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House Journal: Thursday, April 20, 2000

JOURNAL OF THE HOUSE

One Hundred Second Calendar Day - Sixty-seventh Session Day

Hall of the House of Representatives
Des Moines, Iowa, Thursday, April 20, 2000

The House met pursuant to adjournment at 9:55 a.m., Speaker pro
tempore Sukup in the chair.

Prayer was offered by the Honorable Danny Holmes, state
representative from Scott County.

The Journal of Wednesday, April 19, 2000 was approved.

MESSAGE FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker: I am directed to inform your honorable body that the Senate has on
April 20, 2000, amended and passed the following bill in which the concurrence of the
House is asked:

House File 2205, a bill for an act relating to electronic commerce by establishing
requirements for electronic transactions and electronic records and providing penalties.

MICHAEL E. MARSHALL, Secretary

Dix of Butler in the chair at 10:26 a.m.

SENATE AMENDMENTS CONSIDERED

Jacobs of Polk called up for consideration House File 2205, a bill
for an act relating to electronic commerce by establishing
requirements for electronic transactions and electronic records and
providing penalties, amended by the Senate amendment H-9015 as
follows:

H-9015

1 Amend House File 2205, as amended, passed, and
2 reprinted by the House, as follows:
3 1. Page 4, by striking lines 23 through 25.
4 2. Page 4, by inserting before line 26 the
5 following:

6 "(___) An electronic transaction initiated at a
7 satellite terminal, as defined in section 527.2, or
8 the processing and routing of transaction data by a
9 central routing unit or a data processing center, each
10 as defined in section 527.2."
11 3. Page 5, line 6, by striking the figure
12 "554.2106" and inserting the following: "554.1206".
13 4. Page 5, by striking lines 14 through 28 and
14 inserting the following:
15 "4. A choice of law provision, which is contained
16 in a computer information agreement that governs a
17 transaction subject to this chapter, that provides
18 that the contract is to be interpreted pursuant to the
19 laws of a state that has enacted the uniform computer
20 information transactions Act, as proposed by the
21 national conference of commissioners on uniform state
22 laws, or any substantially similar law, is voidable
23 and the agreement shall be interpreted pursuant to the
24 laws of this state if the party against whom
25 enforcement of the choice of law provision is sought
26 is a resident of this state or has its principal place
27 of business located in this state. For purposes of
28 this subsection, a "computer information agreement"
29 means an agreement that would be governed by the
30 uniform computer information transactions Act or
31 substantially similar law as enacted in the state
32 specified in the choice of laws provision if that
33 state's law were applied to the agreement."
34 5. Page 7, by inserting after line 9 the
35 following:
36 "Sec. ___. NEW SECTION. 554D.108A LEGAL
37 RECOGNITION OF ELECTRONIC RECORDS AFFECTING INTERESTS
38 IN REAL PROPERTY.
39 An electronic record that grants a legal or
40 equitable interest in real property, including a deed,
41 mortgage, deed of trust, pledge, security interest, or
42 other lien or encumbrance, and any disclosure required
43 under chapter 558A shall comply with all of the
44 following:
45 1. Be created using a security procedure and
46 signed by use of a digital signature.
47 2. Shall not be recorded or have effect against
48 third parties until a duplicate paper original of the
49 electronic record is executed in writing by the
50 parties, acknowledged, and recorded. The burden of

Page 2

1 proof that the duplicate paper original of the
2 electronic record is identical to the original
3 electronic record rests upon the party submitting the
4 duplicate paper original.

5 3. Comply with all requirements of Iowa law
6 regarding the recording of instruments and all other
7 applicable state requirements."
8 6. Page 8, line 27, by striking the word
9 "Notwithstanding" and inserting the following: "In
10 addition to".
11 7. Page 15, line 15, by inserting after the word
12 "state" the following: "other than a state executive
13 branch agency, department, board, commission,
14 authority, or institution,".
15 8. Page 15, by inserting after line 20 the
16 following:
17 "1A. Except as otherwise provided in section
18 554D.113, subsection 6, on or before July 1, 2003, a
19 state executive branch agency, department, board,
20 commission, authority, or institution, in consultation
21 and cooperation with the information technology
22 services division of the department of general
23 services, shall send and accept electronic records and
24 electronic signatures to and from other persons and
25 otherwise create, generate, communicate, store,
26 process, use, and rely upon electronic records and
27 signatures. The department of management, upon the
28 written request of a state executive branch agency,
29 department, board, commission, authority, or
30 institution and for good cause shown, may grant a
31 waiver from the July 1, 2003, deadline established in
32 this section to the state executive branch agency,
33 department, board, commission, authority, or
34 institution."
35 9. Page 15, line 23, by inserting after the
36 figure "1" the following: "or 1A".
37 10. Page 16, by inserting after line 13 the
38 following:
39 "4. Notwithstanding this section, an institution
40 governed under chapter 262 shall conform with national
41 standards with respect to electronic records and
42 electronic signatures, as such standards are
43 developed."
44 11. Page 17, by inserting after line 28 the
45 following:
46 "Sec. ___. NEW SECTION. 75.14 ELECTRONIC
47 BIDDING.
48 Notwithstanding contrary provisions of this
49 chapter, a public body authorized to issue bonds,
50 notes, or other obligations may elect to receive bids

Page 3

1 to purchase such bonds, notes, or other obligations by
2 means of electronic, internet or wireless
3 communication, a proprietary bidding procedure or

4 system, or by facsimile transmission to a location
5 deemed appropriate by the governing body, in each
6 instance as may be approved by the governing body and
7 provided for in the notice of sale. An electronic bid
8 shall be submitted in substantial conformity with the
9 requirements of chapter 554D and any rules adopted
10 pursuant to that chapter with respect to the
11 acceptance of electronic records by a governmental
12 agency. Additionally, before approving the use of an
13 electronic bidding procedure, the public body shall
14 find and determine that the specific procedure to be
15 used will provide reasonable security and maintain the
16 integrity of the competitive bidding process, and
17 facilitate the delivery of bids by interested parties
18 under the circumstances of the particular sale.
19 Sec. ___. ADVISORY COMMITTEE CREATED. An advisory
20 committee is created to study issues associated with
21 the electronic filing, recording, and indexing of
22 instruments affecting real property pursuant to
23 chapter 558, and the electronic use of real property
24 disclosures required pursuant to chapter 558A. The
25 advisory committee shall consider matters relating to
26 the facilitation of electronic filing, recording, and
27 indexing of instruments affecting real property. The
28 advisory committee may consider matters including, but
29 not limited to, access to electronic transactions,
30 reliability and security, storage of records, training
31 of public officials, conversion from a paper recording
32 system to an electronic system, and other issues as
33 are necessary and appropriate with respect to
34 establishing a statewide uniform electronic filing
35 system for real property transactions. The membership
36 of the advisory committee shall be appointed by the
37 legislative council and shall include, but is not
38 limited to, representatives of the Iowa county
39 recorders association, the Iowa state bar association,
40 the Iowa state association of counties, Iowa title
41 guaranty, the Iowa land title association, the Iowa
42 bankers association, the Iowa independent bankers
43 association, the Iowa association of realtors, the
44 Iowa mortgage bankers association, and the office of
45 the attorney general. The advisory committee shall
46 provide an initial written report, including any
47 recommendations, to the general assembly by no later
48 than January 20, 2001. Such report shall include a
49 recommendation for the initiation of a pilot program
50 for electronic land transfers, including a date

Page 4

1 certain by which such program may be initiated and the
2 cost of such pilot program. The advisory committee

3 shall provide a written report to the general assembly
4 in January of each year subsequent to the commencement
5 of the pilot program including the results of the
6 pilot program; any additional recommendations; a
7 schedule for the implementation of a statewide uniform
8 electronic land transfer system, if appropriate; and
9 the costs associated with such implementation
10 including any identifiable ongoing costs and costs for
11 training associated with the system."
12 12. Page 17, by inserting after line 28 the
13 following:
14 "Sec. 105. Section 421.60, subsection 2, Code
15 1999, is amended by adding the following new
16 paragraph:
17 NEW PARAGRAPH. m. (1) The director may abate
18 unpaid state sales and use taxes and local sales and
19 services taxes owed by a retailer in the event that
20 the retailer failed to collect tax from the purchaser
21 as a result of erroneous written advice issued by the
22 department that was specially directed to the retailer
23 by the department and the retailer is unable to
24 collect the tax, interest, or penalties from the
25 purchaser. Before the tax, interest, and penalties
26 shall be abated on the basis of erroneous written
27 advice, the retailer must present a copy of the
28 retailer's request for written advice to the
29 department and a copy of the department's reply. The
30 department shall not maintain a position against the
31 retailer that is inconsistent with the erroneous
32 written advice, except on the basis of subsequent
33 written advice sent by the department to that
34 retailer, or a change in state or federal law, a
35 reported court case to the contrary, a contrary rule
36 adopted by the department, a change in material facts
37 or circumstances relating to the retailer, or the
38 retailer's misrepresentation or incomplete or
39 inadequate representation of material facts and
40 circumstances in requesting the written advice.
41 (2) The director shall abate the unpaid state
42 sales and use taxes and any local sales and services
43 taxes owed by a retailer where the retailer failed to
44 collect the tax from the purchaser on the charges paid
45 for access to on-line computer services as a result of
46 erroneous written advice issued by the department
47 regarding the taxability of charges paid for access to
48 on-line computer services. To qualify for the
49 abatement under this subparagraph, the erroneous
50 written advice shall have been issued by the

Page 5

1 department prior to July 1, 1999, and shall have been

2 specially directed to the retailer by the department.
3 (3) The director shall prepare quarterly reports
4 summarizing each case in which abatement of tax,
5 interest, or penalties was made. However, the report
6 shall not disclose the identity of the taxpayer. An
7 abatement authorized by this paragraph to a retailer
8 shall not preclude the department from proceeding to
9 collect the liability from a purchaser.
10 Sec. 106. Section 422.45, subsection 56, Code
11 Supplement 1999, is amended to read as follows:
12 56. The gross receipts from charges paid to a
13 provider for access to on-line computer services. For
14 purposes of this subsection, "on-line computer
15 service" means a service that provides or enables
16 computer access by multiple users to the internet or
17 to other information made available through a computer
18 server.
19 Sec. 107. Section 422.52, subsection 6, paragraph
20 a, Code Supplement 1999, is amended to read as
21 follows:
22 a. If a purchaser fails to pay tax imposed by this
23 division to the retailer required to collect the tax,
24 then in addition to all of the rights, obligations,
25 and remedies provided, the tax is payable by the
26 purchaser directly to the department, and sections
27 422.50, 422.51, 422.52, 422.54, 422.55, 422.56,
28 422.57, 422.58, and 422.59 apply to the purchaser.
29 For failure, the retailer and purchaser are liable,
30 unless the circumstances described in section 421.60,
31 subsection 2, paragraph "m", or section 422.47,
32 subsection 3, paragraph "b" or "e", or subsection 4,
33 paragraph "b" or "d", are applicable."
34 13. Page 17, by inserting after line 29 the
35 following:
36 "Sec. ___. REPEAL - EFFECTIVE DATE.
37 1. Section 554D.104, subsection 4, as enacted in
38 this Act, is amended by striking the subsection.
39 2. This section of this Act takes effect July 1,
40 2001.
41 Sec. ___. LEGISLATIVE INTENT. It is the intent of
42 the general assembly that the general assembly
43 consider the proposed uniform computer information
44 transactions Act, as adopted by the national
45 conference of commissioners on uniform state laws,
46 during the 2001 regular session."
47 14. Page 17, by inserting after line 29 the
48 following:
49 "Sec. ___. EFFECTIVE DATE. Sections 105, 106, and
50 107 of this Act, being deemed of immediate importance,


Page 6

1 take effect upon enactment."
2 15. Title page, line 3, by inserting after the
3 word "records" the following: ", relating to sales
4 and use tax exemption for access to electronic
5 commerce,".
6 16. By renumbering, relettering, or redesignating
7 and correcting internal references as necessary.

Van Fossen of Scott asked unanimous consent to defer House File
2205 and the Senate amendment H-9015.

Objection was raised.

Van Fossen of Scott moved to defer House File 2205 and the
Senate amendment H-9015.

The motion to defer lost.

On motion by Jacobs of Polk the House concurred in the Senate
amendment H-9015.

Jacobs of Polk moved that the bill, as amended by the Senate and
concurred in by the House, be read a last time now and placed upon
its passage which motion prevailed and the bill was read a last time.

On the question "Shall the bill pass?" (H.F. 2205)

The ayes were, 95:
Alons Arnold Barry Baudler
Bell Blodgett Boal Boddicker
Boggess Bradley Brauns Brunkhorst
Bukta Carroll Cataldo Chiodo
Cohoon Connors Cormack Davis
Doderer Dolecheck Dotzler Drake
Drees Eddie Falck Fallon
Foege Ford Garman Gipp
Greimann Greiner Grundberg Hahn
Hansen Heaton Holmes Holveck
Horbach Huseman Huser Jacobs
Jager Jenkins Jochum Johnson
Kettering Klemme Kreiman Kuhn
Larkin Larson Lord Martin
Mascher May Mertz Metcalf
Millage Mundie Murphy Myers
Nelson-Forbes Osterhaus Parmenter Raecker
Rants Rayhons Reynolds Richardson
Scherrman Schrader Shey Shoultz
Siegrist, Spkr. Stevens Sukup Sunderbruch
Taylor, D. Taylor, T. Teig Thomas
Thomson Tyrrell Van Engelenhoven Van Fossen
Warnstadt Weidman Weigel Whitead
Wise Witt Dix,
Presiding

 


The nays were, 1:
O'Brien

 


Absent or not voting, 4:
Frevert Hoffman Houser Welter

 


The bill having received a constitutional majority was declared to
have passed the House and the title, as amended, was agreed to.

Sukup of Franklin called up for consideration House File 2557, a
bill for an act relating to the state's disposition of unclaimed property
law by setting a limit on the retention of abandoned property records
and requiring the filing of rules setting requirements and conditions
for hiring independent auditors, amended by the Senate, and moved
that the House concur in the following Senate amendment H-8989:

H-8989

1 Amend House File 2557, as amended, passed, and
2 reprinted by the House, as follows:
3 1. Page 1, by striking lines 15 and 16 and
4 inserting the following: "of issue, for four years
5 after the date of filing."
6 2. Page 1, line 18, by inserting after the figure
7 "17A.4," the following: "by December 31, 2000,".
8 3. By renumbering, relettering, or redesignating
9 and correcting internal references as necessary.

The motion prevailed and the House concurred in the Senate
amendment H-8989.

Sukup of Franklin moved that the bill, as amended by the Senate
and concurred in by the House, be read a last time now and placed
upon its passage which motion prevailed and the bill was read a last
time.

On the question "Shall the bill pass?" (H.F. 2557)

The ayes were, 95:
Alons Arnold Barry Baudler
Bell Blodgett Boal Boddicker
Boggess Bradley Brauns Brunkhorst
Bukta Carroll Cataldo Chiodo
Cohoon Connors Cormack Davis
Doderer Dolecheck Dotzler Drake
Drees Eddie Falck Fallon
Foege Ford Garman Gipp
Greimann Greiner Grundberg Hahn
Hansen Holmes Holveck Horbach
Huseman Huser Jacobs Jager
Jenkins Jochum Johnson Kettering
Klemme Kreiman Kuhn Larkin
Larson Lord Martin Mascher
May Mertz Metcalf Millage
Mundie Murphy Myers Nelson-Forbes
O'Brien Osterhaus Parmenter Raecker
Rants Rayhons Reynolds Richardson
Scherrman Schrader Shey Shoultz
Stevens Sukup Sunderbruch Taylor, D.
Taylor, T. Teig Thomas Thomson
Tyrrell Van Engelenhoven Van Fossen Warnstadt
Weidman Weigel Welter Whitead
Wise Witt Dix,
Presiding

 


The nays were, none.

Absent or not voting, 5:
Frevert Heaton Hoffman Houser
Siegrist, Spkr.

 


The bill having received a constitutional majority was declared to
have passed the House and the title was agreed to.

IMMEDIATE MESSAGE

Rants of Woodbury asked and received unanimous consent that
House File 2557 be immediately messaged to the Senate.

MESSAGE FROM THE SENATE

The following message was received from the Senate:


Mr. Speaker: I am directed to inform your honorable body that the Senate has on
April 20, 2000, concurred in the House amendment and passed the following bill in
which the concurrence of the Senate was asked:

Senate File 2447, a bill for an act relating to public improvements and providing
financial assistance to communities and school districts by creating a school
infrastructure program and fund, continuing the community attraction and tourism
program and fund, creating a vision Iowa board, creating a vision Iowa program and
fund, providing bonding authority to the treasurer of state, and exempting certain
income from taxation.

MICHAEL E. MARSHALL, Secretary

On motion by Rants of Woodbury, the House was recessed at 11:15
a.m., until 1:00 p.m.

AFTERNOON SESSION

The House reconvened at 1:08 p.m., Speaker Siegrist in the chair.

QUORUM CALL

A non-record roll call was requested to determine that a quorum
was present. The vote revealed fifty-nine members present, forty-one
absent.

SPECIAL PRESENTATION TO HOUSE PAGES

Speaker Siegrist 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-
eighth General Assembly were presented to the following Pages by
Speaker Siegrist, Majority Leader Christopher Rants of Woodbury
and Minority Leader David Schrader of Marion:

Joseph Bergsmith Ryan Cross
Abbie Bollans Brenda De Vries
Julie Borchers Shane Doeppke
Katie Bouma Melissa Drake
Stacy Bruns Matthew Evoy
Christopher Cooper Stephanie Haas

John (Michael) Halloran Aaron Moser
Jenni Jackson Amy Murray
Katie Mammen Jennifer Rogers
William Mason Matthew Schuring
Jennifer McGee Bret Wisecup
CeAnn McNamara

COMMITTEE RECOMMENDATION

MR. SPEAKER: The Chief Clerk of the House respectfully reports
that the following committee recommendation has been received and
is on file in the office of the Chief Clerk.

ELIZABETH A. ISAACSON
Chief Clerk of the House

COMMITTEE ON APPROPRIATIONS

House File 2579, a bill for an act creating a tobacco settlement authority Act,
authorizing the issuance of bonds, and providing an effective date.

Fiscal Note is not required.

Recommended Amend and Do Pass with amendment H-9012 April 19, 2000.

Rants of Woodbury asked and received unanimous consent for the
immediate consideration of House File 2579.

CONSIDERATION OF BILLS
Appropriations Calendar

House File 2579, a bill for an act creating a tobacco settlement
authority Act, authorizing the issuance of bonds, and providing an
effective date, with report of committee recommending amendment
and passage, was taken up for consideration.

Heaton of Henry offered the following amendment H-9012 filed by
the committee on appropriations from the floor and moved its
adoption:

H-9012

1 Amend House File 2579 as follows:
2 1. Page 6, line 27, by striking the word

3 "AUTHORIZATON" and inserting the following:
4 "AUTHORIZATION".
5 2. Page 9, by inserting after line 2, the
6 following:
7 "g. The procedure to be used in amending the
8 program plan."
9 3. Page 9, line 3, by striking the figure "g."
10 and inserting the following: "h."
11 4. Page 9, line 9, by inserting after the word
12 "council." the following: "Any amendment of the
13 program plan, which program plan has been certified by
14 the executive council, is subject to review by the
15 legislative council and certification by the executive
16 council. Any such amendment of the program plan shall
17 not conflict with any existing contractual obligation
18 including any obligation to the holders of bonds."
19 5. Page 9, line 30, by striking the word "it" and
20 inserting the following: "its".
21 6. Page 12, line 27, by striking the words
22 "subject to".
23 7. Page 13, line 17, by striking the words
24 "financial institution's" and inserting the following:
25 "entity's".
26 8. Page 16, by striking lines 16 through 18, and
27 inserting the following: "moneys of the authority,
28 and financial institutions and trust companies may
29 provide security for the deposits."
30 9. Page 17, line 31, by striking the word
31 "charter" and inserting the following: "chapter".
32 10. Page 19, line 6, by striking the word "state"
33 and inserting the following: "state's".

The committee amendment H-9012 was adopted.

Heaton of Henry offered the following amendment H-9023 filed by
him from the floor and moved its adoption:

H-9023

1 Amend House File 2579 as follows:
2 1. Page 20, by inserting after line 13, the
3 following:
4 "Sec. ___. REFERENCES. References to the tobacco
5 settlement fund in other enactments of the 2000
6 session of the Seventy-eighth Iowa general assembly,
7 are references to the tobacco settlement endowment
8 fund."
9 2. By renumbering as necessary.

Amendment H-9023 was adopted.

LEAVE OF ABSENCE

Leave of absence was granted as follows:

Falck of Fayette, for the remainder of the day, on request of Schrader of Marion;
Frevert of Palo Alto and Foege of Linn on request of Huser of Polk.

Heaton of Henry moved that the bill be read a last time now and
placed upon its passage which motion prevailed and the bill was read
a last time.

On the question "Shall the bill pass?" (H.F. 2579)

The ayes were, 97:
Alons Arnold Barry Baudler
Bell Blodgett Boal Boddicker
Boggess Bradley Brauns Brunkhorst
Bukta Carroll Cataldo Chiodo
Cohoon Connors Cormack Davis
Dix Doderer Dolecheck Dotzler
Drake Drees Eddie Fallon
Ford Garman Gipp Greimann
Greiner Grundberg Hahn Hansen
Heaton Hoffman Holmes Holveck
Horbach Houser Huseman Huser
Jacobs Jager Jenkins Jochum
Johnson Kettering Klemme Kreiman
Kuhn Larkin Larson Lord
Martin Mascher May Mertz
Metcalf Millage Mundie Murphy
Myers Nelson-Forbes O'Brien Osterhaus
Parmenter Raecker Rants Rayhons
Reynolds Richardson Scherrman Schrader
Shey Shoultz Stevens Sukup
Sunderbruch Taylor, D. Taylor, T. Teig
Thomas Thomson Tyrrell Van Engelenhoven
Van Fossen Warnstadt Weidman Weigel
Welter Whitead Wise Witt
Mr. Speaker
Siegrist

 


The nays were, none.

Absent or not voting, 3:
Falck Foege Frevert

 



The bill having received a constitutional majority was declared to
have passed the House and the title was agreed to.

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 20, 2000, upon reconsideration following receipt of the Governor's objections,
failed to pass by a majority of two thirds of the members of the Senate:

Senate File 2203, a bill for an act to allow the assignment of benefits under an
insurance policy or contract, or health benefit plan to the provider of health care
services. Vetoed 3-3-00.

MICHAEL E. MARSHALL, Secretary

INTRODUCTION OF BILL

House File 2584, by Rants and Schrader, a bill for an act relating
to the dissolution of the Iowa housing corporation and providing an
effective date.

Read first time and referred to committee on appropriations.

Ways and Means Calendar

House File 2560, a bill for an act providing an individual and
corporate income tax credit for the rehabilitation of certain eligible
commercial and residential property and barns, was taken up for
consideration.

The House stood at ease at 2:28 p.m., until the fall of the gavel.

The House resumed session and consideration of House File 2560,
at 3:53 p.m., Speaker Siegrist in the chair.

Schrader of Marion asked and received unanimous consent that
amendment H-9025 be deferred.

Van Fossen of Scott offered amendment H-9019 filed by him, Alons
of Sioux, Baudler of Adair, Davis of Wapello, Drake of Pottawattamie,
Nelson-Forbes of Marshall, Garman of Story, Houser of
Pottawattamie, Jager of Black Hawk, Lord of Dallas, Martin of Scott,

Millage of Scott, Raecker of Polk, Shey of Linn, Sukup of Franklin,
Sunderbruch of Scott, Arnold of Lucas, Barry of Harrison, Blodgett of
Cerro Gordo, Boal of Polk, Boddicker of Cedar, Boggess of Page,
Bradley of Clinton, Brauns of Muscatine, Brunkhorst of Bremer,
Carroll of Poweshiek, Cormack of Webster, Dix of Butler, Dolecheck
of Ringgold, Eddie of Buena Vista, Gipp of Winneshiek, Grundberg of
Polk, Hahn of Muscatine, Hansen of Pottawattamie, Heaton of Henry,
Hoffman of Crawford, Holmes of Scott, Horbach of Tama, Huseman of
Cherokee, Jacobs of Polk, Johnson of Osceola, Kettering of Sac,
Klemme of Plymouth, Larson of Linn, Metcalf of Polk, Rants of
Woodbury, Rayhons of Hancock, Siegrist of Pottawattamie, Teig of
Hamilton, Thomson of Linn, Tyrrell of Iowa, Van Engelenhoven of
Mahaska, Weidman of Cass and Welter of Jones, from the floor as
follows:

H-9019

1 Amend House File 2560 as follows:
2 1. Page 1, by inserting before line 1 the
3 following:
4 "Section 1. Section 15.335, Code Supplement 1999,
5 is amended to read as follows:
6 15.335 RESEARCH ACTIVITIES CREDIT.
7 1. An eligible business may claim a corporate tax
8 credit for increasing research activities in this
9 state during the period the eligible business is
10 participating in the program.
11 a. The credit equals six and one-half percent of
12 the state's apportioned share of the qualifying
13 expenditures for increasing research activities. the
14 sum of the following:
15 (1) Six and one-half percent of the excess of
16 qualified research expenses during the tax year over
17 the base amount for the tax year based upon the
18 state's apportioned share of the qualifying
19 expenditures for increasing research activities.
20 (2) Six and one-half percent of the basic research
21 payments determined under section 41(e)(1)(A) of the
22 Internal Revenue Code during the tax year based upon
23 the state's apportioned share of the qualifying
24 expenditures for increasing research activities.
25 The state's apportioned share of the qualifying
26 expenditures for increasing research activities is a
27 percent equal to the ratio of qualified research
28 expenditures in this state to total qualified research
29 expenditures.
30 b. In lieu of the credit amount computed in
31 paragraph "a", subparagraph (1), an eligible business

32 may elect to compute the credit amount for qualified
33 research expenses incurred in this state in a manner
34 consistent with the alternative incremental credit
35 described in section 41(c)(4) of the Internal Revenue
36 Code. The taxpayer may make this election regardless
37 of the method used for the taxpayer's federal income
38 tax. The election made under this paragraph is for
39 the tax year and the taxpayer may use another or the
40 same method for any subsequent year.
41 c. For purposes of the alternate credit
42 computation method in paragraph "b", the credit
43 percentages applicable to qualified research expenses
44 described in clauses (i), (ii), and (iii) of section
45 41(c)(4)(A) of the Internal Revenue Code are one and
46 sixty-five hundredths percent, two and twenty
47 hundredths percent, and two and seventy-five
48 hundredths percent, respectively.
49 2. The credit allowed in this section is in
50 addition to the credit authorized in section 422.33,

Page 2

1 subsection 5, and section 422.10. However, if the
2 alternative credit computation method is used in
3 section 422.33, subsection 5, or section 422.10, the
4 credit allowed in this section shall also be computed
5 using that method.
6 3. If the eligible business is a partnership,
7 subchapter S corporation, limited liability company,
8 or estate or trust electing to have the income taxed
9 directly to the individual, an individual may claim
10 the tax credit allowed. The amount claimed by the
11 individual shall be based upon the pro rata share of
12 the individual's earnings of the partnership,
13 subchapter S corporation, limited liability company,
14 or estate or trust.
15 4. For purposes of this section, "qualifying
16 expenditures for increasing research activities" means
17 the qualifying expenditures "base amount", "basic
18 research payment", and "qualified research expense"
19 mean the same as defined for the federal credit for
20 increasing research activities which would be
21 allowable under section 41 of the Internal Revenue
22 Code in effect on January 1, 1999, except that for the
23 alternative incremental credit such amounts are for
24 research conducted within this state. For purposes of
25 this section, "Internal Revenue Code" means the
26 Internal Revenue Code in effect on January 1, 2000.
27 5. Any credit in excess of the tax liability for
28 the taxable year shall be refunded with interest
29 computed under section 422.25. In lieu of claiming a
30 refund, a taxpayer may elect to have the overpayment

31 shown on its final, completed return credited to the
32 tax liability for the following year.
33 Sec. 102. Section 15A.9, subsection 8, Code
34 Supplement 1999, is amended to read as follows:
35 8. CORPORATE TAX RESEARCH CREDIT. a corporate tax
36 credit shall be available to the primary business or a
37 supporting business for increasing research activities
38 in this state within the zone.
39 a. The credit equals thirteen percent of the
40 state's apportioned share of the qualifying
41 expenditures for increasing research activities. the
42 sum of the following:
43 (1) Thirteen percent of the excess of qualified
44 research expenses during the tax year over the base
45 amount for the tax year based upon the state's
46 apportioned share of the qualifying expenditures for
47 increasing research activities.
48 (2) Thirteen percent of the basic research
49 payments determined under section 41(e)(1)(A) of the
50 Internal Revenue Code during the tax year based upon

Page 3

1 the state's apportioned share of the qualifying
2 expenditures for increasing research activities.
3 The state's apportioned share of the qualifying
4 expenditures for increasing research activities is a
5 percent equal to the ratio of qualified research
6 expenditures in this state within the zone to total
7 qualified research expenditures.
8 b. In lieu of the credit amount computed in
9 paragraph "a", subparagraph (1), a business may elect
10 to compute the credit amount for qualified research
11 expenses incurred in this state within the zone in a
12 manner consistent with the alternative incremental
13 credit described in section 41(c)(4) of the Internal
14 Revenue Code. The taxpayer may make this election
15 regardless of the method used for the taxpayer's
16 federal income tax. The election made under this
17 paragraph is for the tax year and the taxpayer may use
18 another or the same method for any subsequent year.
19 c. For purposes of the alternate credit
20 computation method in paragraph "b", the credit
21 percentages applicable to qualified research expenses
22 described in clauses (i), (ii), and (iii) of section
23 41(c)(4)(A) of the Internal Revenue Code are three and
24 thirty hundredths percent, four and forty hundredths
25 percent, and five and fifty hundredths percent,
26 respectively.
27 d. Any credit in excess of the tax liability for
28 the tax year shall be refunded with interest computed
29 under section 422.25. In lieu of claiming a refund,

30 the primary business or a supporting business may
31 elect to have the overpayment shown on its final
32 return credited to its tax liability for the following
33 tax year.
34 e. For the purposes of this section, "qualifying
35 expenditures for increasing research activities" means
36 the qualifying expenditures subsection, "base amount",
37 "basic research payment", and "qualified research
38 expense" mean the same as defined for the federal
39 credit for increasing research activities which would
40 be allowable under section 41 of the Internal Revenue
41 Code in effect on January 1, 1999, except that for the
42 alternative incremental credit such amounts are for
43 research conducted within this state within the zone.
44 For purposes of this subsection, "Internal Revenue
45 Code" means the Internal Revenue Code in effect on
46 January 1, 2000.
47 f. The credit authorized in this subsection is in
48 lieu of the credit authorized in section 422.33,
49 subsection 5 and section 422.10."
50 2. Page 4, by inserting after line 19 the

Page 4

1 following:
2 "Sec. 103. Section 422.7, subsection 31, Code
3 1999, is amended to read as follows:
4 31. For a person who is disabled, or is fifty-five
5 years of age or older, or is the surviving spouse of
6 an individual or a survivor having an insurable
7 interest in an individual who would have qualified for
8 the exemption under this subsection for the tax year,
9 subtract, to the extent included, the total amount of
10 a governmental or other pension or retirement pay,
11 including, but not limited to, defined benefit or
12 defined contribution plans, annuities, individual
13 retirement accounts, plans maintained or contributed
14 to by an employer, or maintained or contributed to by
15 a self-employed person as an employer, and deferred
16 compensation plans or any earnings attributable to the
17 deferred compensation plans, up to a maximum of five
18 six thousand dollars for a person, other than a
19 husband or wife, who files a separate state income tax
20 return and up to a maximum of ten twelve thousand
21 dollars for a husband and wife who file a joint state
22 income tax return. However, a surviving spouse who is
23 not disabled or fifty-five years of age or older can
24 only exclude the amount of pension or retirement pay
25 received as a result of the death of the other spouse.
26 a husband and wife filing separate state income tax
27 returns or separately on a combined state return are
28 allowed a combined maximum exclusion under this

29 subsection of up to ten twelve thousand dollars. The
30 ten twelve thousand dollar exclusion shall be
31 allocated to the husband or wife in the proportion
32 that each spouse's respective pension and retirement
33 pay received bears to total combined pension and
34 retirement pay received.
35 Sec. 104. Section 422.10, Code Supplement 1999, is
36 amended to read as follows:
37 422.10 RESEARCH ACTIVITIES CREDIT.
38 1. The taxes imposed under this division shall be
39 reduced by a state tax credit for increasing research
40 activities in this state.
41 a. For individuals, the credit equals six and one-
42 half percent of the state's apportioned share of the
43 qualifying expenditures for increasing research
44 activities. the sum of the following:
45 (1) Six and one-half percent of the excess of
46 qualified research expenses during the tax year over
47 the base amount for the tax year based upon the
48 state's apportioned share of the qualifying
49 expenditures for increasing research activities.
50 (2) Six and one-half percent of the basic research

Page 5

1 payments determined under section 41(e)(1)(A) of the
2 Internal Revenue Code during the tax year based upon
3 the state's apportioned share of the qualifying
4 expenditures for increasing research activities.
5 The state's apportioned share of the qualifying
6 expenditures for increasing research activities is a
7 percent equal to the ratio of qualified research
8 expenditures in this state to total qualified research
9 expenditures.
10 b. In lieu of the credit amount computed in
11 paragraph "a", subparagraph (1), a taxpayer may elect
12 to compute the credit amount for qualified research
13 expenses incurred in this state in a manner consistent
14 with the alternative incremental credit described in
15 section 41(c)(4) of the Internal Revenue Code. The
16 taxpayer may make this election regardless of the
17 method used for the taxpayer's federal income tax.
18 The election made under this paragraph is for the tax
19 year and the taxpayer may use another or the same
20 method for any subsequent year.
21 c. For purposes of the alternate credit
22 computation method in paragraph "b", the credit
23 percentages applicable to qualified research expenses
24 described in clauses (i), (ii), and (iii) of section
25 41(c)(4)(A) of the Internal Revenue Code are one and
26 sixty-five hundredths percent, two and twenty
27 hundredths percent, and two and seventy-five

28 hundredths percent, respectively.
29 2. For purposes of this section, an individual may
30 claim a research credit for qualifying research
31 expenditures incurred by a partnership, subchapter S
32 corporation, limited liability company, estate, or
33 trust electing to have the income taxed directly to
34 the individual. The amount claimed by the individual
35 shall be based upon the pro rata share of the
36 individual's earnings of a partnership, subchapter S
37 corporation, limited liability company, estate, or
38 trust.
39 3. For purposes of this section, "qualifying
40 expenditures for increasing research activities" means
41 the qualifying expenditures "base amount", "basic
42 research payment", and "qualified research expense"
43 mean the same as defined for the federal credit for
44 increasing research activities which would be
45 allowable under section 41 of the Internal Revenue
46 Code in effect on January 1, 1999, except that for the
47 alternative incremental credit such amounts are for
48 research conducted within this state. For purposes of
49 this section, "Internal Revenue Code" means the
50 Internal Revenue Code in effect on January 1, 2000.

Page 6

1 4. Any credit in excess of the tax liability
2 imposed by section 422.5 less the credits allowed
3 under sections 422.11A, 422.12, and 422.12B for the
4 taxable year shall be refunded with interest computed
5 under section 422.25. In lieu of claiming a refund, a
6 taxpayer may elect to have the overpayment shown on
7 the taxpayer's final, completed return credited to the
8 tax liability for the following taxable year."
9 3. Page 5, by inserting after line 7 the
10 following:
11 "Sec. 105. Section 422.33, subsection 5, Code
12 Supplement 1999, is amended to read as follows:
13 5. a. The taxes imposed under this division shall
14 be reduced by a state tax credit for increasing
15 research activities in this state equal to six and
16 one-half percent of the state's apportioned share of
17 the qualifying expenditures for increasing research
18 activities. the sum of the following:
19 (1) Six and one-half percent of the excess of
20 qualified research expenses during the tax year over
21 the base amount for the tax year based upon the
22 state's apportioned share of the qualifying
23 expenditures for increasing research activities.
24 (2) Six and one-half percent of the basic research
25 payments determined under section 41(e)(1)(A) of the
26 Internal Revenue Code during the tax year based upon

27 the state's apportioned share of the qualifying
28 expenditures for increasing research activities.
29 The state's apportioned share of the qualifying
30 expenditures for increasing research activities is a
31 percent equal to the ratio of qualified research
32 expenditures in this state to the total qualified
33 research expenditures.
34 b. In lieu of the credit amount computed in
35 paragraph "a", subparagraph (1), a corporation may
36 elect to compute the credit amount for qualified
37 research expenses incurred in this state in a manner
38 consistent with the alternative incremental credit
39 described in section 41(c)(4) of the Internal Revenue
40 Code. The taxpayer may make this election regardless
41 of the method used for the taxpayer's federal income
42 tax. The election made under this paragraph is for
43 the tax year and the taxpayer may use another or the
44 same method for any subsequent year.
45 c. For purposes of the alternate credit
46 computation method in paragraph "b", the credit
47 percentages applicable to qualified research expenses
48 described in clauses (i), (ii), and (iii) of section
49 41(c)(4)(A) of the Internal Revenue Code are one and
50 sixty-five hundredths percent, two and twenty

Page 7

1 hundredths percent, and two and seventy-five
2 hundredths percent, respectively.
3 d. For purposes of this subsection, "qualifying
4 expenditures for increasing research activities" means
5 the qualifying expenditures "base amount", "basic
6 research payment", and "qualified research expense"
7 mean the same as defined for the federal credit for
8 increasing research activities which would be
9 allowable under section 41 of the Internal Revenue
10 Code in effect on January 1, 1999, except that for the
11 alternative incremental credit such amounts are for
12 research conducted within this state. For purposes of
13 this subsection, "Internal Revenue Code" means the
14 Internal Revenue Code in effect on January 1, 2000.
15 e. Any credit in excess of the tax liability for
16 the taxable year shall be refunded with interest
17 computed under section 422.25. In lieu of claiming a
18 refund, a taxpayer may elect to have the overpayment
19 shown on its final, completed return credited to the
20 tax liability for the following taxable year."
21 4. Page 5, by inserting after line 22 the
22 following:
23 "Sec. ___. APPLICABILITY DATE. Sections 1, 102,
24 104, and 105, of this Act apply retroactively to
25 January 1, 2000, for tax years beginning on or after

26 that date. Section 103 of this Act applies to tax
27 years beginning on or after January 1, 2001."
28 5. Title page, line 3, by inserting after the
29 word "barns" the following: ", an alternative method
30 for computing the individual and corporate income tax
31 credit for increasing research and development, and an
32 increase in the deduction for pension and retirement
33 income for income tax purposes, and including
34 applicability dates".

Dix of Butler asked and received unanimous consent to withdraw
amendment H-9031, to amendment H-9019, filed by him from the
floor.

Schrader of Marion offered the following amendment H-9033, to
amendment H-9019, filed by him from the floor and moved its
adoption:

H-9033

1 Amend the amendment H-9019 to House File 2560 as
2 follows:
3 1. Page 7, line 23, by inserting after the figure
4 "102," the following: "103,".
5 2. Page 7, by striking lines 26 and 27 and
6 inserting the following: "that date." "

Roll call was requested by Schrader of Marion and Brunkhorst of
Bremer.

On the question "Shall amendment H-9033 to amendment H-9019
be adopted?" (H.F. 2560)

The ayes were, 44:
Bell Bukta Cataldo Chiodo
Cohoon Connors Davis Dotzler
Fallon Ford Garman Greimann
Holveck Huser Jochum Kreiman
Kuhn Larkin Mascher May
Mertz Mundie Murphy Myers
O'Brien Osterhaus Parmenter Rayhons
Reynolds Richardson Scherrman Schrader
Shoultz Stevens Sunderbruch Taylor, D.
Taylor, T. Thomas Van Fossen Warnstadt
Weigel Whitead Wise Witt

 




The nays were, 51:
Alons Arnold Barry Baudler
Blodgett Boal Boddicker Boggess
Bradley Brauns Brunkhorst Carroll
Cormack Dix Dolecheck Drake
Eddie Gipp Greiner Grundberg
Hahn Hansen Heaton Hoffman
Holmes Horbach Houser Huseman
Jacobs Jager Jenkins Johnson
Kettering Klemme Larson Lord
Martin Metcalf Millage Nelson-Forbes
Raecker Rants Shey Sukup
Teig Thomson Tyrrell Van Engelenhoven
Weidman Welter Mr. Speaker
Siegrist

 


Absent or not voting, 5:
Doderer Drees Falck Foege
Frevert

 


Amendment H-9033 lost.

Boal of Polk offered the following amendment H-9036, to
amendment H-9019, filed by her and Jochum of Dubuque from the
floor and moved its adoption:

H-9036

1 Amend the amendment, H-9019, to House File 2560, as
2 follows:
3 1. Page 6, line 11, by striking the word and
4 figure ""Sec. 105." and inserting the following:
5 ""Sec. 200. NEW SECTION. 422.11E ASSISTIVE
6 DEVICE TAX CREDIT - SMALL BUSINESS.
7 1. The taxes imposed under this division, less the
8 credits allowed under sections 422.12 and 422.12B,
9 shall be reduced by an assistive device tax credit. A
10 small business purchasing, renting, or modifying an
11 assistive device or making workplace modifications for
12 an individual with a disability who is employed or
13 will be employed by the small business is eligible,
14 subject to availability of credits, to receive this
15 assistive device tax credit which is equal to fifty
16 percent of the first five thousand dollars paid during
17 the tax year for the purchase, rental, or modification
18 of the assistive device or for making the workplace
19 modifications. Any credit in excess of the tax
20 liability shall be refunded with interest computed

21 under section 422.25. In lieu of claiming a refund, a
22 taxpayer may elect to have the overpayment shown on
23 the taxpayer's final, completed return credited to the
24 tax liability for the following tax year. If the
25 small business elects to take the assistive device tax
26 credit, the small business shall not deduct for Iowa
27 tax purposes any amount of the cost of an assistive
28 device or workplace modifications which is deductible
29 for federal tax purposes.
30 2. To receive the assistive device tax credit, the
31 eligible small business must submit an application to
32 the department of economic development. If the
33 taxpayer meets the criteria for eligibility, the
34 department of economic development shall issue to the
35 taxpayer a certification of entitlement for the
36 assistive device tax credit. However, the combined
37 amount of tax credits that may be approved for a
38 fiscal year under this section and section 422.33,
39 subsection 9, shall not exceed five hundred thousand
40 dollars. Tax credit certificates shall be issued on
41 an earliest filed basis. The certification shall
42 contain the taxpayer's name, address, tax
43 identification number, the amount of the credit, and
44 tax year for which the certificate applies. The
45 taxpayer must file the tax credit certificate with the
46 taxpayer's individual income tax return in order to
47 claim the tax credit. The departments of economic
48 development and revenue and finance shall each adopt
49 rules to jointly administer this section and shall
50 provide by rule for the method to be used to determine

Page 2

1 for which fiscal year the tax credits are approved.
2 3. An individual may claim an assistive device tax
3 credit allowed a partnership, limited liability
4 company, S corporation, estate, or trust electing to
5 have the income taxed directly to the individual. The
6 amount claimed by the individual shall be based upon
7 the pro rata share of the individual's earnings of the
8 partnership, limited liability company, S corporation,
9 estate, or trust.
10 4. For purposes of this section:
11 a. "Assistive device" means any item, piece of
12 equipment, or product system which is used to
13 increase, maintain, or improve the functional
14 capabilities of an individual with a disability in the
15 workplace or on the job. "Assistive device" does not
16 mean any medical device, surgical device, or organ
17 implanted or transplanted into or attached directly to
18 an individual. "Assistive device" does not include
19 any device for which a certificate of title is issued

20 by the state department of transportation, but does
21 include any item, piece of equipment, or product
22 system otherwise meeting the definition of "assistive
23 device" that is incorporated, attached, or included as
24 a modification in or to such a device issued a
25 certificate of title.
26 b. "Disability" means the same as defined in
27 section 225C.46.
28 c. "Small business" means a business that either
29 had gross receipts for its preceding tax year of three
30 million dollars or less or employed not more than
31 fourteen full-time employees during its preceding tax
32 year.
33 d. "Workplace modifications" means physical
34 alterations to the work environment.
35 Sec. 105."
36 2. Page 7, line 20, by striking the word "year.""
37 and inserting the following: "year.
38 Sec. 201. Section 422.33, Code Supplement 1999, is
39 amended by adding the following new subsection:
40 NEW SUBSECTION. 8A. a. The taxes imposed under
41 this division shall be reduced by an assistive device
42 tax credit. a small business purchasing, renting, or
43 modifying an assistive device or making workplace
44 modifications for an individual with a disability who
45 is employed or will be employed by the small business
46 is eligible, subject to availability of credits, to
47 receive this assistive device tax credit which is
48 equal to fifty percent of the first five thousand
49 dollars paid during the tax year for the purchase,
50 rental, or modification of the assistive device or for

Page 3

1 making the workplace modifications. Any credit in
2 excess of the tax liability shall be refunded with
3 interest computed under section 422.25. In lieu of
4 claiming a refund, a taxpayer may elect to have the
5 overpayment shown on the taxpayer's final, completed
6 return credited to the tax liability for the following
7 tax year. If the small business elects to take the
8 assistive device tax credit, the small business shall
9 not deduct for Iowa tax purposes any amount of the
10 cost of an assistive device or workplace modifications
11 which is deductible for federal income tax purposes.
12 b. To receive the assistive device tax credit, the
13 eligible small business must submit an application to
14 the department of economic development. If the
15 taxpayer meets the criteria for eligibility, the
16 department of economic development shall issue to the
17 taxpayer a certification of entitlement for the
18 assistive device tax credit. However, the combined

19 amount of tax credits that may be approved for a
20 fiscal year under this subsection and section 422.11D
21 shall not exceed five hundred thousand dollars. Tax
22 credit certificates shall be issued on an earliest
23 filed basis. The certification shall contain the
24 taxpayer's name, address, tax identification number,
25 the amount of the credit, and tax year for which the
26 certificate applies. The taxpayer must file the tax
27 credit certificate with the taxpayer's corporate
28 income tax return in order to claim the tax credit.
29 The departments of economic development and revenue
30 and finance shall each adopt rules to jointly
31 administer this subsection and shall provide by rule
32 for the method to be used to determine for which
33 fiscal year the tax credits are approved.
34 c. For purposes of this subsection:
35 (1) "Assistive device" means any item, piece of
36 equipment, or product system which is used to
37 increase, maintain, or improve the functional
38 capabilities of an individual with a disability in the
39 workplace or on the job. "Assistive device" does not
40 mean any medical device, surgical device, or organ
41 implanted or transplanted into or attached directly to
42 an individual. "Assistive device" does not include
43 any device for which a certificate of title is issued
44 by the state department of transportation, but does
45 include any item, piece of equipment, or product
46 system otherwise meeting the definition of "assistive
47 device" that is incorporated, attached, or included as
48 a modification in or to such a device issued a
49 certificate of title.
50 (2) "Disability" means the same as defined in

Page 4

1 section 225C.46.
2 (3) "Small business" means a business that either
3 had gross receipts for its preceding tax year of three
4 million dollars or less or employed not more than
5 fourteen full-time employees during its preceding tax
6 year.
7 (4) "Workplace modifications" means physical
8 alterations to the work environment.""
9 3. Page 7, line 24, by striking the word and
10 figure "and 105" and inserting the following: "200,
11 105, and 201".
12 4. Page 7, line 31 by inserting after the word
13 "development," the following: "an assistive device
14 tax credit under the individual and corporate taxes
15 for assisting persons with a disability in the
16 workplace,".


Amendment H-9036 was adopted, placing amendment H-9027 filed
by Jochum of Dubuque from the floor, out of order.

LEAVE OF ABSENCE

Leave of absence was granted as follows:

Thomson of Linn, for the remainder of the day, on request of Carroll of Poweshiek.

Van Fossen of Scott moved the adoption of amendment H-9019, as
amended.

A non-record roll call was requested.

The ayes were 89, nays 11.

Amendment H-9019, as amended, was adopted.

Weigel of Chickasaw asked and received unanimous consent to
withdraw amendment H-8864 filed by him on April 12, 2000.

Weigel of Chickasaw asked and received unanimous consent that
amendments H-8835 and H-8836 be deferred.

Jager of Black Hawk offered the following amendment H-9026
filed by him from the floor and moved its adoption:

H-9026

1 Amend House File 2560 as follows:
2 1. Page 1, line 17, by inserting after the word
3 "Property" the following: "or district".
4 2. Page 2, line 5, by inserting after the word
5 "date." the following: "For purposes of this chapter,
6 "rehabilitation costs" are the costs of work done to
7 the actual structure and do not include costs
8 associated with landscaping."
9 3. Page 2, by inserting before line 6 the
10 following:
11 "Any rehabilitation costs used in the computation
12 of the tax credit under this chapter shall not be
13 deductible for purposes of individual and corporate
14 income taxes."
15 4. Page 2, by inserting after line 25 the
16 following:

17 "c. The approval process shall not exceed sixty
18 days beginning from the date the rehabilitation
19 project is submitted. After the sixty-day limit, the
20 rehabilitation project is deemed to be approved."
21 5. Page 5, by inserting after line 22 the
22 following:
23 "Sec. ___. APPLICABILITY PROVISION. Chapter 404A,
24 enacted in this Act, applies to rehabilitation
25 projects initiated on or after July 1, 2000, for which
26 no expenses have been incurred prior to that date."

Dix of Butler in the chair at 5:00 p.m.

Amendment H-9026 was adopted.

Richardson of Warren offered amendment H-8807 filed by him and
requested division as follows:

H-8807

1 Amend House File 2560 as follows:

H-8807A

2 1. Page 1, by striking lines 17 and 18.

H-8807B

3 2. Page 1, line 34, by inserting after the word
4 "unit." the following: "However, the total amount of
5 credits granted for a project shall not exceed one
6 hundred thousand dollars."

H-8807C

7 3. Page 2, line 25, by inserting after the word
8 "cost." the following: "If the rehabilitation project
9 does not meet the criteria and standards established
10 by the local bodies and the department, the department
11 shall disapprove the application for tax credit."

H-8807A

12 4. Page 2, line 27, by striking the word "may"
13 and inserting the following: "shall".
14 5. Page 2, by striking lines 29 and 30 and
15 inserting the following: "involving eligible
16 property. The main emphasis of the established
17 standards shall be to ensure that a".
18 6. Page 3, line 15, by inserting after the word

19 "date." the following: "The total amount of tax
20 credits that may be approved pursuant to this chapter
21 shall not exceed two million dollars in a fiscal year.
22 If the total of the tax credits for all rehabilitation
23 projects that qualify for tax credits exceeds two
24 million dollars in a fiscal year, the department shall
25 grant the tax credits on a pro rata basis so that the
26 total amount of tax credits approved for the fiscal
27 year does not exceed two million dollars."

H-8807D

28 7. Page 3, by striking line 18 and inserting the
29 following: "certificates to be attached to the
30 person's tax return. Tax credit certificates shall be
31 issued in amounts not greater than twenty-five
32 thousand dollars. Each".
33 8. Page 3, line 25, by inserting after the word
34 "credit" the following: "certificate".

H-8807A

35 9. Page 3, by striking line 27 and inserting the
36 following: "tax credit certificate to any other
37 person. However, not more than twenty-five thousand
38 dollars in tax credit certificates may be transferred
39 to any one person, except if the transferor is a
40 nonprofit organization. a tax credit certificate
41 shall".

Richardson of Warren asked and received unanimous consent to
withdraw amendment H-8807A.

Houser of Pottawattamie asked and received unanimous consent to
withdraw amendment H-8759 filed by Houser, et al., on April 6, 2000.

Houser of Pottawattamie offered amendment H-9035 filed by him
from the floor as follows:

H-9035

1 Amend House File 2560 as follows:
2 1. Page 1, lines 19 and 20, by striking the words
3 "one hundred years prior to certification." and
4 inserting the following: "prior to 1936."

The House stood at ease at 5:10 p.m., until the fall of the gavel.

The House resumed session and consideration of House File 2560

and amendment H-9035 at 5:12 p.m., Dix of Butler in the chair.

Fallon of Polk offered the following amendment H-9037, to
amendment H-9035, filed by him from the floor and moved its
adoption:

H-9037

1 Amend the amendment, H-9035, to House File 2560 as
2 follows:
3 1. Page 1, line 4, by striking the figure "1936"
4 and inserting the following: "1937".

Amendment H-9037 was adopted.

On motion by Houser of Pottawattamie amendment H-9035, as
amended, was adopted.

Weigel of Chickasaw asked and received unanimous consent to
withdraw amendment H-8999 filed by him on April 19, 2000.

Reynolds of Van Buren offered the following amendment H-8946
filed by her and moved its adoption:

H-8946

1 Amend House File 2560 as follows:
2 1. Page 1, line 22, by inserting before the word
3 "The" the following: "1."
4 2. Page 1, line 26, by inserting after the word
5 "rehabilitation" the following: ", except as provided
6 in subsection 2".
7 3. Page 2, by inserting after line 5 the
8 following:
9 "2. In lieu of the requirement in subsection 1, in
10 the case of commercial property, rehabilitation costs
11 must equal twenty-five percent of the assessed value,
12 excluding the land, prior to the rehabilitation, in
13 any city which has a population of fifteen thousand or
14 less as of the last decennial census and is located in
15 a county which is located in one of the following:
16 a. An area that is not part of a metropolitan
17 statistical area as defined by the United States
18 department of commerce.
19 b. a metropolitan statistical area but the county
20 has only one city which has more than fifteen thousand
21 inhabitants.
22 c. A metropolitan statistical area and a

23 substantial number of persons in the county derive
24 their income from agriculture."

A non-record roll call was requested.

The ayes were 40, nays 45.

Amendment H-8946 lost.

Richardson of Warren moved the adoption of amendment H-
8807B.

Sukup of Franklin in the chair at 5:28 p.m.

A non-record roll call was requested.

The ayes were 33, nays 51.

Amendment H-8807B lost.

Ford of Polk offered the following amendment H-8800 filed by
Ford, et al., and moved its adoption:

H-8800

1 Amend House File 2560 as follows:
2 1. Page 2, line 5, by inserting after the word
3 "date." the following: "However, in the case of
4 property classified as residential or as commercial
5 with multifamily residential units, tax credits shall
6 not be allowed unless any rehabilitation done includes
7 meeting the requirements pursuant to section 135.105B
8 for lead hazard remediation."
9 2. Page 5, by inserting after line 22 the
10 following:
11 "Sec. ___. Section 135.105B, Code 1999, is amended
12 to read as follows:
13 135.105B VOLUNTARY GUIDELINES -- HEALTH AND
14 ENVIRONMENTAL MEASURES MODEL LEAD HAZARD REMEDIATION
15 REQUIREMENTS - CONFIRMED CASES OF LEAD POISONING.
16 1. The department may develop voluntary guidelines
17 which may be used to develop and administer local
18 programs shall establish by rule model lead hazard
19 remediation requirements for residential properties to
20 address the health and environmental needs of children
21 who are confirmed as lead poisoned. The purpose of
22 the requirements shall be to prevent ongoing and

23 future exposure to lead-based paint hazards. Local
24 boards of health may adopt and enforce the
25 requirements or may adopt the requirements and request
26 that the requirements be enforced by the state.
27 However, local boards of health shall not be required
28 to adopt and enforce the requirements. The state may
29 not enforce the requirements unless the requirements
30 have been adopted by the local board of health and the
31 local board of health has requested that the state
32 enforce the requirements.
33 2. The voluntary guidelines model lead hazard
34 remediation requirements may be based upon existing
35 local ordinances that address the medical case
36 management of children's health needs and the
37 mitigation of the environmental factors which
38 contributed to the lead poisoning.
39 3. Following development of the voluntary
40 guidelines, cities or counties may elect to utilize
41 the guidelines in developing and administering local
42 programs through city or county health departments on
43 a city, county, or multicounty basis or may request
44 that the state develop and administer the local
45 program. However, cities and counties are not
46 required to develop and administer local programs
47 based upon the guidelines."

Speaker Siegrist in the chair at 6:45 p.m.

Roll call was requested by Ford of Polk and T. Taylor of Linn.

Rule 75 was invoked.

On the question "Shall amendment H-8800 be adopted?" (H.F.
2560)

The ayes were, 40:
Bell Bukta Cataldo Chiodo
Cohoon Connors Dotzler Fallon
Ford Greimann Hansen Holveck
Huser Jochum Kreiman Kuhn
Larkin Mascher May Mertz
Mundie Murphy Myers O'Brien
Osterhaus Parmenter Reynolds Richardson
Scherrman Schrader Shoultz Stevens
Taylor, D. Taylor, T. Thomas Warnstadt
Weigel Whitead Wise Witt

 


The nays were, 54:
Alons Arnold Barry Baudler
Blodgett Boal Boddicker Boggess
Bradley Brauns Brunkhorst Carroll
Cormack Davis Dix Dolecheck
Drake Eddie Garman Gipp
Greiner Grundberg Hahn Heaton
Hoffman Holmes Horbach Houser
Huseman Jacobs Jager Jenkins
Johnson Kettering Klemme Larson
Lord Martin Metcalf Millage
Nelson-Forbes Raecker Rants Rayhons
Shey Sukup Sunderbruch Teig
Tyrrell Van Engelenhoven Van Fossen Weidman
Welter Mr. Speaker
Siegrist

 


Absent or not voting, 6:
Doderer Drees Falck Foege
Frevert Thomson

 


Amendment H-8800 lost.

Jager of Black Hawk offered the following amendment H-8909
filed by him and moved its adoption:

H-8909

1 Amend House File 2560 as follows:
2 1. Page 2, by striking lines 10 through 19 and
3 inserting the following: "receive approval from the
4 state historical preservation office of the department
5 of cultural affairs."
6 2. Page 2, lines 20 and 21, by striking the words
7 "department and the appropriate governing bodies" and
8 inserting the following: "state historical
9 preservation office of the department of cultural
10 affairs".
11 3. Page 2, line 22, by striking the word
12 "department" and inserting the following: "state
13 historical preservation office".
14 4. Page 2, line 23, by striking the word
15 "department" and inserting the following: "state
16 historical preservation office".
17 5. Page 2, by striking lines 26 through 29 and
18 inserting the following:
19 "2. The state historical preservation office shall
20 establish selection criteria and standards for
21 rehabilitation projects involving eligible property."
22 6. Page 2, line 30, by striking the word "the"
23 and inserting the following: "The".

24 7. Page 3, by striking lines 4 through 7 and
25 inserting the following: "appropriation under
26 sections 303.27 through 303.32.
27 The selection standards shall provide that a person
28 who qualifies for the rehabilitation tax credit under
29 section 47 of the Internal Revenue Code shall
30 automatically qualify for the state property
31 rehabilitation tax credit under this chapter."
32 8. Page 3, line 12, by striking the words
33 "department of economic development" and inserting the
34 following: "state historical preservation office of
35 the department of cultural affairs".
36 9. Page 3, line 17, by striking the word
37 "department" and inserting the following: "state
38 historical preservation office".
39 10. Page 4, line 4, by striking the words
40 "economic development" and inserting the following:
41 "cultural affairs".

Amendment H-8909 was adopted.

Richardson of Warren moved the adoption of amendment H-
8807C.

Amendment H-8807C lost.

Richardson of Warren offered the following amendment H-9040
filed by him from the floor and moved its adoption:

H-9040

1 Amend House File 2560 as follows:
2 1. Page 3, line 15, by inserting after the word
3 "date." the following: "The total amount of tax
4 credits that may be approved pursuant to this chapter
5 shall not exceed two million dollars in a fiscal year.
6 If the total of the tax credits for all rehabilitation
7 projects that qualify for tax credits exceeds two
8 million dollars in a fiscal year, the department shall
9 grant the tax credits on a pro rata basis so that the
10 total amount of tax credits approved for the fiscal
11 year does not exceed two million dollars."

Amendment H-9040 lost.

Richardson of Warren asked and received unanimous consent to
withdraw amendment H-8807D.

Weigel of Chickasaw offered the following amendment H-8865 filed
by him and moved its adoption:

H-8865

1 Amend House File 2560 as follows:
2 1. Page 3, line 21, by inserting after the word
3 "credit," the following: "and".
4 2. By striking page 3, line 22, through page 4,
5 line 1, and inserting the following: "by the
6 department of revenue and finance."
7 3. Page 5, by striking lines 1 through 5.
8 4. Page 5, by striking lines 16 through 20.

Amendment H-8865 lost.

Witt of Black Hawk asked and received unanimous consent to
withdraw amendment H-9032 filed by him from the floor.

Warnstadt of Woodbury offered amendment H-9039 filed by him
from the floor as follows:

H-9039

1 Amend House File 2560 as follows:
2 1. Page 1, by inserting before line 1 the
3 following:
4 "Section 1. Section 35.1, subsection 2, paragraph
5 b, subparagraphs (1) and (2), Code Supplement 1999,
6 are amended to read as follows:
7 (1) Former members Members of the reserve forces
8 of the United States who have served at least twenty
9 years in the reserve forces after January 28, 1973,
10 and who continue to serve or were discharged under
11 honorable conditions. However, a member of the
12 reserve forces of the United States who completed a
13 minimum aggregate of ninety days of active federal
14 service, other than training, and was discharged under
15 honorable conditions, or was retired under Title X of
16 the United States Code shall be included as a veteran.
17 (2) Former members Members of the Iowa national
18 guard who have served at least twenty years in the
19 Iowa national guard after January 28, 1973, and who
20 continue to serve or were discharged under honorable
21 conditions. However, a member of the Iowa national
22 guard who was activated for federal duty, other than
23 training, for a minimum aggregate of ninety days, and
24 was discharged under honorable conditions or was

25 retired under Title X of the United States Code shall
26 be included as a veteran."
27 2. Page 5, by inserting after line 22 the
28 following:
29 Sec. 300. STATE FUNDING. The military service tax
30 exemptions and credits provided pursuant to section 1
31 of this Act shall be funded pursuant to chapter 426A
32 to the extent of six dollars and ninety-two cents per
33 thousand dollars of the assessed value of the exempt
34 property.
35 Sec. 301. Section 300 of this Act applies to
36 military service property tax exemption claims allowed
37 on or after January 1, 2001."
38 3. Title page, line 3, by inserting after the
39 word "barns" the following: "and providing military
40 service tax exemptions and credits for members of the
41 United States reserves and the Iowa national guard,".

Barry of Harrison rose on a point of order that amendment H-9039
was not germane.

The Speaker ruled the point well taken and amendment H-9039
not germane.

Schrader of Marion asked and received unanimous consent to
withdraw amendment H-9025, previously deferred, filed by him from
the floor.

Weigel of Chickasaw asked and received unanimous consent to
withdraw amendments H-8835 and H-8836, both previously deferred,
filed by him on April 11, 2000.

Jager of Black Hawk moved that the bill be read a last time now
and placed upon its passage which motion prevailed and the bill was
read a last time.

On the question "Shall the bill pass?" (H.F. 2560)

The ayes were, 90:
Alons Arnold Barry Baudler
Bell Blodgett Boal Boddicker
Boggess Bradley Brauns Brunkhorst
Bukta Carroll Cataldo Chiodo
Cohoon Connors Cormack Davis
Dix Dolecheck Dotzler Drake
Eddie Fallon Garman Gipp
Greiner Grundberg Hahn Hansen
Heaton Hoffman Holmes Holveck
Horbach Houser Huseman Huser
Jacobs Jager Jenkins Jochum
Johnson Kettering Klemme Kreiman
Kuhn Larkin Larson Lord
Martin Mascher May Mertz
Metcalf Millage Mundie Murphy
Myers Nelson-Forbes O'Brien Osterhaus
Raecker Rants Rayhons Reynolds
Richardson Scherrman Schrader Shey
Shoultz Stevens Sukup Sunderbruch
Taylor, D. Taylor, T. Teig Thomas
Tyrrell Van Engelenhoven Van Fossen Warnstadt
Weidman Weigel Welter Whitead
Witt Mr. Speaker
Siegrist

 


The nays were, 4:
Ford Greimann Parmenter Wise

 


Absent or not voting, 6:
Doderer Drees Falck Foege
Frevert Thomson

 


The bill having received a constitutional majority was declared to
have passed the House and the title, as amended, was agreed to.

IMMEDIATE MESSAGES

Rants of Woodbury asked and received unanimous consent that
the following bills be immediately messaged to the Senate: House
Files 2560 and 2579.

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 20, 2000, amended and passed the following bill in which the concurrence of the
House is asked:

House File 2540, a bill for an act relating to economic development programs and
related tax credits and including effective and retroactive applicability date provisions.
Also: That the Senate has on April 20, 2000, passed the following bill in which the
concurrence of the Senate was asked:


House File 2555, a bill for an act relating to and making appropriations from the
tobacco settlement fund, providing an effective date, and providing for retroactive
applicability.

Also: That the Senate has on April 20, 2000, passed the following bill in which the
concurrence of the Senate was asked:

House File 2563, a bill for an act exempting from the sales and use taxes the gross
receipts from all sales of goods and services used in fulfillment of a construction
contract for a nonprofit hospital, providing for refunds, and including an effective and
retroactive applicability date provision.

Also: That the Senate has on April 20, 2000, amended the House amendment,
concurred in the House amendment as amended, and passed the following bill in which
the concurrence of the House is asked:

Senate File 466, a bill for an act relating to the remediation of agrichemical sites,
providing for fees, and providing for the repeal of a section relating to cleanup
prioritization.

Also: That the Senate has on April 20, 2000, passed the following bill in which the
concurrence of the House is asked:

Senate File 2459, a bill for an act relating to the deadline for municipalities to file
annual financial reports for urban renewal areas.

MICHAEL E. MARSHALL, Secretary

SENATE MESSAGE CONSIDERED

Senate File 2459, by committee on ways and means, a bill for an
act relating to the deadline for municipalities to file annual financial
reports for urban renewal areas.

Read first time and passed on file.
MOTION TO RECONSIDER WITHDRAWN
(Senate File 2241)

Millage of Scott asked and received unanimous consent to
withdraw the motion to reconsider Senate File 2241, a bill for an act
relating to the consolidation of certain criminal offenses concerning
computer access, damage, or theft, video rental theft, election bribery,
and voting duress, filed by him on April 17, 2000.
MOTIONS TO RECONSIDER
(Senate amendment H-9015 to House File 2205)


I move to reconsider the vote by which the House concurred in the
Senate amendment H-9015 to House File 2205.

MILLAGE of Scott

I move to reconsider the vote by which the House concurred in the
Senate amendment H-9015 to House File 2205.

VAN FOSSEN of Scott

(House File 2205)

I move to reconsider the vote by which House File 2205 passed the
House on April 20, 2000.

MILLAGE of Scott

I move to reconsider the vote by which House File 2205 passed the
House on April 20, 2000.

VAN FOSSEN of Scott

EXPLANATION OF VOTE

I was necessarily absent from the House chamber on April 20,
2000. Had I been present, I would have voted "aye" on House File
2557.

HEATON of Henry

BILLS SIGNED BY THE GOVERNOR

A communication was received from the Governor announcing that
on April 20, 2000, he approved and transmitted to the Secretary of
State the following bills:

House File 2135, an act relating to support obligations and providing an effective
date.

House File 2153, an act relating to drug policy coordination, including establish-
ment of a drug policy coordinator, the governor's office of drug control policy, and a
drug policy advisory council.


House File 2424, an act creating an Iowa Lewis and Clark bicentennial commission,
an Iowa Lewis and Clark bicentennial fund, and providing an effective date.

House File 2485, an act relating to the allocation of funds within the soil and water
enhancement account of the resource enhancement and protection fund.

House File 2521, an act relating to mandatory mediation of certain farm disputes
prior to initiation of related litigation.

Senate File 2126, an act relating to third-party payment of health care coverage
costs for prescription contraceptive drugs, devices, and services.

PRESENTATION OF VISITORS

The Speaker announced that the following visitors were present in
the House chamber:

Twenty-five fifth grade students from Lakeview Elementary
School, Centerville, accompanied by Mrs. Warren. By Kreiman of
Davis.

Seventy students from Boone Middle School, Boone, accompanied
by Mr. Hartwig and Mr. McDonald. By O'Brien of Boone.

COMMUNICATION RECEIVED

The following communication was received and filed in the office of
the Chief Clerk:

IOWA CIVIL RIGHTS COMMISSION

The Fiscal Year 1999 Annual Report of the Civil Rights Commission, pursuant to
Chapter 216.5(7), Code of Iowa.

CERTIFICATES OF RECOGNITION

MR. SPEAKER: The Chief Clerk of the House respectfully reports
that certificates of recognition have been issued as follows.

ELIZABETH A. ISAACSON
Chief Clerk of the House
2000\873 Phyllis and Henry Hansen, Sioux City - For celebrating their 50th
wedding anniversary.


2000\874 Marvin Hollingshead, Des Moines - For his outstanding skill in
woodcraft, and his devotion in the sharing of his talent with the Iowa
House of Representatives.

2000\875 Abby Louise Garner, Fort Madison - For being named an All-State
Speaker in two areas, Acting and Reviewing, by the Iowa High School
Speech Association.

2000\876 Kimber Lynn Metcalf, Fort Madison - For being named an All-State
Speaker in two areas, Storytelling and Expository Address, by the
Iowa High School Speech Association.

2000\877 Teneil Marie Casady, Fort Madison - For being named an All-State
Speaker in the area of Expository Address, by the Iowa High School
Speech Association.

2000\878 Nathaniel Clayton Green, Fort Madison - For being named an All-
State Speaker in the area of Storytelling, by the Iowa High School
Speech Association.

SUBCOMMITTEE ASSIGNMENT

House File 2582

Appropriations: Millage, Chair; Cormack and Murphy.

COMMITTEE RECOMMENDATION

MR. SPEAKER: The Chief Clerk of the House respectfully reports
that the following committee recommendation has been received and
is on file in the office of the Chief Clerk.

ELIZABETH A. ISAACSON
Chief Clerk of the House

COMMITTEE ON TRANSPORTATION

Senate File 2455, a bill for an act relating to eligibility for United States armed
forces retired special motor vehicle license plates.

Fiscal Note is not required.

Recommended Do Pass April 20, 2000.

RESOLUTION FILED


HR 124, by Fallon, a resolution urging the University of Iowa to
immediately withdraw from the fair labor association.

Laid over under Rule 25.

AMENDMENTS FILED

H-9013 S.F. 2453 Warnstadt of Woodbury
Gipp of Winneshiek
H-9014 H.F. 2530 Murphy of Dubuque
H-9016 H.F. 2539 Boal of Polk
H-9017 H.F. 2559 Kuhn of Floyd
Richardson of Warren
H-9018 S.F. 2332 Greimann of Story
H-9020 S.F. 2453 Arnold of Lucas
H-9021 S.F. 2438 Eddie of Buena Vista
H-9022 S.F. 2453 Weigel of Chickasaw
H-9024 S.F. 2453 Reynolds of Van Buren
H-9028 H.F. 2559 Teig of Hamilton
H-9029 S.F. 2010 Johnson of Osceola
Mundie of Webster Klemme of Plymouth
Teig of Hamilton Drees of Carroll
Huseman of Cherokee May of Worth
Rayhons of Hancock Greiner of Washington
Mertz of Kossuth Kuhn of Floyd
Thomas of Clayton Eddie of Buena Vista
H-9030 S.F. 2332 Reynolds of Van Buren
H-9034 S.F. 2453 Mertz of Kossuth
H-9038 H.F. 2572 Drake of Pottawattamie
Boal of Polk Shoultz of Black Hawk
Van Fossen of Scott Jenkins of Black Hawk
H-9041 S.F. 466 Senate Amendment
H-9042 H.F. 2540 Senate Amendment

On motion by Rants of Woodbury the House adjourned at 7:42
p.m., until 11:00 a.m., Monday, April 24, 2000.


Previous Day: Wednesday, April 19Next Day: Monday, April 24
Senate Journal: Index House Journal: Index
Legislation: Index Bill History: Index

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