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House Journal: Tuesday, April 21, 1998

One Hundredth Calendar Day - Sixty-seventh Session Day

Hall of the House of Representatives
Des Moines, Iowa, Tuesday, April 21, 1998
The House met pursuant to adjournment at 8:45 a.m., Speaker
Corbett in the chair.
Prayer was offered by Reverend Carl Heuss, Christian Reformed
Church, Des Moines. A group from Arthur High School, Odebolt
sang "Prayer of the Children" under the direction of Linda
Johnson.
The Journal of Monday, April 20, 1998 was approved.
CONSIDERATION OF SENATE JOINT RESOLUTION 2004
The House resumed consideration of Senate Joint Resolution 2004,
a joint resolution proposing amendments to the Constitution of
the State of Iowa relating to the state budget by limiting state
general fund expenditures and restricting certain state tax
revenue changes, previously deferred.
Weigel of Chickasaw offered the following amendment H-9081 filed
by him and moved its adoption:

H-9081

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, line 10, by striking the word
 4   "principles," and inserting the following:
 5   "principles established by the governmental accounting
 6   standards board or its successor,".
A non-record roll call was requested.
The ayes were 37, nays 52.
Amendment H-9081 lost.
Bernau of Story offered the following amendment H-9101 filed by
him and moved its adoption:

H-9101

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, line 11, by inserting after the word
 4   "purposes." the following:  "Any state government plan
 5   for retirement shall be fully funded at all times, and
 6   the state shall use consistent standards in accordance
 7   with generally accepted actuarial and accounting
 8   principles for the plan."
Rants of Woodbury in the chair at 9:42 a.m.
Amendment H-9101 lost.
Chapman of Linn offered amendment H-9065 filed by her as follows:
H-9065

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, by inserting after line 11 the
 4   following:
 5     "   .  The General Assembly shall provide state
 6   reimbursement to local taxing jurisdictions for one
 7   hundred percent of the loss of property tax revenues
 8   resulting from property tax credits passed by the
 9   General Assembly and shall provide one hundred percent
10   of the cost to local governmental units for
11   obligations of the state as provided by law."
Speaker Corbett in the chair at 10:20 a.m.
Chapman of Linn offered the following amendment H-9112, to
amendment H-9065, filed by her and moved its adoption:

H-9112

 1     Amend the amendment, H-9065, to Senate Joint
 2   Resolution 2004, as passed by the Senate, as follows:
 3     1.  Page 1, line 11, by inserting after the word
 4   "law." the following:  "However, the General Assembly
 5   may provide for less than one hundred percent
 6   reimbursement of such revenue loss or costs of such
 7   obligations if the bill providing for this is approved
 8   by at least three-fifths vote of the whole membership
 9   of each house of the General Assembly."
Amendment H-9112 was adopted.
Larson of Linn rose on a point of order that amendment H-9065
was not germane.
The Speaker ruled the point well taken and amendment H-9065 not
germane.
Chapman of Linn asked for unanimous consent to suspend the rules
to consider amendment H-9065.
Objection was raised.
Chapman of Linn moved to suspend the rules to consider amendment
H-9065, as amended.
A non-record roll call was requested.
The ayes were 39, nays 48.
The motion to suspend the rules lost.
Weigel of Chickasaw offered amendment H-9071 filed by him as
follows:

H-9071

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, by inserting after line 11 the
 4   following:
 5     "___.  Local taxing jurisdictions shall be
 6   reimbursed by the state one hundred percent of the
 7   loss in property tax revenue resulting from property
 8   tax credits provided to the following:
 9     a.  Homesteads based upon home ownership.
10    b.  Agricultural land based upon school district
11   levies.
12    c.  Family farms based upon school district levies.
13    d.  Military veterans based upon time and length of
14   service."
Larson of Linn rose on a point of order that amendment H-9071
was not germane.
The Speaker ruled the point well taken and amendment H-9071 not
germane.
Frevert of Palo Alto offered amendment H-9087 filed by her and
requested division as follows:

H-9087

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:

H-9087A

 3     1.  Page 3, by inserting after line 11 the
 4   following:
 5     "___.  The budget submitted by the Governor and
 6   passed by the General Assembly shall provide full
 7   funding of any education instructional support
 8   programs provided for by law."
 9     2. Page 3, by inserting after line 11 the
10   following:
11     "___.  The budget submitted by the Governor and
12   passed by the General Assembly shall provide full
13   funding of any educational programs provided for by
14   law for talented and gifted students in elementary and
15   secondary grades."

H-9087B

16     3.  Page 3, by inserting after line 11 the
17   following:
18     "___.  The budget submitted by the Governor and
19   passed by the General Assembly shall provide for
20   timely state aid payments to schools."
21     4.  By renumbering as necessary.
Frevert of Palo Alto asked and received unanimous consent to
withdraw amendment H-9087A placing amendment H-9142 filed by
Frevert of Palo Alto on April 13, 1998 out of order.
Larson of Linn rose on a point of order that amendment H-9087B
was not germane.
The Speaker ruled the point not well taken and amendment H-9087B
germane.
Frevert of Palo Alto moved the adoption of amendment H-9087B.
Amendment H-9087B lost.
Larkin of Lee offered amendment H-9100 filed by him as follows:

H-9100

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, by inserting after line 11 the
 4   following:
 5     "___.  A local government may file a lawsuit
 6   challenging a budget passed by the General Assembly if
 7   the budget passed by the General Assembly does not
 8   adequately fund obligations of the state as provided
 9   by law."
10     2.  By renumbering as necessary.
Larson of Linn rose on a point of order that amendment H-9100
was not germane.
The Speaker ruled the point well taken and amendment H-9100 not
germane.
Larkin of Lee asked for unanimous consent to suspend the rules
to consider amendment H-9100.
Objection was raised.
Larkin of Lee moved to suspend the rules to consider amendment
H-9100.
A non-record roll call was requested.
The ayes were 43, nays 50.
The motion to suspend the rules lost.
Siegrist of Pottawattamie asked and received unanimous consent
that Senate Joint Resolution 2004 be temporarily deferred.
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 21, 1998, refused to concur in the House
amendment to the Senate amendment to the following bill in which
the concurrence of the Senate was asked:
House File 2498, a bill for an act relating to and making
appropriations to certain state departments, agencies, funds,
and certain other entities, providing for regulatory authority,
and other properly related matters.
MARY PAT GUNDERSON, Secretary
HOUSE INSISTS
Brunkhorst of Bremer called up for consideration House File
2498, a bill for an act relating to and making appropriations to
certain state departments, agencies, funds, and certain other
entities, providing for regulatory authority, and other properly
related matters and moved that the House insist on its
amendment, which motion prevailed.

CONFERENCE COMMITTEE APPOINTED
(House File 2498)
The Speaker announced the appointment of the conference
committee to consider the differences between the House and
Senate concerning House File 2498: Brunkhorst of Bremer, Chair;
Van Maanen of Marion, Holmes of Scott, Chiodo of Polk and Huser
of Polk.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that House File 2498 be immediately messaged to the Senate.
HOUSE REFUSED TO CONCUR
Churchill of Polk called up for consideration Senate File 2296,
a bill for an act appropriating funds to the department of
economic development, certain board of regents institutions, the
department of workforce development, the public employment
relations board, making related statutory changes, and providing
an effective date provision, amended by the House, further
amended by the Senate and moved that the House concur in the
following Senate amendment H-9327:

H-9327

 1     Amend the House amendment, S-5540, to Senate File
 2   2296, as amended, passed, and reprinted by the Senate,
 3   as follows:
 4     1.  By striking page 1, line 3, through page 8,
 5   line 16, and inserting the following:
 6     "   .  By striking everything after the enacting
 7   clause and inserting the following:
 8     "Section 1.  DEPARTMENT OF ECONOMIC DEVELOPMENT.
 9   There is appropriated from the general fund of the
10   state and other designated funds to the department of
11   economic development for the fiscal year beginning
12   July 1, 1998, and ending June 30, 1999, the following
13   amounts, or so much thereof as is necessary, to be
14   used for the purposes designated:
15     1.  ADMINISTRATIVE SERVICES DIVISION
16     a.  General administration
17     For salaries, support, maintenance, miscellaneous
18   purposes, and for providing that a business receiving
19   moneys from the department for the purpose of job
20   creation shall make available ten percent of the new
21   jobs created for promise jobs program participants who
22   are qualified for the jobs created and for not more
23   than the following full-time equivalent positions:
24  		 $	  1,494,231
25  		 FTEs	      25.75
26     One of the full-time equivalent positions
27   authorized in this lettered paragraph relates to the
28   transition of personnel services contractors to full-
29   time equivalent positions.  The merit system
30   provisions of chapter 19A and the provisions of the
31   state and union collective bargaining agreements shall
32   not govern movement into these full-time equivalent
33   positions until September 1, 1998.  These provisions
34   relating to the transition of personnel services
35   contractors to full-time equivalent positions, chapter
36   19A, and collective bargaining agreements are void
37   after September 1, 1998.
38     b.  Film office
39     For salaries, support, maintenance, miscellaneous
40   purposes, and for not more than the following full-
41   time equivalent positions:
42  		 $	    253,632
43  		 FTEs	       2.00
44     2.  BUSINESS DEVELOPMENT DIVISION
45     a.  Business development operations
46     For salaries, support, maintenance, miscellaneous
47   purposes, for not more than the following full-time
48   equivalent positions, for allocating $495,000 to
49   support activities in conjunction with the Iowa
50   manufacturing technology center, $150,000 to the

Page 2  

 1   graphic arts center, and for a strategic marketing
 2   effort for workforce development:
 3  		 $	  3,940,232
 4  		 FTEs	      22.75
 5     Four of the full-time equivalent positions
 6   authorized in this lettered paragraph relate to the
 7   transition of personnel services contractors to full-
 8   time equivalent positions.  The merit system
 9   provisions of chapter 19A and the provisions of the
10   state and union collective bargaining agreements shall
11   not govern movement into these full-time equivalent
12   positions until September 1, 1998.  These provisions
13   relating to the transition of personnel services
14   contractors to full-time equivalent positions, chapter
15   19A, and collective bargaining agreements are void
16   after September 1, 1998.
17     b.  Small business programs
18     For salaries, support, maintenance, miscellaneous
19   purposes, and for not more than the following full-
20   time equivalent positions for the small business
21   program, the small business advisory council, and
22   targeted small business program:
23  		 $	    450,622
24  		 FTEs	       5.00
25     c.  Federal procurement office
26     For salaries, support, maintenance, miscellaneous
27   purposes, and for not more than the following full-
28   time equivalent positions:
29  		 $	    103,967
30  		 FTEs	       3.00
31     Notwithstanding section 8.33, moneys remaining
32   unencumbered or unobligated on June 30, 1999, shall
33   not revert and shall be available for expenditure
34   during the fiscal year beginning July 1, 1999, for the
35   same purposes.
36     d.  Strategic investment fund
37     For deposit in the strategic investment fund for
38   salaries, support, for not more than the following
39   full-time equivalent positions:
40  		 $	  6,803,513
41  		 FTEs	      12.50
42     Two of the full-time equivalent positions
43   authorized in this lettered paragraph relate to the
44   transition of personnel services contractors to full-
45   time equivalent positions.  The merit system
46   provisions of chapter 19A and the provisions of the
47   state and union collective bargaining agreements shall
48   not govern movement into these full-time equivalent
49   positions until September 1, 1998.  These provisions
50   relating to the transition of personnel services

Page 3

 1   contractors to full-time equivalent positions, chapter
 2   19A, and collective bargaining agreements are void
 3   after September 1, 1998.
 4     The department may allocate from the strategic
 5   investment fund up to $600,000 for the entrepreneurial
 6   ventures assistance program.  The department shall
 7   seek the advice, consultation, and cooperation of the
 8   entrepreneurial centers and the major benefactor of
 9   the centers in the implementation of the
10   entrepreneurial ventures assistance program.
11     The department may allocate from the strategic
12   investment fund up to $100,000 for the microbusiness
13   rural enterprise assistance program under section
14   15.114.
15     The department shall provide an annual report on
16   the progress made by the department in making the
17   community economic betterment program a self-
18   sustaining, revolving loan program.
19     e.  Insurance economic development
20     There is appropriated from moneys collected by the
21   division of insurance in excess of the anticipated
22   gross revenues under section 505.7, subsection 3, to
23   the department for the fiscal year beginning July 1,
24   1998, and ending June 30, 1999, the following amount,
25   or so much thereof as is necessary, for insurance
26   economic development and international insurance
27   economic development:
28  		 $	    200,000
29     f.  Value-added agriculture
30     There is appropriated from the moneys available to
31   support value-added agricultural products and
32   processes, four percent, or so much thereof as is
33   necessary, of the total moneys available to support
34   value-added agricultural products and processes
35   pursuant to section 423.24 each quarter for
36   administration of the value-added agricultural
37   products and processes financial assistance program as
38   provided in section 15E.111, including salaries,
39   support, maintenance, miscellaneous purposes, and for
40   not more than 2.00 FTEs.
41     The department shall collaborate with the
42   university of northern Iowa on a strategic initiative
43   to develop ag-based industrial lubrication technology
44   and to create projects to deploy the technology in
45   commercial applications.  Notwithstanding the
46   requirements of section 15E.111 and the administrative
47   rules for value-added agricultural products and
48   processes, the department shall allocate $150,000 for
49   this initiative.
50     3.  COMMUNITY DEVELOPMENT DIVISION

Page 4

 1     a.  Community assistance
 2     For salaries, support, maintenance, miscellaneous
 3   purposes, and for not more than the following full-
 4   time equivalent positions for administration of the
 5   community economic preparedness program, the Iowa
 6   community betterment program, and the city development
 7   board:
 8  		 $	    654,547
 9  		 FTEs	       8.50
10     b.  Main street/rural main street program
11     For salaries and support for not more than the
12   following full-time equivalent positions:
13  		 $	    425,219
14  		 FTEs	       3.00
15     Notwithstanding section 8.33, moneys committed to
16   grantees under contract from the general fund of the
17   state that remain unexpended on June 30, 1999, shall
18   not revert to any fund but shall be available for
19   expenditure for purposes of the contract during the
20   fiscal year beginning July 1, 1999.
21     c.  Community development program
22     For salaries, support, maintenance, miscellaneous
23   purposes, for not more than the following full-time
24   equivalent positions, for rural resource coordination,
25   rural community leadership, rural innovations grant
26   program, and the rural enterprise fund:
27  		 $	    827,215
28  		 FTEs	       7.50
29     Three of the full-time equivalent positions
30   authorized in this lettered paragraph relate to the
31   transition of personnel services contractors to full-
32   time equivalent positions.  The merit system
33   provisions of chapter 19A and the provisions of the
34   state and union collective bargaining agreements shall
35   not govern movement into these full-time equivalent
36   positions until September 1, 1998.  These provisions
37   relating to the transition of personnel services
38   contractors to full-time equivalent positions, chapter
39   19A, and collective bargaining agreements are void
40   after September 1, 1998.
41     There is appropriated from the rural community 2000
42   program revolving fund established in section 15.287
43   to provide to Iowa's councils of governments funds for
44   planning and technical assistance to local
45   governments:
46  		 $	    150,000
47     There is appropriated from the rural community 2000
48   program revolving fund established in section 15.287
49   to the rural development program for the purposes of
50   the program including the rural enterprise fund and

Page 5

 1   collaborative skills development training:
 2  		 $	    484,343
 3     Notwithstanding section 8.33, moneys committed to
 4   grantees under contract from the general fund of the
 5   state or through transfers from the Iowa community
 6   development loan fund or from the rural community 2000
 7   program revolving fund that remain unexpended on June
 8   30, 1999, shall not revert but shall be available for
 9   expenditure for purposes of the contract during the
10   fiscal year beginning July 1, 1999.
11     d.  Community development block grant and HOME
12     For administration and related federal housing and
13   urban development grant administration for salaries,
14   support, maintenance, miscellaneous purposes, and for
15   not more than the following full-time equivalent
16   positions:
17  		 $	    418,737
18  		 FTEs	      21.75
19     Three of the full-time equivalent positions
20   authorized in this lettered paragraph relate to the
21   transition of personnel services contractors to full-
22   time equivalent positions.  The merit system
23   provisions of chapter 19A and the provisions of the
24   state and union collective bargaining agreements shall
25   not govern movement into these full-time equivalent
26   positions until September 1, 1998.  These provisions
27   relating to the transition of personnel services
28   contractors to full-time equivalent positions, chapter
29   19A, and collective bargaining agreements are void
30   after September 1, 1998.
31     e.  Housing development fund
32     For providing technical assistance to communities
33   of all sizes and local financial institutions to help
34   meet local housing needs and to provide and transfer
35   matching funds for the HOME program:
36  		 $	  1,300,000
37     Notwithstanding section 8.33, moneys committed to
38   grantees under contract from the housing development
39   fund and moneys transferred for matching funds for the
40   HOME program that remain unexpended or unobligated on
41   June 30, 1999, shall not revert to any fund but shall
42   be available for obligation and expenditure for
43   purposes of those programs during the fiscal year
44   beginning July 1, 1999.
45     f.  Shelter assistance program
46     For the purposes of the shelter assistance fund:
47  		 $	    400,000
48     4.  INTERNATIONAL DIVISION
49     a.  International trade operations
50     For salaries, support, maintenance, miscellaneous

Page 6

 1   purposes, for support of foreign representation and
 2   trade offices, and for not more than the following
 3   full-time equivalent positions:
 4  		 $	  2,010,073
 5  		 FTEs	      10.00
 6     From among the full-time equivalent positions
 7   authorized by this lettered paragraph, one position
 8   shall concentrate on the export sale of grain, one on
 9   the export sale of livestock, and one on the export
10   sale of value-added agricultural products.
11     The department shall file a report every six months
12   with the general assembly in a manner consistent with
13   section 7A.11 and with the chairpersons and ranking
14   members of the joint appropriations subcommittee on
15   economic development which gives an update of all
16   activities regarding trade promotion in the Chinese
17   market.
18     b.  Export trade assistance program
19     For export trade activities, including a program to
20   encourage and increase participation in trade shows
21   and trade missions by providing financial assistance
22   to businesses for a percentage of their costs of
23   participating in trade shows and trade missions, by
24   providing for the lease/sublease of showcase space in
25   existing world trade centers, by providing temporary
26   office space for foreign buyers, international
27   prospects, and potential reverse investors, and by
28   providing other promotional and assistance activities,
29   including salaries and support:
30  		 $	    425,000
31     Notwithstanding section 8.33, moneys appropriated
32   by this lettered paragraph which remain unobligated or
33   unexpended on June 30, 1999, shall not revert to the
34   general fund of the state but shall be transferred to
35   and deposited in the strategic investment fund created
36   in section 15.313.
37     c.  Agricultural product advisory council
38     For support, maintenance, and miscellaneous
39   purposes:
40  		 $	      1,300
41     d.  For transfer to the partner state program which
42   the department may use to contract with private groups
43   or organizations which are the most appropriate to
44   administer this program and the groups and
45   organizations participating in the program shall, to
46   the fullest extent possible, provide the funds to
47   match the appropriation made in this paragraph of the
48   funds transferred:
49  		 $	    125,000
50     5.  TOURISM DIVISION

Page 7

 1     Tourism operations/advertising
 2     For salaries, support, maintenance, miscellaneous
 3   purposes, for not more than the following full-time
 4   equivalent positions:
 5  		 $	  5,038,912
 6  		 FTEs	      18.52
 7     The department may expend up to $130,000 to provide
 8   assistance to private welcome centers in the state.
 9   The department shall not provide assistance of more
10   than $10,000 to any one private welcome center.  A
11   private welcome center seeking assistance shall submit
12   a competitive application to the department and may be
13   eligible for receiving assistance if the private
14   welcome center complies with all of the following
15   criteria:
16     a.  The private welcome center is at risk of a
17   projected operating deficit.
18     b.  The private welcome center complies with
19   operational standards and requirements determined by
20   the department.
21     c.  The private welcome center submits a financial
22   plan for self-sufficiency to the department.
23     The department shall conduct a study of the public
24   and private welcome center system in the state.  The
25   department shall make recommendations to the general
26   assembly for the future operation of the system
27   including recommendations concerning funding for
28   private welcome center operations and quality
29   standards for public and private welcome centers.
30     The department shall not use the moneys
31   appropriated in this subsection, unless the department
32   develops public-private partnerships with Iowa
33   businesses in the tourism industry, Iowa tour groups,
34   Iowa tourism organizations, and political subdivisions
35   in this state to assist in the development of
36   advertising efforts.  The department shall, to the
37   fullest extent possible, develop cooperative efforts
38   for advertising with contributions from other sources.
39     Sec. 2.  COMMUNITY DEVELOPMENT LOAN FUND.
40   Notwithstanding section 15E.120, subsections 5, 6, and
41   7, and section 15.287, there is appropriated from the
42   Iowa community development loan fund all the moneys
43   available during the fiscal year beginning July 1,
44   1998, and ending June 30, 1999, to the department of
45   economic development for the community development
46   program to be used by the department for the purposes
47   of the program.
48     Sec. 3.  JOB TRAINING FUND.  Notwithstanding
49   section 15.251, subsection 2, there is appropriated
50   from the job training fund to the department of

Page 8

 1   economic development for the fiscal year beginning
 2   July 1, 1998, and ending June 30, 1999, the following
 3   amount, or so much thereof as is necessary, to be used
 4   for the purposes designated:
 5     For administration of chapter 260E, including
 6   salaries, support, maintenance, miscellaneous
 7   purposes, and for not more than the following full-
 8   time equivalent positions:
 9  		 $	    210,000
10  		 FTEs	       2.50
11     Appropriations to the department of economic
12   development for administration of chapter 260E and the
13   department of workforce development for the target
14   alliance program shall be funded on a proportional
15   basis if receipts to the job training fund are
16   insufficient to fund both appropriations in their
17   entirety.
18     Sec. 4.  WORKFORCE DEVELOPMENT FUND.  There is
19   appropriated from the workforce development fund
20   account created in section 15.342A, to the workforce
21   development fund created in section 15.343, for the
22   fiscal year beginning July 1, 1998, and ending June
23   30, 1999, the following amount, for the purposes of
24   the workforce development fund:
25  		 $	  6,850,000
26     Sec. 5.  Of all funds appropriated to or receipts
27   credited to the job training fund created in section
28   260F.6, subsection 1, up to $175,000 for the fiscal
29   year beginning July 1, 1998, and ending June 30, 1999,
30   and not more than 1.50 FTEs may be used for the
31   administration of the Iowa jobs training Act.
32     Sec. 6.  IOWA STATE UNIVERSITY.  There is
33   appropriated from the general fund of the state to the
34   Iowa state university of science and technology for
35   the fiscal year beginning July 1, 1998, and ending
36   June 30, 1999, the following amounts, or so much
37   thereof as is necessary, to be used for the purposes
38   designated:
39     1.  For funding and maintaining in their current
40   locations the existing small business development
41   centers, and for not more than the following full-time
42   equivalent positions:
43  		 $	  1,235,880
44  		 FTEs	       5.80
45     2.  For the Iowa state university of science and
46   technology research park, including salaries, support,
47   maintenance, miscellaneous purposes, and for not more
48   than the following full-time equivalent positions:
49  		 $	    376,500
50  		 FTEs	       4.31

Page 9

 1     3.  For funding the institute for physical research
 2   and technology, provided that $318,358 shall be
 3   allocated to the industrial incentive program in
 4   accordance with the intent of the general assembly,
 5   and for not more than the following full-time
 6   equivalent positions:
 7  		 $	  4,379,458
 8  		 FTEs	      46.42
 9     It is the intent of the general assembly that the
10   incentive program focus on Iowa industrial sectors and
11   seek contributions and in-kind donations from
12   businesses, industrial foundations, and trade
13   associations and that moneys for the institute for
14   physical research and technology industrial incentive
15   program shall only be allocated for projects which are
16   matched by private sector moneys for directed contract
17   research or for nondirected research.  The match
18   required of small businesses as defined in section
19   15.102, subsection 4, for directed contract research
20   or for nondirected research shall be $1 for each $3 of
21   state funds.  The match required for other businesses
22   for directed contract research or for nondirected
23   research shall be $1 for each $1 of state funds.  The
24   match required of industrial foundations or trade
25   associations shall be $1 for each $1 of state funds.
26     Iowa state university of science and technology
27   shall report annually to the joint appropriations
28   subcommittee on economic development and legislative
29   fiscal bureau the total amounts of private
30   contributions, the proportion of contributions from
31   small businesses and other businesses, and the
32   proportion for directed contract research and
33   nondirected research of benefit to Iowa businesses and
34   industrial sectors.
35     Notwithstanding section 8.33, moneys appropriated
36   for the fiscal year which remain unobligated and
37   unexpended at the end of the fiscal year shall not
38   revert but shall be available for expenditure the
39   following fiscal year.
40     Sec. 7.  UNIVERSITY OF IOWA.  There is appropriated
41   from the general fund of the state to the state
42   university of Iowa for the fiscal year beginning July
43   1, 1998, and ending June 30, 1999, the following
44   amounts, or so much thereof as is necessary, to be
45   used for the purposes designated:
46     1.  For the university of Iowa research park,
47   including salaries, support, maintenance, equipment,
48   miscellaneous purposes, and for not more than the
49   following full-time equivalent positions:
50  		 $	    331,007

Page 10

 1  		 FTEs	       4.35
 2     2.  For funding the advanced drug development
 3   program at the Oakdale research park and for not more
 4   than the following full-time equivalent positions:
 5  		 $	    262,199
 6  		 FTEs	       2.85
 7     The board of regents shall submit a report on the
 8   progress of regents institutions in meeting the
 9   strategic plan for technology transfer and economic
10   development to the chairpersons of the joint
11   appropriations subcommittee on economic development,
12   the joint appropriations subcommittee on education,
13   the majority leader and minority leader of the senate,
14   the majority and minority leaders of the house of
15   representatives, the secretary of the senate, the
16   chief clerk of the house of representatives, and the
17   legislative fiscal bureau by December 1, 1998.
18     Sec. 8.  UNIVERSITY OF NORTHERN IOWA.  There is
19   appropriated from the general fund of the state to the
20   university of northern Iowa for the fiscal year
21   beginning July 1, 1998, and ending June 30, 1999, the
22   following amounts, or so much thereof as is necessary,
23   to be used for the purposes designated:
24     1.  For the metal casting institute, including
25   salaries, support, maintenance, miscellaneous
26   purposes, and for not more than the following full-
27   time equivalent positions:
28  		 $	    166,349
29  		 FTEs	       2.75
30     2.  For the institute of decision making, including
31   salaries, support, maintenance, miscellaneous
32   purposes, and for not more than the following full-
33   time equivalent positions:
34  		 $	    688,308
35  		 FTEs	       8.00
36     Sec. 9.  DEPARTMENT OF WORKFORCE DEVELOPMENT.
37   There is appropriated from the general fund of the
38   state, to the department of workforce development for
39   the fiscal year beginning July 1, 1998, and ending
40   June 30, 1999, the following amounts, or so much
41   thereof as is necessary, for the purposes designated:
42     1.  DIVISION OF LABOR SERVICES
43     For the division of labor services, including
44   salaries, support, maintenance, miscellaneous
45   purposes, and for not more than the following full-
46   time equivalent positions:
47  		 $	  2,902,693
48  		 FTEs	      93.00
49     From the contractor registration fees, the division
50   of labor services shall reimburse the department of

Page 11

 1   inspections and appeals for all costs associated with
 2   hearings under chapter 91C, relating to contractor
 3   registration.
 4     2.  DIVISION OF INDUSTRIAL SERVICES
 5     For salaries, support, maintenance, miscellaneous
 6   purposes, and for not more than the following full-
 7   time equivalent positions:
 8  		 $	  2,390,927
 9  		 FTEs	      34.00
10     The division of industrial services shall continue
11   charging a $65 filing fee for workers' compensation
12   cases.  The filing fee shall be paid by the petitioner
13   of a claim.  However, the fee can be taxed as a cost
14   and paid by the losing party, except in cases where it
15   would impose an undue hardship or be unjust under the
16   circumstances.
17     3.  For salaries, support, maintenance,
18   miscellaneous purposes, and for not more than the
19   following full-time equivalent position for the
20   workforce development state and regional boards:
21  		 $	    106,929
22  		 FTE	       1.00
23     4.  For salaries, support, maintenance,
24   miscellaneous purposes for collection of labor market
25   information, and for not more than the following full-
26   time equivalent position:
27  		 $	     65,354
28  		 FTE	       1.00
29     5.  WORKFORCE DEVELOPMENT AREA
30     For salaries, support, maintenance, and
31   miscellaneous purposes for the development and
32   maintenance of a workforce sufficient in size and
33   skill to meet the occupational demands of each
34   workforce development area, and for workforce
35   development programs, including those provided for in
36   sections 84A.7, 84A.8, and 84A.9.  Each region shall
37   be required to provide an equal amount of matching
38   funds from local sources:
39  		 $	  1,480,022
40  		 FTEs	       4.20
41     The department shall expend $923,180 on youth
42   workforce programs.  Youth conservation corps program
43   moneys shall be allocated among the regions which have
44   developed a youth conservation corps program.
45     Notwithstanding section 8.33, moneys committed to
46   grantees under contract that remain unexpended on June
47   30, 1999, shall not revert to any fund but shall be
48   available for expenditure for purposes of the contract
49   during the fiscal year beginning July 1, 1999.
50     6.  LABOR MANAGEMENT COORDINATOR

Page 12

 1     For salaries, support, maintenance, miscellaneous
 2   purposes, and for not more than the following full-
 3   time equivalent position:
 4  		 $	     66,851
 5  		 FTE	       0.50
 6     The Iowa workforce development board shall be
 7   responsible for the functions previously conducted by
 8   the state labor management cooperation council.  The
 9   board, the department of workforce development, and
10   the labor management coordinator shall cooperate to
11   improve communications and facilitate dialogue between
12   labor, management, and government on workforce
13   development problems facing the state, to form in-
14   plant labor management committees, and to provide
15   technical assistance to establish effective labor
16   management policies in the state.
17     7.  WELFARE-TO-WORK MATCHING FUNDS
18     For matching funds for welfare-to-work grants
19   authorized through the United States department of
20   labor to provide additional services for the hardest
21   to employ recipients of family investment program
22   benefits:
23  		 $	    888,633
24     Notwithstanding section 8.33, moneys appropriated
25   in this subsection which remain unexpended or
26   unobligated on June 30, 1999, shall not revert to the
27   general fund of the state but shall remain available
28   for expenditure for the same purpose during the fiscal
29   year beginning July 1, 1999.
30     Sec. 10.  JOB TRAINING FUND.  Notwithstanding
31   section 15.251, subsection 2, there is appropriated
32   from the job training fund to the department of
33   workforce development for the fiscal year beginning
34   July 1, 1998, and ending June 30, 1999, the following
35   amount, or so much thereof as is necessary, to be used
36   for the purpose designated:
37     For the target alliance program:
38  		 $	     30,000
39     Sec. 11.  ADMINISTRATIVE CONTRIBUTION SURCHARGE
40   FUND.  There is appropriated from the administrative
41   contribution surcharge fund of the state to the
42   department of workforce development for the fiscal
43   year beginning July 1, 1998, and ending June 30, 1999,
44   the following amount, or so much thereof as is
45   necessary, for the purposes designated:
46     Notwithstanding section 96.7, subsection 12,
47   paragraph "c", for salaries, support, maintenance,
48   conducting labor availability surveys, miscellaneous
49   purposes, and for not more than the following full-
50   time equivalent positions:

Page 13

 1  		 $	  7,100,000
 2  		 FTEs	     125.42
 3     Sec. 12.  EMPLOYMENT SECURITY CONTINGENCY FUND.
 4   There is appropriated from the special employment
 5   security contingency fund to the department of
 6   workforce development for the fiscal year beginning
 7   July 1, 1998, and ending June 30, 1999, the following
 8   amounts, or so much thereof as is necessary, for the
 9   purposes designated:
10     1.  DIVISION OF LABOR SERVICES
11     For salaries, support, maintenance, and
12   miscellaneous purposes:
13  		 $	    296,000
14     2.  DIVISION OF INDUSTRIAL SERVICES
15     For salaries, support, maintenance, and
16   miscellaneous purposes:
17  		 $	    175,000
18     Any additional penalty and interest revenue may be
19   used to accomplish the mission of the department.
20     Sec. 13.  PUBLIC EMPLOYMENT RELATIONS BOARD.  There
21   is appropriated from the general fund of the state to
22   the public employment relations board for the fiscal
23   year beginning July 1, 1998, and ending June 30, 1999,
24   the following amount, or so much thereof as is
25   necessary, for the purposes designated:
26     For salaries, support, maintenance, miscellaneous
27   purposes, and for not more than the following full-
28   time equivalent positions:
29  		 $	    857,844
30  		 FTEs	      12.80
31     Sec. 14.  CAREER ASSESSMENT TOOL DEVELOPMENT.
32   There is appropriated from the general fund of the
33   state to the department of economic development for
34   the fiscal year beginning July 1, 1998, and ending
35   June 30, 1999, the following amount, or so much
36   thereof as is necessary, to be used for the purposes
37   designated:
38     For purposes of development of a career assessment
39   tool as provided in this section:
40  		 $	    100,000
41     Moneys appropriated under this section shall be
42   used by the department of economic development,
43   following a request for proposals, to enter into a
44   contract for the development of a career assessment
45   tool with an Iowa-based business in the career
46   assessment field that has made initial documented
47   investments in career assessment research and which
48   demonstrates the ability to work with and market the
49   proposed assessment tool.  The assessment tool shall
50   be age-appropriate for middle and secondary school

Page 14

 1   students and capable of measuring student attributes,
 2   both unique and general, which affect career pathway
 3   options.  In addition, the assessment tool shall be
 4   effective in addressing the lifelong learning needs of
 5   adults, social welfare recipients, and individuals
 6   within the correctional system.  The assessment tool
 7   shall be valid under current educational standards,
 8   and aligned with the United States secretary of
 9   labor's commission on achieving necessary skills and
10   with guidelines published by the national career
11   development association.  The assessment tool may be
12   developed in consultation with private and public
13   entities involved in the education of students of all
14   ages, business and industry, labor organizations,
15   school-to-work program representatives, and social
16   welfare, economic development, and workforce
17   development groups.
18     Sec. 15.  WORKFORCE RECRUITMENT INITIATIVE.
19     1.  FINDINGS.  The general assembly finds that
20   growing levels of employment coupled with historically
21   low levels of unemployment are evidence of increasing
22   scarcity of skilled workers.  Limited access to a
23   skilled workforce is preventing Iowa companies from
24   increasing employment and production, and is a barrier
25   to sustained and stable economic growth.
26     Further, the general assembly finds that in order
27   to increase the size of the workforce, a partnership
28   of private sector employers, communities and public
29   sector organizations should be formed to develop and
30   implement a workforce recruitment initiative.  The
31   initiative is intended to include strategies for
32   recruiting new workers that will meet the workforce
33   needs of Iowa employers who are unable to fill high
34   quality jobs.
35     2.  ESTABLISHMENT.  The general assembly finds an
36   immediate need for the establishment of a workforce
37   recruitment initiative with projects intended to
38   retain and recruit new skilled and unskilled employees
39   to fill the needs of both communities and businesses.
40   The department of economic development and the
41   department of workforce development shall enter into a
42   cooperative memorandum of understanding to accomplish
43   purposes of this initiative.  The memorandum shall
44   include, but not be limited to, provisions for the
45   sharing and utilization of job matching databases and
46   technology to accomplish the purposes of the
47   initiative and for an allocation out of moneys
48   appropriated to the department of economic development
49   for purposes of the workforce recruitment initiative
50   for payment of employee salaries related to the

Page 15

 1   workforce recruitment initiative.
 2     3.  STATE AGENCY COOPERATION.  The department of
 3   economic development and the department of workforce
 4   development shall seek and obtain the cooperation of
 5   any state agency and local economic development
 6   organization actively involved in workforce
 7   development initiatives which could provide employee
 8   recruitment and marketing assistance to accomplish the
 9   workforce recruitment initiative.
10     4.  FTEs.  For purposes of the workforce
11   recruitment initiative, the department of workforce
12   development shall increase the number of full-time
13   equivalent positions authorized for the department
14   during the fiscal year beginning July 1, 1998, by 2.00
15   FTEs through moneys authorized for expenditure in this
16   Act and allocated pursuant to the cooperative
17   memorandum of understanding entered into with the
18   department of economic development as provided in
19   section 2.
20     5.  APPROPRIATION.  There is appropriated from the
21   general fund of the state to the department of
22   economic development for the fiscal year beginning
23   July 1, 1998, and ending June 30, 1999, the following
24   amount, or so much thereof as is necessary, to be used
25   for the purposes designated:
26     For workforce recruitment initiative purposes
27   including technical support and maintenance of
28   databases and an internet web site, for a joint
29   proposal of the department of economic development and
30   the department of workforce development relating to
31   the workforce recruitment initiative which shall
32   include provisions for private sector contributions,
33   and including salaries, support, maintenance,
34   miscellaneous purposes, and for not more than the
35   following full-time equivalent positions:
36  		 $	    300,000
37  		 FTEs	       3.00
38     Notwithstanding section 8.33, moneys appropriated
39   in this subsection which remain unexpended or
40   unobligated on June 30, 1999, shall not revert to the
41   general fund of the state but shall remain available
42   for expenditure in the fiscal year beginning July 1,
43   1999, for the purposes designated.
44     6.  STRATEGIC INVESTMENT FUND ALLOCATION.  There is
45   allocated from the strategic investment fund to the
46   department of economic development for the fiscal year
47   beginning July 1, 1998, and ending June 30, 1999,
48   $150,000 to be used for the purchase of equipment,
49   software, laptop computers, and other necessary
50   technological equipment.

Page 16

 1     7.  BUSINESS DEVELOPMENT DIVISION.  The business
 2   development division of the department of economic
 3   development may expend from moneys appropriated to the
 4   department and allocated to the business development
 5   division, for business development operations, up to
 6   $400,000 for increasing the labor availability and
 7   recruitment efforts in the state in all occupational
 8   areas and as deemed necessary.
 9     Sec. 16.  NEW SECTION.  15.361  TITLE.
10     This part shall be known and may be cited as the
11   "Certified School to Career Program".
12     Sec. 17.  NEW SECTION.  15.362  DEFINITIONS.
13     As used in this part, unless the context otherwise
14   requires:
15     1.  "Certified school to career program" or
16   "certified program" means a sequenced and articulated
17   secondary and postsecondary program registered as an
18   apprenticeship program under 29 C.F.R. subtit. A, pt.
19   29, which is conducted pursuant to an agreement as
20   provided in section 15.364 or a program approved by
21   the state board of education, in conjunction with the
22   department of economic development, as meeting the
23   standards enumerated in section 15.363, that
24   integrates a secondary school curriculum with private
25   sector job training which places students in job
26   internships, and which is designed to continue into
27   postsecondary education and that will result in
28   teaching new skills and adding value to the wage-
29   earning potential of participants and increase their
30   long-term employability in the state and which is
31   conducted pursuant to an agreement as provided in
32   section 15.364.
33     2.  "Participant" means an individual between the
34   ages of sixteen and twenty-four who is enrolled in a
35   public or private secondary or postsecondary school
36   and who initiated participation in a certified school
37   to career program as part of secondary school
38   education.
39     3.  "Payroll expenditures" means the base wages
40   actually paid by an employer to a participant plus the
41   amount held in trust to be applied toward the
42   participant's postsecondary education.
43     4.  "Sponsor" means any person, association,
44   committee, or organization operating a school to
45   career program and in whose name the program is or
46   will be registered or approved.
47     Sec. 18.  NEW SECTION.  15.363  CERTIFICATION
48   STANDARDS.
49     The state board of education, in consultation with
50   the department of economic development, shall adopt

Page 17

 1   rules pursuant to chapter 17A to guide the board and
 2   department in determining whether a potential school
 3   to career program should be approved.
 4     A school to career program which is approved by the
 5   state board of education in conjunction with the
 6   department of economic development shall comply with
 7   all of the following standards:
 8     1.  The program is conducted pursuant to an
 9   organized, written plan embodying the terms and
10   conditions of employment, job training, classroom
11   instruction, and supervision of one or more
12   participants, subscribed to by a sponsor who has
13   undertaken to carry out the school to career program.
14     2.  The program complies with all state and federal
15   laws pertaining to the workplace.
16     3.  The employer agrees to assign an employee to
17   serve as a mentor for a participant.  The mentor's
18   occupation shall be in the same career pathway as the
19   career interests of the participant.
20     4.  The program involves an eligible postsecondary
21   institution as defined in section 261C.3.
22     5.  Other standards adopted by rule by the state
23   board of education after consultation with the
24   department of economic development.
25     Sec. 19.  NEW SECTION.  15.364  CERTIFIED PROGRAM
26   AGREEMENT.
27     The certified program shall be conducted pursuant
28   to a signed written agreement between each participant
29   and the employer which contains at least the following
30   provisions:
31     1.  The names and signatures of the participant and
32   the sponsor or employer and the signature of a parent
33   or guardian if the participant is a minor.
34     2.  A description of the career field in which the
35   participant is to be trained, and the beginning date
36   and duration of the training.
37     3.  The employer's agreement to provide paid
38   employment, at a base wage, for the participant during
39   the summer months after the participant's junior and
40   senior years in high school and after the
41   participant's first year of postsecondary education.
42     4.  The participant and employer shall agree upon
43   set minimum academic standards which must be
44   maintained through the participant's secondary and
45   postsecondary education.
46     5.  This base wage paid to the participant shall
47   not be less than the minimum wage prescribed by Iowa
48   law or the federal Fair Labor Standards Act, whichever
49   is applicable.
50     6.  That in addition to the base wage paid to the

Page 18

 1   participant, the employer shall pay an additional sum
 2   to be held in trust to be applied toward the
 3   participant's postsecondary education required for
 4   completion of the certified program.  The additional
 5   amount must be not less than an amount determined by
 6   the department of economic development to be
 7   sufficient to provide payment of tuition expenses
 8   toward completion of not more than two academic years
 9   of the required postsecondary education component of
10   the certified program at an Iowa community college or
11   an Iowa public or private college or university.  This
12   amount shall be held in trust for the benefit of the
13   participant pursuant to rules adopted by the
14   department of economic development.  Payment into an
15   ERISA-approved fund for the benefit of the participant
16   shall satisfy this requirement.  The specific fund
17   shall be specified in the agreement.
18     7.  The participant's agreement to work for the
19   employer for at least two years following the
20   completion of the participant's postsecondary
21   education required by the certified program.  However,
22   the agreement may provide for additional education and
23   work commitments beyond the two years.
24     8.  If the participant does not complete the two-
25   year employment obligation, the participant's
26   agreement to repay to the employer the amount paid by
27   the employer toward the participant's postsecondary
28   education expenses pursuant to subsection 6.
29     9.  a.  That if a participant does not complete the
30   certified program contemplated by the agreement after
31   entering a postsecondary education program, any
32   unexpended funds being held in trust for the
33   participant's postsecondary education shall be paid
34   back to the employer.  In addition the participant
35   must repay to the employer amounts paid from the trust
36   which were expended on the participant's behalf for
37   postsecondary education.
38     b.  That if a participant does not complete the
39   certified program contemplated by the agreement prior
40   to entering a postsecondary education program, one-
41   half of the moneys being held in trust for the
42   participant's postsecondary education shall be paid to
43   a postsecondary education institution as defined in
44   section 261C.3 of the participant's choice to pay
45   tuition or expenses of the participant.  The other
46   one-half of the trust moneys shall be paid back to the
47   employer.  Any moneys to be transferred for the
48   benefit of the participant which are not transferred
49   within five years for purposes of education at the
50   designated postsecondary institution, shall be paid

Page 19

 1   back to the employer.
 2     Sec. 20.  NEW SECTION.  15.365  PAYROLL EXPENDITURE
 3   REFUND.
 4     1.  An employer who employs a participant in a
 5   certified school to career program may claim a refund
 6   of twenty percent of the employer's payroll
 7   expenditures for each participant in the certified
 8   program.  The refund is limited to the first four
 9   hundred hours of payroll expenditures per participant
10   for each calendar year the participant is in the
11   certified program, not to exceed three years per
12   participant.
13     2.  To receive a refund under subsection 1 for a
14   calendar year, the employer shall file the claim by
15   July 1 of the following calendar year.  The claim
16   shall be filed on forms provided by the department of
17   economic development and the employer shall provide
18   such information regarding the employer's
19   participation in a certified school to career program
20   as the department may require.  Forms should be
21   designed such that claims for refunds for more than
22   one participant may be made on a single form.
23     3.  For each fiscal year of the fiscal period
24   beginning July 1, 1999, and ending June 30, 2004,
25   there is appropriated up to five hundred thousand
26   dollars annually from the general fund of the state to
27   the department of economic development to pay refunds
28   under this section.  If the amount appropriated in a
29   fiscal year is insufficient to pay all refund claims
30   for the calendar year in full, each claimant shall
31   receive a proportion of the claimant's refund claim
32   equal to the ratio of the amount appropriated to the
33   total amount of refund claims.  Any unpaid portion of
34   a claim shall not be paid from a subsequent fiscal
35   year appropriation.
36     4.  The department of economic development shall
37   consult with the department of revenue and finance for
38   purposes of this section.  The department of economic
39   development shall adopt rules as deemed necessary to
40   carry out the purposes of the certified school to
41   career program.
42     Sec. 21.  NEW SECTION.  15.366  CUSTOMER TRACKING
43   SYSTEM.
44     All participants and sponsors participating in a
45   certified school to career program shall be included
46   in the customer tracking system implemented by the
47   department of workforce development pursuant to
48   section 84A.5.
49     Sec. 22.  NEW SECTION.  15.367  REPEAL.
50     This part of chapter 15 is repealed June 30, 2004.

Page 20

 1   However, any contracts in existence on June 30, 2004,
 2   shall continue to be valid and each party to such
 3   contract is obligated to perform as required under
 4   such contract.  However, no employer is entitled to
 5   any payroll expenditure refund for payroll
 6   expenditures incurred after December 31, 2002.
 7     Sec. 23.  NEW SECTION.  15A.8  LOANS PAYABLE FROM
 8   NEW JOBS CREDIT FROM WITHHOLDING.
 9     1.  As an additional means to provide moneys for
10   the payment of the costs of a new jobs training
11   project or multiple projects under chapter 260E and
12   this chapter, a community college may make an advance
13   or loan, including an interfund transfer or a loan
14   from moneys on hand and legally available, to be paid
15   from the same sources and secured in the same manner
16   as certificates described in sections 15A.7 and
17   260E.6.
18     2.  Revenues from a job training agreement received
19   prior to the completion by a business of its repayment
20   obligation for a project and not pledged to
21   certificates, loans, or advances, and not necessary
22   for the payment of principal and interest maturing on
23   such certificates, loans, or advances, may be applied
24   by the community college to the reduction of any other
25   outstanding certificates, loans, or advances.
26     Sec. 24.  Section 15E.83, Code 1997, is amended to
27   read as follows:
28     15E.83  SEED CAPITAL CORPORATION.
29     1.  The Iowa seed capital corporation shall be
30   incorporated under chapter 504A.  The purpose of the
31   corporation shall be to provide seed capital to start-
32   up and emerging growth companies in Iowa that are
33   bringing new products and processes to the
34   marketplace, and it shall be the goal of the
35   corporation to financially support the establishment
36   and growth of start-up and emerging growth companies
37   that can contribute to the economic diversity of the
38   state and provide general and specific economic
39   benefits to the state.  The corporation shall only
40   provide seed capital or financial assistance to Iowa
41   businesses.  The corporation shall not be regarded as
42   a state agency, except for purposes of chapters 17A
43   and 69, and a member of the board is not considered a
44   state employee, except for purposes of chapter 669.
45   An individual employed by the corporation is a state
46   employee for purposes of the Iowa public employees'
47   retirement system, state health and dental plans, and
48   other state employee benefit plans and chapter 669.
49   Chapters 8, 18, 19A, and 20 and other provisions of
50   law that relate to requirements or restrictions

Page 21

 1   dealing with state personnel or state funds do not
 2   apply to the corporation and any employees of the
 3   board or corporation except to the extent provided in
 4   this division.  Chapters 21 and 22 shall apply to
 5   activities of the corporation and to employees of the
 6   board or corporation except to the extent provided in
 7   this division.
 8     2.  The corporation shall be governed by a board of
 9   seven directors who shall serve a term of four
years.
10   Of the seven directors, four shall be persons
11   experienced in business finance and employed at a bank
12   or other financial institution, be a certified public
13   accountant, be an attorney, or be a licensed
14   stockbroker.  Each director shall serve at the
15   pleasure of the governor and shall be appointed by the
16   governor, subject to confirmation by the senate
17   pursuant to section 2.32.  A director is eligible for
18   reappointment.  A vacancy on the board of directors
19   shall be filled in the same manner as an original
20   appointment.
21     3.  The board of directors shall annually elect one
22   member as chairperson and one member as secretary.
23   The board may elect other officers of the corporation
24   as necessary.  Members shall be reimbursed for
25   necessary expenses incurred in the performance of
26   duties from funds appropriated to the corporation.
27     4 3.  Each director of the corporation shall take
28   an oath of office and the record of each oath shall be
29   filed in the office of the secretary of state.
30     5 4.  The corporation shall receive information
and
31   cooperate with other agencies of the state and the
32   political subdivisions of the state.
33     Sec. 25.  Section 15E.85, Code 1997, is amended to
34   read as follows:
35     15E.85  BOARD OF DIRECTORS.
36     The powers of the corporation are vested in and
37   shall be exercised by the board of directors.  Four
38   members of the board constitute a quorum and an
39   affirmative vote of at least four of the members
40   present at a meeting is necessary before an action may
41   be taken by the board.  An action taken by the board
42   shall be authorized by resolution at a regular or
43   special meeting and takes effect immediately unless
44   the resolution specifies otherwise.  Notice of a
45   meeting shall be given orally or in writing not less
46   than forty-eight hours prior to the meeting.
47     Sec. 26.  Section 15E.87, Code 1997, is amended to
48   read as follows:
49     15E.87  CORPORATE PURPOSE - POWERS.
50     The purpose of the corporation is to stimulate and

Page 22

 1   encourage the development of new products within Iowa
 2   by the infusion of financial aid for invention and
 3   innovation in situations in which financial aid would
 4   not otherwise be reasonably available from commercial
 5   sources.  For this purpose the corporation has the
 6   following powers:
 7     1.  To have perpetual succession as a corporate
 8   body and to adopt bylaws, policies, and procedures for
 9   the regulation of its affairs and conduct of its
10   business consistent with the purposes of this
11   division.
12     2.  To enter into venture agreements with persons
13   doing business in Iowa upon conditions and terms which
14   are consistent with the purposes of this division for
15   the advancement of financial aid to the persons.  The
16   financial aid advanced shall be for the development of
17   specific products, procedures, and techniques which
18   are to be developed and produced in this state.  The
19   corporation shall condition the agreements upon
20   contractual assurances that the benefits of increasing
21   or maintaining employment and tax revenues shall
22   remain in Iowa.
23     3.  To receive and accept aid or contributions from
24   a source of money, property, labor, or other things of
25   value to be used to carry out the purposes of this
26   division including gifts or grants from a department
27   or agency of the United States or any state.
28     4.  To issue notes and bonds as provided under this
29   division.
30     5 2.  To hold patents, copyrights, trademarks, or
31   other evidences of protection or exclusivity issued
32   under the laws of this state or the United States to
33   any products.
34     6 3.  To employ assistants, agents, and other
35   employees and to engage consultants, attorneys, and
36   appraisers as necessary or desirable to carry out the
37   purposes of the corporation.
38     7 4.  To make and enter into contracts and
39   agreements necessary or incidental to its performance
40   of the duties and the powers granted to the
41   corporation.
42     8 5.  To sue and be sued, plead, and adopt a seal.
43     9 6.  With the approval of the treasurer of state,
44   to invest funds which are not needed for immediate use
45   or disbursement, including funds held in reserve, in
46   obligations issued or guaranteed by the state or the
47   United States.
48     10 7.  To procure insurance against a loss in
49   connection with its property and other assets.
50     11 8.  To the extent permitted under a corporation

Page 23

 1   contract with other persons, to consent to a
 2   termination, modification, forgiveness, or other
 3   change in the terms of a contractual right, payment,
 4   royalty, contract, or agreement.
 5     12 9.  To take necessary action to render bonds
 6   issued under this division more marketable.
 7     Sec. 27.  Section 422.16A, Code Supplement 1997, is
 8   amended to read as follows:
 9     422.16A  JOB TRAINING WITHHOLDING - CERTIFICATION
10   AND TRANSFER.
11     Upon the completion by a business of its repayment
12   obligation for a training project funded under chapter
13   260E, including a job training project funded under
14   chapter 260E and section 15A.8 or repaid in whole or
15   in part by the supplemental new jobs credit from
16   withholding under section 15A.7 or section 15.331, the
17   sponsoring community college shall report to the
18   department of economic development the amount of
19   withholding paid by the business to the community
20   college during the final twelve months of withholding
21   payments.  The department of economic development
22   shall notify the department of revenue and finance of
23   that amount.  The department shall credit to the
24   workforce development fund account established in
25   section 15.342A twenty-five percent of that amount
26   each quarter for a period of ten years.  If the amount
27   of withholding from the business or employer is
28   insufficient, the department shall prorate the
29   quarterly amount credited to the workforce development
30   fund account.  The maximum amount from all employers
31   which shall be transferred to the workforce
32   development fund account in any year is ten million
33   dollars.
34     Sec. 28.  LIQUIDATION OF THE IOWA SEED CAPITAL
35   CORPORATION.  Notwithstanding sections 15E.81 through
36   15E.94, sections 15E.181 through 15E.184, and 1997
37   Iowa Acts, chapter 143, sections 5 and 6, it is the
38   intent of the general assembly that the Iowa seed
39   capital corporation shall be liquidated or sold in an
40   orderly manner.  On May 31, 1998, the terms of the
41   board members of the Iowa seed capital corporation
42   shall terminate, the Iowa seed capital corporation
43   shall be renamed the ISCC liquidation corporation, and
44   a three-person board shall be constituted to complete
45   the orderly liquidation or sale of the assets of the
46   ISCC liquidation corporation.  The ISCC liquidation
47   corporation board shall consist of the commissioner of
48   insurance or the commissioner's designee, the
49   superintendent of banking or the superintendent's
50   designee, and the treasurer of state or the

Page 24

 1   treasurer's designee.  The members of the ISCC
 2   liquidation corporation board and any staff providing
 3   assistance to the board shall not be liable for their
 4   acts or omissions in connection with the liquidation
 5   or sale of the corporation.  The ISCC liquidation
 6   corporation board shall close the corporation offices
 7   at 200 East Grand, Des Moines, Iowa, by June 30, 1998,
 8   terminate the officers and staff of the corporation by
 9   June 30, 1998, and shall not hire a new permanent or
10   temporary staff to operate this corporation.
11     The staff of the treasurer of state shall provide
12   administrative support to the ISCC liquidation
13   corporation board and the corporation shall reimburse
14   the treasurer of state for the reasonable costs of
15   providing administrative support.  The attorney
16   general shall be consulted and shall provide legal
17   support throughout the liquidation and sale process
18   and the corporation shall reimburse the attorney
19   general for the reasonable costs of providing any such
20   consultation and legal support.
21     The ISCC liquidation corporation board's goals in
22   supervising the liquidation or sale of the corporation
23   are to maximize the net revenue to the state and
24   minimize the impact to the companies involved.  The
25   board shall not make any new investments during the
26   liquidation period, except for those necessary to
27   protect and maintain its current holdings.
28     The ISCC liquidation corporation board is
29   authorized to contract for the services, including
30   brokers, other financial advisors or consultants, or
31   legal advisors, necessary to complete the orderly
32   liquidation or sale of the ISCC liquidation
33   corporation.
34     The ISCC liquidation corporation board may
35   determine the potential administrative, legal, and
36   contractual service costs for the liquidation or sale
37   of the corporation and may maintain a prudent reserve
38   fund from liquid assets of the corporation for such
39   purposes.  Upon the unanimous vote of the ISCC
40   liquidation corporation board the remainder of the
41   liquid assets shall be transferred to the strategic
42   investment fund established in section 15.313.
43     Following the complete liquidation and dissolution
44   of the corporation or the sale of the corporation, all
45   remaining moneys shall be transferred to the strategic
46   investment fund.  Upon transfer of the remaining
47   moneys to the strategic investment fund, the ISCC
48   liquidation corporation board shall be dissolved.
49     Sec. 29.  SHELTER ASSISTANCE FUND.  In providing
50   moneys from the shelter assistance fund to homeless

Page 25

 1   shelter programs, the department of economic
 2   development shall explore the potential of allocating
 3   moneys to homeless shelter programs based in part on
 4   their ability to move their clients toward self-
 5   sufficiency.
 6     Sec. 30.  The department of economic development
 7   and the department of workforce development shall
 8   within the budget proposals for the fiscal year
 9   beginning July 1, 2000, detail the number of FTEs and
10   contract employees included in the budget proposal.
11   During the budget process for the fiscal year
12   beginning July 1, 2000, the joint economic development
13   appropriation subcommittee shall examine contract
14   employees in relationship to the budgets of the
15   department of economic development and the department
16   of workforce development.
17     Sec. 31.  The department of economic development
18   shall submit a report to the general assembly as
19   provided in section 7A.11 by January 1, 1999, which
20   includes all of the following:
21     1.  A survey of all business, industry, and
22   agriculture-related international trade activities in
23   this state.  The survey shall include the types of
24   businesses and the products involved in international
25   trade and the estimated costs and revenues resulting
26   from such trade.
27     2.  A list of specific targets and targeted
28   opportunities for business, industry, and agriculture
29   related to international trade activities in this
30   state.  These targets shall include the types of
31   businesses and the products that are currently
32   involved in international trade, as well as the types
33   of businesses and the products that could potentially
34   become involved in international trade in the future.
35     Sec. 32.  BUDGET PROPOSALS.  The department of
36   economic development and the department of workforce
37   development shall submit all budget proposals in the
38   traditional format as well as in the budgeting for
39   results format for the fiscal year beginning July 1,
40   1999.
41     Sec. 33.  By December 31 of each year, the ISCC
42   liquidation corporation shall submit an annual report
43   to the chairpersons and the ranking members of the
44   joint appropriations subcommittee on economic
45   development.  The report shall include an update on
46   the financial condition of the corporation relating to
47   the status of any moneys, assets, or contracts
48   currently being held by the corporation or transferred
49   by the corporation during the prior year.
50     Sec. 34.  NEW SECTION.  16.5A  NONPROFIT

Page 26

 1   CORPORATIONS.
 2     Any nonprofit corporation created by or in
 3   association with the Iowa finance authority since
 4   January 1, 1989, shall file a report by January 15 of
 5   each year with the chairpersons and ranking members of
 6   the appropriate appropriations subcommittees of the
 7   general assembly.  Any nonprofit corporation created
 8   by or in association with the authority since January
 9   1, 1989, shall adopt a written conflict of interests
10   policy.
11     Sec. 35.  NEW SECTION.  16.5B  HOUSING CORPORATION
12   BOARD.
13     The board of directors of the Iowa housing
14   corporation shall consist of seven voting members
15   serving staggered three-year terms.  One member of the
16   board of directors shall be a representative of the
17   home builders association of Iowa and one member of
18   the board of directors shall be a representative of
19   the Iowa bankers association.
20     Sec. 36.  FEDERAL GRANTS.  All federal grants to
21   and the federal receipts of agencies appropriated
22   funds under this Act, not otherwise appropriated, are
23   appropriated for the purposes set forth in the federal
24   grants or receipts unless otherwise provided by the
25   general assembly.
26     Sec. 37.  The Iowa finance authority and the Iowa
27   housing corporation shall consider restrictions on any
28   per diem provided to a member of the board of
29   directors serving both the authority and the Iowa
30   housing corporation on occasions when meetings of both
31   entities are held on the same day and in the same city
32   or metropolitan area.
33     Sec. 38.  Notwithstanding section 96.9, subsection
34   4, paragraph "a", moneys credited to the state by the
35   secretary of the treasury of the United States
36   pursuant to section 903 of the Social Security Act
37   shall be appropriated to the department of workforce
38   development and shall be used by the department for
39   the administration of the unemployment compensation
40   program only.  This appropriation shall not apply to
41   any fiscal year after June 30, 2001.
42     Sec. 39.  Notwithstanding any full-time equivalent
43   position limitations in this Act to the contrary, the
44   department of economic development may add 3.00 FTEs
45   for the commission on volunteer services and 1.00 FTE
46   for the housing assistance program.  Two of the full-
47   time equivalent positions added under this section for
48   the commission on volunteer services relate to the
49   transition of personnel services contractors to full-
50   time equivalent positions.  The merit system

Page 27

 1   provisions of chapter 19A and the provisions of the
 2   state and union collective bargaining agreements shall
 3   not govern movement into these full-time positions
 4   until September 1, 1998.  The provisions relating to
 5   the transition of personnel services contractors to
 6   full-time equivalent positions, chapter 19A, and
 7   collective bargaining agreements are void after
 8   September 1, 1998.
 9     Sec. 40.  Section 15E.86, Code 1997, is repealed.
10     Sec. 41.  EFFECTIVE DATE.  Sections 15, 16, 17, 18,
11   19, 20, 21, 22, and 28 of this Act, being deemed of
12   immediate importance, take effect upon enactment.""
The motion lost and the House refused to concur in the Senate
amendment H-9327.
IMMEDIATE MESSAGE
Siegrist of Pottawattamie asked and received unanimous consent
that Senate File 2296 be immediately messaged to the Senate.
SENATE AMENDMENT CONSIDERED
Dix of Butler called up for consideration Senate File 2061, a
bill for an act relating to a delay in implementing the
inclusion of certain information on property tax statements by
providing a deferral application process and providing an
effective date, amended by the House, further amended by the
Senate and moved that the House concur in the following Senate
amendment H-9326:

H-9326

 1     Amend the House amendment, S-5762, to Senate File
 2   2061, as passed by the Senate, as follows:
 3     1.  Page 1, by striking lines 43 through 45 and
 4   inserting the following:
 5     "   .  Page 2, by striking lines 29 through 31 and
 6   inserting the following:  "a percentage increase or
 7   decrease.  The comparative"."
 8     2.  Page 1, by inserting before line 46 the
 9   following:
10     "   .  Page 2, line 32, by striking the words "and
11   publication"."
12     3.  By renumbering as necessary.
The motion prevailed and the House concurred in the Senate
amendment H-9326.
Dix of Butler 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. 2061)

The ayes were, 97:

Arnold 	Barry 	Bell 	Bernau 
Blodgett 	Boddicker 	Boggess 	Bradley 
Brand 	Brauns 	Brunkhorst 	Bukta 
Burnett 	Carroll 	Cataldo 	Chapman 
Chiodo 	Churchill 	Cohoon 	Connors 
Cormack 	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 	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, 2:

Dinkla 	Osterhaus 
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 2061 be immediately messaged to the Senate.
On motion by Siegrist of Pottawattamie, the House was recessed
at 12:24 p.m., until 1:30 p.m.
AFTERNOON SESSION
The House reconvened at 1:32 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 21, 1998, appointed the conference
committee to House File 2498, a bill for an act relating to and
making appropriations to certain state departments, agencies,
funds, and certain other entities, providing for regulatory
authority, and other properly related matters, and the members
of the Senate are: The Senator from Polk, Senator Kramer, Chair;
the Senator from Linn, Senator Lundby; the Senator from Fremont,
Senator McLaren; the Senator from Polk, Senator McCoy; the
Senator from Pottawattamie, Senator Gronstal.
Also: That the Senate has on April 21, 1998, insisted on its
amendment to Senate File 2296, a bill for an act appropriating
funds to the department of economic development, certain board
of regents institutions, the department of workforce
development, the public employment relations board, making
related statutory changes, and providing an effective date
provision, and the members of the conference committee on the
part of the Senate are: The Senator from Chickasaw, Senator
Borlaug, Chair; the Senator from Iowa, Senator Schuerer; the
Senator from Fremont, Senator McLaren; the Senator from Scott,
Senator Deluhery; the Senator from Black Hawk, Senator Harper.
MARY PAT GUNDERSON, Secretary
QUORUM CALL
A non-record roll call was requested to determine that a quorum
was present.  The vote revealed fifty-four members present,
forty-six absent.
CONSIDERATION OF SENATE JOINT RESOLUTION 2004
The House resumed consideration of Senate Joint Resolution 2004,
a joint resolution proposing amendments to the Constitution of
the State of Iowa relating to the state budget by limiting state
general fund expenditures and restricting certain state tax
revenue changes, previously deferred.
Warnstadt of Woodbury offered amendment H-9107 filed by him as
follows: 

H-9107

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, by inserting after line 11 the
 4   following:
 5     "   .  Lottery revenues received by the state after
 6   deduction of prizes and administrative expenses shall
 7   be credited to a special fund which shall be separate
 8   from the general fund of the state.   Moneys in this
 9   special fund shall be expended as determined by the
10   General Assembly for nonrecurring projects."
Larson of Linn rose on a point of order that amendment H-9107
was not germane.
The Speaker ruled the point well taken and amendment H-9107 not
germane.
Warnstadt of Woodbury moved to suspend the rules to consider
amendment H-9107.
A non-record roll call was requested.
The ayes were 39, nays 47.
The motion to suspend the rules lost.
Speaker Corbett in the chair at 2:00 p.m.
Bernau of Story offered amendment H-9076 filed by him as follows:

H-9076

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  By striking page 1, line 6, through page 3,
 4   line 13, and inserting the following:
 5                "STATE GENERAL FUND RESERVES
 6     STATE GENERAL FUND RESERVES.  Section 1.  The state
 7   will maintain as part of the general fund reserve
 8   accounts equal to at least ten percent of general fund
 9   expenditures made in the fiscal year.  The total
10   amount in the reserve accounts may be less than ten
11   percent in a fiscal year, if approved in a bill
12   receiving the affirmative votes of at least three-
13   fifths of the whole membership of each house of the
14   General Assembly."
15     2.  Title page, line 2, by striking the word
16   "limiting" and inserting the following:
17   "restricting".
Gipp of Winneshiek asked and received unanimous consent that
Senate Joint Resolution 2004 be temporarily deferred. (Amendment
H-9076 pending.)

CONFERENCE COMMITTEE APPOINTED
(Senate File 2296)
The Speaker announced the appointment of the conference
committee to consider the differences between the House and
Senate concerning Senate File 2296: Churchill of Polk, Chair;
Millage of Scott, Van Fossen of Scott, Holveck of Polk and
Dotzler of Black Hawk.
The House resumed consideration of Senate Joint Resolution 2004,
a joint resolution proposing amendments to the Constitution of
the State of Iowa relating to the state budget by limiting state
general fund expenditures and restricting certain state tax
revenue changes, previously deferred, and amendment H-9076
pending.
Bernau of Story moved the adoption of amendment H-9076.
Amendment H-9076 lost.
Larson of Linn asked and received unanimous consent that Senate
Joint Resolution 2004 be temporarily deferred.
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 Second Regular Session of
the Seventy-seventh General Assembly were presented to the
following Pages by Speaker Corbett, Majority Leader Brent
Siegrist of Pottawattamie and Minority Leader David Schrader of
Marion:

	Katie Abrisz	Isaac Knight
	Michelle Bauer	Carrie Lamphier
	Jennifer Best	James Mertz
	Mary Ellen Bruns	Mark Mesle
	Cassandra Buesig	Kathryn Munger
	Dawn DeShaw	Joel Norton
	Lindsey Dohlman	Zachary Nunn
	Kristina Exline	Emily Paul
	Abigail Greiner	Aaron Roberts
	Jennifer Hill	Calvin Schlack
	Kimberly Hubbard	Miranda Von Ahsen
	Nicholas Irving	Sarah Wollschlager
	Jason Johnsen	Kristine Yeager
	Erin Kiley
The House resumed consideration of Senate Joint Resolution 2004,
previously deferred.
Bernau of Story asked and received unanimous consent to withdraw
amendment H-9078 filed by him on April 9, 1998.
Larkin of Lee asked and received unanimous consent to withdraw
amendment H-9036 filed by him on April 9, 1998.
Jochum of Dubuque asked and received unanimous consent that
amendment H-9098 be deferred.
Richardson of Warren offered the following amendment H-9070
filed by him and moved its adoption:

H-9070

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, line 22, by striking the words "tax
 4   or" and inserting the following:  "tax,".
 5     2.  Page 3, line 23, by inserting after the word
 6   "taxes," the following:  "or enacting, amending, or
 7   repealing provisions relating to state-imposed fees,".
 8     3.  Page 3, line 30, by inserting after the word
 9   "government." the following:  "The requirements of
10   this section apply to fees imposed by the state,
11   regardless of the means of collection, which are
12   collected in exchange for goods or services provided
13   by state government."
A non-record roll call was requested.
The ayes were 37, nays 53.
Amendment H-9070 lost.
Richardson of Warren offered the following amendment H-9080
filed by him and moved its adoption:

H-9080

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, line 22, by striking the words "tax
 4   or" and inserting the following:  "tax,".
 5     2.  Page 3, line 23, by inserting after the word
 6   "taxes," the following:  "or enacting, amending, or
 7   repealing provisions relating to any state-imposed fee
 8   which exceeds one hundred dollars,".
 9     3.  Page 3, line 24, by inserting after the word
10   "taxes" the following:  "or fees".
11     4.  Page 3, line 25, by inserting after the word
12   "tax" the following:  "or fee".
13     5.  Page 3, line 30, by inserting after the word
14   "government." the following:  "The requirements of
15   this section apply to any fee imposed by the state
16   which exceeds one hundred dollars, regardless of the
17   means of collection, and which is collected in
18   exchange for goods or services provided by state
19   government."
Amendment H-9080 lost.
Shoultz of Black Hawk asked and received unanimous consent that
amendment H-9083 be deferred.
Bernau of Story offered the following amendment H-9089 filed by
him and moved its adoption:

H-9089

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, lines 25 and 26, by striking the words
 4   "the General Assembly" and inserting the following:
 5   "a revenue estimating conference which shall be
 6   established by the General Assembly by law".
Gipp of Winneshiek in the chair at 4:43 p.m.
Amendment H-9089 lost.
Shoultz of Black Hawk offered the following amendment H-9091
filed by him and moved its adoption:

H-9091

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, by striking lines 25 and 26 and
 4   inserting the following:  "increase in state tax
 5   revenues of one percent or more shall require the
 6   affirmative votes of at least".
A non-record roll call was requested.
The ayes were 35, nays 50.
Amendment H-9091 lost.
Bernau of Story asked and received unanimous consent to withdraw
amendments H-9102, H-9084 and H-9090, filed by him on April 9,
1998.
Bernau of Story offered amendment H-9082 filed by him as follows:
H-9082

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 3, line 35, by inserting after the word
 4   "passage" the following:  "unless the bill also
 5   repeals an existing tax or taxes resulting in a
 6   revenue neutral net fiscal impact for the bill".
Bernau of Story offered the following amendment H-9141, to
amendment H-9082, filed by him and moved its adoption:

H-9141

 1     Amend the amendment, H-9082, to Senate Joint
 2   Resolution 2004, as passed by the Senate, as follows:
 3     1.  Page 1, line 6, by inserting after the word
 4   "bill" the following:  "or unless the bill also
 5   contains a provision reducing property taxes resulting
 6   in a revenue neutral net fiscal impact for the bill".
Amendment H-9141 was adopted.
Bernau of Story moved the adoption of amendment H-9082, as
amended.
Amendment H-9082 lost.
Speaker Corbett in the chair at 6:25 p.m.
Doderer of Johnson asked and received unanimous consent to
withdraw amendment H-9073 filed by her and Osterhaus of Jackson
on April 9, 1998, placing amendment H-9191 filed by Schrader of
Marion on April 15, 1998, out of order.
Larkin of Lee offered the following amendment H-9037 filed by
him and moved its adoption:

H-9037

 1     Amend Senate Joint Resolution 2004, as passed by
 2   the Senate, as follows:
 3     1.  Page 4, by striking lines 2 through 6.
A non-record roll call was requested.
The ayes were 34, nays 50.
Amendment H-9037 lost.
Siegrist of Pottawattamie asked and received unanimous consent
that Senate Joint Resolution 2004 be temporarily deferred.
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 21, 1998, passed the following bill in
which the concurrence of the Senate was asked:
House File 2538, a bill for an act relating to eligible housing
businesses qualifying for incentives and assistance in
enterprise zones, providing additional incentives and assistance
for approved eligible businesses located in an enterprise zone,
and requiring consideration of building codes and zoning.
Also: That the Senate has on April 21, 1998, passed the
following bill in which the concurrence of the Senate was asked:
House File 2560, a bill for an act relating to aircraft
registration fees and sales tax exemptions.
Also: That the Senate has on April 21, 1998, adopted the
conference committee report and passed Senate File 2296, a bill
for an act appropriating funds to the department of economic
development, certain board of regents institutions, the
department of workforce development, the public employment
relations board, making related statutory changes, and providing
an effective date provision.
Also: That the Senate has on April 21, 1998, concurred in the
House amendment and passed the following bill in which the
concurrence of the Senate was asked:
Senate File 2413, a bill for an act relating to exemptions from
and reductions in solid waste tonnage fees for certain persons.
MARY PAT GUNDERSON, Secretary
LEAVE OF ABSENCE
Leave of absence was granted as follows:
Blodgett of Cerro Gordo, until his return, on request of
Siegrist of Pottawattamie.

ADOPTION OF THE REPORT OF THE
CONFERENCE COMMITTEE
(Senate File 2296)
Churchill of Polk called up for consideration the report of the
conference committee on Senate File 2296 and moved the adoption
of the conference committee report and the amendments contained
therein as follows:
REPORT OF THE CONFERENCE COMMITTEE ON SENATE FILE 2296
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
House of Representatives on Senate File 2296, a bill for an Act
appropriating funds to the department of economic development,
certain board of regents institutions, the department of
workforce development, the public employment relations board,
making related statutory changes, and providing an effective
date provision, respectfully make the following report:
1.  That the Senate recedes from its amendment, H-9327.
2.  That the House recedes from its amendment, S-5540.
3.  That Senate File 2296, as amended, passed, and reprinted by
the Senate, is amended as follows:
1.  By striking everything after the enacting clause and
inserting the following:
"Section 1.  DEPARTMENT OF ECONOMIC DEVELOPMENT.  There is
appropriated from the general fund of the state and other
designated funds to the department of economic development for
the fiscal year beginning July 1, 1998, and ending June 30,
1999, the following amounts, or so much thereof as is necessary,
to be used for the purposes designated:
1.  ADMINISTRATIVE SERVICES DIVISION
a.  General administration
For salaries, support, maintenance, miscellaneous purposes, and
for providing that a business receiving moneys from the
department for the purpose of job creation shall make available
ten percent of the new jobs created for promise jobs program
participants who are qualified for the jobs created and for not
more than the following full-time equivalent positions:  
	 $	  1,494,231
	 FTEs	      25.75
One of the full-time equivalent positions authorized in this
lettered paragraph relates to the transition of personnel
services contractors to full-time equivalent positions.  The
merit system provisions of chapter 19A and the provisions of the
state and union collective bargaining agreements shall not
govern movement into these full-time equivalent positions until
September 1, 1998.  These provisions relating to the transition
of personnel services contractors to full-time equivalent
positions, chapter 19A, and collective bargaining agreements are
void after September 1, 1998.  
b.  Film office
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:  
	 $	    253,632
	 FTEs	       2.00
2.  BUSINESS DEVELOPMENT DIVISION
a.  Business development operations
For salaries, support, maintenance, miscellaneous purposes, for
not more than the following full-time equivalent positions, for
allocating $495,000 to support activities in conjunction with
the Iowa manufacturing technology center, $150,000 to the
graphic arts center, and for a strategic marketing effort for
workforce development:  
	 $	  3,940,232
	 FTEs	      22.75
Four of the full-time equivalent positions authorized in this
lettered paragraph relate to the transition of personnel
services contractors to full-time equivalent positions.  The
merit system provisions of chapter 19A and the provisions of the
state and union collective bargaining agreements shall not
govern movement into these full-time equivalent positions until
September 1, 1998.  These provisions relating to the transition
of personnel services contractors to full-time equivalent
positions, chapter 19A, and collective bargaining agreements are
void after September 1, 1998.  
b.  Small business programs
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions
for the small business program, the small business advisory
council, and targeted small business program:  
	 $	    450,622
	 FTEs	       5.00
c.  Federal procurement office
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:  
	 $	    103,967
	 FTEs	       3.00
Notwithstanding section 8.33, moneys remaining unencumbered or
unobligated on June 30, 1999, shall not revert and shall be
available for expenditure during the fiscal year beginning July
1, 1999, for the same purposes.
d.  Strategic investment fund
For deposit in the strategic investment fund for salaries,
support, for not more than the following full-time equivalent
positions:  
	 $	  6,803,513
	 FTEs	      12.50
Two of the full-time equivalent positions authorized in this
lettered paragraph relate to the transition of personnel
services contractors to full-time equivalent positions.  The
merit system provisions of chapter 19A and the provisions of the
state and union collective bargaining agreements shall not
govern movement into these full-time equivalent positions until
September 1, 1998.  These provisions relating to the transition
of personnel services contractors to full-time equivalent
positions, chapter 19A, and collective bargaining agreements are
void after September 1, 1998.  
The department may allocate from the strategic investment fund
up to $600,000 for the entrepreneurial ventures assistance
program.  The department shall seek the advice, consultation,
and cooperation of the entrepreneurial centers and the major
benefactor of the centers in the implementation of the
entrepreneurial ventures assistance program.
The department may allocate from the strategic investment fund
up to $100,000 for the microbusiness rural enterprise assistance
program under section 15.114.
The department shall provide an annual report on the progress
made by the department in making the community economic
betterment program a self-sustaining, revolving loan program.
e.  Insurance economic development
There is appropriated from moneys collected by the division of
insurance in excess of the anticipated gross revenues under
section 505.7, subsection 3, to the department for the fiscal
year beginning July 1, 1998, and ending June 30, 1999, the
following amount, or so much thereof as is necessary, for
insurance economic development and international insurance
economic development:  
	 $	    200,000
f.  Value-added agriculture
There is appropriated from the moneys available to support
value-added agricultural products and processes, four percent,
or so much thereof as is necessary, of the total moneys
available to support value-added agricultural products and
processes pursuant to section 423.24 each quarter for
administration of the value-added agricultural products and
processes financial assistance program as provided in section
15E.111, including salaries, support, maintenance, miscellaneous
purposes, and for not more than 2.00 FTEs.
The department shall collaborate with the university of northern
Iowa on a strategic initiative to develop ag-based industrial
lubrication technology and to create projects to deploy the
technology in commercial applications. Notwithstanding the
requirements of section 15E.111 and the administrative rules for
value-added agricultural products and processes, the department
shall allocate $150,000 for this initiative.
3.  COMMUNITY DEVELOPMENT DIVISION
a.  Community assistance
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions
for administration of the community economic preparedness
program, the Iowa community betterment program, and the city
development board:  
	 $	    654,547
	 FTEs	       8.50
b.  Main street/rural main street program
For salaries and support for not more than the following
full-time equivalent positions:  
	 $	    425,219
	 FTEs	       3.00
Notwithstanding section 8.33, moneys committed to grantees under
contract from the general fund of the state that remain
unexpended on June 30, 1999, shall not revert to any fund but
shall be available for expenditure for purposes of the contract
during the fiscal year beginning July 1, 1999.
c.  Community development program
For salaries, support, maintenance, miscellaneous purposes, for
not more than the following full-time equivalent positions, for
rural resource coordination, rural community leadership, rural
innovations grant program, and the rural enterprise fund:  
	 $	    827,215
	 FTEs	       7.50
Three of the full-time equivalent positions authorized in this
lettered paragraph relate to the transition of personnel
services contractors to full-time equivalent positions.  The
merit system provisions of chapter 19A and the provisions of the
state and union collective bargaining agreements shall not
govern movement into these full-time equivalent positions until
September 1, 1998.  These provisions relating to the transition
of personnel services contractors to full-time equivalent
positions, chapter 19A, and collective bargaining agreements are
void after September 1, 1998.  
There is appropriated from the rural community 2000 program
revolving fund established in section 15.287 to provide to
Iowa's councils of governments funds for planning and technical
assistance to local governments:  
	 $	    150,000
There is appropriated from the rural community 2000 program
revolving fund established in section 15.287 to the rural
development program for the purposes of the program including
the rural enterprise fund and collaborative skills development
training:  
	 $	    484,343
Notwithstanding section 8.33, moneys committed to grantees under
contract from the general fund of the state or through transfers
from the Iowa community development loan fund or from the rural
community 2000 program revolving fund that remain unexpended on
June 30, 1999, shall not revert but shall be available for
expenditure for purposes of the contract during the fiscal year
beginning July 1, 1999.
d.  Community development block grant and HOME
For administration and related federal housing and urban
development grant administration for salaries, support,
maintenance, miscellaneous purposes, and for not more than the
following full-time equivalent positions:  
	 $	    418,737
	 FTEs	      21.75
Three of the full-time equivalent positions authorized in this
lettered paragraph relate to the transition of personnel
services contractors to full-time equivalent 
positions.  The merit system provisions of chapter 19A and the
provisions of the state and union collective bargaining
agreements shall not govern movement into these full-time
equivalent positions until September 1, 1998.  These provisions
relating to the transition of personnel services contractors to
full-time equivalent positions, chapter 19A, and collective
bargaining agreements are void after September 1, 1998.  
e.  Housing development fund
For providing technical assistance to communities of all sizes
and local financial institutions to help meet local housing
needs and to provide and transfer matching funds for the HOME
program:  
	 $	  1,300,000
Notwithstanding section 8.33, moneys committed to grantees under
contract from the housing development fund and moneys
transferred for matching funds for the HOME program that remain
unexpended or unobligated on June 30, 1999, shall not revert to
any fund but shall be available for obligation and expenditure
for purposes of those programs during the fiscal year beginning
July 1, 1999.
f.  Shelter assistance program
For the purposes of the shelter assistance fund:  
	 $	    400,000
4.  INTERNATIONAL DIVISION
a.  International trade operations
For salaries, support, maintenance, miscellaneous purposes, for
support of foreign representation and trade offices, and for not
more than the following full-time equivalent positions:  
	 $	  2,010,073
	 FTEs	      10.00
From among the full-time equivalent positions authorized by this
lettered paragraph, one position shall concentrate on the export
sale of grain, one on the export sale of livestock, and one on
the export sale of value-added agricultural products.
The department shall file a report every six months with the
general assembly in a manner consistent with section 7A.11 and
with the chairpersons and ranking members of the joint
appropriations subcommittee on economic development which gives
an update of all activities regarding trade promotion in the
Chinese market.
b.  Export trade assistance program
For export trade activities, including a program to encourage
and increase participation in trade shows and trade missions by
providing financial assistance to businesses for a percentage of
their costs of participating in trade shows and trade missions,
by providing for the lease/sublease of showcase space in
existing world trade centers, by providing temporary office
space for foreign buyers, international prospects, and potential
reverse investors, and by providing other promotional and
assistance activities, including salaries and support:  
	 $	    425,000
Notwithstanding section 8.33, moneys appropriated by this
lettered paragraph which remain unobligated or unexpended on
June 30, 1999, shall not revert to the general fund of the state
but shall be transferred to and deposited in the strategic
investment fund created in section 15.313.  
c.  Agricultural product advisory council
For support, maintenance, and miscellaneous purposes:  
	 $	      1,300
d.  For transfer to the partner state program which the
department may use to contract with private groups or
organizations which are the most appropriate to administer this
program and the groups and organizations participating in the
program shall, to the fullest extent possible, provide the funds
to match the appropriation made in this paragraph of the funds
transferred:  
	 $	    125,000
5.  TOURISM DIVISION
Tourism operations/advertising
For salaries, support, maintenance, miscellaneous purposes, for
not more than the following full-time equivalent positions:  
	 $	  5,038,912
	 FTEs	      18.52
The department may expend up to $130,000 to provide assistance
to private welcome centers in the state.  The department shall
not provide assistance of more than $10,000 to any one private
welcome center.  A private welcome center seeking assistance
shall submit a competitive application to the department and may
be eligible for receiving assistance if the private welcome
center complies with all of the following criteria:
a.  The private welcome center is at risk of a projected
operating deficit.
b.  The private welcome center complies with operational
standards and requirements determined by the department.
c.  The private welcome center submits a financial plan for
self-sufficiency to the department.
The department shall conduct a study of the public and private
welcome center system in the state.  The department shall make
recommendations to the general assembly for the future operation
of the system including recommendations concerning funding for
private welcome center operations and quality standards for
public and private welcome centers.
The department shall not use the moneys appropriated in this
subsection, unless the department develops public-private
partnerships with Iowa businesses in the tourism industry, Iowa
tour groups, Iowa tourism organizations, and political
subdivisions in this state to assist in the development of
advertising efforts.  The department shall, to the fullest
extent possible, develop cooperative efforts for advertising
with contributions from other sources.
Sec. 2.  COMMUNITY DEVELOPMENT LOAN FUND.  Notwithstanding
section 15E.120, subsections 5, 6, and 7, and section 15.287,
there is appropriated from the Iowa community development loan
fund all the moneys available during the fiscal year beginning
July 1, 1998, and ending June 30, 1999, to the department of
economic development for the community development program to be
used by the department for the purposes of the program.
Sec. 3.  JOB TRAINING FUND.  Notwithstanding section 15.251,
subsection 2, there is appropriated from the job training fund
to the department of economic development for the fiscal year
beginning July 1, 1998, and ending June 30, 1999, the following
amount, or so much thereof as is necessary, to be used for the
purposes designated:
For administration of chapter 260E, including salaries, support,
maintenance, miscellaneous purposes, and for not more than the
following full-time equivalent positions:  
	 $	    210,000
	 FTEs	       2.50
Appropriations to the department of economic development for
administration of chapter 260E and the department of workforce
development for the target alliance program shall be funded on a
proportional basis if receipts to the job training fund are
insufficient to fund both appropriations in their entirety.
Sec. 4.  WORKFORCE DEVELOPMENT FUND.  There is appropriated from
the workforce development fund account created in section
15.342A, to the workforce development fund created in section
15.343, for the fiscal year beginning July 1, 1998, and ending
June 30, 1999, the following amount, for the purposes of the
workforce development fund:  
	 $	  6,850,000
Sec. 5.  Of all funds appropriated to or receipts credited to
the job training fund created in section 260F.6, subsection 1,
up to $175,000 for the fiscal year beginning July 1, 1998, and
ending June 30, 1999, and not more than 1.50 FTEs may be used
for the administration of the Iowa jobs training Act.
Sec. 6.  IOWA STATE UNIVERSITY.  There is appropriated from the
general fund of the state to the Iowa state university of
science and technology for the fiscal year beginning July 1,
1998, and ending June 30, 1999, the following amounts, or so
much thereof as is necessary, to be used for the purposes
designated:
1.  For funding and maintaining in their current locations the
existing small business development centers, and for not more
than the following full-time equivalent positions:  
	 $	  1,235,880
	 FTEs	       5.80
2.  For the Iowa state university of science and technology
research park, including salaries, support, maintenance,
miscellaneous purposes, and for not more than the following
full-time equivalent positions:  
	 $	    376,500
	 FTEs	       4.31
3.  For funding the institute for physical research and
technology, provided that $318,358 shall be allocated to the
industrial incentive program in accordance with the intent of
the general assembly, and for not more than the following
fulltime equivalent positions:  
	 $	  4,379,458
	 FTEs	      46.42
It is the intent of the general assembly that the incentive
program focus on Iowa industrial sectors and seek contributions
and in-kind donations from businesses, industrial foundations,
and trade associations and that moneys for the institute for
physical research and technology industrial incentive program
shall only be allocated for projects which are matched by
private sector moneys for directed contract research or for
nondirected research.  The match required of small businesses as
defined in section 15.102, subsection 4, for directed contract
research or for nondirected research shall be $1 for each $3 of
state funds.  The match required for other businesses for
directed contract research or for nondirected research shall be
$1 for each $1 of state funds.  The match required of industrial
foundations or trade associations shall be $1 for each $1 of
state funds.
Iowa state university of science and technology shall report
annually to the joint appropriations subcommittee on economic
development and legislative fiscal bureau the total amounts of
private contributions, the proportion of contributions from
small businesses and other businesses, and the proportion for
directed contract research and nondirected research of benefit
to Iowa businesses and industrial sectors.
Notwithstanding section 8.33, moneys appropriated for the fiscal
year which remain unobligated and unexpended at the end of the
fiscal year shall not revert but shall be available for
expenditure the following fiscal year.
Sec. 7.  UNIVERSITY OF IOWA.  There is appropriated from the
general fund of the state to the state university of Iowa for
the fiscal year beginning July 1, 1998, and ending June 30,
1999, the following amounts, or so much thereof as is necessary,
to be used for the purposes designated:
1.  For the university of Iowa research park, including
salaries, support, maintenance, equipment, miscellaneous
purposes, and for not more than the following full-time
equivalent positions:  
	 $	    331,007
	 FTEs	       4.35
2.  For funding the advanced drug development program at the
Oakdale research park and for not more than the following
fulltime equivalent positions:  
	 $	    262,199
	 FTEs	       2.85
The board of regents shall submit a report on the progress of
regents institutions in meeting the strategic plan for
technology transfer and economic development to the chairpersons
of the joint appropriations subcommittee on economic
development, the joint appropriations subcommittee on education,
the majority 
leader and minority leader of the senate, the majority and
minority leaders of the house of representatives, the secretary
of the senate, the chief clerk of the house of representatives,
and the legislative fiscal bureau by December 1, 1998.
Sec. 8.  UNIVERSITY OF NORTHERN IOWA.  There is appropriated
from the general fund of the state to the university of northern
Iowa for the fiscal year beginning July 1, 1998, and ending June
30, 1999, the following amounts, or so much thereof as is
necessary, to be used for the purposes designated:
1.  For the metal casting institute, including salaries,
support, maintenance, miscellaneous purposes, and for not more
than the following full-time equivalent positions:  
	 $	    166,349
	 FTEs	       2.75
2.  For the institute of decision making, including salaries,
support, maintenance, miscellaneous purposes, and for not more
than the following full-time equivalent positions:  
	 $	    688,308
	 FTEs	       8.00
Sec. 9.  DEPARTMENT OF WORKFORCE DEVELOPMENT.  There is
appropriated from the general fund of the state, to the
department of workforce development for the fiscal year
beginning July 1, 1998, and ending June 30, 1999, the following
amounts, or so much thereof as is necessary, for the purposes
designated:
1.  DIVISION OF LABOR SERVICES
For the division of labor services, including salaries, support,
maintenance, miscellaneous purposes, and for not more than the
following full-time equivalent positions:  
	 $	  2,902,693
	 FTEs	      93.00
From the contractor registration fees, the division of labor
services shall reimburse the department of inspections and
appeals for all costs associated with hearings under chapter
91C, relating to contractor registration.
2.  DIVISION OF INDUSTRIAL SERVICES
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:  
	 $	  2,390,927
	 FTEs	      34.00
The division of industrial services shall continue charging a
$65 filing fee for workers' compensation cases.  The filing fee
shall be paid by the petitioner of a claim.  However, the fee
can be taxed as a cost and paid by the losing party, except in
cases where it would impose an undue hardship or be unjust under
the circumstances.
3.  For salaries, support, maintenance, miscellaneous purposes,
and for not more than the following full-time equivalent
position for the workforce development state and regional
boards:  
	 $	    106,929
	 FTE	       1.00
4.  For salaries, support, maintenance, miscellaneous purposes
for collection of labor market information, and for not more
than the following full-time equivalent position:  
	 $	     65,354
	 FTE	       1.00
5.  WORKFORCE DEVELOPMENT AREA
For salaries, support, maintenance, and miscellaneous purposes
for the development and maintenance of a workforce sufficient in
size and skill to meet the occupational demands of each
workforce development area, and for workforce development
programs, including those provided for in sections 84A.7, 84A.8,
and 84A.9.  Each region shall be required to provide an equal
amount of matching funds from local sources:  
	 $	  1,480,022
	 FTEs	       4.20
The department shall expend $923,180 on youth workforce
programs.  Youth conservation corps program moneys shall be
allocated among the regions which have developed a youth
conservation corps program.
Notwithstanding section 8.33, moneys committed to grantees under
contract that remain unexpended on June 30, 1999, shall not
revert to any fund but shall be available for expenditure for
purposes of the contract during the fiscal year beginning July
1, 1999.
6.  LABOR MANAGEMENT COORDINATOR
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent position:  
	 $	     66,851
	 FTE	       0.50
The Iowa workforce development board shall be responsible for
the functions previously conducted by the state labor management
cooperation council.  The board, the department of workforce
development, and the labor management coordinator shall
cooperate to improve communications and facilitate dialogue
between labor, management, and government on workforce
development problems facing the state, to form in-plant labor
management committees, and to provide technical assistance to
establish effective labor management policies in the state.
7.  WELFARE-TO-WORK MATCHING FUNDS
For matching funds for welfare-to-work grants authorized through
the United States department of labor to provide additional
services for the hardest to employ recipients of family
investment program benefits:  
	 $	    888,633
Notwithstanding section 8.33, moneys appropriated in this
subsection which remain unexpended or unobligated on June 30,
1999, shall not revert to the general fund of the state but
shall remain available for expenditure for the same purpose
during the fiscal year beginning July 1, 1999.
Sec. 10.  JOB TRAINING FUND.  Notwithstanding section 15.251,
subsection 2, there is appropriated from the job training fund
to the department of workforce development for the fiscal year
beginning July 1, 1998, and ending June 30, 1999, the following
amount, or so much thereof as is necessary, to be used for the
purpose designated:
For the target alliance program:  
	 $	     30,000
Sec. 11.  ADMINISTRATIVE CONTRIBUTION SURCHARGE FUND.  There is
appropriated from the administrative contribution surcharge fund
of the state to the department of workforce development for the
fiscal year beginning July 1, 1998, and ending June 30, 1999,
the following amount, or so much thereof as is necessary, for
the purposes designated:
Notwithstanding section 96.7, subsection 12, paragraph "c", for
salaries, support, maintenance, conducting labor availability
surveys, miscellaneous purposes, and for not more than the
following full-time equivalent positions:  
	 $	  7,100,000
	 FTEs	     125.42
Sec. 12.  EMPLOYMENT SECURITY CONTINGENCY FUND.  There is
appropriated from the special employment security contingency
fund to the department of workforce development for the fiscal
year beginning July 1, 1998, and ending June 30, 1999, the
following amounts, or so much thereof as is necessary, for the
purposes designated:
1.  DIVISION OF LABOR SERVICES
For salaries, support, maintenance, and miscellaneous purposes:  
	 $	    296,000
2.  DIVISION OF INDUSTRIAL SERVICES
For salaries, support, maintenance, and miscellaneous purposes:  
	 $	    175,000
Any additional penalty and interest revenue may be used to
accomplish the mission of the department.
Sec. 13.  PUBLIC EMPLOYMENT RELATIONS BOARD.  There is
appropriated from the general fund of the state to the public
employment relations board for the fiscal year beginning July 1,
1998, and ending June 30, 1999, the following amount, or so much
thereof as is necessary, for the purposes designated:
For salaries, support, maintenance, miscellaneous purposes, and
for not more than the following full-time equivalent positions:
	 $	    857,844
	 FTEs	      12.80
Sec. 14.  WORKFORCE RECRUITMENT INITIATIVE.
1.  FINDINGS.  The general assembly finds that growing levels of
employment coupled with historically low levels of unemployment
are evidence of increasing scarcity of skilled workers.  Limited
access to a skilled workforce is preventing Iowa companies from
increasing employment and production, and is a barrier to
sustained and stable economic growth.
Further, the general assembly finds that in order to increase
the size of the workforce, a partnership of private sector
employers, communities and public sector organizations should be
formed to develop and implement a workforce recruitment
initiative.  The initiative is intended to include strategies
for recruiting new workers that will meet the workforce needs of
Iowa employers who are unable to fill high quality jobs.
2.  ESTABLISHMENT.  The general assembly finds an immediate need
for the establishment of a workforce recruitment initiative with
projects intended to retain and recruit new skilled and
unskilled employees to fill the needs of both communities and
businesses.  The department of economic development and the
department of workforce development shall enter into a
cooperative memorandum of understanding to accomplish purposes
of this initiative.  The memorandum shall include, but not be
limited to, provisions for the sharing and utilization of job
matching databases and technology to accomplish the purposes of
the initiative and for an allocation out of moneys appropriated
to the department of economic development for purposes of the
workforce recruitment initiative for payment of employee
salaries related to the workforce recruitment initiative.
3.  STATE AGENCY COOPERATION.  The department of economic
development and the department of workforce development shall
seek and obtain the cooperation of any state agency and local
economic development organization actively involved in workforce
development initiatives which could provide employee recruitment
and marketing assistance to accomplish the workforce recruitment
initiative.
4.  FTEs.  For purposes of the workforce recruitment initiative,
the department of workforce development shall increase the
number of full-time equivalent positions authorized for the
department during the fiscal year beginning July 1, 1998, by
2.00 FTEs through moneys authorized for expenditure in this Act
and allocated pursuant to the cooperative memorandum of
understanding entered into with the department of economic
development as provided in section 2.
5.  APPROPRIATION.  There is appropriated from the general fund
of the state to the department of economic development for the
fiscal year beginning July 1, 1998, and ending June 30, 1999,
the following amount, or so much thereof as is necessary, to be
used for the purposes designated:
For workforce recruitment initiative purposes including
technical support and maintenance of databases and an internet
web site, for a joint proposal of the department of economic
development and the department of workforce development relating
to the workforce recruitment initiative which shall include
provisions for private sector contributions, and including
salaries, support, maintenance, miscellaneous purposes, and for
not more than the following full-time equivalent positions:  
	 $	    300,000
	 FTEs	       3.00
Notwithstanding section 8.33, moneys appropriated in this
subsection which remain unexpended or unobligated on June 30,
1999, shall not revert to the general fund of the state but
shall remain available for expenditure in the fiscal year
beginning July 1, 1999, for the purposes designated.
6.  STRATEGIC INVESTMENT FUND ALLOCATION.  There is allocated
from the strategic investment fund to the department of economic
development for the fiscal year beginning July 1, 1998, and
ending June 30, 1999, $150,000 to be used for the purchase of
equipment, software, laptop computers, and other necessary
technological equipment.
7.  BUSINESS DEVELOPMENT DIVISION.  The business development
division of the department of economic development may expend
from moneys appropriated to the department and allocated to the
business development division, for business development
operations, up to $400,000 for increasing the labor availability
and recruitment efforts in the state in all occupational areas
and as deemed necessary.
Sec. 15.  NEW SECTION.  15.361  TITLE.
This part shall be known and may be cited as the "Certified
School to Career Program".
Sec. 16.  NEW SECTION.  15.362  DEFINITIONS.
As used in this part, unless the context otherwise requires:
1.  "Certified school to career program" or "certified program"
means a sequenced and articulated secondary and postsecondary
program registered as an apprenticeship program under 29 C.F.R.
subtit. A, pt.  29, which is conducted pursuant to an agreement
as provided in section 15.364 or a program approved by the state
board of education, in conjunction with the department of
economic development, as meeting the standards enumerated in
section 15.363, that integrates a secondary school curriculum
with private sector job training which places students in job
internships, and which is designed to continue into
postsecondary education and that will result in teaching new
skills and adding value to the wage-earning potential of
participants and increase their long-term employability in the
state and which is conducted pursuant to an agreement as
provided in section 15.364.
2.  "Participant" means an individual between the ages of
sixteen and twenty-four who is enrolled in a public or private
secondary or postsecondary school and who initiated
participation in a certified school to career program as part of
secondary school education.
3.  "Payroll expenditures" means the base wages actually paid by
an employer to a participant plus the amount held in trust to be
applied toward the participant's postsecondary education.
4.  "Sponsor" means any person, association, committee, or
organization operating a school to career program and in whose
name the program is or will be registered or approved.
Sec. 17.  NEW SECTION.  15.363  CERTIFICATION STANDARDS.
The state board of education, in consultation with the
department of economic development, shall adopt rules pursuant
to chapter 17A to guide the board and department in determining
whether a potential school to career program should be approved.
A school to career program which is approved by the state board
of education in conjunction with the department of economic
development shall comply with all of the following standards:
1.  The program is conducted pursuant to an organized, written
plan embodying the terms and conditions of employment, job
training, classroom instruction, and supervision of one or more
participants, subscribed to by a sponsor who has undertaken to
carry out the school to career program.
2.  The program complies with all state and federal laws
pertaining to the workplace.
3.  The employer agrees to assign an employee to serve as a
mentor for a participant.  The mentor's occupation shall be in
the same career pathway as the career interests of the
participant.
4.  The program involves an eligible postsecondary institution
as defined in section 261C.3.
5.  Other standards adopted by rule by the state board of
education after consultation with the department of economic
development.
Sec. 18. NEW SECTION. 15.364 CERTIFIED PROGRAM AGREEMENT.
The certified program shall be conducted pursuant to a signed
written agreement between each participant and the employer
which contains at least the following provisions:
1.  The names and signatures of the participant and the sponsor
or employer and the signature of a parent or guardian if the
participant is a minor.
2.  A description of the career field in which the participant
is to be trained, and the beginning date and duration of the
training.
3.  The employer's agreement to provide paid employment, at a
base wage, for the participant during the summer months after
the participant's junior and senior years in high school and
after the participant's first year of postsecondary education.
4.  The participant and employer shall agree upon set minimum
academic standards which must be maintained through the
participant's secondary and postsecondary education.
5.  This base wage paid to the participant shall not be less
than the minimum wage prescribed by Iowa law or the federal Fair
Labor Standards Act, whichever is applicable.
6.  That in addition to the base wage paid to the participant,
the employer shall pay an additional sum to be held in trust to
be applied toward the participant's postsecondary education
required for completion of the certified program.  The
additional amount must be not less than an amount determined by
the department of economic development to be sufficient to
provide payment of tuition expenses toward completion of not
more than two academic years of the required 
postsecondary education component of the certified program at an
Iowa community college or an Iowa public or private college or
university.  This amount shall be held in trust for the benefit
of the participant pursuant to rules adopted by the department
of economic development.  Payment into an ERISAapproved fund for
the benefit of the participant shall satisfy this requirement. 
The specific fund shall be specified in the agreement.
7.  The participant's agreement to work for the employer for at
least two years following the completion of the participant's
postsecondary education required by the certified program. 
However, the agreement may provide for additional education and
work commitments beyond the two years.
8.  If the participant does not complete the two-year employment
obligation, the participant's agreement to repay to the employer
the amount paid by the employer toward the participant's
postsecondary education expenses pursuant to subsection 6.
9.  a.  That if a participant does not complete the certified
program contemplated by the agreement after entering a
postsecondary education program, any unexpended funds being held
in trust for the participant's postsecondary education shall be
paid back to the employer.  In addition the participant must
repay to the employer amounts paid from the trust which were
expended on the participant's behalf for postsecondary education.
b.  That if a participant does not complete the certified
program contemplated by the agreement prior to entering a
postsecondary education program, one-half of the moneys being
held in trust for the participant's postsecondary education
shall be paid to a postsecondary education institution as
defined in section 261C.3 of the participant's choice to pay
tuition or expenses of the participant.  The other one-half of
the trust moneys shall be paid back to the employer.  Any moneys
to be transferred for the benefit of the participant which are
not transferred within five years for purposes of education at
the designated postsecondary institution, shall be paid back to
the employer.
Sec. 19. NEW SECTION.  15.365  PAYROLL EXPENDITURE REFUND.
1.  An employer who employs a participant in a certified school
to career program may claim a refund of twenty percent of the
employer's payroll expenditures for each participant in the
certified program.  The refund is limited to the first four
hundred hours of payroll expenditures per participant for each
calendar year the participant is in the certified program, not
to exceed three years per participant.
2.  To receive a refund under subsection 1 for a calendar year,
the employer shall file the claim by July 1 of the following
calendar year.  The claim shall be filed on forms provided by
the department of economic development and the employer shall
provide such information regarding the employer's participation
in a certified school to career program as the department may
require.  Forms should be designed such that claims for refunds
for more than one participant may be made on a single form.
3.  For each fiscal year of the fiscal period beginning July 1,
1999, and ending June 30, 2004, there is appropriated up to five
hundred thousand dollars annually from the general fund of the
state to the department of economic development to pay refunds
under this section.  If the amount appropriated in a fiscal year
is insufficient to pay all refund claims for the calendar year
in full, each claimant shall receive a proportion of the
claimant's refund claim equal to the ratio of the amount
appropriated to the total amount of refund claims.  Any unpaid
portion of a claim shall not be paid from a subsequent fiscal
year appropriation.
4.  The department of economic development shall consult with
the department of revenue and finance for purposes of this
section.  The department of economic development shall adopt
rules as deemed necessary to carry out the purposes of the
certified school to career program.
Sec. 20.  NEW SECTION.  15.366  CUSTOMER TRACKING SYSTEM.
All participants and sponsors participating in a certified
school to career program shall be included in the customer
tracking system implemented by the department of workforce
development pursuant to section 84A.5.
Sec. 21.  NEW SECTION.  15.367  REPEAL.
This part of chapter 15 is repealed June 30, 2004.  However, any
contracts in existence on June 30, 2004, shall continue to be
valid and each party to such contract is obligated to perform as
required under such contract.  However, no employer is entitled
to any payroll expenditure refund for payroll expenditures
incurred after December 31, 2002.
Sec. 22.  NEW SECTION.  15A.8  LOANS PAYABLE FROM NEW JOBS
CREDIT FROM WITHHOLDING.
1.  As an additional means to provide moneys for the payment of
the costs of a new jobs training project or multiple projects
under chapter 260E and this chapter, a community college may
make an advance or loan, including an interfund transfer or a
loan from moneys on hand and legally available, to be paid from
the same sources and secured in the same manner as certificates
described in sections 15A.7 and 260E.6.
2.  Revenues from a job training agreement received prior to the
completion by a business of its repayment obligation for a
project and not pledged to certificates, loans, or advances, and
not necessary for the payment of principal and interest maturing
on such certificates, loans, or advances, may be applied by the
community college to the reduction of any other outstanding
certificates, loans, or advances.
Sec. 23.  Section 15E.83, Code 1997, is amended to read as
follows:
15E.83  SEED CAPITAL CORPORATION.
1.  The Iowa seed capital corporation shall be incorporated
under chapter 504A.  The purpose of the corporation shall be
to provide seed capital to start-up and emerging growth
companies in Iowa that are bringing new products and processes
to the marketplace, and it shall be the goal of the corporation
to financially support the establishment and growth of start-up
and emerging growth companies that can contribute to the
economic diversity of the state and provide general and specific
economic benefits to the state.  The corporation shall only
provide seed capital or financial assistance to Iowa businesses.
 The corporation shall not be regarded as a state agency, except
for purposes of chapters 17A and 69, and a member of the board
is not considered a state employee, except for purposes of
chapter 669.  An individual employed by the corporation is a
state employee for purposes of the Iowa public employees'
retirement system, state health and dental plans, and other
state employee benefit plans and chapter 669. Chapters 8, 18,
19A, and 20 and other provisions of law that relate to
requirements or restrictions dealing with state personnel or
state funds do not apply to the corporation and any employees of
the 

board or corporation except to the extent provided in this
division.  Chapters 21 and 22 shall apply to activities of the
corporation and to employees of the board or corporation except
to the extent provided in this division.
2.  The corporation shall be governed by a board of seven
directors who shall serve a term of four years.  Of the
seven directors, four shall be persons experienced in business
finance and employed at a bank or other financial institution,
be a certified public accountant, be an attorney, or be a
licensed stockbroker.  Each director shall serve at the pleasure
of the governor and shall be appointed by the governor, subject
to confirmation by the senate pursuant to section 2.32.  A
director is eligible for reappointment.  A vacancy on the board
of directors shall be filled in the same manner as an original
appointment.
3.  The board of directors shall annually elect one member as
chairperson and one member as secretary.  The board may elect
other officers of the corporation as necessary.  Members shall
be reimbursed for necessary expenses incurred in the performance
of duties from funds appropriated to the corporation.
4 3.  Each director of the corporation shall take an
oath of office and the record of each oath shall be filed in the
office of the secretary of state.
5 4.  The corporation shall receive information and
cooperate with other agencies of the state and the political
subdivisions of the state.
Sec. 24.  Section 15E.85, Code 1997, is amended to read as
follows:
15E.85  BOARD OF DIRECTORS.
The powers of the corporation are vested in and shall be
exercised by the board of directors.  Four members of the
board constitute a quorum and an affirmative vote of at least
four of the members present at a meeting is necessary before an
action may be taken by the board.  An action taken by the
board shall be authorized by resolution at a regular or special
meeting and takes effect immediately unless the resolution
specifies otherwise.  Notice of a meeting shall be given orally
or in writing not less than forty-eight hours prior to the
meeting.
Sec. 25.  Section 15E.87, Code 1997, is amended to read as
follows:
15E.87  CORPORATE PURPOSE - POWERS.
The purpose of the corporation is to stimulate and encourage the
development of new products within Iowa by the infusion of
financial aid for invention and innovation in situations in
which financial aid would not otherwise be reasonably available
from commercial sources.  For this purpose the corporation has
the following powers:
1.  To have perpetual succession as a corporate body and to
adopt bylaws, policies, and procedures for the regulation of its
affairs and conduct of its business consistent with the purposes
of this division.
2.  To enter into venture agreements with persons doing
business in Iowa upon conditions and terms which are consistent
with the purposes of this division for the advancement of
financial aid to the persons.  The financial aid advanced shall
be for the development of specific products, procedures, and
techniques which are to be developed and produced in this state.
 The corporation shall condition the agreements upon contractual
assurances that the benefits of increasing or maintaining
employment and tax revenues shall remain in Iowa.
3.  To receive and accept aid or contributions from a source
of money, property, labor, or other things of value to be used
to carry out the purposes of this division including gifts or
grants from a department or agency of the United States or any
state.
4.  To issue notes and bonds as provided under this division.
5 2.  To hold patents, copyrights, trademarks, or other
evidences of protection or exclusivity issued under the laws of
this state or the United States to any products.
6 3.  To employ assistants, agents, and other employees
and to engage consultants, attorneys, and appraisers as
necessary or desirable to carry out the purposes of the
corporation.
7 4.  To make and enter into contracts and agreements
necessary or incidental to its performance of the duties and the
powers granted to the corporation.
8 5.  To sue and be sued, plead, and adopt a seal.
9 6.  With the approval of the treasurer of state, to
invest funds which are not needed for immediate use or
disbursement, including funds held in reserve, in obligations
issued or guaranteed by the state or the United States.
10 7.  To procure insurance against a loss in connection
with its property and other assets.
11 8.  To the extent permitted under a corporation
contract with other persons, to consent to a termination,
modification, forgiveness, or other change in the terms of a
contractual right, payment, royalty, contract, or agreement.
12 9.  To take necessary action to render bonds issued
under this division more marketable.
Sec. 26.  Section 422.16A, Code Supplement 1997, is amended to
read as follows:
422.16A  JOB TRAINING WITHHOLDING - CERTIFICATION AND TRANSFER.
Upon the completion by a business of its repayment obligation
for a training project funded under chapter 260E, including a
job training project funded under chapter 260E and section
15A.8 or repaid in whole or in part by the supplemental new
jobs credit from withholding under section 15A.7 or section
15.331, the sponsoring community college shall report to the
department of economic development the amount of withholding
paid by the business to the community college during the final
twelve months of withholding payments.  The department of
economic development shall notify the department of revenue and
finance of that amount.  The department shall credit to the
workforce development fund account established in section
15.342A twenty-five percent of that amount each quarter for a
period of ten years.  If the amount of withholding from the
business or employer is insufficient, the department shall
prorate the quarterly amount credited to the workforce
development fund account.  The maximum amount from all employers
which shall be transferred to the workforce development fund
account in any year is ten million dollars.  
Sec. 27.  LIQUIDATION OF THE IOWA SEED CAPITAL CORPORATION.
Notwithstanding sections 15E.81 through 15E.94, sections 15E.181
through 15E.184, and 1997 Iowa Acts, chapter 143, sections 5 and
6, it is the intent of the general assembly that the Iowa seed
capital corporation shall be liquidated or sold in an orderly
manner.  On May 31, 1998, the terms of the board members of the
Iowa seed capital corporation shall terminate, the Iowa seed
capital corporation shall be renamed the ISCC liquidation
corporation, and a three-person board shall be constituted to
complete the orderly liquidation or sale of the assets of the
ISCC liquidation corporation.  The ISCC liquidation corporation
board shall consist of the commissioner of insurance or the
commissioner's designee, the superintendent of banking or the
superintendent's designee, and the treasurer of state or the
treasurer's designee.  The members of the ISCC liquidation
corporation board and any staff providing assistance to the
board shall not be liable for their acts or omissions in
connection with the liquidation or sale of the corporation.  The
ISCC liquidation corporation board shall close the corporation
offices at 200 East Grand, Des Moines, Iowa, by June 30, 1998,
terminate the officers and staff of the corporation by June 30,
1998, and shall not hire a new permanent or temporary staff to
operate this corporation.
The staff of the treasurer of state shall provide administrative
support to the ISCC liquidation corporation board and the
corporation shall reimburse the treasurer of state for the
reasonable costs of providing administrative support.  The
attorney general shall be consulted and shall provide legal
support throughout the liquidation and sale process and the
corporation shall reimburse the attorney general for the
reasonable costs of providing any such consultation and legal
support.
The ISCC liquidation corporation board's goals in supervising
the liquidation or sale of the corporation are to maximize the
net revenue to the state and minimize the impact to the
companies involved.  The board shall not make any new
investments during the liquidation period, except for those
necessary to protect and maintain its current holdings.
The ISCC liquidation corporation board is authorized to contract
for the services, including brokers, other financial advisors or
consultants, or legal advisors, necessary to complete the
orderly liquidation or sale of the ISCC liquidation corporation.
The ISCC liquidation corporation board may determine the
potential administrative, legal, and contractual service costs
for the liquidation or sale of the corporation and may maintain
a prudent reserve fund from liquid assets of the corporation for
such purposes.  Upon the unanimous vote of the ISCC liquidation
corporation board the remainder of the liquid assets shall be
transferred to the strategic investment fund established in
section 15.313.
Following the complete liquidation and dissolution of the
corporation or the sale of the corporation, all remaining moneys
shall be transferred to the strategic investment fund. Upon
transfer of the remaining moneys to the strategic investment
fund, the ISCC liquidation corporation board shall be dissolved.
Sec. 28.  SHELTER ASSISTANCE FUND.  In providing moneys from the
shelter assistance fund to homeless shelter programs, the
department of economic development shall explore the potential
of allocating moneys to homeless shelter programs based in part
on their ability to move their clients toward self-sufficiency.
Sec. 29.  The department of economic development and the
department of 
workforce development shall within the budget proposals for the
fiscal year beginning July 1, 2000, detail the number of FTEs
and contract employees included in the budget proposal.  During
the budget process for the fiscal year beginning July 1, 2000,
the joint economic development appropriation subcommittee shall
examine contract employees in relationship to the budgets of the
department of economic development and the department of
workforce development.
Sec. 30.  The department of economic development shall submit a
report to the general assembly as provided in section 7A.11 by
January 1, 1999, which includes all of the following:
1.  A survey of all business, industry, and agriculturerelated
international trade activities in this state.  The survey shall
include the types of businesses and the products involved in
international trade and the estimated costs and revenues
resulting from such trade.
2.  A list of specific targets and targeted opportunities for
business, industry, and agriculture related to international
trade activities in this state.  These targets shall include the
types of businesses and the products that are currently involved
in international trade, as well as the types of businesses and
the products that could potentially become involved in
international trade in the future.
Sec. 31.  BUDGET PROPOSALS.  The department of economic
development and the department of workforce development shall
submit all budget proposals in the traditional format as well as
in the budgeting for results format for the fiscal year
beginning July 1, 1999.
Sec. 32.  By December 31 of each year, the ISCC liquidation
corporation shall submit an annual report to the chairpersons
and the ranking members of the joint appropriations subcommittee
on economic development.  The report shall include an update on
the financial condition of the corporation relating to the
status of any moneys, assets, or contracts currently being held
by the corporation or transferred by the corporation during the
prior year.
Sec. 33.  NEW SECTION.  16.5A  NONPROFIT CORPORATIONS.
Any nonprofit corporation created by or in association with the
Iowa finance authority since January 1, 1989, shall file a
report by January 15 of each year with the chairpersons and
ranking members of the appropriate appropriations subcommittees
of the general assembly.  Any nonprofit corporation created by
or in association with the authority since January 1, 1989,
shall adopt a written conflict of interests policy.
Sec. 34.  NEW SECTION.  16.5B  HOUSING CORPORATION BOARD.
The board of directors of the Iowa housing corporation shall
consist of seven voting members serving staggered three-year
terms.  One member of the board of directors shall be a
representative of the home builders association of Iowa and one
member of the board of directors shall be a representative of
the Iowa bankers association.
Sec. 35.  FEDERAL GRANTS.  All federal grants to and the federal
receipts of agencies appropriated funds under this Act, not
otherwise appropriated, are appropriated for the purposes set
forth in the federal grants or receipts unless otherwise
provided by the general assembly.
Sec. 36.  The Iowa finance authority and the Iowa housing
corporation shall 
consider restrictions on any per diem provided to a member of
the board of directors serving both the authority and the Iowa
housing corporation on occasions when meetings of both entities
are held on the same day and in the same city or metropolitan
area.
Sec. 37.  Notwithstanding section 96.9, subsection 4, paragraph
"a", moneys credited to the state by the secretary of the
treasury of the United States pursuant to section 903 of the
Social Security Act shall be appropriated to the department of
workforce development and shall be used by the department for
the administration of the unemployment compensation program
only.  This appropriation shall not apply to any fiscal year
after June 30, 2001.
Sec. 38.  Notwithstanding any full-time equivalent position
limitations in this Act to the contrary, the department of
economic development may add 3.00 FTEs for the commission on
volunteer services and 1.00 FTE for the housing assistance
program.  Two of the full-time equivalent positions added under
this section for the commission on volunteer services relate to
the transition of personnel services contractors to full-time
equivalent positions.  The merit system provisions of chapter
19A and the provisions of the state and union collective
bargaining agreements shall not govern movement into these
full-time positions until September 1, 1998.  The provisions
relating to the transition of personnel services contractors to
full-time equivalent positions, chapter 19A, and collective
bargaining agreements are void after September 1, 1998.
Sec. 39.  Section 15E.86, Code 1997, is repealed.
Sec. 40.  EFFECTIVE DATE.  Sections 14, 15, 16, 17, 18, 19, 20,
21, and 27 of this Act, being deemed of immediate importance,
take effect upon enactment."
ON THE PART OF THE HOUSE:	ON THE PART OF THE SENATE:

STEVEN CHURCHILL, Chair	ALLEN BORLAUG, Chair
DAVID MILLAGE	PATRICK J. DELUHERY
JAMES VAN FOSSEN	PATRICIA HARPER
	DERRYL McLAREN
	NEAL SCHUERER
The motion prevailed and the conference committee report was
adopted.
Churchill of Polk 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. 2296)

The ayes were, 91:

Arnold 	Barry 	Bell 	Bernau 
Boggess 	Bradley 	Brauns 	Brunkhorst 
Bukta 	Burnett 	Carroll 	Cataldo 
Chiodo 	Churchill 	Cohoon 	Connors 
Cormack 	Dix 	Doderer 	Dolecheck 
Dotzler 	Drake 	Drees 	Eddie 
Falck 	Foege 	Ford 	Frevert 
Gipp 	Greig 	Greiner 	Gries 
Grundberg 	Hahn 	Hansen 	Heaton 
Holmes 	Holveck 	Houser 	Huseman 
Huser 	Jacobs 	Jenkins 	Jochum 
Kinzer 	Klemme 	Koenigs 	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, 5:

Boddicker 	Fallon 	Garman 	Kreiman
Kremer 

Absent or not voting, 4:

Blodgett 	Brand 	Chapman 	Dinkla

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 2296 be immediately messaged to the Senate.
SENATE AMENDMENT CONSIDERED
Boddicker of Cedar called up for consideration Senate File 2345,
a bill for an act relating to juvenile justice system provisions
involving foster care, termination of parental rights, and
adoption preplacement investigations, amended by the House,
further amended by the Senate and moved that the House concur in
the following Senate amendment H-9324:

H-9324

 1     Amend the House amendment, S-5761, to Senate File
 2   2345, as amended, passed, and reprinted by the Senate,
 3   as follows:
 4     1.  Page 1, line 36, by striking the word "and".
 5     2.  Page 1, line 37, by inserting after the word
 6   "application" the following:  ", and all information
 7   the designee communicated to the court".
 8     3.  Page 4, by inserting after line 48 the
 9   following:
10     "   .  Page 9, by inserting after line 8 the
11   following:
12     "Sec. ___.  NEW SECTION.  232.120  PREADOPTIVE CARE
13   - CONTINUED PLACEMENT.
14     If a foster parent is providing preadoptive care to
15   a child for whom a termination of parental rights
16   petition has been filed, the placement of the child
17   with that foster parent shall continue through the
18   termination of parental rights proceeding unless the
19   court orders otherwise based upon the best interests
20   of the child.""
21     4.  Page 5, by inserting after line 24, the
22   following:
23     "Sec. ___.  Section 600.12A, if enacted by the 1998
24   Iowa Acts, Senate File 2338, is amended by adding the
25   following new subsection:
26     NEW SUBSECTION.  1A.  If the person to be adopted
27   dies following termination of the parental rights of
28   the person's biological parents but prior to the
29   filing of an adoption petition, the person who was the
30   guardian or custodian of the person to be adopted
31   prior to the person's death or the person who was in a
32   parent-child relationship with the person to be
33   adopted prior to the person's death may file an
34   adoption petition and the court in the interest of
35   justice may waive any other procedures or requirements
36   related to the adoption, proceed to the adoption
37   hearing, and issue a final adoption decree, unless any
38   person to whom notice is to be provided pursuant to
39   section 600.11 objects to the adoption."
40     5.  By renumbering, relettering, or redesignating
41   and correcting internal references as necessary.
The motion prevailed and the House concurred in the Senate
amendment H-9324.
Boddicker of Cedar 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. 2345)

The ayes were, 98:

Arnold 	Barry 	Bell 	Bernau 
Blodgett 	Boddicker 	Boggess 	Bradley 
Brand	Brauns 	Brunkhorst 	Bukta 
Burnett 	Carroll 	Cataldo 	Chiodo
Churchill 	Cohoon	Connors 	Cormack 
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, 2:

Chapman 	Dinkla

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 2345 be immediately messaged to the Senate.
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 21st day of April, 1998: House Files 2049, 2487 and 2541.
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 21, 1998, he approved and transmitted to the Secretary
of State the following bills:
Senate File 2331, an act relating to agreements for the
provision of services, by excluding persons who provide
transportation of prisoners from statutory requirements
pertaining to private investigators or security agents and the
carrying of weapons, and providing for the sharing of certain
habilitative and treatment resources by the department of
corrections with the department of human services and providing
for certain contractual requirements and the adoption of rules
by the department of corrections.
Senate File 2339, an act relating to an inmate's right to
counsel in a postconviction proceeding pertaining to a
forfeiture of a reduction in sentence or the unlawful holding of
a person in custody or restraint.
Senate File 2353, an act relating to an allocation of state aid
for purposes of school-based youth services programs.
Senate File 2376, an act relating to the operation of the
lottery and providing a penalty.
Senate File 2383, an act relating to amusement ride rider
safety, providing a penalty, and providing an effective date.
PRESENTATION OF VISITORS
The Speaker announced that the following visitors were present
in the House chamber:
Twelve 4th and 5th grade students from Clark Elementary, New
London, accompanied by Becki Harris and Cyndi Morgan.  By Heaton
of Henry.
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
1998\512	Spark and Laura Westendorf, Waucoma - For celebrating
their 60th wedding anniversary.
1998\513	Linda Klasen, Farmersburg - For celebrating her 100th
birthday.
1998\514	Florence Bodensteiner, West Union - For celebrating her
90th birthday.
1998\515	John Skinner, Des Moines - For celebrating his 80th
birthday.
1998\516	Jennifer Hill, Thompson - For receiving her FFA Degree.
1998\517	Elmer and Edith Patrick, Mingo - For celebrating their
50th wedding anniversary.
1998\518	Sybil Mae Gilfillan, Evansdale - For celebrating her
80th birthday.
SUBCOMMITTEE ASSIGNMENT
Senate File 547
Appropriations: Millage, Chair; Sukup and Warnstadt.
RESOLUTIONS FILED
HR 108, by Mascher, Myers, Doderer, and Foege, a resolution
recognizing the centennial anniversary of the University of Iowa
Hospitals and Clinics, and honoring the women and men affiliated
with the University of Iowa Hospitals and Clinics.
Laid over under Rule 25.
HR 109, by Houser, Myers, Carroll, Arnold, Foege, Grundberg,
Jochum, Heaton, Mertz, Mundie, and Vande Hoef, a resolution
recognizing the positive contributions realized from county
implementation of a single entry point process for mental
health, mental retardation, and developmental disabilities
(MH/MR/DD) services known as the central point of coordination
or "CPC" system.
Laid over under Rule 25.
On motion by Siegrist of Pottawattamie, the House adjourned at
8:15 p.m., until 8:45 a.m., Wednesday, April 22, 1998.

© 1998 Cornell College and League of Women Voters of Iowa

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