragraph:
20     1.  One additional grade for a secretary to a
21  standing committee chair, ethics committee chair or
22  appropriations subcommittee chair who is not the
23  designated committee secretary.
24     2.  One additional grade for a secretary to a vice-
25  chairperson or ranking member of a standing committee,
26  ethics committee or appropriations subcommittee.
27     3.  One additional grade for a secretary to the
28  chairperson of the chaplain's committee.
29     4.  Two additional grades for a secretary to an
30  assistant floor leader or speaker pro tempore or

Page  17

 1  president pro tempore.
 2     5.  One additional grade for a designated committee
 3  secretary who is also the designated committee
 4  secretary for an additional standing committee, ethics
 5  committee, or appropriations subcommittee.
 6     Be It Further Resolved, That in the event the
 7  secretary to the chairperson of the chaplain's
 8  committee is the secretary to the president, speaker,
 9  or the majority or minority leader, such secretary
10  shall receive one additional step a legislative
11  employee designated to assist the chairperson of the
12  chaplain's committee in the committee's duties shall
13  receive one additional step.
14     Be It Further Resolved, That the entrance salary
15  for employees of the general assembly shall be at step
16  1 in the grade of the position held.  Such employee
17  may be hired above the entrance step if possessing
18  outstanding and unusual experience for the position,
19  provided that the entrance is not beyond step 3.  Such
20  employee who is hired above the entrance step shall be
21  mobile above that step in the same period of time as
22  other employees in that same step.  An officer or
23  employee who is moved to another position may be
24  considered for partial or full credit for their
25  experience in the former position in determining the
26  step in the new grade.
27     The entry level for the position of research
28  analyst shall be Legislative Research Analyst, unless
29  extraordinary conditions justify increasing that entry
30  level; however, that entry level may not be increased

Page  18

 1  beyond Legislative Research Analyst I.  A research
 2  analyst must have shown knowledge of legislative rules
 3  and procedures as well as the Code of Iowa to be
 4  considered at any level above a Legislative Research
 5  Analyst.
 6     Be It Further Resolved, That a pay increase for
 7  employees of one step within the pay grade for the
 8  position may be made for exceptionally meritorious
 9  service in addition to step increases provided for in
10  this resolution, at the discretion of the chief clerk
11  upon recommendation by the employee's division
12  supervisor on the part of the house, and upon
13  recommendation by the employee's division supervisor
14  on the part of the senate, and the approval of the
15  senate committee on rules and administration or the
16  house committee on administration and rules.
17  Exceptionally meritorious service pay increases shall
18  be governed by the following:
19     a.  The employee must have served in the position
20  for at least twelve months;
21     b.  Written justification, setting forth in detail
22  the nature of the exceptionally meritorious service
23  rendered, must be submitted to the senate rules and
24  administration committee or house administration and
25  rules committee and approved in advance of granting
26  the pay increase;
27     c.  No more than one exceptionally meritorious
28  service pay increase may be granted in any twelve-
29  month period.
30     d.  Such meritorious service pay increase shall not
Page  19

 1  be granted beyond the six-step maximum for that
 2  position.
 3     Be It Further Resolved, That the senate rules and
 4  administration committee and the house administration
 5  and rules committee shall both hire officers and
 6  employees for their respective bodies and fill any
 7  vacancies which may occur, to be effective at such
 8  time as they shall set.  The committee shall report
 9  the names of those it has hired for the positions
10  specified in this resolution or the filling of any
11  vacancies on the next legislative day or, if such
12  action is during the interim, on the first day the
13  senate or house shall convene.  Any action by the
14  senate or house to amend or disapprove a report or a
15  portion of a report shall be effective the day after
16  the action.
17     The chief clerk of the house shall submit to the
18  house committee on administration and rules and the
19  secretary of the senate shall submit to the senate
20  committee on rules and administration the list of
21  names, or amendments thereto, of employee
22  classifications and recommended pay step for each
23  officer and employee.  Such list shall include
24  recommendations for the pay step for all employees.
25  Each respective committee shall approve or amend the
26  list of recommended classifications and pay steps and
27  publish said list in the journal.
28     Be It Further Resolved, That permanent employees of
29  the general assembly shall receive vacation
30  allowances, sick leave, health and accident insurance,

Page  20

 1  life insurance, and disability income insurance as are
 2  provided for full-time permanent state employees.  The
 3  computations shall be maintained by the finance
 4  officers in each house and coordinated with the
 5  department of revenue and finance.
 6     Be It Further Resolved, That should any employee
 7  have a grievance, the grievance shall be resolved as
 8  provided by procedures determined by the senate rules
 9  and administration committee for senate employees or
10  the house administration and rules committee for house
11  employees.
12     Be It Further Resolved, That the general assembly
13  adopt a resolution similar to this resolution which
14  provides for the compensation and benefits of all
15  legislative central staff agency employees for the
16  seventy-sixth seventy-seventh general assembly.  The
17  resolution shall be adopted as soon as practicable
18  after the convening of the seventy-sixth general
19  assembly, and published in the journals of the senate
20  and house.
21     Be It Further Resolved, That the compensation of
22  chaplains officiating at the opening of the daily
23  sessions of the house of representatives and the
24  senate of the seventy-sixth seventy-seventh general
25  assembly be fixed at ten dollars for each house of the
26  general assembly, and that mileage for chaplains be
27  fixed at the rate of twenty-one twenty-four cents per
28  mile to and from the State Capitol.
Rants of Woodbury offered the following amendment H-1976 filed
by the committee on administration and rules, filed from the
floor and moved its adoption:

H-1976

 1     Amend Senate Concurrent Resolution 1, as passed by
 2   the Senate, as follows:
 3     1.  Page 17, by striking lines 6 through 13 and
 4   inserting the following:
 5     "BE IT FURTHER RESOLVED, That in the event the
 6   secretary to the chairperson of the chaplain's
 7   committee is the secretary to the president, president
 8   pro tempore, speaker, speaker pro tempore, or the
 9   majority or minority leader, such secretary shall
10   receive one additional step."
The committee amendment H-1976 was adopted.
Rants of Woodbury moved the adoption of Senate Concurrent
Resolution 1, as amended.
The motion prevailed and the resolution, as amended, was adopted.
IMMEDIATE MESSAGE
Barry of Harrison asked and received unanimous consent that
Senate Concurrent Resolution 1 be immediately messaged to the
Senate.
SENATE AMENDMENT CONSIDERED
Drake of Pottawattamie called up for consideration House File
266, a bill for an act relating to the administration of state
individual income, corporate, motor fuel, and other taxes;
property taxes, property tax credits and replacement claims;
sales, services, and use taxes; tax refund setoffs; and other
duties of the department and director of revenue and finance;
providing a penalty; and providing a retroactive applicability
date provision, amended by the Senate amendment H-1957 as
follows:
H-1957

 1     Amend House File 266, as passed by the House, as
 2   follows:
 3     1.  By striking everything after the enacting
 4   clause and inserting the following:
 5     "Section 1.  Section 321.19, subsection 1,
 6   unnumbered paragraph 2, Code 1997, is amended to read
 7   as follows:
 8     The department shall furnish, on application, free
 9   of charge, distinguishing plates for vehicles thus
10   exempted, which plates except plates on Iowa highway
11   safety patrol vehicles shall bear the word "official"
12   and the department shall keep a separate record.
13   Registration plates issued for Iowa highway safety
14   patrol vehicles, except unmarked patrol vehicles,
15   shall bear two red stars on a yellow background, one
16   before and one following the registration number on
17   the plate, which registration number shall be the
18   officer's badge number.  Registration plates issued
19   for a county sheriff's patrol vehicles shall display
20   one seven-pointed gold star followed by the letter "S"
21   and the call number of the vehicle.  However, the
22   director of general services or the director of
23   transportation may order the issuance of regular
24   registration plates for any exempted vehicle used by
25   peace officers in the enforcement of the law, persons
26   enforcing chapter 124 and other laws relating to
27   controlled substances, persons in the department of
28   justice, the alcoholic beverages division of the
29   department of commerce, and the department of
30   inspections and appeals, and the department of revenue
31   and finance, who are regularly assigned to conduct
32   investigations which cannot reasonably be conducted
33   with a vehicle displaying "official" state
34   registration plates, and persons in the lottery
35   division of the department of revenue and finance
36   whose regularly assigned duties relating to security
37   or the carrying of lottery tickets cannot reasonably
38   be conducted with a vehicle displaying "official"
39   registration plates.  For purposes of sale of exempted
40   vehicles, the exempted governmental body, upon the
41   sale of the exempted vehicle, may issue for in-transit
42   purposes a pasteboard card bearing the words "Vehicle
43   in Transit", the name of the official body from which
44   the vehicle was purchased, together with the date of
45   the purchase plainly marked in at least one-inch
46   letters, and other information required by the
47   department.  The in-transit card is valid for use only
48   within forty-eight hours after the purchase date as
49   indicated on the bill of sale which shall be carried
50   by the driver.
Page 2  

 1     Sec. 2.  Section 331.427, subsection 1, unnumbered
 2   paragraph 1, Code 1997, is amended to read as follows:
 3     Except as otherwise provided by state law, county
 4   revenues from taxes and other sources for general
 5   county services shall be credited to the general fund
 6   of the county, including revenues received under
 7   sections 101A.3, 101A.7, 123.36, 123.143, 142B.6,
 8   176A.8, 321.105, 321.152, 321G.7, 331.554, subsection
 9   6, 341A.20, 364.3, 368.21, 422.65, 422A.2, 428A.8,
10   430A.3, 433.15, 434.19, 445.57, 453A.35, 458A.21,
11   483A.12, 533.24, 556B.1, 567.10, 583.6, 602.8108,
12   904.908, and 906.17, and chapter 405A, and the
13   following:
14     Sec. 3.  NEW SECTION.  405A.10  FRANCHISE TAX
15   REVENUE ALLOCATION.
16     For the fiscal year beginning July 1, 1997, and
17   each subsequent fiscal year, there is appropriated
18   from the general fund of the state to the department
19   of revenue and finance the sum of eight million eight
20   hundred thousand dollars which shall be paid quarterly
21   on warrants by the director as allocated pursuant to
22   section 422.65.
23     Sec. 4.  Section 421.4, Code 1997, is amended to
24   read as follows:
25     421.4  DEPUTIES.
26     The director may appoint deputy directors and may
27   designate one or more of the deputies as acting
28   director.  A deputy designated to serve in the absence
29   of the director has all of the powers possessed by the
30   director.  The director may employ certified public
31   accountants, engineering and technical assistants, and
32   other employees, or independent contractors necessary
33   to protect the interests of the state and any
34   political subdivision.
35     Sec. 5.  Section 421.17, subsection 21, paragraph
36   b, subparagraph (3), Code 1997, is amended to read as
37   follows:
38     (3)  The child support recovery unit, the foster
39   care recovery unit, and the investigations division of
40   the department of inspections and appeals shall, at
41   least annually, submit to the department of revenue
42   and finance for setoff the debts described in this
43   subsection, which are at least fifty dollars
44   constituting a minimum amount determined by rule of
45   the department of revenue and finance, on a date to be
46   specified by the department of human services and the
47   department of inspections and appeals by rule.
48     Sec. 6.  Section 421.17, Code 1997, is amended by
49   adding the following new subsection:
50     NEW SUBSECTION.  22A.  To develop, modify, or
Page   3

 1   contract with vendors to create or administer systems
 2   or programs which identify nonfilers of returns or
 3   nonpayers of taxes administered by the department.
 4   Fees for services, reimbursements, or other
 5   remuneration paid under contract may be funded from
 6   the amount of tax, penalty, interest, or fees actually
 7   collected and shall be paid only after the amount is
 8   collected.  An amount is appropriated from the amount
 9   of tax, penalty, interest, and fees actually
10   collected, not to exceed the amount collected, which
11   are sufficient to pay for services, reimbursement, or
12   other remuneration pursuant to this subsection.
13   Vendors entering into a contract with the department
14   pursuant to this subsection are subject to the
15   requirements and penalties of the confidentiality laws
16   of this state regarding tax information.
17     Sec. 7.  Section 421.17, subsection 23, paragraphs
18   c, d, and g, Code 1997, are amended to read as
19   follows:
20     c.  The college student aid commission shall, at
21   least annually, submit to the department of revenue
22   and finance for setoff the guaranteed student loan
23   defaults, which are at least fifty dollars
24   constituting a minimum amount set by rule of the
25   department of revenue and finance, on a date or dates
26   to be specified by the college student aid commission
27   by rule.
28     d.  Upon submission of a claim, the department of
29   revenue and finance shall notify the college student
30   aid commission whether the defaulter is entitled to a
31   refund or rebate of at least fifty dollars the
minimum
32   amount set by rule of the department and if so
33   entitled shall notify the commission of the amount of
34   the refund or rebate and of the defaulter's address on
35   the income tax return.  Section 422.72, subsection 1,
36   does not apply to this paragraph.
37     g.  The department of revenue and finance shall,
38   after notice has been sent to the defaulter by the
39   college student aid commission, set off the amount of
40   the default against the defaulter's income tax refund
41   or rebate if both the amount of the default and the
42   refund or rebate are at least fifty dollars
43   constituting a minimum amount set by rule of the
44   department.  The department shall refund any balance
45   of the income tax refund or rebate to the defaulter.
46   The department of revenue and finance shall
47   periodically transfer the amount set off to the
48   college student aid commission.  If the defaulter
49   gives written notice of intent to contest the claim,
50   the commission shall hold the refund or rebate until
Page   4

 1   final disposition of the contested claim pursuant to
 2   chapter 17A or by court judgment.  The commission
 3   shall notify the defaulter in writing upon completion
 4   of setoff.
 5     Sec. 8.  Section 421.17, subsection 25, paragraph
 6   c, Code 1997, is amended to read as follows:
 7     c.  The clerk of the district court, on the first
 8   day of February and August of each calendar year,
 9   shall submit to the department for setoff the debts
10   described in this subsection, which are at least fifty
11   dollars constituting a minimum amount set by rule of
12   the department.
13     Sec. 9.  Section 421.17, subsection 29, paragraphs
14   a and e, Code 1997, are amended to read as follows:
15     a.  For purposes of this subsection unless the
16   context requires otherwise:
17     (1)  "State agency" means a board, commission,
18   department, including the department of revenue and
19   finance, or other administrative office or unit of the
20   state of Iowa or any other state entity reported in
21   the Iowa comprehensive annual financial report.  The
22   term "state agency" does not include the general
23   assembly, the governor, or any political subdivision
24   of the state, or its offices and units.
25     (2)  "Department" means the department of revenue
26   and finance and any other state agency that maintains
27   a separate accounting system and elects to establish a
28   debt collection setoff procedure for collection of
29   debts owed to the state or its agencies.
30     (3)  The term "person" does not include a state
31   agency.
32     e.  Before setoff, the amount of a person's claim
33   on a state agency and the amount of a person's
34   liability to a state agency shall be at least fifty
35   dollars constitute a minimum amount set by rule of
the
36   department.
37     Sec. 10.  NEW SECTION.  421.61  UNCONSTITUTIONALLY
38   WITHHELD TAX BENEFITS.
39     If a provision in the Code grants a tax benefit to
40   taxpayers that is unconstitutionally withheld from
41   other taxpayers as expressed in an Iowa attorney
42   general's opinion based upon decisions of the Iowa
43   supreme court, United States supreme court, or other
44   courts of competent jurisdiction, the tax benefit
45   shall also be granted to the adversely affected
46   taxpayers as if the unconstitutional provision did not
47   exist.
48     Sec. 11.  Section 422.5, subsection 1, paragraph j,
49   subparagraph (2), unnumbered paragraph 1, Code 1997,
50   is amended to read as follows:
Page   5

 1     The tax imposed upon the taxable income of a
 2   resident shareholder in a value-added corporation
 3   which has in effect for the tax year an election under
 4   subchapter S of the Internal Revenue Code and carries
 5   on business within and without the state may be
 6   computed by reducing the amount determined pursuant to
 7   paragraphs "a" through "i" by the amounts of
 8   nonrefundable credits under this division and by
 9   multiplying this resulting amount by a fraction of
10   which the resident's net income allocated to Iowa, as
11   determined in section 422.8, subsection 2, paragraph
12   "b", is the numerator and the resident's total net
13   income computed under section 422.7 is the
14   denominator.  If a resident shareholder has elected to
15   take advantage of this subparagraph, and for the next
16   tax year elects not to take advantage of this
17   subparagraph, the resident shareholder shall not
18   reelect to take advantage of this subparagraph for the
19   three tax years immediately following the first tax
20   year for which the shareholder elected not to take
21   advantage of this subparagraph, unless the director
22   consents to the reelection.  This paragraph
23   subparagraph also applies to individuals who are
24   residents of Iowa for less than the entire tax year.
25     Sec. 12.  Section 422.20, subsection 3, unnumbered
26   paragraph 1, Code 1997, is amended to read as follows:
27     Unless otherwise expressly permitted by section
28   421.17, subsections 21, 22, 22A, 23, 25, 29, and 32,
29   sections 252B.9, 421.19, 421.28, 422.72, and 452A.63,
30   and this section, a tax return, return information, or
31   investigative or audit information shall not be
32   divulged to any person or entity, other than the
33   taxpayer, the department, or internal revenue service
34   for use in a matter unrelated to tax administration.
35     Sec. 13.  Section 422.32, subsection 4, Code 1997,
36   is amended to read as follows:
37     4.  "Corporation" includes joint stock companies,
38   and associations organized for pecuniary profit, and
39   publicly traded partnerships and limited liability
40   companies taxed as corporations under the Internal
41   Revenue Code.
42     Sec. 14.  Section 422.42, subsections 1 and 14,
43   Code 1997, are amended to read as follows:
44     1.  "Agricultural production" includes the
45   production of flowering, ornamental, or vegetable
46   plants in commercial greenhouses or otherwise and
47   production from aquaculture.  "Agricultural products"
48   include flowering, ornamental, or vegetable plants and
49   those products of aquaculture.
50     14.  "Retail sale" or "sale at retail" means the
Page   6

 1   sale to a consumer or to any person for any purpose,
 2   other than for processing, for resale of tangible
 3   personal property or taxable services, or for resale
 4   of tangible personal property in connection with
 5   taxable services; and includes the sale of gas,
 6   electricity, water, and communication service to
 7   retail consumers or users; but does not include
 8   agricultural breeding livestock and domesticated fowl;
 9   and does not include commercial fertilizer,
10   agricultural limestone, herbicide, pesticide,
11   insecticide, food, medication, or agricultural drain
12   tile, including installation of agricultural drain
13   tile, any of which are to be used in disease control,
14   weed control, insect control, or health promotion of
15   plants or livestock produced as part of agricultural
16   production for market; and does not include
17   electricity, steam, or any taxable service when
18   purchased and used in the processing of tangible
19   personal property intended to be sold ultimately at
20   retail.  When used by a manufacturer of food products,
21   carbon dioxide in a liquid, solid, or gaseous form,
22   electricity, steam, and other taxable services are
23   sold for processing when used to produce marketable
24   food products for human consumption, including but not
25   limited to, treatment of material to change its form,
26   context, or condition, in order to produce the food
27   product, maintenance of quality or integrity of the
28   food product, changing or maintenance of temperature
29   levels necessary to avoid spoilage or to hold the food
30   product in marketable condition, maintenance of
31   environmental conditions necessary for the safe or
32   efficient use of machinery and material used to
33   produce the food product, sanitation and quality
34   control activities, formation of packaging, placement
35   into shipping containers, and movement of the material
36   or food product until shipment from the building of
37   manufacture.  Tangible personal property is sold for
38   processing within the meaning of this subsection only
39   when it is intended that the property will, by means
40   of fabrication, compounding, manufacturing, or
41   germination become an integral part of other tangible
42   personal property intended to be sold ultimately at
43   retail; or will be consumed as fuel in creating heat,
44   power, or steam for processing including grain drying,
45   or for providing heat or cooling for livestock
46   buildings or for greenhouses or buildings or parts of
47   buildings dedicated to the production of flowering,
48   ornamental, or vegetable plants intended for sale in
49   the ordinary course of business, or for use in
50   cultivation of agricultural products by aquaculture,
Page   7

 1   or for generating electric current, or in implements
 2   of husbandry engaged in agricultural production; or
 3   the property is a chemical, solvent, sorbent, or
 4   reagent, which is directly used and is consumed,
 5   dissipated, or depleted, in processing personal
 6   property which is intended to be sold ultimately at
 7   retail or consumed in the maintenance or repair of
 8   fabric or clothing, and which may not become a
 9   component or integral part of the finished product.
10   The distribution to the public of free newspapers or
11   shoppers guides is a retail sale for purposes of the
12   processing exemption.
13     Sec. 15.  Section 422.43, Code 1997, is amended by
14   adding the following new subsection:
15     NEW SUBSECTION.  12.  A tax of five percent is
16   imposed upon the gross receipts from the sales of
17   prepaid telephone calling cards and prepaid
18   authorization numbers.  For the purpose of this
19   division, the sales of prepaid telephone calling cards
20   and prepaid authorization numbers are sales of
21   tangible personal property.
22     Sec. 16.  Section 422.45, subsection 7, unnumbered
23   paragraph 1, Code 1997, is amended to read as follows:
24     A private nonprofit educational institution in this
25   state, nonprofit private museum in this state, tax-
26   certifying or tax-levying body or governmental
27   subdivision of the state, including the state board of
28   regents, state department of human services, state
29   department of transportation, a municipally owned
30   solid waste facility which sells all or part of its
31   processed waste as fuel to a municipally owned public
32   utility, and all divisions, boards, commissions,
33   agencies, or instrumentalities of state, federal,
34   county, or municipal government which do not have
35   earnings going to the benefit of an equity investor or
36   stockholder, may make application to the department
37   for the refund of the sales, services, or use tax upon
38   the gross receipts of all sales of goods, wares, or
39   merchandise, or from services rendered, furnished, or
40   performed, to a contractor, used in the fulfillment of
41   a written contract with the state of Iowa, any
42   political subdivision of the state, or a division,
43   board, commission, agency, or instrumentality of the
44   state or a political subdivision, a private nonprofit
45   educational institution in this state, or a nonprofit
46   private museum in this state if the property becomes
47   an integral part of the project under contract and at
48   the completion of the project becomes public property,
49   is devoted to educational uses, or becomes a nonprofit
50   private museum; except goods, wares, or merchandise,
Page   8

 1   or services rendered, furnished, or performed used in
 2   the performance of any contract in connection with the
 3   operation of any municipal utility engaged in selling
 4   gas, electricity, or heat to the general public or in
 5   connection with the operation of a municipal pay
 6   television system; and except goods, wares, and
 7   merchandise used in the performance of a contract for
 8   a "project" under chapter 419 as defined in that
 9   chapter other than goods, wares, or merchandise used
10   in the performance of a contract for a "project" under
11   chapter 419 for which a bond issue was approved by a
12   municipality prior to July 1, 1968, or for which the
13   goods, wares, or merchandise becomes an integral part
14   of the project under contract and at the completion of
15   the project becomes public property or is devoted to
16   educational uses.
17     Sec. 17.  Section 422.45, subsection 18, Code 1997,
18   is amended to read as follows:
19     18.  Gross receipts from the sale of tangible
20   personal property, except vehicles subject to
21   registration, to a person regularly engaged in the
22   business of leasing if the period of the lease is for
23   more than one year five months, or in the consumer
24   rental purchase business if the property is to be
25   utilized in a transaction involving a consumer rental
26   purchase agreement as defined in section 537.3604,
27   subsection 8, and the leasing or consumer rental of
28   the property is subject to taxation under this
29   division.  If tangible personal property exempt under
30   this subsection is made use of for any purpose other
31   than leasing, renting, or consumer rental purchase,
32   the person claiming the exemption under this
33   subsection is liable for the tax that would have been
34   due except for this subsection.  The tax shall be
35   computed upon the original purchase price.  The
36   aggregate of the tax paid on the leasing, renting, or
37   rental purchase of such tangible personal property,
38   not to exceed the amount of the sales tax owed, shall
39   be credited against the tax.  This sales tax is in
40   addition to any sales or use tax that may be imposed
41   as a result of the disposal of such tangible personal
42   property.
43     Sec. 18.  Section 422.45, subsection 39, paragraphs
44   a and c, Code 1997, are amended to read as follows:
45     a.  The implement, machinery, or equipment is
46   directly and primarily used in livestock or dairy
47   production, use in aquaculture production, or in the
48   production of flowering, ornamental, or vegetable
49   plants.
50     c.  The replacement part is essential to any repair
Page   9

 1   or reconstruction necessary to the farm machinery's or
 2   equipment's exempt use in livestock or dairy
 3   production, use in aquaculture production, or in the
 4   production of flowering, ornamental, or vegetable
 5   plants.
 6     Sec. 19.  Section 422.47, subsection 4, paragraph
 7   f, Code 1997, is amended to read as follows:
 8     f.  In this section, "fuel" includes gas,
 9   electricity, water, heat, steam, and any other
10   tangible personal property consumed in creating heat,
11   power, or steam.  In this section, "fuel consumed in
12   processing" means fuel used or disposed of for
13   processing including grain drying, for providing heat
14   or cooling for livestock buildings or for greenhouses
15   or buildings or parts of buildings dedicated to the
16   production of flowering, ornamental, or vegetable
17   plants intended for sale in the ordinary course of
18   business, for use in aquaculture production, or for
19   generating electric current, or in implements of
20   husbandry engaged in agricultural production.  In this
21   subsection, "fuel exemption certificate" means an
22   exemption certificate given by the purchaser under
23   penalty of perjury to assist retailers in properly
24   accounting for nontaxable sales of fuel consumed in
25   processing.  In this subsection, "substantial change"
26   means a change in the use or disposition of tangible
27   personal property and services by the purchaser such
28   that the purchaser pays less than ninety percent of
29   the purchaser's actual sales tax liability.  A change
30   includes a misstatement of facts in an application
31   made pursuant to paragraph "c" or in a fuel exemption
32   certificate.
33     Sec. 20.  Section 422.53, Code 1997, is amended by
34   adding the following new subsection:
35     NEW SUBSECTION.  8.  a.  Except as provided in
36   paragraph "b", purchasers, users, and consumers of
37   tangible personal property or enumerated services
38   taxed pursuant to this division, chapter 423, or
39   chapter 422B, may be authorized, pursuant to rules
40   adopted by the director, to remit tax owed directly to
41   the department instead of the tax being collected and
42   paid by the seller.  To qualify for a direct pay tax
43   permit, the purchaser, user, or consumer must accrue a
44   tax liability of more than four thousand dollars in
45   tax under this division and chapter 423, in a
46   semimonthly period and make deposits and file returns
47   pursuant to section 422.52.  This authority shall not
48   be granted or exercised except upon application to the
49   director and then only after issuance by the director
50   of a direct pay tax permit.
Page  10

 1     b.  The granting of a direct pay tax permit is not
 2   authorized for any of the following:
 3     (1)  Taxes imposed on the sales, furnishing, or
 4   service of gas, electricity, water, heat, pay
 5   television service, and communication service.
 6     (2)  Taxes imposed under sections 423.7 and 423.7A
 7   and chapter 422C.
 8     Sec. 21.  Section 422.65, Code 1997, is amended to
 9   read as follows:
10     422.65  ALLOCATION OF REVENUE.
11     All moneys received from the franchise tax shall be
12   deposited in the state general fund.  Commencing with
13   the fiscal year beginning July 1, 1993, there is
14   appropriated for each fiscal year from the franchise
15   tax money received and deposited in the state general
16   fund the sum of eight million eight hundred thousand
17   dollars which shall be paid quarterly on warrants by
18   the director, after certification by the director,
19   Franchise tax moneys appropriated in section 405A.10
20   are allocated as follows:
21     1.  Sixty percent to the general fund of the city
22   from which the tax is collected.
23     2.  Forty percent to the county from which the tax
24   is collected.
25     If the financial institution maintains one or more
26   offices for the transaction of business, other than
27   its principal office, a portion of its franchise tax
28   shall be allocated to each office, based upon a
29   reasonable measure of the business activity of each
30   office.  The director shall prescribe, for each type
31   of financial institution, a method of measuring the
32   business activity of each office.  Financial
33   institutions shall furnish all necessary information
34   for this purpose at the request of the director.
35     Quarterly, the director shall certify to the
36   treasurer of state the amounts to be paid to each city
37   and county from the state general fund.  All moneys
38   received from the franchise tax are appropriated
39   according to the provisions of this section.
40     Sec. 22.  Section 422.72, subsection 3, unnumbered
41   paragraph 1, Code 1997, is amended to read as follows:
42     Unless otherwise expressly permitted by section
43   421.17, subsections 21, 22, 22A, 23, 25, 29, and 32,
44   sections 252B.9, 421.19, 421.28, 422.20, and 452A.63,
45   and this section, a tax return, return information, or
46   investigative or audit information shall not be
47   divulged to any person or entity, other than the
48   taxpayer, the department, or internal revenue service
49   for use in a matter unrelated to tax administration.
50     Sec. 23.  Section 422.72, Code 1997, is amended by
Page  11

 1   adding the following new subsection:
 2     NEW SUBSECTION.  7.  Notwithstanding subsection 3,
 3   the director shall provide state tax returns and
 4   return information in response to a subpoena issued by
 5   the court pursuant to rule of criminal procedure 5
 6   commanding the appearance before the attorney general
 7   or an assistant attorney general if the subpoena is
 8   accompanied by affidavits from such person and from a
 9   sworn peace officer member of the department of public
10   safety affirming that the information is necessary for
11   the investigation of a felony violation of chapter 124
12   or chapter 706B.  The affidavits accompanying the
13   subpoenas and the information provided by the director
14   shall remain a confidential record which may be
15   disseminated only to a prosecutor or peace officer
16   involved in the investigation, or to the taxpayer who
17   filed the information and to the court in connection
18   with the filing of criminal charges or institution of
19   a forfeiture action.  A person who knowingly files a
20   false affidavit with the director to secure
21   information or who divulges information received under
22   this subsection in a manner prohibited by this
23   subsection commits a serious misdemeanor.
24     Sec. 24.  Section 423.1, subsection 8, Code 1997,
25   is amended to read as follows:
26     8.  "Retailer maintaining a place of business in
27   this state" or any like term includes any retailer
28   having or maintaining within this state, directly or
29   by a subsidiary, an office, distribution house, sales
30   house, warehouse, or other place of business, or any
31   agent representative operating within this state
under
32   the authority of the retailer or its subsidiary,
33   irrespective of whether such that place of business
or
34   agent representative is located here permanently or
35   temporarily, or whether the retailer or subsidiary is
36   admitted to do business within this state pursuant to
37   chapter 490.
38     Sec. 25.  Section 423.25, Code 1997, is amended to
39   read as follows:
40     423.25  TAXATION IN ANOTHER STATE.
41     If any person who causes tangible personal property
42   to be brought into this state or who uses in this
43   state services enumerated in section 422.43 has
44   already paid a tax in another state in respect to the
45   sale or use of the property or the performance of the
46   service, or an occupation tax in respect to the
47   property or service, in an amount less than the tax
48   imposed by this title, the provisions of this title
49   shall apply, but at a rate measured by the difference
50   only between the rate fixed in this title and the rate
Page  12

 1   by which the previous tax on the sale or use, or the
 2   occupation tax, was computed.  If the tax imposed and
 3   paid in the other state is equal to or more than the
 4   tax imposed by this title, then a tax is not due in
 5   this state on the personal property or service.
 6     Sec. 26.  Section 425.7, subsection 3, Code 1997,
 7   is amended to read as follows:
 8     3.  If the director of revenue and finance
 9   determines that a claim for homestead credit has been
10   allowed by the board of supervisors which is not
11   justifiable under the law and not substantiated by
12   proper facts, the director may, at any time within
13   thirty-six months from July 1 of the year in which the
14   claim is allowed, set aside the allowance.  Notice of
15   the disallowance shall be given to the county auditor
16   of the county in which the claim has been improperly
17   granted and a written notice of the disallowance shall
18   also be addressed to the claimant at the claimant's
19   last known address.  The claimant or board of
20   supervisors may appeal to the state board of tax
21   review pursuant to section 421.1, subsection 4.  The
22   claimant or the board of supervisors may seek judicial
23   review of the action of the director of revenue and
24   finance state board of tax review in accordance with
25   the Iowa administrative procedure Act chapter 17A.
26     If a claim is disallowed by the director of revenue
27   and finance and not appealed to the state board of tax
28   review or appealed to and upheld by the state board of
29   tax review and a petition for judicial review is not
30   filed with respect to the disallowance, any amounts of
31   credits allowed and paid from the homestead credit
32   fund including the penalty, if any, become a lien upon
33   the property on which credit was originally granted,
34   if still in the hands of the claimant, and not in the
35   hands of a bona fide purchaser, and any amount so
36   erroneously paid including the penalty, if any, shall
37   be collected by the county treasurer in the same
38   manner as other taxes and the collections shall be
39   returned to the department of revenue and finance and
40   credited to the homestead credit fund.  The director
41   of revenue and finance may institute legal proceedings
42   against a homestead credit claimant for the collection
43   of payments made on disallowed credits and the
44   penalty, if any.  If a homestead credit is disallowed
45   and the claimant failed to give written notice to the
46   assessor as required by section 425.2 when the
47   property ceased to be used as a homestead by the
48   claimant, a civil penalty equal to fifty percent of
49   the amount of the disallowed credit is assessed
50   against the claimant.
Page  13

 1     Sec. 27.  Section 426A.6, Code 1997, is amended to
 2   read as follows:
 3     426A.6  SETTING ASIDE ALLOWANCE.
 4     If the director of revenue and finance determines
 5   that a claim for military service tax exemption has
 6   been allowed by a board of supervisors which is not
 7   justifiable under the law and not substantiated by
 8   proper facts, the director may, at any time within
 9   thirty-six months from July 1 of the year in which the
10   claim is allowed, set aside the allowance.  Notice of
11   the disallowance shall be given to the county auditor
12   of the county in which the claim has been improperly
13   granted and a written notice of the disallowance shall
14   also be addressed to the claimant at the claimant's
15   last known address.  The claimant or the board of
16   supervisors may appeal to the state board of tax
17   review pursuant to section 421.1, subsection 4.  The
18   claimant or the board of supervisors may seek judicial
19   review of the action of the director of revenue and
20   finance state board of tax review in accordance with
21   chapter 17A.  If a claim is disallowed by the director
22   of revenue and finance and not appealed to the state
23   board of tax review or appealed to and upheld by the
24   state board of tax review and a petition for judicial
25   review is not filed with respect to the disallowance,
26   the credits allowed and paid from the general fund of
27   the state become a lien upon the property on which the
28   credit was originally granted, if still in the hands
29   of the claimant and not in the hands of a bona fide
30   purchaser, the amount so erroneously paid shall be
31   collected by the county treasurer in the same manner
32   as other taxes, and the collections shall be returned
33   to the department of revenue and finance and credited
34   to the general fund of the state.  The director of
35   revenue and finance may institute legal proceedings
36   against a military service tax exemption claimant for
37   the collection of payments made on disallowed
38   exemptions.
39     Sec. 28.  Section 426B.1, subsection 1, Code 1997,
40   is amended to read as follows:
41     1.  A property tax relief fund is created in the
42   state treasury under the authority of the department
43   of revenue and finance human services.  The fund
shall
44   be separate from the general fund of the state and
45   shall not be considered part of the general fund of
46   the state except in determining the cash position of
47   the state for payment of state obligations.  The
48   moneys in the fund are not subject to the provisions
49   of section 8.33 and shall not be transferred, used,
50   obligated, appropriated, or otherwise encumbered
Page  14

 1   except as provided in this chapter.  Moneys in the
 2   fund may be used for cash flow purposes, provided that
 3   any moneys so allocated are returned to the fund by
 4   the end of each fiscal year.  However, the fund shall
 5   be considered a special account for the purposes of
 6   section 8.53, relating to elimination of any GAAP
 7   deficit.  For the purposes of this chapter, unless the
 8   context otherwise requires, "property tax relief fund"
 9   means the property tax relief fund created in this
10   section.
11     Sec. 29.  Section 426B.4, Code 1997, is amended to
12   read as follows:
13     426B.4  RULES.
14     The council on human services shall consult with
15   the state-county management committee created in
16   section 331.438 and the director of revenue and
17   finance human services in prescribing forms and
18   adopting rules pursuant to chapter 17A to administer
19   this chapter.
20     Sec. 30.  Section 427.1, subsection 16, Code 1997,
21   is amended to read as follows:
22     16.  REVOKING EXEMPTION.  Any taxpayer or any
23   taxing district may make application to the director
24   of revenue and finance for revocation for any
25   exemption, based upon alleged violations of this
26   chapter.  The director of revenue and finance may also
27   on the director's own motion set aside any exemption
28   which has been granted upon property for which
29   exemption is claimed under this chapter.  The director
30   of revenue and finance shall give notice by mail to
31   the taxpayer or taxing district applicant and to the
32   societies or organizations claiming an exemption upon
33   property, exemption of which is questioned before or
34   by the director of revenue and finance, and shall
hold
35   a hearing prior to issuing any order for revocation.
36   An order made by the director of revenue and finance
37   revoking or modifying an exemption is subject to
38   judicial review in accordance with chapter 17A, the
39   Iowa administrative procedure Act.  Notwithstanding
40   the terms of that Act, petitions for judicial review
41   may be filed in the district court having jurisdiction
42   in the county in which the property is located, and
43   must be filed within thirty days after any order
44   revoking an exemption is made by the director of
45   revenue and finance.
46     Sec. 31.  Section 427.5, unnumbered paragraphs 1
47   and 2, Code 1997, are amended to read as follows:
48     A person named in section 427.3, who is a resident
49   of and domiciled in the state of Iowa, shall receive a
50   reduction equal to the exemption, to be made from any
Page  15

 1   property owned by the person or owned by a family farm
 2   corporation of which the person is a shareholder and
 3   who occupies the property and so designated by
 4   proceeding as provided in the section.  To be eligible
 5   to receive the exemption the person claiming it shall
 6   have recorded in the office of the county recorder of
 7   the county in which is located the property designated
 8   for the exemption, evidence of property ownership by
 9   that person or the family farm corporation of which
10   the person is a shareholder and the military
11   certificate of satisfactory service, order
12   transferring to inactive status, reserve, retirement,
13   order of separation from service, honorable discharge
14   or a copy of any of these documents of the person
15   claiming or through whom is claimed the exemption.
16     The person shall file with the appropriate assessor
17   on forms obtained from the assessor the claim for
18   exemption for the year for which the person is first
19   claiming the exemption.  The claim shall be filed not
20   later than July 1 of the year for which the person is
21   claiming the exemption.  The claim shall set out the
22   fact that the person is a resident of and domiciled in
23   the state of Iowa, and a person within the terms of
24   section 427.3, and shall give the volume and page on
25   which the certificate of satisfactory service, order
26   of separation, retirement, furlough to reserve,
27   inactive status, or honorable discharge or certified
28   copy thereof is recorded in the office of the county
29   recorder, and may include the designation of the
30   property from which the exemption is to be made, and
31   shall further state that the claimant is the equitable
32   or legal owner of the property designated or if the
33   property is owned by a family farm corporation, that
34   the person is a shareholder of that corporation and
35   that the person occupies the property.
36     Sec. 32.  Section 427B.19, subsection 3, unnumbered
37   paragraph 1, Code 1997, is amended to read as follows:
38     On or before July 1, 1996, and on or before July
39   September 1 of each succeeding fiscal year through
40   June 30, 2006, the county auditor shall prepare a
41   statement, based upon the report received pursuant to
42   subsections 1 and 2, listing for each taxing district
43   in the county:
44     Sec. 33.  Section 427B.19, subsection 4, Code 1997,
45   is amended to read as follows:
46     4.  The county auditor shall certify and forward
47   one copy of the statement to the department of revenue
48   and finance not later than July September 1 of each
49   year.
50     Sec. 34.  Section 427B.19A, subsection 2, Code
Page  16

 1   1997, is amended to read as follows:
 2     2.  If an amount appropriated for a fiscal year is
 3   insufficient to pay all claims, the director shall
 4   prorate the disbursements from the fund to the county
 5   treasurers and shall notify the county auditors of the
 6   pro rata percentage on or before August 1 September
 7   30.
 8     Sec. 35.  Section 428.4, unnumbered paragraph 3,
 9   Code 1997, is amended to read as follows:
10     Any buildings erected, improvements made, or
11   buildings or improvements removed in a year after the
12   assessment of the class of real estate to which they
13   belong, shall be valued, listed, and assessed and
14   reported by the assessor to the county auditor after
15   approval of the valuations by the local board of
16   review, and said the auditor shall thereupon enter
the
17   taxable value of such building or taxable improvement
18   on the tax list as a part of real estate to be taxed.
19   If such buildings or improvements are erected or
made
20   by any person other than the owner of the land, they
21   shall be listed and assessed to the owner of the
22   buildings or improvements as real estate.
23     Sec. 36.  Section 440.1, Code 1997, is amended to
24   read as follows:
25     440.1  ASSESSMENT OF OMITTED PROPERTY.
26     When the director of revenue and finance is vested
27   with the power and duty to assess property and said
an
28   assessment has, for any reason, been omitted, the
29   director shall proceed to assess said the property
for
30   each of the omitted years, not exceeding five years
31   last past.  The omitted assessment shall only apply
to
32   the assessment year in which the omitted assessment is
33   made and the four prior assessment years.  Chapter 429
34   shall apply to assessments of omitted property.
35     Sec. 37.  Section 441.8, unnumbered paragraphs 6
36   and 7, Code 1997, are amended to read as follows:
37     Upon receiving credit equal to one hundred fifty
38   hours of classroom instruction during the assessor's
39   current term of office of which at least ninety of the
40   one hundred fifty hours are from courses requiring an
41   examination upon conclusion of the course, the
42   director of revenue and finance shall certify to the
43   assessor's conference board that the assessor is
44   eligible to be reappointed to the position.  For
45   assessors whose present terms of office expire before
46   six years from January 1, 1979, or who are persons
47   appointed to complete an unexpired term, the number of
48   credits required to be certified as eligible for
49   reappointment shall be prorated according to the
50   amount of time remaining in the present term of the
Page  17

 1   assessor.  If the person was an assessor in another
 2   jurisdiction, the assessor may carry forward any
 3   credit hours received in the previous position in
 4   excess of the number that would be necessary to be
 5   considered current in that position.
 6     Within each six-year period following January 1,
 7   1980 or the appointment of a deputy assessor
appointed
 8   after January 1, 1979, the deputy assessor shall
 9   comply with this section except that upon the
10   successful completion of ninety hours of classroom
11   instruction of which at least sixty of the ninety
12   hours are from courses requiring an examination upon
13   conclusion of the course, the deputy assessor shall be
14   certified by the director of revenue and finance as
15   being eligible to remain in the position.  If a deputy
16   assessor fails to comply with this section, the deputy
17   assessor shall be removed from the position until
18   successful completion of the required hours of credit.
19   If a deputy is appointed to the office of assessor,
20   the hours of credit obtained as deputy pursuant to
21   this section shall be credited to that individual as
22   assessor and for the individual to be reappointed at
23   the expiration of the term as assessor, that
24   individual must obtain the credits which are necessary
25   to total the number of hours for reappointment.
26     Sec. 38.  Section 441.11, Code 1997, is amended to
27   read as follows:
28     441.11  INCUMBENT DEPUTY ASSESSORS.
29     The director of revenue and finance shall grant a
30   restricted certificate to any deputy assessor holding
31   office as of January 1, 1976.  A deputy assessor
32   possessing such a certificate shall be considered
33   eligible to remain in the deputy's present position
34   provided continuing education requirements are met.
35   To become eligible for another deputy assessor
36   position, a deputy assessor presently holding office
37   is required to obtain certification as provided for in
38   section 441.5 and 441.10.  The number of credit hours
39   required for certification as eligible for appointment
40   as a deputy in a jurisdiction other than where the
41   deputy is currently serving shall be prorated
42   according to the completed portion of the deputy's
43   six-year continuing education period.
44     Sec. 39.  Section 444.26, Code 1997, is amended to
45   read as follows:
46     444.26  PROPERTY TAX LEVY LIMITATIONS NOT AFFECTED.
47     Sections 444.25, 444.25A, and 444.25B shall not be
48   construed as removing or otherwise affecting the
49   property tax limitations otherwise provided by law for
50   any tax levy of the political subdivision, except
Page  18

 1   that, upon an appeal from the political subdivision,
 2   the state appeal board may approve a tax levy
 3   consistent with the provisions of section 24.48 or
 4   331.426.
 5     Sec. 40.  Section 444.27, subsection 1, Code 1997,
 6   is amended to read as follows:
 7     1.  For purposes of section 444.25, sections 24.48
 8   and 331.426 are void for the fiscal years beginning
 9   July 1, 1993, and July 1, 1994.  For purposes of
10   section 444.25A, sections 24.48 and 331.426 are void
11   for the fiscal years beginning July 1, 1995, and July
12   1, 1996.
13     Sec. 41.  Section 445.32, Code 1997, is amended to
14   read as follows:
15     445.32  LIENS ON BUILDINGS OR IMPROVEMENTS.
16     If a building or improvement is erected or made by
17   a person other than the owner of the land on which the
18   building or improvement is located, as provided for in
19   section 428.4, the taxes on the building or
20   improvement are and remain a lien on the building or
21   improvement from the date of levy until paid.  If the
22   taxes on the building or improvement become
23   delinquent, as provided in section 445.37, the county
24   treasurer shall collect the tax as provided in
25   sections 445.3 and 445.4.  This section does not apply
26   to special assessments, or rates or charges.
27     Sec. 42.  Section 452A.17, subsection 1, paragraph
28   a, Code 1997, is amended by adding the following new
29   subparagraph:
30     NEW SUBPARAGRAPH.  (9)  Undyed special fuel used in
31   watercraft.
32     Sec. 43.  Section 452A.17, subsection 1, paragraph
33   b, subparagraphs (4) and (5), Code 1997, are amended
34   to read as follows:
35     (4)  The claim shall state the gallonage of motor
36   fuel or undyed special fuel that was used or will be
37   used by the claimant other than in watercraft or
38   aircraft or to propel motor vehicles, the manner in
39   which the motor fuel or undyed special fuel was used
40   or will be used, and the equipment in which it was
41   used or will be used.
42     (5)  The claim shall state whether the claimant
43   used fuel for watercraft or aircraft or to propel
44   motor vehicles from the same tanks or receptacles in
45   which the claimant kept the motor fuel or undyed
46   special fuel on which the refund is claimed.
47     Sec. 44.  Section 452A.65, unnumbered paragraph 1,
48   Code 1997, is amended to read as follows:
49     In addition to the tax or additional tax, the
50   taxpayer shall pay a penalty as provided in section
Page  19

 1   421.27.  The taxpayer shall also pay interest on the
 2   tax or additional tax at the rate in effect under
 3   section 421.7 counting each fraction of a month as an
 4   entire month, computed from the date the return was
 5   required to be filed.  If the amount of the tax as
 6   determined by the appropriate state agency is less
 7   than the amount paid, the excess shall be refunded
 8   with interest, the interest to begin to accrue on the
 9   first day of the third second calendar month
following
10   the date of payment or the date the return was due to
11   be filed or was filed, whichever is the latest, at the
12   rate in effect under section 421.7 counting each
13   fraction of a month as an entire month under the rules
14   prescribed by the appropriate state agency.  In lieu
15   of a refund allowed under this section, the licensee
16   may request that the department allow the refund to be
17   held as a credit for the licensee.  Claims for
refund
18   filed under sections 452A.17 and 452A.21 shall accrue
19   interest beginning with the first day of the second
20   calendar month following the date the refund claim is
21   received by the department.
22     Sec. 45.  Section 633.699, subsection 7, Code 1997,
23   is amended to read as follows:
24     7.  To make any required division, allocation, or
25   distribution in whole or in part in money, securities,
26   or other property, and in undivided interests therein
27   pro rata, nonpro rata, or in combination of these
28   methods, and to continue to hold any remaining
29   undivided interest in trust.
30     Sec. 46.  Section 633.703A, subsection 1,
31   unnumbered paragraph 1, Code 1997, is amended to read
32   as follows:
33     In order to allow a trust to qualify as a marital
34   deduction trust for federal estate tax purposes, as a
35   qualified subchapter S trust for federal income tax
36   purposes, as separate trusts for federal generation-
37   skipping tax purposes, or for any other federal or
38   state income, estate, excise, or inheritance tax
39   benefit or to facilitate the administration of a trust
40   or trusts, the governing instrument of a trust may be
41   amended as follows to permit the trust to be divided
42   in cash or in kind, including in undivided interests,
43   by pro rata or nonpro rata division, or in any
44   combination thereof, into one or more separate trusts
45   or be consolidated with one or more other trusts into
46   a single trust:
47     Sec. 47.  Section 99D.14, subsection 6, Code 1997,
48   as amended by 1997 Iowa Acts, House File 212, section
49   2, is amended to read as follows:
50     6.  Real property used in the operation of a
Page  20

 1   racetrack or racetrack enclosure which is exempt from
 2   property taxation under another provision of the law,
 3   including being exempt because it is owned by a city,
 4   county, state, or charitable or nonprofit entity, may
 5   be subject to real property taxation by any taxing
 6   district in which the real property used in the
 7   operation of the racetrack or racetrack enclosure is
 8   located.  To subject such real property to taxation,
 9   the taxing authority of the taxing district shall pass
10   a resolution imposing the tax and, if the resolution
11   is passed prior to September 1, 1997, shall notify the
12   county local assessor, director of revenue and
13   finance, and the owner of record of the real property
14   by September 1, 1997, preceding the fiscal year in
15   which the real property taxes are due and payable.
16   The assessed value shall be determined and notice of
17   the assessed value shall be provided to the county
18   auditor by the department of revenue and finance
local
19   assessor by October 15, 1997, and the owner may
20   protest the assessed value to the state local board
of
21   tax review by December 1, 1997.  For resolutions
22   passed on or after September 1, 1997, the taxing
23   authority shall notify the local assessor and owner of
24   record prior to the next assessment year and the
25   valuation and appeal shall be done in the manner and
26   time as for other valuations.  Property taxes due as a
27   result of this subsection shall be paid to the county
28   treasurer in the manner and time as other property
29   taxes.  The county treasurer shall remit the tax
30   revenue to those taxing authorities imposing the
31   property tax under this subsection.  Real property
32   subject to tax as provided in this subsection shall
33   continue to be taxed until such time as the taxing
34   authority of the taxing district repeals the
35   resolution subjecting the property to taxation.
36   Notwithstanding section 99D.7, the department of
37   revenue and finance shall adopt rules to implement
38   this subsection.
39     Sec. 48.  Sections 236.15A, 427A.13, 440.2, 440.3,
40   440.4, 444.25, and 444.28, Code 1997, are repealed.
41     Sec. 49.  Sections 11 and 13 of this Act which
42   amend sections 422.5 and 422.32 apply retroactively to
43   January 1, 1997, for tax years beginning on or after
44   that date.
45     Sec. 50.  Section 17 of this Act, amending section
46   422.45, subsection 18, being deemed of immediate
47   importance, takes effect upon enactment.
48     Sec. 51.  Sections 6, 12, and 22 of this Act,
49   enacting section 421.17, subsection 22A and amending
50   section 422.20 and section 422.72, subsection 3, and
Page  21

 1   relating to contractual agreements by the department
 2   of revenue and finance, being deemed of immediate
 3   importance, take effect upon enactment.
 4     Sec. 52.  Section 20 of this Act, enacting section
 5   422.53, subsection 8, takes effect January 1, 1998.
 6     Sec. 53.  Sections 42 and 43 of this Act, amending
 7   section 452A.17, subsection 1, being deemed of
 8   immediate importance, take effect upon enactment and
 9   apply retroactively to July 1, 1996."
10     2.  Title page , by striking lines 1 through 7 and
11   inserting the following:  "An Act relating to the
12   administration of state individual income, corporate,
13   franchise, motor fuel, and other taxes; collection of
14   taxes and use of collection receipts; property taxes;
15   property tax credits and replacement claims; sales,
16   services, and use taxes and the imposition thereof on
17   sales of prepaid telephone calling cards and prepaid
18   authorization numbers; tax refund setoffs; and other
19   duties of the department and director of revenue and
20   finance; providing a penalty; and including effective
21   and retroactive applicability date provisions."
Taylor of Linn asked and received unanimous consent that
amendment H-1972, to the Senate amendment H-1957, be deferred.
Falck of Fayette offered the following amendment H-1969, to the
Senate amendment H-1957, filed by Falck, et al., and moved its
adoption:

H-1969

 1     Amend the Senate amendment, H-1957, to House File
 2   266, as passed by the House, as follows:
 3     1.  Page 5, by inserting after line 24 the
 4   following:
 5     "Sec. 651.  Section 422.7, Code 1997, is amended by
 6   adding the following new subsection:
 7     NEW SUBSECTION.  35.  The amount of salary paid by
 8   a business to a nonproduction worker which exceeds
 9   thirty times the average annual wage paid to the
10   production workers of that business shall not be
11   allowed as a deduction in determining net income under
12   this section."
13     2.  Page 20, by inserting after line 44 the
14   following:
15     "Sec. ___.  Section 651 of this Act, enacting
16   section 422.7, subsection 35, applies retroactively to
17   January 1, 1997."
Drake of Pottawattamie rose on a point of order that amendment
H-1969, to the Senate amendment H-1957, was not germane.
The Speaker ruled the point well taken and amendment H-1969 not
germane.

Rants of Woodbury offered amendment H-1971, to the Senate
amendment H-1957, filed by Rants, et al., as follows:

H-1971

 1     Amend the Senate amendment, H-1957, to House File
 2   266, as passed by the House, as follows:
 3     1.  Page 9, by inserting after line 5 the
 4   following:
 5     "Sec. 601.  Section 422.45, Code 1997, is amended
 6   by adding the following new subsection:
 7     NEW SUBSECTION.  52.  The gross receipts from
 8   charges for access to or use of internet computer
 9   services and from charges for access to or use of
10   other contracted on-line computer services if access
11   or use is by way of a local or in-state long distance
12   telephone number and if the predominate on-line
13   computer service offered is two-way transmission and
14   receipt of information from one site to another.
15     This subsection is repealed July 1, 1998."
16     2. Page 21, by inserting after line 3 the
17   following:
18     "Sec. ___.  Section 601 of this Act, enacting
19   section 422.45, subsection 52, being deemed of
20   immediate importance, takes effect upon enactment."
Bernau of Story rose on a point of order that amendment H-1971,
to the Senate amendment H-1957, was not germane.
The Speaker ruled the point well taken and amendment H-1971 not
germane.
Taylor of Linn offered the following amendment H-1972, to the
Senate amendment H-1957, previously deferred, filed by him and
moved its adoption:

H-1972

 1     Amend the Senate amendment, H-1957, to House File
 2   266, as passed by the House, as follows:
 3     1.  By striking page 2, line 48, through page 3,
 4   line 16.
 5     2.  Page 5, by striking lines 25 through 34.
 6     3.  Page 10, by striking lines 40 through 49.
 7     4.  By striking page 20, line 48, through page 21,
 8   line 3.
Amendment H-1972 lost.
On motion by Drake of Pottawattamie, the House concurred in the
Senate amendment H-1957.
Drake of Pottawattamie moved that the bill, as 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?" (H.F. 266)

The ayes were, 80:
Arnold         	Bell           	Bernau         	Blodgett      
	Boggess        	Bradley        	Brand          	Bukta         
	Burnett        	Carroll        	Cataldo        	Chapman       
	Churchill      	Cohoon         	Cormack        	Dinkla        
	Dix            	Doderer        	Dolecheck      	Dotzler	Drake  
       	Drees          	Eddie          	Falck          	Fallon  
      	Foege          	Ford           	Frevert        	Garman   
     	Gipp           	Greig          	Greiner        	Gries     
    	Hahn           	Hansen         	Holmes         	Holveck    
   	Huseman        	Huser          	Jacobs         	Jenkins     
  	Jochum         	Kinzer         	Klemme         	Koenigs      
 	Kremer         	Larkin         	Lord           	Martin        
	Mascher        	May            	Mertz          	Metcalf       
	Meyer          	Moreland       	Mundie         	Murphy	Myers   
      	O'Brien        	Osterhaus      	Rayhons       
	Reynolds-Knight	Richardson     	Scherrman      	Schrader      
	Shoultz        	Siegrist       	Sukup          	Teig          
	Thomas         	Thomson        	Van Maanen     	Vande Hoef     
     	Warnstadt      	Weidman        	Weigel         	Whitead   
    	Wise           	Witt           	Veenstra,
			  Presiding
The nays were, 17:
Barry          	Boddicker      	Brunkhorst     	Chiodo        
	Corbett, Spkr.        	Grundberg      	Heaton         	Houser  
      	Kreiman        	Lamberti       	Larson         	Millage  
     	Rants          	Taylor         	Tyrrell        	Van Fossen
    	Welter         	

Absent or not voting, 3:
Brauns         	Connors	Nelson         	
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 266 be immediately messaged to the Senate.
RULE 57 SUSPENDED
Siegrist of Pottawattamie asked and received unanimous consent
to suspend Rule 57, relating to committee notice and agenda for
a meeting of the agriculture committee, to consider Senate File
555.
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, 1997, 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 702, a bill for an act relating to human services and
facility requirements involving the single entry point process
for mental health and developmental disabilities services,
regional planning councils, human services institution employee
record checks, decategorization of adult disability services
funding, legal settlement involving community-based providers of
treatment or services, and the operating requirements of an
intermediate care facility for persons with mental retardation.
Also: That the Senate has on April 29, 1997, concurred in the
House amendment and passed the following bill in which the
concurrence of the Senate was asked:
Senate File 473, a bill for an act requiring owners of
agricultural drainage wells to prevent surface water intake into
the wells, providing for the closure of certain wells and the
construction of alternative drainage systems, providing state
assistance for closing agricultural drainage wells, prohibiting
the construction and use of certain structures located in
agricultural drainage well areas, providing for the assessment
and collection of certain drainage district expenses, providing
penalties, and providing an effective date.
MARY PAT GUNDERSON, Secretary
On motion by Siegrist of Pottawattamie, the House was recessed
at 11:50 a.m., until 1:00 p.m.
AFTERNOON SESSION
The House reconvened at 1:15 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 sixty members present, forty
absent.
RULES SUSPENDED
Siegrist of Pottawattamie asked and received unanimous consent
to suspend the rules for the immediate consideration of Senate
File 545.
Ways and Means Calendar
Senate File 545, a bill for an act relating to the nonrenewal or
suspension of motor vehicle licenses for failure to pay
indebtedness owed to or being collected by the state in pilot
project counties, and providing an effective date, with report
of committee recommending passage, was taken up for
consideration.
Drake 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. 545)

The ayes were, 97:
Arnold         	Barry          	Bell           	Bernau	Blodgett 
     	Boddicker      	Boggess        	Bradley       
	Brand	Brauns         	Brunkhorst     	Bukta          	Burnett  
     	Carroll        	Cataldo        	Chapman        	Churchill 
    	Cohoon                	Cormack        	Dinkla         	Dix 
          	Doderer        	Dolecheck      	Dotzler        	Drake
         	Drees          	Eddie          	Falck          	Fallon
        	Foege          	Ford           	Frevert        	Garman 
       	Gipp           	Greig          	Greiner        	Gries   
      	Grundberg      	Hahn           	Hansen         	Heaton   
     	Holmes         	Holveck        	Houser	Huseman       
	Huser          	Jacobs         	Jenkins        	Jochum        
	Kinzer         	Klemme         	Koenigs        	Kreiman       
	Kremer         	Lamberti       	Larkin         	Larson        
	Lord           	Martin         	Mascher        	May           
	Mertz          	Metcalf        	Meyer          	Millage       
	Moreland       	Mundie         	Murphy         	Myers         
	O'Brien        	Osterhaus      	Rants          	Rayhons       
	Reynolds-Knight	Richardson     	Scherrman      	Schrader      
	Shoultz	Siegrist       	Sukup          	Taylor        
	Teig	Thomas         	Thomson        	Tyrrell        	Van Fossen
    	Van Maanen     	Vande Hoef     	Veenstra       	Warnstadt  
   	Weidman        	Weigel         	Welter         	Whitead     
  	Wise           	Witt           	Mr. Speaker
  Corbett

The nays were, none.

Absent or not voting, 3:

Chiodo	Connors	Nelson
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 545 be immediately messaged to the Senate.
The House stood at ease at 1:30 p.m., until the fall of the
gavel.

The House resumed session at 4:30 p.m., Speaker pro tempore Van
Maanen of Marion in the chair.
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, 1997, passed the following bill in
which the concurrence of the Senate was asked:
House File 729, a bill for an act relating to reporting and
depositing of local option sales and services taxes to the
department of revenue and finance by retailers and increasing
the amount of estimated distribution and frequency of
distribution to cities and counties by the department of revenue
and finance.
Also: That the Senate has on April 29, 1997, adopted the
conference committee report and passed Senate File 391, 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 of the state, road use tax fund,
and primary road fund, providing for the nonreversion of certain
moneys, establishing a toll-free road and weather reporting
system, eliminating the motor vehicle use tax as the funding
source for the value-added agricultural products and processes
financial assistance program and the renewable fuels and
coproducts fund, and providing for the designation of access
Iowa highways, and providing effective dates.
Also: That the Senate has on April 29, 1997, concurred in the
House amendment and passed the following bill in which the
concurrence of the Senate was asked:
Senate File 541, a bill for an act relating to child day care
provisions involving group day care homes and establishing a
child care home pilot project.
Also: That the Senate has on April 29, 1997, concurred in the
House amendment and passed the following bill in which the
concurrence of the Senate was asked:
Senate File 553, a bill for an act relating to the tax treatment
of financial institutions and their shareholders which have made
an election under subchapter S of the Internal Revenue Code and
including a retroactive applicability date provision.
MARY PAT GUNDERSON, Secretary

ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(Senate File 391)
Brauns of Muscatine called up for consideration the report of
the 
conference committee on Senate File 391 and moved the adoption
of the conference committee report and the amendments contained
therein as follows:
REPORT OF THE CONFERENCE COMMITTEE ON SENATE FILE 391
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 391, 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 of the state, road use tax fund, and primary road
fund, providing for the nonreversion of certain moneys,
establishing a toll-free road and weather reporting system,
eliminating the motor vehicle use tax as the funding source for
the value-added agricultural products and processes financial
assistance program and the renewable fuels and coproducts fund,
and providing for the designation of access Iowa highways, and
providing effective dates, respectfully make the following
report:
1.  That the Senate recedes from its amendment, H-1701.
2.  That the House amendment, S-3453, to Senate File 391, as
amended, passed, and reprinted by the Senate, is amended as
follows:
1.  Page 1, by inserting after line 8 the following:
"   .  Page 8, by inserting after line 21 the following:~ 
"Sec. ___.  1996 Iowa Acts, chapter 1218, section 51, subsection
3, is amended by striking the subsection and inserting in lieu
thereof the following:
3.  PRESENTATIONS AND REPEAL.  The state transportation
commission shall make a presentation to the joint appropriations
subcommittee on transportation, infrastructure, and capitals not
later than February 1, 1998, regarding the effect that complying
with subsection 2 will have on the commission's compliance with
section 313.2A.  The department of economic development shall
also make a presentation to the joint appropriations
subcommittee on transportation, infrastructure, and capitals,
not later than February 1, 1998, regarding the economic
development impact of implementing subsection 2.
This section is repealed effective July 1, 2000."" 

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

BARRY BRAUNS, Chair	RICHARD F. DRAKE, Chair
HENRY RAYHONS	MIKE CONNOLLY
STEVEN WARNSTADT	MARY LOU FREEMAN 
	ROD HALVORSON
	STEVE KING
The motion prevailed and the conference committee report was
adopted.
Brauns of Muscatine 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. 391)

The ayes were, 72:
Arnold         	Barry          	Bernau         	Blodgett      
	Boggess        	Brand          	Brauns        
	Brunkhorst	Bukta          	Burnett        	Carroll       
	Cataldo        	Chiodo         	Corbett, Spkr.        	Cormack 
      	Dinkla         	Dix            	Doderer        	Dolecheck
     	Dotzler	Drake          	Eddie          	Falck         
	Ford           	Frevert	Gipp           	Greig          	Greiner
       	Gries          	Hansen         	Holmes         	Holveck 
      	Houser         	Huseman        	Huser          	Jenkins  
     	Jochum         	Kinzer         	Klemme         	Kremer    
    	Larkin         	Larson	Lord           	Martin        
	Mascher        	May            	Mertz          	Meyer         
	Millage	Mundie         	Myers          	Nelson        
	Osterhaus      	Rants          	Rayhons        	Richardson    
	Scherrman      	Shoultz        	Siegrist       	Sukup         
	Taylor         	Thomas         	Thomson        	Tyrrell        
   	Veenstra       	Warnstadt      	Weidman        	Weigel      
  	Welter         	Whitead        	Van Fossen	Van Maanen,
			  Presiding
The nays were, 25:
Bell           	Boddicker      	Bradley        	Chapman       
	Churchill      	Cohoon         	Drees          	Fallon        
	Foege          	Garman         	Grundberg      	Hahn          
	Heaton         	Koenigs        	Kreiman        	Lamberti      
	Metcalf        	Moreland       	Murphy	O'Brien       
	Reynolds-Knight	Schrader       	Vande Hoef     	Wise          
	Witt           	

Absent or not voting, 3:
Connors        	Jacobs	Teig
The bill having received a constitutional majority was declared
to have passed the House and the title was agreed to.
Speaker Corbett in the chair at 4:37 p.m.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 391 be immediately messaged to the Senate.

MOTION TO RECONSIDER WITHDRAWN
(Senate File 472)
Boggess of Taylor asked and received unanimous consent to
withdraw the motion to reconsider Senate File 472, a bill for an
act 
prohibiting a habitual violator or person charged with violation
from constructing or expanding an animal feeding operation
structure, filed by her on April 10, 1997.

MOTION TO RECONSIDER WITHDRAWN
(Senate File 472)
Sukup of Franklin asked and received unanimous consent to
withdraw the motion to reconsider Senate File 472, a bill for an
act prohibiting a habitual violator or person charged with
violation from constructing or expanding an animal feeding
operation structure, filed by him on April 10, 1997.
With the withdrawal of the motion to reconsider, amendment      
     H-1983 filed by Carroll, Eddie, Meyer, Greig, Huseman, Dix,
and Vande Hoef from the floor, and amendment H-1984 filed by
Thomas from the floor are placed out of order.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 472 be immediately messaged to the Senate.
SPECIAL PRESENTATION TO HOUSE PAGES
Speaker Corbett invited the House Pages to the Speaker's station
for a special presentation and thanked them for their service to
the House of Representatives.
Certificates of excellence for serving with honor and
distinction as a House Page during the First Regular Session of 
the Seventy-seventh General Assembly were presented to the
following Pages by Speaker Corbett and Minority Leader Schrader
of Marion.

	Karin Anderson	Amy Lincoln
	Sarah Armstrong	Kris Lyons
	Kathryn Burford	Jared McLaren
	Krista Burkle	Jessica Miskimins
	Amanda Campbell	Heather O'Hara
	Andrew Dorr	Maryn Olson
	Christopher Hill	Jennifer Pierce
	Jennifer Ipsen	Christopher Rasmussen
	Kristina Kieffer	Rebecca Reeder
	Kelli Kilgore	Shuni Roth
	Krista Kloster	Tomson Seller
	Courtney Kramer	James Springhower
	Kelly Lang	Jared Taylor
COMMITTEE RECOMMENDATION
MR. SPEAKER: The Chief Clerk of the House respectfully reports
that the following committee recommendation has been received
and is on file in the office of the Chief Clerk.
ELIZABETH A. ISAACSON
Chief Clerk of the House
COMMITTEE ON AGRICULTURE
Senate File 555, a bill for an act relating to the control of
pseudorabies, making corresponding changes, making penalties
applicable, and providing for an effective date.
Fiscal Note is not required.
Recommended Do Pass April 29, 1997.
RULES SUSPENDED
Gipp of Winneshiek asked and received unanimous consent to
suspend the rules for the immediate consideration of Senate File
555.
Senate File 555, a bill for an act relating to the control of
pseudorabies, making corresponding changes, making penalties
applicable, and providing for an effective date, with report of
committee recommending passage, was taken up for consideration.
Eddie of Buena Vista 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. 555)

The ayes were, 99:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand          	Brauns         	Brunkhorst     	Bukta         
	Burnett        	Carroll        	Cataldo        	Chapman       
	Chiodo         	Churchill      	Cohoon                	Cormack 
      	Dinkla         	Dix            	Doderer        	Dolecheck
     	Dotzler        	Drake          	Drees          	Eddie     
    	Falck          	Fallon         	Foege          	Ford       
   	Frevert        	Garman         	Gipp           	Greig       
  	Greiner        	Gries          	Grundberg      	Hahn         
 	Hansen         	Heaton         	Holmes         	Holveck       
	Houser         	Huseman        	Huser          	Jacobs        
	Jenkins        	Jochum         	Kinzer         	Klemme        
	Koenigs        	Kreiman        	Kremer         	Lamberti      
	Larkin         	Larson         	Lord           	Martin        
	Mascher        	May            	Mertz          	Metcalf        	
Meyer          	Millage        	Moreland       	Mundie        
	Murphy         	Myers          	Nelson         	O'Brien       
	Osterhaus      	Rants          	Rayhons       
	Reynolds-Knight	Richardson     	Scherrman      	Schrader      
	Shoultz        	Siegrist       	Sukup          	Taylor        
	Teig           	Thomas         	Thomson        	Tyrrell       
	Van Fossen     	Van Maanen     	Vande Hoef     	Veenstra      
	Warnstadt      	Weidman        	Weigel         	Welter        
	Whitead        	Wise           	Witt           	Mr. Speaker
			  Corbett

The nays were, none.

Absent or not voting, 1:

Connors        	
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 555 be immediately messaged to the Senate.
The House stood at ease at 5:00 p.m., until the fall of the
gavel.
The House resumed session at 6:28 p.m., Speaker Corbett in the
chair.

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, 1997, adopted the following
resolution in which the concurrence of the Senate was asked:
House Concurrent Resolution 23, a concurrent resolution to
request that the Congress of the United States maintain and
renew its commitment to America's corn growers and this nation's
ethanol industry by supporting a tax exemption and by taking
other actions to increase this nation's commitment to the
production and use of ethanol.
Also: That the Senate has on April 29, 1997, amended and passed
the following bill in which the concurrence of the House is
asked:
House File 697, a bill for an act relating to certain procedures
of the ethics and campaign disclosure board and filing
requirements and certain requirements for use of campaign funds.
Also: That the Senate has on April 29, 1997, amended and passed
the following bill in which the concurrence of the House is
asked:
House File 734, a bill for an act relating to the criminal and
civil justice system 
by providing for the imposition of a civil penalty for certain
motor vehicle license suspensions, revocations, or bars, for the
appropriation and distribution of the penalties collected, and
for the imposition and payment of fees for probation and parole,
and concerning inmate employment in private industry.
Also: That the Senate has on April 29, 1997, concurred in the
House amendment and passed the following bill in which the
concurrence of the Senate was asked:
Senate File 472, a bill for an act prohibiting a habitual
violator or person charged with violation from constructing or
expanding an animal feeding operation structure.
Also: That the Senate has on April 29, 1997, 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 549, a bill for an act relating to the funding of,
operation of, and appropriation of moneys to the college student
aid commission, the department of cultural affairs, the
department of education, the state board of regents, to the
transfer of moneys from the interest for Iowa schools fund, and
making related statutory changes and providing effective date
and applicability provisions.
MARY PAT GUNDERSON, Secretary
SENATE AMENDMENT CONSIDERED
Grundberg of Polk called up for consideration Senate File 549, a
bill for an act relating to the funding of, operation of, and
appropriation of moneys to the college student aid commission,
the department of cultural affairs, the department of education,
the state board of regents, to the transfer of moneys from the
interest for Iowa schools fund, and making related statutory
changes and providing effective date and applicability
provisions, amended by the House, further amended by the Senate
and moved that the House concur in the following Senate
amendment H-1989 to the House amendment:

H-1989

 1     Amend the House amendment, S-3782, to Senate File
 2   549, as amended, passed, and reprinted by the Senate,
 3   as follows:
 4     1.  Page 1, by inserting after line 3 the
 5   following:
 6     "   .  Page 1, line 34, by inserting after the
 7   figure "261.19A" the following:  "or section 261.19 as
 8   amended by 1997 Iowa Acts, House File 410, if
 9   enacted".
10     2.  Page 1, line 23, by striking the figure
11   "1,212,167" and inserting the following:  "1,162,167".
12     3.  Page 1, by striking lines 24 through 36.
13     4.  Page 1, line 40, by striking the word
14   "collaborate" and inserting the following:
15   "coordinate activities".
16     5.  Page 1, line 45, by striking the figure
17   "5,168,602" and inserting the following:  "5,469,602".
18     6.  Page 1, by striking lines 46 and 47.
19     7.  Page 2, by striking lines 21 through 30.
20     8.  Page 2, line 42, by striking the figure
21   "2,674,725" and inserting the following:  "2,734,725".
22     9.  Page 2, by striking line 44 and inserting the
23   following:  "following:
24     The state library shall begin implementing the 1996
25   Iowa joint use library guide commencing July 1, 1997.
26     Reimbursement of the institutions of".
27     10.  Page 3, by striking lines 3 through 6.
28     11.  Page 3, by striking lines 10 through 26 and
29   inserting the following:
30     "Moneys appropriated to or paid to the department
31   of education for purposes of the reading recovery
32   program shall be allocated to area education agencies
33   in the proportion that the number of children who are
34   eligible for free or reduce price meals under the
35   federal National School Lunch Act and the federal
36   Child Nutrition Act of 1966, 42 U.S.C. "/g" 1751-1785, in
37   the basic enrollment of grades one through six in the
38   area served by an agency, bears to the sum of the
39   number of children who are eligible for free or
40   reduced price meals under the federal National School
41   Lunch Act and the federal Child Nutrition Act of 1966,
42   42 U.S.C. "/g" 1751-1785, in the basic enrollments of
43   grades one through six in all of the areas served by
44   area education agencies in the state for the budget
45   year."
46     12.  Page 3, line 34, by striking the figure
47   "50,000" and inserting the following:  "25,000".
48     13.  By striking page 3, line 35, through page 4,
49   line 26.
50     14.  By striking page 4, line 29, through page 5,

Page 2  

 1   line 48, and inserting the following:
 2  	"	 $	130,582,051
 3     The funds appropriated in this subsection shall be
 4   allocated as follows:
 5     a.	Merged Area I	 $	  6,236,541
 6     b.	Merged Area II	 $	  7,353,865
 7     c.	Merged Area III	 $	  6,943,989
 8     d.	Merged Area IV	 $	  3,383,065
 9     e.	Merged Area V	 $	  7,076,264
10    f.	Merged Area VI	 $	  6,557,575
11    g.	Merged Area VII	 $	  9,354,212
12    h.	Merged Area IX	 $	 11,469,275
13    i.	Merged Area X	 $	 17,802,012
14    j.	Merged Area XI	 $	 19,018,739
15    k.	Merged Area XII	 $	  7,554,167
16     l.	Merged Area XIII	 $	  7,726,323
17    m.	Merged Area XIV	 $	  3,426,976
18    n.	Merged Area XV	 $	 10,689,360
19    o.	Merged Area XVI	 $	     5,989,688"~ 
20     15.  Page 5, line 50, by striking the figure
21   "1,090,525" and inserting the following:  "1,140,525".
22     16.  Page 6, by striking lines 1 and 2.
23     17.  Page 6, line 5, by striking the figure
24     "169,596,402" and inserting the following:
25     "169,721,402".
26     18.  Page 6, by striking lines 7 through 13.
27     19.  Page 6, by inserting after line 20 the
28   following:
29     "   .  Page 21, by striking lines 7 through 11."
30     20.  Page 6, line 28, by striking the figure
31   "250,000" and inserting the following:  "190,000".
32     21.  Page 8, line 2, by striking the words "and
33   the center".
34     22.  By striking page 8, line 50, through page 9,
35   line 3, and inserting the following:
36     ""Sec. ___.  Section 294A.25, Code 1997, is amended
37   by adding the following new subsections:".
38     23.  Page 9, by striking lines 11 through 44 and
39   inserting the following:  "history, or geography.
40     NEW SUBSECTION.  4B.  For the fiscal year beginning
41   July 1, 1997, and ending June 30, 1998, the amount of
42   fifty thousand dollars to the department of education
43   for the geography alliance.
44     NEW SUBSECTION.  7A.  For the fiscal year beginning
45   July 1, 1997, and ending June 30, 1998, the amount of
46   seventy thousand dollars to the state board of regents
47   for equal distribution to the Iowa braille and sight
48   saving school and the Iowa state school for the deaf
49   from phase III moneys."
50        .  Page 26, by striking lines 12 through 14 and

Page 3

 1   inserting the following:
 2     "7.  Commencing with the fiscal year beginning July
 3   1, 1996 1997, the amount of fifty thousand
dollars for
 4   geography alliance and one two hundred eighty
thirty
 5   thousand dollars"."
 6     24.  Page 10, by striking lines 7 through 9.
 7     25.  Page 10, by striking lines 11 through 13.
 8     26.  By renumbering, relettering, or redesignating
 9   and correcting internal references as necessary.
Roll call was requested by Murphy of Dubuque and Mascher of
Johnson.
On the question "Shall amendment H-1989 be adopted?" (S.F. 549)
The ayes were, 55:
Arnold         	Barry          	Blodgett      
	Boddicker	Boggess        	Bradley        	Brauns        
	Brunkhorst     	Carroll        	Churchill             	Cormack 
      	Dinkla         	Dix            	Dolecheck      	Drake    
     	Drees          	Eddie          	Garman         	Gipp      
    	Greig          	Greiner        	Gries          	Grundberg  
   	Hahn           	Hansen         	Heaton         	Holmes      
  	Houser         	Huseman        	Jacobs         	Jenkins      
 	Klemme         	Kremer         	Lamberti       	Larson        
	Lord           	Martin         	Metcalf        	Meyer         
	Millage        	Nelson         	Rants          	Rayhons       
	Siegrist       	Sukup          	Teig           	Thomson       
	Tyrrell        	Van Fossen     	Van Maanen     	Vande Hoef    
	Veenstra       	Weidman        	Welter         	Mr. Speaker
		  Corbett
The nays were, 44:
Bell           	Bernau         	Brand          	Bukta         
	Burnett        	Cataldo        	Chapman        	Chiodo        
	Cohoon         	Doderer        	Dotzler        	Falck         
	Fallon         	Foege          	Ford           	Frevert       
	Holveck        	Huser          	Jochum         	Kinzer        
	Koenigs        	Kreiman        	Larkin         	Mascher       
	May            	Mertz          	Moreland       	Mundie        
	Murphy         	Myers          	O'Brien        	Osterhaus     
	Reynolds-Knight	Richardson     	Scherrman      	Schrader      
	Shoultz        	Taylor         	Thomas         	Warnstadt     
	Weigel         	Whitead        	Wise           	Witt           	
Absent or not voting, 1:
Connors        	
The motion prevailed and the House concurred in the Senate
amendment H-1989, to the House amendment.
Grundberg of Polk 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. 549)

The ayes were, 98:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand	Brauns         	Brunkhorst     	Bukta          	Burnett  
     	Carroll        	Cataldo        	Chapman        	Chiodo    
    	Churchill      	Cohoon                	Cormack        	
Dinkla         	Dix            	Doderer        	Dolecheck     
	Dotzler        	Drake          	Drees          	Eddie         
	Falck          	Fallon         	Foege          	Ford          
	Frevert        	Garman         	Gipp           	Greig         
	Greiner        	Gries          	Grundberg      	Hahn	Hansen    
    	Heaton         	Holmes         	Holveck        	Houser     
   	Huseman        	Huser          	Jacobs         	Jenkins     
  	Jochum         	Kinzer         	Klemme         	Koenigs      
 	Kremer         	Lamberti       	Larkin         	Larson        
	Lord           	Martin         	Mascher        	May           
	Mertz          	Metcalf        	Meyer          	Millage       
	Moreland       	Mundie         	Murphy         	Myers         
	Nelson         	O'Brien        	Osterhaus      	Rants         
	Rayhons        	Reynolds-Knight	Richardson     	Scherrman     
	Schrader       	Shoultz        	Siegrist       	Sukup         
	Taylor         	Teig           	Thomas         	Thomson       
	Tyrrell        	Van Fossen     	Van Maanen     	Vande Hoef    
	Veenstra       	Warnstadt      	Weidman        	Weigel        
	Welter         	Whitead        	Wise           	Witt          
	Mr. Speaker
	  Corbett

The nays were, 1:
Kreiman        	

Absent or not voting, 1:
Connors
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
Senate File 549 be immediately messaged to the Senate.
ADOPTION OF HOUSE CONCURRENT RESOLUTION 25
Blodgett of Cerro Gordo called up for consideration House
Concurrent Resolution 25, a concurrent resolution requesting an
interim committee on anatomical gift referral, and moved its
adoption.
The motion prevailed and the resolution was adopted.
SENATE AMENDMENT CONSIDERED
Lamberti of Polk called up for consideration House File 734, a
bill for an act relating to the criminal and civil justice
system by providing for the imposition of a civil penalty for
certain motor vehicle license suspensions, revocations, or bars,
for the appropriation and distribution of the penalties
collected, and for the imposition and payment of 
fees for probation and parole, and concerning inmate employment
in private industry, amended by the Senate, and moved that the
House concur in the following Senate amendment H-1991:

H-1991

 1     Amend House File 734, as amended, passed, and
 2   reprinted by the House, as follows:
 3     1.  Page 1, line 4, by inserting after the word
 4   "privilege" the following:  "for a conviction".
 5     2.  Page 1, line 6, by inserting after the word
 6   "dollars." the following:  "However, for persons age
 7   nineteen or under, the civil penalty assessed shall be
 8    fifty dollars."
 9     3.  Page 1, line 17, by inserting after the word
10   "dollars." the following:  "However, for persons age
11   nineteen or under, the civil penalty assessed shall be
12   fifty dollars."
13     4.  Page 2, by inserting after line 4 the
14   following:
15     "Sec. ___.  Section 904.112, Code 1997, is amended
16   to read as follows:
17     904.112  INSTITUTIONAL RECEIPTS.
18     All institutional Institutional receipts of the
19   department of corrections shall be deposited in the
20   general fund of the state except for reimbursements
as
21   follows:
22     1.  Reimbursement for services provided to another
23   institution or state agency, rentals charged to
24   employees or other persons for room, apartment, or
25   housing, and charges for meals.
26     2.  Receipts which are specifically required to be
27   otherwise expended or deposited under this chapter.
28     Sec. ___.  Section 904.311A, Code 1997, is amended
29   to read as follows:
30     904.311A  PRISON RECYCLING FUND.
31     The Iowa prison A recycling fund for each
prison
32   institution is created and established as a separate
33   and distinct fund in the state treasury.  All moneys
34   remitted to the department for the recycling
35   operations in each fiscal year commencing with the
36   fiscal year beginning July 1, 1994, of a prison
37   institution shall be deposited in the fund
established
38   for that institution.  Notwithstanding section 12C.7,
39   subsection 2, interest or earnings on moneys deposited
40   in the each fund shall be credited to the
that fund.
41   Notwithstanding section 8.33, moneys in the each
fund
42   shall not revert to the general fund of the state at
43   the close of a fiscal year but shall remain in the
44   that fund and be used as directed in this section in
45   the succeeding fiscal year.  The treasurer of state
46   shall act as custodian of the each fund and disburse
47   moneys from the each fund as directed by the
48   department for the purpose of payment of operating
49   expenses for recycling."
50     5.  Page 6, line 16, by striking the word

Page 2  

 1   "APPROPRIATION" and inserting the following:
 2    "DEPOSIT".
 3     6.  Page 6, line 21, by striking the words
 4   "appropriated to" and inserting the following:
 5   "deposited with".
 6     7.  Title page, line 4, by striking the word
 7   "appropriation" and inserting the following:
 8   "deposit".
 9     8.  Title page, line 4, by striking the words "the
10   penalties" and inserting the following:  "penalties
11   and fees".
12     9.  By renumbering as necessary.
The motion prevailed and the House concurred in the Senate
amendment H-1991.
Lamberti of Polk moved that the bill, as 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?" (H.F. 734)

The ayes were, 99:
Arnold         	Barry          	Bell           	Bernau	Blodgett 
     	Boddicker      	Boggess        	Bradley	Brand         
	Brauns         	Brunkhorst     	Bukta          	Burnett       
	Carroll        	Cataldo        	Chapman        	Chiodo        
	Churchill	Cohoon                	Cormack        	Dinkla        
	Dix            	Doderer        	Dolecheck      	Dotzler       
	Drake          	Drees          	Eddie	Falck          	Fallon   
     	Foege          	Ford           	Frevert        	Garman    
    	Gipp           	Greig          	Greiner        	Gries      
   	Grundberg      	Hahn           	Hansen         	Heaton      
  	Holmes         	Holveck        	Houser         	Huseman      
 	Huser          	Jacobs         	Jenkins        	Jochum        
	Kinzer         	Klemme         	Koenigs        	Kreiman       
	Kremer         	Lamberti       	Larkin         	Larson        
	Lord           	Martin         	Mascher        	May           
	Mertz          	Metcalf        	Meyer          	Millage       
	Moreland       	Mundie         	Murphy         	Myers         
	Nelson         	O'Brien        	Osterhaus      	Rants         
	Rayhons        	Reynolds-Knight	Richardson     	Scherrman     
	Schrader       	Shoultz        	Siegrist	Sukup          	Taylor
        	Teig           	Thomas         	Thomson        	Tyrrell
       	Van Fossen     	
Van Maanen     	Vande Hoef     	Veenstra       	Warnstadt     
	Weidman        	Weigel         	Welter         	Whitead       
	Wise           	Witt           	Mr. Speaker
			  Corbett

The nays were, none.

Absent or not voting, 1:

Connors
The bill having received a constitutional majority was declared
to have passed the House and the title, as amended, was agreed
to.
IMMEDIATE MESSAGE
Gipp of Winneshiek asked and received unanimous consent that
House File 734 be immediately messaged to the Senate.
The House stood at ease at 6:52 p.m., until the fall of the
gavel.
The House resumed session at 7:12 p.m., Speaker Corbett in the
chair.
MOTION TO RECONSIDER PREVAILED
Millage of Scott called up for consideration the motion to
reconsider Senate File 542, filed on April 28, 1997, and moved
to reconsider the vote by which Senate File 542, a bill for an
act relating to and making supplemental appropriations for the
fiscal year beginning July 1, 1996, and providing an effective
date, passed the House and was placed on its last reading on
April 28, 1997.
A non-record roll call was requested.
The ayes were 60, nays none.
The motion prevailed and the House reconsidered Senate File 542.
Brunkhorst of Bremer asked and received unanimous consent to
reconsider the vote by which amendment H-1930 was adopted, found
on page 1634 of the House Journal.
Brunkhorst of Bremer asked and received unanimous consent to
withdraw amendment H-1930 filed by him on April 24, 1997,
placing out of order amendment H-1941, filed by Brunkhorst on
April 28, 1997.
Millage of Scott offered the following amendment H-1992 filed by
him from the floor and moved its adoption:

H-1992

 1     Amend Senate File 542, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  Page 8, by inserting before line 3 the
 4   following:
 5     "___.  To the department of education to develop an
 6   initiative to improve access to education through
 7   distance learning in postsecondary institutions:
 8  		 $	     50,000"
 9     2.  Page 8, by inserting after line 7 the
10   following:
11     "Sec. ___.  FISCAL YEAR 1997-1998 LOTTERY TRANSFER.
12   Notwithstanding the requirement in section 99E.10,
13   subsection 1, to transfer lottery revenue remaining
14   after expenses are deducted, notwithstanding the
15   requirement under section 99E.20, subsection 2, for
16   the commissioner to certify and transfer a portion of
17   the lottery fund to the CLEAN fund, and
18   notwithstanding the appropriations and allocations in
19   section 99E.34, all lottery revenues received during
20   the fiscal year beginning July 1, 1997, and ending
21   June 30, 1998, after deductions as provided in section
22   99E.10, subsection 1, and as appropriated under any
23   Act of the Seventy-seventh General Assembly, 1997
24   Session, shall not be transferred to and deposited
25   into the CLEAN fund but shall be transferred and
26   credited to the general fund of the state."
27     3.  Page 10, by inserting after line 10 the
28   following:
29                        "DIVISION    
30     Sec. ___.  Section 279.51, subsection 1, unnumbered
31   paragraph 1, Code 1997, is amended to read as follows:
32     There is appropriated from the general fund of the
33   state to the department of education for the fiscal
34   year beginning July 1, 1996 1997, and each
succeeding
35   fiscal year, the sum of fourteen fifteen million
five
36   one hundred twenty seventy thousand dollars.
37     Sec. ___.  Section 279.51, subsection 1, paragraph
38   b, Code 1997, is amended to read as follows:
39     b.  For the fiscal year beginning July 1, 1996
40   1997, and for each succeeding fiscal year, seven
eight
41   million six three hundred seventy twenty
thousand
42    dollars of the funds appropriated shall be allocated
43   to the child development coordinating council
44   established in chapter 256A for the purposes set out
45   in subsection 2 of this section and section 256A.3.
46                        DIVISION    
47     Sec. ___.  NEW SECTION.  12C.26  TOBACCO SETTLEMENT
48   FUND.
49     A tobacco settlement fund is created in the office
50   of the treasurer of state.  After payment of

Page 2  

 1   litigation costs, the state portion of any moneys paid
 2   to the state by tobacco companies in settlement of the
 3   state's lawsuit for recovery of public expenditures
 4   associated with tobacco use shall be deposited in the
 5   tobacco settlement fund.  Moneys deposited in the fund
 6   shall be used only as provided in appropriations from
 7   the fund to the department of human services for the
 8   medical assistance program and to the Iowa department
 9   of public health for programs to reduce smoking by
10   teenage youth.  For purposes of this section,
11   "litigation costs" are those costs itemized by the
12   attorney general and submitted to and approved by the
13   general assembly.
14     Sec. ___.  1997 Iowa Acts, House File 715, section
15   9, subsection 3, unnumbered paragraph 1, if enacted,
16   is amended to read as follows:
17     For the purposes of this subsection, the term
18   "poverty level" means the poverty level defined by the
19   poverty income guidelines published by the United
20   States department of health and human services.
21   Effective October July 1, 1997, the department shall
22   increase to 125 percent the maximum federal poverty
23   level used to determine eligibility for state child
24   care assistance.  Based upon the availability of the
25   funding provided in subsection 2 the department shall
26   establish waiting lists for state child care
27   assistance in descending order of prioritization as
28   follows:
29     Sec. ___.  1997 Iowa Acts, Senate File 131, section
30   1, amending section 239.14, if enacted, is repealed.
31     Sec. ___.  1997 Iowa Acts, Senate File 131, section
32   2, amending section 239.17, if enacted, is repealed.
33                        DIVISION    
34     Sec. ___.  BUDGETING FOR RESULTS.
35     1.  For the purposes of this section, unless the
36   context otherwise requires, the term "budgeting for
37   results" for a department or establishment as defined
38   in chapter 8 means the budgeting process which
39   includes steps for identifying and measuring desired
40   results by use of results-oriented performance
41   measures.  Under budgeting for results the performance
42   measures are developed by a department or
43   establishment in collaboration with the department of
44   management and the legislative fiscal bureau for a
45   program administered by the department or
46   establishment.
47     2.  If a new program commences on or after July 1,
48   1997, under a department or establishment or the
49   source of funding for a program administered by a
50   department or establishment is changed by law from the

Page 3

 1   source of funding used in the previous fiscal year,
 2   the program may be included in budgeting for results
 3   for the fiscal years beginning July 1, 1997, and July
 4   1, 1998.
 5     3.  It is the intent of the general assembly to
 6   consider requiring that all programs administered by
 7   departments and establishments will be included in
 8   budgeting for results.
 9     4.  The departments and establishments utilizing
10   budgeting for results, shall collect data as
11   determined by the department of management in
12   collaboration with the legislative fiscal bureau, for
13   use in evaluating the programs included in budgeting
14   for results.  The data shall measure the effectiveness
15   of a program in achieving the stated desired results.
16   Analysis of the data and evaluations of the
17   effectiveness of a program in achieving the desired
18   results shall be submitted by the departments and
19   establishments to the governor and general assembly
20   for use in making budgetary and policy decisions.
21                                  DIVISION ___
22     Sec. ___.  NEW SECTION.  692.2A  CRIMINAL HISTORY
23   DATA CHECK PREPAYMENT FUND.
24     1.  A criminal history data check prepayment fund
25   is created in the state treasury under the control of
26   the department for the purpose of allowing any nonlaw
27   enforcement agency or person to deposit moneys as an
28   advance on fees required to conduct criminal history
29   data checks as provided in section 692.2.
30     2.  The department shall adopt rules governing the
31   fund, including the crediting of deposits made to the
32   fund.  Prepaid fees deposited in the fund are
33   appropriated to the department for use as provided in
34   section 692.2.
35     3.  Interest or earnings on moneys deposited in the
36   fund shall not be credited to the fund or to the
37   agency or person who deposited the money but shall be
38   deposited in the general fund of the state as provided
39   in section 12C.7. Notwithstanding section 8.33, moneys
40   remaining in the criminal history data check
41   prepayment fund at the end of a fiscal year shall not
42   revert to the general fund of the state.
43     Sec. ___.  DIRECTOR OF DEPARTMENT OF COMMERCE.
44   Notwithstanding section 546.2, subsection 2, the
45   governor may reappoint the commissioner of insurance
46   to be the director of the department of commerce for a
47   second year beginning July 1, 1997.
48     Sec. ___.  1996 Iowa Acts, chapter 1218, section
49   10, unnumbered paragraph 3, is amended to read as
50   follows:

Page 4

 1     Of the appropriation in this section, $50,000 shall
 2   be used for costs associated with the renovation and
 3   repair of the Allison monument located on the state
 4   capitol complex.  An effort shall be made by the
 5   department of education to match this appropriation
 6   from the citizens and the school children of Iowa as
 7   occurred when the monument was initially built.
 8     Sec. ___.  HOUSE FILE 453 - EFFECTIVE DATE.  1997
 9   Iowa Acts, House File 453, if enacted, being deemed of
10  immediate importance, takes effect upon enactment of
11   this Act.
12     Sec. 100.  FEDERAL WELFARE REFORM COMPLIANCE _
13   CHILD SUPPORT ENFORCEMENT.  For the fiscal year
14   beginning July 1, 1996, and ending June 30, 1997,
15   after $36,370,000 of child support revenue has been
16   collected by the department of human services and
17   deposited in the family investment program account
18   established in section 239B.11, notwithstanding
19   section 8.33, not more than $1,000,000 of the
20   remaining child support revenue collected and
21   deposited in the account which remains unobligated or
22   unexpended at the close of the fiscal year ending June
23   30, 1996, shall not revert to the general fund of the
24   state, but shall remain available and is appropriated
25   to the department for use in the succeeding fiscal
26   year for the purpose of implementing child support
27   enforcement changes necessitated by federal welfare
28   reform legislation.
29     Sec. ___.  EFFECTIVE DATE.  Section 100 of this
30   division of this Act, relating to federal welfare
31   reform compliance, being deemed of immediate
32   importance, takes effect upon enactment.
33                        DIVISION    "
34     4.  Title page, line 1, by inserting before the
35   word "appropriations" the following:  "and other".
36     5.  Title page, by striking lines 2 and 3, and
37   inserting the following:  "fiscal year beginning July
38   1, 1996, and subsequent fiscal years, reestablishing a
39   domestic abuse services income tax checkoff, including
40   retroactive applicability provisions, and providing
41   effective dates."
42     6.  By renumbering, relettering, or redesignating
43   and correcting internal references as necessary.
Amendment H-1992 was adopted.
Millage of Scott offered the following amendment H-1993 filed by
Millage, Jacobs and Greig from the floor and moved its adoption:

H-1993

 1     Amend Senate File 542, as amended, passed, and
 2   reprinted by the Senate, as follows:
 3     1.  Page 10, by inserting after line 10 the
 4   following:
 5                        "DIVISION    
 6     Sec. ___.  VALUE-ADDED PRODUCTION ASSISTANCE.
 7     1.  It is the intent of the general assembly to
 8   support the creation of an ag-initiative 2000
 9   subaccount in the community economic betterment
10   program account as provided in and for the purposes
11   stated in the Senate amendment, H-1975, to House File
12   731.  As evidence of this support, the general
13   assembly directs the department of economic
14   development to use resources under existing financial
15   assistance programs to support the organization of
16   innovative ownership and management entities involving
17   valued-added agricultural processes.  The department
18   shall explore all capital assistance opportunities and
19   may consider proposals from and negotiate with
20   potential entities.
21     2.  The legislative council shall create a four-
22   member task force consisting of one senator of each
23   party and one representative of each party designated
24   by their respective leadership which shall assist the
25   department of economic development and the office of
26   the governor in any negotiations.
27     3.  Proposals developed in conjunction with the
28   department, the governor, and the task force for
29   providing capital incentives or capital assistance
30   presently not available shall be presented to the
31   general assembly for its approval.
32     4.  The department of economic development shall
33   report to the task force and the office of the
34   governor on its activities pursuant to this section."
35     2.  By renumbering as necessary.
Amendment H-1993 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?" (S.F. 542)

The ayes were, 96:
Arnold         	Barry          	Bell           	Bernau        
	Blodgett       	Boddicker      	Boggess        	Bradley       
	Brand          	Brauns         	Brunkhorst     	Bukta         
	Burnett        	Carroll        	Cataldo        	Chapman       
	Chiodo         	Churchill      	Cohoon                	Cormack 
      	Dinkla         	Dix            	Doderer        	Dolecheck
     	Dotzler        	Drake          	Drees          	Eddie     
    	Falck	Foege          	Ford           	Frevert       
	Garman         	Gipp           	Greig          	Greiner        	
Gries          	Grundberg      	Hahn           	Hansen        
	Heaton         	Holmes         	Holveck        	Houser        
	Huseman        	Huser          	Jacobs         	Jenkins       
	Jochum         	Kinzer         	Klemme         	Koenigs       
	Kreiman        	Kremer	Lamberti       	Larkin        
	Larson	Lord           	Martin         	Mascher        	May     
      	Mertz          	Metcalf        	Meyer          	Millage  
     	Moreland       	Mundie         	Murphy         	Myers     
    	Nelson         	Osterhaus      	Rants          	Rayhons    
   	Reynolds-Knight	Richardson     	Scherrman      	Schrader    
  	Shoultz        	Siegrist       	Sukup          	Taylor       
 	Teig           	Thomas         	Thomson        	Tyrrell       
	Van Fossen     	Van Maanen	Vande Hoef     	Veenstra      
	Warnstadt      	Weidman        	Weigel         	Welter        
	Whitead        	Witt           	Mr. Speaker
			  Corbett
The nays were, 3:
Fallon         	O'Brien        	Wise           	

Absent or not voting, 1:
Connors
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 542 be immediately messaged to the Senate.

REMARKS BY MINORITY LEADER SCHRADER
Schrader of Marion offered the following remarks:
Thank you, Mr. Speaker.
Ladies and Gentlemen of the House, it's a tradition for the
leaders to give a speech on the closing night of the session.
The things I want to say are very important to me because I want
to recognize some people that I think have made me look very
good. They have made the Democratic caucus look very good, and
have made the General Assembly look very good. First I would
like to say thanks to Mark and Carolyn from my office, and
Paulee, Anna, Tom, Jennifer, Jim, Mary, Ed, and Joe from our
caucus staff. When you have great folks working for you, it's
very easy for you to look good when you're out here in front. I
also want to say thanks to the members of my caucus. Some of you
folks on the other side of the aisle have served in the
minority. Some of us served in the majority. Anyone that has
served in each place knows darn well where you want to be. We're
not where we'd like to be, but we made the best of being the
minority party. And I thank the members of the House Democratic
caucus for all their hard work and dedication to the people of
Iowa, and their dedication to one another.
To the members of the Republican caucus, I'd like to say thanks
to you also. We've had our share of fights this session, but
we've had our share of agreements. Either way, I think we work
together in a way that the people of Iowa expect us to, and I
think the people of Iowa are proud of us because of it. It's a
far cry from the way things go on in Washington, D.C., and when
I traveled to other states and talked with other leaders, I
found that it's a far cry from the way things work in other
legislatures. Much of the reason for that is because of the
leaders that you folks on the Republican side of the aisle have
chosen.
Representative Siegrist has done a great job of running this
place. I don't believe I've ever stood and asked a question at
the end of the day or the end of the week that didn't get an
answer. And that answer was accurate. I appreciate that,
Representative Siegrist. I think you've done a great job.
Speaker Corbett, I commend you on the hard work that you've
done, leading your party through this session and the leadership
that you've provided for your caucus and for the House. I think
that the people of Iowa again are proud of the work that we've
accomplished, and that's because of your leadership. I thank you
for that. It's going to be a great summer, and like all of you
I've got another life, and I'm looking forward to finding a dirt
track somewhere, taking this suit off, and donning some blue
jeans.
Thanks very much.
REMARKS BY MAJORITY LEADER SIEGRIST
Siegrist of Pottawattamie offered the following remarks:
Thank you, Mr. Speaker.
Ladies and Gentlemen of the House, this may be a brief speech
because coming in this morning, I was not confident we would be
going home tonight. However, I am thrilled that I stand before
you, just a few minutes away from adjourning the 1997
legislative session. It has been an extremely hectic week.
However, I did find time to take a look at my opening day speech
that I gave 107 days ago. At that time, I outlined a narrow but
focused agenda for the majority party. I said that we would do
something that needed to be done, and that was to fully fund our
commitments to the educational system in the State of Iowa. The
second item was to pass Learnfare. Thirdly, we wanted to pass
the "Restore the Outdoors" plan to repair our state park system.
Fourthly, was to urge the U.S. Congress to pass a balanced
budget amendment. Fifthly, was to make an impact on the juvenile
crime problem in the State of Iowa, and finally, to cut the tax
burden in the State of Iowa by eliminating the inheritance tax,
cut income taxes across the board, and provide property tax
relief. I am happy to say that we accomplished all six goals
this legislative session.
Beyond that, many other issues were addressed, ranging from
providing more state money for needed housing programs in the
state, to fully funding the tax credits to the cities and
counties and schools in the State of Iowa. We have ensured that
our roads will be safer by enacting some of the toughest drunk
driver laws in the nation. We have provided a tremendous
increase in our child care funding for welfare recipients as we
work to make sure our welfare recipients can find jobs and
become tax paying citizens of our state. We provided additional
funding for case management so that our senior citizens can stay
longer in their own homes and maintain their dignity as they
grow old in our state. The area of juvenile crime saw 
substantial new funding ranging from building additional beds at
Eldora to providing additional money for preventive programs for
our delinquent juveniles.
And we made sure that our regents institutions maintain their
highly regarded academic image by embarking upon a major capital
improvement program at each of the institutions. The list goes
on and on, and I know that when we leave here, all of us -
Democrats and Republicans - will be talking about the many good
things that we did. I think that the legacy of this session will
be realized several months from now as this state reaps the
benefits of a reduced tax burden and the creation of many new
jobs as a result of our actions this year.
I am confident that the actions we have taken this year will
result in higher wages for our workers, more jobs for our
citizens, and a better future for our children. All in all, a
very productive legislative session for the people of Iowa.
As we go home tonight, I am sure that I cannot thank everyone
that needs to be thanked, but I will try. Thanks to everyone who
makes this place run - from the doormen to the phone operators,
to the people in the Fiscal Bureau, the Service Bureau, the post
office, and, of course, the Pages. This place wouldn't be as
pleasant to work in without your help. Special thanks go to our
caucus staffs. I won't name all of the members of the Republican
caucus staff, but suffice it to say, you make a huge difference
to the future of Iowa by making sure we have the proper and
necessary information. Thanks again!
Liz, Alyce, Gayle and Jeff, thank you for helping me run this
place as smoothly as I think it was run this year. To the
members of the lobby whom I have been avoiding the last several
days, thanks once again. You have proven that Iowa is a unique,
honest and upstanding state to watch the political process. I
have found every one of you to be honest, competent and full of
integrity. The information you provide us allows us to make the
best decisions for the people of Iowa. While nationally,
lobbyist seems to be a bad word, in this chamber, we recognize
you as people necessary in the legislative process.
To the members of the press, as always, thank you for your
coverage of this body. I have always found the reporting to be
fair, even handed, and enlightening. I have tried to be honest
with you, and I have appreciated the respect you have shown me.
You always report the facts; however, on certain days, I wonder
about some of the columns you write.
To Representative Schrader, may the roads be circular without
bumps, and the minority caucus, thank you. We had disagreements,
but by and large, we worked in a very cooperative manner and it
made this session more pleasant. To House Republicans and the
leadership team, thank you. We did it together and we have much
to be proud of.
Susan, Becky and Sarah - what more can I say that I haven't said
before. You guys run the place and I try not to screw it up. And
finally, Mr. Speaker, thank you for all your hard work in what
could have been a stressful relationship because of perceived
future political plans. We worked hand-in-hand and got the job
done.
Ladies and Gentlemen, it is time to go home. Working together,
we have made a difference. It hasn't been easy but we got it
done. The stress and pressure of the session is about to be
released. As Jimmy Buffet, my favorite writer, who I am going to
see in concert this weekend, said in a recent song - "What's the
remedy? We are not talking about rocket science. The answer to
your question's very plain to see. You need a holiday. Take a
holiday."
Mr. Speaker, Ladies and Gentlemen, I am going to go home, see my
wife, Valerie, and my son, Evan, and take a holiday and
re-energize myself. I look forward to seeing you all next
January.
Thank you very much.
REMARKS BY SPEAKER CORBETT
Speaker Corbett offered the following remarks:
Well to my colleagues, or should I say my friends, I want to
thank you for your services here, your work this year, your
dedication to the state of Iowa, and your commitment to making
the future of this state bright. I want to thank you
Representative Schrader for your cooperation. As one of those
members who has had a chance to serve in the minority, I
appreciate and understand the role and the impact that you have
during this session. So thank you for your cooperation. For
Representative Siegrist, I thank you for your leadership, and
you're lucky we're not meeting in that primary next June. For
all the people who work behind the scenes to keep this House
rolling, thank you very much. There's a natural tendency in
politics to have friction between the two parties. Golda Meir
said, "You cannot shake hands with a clenched fist." It is my
hope that when we walk out of those doors in a few minutes, we
pat each other on the back and share in the successes of this
year. And let's work to build on our joint accomplishments in
setting an agenda for next year. I started off the beginning of
this session quoting a quote I've said, "The greatest work you
will ever do is within the walls of your own home." They call
this place a house, and we've had some great accomplishments
within the walls of this house. But it is not our home, and it's
time to go home. So I wish you all the best and have a great
summer. Thank you for your work.
ADOPTION OF HOUSE CONCURRENT RESOLUTION 27
Siegrist of Pottawattamie asked and received unanimous consent
for the immediate consideration of House Concurrent Resolution
27, a concurrent resolution to provide for adjournment sine die,
as follows and moved its adoption:

 1          HOUSE CONCURRENT RESOLUTION 27
 2                 by Siegrist and Schrader
 3  A House concurrent resolution to provide for
 4     adjournment sine die.
 5     Be It Resolved By The House Of Representatives, The
 6  Senate Concurring, That when adjournment is had on
 7   Tuesday, April 29, 1997, it shall be the final
 8  adjournment of the 1997 Regular Session of the
 9  Seventy-seventh General Assembly.
The motion prevailed and the resolution was adopted.
EXPLANATIONS OF VOTE
On Monday, April 28, I inadvertently voted "nay" on House File
733. I meant to vote "aye."
METCALF of Polk
I was necessarily absent from the House chamber on April 28 and
29, 1997. Had I been present, I would have voted "aye" on House
Files 142, 266, 456, 540, 612, 636, 642, 662, 702, 722, 724,
726, 730, 733, 734 and Senate Files 161, 410, 529, 541, 542, 544
and 553.
NELSON of Marshall
BILLS 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 bills have 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 29th day of April, 1997: House Files 306, 307, 492, 515,
615, 616, 628, 643, 645, 680, 692, 694, 701, and 717.

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 29, 1997, he approved and transmitted to the Secretary
of State the following bills:
House File 331, an act relating to the authorization of school
officials to conduct searches of students, student protected
areas, lockers, desks, and other facilities and spaces and
including effective and applicability provisions.
Senate File 193, an act relating to the election of trustees for
special land use districts.
HOUSE AND SENATE FILES REREFERRED TO COMMITTEE
Under the provisions of House Rule 45, the following House Files
and Senate Files are rereferred to the committees listed:

	House File 504	Ways and Means
	House File 564	Commerce-Regulation
	House File 580	State Government
	House File 639	Labor and Industrial Relations
	House File 663	Judiciary
	House File 665	Judiciary
	House File 667	Judiciary
	House File 670	Commerce-Regulation
	House File 672	Agriculture
	House File 681	Environmental Protection
	House File 682	Local Government
	House File 706	Agriculture
	House File 716	Ways and Means
	House File 720	Ways and Means
	Senate File 40	Judiciary
	Senate File 117	Judiciary
	Senate File 357	State Government
	Senate File 359	State Government
	Senate File 420	Transportation
	Senate File 429	Natural Resources
	Senate File 459	Human Resources
PRESENTATION OF VISITORS
The Speaker announced that the following visitors were present
in the House chamber:
Forty-eight 4th grade students from Woodbury Central School,
Moville, accompanied by Mr. Jefferes, Miss Perret, and Mrs.
Love. By Klemme of Plymouth.
Ten Talented and Gifted Leadership class students from
Orient-Macksburg School, Orient, accompanied by Roberta Hepburn.
By Kremer of Buchanan and Dinkla of Guthrie.
Fifty-two 4th grade students from East Elementary School,
Ankeny, accompanied by Julie Snyder. By Lamberti of Polk.
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
1997\488	Joey Woody, Cedar Falls - For breaking the University
Collegiate record for 400 Intermediate Hurdles, 1997 Drake
Relays.
1997\489	Erik Naaktgeboren, Central City - For attaining the
rank of Eagle Scout, the highest rank in the Boy Scouts of
America.
1997\490	Michael J. Feller, Sibley-Ocheyedan High School, Sibley
- For being selected a Northwest Regional Winner for the Des
Moines Register's 1997 Academic All-State Team.
1997\491	Mike Wallinga, Hartley-Melvin-Sanborn High School,
Hartley - For being named to the Des Moines Register's 1997
Academic All-State Team.
1997\492	Jill Dinkla, Guthrie Center - For receiving 2nd place
in the 1997 State of Iowa Knights of Columbus Spelling Bee.
1997\493	Michael Rosenberg of West High School, Waterloo - For
being named to the Des Moines Register's 1997 Academic All-State
Team.
1997\494	Sarah Gray, Cedar Falls - For winning three straight
titles in the 1997 Drake Relays High School 3,000 run.
PETITION FILED
The following petition was received and placed on file:
By Holveck of Polk from One thousand one hundred forty-six
Supporters of Public Libraries favoring "Enrich Iowa: Fund
Libraries."
AMENDMENTS FILED

H_1975	H.F.	731	Senate Amendment
H_1977	H.F.	731	Richardson of Warren
H_1978	H.F.	731	Osterhaus of Jackson
H_1979	H.F.	731	Chiodo of Polk
H_1980	H.F.	731	Osterhaus of Jackson
H_1981	H.F.	731	Chiodo of Polk
H_1982	H.F.	731	Chiodo of Polk
H_1985	H.F.	731	Chiodo of Polk
H_1986	H.F.	731	Chiodo of Polk
H_1987	H.F.	731	Fallon of Polk
H_1988	H.F.	731	Fallon of Polk
H_1990	H.F.	697	Senate Amendment
The House stood at ease at 7:37 p.m., until the fall of the
gavel.

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