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House Journal: Monday, April 28, 2003

JOURNAL OF THE HOUSE

One Hundred Sixth Calendar Day - Seventy-fifth Session Day

Hall of the House of Representatives
Des Moines, Iowa, Monday, April 28, 2003

The House met pursuant to adjournment at 1:05 p.m., Speaker
Rants in the chair.

Prayer was offered by Reverend Dave Heilman, pastor of Calvary
Christian Reformed Church, Orange City. He was the guest of
Representative Ralph Klemme of Plymouth County.

The Journal of Friday, April 25, 2003 was approved.

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by six Linn Mar 8th grade
students, Marion. They were the guests of Representative Jeff Elgin
of Linn County.

INTRODUCTION OF BILL

House File 695, by committee on appropriations, a bill for an act
relating to and making appropriations to state departments and
agencies from the rebuild Iowa infrastructure fund, environment first
fund, and tobacco settlement trust fund, relating to the capitol
complex parking structure, and authorizing fees.

Read first time and placed on the appropriations calendar.

MOTION TO RECONSIDER WITHDRAWN
(Senate File 445)

Gipp of Winneshiek asked and received unanimous consent to
withdraw the motion to reconsider Senate File 445, a bill for an act
relating to the establishment of a school infrastructure financing
program by providing for the sharing of revenues from local option
sales and services taxes for school infrastructure purposes and
providing for the use of the revenues from the local option tax for

school infrastructure or property tax relief purposes and including an
effective date, filed by him on April 23, 2003.

MOTION TO RECONSIDER WITHDRAWN
(House File 686)

Gipp of Winneshiek asked and received unanimous consent to
withdraw the motion to reconsider House File 686, a bill for an act
relating to urban renewal and tax increment financing and including
effective and retroactive applicability date provisions, filed by him on
April 25, 2003.

IMMEDIATE MESSAGES

Gipp of Winneshiek asked and received unanimous consent that
the following bills be immediately messaged to the Senate: House
File 686 and Senate File 445.

ADOPTION OF HOUSE RESOLUTION 56

Boddicker of Cedar, Gaskill of Wapello and D. Taylor of Linn,
called up for consideration House Resolution 56, a resolution
honoring Iowa musicians Don Daugherty and Glenn Dean Goodwin,
and moved its adoption.

The motion prevailed and the resolution was adopted.

SPECIAL PRESENTATION

Boddicker of Cedar introduced to the House, Don Daugherty and
Glenn Dean Goodwin.

The House rose and expressed its welcome.

The House stood at ease at 1:18 p.m., until the fall of the gavel.

The House resumed session at 5:17 p.m., Speaker Rants in the
chair.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker: I am directed to inform your honorable body that the Senate has on
April 28, 2003, passed the following bill in which the concurrence of the Senate was
asked:

House File 329, a bill for an act relating to site preparation for targeted economic
development.

Also: That the Senate has on April 28, 2003, passed the following bill in which the
concurrence of the Senate was asked:

House File 576, a bill for an act relating to the enterprise zone program and
including effective date provisions.

Also: That the Senate has on April 28, 2003, passed the following bill in which the
concurrence of the Senate was asked:

House File 682, a bill for an act relating to wine by providing for native wine
permits, providing wine gallonage tax revenue to support grape and wine development,
providing for fees, and providing an effective date and retroactive applicability.

Also: That the Senate has on April 23, 2003, passed the following bill in which the
concurrence of the House is asked:

Senate File 452, a bill for an act relating to and making appropriations to state
departments and agencies from the rebuild Iowa infrastructure fund, environment first
fund, and tobacco settlement trust fund, relating to the capitol complex parking
structure, and authorizing fees.

MICHAEL E. MARSHALL, Secretary

SENATE MESSAGE CONSIDERED

Senate File 452, by committee on appropriations, a bill for an act
relating to and making appropriations to state departments and
agencies from the rebuild Iowa infrastructure fund, environment first
fund, and tobacco settlement trust fund, relating to the capitol
complex parking structure, and authorizing fees.

Read first time and passed on file.

QUORUM CALL

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


CONSIDERATION OF BILLS
Unfinished Business Calendar

Senate File 344, a bill for an act concerning regulatory and
statutory requirements impacting business relating to liability
reform, unemployment compensation benefits eligibility and
employer contributions, workers' compensation, occupational safety
and health, financial services, environmental regulatory
requirements, public project contractor requirements, and economic
development, with report of committee recommending passage, was
taken up for consideration.

Horbach of Tama offered the following amendment H-1488 filed by
him from the floor and moved its adoption:

H-1488

1 Amend Senate File 344, as amended, passed, and
2 reprinted by the Senate, as follows:
3 1. By striking everything after the enacting
4 clause and inserting the following:
5 "DIVISION I
6 LIABILITY REFORM
7 Section 1. Section 625A.9, Code 2003, is amended
8 to read as follows:
9 625A.9 EXECUTION ON UNSTAYED PART OF JUDGMENT -
10 SUPERSEDEAS BOND WAIVED.
11 1. The taking of the appeal from part of a
12 judgment or order, and the filing of a bond as above
13 directed, does not stay execution as to that part of
14 the judgment or order not appealed from.
15 2. If the judgment or order appealed from is for
16 money, such bond shall not exceed one hundred ten
17 percent of the amount of the money judgment.
18 3. Upon motion and for good cause shown, the
19 district court may stay all proceedings under the
20 order or judgment being appealed and permit the state
21 or any of its political subdivisions to appeal a
22 judgment or order to the supreme court without the
23 filing of a supersedeas bond.
24 Sec. 2. Section 668.12, Code 2003, is amended to
25 read as follows:
26 668.12 LIABILITY FOR PRODUCTS - STATE OF THE ART
27 DEFENSE DEFENSES.
28 1. In any action brought pursuant to this chapter
29 against an assembler, designer, supplier of
30 specifications, distributor, manufacturer, or seller

31 for damages arising from an alleged defect in the
32 design, testing, manufacturing, formulation,
33 packaging, warning, or labeling of a product, a
34 percentage of fault shall not be assigned to such
35 persons if they plead and prove that the product
36 conformed to the state of the art in existence at the
37 time the product was designed, tested, manufactured,
38 formulated, packaged, provided with a warning, or
39 labeled.
40 2. Nothing contained in this section subsection 1
41 shall diminish the duty of an assembler, designer,
42 supplier of specifications, distributor, manufacturer
43 or seller to warn concerning subsequently acquired
44 knowledge of a defect or dangerous condition that
45 would render the product unreasonably dangerous for
46 its foreseeable use or diminish the liability for
47 failure to so warn.
48 3. An assembler, designer, supplier of
49 specifications, distributor, manufacturer, or seller
50 shall not be subject to liability under a theory of

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1 civil conspiracy unless the person knowingly and
2 voluntarily entered into an agreement, express or
3 implied, to participate in a common plan with the
4 intent to commit a tortious act upon another. Mere
5 membership in a trade or industrial association or
6 group is not, in and of itself, evidence of such an
7 agreement.
8 Sec. 3. Section 668A.1, subsection 1, Code 2003,
9 is amended to read as follows:
10 1. In a trial of a claim involving the request for
11 punitive or exemplary damages, the court shall
12 instruct the jury to answer special interrogatories
13 or, if there is no jury, shall make findings,
14 indicating all of the following:
15 a. Whether, by a preponderance of clear, and
16 convincing, and satisfactory evidence, the conduct of
17 the defendant from which the claim arose constituted
18 willful and wanton disregard for the rights or safety
19 of another.
20 b. Whether the conduct of the defendant was
21 directed specifically at the claimant, or at the
22 person from which the claimant's claim is derived.
23 c. Whether, by a preponderance of clear and
24 convincing evidence, the conduct of the defendant from
25 which the claim arose constituted actual malice.
26 Sec. 4. NEW SECTION. 668A.2 DEFINITIONS.
27 As used in this chapter, the following terms shall
28 have the following meanings:
29 1. "Clear and convincing evidence" means evidence

30 which leaves no serious or substantial doubt about the
31 correctness of the conclusions drawn from the
32 evidence. It is more than a preponderance of
33 evidence, but less than beyond a reasonable doubt.
34 2. "Malice" means either conduct which is
35 specifically intended by the defendant to cause
36 tangible or intangible serious injury to the plaintiff
37 or conduct that is carried out by the defendant both
38 with a flagrant indifference to the rights of the
39 plaintiff and with a subjective awareness that such
40 conduct will result in tangible serious injury.
41 Sec. 5. NEW SECTION. 668A.3 AWARD OF PUNITIVE OR
42 EXEMPLARY DAMAGES - PROOF - STANDARD.
43 Punitive or exemplary damages shall only be awarded
44 where the plaintiff proves by clear and convincing
45 evidence that the plaintiff's harm was the result of
46 actual malice. This burden of proof shall not be
47 satisfied by proof of any degree of negligence,
48 including gross negligence.
49 DIVISION II
50 WORKERS' COMPENSATION

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1 Sec. 6. Section 85.34, subsection 2, unnumbered
2 paragraph 1, Code 2003, is amended to read as follows:
3 Compensation for permanent partial disability shall
4 begin at the termination of the healing period
5 provided in subsection 1. The compensation shall be
6 in addition to the benefits provided by sections 85.27
7 and 85.28. The compensation shall be based only upon
8 the extent of the disability related to the injury
9 received and upon the basis of eighty percent per week
10 of the employee's average spendable weekly earnings,
11 but not more than a weekly benefit amount, rounded to
12 the nearest dollar, equal to one hundred eighty-four
13 percent of the statewide average weekly wage paid
14 employees as determined by the department of workforce
15 development under section 96.19, subsection 36, and in
16 effect at the time of the injury. The minimum weekly
17 benefit amount shall be equal to the weekly benefit
18 amount of a person whose gross weekly earnings are
19 thirty-five percent of the statewide average weekly
20 wage. For all cases of permanent partial disability
21 compensation shall be paid as follows:
22 Sec. 7. Section 85.34, Code 2003, is amended by
23 adding the following new subsection:
24 NEW SUBSECTION. 7. APPORTIONMENT. When an
25 employee suffers successive work-related injuries or
26 illnesses, an employer is not liable for that portion
27 of an employee's disability that is caused by any
28 preexisting injury or illness that is separate and

29 discrete from the injury or illness for which
30 compensation is claimed. Evidence that an employee
31 has received a prior award for payment of benefits or
32 entered into a prior settlement of any claim arising
33 under this chapter or chapter 85A, 85B, or 86 creates
34 a presumption that the employee has suffered a
35 preexisting work-related injury or illness that is
36 separate and discrete from the injury or illness for
37 which benefits are claimed and that the extent of
38 disability caused by that preexisting injury or
39 illness has been determined. An employee who suffers
40 from a disability caused in part by a preexisting
41 injury or illness that is separate and discrete from
42 the injury or illness for which compensation is
43 claimed, such that the employer is not liable for that
44 portion of the employee's disability, shall receive
45 compensation for the employee's disability at the
46 employee's weekly benefit amount as provided in this
47 section plus an additional ten percent.
48 DIVISION III
49 FINANCIAL SERVICES
50 Sec. 8. Section 537.2502, subsections 3 and 6,

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1 Code 2003, are amended to read as follows:
2 3. A delinquency charge shall not be collected
3 under subsection 1, paragraph "a", on an installment
4 which that is paid in full within ten days after its
5 scheduled or deferred installment due date even though
6 an earlier maturing installment or a delinquency or
7 deferral charge on an earlier installment may not have
8 been paid in full. For purposes of this subsection,
9 payments associated with a precomputed transaction are
10 applied first to current installments and then to
11 delinquent installments.
12 6. A delinquency charge shall not be collected
13 under subsection 4 on a payment which associated with
14 a precomputed transaction that is paid in full on or
15 before its scheduled or deferred due date even though
16 an earlier maturing payment or a delinquency or
17 deferred charge on an earlier payment has not been
18 paid in full. For purposes of this subsection,
19 payments are applied first to amounts due for the
20 current billing cycle and then to delinquent payments.
21 Sec. 9. Section 537.2601, subsection 1, Code 2003,
22 is amended to read as follows:
23 1. Except as provided in subsection 2, with With
24 respect to a credit transaction other than a consumer
25 credit transaction, the parties may contract for the
26 payment by the debtor of any finance or other charge
27 as permitted by law. Except with respect to debt

28 obligations issued by a government, governmental
29 agency or instrumentality, in calculating any finance
30 charge contracted for, any month may be counted as
31 one-twelfth of a year, but a day is to be counted as
32 one three-hundred sixty-fifth of a year.
33 DIVISION IV
34 UNEMPLOYMENT COMPENSATION SURCHARGE
35 Sec. 10. Section 96.7, subsection 12, paragraph a,
36 Code 2003, is amended to read as follows:
37 a. An employer other than a governmental entity or
38 a nonprofit organization, subject to this chapter,
39 shall pay an administrative contribution surcharge
40 equal in amount to one-tenth of one percent of federal
41 taxable wages, as defined in section 96.19, subsection
42 37, paragraph "b", subject to the surcharge formula to
43 be developed by the department under this paragraph.
44 The department shall develop a surcharge formula that
45 provides a target revenue level of no greater than six
46 million five hundred twenty-five thousand dollars
47 annually for calendar years 2003, 2004, and 2005 and a
48 target revenue level of no greater than three million
49 two hundred sixty-two thousand five hundred dollars
50 for calendar year 2006 and each subsequent calendar

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1 year. The department shall reduce the administrative
2 contribution surcharge established for any calendar
3 year proportionate to any federal government funding
4 that provides an increased allocation of moneys for
5 workforce development offices, under the federal
6 employment services financing reform legislation. Any
7 administrative contribution surcharge revenue that is
8 collected in calendar year 2002 2003, 2004, or 2005 in
9 excess of six million five hundred twenty-five
10 thousand dollars or in calendar year 2006 or a
11 subsequent calendar year in excess of three million
12 two hundred sixty-two thousand five hundred dollars
13 shall be deducted from the amount to be collected in
14 the subsequent calendar year 2003 before the
15 department establishes the administrative contribution
16 surcharge. The department shall recompute the amount
17 as a percentage of taxable wages, as defined in
18 section 96.19, subsection 37, and shall add the
19 percentage surcharge to the employer's contribution
20 rate determined under this section. The percentage
21 surcharge shall be capped at a maximum of seven
22 dollars per employee. The department shall adopt
23 rules prescribing the manner in which the surcharge
24 will be collected. Interest shall accrue on all
25 unpaid surcharges under this subsection at the same
26 rate as on regular contributions and shall be

27 collectible in the same manner. Interest accrued and
28 collected under this paragraph and interest earned and
29 credited to the fund under paragraph "b" shall be used
30 by the department only for the purposes set forth in
31 paragraph "c".
32 Sec. 11. Section 96.7, subsection 12, paragraph d,
33 Code 2003, is amended to read as follows:
34 d. This subsection is repealed July 1, 2003 2006,
35 and the repeal is applicable to contribution rates for
36 calendar year 2004 2007 and subsequent calendar years.
37 Sec. 12. EFFECTIVE DATE. This division of this
38 Act, concerning the unemployment compensation
39 surcharge, being deemed of immediate importance, takes
40 effect upon enactment.
41 DIVISION V
42 ECONOMIC DEVELOPMENT
43 Sec. 13. NEW SECTION. 15E.18 CITIES, COUNTIES,
44 AND REGIONS - SITE PREPARATION FOR TARGETED ECONOMIC
45 DEVELOPMENT.
46 1. For purposes of this section, "region" means a
47 group of two or more contiguous counties that
48 establishes a single, focused economic development
49 effort.
50 2. A city, county, or region, subject to the

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1 approval of the property owner, may designate an area
2 within the boundaries of the city, county, or region
3 for a specific type of targeted economic development.
4 The specific type of targeted economic development
5 shall be one of the following:
6 a. Manufacturing.
7 b. Light industrial.
8 c. Warehouse and distribution.
9 d. Office parks.
10 e. Business and commerce parks.
11 f. Research and development.
12 3. A city, county, or region that designates an
13 area for a specific type of targeted economic
14 development may apply to the department for purposes
15 of certifying the area as a preapproved development
16 site. The department shall develop criteria for the
17 certification process.
18 4. Prior to a specific project being developed, a
19 city, county, or region designating the area for
20 targeted economic development pursuant to this section
21 may apply for and obtain appropriate licenses,
22 permits, and approvals for the type of targeted
23 economic development project desired for the area.
24 Sec. 14. NEW SECTION. 15E.19 REGULATORY
25 ASSISTANCE.

26 1. The department of economic development shall
27 coordinate all regulatory assistance for the state of
28 Iowa. Each state agency with regulatory programs for
29 business shall maintain a coordinator within the
30 office of the director or the administrative division
31 of the state agency. Each coordinator shall do all of
32 the following:
33 a. Serve as the department of economic
34 development's primary contact for regulatory affairs.
35 b. Provide regulatory requirements to businesses
36 and represent the agency in the private sector.
37 c. Monitor permit applications and provide timely
38 permit status information to the department of
39 economic development.
40 d. Have the ability to require regulatory staff
41 participation in negotiations and discussions with
42 businesses.
43 e. Notify the department of economic development
44 regarding proposed rulemaking activities that impact a
45 regulatory program and any subsequent changes to a
46 regulatory program.
47 2. By January 15 of each year, the department of
48 economic development shall submit a written report to
49 the general assembly regarding the provision of
50 regulatory assistance by state agencies."

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1 2. Title page, by striking lines 2 through 7 and
2 inserting the following: "business relating to
3 liability reform, workers' compensation, financial
4 services, unemployment compensation employer
5 surcharges, and economic development, and providing an
6 effective date."

Speaker pro tempore Carroll in the chair at 5:41 p.m.

Gipp of Winneshiek asked and received unanimous consent that
Senate File 344 be deferred and that the bill retain its place on the
calendar. (Amendment H-1488 pending)

Ways and Means Calendar

House File 688, a bill for an act relating to biodiesel fuel,
including by providing for financial assistance and biodiesel fuel tax
credits and providing an applicability date, was taken up for
consideration.

Speaker Rants in the chair at 6:12 p.m.

Drake of Pottawattamie offered the following amendment H-1492
filed by him from the floor and moved its adoption:

H-1492

1 Amend House File 688 as follows:
2 1. By striking everything after the enacting
3 clause and inserting the following:
4 "Section 1. NEW SECTION. 15E.110 DEFINITIONS.
5 As used in this division, unless the context
6 otherwise requires:
7 1. "Biodiesel stock" means a fuel stock comprised
8 of mon-alkyl esters which may be derived from soybean
9 oil and which is used to produce biodiesel-blended
10 fuel and meets requirements of the American society
11 for testing and materials.
12 2. "Biodiesel-blended fuel" means the same as
13 defined in section 159A.2.
14 3. "Special fuel" means the same as defined in
15 section 452A.2.
16 Sec. 2. NEW SECTION. 15E.113 BIODIESEL EQUIPMENT
17 ACQUISITION PROGRAM.
18 1. The department shall establish a biodiesel
19 equipment acquisition program. The department shall
20 provide financing to eligible persons for the
21 acquisition of equipment to produce and store
22 biodiesel-blended fuel for sale. Equipment includes
23 but is not limited to storage tanks, related devices,
24 and machinery required to compound or blend biodiesel-
25 blended fuel, including by splash blending or
26 injection of biodiesel stock with petroleum-based
27 diesel fuel. The department may provide financing to
28 an eligible person who acquires equipment for redesign
29 planning required to satisfy fire hazard prevention or
30 environmental protection standards promulgated by this
31 state or the federal government.
32 2. The department may provide financing to an
33 eligible person upon review and evaluation of the
34 person's application according to procedures adopted
35 by the department. Financing shall be awarded on a
36 cost-share basis. The eligible person must be one of
37 the following:
38 a. A marine or pipeline terminal. The amount of
39 the financing shall not exceed forty percent of the
40 cost of acquiring the equipment and redesign planning
41 as estimated by the department or forty percent of the
42 actual cost of acquiring the equipment and redesign
43 planning, whichever is less. However, the marine or
44 pipeline terminal shall not receive more than fifty
45 thousand dollars in financing for the acquisition of

46 equipment and the redesign planning at one business
47 location.
48 b. A marketer of special fuels other than a marine
49 or pipeline terminal. The amount of the financing
50 shall not exceed eighty percent of the cost of

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1 acquiring the equipment and redesign planning as
2 estimated by the department or eighty percent of the
3 actual cost of acquiring the equipment and redesign
4 planning, whichever is less. However, the marketer
5 shall not receive more than fifty thousand dollars in
6 financing for the acquisition of equipment and the
7 redesign planning at one business location.
8 3. In order to qualify for financing all of the
9 following must apply:
10 a. The eligible person must be issued a license to
11 blend special fuels by the department of revenue and
12 finance if the person is required to be issued the
13 license pursuant to section 452A.6.
14 b. The eligible person has technical expertise
15 necessary to produce biodiesel-blended fuel.
16 4. a. An eligible person who receives financing
17 under this section shall prepare and deliver an annual
18 report to the administrative unit of the department of
19 natural resources designated by the department to
20 analyze issues relating to energy. A copy of the
21 report shall be delivered to the department of
22 economic development.
23 b. The report shall at least include the total
24 volume of biodiesel-blended fuel produced and sold
25 during the last year by the eligible person at each
26 business location installed with equipment financed
27 under this section. For each gallon of biodiesel-
28 blended fuel produced and sold, the report shall
29 indicate its percentage of biodiesel stock as required
30 by the department.
31 Sec. 3. NEW SECTION. 15E.113A BIODIESEL STOCK
32 PROCESSING PROGRAM.
33 1. The department shall establish a biodiesel
34 stock processing program. The purpose of the program
35 is to provide financing to eligible persons engaged in
36 the processing of soybean oil into biodiesel stock to
37 be used for the production of biodiesel-blended fuel.
38 This section does not require that a person eligible
39 to receive financing obtain a license to blend special
40 fuels as required by the department of revenue and
41 finance pursuant to section 452A.6.
42 2. A person is eligible to receive financing under
43 the biodiesel stock processing program if all of the
44 following apply:

45 a. The person is a business association organized
46 as a cooperative association under chapter 499 or 501,
47 or a limited liability company organized under chapter
48 490A. Qualified persons as defined in section 10.1
49 must hold at least fifty-one percent of the business
50 association, including fifty-one percent of each class

Page 3

1 of or groups of members' equity. As used in this
2 paragraph, "members' equity" includes but is not
3 limited to issued shares, including common stock or
4 preferred stock, regardless of distributions, and
5 membership interests. However, "members' equity" does
6 not include nonvoting interests such as nonvoting
7 common stock or nonvoting membership interests. A
8 security such as a warrant or option that may be
9 converted to voting stock shall be considered members'
10 equity.
11 b. The person demonstrates financial capability
12 and technical expertise necessary for the processing
13 of soybean oil into biodiesel stock used to produce
14 biodiesel-blended fuel. The department may require
15 that the person submit a business plan which includes
16 a description of how the financing will be used, and a
17 description of how the person expects the business
18 association to become profitable.
19 3. a. The department may provide financing to an
20 eligible person upon review and evaluation of the
21 person's application according to procedures adopted
22 by the department. Financing shall be in the form of
23 a grant, loan, forgivable loan, loan guarantee, cost
24 share, indemnification of costs, or any combination of
25 such financing deemed appropriate by the department.
26 The department shall not approve an application to
27 refinance an existing loan. If moneys are repaid to
28 the department pursuant to a loan agreement, the
29 moneys shall be deposited into the biodiesel fuel
30 promotion fund established in section 15E.114.
31 b. An eligible person who receives financing under
32 this section shall prepare and deliver an annual
33 report to the administrative unit of the department of
34 natural resources designated by the department to
35 analyze issues relating to energy. A copy of the
36 report shall be delivered to the department of
37 economic development. The report shall at least
38 include the total volume of biodiesel stock produced
39 during the last year by the eligible person at each
40 business location which benefits from the financing.
41 Sec. 4. NEW SECTION. 15E.114 BIODIESEL FUEL
42 PROMOTION FUND.
43 1. A biodiesel fuel promotion fund is created in

44 the state treasury under the control of the
45 department.
46 2. The biodiesel fuel promotion fund shall include
47 any moneys appropriated to the fund by the general
48 assembly, payments of interest earned, recaptures of
49 awards, repayments of moneys loaned or expended under
50 the biodiesel stock processing program as provided in

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1 section 15E.113A, the repossession and sale of assets
2 securing a loan made under the program, and any other
3 moneys available to and obtained or accepted by the
4 department from the federal government or private
5 sources for placement in the fund.
6 3. The fund shall be used to support the biodiesel
7 equipment acquisition program as provided in section
8 15E.113 and the biodiesel stock processing program as
9 provided in section 15E.113A.
10 4. a. The department shall not use more than two
11 percent of all moneys deposited and required to be
12 deposited in the fund, as calculated on July 1 of each
13 year for departmental administrative expenses.
14 b. In administering the fund, the department may
15 contract, sue and be sued, and adopt administrative
16 rules necessary to carry out the provisions of this
17 section and sections 15E.113 and 15E.113A. However,
18 the department shall not in any manner directly or
19 indirectly pledge the credit of the state.
20 c. Moneys shall not be transferred, used,
21 obligated, appropriated, or otherwise encumbered
22 except as provided in this section.
23 5. Section 8.33 does not apply to any moneys in
24 the fund. Notwithstanding section 12C.7, interest
25 earned on moneys in the fund shall be credited to the
26 fund.
27 6. The fund is subject to an annual audit by the
28 auditor of state. Moneys in the fund, which may be
29 subject to warrants written by the director of revenue
30 and finance, shall be drawn upon the written
31 requisition of the director of the department of
32 economic development or an authorized representative
33 of the director.
34 Sec. 5. Section 159A.2, subsections 6 and 8, Code
35 2003, are amended to read as follows:
36 6. "Renewable fuel" means an energy source at
37 least in part derived from an organic compound capable
38 of powering machinery, including an engine or power
39 plant. A renewable fuel includes but is not limited
40 to ethanol-blended or soydiesel biodiesel-blended
41 fuel.
42 8. "Soydiesel "Biodiesel-blended fuel" means a

43 fuel which is a mixture of diesel fuel and processed
44 soybean oil, if at least twenty two percent of the
45 mixed fuel by volume is processed soybean oil which
46 meets American society for testing and materials
47 standards.
48 Sec. 6. Section 159A.3, subsection 3, paragraph b,
49 Code 2003, is amended to read as follows:
50 b. The office shall promote the production and

Page 5

1 consumption of soydiesel biodiesel-blended fuel in
2 this state.
3 Sec. 7. Section 307.20, subsection 1, Code 2003,
4 is amended to read as follows:
5 1. a. A biodiesel biodiesel-blended fuel
6 revolving fund is created in the state treasury. The
7 biodiesel biodiesel-blended fuel revolving fund shall
8 be administered by the department and shall consist of
9 moneys received from the sale of EPAct credits banked
10 by the department on April 19, 2001, moneys
11 appropriated by the general assembly, and any other
12 moneys obtained or accepted by the department for
13 deposit in the fund.
14 b. Moneys in the fund are appropriated to and
15 shall be used by the department for the purchase of
16 biodiesel biodiesel-blended fuel for use in department
17 vehicles. The department shall submit an annual
18 report not later than January 31 to the members of the
19 general assembly and the legislative fiscal bureau, of
20 the expenditures made from the fund during the
21 preceding fiscal year.
22 c. Section 8.33 does not apply to any moneys in
23 the fund and, notwithstanding section 12C.7,
24 subsection 2, earnings or interest on moneys deposited
25 in the fund shall be credited to the fund.
26 Sec. 8. Section 307.20, subsection 3, paragraph a,
27 Code 2003, is amended to read as follows:
28 a. "Biodiesel "Biodiesel-blended fuel" means
29 soydiesel fuel the same as defined in section 159A.2.
30 Sec. 9. ELIGIBILITY FOR BIODIESEL EQUIPMENT
31 ACQUISITION PROGRAM. The department may provide
32 financing to a person who is a marine or pipeline
33 terminal or marketer of special fuels under the
34 biodiesel equipment acquisition program as provided in
35 section 15E.113, and who is otherwise eligible to
36 participate in the program if the person has acquired
37 equipment or completed redesign planning on or after
38 January 1, 2002, but prior to the effective date of
39 this Act.
40 Sec. 10. DIRECTIONS TO CODE EDITOR. The Code
41 editor is directed to transfer section 15E.110 as

42 enacted in this Act to division X of chapter 15E and
43 rename the division's title.
44 Sec. 11. CONTINGENT EFFECTIVENESS OF THIS ACT.
45 This Act takes effect only if 2003 Iowa Acts, House
46 File 683 is enacted."
47 2. Title page, by striking lines 2 and 3, and
48 inserting the following: "financing, and providing
49 for the Act's effectiveness."

Amendment H-1492 was adopted.

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

On the question "Shall the bill pass?" (H.F. 688)

The ayes were, 94:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Bukta Carroll Chambers Cohoon
Connors Dandekar Davitt De Boef
Dennis Dix Dolecheck Drake
Eichhorn Elgin Foege Ford
Freeman Frevert Gaskill Gipp
Granzow Greimann Greiner Hahn
Hansen Hanson Heaton Heddens
Hoffman Hogg Horbach Huseman
Huser Hutter Jacobs Jenkins
Jochum Jones Klemme Kramer
Kurtenbach Lalk Lensing Lukan
Lykam Maddox Manternach Mascher
McCarthy Mertz Miller Murphy
Myers Oldson Olson, D. Olson, S.
Osterhaus Paulsen Petersen Quirk
Raecker Rasmussen Rayhons Reasoner
Roberts Sands Schickel Shoultz
Smith Stevens Swaim Thomas
Tjepkes Tymeson Upmeyer Van Engelenhoven
Van Fossen, J.K. Van Fossen, J.R. Watts Wendt
Whitaker Whitead Wilderdyke Winckler
Wise Mr. Speaker
Rants

 


The nays were, 4:
Fallon Hunter Taylor, D. Taylor, T.

 




Absent or not voting, 2:
Kuhn Struyk

 


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

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
House File 688 be immediately messaged to the Senate.

Unfinished Business Calendar

Senate File 341, a bill for an act regulating the balance of
competitive forces in swine and beef production by enhancing the
welfare of the farming community and by preventing processors from
gaining control of beef or swine production, providing for the transfer
of provisions, making a penalty applicable, and providing for an
effective date, with report of committee recommending passage, was
taken up for consideration.

Whitaker of Van Buren offered the following amendment H-1363
filed by Kuhn of Floyd and moved its adoption:

H-1363

1 Amend Senate File 341, as passed by the Senate, as
2 follows:
3 1. Page 2, by inserting after line 6 the
4 following:
5 "Sec. . Section 9H.2, subsection 4, Code 2003,
6 is amended to read as follows:
7 4. A processor which was in compliance with this
8 section prior to April 5, 2000, and which was in
9 violation of this section as a result of 2000 Iowa
10 Acts, chapter 1048, shall have until June 30, 2004
11 2006, to comply with 2000 Iowa Acts, chapter 1048. A
12 processor shall not take action on or after April 5,
13 2000, which would be in violation of this section."
14 2. Page 2, line 13, by striking the figure "2005"
15 and inserting the following: "2007".
16 3. Page 2, by inserting after line 18, the
17 following:
18 "Sec. . Section 9H.2A, subsections 1 through 3,
19 Code 2003, are amended to read as follows:
20 1. A processor that was in compliance with section

21 9H.2, Code 2001, prior to January 1, 2002, and which
22 is in violation of section 9H.2, as amended by this
23 Act 2002 Acts, chapter 1095, shall have until June 30,
24 2004 2006, to comply with section 9H.2, as amended by
25 this Act 2002 Acts, chapter 1095.
26 2. Notwithstanding any provision of this section,
27 a processor shall not take an action on or after
28 January 1, 2002, that would be in violation of section
29 9H.2, as amended by this Act 2002 Acts, chapter 1095.
30 3. The two-year period that a person who holds an
31 executive position in a processor or owes a processor
32 a fiduciary duty and thus is deemed to be a processor
33 as provided in section 9H.1, subsection 27, paragraph
34 "b", shall not apply if the person held the position
35 or owed the duty on January 1, 2002, and relinquishes
36 the position or duty on or before June 30, 2004 2006.
37 Sec. . Section 9H.2A, subsection 4, Code 2003,
38 is amended by striking the subsection."
39 4. Page 4, line 27, by inserting after the word
40 "section." the following: "The Code editor shall
41 substitute the term "chapter" for "section" in the law
42 text."
43 5. Page 4, line 29, by striking the figure "28,".
44 6. Page 4, line 31, by inserting before the
45 figure "29" the following: "28,".
46 7. By renumbering as necessary.

Amendment H-1363 was adopted.

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

On the question "Shall the bill pass?" (S.F. 341)

The ayes were, 94:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Bukta Carroll Chambers Cohoon
Connors Dandekar Davitt De Boef
Dennis Dix Drake Eichhorn
Fallon Foege Ford Freeman
Frevert Gaskill Gipp Granzow
Greimann Greiner Hahn Hansen
Hanson Heaton Heddens Hoffman
Hogg Horbach Hunter Huseman
Huser Hutter Jacobs Jochum
Jones Kramer Lalk Lensing
Lukan Lykam Maddox Manternach
Mascher McCarthy Mertz Miller
Murphy Myers Oldson Olson, D.
Olson, S. Osterhaus Paulsen Petersen
Quirk Raecker Rasmussen Rayhons
Reasoner Roberts Sands Schickel
Shoultz Smith Stevens Struyk
Swaim Taylor, D. Taylor, T. Thomas
Tjepkes Tymeson Upmeyer Van Engelenhoven
Van Fossen, J.K. Van Fossen, J.R. Watts Wendt
Whitaker Whitead Wilderdyke Winckler
Wise Mr. Speaker
Rants

 


The nays were, 5:
Dolecheck Elgin Jenkins Klemme
Kurtenbach

 


Absent or not voting, 1:
Kuhn

 


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

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
Senate File 341 be immediately messaged to the Senate.

The House resumed consideration of Senate File 344 found on
pages 1466 through 1472 of the House Journal. (Amendment H-1488
pending)

Horbach of Tama offered the following amendment H-1493, to
amendment H-1488, filed by him from the floor and moved its
adoption:

H-1493

1 Amend the amendment, H-1488, to Senate File 344, as
2 amended, passed, and reprinted by the Senate, as
3 follows:
4 1. Page 2, by inserting after line 48 the
5 following:
6 "Sec. . APPLICABILITY. This division of this
7 Act, relating to liability reform, applies to cases
8 filed on or after July 1, 2003."

9 2. Page 3, by inserting after line 47 the
10 following:
11 "Sec. . APPLICABILITY. This division of this
12 Act, relating to workers' compensation, applies to an
13 injury occurring on or after July 1, 2003."
14 3. By renumbering as necessary.

Amendment H-1493 was adopted.

Horbach of Tama moved the adoption of amendment H-1488, as
amended.

A non-record roll call was requested.

The ayes were 53, nays 34.

Amendment H-1488, as amended, was adopted.

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

On the question "Shall the bill pass?" (S.F. 344)

The ayes were, 53:
Alons Arnold Baudler Boal
Boddicker Boggess Carroll Chambers
De Boef Dennis Dix Dolecheck
Drake Eichhorn Elgin Freeman
Gipp Granzow Greiner Hahn
Hansen Hanson Heaton Hoffman
Horbach Huseman Hutter Jacobs
Jenkins Jones Klemme Kramer
Kurtenbach Lalk Lukan Maddox
Manternach Olson, S. Paulsen Raecker
Rasmussen Rayhons Roberts Sands
Tjepkes Tymeson Upmeyer Van Engelenhoven
Van Fossen, J.K. Van Fossen, J.R. Watts Wilderdyke
Mr. Speaker
Rants

 


The nays were, 46:
Bell Berry Bukta Cohoon
Connors Dandekar Davitt Fallon
Foege Ford Frevert Gaskill
Greimann Heddens Hogg Hunter
Huser Jochum Lensing Lykam
Mascher McCarthy Mertz Miller
Murphy Myers Oldson Olson, D.
Osterhaus Petersen Quirk Reasoner
Schickel Shoultz Smith Stevens
Struyk Swaim Taylor, D. Taylor, T.
Thomas Wendt Whitaker Whitead
Winckler Wise

 


Absent or not voting, 1:
Kuhn

 


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

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
Senate File 344 be immediately messaged to the Senate.

INTRODUCTION OF BILL

House File 696, by Gipp and Myers, a bill for an act relating to
the payment of taxes and payment of financial consideration on a
contractual basis to the state from adjusted gross receipts from
gambling games at racetrack enclosures and providing an effective
date.

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

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker: I am directed to inform your honorable body that the Senate has on
April 28, 2003, amended and passed the following bill in which the concurrence of the
House is asked:

House File 675, a bill for an act relating to the regulation of elder family homes,
elder group homes, and assisted living programs, providing for appropriation of fees,
and providing penalties.

Also: That the Senate has on April 28, 2003, amended and passed the following bill
in which the concurrence of the House is asked:

House File 685, a bill for an act relating to and making appropriations from the
healthy Iowans tobacco trust fund.

Also: That the Senate has on April 28, 2003, amended the House amendment,
concurred in the House amendment as amended, and passed the following bill in which
the concurrence of the House is asked:

Senate File 422, a bill for an act relating to the criminal sentencing and procedure
by modifying the penalties for certain offenses related to controlled substances, by
creating a criminal offense of robbery in the third degree, modifying dissemination of
sex offender registry information and residence restrictions for a sex offender,
repealing certain determinate sentences, changing the parole and work release
eligibility of a person serving a sentence that requires a maximum accumulation of
earned time credits of fifteen percent of the total term of confinement and by
permitting the reopening of such a sentence, providing a penalty, and providing an
effective date.

MICHAEL E. MARSHALL, Secretary

BILLS ENROLLED, SIGNED AND SENT TO GOVERNOR

The Chief Clerk of the House submitted the following report:

Mr. Speaker: The Chief Clerk of the House respectfully reports that the following
bills have been examined and found correctly enrolled, signed by the Speaker of the
House and the President of the Senate, and presented to the Governor for his approval
on this 28th day of April, 2003: House Files 319, 387, 454, 541, 600, 628 and 656.

MARGARET A. THOMSON
Chief Clerk of the House

Report adopted.

BILLS SIGNED BY THE GOVERNOR

A communication was received from the Governor announcing
that on April 25, 2003, he approved and transmitted to the Secretary
of State the following bills:

House File 204, an Act relating to massage therapy by providing for a study
regarding the modalities associated with massage therapy and providing a temporary
exemption from licensure requirements.

House File 390, an Act relating to economic development programs for targeted
small businesses.

House File 392, an Act relating to economic growth strategic planning.

House File 480, an Act relating to the shelter assistance fund.

House File 493, an Act relating to the powers and duties of the Department of
Agriculture and Land Stewardship by providing for the elimination of administrative
requirements.

House File 505, an Act to prohibit unauthorized computer access to operational or
support data of a rural water district and a municipal utility and providing a penalty.

House File 545, an Act relating to the requirements for newspapers designated for
official publication purposes.

House File 603, an Act providing an exception to licensing requirements for
certain bingo occasions conducted by nonprofit organizations.

House File 641, an Act providing for changes relating to programs under the
purview of the Iowa Department of Public Health.

Senate File 180, an Act relating to the procedures for handling abandoned
property and property presumed to be abandoned.

Senate File 221, an Act relating to the criminal offense of sexual exploitation of a
minor.

Senate File 340, an Act relating to business entities, based on revisions related to
the Iowa Business Corporation Act, including addition of a savings clause and addition
of provisions related to director and officer liability, duty, and indemnification for
certain insurance companies and indemnification for cooperative associations.

Senate File 352, an Act relating to the training of an individual who intends to
become certified as a law enforcement officer.

Senate File 361, an Act relating to emergency procedures for the temporary
detention and treatment of persons who are incapacitated or impaired due to substance
abuse or mental health problems.

Senate File 394, an Act relating to the regulation of the grain industry, and
making penalties applicable.

Also: the governor announced that on April 28, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 547, an Act providing for evidence of financial responsibility filed by
commercial pesticide applicators, and providing an effective date.

House File 548, an Act relating to law enforcement officer training at the Iowa
Law Enforcement Academy, and providing for a fee.

House File 551, an Act providing for a fee for transporting an inmate for medical
or dental care.

House File 557, an Act relating to liability of certain health care facilities and
heath care providers participating in the Volunteer Health Care Provider Program.

House File 617, an Act requiring that dealers of certain swine file evidence of
financial responsibility with the Department of Agriculture and Land Stewardship.

House File 647, an Act relating to insurance, including various filing and
information privacy requirements throughout the insurance code, calculation of
assessments by the Iowa Individual Health Benefit Reinsurance Association, payment
of certain insurance fees, certain self-funded insurance plans by school corporations or
political subdivisions designation of the Commissioner of Insurance as process agent
for various entities conduction insurance business in this state, notification provisions
relating to the effective date of cancellation of insurance, beneficial stock ownership
filings, funding agreements, creating an insurable interest in active or retired
employee lives for the benefit of an employer, providing for an interstate insurance
product regulation compact, and providing for retroactive applicability and an effective
date.

House File 648, an Act relating to the consolidation of the management of state
archives and records and making conforming changes.

Senate File 172, an Act relating to the establishment of a public charter school
pilot program and providing effective and applicability dates.

Senate File 230, an Act relating to the procedure for reducing the number of
members of a city council from five to three in certain cities and providing an effective
date.

Senate File 351, an Act relating to child care requirements involving prohibitions
against involvement with child care, record checks and evaluations performed by the
Department of Human Services, eligibility for state assistance, and child care fraud
program sanctions, and making penalties applicable.

Senate File 379, an Act relating to certain agricultural liens.

Senate File 386, an Act requiring the Insurance Division of the Department of
Commerce to establish a school health insurance reform team study and to make
recommendations to the General Assembly.

Senate File 392, an Act relating to the Animal Agriculture Compliance Act,
providing for penalties, and providing an effective date.

Senate File 397, an Act relating to the issuance of hunting licenses for anterless
deer, providing for the disposition of harvested deer meat to public institutions,
requiring a report, and providing a penalty.

REPORT OF ADMINISTRATION AND RULES COMMITTEE

MR. SPEAKER: Pursuant to House Concurrent Resolution 104
and Senate Concurrent Resolution 5, your committee on
administration and rules submits the following to be employed in the
indicated positions, and at the indicated classification, grades and
steps, and the changes in the classification of the indicated officers
and employees to be effective on the date indicated:

Grade- Class of Eff.
Position Name Step Appointment Date

Sr. Leg Research Ann M. McCarthy 38-5 P-FT 02-21-03
Analyst
Legislative Secretary Judith K. Elliott 15-2 to S-O 03-14-03
15-3
Sr Leg Research Analyst Lon W. Anderson 38-3 to P-FT 03-28-03
38-4
Leg Research Anna M. Hyatt- 32-2 to P-FT 03-28-03
Analyst 11 Crozier 32-3
Doorkeeper Howard H. Scott 11-1 to S-O 03-28-03
11-2
Assistant Editor A. Nathan Treloar 19-1 E-FT to 03-28-03
S-O
Legislative Committee Opal M. Bigham 17-1 to S-O 04-11-03
Secretary 17-2
Legislative Secretary Devin L. Boerm 15-l to S-O 04-11-03
15-2
Finance Officer I Kelly M. Bronsink 24-5 to P-FT 04-11-03
24-6
Legislative Secretary Dawn M. Chamberlain 15-1 to S-O 04-11-03
15-2
Legislative Committee Brooke A Findley 17-l to S-O 04-11-03
Secretary 17-2
Legislative Secretary Martha L. Fullerton 15-l to S-O 04-11-03
15-2
Legislative Secretary Vikki R. Hanson 15-l to S-O 04-11-03
15-2
Legislative Secretary Janet M Jones 16-1 to S-O 04-11-03
16-2
Legislative Secretary Kyle S. McCullough 16-l to S-O 04-11-03
16-2
Legislative Secretary Lacee R. Oliver 16-l to S-O 04-11-03
16-2
Legislative Committee Martha S. Raecker 18-1 to S-O 04-11-03
Secretary 18-2
Legislative Secretary Diane G Schoultz 16-1 to S-O 04-11-03
16-2
DoorkeeperJames H. Beyer 11-2 to S-O 04-25-03
11-3
Legislative Committee Jill J. Beni 17-2 to S-O 04-25-03
Secretary 17-3
Legislative Secretary Diane K. Burget 16-2 to S-O 04-25-03
16-3
Legislative Committee Mary Beth Danzer 17-2 to S-O 04-25-03
Secretary 17-3
Admin Asst III to Carolyn McNeill 35-4 to P-PT 04-25-03
Leader Sr. AA to Leader Gaukel 38-3
Legislative Committee Lynn M. Hoffman 17-2 to S-O 04-25-03
Secretary 17-3


Legislative Committee Melba K. Murken 17-2 to S-O 04-25-03
Secretary 17-3
Legislative Secretary Darlene A VanOort 18-2 to S-O 04-25-03
18-3

Pursuant to Senate Concurrent Resolution 5, duly adopted, the
following is a list of officers and employees of the Joint Senate/House
and their recommended classification grades and steps:

Facilities Manager 11 Mark L. Willemssen 38-5 to P-Ff 03-28-03

COMMUNICATION RECEIVED

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

OFFICE OF DRUG CONTROL POLICY

2003 update to Iowa's Drug Control Strategy, pursuant to Chapter 80E.1, Code of
Iowa.

SUBCOMMITTEE ASSIGNMENT

House File 693

Education: Roberts, Chair; Boal, Dandekar, Dolecheck, Schickel, Stevens and Wise.

COMMITTEE RECOMMENDATION

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

MARGARET A. THOMSON
Chief Clerk of the House

COMMITTEE ON APPROPRIATIONS

Committee Bill, (Formerly LSB 1128YC), relating to and making appropriations
to state departments and agencies from the rebuild Iowa infrastructure fund,
environment first fund, and tobacco settlement trust fund, relating to the capitol
complex parking structure, and authorizing fees.

Fiscal Note is required.

Recommended Do Pass April 25, 2003.


RESOLUTIONS FILED

HR 57, by Granzow, a resolution honoring the city of Eldora on its
sesquicentennial year.

Laid over under Rule 25.

HR 58, by Granzow, a resolution honoring the city of Buckeye on its
centennial year.

Laid over under Rule 25.

HR 59, by Whitaker, a resolution to urge that the President of the
United States, the United States Department of Agriculture, and the
United States Congress take all necessary measures to prevent the
spread of the soybean rust fungus into the United States, including
by suspending any imports of soybean crops that originate in regions
where the disease has been found to be present.

Laid over under Rule 25.

AMENDMENTS FILED

H-1487 H.F. 654 Senate Amendment
H-1489 H.F. 683 Watts of Dallas
J.K. Van Fossen of Scott Granzow of Hardin
Kramer of Polk Paulsen of Linn
H-1490 H.F. 683 Watts of Dallas
J.K. Van Fossen of Scott Granzow of Hardin
Kramer of Polk Upmeyer of Hancock
Paulsen of Linn
H-1491 H.F. 683 Watts of Dallas
J.K. Van Fossen of Scott
Granzow of Hardin
Kramer of Polk
H-1494 H.F. 676 Alons of Sioux
H-1495 H.F. 685 Senate Amendment
H-1496 H.F. 675 Senate Amendment
H-1497 S.F. 422 Senate Amendment

On motion by Gipp of Winneshiek the House adjourned at 6:56
p.m., until 8:45 a.m., April 29, 2003.


Previous Day: Friday, April 25Next Day: Tuesday, April 29
Senate Journal: Index House Journal: Index
Legislation: Index Bill History: Index

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