Text: H01471 Text: H01473 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 691 as follows: 1 2 #1. By striking everything after the enacting 1 3 clause and inserting the following: 1 4 "DIVISION I 1 5 PROPERTY TAX REPLACEMENT 1 6 Section 1. Section 24.14, Code 2003, is amended to 1 7 read as follows: 1 8 24.14 TAX LIMITED. 1 9 A greater tax than that so entered upon the record 1 10 shall not be levied or collected for the municipality 1 11 proposing the tax for the purposes indicated and a 1 12 greater expenditure of public money shall not be made 1 13 for any specific purpose than the amount estimated and 1 14 appropriated for that purpose, except as provided in 1 15 sections 24.6 and 24.15. All budgets set up in 1 16 accordance with the statutes shall take such funds, 1 17 and allocations made by sections 123.53,and 452A.79 1 18and chapter 405A, into account, and all such funds, 1 19 regardless of their source, shall be considered in 1 20 preparing the budget. 1 21 Sec. 2. Section 331.403, subsection 3, Code 2003, 1 22 is amended to read as follows: 1 23 3. A county that fails to meet the filing deadline 1 24 imposed by this section shall have withheld from 1 25 payments to be made to the county and allocated to the 1 26 county pursuant tochapter 405Asection 425.1 an 1 27 amount equal to five cents per capita until the 1 28 financial report is filed. 1 29 Sec. 3. Section 331.427, subsection 1, unnumbered 1 30 paragraph 1, Code 2003, is amended to read as follows: 1 31 Except as otherwise provided by state law, county 1 32 revenues from taxes and other sources for general 1 33 county services shall be credited to the general fund 1 34 of the county, including revenues received under 1 35 sections 9I.11, 101A.3, 101A.7, 123.36, 123.143, 1 36 142B.6, 176A.8, 321.105, 321.152, 321G.7, section 1 37 331.554, subsection 6, sections 341A.20, 364.3, 1 38 368.21, 422A.2, 428A.8, 430A.3, 433.15, 434.19, 1 39 445.57, 453A.35, 458A.21, 483A.12, 533.24, 556B.1, 1 40 583.6, 602.8108, 904.908, and 906.17,and chapter1 41405A,and the following: 1 42 Sec. 4. Section 384.22, unnumbered paragraph 2, 1 43 Code 2003, is amended to read as follows: 1 44 A city that fails to meet the filing deadline 1 45 imposed by this section shall have withheld from 1 46 payments to be made to the county which are allocated 1 47 to the city pursuant tochapter 405Asection 425.1 an 1 48 amount equal to five cents per capita until the annual 1 49 report is filed with the auditor of state. 1 50 Sec. 5. Section 427B.19, subsection 3, unnumbered 2 1 paragraph 1, Code 2003, is amended to read as follows: 2 2 On or before September 1 of each fiscal year 2 3 through June 30,20062004, the county auditor shall 2 4 prepare a statement, based upon the report received 2 5 pursuant to subsections 1 and 2, listing for each 2 6 taxing district in the county: 2 7 Sec. 6. Section 427B.19, subsection 3, paragraph 2 8 c, Code 2003, is amended to read as follows: 2 9 c. The industrial machinery, equipment and 2 10 computers tax replacement claim for each taxing 2 11 district. For fiscal years beginning July 1, 1996, 2 12 and ending June 30, 2001, the replacement claim is 2 13 equal to the amount determined pursuant to paragraph 2 14 "a", multiplied by the tax rate specified in paragraph 2 15 "b". For fiscal years beginning July 1, 2001, and 2 16 ending June 30,20062004, the replacement claim is 2 17 equal to the product of the amount determined pursuant 2 18 to paragraph "a", less any increase in valuations 2 19 determined in paragraph "d", and the tax rate 2 20 specified in paragraph "b". If the amount subtracted 2 21 under paragraph "d" is more than the amount determined 2 22 in paragraph "a", there is no tax replacement for the 2 23 fiscal year. 2 24 Sec. 7. Section 427B.19A, subsection 1, Code 2003, 2 25 is amended to read as follows: 2 26 1. The industrial machinery, equipment and 2 27 computers property tax replacement fund is created. 2 28 For the fiscal year beginning July 1, 1996, through 2 29 the fiscal year ending June 30,20062004, there is 2 30 appropriated annually from the general fund of the 2 31 state to the department of revenue and finance to be 2 32 credited to the industrial machinery, equipment and 2 33 computers property tax replacement fund, an amount 2 34 sufficient to implement this division. However, for 2 35 the fiscal year beginning July 1, 2003, the amount 2 36 appropriated to the department of revenue and finance 2 37 to be credited to the industrial machinery, equipment 2 38 and computers tax replacement fund is ten million 2 39 eighty-one thousand six hundred eighty-five dollars. 2 40 Sec. 8. Section 427B.19C, Code 2003, is amended to 2 41 read as follows: 2 42 427B.19C ADJUSTMENT OF CERTAIN ASSESSMENTS 2 43 REQUIRED. 2 44 In the assessment year beginning January 1,20052 45 2003, the amount of assessed value of property defined 2 46 in section 403.19, subsection 1, for an urban renewal 2 47 taxing district which received replacement moneys 2 48 under section 427B.19A, subsection 4, shall be reduced 2 49 by an amount equal to that portion of the amount of 2 50 assessed value of such property which was assessed 3 1 pursuant to section 427B.17, subsection 3. 3 2 Sec. 9. Section 441.73, subsection 4, Code 2003, 3 3 is amended to read as follows: 3 4 4. The executive council shall transfer for the 3 5 fiscal year beginning July 1, 1992, and each fiscal 3 6 year thereafter, from funds established in sections 3 7405A.8,425.1,and 426.1, an amount necessary to pay 3 8 litigation expenses. The amount of the fund for each 3 9 fiscal year shall not exceed seven hundred thousand 3 10 dollars. The executive council shall determine 3 11 annually the proportionate amounts to be transferred 3 12 from thethreetwo separate funds. At any time when 3 13 no litigation is pending or in progress the balance in 3 14 the litigation expense fund shall not exceed one 3 15 hundred thousand dollars. Any excess moneys shall be 3 16 transferred in a proportionate amount back to the 3 17 funds from which they were originally transferred. 3 18 Sec. 10. GUARANTEE OF REPLACEMENT FUNDS. The 3 19 revaluation of all industrial machinery, equipment, 3 20 and computers authorized in section 427B.19B, Code 3 21 2003, as a result of the insufficient funding of the 3 22 industrial machinery, equipment and computers property 3 23 tax replacement fund for the fiscal year beginning 3 24 July 1, 2002, is void and taxes payable in the fiscal 3 25 year beginning July 1, 2003, shall not be levied on 3 26 the amount of such revaluation. 3 27 Sec. 11. Sections 403.23, 405A.1, 405A.2, 405A.3, 3 28 405A.4, 405A.5, 405A.6, 405A.7, 405A.8, 405A.9, 3 29 405A.10, 422.65, 427A.12, and 427B.19B, Code 2003, are 3 30 repealed. 3 31 Sec. 12. UNIFORM REDUCTIONS. The general assembly 3 32 finds that the provisions of this division of this Act 3 33 will result in reductions in appropriations that would 3 34 otherwise be made from the general fund of the state 3 35 for the fiscal year beginning July 1, 2003, that total 3 36 $70,000,000. If the governor vetoes a portion of this 3 37 division of this Act, the governor shall order uniform 3 38 reductions in appropriations allotments as provided in 3 39 section 8.31, in an amount equal to the appropriations 3 40 that are made as a result of the veto. 3 41 Sec. 13. EFFECTIVE DATE. The section of this 3 42 division of this Act that voids the revaluation of 3 43 machinery, equipment, and computers, being deemed of 3 44 immediate importance, takes effect upon enactment. 3 45 DIVISION II 3 46 PARKING TICKETS 3 47 Sec. 14. Section 321.236, subsection 1, paragraph 3 48 a, Code 2003, is amended to read as follows: 3 49 a. May be charged and collected upon a simple 3 50 notice of a fine payable to the city clerk or clerk of 4 1 the district court, if authorized by ordinance. The 4 2 fineshall not exceed five dollars except for snow4 3route parking violations in which case the fine shall4 4not exceed twenty-five dollarsfor each violation 4 5 charged under a simple notice of a fine shall be 4 6 established by ordinance. The fine may be increased 4 7up to tenby five dollars if the parking violation is 4 8 not paid within thirty days of the date upon which the 4 9 violation occurred, if authorized by ordinance. 4 10 Violations of section 321L.4, subsection 2, may be 4 11 charged and collected upon a simple notice of a one 4 12 hundred dollar fine payable to the city clerk or clerk 4 13 of the district court, if authorized by ordinance. No 4 14 costs or other charges shall be assessed. All fines 4 15 collected by a city pursuant to this paragraph shall 4 16 be retained by the city and all fines collected by a 4 17 county pursuant to this paragraph shall be retained by 4 18 the county. 4 19 Sec. 15. Section 805.8A, subsection 1, paragraph 4 20 a, Code 2003, is amended to read as follows: 4 21 a. For parking violations under sections 321.236, 4 22 321.239, 321.358, 321.360, and 321.361, the scheduled 4 23 fine is five dollars, except if the local authority 4 24 has established the fine by ordinance pursuant to 4 25 section 321.236, subsection 1. The scheduled fine for 4 26 a parking violationofpursuant to section 321.236 4 27 increasesin an amount up to tenby five dollars, as 4 28 authorized by ordinance pursuant to section 321.236, 4 29 subsection 1,paragraph "a",if the parking violation 4 30 is not paid within thirty days of the date upon which 4 31 the violation occurred. For purposes of calculating 4 32 the unsecured appearance bond required under section 4 33 805.6, the scheduled fine shall be five dollars, or if 4 34 the amount of the fine is greater than five dollars, 4 35 the unsecured appearance bond shall be the amount of 4 36 the fine established by the local authority pursuant 4 37 to section 321.236, subsection 1. However, violations 4 38 charged by a city or county upon simple notice of a 4 39 fine instead of a uniform citation and complaint as 4 40 permitted by section 321.236, subsection 1, paragraph 4 41 "a", are not scheduled violations, and this section 4 42 shall not apply to any offense charged in that manner. 4 43 For a parking violation under section 321.362 or 4 44 461A.38, the scheduled fine is ten dollars. 4 45 DIVISION III 4 46 LAW ENFORCEMENT ACADEMY 4 47 Sec. 16. NEW SECTION. 80B.11E ACADEMY TRAINING – 4 48 APPLICATION BY INDIVIDUAL – INDIVIDUAL EXPENSE. 4 49 1. Notwithstanding any other provision of law to 4 50 the contrary, an individual who is not a certified law 5 1 enforcement officer may apply for attendance at the 5 2 law enforcement academy at their own expense if such 5 3 individual is sponsored by a law enforcement agency 5 4 that either intends to hire or has hired the 5 5 individual as a law enforcement officer on the 5 6 condition that the individual meets the minimum 5 7 eligibility standards described in subsection 2. 5 8 2. An individual who submits an application 5 9 pursuant to subsection 1 shall, at a minimum, meet all 5 10 minimum hiring standards as established by academy 5 11 rules, including the successful completion of certain 5 12 psychological and physical testing examinations. In 5 13 addition, such individual shall be of good moral 5 14 character as determined by a thorough background 5 15 investigation by the academy for a fee. For such 5 16 purposes, the academy shall have the authority to 5 17 conduct a background investigation of the individual, 5 18 including a fingerprint search of local, state, and 5 19 national fingerprint files. 5 20 3. An individual shall not be granted permission 5 21 to attend an academy training program if such 5 22 acceptance would result in the nonacceptance of 5 23 another qualifying applicant who is a law enforcement 5 24 officer. 5 25 4. An individual who has not been hired by a law 5 26 enforcement agency must be hired by a law enforcement 5 27 agency within eighteen months of completing the 5 28 appropriate coursework at the law enforcement academy 5 29 in order to obtain certification pursuant to this 5 30 section. 5 31 DIVISION IV 5 32 BUDGET 5 33 Sec. 17. Section 331.436, Code 2003, is amended to 5 34 read as follows: 5 35 331.436 PROTEST. 5 36 Protests to the adopted budget must be made in 5 37 accordance with sections 24.27 through 24.32 as if the 5 38 county were the municipality under those sections 5 39 except that the number of people necessary to file a 5 40 protest under this section shall not be less than one 5 41 hundred. 5 42 DIVISION V 5 43 INDEBTEDNESS REPORTING – COLLECTION OF TAXES 5 44 Sec. 18. Section 403.23, subsection 1, Code 2003, 5 45 is amended by striking the subsection and inserting in 5 46 lieu thereof the following: 5 47 1. On or before December 1 of each odd-numbered 5 48 year, each municipality that has established an urban 5 49 renewal area shall report to the department of 5 50 management and to the appropriate county auditor the 6 1 total amount of loans, advances, indebtedness, or 6 2 bonds outstanding at the close of the most recently 6 3 ended fiscal year, which qualify for payment from the 6 4 special fund created in section 403.19, including 6 5 interest negotiated on such loans, advances, 6 6 indebtedness, or bonds. For purposes of this 6 7 subsection, "indebtedness" includes written agreements 6 8 whereby the municipality agrees to suspend, abate, 6 9 exempt, rebate, refund, or reimburse property taxes, 6 10 or provide a grant for property taxes paid, with 6 11 moneys in the special fund. The amount of loans, 6 12 advances, indebtedness, or bonds shall be listed in 6 13 the aggregate for each municipality reporting. 6 14 Sec. 19. Section 403.23, subsections 2 and 3, Code 6 15 2003, are amended to read as follows: 6 16 2. At the request of the legislative fiscal 6 17 bureau, the department of management shall provide the 6 18 reports and additional information to the legislative 6 19 fiscal bureau. The department of management, in 6 20 consultation with the legislative fiscal bureau, shall 6 21 determine reporting criteria and shall prepare a form 6 22 for reports filed with the department pursuant to this 6 23 section. The department shall make the form available 6 24 by electronic means. 6 25 3. If a municipality does not file theannual6 26 report with the department of management and the 6 27 county auditor by December 1 of each odd-numbered 6 28 year, the county treasurer shall withhold disbursement 6 29 of incremental taxes to the municipality until the 6 30annualreport is filed beginning immediately with the 6 31 next following disbursement of taxes. The county 6 32 auditor shall notify the county treasurer if taxes are 6 33 to be withheld. 6 34 Sec. 20. Section 631.1, Code 2003, is amended by 6 35 adding the following new subsection: 6 36 NEW SUBSECTION. 7. The district court sitting in 6 37 small claims has concurrent jurisdiction of an action 6 38 for the collection of taxes brought by a county 6 39 treasurer pursuant to sections 445.3 and 445.4 where 6 40 the amount in controversy is five thousand dollars or 6 41 less for actions commenced on or after July 1, 2003, 6 42 exclusive of interest and costs. 6 43 DIVISION VI 6 44 MUNICIPAL AND COUNTY INFRACTIONS 6 45 Sec. 21. Section 331.302, subsection 15, Code 6 46 2003, is amended to read as follows: 6 47 15. A county shall not provide a civil penalty in 6 48 excess offiveseven hundred fifty dollars for the 6 49 violation of an ordinance which is classified as a 6 50 county infraction or if the infraction is a repeat 7 1 offense, a civil penalty not to exceedseven hundred7 2fiftyone thousand dollars for each repeat offense. A 7 3 county infraction is not punishable by imprisonment. 7 4 Sec. 22. Section 331.307, subsection 1, Code 2003, 7 5 is amended to read as follows: 7 6 1. A county infraction is a civil offense 7 7 punishable by a civil penalty of not more thanfive7 8 seven hundred fifty dollars for each violation or if 7 9 the infraction is a repeat offense a civil penalty not 7 10 to exceedseven hundred fiftyone thousand dollars for 7 11 each repeat offense. 7 12 Sec. 23. Section 364.3, subsection 6, Code 2003, 7 13 is amended to read as follows: 7 14 6. A city shall not provide a civil penalty in 7 15 excess offiveseven hundred fifty dollars for the 7 16 violation of an ordinance which is classified as a 7 17 municipal infraction or if the infraction is a repeat 7 18 offense, a civil penalty not to exceedseven hundred7 19fiftyone thousand dollars for each repeat offense. A 7 20 municipal infraction is not punishable by 7 21 imprisonment. 7 22 Sec. 24. Section 364.22, subsection 1, unnumbered 7 23 paragraph 1, Code 2003, is amended to read as follows: 7 24 A municipal infraction is a civil offense 7 25 punishable by a civil penalty of not more thanfive7 26 seven hundred fifty dollars for each violation or if 7 27 the infraction is a repeat offense, a civil penalty 7 28 not to exceedseven hundred fiftyone thousand dollars 7 29 for each repeat offense. However, notwithstanding 7 30 section 364.3, a municipal infraction arising from 7 31 noncompliance with a pretreatment standard or 7 32 requirement, referred to in 40 C.F.R. } 403.8, by an 7 33 industrial user may be punishable by a civil penalty 7 34 of not more than one thousand dollars for each day a 7 35 violation exists or continues. 7 36 DIVISION VII 7 37 TRANSACTION FEE 7 38 Sec. 25. NEW SECTION. 331.605C ELECTRONIC 7 39 TRANSACTION FEE – AUDIT. 7 40 1. For the fiscal year beginning July 1, 2003, and 7 41 ending June 30, 2004, the recorder shall collect a fee 7 42 of five dollars for each recorded transaction for 7 43 which a fee is paid pursuant to section 331.604 to be 7 44 used for the purposes of planning and implementing 7 45 electronic recording and electronic transactions in 7 46 each county and developing county and statewide 7 47 internet websites to provide electronic access to 7 48 records and information. 7 49 2. Beginning July 1, 2004, the recorder shall 7 50 collect a fee of one dollar for each recorded 8 1 transaction for which a fee is paid pursuant to 8 2 section 331.604 to be used for the purpose of paying 8 3 the county's ongoing costs of maintaining the systems 8 4 developed and implemented under subsection 1. 8 5 3. The county treasurer, on behalf of the 8 6 recorder, shall establish and maintain an interest- 8 7 bearing account into which all moneys collected 8 8 pursuant to subsections 1 and 2 shall be deposited. 8 9 4. The state government electronic transaction 8 10 fund is established in the office of the treasurer of 8 11 state under the control of the treasurer of state. 8 12 Moneys deposited into the fund are not subject to 8 13 section 8.33. Notwithstanding section 12C.7, interest 8 14 or earnings on moneys in the state government 8 15 electronic transaction fund shall be credited to the 8 16 fund. Moneys in the state government electronic 8 17 transaction fund are not subject to transfer, 8 18 appropriation, or reversion to any other fund, or any 8 19 other use except as provided in this subsection. The 8 20 treasurer of state shall enter into a contract with 8 21 the Iowa state association of counties affiliate 8 22 representing county recorders to develop, implement, 8 23 and maintain a statewide internet website for purposes 8 24 of providing electronic access to records and 8 25 information recorded or filed by county recorders. On 8 26 a monthly basis, the county treasurer shall pay one 8 27 dollar of each fee collected pursuant to subsection 1 8 28 to the treasurer of state for deposit into the state 8 29 government electronic transaction fund. Moneys 8 30 credited to the state government electronic 8 31 transaction fund are appropriated to the treasurer of 8 32 state to be used for contract costs. This subsection 8 33 is repealed June 30, 2004. 8 34 5. The pooled local government electronic 8 35 transaction fund is established in the office of the 8 36 treasurer of state under control of the treasurer of 8 37 state. Moneys deposited into the fund are not subject 8 38 to section 8.33. Notwithstanding section 12C.7, 8 39 interest or earnings on moneys in the pooled local 8 40 government electronic transaction fund shall be 8 41 credited to the fund. Moneys in the fund are not 8 42 subject to transfer, appropriation, or reversion to 8 43 any other fund, or any other use except as provided in 8 44 this subsection. On a quarterly basis, the county 8 45 treasurer shall pay four dollars of each fee collected 8 46 pursuant to subsection 1 and all fees collected 8 47 pursuant to subsection 2, to the treasurer of state 8 48 for deposit into the pooled local government 8 49 electronic transaction fund. Moneys credited to the 8 50 pooled local government electronic transaction fund 9 1 are appropriated to the treasurer of state to be 9 2 distributed equally to all counties and paid to the 9 3 county treasurers of each county within thirty days 9 4 after the moneys are received by the treasurer of 9 5 state. Moneys received by a county treasurer pursuant 9 6 to this subsection shall be deposited into the account 9 7 established and maintained by the county treasurer on 9 8 behalf of the county recorder under subsection 3, and 9 9 shall be used by the county recorder for the purposes 9 10 set forth in subsections 1 and 2. 9 11 6. The recorder shall make available any 9 12 information required by the county auditor or auditor 9 13 of state concerning the fees collected under this 9 14 section for the purposes of determining the amount of 9 15 fees collected and the uses for which such fees are 9 16 expended. 9 17 DIVISION VIII 9 18 LOCAL GOVERNMENT LEASES 9 19 Sec. 26. Section 346.27, Code 2003, is amended by 9 20 adding the following new subsection: 9 21 NEW SUBSECTION. 26. Any incorporating unit may 9 22 enter into a lease with an authority that the 9 23 authority and the incorporating unit determine is 9 24 necessary and convenient to effectuate their purposes 9 25 and the purposes of this section. The power to enter 9 26 into leases under this section is in addition to other 9 27 powers granted to cities and counties to enter into 9 28 leases and the provisions of chapter 75, section 9 29 364.4, subsection 4, and section 331.301, subsection 9 30 10, are not applicable to leases entered into under 9 31 this section. 9 32 DIVISION IX 9 33 LOCAL GOVERNMENT INNOVATION FUND 9 34 Sec. 27. NEW SECTION. 8.64 LOCAL GOVERNMENT 9 35 INNOVATION FUND – COMMITTEE – LOANS. 9 36 1. The local government innovation fund is created 9 37 in the state treasury under the control of the 9 38 department of management for the purpose of 9 39 stimulating and encouraging innovation in local 9 40 government by the awarding of loans to cities and 9 41 counties. 9 42 2. The director of the department of management 9 43 shall establish a seven-member committee to be called 9 44 the local government innovation fund committee. 9 45 Committee members shall have expertise in local 9 46 government. The committee shall review all requests 9 47 for funds and approve loans of funds if the committee 9 48 determines that a city or county project that is the 9 49 subject of a request would result in cost savings, 9 50 innovative approaches to service delivery, or added 10 1 revenue to the city, county, or state. Eligible 10 2 projects are projects which cannot be funded from a 10 3 city's or county's operating budget without adversely 10 4 affecting the city's or county's normal service 10 5 levels. Preference shall be given to requests 10 6 involving the sharing of services between two or more 10 7 local governments. Projects may include, but are not 10 8 limited to, purchase of advanced technology, 10 9 contracting for expert services, and acquisition of 10 10 equipment or supplies. 10 11 3. A city or county seeking a loan from the local 10 12 government innovation fund shall complete an 10 13 application form designed by the local government 10 14 innovation fund committee which employs a return on 10 15 investment concept and demonstrates how the project 10 16 funded by the loan will result in reduced city, 10 17 county, or state general fund expenditures or how city 10 18 or county fund revenues will increase without an 10 19 increase in state costs. Minimum loan requirements 10 20 for city or county requests shall be determined by the 10 21 committee. 10 22 4. a. In order for the local government 10 23 innovation fund to be self-supporting, the local 10 24 government innovation fund committee shall establish 10 25 repayment schedules for each loan awarded. The loan 10 26 requirements shall be outlined in a chapter 28E 10 27 agreement executed between the state and the city or 10 28 county receiving the loan. A city or county shall 10 29 repay the loan over a period not to exceed five years, 10 30 with interest, at a rate to be determined by the local 10 31 government innovation fund committee. 10 32 b. The local government innovation fund committee 10 33 shall utilize the department of management, the 10 34 department of revenue and finance, or other source of 10 35 technical expertise designated by the committee to 10 36 certify savings projected for a local government 10 37 innovation fund project. 10 38 5. Notwithstanding section 12C.7, subsection 2, 10 39 interest or earnings on moneys deposited in the local 10 40 government innovation fund shall be credited to the 10 41 local government innovation fund. Notwithstanding 10 42 section 8.33, moneys appropriated to and moneys 10 43 remaining in the local government innovation fund at 10 44 the end of a fiscal year shall not revert to the 10 45 general fund of the state. 10 46 Sec. 28. LOCAL GOVERNMENT INNOVATION FUND 10 47 APPROPRIATION. There is appropriated from the general 10 48 fund of the state to the department of management for 10 49 the fiscal year beginning July 1, 2003, and ending 10 50 June 30, 2004, the following amount, or so much 11 1 thereof as is necessary, to be used for the purpose 11 2 designated: 11 3 For deposit in the local government innovation fund 11 4 created in section 8.64: 11 5 .................................................. $ 10,000,000 11 6 Notwithstanding section 8.64, subsection 4, as 11 7 enacted by this division of this Act, the local 11 8 government innovation fund committee may provide up to 11 9 20 percent of the amount appropriated in this section 11 10 in the form of forgivable loans or as grants for those 11 11 projects that propose a new and innovative sharing 11 12 initiative that would serve as an important model for 11 13 cities and counties. 11 14 DIVISION X 11 15 STUDY OF CITY AND COUNTY REGULATION BY THE 11 16 DEPARTMENT OF NATURAL RESOURCES 11 17 Sec. 29. STUDY. The legislative council shall 11 18 establish a study committee for the 2003 interim to 11 19 review the department of natural resources' 11 20 enforcement and penalty policies relating to 11 21 regulation of cities and counties. The study 11 22 committee shall review options for changing the 11 23 department's approach to enforcement from reliance on 11 24 punitive measures to a collaborative approach. In 11 25 addition, the amounts of fines shall be reviewed along 11 26 with the possibility of designating a portion of a 11 27 fine to be applied against the costs of compliance 11 28 with the departmental regulation. 11 29 DIVISION XI 11 30 CHARGE FOR CAPITAL ASSETS 11 31 Sec. 30. CHARGE FOR CAPITAL ASSETS. For the 11 32 fiscal year beginning July 1, 2003, and ending June 11 33 30, 2004, the department of management shall levy a 11 34 charge against departments and establishments, as 11 35 defined in section 8.2, for indirect costs associated 11 36 with state ownership of land, buildings, equipment, or 11 37 other capital assets controlled by a department or 11 38 establishment. The charges shall not be levied 11 39 against capital assets that are subject to charges 11 40 levied by the department of administrative services, 11 41 if the department is established by law, or against 11 42 capital assets controlled by the state board of 11 43 regents. Moneys received as a result of charges made 11 44 under this section shall be transferred to the fund 11 45 from which the moneys were originally appropriated. 11 46 The total amount of charges levied under this section 11 47 that are associated with appropriations made from the 11 48 general fund of the state for the fiscal year shall 11 49 not exceed $1,720,000. 11 50 Sec. 31. CHARGE FOR CAPITAL – APPROPRIATIONS 12 1 REDUCTION – STATE BOARD OF REGENTS – STUDY. 12 2 1. In lieu of applying a charge for capital assets 12 3 to the institutions under the control of the state 12 4 board of regents as otherwise provided in this 12 5 division for executive branch agencies, the 12 6 appropriations made from the general fund of the state 12 7 to the state board of regents for the general 12 8 university operating budgets at the state university 12 9 of Iowa, Iowa state university of science and 12 10 technology, and university of northern Iowa, in 2003 12 11 Iowa Acts, House File 662, section 9, subsections 2, 12 12 3, and 4, are reduced by $17,880,000. The state board 12 13 of regents shall apply the reduction as follows: 12 14 state university of Iowa, 46.7 percent, Iowa state 12 15 university of science and technology, 36.8 percent, 12 16 and university of northern Iowa, 16.5 percent. 12 17 2. The legislative council shall authorize a study 12 18 for the 2003 legislative interim on the policy option 12 19 of levying charges for capital assets against all 12 20 state agencies, including the state board of regents. 12 21 The study recommendations and findings shall include 12 22 but are not limited to identification of the capital 12 23 assets that should be subject to charges and how 12 24 capital assets funded by sources other than state 12 25 funding should be charged. The study report, 12 26 including findings and recommendations, shall be 12 27 submitted to the general assembly for consideration 12 28 during the 2004 legislative session. The study shall 12 29 be conducted by a study committee consisting of the 12 30 following: one member designated by the state board 12 31 of regents, one member representing the department of 12 32 management designated by the department's director, 12 33 one member representing the state department of 12 34 transportation appointed by the department's director, 12 35 one member representing the judicial branch appointed 12 36 by the chief justice of the supreme court, one member 12 37 who is a member of the general assembly jointly 12 38 appointed by the majority leader of the senate and the 12 39 speaker of the house of representatives, and one 12 40 member who is a member of the general assembly jointly 12 41 appointed by the minority leader of the senate and the 12 42 minority leader of the house of representatives. A 12 43 chairperson or cochairpersons shall be designated by 12 44 the legislative council. 12 45 DIVISION XII 12 46 CHARTER AGENCIES 12 47 Sec. 32. NEW SECTION. 7J.1 CHARTER AGENCIES. 12 48 1. DESIGNATION OF CHARTER AGENCIES – PURPOSE. 12 49 The governor may, by executive order, designate up to 12 50 five state departments or agencies, as described in 13 1 section 7E.5, other than the department of 13 2 administrative services, if the department is 13 3 established in law, or the department of management, 13 4 as a charter agency by July 1, 2003. The designation 13 5 of a charter agency shall be for a period of five 13 6 years which shall terminate as of June 30, 2008. The 13 7 purpose of designating a charter agency is to grant 13 8 the agency additional authority as provided by this 13 9 chapter while reducing the total appropriations to the 13 10 agency. 13 11 2. CHARTER AGENCY DIRECTORS. 13 12 a. Prior to each fiscal year, or as soon 13 13 thereafter as possible, the governor and each director 13 14 of a designated charter agency shall enter into an 13 15 annual performance agreement which shall set forth 13 16 measurable organization and individual goals for the 13 17 director in key operational areas of the director's 13 18 agency. The annual performance agreement shall be 13 19 made public and a copy of the agreement shall be 13 20 submitted to the general assembly. 13 21 b. In addition to the authority granted the 13 22 governor as to the appointment and removal of a 13 23 director of an agency that is a charter agency, the 13 24 governor may remove a director of a charter agency for 13 25 misconduct or for failure to achieve the performance 13 26 goals set forth in the annual performance agreement. 13 27 c. Notwithstanding any provision of law to the 13 28 contrary, the governor may set the salary of a 13 29 director of a charter agency under the pay plan for 13 30 exempt positions in the executive branch of 13 31 government. In addition, the governor may authorize 13 32 the payment of a bonus to a director of a charter 13 33 agency in an amount not in excess of fifty percent of 13 34 the director's annual rate of pay, based upon the 13 35 governor's evaluation of the director's performance in 13 36 relation to the goals set forth in the annual 13 37 performance agreement. 13 38 d. A director of a charter agency may authorize 13 39 the payment of bonuses to employees of the charter 13 40 agency in a total amount not in excess of fifty 13 41 percent of the director's annual rate of pay, based 13 42 upon the director's evaluation of the employees' 13 43 performance. 13 44 3. APPROPRIATIONS AND ASSET MANAGEMENT. 13 45 a. It is the intent of the general assembly that 13 46 appropriations to a charter agency for any fiscal year 13 47 shall be reduced, with a target reduction of ten 13 48 percent for each charter agency, from the 13 49 appropriation that would otherwise have been enacted 13 50 for that charter agency. 14 1 b. Notwithstanding any provision of law to the 14 2 contrary, proceeds from the sale or lease of capital 14 3 assets that are under the control of a charter agency 14 4 shall be retained by the charter agency and used for 14 5 such purposes within the scope of the responsibilities 14 6 of the charter agency. 14 7 c. Notwithstanding section 8.33, one-half of all 14 8 unencumbered or unobligated balances of appropriations 14 9 made for each fiscal year of that fiscal period to the 14 10 charter agency shall not revert to the state treasury 14 11 or to the credit of the funds from which the 14 12 appropriations were made. 14 13 d. For the fiscal period beginning July 1, 2003, 14 14 and ending June 30, 2005, a charter agency is not 14 15 subject to a uniform reduction ordered by the governor 14 16 in accordance with section 8.31. 14 17 4. PERSONNEL MANAGEMENT. 14 18 a. Notwithstanding any provision of law to the 14 19 contrary, a charter agency shall not be subject to any 14 20 limitation relating to the number of or pay grade 14 21 assigned to its employees, including any limitation on 14 22 the number of full-time equivalent positions as 14 23 defined by section 8.36A. 14 24 b. A charter agency may waive any personnel rule 14 25 and may exercise the authority granted to the 14 26 department of personnel, or its successor, relating to 14 27 personnel management concerning employees of the 14 28 charter agency, subject to any restrictions on such 14 29 authority as to employees of the charter agency 14 30 covered by a collective bargaining agreement. The 14 31 exclusive representative of employees of a charter 14 32 agency may enter into agreements with the charter 14 33 agency to grant the charter agency the authority 14 34 described in this paragraph. A waiver of a rule 14 35 pursuant to this subsection shall be indexed, filed, 14 36 and made available for public inspection in the same 14 37 manner as provided in section 17A.9A, subsection 4. 14 38 5. PROCUREMENT AND GENERAL SERVICES. A charter 14 39 agency may waive any administrative rule regarding 14 40 procurement, fleet management, printing and copying, 14 41 or maintenance of buildings and grounds, and may 14 42 exercise the authority of the department of general 14 43 services, or its successor, as it relates to the 14 44 physical resources of the state. A waiver of a rule 14 45 pursuant to this subsection shall be indexed, filed, 14 46 and made available for public inspection in the same 14 47 manner as provided in section 17A.9A, subsection 4. 14 48 6. INFORMATION TECHNOLOGY. A charter agency may 14 49 waive any administrative rule regarding the 14 50 acquisition and use of information technology and may 15 1 exercise the powers of the information technology 15 2 department, or its successor, as it relates to 15 3 information technology. A waiver of a rule pursuant 15 4 to this subsection shall be indexed, filed, and made 15 5 available for public inspection in the same manner as 15 6 provided in section 17A.9A, subsection 4. 15 7 7. RULE FLEXIBILITY. 15 8 a. A charter agency may temporarily waive or 15 9 suspend the provisions of any administrative rule if 15 10 strict compliance with the rule impacts the ability of 15 11 the charter agency requesting the waiver or suspension 15 12 to perform its duties in a more cost-efficient manner 15 13 and the requirements of this subsection are met. 15 14 b. The procedure for granting a temporary waiver 15 15 or suspension of any administrative rule shall be as 15 16 follows: 15 17 (1) The charter agency may waive or suspend a rule 15 18 if the agency finds, based on clear and convincing 15 19 evidence, all of the following: 15 20 (a) The application of the rule poses an undue 15 21 financial hardship on the applicable charter agency. 15 22 (b) The waiver or suspension from the requirements 15 23 of a rule in the specific case would not prejudice the 15 24 substantial legal rights of any person. 15 25 (c) Substantially equal protection of public 15 26 health, safety, and welfare will be afforded by a 15 27 means other than that prescribed in the particular 15 28 rule for which the waiver or suspension is requested. 15 29 (d) The waiver or suspension would not result in a 15 30 violation of due process, a violation of state or 15 31 federal law, or a violation of the state or federal 15 32 constitution. 15 33 (2) If a charter agency proposes to grant a waiver 15 34 or suspension, the charter agency shall draft the 15 35 waiver or suspension so as to provide the narrowest 15 36 exception possible to the provisions of the rule and 15 37 may place any condition on the waiver or suspension 15 38 that the charter agency finds desirable to protect the 15 39 public health, safety, and welfare. The charter 15 40 agency shall then submit the waiver or suspension to 15 41 the administrative rules review committee for 15 42 consideration at the committee's next scheduled 15 43 meeting. 15 44 (3) The administrative rules review committee 15 45 shall review the proposed waiver or suspension at the 15 46 committee's next scheduled meeting following 15 47 submission of the proposal and may either take no 15 48 action or affirmatively approve the waiver or 15 49 suspension, or delay the effective date of the waiver 15 50 or suspension in the same manner as for rules as 16 1 provided in section 17A.4, subsection 5, and section 16 2 17A.8, subsection 9. If the administrative rules 16 3 review committee either approves or takes no action 16 4 concerning the proposed waiver or suspension, the 16 5 waiver or suspension may become effective no earlier 16 6 than the day following the meeting. If the 16 7 administrative rules review committee delays the 16 8 effective date of the waiver or suspension but no 16 9 further action is taken to rescind the waiver or 16 10 suspension, the proposed waiver or suspension may 16 11 become effective no earlier than upon the conclusion 16 12 of the delay. The administrative rules review 16 13 committee shall notify the applicable charter agency 16 14 of its action concerning the proposed waiver or 16 15 suspension. 16 16 (4) Copies of the grant or denial of a waiver or 16 17 suspension under this subsection shall be filed and 16 18 made available to the public by the applicable charter 16 19 agency. 16 20 c. A waiver or suspension granted pursuant to this 16 21 subsection shall be for a period of time not to exceed 16 22 twelve months or until June 30, 2008, whichever first 16 23 occurs, and as determined by the applicable charter 16 24 agency. A renewal of a temporary waiver or suspension 16 25 granted pursuant to this section shall be granted or 16 26 denied in the same manner as the initial waiver or 16 27 suspension. 16 28 8. REPORTING REQUIREMENTS. 16 29 a. Each charter agency shall submit a written 16 30 report to the general assembly by December 31 of each 16 31 year summarizing the activities of the charter agency 16 32 for the preceding fiscal year. The report shall 16 33 include information concerning the expenditures of the 16 34 agency and the number of filled full-time equivalent 16 35 positions during the preceding fiscal year. The 16 36 report shall include information relating to the 16 37 actions taken by the agency pursuant to the authority 16 38 granted by this section. 16 39 b. By January 15, 2008, the governor shall submit 16 40 a written report to the general assembly on the 16 41 operation and effectiveness of this chapter and the 16 42 costs and savings associated with the implementation 16 43 of this chapter. The report shall include any 16 44 recommendations about extending the chapter's 16 45 effectiveness beyond June 30, 2008. 16 46 9. DEPARTMENT OF MANAGEMENT REVIEW. Each proposed 16 47 waiver or suspension of an administrative rule as 16 48 authorized by this section shall be submitted to the 16 49 department of management for review prior to the 16 50 waiver or suspension becoming effective. The director 17 1 of the department of management may disapprove the 17 2 waiver or suspension if, based on clear and convincing 17 3 evidence, the director determines that the suspension 17 4 or waiver would result in an adverse financial impact 17 5 on the state. 17 6 Sec. 33. NEW SECTION. 7J.2 CHARTER AGENCY LOAN 17 7 FUND. 17 8 1. A charter agency loan fund is created in the 17 9 state treasury under the control of the department of 17 10 management for the purpose of providing funding to 17 11 support innovation by those state agencies designated 17 12 as charter agencies in accordance with section 7J.1. 17 13 Innovation purposes shall include but are not limited 17 14 to training, development of outcome measurement 17 15 systems, management system modifications, and other 17 16 modifications associated with transition of operations 17 17 to charter agency status. Moneys in the fund are 17 18 appropriated to the department of management for the 17 19 purposes described in this subsection. 17 20 2. A charter agency requesting a loan from the 17 21 fund shall complete an application process designated 17 22 by the director of the department of management. 17 23 Minimum loan requirements for charter agency requests 17 24 shall be determined by the director. 17 25 3. In order for the fund to be self-supporting, 17 26 the director of the department of management shall 17 27 establish repayment schedules for each loan awarded. 17 28 An agency shall repay the loan over a period not to 17 29 exceed five years with interest, at a rate to be 17 30 determined by the director. 17 31 4. Notwithstanding section 12C.7, subsection 2, 17 32 interest or earnings on moneys deposited in the 17 33 charter agency loan fund shall be credited to the 17 34 charter agency loan fund. Notwithstanding section 17 35 8.33, moneys credited to the charter agency loan fund 17 36 shall not revert to the fund from which appropriated 17 37 at the close of a fiscal year. 17 38 Sec. 34. NEW SECTION. 7J.3 REPEAL. This chapter 17 39 is repealed June 30, 2008. 17 40 Sec. 35. CHARTER AGENCY APPROPRIATIONS. 17 41 1. Notwithstanding any provision of law to the 17 42 contrary, the total appropriations from the general 17 43 fund of the state to those departments and agencies 17 44 designated as charter agencies for the fiscal year 17 45 beginning July 1, 2003, and ending June 30, 2004, as 17 46 provided by the appropriation to those agencies as 17 47 enacted by the Eightieth General Assembly, 2003 17 48 Regular Session, shall be reduced by $15,000,000. The 17 49 department of management shall apply the appropriation 17 50 reductions, with a target of a 10 percent reduction 18 1 for each charter agency, as necessary to achieve the 18 2 overall reduction amount and shall make this 18 3 information available to the legislative fiscal 18 4 committee and the legislative fiscal bureau. It is 18 5 the intent of the general assembly that appropriations 18 6 to a charter agency in subsequent fiscal years shall 18 7 be similarly adjusted from the appropriation that 18 8 would otherwise have been enacted. 18 9 2. There is appropriated from the general fund of 18 10 the state to the department of management for the 18 11 fiscal year beginning July 1, 2003, and ending June 18 12 30, 2004, the following amount, or so much thereof as 18 13 is necessary, to be used for the purposes designated: 18 14 For deposit in the charter agency loan fund created 18 15 in section 7J.2: 18 16 .................................................. $ 3,000,000 18 17 3. For the fiscal year beginning July 1, 2003, and 18 18 ending June 30, 2004, if the actual amount of revenue 18 19 received by a charter agency exceeds the revenue 18 20 amount budgeted for that charter agency by the 18 21 governor and the general assembly, the charter agency 18 22 may consider the excess amount to be repayment 18 23 receipts as defined in section 8.2. 18 24 Sec. 36. EFFECTIVE DATE. This division of this 18 25 Act, being deemed of immediate importance, takes 18 26 effect upon enactment. 18 27 DIVISION XIII 18 28 HEALTH INSURANCE INCENTIVE 18 29 Sec. 37. STATE EMPLOYEE HEALTH INSURANCE COSTS – 18 30 INCENTIVE PROGRAM. The department of personnel, or 18 31 its successor, may establish, with the approval of the 18 32 executive council, an incentive program for state 18 33 employees to encourage the reduction of health 18 34 insurance costs for the fiscal year beginning July 1, 18 35 2003. If established, the incentive program shall 18 36 provide that an amount equal to one-half of any 18 37 savings realized through implementation of the program 18 38 shall be distributed to applicable insured state 18 39 employees in a manner established by the incentive 18 40 program. The department shall provide the legislative 18 41 government oversight committee with a copy of the 18 42 proposed incentive program submitted to the executive 18 43 council for approval. The department shall also 18 44 submit a written update to the legislative government 18 45 oversight committee by December 31, 2003, concerning 18 46 its progress in implementing an incentive program. 18 47 DIVISION XIV 18 48 AREA EDUCATION AGENCIES 18 49 Sec. 38. AREA EDUCATION AGENCY SERVICE DELIVERY 18 50 TASK FORCE. 19 1 1. The department of education shall establish a 19 2 task force to study the delivery of media services, 19 3 educational services, and special education support 19 4 services by the area education agencies. The task 19 5 force shall study issues including, but not limited 19 6 to, all of the following: 19 7 a. The potentiality of a fee for services, such as 19 8 cooperative purchasing. 19 9 b. The potential effects of allowing school 19 10 districts to petition to join a noncontiguous area 19 11 education agency. 19 12 c. Opportunities for area education agencies to 19 13 collaborate with community colleges and other higher 19 14 education institutions, local libraries, and other 19 15 community providers. 19 16 d. Special education delivery by area education 19 17 agencies and school districts, including the state's 19 18 success in serving students identified as level I. 19 19 This portion of the study shall also include a review 19 20 of identification of students as level I; remediation, 19 21 the success of preventative programs, including but 19 22 not limited to, the early intervention block grant 19 23 program; intensive instruction and tutoring; and 19 24 appropriate reading instruction methodologies. 19 25 e. Reduction of special education funding 19 26 deficits, including a review of the use of state and 19 27 federal funds for special education and related 19 28 preventative programs. 19 29 2. The task force membership shall include all of 19 30 the following: 19 31 a. The director of the department of education or 19 32 the director's designee. 19 33 b. An area education agency administrator. 19 34 c. A person representing the interests of special 19 35 education students. 19 36 d. A superintendent of a district with an 19 37 enrollment of more than six hundred students. 19 38 e. A superintendent of a district with an 19 39 enrollment of six hundred or fewer students. 19 40 f. A person from the private sector with 19 41 experience in developing plans for cost savings. 19 42 g. A person who is a private provider of special 19 43 education services. 19 44 h. An administrator of an accredited nonpublic 19 45 school. 19 46 i. Ten members of the general assembly, including 19 47 five senators appointed by the president of the senate 19 48 after consultation with the majority and minority 19 49 leaders of the senate, and five representatives 19 50 appointed by the speaker of the house of 20 1 representatives after consultation with the majority 20 2 and minority leaders of the house of representatives. 20 3 3. The department shall submit its findings and 20 4 recommendations in a report to the chairpersons and 20 5 ranking members of the senate and house standing 20 6 committees on education and the joint appropriations 20 7 subcommittee on education by December 15, 2003. 20 8 Sec. 39. SPECIAL EDUCATION SUPPORT SERVICES 20 9 BALANCE REDUCTION. 20 10 1. For the fiscal year beginning July 1, 2003, and 20 11 ending June 30, 2004, area education agency special 20 12 education support services fund balances shall be 20 13 reduced, with each area education agency remitting to 20 14 the state the following designated amount: 20 15 a. Area Education Agency 1 ................... $ 517,120 20 16 b. Area Education Agency 4 ................... $ 221,604 20 17 c. Area Education Agencies 3 and 5, and their 20 18 successor area education agency .................. $ 995,807 20 19 d. Area Education Agencies 2, 6, 7, and their 20 20 successor area education agency .................. $ 913,710 20 21 e. Area Education Agency 9 ................... $ 468,138 20 22 f. Area Education Agency 10 .................. $ 964,357 20 23 g. Area Education Agency 11 .................. $ 3,620,018 20 24 h. Area Education Agency 12 .................. $ 512,949 20 25 i. Area Education Agency 13 .................. $ 666,285 20 26 j. Area Education Agency 14 .................. $ 405,065 20 27 k. Area Education Agency 15 .................. $ 413,282 20 28 l. Area Education Agency 16 .................. $ 301,664 20 29 2. Notwithstanding the provisions of section 20 30 257.37, an area education agency may use the funds 20 31 determined to be available under section 257.35 in a 20 32 manner which it believes is appropriate to best 20 33 maintain the level of required area education agency 20 34 special education services. An area education agency 20 35 may also use unreserved fund balances for media 20 36 services or education services in a manner which it 20 37 believes is appropriate to best maintain the level of 20 38 required area education agency special education 20 39 services. 20 40 Sec. 40. Section 257.35, subsection 2, Code 2003, 20 41 is amended to read as follows: 20 42 2. Notwithstanding subsection 1, the state aid for 20 43 area education agencies and the portion of the 20 44 combined district cost calculated for these agencies 20 45 foreachthe fiscal yearof the fiscal period20 46beginning July 1, 2002, and ending June 30, 200420 47 beginning July 1, 2002, and each succeeding fiscal 20 48 year, shall be reduced by the department of management 20 49 by seven million five hundred thousand dollars. The 20 50 reduction for each area education agency shall be 21 1 equal to the reduction that the agency received in the 21 2 fiscal year beginning July 1, 2001. 21 3 Sec. 41. Section 257.35, Code 2003, is amended by 21 4 adding the following new subsection: 21 5 NEW SUBSECTION. 3. Notwithstanding subsection 1, 21 6 and in addition to the reduction applicable pursuant 21 7 to subsection 2, the state aid for area education 21 8 agencies and the portion of the combined district cost 21 9 calculated for these agencies for the fiscal year 21 10 beginning July 1, 2003, and ending June 30, 2004, 21 11 shall be reduced by the department of management by 21 12 ten million dollars. The department shall calculate a 21 13 reduction such that each area education agency shall 21 14 receive a reduction proportionate to the amount that 21 15 it would otherwise have received under this section if 21 16 the reduction imposed pursuant to this subsection did 21 17 not apply. 21 18 Sec. 42. Section 257.37, subsection 6, Code 2003, 21 19 is amended to read as follows: 21 20 6. For the budgetyearsyear beginning July 1, 21 21 2002, andJuly 1, 2003each succeeding budget year, 21 22 notwithstanding the requirements of this section for 21 23 determining the budgets and funding of media services 21 24 and education services, an area education agency may, 21 25 within the limits of the total of the funds provided 21 26 for the budget years pursuant to section 257.35, 21 27 expend for special education support services an 21 28 amount that exceeds the payment for special education 21 29 support services pursuant to section 257.35 in order 21 30 to maintain the level of required special education 21 31 support services in the area education agency. 21 32 Sec. 43. EFFECTIVE DATE. This division of this 21 33 Act, being deemed of immediate importance, takes 21 34 effect upon enactment. 21 35 DIVISION XV 21 36 CHILD WELFARE SERVICES 21 37 Sec. 44. CHILD WELFARE SERVICES SYSTEM REDESIGN. 21 38 1. PURPOSE. The department of human services 21 39 shall initiate a process for improving the outcomes 21 40 for families in this state who become involved with 21 41 the state system for child welfare and juvenile 21 42 justice by implementing a system redesign to 21 43 transition to an outcomes-based system for children 21 44 identified in this section. The outcomes-based system 21 45 shall be organized based upon the federal and state 21 46 child welfare outcomes and expectations and shall 21 47 address the following purposes for the children and 21 48 families involved with the state system: 21 49 a. Safety. 21 50 (1) Children are, first and foremost, protected 22 1 from abuse and neglect. 22 2 (2) Children are safely maintained in the 22 3 children's homes with family, whenever possible. 22 4 b. Permanency. 22 5 (1) Children have permanency and stability in the 22 6 children's living situations. 22 7 (2) The continuity of children's family 22 8 relationships and community connections is preserved. 22 9 c. Child and family well-being. 22 10 (1) Family capacity to provide for the needs of 22 11 the children who are part of the family is enhanced. 22 12 (2) Children receive appropriate services to meet 22 13 the children's educational needs. 22 14 (3) Children receive additional services that are 22 15 appropriate to meet the children's physical and mental 22 16 health needs. 22 17 (4) Youth who are becoming adults and leaving the 22 18 service system for children will receive appropriate 22 19 services to make the transition to become self- 22 20 sufficient and contributing members of the community. 22 21 d. Public safety. Communities are protected from 22 22 juvenile crime. 22 23 e. Accountability. Communities are made whole 22 24 through completion of community service activities 22 25 assigned to juvenile offenders. 22 26 f. Rehabilitation. Youth receive appropriate 22 27 services and make measurable progress toward acquiring 22 28 the skills that are essential to law-abiding, 22 29 productive citizens. 22 30 2. CHILDREN INVOLVED. The service system redesign 22 31 shall address the needs of children who are referred 22 32 to the department of human services or juvenile court 22 33 services, including but not limited to all of the 22 34 following: 22 35 a. Children adjudicated as a child in need of 22 36 assistance under chapter 232. 22 37 b. Children adjudicated delinquent under chapter 22 38 232 or alleged to have committed a delinquent act and 22 39 identified in a police report or other formal 22 40 complaint received by juvenile court services. 22 41 c. Children subject to emergency removal under 22 42 chapter 232 or placed for emergency care under section 22 43 232.20 or 232.21. 22 44 d. Children identified through a child abuse 22 45 assessment conducted in accordance with section 22 46 232.71B as being at risk of harm from maltreatment due 22 47 to child abuse. 22 48 3. DESIGN PRINCIPLES. The service system redesign 22 49 shall incorporate all of the following design 22 50 principles: 23 1 a. Outcomes can be achieved in the most efficient 23 2 and cost-effective manner possible. 23 3 b. The roles of public and private child welfare 23 4 staff and the state institutions in the redesigned 23 5 system's delivery model are clarified. 23 6 c. The financing structure maximizes state and 23 7 federal funding with as much flexibility as possible 23 8 and directs funds to services and other support based 23 9 upon the needs of children and families. 23 10 d. The methodology for purchasing performance 23 11 outcomes includes definitions of performance 23 12 expectations, reimbursement provisions, financial 23 13 incentives, provider flexibility provisions, and 23 14 viable protection provisions for children, the state, 23 15 and providers. 23 16 e. The regulatory and contract monitoring 23 17 approaches are designed to assure effective oversight 23 18 and quality and to address federal program and budget 23 19 accountability expectations, with appropriate 23 20 recognition of the need to balance the impact upon 23 21 service providers. 23 22 f. The administrative aspects address system 23 23 planning and support, data collection, management 23 24 information systems, training, policy development, and 23 25 budgeting. 23 26 4. DESIGN CONSIDERATIONS. The service system 23 27 redesign shall address all of the following design 23 28 considerations: 23 29 a. Successful outcome and performance-based system 23 30 changes made in other states and communities are 23 31 incorporated. 23 32 b. Linkages are made with the existing community 23 33 planning efforts and partnerships are promoted with 23 34 parents, the courts, the department, and service 23 35 providers. The redesign shall build upon successful 23 36 Iowa programs such as community partnerships for 23 37 protecting children, child welfare funding 23 38 decategorization projects, and quality service 23 39 reviews. 23 40 c. Federal program and budget accountability 23 41 expectations are addressed. 23 42 d. Linkages with other critical service systems 23 43 are effectively incorporated, including but not 23 44 limited to the systems for mental health, domestic 23 45 abuse, and substance abuse services, and the judicial 23 46 branch. 23 47 e. Options are considered for implementation of an 23 48 acuity-based, case rate system that offers bonuses or 23 49 other incentives for providers that achieve identified 23 50 results and for providers that are able to develop 24 1 strategic and collaborative relationships with other 24 2 providers. 24 3 f. Policy options are developed to address the 24 4 needs of difficult-to-treat children, such as no- 24 5 eject, no-reject time periods. 24 6 g. Implementation of evidence-based and continuous 24 7 learning practices are promoted in the public and 24 8 private sectors in order to measure and improve 24 9 outcomes. 24 10 5. REDESIGN PLANNING PROCESS. The department of 24 11 human services shall implement an inclusive process 24 12 for the service system redesign utilizing a 24 13 stakeholder panel to involve a broad spectrum of input 24 14 into the redesign planning, design, implementation, 24 15 and evaluation process. The stakeholder panel 24 16 membership may include but is not limited to 24 17 representation from all of the following: 24 18 a. Service consumers. 24 19 b. Judicial branch and justice system. 24 20 c. Service providers. 24 21 d. Community-based collaboration efforts such as 24 22 child welfare decategorization projects and community 24 23 partnership for child protection projects. 24 24 e. Foster and adoptive parents. 24 25 f. Advocacy groups. 24 26 g. Departmental staff. 24 27 h. Education and special education practitioners. 24 28 i. Others. 24 29 6. LEGISLATIVE MONITORING. A six-member 24 30 legislative committee is established to monitor the 24 31 service system redesign planning and implementation. 24 32 The members shall be appointed as follows: two 24 33 members by the senate majority leader, one member by 24 34 the senate minority leader, two members by the speaker 24 35 of the house of representatives, and one member by the 24 36 minority leader of the house of representatives. The 24 37 committee shall provide advice and consultation to the 24 38 department and consider any legislative changes that 24 39 may be needed for implementation. 24 40 7. IMPLEMENTATION. The following implementation 24 41 provisions apply to the service system redesign: 24 42 a. Implementation of the redesign plan shall begin 24 43 no later than January 1, 2004. 24 44 b. The department of human services may adopt 24 45 emergency rules under section 17A.4, subsection 2, and 24 46 section 17A.5, subsection 2, paragraph "b", to 24 47 implement the provisions of this section and the rules 24 48 shall be effective immediately upon filing or on a 24 49 later date specified in the rules, unless the 24 50 effective date is delayed by the administrative rules 25 1 review committee. Any rules adopted in accordance 25 2 with this paragraph shall not take effect before the 25 3 rules are reviewed by the administrative rules review 25 4 committee. The delay authority provided to the 25 5 administrative rules review committee under section 25 6 17A.4, subsection 5, and section 17A.8, subsection 9, 25 7 shall be applicable to a delay imposed under this 25 8 paragraph, notwithstanding a provision in those 25 9 sections making them inapplicable to section 17A.5, 25 10 subsection 2, paragraph "b". Any rules adopted in 25 11 accordance with this paragraph shall also be published 25 12 as a notice of intended action as provided in section 25 13 17A.4. 25 14 c. The director of human services shall seek any 25 15 federal waiver or federal plan amendment relating to 25 16 funding provided under Title IV-B, IV-E, or XIX of the 25 17 federal Social Security Act necessary to implement the 25 18 service system redesign. 25 19 8. STATUTORY REQUIREMENTS. The requirements of 25 20 sections 18.6 and 72.3 and the administrative rules 25 21 implementing section 8.47 are not applicable to the 25 22 services procurement process used to implement the 25 23 outcomes-based service system redesign in accordance 25 24 with this section. The department of human services 25 25 may enter into competitive negotiations and proposal 25 26 modifications with each successful contractor as 25 27 necessary to implement the provisions of this section. 25 28 9. APPROPRIATIONS REDUCTION. The appropriations 25 29 made from the general fund of the state to the 25 30 department of human services for the fiscal year 25 31 beginning July 1, 2003, and ending June 30, 2004, in 25 32 2003 Iowa Acts, House File 667, if enacted, for 25 33 services, staffing, and support related to the service 25 34 system redesign are reduced by $10,000,000. The 25 35 governor shall apply the appropriations reductions on 25 36 or before January 1, 2004, following consultation with 25 37 the director of human services, the council on human 25 38 services, and the legislative monitoring committee 25 39 established pursuant to this section. The 25 40 appropriations subject to reduction shall include but 25 41 are not limited to the appropriations made for child 25 42 and family services, field operations, medical 25 43 assistance program, and general administration. The 25 44 appropriations reductions applied by the governor 25 45 shall be reported to the general assembly on the date 25 46 the reductions are applied. If the judicial branch 25 47 reports a revision to the judicial branch budget for 25 48 juvenile court services making a reduction as a result 25 49 of the service system redesign, the amount of the 25 50 reductions applied by the governor shall be reduced by 26 1 the same amount. 26 2 Sec. 45. CHILD WELFARE SYSTEM REDESIGN. There is 26 3 appropriated from the general fund of the state to the 26 4 department of human services for the fiscal year 26 5 beginning July 1, 2003, and ending June 30, 2004, the 26 6 following amounts, or so much thereof as is necessary, 26 7 to be used for the purposes designated: 26 8 1. For training of service providers and 26 9 departmental employees in performance contracting, new 26 10 service roles, and other skills and information 26 11 related to the redesign of the child welfare service 26 12 system, and for the development of a statewide 26 13 information system for implementation of changes 26 14 associated with the service system redesign: 26 15 .................................................. $ 1,200,000 26 16 2. For deposit in a provider loan fund, which 26 17 shall be created in the office of the treasurer of 26 18 state under the authority of the department of human 26 19 services, to be used to assist child welfare service 26 20 providers with short-term cash flow needs: 26 21 .................................................. $ 1,000,000 26 22 Moneys in the provider loan fund are appropriated 26 23 to the department for use in accordance with this 26 24 subsection. The department shall determine the length 26 25 and interest rate for loans, if any. Loan repayment 26 26 proceeds shall be credited to the provider loan fund 26 27 and are appropriated to the department to be used for 26 28 other loans. 26 29 Sec. 46. Section 2C.9, Code 2003, is amended by 26 30 adding the following new subsection: 26 31 NEW SUBSECTION. 1A. Investigate, on complaint or 26 32 on the citizens' aide's own motion, any administrative 26 33 action of any person providing child welfare or 26 34 juvenile justice services under contract with an 26 35 agency that is subject to investigation by the 26 36 citizens' aide. The person shall be considered to be 26 37 an agency for purposes of the citizens' aide's 26 38 investigation. 26 39 DIVISION XVI 26 40 DEPARTMENT OF HUMAN SERVICES REINVENTION 26 41 Sec. 47. APPROPRIATIONS REDUCTION. The 26 42 appropriations made from the general fund of the state 26 43 for the fiscal year beginning July 1, 2003, and ending 26 44 June 30, 2004, to the department of human services in 26 45 2003 Iowa Acts, House File 667, if enacted, are 26 46 reduced by $300,000 to reflect the anticipated savings 26 47 from the electronic payment of benefits and billings 26 48 implemented pursuant to this division of this Act. 26 49 The governor shall apply the appropriations reductions 26 50 on or before January 1, 2004, following consultation 27 1 with the director of human services and the council on 27 2 human services. The appropriations reductions applied 27 3 by the governor shall be reported to the general 27 4 assembly on the date the reductions are applied. 27 5 Sec. 48. SYSTEM EFFICIENCIES – ELECTRONIC BILLING 27 6 AND PAYMENT – COMPATIBILITY – COMMUNICATIONS. 27 7 1. The department of human services shall develop 27 8 a plan to provide all provider payments under the 27 9 medical assistance program on an electronic basis by 27 10 June 30, 2005. 27 11 2. The department of human services shall submit a 27 12 plan to implement an electronic billing and payment 27 13 system for child care providers to the governor and 27 14 the general assembly by January 1, 2004. 27 15 3. In developing any billing, payment, or 27 16 eligibility systems, the department of human services 27 17 shall ensure that the systems are compatible. 27 18 4. The department of human services shall 27 19 investigate measures to increase effective and 27 20 efficient communications with clients, including but 27 21 not limited to reducing duplicative mailings, and 27 22 shall submit a report of recommendations to the 27 23 governor and the general assembly by January 1, 2004. 27 24 Sec. 49. MEDICAL ASSISTANCE PROGRAM REDESIGN. 27 25 1. The department of human services shall 27 26 establish a work group in cooperation with 27 27 representatives of the insurance industry to develop a 27 28 plan for the redesign of the medical assistance 27 29 program. In developing the redesign plan, the work 27 30 group shall consider all of the following: 27 31 a. Iowa's medical assistance program cannot be 27 32 sustained in a manner that provides care for 27 33 participants at the current rate of growth. 27 34 b. Iowans deserve a health care safety net that 27 35 provides health care that is timely, effective, and 27 36 responsive to individual needs. 27 37 c. Iowans would be better served, at a lower cost 27 38 to taxpayers, if persons who are at risk of becoming 27 39 medical assistance recipients due to their income, 27 40 health, and insurance status could be identified and 27 41 insured. 27 42 d. Iowa's children and families would benefit from 27 43 the use of a medical home model that links children 27 44 and families to an ongoing source of medical care that 27 45 ensures access to and appropriate utilization of 27 46 medical services including preventive services. 27 47 e. Iowa's senior population should have more 27 48 options available to address the population's health 27 49 care needs including home and community-based services 27 50 and assisted living. 28 1 2. The redesign plan shall include measures such 28 2 as providing state funding for health care spending 28 3 accounts for families in the medical assistance 28 4 program in order to provide incentives for effective 28 5 health care cost management, providing an insurance- 28 6 like benefit package for those individuals with 28 7 extensive medical needs that emphasizes flexible and 28 8 preventive care through case management, moving to an 28 9 acuity-based reimbursement system for dually eligible 28 10 seniors, and developing an evidence-based 28 11 pharmaceutical program. 28 12 3. The department shall submit a progress report 28 13 of the work group's recommendations for medical 28 14 assistance program redesign to the governor and the 28 15 general assembly by January 15, 2004. 28 16 Sec. 50. MEDICAL ASSISTANCE APPROPRIATION 28 17 REDUCTION. The appropriation made from the general 28 18 fund of the state for the fiscal year beginning July 28 19 1, 2003, and ending June 30, 2004, to the department 28 20 of human services in 2003 Iowa Acts, House File 667, 28 21 if enacted, for medical assistance is reduced by 28 22 $7,500,000. 28 23 Sec. 51. HOSPITAL TRUST FUND – MEDICAL ASSISTANCE 28 24 SUPPLEMENT. 28 25 1. Notwithstanding 2002 Iowa Acts, chapter 1003, 28 26 Second Extraordinary Session, sections 150 and 151, as 28 27 the sections relate to the hospital trust fund, moneys 28 28 shall not be transferred from the hospital trust fund 28 29 at the end of the fiscal year beginning July 1, 2003. 28 30 2. There is appropriated from the hospital trust 28 31 fund to the department of human services for the 28 32 fiscal year beginning July 1, 2003, and ending June 28 33 30, 2004, the following amount, or so much thereof as 28 34 is necessary to be used for the purposes designated: 28 35 To supplement the medical assistance appropriation 28 36 made in 2003 Iowa Acts, House File 667, if enacted: 28 37 .................................................. $ 14,000,000 28 38 The appropriation made in this subsection shall 28 39 include moneys in the hospital trust fund that remain 28 40 unencumbered or unobligated at the end of the fiscal 28 41 year beginning July 1, 2002, and ending June 30, 2003. 28 42 Sec. 52. IOWA JUVENILE HOME. The appropriation 28 43 made from the general fund of the state for the fiscal 28 44 year beginning July 1, 2003, and ending June 30, 2004, 28 45 to the department of human services in 2003 Iowa Acts, 28 46 House File 667, if enacted, for the Iowa juvenile home 28 47 at Toledo, is reduced by $410,540. 28 48 Sec. 53. STATE TRAINING SCHOOL. The appropriation 28 49 made from the general fund of the state for the fiscal 28 50 year beginning July 1, 2003, and ending June 30, 2004, 29 1 to the department of human services in 2003 Iowa Acts, 29 2 House File 667, if enacted, for the state training 29 3 school at Eldora is reduced by $1,239,227. 29 4 Sec. 54. INDEPENDENCE MHI. The appropriation made 29 5 from the general fund of the state for the fiscal year 29 6 beginning July 1, 2003, and ending June 30, 2004, to 29 7 the department of human services in 2003 Iowa Acts, 29 8 House File 667, if enacted, for the state mental 29 9 health institute at Independence, is reduced by 29 10 $544,192. 29 11 Sec. 55. NEW SECTION. 249A.32 PHARMACEUTICAL 29 12 SETTLEMENT ACCOUNT – MEDICAL ASSISTANCE PROGRAM. 29 13 1. A pharmaceutical settlement account is created 29 14 in the state treasury under the authority of the 29 15 department of human services. Moneys received from 29 16 settlements relating to provision of pharmaceuticals 29 17 under the medical assistance program shall be 29 18 deposited in the account. 29 19 2. Moneys in the account shall be used only as 29 20 provided in appropriations from the account to the 29 21 department for the purpose of technology upgrades 29 22 under the medical assistance program. 29 23 3. The account shall be separate from the general 29 24 fund of the state and shall not be considered part of 29 25 the general fund of the state. The moneys in the 29 26 account shall not be considered revenue of the state, 29 27 but rather shall be funds of the account. The moneys 29 28 in the account are not subject to reversion to the 29 29 general fund of the state under section 8.33 and shall 29 30 not be transferred, used, obligated, appropriated, or 29 31 otherwise encumbered, except to provide for the 29 32 purposes of this section. Notwithstanding section 29 33 12C.7, subsection 2, interest or earnings on moneys 29 34 deposited in the account shall be credited to the 29 35 account. 29 36 4. The treasurer of state shall provide a 29 37 quarterly report of account activities and balances to 29 38 the director. 29 39 Sec. 56. Section 256.7, subsection 10, Code 2003, 29 40 is amended to read as follows: 29 41 10. Adopt rules pursuant to chapter 17A relating 29 42 to educational programs and budget limitations for 29 43 educational programs pursuant to sections282.28,29 44 282.29, 282.30,and282.31, and 282.33. 29 45 Sec. 57. Section 282.32, Code 2003, is amended to 29 46 read as follows: 29 47 282.32 APPEAL. 29 48 An area education agency or local school district 29 49 may appeal a decision made pursuant to section282.2829 50or282.31 to the state board of education. The 30 1 decision of the state board is final. 30 2 Sec. 58. NEW SECTION. 282.33 FUNDING FOR 30 3 CHILDREN RESIDING IN STATE MENTAL HEALTH INSTITUTES OR 30 4 INSTITUTIONS. 30 5 1. A child who resides in an institution for 30 6 children under the jurisdiction of the director of 30 7 human services referred to in section 218.1, 30 8 subsection 3, 5, 7, or 8, and who is not enrolled in 30 9 the educational program of the district of residence 30 10 of the child, shall receive appropriate educational 30 11 services. The institution in which the child resides 30 12 shall submit a proposed program and budget based on 30 13 the average daily attendance of the children residing 30 14 in the institution to the department of education and 30 15 the department of human services by January 1 for the 30 16 next succeeding school year. The department of 30 17 education shall review and approve or modify the 30 18 proposed program and budget and shall notify the 30 19 department of revenue and finance of its action by 30 20 February 1. The department of revenue and finance 30 21 shall pay the approved budget amount to the department 30 22 of human services in monthly installments beginning 30 23 September 15 and ending June 15 of the next succeeding 30 24 school year. The installments shall be as nearly 30 25 equal as possible as determined by the department of 30 26 revenue and finance, taking into consideration the 30 27 relative budget and cash position of the state's 30 28 resources. The department of revenue and finance 30 29 shall pay the approved budget amount for the 30 30 department of human services from the moneys 30 31 appropriated under section 257.16 and the department 30 32 of human services shall distribute the payment to the 30 33 institution. The institution shall submit an 30 34 accounting for the actual cost of the program to the 30 35 department of education by August 1 of the following 30 36 school year. The department shall review and approve 30 37 or modify all expenditures incurred in compliance with 30 38 the guidelines adopted pursuant to section 256.7, 30 39 subsection 10, and shall notify the department of 30 40 revenue and finance of the approved accounting amount. 30 41 The approved accounting amount shall be compared with 30 42 any amounts paid by the department of revenue and 30 43 finance to the department of human services and any 30 44 differences added to or subtracted from the October 30 45 payment made under this subsection for the next school 30 46 year. Any amount paid by the department of revenue 30 47 and finance shall be deducted monthly from the state 30 48 foundation aid paid under section 257.16 to all school 30 49 districts in the state during the subsequent fiscal 30 50 year. The portion of the total amount of the approved 31 1 budget that shall be deducted from the state aid of a 31 2 school district shall be the same as the ratio that 31 3 the budget enrollment for the budget year of the 31 4 school district bears to the total budget enrollment 31 5 in the state for that budget year in which the 31 6 deduction is made. 31 7 2. Programs may be provided during the summer and 31 8 funded under this section if the institution 31 9 determines a valid educational reason to do so and the 31 10 department of education approves the program in the 31 11 manner provided in subsection 1. 31 12 Sec. 59. Section 282.28, Code 2003, is repealed. 31 13 Sec. 60. FY 2003-2004 FUNDING. For purposes of 31 14 providing funding for educational programs provided to 31 15 children residing in an institution for children under 31 16 the jurisdiction of the director of human services 31 17 referred to in section 218.1, subsection 3, 5, 7, or 31 18 8, the institution providing such programs to children 31 19 residing in the institution shall submit an estimated 31 20 proposed program and budget based on the estimated 31 21 average daily attendance of children who will likely 31 22 be provided educational programs during the fiscal 31 23 year beginning July 1, 2003, and ending June 30, 2004, 31 24 to the department of education and the department of 31 25 human services by August 1, 2003. The budget for the 31 26 institutions referred to in section 218.1, subsections 31 27 7 and 8, shall include funds to access services from 31 28 the area education agency in the manner in which the 31 29 services were accessed from the area education agency 31 30 in the fiscal year beginning July 1, 2002. The 31 31 department of education shall review and approve or 31 32 modify the proposed program and budget and shall 31 33 notify the department of revenue and finance of its 31 34 action by September 1, 2003. The department of 31 35 revenue and finance shall pay the approved budget 31 36 amount, and the department of human services shall 31 37 distribute payments, as provided in section 282.33. 31 38 Sec. 61. EFFECTIVE DATE. The section of this 31 39 division of this Act relating to appropriation of 31 40 moneys in the hospital trust fund, being deemed of 31 41 immediate importance, takes effect upon enactment. 31 42 DIVISION XVII 31 43 REINVENTION INVESTMENT 31 44 Sec. 62. DEPARTMENT OF MANAGEMENT. There is 31 45 appropriated from the general fund of the state to the 31 46 department of management for the fiscal year beginning 31 47 July 1, 2003, and ending June 30, 2004, the following 31 48 amount, or so much thereof as is necessary, to be used 31 49 for the purpose designated: 31 50 For investment in reinvention initiatives intended 32 1 to produce ongoing savings, in addition to funds 32 2 appropriated for this purpose in 2003 Iowa Acts, House 32 3 File 655, section 11, subsection 3, if enacted: 32 4 32 5 .................................................. $ 1,350,000 32 6 DIVISION XVIII 32 7 IOWA LOTTERY AUTHORITY 32 8 Sec. 63. NEW SECTION. 99G.1 TITLE. 32 9 This chapter may be cited as the "Iowa Lottery 32 10 Authority Act". 32 11 Sec. 64. NEW SECTION. 99G.2 STATEMENT OF PURPOSE 32 12 AND INTENT. 32 13 The general assembly finds and declares the 32 14 following: 32 15 1. That net proceeds of lottery games conducted 32 16 pursuant to this chapter should be transferred to the 32 17 general fund of the state in support of a variety of 32 18 programs and services. 32 19 2. That lottery games are an entrepreneurial 32 20 enterprise and that the state should create a public 32 21 instrumentality of the state in the form of a 32 22 nonprofit authority known as the Iowa lottery 32 23 authority with comprehensive and extensive powers to 32 24 operate a state lottery in an entrepreneurial and 32 25 businesslike manner and which is accountable to the 32 26 governor, the general assembly, and the people of the 32 27 state through a system of audits, reports, legislative 32 28 oversight, and thorough financial disclosure as 32 29 required by this chapter. 32 30 3. That lottery games shall be operated and 32 31 managed in a manner that provides continuing 32 32 entertainment to the public, maximizes revenues, and 32 33 ensures that the lottery is operated with integrity 32 34 and dignity and free from political influence. 32 35 Sec. 65. NEW SECTION. 99G.3 DEFINITIONS. 32 36 As used in this chapter, unless the context clearly 32 37 requires otherwise: 32 38 1. "Administrative expenses" includes, but is not 32 39 limited to, personnel costs, travel, purchase of 32 40 equipment and all other expenses not directly 32 41 associated with the operation or sale of a game. 32 42 2. "Authority" means the Iowa lottery authority. 32 43 3. "Board" means the board of directors of the 32 44 authority. 32 45 4. "Chief executive officer" means the chief 32 46 executive officer of the authority. 32 47 5. "Game specific rules" means rules governing the 32 48 particular features of specific games, including, but 32 49 not limited to, setting the name, ticket price, prize 32 50 structure, and prize claim period of the game. 33 1 6. "Instant lottery" or "instant ticket" means a 33 2 game that offers preprinted tickets such that when a 33 3 protective coating is scratched or scraped away, it 33 4 indicates immediately whether the player has won. 33 5 7. "Lottery", "lotteries", "lottery game", 33 6 "lottery games" or "lottery products" means any game 33 7 of chance approved by the board and operated pursuant 33 8 to this chapter and games using mechanical or 33 9 electronic devices, provided that the authority shall 33 10 not authorize a player-activated gaming machine that 33 11 utilizes an internal randomizer to determine winning 33 12 and nonwinning plays and that upon random internal 33 13 selection of a winning play dispenses coins, currency, 33 14 or a ticket, credit, or token to the player that is 33 15 redeemable for cash or a prize, and excluding gambling 33 16 or gaming conducted pursuant to chapter 99B, 99D, or 33 17 99F. 33 18 8. "Major procurement contract" means a consulting 33 19 agreement or a contract with a business organization 33 20 for the printing of tickets or the purchase or lease 33 21 of equipment or services essential to the operation of 33 22 a lottery game. 33 23 9. "Net proceeds" means all revenue derived from 33 24 the sale of lottery tickets or shares and all other 33 25 moneys derived from the lottery, less operating 33 26 expenses. 33 27 10. "On-line lotto" means a lottery game connected 33 28 to a central computer via telecommunications in which 33 29 the player selects a specified group of numbers, 33 30 symbols, or characters out of a predetermined range. 33 31 11. "Operating expenses" means all costs of doing 33 32 business, including, but not limited to, prizes and 33 33 associated prize reserves, computerized gaming system 33 34 vendor expense, instant and pull-tab ticket expense, 33 35 and other expenses directly associated with the 33 36 operation or sale of any game, compensation paid to 33 37 retailers, advertising and marketing costs, and 33 38 administrative expenses. 33 39 12. "Pull-tab ticket" or "pull-tab" means a game 33 40 that offers preprinted paper tickets with the play 33 41 data hidden beneath a protective tab or seal that when 33 42 opened reveals immediately whether the player has won. 33 43 13. "Retailer" means a person, licensed by the 33 44 authority, who sells lottery tickets or shares on 33 45 behalf of the authority pursuant to a contract. 33 46 14. "Share" means any intangible evidence of 33 47 participation in a lottery game. 33 48 15. "Ticket" means any tangible evidence issued by 33 49 the lottery to provide participation in a lottery 33 50 game. 34 1 16. "Vendor" means a person who provides or 34 2 proposes to provide goods or services to the authority 34 3 pursuant to a major procurement contract, but does not 34 4 include an employee of the authority, a retailer, or a 34 5 state agency or instrumentality thereof. 34 6 Sec. 66. NEW SECTION. 99G.4 IOWA LOTTERY 34 7 AUTHORITY CREATED. 34 8 1. An Iowa lottery authority is created, effective 34 9 September 1, 2003, which shall administer the state 34 10 lottery. The authority shall be deemed to be a public 34 11 authority and an instrumentality of the state, and not 34 12 a state agency. However, the authority shall be 34 13 considered a state agency for purposes of chapters 34 14 17A, 21, 22, 28E, 68B, 91B, 97B, 509A, and 669. 34 15 2. The income and property of the authority shall 34 16 be exempt from all state and local taxes, and the sale 34 17 of lottery tickets and shares issued and sold by the 34 18 authority and its retail licensees shall be exempt 34 19 from all state and local sales taxes. 34 20 Sec. 67. NEW SECTION. 99G.5 CHIEF EXECUTIVE 34 21 OFFICER. 34 22 The chief executive officer of the authority shall 34 23 be appointed by the governor subject to confirmation 34 24 by the senate and shall serve a four-year term of 34 25 office beginning and ending as provided in section 34 26 69.19. The chief executive officer shall be qualified 34 27 by training and experience to manage a lottery. The 34 28 governor may remove the chief executive officer for 34 29 malfeasance in office, or for any cause that renders 34 30 the chief executive officer ineligible, incapable, or 34 31 unfit to discharge the duties of the office. 34 32 Compensation and employment terms of the chief 34 33 executive officer shall be set by the governor, taking 34 34 into consideration the officer's level of education 34 35 and experience, as well as the success of the lottery. 34 36 The chief executive officer shall be an employee of 34 37 the authority and shall direct the day-to-day 34 38 operations and management of the authority and be 34 39 vested with such powers and duties as specified by the 34 40 board and by law. 34 41 Sec. 68. NEW SECTION. 99G.6 POWER TO ADMINISTER 34 42 OATHS AND TAKE TESTIMONY – SUBPOENA. 34 43 The chief executive officer or the chief executive 34 44 officer's designee if authorized to conduct an 34 45 inquiry, investigation, or hearing under this chapter 34 46 may administer oaths and take testimony under oath 34 47 relative to the matter of inquiry, investigation, or 34 48 hearing. At a hearing ordered by the chief executive 34 49 officer, the chief executive officer or the designee 34 50 may subpoena witnesses and require the production of 35 1 records, paper, or documents pertinent to the hearing. 35 2 Sec. 69. NEW SECTION. 99G.7 DUTIES OF THE CHIEF 35 3 EXECUTIVE OFFICER. 35 4 1. The chief executive officer of the authority 35 5 shall direct and supervise all administrative and 35 6 technical activities in accordance with the provisions 35 7 of this chapter and with the administrative rules, 35 8 policies, and procedures adopted by the board. The 35 9 chief executive officer shall do all of the following: 35 10 a. Facilitate the initiation and supervise and 35 11 administer the operation of the lottery games. 35 12 b. Employ an executive vice president, who shall 35 13 act as chief executive officer in the absence of the 35 14 chief executive officer, and employ and direct other 35 15 such personnel as deemed necessary. 35 16 c. Contract with and compensate such persons and 35 17 firms as deemed necessary for the operation of the 35 18 lottery. 35 19 d. Promote or provide for promotion of the lottery 35 20 and any functions related to the authority. 35 21 e. Prepare a budget for the approval of the board. 35 22 f. Require bond from such retailers and vendors in 35 23 such amounts as required by the board. 35 24 g. Report semiannually to the legislative 35 25 government oversight committees regarding the 35 26 operations of the authority. 35 27 h. Report quarterly and annually to the board, the 35 28 governor, the auditor of state, and the general 35 29 assembly a full and complete statement of lottery 35 30 revenues and expenses for the preceding quarter, and 35 31 with respect to the annual report, for the preceding 35 32 year and transfer proceeds to the general fund within 35 33 thirty days following the end of the quarter. 35 34 i. Perform other duties generally associated with 35 35 a chief executive officer of an authority of an 35 36 entrepreneurial nature. 35 37 2. The chief executive officer shall conduct an 35 38 ongoing study of the operation and administration of 35 39 lottery laws similar to this chapter in other states 35 40 or countries, of available literature on the subject, 35 41 of federal laws and regulations which may affect the 35 42 operation of the lottery and of the reaction of 35 43 citizens of this state to existing or proposed 35 44 features of lottery games with a view toward 35 45 implementing improvements that will tend to serve the 35 46 purposes of this chapter. 35 47 3. The chief executive officer may for good cause 35 48 suspend, revoke, or refuse to renew any contract 35 49 entered into in accordance with the provisions of this 35 50 chapter or the administrative rules, policies, and 36 1 procedures of the board. 36 2 4. The chief executive officer or the chief 36 3 executive officer's designee may conduct hearings and 36 4 administer oaths to persons for the purpose of 36 5 assuring the security or integrity of lottery 36 6 operations or to determine the qualifications of or 36 7 compliance by vendors and retailers. 36 8 Sec. 70. NEW SECTION. 99G.8 BOARD OF DIRECTORS. 36 9 1. The authority shall be administered by a board 36 10 of directors comprised of five members appointed by 36 11 the governor subject to confirmation by the senate. 36 12 Board members appointed when the senate is not in 36 13 session shall serve only until the end of the next 36 14 regular session of the general assembly, unless 36 15 confirmed by the senate. 36 16 2. Board members shall serve staggered terms of 36 17 four years beginning and ending as provided in section 36 18 69.19. No more than three board members shall be from 36 19 the same political party. 36 20 3. Board members may be removed by the governor 36 21 for neglect of duty, misfeasance, or nonfeasance in 36 22 office. 36 23 4. No officer or employee of the authority shall 36 24 be a member of the board. 36 25 5. Board members shall be residents of the state 36 26 of Iowa, shall be prominent persons in their 36 27 respective businesses or professions, and shall not 36 28 have been convicted of any felony offense. Of the 36 29 members appointed, the governor shall appoint to the 36 30 board an attorney admitted to the practice of law in 36 31 Iowa, an accountant, a person who is or has been a law 36 32 enforcement officer, and a person having expertise in 36 33 marketing. 36 34 6. A majority of members in office shall 36 35 constitute a quorum for the transaction of any 36 36 business and for the exercise of any power or function 36 37 of the authority. 36 38 7. Action may be taken and motions and resolutions 36 39 adopted by the board at any meeting thereof by the 36 40 affirmative vote of a majority of present and voting 36 41 board members. 36 42 8. No vacancy in the membership of the board shall 36 43 impair the right of the members to exercise all the 36 44 powers and perform all the duties of the board. 36 45 9. Board members shall be considered to hold 36 46 public office and shall give bond as such as required 36 47 in chapter 64. 36 48 10. Board members shall be entitled to receive a 36 49 per diem as specified in section 7E.6 for each day 36 50 spent in performance of duties as members, and shall 37 1 be reimbursed for all actual and necessary expenses 37 2 incurred in the performance of their official duties 37 3 as members. No person who serves as a member of the 37 4 board shall by reason of such membership be eligible 37 5 for membership in the Iowa public employees' 37 6 retirement system and service on the board shall not 37 7 be eligible for service credit for any public 37 8 retirement system. 37 9 11. The board shall meet at least quarterly and at 37 10 such other times upon call of the chairperson or the 37 11 president. Notice of the time and place of each board 37 12 meeting shall be given to each member. The board 37 13 shall also meet upon call of three or more of the 37 14 board members. The board shall keep accurate and 37 15 complete records of all its meetings. 37 16 12. Meetings of the board shall be governed by the 37 17 provisions of chapter 21. 37 18 13. Board members shall not have any direct or 37 19 indirect interest in an undertaking that puts their 37 20 personal interest in conflict with that of the 37 21 authority, including, but not limited to, an interest 37 22 in a major procurement contract or a participating 37 23 retailer. 37 24 14. The members shall elect from their membership 37 25 a chairperson and vice chairperson. 37 26 15. The board of directors may delegate to the 37 27 chief executive officer of the authority such powers 37 28 and duties as it may deem proper to the extent such 37 29 delegation is not inconsistent with the Constitution 37 30 of this state. 37 31 Sec. 71. NEW SECTION. 99G.9 BOARD DUTIES. 37 32 The board shall provide the chief executive officer 37 33 with private-sector perspectives of a large marketing 37 34 enterprise. The board shall do all of the following: 37 35 1. Approve, disapprove, amend, or modify the 37 36 budget recommended by the chief executive officer for 37 37 the operation of the authority. 37 38 2. Approve, disapprove, amend, or modify the terms 37 39 of major lottery procurements recommended by the chief 37 40 executive officer. 37 41 3. Adopt policies and procedures and promulgate 37 42 administrative rules pursuant to chapter 17A relating 37 43 to the management and operation of the authority. The 37 44 administrative rules promulgated pursuant to this 37 45 subsection may include but shall not be limited to the 37 46 following: 37 47 a. The type of games to be conducted. 37 48 b. The sale price of tickets or shares and the 37 49 manner of sale, including but not limited to 37 50 authorization of sale of tickets or shares at a 38 1 discount for marketing purposes, provided, however, 38 2 that a retailer may accept payment by cash, check, 38 3 money order, debit card, or electronic funds transfer 38 4 and shall not extend or arrange credit for the 38 5 purchase of a ticket or share. As used in this 38 6 section, "cash" means United States currency. 38 7 c. The number and amount of prizes, including but 38 8 not limited to prizes of free tickets or shares in 38 9 lottery games conducted by the authority and 38 10 merchandise prizes. The authority shall maintain and 38 11 make available for public inspection at its offices 38 12 during regular business hours a detailed listing of 38 13 the estimated number of prizes of each particular 38 14 denomination that are expected to be awarded in any 38 15 game that is on sale or the estimated odds of winning 38 16 the prizes and, after the end of the claim period, 38 17 shall maintain and make available a listing of the 38 18 total number of tickets or shares sold in a game and 38 19 the number of prizes of each denomination that were 38 20 awarded. 38 21 d. The method and location of selecting or 38 22 validating winning tickets or shares. 38 23 e. The manner and time of payment of prizes, which 38 24 may include lump-sum payments or installments over a 38 25 period of years. 38 26 f. The manner of payment of prizes to the holders 38 27 of winning tickets or shares after performing 38 28 validation procedures appropriate to the game and as 38 29 specified by the board. 38 30 g. The frequency of games and drawings or 38 31 selection of winning tickets or shares. 38 32 h. The means of conducting drawings, provided that 38 33 drawings shall be open to the public and witnessed by 38 34 an independent certified public accountant. Equipment 38 35 used to select winning tickets or shares or 38 36 participants for prizes shall be examined by an 38 37 independent certified public accountant prior to and 38 38 after each drawing. 38 39 i. The manner and amount of compensation to 38 40 lottery retailers. 38 41 j. The engagement and compensation of audit 38 42 services. 38 43 k. Any and all other matters necessary, desirable, 38 44 or convenient toward ensuring the efficient and 38 45 effective operation of lottery games, the continued 38 46 entertainment and convenience of the public, and the 38 47 integrity of the lottery. 38 48 4. Adopt game specific rules. The promulgation of 38 49 game specific rules shall not be subject to the 38 50 requirements of chapter 17A. However, game specific 39 1 rules shall be made available to the public prior to 39 2 the time the games go on sale and shall be kept on 39 3 file at the office of the authority. 39 4 5. Perform such other functions as specified by 39 5 this chapter. 39 6 Sec. 72. NEW SECTION. 99G.10 AUTHORITY 39 7 PERSONNEL. 39 8 1. All employees of the authority shall be 39 9 considered public employees. 39 10 2. Subject to the approval of the board, the chief 39 11 executive officer shall have the sole power to 39 12 designate particular employees as key personnel, but 39 13 may take advice from the department of personnel in 39 14 making any such designations. All key personnel shall 39 15 be exempt from the merit system described in chapter 39 16 19A. The chief executive officer and the board shall 39 17 have the sole power to employ, classify, and fix the 39 18 compensation of key personnel. All other employees 39 19 shall be employed, classified, and compensated in 39 20 accordance with chapters 19A and 20. 39 21 3. The chief executive officer and the board shall 39 22 have the exclusive power to determine the number of 39 23 full-time equivalent positions, as defined in chapter 39 24 8, necessary to carry out the provisions of this 39 25 chapter. 39 26 4. The chief executive officer shall have the sole 39 27 responsibility to assign duties to all authority 39 28 employees. 39 29 5. The authority may establish incentive programs 39 30 for authority employees. 39 31 6. An employee of the authority shall not have a 39 32 financial interest in any vendor doing business or 39 33 proposing to do business with the authority. However, 39 34 an employee may own shares of a mutual fund which may 39 35 hold shares of a vendor corporation provided the 39 36 employee does not have the ability to influence the 39 37 investment functions of the mutual fund. 39 38 7. An employee of the authority with decision- 39 39 making authority shall not participate in any decision 39 40 involving a retailer with whom the employee has a 39 41 financial interest. 39 42 8. A background investigation shall be conducted 39 43 by the department of public safety, division of 39 44 criminal investigation, on each applicant who has 39 45 reached the final selection process prior to 39 46 employment by the authority. For positions not 39 47 designated as sensitive by the board, the 39 48 investigation may consist of a state criminal history 39 49 background check, work history, and financial review. 39 50 The board shall identify those sensitive positions of 40 1 the authority which require full background 40 2 investigations, which positions shall include, at a 40 3 minimum, any officer of the authority, and any 40 4 employee with operational management responsibilities, 40 5 security duties, or system maintenance or programming 40 6 responsibilities related to the authority's data 40 7 processing or network hardware, software, 40 8 communication, or related systems. In addition to a 40 9 work history and financial review, a full background 40 10 investigation may include a national criminal history 40 11 record check through the federal bureau of 40 12 investigation. The screening of employees through the 40 13 federal bureau of investigation shall be conducted by 40 14 submission of fingerprints through the state criminal 40 15 history record repository to the federal bureau of 40 16 investigation. The results of background 40 17 investigations conducted pursuant to this section 40 18 shall not be considered public records under chapter 40 19 22. 40 20 9. A person who has been convicted of a felony or 40 21 bookmaking or other form of illegal gambling or of a 40 22 crime involving moral turpitude shall not be employed 40 23 by the authority. 40 24 10. The authority shall bond authority employees 40 25 with access to authority funds or lottery revenue in 40 26 such an amount as provided by the board and may bond 40 27 other employees as deemed necessary. 40 28 Sec. 73. NEW SECTION. 99G.11 CONFLICTS OF 40 29 INTEREST. 40 30 1. A member of the board, any officer, or other 40 31 employee of the authority shall not directly or 40 32 indirectly, individually, as a member of a partnership 40 33 or other association, or as a shareholder, director, 40 34 or officer of a corporation have an interest in a 40 35 business that contracts for the operation or marketing 40 36 of the lottery as authorized by this chapter, unless 40 37 the business is controlled or operated by a consortium 40 38 of lotteries in which the authority has an interest. 40 39 2. Notwithstanding the provisions of chapter 68B, 40 40 a person contracting or seeking to contract with the 40 41 state to supply gaming equipment or materials for use 40 42 in the operation of the lottery, an applicant for a 40 43 license to sell tickets or shares in the lottery, or a 40 44 retailer shall not offer a member of the board, any 40 45 officer, or other employee of the authority, or a 40 46 member of their immediate family a gift, gratuity, or 40 47 other thing having a value of more than the limits 40 48 established in chapter 68B, other than food and 40 49 beverage consumed at a meal. For purposes of this 40 50 subsection, "member of their immediate family" means a 41 1 spouse, child, stepchild, brother, brother-in-law, 41 2 stepbrother, sister, sister-in-law, stepsister, 41 3 parent, parent-in-law, or step-parent of the board 41 4 member, the officer, or other employee who resides in 41 5 the same household in the same principal residence of 41 6 the board member, officer, or other employee. 41 7 3. If a board member, officer, or other employee 41 8 of the authority violates a provision of this section, 41 9 the board member, officer, or employee shall be 41 10 immediately removed from the office or position. 41 11 4. Enforcement of this section against a board 41 12 member, officer, or other employee shall be by the 41 13 attorney general who upon finding a violation shall 41 14 initiate an action to remove the board member, 41 15 officer, or employee. 41 16 5. A violation of this section is a serious 41 17 misdemeanor. 41 18 Sec. 74. NEW SECTION. 99G.21 AUTHORITY POWERS, 41 19 TRANSFER OF ASSETS, LIABILITIES, AND OBLIGATIONS. 41 20 1. Funds of the state shall not be used or 41 21 obligated to pay the expenses or prizes of the 41 22 authority. 41 23 2. The authority shall have any and all powers 41 24 necessary or convenient to carry out and effectuate 41 25 the purposes and provisions of this chapter which are 41 26 not in conflict with the Constitution of this state, 41 27 including, but without limiting the generality of the 41 28 foregoing, the following powers: 41 29 a. To sue and be sued and to complain and defend 41 30 in all courts. 41 31 b. To adopt and alter a seal. 41 32 c. To procure or to provide insurance. 41 33 d. To hold copyrights, trademarks, and service 41 34 marks and enforce its rights with respect thereto. 41 35 e. To initiate, supervise, and administer the 41 36 operation of the lottery in accordance with the 41 37 provisions of this chapter and administrative rules, 41 38 policies, and procedures adopted pursuant thereto. 41 39 f. To enter into written agreements with one or 41 40 more other states or territories of the United States, 41 41 or one or more political subdivisions of another state 41 42 or territory of the United States, or any entity 41 43 lawfully operating a lottery outside the United States 41 44 for the operation, marketing, and promotion of a joint 41 45 lottery or joint lottery game. For the purposes of 41 46 this subsection, any lottery with which the authority 41 47 reaches an agreement or compact shall meet the 41 48 criteria for security, integrity, and finance set by 41 49 the board. 41 50 g. To conduct such market research as is necessary 42 1 or appropriate, which may include an analysis of the 42 2 demographic characteristics of the players of each 42 3 lottery game, and an analysis of advertising, 42 4 promotion, public relations, incentives, and other 42 5 aspects of communication. 42 6 h. Subject to the provisions of subsection 3, to 42 7 acquire or lease real property and make improvements 42 8 thereon and acquire by lease or by purchase, personal 42 9 property, including, but not limited to, computers; 42 10 mechanical, electronic, and on-line equipment and 42 11 terminals; and intangible property, including, but not 42 12 limited to, computer programs, systems, and software. 42 13 i. Subject to the provisions of subsection 3, to 42 14 enter into contracts to incur debt in its own name and 42 15 enter into financing agreements with the state, 42 16 agencies or instrumentalities of the state, or with 42 17 any commercial bank or credit provider. 42 18 j. To select and contract with vendors and 42 19 retailers. 42 20 k. To enter into contracts or agreements with 42 21 state or local law enforcement agencies for the 42 22 performance of law enforcement, background 42 23 investigations, and security checks. 42 24 l. To enter into contracts of any and all types on 42 25 such terms and conditions as the authority may 42 26 determine necessary. 42 27 m. To establish and maintain banking 42 28 relationships, including, but not limited to, 42 29 establishment of checking and savings accounts and 42 30 lines of credit. 42 31 n. To advertise and promote the lottery and 42 32 lottery games. 42 33 o. To act as a retailer, to conduct promotions 42 34 which involve the dispensing of lottery tickets or 42 35 shares, and to establish and operate a sales facility 42 36 to sell lottery tickets or shares and any related 42 37 merchandise. 42 38 p. Notwithstanding any other provision of law to 42 39 the contrary, to purchase meals for attendees at 42 40 authority business meetings. 42 41 q. To exercise all powers generally exercised by 42 42 private businesses engaged in entrepreneurial 42 43 pursuits, unless the exercise of such a power would 42 44 violate the terms of this chapter or of the 42 45 Constitution of this state. 42 46 3. Notwithstanding any other provision of law, any 42 47 purchase of real property and any borrowing of more 42 48 than one million dollars by the authority shall 42 49 require written notice from the authority to the 42 50 legislative government oversight committees and the 43 1 prior approval of the executive council. 43 2 4. The powers enumerated in this section are 43 3 cumulative of and in addition to those powers 43 4 enumerated elsewhere in this chapter and no such 43 5 powers limit or restrict any other powers of the 43 6 authority. 43 7 5. Departments, boards, commissions, or other 43 8 agencies of this state shall provide reasonable 43 9 assistance and services to the authority upon the 43 10 request of the chief executive officer. 43 11 Sec. 75. NEW SECTION. 99G.22 VENDOR BACKGROUND 43 12 REVIEW. 43 13 1. The authority shall investigate the financial 43 14 responsibility, security, and integrity of any lottery 43 15 system vendor who is a finalist in submitting a bid, 43 16 proposal, or offer as part of a major procurement 43 17 contract. Before a major procurement contract is 43 18 awarded, the division of criminal investigation of the 43 19 department of public safety shall conduct a background 43 20 investigation of the vendor to whom the contract is to 43 21 be awarded. The chief executive officer and board 43 22 shall consult with the division of criminal 43 23 investigation and shall provide for the scope of the 43 24 background investigation and due diligence to be 43 25 conducted in connection with major procurement 43 26 contracts. At the time of submitting a bid, proposal, 43 27 or offer to the authority on a major procurement 43 28 contract, the authority shall require that each vendor 43 29 submit to the division of criminal investigation 43 30 appropriate investigation authorization to facilitate 43 31 this investigation, together with an advance of funds 43 32 to meet the anticipated investigation costs. If the 43 33 division of criminal investigation determines that 43 34 additional funds are required to complete an 43 35 investigation, the vendor will be so advised. The 43 36 background investigation by the division of criminal 43 37 investigation may include a national criminal history 43 38 record check through the federal bureau of 43 39 investigation. The screening of vendors or their 43 40 employees through the federal bureau of investigation 43 41 shall be conducted by submission of fingerprints 43 42 through the state criminal history record repository 43 43 to the federal bureau of investigation. 43 44 2. If at least twenty-five percent of the cost of 43 45 a vendor's contract is subcontracted, the vendor shall 43 46 disclose all of the information required by this 43 47 section for the subcontractor as if the subcontractor 43 48 were itself a vendor. 43 49 3. A major procurement contract shall not be 43 50 entered into with any lottery system vendor who has 44 1 not complied with the disclosure requirements 44 2 described in this section, and any contract with such 44 3 a vendor is voidable at the option of the authority. 44 4 Any contract with a vendor that does not comply with 44 5 the requirements for periodically updating such 44 6 disclosures during the tenure of the contract as may 44 7 be specified in such contract may be terminated by the 44 8 authority. The provisions of this section shall be 44 9 construed broadly and liberally to achieve the ends of 44 10 full disclosure of all information necessary to allow 44 11 for a full and complete evaluation by the authority of 44 12 the competence, integrity, background, and character 44 13 of vendors for major procurements. 44 14 4. A major procurement contract shall not be 44 15 entered into with any vendor who has been found guilty 44 16 of a felony related to the security or integrity of 44 17 the lottery in this or any other jurisdiction. 44 18 5. A major procurement contract shall not be 44 19 entered into with any vendor if such vendor has an 44 20 ownership interest in an entity that had supplied 44 21 consultation services under contract to the authority 44 22 regarding the request for proposals pertaining to 44 23 those particular goods or services. 44 24 6. If, based on the results of a background 44 25 investigation, the board determines that the best 44 26 interests of the authority, including but not limited 44 27 to the authority's reputation for integrity, would be 44 28 served thereby, the board may disqualify a potential 44 29 vendor from contracting with the authority for a major 44 30 procurement contract or from acting as a subcontractor 44 31 in connection with a contract for a major procurement 44 32 contract. 44 33 Sec. 76. NEW SECTION. 99G.23 VENDOR BONDING, TAX 44 34 FILING, AND COMPETITIVE BIDDING. 44 35 1. The authority may purchase, lease, or lease- 44 36 purchase such goods or services as are necessary for 44 37 effectuating the purposes of this chapter. The 44 38 authority may make procurements that integrate 44 39 functions such as lottery game design, lottery ticket 44 40 distribution to retailers, supply of goods and 44 41 services, and advertising. In all procurement 44 42 decisions, the authority shall take into account the 44 43 particularly sensitive nature of the lottery and shall 44 44 act to promote and ensure security, honesty, fairness, 44 45 and integrity in the operation and administration of 44 46 the lottery and the objectives of raising net proceeds 44 47 for state programs. 44 48 2. Each vendor shall, at the execution of the 44 49 contract with the authority, post a performance bond 44 50 or letter of credit from a bank or credit provider 45 1 acceptable to the authority in an amount as deemed 45 2 necessary by the authority for that particular bid or 45 3 contract. 45 4 3. Each vendor shall be qualified to do business 45 5 in this state and shall file appropriate tax returns 45 6 as provided by the laws of this state. 45 7 4. All major procurement contracts must be 45 8 competitively bid pursuant to policies and procedures 45 9 approved by the board unless there is only one 45 10 qualified vendor and that vendor has an exclusive 45 11 right to offer the service or product. 45 12 Sec. 77. NEW SECTION. 99G.24 RETAILER 45 13 COMPENSATION – LICENSING. 45 14 1. The general assembly recognizes that to conduct 45 15 a successful lottery, the authority must develop and 45 16 maintain a statewide network of lottery retailers that 45 17 will serve the public convenience and promote the sale 45 18 of tickets or shares and the playing of lottery games 45 19 while ensuring the integrity of the lottery 45 20 operations, games, and activities. 45 21 2. The board shall determine the compensation to 45 22 be paid to licensed retailers. Compensation may 45 23 include provision for variable payments based on sales 45 24 volume or incentive considerations. 45 25 3. The authority shall issue a license certificate 45 26 to each person with whom it contracts as a retailer 45 27 for purposes of display as provided in this section. 45 28 Every lottery retailer shall post its license 45 29 certificate, or a facsimile thereof, and keep it 45 30 conspicuously displayed in a location on the premises 45 31 accessible to the public. No license shall be 45 32 assignable or transferable. Once issued, a license 45 33 shall remain in effect until canceled, suspended, or 45 34 terminated by the authority. 45 35 4. A licensee shall cooperate with the authority 45 36 by using point-of-purchase materials, posters, and 45 37 other marketing material when requested to do so by 45 38 the authority. Lack of cooperation is sufficient 45 39 cause for revocation of a retailer's license. 45 40 5. The board shall develop a list of objective 45 41 criteria upon which the qualification of lottery 45 42 retailers shall be based. Separate criteria shall be 45 43 developed to govern the selection of retailers of 45 44 instant tickets and online retailers. In developing 45 45 these criteria, the board shall consider such factors 45 46 as the applicant's financial responsibility, security 45 47 of the applicant's place of business or activity, 45 48 accessibility to the public, integrity, and 45 49 reputation. The criteria shall include but not be 45 50 limited to the volume of expected sales and the 46 1 sufficiency of existing licensees to serve the public 46 2 convenience. 46 3 6. The applicant shall be current in filing all 46 4 applicable tax returns to the state of Iowa and in 46 5 payment of all taxes, interest, and penalties owed to 46 6 the state of Iowa, excluding items under formal appeal 46 7 pursuant to applicable statutes. The department of 46 8 revenue and finance is authorized and directed to 46 9 provide this information to the authority. 46 10 7. A person, partnership, unincorporated 46 11 association, authority, or other business entity shall 46 12 not be selected as a lottery retailer if the person or 46 13 entity meets any of the following conditions: 46 14 a. Has been convicted of a criminal offense 46 15 related to the security or integrity of the lottery in 46 16 this or any other jurisdiction. 46 17 b. Has been convicted of any illegal gambling 46 18 activity, false statements, perjury, fraud, or a 46 19 felony in this or any other jurisdiction. 46 20 c. Has been found to have violated the provisions 46 21 of this chapter or any regulation, policy, or 46 22 procedure of the authority or of the lottery division 46 23 unless either ten years have passed since the 46 24 violation or the board finds the violation both minor 46 25 and unintentional in nature. 46 26 d. Is a vendor or any employee or agent of any 46 27 vendor doing business with the authority. 46 28 e. Resides in the same household as an officer of 46 29 the authority. 46 30 f. Is less than eighteen years of age. 46 31 g. Does not demonstrate financial responsibility 46 32 sufficient to adequately meet the requirements of the 46 33 proposed enterprise. 46 34 h. Has not demonstrated that the applicant is the 46 35 true owner of the business proposed to be licensed and 46 36 that all persons holding at least a ten percent 46 37 ownership interest in the applicant's business have 46 38 been disclosed. 46 39 i. Has knowingly made a false statement of 46 40 material fact to the authority. 46 41 8. Persons applying to become lottery retailers 46 42 may be charged a uniform application fee for each 46 43 lottery outlet. 46 44 9. Any lottery retailer contract executed pursuant 46 45 to this section may, for good cause, be suspended, 46 46 revoked, or terminated by the chief executive officer 46 47 or the chief executive officer's designee if the 46 48 retailer is found to have violated any provision of 46 49 this chapter or objective criteria established by the 46 50 board. Cause for suspension, revocation, or 47 1 termination may include, but is not limited to, sale 47 2 of tickets or shares to a person under the age of 47 3 twenty-one and failure to pay for lottery products in 47 4 a timely manner. 47 5 Sec. 78. NEW SECTION. 99G.25 LICENSE NOT 47 6 ASSIGNABLE. 47 7 Any lottery retailer license certificate or 47 8 contract shall not be transferable or assignable. The 47 9 authority may issue a temporary license when deemed in 47 10 the best interests of the state. A lottery retailer 47 11 shall not contract with any person for lottery goods 47 12 or services, except with the approval of the board. 47 13 Sec. 79. NEW SECTION. 99G.26 RETAILER BONDING. 47 14 The authority may require any retailer to post an 47 15 appropriate bond, as determined by the authority, 47 16 using a cash bond or an insurance company acceptable 47 17 to the authority. 47 18 Sec. 80. NEW SECTION. 99G.27 LOTTERY RETAIL 47 19 LICENSES – CANCELLATION, SUSPENSION, REVOCATION, OR 47 20 TERMINATION. 47 21 1. A lottery retail license issued by the 47 22 authority pursuant to this chapter may be canceled, 47 23 suspended, revoked, or terminated by the authority, 47 24 for reasons including, but not limited to, any of the 47 25 following: 47 26 a. A violation of this chapter, a regulation, or a 47 27 policy or procedure of the authority. 47 28 b. Failure to accurately or timely account or pay 47 29 for lottery products, lottery games, revenues, or 47 30 prizes as required by the authority. 47 31 c. Commission of any fraud, deceit, or 47 32 misrepresentation. 47 33 d. Insufficient sales. 47 34 e. Conduct prejudicial to public confidence in the 47 35 lottery. 47 36 f. The retailer filing for or being placed in 47 37 bankruptcy or receivership. 47 38 g. Any material change as determined in the sole 47 39 discretion of the authority in any matter considered 47 40 by the authority in executing the contract with the 47 41 retailer. 47 42 h. Failure to meet any of the objective criteria 47 43 established by the authority pursuant to this chapter. 47 44 i. Other conduct likely to result in injury to the 47 45 property, revenue, or reputation of the authority. 47 46 2. A lottery retailer license may be temporarily 47 47 suspended by the authority without prior notice if the 47 48 chief executive officer or designee determines that 47 49 further sales by the licensed retailer are likely to 47 50 result in immediate injury to the property, revenue, 48 1 or reputation of the authority. 48 2 3. The board shall adopt administrative rules 48 3 governing appeals of lottery retailer licensing 48 4 disputes. 48 5 Sec. 81. NEW SECTION. 99G.28 PROCEEDS HELD IN 48 6 TRUST. 48 7 All proceeds from the sale of the lottery tickets 48 8 or shares shall constitute a trust fund until paid to 48 9 the authority directly, through electronic funds 48 10 transfer to the authority, or through the authority's 48 11 authorized collection representative. A lottery 48 12 retailer and officers of a lottery retailer's business 48 13 shall have a fiduciary duty to preserve and account 48 14 for lottery proceeds and lottery retailers shall be 48 15 personally liable for all proceeds. Proceeds shall 48 16 include unsold products received but not paid for by a 48 17 lottery retailer and cash proceeds of the sale of any 48 18 lottery products net of allowable sales commissions 48 19 and credit for lottery prizes paid to winners by 48 20 lottery retailers. Sales proceeds of pull-tab tickets 48 21 shall include the sales price of the lottery product 48 22 net of allowable sales commission and prizes contained 48 23 in the product. Sales proceeds and unused instant 48 24 tickets shall be delivered to the authority or its 48 25 authorized collection representative upon demand. 48 26 Sec. 82. NEW SECTION. 99G.29 RETAILER RENTAL 48 27 CALCULATIONS – LOTTERY TICKET SALES TREATMENT. 48 28 If a lottery retailer's rental payments for the 48 29 business premises are contractually computed, in whole 48 30 or in part, on the basis of a percentage of retail 48 31 sales and such computation of retail sales is not 48 32 explicitly defined to include sales of tickets or 48 33 shares in a state-operated or state-managed lottery, 48 34 only the compensation received by the lottery retailer 48 35 from the authority may be considered the amount of the 48 36 lottery retail sale for purposes of computing the 48 37 rental payment. 48 38 Sec. 83. NEW SECTION. 99G.30 TICKET SALES 48 39 REQUIREMENTS – PENALTIES. 48 40 1. Lottery tickets or shares may be distributed by 48 41 the authority for promotional purposes. 48 42 2. A ticket or share shall not be sold at a price 48 43 other than that fixed by the authority and a sale 48 44 shall not be made other than by a retailer or an 48 45 employee of the retailer who is authorized by the 48 46 retailer to sell tickets or shares. A person who 48 47 violates a provision of this subsection is guilty of a 48 48 simple misdemeanor. 48 49 3. A ticket or share shall not be sold to a person 48 50 who has not reached the age of twenty-one. Any person 49 1 who knowingly sells a lottery ticket or share to a 49 2 person under the age of twenty-one shall be guilty of 49 3 a simple misdemeanor. It shall be an affirmative 49 4 defense to a charge of a violation under this section 49 5 that the retailer reasonably and in good faith relied 49 6 upon presentation of proof of age in making the sale. 49 7 A prize won by a person who has not reached the age of 49 8 twenty-one but who purchases a winning ticket or share 49 9 in violation of this subsection shall be forfeited. 49 10 This section does not prohibit the lawful purchase of 49 11 a ticket or share for the purpose of making a gift to 49 12 a person who has not reached the age of twenty-one. 49 13 The board shall adopt administrative rules governing 49 14 the payment of prizes to persons who have not reached 49 15 the age of twenty-one. 49 16 4. Except for the authority, a retailer shall only 49 17 sell lottery products on the licensed premises and not 49 18 through the mail or by technological means except as 49 19 the authority may provide or authorize. 49 20 5. The retailer may accept payment by cash, check, 49 21 money order, debit card, or electronic funds transfer. 49 22 The retailer shall not extend or arrange credit for 49 23 the purchase of a ticket or share. As used in this 49 24 subsection, "cash" means United States currency. 49 25 6. Nothing in this chapter shall be construed to 49 26 prohibit the authority from designating certain of its 49 27 agents and employees to sell or give lottery tickets 49 28 or shares directly to the public. 49 29 7. No elected official's name shall be printed on 49 30 tickets. 49 31 Sec. 84. NEW SECTION. 99G.31 PRIZES. 49 32 1. The chief executive officer shall award the 49 33 designated prize to the ticket or shareholder upon 49 34 presentation of the winning ticket or confirmation of 49 35 a winning share. The prize shall be given to only one 49 36 person; however, a prize shall be divided between 49 37 holders of winning tickets if there is more than one 49 38 winning ticket. 49 39 2. The authority shall adopt administrative rules, 49 40 policies, and procedures to establish a system of 49 41 verifying the validity of tickets or shares claimed to 49 42 win prizes and to effect payment of such prizes, 49 43 subject to the following requirements: 49 44 a. The prize shall be given to the person who 49 45 presents a winning ticket. A prize may be given to 49 46 only one person per winning ticket. However, a prize 49 47 shall be divided between holders of winning tickets if 49 48 there is more than one winning ticket. Payment of a 49 49 prize may be made to the estate of a deceased prize 49 50 winner or to another person pursuant to an appropriate 50 1 judicial order issued by an Iowa court of competent 50 2 jurisdiction. 50 3 b. A prize shall not be paid arising from claimed 50 4 tickets that are stolen, counterfeit, altered, 50 5 fraudulent, unissued, produced or issued in error, 50 6 unreadable, not received, or not recorded by the 50 7 authority within applicable deadlines; lacking in 50 8 captions that conform and agree with the play symbols 50 9 as appropriate to the particular lottery game 50 10 involved; or not in compliance with such additional 50 11 specific administrative rules, policies, and public or 50 12 confidential validation and security tests of the 50 13 authority appropriate to the particular lottery game 50 14 involved. 50 15 c. No particular prize in any lottery game shall 50 16 be paid more than once, and in the event of a 50 17 determination that more than one claimant is entitled 50 18 to a particular prize, the sole remedy of such 50 19 claimants is the award to each of them of an equal 50 20 share in the prize. 50 21 d. Unclaimed prize money for the prize on a 50 22 winning ticket or share shall be retained for a period 50 23 deemed appropriate by the chief executive officer, 50 24 subject to approval by the board. If a valid claim is 50 25 not made for the money within the applicable period, 50 26 the unclaimed prize money shall be added to the pool 50 27 from which future prizes are to be awarded or used for 50 28 special prize promotions. Notwithstanding this 50 29 subsection, the disposition of unclaimed prize money 50 30 from multijurisdictional games shall be made in 50 31 accordance with the rules of the multijurisdictional 50 32 game. 50 33 e. No prize shall be paid upon a ticket or share 50 34 purchased or sold in violation of this chapter. Any 50 35 such prize shall constitute an unclaimed prize for 50 36 purposes of this section. 50 37 f. The authority is discharged of all liability 50 38 upon payment of a prize pursuant to this section. 50 39 g. No ticket or share issued by the authority 50 40 shall be purchased by and no prize shall be paid to 50 41 any member of the board of directors; any officer or 50 42 employee of the authority; or to any spouse, child, 50 43 brother, sister, or parent residing as a member of the 50 44 same household in the principal place of residence of 50 45 any such person. 50 46 h. No ticket or share issued by the authority 50 47 shall be purchased by and no prize shall be paid to 50 48 any officer, employee, agent, or subcontractor of any 50 49 vendor or to any spouse, child, brother, sister, or 50 50 parent residing as a member of the same household in 51 1 the principal place of residence of any such person if 51 2 such officer, employee, agent, or subcontractor has 51 3 access to confidential information which may 51 4 compromise the integrity of the lottery. 51 5 i. The proceeds of any lottery prize shall be 51 6 subject to state and federal income tax laws. An 51 7 amount deducted from the prize for payment of a state 51 8 tax, pursuant to section 422.16, subsection 1, shall 51 9 be transferred by the authority to the department of 51 10 revenue and finance on behalf of the prize winner. 51 11 Sec. 85. NEW SECTION. 99G.32 AUTHORITY LEGAL 51 12 REPRESENTATION. 51 13 The authority shall retain the services of legal 51 14 counsel to advise the authority and the board and to 51 15 provide representation in legal proceedings. The 51 16 authority may retain the attorney general or a full- 51 17 time assistant attorney general in that capacity and 51 18 provide reimbursement for the cost of advising and 51 19 representing the board and the authority. 51 20 Sec. 86. NEW SECTION. 99G.33 LAW ENFORCEMENT 51 21 INVESTIGATIONS. 51 22 The department of public safety, division of 51 23 criminal investigation, shall be the primary state 51 24 agency responsible for investigating criminal 51 25 violations under this chapter. The chief executive 51 26 officer shall contract with the department of public 51 27 safety for investigative services, including the 51 28 employment of special agents and support personnel, 51 29 and procurement of necessary equipment to carry out 51 30 the responsibilities of the division of criminal 51 31 investigation under the terms of the agreement and 51 32 this chapter. 51 33 Sec. 87. NEW SECTION. 99G.34 OPEN RECORDS – 51 34 EXCEPTIONS. 51 35 The records of the authority shall be governed by 51 36 the provisions of chapter 22, provided that, in 51 37 addition to records that may be kept confidential 51 38 pursuant to section 22.7, the following records shall 51 39 be kept confidential, unless otherwise ordered by a 51 40 court, by the lawful custodian of the records, or by 51 41 another person duly authorized to release such 51 42 information: 51 43 1. Marketing plans, research data, and proprietary 51 44 intellectual property owned or held by the authority 51 45 under contractual agreements. 51 46 2. Personnel, vendor, and player social security 51 47 or tax identification numbers. 51 48 3. Computer system hardware, software, functional 51 49 and system specifications, and game play data files. 51 50 4. Security records pertaining to investigations 52 1 and intelligence-sharing information between lottery 52 2 security officers and those of other lotteries and law 52 3 enforcement agencies, the security portions or 52 4 segments of lottery requests for proposals, proposals 52 5 by vendors to conduct lottery operations, and records 52 6 of the security division of the authority pertaining 52 7 to game security data, ticket validation tests, and 52 8 processes. 52 9 5. Player name and address lists, provided that 52 10 the names and addresses of prize winners shall not be 52 11 withheld. 52 12 6. Operational security measures, systems, or 52 13 procedures and building plans. 52 14 7. Security reports and other information 52 15 concerning bids or other contractual data, the 52 16 disclosure of which would impair the efforts of the 52 17 authority to contract for goods or services on 52 18 favorable terms. 52 19 8. Information that is otherwise confidential 52 20 obtained pursuant to investigations. 52 21 Sec. 88. NEW SECTION. 99G.35 SECURITY. 52 22 1. The authority's chief security officer and 52 23 investigators shall be qualified by training and 52 24 experience in law enforcement to perform their 52 25 respective duties in support of the activities of the 52 26 security office. The chief security officer and 52 27 investigators shall not have sworn peace officer 52 28 status. The lottery security office shall perform all 52 29 of the following activities in support of the 52 30 authority mission: 52 31 a. Supervise ticket or share validation and 52 32 lottery drawings, provided that the authority may 52 33 enter into cooperative agreements with 52 34 multijurisdictional lottery administrators for shared 52 35 security services at drawings and game show events 52 36 involving more than one participating lottery. 52 37 b. Inspect at times determined solely by the 52 38 authority the facilities of any vendor or lottery 52 39 retailer in order to determine the integrity of the 52 40 vendor's product or the operations of the retailer in 52 41 order to determine whether the vendor or the retailer 52 42 is in compliance with its contract. 52 43 c. Report any suspected violations of this chapter 52 44 to the appropriate county attorney or the attorney 52 45 general and to any law enforcement agencies having 52 46 jurisdiction over the violation. 52 47 d. Upon request, provide assistance to any county 52 48 attorney, the attorney general, the department of 52 49 public safety, or any other law enforcement agency. 52 50 e. Upon request, provide assistance to retailers 53 1 in meeting their licensing contract requirements and 53 2 in detecting retailer employee theft. 53 3 f. Monitor authority operations for compliance 53 4 with internal security requirements. 53 5 g. Provide physical security at the authority's 53 6 central operations facilities. 53 7 h. Conduct on-press product production 53 8 surveillance, testing, and quality approval for 53 9 printed scratch and pull-tab tickets. 53 10 i. Coordinate employee and retailer background 53 11 investigations conducted by the department of public 53 12 safety, division of criminal investigation. 53 13 2. The authority may enter into intelligence- 53 14 sharing, reciprocal use, or restricted use agreements 53 15 with the federal government, law enforcement agencies, 53 16 lottery regulation agencies, and gaming enforcement 53 17 agencies of other jurisdictions which provide for and 53 18 regulate the use of information provided and received 53 19 pursuant to the agreement. 53 20 3. Records, documents, and information in the 53 21 possession of the authority received pursuant to an 53 22 intelligence-sharing, reciprocal use, or restricted 53 23 use agreement entered into by the authority with a 53 24 federal department or agency, any law enforcement 53 25 agency, or the lottery regulation or gaming 53 26 enforcement agency of any jurisdiction shall be 53 27 considered investigative records of a law enforcement 53 28 agency and are not subject to chapter 22 and shall not 53 29 be released under any condition without the permission 53 30 of the person or agency providing the record or 53 31 information. 53 32 Sec. 89. NEW SECTION. 99G.36 FORGERY – FRAUD – 53 33 PENALTIES. 53 34 1. A person who, with intent to defraud, falsely 53 35 makes, alters, forges, utters, passes, redeems, or 53 36 counterfeits a lottery ticket or share or attempts to 53 37 falsely make, alter, forge, utter, pass, redeem, or 53 38 counterfeit a lottery ticket or share, or commits 53 39 theft or attempts to commit theft of a lottery ticket 53 40 or share, is guilty of a class "D" felony. 53 41 2. Any person who influences or attempts to 53 42 influence the winning of a prize through the use of 53 43 coercion, fraud, deception, or tampering with lottery 53 44 equipment or materials shall be guilty of a class "D" 53 45 felony. 53 46 3. No person shall knowingly or intentionally make 53 47 a material false statement in any application for a 53 48 license or proposal to conduct lottery activities or 53 49 make a material false entry in any book or record 53 50 which is compiled or maintained or submitted to the 54 1 board pursuant to the provisions of this chapter. Any 54 2 person who violates the provisions of this section 54 3 shall be guilty of a class "D" felony. 54 4 Sec. 90. NEW SECTION. 99G.37 COMPETITIVE 54 5 BIDDING. 54 6 1. The authority shall enter into a major 54 7 procurement contract pursuant to competitive bidding. 54 8 The requirement for competitive bidding does not apply 54 9 in the case of a single vendor having exclusive rights 54 10 to offer a particular service or product. The board 54 11 shall adopt procedures for competitive bidding. 54 12 Procedures adopted by the board shall be designed to 54 13 allow the selection of proposals that provide the 54 14 greatest long-term benefit to the state, the greatest 54 15 integrity for the authority, and the best service and 54 16 products for the public. 54 17 2. In any bidding process, the authority may 54 18 administer its own bidding and procurement or may 54 19 utilize the services of the department of general 54 20 services, or its successor, or other state agency. 54 21 Sec. 91. NEW SECTION. 99G.38 AUTHORITY FINANCE 54 22 – SELF-SUSTAINING. 54 23 1. The authority may borrow, or accept and expend, 54 24 in accordance with the provisions of this chapter, 54 25 such moneys as may be received from any source, 54 26 including income from the authority's operations, for 54 27 effectuating its business purposes, including the 54 28 payment of the initial expenses of initiation, 54 29 administration, and operation of the authority and the 54 30 lottery. 54 31 2. The authority shall be self-sustaining and 54 32 self-funded. Moneys in the general fund of the state 54 33 shall not be used or obligated to pay the expenses of 54 34 the authority or prizes of the lottery, and no claim 54 35 for the payment of an expense of the lottery or prizes 54 36 of the lottery may be made against any moneys other 54 37 than moneys credited to the authority operating 54 38 account. 54 39 3. The state of Iowa offset program, as provided 54 40 in section 421.17, shall be available to the authority 54 41 to facilitate receipt of funds owed to the authority. 54 42 Sec. 92. NEW SECTION. 99G.39 ALLOCATION, 54 43 APPROPRIATION, TRANSFER, AND REPORTING OF FUNDS. 54 44 1. Upon receipt of any revenue, the chief 54 45 executive officer shall deposit the moneys in the 54 46 lottery fund created pursuant to section 99G.40. At 54 47 least fifty percent of the projected annual revenue 54 48 accruing from the sale of tickets or shares shall be 54 49 allocated for payment of prizes to the holders of 54 50 winning tickets. After the payment of prizes, the 55 1 following shall be deducted from the authority's 55 2 revenue prior to disbursement: 55 3 a. An amount equal to three-tenths of one percent 55 4 of the gross lottery revenue for the year shall be 55 5 deposited in a gambling treatment fund in the office 55 6 of the treasurer of state. 55 7 b. The expenses of conducting the lottery. 55 8 Expenses for advertising production and media 55 9 purchases shall not exceed four percent of the 55 10 authority's gross revenue for the year. 55 11 2. The director of management shall not include 55 12 lottery revenues in the director's fiscal year revenue 55 13 estimates. 55 14 3. a. Notwithstanding subsection 1, if gaming 55 15 revenues under sections 99D.17 and 99F.11 are 55 16 insufficient in a fiscal year to meet the total amount 55 17 of such revenues directed to be deposited in the 55 18 vision Iowa fund and the school infrastructure fund 55 19 during the fiscal year pursuant to section 8.57, 55 20 subsection 5, paragraph "e", the difference shall be 55 21 paid from lottery revenues prior to deposit of the 55 22 lottery revenues in the general fund. If lottery 55 23 revenues are insufficient during the fiscal year to 55 24 pay the difference, the remaining difference shall be 55 25 paid from lottery revenues in subsequent fiscal years 55 26 as such revenues become available. 55 27 b. The treasurer of state shall, each quarter, 55 28 prepare an estimate of the gaming revenues and lottery 55 29 revenues that will become available during the 55 30 remainder of the appropriate fiscal year for the 55 31 purposes described in paragraph "a". The department 55 32 of management and the department of revenue and 55 33 finance shall take appropriate actions to provide that 55 34 the amount of gaming revenues and lottery revenues 55 35 that will be available during the remainder of the 55 36 appropriate fiscal year is sufficient to cover any 55 37 anticipated deficiencies. 55 38 Sec. 93. NEW SECTION. 99G.40 AUDITS AND REPORTS 55 39 – LOTTERY FUND. 55 40 1. To ensure the financial integrity of the 55 41 lottery, the authority shall do all of the following: 55 42 a. Submit quarterly and annual reports to the 55 43 governor, state auditor, and the general assembly 55 44 disclosing the total lottery revenues, prize 55 45 disbursements, and other expenses of the authority 55 46 during the reporting period. The fourth quarter 55 47 report shall be included in the annual report made 55 48 pursuant to this section. The annual report shall 55 49 include a complete statement of lottery revenues, 55 50 prize disbursements, and other expenses, and 56 1 recommendations for changes in the law that the chief 56 2 executive officer deems necessary or desirable. The 56 3 annual report shall be submitted within one hundred 56 4 twenty days after the close of the fiscal year. The 56 5 chief executive officer shall report immediately to 56 6 the governor, the treasurer of state, and the general 56 7 assembly any matters that require immediate changes in 56 8 the law in order to prevent abuses or evasions of this 56 9 chapter or rules adopted or to rectify undesirable 56 10 conditions in connection with the administration or 56 11 operation of the lottery. 56 12 b. Maintain weekly or more frequent records of 56 13 lottery transactions, including the distribution of 56 14 tickets or shares to retailers, revenues received, 56 15 claims for prizes, prizes paid, prizes forfeited, and 56 16 other financial transactions of the authority. 56 17 c. The authority shall deposit in the lottery fund 56 18 created in subsection 2 any moneys received by 56 19 retailers from the sale of tickets or shares less the 56 20 amount of any compensation due the retailers. The 56 21 chief executive officer may require licensees to file 56 22 with the authority reports of receipts and 56 23 transactions in the sale of tickets or shares. The 56 24 reports shall be in the form and contain the 56 25 information the chief executive officer requires. 56 26 2. A lottery fund is created in the office of the 56 27 treasurer of state and shall exist as the recipient 56 28 fund for authority receipts. The fund consists of all 56 29 revenues received from the sale of lottery tickets or 56 30 shares and all other moneys lawfully credited or 56 31 transferred to the fund. The chief executive officer 56 32 shall certify quarterly that portion of the fund that 56 33 has been transferred to the general fund of the state 56 34 under this chapter and shall cause that portion to be 56 35 transferred to the general fund of the state. 56 36 However, upon the request of the chief executive 56 37 officer and subject to the approval by the treasurer 56 38 of state, an amount sufficient to cover the 56 39 foreseeable administrative expenses of the lottery for 56 40 a period of twenty-one days may be retained from the 56 41 lottery fund. Prior to the quarterly transfer to the 56 42 general fund of the state, the chief executive officer 56 43 may direct that lottery revenue shall be deposited in 56 44 the lottery fund and in interest-bearing accounts 56 45 designated by the treasurer of state. Interest or 56 46 earnings paid on the deposits or investments is 56 47 considered lottery revenue and shall be transferred to 56 48 the general fund of the state in the same manner as 56 49 other lottery revenue. 56 50 3. The chief executive officer shall certify 57 1 before the last day of the month following each 57 2 quarter that portion of the lottery fund resulting 57 3 from the previous quarter's sales to be transferred to 57 4 the general fund of the state. 57 5 4. For informational purposes only, the chief 57 6 executive officer shall submit to the department of 57 7 management by October 1 of each year a proposed 57 8 operating budget for the authority for the succeeding 57 9 fiscal year. This budget proposal shall also be 57 10 accompanied by an estimate of the net proceeds to be 57 11 deposited into the general fund during the succeeding 57 12 fiscal year. This budget shall be on forms prescribed 57 13 by the department of management. 57 14 5. The authority shall adopt the same fiscal year 57 15 as that used by state government and shall be audited 57 16 annually. 57 17 Sec. 94. NEW SECTION. 99G.41 PRIZE OFFSETS – 57 18 GARNISHMENTS. 57 19 1. Any claimant agency may submit to the authority 57 20 a list of the names of all persons indebted to such 57 21 claimant agency or to persons on whose behalf the 57 22 claimant agency is acting. The full amount of the 57 23 debt shall be collectable from any lottery winnings 57 24 due the debtor without regard to limitations on the 57 25 amounts that may be collectable in increments through 57 26 garnishment or other proceedings. Such list shall 57 27 constitute a valid lien upon and claim of lien against 57 28 the lottery winnings of any debtor named in such list. 57 29 The list shall contain the names of the debtors, their 57 30 social security numbers if available, and any other 57 31 information that assists the authority in identifying 57 32 the debtors named in the list. 57 33 2. The authority is authorized and directed to 57 34 withhold any winnings paid out directly by the 57 35 authority subject to the lien created by this section 57 36 and send notice to the winner. However, if the winner 57 37 appears and claims winnings in person, the authority 57 38 shall notify the winner at that time by hand delivery 57 39 of such action. The authority shall pay the funds 57 40 over to the agency administering the offset program. 57 41 3. Notwithstanding the provisions of section 57 42 99G.34 which prohibit disclosure by the authority of 57 43 certain portions of the contents of prize winner 57 44 records or information, and notwithstanding any other 57 45 confidentiality statute, the authority may provide to 57 46 a claimant agency all information necessary to 57 47 accomplish and effectuate the intent of this section. 57 48 4. The information obtained by a claimant agency 57 49 from the authority in accordance with this section 57 50 shall retain its confidentiality and shall only be 58 1 used by a claimant agency in the pursuit of its debt 58 2 collection duties and practices. Any employee or 58 3 prior employee of any claimant agency who unlawfully 58 4 discloses any such information for any other purpose, 58 5 except as otherwise specifically authorized by law, 58 6 shall be subject to the same penalties specified by 58 7 law for unauthorized disclosure of confidential 58 8 information by an agent or employee of the authority. 58 9 5. Except as otherwise provided in this chapter, 58 10 attachments, garnishments, or executions authorized 58 11 and issued pursuant to law shall be withheld if timely 58 12 served upon the authority. 58 13 6. The provisions of this section shall only apply 58 14 to prizes paid directly by the authority and shall not 58 15 apply to any retailers authorized by the board to pay 58 16 prizes of up to six hundred dollars after deducting 58 17 the price of the ticket or share. 58 18 Sec. 95. NEW SECTION. 99G.42 COMPULSIVE GAMBLERS 58 19 – PRINTING ON TICKETS – INFORMATION AT RETAIL 58 20 OUTLETS. 58 21 The authority shall cooperate with the gambling 58 22 treatment program administered by the Iowa department 58 23 of public health to incorporate information regarding 58 24 the gambling treatment program and its toll-free 58 25 telephone number in printed materials distributed by 58 26 the authority. 58 27 Sec. 96. Section 7E.5, subsection 1, paragraph d, 58 28 Code 2003, is amended to read as follows: 58 29 d. The department of revenue and finance, created 58 30 in section 421.2, which has primary responsibility for 58 31 revenue collection and revenue law compliance, and 58 32 financial management and assistance, and the Iowa58 33lottery. 58 34 Sec. 97. Section 7E.6, subsection 3, Code 2003, is 58 35 amended to read as follows: 58 36 3. Any position of membership on thelotteryboard 58 37 of the Iowa lottery authority shall receive 58 38 compensation of fifty dollars per day and expenses. 58 39 Sec. 98. Section 8.22A, subsection 5, paragraph a, 58 40 Code 2003, is amended to read as follows: 58 41 a. The amount of lottery revenues for the 58 42 following fiscal year to be available for disbursement 58 43 following the deductions made pursuant to section 58 4499E.1099G.39, subsection 1. 58 45 Sec. 99. Section 8.57, subsection 5, paragraph e, 58 46 unnumbered paragraph 2, Code 2003, is amended to read 58 47 as follows: 58 48 If the total amount of moneys directed to be 58 49 deposited in the general fund of the state under 58 50 sections 99D.17 and 99F.11 in a fiscal year is less 59 1 than the total amount of moneys directed to be 59 2 deposited in the vision Iowa fund and the school 59 3 infrastructure fund in the fiscal year pursuant to 59 4 this paragraph "e", the difference shall be paid from 59 5 lottery revenues in the manner provided in section 59 699E.1099G.39, subsection 3. 59 7 Sec. 100. Section 68B.35, subsection 2, paragraph 59 8 e, Code 2003, is amended to read as follows: 59 9 e. Members of the banking board, the ethics and 59 10 campaign disclosure board, the credit union review 59 11 board, the economic development board, the employment 59 12 appeal board, the environmental protection commission, 59 13 the health facilities council, the Iowa finance 59 14 authority, the Iowa public employees' retirement 59 15 system investment board, thelotteryboard of the Iowa 59 16 lottery authority, the natural resource commission, 59 17 the board of parole, the petroleum underground storage 59 18 tank fund board, the public employment relations 59 19 board, the state racing and gaming commission, the 59 20 state board of regents, the tax review board, the 59 21 transportation commission, the office of consumer 59 22 advocate, the utilities board, the Iowa 59 23 telecommunications and technology commission, and any 59 24 full-time members of other boards and commissions as 59 25 defined under section 7E.4 who receive an annual 59 26 salary for their service on the board or commission. 59 27 Sec. 101. Section 99A.10, Code 2003, is amended to 59 28 read as follows: 59 29 99A.10 MANUFACTURE AND DISTRIBUTION OF GAMBLING 59 30 DEVICES PERMITTED. 59 31 A person may manufacture or act as a distributor 59 32 for gambling devices for sale out of the state in 59 33 another jurisdiction where possession of the device is 59 34 legal or for sale in the state or use in the state if 59 35 the use is permitted pursuant to either chapter 99B or 59 36 chapter99E99G. 59 37 Sec. 102. Section 99B.1, subsection 17, Code 2003, 59 38 is amended to read as follows: 59 39 17. "Merchandise" includes lottery tickets or 59 40 shares sold or authorized under chapter99E99G. The 59 41 value of the ticket or share is the price of the 59 42 ticket or share as established by the lottery division 59 43 of the department of revenue and finance pursuant to 59 44 chapter99E99G. 59 45 Sec. 103. Section 99B.6, subsection 5, Code 2003, 59 46 is amended to read as follows: 59 47 5. Lottery tickets or shares authorized pursuant 59 48 to chapter99E99G may be sold on the premises of an 59 49 establishment that serves or sells alcoholic 59 50 beverages, wine, or beer as defined in section 123.3. 60 1 Sec. 104. Section 99B.7, subsection 1, paragraph 60 2 l, subparagraph (1), Code 2003, is amended to read as 60 3 follows: 60 4 (1) No other gambling is engaged in at the same 60 5 location, except that lottery tickets or shares issued 60 6 by the lottery division of the department of revenue 60 7 and finance may be sold pursuant to chapter99E99G. 60 8 Sec. 105. Section 99B.15, Code 2003, is amended to 60 9 read as follows: 60 10 99B.15 APPLICABILITY OF CHAPTER – PENALTY. 60 11 It is the intent and purpose of this chapter to 60 12 authorize gambling in this state only to the extent 60 13 specifically permitted by a section of this chapter or 60 14 chapter 99D,99E, or99F, or 99G. Except as otherwise 60 15 provided in this chapter, the knowing failure of any 60 16 person to comply with the limitations imposed by this 60 17 chapter constitutes unlawful gambling, a serious 60 18 misdemeanor. 60 19 Sec. 106. Section 99F.2, Code 2003, is amended to 60 20 read as follows: 60 21 99F.2 SCOPE OF PROVISIONS. 60 22 This chapter does not apply to the pari-mutuel 60 23 system of wagering used or intended to be used in 60 24 connection with the horse-race or dog-race meetings as 60 25 authorized under chapter 99D, lottery or lotto games 60 26 authorized under chapter99E99G, or bingo or games of 60 27 skill or chance authorized under chapter 99B. 60 28 Sec. 107. Section 99F.11, subsection 3, Code 2003, 60 29 is amended to read as follows: 60 30 3. Three-tenths of one percent of the adjusted 60 31 gross receipts shall be deposited in the gambling 60 32 treatment fund specified in section99E.1099G.39, 60 33 subsection 1, paragraph "a". 60 34 Sec. 108. Section 123.49, subsection 2, paragraph 60 35 a, Code 2003, is amended to read as follows: 60 36 a. Knowingly permit any gambling, except in 60 37 accordance with chapter 99B, 99D,99E, or99F, or 99G, 60 38 or knowingly permit solicitation for immoral purposes, 60 39 or immoral or disorderly conduct on the premises 60 40 covered by the license or permit. 60 41 Sec. 109. Section 321.19, subsection 1, unnumbered 60 42 paragraph 2, Code 2003, is amended to read as follows: 60 43 The department shall furnish, on application, free 60 44 of charge, distinguishing plates for vehicles thus 60 45 exempted, which plates except plates on Iowa state 60 46 patrol vehicles shall bear the word "official" and the 60 47 department shall keep a separate record. Registration 60 48 plates issued for Iowa state patrol vehicles, except 60 49 unmarked patrol vehicles, shall bear two red stars on 60 50 a yellow background, one before and one following the 61 1 registration number on the plate, which registration 61 2 number shall be the officer's badge number. 61 3 Registration plates issued for county sheriff's patrol 61 4 vehicles shall display one seven-pointed gold star 61 5 followed by the letter "S" and the call number of the 61 6 vehicle. However, the director of general services or 61 7 the director of transportation may order the issuance 61 8 of regular registration plates for any exempted 61 9 vehicle used by peace officers in the enforcement of 61 10 the law, persons enforcing chapter 124 and other laws 61 11 relating to controlled substances, persons in the 61 12 department of justice, the alcoholic beverages 61 13 division of the department of commerce, disease 61 14 investigators of the Iowa department of public health, 61 15 the department of inspections and appeals, and the 61 16 department of revenue and finance, who are regularly 61 17 assigned to conduct investigations which cannot 61 18 reasonably be conducted with a vehicle displaying 61 19 "official" state registration plates, persons in the 61 20 Iowa lotterydivision of the department of revenue and61 21financeauthority whose regularly assigned duties 61 22 relating to security or the carrying of lottery 61 23 tickets cannot reasonably be conducted with a vehicle 61 24 displaying "official" registration plates, and persons 61 25 in the department of economic development who are 61 26 regularly assigned duties relating to existing 61 27 industry expansion or business attraction. For 61 28 purposes of sale of exempted vehicles, the exempted 61 29 governmental body, upon the sale of the exempted 61 30 vehicle, may issue for in-transit purposes a 61 31 pasteboard card bearing the words "Vehicle in 61 32 Transit", the name of the official body from which the 61 33 vehicle was purchased, together with the date of the 61 34 purchase plainly marked in at least one-inch letters, 61 35 and other information required by the department. The 61 36 in-transit card is valid for use only within forty- 61 37 eight hours after the purchase date as indicated on 61 38 the bill of sale which shall be carried by the driver. 61 39 Sec. 110. Section 421.17, subsection 27, Code 61 40 2003, is amended by striking the subsection. 61 41 Sec. 111. Section 422.16, subsection 1, unnumbered 61 42 paragraph 4, Code 2003, is amended to read as follows: 61 43 For the purposes of this subsection, state income 61 44 tax shall be withheld on winnings in excess of six 61 45 hundred dollars derived from gambling activities 61 46 authorized under chapter 99B or99E99G. State income 61 47 tax shall be withheld on winnings in excess of one 61 48 thousand dollars from gambling activities authorized 61 49 under chapter 99D. State income tax shall be withheld 61 50 on winnings in excess of twelve hundred dollars 62 1 derived from slot machines authorized under chapter 62 2 99F. 62 3 Sec. 112. Section 422.43, subsection 2, Code 2003, 62 4 is amended to read as follows: 62 5 2. There is imposed a tax of five percent upon the 62 6 gross receipts derived from the operation of all forms 62 7 of amusement devices and games of skill, games of 62 8 chance, raffles, and bingo games as defined in chapter 62 9 99B, operated or conducted within the state, the tax 62 10 to be collected from the operator in the same manner 62 11 as for the collection of taxes upon the gross receipts 62 12 of tickets or admission as provided in this section. 62 13The tax shall also be imposed upon the gross receipts62 14derived from the sale of lottery tickets or shares62 15pursuant to chapter 99E. The tax on the lottery62 16tickets or shares shall be included in the sales price62 17and distributed to the general fund as provided in62 18section 99E.10.62 19 Sec. 113. Section 422B.8, unnumbered paragraph 1, 62 20 Code 2003, is amended to read as follows: 62 21 A local sales and services tax at the rate of not 62 22 more than one percent may be imposed by a county on 62 23 the gross receipts taxed by the state under chapter 62 24 422, division IV. A local sales and services tax 62 25 shall be imposed on the same basis as the state sales 62 26 and services tax or in the case of the use of natural 62 27 gas, natural gas service, electricity, or electric 62 28 service on the same basis as the state use tax and 62 29 shall not be imposed on the sale of any property or on 62 30 any service not taxed by the state, except the tax 62 31 shall not be imposed on the gross receipts from the 62 32 sale of motor fuel or special fuel as defined in 62 33 chapter 452A which is consumed for highway use or in 62 34 watercraft or aircraft if the fuel tax is paid on the 62 35 transaction and a refund has not or will not be 62 36 allowed, on the gross receipts from the rental of 62 37 rooms, apartments, or sleeping quarters which are 62 38 taxed under chapter 422A during the period the hotel 62 39 and motel tax is imposed, on the gross receipts from 62 40 the sale of equipment by the state department of 62 41 transportation, on the gross receipts from the sale of 62 42 self-propelled building equipment, pile drivers, 62 43 motorized scaffolding, or attachments customarily 62 44 drawn or attached to self-propelled building 62 45 equipment, pile drivers, and motorized scaffolding, 62 46 including auxiliary attachments which improve the 62 47 performance, safety, operation, or efficiency of the 62 48 equipment and replacement parts and are directly and 62 49 primarily used by contractors, subcontractors, and 62 50 builders for new construction, reconstruction, 63 1 alterations, expansion, or remodeling of real property 63 2 or structures, and on the gross receipts from the sale 63 3 of a lottery ticket or share in a lottery game 63 4 conducted pursuant to chapter99E99G and except the 63 5 tax shall not be imposed on the gross receipts from 63 6 the sale or use of natural gas, natural gas service, 63 7 electricity, or electric service in a city or county 63 8 where the gross receipts from the sale of natural gas 63 9 or electric energy are subject to a franchise fee or 63 10 user fee during the period the franchise or user fee 63 11 is imposed. A local sales and services tax is 63 12 applicable to transactions within those incorporated 63 13 and unincorporated areas of the county where it is 63 14 imposed and shall be collected by all persons required 63 15 to collect state gross receipts taxes. However, a 63 16 person required to collect state retail sales tax 63 17 under chapter 422, division IV, is not required to 63 18 collect local sales and services tax on transactions 63 19 delivered within the area where the local sales and 63 20 services tax is imposed unless the person has physical 63 21 presence in that taxing area. All cities contiguous 63 22 to each other shall be treated as part of one 63 23 incorporated area and the tax would be imposed in each 63 24 of those contiguous cities only if the majority of 63 25 those voting in the total area covered by the 63 26 contiguous cities favor its imposition. 63 27 Sec. 114. Section 422E.3, subsection 2, Code 2003, 63 28 is amended to read as follows: 63 29 2. The tax shall be imposed on the same basis as 63 30 the state sales and services tax or in the case of the 63 31 use of natural gas, natural gas service, electricity, 63 32 or electric service on the same basis as the state use 63 33 tax and shall not be imposed on the sale of any 63 34 property or on any service not taxed by the state, 63 35 except the tax shall not be imposed on the gross 63 36 receipts from the sale of motor fuel or special fuel 63 37 as defined in chapter 452A which is consumed for 63 38 highway use or in watercraft or aircraft if the fuel 63 39 tax is paid on the transaction and a refund has not or 63 40 will not be allowed, on the gross receipts from the 63 41 rental of rooms, apartments, or sleeping quarters 63 42 which are taxed under chapter 422A during the period 63 43 the hotel and motel tax is imposed, on the gross 63 44 receipts from the sale of equipment by the state 63 45 department of transportation, on the gross receipts 63 46 from the sale of self-propelled building equipment, 63 47 pile drivers, motorized scaffolding, or attachments 63 48 customarily drawn or attached to self-propelled 63 49 building equipment, pile drivers, and motorized 63 50 scaffolding, including auxiliary attachments which 64 1 improve the performance, safety, operation, or 64 2 efficiency of the equipment, and replacement parts and 64 3 are directly and primarily used by contractors, 64 4 subcontractors, and builders for new construction, 64 5 reconstruction, alterations, expansion, or remodeling 64 6 of real property or structures, and on the gross 64 7 receipts from the sale of a lottery ticket or share in 64 8 a lottery game conducted pursuant to chapter99E99G 64 9 and except the tax shall not be imposed on the gross 64 10 receipts from the sale or use of natural gas, natural 64 11 gas service, electricity, or electric service in a 64 12 city or county where the gross receipts from the sale 64 13 of natural gas or electric energy are subject to a 64 14 franchise fee or user fee during the period the 64 15 franchise or user fee is imposed. 64 16 Sec. 115. Section 537A.4, unnumbered paragraph 2, 64 17 Code 2003, is amended to read as follows: 64 18 This section does not apply to a contract for the 64 19 operation of or for the sale or rental of equipment 64 20 for games of skill or games of chance, if both the 64 21 contract and the games are in compliance with chapter 64 22 99B. This section does not apply to wagering under 64 23 the pari-mutuel method of wagering authorized by 64 24 chapter 99D. This section does not apply to the sale, 64 25 purchase or redemption of a ticket or share in the 64 26 state lottery in compliance with chapter99E99G. 64 27 This section does not apply to wagering under the 64 28 excursion boat gambling method of wagering authorized 64 29 by chapter 99F. This section does not apply to the 64 30 sale, purchase, or redemption of any ticket or similar 64 31 gambling device legally purchased in Indian lands 64 32 within this state. 64 33 Sec. 116. Section 714B.10, subsection 1, Code 64 34 2003, is amended to read as follows: 64 35 1. Advertising by sponsors registered pursuant to 64 36 chapter 557B, licensed pursuant to chapter 99B, or 64 37 regulated pursuant to chapter 99D,99E, or99F, or 64 38 99G. 64 39 Sec. 117. Section 725.9, subsection 5, Code 2003, 64 40 is amended to read as follows: 64 41 5. This chapter does not prohibit the possession 64 42 of gambling devices by a manufacturer or distributor 64 43 if the possession is solely for sale out of the state 64 44 in another jurisdiction where possession of the device 64 45 is legal or for sale in the state or use in the state 64 46 if the use is licensed pursuant to either chapter 99B 64 47 or chapter99E99G. 64 48 Sec. 118. Section 725.15, Code 2003, is amended to 64 49 read as follows: 64 50 725.15 EXCEPTIONS FOR LEGAL GAMBLING. 65 1 Sections 725.5 to 725.10 and 725.12 do not apply to 65 2 a game, activity, ticket, or device when lawfully 65 3 possessed, used, conducted, or participated in 65 4 pursuant to chapter 99B,99E, or99F, or 99G. 65 5 Sec. 119. Chapter 99E, Code 2003, is repealed. 65 6 Sec. 120. IOWA LOTTERY AUTHORITY – TRANSITION 65 7 PROVISIONS. 65 8 1. For purposes of this section, unless the 65 9 context otherwise requires: 65 10 a. "Iowa lottery authority" means the Iowa lottery 65 11 authority as created in this Act pursuant to chapter 65 12 99G. 65 13 b. "Iowa lottery board" means the five-member 65 14 board established pursuant to 1985 Iowa Acts, chapter 65 15 33, section 105. 65 16 c. "Lottery division" means the lottery division 65 17 of the department of revenue and finance established 65 18 pursuant to 1985 Iowa Acts, chapter 33, section 103. 65 19 2. The Iowa lottery authority shall be the legal 65 20 successor to the lottery division and, as such, shall 65 21 assume all rights, privileges, obligations, and 65 22 responsibilities of the lottery division. The 65 23 promulgated rules of the lottery division shall remain 65 24 in full force and effect as the rules of the authority 65 25 until amended or repealed by the authority. In 65 26 addition, the Iowa lottery authority may continue the 65 27 security practices and procedures utilized by the 65 28 lottery division until amended or repealed by the 65 29 authority. 65 30 3. The Iowa lottery authority is created effective 65 31 at 12:01 a.m. on September 1, 2003, upon which date 65 32 and time the authority shall become the legal 65 33 successor to the lottery division. Until the 65 34 aforesaid date and time, no business shall be 65 35 conducted by the authority on behalf of the lottery, 65 36 provided, however, that the Iowa lottery commissioner 65 37 and Iowa lottery board shall implement such measures 65 38 as are appropriate to ensure a smooth transition from 65 39 the agency to the Iowa lottery authority as of the 65 40 effective date of succession. 65 41 4. Notwithstanding any provision of chapter 99G, 65 42 as created by this Act, to the contrary, the 65 43 commissioner of the Iowa lottery established pursuant 65 44 to 1985 Iowa Acts, chapter 33, section 103, as amended 65 45 by 1986 Iowa Acts, chapter 1245, section 404, shall 65 46 serve as the initial chief executive officer of the 65 47 Iowa lottery authority. In addition, notwithstanding 65 48 any provision of section 99G.9, as created by this 65 49 Act, to the contrary, the term of office for the chief 65 50 executive officer of the Iowa lottery authority as of 66 1 September 1, 2003, shall end April 30, 2008. 66 2 5. Notwithstanding any provision of chapter 99G, 66 3 as created by this Act, to the contrary, the initial 66 4 board of directors of the Iowa lottery authority shall 66 5 consist of the duly appointed and confirmed members of 66 6 the Iowa lottery board serving at the date of 66 7 succession. Said board members shall serve as members 66 8 of the Iowa lottery authority's board of directors 66 9 throughout the remainder of their respective Iowa 66 10 lottery board terms, subject to earlier resignation or 66 11 removal from office for cause as provided by this Act. 66 12 6. Personnel of the lottery division employed on 66 13 September 1, 2003, shall transition to the Iowa 66 14 lottery authority as the initial authority employees. 66 15 7. Whereas the lottery division was authorized 66 16 only as a self-funded enterprise and except for an 66 17 initial appropriation for start-up expenses, funds of 66 18 the state have not been authorized for use or 66 19 obligation to pay the expenses or prizes of the 66 20 lottery division. The Iowa lottery authority shall 66 21 function as the legal successor to the lottery 66 22 division and shall assume all of the assets and 66 23 obligations of the lottery division, and funds of the 66 24 state shall not be used or obligated to pay the 66 25 expenses or prizes of the authority or its 66 26 predecessor, the lottery division. 66 27 8. In order to effect an immediate and efficient 66 28 transition of the lottery from the lottery division to 66 29 the Iowa lottery authority, as soon as practicable, 66 30 the Iowa lottery authority shall do all of the 66 31 following: 66 32 a. Take such steps and enter into such agreements 66 33 as the board of the Iowa lottery authority may 66 34 determine are necessary and proper in order to effect 66 35 the transfer, assignment, and delivery to the 66 36 authority from the state of all the tangible and 66 37 intangible assets constituting the lottery, including 66 38 the exclusive right to operate the lottery and the 66 39 assignment to and assumption by the authority of all 66 40 agreements, covenants, and obligations of the lottery 66 41 division and other agencies of the state, relating to 66 42 the operation and management of the lottery. 66 43 b. Receive as transferee from the state of Iowa 66 44 all of the tangible and intangible assets constituting 66 45 the lottery including, without limitation, the 66 46 exclusive authorization to operate a lottery in the 66 47 state of Iowa and ownership of annuities and bonds 66 48 purchased prior to the date of transfer and held in 66 49 the name of the Iowa lottery for payment of lottery 66 50 prizes, and shall assume and discharge all of the 67 1 agreements, covenants, and obligations of the lottery 67 2 division entered into and constituting part of the 67 3 operation and management of the lottery. In 67 4 consideration for such transfer and assumption, the 67 5 Iowa lottery authority shall transfer to the state all 67 6 net profits of the authority, at such times and 67 7 subject to such financial transfer requirements as are 67 8 provided in this Act. 67 9 c. Have perpetual succession as an instrumentality 67 10 of the state and a public authority. 67 11 9. Notwithstanding any provision of chapter 99G, 67 12 as created by this Act, to the contrary, the following 67 13 provisions shall apply to the Iowa lottery authority: 67 14 a. Moneys appropriated from the lottery fund to 67 15 the department of revenue and finance, for 67 16 administration of the lottery for the fiscal year 67 17 beginning July 1, 2003, and unexpended prior to 67 18 September 1, 2003, shall be appropriated to the Iowa 67 19 lottery authority for operation of the lottery. 67 20 b. Of the moneys collected by the lottery division 67 21 and Iowa lottery authority for the fiscal year 67 22 beginning July 1, 2003, fifty-four million eight 67 23 hundred thousand dollars shall be transferred to the 67 24 general fund of the state. 67 25 c. Any authority for establishing the budget of 67 26 the Iowa lottery authority pursuant to chapter 99G, as 67 27 created by this Act, shall only apply for the fiscal 67 28 year beginning July 1, 2004, and each succeeding 67 29 fiscal year. 67 30 Sec. 121. EFFECTIVE DATE. This division of this 67 31 Act, creating the Iowa lottery authority, takes effect 67 32 September 1, 2003." 67 33 #2. Title page, by striking lines 1 through 4 and 67 34 inserting the following: "An Act relating to state 67 35 and local government financial and regulatory matters, 67 36 making and reducing appropriations, providing a fee, 67 37 increasing civil penalties, and providing 67 38 applicability and effective dates." 67 39 67 40 67 41 67 42 DIX of Butler 67 43 HF 691.306 80 67 44 jp/cf
Text: H01471 Text: H01473 Text: H01400 - H01499 Text: H Index Bills and Amendments: General Index Bill History: General Index
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