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House Journal: Tuesday, June 19, 2001

Whereas, the General Assembly did not adopt legislation that sets new

congressional and legislative district boundaries, and

Whereas, the General Assembly may need to adopt prudent and necessary
legislation to address any other issues which may be identified by the Governor and
legislative leaders before the convening of the extraordinary session, and

Whereas, the General Assembly must convene in Extraordinary Session in
accordance with Article IV, Section XI, of the Constitution of the State of Iowa in order
to consider the Legislative Service Bureau's second plan for the redrawing of Iowa's
congressional and legislative districts.

Now, Therefore, I, Thomas J. Vilsack, Governor of the State of Iowa, in accordance
with Article IV, Section XI, of the Constitution of the State of Iowa, do hereby proclaim
that the Seventy-ninth General Assembly shall convene in extraordinary session in
Des Moines, Iowa at 10:00 a.m. on the nineteenth day of June, 2001, and to that end I
do call up and direct the members of the House of Representatives to convene at the
New State Historical Building and members of the Senate to convene in the Senate
Chamber at the State Capitol at 10:00 a.m. on June 19, 2001 for the purpose which the
assembly is convened, namely the matter of redistricting and other issues deemed
appropriate to take legislative action in keeping therewith.

(Seal) IN TESTIMONY WHEREOF, I have hereunto sub-
scribed my name and caused the great seal of the
State of Iowa to be affixed. Done at Des Moines this
Twenty-first day of May in the year of our Lord two
thousand one.

THOMAS J. VILSACK
Governor

Attest:
CHESTER J. CULVER
Secretary of State

ORGANIZATION OF THE HOUSE

Rants of Woodbury moved that all organization matters not
specifically provided for in Joint Rule 3 be the same for this
Extraordinary Session as for the 2001 Regular Session of the
Seventy-ninth General Assembly.

The motion prevailed.

Rants of Woodbury moved that the Chief Clerk of the House be
directed to send a written message to the Governor and to the Senate
informing them that the House was duly organized and ready to
transact business and receive any messages that they may transmit.

The motion prevailed.

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,
pursuant to the May 21, 2001 proclamation of the Governor, duly organized for the
Extraordinary Session of the Seventy-ninth General Assembly and is ready to receive
communications from the House.

MICHAEL E. MARSHALL, Secretary

INTERIM COMMUNICATION RECEIVED

The following communication was received during the interim and
is on file in the office of the Chief Clerk:

May 18, 2001

The Honorable Thomas J. Vilsack
Office of the Governor
State Capitol
Des Moines, IA 50319

Dear Governor Vilsack:

I respectfully submit my resignation from the Iowa House of Representatives,
District 48, effective today May 18, 2001.

I intend on running for the recently vacated Senate District 43 seat.

Respectfully,
Hubert Houser
State Representative

SUPPLEMENTAL REPORT OF THE
COMMITTEE ON CREDENTIALS

MR. SPEAKER: We, your committee on credentials, respectfully
report that we find the following named person duly elected to and
entitled to a seat in the House of Representatives of the Seventy-
ninth General Assembly as shown by duplicate copies of the
certificate of election on file in the office of the Secretary of State:


CERTIFICATION

STATE OF IOWA
Office of
THE SECRETARY OF STATE

To the Honorable, Clerk of the House of Representatives:

I, CHESTER J. CULVER, Secretary of the State of Iowa, custodian of the files and
records pertaining to the elections in the state, do hereby certify that the State
Canvassing Board has declared that a special election held on June 12, 2001, Gerald D.
Jones was elected to fill a vacancy in the office of the House of Representatives of the
Eighty-fifth District, for the balance of the term which began on January 2, 2001.

(Seal) IN TESTIMONY WHEREOF, I have hereunto set my hand and
affixed the official seal of the Secretary of State at the
Statehouse, in Des Moines, this eighteenth day of June, 2001.

CHESTER J. CULVER, Secretary of State

I hereby acknowledge receipt of the original copy of this document on the nineteenth
day of June, 2001.

Metcalf of Polk moved that the report of the committee on
credentials be adopted.

The motion prevailed and the report was adopted.

The following oath of office was administered to Representative-
elect Jones on June 19, 2001 by the Chief Clerk.

OATH OF OFFICE

"I do solemnly swear or affirm that I will support the Constitution of the United
State and the Constitution of the State of Iowa and that I will faithfully and
impartially discharge the duties of the office of Representative in the General
Assembly of the State of Iowa according to the best of my ability, so help me God."

GERALD D. JONES

The Speaker appointed Barry of Harrison and Kuhn of Floyd to
escort Representative Jones to his seat.


COMMUNICATION FROM LEGISLATIVE SERVICE BUREAU

The following communication was received from the Legislative
Service Bureau on June 1, 2001:

To: Chief Clerk of the Iowa House of Representatives, Secretary of the Iowa
Senate, and Members of the Iowa General Assembly.

From: Diane Bolender, Director and Ed Cook, Legal Counsel, Iowa Legislative
Service Bureau.

Date: June 1, 2001

Pursuant to Chapter 42 of the 2001 Code of Iowa, the Legislative Service Bureau
delivers to the Iowa General Assembly identical bills embodying a (second) plan of
legislative and Congressional districting prepared in accordance with the U.S.
Constitution, the Iowa Constitution, and Iowa Code section 42.4. In addition to the
identical bills, this memorandum and the accompanying attachments include maps
illustrating the plan, a summary of the standards prescribed by law for redistricting, a
listing of the population for each district created, a statistical analysis of the plan, and
listings of the political subdivisions undivided under the plan. This memorandum, the
identical bills, as well as maps illustrating the plan, are also available through the
internet on the Iowa Redistricting in 2001 link on the Iowa General Assembly's website
(www.legis.iowa.gov).

HOUSE STUDY BILL COMMITTEE ASSIGNMENT

H.S.B. 263 State Government

Providing for congressional and legislative districts and providing an
effective date.

RULES SUSPENDED

Rants of Woodbury asked and received unanimous consent to
suspend the rules for an immediate meeting of the committee on state
government.

The House stood at ease at 10:19 a.m., until the fall of the gavel.

The House resumed session at 10:53 a.m., Speaker Siegrist in the
chair.

LEAVE OF ABSENCE

Leave of absence was granted as follows:

Bradley of Clinton and Hoversten of Woodbury on request of Brunkhorst of Bremer;
Hatch of Polk, until his arrival, and Warnstadt of Woodbury on request of Falck of
Fayette.

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.

MARGARET A. THOMSON
Chief Clerk of the House

COMMITTEE ON STATE GOVERNMENT

Committee Bill (Formerly House Study Bill 263), providing for congressional and
legislative districts and providing an effective date.

Fiscal Note is not required.

Recommended Do Pass June 19, 2001.

INTRODUCTION OF BILL

House File 758, by committee on state government, a bill for an
act providing for congressional and legislative districts and providing
an effective date.

Read first time and placed on the calendar.

RULES SUSPENDED

Rants of Woodbury asked and received unanimous consent to
suspend the rules for the immediate consideration of House File 758.

CONSIDERATION OF BILL
Regular Calendar

House File 758, a bill for an act providing for congressional and
legislative districts and providing an effective date, was taken up for
consideration.


Metcalf 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?" (H.F. 758)

The ayes were, 78:
Alons Atteberry Barry Baudler
Bell Boal Boddicker Boggess
Broers Bukta Carroll Chiodo
Cohoon Connors Cormack De Boef
Dix Dolecheck Dotzler Drake
Eddie Eichhorn Elgin Falck
Foege Ford Frevert Garman
Gipp Hahn Hansen Heaton
Hoffman Horbach Huseman Huser
Jacobs Jochum Johnson Jones
Klemme Kreiman Kuhn Larkin
Larson Lensing Manternach Mascher
May Metcalf Millage Murphy
Myers Osterhaus Petersen Quirk
Rants Rayhons Reynolds Richardson
Roberts Scherrman Schrader Seng
Shey Shoultz Sievers Smith
Stevens Sukup Taylor, T. Teig
Tymeson Tyrrell Van Fossen Weidman
Winckler Mr. Speaker
Siegrist

 


The nays were, 18:
Arnold Brauns Brunkhorst Fallon
Finch Greimann Grundberg Jenkins
Kettering Mertz O'Brien Raecker
Rekow Taylor, D. Tremmel Van Engelenhoven
Wise Witt

 


Absent or not voting, 4:
Bradley Hatch Hoversten Warnstadt

 


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 758 be immediately messaged to the Senate.

Rants of Woodbury asked and received unanimous consent that
the committee on ways and means meet immediately upon recess.

On motion by Rants of Woodbury, the House was recessed at 11:19
a.m., until 1:00 p.m.

AFTERNOON SESSION

The House reconvened at 1:21 p.m., Speaker Siegrist in the chair.

INTRODUCTION OF BILL

House File 757, by Van Fossen, Rants, Siegrist, Alons, Arnold,
Barry, Baudler, Boal, Boddicker, Boggess, Bradley, Brauns, Broers,
Carroll, Connors, Cormack, De Boef, Dix, Dolecheck, Drake, Eddie,
Eichhorn, Finch, Garman, Gipp, Hahn, Hansen, Heaton, Hoffman,
Horbach, Hoversten, Huseman, Jacobs, Jenkins, Jochum, Johnson,
Jones, Kettering, Klemme, Larson, Manternach, Mascher, Mertz,
Metcalf, Millage O'Brien, Petersen, Raecker, Rayhons, Rekow,
Reynolds, Roberts, Schrader, Shey, Sievers, Sukup, Teig, Tymeson,
Tyrrell, Van Engelenhoven, Warnstadt, and Weidman, a bill for an
act relating to the taxation under the individual income tax of certain
federal tax rebates and including a retroactive applicability date
provision.

Read first time and referred to committee on ways and means.

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.

MARGARET A. THOMSON
Chief Clerk of the House

COMMITTEE ON WAYS AND MEANS

House File 757, a bill for an act relating to the taxation under the individual
income tax of certain federal tax rebates and including a retroactive applicability date
provision.


Fiscal Note is required.

Recommended Do Pass June 19, 2001.

Rants of Woodbury asked and received unanimous consent for the
immediate consideration of House File 757.

CONSIDERATION OF BILL
Ways and Means Calendar

House File 757, a bill for an act relating to the taxation under the
individual income tax of certain federal tax rebates and including a
retroactive applicability date provision, was taken up for consid-
eration.

The House stood at ease at 1:23 p.m., until the fall of the gavel.

The House resumed session and consideration of House File 757 at
1:34 p.m., Speaker Siegrist in the chair.

Shoultz of Black Hawk offered amendment H-2049 filed by
Shoultz, Hatch of Polk, Fallon of Polk, Frevert of Palo Alto, Foege of
Linn, Dotzler of Black Hawk, Osterhaus of Jackson, Murphy of
Dubuque, Richardson of Warren, Lensing of Johnson, Greimann of
Story, Mascher of Johnson, Kuhn of Floyd, Witt of Black Hawk and
Jochum of Dubuque from the floor as follows:

H-2049

1 Amend House File 757 as follows:
2 1. Page 1, by inserting before line 1 the
3 following:
4 "DIVISION I
5 FEDERAL REBATES"
6 2. Page 1, line 13, by inserting after the word
7 "This" the following: "division of this".
8 3. Page 1, by inserting after line 15 the
9 following:
10 "DIVISION II
11 FEDERAL DEDUCTIBILITY
12 Sec.___. Section 422.4, subsection 1, paragraphs b
13 and c, Code 2001, are amended to read as follows:
14 b. "Cumulative inflation factor" means the product
15 of the annual inflation factor for the 1988 2002
16 calendar year and all annual inflation factors for
17 subsequent calendar years as determined pursuant to

18 this subsection. The cumulative inflation factor
19 applies to all tax years beginning on or after January
20 1 of the calendar year for which the latest annual
21 inflation factor has been determined.
22 c. The annual inflation factor for the 1988 2002
23 calendar year is one hundred percent.
24 Sec. ___. Section 422.5, subsection 1, paragraphs
25 a through i, Code 2001, are amended by striking the
26 paragraphs and inserting in lieu thereof the
27 following:
28 a. On all taxable income from zero through eight
29 thousand dollars, one and eighty-five hundredths
30 percent.
31 b. On all taxable income exceeding eight thousand
32 dollars but not exceeding forty thousand dollars, five
33 and three-tenths percent.
34 c. On all taxable income exceeding forty thousand
35 dollars but not exceeding sixty thousand dollars, six
36 and thirty-five hundredths percent.
37 d. On all taxable income exceeding sixty thousand
38 dollars, six and six-tenths percent.
39 Sec. ___. Section 422.5, subsection 1, paragraph
40 j, Code 2001, is amended to read as follows:
41 j. e. (1) The tax imposed upon the taxable
42 income of a nonresident shall be computed by reducing
43 the amount determined pursuant to paragraphs "a"
44 through "i" "d" by the amounts of nonrefundable
45 credits under this division and by multiplying this
46 resulting amount by a fraction of which the
47 nonresident's net income allocated to Iowa, as
48 determined in section 422.8, subsection 2, paragraph
49 "a", is the numerator and the nonresident's total net
50 income computed under section 422.7 is the

Page 2

1 denominator. This provision also applies to
2 individuals who are residents of Iowa for less than
3 the entire tax year.
4 (2) The tax imposed upon the taxable income of a
5 resident shareholder in an S corporation which has in
6 effect for the tax year an election under subchapter S
7 of the Internal Revenue Code and carries on business
8 within and without the state may be computed by
9 reducing the amount determined pursuant to paragraphs
10 "a" through "i" "d" by the amounts of nonrefundable
11 credits under this division and by multiplying this
12 resulting amount by a fraction of which the resident's
13 net income allocated to Iowa, as determined in section
14 422.8, subsection 2, paragraph "b", is the numerator
15 and the resident's total net income computed under
16 section 422.7 is the denominator. If a resident

17 shareholder has elected to take advantage of this
18 subparagraph, and for the next tax year elects not to
19 take advantage of this subparagraph, the resident
20 shareholder shall not reelect to take advantage of
21 this subparagraph for the three tax years immediately
22 following the first tax year for which the shareholder
23 elected not to take advantage of this subparagraph,
24 unless the director consents to the reelection. This
25 subparagraph also applies to individuals who are
26 residents of Iowa for less than the entire tax year.
27 This subparagraph shall not affect the amount of
28 the taxpayer's checkoff to the Iowa election campaign
29 fund under section 56.18, the checkoff for the fish
30 and game fund in section 456A.16, the credits from tax
31 provided in sections 422.10, 422.11A, and 422.12 and
32 the allocation of these credits between spouses if the
33 taxpayers filed separate returns or separately on
34 combined returns.
35 Sec. ___. Section 422.5, subsection 1, paragraph
36 k, Code 2001, is amended by relettering the paragraph
37 as paragraph f.
38 Sec. ___. Section 422.5, subsection 1, paragraph
39 k, unnumbered paragraph 1, Code 2001, is amended to
40 read as follows:
41 There is imposed upon every resident and
42 nonresident of this state, including estates and
43 trusts, the greater of the tax determined in
44 paragraphs "a" through "j" "e" or the state
45 alternative minimum tax equal to seventy-five percent
46 of the maximum state individual income tax rate for
47 the tax year, rounded to the nearest one-tenth of one
48 percent, of the state alternative minimum taxable
49 income of the taxpayer as computed under this
50 paragraph.

Page 3

1 Sec. ___. Section 422.5, subsection 5, Code 2001,
2 is amended to read as follows:
3 5. Upon determination of the latest cumulative
4 inflation factor, the director shall multiply each
5 dollar amount set forth in subsection 1, paragraphs
6 "a" through "i" "d" of this section by this cumulative
7 inflation factor, shall round off the resulting
8 product to the nearest one dollar, and shall
9 incorporate the result into the income tax forms and
10 instructions for each tax year.
11 Sec. ___. Section 422.8, subsection 2, paragraph
12 a, Code 2001, is amended to read as follows:
13 a. Nonresident's net income allocated to Iowa is
14 the net income, or portion of net income, which is
15 derived from a business, trade, profession, or

16 occupation carried on within this state or income from
17 any property, trust, estate, or other source within
18 Iowa. However, income derived from a business, trade,
19 profession, or occupation carried on within this state
20 and income from any property, trust, estate, or other
21 source within Iowa shall not include distributions
22 from pensions, including defined benefit or defined
23 contribution plans, annuities, individual retirement
24 accounts, and deferred compensation plans or any
25 earnings attributable thereto so long as the
26 distribution is directly related to an individual's
27 documented retirement and received while the
28 individual is a nonresident of this state. If a
29 business, trade, profession, or occupation is carried
30 on partly within and partly without the state, only
31 the portion of the net income which is fairly and
32 equitably attributable to that part of the business,
33 trade, profession, or occupation carried on within the
34 state is allocated to Iowa for purposes of section
35 422.5, subsection 1, paragraph "j" "e", and section
36 422.13 and income from any property, trust, estate, or
37 other source partly within and partly without the
38 state is allocated to Iowa in the same manner, except
39 that annuities, interest on bank deposits and
40 interest-bearing obligations, and dividends are
41 allocated to Iowa only to the extent to which they are
42 derived from a business, trade, profession, or
43 occupation carried on within the state.
44 Sec. ___. Section 422.8, subsection 4, Code 2001,
45 is amended to read as follows:
46 4. The amount of minimum tax paid to another state
47 or foreign country by a resident taxpayer of this
48 state from preference items derived from sources
49 outside of Iowa shall be allowed as a credit against
50 the tax computed under this division except that the

Page 4

1 credit shall not exceed what the amount of state
2 alternative minimum tax would have been on the same
3 preference items which were taxed by the other state
4 or foreign country. The limitation on this credit
5 shall be computed according to the following formula:
6 The total of preference items earned outside of Iowa
7 and taxed by another state or foreign country shall be
8 divided by the total of preference items of the
9 resident taxpayer of Iowa. In computing this
10 quotient, those items excludable under section 422.5,
11 subsection 1, paragraph "k" "f", subparagraph (1)
12 shall not be used in computing the preference items.
13 This quotient multiplied times the net state
14 alternative minimum tax as determined in section

15 422.5, subsection 1, paragraph "k" "f" on the total of
16 preference items as if entirely earned in Iowa shall
17 be the maximum tax credit against the Iowa alternative
18 minimum tax. However, the maximum tax credit will not
19 be allowed to the extent that the minimum tax imposed
20 by the other state or foreign country is less than the
21 maximum tax credit computed above.
22 Sec. ___. Section 422.9, subsection 1, Code 2001,
23 as amended by 2001 Iowa Acts, Senate File 350, section
24 22, is amended to read as follows:
25 1. An optional standard deduction, after deduction
26 of federal income tax, equal to one thousand two
27 hundred thirty dollars for a married person who files
28 separately or a single person or equal to three
29 thousand thirty dollars for a husband and wife who
30 file a joint return, a surviving spouse, or an
31 unmarried head of household. The optional standard
32 deduction shall not exceed the amount remaining after
33 deduction of the federal income tax. The amount of
34 federal income taxes deducted shall not exceed the
35 amount as computed under subsection 2, paragraph "b".
36 Sec. ___. Section 422.9, subsection 2, paragraph
37 b, Code 2001, as amended by 2001 Iowa Acts, Senate
38 File 350, section 22, is amended by striking the
39 paragraph and inserting in lieu thereof the following:
40 b. Add the amount of federal income taxes paid or
41 accrued, as the case may be, to the extent the federal
42 tax payment is for a tax year beginning prior to
43 January 1, 2002. Subtract the amount of federal
44 income tax refunds received in a tax year to the
45 extent that the federal income tax was deducted on an
46 Iowa individual income tax return for a tax year
47 beginning prior to January 1, 2002.
48 Sec. ___. Section 422.11B, Code 2001, is amended
49 to read as follows:
50 422.11B MINIMUM TAX CREDIT.

Page 5

1 1. There is allowed as a credit against the tax
2 determined in section 422.5, subsection 1, paragraphs
3 "a" through "j" "e" for a tax year an amount equal to
4 the minimum tax credit for that tax year.
5 The minimum tax credit for a tax year is the
6 excess, if any, of the adjusted net minimum tax
7 imposed for all prior tax years beginning on or after
8 January 1, 1987, over the amount allowable as a credit
9 under this section for those prior tax years.
10 2. The allowable credit under subsection 1 for a
11 tax year shall not exceed the excess, if any, of the
12 tax determined in section 422.5, subsection 1,
13 paragraphs "a" through "j" "e" over the state

14 alternative minimum tax as determined in section
15 422.5, subsection 1, paragraph "k" "f".
16 The net minimum tax for a tax year is the excess,
17 if any, of the tax determined in section 422.5,
18 subsection 1, paragraph "k" "f" for the tax year over
19 the tax determined in section 422.5, subsection 1,
20 paragraphs "a" through "j" "e" for the tax year.
21 The adjusted net minimum tax for a tax year is the
22 net minimum tax for the tax year reduced by the amount
23 which would be the net minimum tax if the only item of
24 tax preference taken into account was that described
25 in paragraph (6) of section 57(a) of the Internal
26 Revenue Code.
27 Sec. ___. Section 422.13, subsection 1, paragraph
28 c, Code 2001, as amended by 2001 Iowa Acts, Senate
29 File 140, section 7, is amended to read as follows:
30 c. However, if that part of the net income of a
31 nonresident which is allocated to Iowa pursuant to
32 section 422.8, subsection 2, is less than one thousand
33 dollars the nonresident is not required to make and
34 sign a return except when the nonresident is subject
35 to the state alternative minimum tax imposed pursuant
36 to section 422.5, subsection 1, paragraph "k" "f".
37 Sec. ___. Section 422.13, subsection 1A, Code
38 2001, as amended by 2001, Iowa Acts, Senate File 140,
39 section 7, is amended to read as follows:
40 1A. Notwithstanding any other provision in this
41 section, a resident of this state is not required to
42 make and file a return if the person's net income is
43 equal to or less than the appropriate dollar amount
44 listed in section 422.5, subsection 2, upon which tax
45 is not imposed. A nonresident of this state is not
46 required to make and file a return if the person's
47 total net income in section 422.5, subsection 1,
48 paragraph "j" "e", is equal to or less than the
49 appropriate dollar amount provided in section 422.5,
50 subsection 2, upon which tax is not imposed. For

Page 6

1 purposes of this subsection, the amount of a lump sum
2 distribution subject to separate federal tax shall be
3 included in net income for purposes of determining if
4 a resident is required to file a return and the
5 portion of the lump sum distribution that is allocable
6 to Iowa is included in total net income for purposes
7 of determining if a nonresident is required to make
8 and file a return.
9 Sec. ___. Section 422.21, unnumbered paragraph 5,
10 Code 2001, is amended to read as follows:
11 The director shall determine for the 1989 2003
12 calendar year and each subsequent calendar year the

13 annual and cumulative inflation factors for each
14 calendar year to be applied to tax years beginning on
15 or after January 1 of that calendar year. The
16 director shall compute the new dollar amounts as
17 specified to be adjusted in section 422.5 by the
18 latest cumulative inflation factor and round off the
19 result to the nearest one dollar. The annual and
20 cumulative inflation factors determined by the
21 director are not rules as defined in section 17A.2,
22 subsection 11. The director shall determine for the
23 1990 calendar year and each subsequent calendar year
24 the annual and cumulative standard deduction factors
25 to be applied to tax years beginning on or after
26 January 1 of that calendar year. The director shall
27 compute the new dollar amounts of the standard
28 deductions specified in section 422.9, subsection 1,
29 by the latest cumulative standard deduction factor and
30 round off the result to the nearest ten dollars. The
31 annual and cumulative standard deduction factors
32 determined by the director are not rules as defined in
33 section 17A.2, subsection 11.
34 Sec. ___. EFFECTIVE AND APPLICABILITY DATES. This
35 Act takes effect January 1, 2002, for tax years
36 beginning on or after that date."
37 4. Title page, by striking lines 1 through 3 and
38 inserting the following: "An Act relating to the
39 individual income tax by exempting from tax certain
40 federal tax rebates, eliminating the deduction for
41 federal income taxes paid, decreasing the tax rates,
42 and including effective and applicability date
43 provisions."

Sukup of Franklin rose on a point of order that amendment
H-2049 was not germane.

The Speaker ruled the point well taken and amendment H-2049
not germane.

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

On the question "Shall the bill pass?" (H.F. 757)

The ayes were, 94:
Alons Arnold Atteberry Barry
Baudler Bell Boal Boddicker
Boggess Brauns Broers Bukta
Carroll Chiodo Cohoon Connors
Cormack De Boef Dix Dolecheck
Dotzler Drake Eddie Eichhorn
Elgin Falck Finch Foege
Ford Frevert Garman Gipp
Greimann Grundberg Hahn Hansen
Hatch Heaton Hoffman Horbach
Huseman Huser Jacobs Jenkins
Jochum Johnson Jones Kettering
Klemme Kreiman Kuhn Larkin
Larson Lensing Manternach Mascher
May Mertz Metcalf Millage
Murphy Myers O'Brien Osterhaus
Petersen Quirk Raecker Rants
Rayhons Rekow Reynolds Richardson
Roberts Scherrman Schrader Seng
Shey Sievers Smith Stevens
Sukup Taylor, D. Taylor, T. Teig
Tremmel Tymeson Tyrrell Van Engelenhoven
Van Fossen Weidman Winckler Wise
Witt Mr. Speaker
Siegrist

 


The nays were, 3:
Brunkhorst Fallon Shoultz

 


Absent or not voting, 3:
Bradley Hoversten Warnstadt

 


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

The House stood at ease at 1:59 p.m., until the fall of the gavel.

The House resumed session at 3:59 p.m., Speaker Siegrist in the
chair.

The House stood at ease at 4:00 p.m., until the fall of the gavel.

The House resumed session at 5:04 p.m., Speaker Siegrist 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
June 19, 2001, amended and passed the following bill in which the concurrence of the
House is asked:

House File 698, a bill for an act providing appropriations for certain temporary
staffing for the Iowa utilities board and consumer advocate prior to assessment of such
staffing expenses to utilities.

Also: That the Senate has on June 19, 2001, passed the following bill in which the
concurrence of the Senate was asked:

House File 758, a bill for an act providing for congressional and legislative districts
and providing an effective date.

MICHAEL E. MARSHALL, Secretary

IMMEDIATE MESSAGE

Rants of Woodbury asked and received unanimous consent that
House File 757 be immediately messaged to the Senate.

SENATE AMENDMENTS CONSIDERED

Jenkins of Black Hawk called up for consideration House File
698, a bill for an act providing appropriations for certain temporary
staffing for the Iowa utilities board and consumer advocate prior to
assessment of such staffing expenses to utilities, amended by the
following Senate amendment H-2051:

Division was requested as follows:

H-2051

1 Amend House File 698, as passed by the House, as
2 follows:

H-2051A

3 1. Page 1, line 3, by striking the figure "1."
4 2. Page 1, line 7, by striking the words "review
5 power purchase contracts" and inserting the following:
6 "perform required functions, including but not limited
7 to, review of power purchase contracts, review of
8 emission plans and budgets, and review of ratemaking
9 principles proposed for construction or lease of a new
10 generating facility".
11 3. Page 1, line 13, by striking the word
12 "subsection" and inserting the word "section".

H-2051A

13 4. Page 1, by striking lines 16 through 27.
14 5. Page 1, by inserting before line 28, the
15 following:
16 "Sec. . WORKFORCE ATTRITION PROGRAM AND FUND.
17 1. For the fiscal year beginning July 1, 2001, and
18 ending June 30, 2002, the department of management
19 shall establish a workforce attrition program. The
20 department shall administer the program as necessary
21 to achieve the goal of eliminating full-time
22 equivalent positions in the executive branch of state
23 government that approximate the number of executive
24 branch employees who voluntarily retire during the
25 fiscal year.
26 2. a. The department shall establish a workforce
27 attrition fund to receive transfers of moneys from
28 executive branch agencies and departments representing
29 unused general fund wages and benefits, after payment
30 for vacation or sick leave benefits, of employees who
31 retire during the fiscal year.
32 b. Unless an exception is authorized in accordance
33 with paragraph "c", if an employee of an executive
34 branch department or agency voluntarily retires during
35 the fiscal year, the department or agency shall
36 transfer to the workforce attrition fund the remaining
37 amount of general fund salary and benefits, after
38 payment for vacation or sick leave benefits, that
39 would have been expended had the retired employee
40 remained on the payroll for the balance of the fiscal
41 year. In lieu of reporting in accordance with section
42 8.39, the department of management shall report
43 monthly to the legislative fiscal committee and the
44 legislative fiscal bureau concerning the transfers
45 made to the workforce attrition fund.
46 c. The department or agency table of organization
47 shall be revised to reflect the elimination of an
48 equivalent number of positions as retire in the
49 department or agency during the fiscal year. However,
50 if the department determines that eliminating a full-

Page 2

1 time equivalent position would severely impact the
2 department's or agency's mission or services, the
3 department or agency may appeal to the department of
4 management for an exception. If the department of
5 management concurs with the department's or agency's
6 determination, the exception shall be granted, the
7 transfer to the workforce attrition fund shall not be
8 made, and the table of organization shall not be
9 revised.

H-2051A

10 3. Moneys transferred to the workforce attrition
11 fund are not subject to further transfer under section
12 8.39 or any other provision of law and shall not be
13 encumbered or obligated unless appropriated. The
14 moneys in the workforce attrition fund at the close of
15 the fiscal year beginning July 1, 2001, shall be
16 transferred to the general fund of the state and the
17 program and fund shall be eliminated."
18 6. Page 1, by inserting before line 28 the
19 following:
20 "Sec. . Section 12.72, subsection 4, Code 2001,
21 is amended by striking the subsection and inserting in
22 lieu thereof the following:
23 4. a. The treasurer of state may create and
24 establish one or more special funds, to be known as
25 "bond reserve funds", to secure one or more issues of
26 bonds or notes issued pursuant to section 12.71. The
27 treasurer of state shall pay into each bond reserve
28 fund any moneys appropriated and made available by the
29 state or the treasurer for the purpose of the fund,
30 any proceeds of sale of notes or bonds to the extent
31 provided in the resolutions authorizing their
32 issuance, and any other moneys which may be available
33 to the treasurer for the purpose of the fund from any
34 other sources. All moneys held in a bond reserve
35 fund, except as otherwise provided in this chapter,
36 shall be used as required solely for the payment of
37 the principal of bonds secured in whole or in part by
38 the fund or of the sinking fund payments with respect
39 to the bonds, the purchase or redemption of the bonds,
40 the payment of interest on the bonds, or the payments
41 of any redemption premium required to be paid when the
42 bonds are redeemed prior to maturity.
43 b. Moneys in a bond reserve fund shall not be
44 withdrawn from it at any time in an amount that will
45 reduce the amount of the fund to less than the bond
46 reserve fund requirement established for the fund, as
47 provided in this subsection, except for the purpose of
48 making, with respect to bonds secured in whole or in
49 part by the fund, payment when due of principal,
50 interest, redemption premiums, and the sinking fund

Page 3

1 payments with respect to the bonds for the payment of
2 which other moneys of the treasurer are not available.
3 Any income or interest earned by, or incremental to, a
4 bond reserve fund due to the investment of it may be
5 transferred by the treasurer to other funds or
6 accounts to the extent the transfer does not reduce

H-2051A

7 the amount of that bond reserve fund below the bond
8 reserve fund requirement for it.
9 c. The treasurer of state shall not at any time
10 issue bonds, secured in whole or in part by a bond
11 reserve fund if, upon the issuance of the bonds, the
12 amount in the bond reserve fund will be less than the
13 bond reserve fund requirement for the fund, unless the
14 treasurer at the time of issuance of the bonds
15 deposits in the fund from the proceeds of the bonds
16 issued or from other sources an amount which, together
17 with the amount then in the fund will not be less than
18 the bond reserve fund requirement for the fund. For
19 the purposes of this subsection, the term "bond
20 reserve fund requirement" means, as of any particular
21 date of computation, an amount of money, as provided
22 in the resolutions authorizing the bonds with respect
23 to which the fund is established.
24 d. To assure the continued solvency of any bonds
25 secured by the bond reserve fund, provision is made in
26 paragraph "a" for the accumulation in each bond
27 reserve fund of an amount equal to the bond reserve
28 fund requirement for the fund. In order further to
29 assure maintenance of the bond reserve funds, the
30 treasurer shall, on or before January 1 of each
31 calendar year, make and deliver to the governor the
32 treasurer's certificate stating the sum, if any,
33 required to restore each bond reserve fund to the bond
34 reserve fund requirement for that fund. Within thirty
35 days after the beginning of the session of the general
36 assembly next following the delivery of the
37 certificate, the governor shall submit to both houses
38 printed copies of a budget including the sum, if any,
39 required to restore each bond reserve fund to the bond
40 reserve fund requirement for that fund. Any sums
41 appropriated by the general assembly and paid to the
42 treasurer pursuant to this subsection shall be
43 deposited by the authority in the applicable bond
44 reserve fund.
45 Sec. . Section 12.82, subsection 4, Code 2001,
46 is amended by striking the subsection and inserting in
47 lieu thereof the following:
48 4. a. The treasurer of state may create and
49 establish one or more special funds, to be known as
50 "bond reserve funds", to secure one or more issues of

Page 4

1 bonds or notes issued pursuant to section 12.81. The
2 treasurer of state shall pay into each bond reserve
3 fund any moneys appropriated and made available by the

H-2051A

4 state or the treasurer for the purpose of the fund,
5 any proceeds of sale of notes or bonds to the extent
6 provided in the resolutions authorizing their
7 issuance, and any other moneys which may be available
8 to the treasurer for the purpose of the fund from any
9 other sources. All moneys held in a bond reserve
10 fund, except as otherwise provided in this chapter,
11 shall be used as required solely for the payment of
12 the principal of bonds secured in whole or in part by
13 the fund or of the sinking fund payments with respect
14 to the bonds, the purchase or redemption of the bonds,
15 the payment of interest on the bonds, or the payments
16 of any redemption premium required to be paid when the
17 bonds are redeemed prior to maturity.
18 b. Moneys in a bond reserve fund shall not be
19 withdrawn from it at any time in an amount that will
20 reduce the amount of the fund to less than the bond
21 reserve fund requirement established for the fund, as
22 provided in this subsection, except for the purpose of
23 making, with respect to bonds secured in whole or in
24 part by the fund, payment when due of principal,
25 interest, redemption premiums, and the sinking fund
26 payments with respect to the bonds for the payment of
27 which other moneys of the treasurer are not available.
28 Any income or interest earned by, or incremental to, a
29 bond reserve fund due to the investment of it may be
30 transferred by the treasurer to other funds or
31 accounts to the extent the transfer does not reduce
32 the amount of that bond reserve fund below the bond
33 reserve fund requirement for it.
34 c. The treasurer of state shall not at any time
35 issue bonds, secured in whole or in part by a bond
36 reserve fund if, upon the issuance of the bonds, the
37 amount in the bond reserve fund will be less than the
38 bond reserve fund requirement for the fund, unless the
39 treasurer at the time of issuance of the bonds
40 deposits in the fund from the proceeds of the bonds
41 issued or from other sources an amount which, together
42 with the amount then in the fund will not be less than
43 the bond reserve fund requirement for the fund. For
44 the purposes of this subsection, the term "bond
45 reserve fund requirement" means, as of any particular
46 date of computation, an amount of money, as provided
47 in the resolutions authorizing the bonds with respect
48 to which the fund is established.
49 d. To assure the continued solvency of any bonds
50 secured by the bond reserve fund, provision is made in


H-2051A

Page 5

1 paragraph "a" for the accumulation in each bond
2 reserve fund of an amount equal to the bond reserve
3 fund requirement for the fund. In order further to
4 assure maintenance of the bond reserve funds, the
5 treasurer shall, on or before January 1 of each
6 calendar year, make and deliver to the governor the
7 treasurer's certificate stating the sum, if any,
8 required to restore each bond reserve fund to the bond
9 reserve fund requirement for that fund. Within thirty
10 days after the beginning of the session of the general
11 assembly next following the delivery of the
12 certificate, the governor shall submit to both houses
13 printed copies of a budget including the sum, if any,
14 required to restore each bond reserve fund to the bond
15 reserve fund requirement for that fund. Any sums
16 appropriated by the general assembly and paid to the
17 treasurer pursuant to this subsection shall be
18 deposited by the authority in the applicable bond
19 reserve fund."

H-2051B

20 7. Page 1, by inserting before line 28, the
21 following:
22 "Sec. . 1998 Iowa Acts, chapter 1219, section
23 6, subsection 6, is amended by adding the following
24 new paragraphs:
25 NEW PARAGRAPH. a. The department of general
26 services is authorized pursuant to section 18.12,
27 subsection 12, to dispose of the real property located
28 at the northwest corner of the intersection of Grand
29 and Pennsylvania avenues on which the parking
30 structure is to be located and any structures located
31 on such real property. The department may enter into
32 an agreement under chapter 28E with public and private
33 agencies for purposes of the planning, design,
34 construction, ownership, operation, or maintenance of
35 the parking structure. In conjunction with the
36 chapter 28E agreement, the department is authorized to
37 enter into a long-term lease agreement for office
38 space located on property adjacent to the property on
39 which the parking structure is to be located.
40 NEW PARAGRAPH. b. The department may obligate and
41 use moneys appropriated in this subsection as
42 consideration to acquire on behalf of the state an
43 interest in the completed parking structure and real
44 property on which the parking structure is located
45 pursuant to the terms of the chapter 28E agreement

H-2051B

46 described in paragraph "a". Notwithstanding anything
47 to the contrary in section 18.12, subsection 12,
48 moneys expended from the appropriation in this
49 subsection that are reimbursed to the department by a
50 party to the chapter 28E agreement shall be credited

Page 6

1 to the appropriation in this subsection and shall be
2 used to acquire an interest on behalf of the state in
3 the completed parking structure and real property as
4 described in this paragraph.
5 NEW PARAGRAPH. c. Notwithstanding section 8.33 or
6 any provision of this section to the contrary,
7 unencumbered or unobligated funds remaining on June
8 30, 2003, from the funds appropriated in this
9 subsection, shall revert to the rebuild Iowa
10 infrastructure fund on August 31, 2003.
11 Sec. . 1999 Iowa Acts, chapter 204, section 4,
12 subsection 6, is amended by adding the following new
13 paragraphs after the last unnumbered paragraph:
14 NEW PARAGRAPH. a. The department of general
15 services is authorized pursuant to section 18.12,
16 subsection 12, to dispose of the real property located
17 at the northwest corner of the intersection of Grand
18 and Pennsylvania avenues on which the parking
19 structure is to be located and any structures located
20 on such real property. The department may enter into
21 an agreement under chapter 28E with public and private
22 agencies for purposes of the planning, design,
23 construction, ownership, operation, or maintenance of
24 the parking structure. In conjunction with the
25 chapter 28E agreement, the department is authorized to
26 enter into a long-term lease agreement for office
27 space located on property adjacent to the property on
28 which the parking structure is to be located.
29 NEW PARAGRAPH. b. The department may obligate and
30 use moneys appropriated in this subsection as
31 consideration to acquire on behalf of the state an
32 interest in the completed parking structure and real
33 property on which the parking structure is located
34 pursuant to the terms of the chapter 28E agreement
35 described in paragraph "a". Notwithstanding anything
36 to the contrary in section 18.12, subsection 12,
37 moneys expended from the appropriation in this
38 subsection that are reimbursed to the department by a
39 party to the chapter 28E agreement shall be credited
40 to the appropriation in this subsection and shall be
41 used to acquire an interest on behalf of the state in
42 the completed parking structure and real property as

H-2051B

43 described in this paragraph.
44 NEW PARAGRAPH. c. Notwithstanding section 8.33,
45 or any provision of this Act to the contrary,
46 unencumbered or unobligated funds remaining on June
47 30, 2003, from the funds appropriated in this
48 subsection, shall revert to the rebuild Iowa
49 infrastructure fund on August 31, 2003."

H-2051A

50 8. Page 1, by inserting before line 28, the

Page 7

1 following:
2 "Sec. . EFFECTIVE AND APPLICABILITY DATES.
3 This Act, being deemed of immediate importance, takes
4 effect upon enactment and, if approved by the governor
5 after July 1, 2001, shall apply retroactively to July
6 1, 2001."
7 9. Title page, by striking lines 1 through 3 and
8 inserting the following: "An Act relating to
9 regulatory and expenditure matters, making
10 appropriations, and including effective date and
11 retroactive applicability provisions."
12 10. By renumbering as necessary.

On motion by Jenkins of Black Hawk, the House concurred in the
Senate amendment H-2051A.

On motion by Jenkins of Black Hawk, the House concurred in the
Senate amendment H-2051B.

Jenkins of Black Hawk 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. 698)

The ayes were, 91:
Alons Arnold Atteberry Barry
Baudler Bell Boal Boddicker
Boggess Brauns Broers Brunkhorst
Bukta Carroll Chiodo Cohoon
Connors De Boef Dix Dolecheck
Dotzler Drake Eddie Eichhorn
Elgin Falck Finch Foege
Ford Frevert Garman Gipp
Greimann Grundberg Hahn Hansen
Hatch Heaton Hoffman Horbach
Huseman Huser Jacobs Jenkins
Jochum Johnson Jones Kettering
Klemme Kuhn Larkin Larson
Lensing Manternach Mascher May
Mertz Metcalf Millage Murphy
Myers O'Brien Petersen Quirk
Raecker Rants Rayhons Rekow
Reynolds Richardson Roberts Scherrman
Seng Shey Shoultz Sievers
Smith Stevens Sukup Taylor, D.
Taylor, T. Teig Tymeson Tyrrell
Van Engelenhoven Van Fossen Weidman Winckler
Wise Witt Mr. Speaker
Siegrist

 


The nays were, 5:
Cormack Fallon Kreiman Schrader
Tremmel

 


Absent or not voting, 4:
Bradley Hoversten Osterhaus Warnstadt

 


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

IMMEDIATE MESSAGE

Rants of Woodbury asked and received unanimous consent that
House File 698 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
June 19, 2001, amended and passed the following bill in which the concurrence of the
House is asked:

House File 696, a bill for an act relating to the employment security administrative
contribution surcharge, and providing an effective date.

MICHAEL E. MARSHALL, Secretary


Boggess of Page called up for consideration House File 696, a bill
for an act relating to the employment security administrative
contribution surcharge, and providing an effective date, amended by
the Senate, and moved that the House concur in the following Senate
amendment H-2052:

H-2052

1 Amend House File 696, as amended, passed, and
2 reprinted by the House, as follows:
3 1. By striking everything after the enacting
4 clause and inserting the following:
5 "Section 1. Section 96.7, subsection 12,
6 paragraphs a, c, and d, Code 2001, are amended to read
7 as follows:
8 a. An employer other than a governmental entity or
9 a nonprofit organization, subject to this chapter,
10 shall pay an administrative contribution surcharge
11 equal in amount to one-tenth of one percent of federal
12 taxable wages, as defined in section 96.19, subsection
13 37, paragraph "b", subject to the surcharge formula to
14 be developed by the department under this paragraph.
15 The department shall develop a surcharge formula that
16 provides a target revenue level of no greater than six
17 million five hundred twenty-five thousand dollars
18 annually. The department shall reduce the
19 administrative contribution surcharge established for
20 any calendar year proportionate to any federal
21 government funding that provides an increased
22 allocation of moneys for workforce development
23 offices, under the federal employment services
24 financing reform legislation. Any administrative
25 contribution surcharge revenue that is collected in
26 calendar year 2002 in excess of six million five
27 hundred twenty-five thousand dollars shall be deducted
28 from the amount to be collected in calendar year 2003
29 before the department establishes the administrative
30 contribution surcharge. The department shall
31 recompute the amount as a percentage of taxable wages,
32 as defined in section 96.19, subsection 37, and shall
33 add the percentage surcharge to the employer's
34 contribution rate determined under this section. The
35 percentage surcharge shall be capped at a maximum of
36 seven dollars per employee. The department shall
37 adopt rules prescribing the manner in which the
38 surcharge will be collected. Interest shall accrue on
39 all unpaid surcharges under this subsection at the
40 same rate as on regular contributions and shall be
41 collectible in the same manner. Interest accrued and
42 collected under this paragraph and interest earned and

43 credited to the fund under paragraph "b" shall be used
44 by the department only for the purposes set forth in
45 paragraph "c".
46 c. Moneys in the fund shall be used by the
47 department only upon appropriation by the general
48 assembly and only for personnel and nonpersonnel costs
49 of rural and satellite departmental offices in
50 population centers of less than twenty thousand or for

Page 2

1 the department-approved training fund funded in
2 section 8, subsection 2, of 1988 Iowa Acts, chapter
3 1274. To the extent possible, the department shall
4 colocate the rural and satellite departmental offices
5 funded by the surcharge provided for in this
6 subsection at available community college facilities
7 throughout the state. If colocation at community
8 college facilities is not feasible, the department
9 shall attempt, to the extent possible, to colocate
10 offices in the facilities of other government
11 entities. Moneys in the fund shall not be used for
12 purposes other than those identified in this paragraph
13 or identified in the appropriation of the moneys in
14 the fund by the general assembly.
15 (1) Moneys in the fund may be used to provide any
16 of the following services to businesses:
17 (a) Use of a business representative to build one-
18 on-one relationships with businesses. A business
19 representative may provide any of the following:
20 (i) Workforce consulting in the form of customized
21 strategies to attract, retain, and upgrade the skills
22 of an employer's workforce.
23 (ii) General and customized recruitment.
24 (iii) Workplace skill testing and analysis in the
25 form of skill level, aptitude, and ability assessment.
26 (iv) Employer specific job descriptions, employee
27 handbooks, applications, and other relevant personnel
28 forms.
29 (b) Labor market surveys and analyses which may
30 include the compilation and dissemination of
31 occupational and wage information.
32 (c) Contact information and referral services
33 related to any of the following issues:
34 (i) Workers' compensation.
35 (ii) Wage and worker rights.
36 (iii) Registration.
37 (iv) The federal Occupational Safety and Health
38 Act of 1970 and occupational safety and health
39 standards.
40 (v) Boiler and elevator regulations.
41 (vi) Contractor registration.

42 (vii) Immigration services.
43 (viii) Unemployment contributions.
44 (d) A statewide computer networking process for
45 employers and individuals regarding available
46 positions and qualified applicants.
47 (e) Crosstraining services for workforce
48 development staff.
49 (2) Moneys in the fund may be used to provide any
50 of the following services to individuals:

Page 3

1 (a) Outreach, intake, and orientation services
2 related to any of the following:
3 (i) Job search and interviewing assistance.
4 (ii) Initial assessment of skill levels,
5 aptitudes, abilities, and support service needs.
6 (iii) Proficiency testing.
7 (iv) Resume development and preparation.
8 (v) Referral to training and customized skill
9 upgrading.
10 (vi) Career counseling including assessment and
11 analysis.
12 (b) Contact information and referral for
13 supportive services including but not limited to
14 transportation, housing, and child care.
15 (c) Labor market surveys and analyses.
16 (d) Job development and placement services.
17 (e) Resource centers that provide individuals with
18 computer access for electronic job search, resume
19 development, career exploration, and keyboard and
20 software training. A resource center may also be
21 equipped with employment, training, and career
22 information including but not limited to employment
23 opportunities available with local employers.
24 (f) Information and assistance with filing for
25 unemployment compensation benefits.
26 (3) Moneys in the fund shall not be used for any
27 of the following purposes:
28 (a) Services that are not included in
29 subparagraphs (1) and (2).
30 (b) Unemployment tax system renovation and
31 computer upgrades.
32 (c) Specific consultation services relating to the
33 federal Occupational Safety and Health Act of 1970 and
34 occupational safety and health standards.
35 (d) Services which are currently provided by other
36 state agencies.
37 (e) Workforce development regional advisory board
38 member expenses.
39 (f) Supportive services including but not limited
40 to transportation, housing, and child care.

41 d. This subsection is repealed July 1, 2001 2003,
42 and the repeal is applicable to contribution rates for
43 calendar year 2002 2004 and subsequent calendar years.
44 Sec. 2. RURAL AND SATELLITE DEPARTMENTAL OFFICES
45 REVIEW. The department of workforce development shall
46 establish performance measures for each workforce
47 development office site based on the job seeker
48 entered employment rate, the job seeker employment
49 retention rate, the job seeker average wage at
50 placement, the job seeker customer satisfaction

Page 4

1 rating, the number of employers served, and the
2 employer customer satisfaction rating, and shall
3 conduct an annual review of the performance measures.
4 The department, in the annual departmental offices
5 review, shall consider the feasibility of
6 consolidating some of the rural and satellite
7 departmental offices to better serve the public. In
8 addition, the department shall conduct a comprehensive
9 analysis of the efficiency and effectiveness of the
10 department's field office system, including the
11 geographic distribution of the offices.
12 The department shall prepare a report of its annual
13 departmental offices review findings that sets forth
14 specific review findings for each office site. The
15 report shall contain information gathered in the
16 review as well as information concerning the success
17 of colocation efforts at community colleges throughout
18 the state, the services provided to employers with
19 fifty or fewer employees, the rent or lease costs
20 associated with each office site and the building
21 square footage at each office site, and efforts to
22 pursue other funding sources.
23 The department shall submit a report of its annual
24 departmental offices review to the governor and
25 general assembly by December 21, 2001, by December 21,
26 2002, and by December 21, 2003.
27 Sec. . PILOT PROJECTS - FEE-BASED SERVICES.
28 The department of workforce development shall
29 establish pilot projects for the purpose of evaluating
30 the feasibility of charging and collecting fees for
31 certain customized or enhanced employer services. In
32 every annual departmental office review, the
33 department shall include the results of the pilot
34 projects, including the number and type of fee-based
35 services provided, the amount of revenue generated,
36 and the cost basis for the establishment of the fees.
37 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
38 immediate importance, takes effect upon enactment."


The motion prevailed and the House concurred in the Senate
amendment H-2052.

Boggess of Page 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. 696)

The ayes were, 90:
Alons Arnold Atteberry Barry
Baudler Bell Boal Boddicker
Boggess Brauns Broers Brunkhorst
Bukta Carroll Chiodo Cohoon
Connors Cormack De Boef Dolecheck
Dotzler Drake Eddie Eichhorn
Elgin Falck Fallon Finch
Foege Ford Frevert Garman
Gipp Greimann Grundberg Hahn
Hansen Hatch Heaton Hoffman
Horbach Huseman Huser Jacobs
Jenkins Jochum Johnson Jones
Kettering Klemme Kreiman Kuhn
Larkin Lensing Manternach Mascher
May Mertz Metcalf Murphy
Myers O'Brien Petersen Quirk
Raecker Rants Rayhons Rekow
Reynolds Richardson Roberts Scherrman
Schrader Seng Shey Shoultz
Sievers Smith Stevens Sukup
Taylor, D. Taylor, T. Teig Tremmel
Tymeson Weidman Winckler Wise
Witt Mr. Speaker
Siegrist

 


The nays were, 6:
Dix Larson Millage Tyrrell
Van Engelenhoven Van Fossen

 


Absent or not voting, 4:
Bradley Hoversten Osterhaus Warnstadt

 


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
the following bill be immediately messaged to the Senate: House
Files 696.

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
June 19, 2001, amended and passed the following bill in which the concurrence of the
House is asked:

House File 577, a bill for an act relating to electric power generation and
transmission, by addressing the criteria for construction of an electric generating
facility; waivers; approval of power purchase contracts; management of regulated
emissions from facilities fueled by coal; providing for the development of a state electric
energy policy; providing for joint agreements for acquisition of ownership of a joint
facility for electric power generation and transmission, and for the planning, financing,
operation, and maintenance of the joint facility; providing for the bonding authority of
electric power agencies; and making certain other changes and requirements related to
electric generation and transmission.

Also: That the Senate has on June 19, 2001, passed the following bill in which the
concurrence of the Senate was asked:

House File 757, a bill for an act relating to the taxation under the individual income
tax of certain federal tax rebates and including a retroactive applicability date
provision.

Also: That the Senate has on June 19, 2001, adopted the following resolution in
which the concurrence of the House is asked:

Senate Concurrent Resolution 32, a concurrent resolution to provide for
adjournment sine die.

MICHAEL E. MARSHALL, Secretary

The House stood at ease at 6:10 p.m., until the fall of the gavel.

The House resumed session at 6:46 p.m., Speaker Siegrist in the
chair.

Jenkins of Black Hawk called up for consideration House File
577, a bill for an act relating to electric power generation and

transmission, by addressing the criteria for construction of an electric
generating facility; waivers; approval of power purchase contracts;
management of regulated emissions from facilities fueled by coal;
providing for the development of a state electric energy policy;
providing for joint agreements for acquisition of ownership of a joint
facility for electric power generation and transmission, and for the
planning, financing, operation, and maintenance of the joint facility;
providing for the bonding authority of electric power agencies; and
making certain other changes and requirements related to electric
generation and transmission, amended by the Senate, and moved
that the House concur in the following Senate amendment H-2053:

H-2053

1 Amend House File 577, as amended, passed, and
2 reprinted by the House, as follows:
3 1. By striking everything after the enacting
4 clause and inserting the following:
5 "Section 1. Section 12C.1, subsection 1, Code
6 2001, as amended by 2001 Iowa Acts, House File 637,
7 section 4, is amended to read as follows:
8 1. All funds held by the following officers or
9 institutions shall be deposited in one or more
10 depositories first approved by the appropriate
11 governing body as indicated: for the treasurer of
12 state, by the executive council; for judicial officers
13 and court employees, by the supreme court; for the
14 county treasurer, recorder, auditor, and sheriff, by
15 the board of supervisors; for the city treasurer or
16 other designated financial officer of a city, by the
17 city council; for the county public hospital or merged
18 area hospital, by the board of hospital trustees; for
19 a memorial hospital, by the memorial hospital
20 commission; for a school corporation, by the board of
21 school directors; for a city utility or combined
22 utility system established under chapter 388, by the
23 utility board; for a library service area established
24 under chapter 256, by the library service area board
25 of trustees; and for an electric power agency as
26 defined in section 28F.2 or 476A.20, by the governing
27 body of the electric power agency. However, the
28 treasurer of state and the treasurer of each political
29 subdivision or the designated financial officer of a
30 city shall invest all funds not needed for current
31 operating expenses in time certificates of deposit in
32 approved depositories pursuant to this chapter or in
33 investments permitted by section 12B.10. The list of
34 public depositories and the amounts severally
35 deposited in the depositories are matters of public

36 record. This subsection does not limit the definition
37 of "public funds" contained in subsection 2.
38 Notwithstanding provisions of this section to the
39 contrary, public funds of a state government deferred
40 compensation plan established by the executive council
41 may also be invested in the investment products
42 authorized under section 509A.12.
43 Sec. 2. Section 12C.1, subsection 2, paragraph b,
44 Code 2001, is amended to read as follows:
45 b. "Public funds" and "public deposits" mean the
46 moneys of the state or a political subdivision or
47 instrumentality of the state including a county,
48 school corporation, special district, drainage
49 district, unincorporated town or township,
50 municipality, or municipal corporation or any agency,

Page 2

1 board, or commission of the state or a political
2 subdivision; any court or public body noted in
3 subsection 1; a legal or administrative entity created
4 pursuant to chapter 28E; an electric power agency as
5 defined in section 28F.2 or 476A.20; and federal and
6 state grant moneys of a quasi-public state entity that
7 are placed in a depository pursuant to this chapter.
8 Sec. 3. Section 28F.2, Code 2001, is amended to
9 read as follows:
10 28F.2 DEFINITIONS.
11 As used in this chapter, unless the context
12 otherwise requires:
13 1. The terms "public "Public agency", "state", an d
14 "private agency" shall have the meanings prescribed by
15 section 28E.2.
16 2. The term "project" "Project" or "projects"
17 shall mean means any works or facilities referred to
18 in section 28F.1 and shall include all property real
19 and personal, pertinent thereto or connected with such
20 project or projects, and the existing works or
21 facilities, if any, to which such project or projects
22 are an extension, addition, betterment or improvement.
23 3. "Electric power agency" means an entity
24 financing or acquiring electric power facilities
25 pursuant to this chapter or chapter 28E or 476A.
26 Sec. 4. Section 427.1, subsection 2, Code 2001, is
27 amended to read as follows:
28 2. MUNICIPAL AND MILITARY PROPERTY. The property
29 of a county, township, city, school corporation, levee
30 district, drainage district, or the Iowa national
31 guard, when devoted to public use and not held for
32 pecuniary profit, except property of a municipally
33 owned electric utility held under joint ownership and
34 property of an electric power facility financed under

35 chapter 28F which or 476A that shall be subject to
36 taxation under chapter 437A and facilities of a
37 municipal utility that are used for the provision of
38 local exchange services pursuant to chapter 476, but
39 only to the extent such facilities are used to provide
40 such services, which shall be subject to taxation
41 under chapter 433, except that section 433.11 shall
42 not apply. The exemption for property owned by a city
43 or county also applies to property which is operated
44 by a city or county as a library, art gallery or
45 museum, conservatory, botanical garden or display,
46 observatory or science museum, or as a location for
47 holding athletic contests, sports or entertainment
48 events, expositions, meetings or conventions, or
49 leased from the city or county for any such purposes,
50 or leased from the city or county by the Iowa national

Page 3

1 guard or by a federal agency for the benefit of the
2 Iowa national guard when devoted for public use and
3 not for pecuniary profit. Food and beverages may be
4 served at the events or locations without affecting
5 the exemptions, provided the city has approved the
6 serving of food and beverages on the property if the
7 property is owned by the city or the county has
8 approved the serving of food and beverages on the
9 property if the property is owned by the county.
10 Sec. 5. Section 437A.3, subsection 17, paragraph
11 b, Code 2001, is amended to read as follows:
12 b. An electric power generating plant where the
13 acquisition cost of all interests acquired exceeds ten
14 million dollars. For purposes of this paragraph,
15 "electric power generating plant" means each nameplate
16 rated electric power generating plant owned solely or
17 jointly by any person or electric power facility
18 financed under the provisions of chapter 28F or 476A
19 in which electrical energy is produced from other
20 forms of energy, including all equipment used in the
21 production of such energy through its step-up
22 transformer.
23 Sec. 6. Section 437A.6, subsection 1, paragraph b,
24 Code 2001, is amended to read as follows:
25 b. Facilities owned by or leased to a municipal
26 utility when devoted to public use and not held for
27 pecuniary profit, except facilities of a municipally
28 owned electric utility held under joint ownership or
29 lease and facilities of an electric power facility
30 financed under chapter 28F or 476A.
31 Sec. 7. Section 437A.7, subsection 2, paragraph a,
32 Code 2001, is amended to read as follows:
33 a. Transmission lines owned by or leased to a

34 municipal utility when devoted to public use and not
35 for pecuniary profit, except transmission lines of a
36 municipally owned electric utility held under joint
37 ownership and transmission lines of an electric power
38 facility financed under chapter 28F or 476A.
39 Sec. 8. Section 476.1A, Code 2001, is amended by
40 adding the following new subsection:
41 NEW SUBSECTION. 5A. Filing alternate energy
42 purchase program plans with the board, and offering
43 such programs to customers, pursuant to section
44 476.47.
45 Sec. 9. Section 476.1B, subsection 1, Code 2001,
46 is amended by adding the following new paragraphs:
47 NEW PARAGRAPH. m. An electric power agency as
48 defined in chapters 28F and 476A that includes as a
49 member a city or municipally owned utility that builds
50 transmission facilities after July 1, 2001, is subject

Page 4

1 to applicable transmission reliability rules or
2 standards adopted by the board for those facilities.
3 n. Filing alternate energy purchase program plans
4 with the board, and offering such programs to
5 customers, pursuant to section 476.47.
6 Sec. 10. Section 476.6, Code 2001, is amended by
7 adding the following new subsection:
8 NEW SUBSECTION. 16B. ELECTRIC POWER GENERATING
9 FACILITY EMISSIONS.
10 a. It is the intent of the general assembly that
11 the state, through a collaborative effort involving
12 state agencies and affected generation owners, provide
13 for compatible statewide environmental and electric
14 energy policies with respect to regulated emissions
15 from rate-regulated electric power generating
16 facilities in the state that are fueled by coal. Each
17 rate-regulated public utility that is an owner of one
18 or more electric power generating facilities fueled by
19 coal and located in this state on July 1, 2001, shall
20 develop a multiyear plan and budget for managing
21 regulated emissions from its facilities in a cost-
22 effective manner.
23 (1) The initial multiyear plan and budget shall be
24 filed with the board by April 1, 2002. Updates to the
25 plan and budget shall be filed at least every twenty-
26 four months.
27 (2) Copies of the initial plan and budget, as well
28 as any subsequent updates, shall be served on the
29 environmental protection division of the department of
30 natural resources.
31 (3) The initial multiyear plan and budget and any
32 subsequent updates shall be considered in a contested

33 case proceeding pursuant to chapter 17A. The
34 environmental protection division of the department of
35 natural resources and the consumer advocate shall
36 participate as parties to the proceeding.
37 (4) The department of natural resources shall
38 state whether the plan or update meets applicable
39 state environmental requirements for regulated
40 emissions. If the plan does not meet these
41 requirements, the department shall recommend
42 amendments that outline actions necessary to bring the
43 plan or update into compliance with the environmental
44 requirements.
45 b. The board shall not approve a plan or update
46 that does not meet applicable state environmental
47 requirements and federal ambient air quality standards
48 for regulated emissions from electric power generating
49 facilities located in the state.
50 c. The board shall review the plan or update and

Page 5

1 the associated budget, and shall approve the plan or
2 update and the associated budget if the plan or update
3 and the associated budget are reasonably expected to
4 achieve cost effective compliance with applicable
5 state environmental requirements and federal ambient
6 air quality standards. In reaching its decision, the
7 board shall consider whether the plan or update and
8 the associated budget reasonably balance costs,
9 environmental requirements, economic development
10 potential, and the reliability of the electric
11 generation and transmission system.
12 d. The board shall issue an order approving or
13 rejecting a plan, update, or budget within one hundred
14 eighty days after the public utility's filing is
15 deemed complete; however, upon good cause shown, the
16 board may extend the time for issuing the order as
17 follows:
18 (1) The board may grant an extension of thirty
19 days.
20 (2) The board may grant more than one extension,
21 but each extension must rely upon a separate showing
22 of good cause.
23 (3) A subsequent extension must not be granted any
24 earlier than five days prior to the expiration of the
25 original one-hundred-eighty-day period, or the current
26 extension.
27 e. The reasonable costs incurred by a rate-
28 regulated public utility in preparing and filing the
29 plan, update, or budget and in participating in the
30 proceedings before the board and the reasonable costs
31 associated with implementing the plan, update, or

32 budget shall be included in its regulated retail
33 rates.
34 f. It is the intent of the general assembly that
35 the board, in an environmental plan, update, or
36 associated budget filed under this section by a rate-
37 regulated public utility, may limit investments or
38 expenditures that are proposed to be undertaken prior
39 to the time that the environmental benefit to be
40 produced by the investment or expenditure would be
41 required by state or federal law.
42 g. The board shall report to the general assembly
43 by January 21, 2003, on the appropriateness and
44 desirability of requiring the municipal utilities and
45 the rural electric cooperatives to file multiyear
46 plans and budgets for managing regulated emissions
47 from their electric power generating facilities fueled
48 by coal and located in this state, similar to the
49 process required for rate-regulated public utilities
50 under this subsection.

Page 6

1 Sec. 11. NEW SECTION. 476.47 ALTERNATE ENERGY
2 PURCHASE PROGRAMS.
3 1. Beginning January 1, 2004, an electric utility,
4 whether or not rate-regulated under this chapter,
5 shall offer an alternate energy purchase program to
6 customers, based on energy produced by alternate
7 energy production facilities in Iowa.
8 2. The board shall require electric utilities to
9 file plans for alternate energy purchase programs
10 offered pursuant to this section.
11 a. Rate-regulated electric utilities shall file
12 plans for alternate energy purchase programs that
13 allow customers to contribute voluntarily to the
14 development of alternate energy in Iowa, and shall
15 file tariffs as required by the board by rule.
16 b. Electric utilities that are not rate-regulated
17 shall offer alternate energy purchase programs at
18 rates determined by their governing authority, and
19 shall file tariffs with the board for informational
20 purposes only.
21 3. The electric utility shall notify consumers of
22 its alternate energy purchase program and any proposed
23 modifications to such program at least sixty days
24 prior to implementation of the program or any
25 modification.
26 4. For purposes of this section, an electric
27 utility may base its program on energy produced by
28 alternate energy production facilities located outside
29 of Iowa under any of the following circumstances:
30 a. The energy is purchased by the electric utility

31 pursuant to a contract in effect prior to July 1,
32 2001, and continues until the expiration of the
33 contract, including any options to renew that are
34 exercised by the electric utility.
35 b. The electric utility has a financial interest,
36 as of July 1, 2001, in the alternate energy production
37 facility that is located outside of Iowa, or in an
38 entity that has a financial interest in an alternate
39 energy production facility located outside of Iowa.
40 c. The energy is purchased by an electric utility
41 that is not rate-regulated and that is required to
42 purchase all of its electric power requirements from a
43 single supplier that is physically located outside of
44 Iowa.
45 5. This section shall not apply to non-rate-
46 regulated electric utilities physically located
47 outside of Iowa that serve Iowa customers.
48 6. Any consumer-owned utility may apply to the
49 board for a waiver under this section, and the board,
50 for good cause, may grant the waiver.

Page 7

1 Sec. 12. Section 476.53, Code 2001, is amended by
2 striking the section and inserting in lieu thereof the
3 following:
4 476.53 ELECTRIC GENERATING AND TRANSMISSION
5 FACILITIES.
6 1. It is the intent of the general assembly to
7 attract the development of electric power generating
8 and transmission facilities within the state in
9 sufficient quantity to ensure reliable electric
10 service to Iowa consumers and provide economic
11 benefits to the state.
12 2. The general assembly's intent with regard to
13 the development of electric power generating and
14 transmission facilities, as provided in subsection 1,
15 shall be implemented in a manner that is cost-
16 effective and compatible with the environmental
17 policies of the state, as expressed in Title XI.
18 3. a. If a rate-regulated public utility files an
19 application pursuant to section 476A.3 to construct in
20 Iowa a baseload electric power generating facility
21 with a nameplate generating capacity equal to or
22 greater than three hundred megawatts or a combined-
23 cycle electric power generating facility, or an
24 alternate energy production facility as defined in
25 section 476.42, or if a rate-regulated public utility
26 leases or owns in Iowa, in whole or in part, a new
27 baseload electric power generating facility with a
28 nameplate generating capacity equal to or greater than
29 three hundred megawatts or a combined-cycle electric

30 power generating facility, or a new alternate energy
31 production facility as defined in section 476.42, the
32 board shall specify in advance, by order issued after
33 a contested case proceeding, the ratemaking principles
34 that will apply when the costs of the facility are
35 included in regulated electric rates.
36 b. In determining the applicable ratemaking
37 principles, the board shall not be limited to
38 traditional ratemaking principles or traditional cost
39 recovery mechanisms.
40 c. In determining the applicable ratemaking
41 principles, the board shall make the following
42 findings:
43 (1) The rate-regulated public utility has in
44 effect a board-approved energy efficiency plan as
45 required under section 476.6, subsection 19.
46 (2) The rate-regulated public utility has
47 demonstrated to the board that the public utility has
48 considered other sources for long-term electric supply
49 and that the facility or lease is reasonable when
50 compared to other feasible alternative sources of

Page 8

1 supply. The rate-regulated public utility may satisfy
2 the requirements of this subparagraph through a
3 competitive bidding process, under rules adopted by
4 the board, that demonstrate the facility or lease is a
5 reasonable alternative to meet its electric supply
6 needs.
7 d. The applicable ratemaking principles shall be
8 determined in a contested case proceeding, which
9 proceeding may be combined with the proceeding for
10 issuance of a certificate conducted pursuant to
11 chapter 476A.
12 e. The order setting forth the applicable
13 ratemaking principles shall be issued prior to the
14 commencement of construction or lease of the facility.
15 f. Following issuance of the order, the rate-
16 regulated public utility shall have the option of
17 proceeding with construction or lease of the facility
18 in Iowa, or withdrawing its application for a
19 certificate under chapter 476A.
20 g. Notwithstanding any provision of this chapter
21 to the contrary, the ratemaking principles established
22 by the order issued pursuant to paragraph "e" shall be
23 binding with regard to the specific electric power
24 generating facility in any subsequent rate proceeding.
25 Sec. 13. Section 476A.4, Code 2001, is amended by
26 adding the following new subsection:
27 NEW SUBSECTION. 5. A proceeding for the issuance
28 of a certificate under section 476A.5 may be

29 consolidated with a contested case proceeding for
30 determination of applicable ratemaking principles
31 under section 476.53.
32 Sec. 14. Section 476A.6, Code 2001, is amended to
33 read as follows:
34 476A.6 DECISION - CRITERIA.
35 The board shall render a decision on the
36 application in an expeditious manner. A certificate
37 shall be issued to the applicant if the board finds
38 all of the following:
39 1. The services and operations resulting from the
40 construction of the facility are required by the
41 present or future public convenience, use and
42 necessity consistent with legislative intent as
43 expressed in section 476.53 and the economic
44 development policy of the state as expressed in Title
45 I, subtitle 5, and will not be detrimental to the
46 provision of adequate and reliable electric service.
47 2. The applicant is willing to perform such
48 services and construct, maintain, and operate the
49 facility pursuant to the provisions of the certificate
50 and this chapter.

Page 9

1 3. The construction, maintenance, and operation of
2 the facility will cause minimum adverse be consistent
3 with reasonable land use, and environmental, and
4 aesthetic impact policies and are consonant with
5 reasonable utilization of air, land, and water
6 resources, for beneficial purposes considering
7 available technology and the economics of available
8 alternatives.
9 4. The applicant, if a public utility as defined
10 in section 476.1, has in effect a comprehensive energy
11 management program designed to reduce peak loads and
12 to increase efficiency of use of energy by all classes
13 of customers of the utility, and the facility in the
14 application is necessary notwithstanding the existence
15 of the comprehensive energy management program. As
16 used in this subsection, a "comprehensive energy
17 management program" includes at a minimum the
18 following:
19 a. Establishment of load management and
20 interruptible service programs, where cost effective.
21 b. Development of wheeling agreements and other
22 energy sharing agreements, where cost effective with
23 utilities that have available capacity.
24 c. Establishment of cost-effective energy
25 efficiency and renewable energy services and programs.
26 d. Compliance with board rules on energy
27 management procedures.

28 5. The applicant, if a public utility as defined
29 in section 476.1, shall demonstrate to the board that
30 the utility has considered sources for long-term
31 electric supply from either purchase of electricity or
32 investment in facilities owned by other persons.
33 6. The applicant, if a public utility as defined
34 in section 476.1, has considered all feasible
35 alternatives to the proposed facility including
36 nongeneration alternatives; has ranked those
37 alternatives by cost; has implemented the least-cost
38 alternatives first; and the facility in the
39 application is necessary notwithstanding the
40 implementation of these alternatives.
41 Sec. 15. Section 476A.7, Code 2001, is amended by
42 adding the following new subsection:
43 NEW SUBSECTION. 3. Pursuant to the provisions of
44 section 476.53, a rate-regulated public utility shall
45 have the option of withdrawing its application for
46 issuance of a certificate at any time prior to the
47 issuance of the certificate, or after the certificate
48 has been issued.
49 Sec. 16. Section 476A.15, Code 2001, is amended to
50 read as follows:

Page 10

1 476A.15 WAIVER.
2 The board, if it determines that the public
3 interest would not be adversely affected, may waive
4 any of the requirements of this chapter for facilities
5 with a capacity of one hundred or fewer megawatts.
6 Sec. 17. NEW SECTION. 476A.20 DEFINITIONS.
7 For purposes of this subchapter, unless the context
8 otherwise requires:
9 1. "Electric power agency" means an entity as
10 defined in section 28F.2.
11 2. "Facility" means an electric power generating
12 plant, or transmission line or system, as defined in
13 section 476A.1.
14 3. "Public bond or obligation" means an obligation
15 as defined in section 76.14.
16 Sec. 18. NEW SECTION. 476A.21 ELECTRIC POWER
17 AGENCY - GENERAL AUTHORITY.
18 In addition to other powers conferred upon an
19 electric power agency by chapter 28F or other
20 applicable law, an electric power agency may enter
21 into and carry out joint agreements with other
22 participants for the acquisition of ownership of a
23 joint facility and for the planning, financing,
24 operation, and maintenance of the joint facility, as
25 provided in this subchapter.
26 Sec. 19. NEW SECTION. 476A.22 ELECTRIC POWER

27 AGENCY - AUTHORITY - CONFLICTING PROVISIONS.
28 1. In addition to any powers conferred upon an
29 electric power agency under chapter 28F or other
30 applicable law, an electric power agency may exercise
31 all other powers reasonably necessary or appropriate
32 for or incidental to the effectuation of the electric
33 power agency's authorized purposes, including without
34 limitation, the powers enumerated in chapters 6A and
35 6B for purposes of constructing or acquiring an
36 electric power facility.
37 2. An electric power agency, in connection with
38 its property and affairs, and in connection with
39 property within its control, may exercise any and all
40 powers that might be exercised by a natural person or
41 a private corporation in connection with similar
42 property and affairs.
43 3. The enumeration of specified powers and
44 functions of an electric power agency in this
45 subchapter is not a limitation of the powers of an
46 electric power agency, but the procedures prescribed
47 for exercising the powers and functions enumerated in
48 this subchapter control and govern in the event of any
49 conflict with any other provision of law.
50 4. The authority conferred pursuant to this

Page 11

1 subchapter applies to electric power agencies,
2 notwithstanding any contrary provisions of section
3 28F.1.
4 Sec. 20. NEW SECTION. 476A.23 ISSUANCE OF PUBLIC
5 BONDS OR OBLIGATIONS - PURPOSES - LIMITATIONS.
6 1. An electric power agency may from time to time
7 issue its public bonds or obligations in such
8 principal amounts as the electric power agency deems
9 necessary to provide sufficient funds to carry out any
10 of its purposes and powers, including but not limited
11 to any of the following:
12 a. The acquisition or construction of any project
13 to be owned or leased by the electric power agency, or
14 the acquisition of any interest in such project or any
15 right to the capacity of such project, including the
16 acquisition, construction, or acquisition of any
17 interest in an electric power generating plant to be
18 constructed in this state, or the acquisition,
19 construction, or acquisition of any interest in a
20 transmission line or system.
21 b. The funding or refunding of the principal of,
22 or interest or redemption premiums on, any public
23 bonds or obligations issued by the electric power
24 agency whether or not the public bonds or obligations
25 or interest to be funded or refunded have become due.

26 c. The establishment or increase of reserves to
27 secure or to pay the public bonds or obligations or
28 interest on the public bonds or obligations.
29 d. The payment of all other costs or expenses of
30 the electric power agency incident to and necessary to
31 carry out its purposes and powers.
32 2. Notwithstanding anything in this subchapter or
33 chapter 28F to the contrary, a facility shall not be
34 financed with the proceeds of public bonds or
35 obligations, the interest on which is exempt from
36 federal income tax, unless the public issuer of such
37 public bonds or obligations covenants that the issuer
38 shall comply with the requirements or limitations
39 imposed by the Internal Revenue Code or other
40 applicable federal law to preserve the tax exemption
41 of interest payable on the bonds or obligations.
42 3. Notwithstanding anything in this subchapter or
43 chapter 28F to the contrary, an electric power
44 generating facility shall not be financed under this
45 subchapter unless all of the following conditions are
46 satisfied:
47 a. The portion of the electric power generating
48 facility financed by the electric power agency is not
49 designed to serve the electric power requirements of
50 retail customers of members that are municipal

Page 12

1 electric utilities established in the state after
2 January 1, 2001.
3 b. The electric power agency annually files with
4 the board, in a manner to be determined by the board,
5 information regarding sales from the electric power
6 generating facility in sufficient detail to determine
7 compliance with these provisions.
8 The board shall report to the general assembly if
9 any of the provisions are being violated.
10 Sec. 21. NEW SECTION. 476A.24 PUBLIC BONDS OR
11 OBLIGATIONS AUTHORIZED BY RESOLUTION OF BOARD -
12 TERMS.
13 1. The board of directors of an electric power
14 agency, by resolution, may authorize the issuance of
15 public bonds or obligations of the electric power
16 agency.
17 2. The public bonds or obligations may be issued
18 in one or more series under the resolution or under a
19 trust indenture or other security agreement.
20 3. The resolution, trust indenture, or other
21 security agreement, with respect to such public bonds
22 or obligations, shall provide for all of the
23 following:
24 a. The date on the public bonds or obligations.

25 b. The time of maturity.
26 c. The rate of interest.
27 d. The denomination.
28 e. The form, either coupon or registered.
29 f. The conversion, registration, and exchange
30 privileges.
31 g. The rank or priority.
32 h. The manner of execution.
33 i. The medium of payment, including the place of
34 payment, either within or outside of the state.
35 j. The terms of redemption, either with or without
36 premium.
37 k. Such other terms and conditions as set forth by
38 the board in the resolution, trust indenture, or other
39 security agreement.
40 4. Public bonds or obligations authorized by the
41 board of directors shall not be subject to any
42 restriction under other law with respect to the
43 amount, maturity, interest rate, or other terms of
44 obligation of a public agency or private person.
45 5. Chapter 75 shall not apply to public bonds or
46 obligations authorized by the board of directors as
47 provided in this section.
48 Sec. 22. NEW SECTION. 476A.25 PUBLIC BONDS OR
49 OBLIGATIONS PAYABLE SOLELY FROM AGENCY REVENUES OR
50 FUNDS.

Page 13

1 1. The principal of and interest on any public
2 bonds or obligations issued by an electric power
3 agency shall be payable solely from the revenues or
4 funds pledged or available for their payment as
5 authorized in this subchapter.
6 2. Each public bond or obligation shall contain
7 all of the following terms:
8 a. That the principal of or interest on such
9 public bonds or obligations is payable solely from
10 revenues or funds of the electric power agency.
11 b. That neither the state or a political
12 subdivision of the state other than the electric power
13 agency, nor a public agency that is a member of the
14 electric power agency is obligated to pay the
15 principal or interest on such public bonds or
16 obligations.
17 c. That neither the full faith and credit nor the
18 taxing power of the state, of any political
19 subdivision of the state, or of any such public agency
20 is pledged to the payment of the principal of or the
21 interest on the public bonds or obligations.
22 Sec. 23. NEW SECTION. 476A.26 PUBLIC BONDS OR
23 OBLIGATIONS - TYPES - SOURCES FOR PAYMENT -

24 SECURITY.
25 1. Except as otherwise expressly provided by this
26 subchapter or by the electric power agency, every
27 issue of public bonds or obligations of the electric
28 power agency shall be payable out of any revenues or
29 funds of the electric power agency, subject only to
30 any agreements with the holders of particular public
31 bonds or obligations pledging any particular revenues
32 or funds.
33 2. An electric power agency may issue types of
34 public bonds or obligations as it may determine,
35 including public bonds or obligations as to which the
36 principal and interest are payable exclusively from
37 the revenues from one or more projects, or from an
38 interest in such project or projects, or a right to
39 capacity of such project or projects, or from any
40 revenue-producing contract made by the electric power
41 agency with any person, or from its revenues
42 generally.
43 3. Any public bonds or obligations may be
44 additionally secured by a pledge of any grant,
45 subsidy, or contribution from any public agency or
46 other person, or a pledge of any income or revenues,
47 funds, or moneys of the electric power agency from any
48 other source.
49 Sec. 24. NEW SECTION. 476A.27 PUBLIC BONDS OR
50 OBLIGATIONS AND RATES FOR DEBT SERVICE NOT SUBJECT TO

Page 14

1 STATE APPROVAL.
2 Public bonds or obligations of an electric power
3 agency may be issued under this subchapter, and rents,
4 rates, and charges may be established in the same
5 manner as provided in section 28F.5 and pledged for
6 the security of public bonds or obligations and
7 interest and redemption premiums on such public bonds
8 or obligations, without obtaining the consent of any
9 department, division, commission, board, bureau, or
10 agency of the state and without any other proceeding
11 or the happening of any other condition or occurrence,
12 except as specifically required by this subchapter.
13 Sec. 25. NEW SECTION. 476A.28 PUBLIC BONDS OR
14 OBLIGATIONS TO BE NEGOTIABLE.
15 All public bonds or obligations of an electric
16 power agency shall be negotiable within the meaning
17 and for all of the purposes of the uniform commercial
18 code, chapter 554, subject only to the registration
19 requirement of section 76.10.
20 Sec. 26. NEW SECTION. 476A.29 VALIDITY OF PUBLIC
21 BONDS OR OBLIGATIONS AT DELIVERY - TEMPORARY BONDS.
22 1. Any public bonds or obligations may be issued

23 and delivered, notwithstanding that one or more of the
24 officers executing them shall have ceased to hold
25 office at the time when the public bonds or
26 obligations are actually delivered.
27 2. Pending preparation of definitive bonds or
28 obligations, an electric power agency may issue
29 temporary bonds or obligations that shall be exchanged
30 for the definitive bonds or obligations upon their
31 issuance.
32 Sec. 27. NEW SECTION. 476A.30 PUBLIC OR PRIVATE
33 SALE OF BONDS AND NOTES.
34 Public bonds or obligations of an electric power
35 agency may be sold at public or private sale for a
36 price and in a manner determined by the electric power
37 agency.
38 Sec. 28. NEW SECTION. 476A.31 PUBLIC BONDS OR
39 OBLIGATIONS AS SUITABLE INVESTMENTS FOR GOVERNMENTAL
40 UNITS, FINANCIAL INSTITUTIONS, AND FIDUCIARIES.
41 The following persons may legally invest any debt
42 service funds, money, or other funds belonging to such
43 person or within such person's control in any public
44 bonds or obligations issued pursuant to this
45 subchapter:
46 1. A bank, trust company, savings association,
47 building and loan association, savings and loan
48 association, or investment company.
49 2. An insurance company, insurance association, or
50 any other person carrying on an insurance business.

Page 15

1 3. An executor, administrator, conservator,
2 trustee, or other fiduciary.
3 4. Any other person authorized to invest in bonds
4 or obligations of the state.
5 Sec. 29. NEW SECTION. 476A.32 RESOLUTION, TRUST
6 INDENTURE, OR SECURITY AGREEMENT CONSTITUTES CONTRACT
7 - PROVISIONS.
8 The resolution, trust indenture, or other security
9 agreement under which any public bonds or obligations
10 are issued shall constitute a contract with the
11 holders of the public bonds or obligations, and may
12 contain provisions, among others, prescribing any of
13 the following terms:
14 1. The terms and provisions of the public bonds or
15 obligations.
16 2. The mortgage or pledge of and the grant of a
17 security interest in any real or personal property and
18 all or any part of the revenue from any project or any
19 revenue producing contract made by the electric power
20 agency with any person to secure the payment of public
21 bonds or obligations, subject to any agreements with

22 the holders of public bonds or obligations which might
23 then exist.
24 3. The custody, collection, securing, investment,
25 and payment of any revenues, assets, money, funds, or
26 property with respect to which the electric power
27 agency may have any rights or interest.
28 4. The rates or charges for electric energy sold
29 by, or services rendered by, the electric power
30 agency, the amount to be raised by the rates or
31 charges, and the use and disposition of any or all
32 revenue.
33 5. The creation of reserves or debt service funds
34 and the regulation and disposition of such reserves or
35 funds.
36 6. The purposes to which the proceeds from the
37 sale of any public bonds or obligations to be issued
38 may be applied, and the pledge of the proceeds to
39 secure the payment of the public bonds or obligations.
40 7. Limitations on the issuance of any additional
41 public bonds or obligations, the terms upon which
42 additional public bonds or obligations may be issued
43 and secured, and the refunding of outstanding public
44 bonds or obligations.
45 8. The rank or priority of any public bonds or
46 obligations with respect to any lien or security.
47 9. The creation of special funds or moneys to be
48 held for operating expenses, payment, or redemption of
49 public bonds or obligations, reserves or other
50 purposes, and the use and disposition of moneys held

Page 16

1 in these funds.
2 10. The procedure by which the terms of any
3 contract with or for the benefit of the holders of
4 public bonds or obligations may be amended or
5 abrogated, the amount of public bonds or obligations
6 the holders of which must consent to such amendment or
7 abrogation, and the manner in which consent may be
8 given.
9 11. The definition of the acts or omissions to act
10 that constitute a default in the duties of the
11 electric power agency to holders of its public bonds
12 or obligations, and the rights and remedies of the
13 holders in the event of default including, if the
14 electric power agency so determines, the right to
15 accelerate the date of the maturation of the public
16 bonds or obligations or the right to appoint a
17 receiver or receivers of the property or revenues
18 subject to the lien of the resolution, trust
19 indenture, or other security agreement.
20 12. Any other or additional agreements with or for

21 the benefit of the holders of public bonds or
22 obligations or any covenants or restrictions necessary
23 or desirable to safeguard the interests of the
24 holders.
25 13. The custody of any of the electric power
26 agency's property or investments, the safekeeping of
27 such property or investments, the insurance to be
28 carried on such property or investments, and the use
29 and disposition of insurance proceeds.
30 14. The vesting in a trustee or trustees, within
31 or outside the state, of such property, rights,
32 powers, and duties as the electric power agency may
33 determine; or the limiting or abrogating of the rights
34 of the holders of any public bonds or obligations to
35 appoint a trustee, or the limiting of the rights,
36 powers, and duties of such trustee.
37 15. The appointment of and the establishment of
38 the duties and obligations of any paying agent or
39 other fiduciary within or outside the state.
40 Sec. 30. NEW SECTION. 476A.33 MORTGAGE OR TRUST
41 DEED TO SECURE BONDS.
42 For the security of public bonds or obligations
43 issued or to be issued by an electric power agency,
44 the electric power agency may mortgage or execute
45 deeds of trust of the whole or any part of its
46 property.
47 Sec. 31. NEW SECTION. 476A.34 NO PERSONAL
48 LIABILITY ON PUBLIC BONDS OR OBLIGATIONS.
49 An official, director, member of an electric power
50 agency, or any person executing public bonds or

Page 17

1 obligations shall not be liable personally on the
2 public bonds or obligations or be subject to any
3 personal liability or accountability by reason of the
4 issuance of such public bonds or obligations.
5 Sec. 32. NEW SECTION. 476A.35 REPURCHASE OF
6 SECURITIES.
7 An electric power agency may purchase public bonds
8 or obligations out of any funds available for such
9 purchase, and hold, pledge, cancel, or resell the
10 public bonds or obligations, subject to and in
11 accordance with any agreements with the holders.
12 Sec. 33. NEW SECTION. 476A.36 PLEDGE OF REVENUE
13 AS SECURITY.
14 An electric power agency may pledge its rates,
15 rents, and other revenues, or any part of such rates,
16 rents, and revenues, as security for the repayment,
17 with interest and redemption premiums, if any, of the
18 moneys borrowed by the electric power agency or
19 advanced to the electric power agency for any of its

20 authorized purposes and as security for the payment of
21 moneys due and owed by the electric power agency under
22 any contract.
23 Sec. 34. Section 478.3, Code 2001, is amended by
24 adding the following new subsection:
25 NEW SUBSECTION. 3. For the purpose of this
26 section, the term "public" shall not be interpreted to
27 be limited to consumers located in this state.
28 Sec. 35. CODE EDITOR DIRECTIVE. The Code editor
29 shall change references to "this chapter" in sections
30 476A.1 through 476A.15 as necessary and appropriate to
31 reflect the addition of the new subchapter to chapter
32 476A as a result of this Act.
33 Sec. 36. EFFECTIVE DATE. This Act, being deemed
34 of immediate importance, takes effect upon enactment."
35 2. Title page, line 2, by inserting after the
36 word "construction" the following: "or lease".
37 3. Title page, line 3, by inserting after the
38 word "facility" the following: ", and for the
39 development of ratemaking principles to apply to
40 certain electric generating facilities".
41 4. Title page, lines 3 and 4, by striking the
42 words "approval of power purchase contracts;".
43 5. Title page, line 5, by inserting after the
44 word "policy;" the following: "providing for
45 alternate energy purchase programs; approval of plans
46 and budgets for regulating emissions from coal-fired
47 plants;".
48 6. Title page, line 11, by inserting after the
49 word "transmission" the following: "; and providing
50 an effective date".

The motion prevailed and the House concurred in the Senate
amendment H-2053.

Jenkins of Black Hawk 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. 577)

The ayes were, 95:
Alons Arnold Atteberry Barry
Baudler Bell Boal Boddicker
Boggess Brauns Broers Brunkhorst
Bukta Carroll Chiodo Cohoon
Connors Cormack De Boef Dix
Dolecheck Dotzler Drake Eddie
Eichhorn Elgin Falck Finch
Foege Ford Frevert Garman
Gipp Greimann Grundberg Hahn
Hansen Hatch Heaton Hoffman
Horbach Huseman Huser Jacobs
Jenkins Jochum Johnson Jones
Kettering Klemme Kreiman Kuhn
Larkin Larson Lensing Manternach
Mascher May Mertz Metcalf
Millage Murphy Myers O'Brien
Petersen Quirk Raecker Rants
Rayhons Rekow Reynolds Richardson
Roberts Scherrman Schrader Seng
Shey Shoultz Sievers Smith
Stevens Sukup Taylor, D. Taylor, T.
Teig Tremmel Tymeson Tyrrell
Van Engelenhoven Van Fossen Weidman Winckler
Wise Witt Mr. Speaker
Siegrist

 


The nays were, 1:
Fallon

 


Absent or not voting, 4:
Bradley Hoversten Osterhaus Warnstadt

 


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

IMMEDIATE MESSAGE

Rants of Woodbury asked and received unanimous consent that
House File 577 be immediately messaged to the Senate.

ADOPTION OF SENATE CONCURRENT RESOLUTION 32

Rants of Woodbury asked and received unanimous consent for the
immediate consideration of Senate Concurrent Resolution 32 as
follows, and moved its adoption:

1 SENATE CONCURRENT RESOLUTION 32
2 By Committee on Rules and Administration
3 A Senate Concurrent Resolution to provide for
4 adjournment sine die.
5 Be It Resolved By The Senate, The House Concurring,
6 That when adjournment is had on Tuesday, June 19,

7 2001, it be the final adjournment of the 2001
8 Extraordinary Session of the Seventy-ninth General
9 Assembly.

The motion prevailed and the resolution was adopted.

MESSAGE TO THE GOVERNOR AND TO THE SENATE

Rants of Woodbury moved that the Chief Clerk of the House be
directed to send a written message to the Governor and to the Senate
informing them that the House of Representatives was prepared to
adjourn sine die pursuant to Senate Concurrent Resolution 32.

The motion prevailed.

MESSAGE FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker: The Senate is prepared to adjourn the 2001 Extraordinary Session of
the Seventy-ninth General Assembly pursuant to Senate Concurrent Resolution 32
duly adopted.

MICHAEL E. MARSHALL, Secretary

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 19th day of June, 2001: House Files 577, 696, 698, 757 and 758.

MARGARET A. THOMSON
Chief Clerk of the House

Report adopted.

PRESENTATION OF VISITORS

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

Students from Southeast Webster. By Cormack of Webster.

RESOLUTIONS FILED

HCR 40, by Sievers, Van Fossen, Elgin, Drake, Jenkins, Millage,
Metcalf, Hansen, Larson, Siegrist, Heaton, Gipp, and Rants, a
concurrent resolution urging the Iowa congressional delegation to
support and work to implement the renewal of the trade promotion
authority of the President of the United States.

Laid over under Rule 25.

HCR 41, Siegrist and Myers, a concurrent resolution providing for
adjournment sine die.

Laid over under Rule 25.

HR 48, by Sievers, Van Fossen, Elgin, Drake, Jenkins, Millage,
Metcalf, Hansen, Larson, Siegrist, Heaton, Gipp, and Rants, a
resolution urging the Iowa congressional delegation to support and
work to implement the renewal of the trade promotion authority of
the President of the United States.

Laid over under Rule 25.

AMENDMENT FILED

H-2050 H.R. 48 Kuhn of Floyd
Frevert of Palo Alto

FINAL ADJOURNMENT

By virtue of Senate Concurrent Resolution 32, duly adopted, the
day of June 19, 2001 having arrived, the Speaker of the House, Brent
Siegrist, declared the 2001 Extraordinary Session of the House of
Representatives of the Seventy-ninth General Assembly adjourned
sine die at 7:34 p.m.


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