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PAG LIN 1 1 DIVISION I 1 2 LEGISLATIVE FINDINGS 1 3 Section 1. LEGISLATIVE FINDINGS. It is the finding of the 1 4 general assembly that the recent Iowa supreme court decision 1 5 of Rants and Iverson v. Vilsack, No. 60/03=1948, June 16, 1 6 2004, has invalidated the proper enactment of provisions 1 7 contained in 2003 Iowa Acts, First Extraordinary Session, 1 8 chapter 1 (House File 692). It is the intent of the general 1 9 assembly to reenact and reaffirm certain provisions of House 1 10 File 692 that were published in the 2003 Iowa Code Supplement, 1 11 including provisions that were subsequently amended in the 1 12 2004 regular session of the Eightieth General Assembly and 1 13 validate contracts entered into in reliance on the enactment 1 14 of provisions published in the 2003 Code Supplement. 1 15 Sec. 2. EFFECTIVE DATE. This division of this Act, being 1 16 deemed of immediate importance, takes effect upon enactment. 1 17 DIVISION II 1 18 ENDOW IOWA GRANTS 1 19 Sec. 3. The following provisions, as published in Iowa 1 20 Code Supplement 2003, pertaining to endow Iowa grants, are 1 21 reaffirmed and reenacted: 1 22 1. Section 15E.301. 1 23 2. Section 15E.302. 1 24 3. Section 15E.303. 1 25 4. Section 15E.304. 1 26 5. Section 15E.306. 1 27 Sec. 4. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY 1 28 PROVISIONS. This division of this Act, being deemed of 1 29 immediate importance, takes effect upon enactment, and is 1 30 retroactively applicable to January 1, 2003, for tax years 1 31 beginning on or after that date. 1 32 DIVISION III 1 33 CIVIL ACTION APPEAL BONDS 1 34 Sec. 5. Section 625A.9, as published in Iowa Code 1 35 Supplement 2003, pertaining to supersedeas bonds, is 2 1 reaffirmed and reenacted. 2 2 Sec. 6. Section 625A.9, subsection 2, Code Supplement 2 3 2003, as reaffirmed and reenacted by this division of this 2 4 Act, is amended to read as follows: 2 5 2. a.IfExcept as provided in paragraph "b", if the 2 6 judgment or order appealed from is for money, such bond shall 2 7 not exceed one hundred ten percent of the amount of the money 2 8 judgment. 2 9 The court may set a bond in an amount in excess of one 2 10 hundred ten percent of the amount of the money judgment upon 2 11 making specific findings justifying such an amount, and in 2 12 doing so, shall consider, but shall not be limited to 2 13 consideration of, the following criteria: 2 14 (1) The availability and cost of the bond or other form of 2 15 adequate security. 2 16 (2) The assets of the judgment debtor and of the judgment 2 17 debtor's insurer or indemnitor, if any. 2 18 (3) The potential adverse effects of the bond on the 2 19 judgment debtor, including, but not limited to, the potential 2 20 adverse effects on the judgment debtor's employees, financial 2 21 stability, and business operations. 2 22 (4) The potential adverse effects of the bond on the 2 23 judgment creditor and third parties, including public 2 24 entities. 2 25 (5) In a class action suit, the adequacy of the bond to 2 26 compensate all members of the class. 2 27 b. Notwithstanding paragraph "a", in no case shall a bond 2 28 exceed one hundred million dollars, regardless of the value of 2 29 the money judgment. This limitation shall not apply in cases 2 30 where the court finds that the defendant intentionally 2 31 dissipated the defendant's assets outside the ordinary course 2 32 of business for the purpose of evading payment of the 2 33 judgment. 2 34 Sec. 7. 2004 Iowa Acts, Senate File 2306, is repealed. 2 35 Sec. 8. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY 3 1 PROVISIONS. 3 2 1. The section of this division of this Act reaffirming 3 3 and reenacting section 625A.9, being deemed of immediate 3 4 importance, takes effect upon enactment, and applies 3 5 retroactively to July 1, 2003. 3 6 2. The section of this division of this Act amending 3 7 section 625A.9, as reaffirmed and reenacted by this division 3 8 of this Act, being deemed of immediate importance, takes 3 9 effect upon enactment of this Act, and applies retroactively 3 10 to cases pending and filed on or after April 20, 2004, and 3 11 through June 15, 2004, and to cases pending or filed on or 3 12 after June 16, 2004. 3 13 3. The section of this division of this Act repealing 2004 3 14 Iowa Acts, Senate File 2306, being deemed of immediate 3 15 importance, takes effect upon enactment. 3 16 4. This section of this division of this Act, being deemed 3 17 of immediate importance, takes effect upon enactment. 3 18 DIVISION IV 3 19 WORKERS' COMPENSATION 3 20 Sec. 9. Section 85.27, subsection 4, Code 2003, is amended 3 21 to read as follows: 3 22 4. For purposes of this section, the employer is obliged 3 23 to furnish reasonable services and supplies to treat an 3 24 injured employee, and has the right to choose the care. If 3 25 the employer chooses the care, the employer shall hold the 3 26 employee harmless for the cost of care until the employer 3 27 notifies the employee that the employer is no longer 3 28 authorizing all or any part of the care and the reason for the 3 29 change in authorization. An employer is not liable for the 3 30 cost of care that the employer arranges in response to a 3 31 sudden emergency if the employee's condition, for which care 3 32 was arranged, is not related to the employment. The treatment 3 33 must be offered promptly and be reasonably suited to treat the 3 34 injury without undue inconvenience to the employee. If the 3 35 employee has reason to be dissatisfied with the care offered, 4 1 the employee should communicate the basis of such 4 2 dissatisfaction to the employer, in writing if requested, 4 3 following which the employer and the employee may agree to 4 4 alternate care reasonably suited to treat the injury. If the 4 5 employer and employee cannot agree on such alternate care, the 4 6 commissioner may, upon application and reasonable proofs of 4 7 the necessity therefor, allow and order other care. In an 4 8 emergency, the employee may choose the employee's care at the 4 9 employer's expense, provided the employer or the employer's 4 10 agent cannot be reached immediately. An application made 4 11 under this subsection shall be considered an original 4 12 proceeding for purposes of commencement and contested case 4 13 proceedings under section 85.26. The hearing shall be 4 14 conducted pursuant to chapter 17A. Before a hearing is 4 15 scheduled, the parties may choose a telephone hearing or an 4 16 in=person hearing. A request for an in=person hearing shall 4 17 be approved unless the in=person hearing would be impractical 4 18 because of the distance between the parties to the hearing. 4 19 The workers' compensation commissioner shall issue a decision 4 20 within ten working days of receipt of an application for 4 21 alternate care made pursuant to a telephone hearing or within 4 22 fourteen working days of receipt of an application for 4 23 alternate care made pursuant to an in=person hearing. The 4 24 employer shall notify an injured employee of the employee's 4 25 ability to contest the employer's choice of care pursuant to 4 26 this subsection. 4 27 Sec. 10. Section 85.34, subsection 2, paragraph u, Code 4 28 2003, is amended to read as follows: 4 29 u. In all cases of permanent partial disability other than 4 30 those hereinabove described or referred to in paragraphs "a" 4 31 through "t" hereof, the compensation shall be paid during the 4 32 number of weeks in relation to five hundred weeks as the 4 33 reduction in the employee's earning capacity caused by the 4 34 disability bears in relation to thebody of the injured4 35 earning capacity that the employeeas a wholepossessed when 5 1 the injury occurred. 5 2 Sec. 11. Section 85.34, Code 2003, is amended by adding 5 3 the following new subsection: 5 4 NEW SUBSECTION. 7. SUCCESSIVE DISABILITIES. 5 5 a. An employer is fully liable for compensating all of an 5 6 employee's disability that arises out of and in the course of 5 7 the employee's employment with the employer. An employer is 5 8 not liable for compensating an employee's preexisting 5 9 disability that arose out of and in the course of employment 5 10 with a different employer or from causes unrelated to 5 11 employment. 5 12 b. If an injured employee has a preexisting disability 5 13 that was caused by a prior injury arising out of and in the 5 14 course of employment with the same employer, and the 5 15 preexisting disability was compensable under the same 5 16 paragraph of section 85.34, subsection 2, as the employee's 5 17 present injury, the employer is liable for the combined 5 18 disability that is caused by the injuries, measured in 5 19 relation to the employee's condition immediately prior to the 5 20 first injury. In this instance, the employer's liability for 5 21 the combined disability shall be considered to be already 5 22 partially satisfied to the extent of the percentage of 5 23 disability for which the employee was previously compensated 5 24 by the employer. 5 25 If, however, an employer is liable to an employee for a 5 26 combined disability that is payable under section 85.34, 5 27 subsection 2, paragraph "u", and the employee has a 5 28 preexisting disability that causes the employee's earnings to 5 29 be less at the time of the present injury than if the prior 5 30 injury had not occurred, the employer's liability for the 5 31 combined disability shall be considered to be already 5 32 partially satisfied to the extent of the percentage of 5 33 disability for which the employee was previously compensated 5 34 by the employer minus the percentage that the employee's 5 35 earnings are less at the time of the present injury than if 6 1 the prior injury had not occurred. 6 2 c. A successor employer shall be considered to be the same 6 3 employer if the employee became part of the successor 6 4 employer's workforce through a merger, purchase, or other 6 5 transaction that assumes the employee into the successor 6 6 employer's workforce without substantially changing the nature 6 7 of the employee's employment. 6 8 Sec. 12. Section 85.36, subsection 9, paragraph c, Code 6 9 2003, is amended by striking the paragraph. 6 10 Sec. 13. Section 85.70, Code 2003, is amended to read as 6 11 follows: 6 12 85.70 ADDITIONAL PAYMENT FOR ATTENDANCE. 6 13 An employee who has sustained an injury resulting in 6 14 permanent partial or permanent total disability, for which 6 15 compensation is payable under this chapter, and who cannot 6 16 return to gainful employment because of such disability, shall 6 17 upon application to and approval by the workers' compensation 6 18 commissioner be entitled to atwenty=dollarone hundred dollar 6 19 weekly payment from the employer in addition to any other 6 20 benefit payments, during each full week in which the employee 6 21 is actively participating in a vocational rehabilitation 6 22 program recognized by the vocational rehabilitation services 6 23 division of the department of education. The workers' 6 24 compensation commissioner's approval of such application for 6 25 payment may be given only after a careful evaluation of 6 26 available facts, and after consultation with the employer or 6 27 the employer's representative. Judicial review of the 6 28 decision of the workers' compensation commissioner may be 6 29 obtained in accordance with the terms of the Iowa 6 30 administrative procedure Act and in section 86.26. Such 6 31 additional benefit payment shall be paid for a period not to 6 32 exceed thirteen consecutive weeks except that the workers' 6 33 compensation commissioner may extend the period of payment not 6 34 to exceed an additional thirteen weeks if the circumstances 6 35 indicate that a continuation of training will in fact 7 1 accomplish rehabilitation. 7 2 Sec. 14. Section 86.12, as published in Iowa Code 7 3 Supplement 2003, is reaffirmed and reenacted. 7 4 Sec. 15. Section 86.13A, as published in Iowa Code 7 5 Supplement 2003, is reaffirmed and reenacted. 7 6 Sec. 16. Section 86.13A, unnumbered paragraph 2, Code 7 7 Supplement 2003, as reaffirmed and reenacted by this Act, is 7 8 amended to read as follows: 7 9 If during any fiscal year commencing after June 30,20057 10 2006, the general business practices of an employer or insurer 7 11 result in the delay of the commencement of voluntary weekly 7 12 compensation payments after the date specified in section 7 13 85.30 more frequently and for a longer number of days than the 7 14 average number of days for the entire group of employers or 7 15 insurers, the commissioner may impose an assessment on the 7 16 employer or insurer payable to the second injury fund created 7 17 in section 85.66. The amount of the assessment shall be ten 7 18 dollars, multiplied by the average number of days that weekly 7 19 compensation payments were delayed after the date specified in 7 20 section 85.30, and multiplied by the number of injuries the 7 21 employer or insurer reported during the fiscal year. 7 22 Notwithstanding the foregoing, an assessment shall not be 7 23 imposed if the employer or insurer commenced voluntary weekly 7 24 compensation benefits within the time specified in section 7 25 85.30 for more than seventy=five percent of the injuries 7 26 reported by the employer or insurer. 7 27 Sec. 17. Section 85.55, Code 2003, is repealed. 7 28 Sec. 18. EFFECTIVE DATE AND APPLICABILITY PROVISIONS. The 7 29 sections of this division of this Act amending sections 85.27, 7 30 85.34, 85.36, and 85.70, and repealing section 85.55, being 7 31 deemed of immediate importance, take effect upon enactment and 7 32 apply to injuries occurring on or after that date. 7 33 Sec. 19. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY 7 34 PROVISIONS. The sections of this division of this Act 7 35 reaffirming and reenacting sections 86.12 and 86.13A and the 8 1 section of this division of this Act amending section 86.13A 8 2 as reaffirmed and reenacted, being deemed of immediate 8 3 importance, take effect upon enactment and are retroactively 8 4 applicable to injuries occurring on or after July 1, 2003. 8 5 Sec. 20. LEGISLATIVE INTENT. It is the intent of the 8 6 general assembly that this division of this Act will prevent 8 7 all double recoveries and all double reductions in workers' 8 8 compensation benefits for permanent partial disability. This 8 9 division modifies the fresh start and full responsibility 8 10 rules of law announced by the Iowa supreme court in a series 8 11 of judicial precedents. 8 12 The general assembly recognizes that the amount of 8 13 compensation a person receives for disability is directly 8 14 related to the person's earnings at the time of injury. The 8 15 competitive labor market determines the value of a person's 8 16 earning capacity through a strong correlation with the level 8 17 of earnings a person can achieve in the competitive labor 8 18 market. The market reevaluates a person as a working unit 8 19 each time the person competes in the competitive labor market, 8 20 causing a fresh start with each change of employment. The 8 21 market's determination effectively apportions any disability 8 22 through a reduced level of earnings. The market does not 8 23 reevaluate an employee's earning capacity while the employee 8 24 remains employed by the same employer. 8 25 The general assembly intends that an employer shall fully 8 26 compensate all of an injured employee's disability that is 8 27 caused by work=related injuries with the employer without 8 28 compensating the same disability more than once. This 8 29 division of this Act creates a formula that applies disability 8 30 payments made toward satisfaction of the combined disability 8 31 that the employer is liable for compensating, while taking 8 32 into account the impact of the employee's earnings on the 8 33 amount of compensation to be ultimately paid for the 8 34 disability. 8 35 The general assembly does not intend this division of this 9 1 Act to change the character of any disability from scheduled 9 2 to unscheduled or vice versa or to combine disabilities that 9 3 are not otherwise combined under law existing on the effective 9 4 date of this section of this division of this Act. 9 5 Combination of successive scheduled disabilities in section 9 6 85.34, subsection 7, as enacted in this division of this Act, 9 7 is limited to disabilities affecting the same member, such as 9 8 successive disabilities to the right arm. A disability to the 9 9 left arm that is followed by a disability to the right arm is 9 10 governed by section 85.64 and is not a successive disability 9 11 under this division. This division does not alter benefits 9 12 under the second injury fund, benefits for permanent total 9 13 disability under section 85.34, subsection 3, the method of 9 14 determining the degree of unscheduled permanent partial 9 15 disability, the compensable character of aggravation injuries, 9 16 or an employer's right to choose the care an injured employee 9 17 receives, expand the fresh start rule to scheduled 9 18 disabilities, or change existing law in any way that is not 9 19 expressly provided in this division. 9 20 The general assembly intends that changes in the identity 9 21 of the employer that do not require the employee to reenter 9 22 the competitive labor market will be treated as if the 9 23 employee remained employed by the same employer. 9 24 Sec. 21. EFFECTIVE DATE. Unless otherwise provided, this 9 25 division of this Act, being deemed of immediate importance, 9 26 takes effect upon enactment. 9 27 DIVISION V 9 28 FINANCIAL SERVICES 9 29 Sec. 22. The following provisions, as published in Iowa 9 30 Code Supplement 2003, pertaining to financial services, are 9 31 reaffirmed and reenacted: 9 32 1. Section 537.2502, subsections 3 and 6. 9 33 2. Section 537.2601, subsection 1. 9 34 Sec. 23. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY 9 35 PROVISIONS. This division of this Act, being deemed of 10 1 immediate importance, takes effect upon enactment, and is 10 2 retroactively applicable to July 1, 2003. 10 3 DIVISION VI 10 4 LOAN AND CREDIT GUARANTEE PROGRAM 10 5 Sec. 24. The following provisions, as published in Iowa 10 6 Code Supplement 2003, pertaining to the economic development 10 7 loan and credit guarantee program, are reaffirmed and 10 8 reenacted: 10 9 1. Section 15E.221. 10 10 2. Section 15E.222. 10 11 3. Section 15E.223. 10 12 4. Section 15E.224. 10 13 5. Section 15E.225. 10 14 Sec. 25. Section 15E.223, subsection 4, Code Supplement 10 15 2003, as reaffirmed and reenacted by this division of this 10 16 Act, is amended to read as follows: 10 17 4. "Targeted industry business" means an existing or 10 18 proposed business entity, including an emerging small business 10 19 or qualified business which is operated for profit and which 10 20 has a primary business purpose of doing business in at least 10 21 one of the targeted industries designated by the department 10 22 which include life sciences, software and information 10 23 technology, advanced manufacturing, value=added agriculture, 10 24 and any other industry designated as a targeted industry by 10 25 theloan and credit guarantee advisory boarddepartment. 10 26 Sec. 26. Section 15E.224, subsections 1, 3, 5, and 7, Code 10 27 Supplement 2003, as reaffirmed and reenacted by this division 10 28 of this Act, are amended to read as follows: 10 29 1. The department shall, with the advice of the loan and 10 30 credit guarantee advisory board,establish and administer a 10 31 loan and credit guarantee program. The department, pursuant 10 32 to agreements with financial institutions, shall provide loan 10 33 and credit guarantees, or other forms of credit guarantees for 10 34 qualified businesses and targeted industry businesses for 10 35 eligible project costs. A loan or credit guarantee provided 11 1 under the program may stand alone or may be used in 11 2 conjunction with or to enhance other loans or credit 11 3 guarantees offered by private, state, or federal entities. 11 4 The department may purchase insurance to cover defaulted loans 11 5 meeting the requirements of the program. However, the 11 6 department shall not in any manner directly or indirectly 11 7 pledge the credit of the state. Eligible project costs 11 8 include expenditures for productive equipment and machinery, 11 9 working capital for operations and export transactions, 11 10 research and development, marketing, and such other costs as 11 11 the department may so designate. 11 12 3. In administering the program, the department shall 11 13 consult and cooperate with financial institutions in this 11 14 stateand with the loan and credit guarantee advisory board. 11 15 Administrative procedures and application procedures, as 11 16 practicable, shall be responsive to the needs of qualified 11 17 businesses, targeted industry businesses, and financial 11 18 institutions, and shall be consistent with prudent investment 11 19 and lending practices and criteria. 11 20 5. The department, with the advice of the loan and credit 11 21 guarantee advisory board,shall adopt a loan or credit 11 22 guarantee application procedure for a financial institution on 11 23 behalf of a qualified business or targeted industry business. 11 24 7. The department, with the advice of the loan and credit 11 25 guarantee advisory board,may adopt loan and credit guarantee 11 26 application procedures that allow a qualified business or 11 27 targeted industry business to apply directly to the department 11 28 for a preliminary guarantee commitment. A preliminary 11 29 guarantee commitment may be issued by the department subject 11 30 to the qualified business or targeted industry business 11 31 securing a commitment for financing from a financial 11 32 institution. The application procedures shall specify the 11 33 process by which a financial institution may obtain a final 11 34 loan and credit guarantee. 11 35 Sec. 27. Section 15E.225, subsections 1 and 2, Code 12 1 Supplement 2003, as reaffirmed and reenacted by this division 12 2 of this Act, are amended to read as follows: 12 3 1. When entering into a loan or credit guarantee 12 4 agreement, the department, with the advice of the loan and 12 5 credit guarantee advisory board,shall establish fees and 12 6 other terms for participation in the program by qualified 12 7 businesses and targeted industry businesses. 12 8 2. The department, with due regard for the possibility of 12 9 losses and administrative costsand with the advice of the 12 10 loan and credit guarantee advisory board, shall set fees and 12 11 other terms at levels sufficient to assure that the program is 12 12 self=financing. 12 13 Sec. 28. Section 15E.227, subsection 2, paragraph c, Code 12 14 Supplement 2003, is amended by striking the paragraph. 12 15 Sec. 29. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY 12 16 PROVISIONS. This division of this Act, being deemed of 12 17 immediate importance, takes effect upon enactment, and is 12 18 retroactively applicable to July 1, 2003. 12 19 DIVISION VII 12 20 ADMINISTRATIVE CONTRIBUTION SURCHARGE 12 21 Sec. 30. Section 96.9, subsection 8, paragraph e, Code 12 22 Supplement 2003, is amended to read as follows: 12 23 e. Moneys from interest earned on the unemployment 12 24 compensation reserve fund shall be used by the department only 12 25 upon appropriation by the general assemblyand only for 12 26 purposes contained in section 96.7, subsection 12, for 12 27 department of workforce development rural satellite offices,12 28 and for administrative costs to collect the reserve 12 29 contributions. 12 30 Sec. 31. CODE EDITOR'S REMOVAL OF SECTION 96.7, SUBSECTION 12 31 12, FROM CODE. Consistent with the Iowa supreme court 12 32 decision of Rants and Iverson v. Vilsack, No. 60/03=1948, June 12 33 16, 2004, the general assembly acknowledges the Code editor's 12 34 removal of section 96.7, subsection 12, relating to the 12 35 administrative contribution surcharge and fund, from the Code, 13 1 due to the subsection's repeal effective July 1, 2003. 13 2 Sec. 32. EFFECTIVE DATE. This division of this Act, being 13 3 deemed of immediate importance, takes effect upon enactment 13 4 and applies retroactively to July 1, 2003. 13 5 DIVISION VIII 13 6 MARKETING 13 7 Sec. 33. Section 15G.109, as published in Iowa Code 13 8 Supplement 2003, pertaining to the economic development 13 9 marketing board, is reaffirmed and reenacted. 13 10 Sec. 34. Section 15G.109, subsections 1, 2, and 5, Code 13 11 Supplement 2003, as reaffirmed and reenacted by this division 13 12 of this Act, are amended by striking the subsections. 13 13 Sec. 35. Section 15G.109, subsections 3 and 4, Code 13 14 Supplement 2003, as reaffirmed and reenacted by this division 13 15 of this Act, are amended to read as follows: 13 163.The department of economic developmentmarketing board13 17 shall accept proposals for marketing strategies for purposes 13 18 of selecting a strategy for the department to administer. The 13 19 marketing strategies shall be designed to market Iowa as a 13 20 lifestyle, increase the population of the state, increase the 13 21 wealth of Iowans, and expand and stimulate the state economy. 13 22The economic development marketing board shall submit a 13 23 recommendation regarding the proposal to the grow Iowa values 13 24 board. In selecting a marketing strategy for recommendation, 13 25 the economic development marketing board shall base the 13 26 selection on the goals and performance measures provided in 13 27 section 15G.107. The grow Iowa values board shall either 13 28 approve or deny the recommendation.The department shall 13 29 select and approve a proposal that meets the requirements of 13 30 this subsection. 13 314.The department shall implement and administer the 13 32 approved marketing strategyapproved by the grow Iowa values 13 33 board as provided in subsection 3.The department shall 13 34 provide the economic development marketing board with 13 35 assistance in implementing administrative functions of the 14 1 board and provide technical assistance to the board.14 2 Sec. 36. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY. 14 3 This division of this Act, being deemed of immediate 14 4 importance, takes effect upon enactment. The section of this 14 5 division of this Act reaffirming and reenacting Code section 14 6 15G.109 is retroactively applicable to July 1, 2003. 14 7 DIVISION IX 14 8 INCOME TAXATION 14 9 BONUS DEPRECIATION AND EXPENSING ALLOWANCE 14 10 Sec. 37. Section 422.3, subsection 5, Code Supplement 14 11 2003, is amended to read as follows: 14 12 5. "Internal Revenue Code" means the Internal Revenue Code 14 13 of 1954, prior to the date of its redesignation as the 14 14 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 14 15 or means the Internal Revenue Code of 1986 as amended to and 14 16 including January 1, 2003, and as amended by Pub. L. No. 108= 14 17 27, section 202, whichever is applicable. 14 18 Sec. 38. Section 422.7, subsection 39, Code Supplement 14 19 2003, is amended to read as follows: 14 20 39. a. The additional first=year depreciation allowance 14 21 authorized in section 168(k) of the Internal Revenue Code, as 14 22 enacted by Pub. L. No. 107=147, section 101, does not apply in 14 23 computing net income for state tax purposes. If the taxpayer 14 24 has taken such deduction in computing federal adjusted gross 14 25 income, the following adjustments shall be made: 14 26a.(1) Add the total amount of depreciation taken on all 14 27 property for which the election under section 168(k) of the 14 28 Internal Revenue Code was made for the tax year. 14 29b.(2) Subtract an amount equal to depreciationtaken14 30 allowed on such property for the tax year using the modified 14 31 accelerated cost recovery system depreciation method 14 32 applicable under section 168 of the Internal Revenue Code 14 33 without regard to section 168(k). 14 34c.(3) Any other adjustments to gains or losses to 14 35 reflect the adjustments made inparagraphs "a" and "b"15 1 subparagraphs (1) and (2) pursuant to rules adopted by the 15 2 director. 15 3 b. The additional first=year depreciation allowance 15 4 authorized in section 168(k)(4) of the Internal Revenue Code, 15 5 as enacted by Pub. L. No. 108=27, shall apply in computing net 15 6 income for state tax purposes, for qualified property acquired 15 7 after May 5, 2003, and before January 1, 2005. 15 8 Sec. 39. Section 422.32, subsection 7, Code Supplement 15 9 2003, is amended to read as follows: 15 10 7. "Internal Revenue Code" means the Internal Revenue Code 15 11 of 1954, prior to the date of its redesignation as the 15 12 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 15 13 or means the Internal Revenue Code of 1986 as amended to and 15 14 including January 1, 2003, and as amended by Pub. L. No. 108= 15 15 27, section 202, whichever is applicable. 15 16 Sec. 40. Section 422.35, subsection 19, Code Supplement 15 17 2003, is amended to read as follows: 15 18 19. a. The additional first=year depreciation allowance 15 19 authorized in section 168(k) of the Internal Revenue Code, as 15 20 enacted by Pub. L. No. 107=147, section 101, does not apply in 15 21 computing net income for state tax purposes. If the taxpayer 15 22 has taken such deduction in computing taxable income, the 15 23 following adjustments shall be made: 15 24a.(1) Add the total amount of depreciation taken on all 15 25 property for which the election under section 168(k) of the 15 26 Internal Revenue Code was made for the tax year. 15 27b.(2) Subtract an amount equal to depreciationtaken15 28 allowed on such property for the tax year using the modified 15 29 accelerated cost recovery system depreciation method 15 30 applicable under section 168 of the Internal Revenue Code 15 31 without regard to section 168(k). 15 32c.(3) Any other adjustments to gains or losses to 15 33 reflect the adjustments made inparagraphs "a" and "b"15 34 subparagraphs (1) and (2) pursuant to rules adopted by the 15 35 director. 16 1 b. The additional first=year depreciation allowance 16 2 authorized in section 168(k)(4) of the Internal Revenue Code, 16 3 as enacted by Pub. L. No. 108=27, shall apply in computing net 16 4 income for state tax purposes, for qualified property acquired 16 5 after May 5, 2003, and before January 1, 2005. 16 6 Sec. 41. RETROACTIVE APPLICABILITY. 16 7 1. The sections of this division of this Act amending 16 8 section 422.7, subsection 39, and section 422.35, subsection 16 9 19, apply retroactively to tax years ending after May 5, 2003. 16 10 2. The sections of this division of this Act amending 16 11 sections 422.3, subsection 5, and 422.32, subsection 7, apply 16 12 retroactively to January 1, 2003, for tax years beginning on 16 13 or after that date. 16 14 Sec. 42. EFFECTIVE DATE. This division of this Act, being 16 15 deemed of immediate importance, takes effect upon enactment. 16 16 DIVISION X 16 17 ADVISORY CAPACITY OF BOARDS 16 18 Sec. 43. ADVISORY CAPACITY OF BOARDS. For only the fiscal 16 19 year beginning July 1, 2004, and ending June 30, 2005, the 16 20 establishment and existence of the grow Iowa values board, the 16 21 economic development marketing board, and the loan and credit 16 22 guarantee advisory board, as provided for in 2003 Iowa Acts, 16 23 First Extraordinary Session, chapter 1 (House File 692), are 16 24 validated. However, the boards shall serve only in an 16 25 advisory capacity to the department of economic development. 16 26 The composition of the boards shall consist of the membership 16 27 in existence on June 15, 2004. 16 28 Sec. 44. EFFECTIVE DATE PROVISION. This division of this 16 29 Act, being deemed of immediate importance, takes effect upon 16 30 enactment. 16 31 EXPLANATION 16 32 Unless provided otherwise, provisions take effect upon 16 33 enactment and are retroactively applicable to July 1, 2003. 16 34 The bill is organized into divisions. 16 35 LEGISLATIVE FINDINGS. This division states legislative 17 1 findings regarding the invalidity of provisions originally 17 2 contained in 2003 Iowa Acts, House File 692, due to the Iowa 17 3 supreme court decision of Rants and Iverson v. Vilsack. 17 4 Legislative intent is stated to reaffirm and reenact certain 17 5 invalidated provisions. The provisions affected were 17 6 published in the 2003 Iowa Code Supplement or amended in the 17 7 2004 regular legislative session. 17 8 ENDOW IOWA GRANTS. This division reaffirms and reenacts 17 9 provisions relating to endow Iowa grants. 17 10 CIVIL ACTION APPEAL BONDS. This division reaffirms and 17 11 reenacts provisions pertaining to supersedeas bonds, including 17 12 provisions contained in 2004 Iowa Acts, Senate File 2306, that 17 13 were invalidated by the Iowa supreme court decision. Senate 17 14 File 2306 is repealed. The division provides that the 17 15 provision reenacting Senate File 2306 applies retroactively to 17 16 cases pending and filed on or after April 20, 2004, and 17 17 through June 15, 2004, and to cases pending or filed on or 17 18 after June 16, 2004. 17 19 WORKERS' COMPENSATION. This division relates to certain 17 20 benefits and procedures related to workers' compensation and 17 21 contains an expression of legislative intent concerning the 17 22 changes made. 17 23 Code section 85.27, subsection 4, is amended to provide 17 24 that if an employer chooses medical care, the employer shall 17 25 hold the employee harmless for the cost of care until the 17 26 employer notifies the employee that the employer is no longer 17 27 authorizing all or part of the care and the reason for the 17 28 change in authorization. Also, an employer is not liable for 17 29 the cost of care that the employer arranges in response to a 17 30 sudden emergency if the employee's condition, for which care 17 31 was arranged, is not related to the employment. 17 32 Code section 85.34, subsection 2, paragraph "u", is amended 17 33 to provide that compensation for permanent partial disability 17 34 for nonscheduled injuries shall be paid for the number of 17 35 weeks in relation to 500 weeks as the reduction in the 18 1 employee's earning capacity caused by the disability bears in 18 2 relation to the earning capacity that the employee possessed 18 3 when the injury occurred. 18 4 Code section 85.34 is also amended by adding a new 18 5 subsection concerning compensation for successive 18 6 disabilities. The new subsection provides that an employer is 18 7 fully liable for compensating all of an employee's disability 18 8 that arises out of and in the course of the employee's 18 9 employment with the employer. The new subsection provides 18 10 that an employer is not liable for compensating an employee's 18 11 preexisting disability that arose out of and in the course of 18 12 employment with a different employer or from causes unrelated 18 13 to employment. 18 14 The amendment to Code section 85.34 also provides that if 18 15 an injured employee has a preexisting disability that was 18 16 caused by a prior injury arising out of and in the course of 18 17 employment with the same employer, and the preexisting 18 18 disability was compensable as a permanent partial disability 18 19 under the same paragraph of Code section 85.34, subsection 2, 18 20 as the employee's present injury, the employer is liable for 18 21 the combined disability that is caused by the injuries, 18 22 measured in relation to the employee's condition immediately 18 23 prior to the first injury. In this situation, the employer's 18 24 liability for the combined disability of the employee is 18 25 considered to be already partially satisfied to the extent of 18 26 the percentage of disability for which the employee was 18 27 previously paid by the employer. 18 28 The amendment to Code section 85.34 also provides that if 18 29 an employer is liable to an employee for a combined disability 18 30 that is payable under Code section 85.34, subsection 2, 18 31 paragraph "u", as a nonscheduled permanent partial disability, 18 32 and the employee has a preexisting disability that causes the 18 33 employee's earnings to be less at the time of the present 18 34 injury than if the prior injury had not occurred, the 18 35 employer's liability for the combined disability shall be 19 1 considered to be already partially satisfied to the extent of 19 2 the percentage of disability for which the employee was 19 3 previously compensated by the employer minus the percentage 19 4 that the employee's earning capacity is less at the time of 19 5 the present injury than if the prior injury had not occurred. 19 6 The amendment to Code section 85.34 also provides that a 19 7 successor employer is considered to be the same employer for 19 8 the purposes of Code section 85.34 if the employee became part 19 9 of the successor employer's workforce through a merger, 19 10 purchase, or other transaction that assumes the employee into 19 11 the successor employer's workforce without substantially 19 12 changing the nature of the employee's employment. 19 13 Code section 85.36, subsection 9, paragraph "c", which 19 14 deals with apportionment of liability for successive 19 15 disabilities, is stricken. 19 16 Code section 85.70 is amended to provide that an injured 19 17 employee with a permanent disability who actively participates 19 18 in a vocational rehabilitation program shall be paid $100 19 19 instead of $20 each week by the employer during each week of 19 20 participation in addition to any other benefit payments. 19 21 Code section 86.12 is reaffirmed and reenacted, after being 19 22 held to be invalid by the Iowa supreme court. This provision 19 23 allows the workers' compensation commissioner to subject 19 24 employers to assessments for failure to report certain 19 25 information to the commissioner. The division makes this 19 26 provision effective upon enactment and retroactively 19 27 applicable to injuries occurring on or after July 1, 2003. 19 28 Code section 86.13A is reaffirmed and reenacted, after 19 29 being held to be invalid by the Iowa supreme court. This 19 30 provision requires the workers' compensation commissioner to 19 31 monitor the rate of compliance of employers and insurers in 19 32 timely commencing benefit payments to injured employees. In 19 33 this division, the provision is amended to provide that after 19 34 June 30, 2006, the commissioner may impose assessments against 19 35 employers and insurers for certain delays in commencing 20 1 benefit payments. The division makes this provision effective 20 2 upon enactment and retroactively applicable to injuries 20 3 occurring on or after July 1, 2003. 20 4 Code section 85.55, which allows an employee with a 20 5 physical defect that increases the risk of injury to waive 20 6 workers' compensation for injuries occurring directly or 20 7 indirectly because of such defect, is repealed. 20 8 With the exception of the provisions concerning Code 20 9 sections 86.12 and 86.13A, the bill takes effect upon 20 10 enactment and is applicable to injuries occurring on or after 20 11 that date. The provisions concerning Code sections 86.12 and 20 12 86.13A take effect upon enactment and are retroactively 20 13 applicable to injuries occurring on or after July 1, 2003. 20 14 FINANCIAL SERVICES. This division reaffirms and reenacts 20 15 requirements involving the delinquency charges collectible 20 16 relative to certain consumer credit transactions and authority 20 17 to contract for debt payment under credit transactions other 20 18 than consumer credit transactions. 20 19 LOAN AND CREDIT GUARANTEE PROGRAM. This division reaffirms 20 20 and reenacts provisions relating to the loan and credit 20 21 guarantee program directed to relatively small businesses and 20 22 industries targeted to particular areas of commerce. The 20 23 division does not reenact the loan and credit guarantee 20 24 advisory board and makes conforming amendments. 20 25 ADMINISTRATIVE CONTRIBUTION SURCHARGE. This division 20 26 acknowledges the Iowa Code editor's removal of references from 20 27 the Iowa Code to the administrative contribution surcharge and 20 28 fund due to their repeal effective July 1, 2003. This repeal 20 29 results from the Iowa supreme court decision making House File 20 30 692, dealing with the grow Iowa values fund, invalid, which 20 31 also made the extension of the surcharge and fund invalid. 20 32 The division takes effect upon enactment and applies 20 33 retroactively to July 1, 2003. 20 34 MARKETING. This division reaffirms and reenacts the 20 35 economic development marketing board and its approval process 21 1 for marketing strategies. However, the division amends the 21 2 reaffirmed and reenacted provisions by providing that the 21 3 department of economic development, rather than the marketing 21 4 board which is not reestablished, shall accept proposals for 21 5 marketing strategies for purposes of selecting a strategy for 21 6 the department to administer. The division provides that the 21 7 department shall select and approve a proposal that meets 21 8 certain criteria and that the department shall implement and 21 9 administer the approved marketing strategy. The provisions 21 10 amending the economic development marketing board do not apply 21 11 retroactively. 21 12 INCOME TAXATION BONUS DEPRECIATION AND EXPENSING ALLOWANCE. 21 13 This division includes in the references to the Internal 21 14 Revenue Code the federal income tax revisions enacted by 21 15 Congress in regard to expensing certain depreciable assets and 21 16 making these changes applicable for Iowa income tax purposes. 21 17 The division amends Code sections 422.7 and 422.35 to 21 18 couple with the changes to the bonus depreciation deduction 21 19 enacted in the federal Jobs and Growth Tax Relief 21 20 Reconciliation Act of 2003 (Pub. L. No. 108=27). The bonus 21 21 depreciation of 50 percent allowed in that law is allowed for 21 22 state income tax purposes for qualified property acquired 21 23 after May 5, 2003, and before January 1, 2005. 21 24 The provisions of the division coupling with federal 21 25 expensing changes are retroactively applicable to January 1, 21 26 2003, for tax years beginning on or after that date. The 21 27 provisions of the division coupling with the changes to the 21 28 federal bonus depreciation apply retroactively to tax years 21 29 ending after May 5, 2003. 21 30 The division takes effect upon enactment. 21 31 ADVISORY CAPACITY OF BOARDS. This division provides that, 21 32 for only the fiscal year beginning July 1, 2004, and ending 21 33 June 30, 2005, the grow Iowa values board, the establishment 21 34 and existence of the economic development marketing board, and 21 35 the loan and credit guarantee advisory board, as provided for 22 1 in 2003 Iowa Acts, First Extraordinary Session, chapter 1 22 2 (House File 692), are validated. However, the boards shall 22 3 serve only in an advisory capacity to the department of 22 4 economic development. The composition of the boards shall 22 5 consist of the membership in existence on June 15, 2004. This 22 6 division takes effect upon enactment. 22 7 LSB 7155SV 80 22 8 tm/sh/8
Text: SF02311 Text: SF02312 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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