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House Journal: Thursday, May 1, 2003

JOURNAL OF THE HOUSE

One Hundred Ninth Calendar Day - Seventy-eighth Session Day

Hall of the House of Representatives
Des Moines, Iowa, Thursday, May 1, 2003

The House met pursuant to adjournment at 8:49 a.m., Speaker
Rants in the chair.

Prayer was offered by Don Bramschreiber, lay pastor of the First
Baptist Church of Ottumwa. He was the guest of Representative
Gaskill of Wapello County.

The Journal of Wednesday, April 30, 2003 was approved.

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by Speaker Rants.

LEAVE OF ABSENCE

Leave of absence was granted as follows:

Baudler of Adair, until his arrival, on request of Speaker Rants.

SPECIAL PRESENTATION TO HOUSE PAGES

Speaker Rants invited the House Pages to the Speaker's station for
a special presentation and thanked them for their service to the
House of Representatives.

Certificates of excellence for serving with honor and distinction as
a House Page during the First Regular Session of the Eightieth
General Assembly were presented to the following Pages by Speaker
Rants, Majority Leader Chuck Gipp of Winneshiek and Minority
Leader Richard Myers of Johnson:

Dean E. Calkins, Jr. Benjamin J. Paladino
Megan Cross Lizzie Phillips
Taryn Dozark Jessica Rundlett
Adam Frei Kathleen Schaben
Amelia Gauger Timothy Schutte
Brent Geels Nick Sievert
Corey Goerdt Elizabeth Skilton

Laura Harson Sadie Stellish
Megan Horan Wade Summers
Cynthia McAfee Noah Udelhoven
April Myers Rachel Van Fossen
Klaire O'Rourke Megan Warner
Natalie Owens

Gipp of Winneshiek asked and received unanimous consent for
the immediate consideration of House File 700.

CONSIDERATION OF BILLS
Appropriations Calendar

House File 700, a bill for an act relating to public expenditure
and regulatory matters, compensating public employees, making and
reducing appropriations, providing for related matters, making
penalties applicable, and providing effective dates, was taken up for
consideration.

The House stood at ease at 9:11 a.m., until the fall of the gavel.

The House resumed session at 11:44 a.m., Speaker Rants in the
chair.

Carroll of Poweshiek offered amendment H-1573 filed by him as
follows:

H-1573

1 Amend House File 700 as follows:
2 1. Page 1, by inserting after line 2, the
3 following:
4 "Section 1. Section 426B.5, subsection 2,
5 paragraph d, subparagraphs (1) and (6), Code 2003, are
6 amended to read as follows:
7 (1) A county must apply to the board for
8 assistance from the risk pool on or before April 1
9 January 25 to cover an unanticipated net expenditure
10 amount in excess of the county's current fiscal year
11 budgeted net expenditure amount for the county's
12 services fund. The risk pool board shall make its
13 final decisions on or before February 25 regarding
14 acceptance or rejection of the applications for
15 assistance and the total amount accepted shall be
16 considered obligated. For purposes of applying for
17 risk pool assistance and for repaying unused risk pool
18 assistance, the current fiscal year budgeted net

19 expenditure amount shall be deemed to be the higher of
20 either the budgeted net expenditure amount in the
21 management plan approved under section 331.439 for the
22 fiscal year in which the application is made or the
23 prior fiscal year's net expenditure amount.
24 (6) The total amount of risk pool assistance shall
25 be limited to the amount available in the risk pool
26 for a fiscal year. If the total amount of eligible
27 assistance exceeds the amount available in the risk
28 pool the amount of assistance paid shall be prorated
29 among the counties eligible for assistance. Moneys
30 remaining unexpended or unobligated in the risk pool
31 at the close of a fiscal year shall remain available
32 for distribution in the succeeding fiscal year
33 following the risk pool board's decisions made
34 pursuant to subparagraph (1) shall be distributed to
35 the counties eligible to receive funding from the
36 allowed growth factor adjustment appropriation for the
37 fiscal year using the distribution methodology
38 applicable to that appropriation."
39 2. Page 1, by inserting after line 25 the
40 following:
41 "Sec. . 2002 Iowa Acts, chapter 1175, section
42 104, subsections 2, 4 and 5, as amended by 2003 Iowa
43 Acts, House File 667, section 41, are amended to read
44 as follows:
45 2. The following formula amounts shall be utilized
46 only to calculate preliminary distribution amounts for
47 fiscal year 2003-2004 under this section by applying
48 the indicated formula provisions to the formula
49 amounts and producing a preliminary distribution total
50 for each county:

Page 2

1 a. For calculation of an allowed growth factor
2 adjustment amount for each county in accordance with
3 the formula in section 331.438, subsection 2,
4 paragraph "b":
5 $ 12,000,000
6 b. For calculation of a distribution amount for
7 eligible counties from the per capita expenditure
8 target pool created in the property tax relief fund in
9 accordance with the requirements in section 426B.5,
10 subsection 1:
11 $ 12,492,712
12 14,492,000
13 c. For calculation of a distribution amount for
14 counties from the mental health and developmental
15 disabilities (MH/DD) community services fund in
16 accordance with the formula provided in the
17 appropriation made for the MH/DD community services

18 fund for the fiscal year beginning July 1, 2003:
19 $ 17,727,890
20 4. After applying the applicable statutory
21 distribution formulas to the amounts indicated in
22 subsection 2 for purposes to produce preliminary
23 distribution totals, the department of human services
24 shall apply a withholding factor to adjust an eligible
25 individual county's preliminary distribution total.
26 An ending balance percentage for each county shall be
27 determined by expressing the county's ending balance
28 on a modified accrual basis under generally accepted
29 accounting principles for the fiscal year beginning
30 July 1, 2002, in the county's mental health, mental
31 retardation, and developmental disabilities services
32 fund created under section 331.424A, as a percentage
33 of the county's gross expenditures from that fund for
34 that fiscal year. The withholding factor for a county
35 shall be the following applicable percent:
36 a. For an ending balance percentage of less than
37 10 percent, a withholding factor of 0 percent. In
38 addition to the county's adjusted distribution total,
39 a county that is subject to this paragraph "a" shall
40 receive an inflation adjustment equal to 2.6 percent
41 of the gross expenditures reported for the county's
42 services fund for that fiscal year.
43 b. For an ending balance percentage of 10 through
44 24 percent, a withholding factor of 25 percent.
45 c. For an ending balance percentage of 25 through
46 34 percent, a withholding factor of 60 percent.
47 d. For an ending balance percentage of 35 through
48 44 percent, a withholding factor of 85 percent.
49 e. d. For an ending balance percentage of 45 35
50 percent or more, a withholding factor of 100 percent.

Page 3

1 5. The total withholding amounts applied pursuant
2 to subsection 4 shall be equal to a withholding target
3 amount of $7,419,074 and the appropriation enacted by
4 the Eightieth General Assembly, 2003 Session, for the
5 MH/DD community services fund shall be reduced by the
6 amount necessary to attain the withholding target
7 amount $9,418,362. If the department of human
8 services determines that the amount to be withheld in
9 accordance with subsection 4 is not equal to the
10 target withholding amount, the department shall adjust
11 the withholding factors listed in subsection 4 as
12 necessary to achieve the withholding target amount.
13 However, in making such adjustments to the withholding
14 factors, the department shall strive to minimize
15 changes to the withholding factors for those ending
16 balance percentage ranges that are lower than others

17 and shall not adjust the zero withholding factor or
18 the inflation adjustment percentage specified in
19 subsection 4, paragraph "a"."

QUORUM CALL

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

On motion by Carroll of Poweshiek, amendment H-1573 was
adopted.

Murphy of Dubuque offered the following amendment H-1586 filed
by Fallon of Polk from the floor and moved its adoption:

H-1586

1 Amend House File 700 as follows:
2 1. Page 2, by striking lines 23 through 30.

Roll call was requested by Fallon of Polk and Myers of Johnson.

Rule 75 was invoked.

On the question "Shall amendment H-1586 be adopted?" (H.F. 700)

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

 



The nays were, 49:

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

 


Absent or not voting, 5:
Baudler Bukta Greiner Hansen
Van Fossen, J.K.

 


Amendment H-1586 lost.

Speaker pro tempore Carroll in the chair at 12:30 p.m.

Wise of Lee offered the following amendment H-1577 filed by Wise,
et al., and moved its adoption:

H-1577

1 Amend House File 700 as follows:
2 1. Page 3, line 1, by striking the word "fifty-
3 six" and inserting the following: "sixty-six".
4 2. Page 7, by inserting after line 3 the
5 following:
6 "Sec. . CASH RESERVE. There is appropriated
7 from the cash reserve fund to the general fund of the
8 state for the fiscal year beginning July 1, 2003, and
9 ending June 30, 2004, the sum of $10,000,000."
10 3. Page 34, by striking lines 6 through 28 and
11 inserting the following: "are amended to read as
12 follows:
13 6. For the fiscal year beginning July 1, 2001
14 2003, and ending June 30, 2002 2004, to the department
15 of education from phase III moneys, the amount of
16 seventy-five thousand dollars to administer the
17 ambassador to education position in accordance with
18 section 256.45.
19 10. For the fiscal year beginning July 1, 2001
20 2003, and ending June 30, 2002 2004, to the department

21 of education from phase III moneys the amount of
22 forty-seven thousand dollars for the Iowa mathematics
23 and science coalition."

Roll call was requested by Wise of Lee and T. Taylor of Linn.

Rule 75 was invoked.

On the question "Shall amendment H-1577 be adopted?" (H.F. 700)

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

 


The nays were, 52:
Alons 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 Schickel Tjepkes
Tymeson Upmeyer Van Engelenhoven Van Fossen, J.K.
Van Fossen, J.R. Watts Wilderdyke Mr. Speaker
Rants
Absent or not voting, 2:

 

Baudler
Bukta


 


Amendment H-1577 lost.
Dix of Butler offered amendment H-1582 filed by him from the
floor as follows:

H-1582

1 Amend House File 700 as follows:
2 1. Page 5, by inserting after line 10 the
3 following:
4 "Sec. . REDUCTION IN CREDITS NOT APPLICABLE.
5 The provision in section 25B.7 relating to the
6 proration of the property tax credits does not apply
7 with respect to the amount of state reimbursement for
8 property tax credits under this division."
9 2. Page 5, line 22, by inserting after the figure
10 "8.62," the following: "except for the balances of
11 charter agencies, as defined in section 7J.1, if
12 enacted by 2003 Iowa Acts, Senate File 453,".
13 3. Page 6, by inserting after line 11 the
14 following:
15 "Sec. . REBUILD IOWA INFRASTRUCTURE FUND.
16 Notwithstanding section 8.57, subsection 5, there is
17 appropriated from the rebuild Iowa infrastructure fund
18 created in section 8.57, subsection 5, to the general
19 fund of the state during the fiscal year beginning
20 July 1, 2003, and ending June 30, 2004, the following
21 amount:
22 $ 10,000,000
23 Sec. . IOWA LAW ENFORCEMENT ACADEMY. 2003 Iowa
24 Acts, Senate File 439, section 10, subsection 1,
25 unnumbered paragraph 2, if enacted, is amended to read
26 as follows:
27 For salaries, support, maintenance, miscellaneous
28 purposes, including jailer training and technical
29 assistance, and for not more than the following full-
30 time equivalent positions:
31 $ 1,002,629
32 1,047,629
33 FTEs 30.05
34 Sec. . MILITARY PAY DIFFERENTIAL. There is
35 appropriated from the cash reserve fund to the
36 department of revenue and finance or its successor
37 agency for the period beginning March 19, 2003, and
38 ending June 30, 2003, the following amount, or so much
39 thereof as is necessary, for the purposes designated:
40 For a military pay differential program and health
41 insurance retention program for individuals activated
42 for the armed services of the United States, for
43 employees on the central payroll system:
44 $ 1,810,000
45 Of the funds appropriated in this section, up to

46 $10,000 is transferred to the Iowa department of
47 public health for allocation to community mental
48 health centers to provide counseling services to

49 persons who are members of the national guard and
50 reservists activated but as yet not sent to combat

Page 2

1 zones and to the persons' family members. The
2 sessions shall be provided on a first come, first
3 served basis and shall be limited to three visits per
4 family.
5 The department or agency receiving funds under this
6 section shall report monthly to the fiscal committee
7 of the legislative council on the use of the funds.
8 Notwithstanding section 8.33, unencumbered or
9 unobligated funds remaining on June 30, 2003, from the
10 appropriation made in this section shall not revert
11 but shall remain available to be used for the purposes
12 designated in the following fiscal year.
13 Sec. . ASSISTED LIVING PROGRAMS.
14 Notwithstanding section 231C.6, any fees remaining on
15 June 30, 2003, in the assisted living program fund
16 created pursuant to section 231C.6 are appropriated to
17 the department of inspections and appeals for the
18 fiscal year beginning July 1, 2003, and ending June
19 30, 2004, to carry out the purposes of chapter 231C."
20 4. Page 7, by inserting after line 3 the
21 following:
22 "Sec. . COUNTY HOSPITALS. There is
23 appropriated from the general fund of the state to the
24 department of human services for the fiscal year
25 beginning July 1, 2003, and ending June 30, 2004, the
26 following amount, or so much thereof as is necessary,
27 for the purpose designated:
28 For support of operational expenses of county
29 hospitals in counties having a population of two
30 hundred twenty-five thousand or more:
31 $ 312,000
32 Sec. . WORKFORCE DEVELOPMENT. There is
33 appropriated from the general fund of the state to the
34 Iowa department of workforce development for the
35 fiscal year beginning July 1, 2003, and ending June
36 30, 2004, the following amount, or so much thereof as
37 is necessary, for the purpose designated:
38 For salaries and support and for the following
39 full-time equivalent positions.
40 $ 250,000
41 FTEs 5.00
42 The appropriation in this section shall be used for
43 four OSHA inspectors and one workers' compensation
44 compliance officer. The appropriation in this section
45 is contingent upon the enactment of 2003 Iowa Acts,
46 Senate File 344, by the Eightieth General Assembly,
47 2003 Regular Session."

48 5. Page 9, by inserting after line 19 the
49 following:
50 "Sec. . Section 256D.4, subsection 2,

Page 3

1 unnumbered paragraph 1, Code 2003, is amended to read
2 as follows:
3 For each fiscal year in the fiscal period beginning
4 July 1, 2001, and ending June 30, 2003, moneys Moneys
5 appropriated pursuant to section 256D.5, subsection 3,
6 shall be allocated to school districts as follows:
7 Sec. . Section 256D.5, subsection 3, Code 2003,
8 is amended to read as follows:
9 3. For each fiscal year of the fiscal period
10 beginning July 1, 2001, and ending June 30, 2003 2004,
11 the sum of thirty million dollars."
12 6. Page 10, by inserting after line 25 the
13 following:
14 "Sec. . Section 294A.25, subsection 10, Code
15 2003, is amended to read as follows:
16 10. For the each fiscal year beginning July 1,
17 2001, and ending June 30, 2002, to the department of
18 education from phase III moneys the amount of forty-
19 seven thousand dollars for the Iowa mathematics and
20 science coalition."
21 7. Page 11, by inserting after line 5 the
22 following:
23 "Sec. . 2002 Iowa Acts, chapter 1173, section
24 18, is amended to read as follows:
25 SEC. 18. POOLED TECHNOLOGY FUNDING - PRIOR
26 ALLOCATIONS - NONREVERSION. Notwithstanding section
27 8.33, moneys appropriated and allocated in 2001 Iowa
28 Acts, chapter 189, section 5, subsection 1, which
29 remain unobligated or unexpended at the close of the
30 fiscal year for which they were appropriated shall not
31 revert, but shall remain available for expenditure for
32 the purposes for which they were appropriated and
33 allocated, for the fiscal year period beginning July
34 1, 2002, and ending June 30, 2003 2004."
35 8. Page 11, by inserting after line 32 the
36 following:
37 "Sec. . 2003 Iowa Acts, House File 655, section
38 24, if enacted, is amended to read as follows:
39 SEC. 24. READY TO WORK PROGRAM COORDINATOR. There
40 is appropriated from the surplus funds in the long-
41 term disability reserve fund and the workers'
42 compensation trust fund to the department of personnel
43 for the fiscal year beginning July 1, 2003, and ending
44 June 30, 2004, the following amount, or so much
45 thereof as is necessary, to be used for the purposes
46 designated:

47 For the salary, support, and miscellaneous expenses
48 for the ready to work program and coordinator:
49 $ 89,416
50 The moneys appropriated pursuant to this section

Page 4

1 shall be taken in equal proportions from the long-term
2 disability reserve fund and the workers' compensation
3 trust fund.
4 Sec. . 2003 Iowa Acts, House File 655, section
5 34, if enacted, is amended to read as follows:
6 SEC. 34. READY TO WORK PROGRAM COORDINATOR. There
7 is appropriated from the surplus funds in the long-
8 term disability reserve fund and the workers'
9 compensation trust fund to the department of
10 administrative services for the fiscal year beginning
11 July 1, 2003, and ending June 30, 2004, the following
12 amount, or so much thereof as is necessary, to be used
13 for the purposes designated:
14 For the salary, support, and miscellaneous expenses
15 for the ready to work program and coordinator:
16 $ 89,416
17 The moneys appropriated pursuant to this section
18 shall be taken in equal proportions from the long-term
19 disability reserve fund and the workers' compensation
20 trust fund.
21 Sec. ___. CONTINGENT CASH RESERVE APPROPRIATION.
22 1. There is appropriated from the cash reserve
23 fund to the general fund of the state for the fiscal
24 year beginning July 1, 2002, and ending June 30, 2003,
25 for the purposes of reducing or preventing any
26 overdraft on or deficit in the general fund of the
27 state, an amount not to exceed $50,000,000.
28 2. The appropriation made in subsection 1 is
29 contingent upon all of the following having occurred:
30 a. The revenue estimating conference estimate of
31 general fund receipts made during the last quarter of
32 the fiscal year was or the actual fiscal year receipts
33 and accruals were at least one-half of one percent
34 less than the comparable estimate made during the
35 third quarter of the fiscal year.
36 b. The governor has implemented the uniform
37 reductions in appropriations required in section 8.31
38 as a result of paragraph "a" and such reduction was
39 insufficient to prevent an overdraft on or deficit in
40 the general fund of the state or the governor did not
41 implement uniform reductions in appropriations because
42 of the lateness of the estimated or actual receipts
43 and accruals under paragraph "a".
44 c. The balance of the general fund of the state at
45 the end of the fiscal year prior to the appropriation

46 made in subsection 1 was negative.
47 d. The governor has issued an official
48 proclamation and has notified the cochairpersons of
49 the fiscal committee of the legislative council and
50 the legislative services agency that the contingencies

Page 5

1 in paragraphs "a" through "c" have occurred and the
2 reasons why the uniform reductions specified in
3 paragraph "b" were insufficient or were not
4 implemented to prevent an overdraft on or deficit in
5 the general fund of the state.
6 3. If an appropriation is made pursuant to
7 subsection 1 for a fiscal year, there is appropriated
8 from the general fund of the state to the cash reserve
9 fund for the following fiscal year, the amount of the
10 appropriation made pursuant to subsection 1."
11 9. Page 12, by inserting after line 2 the
12 following:
13 " . The section amending 2002 Iowa Acts, chapter
14 1173, section 18, relating to the nonreversion of
15 pooled technology funding.
16 . The section appropriating moneys from the
17 cash reserve fund for the military pay differential
18 program. This section applies retroactively to March
19 19, 2003.
20 . The section appropriating moneys from the
21 assisted living program fund.
22 . The section making the contingent
23 appropriation from the cash reserve fund."
24 10. Page 13, by inserting after line 9 the
25 following:
26 " . The collective bargaining agreement
27 negotiated pursuant to chapter 20 for employees in the
28 patient care bargaining unit.
29 . The collective bargaining agreement
30 negotiated pursuant to chapter 20 for employees in the
31 science bargaining unit."
32 11. Page 23, by inserting after line 34 the
33 following:
34 "Sec. . Section 7J.1, subsection 1, if enacted
35 by 2003 Iowa Acts, Senate File 453, is amended to read
36 as follows:
37 7J.1 CHARTER AGENCIES.
38 1. DESIGNATION OF CHARTER AGENCIES - PURPOSE.
39 The governor may, by executive order, designate up to
40 five state departments or agencies, as described in
41 section 7E.5, other than the department of
42 administrative services, if the department is
43 established in law, or the department of management,
44 as a charter agency by July 1, 2003. The designation

45 of a charter agency shall be for a period of five
46 years which shall terminate as of June 30, 2008. The
47 purpose of designating a charter agency is to grant
48 the agency additional authority as provided by this
49 chapter while reducing the total appropriations to the
50 agency.

Page 6

1 Sec. . Section 7J.1, subsection 3, paragraph a,
2 if enacted by 2003 Iowa Acts, Senate File 453, is
3 amended to read as follows:
4 a. It is the intent of the general assembly that
5 state general fund operating appropriations to a
6 charter agency for any the fiscal year beginning July
7 1, 2003, and ending June 30, 2004, shall be reduced,
8 with a target reduction of ten percent for each
9 charter agency, from the appropriation that would
10 otherwise have been enacted for that charter agency
11 which, along with any additional generated revenue to
12 the general fund of the state attributed to the
13 reinvention process as determined by the department of
14 management, over that already committed to the general
15 fund of the state by a charter agency, will achieve an
16 overall target of fifteen million dollars.
17 Sec. . Section 7J.2, if enacted by 2003 Iowa
18 Acts, Senate File 453, is amended to read as follows:
19 7J.2 CHARTER AGENCY LOAN GRANT FUND.
20 1. A charter agency loan grant fund is created in
21 the state treasury under the control of the department
22 of management for the purpose of providing funding to
23 support innovation by those state agencies designated
24 as charter agencies in accordance with section 7J.1.
25 Innovation purposes shall include but are not limited
26 to training, development of outcome measurement
27 systems, management system modifications, and other
28 modifications associated with transition of operations
29 to charter agency status. Moneys in the fund are
30 appropriated to the department of management for the
31 purposes described in this subsection.
32 2. A charter agency requesting a loan grant from
33 the fund shall complete an application process
34 designated by the director of the department of
35 management. Minimum loan requirements for charter
36 agency requests shall be determined by the director.
37 3. In order for the fund to be self-supporting,
38 the director of the department of management shall
39 establish repayment schedules for each loan awarded.
40 An agency shall repay the loan over a period not to
41 exceed five years with interest, at a rate to be
42 determined by the director.
43 4. 3. Notwithstanding section 12C.7, subsection 2,

44 interest or earnings on moneys deposited in the
45 charter agency loan grant fund shall be credited to
46 the charter agency loan grant fund. Notwithstanding
47 section 8.33, moneys credited to the charter agency
48 loan grant fund shall not revert to the fund from
49 which appropriated at the close of a fiscal year.
50 Sec. . Section 8.23, subsection 1, paragraph a,

Page 7

1 Code 2003, is amended by striking the paragraph.
2 Sec. . Section 8.31, Code 2003, is amended to
3 read as follows:
4 8.31 QUARTERLY REQUISITIONS -- ALLOTMENTS OF
5 APPROPRIATIONS - EXCEPTIONS - MODIFICATIONS.
6 1. a. Before an appropriation for administration,
7 operation and maintenance of any department or
8 establishment shall become becomes available, there
9 shall be submitted the department or establishment
10 shall submit to the director of the department of
11 management, not less than twenty days before the
12 beginning of each quarter of each fiscal year, a
13 requisition for an allotment of the amount estimated
14 to be necessary to carry on its work appropriation
15 according to dates identified in the requisition
16 during the ensuing quarter fiscal year by which
17 portions of the appropriation will be needed. The
18 department or establishment shall submit the
19 requisition by June 1, prior to the start of a fiscal
20 year or by another date identified by the director.
21 The requisition shall contain details of proposed
22 expenditures as may be required by the director of the
23 department of management subject to review by the
24 governor.
25 b. The director of the department of management
26 shall approve the allotments subject to review by the
27 governor, unless it is found that the estimated budget
28 resources during the fiscal year are insufficient to
29 pay all appropriations in full, in which event such
30 allotments may be modified to the extent the governor
31 may deem necessary in order that there shall be no
32 overdraft or deficit in the several funds of the state
33 at the end of the fiscal year, and the director shall
34 submit copies of the allotments thus approved or
35 modified to the head of the department or
36 establishment concerned, who shall set up such
37 allotments on the books and be governed accordingly in
38 the control of expenditures.
39 Allotments of appropriations made for equipment,
40 land, permanent improvements, and other capital
41 projects may, however, be allotted in one amount by
42 major classes or projects for which they are

43 expendable without regard to quarterly periods. For
44 fiscal years beginning on or after July 1, 1989,
45 allotments of appropriations for equipment, land,
46 permanent improvements, and other capital projects,
47 except where contracts have been entered into with
48 regard to the acquisition or project prior to July 1,
49 1989, shall not be allotted in one amount but shall be
50 allotted at quarterly periods as provided in this

Page 8

1 section.
2 2. Allotments thus made in accordance with
3 subsection 1 may be subsequently modified by the
4 director of the department of management at the
5 direction of the governor either upon the written
6 request of the head of the department or establishment
7 concerned, or in the event the governor finds that the
8 estimated budget resources during the fiscal year are
9 insufficient to pay all appropriations in full, upon
10 the governor's own initiative to the extent the
11 governor may deem necessary in order that there shall
12 be no overdraft or deficit in the several funds of the
13 state at the end of the fiscal year; and the head of
14 the department or establishment shall be given notice
15 of a modification in the same way as in the case of
16 original allotments.
17 3. Provided, however, that the The allotment
18 requests of all departments and establishments
19 collecting governmental fees and other revenue which
20 supplement a state appropriation shall attach to the
21 summary of requests a statement showing how much of
22 the proposed allotments are to be financed from (1)
23 state appropriations, (2) stores, and (3) repayment
24 receipts.
25 4. The procedure to be employed in controlling the
26 expenditures and receipts of the state fair board and
27 the institutions under the state board of regents,
28 whose collections are not deposited in the state
29 treasury, is that outlined in section 421.31,
30 subsection 6.
31 5. If the governor determines that the estimated
32 budget resources during the fiscal year are
33 insufficient to pay all appropriations in full, the
34 reductions shall be uniform and prorated between all
35 departments, agencies and establishments upon the
36 basis of their respective appropriations.
37 6. Allotments from appropriations for the foreign
38 trade offices of the department of economic
39 development, if the appropriations are described by
40 line item in the department's appropriation Act or
41 another Act, may be made without regard to quarterly

42 periods as is necessary to take advantage of the most
43 favorable foreign currency exchange rates.
44 Sec. . Section 8.57, subsection 1, paragraph c,
45 Code 2003, is amended to read as follows:
46 c. The amount appropriated in this section is not
47 subject to the provisions of section 8.31, relating to
48 quarterly requisitions and allotment, or to section
49 8.32, relating to conditional availability of
50 appropriations."

Page 9

1 12. Page 24, by inserting after line 9 the
2 following:
3 "Sec. . Section 12C.27, Code 2003, is amended
4 by striking the section and inserting in lieu thereof
5 the following:
6 12C.27 FAILURE TO MAINTAIN REQUIRED COLLATERAL.
7 If treasurer of state determines that a bank fails
8 to comply with chapter 12C.22, subsections 2 and 3,
9 the treasurer of state may restrict that bank from
10 accepting uninsured public funds and shall notify the
11 office of thrift supervision, the office of the
12 comptroller of the currency, or the superintendent as
13 applicable, who may take such action against the bank,
14 its board of directors and officers as permitted by
15 law."
16 13. Page 24, by inserting after line 30 the
17 following:
18 "Sec. . Section 15E.42, subsection 3, Code
19 2003, is amended to read as follows:
20 3. "Investor" means an individual making a cash
21 investment in a qualifying business or an individual
22 taxed on income from a revocable trust's cash
23 investment in a qualifying business or a person making
24 a cash investment in a community-based seed capital
25 fund. "Investor" does not include a person which is a
26 current or previous owner, member, or shareholder in a
27 qualifying business.
28 Sec. . Section 15E.43, subsection 1, paragraph
29 a, Code 2003, is amended to read as follows:
30 a. For tax years beginning on or after January 1,
31 2002, a tax credit shall be allowed against the taxes
32 imposed in chapter 422, division II, for a portion of
33 an individual taxpayer's equity investment, as
34 provided in subsection 2, in a qualifying business.
35 An individual shall not claim a tax credit under this
36 paragraph of a partnership, limited liability company,
37 S corporation, estate, or trust electing to have
38 income taxed directly to the individual. However, an
39 individual receiving income from a revocable trust's
40 investment in a qualified business may claim a tax

41 credit under this paragraph against the taxes imposed
42 in chapter 422, division II, for a portion of the
43 revocable trust's equity investment, as provided in
44 subsection 2, in a qualified business.
45 Sec. . Section 15E.43, subsection 1, Code 2003,
46 is amended by adding the following new paragraph:
47 NEW PARAGRAPH. d. In the case of a tax credit
48 allowed against the taxes imposed in chapter 422,
49 division II, where the taxpayer died prior to
50 redeeming the entire tax credit, the remaining credit

Page 10

1 can be redeemed on the decedent's final income tax
2 return.
3 Sec. . Section 15E.45, subsection 2, paragraph
4 c, Code 2003, is amended to read as follows:
5 c. The fund has no fewer than ten individual
6 investors who are not affiliates, with no single
7 investor and affiliates of that investor together
8 owning a total of more than twenty-five percent of the
9 ownership interests outstanding in the fund.
10 Sec. . Section 15E.51, subsection 4, Code 2003,
11 is amended to read as follows:
12 4. A taxpayer shall not claim a tax credit under
13 this section if the taxpayer is a venture capital
14 investment fund allocation manager for the Iowa fund
15 of funds created in section 15E.65 or an investor that
16 receives a tax credit for an the same investment in a
17 community-based seed capital fund as defined in 2002
18 Iowa Acts, House File 2271.
19 Sec. . Section 15E.66, Code 2003, is amended by
20 adding the following new subsection:
21 NEW SUBSECTION. 8. At such time that the Iowa
22 capital investment corporation requests the issuance
23 of tax credits with respect to an investment in the
24 Iowa fund of funds and prior to issuing such tax
25 credits, the board shall consider the terms of the
26 investment and the terms of the proposed tax credit
27 certificate and shall assess the level of risk that
28 the tax credits will be redeemed and the likelihood
29 that the investment will result in returns in excess
30 of amounts payable to designated investors which may
31 be reinvested in the Iowa fund of funds revolving fund
32 as provided in section 15E.65. In making this
33 determination, the board shall compare how alternative
34 investment structures would affect the level of risk
35 that the tax credits will be redeemed and the
36 likelihood that the investment will cause excess
37 returns to be generated in the Iowa fund of funds for
38 reinvestment in the revolving fund. The board may
39 issue tax credits with respect to a particular

40 investment in the Iowa fund of funds consistent with
41 the provisions hereof if it determines that the Iowa
42 capital investment corporation has structured the
43 investments in the Iowa fund of funds in an
44 appropriate manner to minimize the risk that the tax
45 credits will be redeemed and to maximize the amount
46 available to be reinvested in the Iowa fund of funds
47 revolving fund. A member of the board shall not incur
48 any liability with respect to any decision to issue
49 tax credits or to refuse to issue tax credits or with
50 respect to the performance of the investments in the

Page 11

1 Iowa fund of funds."
2 14. Page 29, line 21, by inserting after the
3 figure "29C.6" the following: "and disaster medical
4 assistance teams when acting under the provisions of
5 section 135.153".
6 15. Page 30, by inserting after line 27 the
7 following:
8 "Sec. . Section 80B.5, Code 2003, is amended to
9 read as follows:
10 80B.5 ADMINISTRATION.
11 The administration of the Iowa law enforcement
12 academy and council Act shall be vested in the office
13 of the governor. A director of the academy and such
14 staff Staff as may be necessary for it the law
15 enforcement academy to function shall be employed
16 pursuant to the Iowa merit system.
17 Sec. . NEW SECTION. 80B.5A DIRECTOR.
18 The governor shall appoint the director of the Iowa
19 law enforcement academy, subject to senate
20 confirmation, to a four-year term beginning and ending
21 as provided in section 69.19."
22 16. By striking page 30, line 28, through page
23 31, line 17, and inserting the following:
24 "Sec. . Section 99G.9, subsection 3, paragraph
25 j, if enacted by 2003 Iowa Acts, Senate File 453, is
26 amended by striking the paragraph.
27 Sec. . Section 99G.40, subsection 5, if enacted
28 by 2003 Iowa Acts, Senate File 453, is amended to read
29 as follows:
30 5. The authority shall adopt the same fiscal year
31 as that used by state government and shall be audited
32 annually by the auditor of state or a certified public
33 accounting firm appointed by the auditor. The auditor
34 of state or a designee conducting an audit under this
35 chapter shall have access and authority to examine any
36 and all records of licensees necessary to determine
37 compliance with this chapter and the rules adopted
38 pursuant to this chapter. The cost of audits and

39 examinations conducted by the auditor of state or a
40 designee shall be paid for by the authority."
41 17. Page 31, by inserting before line 18 the
42 following:
43 "Sec. . Section 257.11, subsection 5, paragraph
44 b, Code 2003, is amended to read as follows:
45 b. A school district which establishes a regional
46 academy shall be eligible to assign its resident
47 pupils attending classes at the academy a weighting of
48 one-tenth of the percentage of the pupil's school day
49 during which the pupil attends classes at the regional
50 academy. For the purposes of this subsection,

Page 12

1 "regional academy" means an educational institution
2 established by a school district to which multiple
3 schools send pupils in grades seven nine through
4 twelve, and may include a virtual academy. A regional
5 academy shall include in its curriculum advanced-level
6 courses and may include in its curriculum vocational-
7 technical programs courses. The maximum amount of
8 additional weighting for which a school district
9 establishing a regional academy shall be eligible is
10 an amount corresponding to fifteen additional pupils.
11 The minimum amount of additional weighting for which a
12 school district establishing a regional academy shall
13 be eligible is an amount corresponding to ten
14 additional pupils if the academy provides both
15 advanced-level courses and vocational technical
16 courses. However, if the sum of the funding amount
17 calculated for all districts operating regional
18 academies under this subsection exceeds one million
19 dollars for the school year beginning July 1, 2004,
20 and each succeeding fiscal year, the director of the
21 department of management shall prorate the amount
22 calculated for each district. The proration shall be
23 based upon the amount calculated for each district
24 when compared to the sum of the amount for all
25 districts.
26 Sec. . NEW SECTION. 174.24 LIABILITY OF
27 COUNTY FAIR SOCIETY.
28 A society, as defined in section 174.1, shall be
29 immune from liability for any damages incurred at a
30 county fair held by the society if the damages were
31 incurred on or at an exhibit, leased facility,
32 amusement ride, or an activity not under the control
33 of the society, if the county fair requires the vendor
34 in control of the exhibit, leased facility, amusement
35 ride, or other activity to obtain liability insurance
36 of at least three hundred thousand dollars. An
37 officer or employee of a society, as defined in

38 section 174.1, shall not be held liable for punitive
39 damages as a result of acts in the performance of the
40 officer's or employee's duties, unless reckless
41 misconduct is proven."
42 18. Page 34, by inserting after line 4 the
43 following:
44 "Sec. . Section 284.13, subsection 1, paragraph
45 g, unnumbered paragraph 1, Code 2003, is amended to
46 read as follows:
47 For each fiscal year in which funds are
48 appropriated for purposes of this chapter, the moneys
49 remaining after distribution as provided in paragraphs
50 "a" through "f" and "h" shall be allocated to school

Page 13

1 districts for salaries and career development in
2 accordance with the following formula:"
3 19. Page 34, by striking lines 5 and 6 and
4 inserting the following:
5 "Sec. . Section 294A.25, subsection 6, Code
6 2003, is amended by striking the subsection."
7 20. Page 37, by inserting after line 35 the
8 following:
9 "Sec. . Section 331.605C, subsections 1 and 2,
10 if enacted by 2003 Iowa Acts, Senate File 453, are
11 amended to read as follows:
12 1. For the fiscal year beginning July 1, 2003, and
13 ending June 30, 2004, the recorder shall collect a fee
14 of five dollars for each recorded transaction,
15 regardless of the number of pages, for which a fee is
16 paid pursuant to section 331.604 to be used for the
17 purposes of planning and implementing electronic
18 recording and electronic transactions in each county
19 and developing county and statewide internet websites
20 to provide electronic access to records and
21 information.
22 2. Beginning July 1, 2004, the recorder shall
23 collect a fee of one dollar for each recorded
24 transaction, regardless of the number of pages, for
25 which a fee is paid pursuant to section 331.604 to be
26 used for the purpose of paying the county's ongoing
27 costs of maintaining the systems developed and
28 implemented under subsection 1."
29 21. Page 38, by inserting after line 26 the
30 following:
31 "Sec. . Section 331.605C, if enacted by 2003
32 Iowa Acts, Senate File 453, is amended by adding the
33 following new subsection:
34 NEW SUBSECTION. 7. The treasurer of state shall
35 no later than December 1, 2003, submit a report to the
36 general assembly detailing the amount of funds

37 collected statewide pursuant to this section. The
38 report shall include the total revenue currently being
39 collected pursuant to section 310.604 and the total
40 which has been collected pursuant to that section for
41 the past three years. Funds collected under
42 subsection 4 shall not be distributed until such time
43 as the general assembly has approved the
44 implementation of the statewide website."
45 22. Page 38, by inserting after line 33 the
46 following:
47 "Sec. . Section 423.4, Code 2003, is amended by
48 adding the following new subsection:
49 NEW SUBSECTION. 9A. Vehicles subject to
50 registration which are transferred from a corporation

Page 14

1 that is primarily engaged in the business of leasing
2 vehicles subject to registration to a corporation that
3 is primarily engaged in the business of leasing
4 vehicles subject to registration when the transferor
5 and transferee corporations are part of the same
6 controlled group for federal income tax purposes."
7 23. Page 39, by striking line 23 and inserting
8 the following: "apply for a bonded certificate of
9 title under chapter 321 section 321.42. If".
10 24. Page 39, by inserting after line 27 the
11 following:
12 "Sec. . Section 452A.2, Code 2003, is amended
13 by adding the following new subsection:
14 NEW SUBSECTION. 20A. "Nonterminal storage
15 facility" means a facility where motor fuel or special
16 fuel, other than liquefied petroleum gas, is stored
17 that is not supplied by a pipeline or a marine vessel.
18 "Nonterminal storage facility" includes a facility
19 that manufactures products such as alcohol, biofuel,
20 blend stocks, or additives which may be used as motor
21 fuel or special fuel, other than liquefied petroleum
22 gas, for operating motor vehicles or aircraft."
23 25. Page 40, line 5, by inserting after the word
24 "subsection." the following: "Notwithstanding section
25 8.33, any unexpended balance in the fund at the end of
26 the fiscal year shall be retained in the fund."
27 26. Page 42, by inserting after line 1 the
28 following:
29 "Sec. . Section 505.7, Code 2003, is amended by
30 adding the following new subsection:
31 NEW SUBSECTION. 9. The commissioner may retain
32 funds collected during the fiscal year beginning July
33 1, 2003, pursuant to any settlement, enforcement
34 action, or other legal action authorized under federal
35 or state law for the purpose of reimbursing costs and

36 expenses of the division.
37 Sec. . Section 518.18, unnumbered paragraph 2,
38 Code 2003, is amended to read as follows:
39 1. Two The applicable percent of the gross amount
40 of premiums received during the preceding calendar
41 year, after deducting the amount returned upon the
42 canceled policies, certificates, and rejected
43 applications; and after deducting premiums paid for
44 windstorm or hail reinsurance on properties
45 specifically reinsured; provided, however, that.
46 However, the reinsurer of such windstorm or hail risks
47 shall pay two the applicable percent of the gross
48 amount of reinsurance premiums received upon such
49 risks after deducting the amounts returned upon
50 canceled policies, certificates, and rejected

Page 15

1 applications. For purposes of this section,
2 "applicable percent" means the same as specified in
3 section 432.1, subsection 4.
4 2. Except as provided in subsection 3, the premium
5 tax shall be paid on or before March 1 of the year
6 following the calendar year for which the tax is due.
7 The commissioner of insurance may suspend the
8 certificate of authority of a county mutual insurance
9 association that fails to pay its premium tax on or
10 before the due date.
11 3. a. Each county mutual insurance association
12 transacting business in this state whose Iowa premium
13 tax liability for the preceding calendar year was one
14 thousand dollars or more shall remit on or before June
15 1, on a prepayment basis, an amount equal to one-half
16 of the premium tax liability for the preceding
17 calendar year.
18 b. In addition to the prepayment amount in
19 paragraph "a", each association shall remit on or
20 before June 30, on a prepayment basis, an additional
21 amount equal to the following percent of the premium
22 tax liability for the preceding calendar year as
23 follows:
24 (1) For prepayment in the 2003 and 2004 calendar
25 years, eleven percent.
26 (2) For prepayment in the 2005 calendar year,
27 twenty-six percent.
28 (3) For prepayment in the 2006 and subsequent
29 calendar years, fifty percent.
30 c. The sums prepaid by a county mutual insurance
31 association under this subsection shall be allowed as
32 credits against its premium tax liability for the
33 calendar year during which the payments are made. If
34 a prepayment made under this subsection exceeds the

35 annual premium tax liability, the excess shall be
36 allowed as a credit against subsequent prepayment or
37 tax liabilities. The commissioner of insurance may
38 suspend the certificate of authority of an association
39 that fails to make a prepayment on or before the due
40 date.
41 Sec. . Section 518A.35, Code 2003, is amended
42 to read as follows:
43 518A.35 ANNUAL TAX.
44 1. A state mutual insurance association doing
45 business under this chapter shall on or before the
46 first day of March, each year, pay to the director of
47 revenue and finance, or a depository designated by the
48 director, a sum equivalent to two the applicable
49 percent of the gross receipts from premiums and fees
50 for business done within the state, including all

Page 16

1 insurance upon property situated in the state without
2 including or deducting any amounts received or paid
3 for reinsurance. However, a company reinsuring
4 windstorm or hail risks written by county mutual
5 insurance associations is required to pay a two the
6 applicable percent tax on the gross amount of
7 reinsurance premiums received upon such risks, but
8 after deducting the amount returned upon canceled
9 policies and rejected applications covering property
10 situated within the state, and dividends returned to
11 policyholders on property situated within the state.
12 For purposes of this section, "applicable percent"
13 means the same as specified in section 432.1,
14 subsection 4.
15 2. Except as provided in subsection 3, the premium
16 tax shall be paid on or before March 1 of the year
17 following the calendar year for which the tax is due.
18 The commissioner of insurance may suspend the
19 certificate of authority of a state mutual insurance
20 association that fails to pay its premium tax on or
21 before the due date.
22 3. a. Each state mutual insurance association
23 transacting business in this state whose Iowa premium
24 tax liability for the preceding calendar year was one
25 thousand dollars or more shall remit on or before June
26 1, on a prepayment basis, an amount equal to one-half
27 of the premium tax liability for the preceding
28 calendar year.
29 b. In addition to the prepayment amount in
30 paragraph "a", each association shall remit on or
31 before June 30, on a prepayment basis, an additional
32 amount equal to the following percent of the premium
33 tax liability for the preceding calendar year as

34 follows:
35 (1) For prepayment in the 2003 and 2004 calendar
36 years, eleven percent.
37 (2) For prepayment in the 2005 calendar year,
38 twenty-six percent.
39 (3) For prepayment in the 2006 and subsequent
40 calendar years, fifty percent.
41 c. The sums prepaid by a state mutual insurance
42 association under this subsection shall be allowed as
43 credits against its premium tax liability for the
44 calendar year during which the payments are made. If
45 a prepayment made under this subsection exceeds the
46 annual premium tax liability, the excess shall be
47 allowed as a credit against subsequent prepayment or
48 tax liabilities. The commissioner of insurance may
49 suspend the certificate of authority of an association
50 that fails to make a prepayment on or before the due

Page 17

1 date.
2 Sec. . 2003 Iowa Acts, Senate File 453, section
3 30, if enacted, is amended by striking the section and
4 inserting in lieu thereof the following:
5 SEC. 30. CHARGE FOR RENT. For the fiscal year
6 beginning July 1, 2003, and ending June 30, 2004, the
7 department of administrative services, if established
8 in 2003 Iowa Acts, House File 534, shall transfer
9 $900,000 to the general fund of the state from the
10 rent fund if established under section 8A.123 in 2003
11 Iowa Acts, House File 534.
12 Sec. . 2003 Iowa Acts, Senate File 453, section
13 35, if enacted, is amended to read as follows:
14 SEC. 35. CHARTER AGENCY APPROPRIATIONS.
15 1. Notwithstanding any provision of law to the
16 contrary, the total operating appropriations
17 reductions as allowed under section 7J.1 from the
18 general fund of the state to those departments and
19 agencies designated as charter agencies and additional
20 revenue to the general fund of the state attributed to
21 the reinvention process as determined by the
22 department of management above that already committed
23 to the general fund of the state generated for the
24 fiscal year beginning July 1, 2003, and ending June
25 30, 2004, as provided by the appropriation to those
26 agencies as enacted by the Eightieth General Assembly,
27 2003 Regular Session, shall be reduced by total
28 $15,000,000. The department of management shall apply
29 the appropriation reductions, with a target of a 10
30 percent reduction for each charter agency, as
31 necessary to which along with additional generated
32 revenue shall achieve the overall reduction amount and

33 shall make this information available to the
34 legislative fiscal committee and the legislative
35 fiscal bureau. It is the intent of the general
36 assembly that appropriations to a charter agency in
37 subsequent fiscal years shall be similarly adjusted
38 from the appropriation that would otherwise have been
39 enacted.
40 2. There is appropriated from the general fund of
41 the state to the department of management for the
42 fiscal year beginning July 1, 2003, and ending June
43 30, 2004, the following amount, or so much thereof as
44 is necessary, to be used for the purposes designated:
45 For deposit in the charter agency loan grant fund
46 created in section 7J.2:
47 $ 3,000,000
48 3. For the fiscal year beginning July 1, 2003, and
49 ending June 30, 2004, if the actual amount of revenue
50 received by a charter agency exceeds the revenue

Page 18

1 amount budgeted for that charter agency by the
2 governor and the general assembly, the charter agency
3 may consider the excess amount to be repayment
4 receipts as defined in section 8.2.
5 Sec. . Notwithstanding section 8.33,
6 unencumbered and unobligated funds remaining from the
7 appropriation made in 1996 Iowa Acts, chapter 1218,
8 section 13, subsection 2, paragraph "a", subparagraph
9 (2), as amended by 1997 Iowa Acts, chapter 215,
10 section 3, and from the appropriation made in 1997
11 Iowa Acts, chapter 215, section 4, subsection 1, shall
12 not revert but shall be available for the purposes
13 designated in those provisions until the close of the
14 fiscal year beginning July 1, 2003."
15 27. Page 42, by inserting after line 10 the
16 following:
17 "Sec. . 2003 Iowa Acts, Senate File 453,
18 section 121, if enacted, is amended to read as
19 follows:
20 SEC. 121. EFFECTIVE DATE. This division of this
21 Act, creating the Iowa lottery authority, takes effect
22 September July 1, 2003."
23 28. Page 42, by inserting after line 12 the
24 following:
25 "Sec. . USE OF TEAM-BASED VARIABLE PAY MONEYS
26 FOR FY 2003-2004. Notwithstanding section 284.13,
27 subsection 1, paragraph a, of the moneys reserved for
28 purposes of team-based variable pay for the fiscal
29 year beginning July 1, 2003, and ending June 30, 2004,
30 the sum of two hundred thousand dollars shall be used
31 for purposes of the reading instruction pilot program

32 established pursuant to 2003 Iowa Acts, House File
33 549, if enacted."
34 29. Page 45, by inserting after line 9 the
35 following:
36 "Sec. . FULL-SIZE OFF-HIGHWAY VEHICLE
37 REGISTRATION PROGRAM - PLAN. The department of
38 natural resources and the state department of
39 transportation, in consultation with the Iowa
40 association of four wheel drive clubs, shall develop a
41 plan for the establishment of a registration program
42 for full-size off-highway vehicles for the purposes of
43 regulating the recreational use of full-size off-
44 highway vehicles and establishing a full-size off-
45 highway vehicle recreation area in the state. The
46 plan shall include an analysis of the number of full-
47 size off-highway vehicles expected to be registered
48 prior to the establishment of a full-size off-highway
49 vehicle recreation area and the number of
50 registrations expected after the establishment of such

Page 19

1 a facility. The plan shall also include optimum
2 locations for a full-size off-highway vehicle
3 recreation area, estimated costs, if any, for
4 maintenance of the area, and any other issues the
5 departments and the association deem to be of
6 importance in the planning process. The plan, which
7 shall include any proposed legislation for
8 implementation of the plan, shall be submitted to the
9 legislative services agency and the general assembly
10 no later than January 1, 2004.
11 Sec. . ELIMINATION OF POSITION - IOWA LAW
12 ENFORCEMENT ACADEMY DIRECTOR. The merit position of
13 director of the Iowa law enforcement academy referred
14 to in section 80B.5, Code 2003, is eliminated
15 effective April 30, 2004."
16 30. Page 46, by inserting after line 2 the
17 following:
18 "Sec. . SMALLPOX VACCINATIONS. It is the
19 intent of the general assembly that public safety
20 workers, smallpox response teams, and others who will
21 be required to be vaccinated pursuant to the federal
22 Homeland Security Act be protected from both health-
23 related and other results of the federally required
24 vaccination. The emergency management division of the
25 Iowa department of public defense and local
26 governments should work with employees in the public
27 safety areas or response teams to achieve the
28 following:
29 1. Vaccinations should be given only on a
30 voluntary basis.

31 2. Extensive screening should be employed to
32 protect those workers who would be at risk from
33 current health conditions if vaccinated.
34 3. Reprisals or discrimination for workers not
35 voluntarily receiving vaccinations should be
36 prohibited.
37 4. Public employers should protect employees from
38 loss of income or seniority as a result of side
39 effects from vaccinations. Homeland security moneys
40 received by the emergency management division of the
41 Iowa department of public defense from the federal
42 government should include a set-aside to purchase
43 supplemental insurance for public safety or response
44 employees to cover those reactions not covered by
45 traditional employer-provided health insurance.
46 5. Disability or long-term reactions from
47 vaccinations should be considered a work-related
48 injury and should be covered by local or state
49 policies governing disability.
50 6. Vaccinations should be scheduled at staggered

Page 20

1 times to allow for normal loss of staff time because
2 of vaccination-related illnesses without seriously
3 hampering public safety service.
4 7. Vaccinations administered in Iowa should meet
5 the requirements of the federal Needlestick Safety and
6 Prevention Act of 2000 that requires safety features
7 in the use of needles to administer medicine.
8 8. The emergency management division of the Iowa
9 department of public defense should coordinate efforts
10 to ensure adequate supplies of vaccinia immune
11 globulin and cidofovir and other appropriate medical
12 care and pharmaceuticals to protect those employees
13 who suffer reactions to vaccinations."
14 31. Page 46, by inserting after line 13 the
15 following:
16 " . The amendments to sections 8.23, 8.31, and
17 8.57 which are first applicable to appropriations made
18 for the fiscal year beginning July 1, 2003."
19 32. Page 46, by inserting after line 14 the
20 following:
21 " . The amendments to sections 15E.42, 15E.43,
22 15E.45, and 15E.51, which apply retroactively to
23 January 1, 2002, for tax years beginning on or after
24 that date."
25 33. Page 46, by inserting after line 21 the
26 following:
27 " . The amendments to sections 518.18 and
28 518A.35."
29 34. Page 46, by inserting after line 26 the

30 following:
31 "The sections of this division of this Act amending
32 section 80B.5 and enacting section 80B.5A are
33 applicable to the appointment of the director of the
34 Iowa law enforcement academy for the term beginning
35 May 1, 2004."
36 35. Title page, line 3, by inserting after the
37 word "appropriations," the following: "modifying the
38 investment tax credits and premiums taxes on mutual
39 insurance associations,".
40 36. By renumbering, relettering, or redesignating
41 and correcting internal references as necessary.

Winckler of Scott offered the following amendment H-1595, to
amendment H-1582, filed by her from the floor and moved its
adoption:

H-1595

1 Amend the amendment, H-1582, to House File 700 as
2 follows:
3 1. By striking page 10, line 19 through page 11,
4 line 1.
5 2. By renumbering as necessary.

Amendment H-1595 was adopted.

On motion by Dix of Butler amendment H-1582, as amended, was
adopted.

Heaton of Henry offered the following amendment H-1562 filed by
him and moved its adoption:

H-1562

1 Amend House File 700 as follows:
2 1. Page 7, by inserting after line 15 the
3 following:
4 "Sec. . Section 8.55, subsection 2, paragraph
5 d, Code 2003, is amended to read as follows:
6 d. Notwithstanding paragraph "a", any moneys in
7 excess of the maximum balance in the economic
8 emergency fund after the distribution of the surplus
9 in the general fund of the state at the conclusion of
10 each fiscal year and after the appropriate amounts
11 have been transferred pursuant to paragraphs "b" and
12 "c" shall not be transferred to the general fund of
13 the state but shall be transferred to the endowment
14 for Iowa's health account of the tobacco settlement

15 trust fund. The total amount transferred, in the
16 aggregate, under this paragraph for all fiscal years
17 shall not exceed the difference between sixty one
18 hundred one million five seven hundred fifty-one
19 thousand dollars and the amounts transferred to the
20 endowment for Iowa's health account to repay the
21 amounts transferred or appropriated from the endowment
22 for Iowa's health account in 2002 Iowa Acts, chapter
23 1165, 2002 Iowa Acts, chapter 1166, 2002 Iowa Acts,
24 chapter 1167, and 2002 Iowa Acts, Second Extraordinary
25 Session, chapter 1003, and 2003 Iowa Acts, House File
26 685."
27 2. By renumbering as necessary.

Amendment H-1562 was adopted.

Schickel of Cerro Gordo offered amendment H-1574 filed by
Schickel, et al., as follows:

H-1574

1 Amend House File 700 as follows:
2 1. Page 10, by inserting after line 25 the
3 following:
4 "Sec. . Section 427B.19A, subsection 1, as
5 amended by 2003 Iowa Acts, Senate File 453, if
6 enacted, is amended to read as follows:
7 1. The industrial machinery, equipment and
8 computers property tax replacement fund is created.
9 For the fiscal year beginning July 1, 1996, through
10 the fiscal year ending June 30, 2004, there is
11 appropriated annually from the general fund of the
12 state to the department of revenue and finance to be
13 credited to the industrial machinery, equipment and
14 computers property tax replacement fund, an amount
15 sufficient to implement this division. However, for
16 the fiscal year beginning July 1, 2003, the amount
17 appropriated to the department of revenue and finance
18 to be credited to the industrial machinery, equipment
19 and computers tax replacement fund is ten eleven
20 million two hundred eighty-one thousand six hundred
21 eight-five dollars."
22 2. Page 11, by inserting after line 32 the
23 following:
24 "Sec. . FRANCHISE TAX REVENUE ALLOCATION.
25 There is appropriated from the franchise tax revenues
26 deposited in the general fund of the state to the
27 department of revenue and finance for the fiscal year
28 beginning July 1, 2003, and ending June 30, 2004,
29 $8,800,000 to be allocated as follows:
30 1. Sixty percent to the general fund of the city

31 from which the tax is collected.
32 2. Forty percent to the county from which the tax
33 is collected.
34 If the financial institution maintains one or more
35 offices for the transaction of business, other than
36 its principal office, a portion of its franchise tax
37 shall be allocated to each office, based upon a
38 reasonable measure of the business activity of each
39 office. The director of revenue and finance shall
40 prescribe, for each type of financial institution, a
41 method of measuring the business activity of each
42 office. Financial institutions shall furnish all
43 necessary information for this purpose at the request
44 of the director. The allocation shall be distributed
45 quarterly.
46 Sec. . 2003 Iowa Acts, Senate File 453, section
47 28, if enacted, is repealed."

Wise of Lee offered the following amendment H-1599, to
amendment H-1574, filed by Wise, Bell of Jasper, Cohoon of Des
Moines, Winckler of Scott, Lykam of Scott, Ford of Polk, Osterhaus of
Jackson, Mascher of Johnson, Murphy of Dubuque and Jochum of
Dubuque and moved its adoption:

H-1599

1 Amend the amendment, H-1574, to House File 700 as
2 follows:
3 1. Page 1, by striking lines 19 and 20 and
4 inserting the following: "and computers tax
5 replacement fund is ten twenty million eighty-one
6 thousand six hundred".
7 2. Page 1, by striking lines 24 through 45.

Roll call was requested by Wise of Lee and Murphy of Dubuque.

On the question "Shall amendment H-1599 be adopted?" (H.F. 700)

The ayes were, 43:
Bell Berry Cohoon Connors
Davitt Eichhorn Fallon Foege
Ford Frevert Gaskill Greimann
Hahn Heddens Hunter Jochum
Kuhn Lensing Lykam Mascher
McCarthy Mertz Miller Murphy
Myers Oldson Olson, D. Osterhaus
Petersen Quirk Reasoner Shoultz
Smith Stevens Swaim Taylor, D.
Taylor, T. Thomas Wendt Whitaker
Whitead Winckler Wise

 


The nays were, 54:
Alons Baudler Boal Boddicker
Chambers Dandekar De Boef Dennis
Dix Dolecheck Drake Elgin
Freeman Gipp Granzow Greiner
Hansen Hanson Heaton Hoffman
Hogg Horbach Huseman Huser
Hutter Jacobs Jenkins Jones
Klemme Kramer Kurtenbach Lalk
Lukan Maddox Manternach Olson, S.
Paulsen Raecker Rants, Spkr. Rasmussen
Rayhons Roberts Sands Schickel
Struyk Tjepkes Tymeson Upmeyer
Van Engelenhoven Van Fossen, J.K. Van Fossen, J.R. Watts
Wilderdyke Carroll,
Presiding

 


Absent or not voting, 3:
Arnold Boggess Bukta

 


Amendment H-1599 lost.

Schickel of Cerro Gordo moved the adoption of amendment H-
1574.

A non-record roll call was requested.

The ayes were 46, nays 9.

Amendment H-1574 was adopted.

Murphy of Dubuque offered the following amendment H-1591 filed
by him from the floor and moved its adoption:

H-1591

1 Amend House File 700 as follows:
2 1. Page 11, by inserting after line 32 the
3 following:
4 "Sec. . HOUSING TRUST FUND APPROPRIATION -
5 INTENT. It is the intent of the general assembly that
6 an additional $800,000 be appropriated for the fiscal
7 year beginning July 1, 2004, for deposit in the

8 housing trust fund created in section 16.181, if
9 enacted by this Act."

Amendment H-1591 lost.

Murphy of Dubuque offered amendment H-1590 filed by him from
the floor as follows:

H-1590

1 Amend House File 700 as follows:
2 1. Page 12, line 10, by striking the word "There"
3 and inserting the following: "Notwithstanding section
4 8.56, subsections 3 and 4, there is appropriated from
5 the cash reserve fund to the salary adjustment fund,
6 for distribution by the department of management as
7 provided in this section, for the fiscal year
8 beginning July 1, 2003, and ending June 30, 2004, the
9 amount of $19,000,000.
10 In addition, there".
11 2. Page 12, line 17, by striking the word ", or"
12 and inserting the following: ". The amounts
13 appropriated in this section, or so much thereof".
14 3. Page 12, line 18, by inserting after the word
15 "necessary," the following: "shall be used".
16 4. Page 13, by inserting before line 14 the
17 following:
18 "Sec. . STATE COURTS - JUSTICES, JUDGES, AND
19 MAGISTRATES.
20 1. The salary rates specified in subsection 2 are
21 for the fiscal year beginning July 1, 2003, effective
22 for the pay period beginning June 20, 2003, and for
23 subsequent fiscal years until otherwise provided by
24 the general assembly. The salaries provided for in
25 this section shall be paid from funds allocated to the
26 judicial branch from the salary adjustment fund
27 pursuant to this division of this Act or if the
28 appropriation is not sufficient, from the funds
29 appropriated to the judicial branch pursuant to any
30 Act of the general assembly.
31 2. The following annual salary rates shall be paid
32 to the persons holding the judicial positions
33 indicated during the fiscal year beginning July 1,
34 2003, effective with the pay period beginning June 20,
35 2003, and for subsequent pay periods.
36 a. Chief justice of the supreme court:
37 $ 127,040
38 b. Each justice of the supreme court:
39 $ 122,500
40 c. Chief judge of the court of appeals:
41 $ 122,380

42 d. Each associate judge of the court of appeals:
43 $ 117,850
44 e. Each chief judge of a judicial district:
45 $ 116,760
46 f. Each district judge except the chief judge of a
47 judicial district:
48 $ 112,010
49 g. Each district associate judge:
50 $ 97,610

Page 2

1 h. Each associate juvenile judge:
2 $ 97,610
3 i. Each associate probate judge:
4 $ 97,610
5 j. Each judicial magistrate:
6 $ 29,100
7 k. Each senior judge:
8 $ 6,500
9 3. Persons receiving the salary rates established
10 under this section shall not receive any additional
11 salary adjustments provided by this Act.
12 Sec. . ELECTIVE EXECUTIVE OFFICIALS.
13 1. The annual salary rates specified in this
14 section are effective for the fiscal year beginning
15 July 1, 2003, with the pay period beginning June 20,
16 2003, and for subsequent fiscal years until otherwise
17 provided by the general assembly. The salaries
18 provided for in this section shall be paid from funds
19 appropriated to the department or agency specified in
20 this section from the salary adjustment fund or if the
21 appropriation is not sufficient, from the funds
22 appropriated to the department or agency pursuant to
23 any Act of the general assembly.
24 2. The following annual salary rates shall be paid
25 to the person holding the position indicated:
26 a. OFFICE OF THE GOVERNOR
27 (1) Salary for the governor:
28 $ 109,640
29 (2) Salary for the lieutenant governor:
30 $ 78,250
31 b. DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP
32 Salary for the secretary of agriculture:
33 $ 114,000
34 c. DEPARTMENT OF JUSTICE
35 Salary for the attorney general:
36 $ 114,000
37 d. OFFICE OF THE AUDITOR OF STATE
38 Salary for the auditor of state:
39 . $ 114,000
40 e. OFFICE OF THE SECRETARY OF STATE

41 Salary for the secretary of state:
42 $ 114,000
43 f. OFFICE OF THE TREASURER OF STATE
44 Salary for the treasurer of state:
45 $ 114,000
46 Sec. . APPOINTED STATE OFFICERS.
47 1. a. The governor shall establish a salary for
48 appointed nonelected persons in the executive branch
49 of state government holding a position enumerated in
50 this section within the range provided, by

Page 3

1 considering, among other items, the experience of the
2 individual in the position, changes in the duties of
3 the position, the incumbent's performance of assigned
4 duties, and subordinates' salaries. However, the
5 attorney general shall establish the salary for the
6 consumer advocate, the secretary of state shall
7 establish the salary for the administrator of the
8 division of professional licensing and regulation, the
9 chief justice of the supreme court shall establish the
10 salary for the state court administrator, the ethics
11 and campaign disclosure board shall establish the
12 salary of the executive director, and the state fair
13 board shall establish the salary of the secretary of
14 the state fair board, each within the salary range
15 provided in this section.
16 b. The governor, in establishing salaries as
17 provided in this section, shall take into
18 consideration other employee benefits which may be
19 provided for an individual including, but not limited
20 to, housing.
21 c. A person whose salary is established pursuant
22 to this section and who is a full-time, year-round
23 employee of the state shall not receive any other
24 remuneration from the state or from any other source
25 for the performance of that person's duties unless the
26 additional remuneration is first approved by the
27 governor or authorized by law. However, this
28 provision does not exclude the reimbursement for
29 necessary travel and expenses incurred in the
30 performance of duties or fringe benefits normally
31 provided to employees of the state.
32 2. The annual salary ranges specified in this
33 section are effective for the positions specified in
34 this section for the fiscal year beginning July 1,
35 2003, and for subsequent fiscal years until otherwise
36 provided by the general assembly. The governor or
37 other person designated in subsection 1 shall
38 determine the salary to be paid to the person
39 indicated at a rate within the salary ranges indicated

40 from funds appropriated by the general assembly for
41 that purpose.
42 3. The following are salary ranges 1 through 5 for
43 the fiscal year beginning July 1, 2003, effective with
44 the pay period beginning June 20, 2003:
45 SALARY RANGES Minimum Maximum
46 a. Range 1 .......................………….. $ 8,800 $ 30,460
47 b. Range 2 ..........……….….............. $ 32,200 $ 61,470
48 c. Range 3 .........................…………. $ 44,100 $ 71,670
49 d. Range 4 ............…………............. $ 53,100 $ 81,940
50 e. Range 5 ........................…………. $ 62,400 $ 92,250

Page 4

1 4. The following are range 1 positions: There are
2 no range 1 positions for the fiscal year beginning
3 July 1, 2003.
4 5. The following are range 2 positions:
5 administrator of the arts division of the department
6 of cultural affairs, administrators of the division of
7 persons with disabilities, the division on the status
8 of women, the division on the status of African-
9 Americans, the division of deaf services, and the
10 division of Latino affairs of the department of human
11 rights, and administrator of the division of
12 professional licensing and regulation of the office of
13 secretary of state.
14 6. The following are range 3 positions:
15 administrator of the division of criminal and juvenile
16 justice planning of the department of human rights,
17 administrator of the division of community action
18 agencies of the department of human rights, executive
19 director of the commission of veterans affairs, and
20 chairperson and members of the employment appeal board
21 of the department of inspections and appeals.
22 7. The following are range 4 positions:
23 superintendent of credit unions, and chairperson, vice
24 chairperson, and members of the board of parole.
25 8. The following are range 5 positions: state
26 public defender, drug policy coordinator, labor
27 commissioner, workers' compensation commissioner,
28 administrator of the alcohol beverages division of the
29 department of commerce, and administrator of the
30 historical division of the department of cultural
31 affairs.
32 9. The following are salary ranges 6 through 9 for
33 the fiscal year beginning July 1, 2003, effective with
34 the pay period beginning June 20, 2003:
35 SALARY RANGES Minimum Maximum
36 a. Range 6 ............…………............ $ 48,200 $ 81,940
37 b. Range 7 ........................………… $ 66,000 $ 92,980
38 c. Range 8 .................…………....... $ 70,800 $107,890

39 d. Range 9 ......................………….. $ 79,000 $128,710
40 10. The following are range 6 positions: director
41 of the department of human rights, director of the
42 Iowa state civil rights commission, executive director
43 of the college student aid commission, director of the
44 department for the blind, and executive director of
45 the ethics and campaign disclosure board.
46 11. The following are range 7 positions: director
47 of the department of cultural affairs, director of the
48 department of elder affairs, and director of the law
49 enforcement academy.
50 12. The following are range 8 positions: the

Page 5

1 administrator of the state racing and gaming
2 commission of the department of inspections and
3 appeals, director of the department of inspections and
4 appeals, superintendent of banking, administrator of
5 the division of emergency management of the department
6 of public defense, commandant of the veterans home,
7 director of the department of general services,
8 director of the department of personnel, administrator
9 of the public broadcasting division of the department
10 of education, commissioner of insurance, executive
11 director of the Iowa finance authority, consumer
12 advocate, director of the department of natural
13 resources, and chairperson of the utilities board.
14 The other members of the utilities board shall receive
15 an annual salary within a range of not less than 90
16 percent but not more than 95 percent of the annual
17 salary of the chairperson of the utilities board.
18 13. The following are range 9 positions: director
19 of the department of administrative services, if
20 established, director of the department of education,
21 director of the department of corrections, director of
22 human services, director of the Iowa department of
23 economic development, director of the information
24 technology department, executive director of the Iowa
25 telecommunications and technology commission, chief
26 executive officer of the Iowa public employees'
27 retirement system, commissioner of public safety,
28 executive director of the state board of regents,
29 director of the state department of transportation,
30 director of the department of workforce development,
31 director of revenue and finance, lottery commissioner,
32 director of public health, the state court
33 administrator, secretary of the state fair board, and
34 the director of the department of management.
35 Sec. . PUBLIC EMPLOYMENT RELATIONS BOARD.
36 1. The salary rates specified in this section are
37 effective for the fiscal year beginning July 1, 2003,

38 with the pay period beginning June 20, 2003, and for
39 subsequent fiscal years until otherwise provided by
40 the general assembly. The salaries provided for in
41 this section shall be paid from funds appropriated to
42 the public employment relations board from the salary
43 adjustment fund, or if the appropriation is not
44 sufficient from funds appropriated to the public
45 employment relations board pursuant to any other Act
46 of the general assembly.
47 2. The following annual salary rates shall be paid
48 to the persons holding the positions indicated:
49 a. Chairperson of the public employment relations
50 board:

Page 6

1 $ 77,840
2 b. Two members of the public employment relations
3 board:
4 $ 72,510"
5 5. By renumbering as necessary.

Murphy of Dubuque offered the following amendment H-1598, to
amendment H-1590, filed by him from the floor and moved its
adoption:

H-1598

1 Amend the amendment, H-1590, to House File 700 as
2 follows:
3 1. Page 1, line 9, by striking the figure
4 "19,000,000" and inserting the following:
5 "16,000,000".

Amendment H-1598 was adopted.

On motion by Murphy of Dubuque amendment H-1590, as
amended, lost.

Horbach of Tama offered the following amendment H-1572 filed by
him and Heaton of Henry and moved its adoption:

H-1572

1 Amend House File 700 as follows:
2 1. Page 12, line 17, by striking the figure
3 "25,000,000" and inserting the following:
4 "28,000,000".
5 2. Page 13, by inserting after line 13 the
6 following:

7 "Of the amount appropriated in this section,
8 $2,668,000 shall be allocated to the judicial branch
9 for the purpose of providing increases in salaries for
10 judicial branch employees."

Amendment H-1572 was adopted.

Dix of Butler offered amendment H-1575 filed by him as follows:

H-1575

1 Amend House File 700 as follows:
2 1. Page 18, by inserting after line 9 the
3 following:
4 "Sec. . 2003 Iowa Acts, House File 289, section
5 1, is amended by striking the section and inserting in
6 lieu thereof the following:
7 SECTION 1. Section 12C.1, subsection 2, paragraph
8 e, Code 2003, as amended by 2003 Iowa Acts, Senate
9 File 395, is amended by adding the following new
10 subparagraph:
11 NEW SUBPARAGRAPH. (6) Moneys placed in a
12 depository for the purpose of completing an electronic
13 financial transaction pursuant to section 8A.222 or
14 331.427."
15 2. Page 19, by inserting after line 8 the
16 following:
17 "Sec. . Section 99G.10, subsection 2, if
18 enacted by 2003 Iowa Acts, Senate File 453, section
19 72, is amended to read as follows:
20 2. Subject to the approval of the board, the chief
21 executive officer shall have the sole power to
22 designate particular employees as key personnel, but
23 may take advice from the department of personnel in
24 making any such designations. All key personnel shall
25 be exempt from the merit system described in chapter
26 19A 8A, article 4. The chief executive officer and
27 the board shall have the sole power to employ,
28 classify, and fix the compensation of key personnel.
29 All other employees shall be employed, classified, and
30 compensated in accordance with chapters 19A chapter
31 8A, article 4, and chapter 20.
32 Sec. . Section 99G.22, subsection 1, if enacted
33 by 2003 Iowa Acts, Senate File 453, is amended to read
34 as follows:
35 1. The authority shall investigate the financial
36 responsibility, security, and integrity of any lottery
37 system vendor who is a finalist in submitting a bid,
38 proposal, or offer as part of a major procurement
39 contract. Before a major procurement contract is
40 awarded, the division of criminal investigation of the

41 department of public safety shall conduct a background
42 investigation of the vendor to whom the contract is to
43 be awarded. The chief executive officer and board
44 shall consult with the division of criminal
45 investigation and shall provide for the scope of the
46 background investigation and due diligence to be
47 conducted in connection with major procurement
48 contracts. At the time of submitting a bid, proposal,
49 or offer to the authority on a major procurement
50 contract, the authority shall require that each vendor

Page 2

1 submit to the division of criminal investigation
2 appropriate investigation authorization to facilitate
3 this investigation, together with an advance of funds
4 to meet the anticipated investigation costs. If the
5 division of criminal investigation determines that
6 additional funds are required to complete an
7 investigation, the vendor will be so advised. The
8 background investigation by the division of criminal
9 investigation may include a national criminal history
10 record check through the federal bureau of
11 investigation. The screening of vendors or their
12 employees through the federal bureau of investigation
13 shall be conducted by submission of fingerprints
14 through the state criminal history record repository
15 to the federal bureau of investigation.
16 Sec. . Section 99G.37, subsection 2, if enacted
17 by 2003 Iowa Acts, Senate File 453, section 90, is
18 amended to read as follows:
19 2. In any bidding process, the authority may
20 administer its own bidding and procurement or may
21 utilize the services of the department of general
22 administrative services, or its successor, or other
23 state agency.
24 Sec. . Section 99G.38, subsection 3, if enacted
25 by 2003 Iowa Acts, Senate File 453, section 91, is
26 amended to read as follows:
27 3. The state of Iowa offset program, as provided
28 in section 421.17 8A.504, shall be available to the
29 authority to facilitate receipt of funds owed to the
30 authority."
31 3. Page 19, by inserting after line 34 the
32 following:
33 "Sec. . Section 231.56A, if enacted by 2003
34 Iowa Acts, Senate File 4165, section 1, is amended to
35 read as follows:
36 231.56A ELDER ABUSE INITIATIVE, EMERGENCY SHELTER,
37 AND SUPPORT SERVICES PROJECTS.
38 1. Through the state's service contract process
39 adopted pursuant to section 8.47, the department shall

40 identify area agencies on aging that have demonstrated
41 the ability to provide a collaborative response to the
42 immediate needs of elders in the area agency on aging
43 service area for the purpose of implementing elder
44 abuse initiative, emergency shelter, and support
45 services projects. The projects shall be implemented
46 only in the counties within an area agency on aging
47 service area that have a multidisciplinary team
48 established pursuant to section 235B.1.
49 2. The target population of the projects shall be
50 any elder residing in the service area of an area

Page 3

1 agency on aging who meets both of the following
2 conditions:
3 a. Is the subject of a report of suspected
4 dependent adult abuse pursuant to chapter 235B.
5 b. Is not receiving assistance under a county
6 management plan approved pursuant to section 331.439.
7 3. The area agencies on aging implementing the
8 projects shall identify allowable emergency shelter
9 and support services, state funding, outcomes,
10 reporting requirements, and approved community
11 resources from which services may be obtained under
12 the projects. The area agency on aging shall identify
13 at least one provider of case management services for
14 the project area.
15 4. The area agencies on aging shall implement the
16 projects and shall coordinate the provider network
17 through the use of referrals or other engagement of
18 community resources to provide services to elders.
19 5. The department shall award funds to the area
20 agencies on aging in accordance with the state's
21 service contract process. Receipt and expenditures of
22 moneys under the projects are subject to examination,
23 including audit, by the department.
24 6. This section shall not be construed and is not
25 intended as, and shall not imply, a grant of
26 entitlement for services to individuals who are not
27 otherwise eligible for the services or for utilization
28 of services that do not currently exist or are not
29 otherwise available."
30 4. Page 20, by inserting after line 26 the
31 following:
32 "Sec. . Section 321.69, subsection 9, as
33 amended by 2003 Acts, House File 502, section 3, is
34 amended to read as follows:
35 9. This Except for subsection 9A, this section
36 does not apply to motor trucks and truck tractors with
37 a gross vehicle weight rating of sixteen thousand
38 pounds or more, vehicles more than nine model years

39 old, motorcycles, motorized bicycles, and special
40 mobile equipment. This section does apply to motor
41 homes. The requirement in subsection 1 that the new
42 certificate of title and registration receipt shall
43 state on the face of the title the total cumulative
44 dollar amount of damage does not apply to a vehicle
45 with a certificate of title bearing a designation that
46 the vehicle was previously titled on a salvage
47 certificate of title pursuant to section 321.52,
48 subsection 4, paragraph "b", or to a vehicle with a
49 certificate of title bearing a "REBUILT" or "SALVAGE"
50 designation pursuant to section 321.24, subsection 4

Page 4

1 or 5. This Except for subsection 9A, this section
2 does not apply to new motor vehicles with a true
3 mileage, as defined in section 321.71, of one thousand
4 miles or less, unless such vehicle has incurred damage
5 as defined in subsection 2."
6 5. Page 22, by inserting after line 31 the
7 following:
8 "Sec. . 2003 Iowa Acts, Senate File 453,
9 section 44, subsection 8, if enacted, is amended to
10 read as follows:
11 8. STATUTORY REQUIREMENTS. The requirements of
12 sections 18.6 8A.311 and 72.3 and the administrative
13 rules implementing section 8.47 are not applicable to
14 the services procurement process used to implement the
15 outcomes-based service system redesign in accordance
16 with this section. The department of human services
17 may enter into competitive negotiations and proposal
18 modifications with each successful contractor as
19 necessary to implement the provisions of this
20 section."
21 6. Page 23, by inserting after line 22 the
22 following:
23 " . The sections of this division of this Act
24 amending sections 12C.1, 99G.10, 99G.37, and 99G.38
25 take effect only if House File 534 is enacted by the
26 Eightieth General Assembly, 2003 Regular Session."
27 7. Title page, line 3, by inserting after the
28 word "appropriations," the following: "modifying
29 sales and use taxes,".
30 8. By renumbering as necessary.

Dix of Butler offered the following amendment H-1583, to
amendment H-1575, filed by him from the floor and moved its
adoption:

H-1583

1 Amend the amendment, H-1575, to House File 700 as
2 follows:
3 1. Page 1, by inserting after line 1 the
4 following:
5 " . Page 8, line 33, by striking the words "one
6 hundred"."
7 2. By renumbering as necessary.

Amendment H-1583 was adopted.

On motion by Dix of Butler amendment H-1575, as amended, was
adopted.

Heaton of Henry offered the following amendment H-1593 filed by
him from the floor and moved its adoption:

H-1593

1 Amend House File 700 as follows:
2 1. Page 24, by inserting after line 30 the
3 following:
4 "Sec. . NEW SECTION. 12F.1 IOWA ECONOMIC
5 STIMULUS FUND - CREATED.
6 1. a. The Iowa economic stimulus fund is created
7 in the state treasury under the control of the
8 treasurer of state. Moneys received from the federal
9 government or other sources for the purposes of
10 economic stimulus or temporary fiscal assistance for
11 state and local governments shall be deposited in the
12 fund.
13 b. If any moneys received from the federal
14 government for the purpose of economic stimulus are
15 designated for the medical assistance program, the
16 funds shall be used to supplant nongeneral fund
17 appropriations to the medical assistance program.
18 2. Moneys deposited in the fund shall be used only
19 as provided in appropriations from the fund for the
20 purposes specified in the appropriation.
21 3. The fund shall be separate from the general
22 fund of the state. The moneys in the fund are not
23 subject to section 8.33 and shall not be transferred,
24 used, obligated, appropriated, or otherwise
25 encumbered, except to provide for the purpose of this
26 section. Notwithstanding section 12C.7, subsection 2,
27 interest or earnings on moneys deposited in the fund
28 shall be credited to the fund."
29 2. By renumbering as necessary.


Amendment H-1593 was adopted.

Huser of Polk offered the following amendment H-1596 filed by her
from the floor and moved its adoption:

H-1596

1 Amend House File 700 as follows:
2 1. Page 25, line 6, by inserting after the word
3 "any" the following: "current or future".

Amendment H-1596 was adopted.

T. Taylor of Linn offered the following amendment H-1602 filed by
him from the floor and moved its adoption:

H-1602

1 Amend House File 700 as follows:
2 1. Page 30, by inserting after line 27 the
3 following:
4 "Sec. . Section 96.7, subsection 12, paragraph
5 a, Code 2003, is amended to read as follows:
6 a. An employer other than a governmental entity or
7 a nonprofit organization, subject to this chapter,
8 shall pay an administrative contribution surcharge
9 equal in amount to one-tenth of one percent of federal
10 taxable wages, as defined in section 96.19, subsection
11 37, paragraph "b", subject to the surcharge formula to
12 be developed by the department under this paragraph.
13 The department shall develop a surcharge formula that
14 provides a target revenue level of no greater than six
15 million five hundred twenty-five thousand dollars
16 annually for calendar years 2003, 2004, and 2005 and a
17 target revenue level of no greater than three million
18 two hundred sixty-two thousand five hundred dollars
19 for calendar year 2006 and each subsequent calendar
20 year. The department shall reduce the administrative
21 contribution surcharge established for any calendar
22 year proportionate to any federal government funding
23 that provides an increased allocation of moneys for
24 workforce development offices, under the federal
25 employment services financing reform legislation. Any
26 administrative contribution surcharge revenue that is
27 collected in calendar year 2002 2003, 2004, or 2005 in
28 excess of six million five hundred twenty-five
29 thousand dollars or in calendar year 2006 or a
30 subsequent calendar year in excess of three million
31 two hundred sixty-two thousand five hundred dollars

32 shall be deducted from the amount to be collected in
33 the subsequent calendar year 2003 before the
34 department establishes the administrative contribution
35 surcharge. The department shall recompute the amount
36 as a percentage of taxable wages, as defined in
37 section 96.19, subsection 37, and shall add the
38 percentage surcharge to the employer's contribution
39 rate determined under this section. The percentage
40 surcharge shall be capped at a maximum of seven
41 dollars per employee. The department shall adopt
42 rules prescribing the manner in which the surcharge
43 will be collected. Interest shall accrue on all
44 unpaid surcharges under this subsection at the same
45 rate as on regular contributions and shall be
46 collectible in the same manner. Interest accrued and
47 collected under this paragraph and interest earned and
48 credited to the fund under paragraph "b" shall be used
49 by the department only for the purposes set forth in
50 paragraph "c".

Page 2

1 Sec. . Section 96.7, subsection 12, paragraph
2 d, Code 2003, is amended to read as follows:
3 d. This subsection is repealed July 1, 2003 2006,
4 and the repeal is applicable to contribution rates for
5 calendar year 2004 2007 and subsequent calendar
6 years."
7 2. Page 46, by inserting after line 15 the
8 following:
9 " . The amendment to section 96.7."

Roberts of Carroll in the chair at 2:28 p.m.

Amendment H-1602 lost.

Winckler of Scott offered the following amendment H-1604 filed by
her from the floor and moved its adoption:

H-1604

1 Amend House File 700 as follows:
2 1. Page 31, by inserting after line 17, the
3 following:
4 "Sec. . Section 256.7, subsection 7, unnumbered
5 paragraph 5, Code 2003, is amended to read as follows:
6 For the purpose of the rules adopted by the state
7 board, telecommunications means narrowcast
8 communications through systems that are directed
9 toward a narrowly defined audience, and includes

10 interactive live communications, and includes internet
11 web-based applications.
12 Sec. . Section 256.9, subsection 50, Code 2003,
13 is amended to read as follows:
14 50. Develop core knowledge and skill criteria
15 models, based upon the Iowa teaching standards, for
16 the evaluation, the advancement, and for teacher
17 career development purposes pursuant to chapter 284.
18 The model criteria shall further define the
19 characteristics of quality teaching as established by
20 the Iowa teaching standards. The director, in
21 consultation with the board of educational examiners,
22 shall also develop a transition plan for
23 implementation of the career development standards
24 developed pursuant to section 256.7, subsection 25,
25 with regard to licensure renewal requirements. The
26 plan shall include a requirement that practitioners be
27 allowed credit for career development completed prior
28 to implementation of the career development standards
29 developed pursuant to section 256.7, subsection 25.
30 Sec. 101. Section 256D.9, Code 2003, is amended to
31 read as follows:
32 256D.9 FUTURE REPEAL.
33 This chapter is repealed effective July 1, 2003
34 2004."
35 2. By striking page 33, line 25 through page 34,
36 line 4 and inserting the following:
37 "Sec. . Section 284.2, subsections 1 and 3,
38 Code 2003, are amended to read as follows:
39 1. "Beginning teacher" means an individual serving
40 under an initial provisional license, issued by the
41 board of educational examiners under chapter 272, who
42 is assuming a position as a classroom teacher. For
43 purposes of the beginning teacher mentoring and
44 induction program created pursuant to section 284.5,
45 "beginning teacher" also includes preschool teachers
46 who are licensed by the board of educational examiners
47 under chapter 272 and are employed by a school
48 district or area education agency.
49 3. "Comprehensive evaluation" means a summative
50 evaluation of a beginning teacher conducted by an

Page 2

1 evaluator for purposes of determining a beginning
2 teacher's level of competency, relative to the Iowa
3 teaching standards and for recommendation for
4 licensure based upon models developed pursuant to
5 section 256.9, subsection 50 the Iowa teaching
6 standards, and to determine whether the teacher's
7 practice meets the school district expectations for a
8 career teacher.

9 Sec. . Section 284.3, subsection 2, paragraphs
10 a and b, Code 2003, are amended to read as follows:
11 a. By July 1, 2002, for For purposes of
12 comprehensive evaluations for beginning teachers
13 required to allow beginning teachers to progress to
14 career teachers, standards and criteria that are the
15 Iowa teaching standards specified in subsection 1 and
16 the model criteria for the Iowa teaching standards
17 developed by the department in accordance with section
18 256.9, subsection 50. These standards and criteria
19 shall be set forth in an instrument provided by the
20 department. The comprehensive evaluation and
21 instrument are not subject to negotiations or
22 grievance procedures pursuant to chapter 20 or
23 determinations made by the board of directors under
24 section 279.14. A local school board and its
25 certified bargaining representative may negotiate,
26 pursuant to chapter 20, evaluation and grievance
27 procedures for beginning teachers that are not in
28 conflict with this chapter. If, in accordance with
29 section 279.19, a beginning teacher appeals the
30 determination of a school board to an adjudicator
31 under section 279.17, the adjudicator selected shall
32 have successfully completed training related to the
33 Iowa teacher standards, the model criteria adopted by
34 the state board of education in accordance with
35 subsection 3, as enacted by this Act, and any
36 additional training required under rules adopted by
37 the public employment relations board in cooperation
38 with the state board of education.
39 b. By July 1, 2004 2005, for purposes of
40 performance reviews for teachers other than beginning
41 teachers, evaluations that contain, at a minimum, the
42 Iowa teaching standards specified in subsection 1, as
43 well as the model criteria for the Iowa teaching
44 standards developed by the department in accordance
45 with section 256.9, subsection 50. A local school
46 board and its certified bargaining representative may
47 negotiate, pursuant to chapter 20, additional teaching
48 standards and criteria. A local school board and its
49 certified bargaining representative may negotiate,
50 pursuant to chapter 20, evaluation and grievance

Page 3

1 procedures for teachers other than beginning teachers
2 that are not in conflict with this chapter.
3 Sec. . Section 284.3, subsection 3, Code 2003,
4 is amended to read as follows:
5 3. The state board shall adopt by rule pursuant to
6 chapter 17A the model criteria developed by the
7 department in accordance with section 256.9,

8 subsection 50.
9 Sec. . Section 284.4, subsection 1, paragraphs
10 c and d, Code 2003, are amended to read as follows:
11 c. Provide, beginning in the fourth fifth year of
12 participation, the equivalent of two additional
13 contract days, outside of instruction time, than were
14 provided in the school year preceding the first year
15 of participation, to provide additional time for
16 teacher career development that aligns with student
17 learning and teacher development needs, including the
18 integration of technology into curriculum development,
19 in order to achieve attendance center and district-
20 wide student achievement goals outlined in the
21 district comprehensive school improvement plan.
22 School districts are encouraged to develop strategies
23 for restructuring the school calendar to provide for
24 the most effective professional development, evaluate
25 their current career development alignment with their
26 student achievement goals and research-based
27 instructional strategies, and implement district
28 career development plans. A school district that
29 provides the equivalent of ten or more contract days
30 for career development is exempt from this paragraph.
31 d. Adopt a district and teacher career development
32 program plans in accordance with this chapter.
33 Sec. . Section 284.5, subsection 6, Code 2003,
34 is amended to read as follows:
35 6. Upon completion of the program, the beginning
36 teacher shall be comprehensively evaluated to
37 determine if the teacher meets expectations to move to
38 the career level. The school district or area
39 education agency that employs the beginning teacher
40 shall recommend for an educational a standard license
41 a beginning teacher who is determined through a
42 comprehensive evaluation to demonstrate competence in
43 the Iowa teaching standards. A school district or
44 area education agency may offer a beginning teacher a
45 third year of participation in the program if, after
46 conducting a comprehensive evaluation, the school
47 district determines that the teacher is likely to
48 successfully complete the mentoring and induction
49 program by the end of the third year of eligibility.
50 A teacher granted a third year of eligibility shall

Page 4

1 develop a teacher's mentoring and induction program
2 plan in accordance with this chapter and shall undergo
3 a comprehensive evaluation at the end of the third
4 year. The board of educational examiners shall grant
5 a one-year extension of the beginning teacher's
6 provisional initial license upon notification by the

7 school district that the teacher will participate in a
8 third year of the school district's program.
9 Sec. . Section 284.6, subsection 5, Code 2003,
10 is amended to read as follows:
11 5. The teacher's evaluator shall annually meet
12 with the teacher to review progress in meeting the
13 goals in the teacher's individual plan. The teacher
14 shall present to the evaluator evidence of progress.
15 The purpose of the meeting shall be to review the
16 teacher's progress in meeting career development goals
17 in the plan and to review collaborative work with
18 other staff on student achievement goals and to modify
19 as necessary the teacher's individual plan to reflect
20 the individual teacher's and the school district's
21 needs and the individual's progress in meeting the
22 goals in the plan. The teacher's supervisor evaluator
23 shall review, modify, or accept modifications made to
24 the teacher's individual plan.
25 Sec. . Section 284.7, subsection 1, paragraph
26 a, subparagraph (1), subparagraph subdivision (b),
27 Code 2003, is amended to read as follows:
28 (b) Holds a provisional an initial teacher license
29 issued by the board of educational examiners.
30 Sec. . Section 284.7, subsection 2, paragraph
31 a, subparagraph (1), Code 2003, is amended to read as
32 follows:
33 (1) A career II teacher is a teacher who meets the
34 requirements of subsection 1, paragraph "b", has met
35 the requirements established by the school district
36 that employs the teacher, and is evaluated by the
37 school district as demonstrating the competencies of a
38 career II teacher. The teacher shall have
39 successfully completed a comprehensive evaluation
40 performance review in order to be classified as a
41 career II teacher.
42 Sec. . Section 284.7, subsection 4, Code 2003,
43 is amended to read as follows:
44 4. If a comprehensive evaluation performance
45 review for a teacher is conducted in the fifth year of
46 the teacher's status at the career level, and
47 indicates that the teacher's practice no longer meets
48 the standards for that level, a comprehensive
49 evaluation performance review shall be conducted in
50 the next following school year. If the comprehensive

Page 5

1 evaluation performance review establishes that the
2 teacher's practice fails to meet the standards for
3 that level, the teacher shall be ineligible for any

4 additional pay increase other than a cost-of-living
5 increase.
6 Sec. . Section 284.7, subsection 6, paragraph
7 a, Code 2003, is amended to read as follows:
8 a. For the school year beginning July 1, 2002, and
9 ending June 30, 2003, if If the licensed employees of
10 a school district or area education agency receiving
11 funds pursuant to section 284.13, subsection 1,
12 paragraph "g" or "h", for purposes of this section,
13 are organized under chapter 20 for collective
14 bargaining purposes, the board of directors and the
15 certified bargaining representative for the licensed
16 employees shall mutually agree upon a formula for
17 distributing the funds among the teachers employed by
18 the school district or area education agency.
19 However, the school district must comply with the
20 salary minimums provided for in this section. The
21 parties shall follow the negotiation and bargaining
22 procedures specified in chapter 20 except that if the
23 parties reach an impasse, neither impasse procedures
24 agreed to by the parties nor sections 20.20 through
25 20.22 shall apply and the funds shall be paid as
26 provided in paragraph "b". Negotiations under this
27 section are subject to the scope of negotiations
28 specified in section 20.9. If a board of directors
29 and the certified bargaining representative for
30 licensed employees have not reached mutual agreement
31 by July 15, 2002, for the distribution of funds
32 received pursuant to section 284.13, subsection 1,
33 paragraph "g" or "h", by July 15 of the fiscal year
34 for which the funds are distributed, paragraph "b" of
35 this subsection shall apply.
36 Sec. . Section 284.8, subsection 2, Code 2003,
37 is amended to read as follows:
38 2. If a supervisor or an evaluator determines, at
39 any time, as a result of a teacher's performance that
40 the teacher is not meeting district expectations under
41 the Iowa teaching standards specified in section
42 284.3, subsection 1, paragraphs "a" through "g", the
43 model criteria for the Iowa teaching standards
44 developed by the department in accordance with section
45 256.9, subsection 50, or and any other standards or
46 criteria established in the collective bargaining
47 agreement, the evaluator shall, at the direction of
48 the teacher's supervisor, recommend to the district
49 that the teacher participate in an intensive
50 assistance program. The intensive assistance program
Page 6

1 and its implementation are not subject to negotiation
2 or grievance procedures established pursuant to
3 chapter 20. By July 1, 2004 2005, all school

4 districts must be prepared to offer an intensive
5 assistance program.
6 Sec. . Section 284.9, subsection 3, Code 2003,
7 is amended to read as follows:
8 3. To assure fairness and consistency in the
9 evaluation process, the review panels may perform
10 random audits of the comprehensive evaluations and
11 performance reviews conducted by evaluators throughout
12 the state, and may randomly review performance-based
13 evaluation models how the evaluators are evaluating
14 teachers based upon the Iowa teaching standards
15 developed by school districts in accordance with
16 section 284.3, subsection 2. The review of the
17 evaluation models shall ensure that the model is at
18 least equivalent to the state models developed
19 pursuant to section 256.9, subsection 50.
20 Sec. . Section 284.10, subsections 4 and 5,
21 Code 2003, are amended to read as follows:
22 4. By July 1, 2003, a A higher education
23 institution approved by the state board to provide an
24 administrator preparation program shall incorporate
25 the evaluator training program into the program
26 offered by the institution.
27 5. Beginning July 1, 2003, the The board of
28 educational examiners shall require certification as a
29 condition of issuing or renewing an administrator's
30 license.
31 Sec. . Section 284.13, subsection 1, paragraph
32 a, Code 2003, is amended by striking the paragraph."
33 3. Page 42, line 11, by striking the word and
34 figure "and 266.26" and inserting the following:
35 "266.26, and 284.11".
36 4. Page 45, by inserting after line 9, the
37 following:
38 "Sec. . MINIMUM TEACHER SALARY REQUIREMENTS -
39 FY 2003-2004.
40 1. Notwithstanding section 284.7, subsection 1,
41 paragraph "a", subparagraph (2), the minimum teacher
42 salary paid by a school district or area education
43 agency for purposes of teacher compensation in
44 accordance with chapter 284, for the fiscal year
45 beginning July 1, 2003, and ending June 30, 2004,
46 shall be the minimum salary amount the school district
47 or area education agency paid to a first-year
48 beginning teacher or, the minimum salary amount the
49 school district or area education agency would have
50 paid a first-year beginning teacher if the school
Page 7

1 district or area education agency had participated in
2 the program in the 2001-2002 school year, in
3 accordance with section 284.7, subsection 1, Code

4 Supplement 2001. If the school district or area
5 education agency did not employ a first-year beginning
6 teacher in the 2001-2002 school year, the minimum
7 salary is the amount that the district would have paid
8 a first-year beginning teacher under chapter 284 in
9 the 2001-2002 school year.
10 2. Notwithstanding section 284.7, subsection 1,
11 paragraph "b", subparagraph (2), the minimum career
12 teacher salary paid to a career teacher who was a
13 beginning teacher in the 2001-2002 school year, by a
14 school district or area education agency participating
15 in the student achievement and teacher quality
16 program, for the school year beginning July 1, 2003,
17 and ending June 30, 2004, shall be, unless the school
18 district has a minimum career teacher salary that
19 exceeds thirty thousand dollars, one thousand dollars
20 greater than the minimum salary amount the school
21 district or area education agency paid to a first-year
22 beginning teacher if the school district or area
23 education agency participated in the program during
24 the 2001-2002 school year, or the minimum salary
25 amount the school district or area education agency
26 would have paid a first-year beginning teacher if the
27 school district or area education agency had
28 participated in the program in the 2001-2002 school
29 year, in accordance with section 284.7, subsection 1,
30 Code Supplement 2001.
31 3. Notwithstanding section 284.7, subsection 1,
32 paragraph "b", subparagraph (2), and except as
33 provided in subsection 2, the minimum career teacher
34 salary paid by a school district or area education
35 agency participating in the student achievement and
36 teacher quality program, for purposes of teacher
37 compensation in accordance with chapter 284, for the
38 school year beginning July 1, 2003, and ending June
39 30, 2004, shall be the minimum salary amount the
40 school district or area education agency paid to a
41 career teacher if the school district or area
42 education agency participated in the program during
43 the 2001-2002 school year, or, the minimum salary
44 amount the school district or area education agency
45 would have paid a career teacher if the school
46 district or area education agency had participated in
47 the program in the 2001-2002 school year, in
48 accordance with section 284.7, subsection 1, Code
49 Supplement 2001."
50 5. Page 46, by inserting after line 30 the
Page 8

1 following:
2 "__. Section 101 of this division of this Act,
3 relating to the repeal of chapter 256D, being deemed

4 of immediate importance, takes effect upon enactment."
5 6. By renumbering, redesignating, and correcting
6 internal references as necessary.

Amendment H-1604 lost.

Winckler of Scott offered the following amendment H-1566 filed by
Winckler, et al., and moved its adoption:

H-1566

1 Amend House File 700 as follows:
2 1. By striking page 33, line 25 through page 34,
3 line 4.

Amendment H-1566 lost.

Connors of Polk offered the following amendment H-1597 filed by
him and Fallon of Polk from the floor and moved its adoption:

H-1597

1 Amend House File 700 as follows:
2 1. Page 34, by inserting after line 28, the
3 following:
4 "Sec. . Section 321.109, subsection 1,
5 unnumbered paragraph 1, Code 2003, is amended to read
6 as follows:
7 The annual fee for all motor vehicles, including
8 vehicles designated by manufacturers as station
9 wagons, and 1993 and subsequent model years for
10 multipurpose vehicles, except motor trucks, motor
11 homes, ambulances, hearses, motorcycles, and motor
12 bicycles, and 1992 and older model years for
13 multipurpose vehicles, shall be equal to one percent
14 of the value as fixed by the department plus forty
15 cents for each one hundred pounds or fraction thereof
16 of weight of vehicle, as fixed by the department. The
17 weight of a motor vehicle, fixed by the department for
18 registration purposes, shall include the weight of a
19 battery, heater, bumpers, spare tire, and wheel.
20 Provided, however, that for any new vehicle purchased
21 in this state by a nonresident for removal to the
22 nonresident's state of residence the purchaser may
23 make application to the county treasurer in the county
24 of purchase for a transit plate for which a fee of ten
25 dollars shall be paid. And provided, however, that
26 for any used vehicle held by a registered dealer and
27 not currently registered in this state, or for any

28 vehicle held by an individual and currently registered
29 in this state, when purchased in this state by a
30 nonresident for removal to the nonresident's state of
31 residence, the purchaser may make application to the
32 county treasurer in the county of purchase for a
33 transit plate for which a fee of three dollars shall
34 be paid. The county treasurer shall issue a
35 nontransferable certificate of registration for which
36 no refund shall be allowed; and the transit plates
37 shall be void thirty days after issuance. Such
38 purchaser may apply for a certificate of title by
39 surrendering the manufacturer's or importer's
40 certificate or certificate of title, duly assigned as
41 provided in this chapter. In this event, the
42 treasurer in the county of purchase shall, when
43 satisfied with the genuineness and regularity of the
44 application, and upon payment of a fee of ten dollars,
45 issue a certificate of title in the name and address
46 of the nonresident purchaser delivering the same to
47 the person entitled to the title as provided in this
48 chapter. The provisions of this subsection relating
49 to multipurpose vehicles are effective January 1,
50 1993, for all 1993 and subsequent model years. The

Page 2

1 annual registration fee for multipurpose vehicles that
2 are 1992 model years and older shall be in accordance
3 with section 321.124.
4 Sec. . Section 321.113, subsection 5, paragraph
5 a, Code 2003, is amended to read as follows:
6 a. If a 1993 model year or older motor vehicle,
7 other than a multipurpose vehicle, has been titled in
8 the same person's name since the vehicle was new or
9 the title to the vehicle was transferred prior to
10 January 1, 2002, the part of the registration fee that
11 is based on the value of the vehicle shall be ten
12 percent of the rate as fixed when the motor vehicle
13 was new.
14 Sec. . Section 321.113, subsection 5, paragraph
15 b, unnumbered paragraph 1, Code 2003, is amended to
16 read as follows:
17 If the title of a 1993 model year or older motor
18 vehicle is transferred to a new owner or if such a
19 motor vehicle is brought into the state on or after
20 January 1, 2002, or if a vehicle is a 1993 model year
21 or older multipurpose vehicle, the registration fee
22 shall not be based on the weight and list price of the
23 motor vehicle, but shall be as follows:
24 Sec. . Section 321.124, subsection 3,
25 unnumbered paragraph 1, Code 2003, is amended to read
26 as follows:

27 The annual registration fee for motor homes and
28 1992 and older model years for multipurpose vehicles
29 is as follows:
30 Sec. . Section 321.124, subsection 3, paragraph
31 h, Code 2003, is amended by striking the paragraph."
32 2. Page 46, by inserting after line 30 the
33 following:
34 "Sec. . EFFECTIVE DATE. The sections of this
35 division of this Act amending sections 321.109,
36 321.113, and 321.124 take effect January 1, 2004, for
37 new registrations and for registration periods
38 beginning on or after that date."
39 3. By renumbering as necessary.

Amendment H-1597 lost.

Elgin of Linn asked and received unanimous consent that
amendment H-1600 be deferred.

Bell of Jasper offered the following amendment H-1588 filed by
Bell, Greiner of Washington and Freeman of Buena Vista from the
floor and moved its adoption:

H-1588

1 Amend House File 700 as follows:
2 1. Page 41, line 6, by striking the words "for
3 the purpose" and inserting the following: "that
4 produces electricity."
5 2. Page 41, by striking lines 7 through 14.

Amendment H-1588 was adopted.

Jacobs of Polk asked and received unanimous consent to withdraw
amendment H-1581 filed by her from the floor.

Mascher of Johnson offered the following amendment H-1580 filed
by her from the floor and moved its adoption:

H-1580

1 Amend House File 700 as follows:
2 1. Page 42, by inserting after line 20, the
3 following:
4 "Sec. 200. There is appropriated from the general
5 fund of the state to the state election fund of the
6 secretary of state, as established by the department
7 of management, for the fiscal period beginning July 1,

8 2002, and ending June 30, 2005, the following amount,
9 or so much thereof as is necessary, for implementation
10 of Pub. L. No. 107-252, the Help America Vote Act of
11 2002, to be expended in accordance with the plan
12 submitted by the governor to the federal election
13 assistance commission as established by Pub. L. No.
14 107-252, section 201, and to provide a match of the
15 federal appropriation allocated to Iowa pursuant to
16 Pub. L. No. 107-252:
17 $ 1,500,000".
18 2. Page 46, by inserting after line 30 the
19 following:
20 "10. Section 200, making an appropriation to the
21 state election fund of the secretary of state."
22 3. By renumbering as necessary.

Amendment H-1580 lost.

Fallon of Polk asked and received unanimous consent to withdraw
amendment H-1587 filed by him from the floor.

Carroll of Poweshiek offered the following amendment H-1592
filed by him from the floor and moved its adoption:

H-1592

1 Amend House File 700 as follows:
2 1. Page 49, by inserting after line 5, the
3 following:
4 "Sec. . 2003 Iowa Acts, House File 619, section
5 7, subsection 4, paragraph b, if enacted, is amended
6 to read as follows:
7 b. Pharmacies and providers that are enrolled in
8 the medical assistance program shall make available
9 drug acquisition cost information, product
10 availability information, and other information deemed
11 necessary by the department for the determination of
12 reimbursement rates and the efficient operation of the
13 pharmacy benefit. Pharmacies and providers shall
14 produce and submit the requested information in the
15 manner and format requested by the department or its
16 designee at no cost to the department or designee.
17 Pharmacies and providers shall submit information to
18 the department or its designee within thirty days
19 following receipt of a request for information unless
20 the department or its designee grants an extension
21 upon written request of the pharmacy or provider.
22 Notwithstanding the required provision of information
23 by pharmacies and providers under this paragraph, if
24 the department is able to obtain any of the

25 information required to be provided under this
26 paragraph in an alternative manner, through which the
27 department is ensured of the validity and accuracy of
28 the information and of the timely submission of the
29 information, the department may instead obtain the
30 information in the alternative manner. Chapter 550
31 shall apply to the information provided by pharmacies
32 and providers under this paragraph."
33 2. By renumbering as necessary.

Amendment H-1592 was adopted.

Berry of Black Hawk offered the following amendment H-1589
filed by her from the floor and moved its adoption:

H-1589

1 Amend House File 700 as follows:
2 1. Page 50, line 32, by inserting after the word
3 "methamphetamine" the following: "or crack cocaine".

Amendment H-1589 lost.

Dix of Butler offered the following amendment H-1584 filed by him
and Jenkins of Black Hawk from the floor and moved its adoption:

H-1584

1 Amend House File 700 as follows:
2 1. Page 51, by inserting after line 11 the
3 following:
4 "DIVISION ____
5 Sec. 201. PURPOSE AND DEFINITIONS.
6 1. PURPOSE. The general assembly finds that the
7 Iowa communications network is a valuable state asset
8 that has served the people of the state well, but
9 which requires significant ongoing financial support
10 from the state in the form of annual appropriations.
11 The operation of a telecommunications network is a
12 function that can be and generally is conducted by
13 private enterprise. It is in the public interest to
14 sell the Iowa communications network to a qualified
15 private business enterprise that will commit to
16 provide the same secure low-cost high-quality service
17 to state and federal agencies and military
18 installations now provided by the network. Through
19 such a sale, the state would eliminate the need for
20 ongoing annual appropriations while preserving the key
21 benefits enjoyed by the state under the present state

22 ownership of the network. The state also expects to
23 obtain sufficient proceeds from such a sale to cover
24 existing obligations and to realize additional
25 proceeds above the level of such obligations. Given
26 the current depressed state of the telecommunications
27 industry, the state can reasonably be expected to
28 maximize sales proceeds by allowing a purchaser a
29 period of time in which to assemble financing for its
30 purchase. During the interim between enactment of
31 this division of this Act and completion of a sale,
32 the services of a private-enterprise manager with
33 experience operating telecommunications networks can
34 reasonably be expected to reduce the costs of
35 operating the Iowa communications network, thereby
36 lowering or possibly eliminating annual
37 appropriations.
38 2. DEFINITIONS. As used in this division of this
39 Act, unless the context otherwise requires:
40 a. "Board" means the state network privatization
41 board.
42 b. "Commission" means the Iowa telecommunications
43 and technology commission established in section 8D.3
44 to oversee the operations of the network.
45 c. "Management contract" means an agreement
46 between the board and the manager for services to
47 oversee and operate the network on behalf of the
48 state.
49 d. "Manager" means the private entity selected by
50 the board to oversee and operate the network on behalf

Page 2

1 of the state.
2 e. "Network" means the Iowa or state
3 communications network as defined in section 8D.2.
4 f. "Out-of-pocket expenses" means moneys paid to
5 an unaffiliated third party for engineering, legal,
6 consulting, or other services or goods by a manager or
7 purchaser.
8 g. "Purchaser" means the entity that is selected
9 by the board to purchase the network from the state.
10 h. "Required third-party approval" means any
11 consent, conveyance, approval, or waiver that must be
12 granted by a private, governmental, or quasi-
13 governmental third party in order for the purchaser to
14 receive clear title to all network assets and the
15 right to use the network assets free of adverse
16 claims. Required third-party approvals include but
17 are not limited to all of the following:
18 (1) Approvals of assignments to the purchaser of
19 the state's rights under leases or contracts between
20 the state and the third party.

21 (2) Conveyance to the purchaser of property that
22 the third party currently leases to the state on a
23 term with less than fifteen years remaining.
24 (3) Release of restrictions in contracts that
25 require that the state operate the network.
26 i. "Sales contract" means the contract between the
27 state as seller, represented by the board, and the
28 purchaser, for sale of the network to the purchaser.
29 Sec. 202. STATE NETWORK PRIVATIZATION BOARD
30 CREATED - DUTIES.
31 1. A state network privatization board is created.
32 The board shall consist of the following members:
33 a. A chairperson member appointed by the
34 legislative council, subject to confirmation by the
35 senate.
36 b. A member, who shall not be of the same
37 political party as the chairperson, appointed by the
38 governor subject to confirmation by the senate.
39 c. The adjutant general or the adjutant general's
40 designee.
41 2. The board shall do all of the following:
42 a. Issue a request for proposals from qualified
43 entities interested in serving as the manager of the
44 network. This request for proposals shall be issued
45 by July 1, 2004, and responses to the request for
46 proposals shall be due by August 1, 2004.
47 b. Select a manager and enter into a management
48 contract with the manager by October 1, 2004. The
49 management contract shall provide for the continuation
50 of all services currently being provided to state and

Page 3

1 federal agencies and military installations pursuant
2 to chapter 8D, at the rates specified therein, for the
3 duration of the contract. The contract shall also
4 specify the manager's authority in relation to the
5 duties of the commission during the period between
6 execution of the management contract and closing of
7 the sale of the network. The commission shall
8 establish a dispute resolution process regarding rate
9 increases, quality of service issues, and other areas
10 of dispute involving network subscribers. The
11 commission shall also make recommendations regarding
12 imposition of an ongoing dispute resolution and
13 appeals process commencing with the closing of the
14 sale of the network.
15 c. Issue a request for proposals from qualified
16 entities for the purchase of the network. This
17 request for proposals shall be issued by January 1,
18 2005, and responses to the request for proposals shall
19 be due by May 1, 2005.

20 d. Utilizing the criteria set forth in sections
21 203 and 204 of this Act, select a purchaser and enter
22 into a sales contract with the purchaser by October 1,
23 2005.
24 e. Immediately upon execution of the management
25 contract and the sales contract by the majority of the
26 board, transmit the executed contract to the general
27 assembly and to the governor. The board shall have
28 full authority to enter into the management contract
29 and the sales contract on behalf of the state,
30 provided that the general assembly by legislation
31 enacted regarding the specific purchase and approved
32 by the governor, within thirty days after transmittal
33 to the general assembly and the governor in the case
34 of the management contract, and within sixty days
35 after transmittal to the general assembly and the
36 governor in the case of the sales contract, may
37 disapprove the board's action, in which case the
38 disapproved contract shall have no force and effect.
39 In the event of such disapproval, the state shall pay
40 the manager or the purchaser, as the case may be,
41 reasonable out-of-pocket expenses incurred in
42 preparing a proposal and performing prior to
43 disapproval, but such expenses shall not exceed two
44 hundred thousand dollars in the case of disapproval of
45 the management contract and five hundred thousand
46 dollars in the case of disapproval of the sales
47 contract. In the event that multiple management
48 contracts or sales contracts have been executed, the
49 two hundred thousand dollars and five hundred thousand
50 dollars shall be distributed pro rata among all

Page 4

1 management contracts and sales contracts executed.
2 f. Cause the sales contract to require closing by
3 October 1, 2007, allowing time for the state to obtain
4 third-party approvals as required by section 206 of
5 this Act, including the filing of any necessary
6 eminent domain actions, and for the purchaser to
7 secure financing.
8 g. Execute all necessary documents relating to the
9 closing of the sale of the network. The board may
10 direct any other applicable official to assist in the
11 execution of necessary documents relating to the
12 closing.
13 h. Require by written directive that all state
14 officials provide information and records concerning
15 the network to the board, to the manager, or to a
16 person submitting a proposal to purchase the network,
17 whenever the board requires such provision of such
18 records and other information.

19 i. Take all other steps necessary and proper as
20 needed to carry out its responsibilities enumerated in
21 this subsection. The board may adopt necessary rules
22 pursuant to chapter 17A to administer this division of
23 this Act.
24 Sec. 203. MINIMUM QUALIFICATIONS OF PURCHASER.
25 The purchaser shall meet the following requirements:
26 1. The principal place of business of the
27 purchaser and any parent of the purchaser shall be
28 located in the state of Iowa.
29 2. For national security reasons, and because of
30 the extensive military use of the network, the
31 purchaser shall possess national security approval.
32 Sec. 204. CRITERIA FOR SELECTION OF PURCHASER.
33 After issuing a request for proposals for the purchase
34 of the network and considering the proposals received,
35 the board shall select the highest and best offer for
36 purchase of the network from those persons submitting
37 proposals which meet all of the following criteria:
38 1. Satisfy the minimum qualifications of this
39 division of this Act.
40 2. Submit a proposal in compliance with the
41 request for proposals.
42 3. Demonstrate a likelihood of being able to
43 obtain any financing necessary to close the
44 transaction. However, the board shall not require
45 that the purchaser have a commitment for financing to
46 award the contract, but shall allow the purchaser at
47 least one year to obtain any necessary financing. The
48 board may also in its discretion consider proposals
49 involving financing of the sale by the state.
50 4. Agree to continue all services currently being

Page 5

1 provided to state and federal agencies and military
2 installations for the next ten years, with any annual
3 rate increase not to exceed five percent per year,
4 provided that the purchaser shall not be required to
5 supply at such restricted prices a quantity or quality
6 of service greater than that provided by the network
7 as of execution of the contract for sale of the
8 network.
9 Sec. 205. CLOSING OF SALE. Any debt of the state
10 related to the network or other liens against network
11 assets shall be discharged out of the state's proceeds
12 of closing, so that the purchaser receives marketable
13 title to the network. The purchaser shall receive
14 bills of sale, in the case of personal property, and
15 deeds, in the case of real property, transferring all
16 network assets to the purchaser. The state shall also
17 transfer its interest in right-of-way and leases and

18 easements for uses of rights-of-way.
19 Sec. 206. THIRD-PARTY APPROVALS.
20 1. The state shall exercise all reasonable efforts
21 to obtain each required third-party approval,
22 including where necessary by use of eminent domain
23 proceedings. To the extent feasible, the state may
24 pay the costs of obtaining required third-party
25 approvals out of the proceeds of sale rather than from
26 the general fund of the state. In the event the state
27 fails to obtain a required third-party approval, the
28 purchaser may terminate the sales contract without
29 penalty and shall be reimbursed by the state for
30 reasonable out-of-pocket expenses incurred in
31 preparing its proposal and fulfilling its obligations
32 under the sales contract, not to exceed two million
33 dollars.
34 2. The board and the purchaser shall develop a
35 list of required third-party approvals and persons who
36 may have claims that would constitute required third-
37 party approvals if valid. The board shall mail to
38 each person on the list at their last known address a
39 notice that provides a description of the sale and
40 invites the recipient to submit a claim on a form
41 developed by the board by a deadline set by the board.
42 The claim or interest of any person who fails to
43 timely file a claim shall be deemed discharged and
44 forfeited, and such person shall be forever barred and
45 estopped from taking any action against the state or
46 purchaser that would in any way interfere with the
47 purchaser's use of the network. In addition, the
48 board shall publish the notice in newspapers of
49 general circulation in the state of Iowa, and failure
50 to file a timely claim shall bar all persons whose

Page 6

1 rights could constitutionally be affected by such
2 notice, just as if such person had been mailed notice.
3 3. Any eminent domain or other proceeding to
4 obtain a required third-party approval shall be
5 promptly filed by the attorney general at the request
6 of the board and shall be added to the calendar of any
7 trial or appellate court of this state so that the
8 deadline in section 202 of this Act for closing the
9 sale can be met.
10 Sec. 207. REMOVAL OF RESTRICTIONS - REPEAL OF
11 CHAPTER 8D. Chapter 8D is repealed, effective as of
12 the date of the closing of the sale of the network
13 under this division of this Act, as certified by the
14 chairperson of the board to the governor.
15 Sec. 208. ASSISTANCE OF OTHER STATE AGENCIES.
16 1. The attorney general shall provide legal advice

17 to the board.
18 2. All other state agencies shall provide whatever
19 assistance may reasonably be required by the board in
20 carrying out its duties under this division of this
21 Act."
22 2. By renumbering as necessary.

Amendment H-1584 was adopted.

Dix of Butler offered the following amendment H-1608 filed by him
from the floor and moved its adoption:

H-1608

1 Amend House File 700 as follows:
2 1. Page 13, line 29, by inserting after the word
3 "governor." the following: "However, commencing July
4 1, 2003, the consumer advocate shall receive an annual
5 salary in the same salary range as the chairperson and
6 members of the utilities board."
7 2. By renumbering as necessary.

Amendment H-1608 was adopted.

Frevert of Palo Alto offered amendment H-1605 filed by Murphy of
Dubuque from the floor as follows:

H-1605

1 Amend House File 700 as follows:
2 1. Page 24, by inserting after line 9 the
3 following:
4 "Sec. . Section 12D.1, unnumbered paragraph 1,
5 Code 2003, is amended to read as follows:
6 The general assembly finds that the general welfare
7 and well-being of the state are directly related to
8 educational levels and skills of the citizens of the
9 state, and that a vital and valid public purpose is
10 served by the creation and implementation of programs
11 which encourage and make possible the attainment of
12 higher education by the greatest number of citizens of
13 the state. The state has limited resources to provide
14 additional programs for higher education funding and
15 the continued operation and maintenance of the state's
16 public institutions of higher education and the
17 general welfare of the citizens of the state will be
18 enhanced by establishing a program which allows
19 citizens of the state to invest money in a public
20 trust for future application to the payment of higher

21 education costs. The creation of the means of
22 encouragement for citizens to invest in such a program
23 represents the carrying out of a vital and valid
24 public purpose. In order to make available to the
25 citizens of the state an opportunity to fund future
26 higher education needs, it is necessary that a public
27 trust be established in which moneys may be invested
28 for future educational use. It is also necessary to
29 establish an endowment fund which may be funded with
30 public funds, among other sources, the income from
31 which will be made available to participants in the
32 trust to enhance their savings invested for the
33 payment of future higher education costs.
34 Sec. . Section 12D.1, subsections 5 and 13,
35 Code 2003, are amended by striking the subsections.
36 Sec. . Section 12D.2, subsections 4, 8, 10, 11,
37 and 12, Code 2003, are amended to read as follows:
38 4. Accept any grants, gifts, legislative
39 appropriations, and other moneys from the state, any
40 unit of federal, state, or local government, or any
41 other person, firm, partnership, or corporation which
42 the treasurer of state shall deposit into the
43 administrative fund, the endowment fund, or the
44 program fund.
45 8. Solicit and accept for the benefit of the
46 endowment fund gifts, grants, and other moneys,
47 including legislative appropriations and grants from
48 any federal, state, or local governmental agency.
49 10. Make payments to institutions of higher
50 education, participants, or beneficiaries pursuant to

Page 2

1 participation agreements on behalf of beneficiaries.
2 11. Make refunds to participants upon the
3 termination of participation agreements and partial
4 nonqualified distributions to participants pursuant to
5 the provisions, limitations, and restrictions set
6 forth in this chapter.
7 12. Invest moneys from the endowment fund and the
8 program fund in any investments which are determined
9 by the treasurer of state to be appropriate.
10 Sec. . Section 12D.3, subsections 2 and 3, Code
11 2003, are amended to read as follows:
12 2. Beneficiaries designated in participation
13 agreements may be designated from date of birth up to,
14 but not including, their eighteenth birthday at any
15 age. A substitute beneficiary may be older than age
16 eighteen provided that the substitute beneficiary is
17 not older than the original beneficiary.
18 3. A participant's account balance shall be
19 refunded to the participant, less endowment fund

20 earnings, and less a refund penalty levied by the
21 trust against account balance earnings, if any, in the
22 event an account balance remains in the account for a
23 thirty-day period following the beneficiary's
24 thirtieth birthday.
25 Sec. . Section 12D.4, Code 2003, is amended by
26 striking the section and inserting in lieu thereof the
27 following:
28 12D.4 PROGRAM AND ADMINISTRATIVE FUNDS -
29 INVESTMENT AND PAYMENTS.
30 1. The treasurer of state shall segregate moneys
31 received by the trust into two funds: the program
32 fund and the administrative fund.
33 2. All moneys paid by participants in connection
34 with participation agreements shall be deposited as
35 received into separate accounts within the program
36 fund.
37 3. Contributions to the trust made by participants
38 may only be made in the form of cash.
39 4. A participant or beneficiary shall not provide
40 investment direction regarding program contributions
41 or earnings held by the trust.
42 5. Moneys accrued by participants in the program
43 fund of the trust may be used for payments to any
44 institution of higher education. Payments may be made
45 to the institution, the participant, or the
46 beneficiary.
47 Sec. . Section 12D.5, Code 2003, is amended by
48 striking the section and inserting in lieu thereof the
49 following:
50 12D.5 CANCELLATION OF AGREEMENTS.

Page 3

1 A participant may cancel a participation agreement
2 at will. Upon cancellation of a participation
3 agreement, a participant shall be entitled to the
4 return of the participant's account balance.
5 Sec. . Section 12D.6, subsection 3, Code 2003,
6 are amended by striking the subsection.
7 Sec. . Section 12D.9, subsection 1, paragraphs
8 c, d, and e, Code 2003, are amended to read as
9 follows:
10 c. Pursuant to section 12D.4, subsection 1,
11 paragraph "b" 2, a separate account is established for
12 each beneficiary.
13 d. Pursuant to section 12D.4, subsection 1,
14 paragraph "f" 3, contributions may only be made in the
15 form of cash.
16 e. Pursuant to section 12D.4, subsection 1,
17 paragraph "g" 4, a participant or beneficiary shall
18 not provide investment direction regarding program

19 contributions or earnings held by the trust.
20 Sec. . Section 12D.9, subsection 1, paragraph
21 f, Code 2003, is amended by striking the paragraph.
22 Sec. . Section 12D.9, subsection 2, Code 2003,
23 is amended to read as follows:
24 2. State income tax treatment of the Iowa
25 educational savings plan trust shall be as provided in
26 section 422.7, subsections 32, and 33, and 34, and
27 section 422.35, subsection 14.
28 Sec. . Section 12D.10, subsection 1, Code 2003,
29 is amended to read as follows:
30 1. The assets of the trust, including the program
31 fund and the endowment fund, shall at all times be
32 preserved, invested, and expended solely and only for
33 the purposes of the trust and shall be held in trust
34 for the participants and beneficiaries.
35 Sec. . Section 422.7, subsection 34, Code 2003,
36 is amended by striking the subsection.
37 Sec. . Section 422.35, subsection 14, Code
38 2003, is amended by striking the subsection."
39 2. Page 46, by inserting after line 13 the
40 following:
41 " . The amendments to sections 12D.1, 12D.2,
42 12D.3, 12D.4, 12D.5, 12D.6, 12D.9, 12D.10, 422.7, and
43 422.35, which shall apply retroactively to January 1,
44 2003, for tax years beginning on or after that date."

Kramer of Polk rose on a point of order that amendment H-1605
was not germane.

The Speaker ruled the point well taken and amendment H-1605
not germane.

Elgin of Linn asked and received unanimous consent to withdraw
amendment H-1600, previously deferred, filed by him from the floor,
placing out of order the following amendments to amendment
H-1600, filed from the floor:

Amendment H-1606 filed by Hogg of Linn.
Amendment H-1607 filed by Hogg of Linn.
Amendment H-1609 filed by Hogg of Linn.
Amendment H-1610 filed by Mertz of Kossuth.
Gipp of Winneshiek asked and received unanimous consent that
House File 700 be deferred and that the bill retain its place on the
calendar.

The House stood at ease at 3:47 p.m., until the fall of the gavel.

The House resumed session at 4:47 p.m., Jacobs of Polk in the
chair.

SENATE AMENDMENT CONSIDERED

Tjepkes of Webster called up for consideration House File 595, a
bill for an act relating to certain voluntary annexations and to
involuntary annexations and providing an effective date, amended by
the Senate, and moved that the House concur in the following Senate
amendment H-1579:

H-1579

1 Amend House File 595, as amended, passed, and
2 reprinted by the House, as follows:
3 1. Page 2, by striking lines 17 through 20 and
4 inserting the following: "However, the area of the
5 territory that is public land included without the
6 written consent of the agency with jurisdiction over
7 the public land may not be used to determine the
8 percentage of territory that is included with the
9 consent of the owner and without the consent of the
10 owner."

The motion prevailed and the House concurred in the Senate
amendment H-1579.

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

On the question "Shall the bill pass?" (H.F. 595)

The ayes were, 88:
Alons Arnold Baudler Bell
Boal Boddicker Carroll Chambers
Connors Davitt De Boef Dennis
Dix Dolecheck Drake Eichhorn
Elgin Fallon Foege Ford
Freeman Frevert Gaskill Gipp
Granzow Greimann Greiner Hahn
Hansen Hanson Heaton Heddens
Hoffman Hogg Horbach Hunter
Huseman Huser Hutter Jenkins
Jochum Jones Klemme Kramer
Kuhn Kurtenbach Lalk Lensing
Lukan Lykam Maddox Mascher
Mertz Miller Murphy Myers
Olson, D. Olson, S. Osterhaus Paulsen
Petersen Quirk Raecker Rants, Spkr.
Rasmussen Rayhons Reasoner Roberts
Sands Schickel Shoultz Smith
Stevens Struyk Taylor, D. Taylor, T.
Tjepkes Tymeson Upmeyer Van Engelenhoven
Van Fossen, J.K. Van Fossen, J.R. Watts Whitaker
Wilderdyke Winckler Wise Jacobs,
Presiding

 


The nays were, 9:
Berry Cohoon Dandekar McCarthy
Oldson Swaim Thomas Wendt
Whitead

 


Absent or not voting, 3:
Boggess Bukta Manternach

 


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

HOUSE RECEDES

Heaton of Henry called up for consideration House File 685, a bill
for an act relating to and making appropriations from the healthy
Iowans tobacco trust and the tobacco settlement trust fund, amended
by the House and moved that the House recede from its amendment.

The motion prevailed and the House recedes.

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

On the question "Shall the bill pass?" (H.F. 685)
The ayes were, 96:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Carroll Chambers Cohoon Dandekar
Davitt De Boef Dennis Dix
Dolecheck Drake Elgin Fallon
Foege Ford Freeman Frevert
Gaskill Gipp Granzow Greimann
Greiner Hahn Hansen Hanson
Heaton Heddens Hoffman Hogg
Horbach Hunter Huseman Huser
Hutter Jenkins Jochum Jones
Klemme Kramer Kuhn Kurtenbach
Lalk Lensing Lukan Lykam
Maddox Mascher McCarthy Mertz
Miller Murphy Myers Oldson
Olson, D. Olson, S. Osterhaus Paulsen
Petersen Quirk Raecker Rants, Spkr.
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 Jacobs,
Presiding

 


The nays were, 1:
Eichhorn

 


Absent or not voting, 3:
Bukta Connors Manternach

 


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

SENATE AMENDMENT CONSIDERED

Hansen of Pottawattamie called up for consideration House File
543, a bill for an act relating to the provision of certain information
for insureds regarding external review of health care coverage
decisions, amended by the Senate, and moved that the House concur
in the following Senate amendment H-1567:

H-1567

1 Amend House File 543, as passed by the House, as
2 follows:
3 1. By striking everything after the enacting
4 clause and inserting the following:

5 "Section 1. Section 514C.4, subsection 1,
6 unnumbered paragraph 1, Code 2003, is amended to read
7 as follows:
8 A policy or contract providing for third-party
9 payment or prepayment of health or medical expenses
10 shall provide minimum mammography examination
11 coverage, including, but not limited to, the following
12 classes of third-party payment provider contracts or
13 policies delivered, issued for delivery, continued, or
14 renewed in this state on or after July 1, 1989:.
15 Sec. 2. Section 514C.4, subsection 2, paragraphs a
16 and c, Code 2003, are amended to read as follows:
17 a. One baseline mammogram for any woman who is
18 thirty-five through thirty-nine years of age, or more
19 frequent mammograms if recommended by the woman's
20 physician.
21 c. A mammogram every year for any woman who is
22 fifty years of age or older, or more frequently if
23 recommended by the woman's physician.
24 Sec. 3. Section 514C.4, subsection 4, Code 2003,
25 is amended to read as follows:
26 4. The commissioner of insurance shall adopt rules
27 under chapter 17A necessary to implement this section
28 no later than July 1, 1989."
29 2. Title page, by striking lines 1 through 3 and
30 inserting the following: "An Act relating to minimum
31 mammography examination coverage, and making related
32 changes."
33 3. By renumbering, redesignating, and correcting
34 internal references as necessary.

The motion prevailed and the House concurred in the Senate
amendment H-1567.

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

On the question "Shall the bill pass?" (H.F. 543)

The ayes were, 95:
Arnold Baudler Bell Berry
Boal Boddicker Boggess Carroll
Chambers Cohoon Dandekar Davitt
De Boef Dennis Dix Dolecheck
Drake Eichhorn Elgin Fallon
Foege Ford Freeman Frevert
Gaskill Gipp Granzow Greimann
Greiner Hahn Hansen Hanson
Heaton Heddens Hoffman Hogg
Horbach Hunter Huseman Huser
Hutter Jenkins Jochum Jones
Klemme Kramer Kuhn Kurtenbach
Lalk Lensing Lukan Lykam
Maddox Mascher McCarthy Mertz
Miller Myers Oldson Olson, D.
Olson, S. Osterhaus Paulsen Petersen
Quirk Raecker Rants, Spkr. 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 Jacobs,
Presiding

 


The nays were, none.

Absent or not voting, 5:
Alons Bukta Connors Manternach
Murphy
The bill having received a constitutional majority was declared to have passed the House and the title, as amended, was agreed to.

 


SENATE AMENDMENT CONSIDERED

Chambers of O’Brien called up for consideration House File 549,
a bill for an act relating to the duties and operations of the
department of education and school boards, amended by the Senate
amendment H-1578 as follows:

H-1578

1 Amend House File 549, as amended, passed, and
2 reprinted by the House, as follows:
3 1. Page 1, by inserting before line 1 the
4 following:
5 "Section 1. Section 256.5A, Code 2003, is amended
6 to read as follows:
7 256.5A NONVOTING MEMBER.
8 The governor shall appoint the one nonvoting

9 student member of the state board for a term of one
10 year beginning and ending as provided in section
11 69.19. The nonvoting student member shall be
12 appointed from a list of names submitted by the state
13 board of education. Students enrolled in either grade
14 ten or eleven in a public school may apply to the
15 state board to serve as a nonvoting student member.
16 The department shall develop an application process
17 that requires the consent of the student's parent or
18 guardian if the student is a minor, initial
19 application approval by the school district in which
20 the student applicant is enrolled, and submission of
21 approved applications by a school district to the
22 department. The nonvoting student member's school
23 district of enrollment shall notify the student's
24 parents if the student's grade point average falls
25 during the period in which the student is a member of
26 the state board. The state board shall adopt rules
27 under chapter 17A specifying criteria for the
28 selection of applicants whose names shall be submitted
29 to the governor. Criteria shall include, but are not
30 limited to, academic excellence, participation in
31 extracurricular and community activities, and interest
32 in serving on the board. Rules adopted by the state
33 board shall also require, if the student is a minor,
34 supervision of the student by the student's parent or
35 guardian while the student is engaged in authorized
36 state board business at a location other than the
37 community in which the student resides, unless the
38 student's parent or guardian submits to the state
39 board a signed release indicating the parent or
40 guardian has determined that supervision of the
41 student by the parent or guardian is unnecessary. The
42 nonvoting student member shall be appointed without
43 regard to political affiliation appointment is not
44 subject to section 69.16 or 69.16A. The nonvoting
45 student member shall have been enrolled in a public
46 school in Iowa for at least one year prior to the
47 member's appointment. A nonvoting student member who
48 will not graduate from high school prior to the end of
49 a second term may apply to the state board for
50 submission of candidacy to the governor for a second

Page 2

1 one-year term. A nonvoting student member shall be
2 paid a per diem as provided in section 7E.6 and the
3 student and the student's parent or guardian shall be
4 reimbursed for actual and necessary expenses incurred
5 in the performance of the student's duties as a
6 nonvoting member of the state board. A vacancy in the
7 membership of the nonvoting student member shall not

8 be filled until the expiration of the term.
9 Sec. . Section 256.7, subsection 21, unnumbered
10 paragraph 1, Code 2003, is amended to read as follows:
11 Develop and adopt rules by July 1, 1999,
12 incorporating accountability for, and reporting of,
13 student achievement into the standards and
14 accreditation process described in section 256.11.
15 The rules shall provide for all of the following:"
16 2. Page 1, by inserting after line 31 the
17 following:
18 "Sec. . Section 256.9, Code 2003, is amended by
19 adding the following new subsection:
20 NEW SUBSECTION. 53. Develop and implement a
21 statewide program of educational assessment reporting.
22 The director shall provide information needed to
23 improve public schools by collecting and disseminating
24 data and information resulting from assessments made
25 of public school students, to aid in the development
26 and evaluation of educational programs and policies by
27 school districts, and to inform parents of the
28 educational progress of their children in the public
29 schools. Information collected under the department's
30 statewide program of educational assessment reporting
31 shall be utilized as part of the state report card on
32 school performance and on statewide progress by the
33 state in accordance with implementation of the federal
34 No Child Left Behind Act of 2001, Pub. L. No. 107-110.
35 The program shall include the assignment of a unique
36 student identifier to each student attending
37 kindergarten through grade twelve.
38 a. Not later than July 1, 2004, the department
39 shall maintain an internet site that reports the
40 following:
41 (1) Iowa tests of basic skills scores for each
42 school district that administers the test and for each
43 attendance center within the school district for
44 grades three through eight. Each school district
45 administering the Iowa test of basic skills shall
46 provide a report to the department relating to each
47 attendance center's test score averages and a
48 longitudinal analysis of student progress as specified
49 in paragraph "c".
50 The report shall contain attendance-center-level

Page 3

1 test results for the Iowa test of basic skills in the
2 areas of reading, social studies, mathematics, and
3 science. The report shall include, but shall not be
4 limited to the number of students tested, the number

5 of test results used to compute the averages, average
6 standard score, the corresponding grade equivalent
7 score, average stanine score for the group, and the
8 normal curve equivalent of average standard scores,
9 and percentile ranks based on student norms, as well
10 as measures of student progress as specified in
11 paragraph "c".
12 (2) Iowa test of educational development scores
13 for each school district that administers the test and
14 for each attendance center within the school district
15 for grades nine through eleven. Each school district
16 administering the Iowa test of educational development
17 shall provide a report to the department relating to
18 each attendance center's test score averages and a
19 longitudinal analysis of student progress as specified
20 in paragraph "c".
21 b. Scores required to be reported under paragraph
22 "a", subparagraphs (1) and (2), shall be presented in
23 percentiles that allow for comparisons between
24 participating schools. The internet site shall
25 include background information regarding the tests,
26 including guidance for interpreting test scores and
27 the number of students that did not participate in the
28 tests and the reasons the students did not
29 participate.
30 c. The department shall approve the use of a
31 single value-added system to calculate annually the
32 amount of academic growth for each student, school,
33 and school district in reading and mathematics, and
34 other core academic areas where possible. The system
35 shall at a minimum contain the following capabilities:
36 (1) Use of a mixed-model statistical analysis that
37 has the ability to use all achievement test data for
38 each student, including the data for students with
39 missing test scores, that does not adjust downward
40 expectations for student progress based on race,
41 poverty, or gender, and that will provide the best
42 linear unbiased predictions of school or other
43 educational entity effects to minimize the impact of
44 fortuitous accumulation of random errors.
45 (2) The ability to work with test data from a
46 variety of sources, including data that are not
47 vertically scaled, and to provide a variety of
48 analyses of such data.
49 (3) The capacity to receive and report results
50 electronically and provide support for districts
Page 4

1 utilizing the system.
2 (4) The ability to create for each school district
3 a chart that reports grade-equivalent scores for
4 grades three through eight and gains between

5 consecutive pairs of grades for each attendance center
6 and provides for a district-wide study of grade
7 equivalent scores. The system shall create a chart
8 for each district in accordance with this
9 subparagraph.
10 d. Each school district shall have complete access
11 to and utilization of its own value-added assessment
12 reports generated by the system at the student level
13 for the purpose of measuring student achievement at
14 different educational entity levels.
15 Sec. . Section 256.18, subsection 2, unnumbered
16 paragraph 2, Code 2003, is amended by striking the
17 unnumbered paragraph.
18 Sec. . Section 256.39, subsection 8, Code 2003,
19 is amended by striking the subsection.
20 Sec. . Section 256A.4, subsection 1, unnumbered
21 paragraph 1, Code 2003, is amended to read as follows:
22 The board of directors of each school district may
23 develop and offer a program which provides outreach
24 and incentives for the voluntary participation of
25 expectant parents and parents of children in the
26 period of life from birth through age five, who reside
27 within district boundaries, in educational family
28 support experiences designed to assist parents in
29 learning about the physical, mental, and emotional
30 development of their children. A district providing a
31 family support program, which seeks additional funding
32 under sections 294A.13 through 294A.16, shall meet the
33 requirements of this section and the program shall be
34 subject to approval by the department of education. A
35 board may contract with another school district or
36 public or private nonprofit agency for provision of
37 the approved program or program site.
38 Sec. 101. Section 256D.9, Code 2003, is amended to
39 read as follows:
40 256D.9 FUTURE REPEAL.
41 This chapter is repealed effective July 1, 2003
42 2004.
43 Sec. 102. Section 257.3, subsection 2, Code 2003,
44 is amended to read as follows:
45 2. TAX FOR REORGANIZED AND DISSOLVED DISTRICTS.
46 a. Notwithstanding subsection 1, a reorganized
47 school district shall cause a foundation property tax
48 of four dollars and forty cents per thousand dollars
49 of assessed valuation to be levied on all taxable
50 property which, in the year preceding a
Page 5

1 reorganization, was within a school district affected
2 by the reorganization as defined in section 275.1, or
3 in the year preceding a dissolution was a part of a
4 school district that dissolved if the dissolution

5 proposal has been approved by the director of the
6 department of education pursuant to section 275.55.
7 In the year preceding the reorganization or
8 dissolution, the school district affected by the
9 reorganization or the school district that dissolved
10 must have had a certified enrollment of fewer than six
11 hundred in order for the four-dollar-and-forty-cent
12 levy to apply.
13 b. In succeeding school years, the foundation
14 property tax levy on that portion shall be increased
15 to the rate of four dollars and ninety cents per
16 thousand dollars of assessed valuation the first
17 succeeding year, five dollars and fifteen cents per
18 thousand dollars of assessed valuation the second
19 succeeding year, and five dollars and forty cents per
20 thousand dollars of assessed valuation the third
21 succeeding year and each year thereafter.
22 c. The foundation property tax levy reduction
23 pursuant to this subsection shall be available if
24 either of the following apply:
25 (1) In the year preceding the reorganization or
26 dissolution, the school district affected by the
27 reorganization or the school district that dissolved
28 had a certified enrollment of fewer than six hundred
29 pupils.
30 (2) In the year preceding the reorganization or
31 dissolution, the school district affected by the
32 reorganization or the school district that dissolved
33 had a certified enrollment of six hundred pupils or
34 greater, and entered into a reorganization or
35 dissolution with one or more school districts with a
36 certified enrollment of fewer than six hundred pupils.
37 The amount of foundation property tax reduction
38 received by a school district qualifying for the
39 reduction pursuant to this subparagraph shall not
40 exceed the highest reduction amount provided in
41 paragraphs "a" and "b" received by any of the school
42 districts with a certified enrollment of fewer than
43 six hundred pupils involved in the reorganization
44 pursuant to subparagraph (1) of this paragraph "c".
45 d. For purposes of this section, a reorganized
46 school district is one which absorbs at least thirty
47 percent of the enrollment of the school district
48 affected by a reorganization or dissolved during a
49 dissolution and in which action to bring about a
50 reorganization or dissolution is initiated by a vote
Page 6

1 of the board of directors or jointly by the affected
2 boards of directors to take effect on or after July 1,
3 2002, and on or before July 1, 2006. Each district
4 which initiated, by a vote of the board of directors

5 or jointly by the affected boards, action to bring
6 about a reorganization or dissolution to take effect
7 on or after July 1, 2002, and on or before July 1,
8 2006, shall certify the date and the nature of the
9 action taken to the department of education by January
10 1 of the year in which the reorganization or
11 dissolution takes effect.
12 Sec. . Section 257.11, subsection 2, paragraph
13 c, subparagraph (2), Code 2003, is amended to read as
14 follows:
15 (2) A school district which was not participating
16 in a whole grade sharing arrangement during the budget
17 year beginning July 1, 2000, which executes a whole
18 grade sharing agreement pursuant to sections 282.10
19 through 282.12 for the budget year beginning July 1,
20 2002, or July 1, 2003, July 1, 2004, or July 1, 2005,
21 and which adopts a resolution jointly with the other
22 affected boards to study the question of undergoing a
23 reorganization or dissolution to take effect on or
24 before July 1, 2006, shall receive a weighting of one-
25 tenth of the percentage of the pupil's school day
26 during which the pupil attends classes in another
27 district, attends classes taught by a teacher who is
28 jointly employed under section 280.15, or attends
29 classes taught by a teacher who is employed by another
30 school district. A district shall be eligible for
31 supplementary weighting pursuant to this subparagraph
32 for a maximum of three years. Receipt of
33 supplementary weighting for a second and third year
34 shall be conditioned upon submission of information
35 resulting from the study to the school budget review
36 committee indicating progress toward the objective of
37 reorganization on or before July 1, 2006.
38 Sec. . Section 258.17, subsection 4, Code 2003,
39 is amended to read as follows:
40 4. Each workstart program shall include a written
41 agreement by the school or school district with one or
42 more businesses from the surrounding community to
43 provide workplace-specific training and learning
44 programs which are related to the skills needed to
45 succeed in those occupational areas. The proposed
46 plan for implementation of the workstart program shall
47 include a copy of the written agreement between the
48 school or school district and the business or
49 businesses and a business support component, which
50 shall consist of financial or in-kind support, or both
Page 7

1 financial and in-kind support, from the businesses
2 that have entered into the agreement with the school
3 or school district. The plan may provide for the
4 utilization of phase III and other available school

5 funds in the establishment of the program. A
6 workstart program is a comprehensive school
7 transformation program under section 294A.14.
8 Sec. . Section 262.9, Code 2003, is amended by
9 adding the following new subsection:
10 NEW SUBSECTION. 29. Develop a policy, not later
11 than August 1, 2003, that each institution of higher
12 education under the control of the board shall
13 approve, institute, and enforce, which prohibits
14 students, faculty, and staff from harassing or
15 intimidating a student or any other person on
16 institution property who is wearing the uniform of, or
17 a distinctive part of the uniform of, the armed forces
18 of the United States. A policy developed in
19 accordance with this subsection shall not prohibit an
20 individual from wearing such a uniform on institution
21 property if the individual is authorized to wear the
22 uniform under the laws of a state or the United
23 States. The policy shall provide for appropriate
24 sanctions.
25 Sec. . Section 272.2, subsection 14, paragraph
26 b, subparagraph (1), subparagraph subdivision (b),
27 Code 2003, is amended by adding the following new
28 subparagraph subdivision part:
29 NEW SUBPARAGRAPH SUBDIVISION PART. (viii) Sexual
30 exploitation by a school employee.
31 Sec. . Section 272.2, Code 2003, is amended by
32 adding the following new subsection:
33 NEW SUBSECTION. 17. Adopt criteria for
34 administrative endorsements that allow a person to
35 achieve the endorsement authorizing the person to
36 serve as an elementary or secondary principal without
37 regard to the grade level at which the person accrued
38 teaching experience.
39 Sec. . NEW SECTION. 272.15 SCHOOL REPORTING
40 REQUIREMENT.
41 The board of directors of a school district or area
42 education agency, the superintendent of a school
43 district or the chief administrator of an area
44 education agency, and the authorities in charge of a
45 nonpublic school shall report to the board the
46 nonrenewal or termination, for reasons of alleged or
47 actual misconduct, of a person's contract executed
48 under sections 279.12, 279.13, 279.15 through 279.21,
49 279.23, and 279.24, and the resignation of a person
50 who holds a license, certificate, or authorization
Page 8

1 issued by the board as a result of or following an
2 incident or allegation of misconduct that, if proven,
3 would constitute a violation of the rules adopted by
4 the board to implement section 272.2, subsection 14,

5 paragraph "b", subparagraph (1), when the board or
6 reporting official has a good faith belief that the
7 incident occurred or the allegation is true.
8 Information reported to the board in accordance with
9 this section is privileged and confidential, and,
10 except as provided in section 272.13, is not subject
11 to discovery, subpoena, or other means of legal
12 compulsion for its release to a person other than the
13 respondent and the board and its employees and agents
14 involved in licensee discipline, and is not admissible
15 in evidence in a judicial or administrative proceeding
16 other than the proceeding involving licensee
17 discipline. The board shall review the information
18 reported to determine whether a complaint should be
19 initiated. In making that determination, the board
20 shall consider the factors enumerated in section
21 272.2, subsection 14, paragraph "a". For purposes of
22 this section, unless the context otherwise requires,
23 "misconduct" means an action disqualifying an
24 applicant for a license or causing the license of a
25 person to be revoked or suspended in accordance with
26 the rules adopted by the board to implement section
27 272.2, subsection 14, paragraph "b", subparagraph
28 (1)."
29 3. Page 3, line 15, by striking the word
30 "ordinary" and inserting the following: "certified".
31 4. By striking page 10, line 10, through page 11,
32 line 1.
33 5. Page 11, by striking lines 2 through 15.
34 6. Page 11, by inserting before line 16, the
35 following:
36 "Sec. . Section 279.13, Code 2003, is amended
37 by adding the following new subsection:
38 NEW SUBSECTION. 4. Notwithstanding the other
39 provisions of this section, a temporary contract may
40 be issued to a teacher to fill a vacancy created by a
41 leave of absence in accordance with the provisions of
42 section 29A.28, which contract shall automatically
43 terminate upon return from military leave of the
44 former incumbent of the teaching position and which
45 contract shall not be subject to the provisions of
46 sections 279.15 through 279.19, or section 279.27. A
47 separate extracurricular contract issued pursuant to
48 section 279.19A to a person issued a temporary
49 contract under this section shall automatically
50 terminate with the termination of the temporary
Page 9

1 contract as required under section 279.19A, subsection
2 8.
3 Sec. . Section 279.23, Code 2003, is amended by
4 adding the following new unnumbered paragraph:

5 NEW UNNUMBERED PARAGRAPH. Notwithstanding the
6 other provisions of this section, a temporary contract
7 may be issued to an administrator to fill a vacancy
8 created by a leave of absence in accordance with the
9 provisions of section 29A.28, which contract shall
10 automatically terminate upon return from military
11 leave of the former incumbent of the administrator
12 position and which contract shall not be subject to
13 the provisions of sections 279.24 and section 279.25."
14 7. Page 12, by inserting after line 20 the
15 following:
16 "Sec. 103. Section 282.18, subsection 3, Code
17 2003, is amended to read as follows:
18 3. In all districts involved with voluntary or
19 court-ordered desegregation, minority and nonminority
20 pupil ratios shall be maintained according to the
21 desegregation plan or order. The superintendent of a
22 district subject to voluntary or court-ordered
23 desegregation may deny a request for transfer under
24 this section if the superintendent finds that
25 enrollment or release of a pupil will adversely affect
26 the district's implementation of the desegregation
27 order or plan, unless the transfer is requested by a
28 pupil whose sibling is already participating in open
29 enrollment to another district, or unless the request
30 for transfer is submitted to the district in a timely
31 manner as required under subsection 2 prior to the
32 adoption of a desegregation plan by the district. If
33 a transfer request would facilitate a voluntary or
34 court-ordered desegregation plan, the district shall
35 give priority to granting the request over other
36 requests.
37 A parent or guardian, whose request has been denied
38 because of a desegregation order or plan, may appeal
39 the decision of the superintendent to the board of the
40 district in which the request was denied. The board
41 may either uphold or overturn the superintendent's
42 decision. A decision of the board to uphold the
43 denial of the request is subject to appeal to the
44 district court in the county in which the primary
45 business office of the district is located. By July
46 1, 2004, the state board of education shall adopt
47 rules establishing guidelines and a review process for
48 school districts that adopt voluntary desegregation
49 plans. The guidelines shall include criteria and
50 standards that school districts must follow when
Page 10

1 developing a voluntary desegregation plan. The
2 department of education shall provide technical
3 assistance to a school district that is seeking to
4 adopt a voluntary desegregation plan. A school

5 district implementing a voluntary desegregation plan
6 prior to July 1, 2004, shall have until July 1, 2006,
7 to comply with guidelines adopted by the state board
8 pursuant to this section.
9 Sec. . Section 282.18, subsection 7, Code 2003,
10 is amended to read as follows:
11 7. A pupil participating in open enrollment shall
12 be counted, for state school foundation aid purposes,
13 in the pupil's district of residence. A pupil's
14 residence, for purposes of this section, means a
15 residence under section 282.1. The board of directors
16 of the district of residence shall pay to the
17 receiving district the state cost per pupil for the
18 previous school year, plus any moneys received for the
19 pupil as a result of the non-English speaking
20 weighting under section 280.4, subsection 3, for the
21 previous school year multiplied by the state cost per
22 pupil for the previous year. The district of
23 residence shall also transmit the phase III moneys
24 allocated to the district for the previous year for
25 the full-time equivalent attendance of the pupil, who
26 is the subject of the request, to the receiving
27 district specified in the request for transfer. If
28 the pupil participating in open enrollment is also an
29 eligible pupil under chapter 261C, the receiving
30 district shall pay the tuition reimbursement amount to
31 an eligible postsecondary institution as provided in
32 section 261C.6."
33 8. Page 16, line 1, by striking the words
34 "teacher's supervisor" and inserting the following:
35 "teachers's supervisor and the".
36 9. Page 18, by striking lines 25 and 26 and
37 inserting the following:
38 "Sec. . Section 284.11, subsections 1 and 6,
39 Code 2003, are amended to read as follows:
40 1. It is the intent of the general assembly to
41 create a statewide team-based variable pay program to
42 reward individual attendance centers for improvement
43 in student achievement. A pilot program is
44 established to give Iowa school districts with one or
45 more participating attendance centers the opportunity
46 to explore and demonstrate successful methods to
47 implement team-based variable pay and to compare
48 student achievement gains in school districts
49 participating in the program with gains in school
50 districts similar in nature that are not participating
Page 11

1 in the program. The department shall develop and
2 administer the pilot program and shall provide
3 technical assistance in the areas of goal setting and
4 student assessments to school districts approved to

5 participate in the pilot program. Preference shall be
6 given to school districts that were previously
7 approved to participate in a pilot program
8 administered by the department in accordance with this
9 section. Each school district approved by the
10 department to participate in the pilot program shall
11 administer valid and reliable standardized assessments
12 at the beginning and end of the school year to
13 demonstrate growth in student achievement.
14 6. A district electing to initiate a team-based
15 variable pay plan according to this section during the
16 school year beginning July 1, 2001 2003, shall notify
17 the department of its election in writing no later
18 than August 1, 2001 2003. The department shall
19 certify the school district plan by October 1, 2001
20 2003."
21 10. Page 18, by inserting before line 27 the
22 following:
23 "Sec. . Section 285.5, subsection 9, Code 2003,
24 is amended to read as follows:
25 9. All bus drivers, except substitute and part-
26 time bus drivers, for school-owned equipment shall be
27 under contract with the board. The director of the
28 department of education shall prepare a uniform
29 contract containing provision not in conflict with
30 this chapter which shall be used by all school boards
31 in contracting with drivers of school-owned vehicles."
32 11. Page 19, by inserting after line 7 the
33 following:
34 "Sec. . Section 294A.1, unnumbered paragraph 1,
35 Code 2003, is amended to read as follows:
36 The purpose of this chapter is to promote
37 excellence in education. In order to maintain and
38 advance the educational excellence in the state of
39 Iowa, this chapter establishes the Iowa educational
40 excellence program. The program shall consist of
41 three two major phases addressing the following:
42 Sec. . Section 294A.1, subsection 3, Code 2003,
43 is amended by striking the subsection.
44 Sec. . Section 294A.3, unnumbered paragraph 2,
45 Code 2003, is amended by striking the unnumbered
46 paragraph.
47 Sec. . Section 294A.22, unnumbered paragraph 3,
48 Code 2003, is amended to read as follows:
49 Payments made to a teacher by a school district or
50 area education agency under this chapter are wages for
Page 12

1 the purposes of chapter 91A except for payments made
2 under an approved phase III plan where a modified
3 payment plan has either been mutually agreed upon by
4 the board of directors and the certified bargaining

5 representative for certificated employees or for a
6 district that is not organized for collective
7 bargaining purposes where a modified payment plan is
8 adopted by the board."
9 12. Page 19, by striking lines 8 through 32.
10 13. Page 19, by inserting before line 33 the
11 following:
12 "Sec. . Section 321.375, subsection 2,
13 unnumbered paragraph 1, Code 2003, is amended to read
14 as follows:
15 Any of the following shall constitute grounds for a
16 school bus driver's immediate suspension from duties,
17 pending a termination hearing by the board of
18 directors of a public school district or the
19 authorities in charge in a nonpublic school if the bus
20 driver is under contract, pending confirmation of the
21 grounds by the school district or accredited nonpublic
22 school if the bus driver is a part-time or substitute
23 bus driver who is not under contract, or pending
24 confirmation of the grounds by the employer of the
25 school bus driver if the employer is not a school
26 district or accredited nonpublic school by the board:
27 Sec. . Section 321.375, subsection 2, Code
28 2003, is amended by adding the following new
29 paragraph:
30 NEW PARAGRAPH. e. A change in circumstances
31 indicating that the driver is no longer physically or
32 mentally competent. For the purpose of an insulin-
33 dependent diabetic, a change in circumstances includes
34 the following:
35 (1) Results of a glycosylated hemoglobin test
36 indicating values less than 6.0 percent or greater
37 than 9.5 percent unless accompanied by the required
38 medical opinion that the event was incidental and not
39 an indication of failure to control glucose levels.
40 (2) Results of self-monitoring indicate glucose
41 levels less than one hundred milligrams per deciliter
42 or greater than three hundred milligrams per
43 deciliter, until self-monitoring indicates compliance
44 with specifications.
45 (3) Experiencing a loss of consciousness or
46 control relating to diabetes.
47 (4) Failing to maintain or falsifying the required
48 reports.
49 Sec. . Section 321.375, Code 2003, is amended
50 by adding the following new subsection:
Page 13

1 NEW SUBSECTION. 3. a. Notwithstanding any
2 provision to the contrary, an insulin-dependent
3 diabetic may qualify under subsection 1, paragraph
4 "d", for purposes of operating a school bus under this

5 section if a person identified by federal or state law
6 as authorized to perform physical examinations
7 annually provides a signed statement indicating that
8 based upon an annual physical examination the
9 individual is physically able to perform the required
10 functions despite insulin dependency. The insulin-
11 dependent diabetic shall not qualify to operate a
12 school bus if, at minimum, the individual results of a
13 glycosylated hemoglobin test indicate values less than
14 6.0 percent or greater than 9.5 percent on other than
15 an incidental basis and not as a result of failure to
16 control glucose levels. The statement shall also
17 indicate that within the past three years the insulin-
18 dependent diabetic has completed instruction to
19 address diabetes management and driving safety, signs
20 and symptoms of hypoglycemia and hyperglycemia, and
21 what procedures must be followed if complications
22 arise.
23 b. A school district or authorities in charge of
24 the nonpublic school that employs or otherwise secures
25 the services of an individual with an authorization
26 who is an insulin-dependent diabetic shall monitor the
27 insulin-dependent diabetic to determine that they are
28 in compliance with all of the following:
29 (1) Self-monitoring blood glucose and
30 demonstrating conformance with requirements, more than
31 one hundred milligrams per deciliter and less than
32 three hundred milligrams per deciliter, within one
33 hour before driving a school bus and approximately
34 every four hours while on duty using a United States
35 food and drug administration approved device.
36 (2) Reporting immediately to the school district
37 or school any failure to comply with specific glucose
38 level requirements as listed in subparagraph (1) or
39 loss of consciousness or control.
40 (3) Carrying a source of readily absorbable, fast-
41 acting glucose while on duty.
42 (4) Maintaining a daily log of all glucose test
43 results for the previous six-month period and
44 providing copies to the school district or school, the
45 examining physician, and the department of education
46 upon request.
47 (5) Submitting all required department of
48 education forms within the prescribed timelines."
49 14. Page 20, by inserting after line 7 the
50 following:
Page 14

1 "Sec. . Section 331.909, subsection 2, Code
2 2003, is amended to read as follows:
3 2. The activities of a multidisciplinary community
4 services team shall not duplicate the activities of a

5 multidisciplinary team for child abuse under section
6 235A.13, dependent adult abuse activities under
7 section 235B.6, area education agency activities under
8 section 294A.14, or child victim services provided
9 under section 915.35.
10 Sec. . Section 614.1, subsection 12, Code 2003,
11 is amended to read as follows:
12 12. SEXUAL ABUSE OR SEXUAL EXPLOITATION BY A
13 COUNSELOR, OR THERAPIST, OR SCHOOL EMPLOYEE. An
14 action for damages for injury suffered as a result of
15 sexual abuse, as defined in section 709.1, by a
16 counselor, or therapist, or school employee, as
17 defined in section 709.15, or as a result of sexual
18 exploitation by a counselor, or therapist, or school
19 employee shall be brought within five years of the
20 date the victim was last treated by the counselor or
21 therapist, or within five years of the date the victim
22 was last enrolled in or attended the school.
23 Sec. . Section 692A.1, subsection 10, Code
24 2003, is amended to read as follows:
25 10. "Sexual exploitation" means sexual
26 exploitation by a counselor, or therapist, or school
27 employee under section 709.15.
28 Sec. . Section 702.11, subsection 2, paragraph
29 d, Code 2003, is amended to read as follows:
30 d. Sexual exploitation by a counselor, or
31 therapist, or school employee in violation of section
32 709.15.
33 Sec. . Section 709.15, Code 2003, is amended to
34 read as follows:
35 709.15 SEXUAL EXPLOITATION BY A COUNSELOR, OR
36 THERAPIST, OR SCHOOL EMPLOYEE.
37 1. As used in this section:
38 a. "Counselor or therapist" means a physician,
39 psychologist, nurse, professional counselor, social
40 worker, marriage or family therapist, alcohol or drug
41 counselor, member of the clergy, or any other person,
42 whether or not licensed or registered by the state,
43 who provides or purports to provide mental health
44 services.
45 b. "Emotionally dependent" means that the nature
46 of the patient's or client's or former patient's or
47 client's emotional condition or the nature of the
48 treatment provided by the counselor or therapist is
49 such that the counselor or therapist knows or has
50 reason to know that the patient or client or former
Page 15

1 patient or client is significantly impaired in the
2 ability to withhold consent to sexual conduct, as
3 described in paragraph "f" subsection 2, by the
4 counselor or therapist.

5 For the purposes of paragraph "f" subsection 2, a
6 former patient or client is presumed to be emotionally
7 dependent for one year following the termination of
8 the provision of mental health services.
9 c. "Former patient or client" means a person who
10 received mental health services from the counselor or
11 therapist.
12 d. "Mental health service" means the treatment,
13 assessment, or counseling of another person for a
14 cognitive, behavioral, emotional, mental, or social
15 dysfunction, including an intrapersonal or
16 interpersonal dysfunction.
17 e. "Patient or client" means a person who receives
18 mental health services from the counselor or
19 therapist.
20 f. "School employee" means a practitioner as
21 defined in section 272.1.
22 g. "Student" means a person who is currently
23 enrolled in or attending a public or nonpublic
24 elementary or secondary school, or who was a student
25 enrolled in or attended a public or nonpublic
26 elementary or secondary school within thirty days of
27 any violation of subsection 3.
28 f. 2. "Sexual Sexual exploitation by a counse lor
29 or therapist" therapist occurs when any of the
30 following are found:
31 (1) a. A pattern or practice or scheme of conduct
32 to engage in any of the conduct described in
33 subparagraph (2) or (3) paragraph "b" or "c".
34 (2) b. Any sexual conduct, with an emotionally
35 dependent patient or client or emotionally dependent
36 former patient or client for the purpose of arousing
37 or satisfying the sexual desires of the counselor or
38 therapist or the emotionally dependent patient or
39 client or emotionally dependent former patient or
40 client, which includes but is not limited to the
41 following: kissing; touching of the clothed or
42 unclothed inner thigh, breast, groin, buttock, anus,
43 pubes, or genitals; or a sex act as defined in section
44 702.17.
45 (3) c. Any sexual conduct with a patient or client
46 or former patient or client within one year of the
47 termination of the provision of mental health services
48 by the counselor or therapist for the purpose of
49 arousing or satisfying the sexual desires of the
50 counselor or therapist or the patient or client or
Page 16

1 former patient or client which includes but is not
2 limited to the following: kissing; touching of the
3 clothed or unclothed inner thigh, breast, groin,
4 buttock, anus, pubes, or genitals; or a sex act as

5 defined in section 702.17.
6 "Sexual Sexual exploitation by a counselor or
7 therapist" therapist does not include touching which
8 is part of a necessary examination or treatment
9 provided a patient or client by a counselor or
10 therapist acting within the scope of the practice or
11 employment in which the counselor or therapist is
12 engaged.
13 3. Sexual exploitation by a school employee occurs
14 when any of the following are found:
15 a. A pattern or practice or scheme of conduct to
16 engage in any of the conduct described in paragraph
17 "b".
18 b. Any sexual conduct with a student for the
19 purpose of arousing or satisfying the sexual desires
20 of the school employee or the student. Sexual conduct
21 includes but is not limited to the following:
22 kissing; touching of the clothed or unclothed inner
23 thigh, breast, groin, buttock, anus, pubes, or
24 genitals; or a sex act as defined in section 702.17.
25 Sexual exploitation by a school employee does not
26 include touching that is necessary in the performance
27 of the school employee's duties while acting within
28 the scope of employment.
29 2. 4. a. A counselor or therapist who commits
30 sexual exploitation in violation of subsection 1 2,
31 paragraph "f" "a", subparagraph (1), commits a class
32 "D" felony.
33 3. b. A counselor or therapist who commits sexual
34 exploitation in violation of subsection 1 2, paragraph
35 "f" "b", subparagraph (2), commits an aggravated
36 misdemeanor.
37 4. c. A counselor or therapist who commits sexual
38 exploitation in violation of subsection 1 2, paragraph
39 "f" "c", subparagraph (3), commits a serious
40 misdemeanor. In lieu of the sentence provided for
41 under section 903.1, subsection 1, paragraph "b", the
42 offender may be required to attend a sexual abuser
43 treatment program.
44 5. a. A school employee who commits sexual
45 exploitation in violation of subsection 3, paragraph
46 "a", commits a class "D" felony.
47 b. A school employee who commits sexual
48 exploitation in violation of subsection 3, paragraph
49 "b", commits an aggravated misdemeanor.
50 Sec. . Section 802.2A, subsection 2, Code 2003,
Page 17

1 is amended to read as follows:
2 2. An indictment or information for sexual
3 exploitation by a counselor, or therapist, or school
4 employee under section 709.15 committed on or with a

5 person who is under the age of eighteen shall be found
6 within ten years after the person upon whom the
7 offense is committed attains eighteen years of age.
8 An information or indictment for any other sexual
9 exploitation shall be found within ten years of the
10 date the victim was last treated by the counselor or
11 therapist, or within ten years of the date the victim
12 was enrolled in or attended the school.
13 Sec. . Section 903B.1, subsection 4, paragraph
14 h, Code 2003, is amended to read as follows:
15 h. Sexual exploitation by a counselor in violation
16 of section 709.15."
17 15. Page 21, by inserting after line 25 the
18 following:
19 "Sec. 104. READING INSTRUCTION PILOT PROGRAM.
20 1. Recognizing the state's goals of assisting
21 children to grow, develop, and learn to their fullest
22 extent, empowering students in grades kindergarten
23 though eight to become good readers, and supporting
24 student achievement and overall academic performance,
25 and recognizing the importance of instructional
26 methodologies and strategies for reading, a reading
27 instruction pilot program is established. The
28 objective of the program shall be to improve student
29 reading achievement and provide interventions needed
30 to assist struggling readers by increasing teacher
31 capacity to provide reading instruction.
32 2. The program shall be established for the school
33 year beginning July 1, 2003, in a school district with
34 an enrollment of at least six hundred pupils in grades
35 kindergarten through twelve, or in two or more school
36 districts, each with enrollments of less than six
37 hundred pupils in grades kindergarten through twelve,
38 jointly participating in the program and with a
39 combined enrollment of at least six hundred pupils in
40 grades kindergarten through twelve. The program shall
41 involve the implementation of systematic intensive
42 phonics reading instruction and direct instruction for
43 students up to and including the eighth grade. The
44 program shall meet the standards set forth by the
45 United States department of education's national
46 institute for literacy, which has identified the five
47 areas of successful reading instruction as phonemic
48 awareness, phonics, fluency, vocabulary, and text
49 comprehension.
50 3. The program shall offer training and ongoing
Page 18

1 support for participating teachers and provide
2 continuous formal and informal student assessment to
3 demonstrate results. Teachers in the school district
4 or group of districts selected shall, prior to the

5 beginning of classes for the school year beginning
6 July 1, 2003, participate in an in-service training
7 program to prepare for implementation of the program.
8 The in-service training shall include education and
9 training in curriculum content and methods of
10 instruction relating to systematic intensive phonics
11 reading instruction and direct instruction, student
12 assessment procedures and techniques, and effective
13 interventions to address specific reading
14 difficulties, and shall continue on an ongoing basis
15 throughout the school year.
16 4. The program shall be administered by the
17 department of education. The department shall provide
18 notice to school districts regarding the existence of
19 the program, shall provide technical assistance
20 regarding application submission and information
21 regarding program objectives and operation, and shall
22 provide program implementation assistance to the
23 school district or group of districts selected. A
24 school district or group of districts wishing to
25 participate shall submit an application to the
26 department and the department shall, before July 1,
27 2003, select a school district or group of districts
28 for participation in the pilot program. In the
29 application the school district or group of districts
30 shall propose a districtwide plan for effective
31 reading interventions involving an approach to
32 beginning reading instruction and boosting the reading
33 levels of students using systematic intensive phonics
34 instruction and direct instruction. A school district
35 submitting an application shall also indicate a
36 willingness to provide faculty committed to
37 implementation of the program and participation in the
38 in-service training, and shall include a plan for
39 conducting pretesting and posttesting to demonstrate
40 results. The department shall select for
41 participation a school district or group of districts,
42 after consultation with the chairpersons and ranking
43 members of the senate and house standing committees on
44 education, which demonstrates an ability to implement
45 program requirements and adhere to the national
46 institute for literacy standards.
47 5. Upon completion of the pilot program, the
48 school district shall submit a report to the
49 department regarding the impact of the program on
50 student academic achievement. The department shall
Page 19

1 prepare a report summarizing these results, and
2 comparing them to student academic achievement gains
3 in similar school districts that did not participate
4 in the program. The department report shall include

5 recommendations for statewide implementation of the
6 pilot program, and shall be submitted to the
7 chairpersons and ranking members of the senate and
8 house standing committees on education by December 15,
9 2004.
10 6. The establishment of the program pursuant to
11 this section shall be contingent upon an appropriation
12 for purposes of the program for the fiscal year
13 beginning July 1, 2003, and ending June 30, 2004.
14 Funds provided to the school district or group of
15 districts selected shall be used by the district or
16 group of districts to provide stipends and travel
17 expense payments during the summer teacher in-service
18 training, ongoing training and support during the
19 school year, expense payments relating to data
20 collection, and payments for the costs of reading
21 instruction relating to the program."
22 16. Page 21, by striking line 26 and inserting
23 the following:
24 "Sec. . Sections 294A.12 through 294A.20, and
25 294A.23, Code 2003, are".
26 17. Page 21, by inserting after line 27 the
27 following:
28 "Sec. . EFFECTIVE DATES.
29 1. Section 101 of this Act, relating to the repeal
30 of chapter 256D, being deemed of immediate importance
31 takes effect upon enactment.
32 2. Section 102 of this Act, relating to school
33 reorganization incentives, being deemed of immediate
34 importance, takes effect upon enactment.
35 3. Section 104 of this Act, relating to a reading
36 instruction pilot program, being deemed of immediate
37 importance, takes effect upon enactment.
38 Sec. . EFFECTIVE AND RETROACTIVE APPLICABILITY
39 PROVISION. Section 103 of this Act, relating to a
40 request for open enrollment submitted to a district
41 prior to the district's adoption of a desegregation
42 plan, being deemed of immediate importance, takes
43 effect upon enactment and applies retroactively to
44 July 1, 2002, for open enrollment transfer requests
45 received by a school district on or after July 1,
46 2002."
47 18. Title page, by striking line 2, and inserting
48 the following: "education, the board of educational
49 examiners, the state board of regents and its
50 universities, and school boards, and to property tax
Page 20

1 school reorganization incentives; requiring the
2 establishment of a reading instruction pilot program;
3 and including effective and retroactive applicability
4 date provisions."

5 19. By renumbering, redesignating, and correcting
6 internal references as necessary.

Wise of Lee offered the following amendment H-1603, to the
Senate amendment H-1578, filed by him from the floor and moved its
adoption:

H-1603

1 Amend the Senate amendment, H-1578, to House File
2 549, as amended, passed, and reprinted by the House,
3 as follows:
4 1. Page 11, by striking line 24 and inserting the
5 following: "is amended by striking the subsection."
6 2. Page 11, by striking lines 25 through 31.
7 3. Page 12, by striking lines 20 through 26 and
8 inserting the following: "driver is employed by the
9 school district or accredited nonpublic school, or
10 pending confirmation of the carrier who employs the
11 bus driver and who provides transportation under a
12 contract with the public school under section 285.5:"

Amendment H-1603 lost.

Gipp of Winneshiek asked and received unanimous consent that
House File 549 be deferred and that the bill retain its place on the
calendar. (Senate amendment H-1578 pending)

IMMEDIATE MESSAGES

Gipp of Winneshiek asked and received unanimous consent that
the following bills be immediately messaged to the Senate: House
Files 543, 595 and 685.

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
May 1, 2003, passed the following bill in which the concurrence of the Senate was
asked:
House File 674, a bill for an act relating to income tax deductions and exemptions
for military service personnel and organizations, and including effective and
applicability date provisions.

Also: That the Senate has on May, 1, 2003, passed the following bill in which the
concurrence of the Senate was asked:

House File 676, a bill for an act establishing a veterans trust fund under the control
of the commission of veterans affairs and providing a contingent appropriation.

Also: That the Senate has on May 1, 2003, passed the following bill in which the
concurrence of the Senate was asked:

House File 689, a bill for an act relating to ethanol blended gasoline, by providing
for tax credits and for their retroactive applicability, providing for refunds, and
providing for an effective date.

MICHAEL E. MARSHALL, Secretary

Appropriations Calendar

House File 699, a bill for an act relating to Iowa agricultural
industry finance corporations, by providing for the assignment of an
Iowa agricultural industry finance loan, and providing an effective
date, was taken up for consideration.

SENATE FILE 459 SUBSTITUTED FOR HOUSE FILE 699

Horbach of Tama asked and received unanimous consent to
substitute Senate File 459 for House File 699.

Senate File 459, a bill for an act relating to Iowa agricultural
industry finance corporations, by providing for the assignment of an
Iowa agricultural industry finance loan, and providing an effective
date, was taken up for consideration.

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. 459)

The ayes were, 96:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Carroll Chambers Cohoon Dandekar
Davitt De Boef Dennis Dix
Dolecheck Drake Eichhorn Elgin
Fallon Foege Ford Freeman
Frevert Gaskill Gipp Granzow
Greimann Greiner Hahn Hansen
Hanson Heaton Heddens Hoffman
Hogg Horbach Hunter Huseman
Huser Hutter Jenkins Jochum
Jones Klemme Kramer Kuhn
Kurtenbach Lalk Lensing Lukan
Lykam Maddox Mascher McCarthy
Mertz Miller Murphy Myers
Oldson Olson, D. Osterhaus Paulsen
Petersen Quirk Raecker Rants, Spkr.
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 Jacobs,
Presiding

 


The nays were, none.

Absent or not voting, 3:
Bukta Connors Manternach

 


Under the provision of Rule 76, conflict of interest, S. Olson of
Clinton refrained from voting.

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

HOUSE FILE 699 WITHDRAWN

Horbach of Tama asked and received unanimous consent to
withdraw House File 699 from further consideration by the House.

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
Senate File 459 be immediately messaged to the Senate.

ADOPTION OF HOUSE CONCURRENT RESOLUTION 21

Lukan of Dubuque called up for consideration House Concurrent
Resolution 21, a concurrent resolution relating to federal funding
for fire and emergency services and homeland security costs, and

moved its adoption.

The motion prevailed and the resolution was adopted.

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
House Concurrent Resolution 21 be immediately messaged to the
Senate.

The House resumed consideration of the Senate amendment H-
1578 to House File 549, previously deferred and found on pages
1762 through 1782 of the House Journal.

Winckler of Scott asked and received unanimous consent to
withdraw amendment H-1611, to the Senate amendment H-1578,
filed by her from the floor.

Chambers of O’Brien moved that the House concur in the Senate
amendment H-1578.

A non-record roll call was requested.

The ayes were 47, nays 38.

The House concurred and Senate amendment H-1578 was adopted.

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

On the question "Shall the bill pass?" (H.F. 549)

The ayes were, 97:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Carroll Chambers Cohoon Dandekar
Davitt De Boef Dennis Dix
Dolecheck Drake Eichhorn Elgin
Fallon Foege Ford Freeman
Gaskill Gipp Granzow Greimann
Greiner Hahn Hansen Hanson
Heaton Heddens Hoffman Hogg
Horbach Hunter Huseman Huser
Hutter Jenkins Jochum Jones
Klemme Kramer Kuhn Kurtenbach
Lalk Lensing Lukan Lykam
Maddox Manternach Mascher McCarthy
Mertz Miller Murphy Myers
Oldson Olson, D. Olson, S. Osterhaus
Paulsen Petersen Quirk Raecker
Rants, Spkr. 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
Jacobs,
Presiding

 


The nays were, 1:
Frevert

 


Absent or not voting, 2:
Bukta Connors

 


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

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
May 1, 2003, adopted the following resolution in which the concurrence of the House is
asked:

Senate Concurrent Resolution 17, a concurrent resolution supporting the widening,
improvement, and enhancement of U.S. Highway 30 across central Iowa and
requesting federal assistance.

Also: That the Senate has on May 1, 2003, adopted the following resolution in
which the concurrence of the House is asked:
Senate Concurrent Resolution 19, a concurrent resolution relating to federal
funding for fire and emergency services and homeland security costs.

Also: That the Senate has on May 1, 2003, adopted the following resolution in
which the concurrence of the House is asked:


Senate Concurrent Resolution 20, a concurrent resolution recognizing Richard and
Joyce Lynch, the first recipients of the Good Neighbor Award presented by the
Department of Agriculture and Land Stewardship.

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
House File 549 be immediately messaged to the Senate.

Ways and Means Calendar

Senate File 441, a bill for an act relating to the transfer of certain
property-related tax credits and including effective and retraoactive
applicability date provisions, with report of committee recommending
passage, was taken up for consideration.

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

On the question "Shall the bill pass?" (S.F. 441)

The ayes were, 98:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Carroll Chambers Cohoon Dandekar
Davitt De Boef Dennis Dix
Dolecheck Drake Eichhorn Elgin
Fallon Foege Ford Freeman
Frevert Gaskill Gipp Granzow
Greimann Greiner Hahn Hansen
Hanson Heaton Heddens Hoffman
Hogg Horbach Hunter Huseman
Huser Hutter Jenkins Jochum
Jones Klemme Kramer Kuhn
Kurtenbach Lalk Lensing Lukan
Lykam Maddox Manternach Mascher
McCarthy Mertz Miller Murphy
Myers Oldson Olson, D. Olson, S.
Osterhaus Paulsen Petersen Quirk
Raecker Rants, Spkr. 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 Jacobs,
Presiding

 


The nays were, none.

Absent or not voting, 2:
Bukta Connors

 


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 441 be immediately messaged to the Senate.

Speaker Rants in the chair at 5:59 p.m.

ADOPTION OF HOUSE RESOLUTION 61

Heaton of Henry called up for consideration House Resolution
61, a resolution relating to the shortage of nursing home
administrators and requesting the State Board of Examiners for
Nursing Home Administrators to make recommendations for
addressing the shortage, and moved its adoption.

The motion prevailed and the resolution was adopted.

MOTION TO RECONSIDER PREVAILED

Gipp of Winneshiek called up for consideration the motion to
reconsider House File 701, filed on April 30, 2003, and moved to
reconsider the vote by which House File 701, a bill for an act relating
to the individual income tax by reducing the tax rates and number of
tax brackets and including a contingent effective and applicability
date provision, failed to pass the House on April 30, 2003.

The motion prevailed and the House reconsidered House File 701.


J.K. Van Fossen of Scott 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. 701)

The ayes were, 51:
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 Lukan Maddox Manternach
Olson, S. Raecker Rasmussen Roberts
Sands Schickel Tjepkes Tymeson
Upmeyer Van Engelenhoven Van Fossen, J.K. Van Fossen, J.R.
Watts Wilderdyke Mr. Speaker
Rants

 


The nays were, 47:
Bell Berry Cohoon Dandekar
Davitt Fallon Foege Ford
Frevert Gaskill Greimann Heddens
Hogg Hunter Huser Jochum
Kuhn Lalk Lensing Lykam
Mascher McCarthy Mertz Miller
Murphy Myers Oldson Olson, D.
Osterhaus Paulsen Petersen Quirk
Rayhons Reasoner Shoultz Smith
Stevens Struyk Swaim Taylor, D.
Taylor, T. Thomas Wendt Whitaker
Whitead Winckler Wise

 


Absent or not voting, 2:
Bukta Connors

 


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
House File 701 be immediately messaged to the Senate.

MESSAGE FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker: I am directed to inform your honorable body that the Senate has on
May 1, 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 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

The House stood at ease at 6:14 p.m., until the fall of the gavel.

The House resumed session at 7:15 p.m., Speaker Rants in the
chair.

QUORUM CALL

A non-record roll call was requested to determine that a quorum
was present. The vote revealed eighty-four members present, sixteen
absent.

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
May 1, 2003, passed the following bill in which the concurrence of the House is asked:

Senate File 458, a bill for an act relating to public expenditure and regulatory
matters, compensating public employees, making and reducing appropriations,
providing for related matters, making penalties applicable, and providing effective
dates.

Also: That the Senate has on May 1, 2003, adopted the following resolution in
which the concurrence of the House is asked:
Senate Concurrent Resolution 21, a senate concurrent resolution to provide for
adjournment sine die.

MICHAEL E. MARSHALL, Secretary

SENATE AMENDMENT CONSIDERED

Huseman of Cherokee called up for consideration 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, amended
by the House, further amended by the Senate and moved that the
House concur in the following Senate amendment H-1613 to the
House amendment:

H-1613

1 Amend the House amendment, S-3347, to Senate File
2 452, as amended, passed, and reprinted by the Senate,
3 as follows:
4 1. Page 1, by striking lines 45 and 46.
5 2. Page 2, by striking line 8 and inserting the
6 following:
7 " $ 350,000
8 3. Page 2, by striking lines 9 through 35.

The motion prevailed and the House concurred in the Senate
amendment H-1613, to the House amendment.

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

On the question "Shall the bill pass?" (S.F. 452)

The ayes were, 97:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Carroll Chambers Cohoon 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 Hunter Huseman Huser
Hutter Jacobs Jenkins Jochum
Jones Klemme Kramer Kuhn
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 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, 1:
Fallon

 


Absent or not voting, 2:
Bukta Connors

 


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 452 be immediately messaged to the Senate.

SENATE MESSAGE CONSIDERED

Senate File 458, a bill for an act relating to public expenditure
and regulatory matters, compensating public employees, making and
reducing appropriations, modifying sales and use taxes, modifying
the investment tax credits and premium taxes on mutual insurance
associations, providing for related matters, making penalties
applicable, and providing effective dates.

Read first time and passed on file.

The House resumed consideration of House File 700, a bill for an
act relating to public expenditure and regulatory matters,
compensating public employees, making and reducing appropriations,

providing for related matters, making penalties applicable, and
providing effective dates, previously deferred and found on pages
1694 through 1757 of the House Journal.

Dix of Butler offered the following amendment H-1612 filed by him
from the floor and moved its adoption:

H-1612

1 Amend House File 700 as follows:
2 1. By striking everything after the enacting
3 clause and inserting the following:
4 "DIVISION I
5 MH/MR/DD ALLOWED GROWTH
6 Section 1. Section 426B.5, subsection 2, paragraph
7 d, subparagraphs (1) and (6), Code 2003, are amended
8 to read as follows:
9 (1) A county must apply to the board for
10 assistance from the risk pool on or before April 1
11 January 25 to cover an unanticipated net expenditure
12 amount in excess of the county's current fiscal year
13 budgeted net expenditure amount for the county's
14 services fund. The risk pool board shall make its
15 final decisions on or before February 25 regarding
16 acceptance or rejection of the applications for
17 assistance and the total amount accepted shall be
18 considered obligated. For purposes of applying for
19 risk pool assistance and for repaying unused risk pool
20 assistance, the current fiscal year budgeted net
21 expenditure amount shall be deemed to be the higher of
22 either the budgeted net expenditure amount in the
23 management plan approved under section 331.439 for the
24 fiscal year in which the application is made or the
25 prior fiscal year's net expenditure amount.
26 (6) The total amount of risk pool assistance shall
27 be limited to the amount available in the risk pool
28 for a fiscal year. If the total amount of eligible
29 assistance exceeds the amount available in the risk
30 pool the amount of assistance paid shall be prorated
31 among the counties eligible for assistance. Moneys
32 remaining unexpended or unobligated in the risk pool
33 at the close of a fiscal year shall remain available
34 for distribution in the succeeding fiscal year
35 following the risk pool board's decisions made
36 pursuant to subparagraph (1) shall be distributed to
37 the counties eligible to receive funding from the
38 allowed growth factor adjustment appropriation for the
39 fiscal year using the distribution methodology
40 applicable to that appropriation.
41 Sec. 2. COUNTY MENTAL HEALTH, MENTAL RETARDATION,

42 AND DEVELOPMENTAL DISABILITIES ALLOWED GROWTH FACTOR
43 ADJUSTMENT AND ALLOCATIONS - FISCAL YEAR 2004-2005.
44 1. There is appropriated from the general fund of
45 the state to the department of human services for the
46 fiscal year beginning July 1, 2004, and ending June
47 30, 2005, the following amount, or so much thereof as
48 is necessary, to be used for the purpose designated:
49 For distribution to counties of the county mental
50 health, mental retardation, and developmental

Page 2

1 disabilities allowed growth factor adjustment, as
2 provided in this section in lieu of the provisions of
3 section 331.438, subsection 2, and section 331.439,
4 subsection 3, and chapter 426B:
5 $ 23,738,749
6 2. The funding appropriated in this section is the
7 allowed growth factor adjustment for fiscal year 2004-
8 2005, and is allocated as follows:
9 a. For distribution as provided by law:
10 $ 21,738,749
11 b. For deposit in the risk pool created in the
12 property tax relief fund and for distribution in
13 accordance with section 426B.5, subsection 2:
14 $ 2,000,000
15 Sec. 3. 2002 Iowa Acts, chapter 1175, section 104,
16 subsections 2, 4 and 5, as amended by 2003 Iowa Acts,
17 House File 667, section 41, are amended to read as
18 follows:
19 2. The following formula amounts shall be utilized
20 only to calculate preliminary distribution amounts for
21 fiscal year 2003-2004 under this section by applying
22 the indicated formula provisions to the formula
23 amounts and producing a preliminary distribution total
24 for each county:
25 a. For calculation of an allowed growth factor
26 adjustment amount for each county in accordance with
27 the formula in section 331.438, subsection 2,
28 paragraph "b":
29 $ 12,000,000
30 b. For calculation of a distribution amount for
31 eligible counties from the per capita expenditure
32 target pool created in the property tax relief fund in
33 accordance with the requirements in section 426B.5,
34 subsection 1:
35 $ 12,492,712
36 14,492,000
37 c. For calculation of a distribution amount for
38 counties from the mental health and developmental
39 disabilities (MH/DD) community services fund in
40 accordance with the formula provided in the

41 appropriation made for the MH/DD community services
42 fund for the fiscal year beginning July 1, 2003:
43 $ 17,727,890
44 4. After applying the applicable statutory
45 distribution formulas to the amounts indicated in
46 subsection 2 for purposes to produce preliminary
47 distribution totals, the department of human services
48 shall apply a withholding factor to adjust an eligible
49 individual county's preliminary distribution total.
50 An ending balance percentage for each county shall be

Page 3

1 determined by expressing the county's ending balance
2 on a modified accrual basis under generally accepted
3 accounting principles for the fiscal year beginning
4 July 1, 2002, in the county's mental health, mental
5 retardation, and developmental disabilities services
6 fund created under section 331.424A, as a percentage
7 of the county's gross expenditures from that fund for
8 that fiscal year. The withholding factor for a county
9 shall be the following applicable percent:
10 a. For an ending balance percentage of less than
11 10 percent, a withholding factor of 0 percent. In
12 addition to the county's adjusted distribution total,
13 a county that is subject to this paragraph "a" shall
14 receive an inflation adjustment equal to 2.6 percent
15 of the gross expenditures reported for the county's
16 services fund for that fiscal year.
17 b. For an ending balance percentage of 10 through
18 24 percent, a withholding factor of 25 percent.
19 c. For an ending balance percentage of 25 through
20 34 percent, a withholding factor of 60 percent.
21 d. For an ending balance percentage of 35 through
22 44 percent, a withholding factor of 85 percent.
23 e. d. For an ending balance percentage of 45 35
24 percent or more, a withholding factor of 100 percent.
25 5. The total withholding amounts applied pursuant
26 to subsection 4 shall be equal to a withholding target
27 amount of $7,419,074 and the appropriation enacted by
28 the Eightieth General Assembly, 2003 Session, for the
29 MH/DD community services fund shall be reduced by the
30 amount necessary to attain the withholding target
31 amount $9,418,362. If the department of human
32 services determines that the amount to be withheld in
33 accordance with subsection 4 is not equal to the
34 target withholding amount, the department shall adjust
35 the withholding factors listed in subsection 4 as
36 necessary to achieve the withholding target amount.
37 However, in making such adjustments to the withholding
38 factors, the department shall strive to minimize
39 changes to the withholding factors for those ending

40 balance percentage ranges that are lower than others
41 and shall not adjust the zero withholding factor or
42 the inflation adjustment percentage specified in
43 subsection 4, paragraph "a".
44 DIVISION II
45 STANDING APPROPRIATIONS - REDUCTIONS
46 Sec. 4. GENERAL ASSEMBLY. The appropriations made
47 pursuant to section 2.12 for the expenses of the
48 general assembly and legislative agencies for the
49 fiscal year beginning July 1, 2003, and ending June
50 30, 2004, are reduced by the following amount:

Page 4

1 $ 2,000,000
2 Sec. 5. REBUILD IOWA INFRASTRUCTURE FUND.
3 Notwithstanding section 8.56, subsection 4, there is
4 appropriated from the cash reserve fund to the rebuild
5 Iowa infrastructure fund created in section 8.57 for
6 the fiscal year beginning July 1, 2002, and ending
7 June 30, 2003, the following amount:
8 $ 2,150,000
9 Sec. 6. ENVIRONMENT FIRST FUND. Notwithstanding
10 the amount of the standing appropriation from the
11 rebuild Iowa infrastructure fund under section 8.57A,
12 subsection 4, there is appropriated from the rebuild
13 Iowa infrastructure fund to the environment first
14 fund, in lieu of the appropriation made in section
15 8.57A, for the fiscal year beginning July 1, 2002, and
16 ending June 30, 2003, the following amount:
17 $ 18,445,000
18 Sec. 7. AT-RISK CHILDREN PROGRAMS.
19 Notwithstanding the standing appropriation in section
20 279.51, subsection 1, the amount appropriated from the
21 general fund of the state under section 279.51,
22 subsection 1, to the department of education for the
23 fiscal year beginning July 1, 2003, and ending June
24 30, 2004, is reduced by the following amount:
25 $ 1,000,000
26 The amount of the reduction in this section shall
27 be prorated among the programs specified in section
28 279.51, subsection 1, paragraphs "a", "b", and "c".
29 Sec. 8. PUBLIC TRANSIT ASSISTANCE APPROPRIATION.
30 Notwithstanding section 312.2, subsection 14, the
31 amount appropriated from the general fund of the state
32 under section 312.2, subsection 14, to the state
33 department of transportation for public transit
34 assistance under chapter 324A for the fiscal year
35 beginning July 1, 2003, and ending June 30, 2004, is
36 reduced by the following amount:
37 $ 1,298,675
38 Sec. 9. Section 294A.25, subsection 1, Code 2003,

39 is amended to read as follows:
40 1. For the fiscal year beginning July 1, 2000
41 2003, and for each succeeding year, there is
42 appropriated from the general fund of the state to the
43 department of education the amount of eighty fifty-six
44 million eight hundred ninety-one thousand three
45 hundred thirty-six dollars to be used to improve
46 teacher salaries. The moneys shall be distributed as
47 provided in this section.
48 Sec. 10. EFFECTIVE DATE. The sections of this
49 division of this Act relating to the appropriations
50 made to the rebuild Iowa infrastructure fund and

Page 5

1 environment first fund for the fiscal year beginning
2 July 1, 2002, being deemed of immediate importance,
3 take effect upon enactment.
4 DIVISION III
5 STANDING APPROPRIATIONS - LIMITATIONS
6 Sec. 11. Notwithstanding the standing
7 appropriations in the following designated sections
8 for the fiscal year beginning July 1, 2003, and ending
9 June 30, 2004, the amounts appropriated from the
10 general fund of the state pursuant to those sections
11 for the following designated purposes shall not exceed
12 the following amounts:
13 1. For compensation of officers and enlisted
14 persons and their expenses while on state active duty
15 as authorized in section 29A.27:
16 $ 432,450
17 2. For payment for nonpublic school transportation
18 under section 285.2:
19 $ 7,799,550
20 If total approved claims for reimbursement for
21 nonpublic school pupil transportation claims exceed
22 the amount appropriated in this section, the
23 department of education shall prorate the amount of
24 each claim.
25 3. For printing cigarette tax stamps under section
26 453A.7:
27 $ 110,055
28 4. For the state's share of the cost of the peace
29 officers' retirement benefits under section 411.20:
30 $ 2,816,189
31 5. For payment of livestock production credit
32 refunds under section 422.121:
33 $ 1,815,735
34 6. For reimbursement for the homestead property
35 tax credit under section 425.1:
36 $105,585,004
37 7. For reimbursement for the agricultural land and

38 family farm tax credits under section 426.1:
39 $ 35,497,624
40 8. For reimbursement for the military service tax
41 credit under section 426A.1A:
42 $ 2,569,712
43 9. For administration expenses of the state
44 unemployment compensation law under chapter 96:
45 $ 450,000
46 10. For payment of certain interest costs due the
47 federal government under the federal Cash Management
48 and Improvement Act under section 421.31:
49 $ 550,000
50 11. For funding the state's deferred compensation

Page 6

1 program established for state employees under section
2 509A.12:
3 $ 56,501
4 Sec. 12. ELDERLY AND DISABLED CREDIT.
5 Notwithstanding the standing appropriation in section
6 425.39, the amount appropriated from the general fund
7 of the state under section 425.39, for the fiscal year
8 beginning July 1, 2003, and ending June 30, 2004, for
9 purposes of implementing the elderly and disabled
10 credit and reimbursement portion of the extraordinary
11 property tax and reimbursement division of chapter
12 425, shall not exceed $16,651,800. The director shall
13 pay, in full, all claims to be paid during the fiscal
14 year beginning July 1, 2003, for reimbursement of rent
15 constituting property taxes paid. If the amount of
16 claims for credit for property taxes due to be paid
17 during the fiscal year beginning July 1, 2003, exceeds
18 the amount remaining after payment to renters, the
19 director of revenue and finance shall prorate the
20 payments to the counties for the property tax credit.
21 In order for the director to carry out the
22 requirements of this section, notwithstanding any
23 provision to the contrary in sections 425.16 through
24 425.39, claims for reimbursement for rent constituting
25 property taxes paid filed before May 1, 2004, shall be
26 eligible to be paid in full during the fiscal year
27 ending June 30, 2004, and those claims filed on or
28 after May 1, 2004, shall be eligible to be paid during
29 the fiscal year beginning July 1, 2004, and the
30 director is not required to make payments to counties
31 for the property tax credit before June 15, 2004.
32 Sec. 13. REDUCTION IN CREDITS NOT APPLICABLE. The
33 provision in section 25B.7 relating to the proration
34 of the property tax credits does not apply with
35 respect to the amount of state reimbursement for
36 property tax credits under this division.

37 DIVISION IV
38 REVENUE ADJUSTMENTS - APPROPRIATIONS
39 Sec. 14. IOWA ECONOMIC EMERGENCY AND RESERVE FUNDS
40 - EARNINGS. Notwithstanding section 8.55, subsection
41 4, and section 8.56, subsection 1, for the fiscal year
42 beginning July 1, 2003, and ending June 30, 2004, the
43 interest and earnings on moneys deposited in the Iowa
44 economic emergency fund and the cash reserve fund
45 shall be credited to the general fund of the state.
46 Sec. 15. USE OF REVERSIONS. Notwithstanding
47 section 8.62, if on June 30, 2004, a balance of an
48 operational appropriation, as defined in section 8.62,
49 except for the balances of charter agencies, as
50 defined in section 7J.1, if enacted by 2003 Iowa Acts,

Page 7

1 Senate File 453, remains unexpended or unencumbered,
2 the balance shall revert to the general fund of the
3 state as provided in section 8.33.
4 Sec. 16. KEEP IOWA BEAUTIFUL FUND. For the fiscal
5 years beginning July 1, 2002, and July 1, 2003, moneys
6 credited to the keep Iowa beautiful fund in accordance
7 with section 422.12A are appropriated to the state
8 department of transportation to be used for the
9 purposes provided in section 314.28.
10 Sec. 17. ENDOWMENT FOR IOWA'S HEALTH. For the
11 fiscal year beginning July 1, 2003, and ending June
12 30, 2004, of the $70,000,000 to be deposited in the
13 endowment for Iowa's health account of the tobacco
14 settlement trust fund under 2001 Iowa Acts, chapter
15 174, section 1, subsection 1, the following amount
16 shall instead be deposited in the general fund of the
17 state:
18 $ 20,000,000
19 Sec. 18. JUNIOR OLYMPICS. There is appropriated
20 from the general fund of the state to the department
21 of economic development for the fiscal year beginning
22 July 1, 2003, and ending June 30, 2004, the following
23 amount, or so much thereof as is necessary, to be used
24 for the purpose designated:
25 For providing assistance to a city or nonprofit
26 organization hosting the national junior olympics:
27 $ 50,000
28 Sec. 19. REBUILD IOWA INFRASTRUCTURE FUND.
29 Notwithstanding section 8.57, subsection 5, there is
30 appropriated from the rebuild Iowa infrastructure fund
31 created in section 8.57, subsection 5, to the general
32 fund of the state during the fiscal year beginning
33 July 1, 2003, and ending June 30, 2004, the following
34 amount:
35 $ 10,000,000

36 Sec. 20. IOWA LAW ENFORCEMENT ACADEMY. 2003 Iowa
37 Acts, Senate File 439, section 10, subsection 1,
38 unnumbered paragraph 2, if enacted, is amended to read
39 as follows:
40 For salaries, support, maintenance, miscellaneous
41 purposes, including jailer training and technical
42 assistance, and for not more than the following full-
43 time equivalent positions:
44 $ 1,002,629
45 1,047,629
46 FTEs 30.05
47 Sec. 21. MILITARY PAY DIFFERENTIAL. There is
48 appropriated from the cash reserve fund to the
49 department of revenue and finance or its successor
50 agency for the period beginning March 19, 2003, and

Page 8

1 ending June 30, 2003, the following amount, or so much
2 thereof as is necessary, for the purposes designated:
3 For a military pay differential program and health
4 insurance retention program for individuals activated
5 for the armed services of the United States, for
6 employees on the central payroll system:
7 $ 1,810,000
8 Of the funds appropriated in this section, up to
9 $10,000 is transferred to the Iowa department of
10 public health for allocation to community mental
11 health centers to provide counseling services to
12 persons who are members of the national guard and
13 reservists activated but as yet not sent to combat
14 zones and to the persons' family members. The
15 sessions shall be provided on a first come, first
16 served basis and shall be limited to three visits per
17 family.
18 The department or agency receiving funds under this
19 section shall report monthly to the fiscal committee
20 of the legislative council on the use of the funds.
21 Notwithstanding section 8.33, unencumbered or
22 unobligated funds remaining on June 30, 2003, from the
23 appropriation made in this section shall not revert
24 but shall remain available to be used for the purposes
25 designated in the following fiscal year.
26 Sec. 22. ASSISTED LIVING PROGRAMS.
27 Notwithstanding section 231C.6, any fees remaining on
28 June 30, 2003, in the assisted living program fund
29 created pursuant to section 231C.6 are appropriated to
30 the department of inspections and appeals for the
31 fiscal year beginning July 1, 2003, and ending June
32 30, 2004, to carry out the purposes of chapter 231C.
33 Sec. 23. COUNTY HOSPITALS. There is appropriated
34 from the general fund of the state to the department

35 of human services for the fiscal year beginning July
36 1, 2003, and ending June 30, 2004, the following
37 amount, or so much thereof as is necessary, for the
38 purpose designated:
39 For support of operational expenses of county
40 hospitals in counties having a population of two
41 hundred twenty-five thousand or more:
42 $ 312,000
43 Sec. 24. WORKFORCE DEVELOPMENT. There is
44 appropriated from the general fund of the state to the
45 Iowa department of workforce development for the
46 fiscal year beginning July 1, 2003, and ending June
47 30, 2004, the following amount, or so much thereof as
48 is necessary, for the purpose designated:
49 For salaries and support and for the following
50 full-time equivalent positions.

Page 9

1 $ 250,000
2 FTEs 5.00
3 The appropriation in this section shall be used for
4 four OSHA inspectors and one workers' compensation
5 compliance officer. The appropriation in this section
6 is contingent upon the enactment of 2003 Iowa Acts,
7 Senate File 344, by the Eightieth General Assembly,
8 2003 Regular Session.
9 Sec. 25. UNEMPLOYMENT TRUST FUND. There is
10 appropriated from moneys transferred to the state on
11 March 13, 2002, pursuant to section 903(d) of the
12 federal Social Security Act, as amended, to the
13 department of workforce development, the following
14 amount, to be deposited, under the direction of the
15 department of workforce development, in the
16 unemployment compensation fund for the payment of
17 unemployment benefits and for the establishment of the
18 unemployment compensation reserve fund:
19 $ 40,000,000
20 Sec. 26. UNEMPLOYMENT TAX AND CLAIM SYSTEM. There
21 is appropriated from moneys transferred to the state
22 on March 13, 2002, pursuant to section 903(d) of the
23 federal Social Security Act, as amended, to the
24 department of workforce development, the following
25 amount for purposes of automation and technology for
26 the unemployment tax and claim system:
27 $ 20,000,000
28 Sec. 27. ENHANCED SERVICES TO CLAIMANTS. There is
29 appropriated from moneys transferred to the state on
30 March 13, 2002, pursuant to section 903(d) of the
31 federal Social Security Act, as amended, to the
32 department of workforce development the following
33 amount for purposes of infrastructure improvements and

34 the administrative and technology costs associated
35 with enhanced services to unemployment benefit
36 claimants for workforce and labor exchange services:
37 $ 20,700,000
38 Sec. 28. FEDERAL FISCAL RELIEF FUNDING. If the
39 one hundred eighth United States Congress enacts an
40 economic stimulus package that includes the provision
41 of discretionary funding to the state to provide state
42 or local government fiscal relief, the funding shall
43 be deposited in the fund created by section 8.41.
44 Sec. 29. Section 8.55, subsection 2, paragraph c,
45 Code 2003, is amended to read as follows:
46 c. Notwithstanding paragraph "a", any moneys in
47 excess of the maximum balance in the economic
48 emergency fund after the distribution of the surplus
49 in the general fund of the state at the conclusion of
50 each fiscal year and after the appropriate amount has

Page 10

1 been transferred pursuant to paragraph "b", shall not
2 be transferred to the general fund of the state but
3 shall be transferred to the senior living trust fund.
4 The total amount transferred, in the aggregate, under
5 this paragraph for all fiscal years shall not exceed
6 fifty-one one hundred eighteen million five hundred
7 thousand dollars.
8 Sec. 30. Section 8.55, subsection 2, paragraph d,
9 Code 2003, is amended to read as follows:
10 d. Notwithstanding paragraph "a", any moneys in
11 excess of the maximum balance in the economic
12 emergency fund after the distribution of the surplus
13 in the general fund of the state at the conclusion of
14 each fiscal year and after the appropriate amounts
15 have been transferred pursuant to paragraphs "b" and
16 "c" shall not be transferred to the general fund of
17 the state but shall be transferred to the endowment
18 for Iowa's health account of the tobacco settlement
19 trust fund. The total amount transferred, in the
20 aggregate, under this paragraph for all fiscal years
21 shall not exceed the difference between sixty one
22 hundred one million five seven hundred fifty-one
23 thousand dollars and the amounts transferred to the
24 endowment for Iowa's health account to repay the
25 amounts transferred or appropriated from the endowment
26 for Iowa's health account in 2002 Iowa Acts, chapter
27 1165, 2002 Iowa Acts, chapter 1166, 2002 Iowa Acts,
28 chapter 1167, and 2002 Iowa Acts, Second Extraordinary
29 Session, chapter 1003, and 2003 Iowa Acts, House File
30 685.
31 Sec. 31. Section 8.57, subsection 1, paragraph a,
32 unnumbered paragraph 1, Code Supplement 2001, as

33 enacted by 2002 Iowa Acts, Second Extraordinary
34 Session, chapter 1001, section 28, is amended to read
35 as follows:
36 The "cash reserve goal percentage" for fiscal years
37 beginning on or after July 1, 2003 2004, is seven and
38 one-half percent of the adjusted revenue estimate.
39 For each fiscal year beginning on or after July 1,
40 2003, in which the appropriation of the surplus
41 existing in the general fund of the state at the
42 conclusion of the prior fiscal year pursuant to
43 paragraph "b" was not sufficient for the cash reserve
44 fund to reach the cash reserve goal percentage for the
45 current fiscal year, there is appropriated from the
46 general fund of the state an amount to be determined
47 as follows:
48 Sec. 32. Section 96.9, Code 2003, is amended by
49 adding the following new subsection:
50 NEW SUBSECTION. 8. UNEMPLOYMENT COMPENSATION

Page 11

1 RESERVE FUND.
2 a. A special fund to be known as the unemployment
3 compensation reserve fund is created in the state
4 treasury. The reserve fund is separate and distinct
5 from the unemployment compensation fund. All moneys
6 collected as reserve contributions, as defined in
7 paragraph "b", shall be deposited in the reserve fund.
8 The moneys in the reserve fund may be used for the
9 payment of unemployment benefits and shall remain
10 available for expenditure in accordance with the
11 provisions of this subsection. The treasurer of state
12 shall be the custodian of the reserve fund and shall
13 disburse the moneys in the reserve fund in accordance
14 with this subsection and the directions of the
15 director of the department of workforce development.
16 b. If the balance in the reserve fund on July 1 of
17 the preceding calendar year for calendar year 2004 and
18 each year thereafter is less than one hundred fifty
19 million dollars, a percentage of contributions, as
20 determined by the director, shall be deemed to be
21 reserve contributions for the following calendar year.
22 If the percentage of contributions, termed the reserve
23 contribution tax rate, is not zero percent as
24 determined pursuant to this subsection, the combined
25 tax rate of contributions to the unemployment
26 compensation fund and to the unemployment compensation
27 reserve fund shall be divided so that a minimum of
28 fifty percent of the combined tax rate equals the
29 unemployment contribution tax rate and a maximum of
30 fifty percent of the combined tax rate equals the
31 reserve contribution tax rate except for employers who

32 are assigned a combined tax rate of five and four-
33 tenths. For those employers, the reserve contribution
34 tax rate shall equal zero and their combined tax rate
35 shall equal their unemployment contribution rate.
36 When the reserve contribution tax rate is determined
37 to be zero percent, the unemployment contribution rate
38 for all employers shall equal one hundred percent of
39 the combined tax rate. The reserve contributions
40 collected in any calendar year shall not exceed fifty
41 million dollars. The provisions for collection of
42 contributions under section 96.14 are applicable to
43 the collection of reserve contributions. Reserve
44 contributions shall not be deducted in whole or in
45 part by any employer from the wages of individuals in
46 its employ. All moneys collected as reserve
47 contributions shall not become part of the
48 unemployment compensation fund but shall be deposited
49 in the reserve fund created in this subsection.
50 c. Moneys in the reserve fund shall only be used

Page 12

1 to pay unemployment benefits to the extent moneys in
2 the unemployment compensation fund are insufficient to
3 pay benefits during a calendar quarter.
4 d. The interest earned on the moneys in the
5 reserve fund shall be deposited in and credited to the
6 reserve fund.
7 e. Moneys from interest earned on the unemployment
8 compensation reserve fund shall be used by the
9 department only upon appropriation by the general
10 assembly and only for purposes contained in section
11 96.7, subsection 12, for department of workforce
12 development rural satellite offices, and for
13 administrative costs to collect the reserve
14 contributions.
15 Sec. 33. Section 256D.4, subsection 2, unnumbered
16 paragraph 1, Code 2003, is amended to read as follows:
17 For each fiscal year in the fiscal period beginning
18 July 1, 2001, and ending June 30, 2003, moneys Moneys
19 appropriated pursuant to section 256D.5, subsection 3,
20 shall be allocated to school districts as follows:
21 Sec. 34. Section 256D.5, subsection 3, Code 2003,
22 is amended to read as follows:
23 3. For each fiscal year of the fiscal period
24 beginning July 1, 2001, and ending June 30, 2003 2004,
25 the sum of thirty million dollars.
26 Sec. 35. Section 260G.4B, subsection 1, Code 2003,
27 is amended to read as follows:
28 1. The total amount of program job credits from
29 all employers which shall be allocated for all
30 accelerated career education programs in the state in

31 any one fiscal year shall not exceed the sum of three
32 million dollars in the fiscal year beginning July 1,
33 2000, three million dollars in the fiscal year
34 beginning July 1, 2001, three million dollars in the
35 fiscal year beginning July 1, 2002, four million
36 dollars in the fiscal year beginning July 1, 2003, and
37 six million dollars in the fiscal year beginning July
38 1, 2003 2004, and every fiscal year thereafter. Any
39 increase in program job credits above the six-million-
40 dollar limitation per fiscal year shall be developed,
41 based on recommendations in a study which shall be
42 conducted by the department of economic development of
43 the needs and performance of approved programs in the
44 fiscal years beginning July 1, 2000, and July 1, 2001.
45 The study's findings and recommendations shall be
46 submitted to the general assembly by the department by
47 December 31, 2002. The study shall include but not be
48 limited to an examination of the quality of the
49 programs, the number of program participant
50 placements, the wages and benefits in program jobs,

Page 13

1 the level of employer contributions, the size of
2 participating employers, and employer locations. A
3 community college shall file a copy of each agreement
4 with the department of economic development. The
5 department shall maintain an annual record of the
6 proposed program job credits under each agreement for
7 each fiscal year. Upon receiving a copy of an
8 agreement, the department shall allocate any available
9 amount of program job credits to the community college
10 according to the agreement sufficient for the fiscal
11 year and for the term of the agreement. When the
12 total available program job credits are allocated for
13 a fiscal year, the department shall notify all
14 community colleges that the maximum amount has been
15 allocated and that further program job credits will
16 not be available for the remainder of the fiscal year.
17 Once program job credits have been allocated to a
18 community college, the full allocation shall be
19 received by the community college throughout the
20 fiscal year and for the term of the agreement even if
21 the statewide program job credit maximum amount is
22 subsequently allocated and used.
23 Sec. 36. Section 294A.25, subsection 10, Code
24 2003, is amended to read as follows:
25 10. For the each fiscal year beginning July 1,
26 2001, and ending June 30, 2002, to the department of
27 education from phase III moneys the amount of forty-
28 seven thousand dollars for the Iowa mathematics and
29 science coalition.

30 Sec. 37. Section 427B.19A, subsection 1, as
31 amended by 2003 Iowa Acts, Senate File 453, if
32 enacted, is amended to read as follows:
33 1. The industrial machinery, equipment and
34 computers property tax replacement fund is created.
35 For the fiscal year beginning July 1, 1996, through
36 the fiscal year ending June 30, 2004, there is
37 appropriated annually from the general fund of the
38 state to the department of revenue and finance to be
39 credited to the industrial machinery, equipment and
40 computers property tax replacement fund, an amount
41 sufficient to implement this division. However, for
42 the fiscal year beginning July 1, 2003, the amount
43 appropriated to the department of revenue and finance
44 to be credited to the industrial machinery, equipment
45 and computers tax replacement fund is ten eleven
46 million two hundred eighty-one thousand six hundred
47 eight-five dollars.
48 Sec. 38. 2001 Iowa Acts, chapter 174, section 1,
49 subsection 2, as amended by 2002 Iowa Acts, chapter
50 1174, section 8, is amended to read as follows:

Page 14

1 2. There is appropriated from the general fund of
2 the state to the endowment for Iowa's health account
3 of the tobacco settlement trust fund created in
4 section 12E.12, for the designated fiscal years, the
5 following amounts, to be used for the purposes
6 specified in section 12E.12 for the endowment for
7 Iowa's health account:
8 FY 2001-2002 $ 7,248,000
9 FY 2003-2004 $ 28,251,000
10 0
11 FY 2004-2005 $ 29,785,000
12 FY 2005-2006 $ 29,562,000
13 FY 2006-2007 $ 17,773,000
14 Sec. 39. 2002 Iowa Acts, chapter 1173, section 18,
15 is amended to read as follows:
16 SEC. 18. POOLED TECHNOLOGY FUNDING - PRIOR
17 ALLOCATIONS - NONREVERSION. Notwithstanding section
18 8.33, moneys appropriated and allocated in 2001 Iowa
19 Acts, chapter 189, section 5, subsection 1, which
20 remain unobligated or unexpended at the close of the
21 fiscal year for which they were appropriated shall not
22 revert, but shall remain available for expenditure for
23 the purposes for which they were appropriated and
24 allocated, for the fiscal year period beginning July
25 1, 2002, and ending June 30, 2003 2004.
26 Sec. 40. 2002 Iowa Acts, Second Extraordinary
27 Session, chapter 1001, section 33, is amended to read
28 as follows:

29 SEC. 33. EFFECTIVE DATE - APPLICABILITY. The
30 amendments to the following designated Code provisions
31 in this division of this Act take effect July 1, 2003
32 2004:
33 1. Section 8.55, subsection 2, paragraph "a".
34 2. Section 8.56, subsection 4, paragraph "b".
35 3. Section 8.57, subsection 1, paragraph "a".
36 Sec. 41. FRANCHISE TAX REVENUE ALLOCATION. There
37 is appropriated from the franchise tax revenues
38 deposited in the general fund of the state to the
39 department of revenue and finance for the fiscal year
40 beginning July 1, 2003, and ending June 30, 2004,
41 $8,800,000 to be allocated as follows:
42 1. Sixty percent to the general fund of the city
43 from which the tax is collected.
44 2. Forty percent to the county from which the tax
45 is collected.
46 If the financial institution maintains one or more
47 offices for the transaction of business, other than
48 its principal office, a portion of its franchise tax
49 shall be allocated to each office, based upon a
50 reasonable measure of the business activity of each

Page 15

1 office. The director of revenue and finance shall
2 prescribe, for each type of financial institution, a
3 method of measuring the business activity of each
4 office. Financial institutions shall furnish all
5 necessary information for this purpose at the request
6 of the director. The allocation shall be distributed
7 quarterly.
8 Sec. 42. 2003 Iowa Acts, Senate File 453, section
9 28, if enacted, is repealed.
10 RACING AND GAMING COMMISSION
11 Sec. 43. 2002 Iowa Acts, Second Extraordinary
12 Session, chapter 1003, section 9, subsection 1, is
13 amended to read as follows:
14 1. RACETRACK REGULATION
15 There is appropriated from the general fund of the
16 state to the racing and gaming commission of the
17 department of inspections and appeals for the fiscal
18 year beginning July 1, 2002, and ending June 30, 2003,
19 the following amount, or so much thereof as is
20 necessary, to be used for the purposes designated:
21 For salaries, support, maintenance, and
22 miscellaneous purposes for the regulation of pari-
23 mutuel racetracks, and for not more than the following
24 full-time equivalent positions:
25 $ 2,083,762
26 2,163,762
27 FTEs 24.78

28 Of the funds appropriated in this subsection,
29 $85,576 shall be used to conduct an extended harness
30 racing season.
31 Sec. 44. 2003 Iowa Acts, House File 655, section
32 24, if enacted, is amended to read as follows:
33 SEC. 24. READY TO WORK PROGRAM COORDINATOR. There
34 is appropriated from the surplus funds in the long-
35 term disability reserve fund and the workers'
36 compensation trust fund to the department of personnel
37 for the fiscal year beginning July 1, 2003, and ending
38 June 30, 2004, the following amount, or so much
39 thereof as is necessary, to be used for the purposes
40 designated:
41 For the salary, support, and miscellaneous expenses
42 for the ready to work program and coordinator:
43 $ 89,416
44 The moneys appropriated pursuant to this section
45 shall be taken in equal proportions from the long-term
46 disability reserve fund and the workers' compensation
47 trust fund.
48 Sec. 45. 2003 Iowa Acts, House File 655, section
49 34, if enacted, is amended to read as follows:
50 SEC. 34. READY TO WORK PROGRAM COORDINATOR. There

Page 16

1 is appropriated from the surplus funds in the long-
2 term disability reserve fund and the workers'
3 compensation trust fund to the department of
4 administrative services for the fiscal year beginning
5 July 1, 2003, and ending June 30, 2004, the following
6 amount, or so much thereof as is necessary, to be used
7 for the purposes designated:
8 For the salary, support, and miscellaneous expenses
9 for the ready to work program and coordinator:
10 $ 89,416
11 The moneys appropriated pursuant to this section
12 shall be taken in equal proportions from the long-term
13 disability reserve fund and the workers' compensation
14 trust fund.
15 Sec. 46. CONTINGENT CASH RESERVE APPROPRIATION.
16 1. There is appropriated from the cash reserve
17 fund to the general fund of the state for the fiscal
18 year beginning July 1, 2002, and ending June 30, 2003,
19 for the purposes of reducing or preventing any
20 overdraft on or deficit in the general fund of the
21 state, an amount not to exceed $50,000,000.
22 2. The appropriation made in subsection 1 is
23 contingent upon all of the following having occurred:
24 a. The revenue estimating conference estimate of
25 general fund receipts made during the last quarter of
26 the fiscal year was or the actual fiscal year receipts

27 and accruals were at least one-half of one percent
28 less than the comparable estimate made during the
29 third quarter of the fiscal year.
30 b. The governor has implemented the uniform
31 reductions in appropriations required in section 8.31
32 as a result of paragraph "a" and such reduction was
33 insufficient to prevent an overdraft on or deficit in
34 the general fund of the state or the governor did not
35 implement uniform reductions in appropriations because
36 of the lateness of the estimated or actual receipts
37 and accruals under paragraph "a".
38 c. The balance of the general fund of the state at
39 the end of the fiscal year prior to the appropriation
40 made in subsection 1 was negative.
41 d. The governor has issued an official
42 proclamation and has notified the cochairpersons of
43 the fiscal committee of the legislative council and
44 the legislative services agency that the contingencies
45 in paragraphs "a" through "c" have occurred and the
46 reasons why the uniform reductions specified in
47 paragraph "b" were insufficient or were not
48 implemented to prevent an overdraft on or deficit in
49 the general fund of the state.
50 3. If an appropriation is made pursuant to

Page 17

1 subsection 1 for a fiscal year, there is appropriated
2 from the general fund of the state to the cash reserve
3 fund for the following fiscal year, the amount of the
4 appropriation made pursuant to subsection 1.
5 Sec. 47. EFFECTIVE DATE. The following provisions
6 of this division of this Act, being deemed of
7 immediate importance, take effect upon enactment:
8 1. The section appropriating moneys from the keep
9 Iowa beautiful fund.
10 2. The section amending 2002 Iowa Acts, chapter
11 1173, section 18, relating to the nonreversion of
12 pooled technology funding.
13 3. The section appropriating moneys from the cash
14 reserve fund for the military pay differential
15 program. This section applies retroactively to March
16 19, 2003.
17 4. The section appropriating moneys from the
18 assisted living program fund.
19 5. The section making the contingent appropriation
20 from the cash reserve fund.
21 6. The section amending 2002 Iowa Acts, Second
22 Extraordinary Session, chapter 1003, section 9,
23 relating to racetrack regulation.
24 7. The amendment to section 96.9.
25 DIVISION V

26 COMPENSATION AND BENEFITS
27 Sec. 48. COLLECTIVE BARGAINING AGREEMENTS FUNDED
28 - GENERAL FUND. There is appropriated from the
29 general fund of the state to the salary adjustment
30 fund for distribution by the department of management
31 to the various state departments, boards, commissions,
32 councils, and agencies, and to the state board of
33 regents for those persons employed at the state school
34 for the deaf and the Iowa braille and sight saving
35 school, for the fiscal year beginning July 1, 2003,
36 and ending June 30, 2004, the amount of $28,000,000,
37 or so much thereof as may be necessary, to fully fund
38 annual pay adjustments, expense reimbursements, and
39 related benefits implemented pursuant to the
40 following:
41 1. The collective bargaining agreement negotiated
42 pursuant to chapter 20 for employees in the blue
43 collar bargaining unit.
44 2. The collective bargaining agreement negotiated
45 pursuant to chapter 20 for employees in the public
46 safety bargaining unit.
47 3. The collective bargaining agreement negotiated
48 pursuant to chapter 20 for employees in the security
49 bargaining unit.
50 4. The collective bargaining agreement negotiated

Page 18

1 pursuant to chapter 20 for employees in the technical
2 bargaining unit.
3 5. The collective bargaining agreement negotiated
4 pursuant to chapter 20 for employees in the
5 professional fiscal and staff bargaining unit.
6 6. The collective bargaining agreement negotiated
7 pursuant to chapter 20 for employees in the clerical
8 bargaining unit.
9 7. The collective bargaining agreement negotiated
10 pursuant to chapter 20 for employees in the
11 professional social services bargaining unit.
12 8. The collective bargaining agreement negotiated
13 pursuant to chapter 20 for employees in the community-
14 based corrections bargaining unit.
15 9. The collective bargaining agreements negotiated
16 pursuant to chapter 20 for employees in the judicial
17 branch of government bargaining units.
18 10. The collective bargaining agreement negotiated
19 pursuant to chapter 20 for employees in the patient
20 care bargaining unit.
21 11. The collective bargaining agreement negotiated
22 pursuant to chapter 20 for employees in the science
23 bargaining unit.
24 12. The annual pay adjustments, related benefits,

25 and expense reimbursements referred to in the sections
26 of this division of this Act for employees not covered
27 by a collective bargaining agreement.
28 Of the amount appropriated in this section,
29 $2,668,000 shall be allocated to the judicial branch
30 for the purpose of funding annual pay adjustments,
31 expense reimbursements, and related benefits
32 implemented for judicial branch employees. In
33 distributing the remainder of the amount appropriated
34 in this section, the department of management, in
35 order to address essential public protection functions
36 and recognizing the availability of funds appropriated
37 in other Acts of the general assembly and other
38 sources, shall give priority, in descending order, to
39 the department of corrections, department of human
40 services, and department of public safety, and then to
41 the remaining state departments, boards, commissions,
42 councils, and agencies to which the appropriation is
43 applicable.
44 Sec. 49. NONCONTRACT STATE EMPLOYEES - GENERAL.
45 1. a. For the fiscal year beginning July 1, 2003,
46 the maximum salary levels of all pay plans provided
47 for in section 19A.9, subsection 2, as they exist for
48 the fiscal year ending June 30, 2003, shall be
49 increased by 2 percent for the pay period beginning
50 June 20, 2003, and any additional changes in the pay

Page 19

1 plans shall be approved by the governor.
2 b. For the fiscal year beginning July 1, 2003,
3 employees may receive a step increase or the
4 equivalent of a step increase.
5 2. The pay plans for state employees who are
6 exempt from chapter 19A and who are included in the
7 department of revenue and finance's centralized
8 payroll system shall be increased in the same manner
9 as provided in subsection 1, and any additional
10 changes in any executive branch pay plans shall be
11 approved by the governor. However, commencing July 1,
12 2003, the consumer advocate shall receive an annual
13 salary in the same salary range as the chairperson and
14 members of the utilities board.
15 3. This section does not apply to members of the
16 general assembly, board members, commission members,
17 salaries of persons set by the general assembly in
18 statute, salaries of appointed state officers set by
19 the governor, other persons designated, employees
20 designated under section 19A.3, subsection 5, and
21 employees covered by 581 IAC 4.6(3).
22 4. The pay plans for the bargaining eligible
23 employees of the state shall be increased in the same

24 manner as provided in subsection 1, and any additional
25 changes in such executive branch pay plans shall be
26 approved by the governor. As used in this section,
27 "bargaining eligible employee" means an employee who
28 is eligible to organize under chapter 20, but has not
29 done so.
30 5. The policies for implementation of this section
31 shall be approved by the governor.
32 Sec. 50. STATE EMPLOYEES - STATE BOARD OF
33 REGENTS.
34 1. Funds from the appropriation made in this
35 division of this Act from the general fund of the
36 state to the salary adjustment fund shall be allocated
37 by the department of management to the state board of
38 regents for the purposes of providing increases for
39 state board of regents employees at the state school
40 for the deaf and the Iowa braille and sight saving
41 school who are addressed by that appropriation and
42 employees of the schools who are not covered by a
43 collective bargaining agreement.
44 2. The state board of regents office and the state
45 university of Iowa, Iowa state university of science
46 and technology, and the university of northern Iowa
47 shall provide from available sources pay adjustments,
48 expense reimbursements, and related benefits to fully
49 fund the following:
50 a. The collective bargaining agreement negotiated

Page 20

1 pursuant to chapter 20 for employees in the university
2 of northern Iowa faculty bargaining unit.
3 b. The collective bargaining agreement negotiated
4 pursuant to chapter 20 for employees in the patient
5 care bargaining unit.
6 c. The collective bargaining agreement negotiated
7 pursuant to chapter 20 for employees in the science
8 bargaining unit.
9 d. The collective bargaining agreement negotiated
10 pursuant to chapter 20 for employees in the state
11 university of Iowa graduate student bargaining unit.
12 e. The collective bargaining agreement negotiated
13 pursuant to chapter 20 for employees in the state
14 university of Iowa hospital and clinics tertiary
15 health care bargaining unit.
16 f. The collective bargaining agreement negotiated
17 pursuant to chapter 20 for employees in the blue
18 collar bargaining unit.
19 g. The collective bargaining agreement negotiated
20 pursuant to chapter 20 for employees in the public
21 safety bargaining unit.
22 h. The collective bargaining agreement negotiated

23 pursuant to chapter 20 for employees in the security
24 bargaining unit.
25 i. The collective bargaining agreement negotiated
26 pursuant to chapter 20 for employees in the technical
27 bargaining unit.
28 j. The collective bargaining agreement negotiated
29 pursuant to chapter 20 for employees in the
30 professional fiscal and staff bargaining unit.
31 k. The collective bargaining agreement negotiated
32 pursuant to chapter 20 for employees in the clerical
33 bargaining unit.
34 l. The annual pay adjustments, related benefits,
35 and expense reimbursements referred to in the sections
36 of this division of this Act for employees not covered
37 by a collective bargaining agreement.
38 Sec. 51. APPROPRIATIONS FROM ROAD FUNDS.
39 1. There is appropriated from the road use tax
40 fund to the salary adjustment fund for the fiscal year
41 beginning July 1, 2003, and ending June 30, 2004, the
42 following amount, or so much thereof as may be
43 necessary, to be used for the purpose designated:
44 To supplement other funds appropriated by the
45 general assembly:
46 $ 3,000,000
47 2. There is appropriated from the primary road
48 fund to the salary adjustment fund, for the fiscal
49 year beginning July 1, 2003, and ending June 30, 2004,
50 the following amount, or so much thereof as may be

Page 21

1 necessary, to be used for the purpose designated:
2 To supplement other funds appropriated by the
3 general assembly:
4 $ 12,000,000
5 3. Except as otherwise provided in this division
6 of this Act, the amounts appropriated in subsections 1
7 and 2 shall be used to fund the annual pay
8 adjustments, expense reimbursements, and related
9 benefits for public employees as provided in this
10 division of this Act.
11 Sec. 52. SPECIAL FUNDS - AUTHORIZATION. To
12 departmental revolving, trust, or special funds,
13 except for the primary road fund or the road use tax
14 fund, for which the general assembly has established
15 an operating budget, a supplemental expenditure
16 authorization is provided, unless otherwise provided,
17 in an amount necessary to fund salary adjustments as
18 otherwise provided in this division of this Act.
19 Sec. 53. GENERAL FUND SALARY MONEYS. Funds
20 appropriated from the general fund of the state in
21 this division of this Act relate only to salaries

22 supported from general fund appropriations of the
23 state except for employees of the state board of
24 regents at the state school for the deaf and the Iowa
25 braille and sight saving school. The funds
26 appropriated from the general fund of the state for
27 employees at the state school for the deaf and the
28 Iowa braille and sight saving school of the state
29 board of regents shall exclude general university
30 indirect costs and general university federal funds.
31 Sec. 54. FEDERAL FUNDS APPROPRIATED. All federal
32 grants to and the federal receipts of the agencies
33 affected by this division of this Act which are
34 received and may be expended for purposes of this
35 division of this Act are appropriated for those
36 purposes and as set forth in the federal grants or
37 receipts.
38 Sec. 55. STATE TROOPER MEAL ALLOWANCE. The sworn
39 peace officers in the department of public safety who
40 are not covered by a collective bargaining agreement
41 negotiated pursuant to chapter 20 shall receive the
42 same per diem meal allowance as the sworn peace
43 officers in the department of public safety who are
44 covered by a collective bargaining agreement
45 negotiated pursuant to chapter 20.
46 Sec. 56. SALARY MODEL COORDINATOR. Of the funds
47 appropriated in this division of this Act from the
48 general fund of the state, $126,767 for the fiscal
49 year beginning July 1, 2003, is allocated to the
50 department of management for salary and support of the

Page 22

1 salary model coordinator who shall work in conjunction
2 with the legislative fiscal bureau to maintain the
3 state's salary model used for analyzing, comparing,
4 and projecting state employee salary and benefit
5 information, including information relating to
6 employees of the state board of regents. The
7 department of revenue and finance, the department of
8 personnel, the five institutions under the
9 jurisdiction of the state board of regents, the eight
10 judicial district departments of correctional
11 services, and the state department of transportation
12 shall provide salary data to the department of
13 management and the legislative fiscal bureau to
14 operate the state's salary model. The format and
15 frequency of provision of the salary data shall be
16 determined by the department of management and the
17 legislative fiscal bureau. The information shall be
18 used in collective bargaining processes under chapter
19 20 and in calculating the funding needs contained
20 within the annual salary adjustment legislation. A

21 state employee organization as defined in section
22 20.3, subsection 4, may request information produced
23 by the model, but the information provided shall not
24 contain information attributable to individual
25 employees.
26 DIVISION VI
27 CORRECTIVE PROVISIONS
28 Sec. 57. Section 8A.202, subsection 2, paragraph
29 e, if enacted by 2003 Iowa Acts, House File 534, is
30 amended by striking the paragraph and inserting in
31 lieu thereof the following:
32 e. Developing and maintaining an electronic
33 repository for public access to reference copies of
34 agency mandated reports, newsletters, and publications
35 in conformity with section 304B.10, subsection 1,
36 paragraph "h". The department shall develop technical
37 standards for an electronic repository in consultation
38 with the state librarian and the state archivist.
39 Sec. 58. 2003 Iowa Acts, House File 289, section
40 1, is amended by striking the section and inserting in
41 lieu thereof the following:
42 SECTION 1. Section 12C.1, subsection 2, paragraph
43 e, Code 2003, as amended by 2003 Iowa Acts, Senate
44 File 395, is amended by adding the following new
45 subparagraph:
46 NEW SUBPARAGRAPH. (6) Moneys placed in a
47 depository for the purpose of completing an electronic
48 financial transaction pursuant to section 8A.222 or
49 331.427.
50 Sec. 59. Section 99E.9, subsection 2, Code 2003,

Page 23

1 as amended by 2003 Iowa Acts, House File 171, section
2 31, is amended to read as follows:
3 2. Subject to the approval of the board, the
4 commissioner may enter into contracts for the
5 operation and marketing of the lottery, except that
6 the board may by rule designate classes of contracts
7 other than major procurements which do not require
8 prior approval by the board. A major procurement
9 shall be as the result of competitive bidding with the
10 contract being awarded to the responsible vendor
11 submitting the lowest and best proposal. However,
12 before a contract for a major procurement is awarded,
13 the division of criminal investigation of the
14 department of public safety shall conduct a thorough
15 background investigation of the vendor to whom the
16 contract is to be awarded. The commissioner and board
17 shall consult with the division of criminal
18 investigation and shall provide, by rule, for the
19 scope of the thorough background investigations and

20 due diligence with regard to the background
21 investigations to be conducted in connection with
22 major procurements. The vendor shall submit to the
23 division of criminal investigation appropriate
24 investigation authorizations to facilitate this
25 investigation. The background investigation by the
26 division of criminal investigation may include a
27 national criminal history record check through the
28 federal bureau of investigation. The screening of
29 vendors or their employees through the federal bureau
30 of investigation shall be conducted by submission of
31 fingerprints through the state criminal history
32 repository to the federal bureau of investigation. As
33 used in this subsection, "major procurement" means
34 consulting agreements and the major procurement
35 contract with a business organization for the printing
36 of tickets, or for purchase or lease of equipment or
37 services essential to the operation of a lottery game.
38 Sec. 60. Section 99G.10, subsection 2, if enacted
39 by 2003 Iowa Acts, Senate File 453, section 72, is
40 amended to read as follows:
41 2. Subject to the approval of the board, the chief
42 executive officer shall have the sole power to
43 designate particular employees as key personnel, but
44 may take advice from the department of personnel in
45 making any such designations. All key personnel shall
46 be exempt from the merit system described in chapter
47 19A 8A, article 4. The chief executive officer and
48 the board shall have the sole power to employ,
49 classify, and fix the compensation of key personnel.
50 All other employees shall be employed, classified, and

Page 24

1 compensated in accordance with chapters 19A chapter
2 8A, article 4, and chapter 20.
3 Sec. 61. Section 99G.22, subsection 1, if enacted
4 by 2003 Iowa Acts, Senate File 453, is amended to read
5 as follows:
6 1. The authority shall investigate the financial
7 responsibility, security, and integrity of any lottery
8 system vendor who is a finalist in submitting a bid,
9 proposal, or offer as part of a major procurement
10 contract. Before a major procurement contract is
11 awarded, the division of criminal investigation of the
12 department of public safety shall conduct a background
13 investigation of the vendor to whom the contract is to
14 be awarded. The chief executive officer and board
15 shall consult with the division of criminal
16 investigation and shall provide for the scope of the
17 background investigation and due diligence to be
18 conducted in connection with major procurement

19 contracts. At the time of submitting a bid, proposal,
20 or offer to the authority on a major procurement
21 contract, the authority shall require that each vendor
22 submit to the division of criminal investigation
23 appropriate investigation authorization to facilitate
24 this investigation, together with an advance of funds
25 to meet the anticipated investigation costs. If the
26 division of criminal investigation determines that
27 additional funds are required to complete an
28 investigation, the vendor will be so advised. The
29 background investigation by the division of criminal
30 investigation may include a national criminal history
31 record check through the federal bureau of
32 investigation. The screening of vendors or their
33 employees through the federal bureau of investigation
34 shall be conducted by submission of fingerprints
35 through the state criminal history record repository
36 to the federal bureau of investigation.
37 Sec. 62. Section 99G.37, subsection 2, if enacted
38 by 2003 Iowa Acts, Senate File 453, section 90, is
39 amended to read as follows:
40 2. In any bidding process, the authority may
41 administer its own bidding and procurement or may
42 utilize the services of the department of general
43 administrative services, or its successor, or other
44 state agency.
45 Sec. 63. Section 99G.38, subsection 3, if enacted
46 by 2003 Iowa Acts, Senate File 453, section 91, is
47 amended to read as follows:
48 3. The state of Iowa offset program, as provided
49 in section 421.17 8A.504, shall be available to the
50 authority to facilitate receipt of funds owed to the

Page 25

1 authority.
2 Sec. 64. Section 135.150, subsection 3, as enacted
3 by 2003 Iowa Acts, House File 396, section 1, is
4 amended to read as follows:
5 3. "Director" means the director or the director's
6 designee of public health or the director's designee.
7 Sec. 65. Section 135.154, subsection 7, as enacted
8 by 2003 Iowa Acts, House File 396, section 5, is
9 amended to read as follows:
10 7. Treat or order that individuals exposed to or
11 infected with disease receive treatment or
12 prophylaxis. Treatment or prophylaxis shall be
13 administered by any qualified person authorized to do
14 so by the department. Treatment or prophylaxis shall
15 not be provided or ordered if the treatment or
16 prophylaxis is reasonably likely to lead to serious
17 harm to the affected individual. To prevent the

18 spread of communicable or potentially communicable
19 disease, the department may isolate or quarantine,
20 pursuant to chapter 139A and the rules implementing
21 chapter 139A and this division of this chapter, any
22 individual who is unable or unwilling to undergo
23 treatment or prophylaxis pursuant to this section.
24 Sec. 66. Section 170.6, subsection 1, paragraph b,
25 if enacted by 2003 Iowa Acts, House File 624, is
26 amended to read as follows:
27 b. Failed to provide notice or access to the
28 department of natural resources and the department of
29 agriculture and land stewardship as required by
30 section 170.5.
31 Sec. 67. Section 231.56A, if enacted by 2003 Iowa
32 Acts, Senate File 416, section 1, is amended to read
33 as follows:
34 231.56A ELDER ABUSE INITIATIVE, EMERGENCY SHELTER,
35 AND SUPPORT SERVICES PROJECTS.
36 1. Through the state's service contract process
37 adopted pursuant to section 8.47, the department shall
38 identify area agencies on aging that have demonstrated
39 the ability to provide a collaborative response to the
40 immediate needs of elders in the area agency on aging
41 service area for the purpose of implementing elder
42 abuse initiative, emergency shelter, and support
43 services projects. The projects shall be implemented
44 only in the counties within an area agency on aging
45 service area that have a multidisciplinary team
46 established pursuant to section 235B.1.
47 2. The target population of the projects shall be
48 any elder residing in the service area of an area
49 agency on aging who meets both of the following
50 conditions:

Page 26

1 a. Is the subject of a report of suspected
2 dependent adult abuse pursuant to chapter 235B.
3 b. Is not receiving assistance under a county
4 management plan approved pursuant to section 331.439.
5 3. The area agencies on aging implementing the
6 projects shall identify allowable emergency shelter
7 and support services, state funding, outcomes,
8 reporting requirements, and approved community
9 resources from which services may be obtained under
10 the projects. The area agency on aging shall identify
11 at least one provider of case management services for
12 the project area.
13 4. The area agencies on aging shall implement the
14 projects and shall coordinate the provider network
15 through the use of referrals or other engagement of
16 community resources to provide services to elders.

17 5. The department shall award funds to the area
18 agencies on aging in accordance with the state's
19 service contract process. Receipt and expenditures of
20 moneys under the projects are subject to examination,
21 including audit, by the department.
22 6. This section shall not be construed and is not
23 intended as, and shall not imply, a grant of
24 entitlement for services to individuals who are not
25 otherwise eligible for the services or for utilization
26 of services that do not currently exist or are not
27 otherwise available.
28 Sec. 68. Section 232.71B, subsection 7A, if
29 enacted by 2003 Iowa Acts, House File 558, section 1,
30 is amended to read as follows:
31 7A. PROTECTIVE DISCLOSURE. If the department
32 determines that disclosure is necessary for the
33 protection of a child, the department may disclose to
34 a subject of a child abuse report referred to in
35 section 235A.15, subsection 2, paragraph "a", that an
36 individual is listed in the child or dependent adult
37 abuse registry or is required to register with the sex
38 offender registry in accordance with chapter 692A.
39 Sec. 69. Section 235B.3, subsection 6A, if enacted
40 by 2003 Iowa Acts, House File 558, section 2, is
41 amended to read as follows:
42 6A. If the department determines that disclosure
43 is necessary for the protection of a dependent adult,
44 the department may disclose to a subject of a
45 dependent adult abuse report referred to in section
46 235B.6, subsection 2, paragraph "a", that an
47 individual is listed in the child or dependent adult
48 abuse registry or is required to register with the sex
49 offender registry in accordance with chapter 692A.
50 Sec. 70. Section 304B.3, subsections 4, 8, and 9,

Page 27

1 if enacted by 2003 Iowa Acts, House File 648, section
2 6, are amended to read as follows:
3 4. The director of revenue and finance.
4 8. The director of the department of general
5 administrative services.
6 9. The director of the information technology
7 department.
8 Sec. 71. Section 321.69, subsection 9, as amended
9 by 2003 Acts, House File 502, section 3, is amended to
10 read as follows:
11 9. This Except for subsection 9A, this section
12 does not apply to motor trucks and truck tractors with
13 a gross vehicle weight rating of sixteen thousand
14 pounds or more, vehicles more than nine model years
15 old, motorcycles, motorized bicycles, and special

16 mobile equipment. This section does apply to motor
17 homes. The requirement in subsection 1 that the new
18 certificate of title and registration receipt shall
19 state on the face of the title the total cumulative
20 dollar amount of damage does not apply to a vehicle
21 with a certificate of title bearing a designation that
22 the vehicle was previously titled on a salvage
23 certificate of title pursuant to section 321.52,
24 subsection 4, paragraph "b", or to a vehicle with a
25 certificate of title bearing a "REBUILT" or "SALVAGE"
26 designation pursuant to section 321.24, subsection 4
27 or 5. This Except for subsection 9A, this section
28 does not apply to new motor vehicles with a true
29 mileage, as defined in section 321.71, of one thousand
30 miles or less, unless such vehicle has incurred damage
31 as defined in subsection 2.
32 Sec. 72. Section 356.7, subsection 1, as amended
33 by 2003 Iowa Acts, House File 650, section 1, if
34 enacted, is amended to read as follows:
35 1. The county sheriff, or a municipality operating
36 a temporary municipal holding facility or jail, may
37 charge a prisoner who is eighteen years of age or
38 older and who has been convicted of a criminal offense
39 or sentenced for contempt of court for violation of a
40 domestic abuse order for the actual administrative
41 costs relating to the arrest and booking of that
42 prisoner, and for room and board provided to the
43 prisoner while in the custody of the county sheriff or
44 municipality. Moneys collected by the sheriff or
45 municipality under this section shall be credited
46 respectfully respectively to the county general fund
47 or the city general fund and distributed as provided
48 in this section. If a prisoner who has been convicted
49 of a criminal offense or sentenced for contempt of
50 court for violation of a domestic abuse order fails to

Page 28

1 pay for the administrative costs and the room and
2 board, the sheriff or municipality may file a room and
3 board reimbursement claim with the district court as
4 provided in subsection 2. The county attorney may
5 file the reimbursement claim on behalf of the sheriff
6 and the county or the municipality. The attorney for
7 the municipality may also file a reimbursement claim
8 on behalf of the municipality. This section does not
9 apply to prisoners who are paying for their room and
10 board by court order pursuant to sections 356.26
11 through 356.35.
12 Sec. 73. Section 459.401, subsection 2, paragraph
13 a, subparagraph (3A), if enacted by 2003 Iowa Acts,
14 House File 644, section 18, is amended to read as

15 follows:
16 (3A) A commercial manure service license fee as
17 provided in section 359.316 459.316.
18 Sec. 74. Section 505A.1, article V, section 2,
19 paragraph a, subparagraph (3), if enacted by 2003 Iowa
20 Acts, House File 647, section 54, is amended to read
21 as follows:
22 (3) Four members from those compacting states with
23 less than two percent of the market, based on the
24 premium volume described in subparagraph (1), with one
25 selected from each of the four zone regions of the
26 national association of insurance commissioners as
27 provided in the bylaws.
28 Sec. 75. Section 508.31A, subsection 2, paragraph
29 b, Code 2003, as amended by 2003 Iowa Acts, House File
30 647, section 7, if enacted, is amended to read as
31 follows:
32 b. A funding agreement issued pursuant to
33 paragraph "a", subparagraph (1), (2), or (3), shall be
34 for a total amount of not less than one million
35 dollars.
36 Sec. 76. Section 692A.13, subsection 9, if enacted
37 by 2003 Iowa Acts, House File 558, section 3, is
38 amended to read as follows:
39 9. If the department of human services determines
40 that disclosure is necessary for the protection of a
41 child or a dependent adult, the department may
42 disclose to a subject of a child abuse report referred
43 to in section 235A.15, subsection 2, paragraph "a", or
44 to a subject of a dependent adult abuse report
45 referred to in section 235B.6, subsection 2, paragraph
46 "a", that an individual is listed in the child or
47 dependent adult abuse registry or is required to
48 register under this chapter.
49 Sec. 77. Section 901.5, subsection 7A, paragraph
50 d, as enacted by 2003 Iowa Acts, House File 404,

Page 29

1 section 1, is amended to read as follows:
2 d. Violation of a no-contact order issued under
3 this section is punishable by summary contempt
4 proceedings. A hearing in a contempt proceeding
5 brought pursuant to this subsection shall be held not
6 less than five days and not more than fifteen days
7 after the issuance of a rule to show cause, as set by
8 the court, unless the defendant is already in custody
9 at the time of the alleged violation in which case the
10 hearing shall be held not less than five days and not
11 more than forty-five days after the issuance of the
12 rule to show cause.
13 Sec. 78. 2003 Iowa Acts, Senate File 155, section

14 26, is repealed.
15 Sec. 79. 2003 Iowa Acts, Senate File 155, section
16 56, is repealed.
17 Sec. 80. 2003 Iowa Acts, Senate File 453, section
18 44, subsection 8, if enacted, is amended to read as
19 follows:
20 8. STATUTORY REQUIREMENTS. The requirements of
21 sections 18.6 8A.311 and 72.3 and the administrative
22 rules implementing section 8.47 are not applicable to
23 the services procurement process used to implement the
24 outcomes-based service system redesign in accordance
25 with this section. The department of human services
26 may enter into competitive negotiations and proposal
27 modifications with each successful contractor as
28 necessary to implement the provisions of this section.
29 Sec. 81. 2003 Iowa Acts, House File 601, section
30 2, is amended by striking the section and inserting in
31 lieu thereof the following:
32 SEC. 2. Section 56.5, subsection 2, paragraph d,
33 Code 2003, is amended by striking the paragraph.
34 Sec. 82. 2003 Iowa Acts, House File 624, section
35 22, if enacted, is amended to read as follows:
36 SEC. 22. HUNTING PRESERVES AND GAME BREEDERS -
37 AUTOMATIC CERTIFICATION. Any A fence enclosing farm
38 deer kept on land which is owned by a person licensed
39 pursuant to section 484B.5 or 481A.61 and which is
40 enclosed with a fence on the effective date of this
41 Act shall be deemed to comply with construction
42 requirements of section 170.4 and shall be
43 automatically certified by the department of
44 agriculture and land stewardship without submitting
45 submission of an application. The landowner is not
46 required to notify the department of natural resources
47 concerning removal of whitetail as otherwise required
48 pursuant to section 170.5.
49 Sec. 83. 2003 Iowa Acts, House File 648, section
50 1, if enacted, is repealed.

Page 30

1 Sec. 84. CONTINGENT EFFECTIVE DATES.
2 1. The section of this division of this Act
3 amending section 8A.202, subsection 2, if enacted by
4 2003 Iowa Acts, House File 534, takes effect if House
5 File 648, relating to the management of state archives
6 and records, is enacted by the Eightieth General
7 Assembly, 2003 Regular Session.
8 1. The sections of this division of this Act
9 amending sections 12C.1, 99G.10, 99G.37, and 99G.38
10 take effect only if House File 534 is enacted by the
11 Eightieth General Assembly, 2003 Regular Session.
12 2. The sections of this division of this Act

13 amending section 304B.3, if enacted by 2003 Iowa Acts,
14 House File 648, and repealing 2003 Iowa Acts, House
15 File 648, section 1, if enacted, take effect if House
16 File 534, establishing a department of administrative
17 services, is enacted by the Eightieth General
18 Assembly, 2003 Regular Session.
19 3. The section of this division of this Act
20 repealing 2003 Iowa Acts, Senate File 155, section 26,
21 takes effect if 2003 Iowa Acts, House File 614,
22 relating to elections, is enacted by the Eightieth
23 General Assembly, 2003 Regular Session.
24 DIVISION VII
25 MISCELLANEOUS PROVISIONS
26 Sec. 85. Section 7J.1, subsection 1, if enacted by
27 2003 Iowa Acts, Senate File 453, is amended to read as
28 follows:
29 7J.1 CHARTER AGENCIES.
30 1. DESIGNATION OF CHARTER AGENCIES - PURPOSE.
31 The governor may, by executive order, designate up to
32 five state departments or agencies, as described in
33 section 7E.5, other than the department of
34 administrative services, if the department is
35 established in law, or the department of management,
36 as a charter agency by July 1, 2003. The designation
37 of a charter agency shall be for a period of five
38 years which shall terminate as of June 30, 2008. The
39 purpose of designating a charter agency is to grant
40 the agency additional authority as provided by this
41 chapter while reducing the total appropriations to the
42 agency.
43 Sec. 86. Section 7J.1, subsection 3, paragraph a,
44 if enacted by 2003 Iowa Acts, Senate File 453, is
45 amended to read as follows:
46 a. It is the intent of the general assembly that
47 state general fund operating appropriations to a
48 charter agency for any the fiscal year beginning July
49 1, 2003, and ending June 30, 2004, shall be reduced,
50 with a target reduction of ten percent for each

Page 31

1 charter agency, from the appropriation that would
2 otherwise have been enacted for that charter agency
3 which, along with any additional generated revenue to
4 the general fund of the state attributed to the
5 reinvention process as determined by the department of
6 management, over that already committed to the general
7 fund of the state by a charter agency, will achieve an
8 overall target of fifteen million dollars.
9 Sec. 87. Section 7J.2, if enacted by 2003 Iowa
10 Acts, Senate File 453, is amended to read as follows:
11 7J.2 CHARTER AGENCY LOAN GRANT FUND.

12 1. A charter agency loan grant fund is created in
13 the state treasury under the control of the department
14 of management for the purpose of providing funding to
15 support innovation by those state agencies designated
16 as charter agencies in accordance with section 7J.1.
17 Innovation purposes shall include but are not limited
18 to training, development of outcome measurement
19 systems, management system modifications, and other
20 modifications associated with transition of operations
21 to charter agency status. Moneys in the fund are
22 appropriated to the department of management for the
23 purposes described in this subsection.
24 2. A charter agency requesting a loan grant from
25 the fund shall complete an application process
26 designated by the director of the department of
27 management. Minimum loan requirements for charter
28 agency requests shall be determined by the director.
29 3. In order for the fund to be self-supporting,
30 the director of the department of management shall
31 establish repayment schedules for each loan awarded.
32 An agency shall repay the loan over a period not to
33 exceed five years with interest, at a rate to be
34 determined by the director.
35 4. 3. Notwithstanding section 12C.7, subsection 2,
36 interest or earnings on moneys deposited in the
37 charter agency loan grant fund shall be credited to
38 the charter agency loan grant fund. Notwithstanding
39 section 8.33, moneys credited to the charter agency
40 loan grant fund shall not revert to the fund from
41 which appropriated at the close of a fiscal year.
42 Sec. 88. Section 8.23, subsection 1, paragraph a,
43 Code 2003, is amended by striking the paragraph.
44 Sec. 89. Section 8.31, Code 2003, is amended to
45 read as follows:
46 8.31 QUARTERLY REQUISITIONS - ALLOTMENTS OF
47 APPROPRIATIONS - EXCEPTIONS - MODIFICATIONS.
48 1. a. Before an appropriation for administration,
49 operation and maintenance of any department or
50 establishment shall become becomes available, there

Page 32

1 shall be submitted the department or establishment
2 shall submit to the director of the department of
3 management, not less than twenty days before the
4 beginning of each quarter of each fiscal year, a
5 requisition for an allotment of the amount estimated
6 to be necessary to carry on its work appropriation
7 according to dates identified in the requisition
8 during the ensuing quarter fiscal year by which
9 portions of the appropriation will be needed. The
10 department or establishment shall submit the

11 requisition by June 1, prior to the start of a fiscal
12 year or by another date identified by the director.
13 The requisition shall contain details of proposed
14 expenditures as may be required by the director of the
15 department of management subject to review by the
16 governor.
17 b. The director of the department of management
18 shall approve the allotments subject to review by the
19 governor, unless it is found that the estimated budget
20 resources during the fiscal year are insufficient to
21 pay all appropriations in full, in which event such
22 allotments may be modified to the extent the governor
23 may deem necessary in order that there shall be no
24 overdraft or deficit in the several funds of the state
25 at the end of the fiscal year, and the director shall
26 submit copies of the allotments thus approved or
27 modified to the head of the department or
28 establishment concerned, who shall set up such
29 allotments on the books and be governed accordingly in
30 the control of expenditures.
31 Allotments of appropriations made for equipment,
32 land, permanent improvements, and other capital
33 projects may, however, be allotted in one amount by
34 major classes or projects for which they are
35 expendable without regard to quarterly periods. For
36 fiscal years beginning on or after July 1, 1989,
37 allotments of appropriations for equipment, land,
38 permanent improvements, and other capital projects,
39 except where contracts have been entered into with
40 regard to the acquisition or project prior to July 1,
41 1989, shall not be allotted in one amount but shall be
42 allotted at quarterly periods as provided in this
43 section.
44 2. Allotments thus made in accordance with
45 subsection 1 may be subsequently modified by the
46 director of the department of management at the
47 direction of the governor either upon the written
48 request of the head of the department or establishment
49 concerned, or in the event the governor finds that the
50 estimated budget resources during the fiscal year are

Page 33

1 insufficient to pay all appropriations in full, upon
2 the governor's own initiative to the extent the
3 governor may deem necessary in order that there shall
4 be no overdraft or deficit in the several funds of the
5 state at the end of the fiscal year; and the head of
6 the department or establishment shall be given notice
7 of a modification in the same way as in the case of
8 original allotments.
9 3. Provided, however, that the The allotment

10 requests of all departments and establishments
11 collecting governmental fees and other revenue which
12 supplement a state appropriation shall attach to the
13 summary of requests a statement showing how much of
14 the proposed allotments are to be financed from (1)
15 state appropriations, (2) stores, and (3) repayment
16 receipts.
17 4. The procedure to be employed in controlling the
18 expenditures and receipts of the state fair board and
19 the institutions under the state board of regents,
20 whose collections are not deposited in the state
21 treasury, is that outlined in section 421.31,
22 subsection 6.
23 5. If the governor determines that the estimated
24 budget resources during the fiscal year are
25 insufficient to pay all appropriations in full, the
26 reductions shall be uniform and prorated between all
27 departments, agencies and establishments upon the
28 basis of their respective appropriations.
29 6. Allotments from appropriations for the foreign
30 trade offices of the department of economic
31 development, if the appropriations are described by
32 line item in the department's appropriation Act or
33 another Act, may be made without regard to quarterly
34 periods as is necessary to take advantage of the most
35 favorable foreign currency exchange rates.
36 Sec. 90. Section 8.57, subsection 1, paragraph c,
37 Code 2003, is amended to read as follows:
38 c. The amount appropriated in this section is not
39 subject to the provisions of section 8.31, relating to
40 quarterly requisitions and allotment, or to section
41 8.32, relating to conditional availability of
42 appropriations.
43 Sec. 91. Section 12B.10, subsection 6, paragraph
44 d, subparagraph (4), Code 2003, is amended to read as
45 follows:
46 (4) For investments of short-term operating funds,
47 the funds shall not be invested in investments having
48 effective maturities exceeding sixty-three months.
49 Sec. 92. Section 12B.10A, subsection 6, paragraph
50 d, subparagraph (4), Code 2003, is amended to read as

Page 34

1 follows:
2 (4) For investments of short-term operating funds,
3 the funds shall not be invested in investments having
4 effective maturities exceeding sixty-three months.
5 Sec. 93. Section 12C.27, Code 2003, is amended by
6 striking the section and inserting in lieu thereof the
7 following:
8 12C.27 FAILURE TO MAINTAIN REQUIRED COLLATERAL.

9 If the treasurer of state determines that a bank
10 fails to comply with chapter 12C.22, subsections 2 and
11 3, the treasurer of state may restrict that bank from
12 accepting uninsured public funds and shall notify the
13 office of thrift supervision, the office of the
14 comptroller of the currency, or the superintendent as
15 applicable, who may take such action against the bank,
16 its board of directors and officers as permitted by
17 law.
18 Sec. 94. Section 12E.12, subsection 8, Code 2003,
19 is amended to read as follows:
20 8. With respect to the payment of certain debt
21 service, the debt service to be paid shall be those
22 installments of debt service on bonds selected by the
23 treasurer of state and identified in the authority's
24 tax certificate delivered at the time of the issuance
25 of the bonds issued pursuant to this chapter, or as
26 otherwise selected by the treasurer of state. Once
27 the bonds and the installments of debt service thereon
28 are so selected, that debt service and bonds shall not
29 be paid, or provided to be paid, from any other source
30 including the state or any of its departments or
31 agencies. Provided, however, that if funds are not
32 appropriated to pay debt service on such bonds when
33 due, the issuing agency shall pay such the debt
34 service from any available source as provided in the
35 bond covenants for such bonds. To the extent that
36 this section does not allow proceeds of previously
37 issued refunding bonds to be applied for the purpose
38 of the refunding, the issuing agency may expend such
39 proceeds to improve, remodel, or repair buildings or
40 other infrastructure upon authorization of the issuing
41 agency's authority.
42 Sec. 95. Section 15E.42, subsection 3, Code 2003,
43 is amended to read as follows:
44 3. "Investor" means an individual making a cash
45 investment in a qualifying business or an individual
46 taxed on income from a revocable trust's cash
47 investment in a qualifying business or a person making
48 a cash investment in a community-based seed capital
49 fund. "Investor" does not include a person which is a
50 current or previous owner, member, or shareholder in a

Page 35

1 qualifying business.
2 Sec. 96. Section 15E.43, subsection 1, paragraph
3 a, Code 2003, is amended to read as follows:
4 a. For tax years beginning on or after January 1,
5 2002, a tax credit shall be allowed against the taxes
6 imposed in chapter 422, division II, for a portion of
7 an individual taxpayer's equity investment, as

8 provided in subsection 2, in a qualifying business.
9 An individual shall not claim a tax credit under this
10 paragraph of a partnership, limited liability company,
11 S corporation, estate, or trust electing to have
12 income taxed directly to the individual. However, an
13 individual receiving income from a revocable trust's
14 investment in a qualified business may claim a tax
15 credit under this paragraph against the taxes imposed
16 in chapter 422, division II, for a portion of the
17 revocable trust's equity investment, as provided in
18 subsection 2, in a qualified business.
19 Sec. 97. Section 15E.43, subsection 1, Code 2003,
20 is amended by adding the following new paragraph:
21 NEW PARAGRAPH. d. In the case of a tax credit
22 allowed against the taxes imposed in chapter 422,
23 division II, where the taxpayer died prior to
24 redeeming the entire tax credit, the remaining credit
25 can be redeemed on the decedent's final income tax
26 return.
27 Sec. 98. Section 15E.45, subsection 2, paragraph
28 c, Code 2003, is amended to read as follows:
29 c. The fund has no fewer than ten individual
30 investors who are not affiliates, with no single
31 investor and affiliates of that investor together
32 owning a total of more than twenty-five percent of the
33 ownership interests outstanding in the fund.
34 Sec. 99. Section 15E.51, subsection 4, Code 2003,
35 is amended to read as follows:
36 4. A taxpayer shall not claim a tax credit under
37 this section if the taxpayer is a venture capital
38 investment fund allocation manager for the Iowa fund
39 of funds created in section 15E.65 or an investor that
40 receives a tax credit for an the same investment in a
41 community-based seed capital fund as defined in 2002
42 Iowa Acts, House File 2271.
43 Sec. 100. Section 15E.193B, subsection 4, Code
44 2003, is amended to read as follows:
45 4. The eligible housing business shall complete
46 its building or rehabilitation within two years from
47 the time the business begins construction on the
48 single-family homes and dwelling units. The failure
49 to complete construction or rehabilitation within two
50 years shall result in the eligible housing business

Page 36

1 becoming ineligible and subject to the repayment
2 requirements and penalties enumerated in subsection 7.
3 The department may extend the prescribed two-year
4 completion period for any project which has not been
5 completed if the department determines that completion
6 within the two-year period is impossible or

7 impractical as a result of a substantial loss caused
8 by flood, fire, earthquake, storm, or other
9 catastrophe. For purposes of this subsection,
10 "substantial loss" means damage or destruction in an
11 amount in excess of thirty percent of the project's
12 expected eligible basis as set forth in the eligible
13 housing business's application.
14 Sec. 101. NEW SECTION. 16.181 HOUSING TRUST
15 FUND.
16 1. a. A housing trust fund is created within the
17 authority. The moneys in the housing trust fund are
18 annually appropriated to the authority to be used for
19 the development and preservation of affordable housing
20 for low-income people in the state. Payment of
21 interest, recaptures of awards, or other repayments to
22 the housing trust fund shall be deposited in the fund.
23 Notwithstanding section 12C.7, interest or earnings on
24 moneys in the housing trust fund or appropriated to
25 the fund shall be credited to the fund.
26 Notwithstanding section 8.33, unencumbered and
27 unobligated moneys remaining in the fund at the close
28 of each fiscal year shall not revert but shall remain
29 available for expenditure for the same purposes in the
30 succeeding fiscal year.
31 b. Assets in the housing trust fund shall consist
32 of all of the following:
33 (1) Any assets received by the authority from the
34 Iowa housing corporation.
35 (2) Any assets transferred by the authority for
36 deposit in the housing trust fund.
37 (3) Any other moneys appropriated by the general
38 assembly and any other moneys available to and
39 obtained or accepted by the authority for placement in
40 the housing trust fund.
41 c. The authority shall create the following
42 programs within the housing trust fund:
43 (1) Local housing trust fund program. Sixty
44 percent of available moneys in the housing trust fund
45 shall be allocated for the local housing trust fund
46 program. Any moneys remaining in the local housing
47 trust fund program on April 1 of each fiscal year
48 which have not been awarded to a local housing trust
49 fund may be transferred to the project-based housing
50 program at any time prior to the end of the fiscal

Page 37

1 year.
2 (2) Project-based housing program. Forty percent

3 of the available moneys in the housing trust fund
4 shall be allocated to the project-based housing
5 program.
6 2. a. In order to be eligible to apply for
7 funding from the local housing trust fund program, a
8 local housing trust fund must be approved by the
9 authority and have all of the following:
10 (1) A local governing board recognized by the
11 city, county, council of governments, or regional
12 officials as the board responsible for coordinating
13 local housing programs.
14 (2) A housing assistance plan approved by the
15 authority.
16 (3) Sufficient administrative capacity in regard
17 to housing programs.
18 (4) A local match requirement approved by the
19 authority.
20 b. An award from the local housing trust fund
21 program shall not exceed ten percent of the balance in
22 the program at the beginning of the fiscal year plus
23 ten percent of any deposits made during the fiscal
24 year.
25 c. By December 31 of each year, a local housing
26 trust fund receiving moneys from the local housing
27 trust fund program shall submit a report to the
28 authority itemizing expenditures of the awarded
29 moneys.
30 3. In an area where no local housing trust fund
31 exists, a person may apply for moneys from the
32 project-based housing program.
33 4. The authority shall adopt rules pursuant to
34 chapter 17A necessary to administer this section.
35 Sec. 102. Section 25.1, Code 2003, is amended by
36 adding the following new subsection:
37 NEW SUBSECTION. 4. Notwithstanding subsections 1
38 and 2, and section 25.2, the state appeal board shall
39 not consider claims for refund of the unused portion
40 of vehicle registration fees collected under section
41 321.105.
42 Sec. 103. Section 28.9, subsection 2, Code 2003,
43 is amended to read as follows:
44 2. a. A school ready children grants account is
45 created in the Iowa empowerment fund under the
46 authority of the director of the department of
47 education. Moneys credited to the account shall be
48 distributed by the department of education in the form
49 of grants to community empowerment areas pursuant to
50 criteria established by the Iowa board in accordance
Page 38

1 with law.
2 b. The distribution formula utilized by the Iowa

3 board for school ready children grants in the fiscal
4 year beginning July 1, 2004, and for each succeeding
5 fiscal year, shall specifically incorporate the
6 following components:
7 (1) A minimum statewide performance baseline shall
8 be established for the core indicators of performance
9 identified pursuant to section 28.8, subsection 1,
10 paragraph "a".
11 (2) A community empowerment area must maintain its
12 designated status in good standing and must have
13 received continued approval of its school ready
14 children grant plan.
15 (3) The community empowerment area must identify
16 how the core indicators of performance will be
17 addressed by the area and select two or more of the
18 core indicators that will achieve a minimum percentage
19 of improvement identified by the area, subject to
20 approval by the Iowa board. The community empowerment
21 area's data for the calendar year preceding the year
22 in which the area initially received a school ready
23 children grant shall be used as the area's baseline
24 year.
25 (4) If an area achieves the identified percentage
26 level of improvement in the preceding calendar year,
27 the area's minimum grant amount shall be the
28 annualized grant amount received in the area's initial
29 year of funding. The Iowa board may implement
30 provisions for averaging the performance levels over
31 two or more years and other approaches to apply the
32 requirements of this paragraph "b" in an equitable
33 manner.
34 (5) If an area does not achieve the identified
35 percentage level of improvement in the preceding
36 calendar year, the area shall receive a reduction from
37 the area's minimum grant amount. If the identified
38 percentage level of improvement is achieved in the
39 next succeeding calendar year, the area's minimum
40 grant amount shall be restored.
41 Sec. 104. Section 29C.8, subsection 3, Code 2003,
42 is amended by adding the following new paragraphs:
43 NEW PARAGRAPH. f. (1) Approve and support the
44 development and ongoing operations of an urban search
45 and rescue team to be deployed as a resource to
46 supplement and enhance emergency and disaster
47 operations.
48 (2) A member of an urban search and rescue team
49 acting under the authority of the administrator or
50 pursuant to a governor's disaster proclamation as
Page 39

1 provided in section 29C.6 shall be considered an
2 employee of the state under chapter 669 and shall be

3 afforded protection as an employee of the state under
4 section 669.21. Disability, workers' compensation,
5 and death benefits for team members working under the
6 authority of the administrator or pursuant to the
7 provisions of section 29C.6 shall be paid by the state
8 in a manner consistent with the provisions of chapter
9 85, 410, or 411 as appropriate, depending on the
10 status of the member.
11 NEW PARAGRAPH. g. Develop, implement, and support
12 a uniform incident command system to be used by state
13 agencies to facilitate efficient and effective
14 assistance to those affected by emergencies and
15 disasters. This system shall be consistent with the
16 requirements of the United States occupational safety
17 and health administration and a national incident
18 management system.
19 Sec. 105. Section 29C.20, subsection 1, Code 2003,
20 is amended to read as follows:
21 1. a. A contingent fund is created in the state
22 treasury for the use of the executive council which
23 may be expended for the purpose of paying following
24 purposes:
25 (1) Paying the expenses of suppressing an
26 insurrection or riot, actual or threatened, when state
27 aid has been rendered by order of the governor, and
28 for repairing,.
29 (2) Repairing, rebuilding, or restoring state
30 property injured, destroyed, or lost by fire, storm,
31 theft, or unavoidable cause, and for repairing,.
32 (3) Repairing, rebuilding, or restoring state
33 property which that is fiberoptic cable and which that
34 is injured or destroyed by a wild animal, and for aid
35 to.
36 (4) Paying the expenses incurred by and claims of
37 an urban search and rescue team when acting under the
38 authority of the administrator and the provisions of
39 section 29C.6 and disaster medical assistance teams
40 when acting under the provisions of section 135.153.
41 (5) (a) Aiding any governmental subdivision in an
42 area declared by the governor to be a disaster area
43 due to natural disasters or to expenditures
44 necessitated by the governmental subdivision toward
45 averting or lessening the impact of the potential
46 disaster, where the effect of the disaster or action
47 on the governmental subdivision is the immediate
48 financial inability to meet the continuing
49 requirements of local government.
50 (b) Upon application by a governmental subdivision
Page 40

1 in such an area, accompanied by a showing of
2 obligations and expenditures necessitated by an actual

3 or potential disaster in a form and with further
4 information the executive council requires, the aid
5 may be made in the discretion of the executive council
6 and, if made, shall be in the nature of a loan up to a
7 limit of seventy-five percent of the showing of
8 obligations and expenditures. The loan, without
9 interest, shall be repaid by the maximum annual
10 emergency levy authorized by section 24.6, or by the
11 appropriate levy authorized for a governmental
12 subdivision not covered by section 24.6. The
13 aggregate total of loans shall not exceed one million
14 dollars during a fiscal year. A loan shall not be for
15 an obligation or expenditure occurring more than two
16 years previous to the application.
17 b. When a state department or agency requests that
18 moneys from the contingent fund be expended to repair,
19 rebuild, or restore state property injured, destroyed,
20 or lost by fire, storm, theft, or unavoidable cause,
21 or to repair, rebuild, or restore state property which
22 that is fiberoptic cable and which that is injured or
23 destroyed by a wild animal, or for payment of the
24 expenses incurred by and claims of an urban search and
25 rescue team when acting under the authority of the
26 administrator and the provisions of section 29C.6, the
27 executive council shall consider the original source
28 of the funds for acquisition of the property before
29 authorizing the expenditure. If the original source
30 was other than the general fund of the state, the
31 department or agency shall be directed to utilize
32 moneys from the original source if possible. The
33 executive council shall not authorize the repairing,
34 rebuilding, or restoring of the property from the
35 disaster aid contingent fund if it determines that
36 moneys from the original source are available to
37 finance the project.
38 Sec. 106. Section 80B.5, Code 2003, is amended to
39 read as follows:
40 80B.5 ADMINISTRATION.
41 The administration of the Iowa law enforcement
42 academy and council Act shall be vested in the office
43 of the governor. A director of the academy and such
44 staff Staff as may be necessary for it the law
45 enforcement academy to function shall be employed
46 pursuant to the Iowa merit system.
47 Sec. 107. NEW SECTION. 80B.5A DIRECTOR.
48 The governor shall appoint the director of the Iowa
49 law enforcement academy, subject to senate
50 confirmation, to a four-year term beginning and ending
Page 41

1 as provided in section 69.19.
2 Sec. 108. Section 99G.9, subsection 3, paragraph

3 j, if enacted by 2003 Iowa Acts, Senate File 453, is
4 amended by striking the paragraph.
5 Sec. 109. Section 99G.40, subsection 5, if enacted
6 by 2003 Iowa Acts, Senate File 453, is amended to read
7 as follows:
8 5. The authority shall adopt the same fiscal year
9 as that used by state government and shall be audited
10 annually by the auditor of state or a certified public
11 accounting firm appointed by the auditor. The auditor
12 of state or a designee conducting an audit under this
13 chapter shall have access and authority to examine any
14 and all records of licensees necessary to determine
15 compliance with this chapter and the rules adopted
16 pursuant to this chapter. The cost of audits and
17 examinations conducted by the auditor of state or a
18 designee shall be paid for by the authority.
19 Sec. 110. NEW SECTION. 174.24 LIABILITY OF
20 COUNTY FAIR SOCIETY.
21 A society, as defined in section 174.1, shall be
22 immune from liability for any damages incurred at a
23 county fair held by the society if the damages were
24 incurred on or at an exhibit, leased facility,
25 amusement ride, or an activity not under the control
26 of the society, if the county fair requires the vendor
27 in control of the exhibit, leased facility, amusement
28 ride, or other activity to obtain liability insurance
29 of at least three hundred thousand dollars. An
30 officer or employee of a society, as defined in
31 section 174.1, shall not be held liable for punitive
32 damages as a result of acts in the performance of the
33 officer's or employee's duties, unless reckless
34 misconduct is proven.
35 Sec. 111. Section 257.11, subsection 5, paragraph
36 b, Code 2003, is amended to read as follows:
37 b. A school district which establishes a regional
38 academy shall be eligible to assign its resident
39 pupils attending classes at the academy a weighting of
40 one-tenth of the percentage of the pupil's school day
41 during which the pupil attends classes at the regional
42 academy. For the purposes of this subsection,
43 "regional academy" means an educational institution
44 established by a school district to which multiple
45 schools send pupils in grades seven nine through
46 twelve, and may include a virtual academy. A regional
47 academy shall include in its curriculum advanced-level
48 courses and may include in its curriculum vocational-
49 technical programs courses. The maximum amount of
50 additional weighting for which a school district
Page 42

1 establishing a regional academy shall be eligible is
2 an amount corresponding to fifteen additional pupils.

3 The minimum amount of additional weighting for which a
4 school district establishing a regional academy shall
5 be eligible is an amount corresponding to ten
6 additional pupils if the academy provides both
7 advanced-level courses and vocational technical
8 courses. However, if the sum of the funding amount
9 calculated for all districts operating regional
10 academies under this subsection exceeds one million
11 dollars for the school year beginning July 1, 2004,
12 and each succeeding fiscal year, the director of the
13 department of management shall prorate the amount
14 calculated for each district. The proration shall be
15 based upon the amount calculated for each district
16 when compared to the sum of the amount for all
17 districts.
18 Sec. 112. Section 260C.14, Code 2003, is amended
19 by adding the following new subsection:
20 NEW SUBSECTION. 20. Adopt a policy to offer not
21 less than the following options to a student who is a
22 member of the Iowa national guard or reserve forces of
23 the United States and who is ordered to active state
24 service or federal service or duty:
25 a. Withdraw from the student's entire registration
26 and receive a full refund of tuition and mandatory
27 fees.
28 b. Make arrangements with the student's
29 instructors for course grades, or for incompletes that
30 shall be completed by the student at a later date. If
31 such arrangements are made, the student's registration
32 shall remain intact and tuition and mandatory fees
33 shall be assessed for the courses in full.
34 c. Make arrangements with only some of the
35 student's instructors for course grades, or for
36 incompletes that shall be completed by the student at
37 a later date. If such arrangements are made, the
38 registration for those courses shall remain intact and
39 tuition and mandatory fees shall be assessed for those
40 courses. Any course for which arrangements cannot be
41 made for grades or incompletes shall be considered
42 dropped and the tuition and mandatory fees for the
43 course refunded.
44 Sec. 113. Section 261.9, subsection 1, unnumbered
45 paragraph 1, Code 2003, is amended to read as follows:
46 "Accredited private institution" means an
47 institution of higher learning located in Iowa which
48 is operated privately and not controlled or
49 administered by any state agency or any subdivision of
50 the state, except for county hospitals as provided in
Page 43

1 paragraph "c" of this subsection, and which meets at
2 least one of the criteria in paragraphs "a" through

3 "c" and all of the criteria in paragraphs "d" through
4 "f" "g":
5 Sec. 114. Section 261.9, subsection 1, Code 2003,
6 is amended by adding the following new paragraph:
7 NEW PARAGRAPH. g. Adopts a policy to offer not
8 less than the following options to a student who is a
9 member of the Iowa national guard or reserve forces of
10 the United States and who is ordered to active state
11 service or federal service or duty:
12 (1) Withdraw from the student's entire
13 registration and receive a full refund of tuition and
14 mandatory fees.
15 (2) Make arrangements with the student's
16 instructors for course grades, or for incompletes that
17 shall be completed by the student at a later date. If
18 such arrangements are made, the student's registration
19 shall remain intact and tuition and mandatory fees
20 shall be assessed for the courses in full.
21 (3) Make arrangements with only some of the
22 student's instructors for grades, or for incompletes
23 that shall be completed by the student at a later
24 date. If such arrangements are made, the registration
25 for those courses shall remain intact and tuition and
26 mandatory fees shall be assessed for those courses.
27 Any course for which arrangements cannot be made for
28 grades or incompletes shall be considered dropped and
29 the tuition and mandatory fees for the course
30 refunded.
31 Sec. 115. Section 262.9, Code 2003, is amended by
32 adding the following new subsection:
33 NEW SUBSECTION. 29. Direct the institutions of
34 higher education under its control to adopt a policy
35 to offer not less than the following options to a
36 student who is a member of the Iowa national guard or
37 reserve forces of the United States and who is ordered
38 to active state service or federal service or duty:
39 a. Withdraw from the student's entire registration
40 and receive a full refund of tuition and mandatory
41 fees.
42 b. Make arrangements with the student's
43 instructors for course grades, or for incompletes that
44 shall be completed by the student at a later date. If
45 such arrangements are made, the student's registration
46 shall remain intact and tuition and mandatory fees
47 shall be assessed for the courses in full.
48 c. Make arrangements with only some of the
49 student's instructors for grades, or for incompletes
50 that shall be completed by the student at a later
Page 44

1 date. If such arrangements are made, the registration
2 for those courses shall remain intact and tuition and

3 mandatory fees shall be assessed for those courses.
4 Any course for which arrangements cannot be made for
5 grades or incompletes shall be considered dropped and
6 the tuition and mandatory fees for the course
7 refunded.
8 Sec. 116. Section 284.13, subsection 1, paragraph
9 a, Code 2003, is amended to read as follows:
10 a. For each fiscal year in the fiscal year period
11 beginning July 1, 2001 2003, and ending June 30, 2002
12 2005, the department shall reserve up to one million
13 five hundred thousand dollars of any moneys
14 appropriated for purposes of this chapter. For each
15 fiscal year in which moneys are appropriated by the
16 general assembly for purposes of team-based variable
17 pay pursuant to section 284.11, the amount of moneys
18 allocated to school districts shall be in the
19 proportion that the basic enrollment of a school
20 district bears to the sum of the basic enrollments of
21 all participating school districts for the budget
22 year. However, the per pupil amount distributed to a
23 school district under the pilot program shall not
24 exceed one hundred dollars.
25 Sec. 117. Section 284.13, subsection 1, paragraph
26 g, unnumbered paragraph 1, Code 2003, is amended to
27 read as follows:
28 For each fiscal year in which funds are
29 appropriated for purposes of this chapter, the moneys
30 remaining after distribution as provided in paragraphs
31 "a" through "f" and "h" shall be allocated to school
32 districts for salaries and career development in
33 accordance with the following formula:
34 Sec. 118. Section 294A.25, subsection 6, Code
35 2003, is amended by striking the subsection.
36 Sec. 119. Section 294A.25, subsections 7, 8, and
37 9, Code 2003, are amended to read as follows:
38 7. For Except as otherwise provided in this
39 section, for the fiscal year beginning July 1, 1990
40 2003, and succeeding fiscal years, the remainder of
41 moneys appropriated in subsection 1 to the department
42 of education shall be deposited in the educational
43 excellence fund to be allocated in an amount to meet
44 the minimum salary requirements of this chapter for
45 phase I, in an amount to meet the requirements for and
46 phase II, and the remainder of the appropriation for
47 phase III.
48 8. Commencing with the fiscal year beginning July
49 1, 1997 2003, the amount of two hundred thirty
50 thousand dollars for a kindergarten to grade twelve
Page 45

1 management information system from additional funds
2 transferred from phase I to phase III.

3 9. For the fiscal year beginning July 1, 2000
4 2003, and for each succeeding fiscal year, the amount
5 of one hundred seventy thousand dollars to the state
6 board of regents for distribution in the amount of
7 sixty-eight thousand dollars to the Iowa braille and
8 sight saving school and in the amount of one hundred
9 two thousand dollars to the Iowa state school for the
10 deaf from phase III moneys.
11 Sec. 120. Section 321J.2, subsection 2, paragraph
12 a, subparagraph (3), subparagraph subdivisions (a) and
13 (b), as enacted by 2003 Iowa Acts, House File 65,
14 section 2, are amended to read as follows:
15 (a) A defendant whose alcohol concentration is .08
16 or more but not more than .10 shall not be eligible
17 for any temporary restricted license for at least
18 thirty days if a test was obtained and an accident
19 resulting in personal injury or property damage
20 occurred. The defendant shall be ordered to install
21 an ignition interlock device of a type approved by the
22 commissioner of public safety on all vehicles owned or
23 operated by the defendant if the defendant seeks a
24 temporary restricted license. There shall be no such
25 period of ineligibility if no such accident occurred,
26 and the defendant shall not be ordered to install an
27 ignition interlock device.
28 (b) A defendant whose alcohol concentration is
29 more than .10 shall not be eligible for any temporary
30 restricted license for at least thirty days if a test
31 was obtained, and an accident resulting in personal
32 injury or property damage occurred or the defendant's
33 alcohol concentration exceeded .15. There shall be no
34 such period of ineligibility if no such accident
35 occurred and the defendant's alcohol concentration did
36 not exceed .15. In either case, where a defendant's
37 alcohol concentration is more than .10, the defendant
38 shall be ordered to install an ignition interlock
39 device of a type approved by the commissioner of
40 public safety on all vehicles owned or operated by the
41 defendant if the defendant seeks a temporary
42 restricted license.
43 Sec. 121. Section 321J.4, subsection 1, paragraphs
44 a and b, as enacted by 2003 Iowa Acts, House File 65,
45 section 3, are amended to read as follows:
46 a. A defendant whose alcohol concentration is .08
47 or more but not more than .10 shall not be eligible
48 for any temporary restricted license for at least
49 thirty days if a test was obtained and an accident
50 resulting in personal injury or property damage
Page 46

1 occurred. The defendant shall be ordered to install
2 an ignition interlock device of a type approved by the

3 commissioner of public safety on all vehicles owned or
4 operated by the defendant if the defendant seeks a
5 temporary restricted license. There shall be no such
6 period of ineligibility if no such accident occurred,
7 and the defendant shall not be ordered to install an
8 ignition interlock device.
9 b. A defendant whose alcohol concentration is more
10 than .10 shall not be eligible for any temporary
11 restricted license for at least thirty days if a test
12 was obtained, and an accident resulting in personal
13 injury or property damage occurred or the defendant's
14 alcohol concentration exceeded .15. There shall be no
15 such period of ineligibility if no such accident
16 occurred and the defendant's alcohol concentration did
17 not exceed .15. In either case, where a defendant's
18 alcohol concentration is more than .10, the defendant
19 shall be ordered to install an ignition interlock
20 device of a type approved by the commissioner of
21 public safety on all vehicles owned or operated by the
22 defendant if the defendant seeks a temporary
23 restricted license.
24 Sec. 122. Section 321J.4, subsection 3, paragraphs
25 a and b, as enacted by 2003 Iowa Acts, House File 65,
26 section 3, are amended to read as follows:
27 a. A defendant whose alcohol concentration is .08
28 or more but not more than .10 shall not be eligible
29 for any temporary restricted license for at least
30 thirty days if a test was obtained and an accident
31 resulting in personal injury or property damage
32 occurred. The defendant shall be ordered to install
33 an ignition interlock device of a type approved by the
34 commissioner of public safety on all vehicles owned or
35 operated by the defendant if the defendant seeks a
36 temporary restricted license. There shall be no such
37 period of ineligibility if no such accident occurred,
38 and the defendant shall not be ordered to install an
39 ignition interlock device.
40 b. A defendant whose alcohol concentration is more
41 than .10 shall not be eligible for any temporary
42 restricted license for at least thirty days if a test
43 was obtained, and an accident resulting in personal
44 injury or property damage occurred or the defendant's
45 alcohol concentration exceeded .15. There shall be no
46 such period of ineligibility if no such accident
47 occurred and the defendant's alcohol concentration did
48 not exceed .15. In either case, where a defendant's
49 alcohol concentration is more than .10, the defendant
50 shall be ordered to install an ignition interlock
Page 47

1 device of a type approved by the commissioner of
2 public safety on all vehicles owned or operated by the

3 defendant if the defendant seeks a temporary
4 restricted license.
5 Sec. 123. Section 321J.12, subsection 2,
6 paragraphs a and b, as enacted by 2003 Iowa Acts,
7 House File 65, section 5, are amended to read as
8 follows:
9 a. A person whose driver's license or nonresident
10 operating privileges have been revoked under
11 subsection 1, paragraph "a", whose alcohol
12 concentration is .08 or more but not more than .10
13 shall not be eligible for any temporary restricted
14 license for at least thirty days after the effective
15 date of the revocation if a test was obtained and an
16 accident resulting in personal injury or property
17 damage occurred. The defendant shall be ordered to
18 install an ignition interlock device of a type
19 approved by the commissioner of public safety on all
20 vehicles owned or operated by the defendant if the
21 defendant seeks a temporary license. There shall be
22 no such period of ineligibility if no such accident
23 occurred, and the defendant shall not be ordered to
24 install an ignition interlock device.
25 b. A defendant whose alcohol concentration is more
26 than .10 shall not be eligible for any temporary
27 restricted license for at least thirty days if a test
28 was obtained, and an accident resulting in personal
29 injury or property damage occurred or the defendant's
30 alcohol concentration exceeded .15. There shall be no
31 such period of ineligibility if no such accident
32 occurred and the defendant's alcohol concentration did
33 not exceed .15. In either case, where a defendant's
34 alcohol concentration is more than .10, the defendant
35 shall be ordered to install an ignition interlock
36 device of a type approved by the commissioner of
37 public safety on all vehicles owned or operated by the
38 defendant if the defendant seeks a temporary
39 restricted license.
40 Sec. 124. Section 331.605C, subsections 1 and 2,
41 if enacted by 2003 Iowa Acts, Senate File 453, are
42 amended to read as follows:
43 1. For the fiscal year beginning July 1, 2003, and
44 ending June 30, 2004, the recorder shall collect a fee
45 of five dollars for each recorded transaction,
46 regardless of the number of pages, for which a fee is
47 paid pursuant to section 331.604 to be used for the
48 purposes of planning and implementing electronic
49 recording and electronic transactions in each county
50 and developing county and statewide internet websites
Page 48

1 to provide electronic access to records and
2 information.

3 2. Beginning July 1, 2004, the recorder shall
4 collect a fee of one dollar for each recorded
5 transaction, regardless of the number of pages, for
6 which a fee is paid pursuant to section 331.604 to be
7 used for the purpose of paying the county's ongoing
8 costs of maintaining the systems developed and
9 implemented under subsection 1.
10 Sec. 125. Section 331.605C, subsection 4, if
11 enacted by 2003 Iowa Acts, Senate File 453, is amended
12 to read as follows:
13 4. The state local electronic government
14 electronic transaction fund is established in the
15 office of the treasurer of state under the control of
16 the treasurer of state. Moneys deposited into the
17 fund are not subject to section 8.33. Notwithstanding
18 section 12C.7, interest or earnings on moneys in the
19 state local electronic government electronic
20 transaction fund shall be credited to the fund.
21 Moneys in the state local electronic government
22 electronic transaction fund are not subject to
23 transfer, appropriation, or reversion to any other
24 fund, or any other use except as provided in this
25 subsection. The treasurer of state shall enter into a
26 contract with the Iowa state association of counties
27 affiliate representing county recorders to develop,
28 implement, and maintain hold the fund for the
29 development, implementation, and maintenance of a
30 statewide internet website for purposes of providing
31 electronic access to records and information recorded
32 or filed by county recorders. On a monthly basis, the
33 county treasurer shall pay one dollar of each fee
34 collected pursuant to subsection 1 to the treasurer of
35 state for deposit into the state local electronic
36 government electronic transaction fund. Moneys
37 credited to the state local electronic government
38 electronic transaction fund are appropriated to the
39 treasurer of state to be used for contract costs.
40 This subsection is repealed June 30, 2004.
41 Sec. 126. Section 422.45, Code 2003, is amended by
42 adding the following new subsection:
43 NEW SUBSECTION. 64. The gross receipts from
44 noncustomer point of sale or noncustomer automated
45 teller machine access or service charges assessed by a
46 financial institution. For purposes of this
47 subsection, "financial institution" means the same as
48 defined in section 527.2.
49 Sec. 127. Section 423.4, Code 2003, is amended by
50 adding the following new subsection:
Page 49

1 NEW SUBSECTION. 9A. Vehicles subject to
2 registration which are transferred from a corporation

3 that is primarily engaged in the business of leasing
4 vehicles subject to registration to a corporation that
5 is primarily engaged in the business of leasing
6 vehicles subject to registration when the transferor
7 and transferee corporations are part of the same
8 controlled group for federal income tax purposes.
9 Sec. 128. Section 435.26A, subsections 2 and 5, as
10 enacted by 2003 Iowa Acts, Senate File 134, section 7,
11 are amended to read as follows:
12 2. Upon receipt of a certificate of title from a
13 manufactured home owner, a county treasurer shall
14 notify the department of transportation that the
15 certificate of title has been surrendered, remove the
16 registration of title from the county treasurer's
17 records, and destroy the certificate of title.
18 The manufactured home owner or the owner's
19 representative shall provide to the county recorder
20 the identifying data of the manufactured home,
21 including the owner's name, the name of the
22 manufacturer, the model name, the year of manufacture,
23 and the serial number of the home, along with the
24 legal description of the real estate on which the
25 manufactured home is located. In addition, evidence
26 shall be provided of the surrender of the certificate
27 of title. After the surrender of the certificate of
28 title of a manufactured home under this section,
29 conveyance of an interest in the manufactured home
30 shall not require transfer of title so long as the
31 manufactured home remains on the same real estate
32 site.
33 5. An owner of a manufactured home who has
34 surrendered a certificate of title under this section
35 and requires another certificate of title for the
36 manufactured home is required to apply for a bonded
37 certificate of title under chapter 321 section 321.42.
38 If supporting documents for the reissuance of a title
39 are not available or sufficient, the procedure for the
40 reissuance of a title specified in the rules of the
41 department of transportation shall be used.
42 Sec. 129. Section 452A.2, Code 2003, is amended by
43 adding the following new subsection:
44 NEW SUBSECTION. 20A. "Nonterminal storage
45 facility" means a facility where motor fuel or special
46 fuel, other than liquefied petroleum gas, is stored
47 that is not supplied by a pipeline or a marine vessel.
48 "Nonterminal storage facility" includes a facility
49 that manufactures products such as alcohol, biofuel,
50 blend stocks, or additives which may be used as motor
Page 50

1 fuel or special fuel, other than liquefied petroleum
2 gas, for operating motor vehicles or aircraft.

3 Sec. 130. Section 453A.2, Code 2003, is amended by
4 adding the following new subsection:
5 NEW SUBSECTION. 5B. A tobacco compliance employee
6 training fund is created in the office of the
7 treasurer of state. The fund shall consist of civil
8 penalties assessed by the Iowa department of public
9 health under section 453A.22, for violations of this
10 section. Moneys in the fund are appropriated to the
11 alcoholic beverages division of the department of
12 commerce and shall be used to develop and administer
13 the tobacco compliance employee training program under
14 section 453A.2A. Moneys deposited in the fund shall
15 not be transferred, used, obligated, appropriated, or
16 otherwise encumbered except as provided in this
17 subsection. Notwithstanding section 8.33, any
18 unexpended balance in the fund at the end of the
19 fiscal year shall be retained in the fund.
20 Sec. 131. Section 453C.1, subsection 10, Code
21 2003, is amended to read as follows:
22 10. "Units sold" means the number of individual
23 cigarettes sold in the state by the applicable tobacco
24 product manufacturer, whether directly or through a
25 distributor, retailer, or similar intermediary or
26 intermediaries, during the year in question, as
27 measured by excise taxes collected by the state on
28 packs or roll-your-own tobacco containers bearing the
29 excise tax stamp of the state. The department of
30 revenue and finance shall adopt rules as are necessary
31 to ascertain the amount of state excise tax paid on
32 the cigarettes of such tobacco product manufacturer
33 for each year.
34 Sec. 132. Section 453C.2, subsection 2, paragraph
35 b, subparagraph (2), Code 2003, is amended to read as
36 follows:
37 (2) To the extent that a tobacco product
38 manufacturer establishes that the amount the
39 manufacturer was required to place into escrow on
40 account of units sold in the state in a particular
41 year was greater than the state's allocable share of
42 the total payments that such manufacturer would have
43 been required to make in that year under the master
44 settlement agreement the master settlement agreement
45 payments, as determined pursuant to section IX(i) of
46 that agreement including after final determination of
47 all adjustments, that such manufacturer would have
48 been required to make on account of such units sold
49 had such manufacturer been a participating
50 manufacturer, as such payments are determined pursuant
Page 51

1 to section IX(i)(2) of the master settlement agreement
2 and before any of the adjustments or offsets described

3 in section IX(i)(3) of that agreement other than the
4 inflation adjustment, the excess shall be released
5 from escrow and revert back to such tobacco product
6 manufacturer.
7 Sec. 133. Section 455D.9, Code 2003, is amended by
8 adding the following new subsection:
9 NEW SUBSECTION. 1A. Yard waste may be accepted by
10 a sanitary landfill for land disposal if the sanitary
11 landfill operates an active methane collection system
12 that produces electricity.
13 Sec. 134. Section 476.33, Code 2003, is amended by
14 adding the following new subsection:
15 NEW SUBSECTION. 5. a. The board shall adopt
16 rules that require the board, in a rate regulatory
17 proceeding under sections 476.3 and 476.6, to consider
18 both of the following for inclusion in rates:
19 (1) Capital infrastructure investments that will
20 not produce significant additional revenues and will
21 be in service in Iowa within nine months after the
22 conclusion of the test year.
23 (2) Cost of capital changes that will occur within
24 nine months after the conclusion of the test year that
25 are associated with a new generating plant that has
26 been the subject of a ratemaking principles proceeding
27 pursuant to section 476.53.
28 b. This subsection is repealed effective July 1,
29 2007. However, any utilities board proceeding that is
30 pending on July 1, 2007, that is being conducted
31 pursuant to section 476.3 or 476.6 shall be completed
32 as if this section had not been repealed. Upon
33 repeal, the board may still consider the adjustments
34 addressed in this subsection, but shall not be
35 required to consider them.
36 Sec. 135. Section 505.7, Code 2003, is amended by
37 adding the following new subsection:
38 NEW SUBSECTION. 9. The commissioner may retain
39 funds collected during the fiscal year beginning July
40 1, 2003, pursuant to any settlement, enforcement
41 action, or other legal action authorized under federal
42 or state law for the purpose of reimbursing costs and
43 expenses of the division.
44 Sec. 136. Section 518.18, unnumbered paragraph 2,
45 Code 2003, is amended to read as follows:
46 1. Two The applicable percent of the gross amount
47 of premiums received during the preceding calendar
48 year, after deducting the amount returned upon the
49 canceled policies, certificates, and rejected
50 applications; and after deducting premiums paid for
Page 52

1 windstorm or hail reinsurance on properties
2 specifically reinsured; provided, however, that.

3 However, the reinsurer of such windstorm or hail risks
4 shall pay two the applicable percent of the gross
5 amount of reinsurance premiums received upon such
6 risks after deducting the amounts returned upon
7 canceled policies, certificates, and rejected
8 applications. For purposes of this section,
9 "applicable percent" means the same as specified in
10 section 432.1, subsection 4.
11 2. Except as provided in subsection 3, the premium
12 tax shall be paid on or before March 1 of the year
13 following the calendar year for which the tax is due.
14 The commissioner of insurance may suspend the
15 certificate of authority of a county mutual insurance
16 association that fails to pay its premium tax on or
17 before the due date.
18 3. a. Each county mutual insurance association
19 transacting business in this state whose Iowa premium
20 tax liability for the preceding calendar year was one
21 thousand dollars or more shall remit on or before June
22 1, on a prepayment basis, an amount equal to one-half
23 of the premium tax liability for the preceding
24 calendar year.
25 b. In addition to the prepayment amount in
26 paragraph "a", each association shall remit on or
27 before June 30, on a prepayment basis, an additional
28 amount equal to the following percent of the premium
29 tax liability for the preceding calendar year as
30 follows:
31 (1) For prepayment in the 2003 and 2004 calendar
32 years, eleven percent.
33 (2) For prepayment in the 2005 calendar year,
34 twenty-six percent.
35 (3) For prepayment in the 2006 and subsequent
36 calendar years, fifty percent.
37 c. The sums prepaid by a county mutual insurance
38 association under this subsection shall be allowed as
39 credits against its premium tax liability for the
40 calendar year during which the payments are made. If
41 a prepayment made under this subsection exceeds the
42 annual premium tax liability, the excess shall be
43 allowed as a credit against subsequent prepayment or
44 tax liabilities. The commissioner of insurance may
45 suspend the certificate of authority of an association
46 that fails to make a prepayment on or before the due
47 date.
48 Sec. 137. Section 518A.35, Code 2003, is amended
49 to read as follows:
50 518A.35 ANNUAL TAX.
Page 53

1 1. A state mutual insurance association doing
2 business under this chapter shall on or before the

3 first day of March, each year, pay to the director of
4 revenue and finance, or a depository designated by the
5 director, a sum equivalent to two the applicable
6 percent of the gross receipts from premiums and fees
7 for business done within the state, including all
8 insurance upon property situated in the state without
9 including or deducting any amounts received or paid
10 for reinsurance. However, a company reinsuring
11 windstorm or hail risks written by county mutual
12 insurance associations is required to pay a two the
13 applicable percent tax on the gross amount of
14 reinsurance premiums received upon such risks, but
15 after deducting the amount returned upon canceled
16 policies and rejected applications covering property
17 situated within the state, and dividends returned to
18 policyholders on property situated within the state.
19 For purposes of this section, "applicable percent"
20 means the same as specified in section 432.1,
21 subsection 4.
22 2. Except as provided in subsection 3, the premium
23 tax shall be paid on or before March 1 of the year
24 following the calendar year for which the tax is due.
25 The commissioner of insurance may suspend the
26 certificate of authority of a state mutual insurance
27 association that fails to pay its premium tax on or
28 before the due date.
29 3. a. Each state mutual insurance association
30 transacting business in this state whose Iowa premium
31 tax liability for the preceding calendar year was one
32 thousand dollars or more shall remit on or before June
33 1, on a prepayment basis, an amount equal to one-half
34 of the premium tax liability for the preceding
35 calendar year.
36 b. In addition to the prepayment amount in
37 paragraph "a", each association shall remit on or
38 before June 30, on a prepayment basis, an additional
39 amount equal to the following percent of the premium
40 tax liability for the preceding calendar year as
41 follows:
42 (1) For prepayment in the 2003 and 2004 calendar
43 years, eleven percent.
44 (2) For prepayment in the 2005 calendar year,
45 twenty-six percent.
46 (3) For prepayment in the 2006 and subsequent
47 calendar years, fifty percent.
48 c. The sums prepaid by a state mutual insurance
49 association under this subsection shall be allowed as
50 credits against its premium tax liability for the
Page 54

1 calendar year during which the payments are made. If
2 a prepayment made under this subsection exceeds the

3 annual premium tax liability, the excess shall be
4 allowed as a credit against subsequent prepayment or
5 tax liabilities. The commissioner of insurance may
6 suspend the certificate of authority of an association
7 that fails to make a prepayment on or before the due
8 date.
9 Sec. 138. 2003 Iowa Acts, Senate File 453, section
10 30, if enacted, is amended by striking the section and
11 inserting in lieu thereof the following:
12 SEC. 30. CHARGE FOR RENT. For the fiscal year
13 beginning July 1, 2003, and ending June 30, 2004, the
14 department of administrative services, if established
15 in 2003 Iowa Acts, House File 534, shall transfer
16 $900,000 to the general fund of the state from the
17 rent fund if established under section 8A.123 in 2003
18 Iowa Acts, House File 534.
19 Sec. 139. 2003 Iowa Acts, Senate File 453, section
20 35, if enacted, is amended to read as follows:
21 SEC. 35. CHARTER AGENCY APPROPRIATIONS.
22 1. Notwithstanding any provision of law to the
23 contrary, the total operating appropriations
24 reductions as allowed under section 7J.1 from the
25 general fund of the state to those departments and
26 agencies designated as charter agencies and additional
27 revenue to the general fund of the state attributed to
28 the reinvention process as determined by the
29 department of management above that already committed
30 to the general fund of the state generated for the
31 fiscal year beginning July 1, 2003, and ending June
32 30, 2004, as provided by the appropriation to those
33 agencies as enacted by the Eightieth General Assembly,
34 2003 Regular Session, shall be reduced by total
35 $15,000,000. The department of management shall apply
36 the appropriation reductions, with a target of a 10
37 percent reduction for each charter agency, as
38 necessary to which along with additional generated
39 revenue shall achieve the overall reduction amount and
40 shall make this information available to the
41 legislative fiscal committee and the legislative
42 fiscal bureau. It is the intent of the general
43 assembly that appropriations to a charter agency in
44 subsequent fiscal years shall be similarly adjusted
45 from the appropriation that would otherwise have been
46 enacted.
47 2. There is appropriated from the general fund of
48 the state to the department of management for the
49 fiscal year beginning July 1, 2003, and ending June
50 30, 2004, the following amount, or so much thereof as
Page 55

1 is necessary, to be used for the purposes designated:
2 For deposit in the charter agency loan grant fund

3 created in section 7J.2:
4 $ 3,000,000
5 3. For the fiscal year beginning July 1, 2003, and
6 ending June 30, 2004, if the actual amount of revenue
7 received by a charter agency exceeds the revenue
8 amount budgeted for that charter agency by the
9 governor and the general assembly, the charter agency
10 may consider the excess amount to be repayment
11 receipts as defined in section 8.2.
12 Sec. 140. Notwithstanding section 8.33,
13 unencumbered and unobligated funds remaining from the
14 appropriation made in 1996 Iowa Acts, chapter 1218,
15 section 13, subsection 2, paragraph "a", subparagraph
16 (2), as amended by 1997 Iowa Acts, chapter 215,
17 section 3, and from the appropriation made in 1997
18 Iowa Acts, chapter 215, section 4, subsection 1, shall
19 not revert but shall be available for the purposes
20 designated in those provisions until the close of the
21 fiscal year beginning July 1, 2003.
22 Sec. 141. 2003 Iowa Acts, Senate File 453, section
23 49, subsection 1, unnumbered paragraph 1, if enacted,
24 is amended to read as follows:
25 The department of human services shall establish a
26 work group in cooperation with representatives of the
27 insurance industry and members of the medical
28 assistance advisory council to develop a plan for the
29 redesign of the medical assistance program. In
30 developing the redesign plan, the work group shall
31 consider all of the following:
32 Sec. 142. 2003 Iowa Acts, Senate File 453, section
33 121, if enacted, is amended to read as follows:
34 SEC. 121. EFFECTIVE DATE. This division of this
35 Act, creating the Iowa lottery authority, takes effect
36 September July 1, 2003.
37 Sec. 143. Sections 266.8, 266.24, 266.25, and
38 266.26, Code 2003, are repealed.
39 Sec. 144. REPORT ON FEDERAL ELECTION LAW
40 IMPLEMENTATION. The state committee, if formed, shall
41 develop a plan for compliance with the federal Help
42 America Vote Act, Pub. L. No. 107-252, and the state
43 committee, in conjunction with the state commissioner
44 of elections, shall provide quarterly updates to the
45 Senate and House of Representatives standing
46 committees on government oversight on the status of
47 the implementation of Pub. L. No. 107-252.
48 Sec. 145. SALE OF DEPARTMENT OF CORRECTIONS' REAL
49 PROPERTY.
50 1. Immediately after the effective date of this
Page 56

1 section, the department of corrections shall develop a
2 plan to sell, at market value, the twenty-acre tract

3 of undeveloped land adjacent to the Iowa correctional
4 institution for women to any municipality with a
5 population of less than twenty thousand persons. The
6 plan shall include the sale of the tract of land
7 within a commercially reasonable time. The sale shall
8 be negotiated by the department and shall be handled
9 in a manner that is financially beneficial to the
10 department. The department shall as a condition of
11 the sale to the municipality require that the land not
12 be sold by the municipality for a period of ninety-
13 nine years unless the land is resold back to the
14 state. Appraisals conducted by the department of the
15 value of the land shall be made available to the
16 public immediately following the sale of the tract of
17 land. If the department is unable to negotiate a
18 financially beneficial sale, the tract of land shall
19 not be sold, and the department shall provide the
20 legislative fiscal bureau with the reasons the sale
21 did not occur.
22 2. The proceeds from the sale of the property as
23 provided in subsection 1 shall be retained by the
24 department of corrections to be used for correctional
25 facilities. The costs incident to the sale of the
26 tract of land including, but not limited to,
27 appraisals, invitations for offers, abstracts, and
28 other necessary costs, may be paid from the proceeds
29 of the sale or from moneys appropriated for support
30 and maintenance to the institution at which the real
31 estate is located.
32 3. The provisions of section 904.317 shall not
33 apply to the sale of the tract of land sold in
34 accordance with this section.
35 Sec. 146. SALES AND USE TAX REFUND.
36 1. Notwithstanding the one-year application period
37 provided for in section 422.45, subsection 7,
38 paragraph "b", an application by a city with a
39 population between 550 and 625 located entirely in a
40 county with a population between 39,750 and 41,750 for
41 a refund of sales, services, or use tax paid upon any
42 goods, wares, or merchandise, or services rendered,
43 furnished, or performed and used in the performance of
44 contracts involving a street construction project and
45 a sewer project is considered timely filed under
46 section 422.45, subsection 7, if the application for
47 refund is filed with the department of revenue and
48 finance on or before August 1, 2003.
49 2. Notwithstanding the amount applied for under
50 subsection 1, the amount of a refund paid under this
Page 57

1 section shall not exceed $15,000.
2 Sec. 147. SCHOOL DISTRICT REIMBURSEMENT CLAIM.

3 1. Any school district located in a county with a
4 population between 11,550 and 12,000 is authorized to
5 refile a claim for state reimbursement of the costs of
6 providing vocational education programs at the
7 secondary level in its district notwithstanding the
8 denial of its previously filed claim with the state
9 appeal board if the claim is filed by October 1, 2003.
10 Such claim shall be considered timely filed
11 notwithstanding any provision of law.
12 2. If the claim filed pursuant to subsection 1 is
13 a valid claim for state reimbursement, the claim shall
14 be paid subject to the following:
15 a. The amount of costs reimbursed shall not exceed
16 6.5 percent.
17 b. Any amount reimbursed pursuant to any
18 previously filed claim relating to the same costs
19 shall not be included.
20 c. The total amount reimbursed under this section
21 shall not exceed $6,000.
22 Sec. 148. COORDINATION OF PUBLIC TRANSPORTATION
23 STUDY. The state department of transportation shall
24 conduct a study and prepare a report pertaining to
25 administrative efficiencies that may be gained by the
26 coordination of transit management and maintenance
27 systems in the areas of school transportation, public
28 transit, and other forms of public transportation.
29 The report shall be provided to the general assembly
30 by December 31, 2003.
31 Sec. 149. SUPPLEMENTAL PAYMENT ADJUSTMENTS FOR
32 PHYSICIAN SERVICES. To the extent that, pursuant to
33 law enacted by the Eightieth General Assembly, 2003
34 Session, supplemental payment adjustments are
35 implemented for physician services provided to medical
36 assistance program participants at publicly owned
37 acute care hospitals, the department of human services
38 shall not, directly or indirectly, recoup the
39 supplemental payment adjustments for any reason,
40 unless an amount equivalent to the amount of
41 adjustment funds that were transferred to the
42 department by the state university of Iowa college of
43 medicine is transferred by the department to the
44 qualifying physicians.
45 Sec. 150. UTILITIES BOARD REVIEW. The utilities
46 board shall initiate and coordinate a review of
47 current ratemaking procedures to determine whether
48 different procedures would be cost-effective and would
49 result in rates that more accurately reflect a
50 utility's cost of providing service to its customers
Page 58

1 in Iowa. The board shall allow the consumer advocate
2 division of the department of justice, the rate-

3 regulated utilities, and other interested persons to
4 participate in its review. The board shall report the
5 results of its review to the general assembly, with
6 recommendations as appropriate, on or before January
7 5, 2004.
8 Sec. 151. USE OF TEAM-BASED VARIABLE PAY MONEYS
9 FOR FY 2003-2004. Notwithstanding section 284.13,
10 subsection 1, paragraph a, of the moneys reserved for
11 purposes of team-based variable pay for the fiscal
12 year beginning July 1, 2003, and ending June 30, 2004,
13 the sum of two hundred thousand dollars shall be used
14 for purposes of the reading instruction pilot program
15 established pursuant to 2003 Iowa Acts, House File
16 549, if enacted.
17 Sec. 152. FULL-SIZE OFF-HIGHWAY VEHICLE
18 REGISTRATION PROGRAM - PLAN. The department of
19 natural resources and the state department of
20 transportation, in consultation with the Iowa
21 association of four wheel drive clubs, shall develop a
22 plan for the establishment of a registration program
23 for full-size off-highway vehicles for the purposes of
24 regulating the recreational use of full-size off-
25 highway vehicles and establishing a full-size off-
26 highway vehicle recreation area in the state. The
27 plan shall include an analysis of the number of full-
28 size off-highway vehicles expected to be registered
29 prior to the establishment of a full-size off-highway
30 vehicle recreation area and the number of
31 registrations expected after the establishment of such
32 a facility. The plan shall also include optimum
33 locations for a full-size off-highway vehicle
34 recreation area, estimated costs, if any, for
35 maintenance of the area, and any other issues the
36 departments and the association deem to be of
37 importance in the planning process. The plan, which
38 shall include any proposed legislation for
39 implementation of the plan, shall be submitted to the
40 legislative services agency and the general assembly
41 no later than January 1, 2004.
42 Sec. 153. ELIMINATION OF POSITION - IOWA LAW
43 ENFORCEMENT ACADEMY DIRECTOR. The merit position of
44 director of the Iowa law enforcement academy referred
45 to in section 80B.5, Code 2003, is eliminated
46 effective April 30, 2004.
47 Sec. 154. SEVERABILITY.
48 1. If this entire Act or any portion of section
49 453C.2, subsection 2, paragraph "b", subparagraph (2),
50 as amended in this Act, is held by a court of
Page 59

1 competent jurisdiction to be unconstitutional, section
2 453C.2, subsection 2, paragraph "b", subparagraph (2),

3 is repealed in its entirety.
4 2. If section 453C.2, subsection 2, paragraph "b",
5 subparagraph (2), is repealed pursuant to subsection 1
6 and a court of competent jurisdiction subsequently
7 finds that section 453C.2, subsection 2, paragraph
8 "b", is unconstitutional due to such repeal, section
9 453C.2, subsection 2, paragraph "b", subparagraph (2),
10 Code 2003, shall be restored.
11 3. Any holding of unconstitutionality or any
12 repeal of section 453C.2, subsection 2, paragraph "b",
13 subparagraph (2), as amended in this Act, or of
14 section 453C.2, subsection 2, paragraph "b",
15 subparagraph (2), Code 2003, shall not affect, impair,
16 or invalidate any other portion of section 453C.2 or
17 the application of that section to any other person or
18 circumstance, and the remaining portions of section
19 453C.2, shall continue in full force and effect.
20 Sec. 155. FEDERAL HOUSING MONEYS. Any federal
21 moneys received by the department of economic
22 development for the community development block grant
23 program that are allocated for housing and any federal
24 moneys received for the HOME investment partnership
25 program shall be coordinated with projects within the
26 housing trust fund established in section 16.181, if
27 enacted.
28 Sec. 156. SMALLPOX VACCINATIONS. It is the intent
29 of the general assembly that public safety workers,
30 smallpox response teams, and others who will be
31 required to be vaccinated pursuant to the federal
32 Homeland Security Act be protected from both health-
33 related and other results of the federally required
34 vaccination. The emergency management division of the
35 Iowa department of public defense and local
36 governments should work with employees in the public
37 safety areas or response teams to achieve the
38 following:
39 1. Vaccinations should be given only on a
40 voluntary basis.
41 2. Extensive screening should be employed to
42 protect those workers who would be at risk from
43 current health conditions if vaccinated.
44 3. Reprisals or discrimination for workers not
45 voluntarily receiving vaccinations should be
46 prohibited.
47 4. Public employers should protect employees from
48 loss of income or seniority as a result of side
49 effects from vaccinations. Homeland security moneys
50 received by the emergency management division of the
Page 60

1 Iowa department of public defense from the federal
2 government should include a set-aside to purchase

3 supplemental insurance for public safety or response
4 employees to cover those reactions not covered by
5 traditional employer-provided health insurance.
6 5. Disability or long-term reactions from
7 vaccinations should be considered a work-related
8 injury and should be covered by local or state
9 policies governing disability.
10 6. Vaccinations should be scheduled at staggered
11 times to allow for normal loss of staff time because
12 of vaccination-related illnesses without seriously
13 hampering public safety service.
14 7. Vaccinations administered in Iowa should meet
15 the requirements of the federal Needlestick Safety and
16 Prevention Act of 2000 that requires safety features
17 in the use of needles to administer medicine.
18 8. The emergency management division of the Iowa
19 department of public defense should coordinate efforts
20 to ensure adequate supplies of vaccinia immune
21 globulin and cidofovir and other appropriate medical
22 care and pharmaceuticals to protect those employees
23 who suffer reactions to vaccinations.
24 Sec. 157. CODE EDITOR DIRECTIVE. The Code editor
25 shall change the name of the department of public
26 defense, emergency management division, to the
27 department of public defense, homeland security and
28 emergency management division, in chapter 29C and
29 elsewhere throughout the Code, including references to
30 the division made in law enacted by the Eightieth
31 General Assembly, 2003 Regular Session and other
32 enactments.
33 Sec. 158. RECORDING AND TRANSACTION FEE REPORT.
34 The treasurer of state shall submit a report to the
35 governor and general assembly on or before December 1,
36 2003, detailing the amount of fees collected statewide
37 pursuant to section 331.604 in each fiscal year of the
38 period beginning July 1, 2000, and ending June 30,
39 2003, and the amount of electronic transaction fees
40 collected statewide for the period beginning July 1,
41 2003, and ending September 30, 2003, pursuant to
42 section 331.605C, if enacted by 2003 Iowa Acts, Senate
43 File 453, section 25.
44 Sec. 159. EFFECTIVE DATES. The following
45 provisions of this division of this Act, being deemed
46 of immediate importance, take effect upon enactment:
47 1. The amendments to sections 8.23, 8.31, and 8.57
48 which are first applicable to appropriations made for
49 the fiscal year beginning July 1, 2003.
50 2. The amendment to section 12E.12.
Page 61

1 3. The amendments to sections 15E.42, 15E.43,
2 15E.45, and 15E.51, which apply retroactively to

3 January 1, 2002, for tax years beginning on or after
4 that date.
5 4. The amendment to section 15E.193B.
6 5. The amendment to section 435.26A.
7 6. The amendment to section 453A.2, which shall
8 only take effect if 2003 Iowa Acts, Senate File 401,
9 is enacted by the Eightieth General Assembly, 2003
10 Regular Session.
11 7. The amendments to sections 453C.1 and 453C.2
12 and the related severability provision.
13 8. The amendments to sections 518.18 and 518A.35.
14 9. The section directing the department of
15 corrections to develop a plan for selling certain
16 land.
17 10. The section relating to the sales and use tax
18 refund.
19 11. The section relating to the school district
20 reimbursement claim.
21 The sections of this division of this Act amending
22 section 80B.5 and enacting section 80B.5A are
23 applicable to the appointment of the director of the
24 Iowa law enforcement academy for the term beginning
25 May 1, 2004.
26 Section 29C.8, subsection 3, paragraph "f", as
27 enacted in this division of this Act, and the
28 amendment to section 29C.20, subsection 1, as enacted
29 in this division of this Act, take effect July 1,
30 2004.
31 DIVISION VIII
32 MEDICAL ASSISTANCE PROGRAM
33 Sec. 160. Section 135C.31A, if enacted by 2003
34 Iowa Acts, House File 619, section 2, is amended to
35 read as follows:
36 135C.31A ASSESSMENT OF RESIDENTS - PROGRAM
37 ELIGIBILITY.
38 Beginning July 1, 2003, a health care facility
39 receiving reimbursement through the medical assistance
40 program under chapter 249A shall assist the Iowa
41 commission of veterans affairs in determining, prior
42 to the initial identifying, upon admission of a
43 resident, the prospective resident's eligibility for
44 benefits through the federal department of veterans
45 affairs. The health care facility shall also assist
46 the Iowa commission of veterans affairs in determining
47 such eligibility for residents residing in the
48 facility on July 1, 2003. The department of
49 inspections and appeals, in cooperation with the
50 department of human services, shall adopt rules to
Page 62

1 administer this section, including a provision that
2 ensures that if a resident is eligible for benefits

3 through the federal department of veterans affairs or
4 other third-party payor, the payor of last resort for
5 reimbursement to the health care facility is the
6 medical assistance program. This section shall not
7 apply to the admission of an individual to a state
8 mental health institute for acute psychiatric care.
9 Sec. 161. Section 249A.20A, if enacted by 2003
10 Iowa Acts, House File 619, section 3, is amended by
11 adding the following new subsection:
12 NEW SUBSECTION. 5A. The department shall adopt
13 rules to provide a procedure under which the
14 department and the pharmaceutical and therapeutics
15 committee may disclose information relating to the
16 prices manufacturers or wholesalers charge for
17 pharmaceuticals. The procedures established shall
18 comply with 42 U.S.C. } 1396r-8 and with chapter 550.
19 Sec. 162. Section 249A.20B, if enacted by 2003
20 Iowa Acts, House File 619, section 4, is amended by
21 adding the following new subsection:
22 NEW SUBSECTION. 5A. The department of human
23 services shall provide a reimbursement to nursing
24 facilities under this section. The reimbursement
25 amount shall be calculated as a per patient day amount
26 and shall be paid to nursing facilities in addition to
27 the reimbursement payment specified in 2001 Iowa Acts,
28 chapter 192, section 4, subsection 2, paragraph "c".
29 Sec. 163. 2003 Iowa Acts, House File 619, section
30 5, if enacted, is amended by striking the section and
31 inserting in lieu thereof the following:
32 SEC. 5. CASE MANAGEMENT PROGRAM FOR FRAIL ELDERS.
33 1. The general assembly finds that the existing
34 case management program for frail elders administered
35 by the department of elder affairs is an important
36 component of the long-term care system in this state.
37 The program emphasizes the independence and dignity of
38 the individual while providing services in a cost-
39 effective manner.
40 2. The purposes of the case management program for
41 frail elders include all of the following:
42 a. To provide planning, policy development,
43 coordination, and administrative oversight.
44 b. To provide assistance in the form of assessment
45 and care coordination under circumstances in which an
46 elder or the elder's caregiver is experiencing
47 diminished functional capacity or other conditions
48 that require the provision of services by professional
49 service providers.
50 c. To maintain a system that focuses on the
Page 63

1 delivery of home and community-based services that
2 emphasize individual independence, individual needs

3 and desires, and consumer-driven quality of services.
4 3. It is the intent of the general assembly that
5 the department of elder affairs in collaboration with
6 the department of human services, area agencies on
7 aging, advocacy groups, industry representatives, and
8 consumers submit recommendations to the general
9 assembly by October 1, 2003, regarding the redesigning
10 of the case management program for the frail elderly
11 including preadmission screening methodologies, level
12 of care determinations and ongoing methodologies for
13 the coordination, provision, and delivery of home and
14 community-based services.
15 4. It is also the intent of the general assembly
16 that the department of elder affairs and the
17 department of human services coordinate efforts to
18 resolve issues relating to level of care
19 determinations no later than October 1, 2003.
20 Sec. 164. 2003 Iowa Acts, House File 619, section
21 7, subsection 4, paragraph b, if enacted, is amended
22 to read as follows:
23 b. Pharmacies and providers that are enrolled in
24 the medical assistance program shall make available
25 drug acquisition cost information, product
26 availability information, and other information deemed
27 necessary by the department for the determination of
28 reimbursement rates and the efficient operation of the
29 pharmacy benefit. Pharmacies and providers shall
30 produce and submit the requested information in the
31 manner and format requested by the department or its
32 designee at no cost to the department or designee.
33 Pharmacies and providers shall submit information to
34 the department or its designee within thirty days
35 following receipt of a request for information unless
36 the department or its designee grants an extension
37 upon written request of the pharmacy or provider.
38 Notwithstanding the required provision of information
39 by pharmacies and providers under this paragraph, if
40 the department is able to obtain any of the
41 information required to be provided under this
42 paragraph in an alternative manner, through which the
43 department is ensured of the validity and accuracy of
44 the information and of the timely submission of the
45 information, the department may instead obtain the
46 information in the alternative manner. Chapter 550
47 shall apply to the information provided by pharmacies
48 and providers under this paragraph.
49 Sec. 165. 2003 Iowa Acts, House File 619, section
50 9, if enacted, is amended to read as follows:
Page 64

1 SEC. 9. NURSING FACILITY REIMBURSEMENT.
2 Notwithstanding 2001 Iowa Acts, chapter 192, section

3 4, subsection 2, paragraph "c", and subsection 3,
4 paragraph "a", subparagraph (2), if projected state
5 fund expenditures for reimbursement of nursing
6 facilities for the fiscal year beginning July 1, 2003,
7 in accordance with the reimbursement rate specified in
8 2001 Iowa Acts, chapter 192, section 4, subsection 2,
9 paragraph "c", exceeds exceed $147,252,856, the
10 department shall adjust the inflation factor of the
11 reimbursement rate calculation to provide
12 reimbursement within the amount projected specified in
13 this section. The department, in consultation with
14 nursing facility representatives, shall review the
15 projections on a quarterly basis to determine if an
16 interim adjustment is necessary in order to provide
17 reimbursement within the amount specified in this
18 section. In reviewing the projections, the department
19 shall consider the savings from the reduction in bed
20 hold payments, elimination of crossover claims, and
21 increases in Medicare part A utilization.
22 Sec. 166. 2003 Iowa Acts, House File 619, section
23 12, subsections 2 and 3, if enacted, are amended to
24 read as follows:
25 2. The department of human services, in
26 cooperation with the department's fiscal agent and in
27 consultation with a chronic care management resource
28 group consortium, shall profile medical assistance
29 recipients within a select number of disease diagnosis
30 categories. The assessment shall focus on those
31 diagnosis areas that present the greatest opportunity
32 for impact to improved care and cost reduction.
33 3. The department of human services, in
34 consultation with a chronic care management resource
35 group consortium, shall conduct a chronic disease
36 management pilot project for a select number of
37 individuals who are participants in the medical
38 assistance program. The project shall focus on a
39 select number of chronic diseases which may include
40 congestive heart failure, diabetes, and asthma. The
41 initial pilot project shall be implemented by October
42 1, 2003.
43 Sec. 167. 2003 Iowa Acts, House File 619, section
44 12, subsection 4, if enacted, is amended by striking
45 the subsection and inserting in lieu thereof the
46 following:
47 4. The department of human services may procure a
48 sole source contract with a vendor to manage
49 individuals with select chronic diseases following the
50 conclusion of the profiling of medical assistance
Page 65

1 recipients. The management of chronic diseases for
2 individuals under this subsection may be coordinated

3 with the pilot project established in subsection 3.
4 Sec. 168. 2002 Iowa Acts, Second Extraordinary
5 Session, chapter 1003, section 110, is amended by
6 adding the following new paragraph:
7 NEW UNNUMBERED PARAGRAPH. Notwithstanding section
8 8.33, up to $2,400,000 of the funds appropriated in
9 this section that remain unencumbered or unobligated
10 at the close of the fiscal year shall not revert but
11 shall remain available in the succeeding fiscal year
12 to be used for additional field operations, full-time
13 equivalent positions and general administration. Four
14 hundred thousand dollars of this amount shall be used
15 for eight full-time equivalent positions to provide a
16 case manager in each of the judicial districts to
17 provide coordination of services for families that
18 have a history of methamphetamine abuse and $400,000
19 of this amount shall be used for general
20 administration.
21 Sec. 169. VETERANS - DIRECTIVE. The commission
22 of veterans affairs shall work with the commandant of
23 the Iowa veterans home, the department of human
24 services, and the department of inspections and
25 appeals to identify the residents of health care
26 facilities who may be eligible for benefits through
27 the federal department of veterans affairs pursuant to
28 section 135C.31A, if enacted by 2003 Iowa Acts, House
29 File 619.
30 Sec. 170. The section of this division of this Act
31 amending 2002 Iowa Acts, Second Extraordinary Session,
32 chapter 1003, section 110, relating to certain federal
33 temporary assistance for needy families block grant
34 funding, takes effect upon enactment.
35 DIVISION IX
36 Sec. 171. PURPOSE AND DEFINITIONS.
37 1. PURPOSE. The general assembly finds that the
38 Iowa communications network is a valuable state asset
39 that has served the people of the state well, but
40 which requires significant ongoing financial support
41 from the state in the form of annual appropriations.
42 The operation of a telecommunications network is a
43 function that can be and generally is conducted by
44 private enterprise. It is in the public interest to
45 sell the Iowa communications network to a qualified
46 private business enterprise that will commit to
47 provide the same secure low-cost high-quality service
48 to state and federal agencies and military
49 installations now provided by the network. Through
50 such a sale, the state would eliminate the need for
Page 66

1 ongoing annual appropriations while preserving the key
2 benefits enjoyed by the state under the present state

3 ownership of the network. The state also expects to
4 obtain sufficient proceeds from such a sale to cover
5 existing obligations and to realize additional
6 proceeds above the level of such obligations. Given
7 the current depressed state of the telecommunications
8 industry, the state can reasonably be expected to
9 maximize sales proceeds by allowing a purchaser a
10 period of time in which to assemble financing for its
11 purchase. During the interim between enactment of
12 this division of this Act and completion of a sale,
13 the services of a private-enterprise manager with
14 experience operating telecommunications networks can
15 reasonably be expected to reduce the costs of
16 operating the Iowa communications network, thereby
17 lowering annual appropriations.
18 2. DEFINITIONS. As used in this division of this
19 Act, unless the context otherwise requires:
20 a. "Board" means the state network privatization
21 board.
22 b. "Commission" means the Iowa telecommunications
23 and technology commission established in section 8D.3
24 to oversee the operations of the network.
25 c. "Management contract" means an agreement
26 between the board and the manager for services to
27 oversee and operate the network on behalf of the
28 state.
29 d. "Manager" means the private entity selected by
30 the board to oversee and operate the network on behalf
31 of the state.
32 e. "Network" means the Iowa or state
33 communications network as defined in section 8D.2.
34 f. "Out-of-pocket expenses" means moneys paid to
35 an unaffiliated third party for engineering, legal,
36 consulting, or other services or goods by a manager or
37 purchaser.
38 g. "Purchaser" means the entity that is selected
39 by the board to purchase the network from the state.
40 h. "Required third-party approval" means any
41 consent, conveyance, approval, or waiver that must be
42 granted by a private, governmental, or quasi-
43 governmental third party in order for the purchaser to
44 receive clear title to all network assets and the
45 right to use the network assets free of adverse
46 claims. Required third-party approvals include but
47 are not limited to all of the following:
48 (1) Approvals of assignments to the purchaser of
49 the state's rights under leases or contracts between
50 the state and the third party.
Page 67

1 (2) Conveyance to the purchaser of property that
2 the third party currently leases to the state on a

3 term with less than fifteen years remaining.
4 (3) Release of restrictions in contracts that
5 require that the state operate the network.
6 i. "Sales contract" means the contract between the
7 state as seller, represented by the board, and the
8 purchaser, for sale of the network to the purchaser.
9 Sec. 172. STATE NETWORK PRIVATIZATION BOARD
10 CREATED - DUTIES.
11 1. A state network privatization board is created.
12 The board shall consist of the following members:
13 a. A chairperson member appointed by the
14 legislative council, subject to confirmation by the
15 senate.
16 b. A member, who shall not be of the same
17 political party as the chairperson, appointed by the
18 governor subject to confirmation by the senate.
19 c. The adjutant general or the adjutant general's
20 designee.
21 2. The board shall do all of the following:
22 a. Issue a request for proposals from qualified
23 entities interested in serving as the manager of the
24 network. This request for proposals shall be issued
25 by July 1, 2004, and responses to the request for
26 proposals shall be due by August 1, 2004.
27 b. Select a manager and enter into a management
28 contract with the manager by October 1, 2004. The
29 management contract shall provide for the continuation
30 of all services currently being provided to state and
31 federal agencies and military installations pursuant
32 to chapter 8D, at the rates specified therein, for the
33 duration of the contract. The contract shall also
34 specify the manager's authority in relation to the
35 duties of the commission during the period between
36 execution of the management contract and closing of
37 the sale of the network. The commission shall
38 establish a dispute resolution process regarding rate
39 increases, quality of service issues, and other areas
40 of dispute involving network subscribers. The
41 commission shall also make recommendations regarding
42 imposition of an ongoing dispute resolution and
43 appeals process commencing with the closing of the
44 sale of the network.
45 c. Issue a request for proposals from qualified
46 entities for the purchase of the network. This
47 request for proposals shall be issued by January 1,
48 2005, and responses to the request for proposals shall
49 be due by May 1, 2005.
50 d. Utilizing the criteria set forth in sections
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1 173 and 174 of this Act, select a purchaser and enter
2 into a sales contract with the purchaser by October 1,

3 2005.
4 e. Immediately upon execution of the management
5 contract and the sales contract by the majority of the
6 board, transmit the executed contract to the general
7 assembly and to the governor. The board shall have
8 full authority to enter into the management contract
9 and the sales contract on behalf of the state,
10 provided that the general assembly by legislation
11 enacted regarding the specific purchase and approved
12 by the governor, within thirty days after transmittal
13 to the general assembly and the governor in the case
14 of the management contract, and within sixty days
15 after transmittal to the general assembly and the
16 governor in the case of the sales contract, may
17 disapprove the board's action, in which case the
18 disapproved contract shall have no force and effect.
19 In the event of such disapproval, the state shall pay
20 the manager or the purchaser, as the case may be,
21 reasonable out-of-pocket expenses incurred in
22 preparing a proposal and performing prior to
23 disapproval, but such expenses shall not exceed two
24 hundred thousand dollars in the case of disapproval of
25 the management contract and five hundred thousand
26 dollars in the case of disapproval of the sales
27 contract.
28 f. Cause the sales contract to require closing by
29 October 1, 2007, allowing time for the state to obtain
30 third-party approvals as required by section 176 of
31 this Act, including the filing of any necessary
32 eminent domain actions, and for the purchaser to
33 secure financing.
34 g. Execute all necessary documents relating to the
35 closing of the sale of the network. The board may
36 direct any other applicable official to assist in the
37 execution of necessary documents relating to the
38 closing.
39 h. Require by written directive that all state
40 officials provide information and records concerning
41 the network to the board, to the manager, or to a
42 person submitting a proposal to purchase the network,
43 whenever the board requires such provision of such
44 records and other information.
45 i. Take all other steps necessary and proper as
46 needed to carry out its responsibilities enumerated in
47 this subsection. The board may adopt necessary rules
48 pursuant to chapter 17A to administer this division of
49 this Act.
50 Sec. 173. MINIMUM QUALIFICATIONS OF PURCHASER.
Page 69

1 The purchaser shall meet the following requirements:
2 1. The principal place of business of the

3 purchaser and any parent of the purchaser shall be
4 located in the state of Iowa.
5 2. For national security reasons, and because of
6 the extensive military use of the network, the
7 purchaser shall possess national security approval.
8 Sec. 174. CRITERIA FOR SELECTION OF PURCHASER.
9 After issuing a request for proposals for the purchase
10 of the network and considering the proposals received,
11 the board shall select the highest and best offer for
12 purchase of the network from those persons submitting
13 proposals which meet all of the following criteria:
14 1. Satisfy the minimum qualifications of this
15 division of this Act.
16 2. Submit a proposal in compliance with the
17 request for proposals.
18 3. Demonstrate a likelihood of being able to
19 obtain any financing necessary to close the
20 transaction. However, the board shall not require
21 that the purchaser have a commitment for financing to
22 award the contract, but shall allow the purchaser at
23 least one year to obtain any necessary financing. The
24 board may also in its discretion consider proposals
25 involving financing of the sale by the state.
26 4. Agree to continue all services currently being
27 provided to state and federal agencies and military
28 installations for the next ten years, with any annual
29 rate increase not to exceed five percent per year,
30 provided that the purchaser shall not be required to
31 supply at such restricted prices a quantity or quality
32 of service greater than that provided by the network
33 as of execution of the contract for sale of the
34 network.
35 Sec. 175. CLOSING OF SALE. Any debt of the state
36 related to the network or other liens against network
37 assets shall be discharged out of the state's proceeds
38 of closing, so that the purchaser receives marketable
39 title to the network. The purchaser shall receive
40 bills of sale, in the case of personal property, and
41 deeds, in the case of real property, transferring all
42 network assets to the purchaser. The state shall also
43 transfer its interest in right-of-way and leases and
44 easements for uses of rights-of-way.
45 Sec. 176. THIRD-PARTY APPROVALS.
46 1. The state shall exercise all reasonable efforts
47 to obtain each required third-party approval,
48 including where necessary by use of eminent domain
49 proceedings. To the extent feasible, the state may
50 pay the costs of obtaining required third-party
Page 70

1 approvals out of the proceeds of sale rather than from
2 the general fund of the state. In the event the state

3 fails to obtain a required third-party approval, the
4 purchaser may terminate the sales contract without
5 penalty and shall be reimbursed by the state for
6 reasonable out-of-pocket expenses incurred in
7 preparing its proposal and fulfilling its obligations
8 under the sales contract, not to exceed two million
9 dollars.
10 2. The board and the purchaser shall develop a
11 list of required third-party approvals and persons who
12 may have claims that would constitute required third-
13 party approvals if valid. The board shall mail to
14 each person on the list at their last known address a
15 notice that provides a description of the sale and
16 invites the recipient to submit a claim on a form
17 developed by the board by a deadline set by the board.
18 The claim or interest of any person who fails to
19 timely file a claim shall be deemed discharged and
20 forfeited, and such person shall be forever barred and
21 estopped from taking any action against the state or
22 purchaser that would in any way interfere with the
23 purchaser's use of the network. In addition, the
24 board shall publish the notice in newspapers of
25 general circulation in the state of Iowa, and failure
26 to file a timely claim shall bar all persons whose
27 rights could constitutionally be affected by such
28 notice, just as if such person had been mailed notice.
29 3. Any eminent domain or other proceeding to
30 obtain a required third-party approval shall be
31 promptly filed by the attorney general at the request
32 of the board and shall be added to the calendar of any
33 trial or appellate court of this state so that the
34 deadline in section 172 of this Act for closing the
35 sale can be met.
36 Sec. 177. REMOVAL OF RESTRICTIONS - REPEAL OF
37 CHAPTER 8D. Chapter 8D is repealed, effective as of
38 the date of the closing of the sale of the network
39 under this division of this Act, as certified by the
40 chairperson of the board to the governor.
41 Sec. 178. ASSISTANCE OF OTHER STATE AGENCIES.
42 1. The attorney general shall provide legal advice
43 to the board.
44 2. All other state agencies shall provide whatever
45 assistance may reasonably be required by the board in
46 carrying out its duties under this division of this
47 Act.
48 DIVISION X
49 GOVERNMENT ORGANIZATION REVIEW COMMITTEE
50 Sec. 179. Section 331.264, subsection 1,
Page 71

1 unnumbered paragraph 1, and paragraphs a through d, if
2 enacted by 2003 Iowa Acts, Senate File 390, section

3 25, is amended to read as follows:
4 A local government organization review committee
5 may be created in a county having a population in
6 excess of one hundred thousand. The committee shall
7 be composed of the following members:
8 a. Three city council members appointed by the
9 city council of each participating city with a
10 population of twenty-five thousand or more.
11 b. Three county supervisors appointed by the
12 county board of supervisors.
13 c. One city council member appointed by each
14 participating city with a population of less than
15 twenty-five thousand.
16 d. One member shall be appointed by each state
17 legislator whose legislative district is located in
18 the county if a majority of the constituents of that
19 legislative district reside in the county. However,
20 if a county does not have a state representative's
21 legislative district which has a majority of a state
22 representative's constituency residing in the county,
23 the state representative having the largest plurality
24 of constituents residing in the county shall appoint a
25 member. The member appointed by each state legislator
26 shall be a person who is not holding elected office
27 and who is a resident of the legislative district of
28 the state legislator. If any portion more than one-
29 half of the population of a legislative district is in
30 the unincorporated area of the county, the member
31 appointed by that legislator shall be a resident of
32 the unincorporated area of the county.
33 Sec. 180. EFFECTIVE DATE. This division of this
34 Act, being deemed of immediate importance, takes
35 effect upon enactment."
36 2. Title page, by striking lines 1 through 4 and
37 inserting the following: "An Act relating to public
38 expenditure and regulatory matters, compensating
39 public employees, making and reducing appropriations,
40 modifying sales and use taxes, modifying the
41 investment tax credits and premium taxes on mutual
42 insurance associations, providing for related matters,
43 making penalties applicable, and providing effective
44 dates."

A non-record roll call was requested.

The ayes were 53, nays 39.

Amendment H-1612 was adopted.


SENATE FILE 458 SUBSTITUTED FOR HOUSE FILE 700

Dix of Butler asked and received unanimous consent to substitute
Senate File 458 for House File 700.

Senate File 458, a bill for an act relating to public expenditure
and regulatory matters, compensating public employees, making and
reducing appropriations, modifying sales and use taxes, modifying
the investment tax credits and premium taxes on mutual insurance
associations, providing for related matters, making penalties
applicable, and providing effective dates, was taken up for
consideration.

Roberts of Carroll in the chair at 7:47 p.m.

Dix of Butler 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. 458)

The ayes were, 93:
Alons Arnold Baudler Bell
Berry Boal Boddicker Boggess
Carroll Chambers Cohoon Dandekar
Davitt De Boef Dennis Dix
Dolecheck Drake Elgin Fallon
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 Kuhn Kurtenbach
Lalk Lensing Lukan Lykam
Maddox Manternach Mascher McCarthy
Mertz Miller Murphy Myers
Oldson Olson, D. Olson, S. Osterhaus
Paulsen Petersen Quirk Raecker
Rants, Spkr. Rasmussen Rayhons Reasoner
Sands Schickel Smith Stevens
Struyk Swaim Thomas Tjepkes
Tymeson Upmeyer Van Engelenhoven Van Fossen, J.K.

 




Van Fossen, J.R. Watts Wendt Whitaker
Whitead Wilderdyke Winckler Wise
Roberts,
Presiding

The nays were, 5:
Eichhorn Hunter Shoultz Taylor, D.
Taylor, T.

 


Absent or not voting, 2:
Bukta Connors

 


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 458 be immediately messaged to the Senate.

Unfinished Business Calendar

House File 646, a bill for an act relating to certain alternative
forms of county and city government by providing for county
redistricting and representation, charter commission administration,
application of various statutory requirements, the manner in which a
charter may be proposed and adopted, amendment of a charter, the
organization of the governing body, and inclusions in a charter,
making technical changes relating to the administration and
authority of a city-county consolidated government and a community
commonwealth, allowing formation of local government organization
review committees, and including effective and applicability date
provisions, was taken up for consideration.

Elgin of Linn offered the following amendment H-1176 filed by him
and moved its adoption:

H-1176

1 Amend House File 646 as follows:
2 1. By striking everything after the enacting
3 clause and inserting the following:
4 "Section 1. Section 331.210A, subsection 2, Code
5 2003, is amended by adding the following new
6 paragraph:

7 NEW PARAGRAPH. f. (1) Notwithstanding the
8 provisions of this section to the contrary, for a
9 county with a population of one hundred eighty
10 thousand or more that has adopted a charter for a
11 city-county consolidated form of government or a
12 community commonwealth form of government and which
13 charter provides for representation by districts, the
14 legislative service bureau, and not the temporary
15 county redistricting commission, shall draw a first or
16 second plan as necessary and required by paragraph "a"
17 pursuant to a contract executed with the county. The
18 plan drawn by the legislative service bureau shall be
19 based upon the precinct plan adopted for use by the
20 county and shall be drawn in accordance with section
21 42.4, to the extent applicable.
22 (2) The plan drawn by the legislative service
23 bureau shall be submitted to the temporary county
24 redistricting commission which shall not amend the
25 plan and which shall perform the duties required by
26 paragraphs "b" and "c" concerning the plan. The
27 temporary county redistricting commission shall accept
28 the plan in total or it may request and contract to
29 have a second plan prepared by the legislative service
30 bureau. In doing so, the temporary county
31 redistricting commission shall state its objections to
32 the first plan in writing.
33 (3) After the requirements of paragraphs "b" and
34 "c" have been met with respect to either a first or
35 second plan, the plan drawn by the legislative service
36 bureau and accepted by the temporary county
37 redistricting commission shall be submitted to the
38 governing body for its approval or rejection. If the
39 plan drawn by the legislative service bureau and
40 accepted by the temporary county redistricting
41 commission is rejected by the governing body, the
42 governing body may consider and accept the other plan
43 submitted by the legislative service bureau to the
44 temporary county redistricting commission, if any, or
45 shall direct the temporary county redistricting
46 commission to prepare another plan as provided by
47 paragraph "d".
48 Sec. 2. Section 331.231, subsection 5, Code 2003,
49 is amended to read as follows:
50 5. City-county consolidated form as provided in

Page 2

1 section sections 331.247 through 331.252.
2 Sec. 3. Section 331.232, subsection 3, Code 2003,
3 is amended to read as follows:
4 3. An alternative form of county government shall
5 be submitted to the county electorate by the

6 commission in the form of a charter or charter
7 amendment.
8 Sec. 4. Section 331.234, subsections 3 and 4, Code
9 2003, are amended to read as follows:
10 3. The board shall make available to the
11 commission in-kind services such as office space,
12 printing, supplies, and equipment and. The county
13 shall pay from the segregated account established in
14 subsection 4, the other necessary expenses of the
15 commission including compensation for secretarial,
16 clerical, professional, and consultant services. The
17 total annual expenses, not including the value of in-
18 kind expenses, to be paid from public funds shall not
19 exceed one hundred thousand dollars or an amount equal
20 to thirty cents times the population of the commission
21 area, according to the most recent certified federal
22 census. The commission may employ staff as necessary.
23 4. The expenses of the commission may be paid from
24 the general fund of the county shall be paid by each
25 city and county participating in the charter process
26 or from any combination of public or private funds
27 available for that purpose. Each city's share shall
28 be its pro rata share of the expenses based upon the
29 ratio that the population of the city bears to the
30 total population in the county. The county's share
31 shall be its pro rata share of expenses based upon the
32 ratio that the population of the unincorporated area
33 of the county bears to the total population of the
34 county. The amount paid by each city and county
35 participating in the charter process shall be
36 deposited in a segregated account maintained by the
37 county. The commission's annual expenses may exceed
38 the amount in subsection 3 only if the excess is paid
39 from private funds. If a proposed charter is
40 submitted to the electorate, private funds donated to
41 the commission may be used to promote passage of the
42 proposed charter.
43 Sec. 5. Section 331.235, Code 2003, is amended to
44 read as follows:
45 331.235 COMMISSION PROCEDURES AND REPORTS.
46 1. Within sixty days after its organization, the
47 commission shall hold at least one public hearing for
48 the purpose of receiving information and material
49 which will assist in the drafting of a charter.
50 Notice of the date, time, and place of the hearing

Page 3

1 shall be given as provided in chapter 21. If the
2 commission is created pursuant to section 331.264,
3 subsection 4, the hearing shall be held thirty days
4 after submission of the preliminary report to the

5 board, pursuant to section 331.264, subsection 3.
6 2. Within nine months after the organization of
7 the commission, the commission shall submit a
8 preliminary report to the board, which report may
9 include the text of the proposed charter. If a
10 proposed charter is included in the preliminary
11 report, the report shall also include an analysis of
12 the fiscal impact of the proposed charter. Sufficient
13 copies of the report shall be made available for
14 distribution to residents of the county who request a
15 copy. The commission shall hold at least one public
16 hearing after submission of the preliminary report to
17 obtain public comment. This subsection does not apply
18 if the commission is created pursuant to section
19 331.264, subsection 4.
20 3. Within twenty months after organization, the
21 commission shall submit the final report to the board.
22 If the commission is created pursuant to section
23 331.264, subsection 4, the commission shall submit the
24 final report to the board within five months after
25 submission of the preliminary report to the board
26 pursuant to section 331.264, subsection 3. A
27 commission created pursuant to section 331.264,
28 subsection 4, may adopt a motion granting itself a
29 sixty-day extension of time for submission of its
30 final report. If the commission recommends a charter
31 including a form of government other than the existing
32 form of government, the final report shall include the
33 full text and an explanation of the proposed charter,
34 a statement of whether the elected officers shall be
35 elected on a partisan or nonpartisan basis, an
36 analysis of the fiscal impact of the proposed charter,
37 any comments deemed desirable by the commission, and
38 any minority reports. The final report may recommend
39 no change to the existing form of government and that
40 no charter be submitted to the electorate, in which
41 case, the report shall state the reasons for and
42 against a change in the existing form of government.
43 The final report shall be made available to the
44 residents of the county upon request. A summary of
45 the final report shall be published in the official
46 newspapers of the county and in a newspaper of general
47 circulation in each participating city.
48 4. The commission is dissolved on the date of the
49 general election at which the proposed charter is
50 submitted to the electorate. However, if a charter

Page 4

1 proposing the city-county consolidated form or the
2 community commonwealth form is adopted, the commission
3 is dissolved on the date that the terms of office of

4 the members of the governing body for the alternative
5 form of government commence. If a charter is not
6 recommended, the commission is dissolved upon
7 submission of its final report to the board.
8 Sec. 6. Section 331.237, subsection 1, Code 2003,
9 is amended to read as follows:
10 1. If a The board shall direct the county
11 commissioner of elections to submit to the registered
12 voters of the county the question of whether the
13 proposed charter for county government shall be
14 adopted. The proposed charter for county government
15 is may be submitted at the general election or at a
16 special election held on the day of the regular city
17 election. To be submitted at the general election,
18 the proposed charter must be received not less than
19 five working days before the filing deadline for
20 candidates for county offices specified in section
21 44.4 for the next general election, the board shall
22 direct the county commissioner of elections to submit
23 to the registered voters of the county at the next
24 general election the question of whether the proposed
25 charter shall be adopted. A summary of the proposed
26 charter or amendment shall be published in the
27 official county newspapers and in a newspaper of
28 general circulation in each participating city, if
29 applicable, at least ten but not more than twenty days
30 before the date of the election. If a majority of the
31 votes cast on the question is in favor of the
32 proposal, the proposal is adopted.
33 Sec. 7. Section 331.237, subsection 2, paragraph
34 a, Code 2003, is amended to read as follows:
35 a. The adopted charter shall take effect July 1
36 following the general election at which it is approved
37 unless the charter provides a later effective date.
38 If the adopted charter calls for a change in the form
39 of government, officers to fill elective offices shall
40 be elected in the general election in the even-
41 numbered year following the adoption of the charter.
42 Those county officers holding office at the time of
43 the adoption of the charter shall continue in office
44 until the general election in the even-numbered year
45 following the adoption of the charter. If the charter
46 provides that one or more elective offices are
47 combined, the board of supervisors shall appoint one
48 of the elective officers of the combined offices to
49 serve until the general election in the even-numbered
50 year. If the charter calls for the elimination of an

Page 5

1 elective office, that elective officer's term of
2 office shall expire on the date the adopted charter

3 takes effect.
4 Sec. 8. Section 331.237, Code 2003, is amended by
5 adding the following new subsection:
6 NEW SUBSECTION. 4. Subsections 2 and 3 do not
7 apply to the city-county consolidated form of
8 government or the community commonwealth form of
9 government.
10 Sec. 9. Section 331.238, Code 2003, is amended by
11 adding the following new subsection:
12 NEW SUBSECTION. 4. Subsections 1 and 2 do not
13 apply to the city-county consolidated form of
14 government or the community commonwealth form of
15 government.
16 Sec. 10. Section 331.244, Code 2003, is amended by
17 adding the following new subsection:
18 NEW SUBSECTION. 3. This section does not apply to
19 the city-county consolidated form of government.
20 Sec. 11. Section 331.247, Code 2003, is amended to
21 read as follows:
22 331.247 CITY-COUNTY CONSOLIDATION FORM.
23 1. a county and one or more cities within the
24 county may unite to form a single unit of local
25 government in accordance with this part. A commission
26 appointed pursuant to section 331.233A may propose a
27 charter under which a county and one or more cities
28 within the county may unite to form a single unit of
29 local government, or may propose a charter under which
30 a county and one or more cities within the county may
31 form a combined governance structure for the county
32 and such cities in accordance with this part. The
33 charter shall declare whether the form is a merger of
34 a county and one or more cities to form a single unit
35 of local government or whether the form establishes a
36 combined government structure of a county and one or
37 more cities. Either option proposed shall be referred
38 to as a city-county consolidated form of government.
39 If more than fifty percent of the population of a city
40 resides within the affected county, it is a city
41 within the county for the purposes of this section and
42 may continue its status as a city within the county
43 even if the population of such city falls below the
44 fifty percent threshold in a future census.
45 2. An alternative form of government, including a
46 charter form, for a consolidated unit of government
47 may be submitted to the voters only by a commission
48 established under this chapter. A majority vote by
49 the charter commission is required for the submission
50 to the electorate of an alternative form of government

Page 6

1 for a consolidated unit of local government proposed

2 charter for a city-county consolidated form of
3 government. The charter commission submitting a
4 consolidated form shall issue a final report and
5 proposal.
6 3. An alternative form of government for a A city-
7 county consolidated unit of local government form of
8 government does not need to include more than one
9 city. A city shall not be included unless the city
10 participates in the commission process, and a majority
11 of the electors of the affected city voting approves
12 the proposed charter for the consolidated government.
13 4. If an alternative form of government for a
14 consolidated unit of local government is proposed,
15 approval of the consolidation charter shall be a
16 separate ballot issue from approval of the alternative
17 form of government in those cities proposed to be
18 included in the consolidation. Adoption of the
19 consolidation charter requires the approval of a
20 majority of the votes cast in the entire county. A
21 city named on the ballot is included in the
22 consolidation if the proposed charter is approved by a
23 majority of the votes cast in the city. The
24 consolidation charter shall be effective in regard to
25 a city government only if a majority of the voters of
26 the city voting on the question voted for
27 participation in the consolidation charter.
28 5. A city may request to join an existing city-
29 county consolidated government by resolution of the
30 city council or upon petition of eligible electors of
31 the city equal in number to at least twenty-five
32 percent of the persons who voted at the last general
33 election for the office of governor or president of
34 the United States, whichever is fewer regular city
35 election. Within fifteen days after receiving a valid
36 petition, the city council of the petitioning city
37 shall adopt a resolution in favor of participation and
38 shall immediately, within ten days of adoption,
39 forward the resolution to the legislative governing
40 body of the city-county consolidated government. If a
41 majority of the city-county consolidated legislative
42 governing body of the city-county consolidated
43 government approves the resolution, the question of
44 joining the city-county consolidated government shall
45 be submitted to the electorate of the petitioning city
46 within sixty days after approval of the resolution.
47 6. a. If a charter is adopted, it may be amended
48 at any time by one of the following methods:
49 (1) The governing body of the city-county
50 consolidated form of government, by resolution, may


Page 7

1 submit a proposed amendment to the voters at a general
2 election or at a special election, and the proposed
3 amendment becomes effective upon approval by a
4 majority of those voting.
5 (2) The governing body of the city-county
6 consolidated form of government, by ordinance, may
7 amend the charter. However, within thirty days
8 following publication of the ordinance, if a petition
9 valid under the provisions of section 331.306 is filed
10 with the governing body of the city-county
11 consolidated form of government, the governing body
12 must submit the charter amendment to the voters at a
13 special election and, in such an event, the amendment
14 becomes effective only upon approval of a majority of
15 those voting within the city-county consolidated area.
16 (3) If a petition valid under the provisions of
17 section 331.306 filed with the governing body of the
18 city-county consolidated form of government, proposing
19 an amendment to the charter, the governing body must
20 submit the proposed amendment to the voters at a
21 general election or at a special election and, in such
22 an event, the amendment becomes effective only upon
23 approval of a majority of those voting within the
24 city-county consolidated area.
25 b. If an election is held, the governing body
26 shall submit the question of amending the charter to
27 the electors in substantially the following form:
28 Should the amendment described below be adopted for
29 the city-county consolidated charter of (insert name
30 of county and of each consolidated city)?
31 The ballot must contain a brief description and
32 summary of the proposed amendment.
33 c. An amendment shall not adopt an alternative
34 form of county government but an amendment may allow
35 the governing body of a city-county consolidated form
36 of government that has a combined governance structure
37 to adopt a city-county consolidated form of government
38 under which a county and one or more cities within the
39 county unite to form a single unit of local
40 government.
41 Sec. 12. Section 331.248, subsection 1, Code 2003,
42 is amended to read as follows:
43 1. The charter commission proposing consolidation
44 a city-county consolidated form of government shall
45 prepare, adopt, and submit cause to be submitted to
46 the voters a consolidation the charter including an
47 alternative form of government.
48 Sec. 13. Section 331.248, subsection 2, Code 2003,
49 is amended to read as follows:
50 2. The consolidation charter for a city-county

Page 8

1 consolidated form of government shall:
2 a. Provide for adjustment of existing bonded
3 indebtedness and other obligations in a manner which
4 will provide for a fair and equitable burden of
5 taxation for debt service.
6 b. Provide for establishment of service areas,
7 except that formation of a city-county consolidation
8 government consolidated form of government shall not
9 affect the assignment of electric utility service
10 territories pursuant to chapter 476, and shall not
11 affect the rights of a city to grant a franchise under
12 chapter 364.
13 c. Provide for the transfer or other disposition
14 of property and other rights, claims, assets, and
15 franchises of local governments the county and each
16 city consolidated under the alternative form.
17 d. Provide the official name of the city-county
18 consolidated unit of local government form of
19 government.
20 e. Provide for the transfer, reorganization,
21 abolition, absorption, and adjustment of boundaries of
22 all existing boards, bureaus, commissions, agencies,
23 special districts, and political subdivisions of the
24 city-county consolidated form of government.
25 f. Include other provisions which the county
26 charter commission and the city charter commission
27 elect to include and which are not inconsistent with
28 state law. Provide for the exercise of home rule
29 power and authority not inconsistent with state law.
30 g. Provide for a governing body of an odd number
31 of members, not less than five, but which may exceed
32 the number of members specified in sections 331.201,
33 331.203, and 331.204. The titles of the members of
34 the governing body shall be determined by the charter.
35 h. Provide for a representation plan for the
36 governing body which representation plan may differ
37 from the representation plans provided in section
38 331.206 and in chapter 372. If the plan calls for
39 representation by districts and the charter has been
40 approved in a county whose population is one hundred
41 eighty thousand or more, the plan shall be drawn
42 pursuant to section 331.210A, subsection 2, paragraph
43 "f". The initial representation plan for such a
44 county shall be drawn as provided in section 331.210A,
45 subsection 2, paragraph "f", within ninety days after
46 the election at which the charter is approved. For
47 the initial representation plan, the charter
48 commission shall assume the role of the governing body
49 for purposes of this paragraph and section 331.210A,
50 subsection 2, paragraphs "d" through "f".

Page 9

1 i. Provide for the initial compensation for
2 members of the governing body and for a method of
3 changing the compensation.
4 j. Notwithstanding section 331.238, subsection 3,
5 provide whether the election of its officers shall be
6 on a partisan or nonpartisan basis.
7 Sec. 14. Section 331.248, Code 2003, is amended by
8 adding the following new subsection:
9 NEW SUBSECTION. 4. The consolidation charter may
10 include other provisions which the commission elects
11 to include and which are not irreconcilable with state
12 law. These provisions may include but are not limited
13 to the following:
14 a. Provide for a method of selecting officers of
15 the governing body and fixing their terms of office
16 which may differ from the requirements of sections
17 331.208 through 331.211 and the provisions of chapter
18 372.
19 b. Provide for meetings of the governing body and
20 rules of procedure which may differ from the
21 requirements of section 331.213, except that the
22 meetings shall be scheduled and conducted in
23 compliance with chapter 21.
24 c. Provide for combining the duties of elected
25 officials of the county, for eliminating elected
26 offices and the assumption of the duties of those
27 offices by appointed officials, and for adding to,
28 deleting, or otherwise changing the duties of
29 officials, elected or otherwise, of the county and
30 each consolidated city.
31 d. Provide for the organization of city and county
32 departments, agencies, or boards. The organization
33 plan may provide for the abolition or consolidation of
34 a department, agency, board, or commission and the
35 assumption of its powers and duties by the governing
36 body or by another department, agency, board, or
37 commission. This paragraph does not apply to the
38 board of trustees of a county hospital.
39 e. Provide for a method for the governing body or
40 another office to exercise the powers and duties of
41 the township trustees, in lieu of their election or
42 appointment.
43 Sec. 15. Section 331.249, Code 2003, is amended to
44 read as follows:
45 331.249 EFFECT OF CONSOLIDATION.
46 1. a. The consolidation of one or more cities and
47 one or more counties shall create a unified government
48 which includes a municipal corporation and a county.
49 A city-county consolidated form of government under
50 which a county and one or more cities within the

Page 10

1 county unite to form a single unit of local government
2 shall create a unified government which includes a
3 municipal corporation and a county. The consolidated
4 unit shall have the separate status of a county and a
5 city for all purposes and shall constitute two
6 political subdivisions, a consolidated city and a
7 county, under combined governance. The consolidated
8 unit shall retain one separate constitutional debt
9 limitation with respect to its status as a city and a
10 separate constitutional debt limitation with respect
11 to its status as a county.
12 b. The governing body of a city-county
13 consolidated form of government under which a county
14 and one or more cities within the county form a
15 combined governance structure shall have, with respect
16 to the county, the power and authority of the board of
17 supervisors of a county, and, with respect to each
18 city, the power and authority of the city council of a
19 city. Each consolidated city and the county
20 constitute separate political subdivisions. Each
21 consolidated city and the county shall retain a
22 separate constitutional debt limitation and shall each
23 have the authority to issue bonds and incur financial
24 obligations in accordance with the provisions of state
25 law applicable to a city or a county, respectively.
26 2. A The city-county consolidated unit of local
27 government form of government may include an area
28 which is located in another county, but which is
29 within the corporate boundaries of one of the
30 consolidated cities. County services shall may be
31 provided in the extra-county area and taxes to fund
32 those services shall may be collected in the extra-
33 county area by the consolidated government, to the
34 extent permitted by the Constitution of the State of
35 Iowa. In addition to the right to vote in the county
36 of residence, electors residing in the extra-county
37 area shall have the right to vote on any matter
38 related to the city-county consolidated unit of local
39 form of government, including election of its
40 officials governing body.
41 If a city-county consolidation charter is proposed,
42 within ninety days following the final report of the
43 commission, a resident or property owner of the
44 commission area proposed to be consolidated may bring
45 an action in district court for declaratory judgment
46 to determine the legality of the proposed charter and
47 to otherwise declare the effect of the charter. The
48 court shall expedite its review and determination in
49 this matter. The referendum on the proposed charter
50 shall be stayed during pendency of the action and for

Page 11

1 such additional time during which the proposed charter
2 or its enabling legislation does not conform to the
3 Constitution or laws of the State of Iowa. If in its
4 final judgment the court determines that the proposed
5 charter fails to conform to the Constitution or laws
6 of this state, the commission shall have a period of
7 six months in which to revise and resubmit the
8 proposed charter.
9 3. All provisions of law authorizing contributions
10 of any kind, in money or otherwise, from the state or
11 federal government to counties and cities shall remain
12 in full force with respect to each city and the county
13 comprising a city-county consolidated local form of
14 government.
15 4. The adoption of the city-county consolidated
16 form of government does not alter any right or
17 liability of the county or consolidated city in effect
18 at the time of the election at which the charter was
19 adopted.
20 5. All departments and agencies of the county and
21 of each consolidated city shall continue to operate
22 until their authority to operate is superseded by
23 action of the governing body.
24 6. Upon the effective date of the adopted charter,
25 the county shall adopt the city-county consolidated
26 form of government by ordinance, and shall file a copy
27 with the secretary of state and maintain available
28 copies for public inspection.
29 7. Members of the governing body of the county and
30 of each consolidated city shall continue in office
31 until the members of the governing body of the city-
32 county consolidated form of government have been
33 elected and sworn into office, at which time the
34 offices of the former governing bodies shall be
35 abolished, and the terms of the members of the former
36 governing bodies shall be terminated. During the
37 period between the effective date of the charter and
38 the election and qualification of the elected members
39 of the new governing body, the former governing bodies
40 of each consolidated city and of the county shall
41 continue to perform their duties and shall assist in
42 planning the transition to the city-county
43 consolidated form of government.
44 8. If a city-county consolidation charter is
45 submitted to the electorate but is not adopted,
46 another charter shall not be submitted to the
47 electorate for at least two years from the date of the
48 election at which the charter was rejected. If a
49 city-county consolidation charter is adopted, a
50 proposed charter for another alternative form of

Page 12

1 county government shall not be submitted to the
2 electorate for at least six years from the date of the
3 election at which the charter was adopted.
4 Sec. 16. Section 331.250, Code 2003, is amended to
5 read as follows:
6 331.250 GENERAL POWERS OF CONSOLIDATED LOCAL
7 GOVERNMENTS.
8 The consolidation charter shall provide for the
9 delivery of services to specified areas of the
10 consolidated local government county and of each
11 consolidated city. The governing body of the
12 consolidated government shall administer supervise the
13 administration of the provision of services in each of
14 the designated service areas and shall have the
15 authority to determine the boundaries of the service
16 areas. For each service provided by the consolidated
17 government, the consolidated government shall assume
18 the same statutory rights, powers, and duties relating
19 to the provision of the service as if the county or
20 the member city were itself providing the service to
21 its citizens.
22 Sec. 17. Section 331.251, Code 2003, is amended to
23 read as follows:
24 331.251 RULES, ORDINANCES, AND RESOLUTIONS OF
25 CONSOLIDATED UNIT GOVERNMENT.
26 Within two years after ratification of the
27 consolidation, the governing body of the consolidated
28 unit of local government shall revise, repeal, or
29 reaffirm all rules, ordinances, and resolutions in
30 force within the participating county and cities at
31 the time of consolidation. Each rule, ordinance, or
32 resolution in force within a county or within a city
33 at the time of consolidation shall remain in force
34 within the former geographic jurisdiction that county
35 or within that city until superseded by action of the
36 new governing body, unless the rule, ordinance, or
37 resolution is in conflict with a provision of the
38 charter, in which case, the charter provision shall
39 supersede the conflicting rule, ordinance, or
40 resolution. Ordinances and resolutions relating to
41 public improvements to be paid for in whole or in part
42 by special assessments shall remain in effect until
43 paid in full.
44 Sec. 18. Section 331.252, Code 2003, is amended to
45 read as follows:
46 331.252 FORM OF BALLOT -- CITY-COUNTY
47 CONSOLIDATION.
48 The question of city-county consolidation shall be
49 submitted to the electors in substantially the
50 following form:

Page 13

1 Should the corporate existence and governments of
2 the county of ...... and the cities of ...... and
3 ...... be consolidated into one joint city-county
4 corporation government charter described below be
5 adopted for (insert name of county and each city
6 proposing to consolidate)?
7 If section 331.247, subsection 4, applies, the
8 following question shall be placed on the ballot of
9 each participating city:
10 Should the (name of city or second county)
11 participate in the consolidation charter?
12 The ballot must contain a brief description and
13 summary of the proposed charter or amendment.
14 Sec. 19. Section 331.254, subsection 7, Code 2003,
15 is amended to read as follows:
16 7. The merger of the elective offices of each
17 consolidating county with the election of new officers
18 within sixty days after the effective date of the
19 charter which shall specifically provide whether the
20 election of new officers shall be on a partisan or
21 nonpartisan basis, notwithstanding section 331.238,
22 subsection 3. The elections shall be conducted by the
23 county commissioner of elections of each county. No
24 primary election shall be held. Nominations shall be
25 made pursuant to section 43.78 and chapters 44 and 45,
26 as applicable, except that the filing deadline shall
27 be forty days before the election.
28 Sec. 20. Section 331.260, subsection 2, Code 2003,
29 is amended to read as follows:
30 2. A charter proposing a community commonwealth as
31 an alternative form of government may be submitted to
32 the voters only by a commission established under
33 section 331.232. A majority vote by the commission is
34 required for the submission of a charter proposing a
35 community commonwealth as an alternative form of local
36 government. The commission submitting a community
37 commonwealth form of government shall issue a final
38 report and proposal. If an alternative form of
39 government for a community commonwealth form of local
40 government is proposed, approval of the commonwealth
41 charter shall be a separate ballot issue from approval
42 of the alternative form of government in those cities
43 proposed to be included in the commonwealth. The
44 commonwealth charter shall be effective in regard to a
45 city government only if a majority of the voters of
46 the city voting on the question voted for
47 participation in the commonwealth charter. Adoption
48 of the proposed community commonwealth charter
49 requires the approval of a majority of the votes cast
50 in the entire county. A city named on the ballot is

Page 14

1 included in the community commonwealth if the proposed
2 community commonwealth charter is approved by a
3 majority of the votes cast in the city.
4 The question of forming a community commonwealth
5 shall be submitted to the electorate in substantially
6 the same form manner as provided in section 331.247,
7 subsection 4, and section 331.252.
8 Sec. 21. Section 331.261, subsection 2, Code 2003,
9 is amended to read as follows:
10 2. An elective legislative body established in the
11 manner provided for county boards of supervisors under
12 sections 331.201 through 331.216 and section 331.238
13 331.248, subsection 2.
14 Sec. 22. Section 331.261, subsection 11, Code
15 2003, is amended to read as follows:
16 11. The partisan Notwithstanding section 331.238,
17 subsection 3, whether the election of community
18 commonwealth government officials shall be on a
19 partisan or nonpartisan basis.
20 Sec. 23. Section 331.261, unnumbered paragraph 2,
21 Code 2003, is amended to read as follows:
22 The community commonwealth charter may include
23 other provisions which the commission elects to
24 include and which are not inconsistent irreconcilable
25 with state law, including, but not limited to, those
26 provisions in section 331.248, subsection 4.
27 Sec. 24. Section 331.262, Code 2003, is amended by
28 adding the following new subsections:
29 NEW SUBSECTION. 1A. The adoption of the community
30 commonwealth form of government does not alter any
31 right or liability of the county or member city in
32 effect at the time of the election at which the
33 charter was adopted.
34 NEW SUBSECTION. 1B. All departments and agencies
35 of the county and of each member city shall continue
36 to operate until their authority to operate is
37 superseded by action of the governing body.
38 NEW SUBSECTION. 1C. All ordinances or resolutions
39 in effect remain effective until amended or repealed,
40 unless they are irreconcilable with the adopted
41 charter.
42 NEW SUBSECTION. 1D. Upon the effective date of
43 the adopted charter, the county shall adopt the
44 community commonwealth form of government by
45 ordinance, and shall file a copy with the secretary of
46 state and maintain available copies for public
47 inspection.
48 NEW SUBSECTION. 1E. Members of the governing body
49 of the county and of each member city shall continue
50 in office until the members of the governing body of

Page 15

1 the community commonwealth form of government have
2 been elected and sworn into office, at which time the
3 offices of the former governing bodies shall be
4 abolished, and the terms of the members of the former
5 governing bodies shall be terminated. During the
6 period between the effective date of the charter and
7 the election and qualification of the elected members
8 of the new governing body, the former governing bodies
9 of each member city and of the county shall continue
10 to perform their duties and shall assist in planning
11 the transition to the community commonwealth form of
12 government.
13 NEW SUBSECTION. 1F. If a community commonwealth
14 charter is submitted to the electorate but is not
15 adopted, another charter shall not be submitted to the
16 electorate for at least two years from the date of the
17 election at which the charter was rejected. If a
18 community commonwealth charter is adopted, a proposed
19 charter for another alternative form of county
20 government shall not be submitted to the electorate
21 for at least six years from the date of the election
22 at which the charter was adopted.
23 Sec. 25. NEW SECTION. 331.264 LOCAL GOVERNMENT
24 ORGANIZATION REVIEW COMMITTEE.
25 1. A local government organization review
26 committee may be created in a county. The committee
27 shall be composed of the following members:
28 a. Three city council members appointed by the
29 city council of each participating city with a
30 population of twenty-five thousand or more.
31 b. Three county supervisors appointed by the
32 county board of supervisors.
33 c. One city council member appointed by each
34 participating city with a population of less than
35 twenty-five thousand.
36 d. One member shall be appointed by each state
37 legislator whose legislative district is located in
38 the county if a majority of the constituents of that
39 legislative district reside in the county. However,
40 if a county does not have a state representative's
41 legislative district which has a majority of a state
42 representative's constituency residing in the county,
43 the state representative having the largest plurality
44 of constituents residing in the county shall appoint a
45 member. The member appointed by each state legislator
46 shall be a person who is not holding elected office
47 and who is a resident of the legislative district of
48 the state legislator. If any portion of a legislative
49 district is in the unincorporated area of the county,
50 the member appointed by that legislator shall be a

Page 16

1 resident of the unincorporated area of the county.
2 e. Three members appointed by the township
3 trustees of all the townships in the county and an
4 additional member appointed by the township trustees
5 for each five percent of the total population of the
6 county residing in the unincorporated area of the
7 county. The members shall be residents of the
8 unincorporated area of the county and shall be persons
9 who are not holding elected office other than that of
10 township trustee. The county auditor shall determine
11 the date and location for a meeting of the township
12 trustees of all the townships in the county at which
13 meeting the appointments shall be made and shall
14 provide written notice of the meeting to the trustees.
15 The meeting shall be held in accordance with chapter
16 21.
17 Organization and expenses of the committee are
18 subject to section 331.234 as if the committee were a
19 city-county consolidation or community commonwealth
20 commission. Sections 69.16 and 69.16A shall not apply
21 to the committee. However, a city allowed more than
22 one appointment shall balance its appointments in
23 accordance with sections 69.16 and 69.16A, when
24 possible.
25 2. Members shall be appointed to the organization
26 review committee within thirty days after any of the
27 following occurs:
28 a. The county board of supervisors and each city
29 council in the county adopt a joint resolution calling
30 for appointment of members to the committee and files
31 the resolution with the county board of supervisors.
32 b. The county board of supervisors in a county
33 adopts a resolution calling for appointment of members
34 to the committee.
35 c. A petition signed by eligible electors of the
36 county equal in number to at least twenty-five percent
37 of the votes cast in the county for the office of
38 president of the United States or governor at the
39 preceding general election or the signatures of at
40 least ten thousand eligible electors of the county,
41 whichever number is fewer, is filed with the county
42 board of supervisors.
43 3. Within seven months after the organization of
44 the organization review committee, the committee shall
45 submit a preliminary report to the county board of
46 supervisors with a recommendation as to what the
47 committee believes to be the best proposal for an
48 alternative form of government for the county. The
49 auditor's office shall make the report available to
50 the public upon request. A summary of the report

Page 17

1 shall be published in the official newspapers of the
2 county and in a newspaper of general circulation in
3 each participating city.
4 4. If the committee report recommends a city-
5 county consolidation or community commonwealth, the
6 committee shall continue its existence and be
7 designated, and operate with the powers and duties of,
8 a commission created pursuant to section 331.233A. If
9 the committee report recommends a multicounty
10 consolidation, the committee shall continue its
11 existence and be designated, and operate with the
12 powers and duties of, a commission created pursuant to
13 section 331.233. If the committee recommends an
14 alternative form of government, that recommendation
15 shall state whether elections conducted under that
16 form of government shall be partisan or nonpartisan.
17 5. This section does not apply to a county in
18 which a charter commission has been established and is
19 operating as of July 1, 2003.
20 Sec. 26. Section 372.1, Code 2003, is amended by
21 adding the following new subsections:
22 NEW SUBSECTION. 7. City-county consolidated form
23 as provided in sections 331.247 through 331.252.
24 NEW SUBSECTION. 8. Community commonwealth as
25 provided in sections 331.260 through 331.263.
26 Sec. 27. Section 372.2, unnumbered paragraph 1,
27 Code 2003, is amended to read as follows:
28 A Unless otherwise provided by law, a city may
29 adopt a different form of government not more often
30 than once in a six-year period. A different form,
31 other than a home rule charter, or special charter,
32 city-county consolidated form of government, or
33 community commonwealth must be adopted as follows:
34 Sec. 28. IMPLEMENTATION OF ACT. Section 25B.2,
35 subsection 3, shall not apply to this Act.
36 Sec. 29. EFFECTIVE AND APPLICABILITY DATES. This
37 Act, being deemed of immediate importance, takes
38 effect upon enactment and applies to charter
39 commissions in existence on the effective date of this
40 Act."

Amendment H-1176 was adopted.

SENATE FILE 390 SUBSTITUTED FOR HOUSE FILE 646

Elgin of Linn asked and received unanimous consent to substitute
Senate File 390 for House File 646.


Senate File 390, a bill for an act relating to certain alternative
forms of county and city government by providing for county
redistricting and representation, charter commission administration,
application of various statutory requirements, the manner in which a
charter may be proposed and adopted, amendment of a charter, the
organization of the governing body, and inclusions in a charter,
making technical changes relating to the administration and
authority of a city-county consolidated government and a community
commonwealth, allowing formation of local government organization
review committees, and including effective and applicability date
provisions, was taken up for consideration.

Jochum of Dubuque asked and received unanimous consent that
amendment H-1193 be deferred.

Hogg of Linn asked and received unanimous consent to withdraw
amendment H-1164 filed by him on March 25, 2003.

Elgin of Linn asked and received unanimous consent to withdraw
amendment H-1233 filed by him on April 2, 2003.

Hogg of Linn asked and received unanimous consent to withdraw
amendments H-1594 and H-1601 filed by him from the floor.

Hogg of Linn asked and received unanimous consent that
amendments H-1165, 1169 and 1166 be deferred.

Van Engelenhoven of Marion asked and received unanimous
consent to withdraw amendment H-1181 filed by him on March 27,
2003.

Hogg of Linn asked and received unanimous consent that
amendment H-1167 be deferred.

Van Engelenhoven of Marion asked and received unanimous
consent to withdraw amendment H-1191 filed by Van Engelenhoven
of Marion, et al., on March 27, 2003, placing out of order amendment
H-1203 filed by Wise of Lee on March 31, 2003.

Mertz of Kossuth offered the following amendment H-1451 filed by
her and moved its adoption:


H-1451

1 Amend Senate File 390, as amended, passed, and
2 reprinted by the Senate, as follows:
3 1. Page 7, by striking lines 19 through 31, and
4 inserting the following:
5 "4. If an alternative form of government for a
6 consolidated unit of local government is proposed,
7 approval of the consolidation charter shall be a
8 separate ballot issue from approval of the alternative
9 form of government in those cities proposed to be
10 included in the consolidation. The consolidation
11 charter shall be effective in regard to a city
12 government only if a majority of the voters of the
13 city voting on the question voted for participation in
14 the consolidation charter. The consolidation charter
15 is adopted only if all of the following apply:
16 a. A majority of the votes cast in the
17 unincorporated area of the county approves the
18 proposal.
19 b. A majority of the votes cast in the entire
20 county approves the proposal.
21 c. A majority of the votes cast in at least one
22 city named on the ballot approves the proposal."
23 2. Page 17, by striking lines 8 through 13, and
24 inserting the following: "participation in the
25 commonwealth charter. The community commonwealth
26 charter is adopted only if all of the following apply:
27 a. A majority of the votes cast in the
28 unincorporated area of the county approves the
29 proposal.
30 b. A majority of the votes cast in the entire
31 county approves the proposal.
32 c. A majority of the votes cast in at least one
33 city named on the ballot approves the proposal."

Roll call was requested by Mertz of Kossuth and Huser of Polk.

Rule 75 was invoked.

On the question "Shall amendment H-1451 be adopted?" (S.F. 390)

The ayes were, 48:
Bell Berry Cohoon Connors
Dandekar Davitt Eichhorn Fallon
Foege Ford Frevert Gaskill
Granzow Greimann Heaton Heddens
Hogg Hunter Huser Jochum

 



Kuhn Lensing Lykam Mascher
McCarthy Mertz Miller Murphy
Myers Oldson Olson, D. Osterhaus
Petersen Quirk Reasoner Shoultz
Smith Stevens Struyk Swaim
Taylor, D. Taylor, T. Thomas Wendt
Whitaker Whitead Winckler Wise

The nays were, 51:
Alons Arnold Baudler Boal
Boddicker Boggess Carroll Chambers
De Boef Dennis Dix Dolecheck
Drake Elgin Freeman Gipp
Greiner Hahn Hansen Hanson
Hoffman Horbach Huseman Hutter
Jacobs Jenkins Jones Klemme
Kramer Kurtenbach Lalk Lukan
Maddox Manternach Olson, S. Paulsen
Raecker Rants, Spkr. Rasmussen Rayhons
Sands Schickel Tjepkes Tymeson
Upmeyer Van Engelenhoven Van Fossen, J.K. Van Fossen, J.R.
Watts Wilderdyke Roberts,
Presiding

 


Absent or not voting, 1:
Bukta

 


Amendment H-1451 lost.

Hogg of Linn asked and received unanimous consent that
amendment H-1168 be deferred.

Van Engelenhoven of Marion asked and received unanimous
consent to withdraw amendment H-1179 filed by Van Engelenhoven,
et al., on March 26, 2003.

Hogg of Linn asked and received unanimous consent to withdraw
amendment H-1182 filed by him on March 27, 2003.

Elgin of Linn asked and received unanimous consent to withdraw
amendment H-1232 filed by him on April 2, 2003.

Hogg of Linn asked and received unanimous consent to withdraw
amendment H-1178 filed by him on March 26, 2003.


Wise of Lee asked and received unanimous consent to withdraw
amendment H-1206 filed by him on March 31, 2003.

Jochum of Dubuque offered the following amendment H-1193,
previously deferred, filed by her and moved its adoption:

H-1193

1 Amend Senate File 390, 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 "Section 1. Section 331.210A, subsection 2, Code
6 2003, is amended by adding the following new
7 paragraph:
8 NEW PARAGRAPH. f. (1) Notwithstanding the
9 provisions of this section to the contrary, a county
10 that has adopted a charter for a city-county
11 consolidated form of government or a community
12 commonwealth form of government and which charter
13 provides for representation by districts, the
14 legislative service bureau, and not the temporary
15 county redistricting commission, shall draw a first or
16 second plan as necessary and required by paragraph "a"
17 pursuant to a contract executed with the county. The
18 plan drawn by the legislative service bureau shall be
19 based upon the precinct plan adopted for use by the
20 county and shall be drawn in accordance with section
21 42.4, to the extent applicable.
22 (2) The plan drawn by the legislative service
23 bureau shall be submitted to the temporary county
24 redistricting commission which shall not amend the
25 plan and which shall perform the duties required by
26 paragraphs "b" and "c" concerning the plan. The
27 temporary county redistricting commission shall accept
28 the plan in total or it may request and contract to
29 have a second plan prepared by the legislative service
30 bureau. In doing so, the temporary county
31 redistricting commission shall state its objections to
32 the first plan in writing.
33 (3) After the requirements of paragraphs "b" and
34 "c" have been met with respect to either a first or
35 second plan, the plan drawn by the legislative service
36 bureau and accepted by the temporary county
37 redistricting commission shall be submitted to the
38 governing body for its approval or rejection. If the
39 plan drawn by the legislative service bureau and
40 accepted by the temporary county redistricting
41 commission is rejected by the governing body, the
42 governing body may consider and accept the other plan

43 submitted by the legislative service bureau to the
44 temporary county redistricting commission, if any, or
45 shall direct the temporary county redistricting
46 commission to prepare another plan as provided by
47 paragraph "d".
48 Sec. 2. Section 331.231, subsection 5, Code 2003,
49 is amended to read as follows:
50 5. City-county consolidated form as provided in

Page 2

1 section sections 331.247 through 331.252.
2 Sec. 3. Section 331.232, subsection 3, Code 2003,
3 is amended to read as follows:
4 3. An alternative form of county government shall
5 be submitted to the county electorate by the
6 commission in the form of a charter or charter
7 amendment.
8 Sec. 4. Section 331.234, subsections 3 and 4, Code
9 2003, are amended to read as follows:
10 3. The board shall make available to the
11 commission in-kind services such as office space,
12 printing, supplies, and equipment and. The county
13 shall pay from the segregated account established in
14 subsection 4, the other necessary expenses of the
15 commission including compensation for secretarial,
16 clerical, professional, and consultant services. The
17 total annual expenses, not including the value of in-
18 kind expenses, to be paid from public funds shall not
19 exceed one hundred thousand dollars or an amount equal
20 to thirty cents times the population of the commission
21 area, according to the most recent certified federal
22 census. The commission may employ staff as necessary.
23 4. The expenses of the commission may be paid from
24 the general fund of the county shall be paid by each
25 city and county participating in the charter process
26 or from any combination of public or private funds
27 available for that purpose. Each city's share shall
28 be its pro rata share of the expenses based upon the
29 ratio that the population of the city bears to the
30 total population in the county. The county's share
31 shall be its pro rata share of expenses based upon the
32 ratio that the population of the unincorporated area
33 of the county bears to the total population of the
34 county. The amount paid by each city and county
35 participating in the charter process shall be
36 deposited in a segregated account maintained by the
37 county. The commission's annual expenses may exceed
38 the amount in subsection 3 only if the excess is paid
39 from private funds. If a proposed charter is
40 submitted to the electorate, private funds donated to
41 the commission may be used to promote passage of the

42 proposed charter.
43 Sec. 5. Section 331.235, Code 2003, is amended to
44 read as follows:
45 331.235 COMMISSION PROCEDURES AND REPORTS.
46 1. Within sixty days after its organization, the
47 commission shall hold at least one public hearing for
48 the purpose of receiving information and material
49 which will assist in the drafting of a charter.
50 Notice of the date, time, and place of the hearing

Page 3

1 shall be given as provided in chapter 21. If the
2 commission is created pursuant to section 331.264,
3 subsection 4, the hearing shall be held thirty days
4 after submission of the preliminary report to the
5 board, pursuant to section 331.264, subsection 3.
6 2. Within nine months after the organization of
7 the commission, the commission shall submit a
8 preliminary report to the board, which report may
9 include the text of the proposed charter. If a
10 proposed charter is included in the preliminary
11 report, the report shall also include an analysis of
12 the fiscal impact of the proposed charter. Sufficient
13 copies of the report shall be made available for
14 distribution to residents of the county who request a
15 copy. The commission shall hold at least one public
16 hearing after submission of the preliminary report to
17 obtain public comment. This subsection does not apply
18 if the commission is created pursuant to section
19 331.264, subsection 4.
20 3. Within twenty months after organization, the
21 commission shall submit the final report to the board.
22 If the commission is created pursuant to section
23 331.264, subsection 4, the commission shall submit the
24 final report to the board within five months after
25 submission of the preliminary report to the board
26 pursuant to section 331.264, subsection 3. A
27 commission created pursuant to section 331.264,
28 subsection 4, may adopt a motion granting itself a
29 sixty-day extension of time for submission of its
30 final report. If the commission recommends a charter
31 including a form of government other than the existing
32 form of government, the final report shall include the
33 full text and an explanation of the proposed charter,
34 a statement of alternatives considered including but
35 not limited to the potential for agreements under
36 chapter 28E, a statement that the elected officers
37 shall be elected on a partisan basis, an analysis of
38 the fiscal impact of the proposed charter, any
39 comments deemed desirable by the commission, and any
40 minority reports. The final report may recommend no

41 change to the existing form of government and that no
42 charter be submitted to the electorate, in which case,
43 the report shall state the reasons for and against a
44 change in the existing form of government. The final
45 report shall be made available to the residents of the
46 county upon request. A summary of the final report
47 shall be published in the official newspapers of the
48 county and in a newspaper of general circulation in
49 each participating city.
50 4. The commission is dissolved on the date of the

Page 4

1 general election at which the proposed charter is
2 submitted to the electorate. However, if a charter
3 proposing the city-county consolidated form or the
4 community commonwealth form is adopted, the commission
5 is dissolved on the date that the terms of office of
6 the members of the governing body for the alternative
7 form of government commence. If a charter is not
8 recommended, the commission is dissolved upon
9 submission of its final report to the board.
10 Sec. 6. Section 331.237, subsection 3, Code 2003,
11 is amended to read as follows:
12 3. If a charter is submitted to the electorate but
13 is not adopted, another charter shall not be submitted
14 to the electorate for two six years. If a charter is
15 adopted, it may be amended at any time. If a charter
16 is adopted, a proposed charter for another alternative
17 form of county government shall not be submitted to
18 the electorate for six years.
19 Sec. 7. Section 331.237, Code 2003, is amended by
20 adding the following new subsection:
21 NEW SUBSECTION. 4. Subsections 2 and 3 do not
22 apply to the city-county consolidated form of
23 government or the community commonwealth form of
24 government.
25 Sec. 8. Section 331.238, Code 2003, is amended by
26 adding the following new subsection:
27 NEW SUBSECTION. 4. Subsections 1 and 2 do not
28 apply to the city-county consolidated form of
29 government or the community commonwealth form of
30 government.
31 Sec. 9. Section 331.244, Code 2003, is amended by
32 adding the following new subsection:
33 NEW SUBSECTION. 3. This section does not apply to
34 the city-county consolidated form of government.
35 Sec. 10. Section 331.247, Code 2003, is amended to
36 read as follows:
37 331.247 CITY-COUNTY CONSOLIDATION FORM.
38 1. a county and one or more cities within the
39 county may unite to form a single unit of local

40 government in accordance with this part. A commission
41 appointed pursuant to section 331.233A may propose a
42 charter under which a county and one or more cities
43 within the county may unite to form a single unit of
44 local government, or may propose a charter under which
45 a county and one or more cities within the county may
46 form a combined governance structure for the county
47 and such cities in accordance with this part. The
48 charter shall declare whether the form is a merger of
49 a county and one or more cities to form a single unit
50 of local government or whether the form establishes a

Page 5

1 combined government structure of a county and one or
2 more cities. Either option proposed shall be referred
3 to as a city-county consolidated form of government.
4 If more than fifty percent of the population of a city
5 resides within the affected county, it is a city
6 within the county for the purposes of this section and
7 may continue its status as a city within the county
8 even if the population of such city falls below the
9 fifty percent threshold in a future census.
10 2. An alternative form of government, including a
11 charter form, for a consolidated unit of government
12 may be submitted to the voters only by a commission
13 established under this chapter. A majority vote by
14 the charter commission is required for the submission
15 to the electorate of an alternative form of government
16 for a consolidated unit of local government proposed
17 charter for a city-county consolidated form of
18 government. The charter commission submitting a
19 consolidated form shall issue a final report and
20 proposal.
21 3. An alternative form of government for a A city-
22 county consolidated unit of local government form of
23 government does not need to include more than one
24 city. A city shall not be included unless the city
25 participates in the commission process, and a majority
26 of the electors of the affected city voting approves
27 the proposed charter for the consolidated government.
28 4. If an alternative form of government for a
29 consolidated unit of local government is proposed,
30 approval of the consolidation charter shall be a
31 separate ballot issue from approval of the alternative
32 form of government in those cities proposed to be
33 included in the consolidation. The consolidation
34 charter shall be effective in regard to a city
35 government only if a majority of the voters of the
36 city voting on the question voted for participation in
37 the consolidation charter. A city named on the ballot
38 shall consolidate with the county if a majority of the

39 votes cast in the city on the proposal approves the
40 proposal. If one or more cities named on the ballot
41 approves the proposal, the charter is adopted if both
42 a majority of the votes cast in the unincorporated
43 area of the county approves the proposal and a
44 majority of the votes cast in the entire county
45 approves the proposal.
46 5. A city may request to join an existing city-
47 county consolidated government by resolution of the
48 city council or upon petition of eligible electors of
49 the city equal in number to at least twenty-five
50 percent of the persons who voted at the last general

Page 6

1 election for the office of governor or president of
2 the United States, whichever is fewer regular city
3 election. Within fifteen days after receiving a valid
4 petition, the city council of the petitioning city
5 shall adopt a resolution in favor of participation and
6 shall immediately, within ten days of adoption,
7 forward the resolution to the legislative governing
8 body of the city-county consolidated government. If a
9 majority of the city-county consolidated legislative
10 governing body of the city-county consolidated
11 government approves the resolution, the question of
12 joining the city-county consolidated government shall
13 be submitted to the electorate of the petitioning city
14 within sixty days after approval of the resolution.
15 6. a. If a charter is adopted, it may be amended
16 at any time by one of the following methods:
17 (1) The governing body of the city-county
18 consolidated form of government, by resolution, may
19 submit a proposed amendment to the voters at a general
20 election, and the proposed amendment becomes effective
21 upon approval by a majority of those voting.
22 (2) The governing body of the city-county
23 consolidated form of government, by ordinance, may
24 amend the charter. However, within thirty days
25 following publication of the ordinance, if a petition
26 valid under the provisions of section 331.306 is filed
27 with the governing body of the city-county
28 consolidated form of government, the governing body
29 must submit the charter amendment to the voters at the
30 next general election and, in such an event, the
31 amendment becomes effective only upon approval of a
32 majority of those voting within the city-county
33 consolidated area.
34 (3) If a petition valid under the provisions of
35 section 331.306 filed with the governing body of the
36 city-county consolidated form of government, proposing
37 an amendment to the charter, the governing body must

38 submit the proposed amendment to the voters at a
39 general election and, in such an event, the amendment
40 becomes effective only upon approval of a majority of
41 those voting within the city-county consolidated area.
42 b. If an election is held, the governing body
43 shall submit the question of amending the charter to
44 the electors in substantially the following form:
45 Should the amendment described below be adopted for
46 the city-county consolidated charter of (insert name
47 of county and of each consolidated city)?
48 The ballot must contain a brief description and
49 summary of the proposed amendment.
50 c. An amendment shall not adopt an alternative

Page 7

1 form of county government but an amendment may allow
2 the governing body of a city-county consolidated form
3 of government that has a combined governance structure
4 to adopt a city-county consolidated form of government
5 under which a county and one or more cities within the
6 county unite to form a single unit of local
7 government.
8 Sec. 11. Section 331.248, subsection 1, Code 2003,
9 is amended to read as follows:
10 1. The charter commission proposing consolidation
11 a city-county consolidated form of government shall
12 prepare, adopt, and submit cause to be submitted to
13 the voters a consolidation the charter including an
14 alternative form of government.
15 Sec. 12. Section 331.248, subsection 2, Code 2003,
16 is amended to read as follows:
17 2. The consolidation charter for a city-county
18 consolidated form of government shall:
19 a. Provide for adjustment of existing bonded
20 indebtedness and other obligations in a manner which
21 will provide for a fair and equitable burden of
22 taxation for debt service.
23 b. Provide for establishment of service areas,
24 except that formation of a city-county consolidation
25 government consolidated form of government shall not
26 affect the assignment of electric utility service
27 territories pursuant to chapter 476, and shall not
28 affect the rights of a city to grant a franchise under
29 chapter 364.
30 c. Provide for the transfer or other disposition
31 of property and other rights, claims, assets, and
32 franchises of local governments the county and each
33 city consolidated under the alternative form.
34 d. Provide the official name of the city-county
35 consolidated unit of local government form of
36 government.

37 e. Provide for the transfer, reorganization,
38 abolition, absorption, and adjustment of boundaries of
39 all existing boards, bureaus, commissions, agencies,
40 special districts, and political subdivisions of the
41 city-county consolidated form of government.
42 f. Include other provisions which the county
43 charter commission and the city charter commission
44 elect to include and which are not inconsistent with
45 state law. Provide for the exercise of home rule
46 power and authority not inconsistent with state law.
47 g. Provide for a governing body of an odd number
48 of members, not less than five, but which may exceed
49 the number of members specified in sections 331.201,
50 331.203, and 331.204. The titles of the members of

Page 8

1 the governing body shall be determined by the charter.
2 h. Provide for a representation plan for the
3 governing body which representation plan may differ
4 from the representation plans provided in section
5 331.206 and in chapter 372. If the plan calls for
6 representation by districts, the plan shall be drawn
7 pursuant to section 331.210A, subsection 2, paragraph
8 "f". The initial representation plan shall be drawn
9 as provided in section 331.210A, subsection 2,
10 paragraph "f", within ninety days after the election
11 at which the charter is approved. For the initial
12 representation plan, the charter commission shall
13 assume the role of the governing body for purposes of
14 this paragraph and section 331.210A, subsection 2,
15 paragraphs "d" through "f".
16 i. Provide for the initial compensation for
17 members of the governing body and for a method of
18 changing the compensation.
19 j. Provide for the partisan election of its
20 officers.
21 Sec. 13. Section 331.248, Code 2003, is amended by
22 adding the following new subsection:
23 NEW SUBSECTION. 4. The consolidation charter may
24 include other provisions which the commission elects
25 to include and which are not irreconcilable with state
26 law. These provisions may include but are not limited
27 to the following:
28 a. Provide for a method of selecting officers of
29 the governing body and fixing their terms of office
30 which may differ from the requirements of sections
31 331.208 through 331.211 and the provisions of chapter
32 372.
33 b. Provide for meetings of the governing body and
34 rules of procedure which may differ from the
35 requirements of section 331.213, except that the

36 meetings shall be scheduled and conducted in
37 compliance with chapter 21.
38 c. Provide for combining the duties of elected
39 officials of the county, for eliminating elected
40 offices and the assumption of the duties of those
41 offices by appointed officials, and for adding to,
42 deleting, or otherwise changing the duties of
43 officials, elected or otherwise, of the county and
44 each consolidated city.
45 d. Provide for the organization of city and county
46 departments, agencies, or boards. The organization
47 plan may provide for the abolition or consolidation of
48 a department, agency, board, or commission and the
49 assumption of its powers and duties by the governing
50 body or by another department, agency, board, or

Page 9

1 commission. This paragraph does not apply to the
2 board of trustees of a county hospital.
3 e. Provide for a method for the governing body or
4 another office to exercise the powers and duties of
5 the township trustees, in lieu of their election or
6 appointment.
7 Sec. 14. Section 331.249, Code 2003, is amended to
8 read as follows:
9 331.249 EFFECT OF CONSOLIDATION.
10 1. a. The consolidation of one or more cities and
11 one or more counties shall create a unified government
12 which includes a municipal corporation and a county.
13 A city-county consolidated form of government under
14 which a county and one or more cities within the
15 county unite to form a single unit of local government
16 shall create a unified government which includes a
17 municipal corporation and a county. The consolidated
18 unit shall have the separate status of a county and a
19 city for all purposes and shall constitute two
20 political subdivisions, a consolidated city and a
21 county, under combined governance. The consolidated
22 unit shall retain one separate constitutional debt
23 limitation with respect to its status as a city and a
24 separate constitutional debt limitation with respect
25 to its status as a county.
26 b. The governing body of a city-county
27 consolidated form of government under which a county
28 and one or more cities within the county form a
29 combined governance structure shall have, with respect
30 to the county, the power and authority of the board of
31 supervisors of a county, and, with respect to each
32 city, the power and authority of the city council of a
33 city. Each consolidated city and the county
34 constitute separate political subdivisions. Each

35 consolidated city and the county shall retain a
36 separate constitutional debt limitation and shall each
37 have the authority to issue bonds and incur financial
38 obligations in accordance with the provisions of state
39 law applicable to a city or a county, respectively.
40 2. A The city-county consolidated unit of local
41 government form of government may include an area
42 which is located in another county, but which is
43 within the corporate boundaries of one of the
44 consolidated cities. County services shall may be
45 provided in the extra-county area and taxes to fund
46 those services shall may be collected in the extra-
47 county area by the consolidated government, to the
48 extent permitted by the Constitution of the State of
49 Iowa. In addition to the right to vote in the county
50 of residence, electors residing in the extra-county

Page 10

1 area shall have the right to vote on any matter
2 related to the city-county consolidated unit of local
3 form of government, including election of its
4 officials governing body.
5 If a city-county consolidation charter is proposed,
6 within ninety days following the final report of the
7 commission, a resident or property owner of the
8 commission area proposed to be consolidated may bring
9 an action in district court for declaratory judgment
10 to determine the legality of the proposed charter and
11 to otherwise declare the effect of the charter. The
12 court shall expedite its review and determination in
13 this matter. The referendum on the proposed charter
14 shall be stayed during pendency of the action and for
15 such additional time during which the proposed charter
16 or its enabling legislation does not conform to the
17 Constitution or laws of the State of Iowa. If in its
18 final judgment the court determines that the proposed
19 charter fails to conform to the Constitution or laws
20 of this state, the commission shall have a period of
21 six months in which to revise and resubmit the
22 proposed charter.
23 3. All provisions of law authorizing contributions
24 of any kind, in money or otherwise, from the state or
25 federal government to counties and cities shall remain
26 in full force with respect to each city and the county
27 comprising a city-county consolidated local form of
28 government.
29 4. The adoption of the city-county consolidated
30 form of government does not alter any right or
31 liability of the county or consolidated city in effect
32 at the time of the election at which the charter was
33 adopted.

34 5. All departments and agencies of the county and
35 of each consolidated city shall continue to operate
36 until their authority to operate is superseded by
37 action of the governing body.
38 6. Upon the effective date of the adopted charter,
39 the county shall adopt the city-county consolidated
40 form of government by ordinance, and shall file a copy
41 with the secretary of state and maintain available
42 copies for public inspection.
43 7. Members of the governing body of the county and
44 of each consolidated city shall continue in office
45 until the members of the governing body of the city-
46 county consolidated form of government have been
47 elected and sworn into office, at which time the
48 offices of the former governing bodies shall be
49 abolished, and the terms of the members of the former
50 governing bodies shall be terminated. During the

Page 11

1 period between the effective date of the charter and
2 the election and qualification of the elected members
3 of the new governing body, the former governing bodies
4 of each consolidated city and of the county shall
5 continue to perform their duties and shall assist in
6 planning the transition to the city-county
7 consolidated form of government.
8 8. If a city-county consolidation charter is
9 submitted to the electorate but is not adopted,
10 another charter shall not be submitted to the
11 electorate for at least six years from the date of the
12 election at which the charter was rejected. If a
13 city-county consolidation charter is adopted, a
14 proposed charter for another alternative form of
15 county government shall not be submitted to the
16 electorate for at least six years from the date of the
17 election at which the charter was adopted.
18 Sec. 15. Section 331.250, Code 2003, is amended to
19 read as follows:
20 331.250 GENERAL POWERS OF CONSOLIDATED LOCAL
21 GOVERNMENTS.
22 The consolidation charter shall provide for the
23 delivery of services to specified areas of the
24 consolidated local government county and of each
25 consolidated city. The governing body of the
26 consolidated government shall administer supervise the
27 administration of the provision of services in each of
28 the designated service areas and shall have the
29 authority to determine the boundaries of the service
30 areas. For each service provided by the consolidated
31 government, the consolidated government shall assume
32 the same statutory rights, powers, and duties relating

33 to the provision of the service as if the county or
34 the member city were itself providing the service to
35 its citizens.
36 Sec. 16. Section 331.251, Code 2003, is amended to
37 read as follows:
38 331.251 RULES, ORDINANCES, AND RESOLUTIONS OF
39 CONSOLIDATED UNIT GOVERNMENT.
40 Within two years after ratification of the
41 consolidation, the governing body of the consolidated
42 unit of local government shall revise, repeal, or
43 reaffirm all rules, ordinances, and resolutions in
44 force within the participating county and cities at
45 the time of consolidation. Each rule, ordinance, or
46 resolution in force within a county or within a city
47 at the time of consolidation shall remain in force
48 within the former geographic jurisdiction that county
49 or within that city until superseded by action of the
50 new governing body, unless the rule, ordinance, or

Page 12

1 resolution is in conflict with a provision of the
2 charter, in which case, the charter provision shall
3 supersede the conflicting rule, ordinance, or
4 resolution. Ordinances and resolutions relating to
5 public improvements to be paid for in whole or in part
6 by special assessments shall remain in effect until
7 paid in full.
8 Sec. 17. Section 331.252, Code 2003, is amended to
9 read as follows:
10 331.252 FORM OF BALLOT - CITY-COUNTY
11 CONSOLIDATION.
12 The question of city-county consolidation shall be
13 submitted to the electors in substantially the
14 following form:
15 Should the corporate existence and governments of
16 the county of ...... and the cities of ...... and
17 ...... be consolidated into one joint city-county
18 corporation government charter described below be
19 adopted for (insert name of county and each city
20 proposing to consolidate)?
21 If section 331.247, subsection 4, applies, the
22 following question shall be placed on the ballot of
23 each participating city:
24 Should the (name of city or second county)
25 participate in the consolidation charter?
26 The ballot must contain a brief description and
27 summary of the proposed charter or amendment.
28 Sec. 18. Section 331.254, subsection 7, Code 2003,
29 is amended to read as follows:
30 7. The merger of the elective offices of each
31 consolidating county with the election of new officers

32 within sixty days after the effective date of the
33 charter which shall specifically provide that the
34 election of new officers shall be on a partisan basis.
35 The elections shall be conducted by the county
36 commissioner of elections of each county. No primary
37 election shall be held. Nominations shall be made
38 pursuant to section 43.78 and chapters 44 and 45, as
39 applicable, except that the filing deadline shall be
40 forty days before the election.
41 Sec. 19. Section 331.260, subsection 2, Code 2003,
42 is amended to read as follows:
43 2. A charter proposing a community commonwealth as
44 an alternative form of government may be submitted to
45 the voters only by a commission established under
46 section 331.232. A majority vote by the commission is
47 required for the submission of a charter proposing a
48 community commonwealth as an alternative form of local
49 government. The commission submitting a community
50 commonwealth form of government shall issue a final

Page 13

1 report and proposal. If an alternative form of
2 government for a community commonwealth form of local
3 government is proposed, approval of the commonwealth
4 charter shall be a separate ballot issue from approval
5 of the alternative form of government in those cities
6 proposed to be included in the commonwealth. The
7 commonwealth charter shall be effective in regard to a
8 city government only if a majority of the voters of
9 the city voting on the question voted for
10 participation in the commonwealth charter. A city
11 named on the ballot shall be united with the county in
12 a community commonwealth if a majority of the votes
13 cast in the city on the proposal approves the
14 proposal. If one or more cities named on the ballot
15 approves the proposal, the charter is adopted if both
16 a majority of the votes cast in the unincorporated
17 area of the county approves the proposal and a
18 majority of the votes cast in the entire county
19 approves the proposal.
20 The question of forming a community commonwealth
21 shall be submitted to the electorate in substantially
22 the same form manner as provided in section 331.247,
23 subsection 4, and section 331.252.
24 Sec. 20. Section 331.261, subsection 2, Code 2003,
25 is amended to read as follows:
26 2. An elective legislative body established in the
27 manner provided for county boards of supervisors under
28 sections 331.201 through 331.216 and section 331.238
29 331.248, subsection 2.
30 Sec. 21. Section 331.261, unnumbered paragraph 2,

31 Code 2003, is amended to read as follows:
32 The community commonwealth charter may include
33 other provisions which the commission elects to
34 include and which are not inconsistent irreconcilable
35 with state law, including, but not limited to, those
36 provisions in section 331.248, subsection 4.
37 Sec. 22. Section 331.262, Code 2003, is amended by
38 adding the following new subsections:
39 NEW SUBSECTION. 1A. The adoption of the community
40 commonwealth form of government does not alter any
41 right or liability of the county or member city in
42 effect at the time of the election at which the
43 charter was adopted.
44 NEW SUBSECTION. 1B. All departments and agencies
45 of the county and of each member city shall continue
46 to operate until their authority to operate is
47 superseded by action of the governing body.
48 NEW SUBSECTION. 1C. All ordinances or resolutions
49 in effect remain effective until amended or repealed,
50 unless they are irreconcilable with the adopted

Page 14

1 charter.
2 NEW SUBSECTION. 1D. Upon the effective date of
3 the adopted charter, the county shall adopt the
4 community commonwealth form of government by
5 ordinance, and shall file a copy with the secretary of
6 state and maintain available copies for public
7 inspection.
8 NEW SUBSECTION. 1E. Members of the governing body
9 of the county and of each member city shall continue
10 in office until the members of the governing body of
11 the community commonwealth form of government have
12 been elected and sworn into office, at which time the
13 offices of the former governing bodies shall be
14 abolished, and the terms of the members of the former
15 governing bodies shall be terminated. During the
16 period between the effective date of the charter and
17 the election and qualification of the elected members
18 of the new governing body, the former governing bodies
19 of each member city and of the county shall continue
20 to perform their duties and shall assist in planning
21 the transition to the community commonwealth form of
22 government.
23 NEW SUBSECTION. 1F. If a community commonwealth
24 charter is submitted to the electorate but is not
25 adopted, another charter shall not be submitted to the
26 electorate for at least six years from the date of the
27 election at which the charter was rejected. If a
28 community commonwealth charter is adopted, a proposed
29 charter for another alternative form of county

30 government shall not be submitted to the electorate
31 for at least six years from the date of the election
32 at which the charter was adopted.
33 Sec. 23. NEW SECTION. 331.264 LOCAL GOVERNMENT
34 ORGANIZATION REVIEW COMMITTEE.
35 1. A local government organization review
36 committee may be created in a county. The committee
37 shall be composed of the following members:
38 a. Three city council members appointed by the
39 city council of each participating city with a
40 population of twenty-five thousand or more.
41 b. Three county supervisors appointed by the
42 county board of supervisors.
43 c. One city council member appointed by each
44 participating city with a population of less than
45 twenty-five thousand.
46 d. One member shall be appointed by each state
47 legislator whose legislative district is located in
48 the county if a majority of the constituents of that
49 legislative district reside in the county. However,
50 if a county does not have a state representative's

Page 15

1 legislative district which has a majority of a state
2 representative's constituency residing in the county,
3 the state representative having the largest plurality
4 of constituents residing in the county shall appoint a
5 member. The member appointed by each state legislator
6 shall be a person who is not holding elected office
7 and who is a resident of the legislative district of
8 the state legislator.
9 e. Three members appointed by the township
10 trustees of all the townships in the county and an
11 additional member appointed by the township trustees
12 for each five percent of the total population of the
13 county residing in the unincorporated area of the
14 county. The members shall be residents of the
15 unincorporated area of the county and shall be persons
16 who are not holding elected office other than that of
17 township trustee. The county auditor shall determine
18 the date and location for a meeting of the township
19 trustees of all the townships in the county at which
20 meeting the appointments shall be made and shall
21 provide written notice of the meeting to the trustees.
22 The meeting shall be held in accordance with chapter
23 21.
24 Organization and expenses of the committee are
25 subject to section 331.234 as if the committee were a
26 city-county consolidation or community commonwealth
27 commission. Sections 69.16 and 69.16A shall not apply
28 to the committee. However, a city allowed more than

29 one appointment shall balance its appointments in
30 accordance with sections 69.16 and 69.16A, when
31 possible.
32 2. Members shall be appointed to the organization
33 review committee within thirty days after any of the
34 following occurs:
35 a. The county board of supervisors and each city
36 council in the county adopt a joint resolution calling
37 for appointment of members to the committee and files
38 the resolution with the county board of supervisors.
39 b. The county board of supervisors in a county
40 adopts a resolution calling for appointment of members
41 to the committee.
42 c. A petition signed by eligible electors of the
43 county equal in number to at least twenty-five percent
44 of the votes cast in the county for the office of
45 president of the United States or governor at the
46 preceding general election or the signatures of at
47 least ten thousand eligible electors of the county,
48 whichever number is fewer, is filed with the county
49 board of supervisors.
50 3. Within seven months after the organization of

Page 16

1 the organization review committee, the committee shall
2 submit a preliminary report to the county board of
3 supervisors with a recommendation as to what the
4 committee believes to be the best proposal for an
5 alternative form of government for the county. The
6 auditor's office shall make the report available to
7 the public upon request. A summary of the report
8 shall be published in the official newspapers of the
9 county and in a newspaper of general circulation in
10 each participating city.
11 4. If the committee report recommends a city-
12 county consolidation or community commonwealth, the
13 committee shall continue its existence and be
14 designated, and operate with the powers and duties of,
15 a commission created pursuant to section 331.233A. If
16 the committee report recommends a multicounty
17 consolidation, the committee shall continue its
18 existence and be designated, and operate with the
19 powers and duties of, a commission created pursuant to
20 section 331.233.
21 5. This section does not apply to a county in
22 which a charter commission has been established and is
23 operating as of July 1, 2003.
24 Sec. 24. Section 372.1, Code 2003, is amended by
25 adding the following new subsections:
26 NEW SUBSECTION. 7. City-county consolidated form
27 as provided in sections 331.247 through 331.252.

28 NEW SUBSECTION. 8. Community commonwealth as
29 provided in sections 331.260 through 331.263.
30 Sec. 25. Section 372.2, unnumbered paragraph 1,
31 Code 2003, is amended to read as follows:
32 A Unless otherwise provided by law, a city may
33 adopt a different form of government not more often
34 than once in a six-year period. A different form,
35 other than a home rule charter, or special charter,
36 city-county consolidated form of government, or
37 community commonwealth must be adopted as follows:
38 Sec. 26. IMPLEMENTATION OF ACT. Section 25B.2,
39 subsection 3, shall not apply to this Act.
40 Sec. 27. EFFECTIVE AND APPLICABILITY DATES. This
41 Act, being deemed of immediate importance, takes
42 effect upon enactment and applies to charter
43 commissions in existence on the effective date of this
44 Act."

Roll call was requested by Mascher of Johnson and Raecker of
Polk.

On the question "Shall amendment H-1193 be adopted?" (S.F. 390)

The ayes were, 45:
Bell Berry Cohoon Connors
Dandekar Davitt Fallon Foege
Ford Frevert Gaskill Greimann
Heddens Hogg Hunter Huser
Jochum Kuhn Lensing Lykam
Mascher McCarthy Mertz Miller
Murphy Myers Oldson Olson, D.
Osterhaus Petersen Quirk Reasoner
Shoultz Smith Stevens Struyk
Swaim Taylor, D. Taylor, T. Thomas
Wendt Whitaker Whitead Winckler
Wise

 


The nays were, 54:
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
Rants, Spkr. Rasmussen Rayhons Sands
Schickel Tjepkes Tymeson Upmeyer
Van Engelenhoven Van Fossen, J.K. Van Fossen, J.R. Watts
Wilderdyke Roberts,
Presiding

 


Absent or not voting, 1:
Bukta

 


Amendment H-1193 lost.

Hogg of Linn offered the following amendment H-1165, previously
deferred, filed by him and moved its adoption:

H-1165

1 Amend Senate File 390, as amended, passed, and
2 reprinted by the Senate, as follows:
3 1. Page 4, line 8, by inserting after the word
4 "charter," the following: "a statement of
5 alternatives considered including but not limited to
6 the potential for agreements under chapter 28E,".

Amendment H-1165 lost.

Hogg of Linn asked and received unanimous consent to withdraw
amendment H-1169, previously deferred, filed by him on March 26,
2003.

Hogg of Linn asked and received unanimous consent to withdraw
amendments H-1166 and H-1167, previously deferred, filed by him on
March 25, 2003.

Hogg of Linn asked and received unanimous consent to withdraw
amendment H-1168, previously deferred and filed by him on March
26, 2003.

Speaker Rants in the chair at 9:11 p.m.

Elgin of Linn 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. 390)

The ayes were, 52:
Alons Baudler Boal Boddicker
Boggess Carroll Chambers De Boef
Dennis Dix Dolecheck Drake
Eichhorn Elgin Foege Freeman
Gipp Greiner Hahn Hansen
Hanson Heaton Hoffman Horbach
Huseman Hutter Jacobs Jenkins
Jones Klemme Kramer Kurtenbach
Lalk Lukan Maddox Manternach
Olson, S. Raecker Rasmussen Rayhons
Roberts Sands Schickel Tjepkes
Tymeson Upmeyer Van Engelenhoven Van Fossen, J.K.
Van Fossen, J.R. Watts Wilderdyke Mr. Speaker
Rants

 


The nays were, 47:
Arnold Bell Berry Cohoon
Connors Dandekar Davitt Fallon
Ford Frevert Gaskill Granzow
Greimann Heddens Hogg Hunter
Huser Jochum Kuhn Lensing
Lykam Mascher McCarthy Mertz
Miller Murphy Myers Oldson
Olson, D. Osterhaus Paulsen Petersen
Quirk Reasoner Shoultz Smith
Stevens Struyk Swaim Taylor, D.
Taylor, T. Thomas Wendt Whitaker
Whitead Winckler Wise

 


Absent or not voting, 1:
Bukta

 


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

HOUSE FILE 646 WITHDRAWN

Elgin of Linn asked and received unanimous consent to withdraw
House File 646 from further consideration by the House.

HOUSE FILE 700 WITHDRAWN

Dix of Butler asked and received unanimous consent to withdraw
House File 700 from further consideration by the House.

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
Senate File 390 be immediately messaged to the Senate.

House File 517, a bill for an act relating to fishing by establishing
fees, allocating fishing license revenue to fish habitat development,
modifying trout fishing requirements, and providing effective and
applicability dates, was taken up for consideration.

Freeman of Buena Vista offered the following amendment H-1350
filed by her and moved its adoption:

H-1350

1 Amend House File 517 as follows:
2 1. Page 1, line 4, by striking the figure "15.50"
3 and inserting the following: "17.00".
4 2. Page 1, line 8, by striking the figure "5.00"
5 and inserting the following: "7.50".
6 3. Page 1, line 16, by striking the figure
7 "14.00" and inserting the following: "15.50".
8 4. Page 2, by striking lines 2 through 6, and
9 inserting the following: "commission. The commission
10 may grant a permit to a community event in which trout
11 will be stocked in water which is not designated trout
12 water and a person may catch and possess trout during
13 the period and from the water covered by the permit
14 without having paid the trout fishing fee."

Amendment H-1350 was adopted.

SENATE FILE 348 SUBSTITUTED FOR HOUSE FILE 517

Freeman of Buena Vista asked and received unanimous consent to
substitute Senate File 348 for House File 517.

Senate File 348, a bill for an act relating to fishing by
establishing fees, allocating fishing license revenue to fish habitat
development, modifying trout fishing fee requirements, and providing
effective and applicability dates, was taken up for consideration.

Freeman of Buena Vista 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. 348)

The ayes were, 62:
Alons Baudler Bell Berry
Boal Boggess Chambers Connors
Davitt De Boef Dennis Dolecheck
Drake Elgin Fallon Foege
Freeman Frevert Gaskill Gipp
Granzow Greimann Hansen Hanson
Heddens Hoffman Hogg Horbach
Hunter Huseman Jacobs Jenkins
Jochum Jones Kuhn Lensing
Lykam Maddox Mascher Mertz
Miller Myers Olson, D. Olson, S.
Osterhaus Roberts Shoultz Smith
Stevens Taylor, D. Taylor, T. Tjepkes
Tymeson Upmeyer Van Fossen, J.R. Watts
Wendt Whitaker Whitead Wilderdyke
Winckler Mr. Speaker
Rants

 


The nays were, 37:
Arnold Boddicker Carroll Cohoon
Dandekar Dix Eichhorn Ford
Greiner Hahn Heaton Huser
Hutter Klemme Kramer Kurtenbach
Lalk Lukan Manternach McCarthy
Murphy Oldson Paulsen Petersen
Quirk Raecker Rasmussen Rayhons
Reasoner Sands Schickel Struyk
Swaim Thomas Van Engelenhoven Van Fossen, J.K.
Wise

 


Absent or not voting, 1:
Bukta

 


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 348 be immediately messaged to the Senate.


ADOPTION OF SENATE CONCURRENT RESOLUTION 20

Manternach of Jones asked and received unanimous consent for
the immediate consideration of Senate Concurrent Resolution 20,
a concurrent resolution recognizing Richard and Joyce Lynch, the
first recipients of the Good Neighbor Award presented by the
Department of Agriculture and Land Stewardship, and moved its
adoption.

The motion prevailed and the resolution was adopted.

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
Senate Concurrent Resolution 20 be immediately messaged to the
Senate.

REMARKS BY THE MAJORITY LEADER

Majority Leader Chuck Gipp offered the following remarks:

Gayle Goble came to me this week asking if I had my speech written. Normally this
is written and inserted by the people in the journal room who record this and it is
published in the House Journal. My promise to Gayle at that time was simply this,
"Gayle I haven't written a speech yet because I don't know how this session is going to
end." How can I write speech on Monday when we have four major issues still hanging
out there for the House to accomplish? The four major issues that we started with in
this session.

I have talked to a number of people outside this lobby, former majority leaders and
speakers and people that have been here in the past. And all of them said, "I've never
been associated or seen a legislative session that was so difficult, with so many big
issues to accomplish, and with all the right people here to do them." It is an amazing
thing that we see in this House chamber year after year and this is my thirteenth year
here. But you know what was unique about this session? The people of Iowa elected a
governor, they elected a Democrat. The same people in Iowa elected the Republicans to
control both the House and the Senate. But the common denominator about that
election is the people that were elected were determined that what we needed to do was
to work together to get something done, and something different done because Iowa is
stagnant and Iowa wasn't growing. With a slow growth state we needed to do
something different. So it was called bold or it was called good a few times this session
and even last night, bold, good. We needed to do something different. We needed
something different so that Iowa wouldn't continue to be an older and older state with
kids like Allison and Barret Gipp, now living in Minnesota, continuing to leave this
state, leaving Iowa with an older and older population. With a population base that
was going to have to be asked to pay more taxes rather than increasing the tax base
that just pays taxes to provide for the services.

This legislative session we addressed those issues which we hope, and I know, if
adopted later on, will help turn this state around. There is a lot of people to thank
about the accomplishments this session. About the property tax, about the income tax,
about the values fund and about regulatory reform, which I know, and many of you do
as well, is going to be the difference in changing this state to make sure that we are a
growth friendly state so our young people can be citizens of Iowa the remainder of their
lives. I think we have accomplished that. Unfortunately, tonight's sine die, tonight's
going away isn't going to be that long, and we don't know how the rest of this story is
going to end. But what I do know, is that I have a deep appreciation for everybody here
and the part that you played in doing what I know needed to be done. The House did
its work. At 109 days, we didn't leave early, we finished our work and I am proud of
everybody here for that.

There are a number of people to thank, and it is everybody in this room, from the
Pages to the staff, to the people in the well. Especially to my caucus staff, who does an
excellent job and to the Democratic caucus staff who do such a great job serving your
staff and your members of the House. I truly appreciate the cooperation that you give
us and that our staff gives you. Jeff does a great job of selecting our caucus staff
members and having them work in a coordinated effort to help make us look good. In
my own office, I'm the luckiest guy that there is, because I had the wisdom to keep
somebody in my office that has been in this place for a long, long time and that is
Susan Severino. If I was able to accomplish anything this year it was because of the
cordiality of my secretary, Sarah and the knowledge and the know-all of Susan
Severino, who really runs this place. This is the last time that we are going to see the
name of Susan Severino mentioned in the House Journal because Susan Severino is
going to be back, but it won't be Susan Severino, because later on she is going to get
married, and she is going to be Susan Fenton. I am looking forward to that day and I
know Susan is as well. Susan I wish you and Scott well on your new marriage.

Minority Leader Myers, you do a great job. You do a great, great job and I think
that my job was made so much easier by how you made it easier. You could have been
tough on me. I have been here thirteen years, but at the same time, I didn't know all
the rules and the ropes. It's one thing being a legislator, it's quite another being the
majority leader, but you have made my job a lot easier and I thank you for that, I
appreciate it and I wish you well.

To my leadership team, Libby, Danny, Gene, Rod, Carmen and Ralph, it's the best
group that I have ever been associated with in my thirteen years here and I have
served in leadership for eleven of those years. Your a great group and your a great
part of the success of our caucus, the direction that we took and the accomplishments
we have made. Our caucus has been great. And all the new members, all you guys….
(Libby, you've got to do a better job of keeping these guys in line), they bring energy to
this place. And the House Democrat and Republican new members, you are great
people. You are great people and you do a great job and I appreciate all of your efforts.
And the veteran members, I look over there at Jim Hahn. Jim Hahn and I came to this
place together in 1990 in a group of eighteen, and we are the last one's remaining. I
appreciate Jim Hahn for sticking with me all these years in this place.

Now, I'm not leaving, I'm coming back, and a number of you probably wish I
wouldn't, but I'm coming back. I appreciate the help from my leadership team. That
leaves one other person left to thank. That is the Speaker of the House, Speaker
Christopher Rants. Mr. Speaker, you've grown comfortable with your position. You

and I have roomed together for ten years and we have commiserated over bowls of chili
and all the other things that nobody needs to know about, but Mr. Speaker, you truly
deserve the honor of being Mr. Speaker. There are a lot of famous guys in that back
hallway there with their pictures up on the wall and it is a privilege to know that you
will someday join that group back there as well. You do an excellent job. We all should
be grateful for your participation. Thank you Mr. Speaker.

And now it is time to go home and unfortunately, we are going to be back in a short
time, but the House is going to complete its work. We've done a great job, I appreciate
the efforts of all of you. Go back and meet your families and get reacquainted with
your kids and your wives and your husbands and your friends and enjoy yourself for a
few days knowing full well that there is a lot more work to be done. We have a good
start with the things that we have done this year, but there is more work to be done. I
will be glad to be here to help you do that. Thank you Mr. Speaker.

REMARKS BY THE MINORITY LEADER

Minority Leader Dick Myers offered the following remarks:

Mr. Speaker, ladies and gentlemen of the House. You know the end of these
sessions are always remarkable, regardless of how you fight and sometimes don't get
along as best you should, but we really feel good about coming to the end of it. Not
because it is just the end, but because we really think we have a sense of
accomplishment about things. I think this session is remarkable because of the degree
of that accomplishment. We came in here after a pretty tough campaign and maybe
even some tough sessions before that, with a lot of new folks. My good friend
Representative Gipp said it is time to govern the campaign is over. Boy, I like that.
That set the tone for me. And I think the tone that was set by the leadership on the
Republican side coming into this place, helped me as the Minority Leader to work with
them to try to find some solutions for our state. I can sometimes hardly believe that I
am here and I am not quite sure what I'm going to say tonight, but I am going to try to
get through this.

First of all I want start out by thanking the people who allowed me to be their
leader, the members of the Democratic caucus. It truly was humbling for me to be the
leader of this caucus for this last session. As you know, I am going to be leaving and
the irony is that I have spent two years learning the job and now I am going to leave. I
kind of wondered about that. I used to get teased a lot when I first came in here. Some
of you new members don't know, but the first day that I was in the legislature the
Minority Leader at that time, Robert Arnold, handed me a piece of paper, told me that
my reputation had preceded me. On that piece of paper was a list of seven words that I
couldn't say. And I will tell you that the majority leader and the Speaker of the House
have spent the last ten sessions trying to get me to say one of those words. They aren't
going to make it. They also gave me a list of words I could say, like golly, and gee whiz
and shucks. I learned a lot up here. I really want to thank my Democratic caucus. I
want to, also, make special remarks about the newer people that came in here on my
side of the aisle and the Republican side of the aisle. I have never seen such a talented
group of people that came in here willing to work together and didn't have any of the
old, you know, sort of crosses to bear. They came in here, they wanted to listen to one
another. They didn't care who was a Republican or a Democrat necessarily, they cared
about representing their communities.

When the freshmen came in here I told them they had two things to do. One, you
had to represent your district and the second is that you had to think. Boy we need
people to think in this place and not just act like a bunch of robots. That is really
important.

I also want to thank my staff; Mark Bransgaard and Carolyn. I can't tell you how
much they helped me by trying to get me through the day and believe me, if I sound
like I know what I am talking about once in a while, it is because they wrote the stuff.

And I appreciate the work of the Republican staff. You have always been very kind
and courteous to me and the members of my caucus. I can't say enough about that, but
I have to say folks, I believe I have the best Democratic caucus staff in the building and
I am biased about that. I really appreciated working with Polly Lipsman and Tom and
Ed and Joe, Mary and Jennifer and Anna, Dean and Dave and my Page, Claire, who
was a great help to us. They helped all the members. And I think that they also
helped a lot of the people on the other side of the aisle too. I hope they were always
receptive to helping folks in the republican caucus, because I know that the Republican
staff members helped us.

There is a new intelligence here now. There is a new life and a new energy here in
the House of Representatives. We came in here with huge tasks. And you know what?
It's easy to take on some of these subjects when times are kind of easy, you know, we
got a lot of money. It is easy to be in politics when you got a lot of money. Especially if
your a Democrat, I can tell you that. Of course I have seen the Republicans spend
money lately in ways I can't believe, but nevertheless, I've always wondered about that
a little bit, but, regardless.

The other thing that I talked about on opening day was I asked the new people to
get to know their neighbors not just as people, not just as legislators. To get to know
them and their needs and their districts and what they came down here to serve. And
I think that has happened. I see Republicans and Democrats talking together time and
time again on all kinds of things here and I think, well, you know, we had some fights.
There will always be differences. I hope there are always differences. There should be
differences. We should be proud of those differences. But, we have accomplished some
good sized things. I kind of wish the folks across the ropes would have worked a little
better with us. Maybe when you go to the Senate, and I don't want to be nasty here,
about the Senate because when I was over there, my goodness, they gave me a
standing ovation and I've made more fun of those guys than anybody else since I've
been here. But I did appreciate it. It was an honor. I think that maybe the Senate
will work with us here on some of the things that we have done. But when the
governor announced that there should be an Iowa values fund in this state, that we
had to change, that we had to risks, I know what that is about. As a person who has
operated his own business and started a couple of others over the last forty years, I
know what risks are all about. And I know they are important. But to really do this
right for the people of the state of Iowa, there could not be just a House Republican
plan, or a House Democratic plan. There had to be a House plan and then we could
turn that into a General Assembly plan, a Iowa plan for the people of the state. And I
think we have accomplished that in the House. I don't think it would have been done
without the help of the people in the majority party to work with us in the minority
party. The two of us getting together, those eight people, by the way, and I want to pay
a special tribute to the eight people, I don't care whether you voted for that thing or
not. There was a tremendous amount of hard work and I respect the people that voted

no as well as those that voted yes, because I know darn well you were thinking about
it. I do believe that was a very defining moment in this state. Is it risk? Oh, you bet.
In fact, I will tell you something, with that vote we cast the other night on the Iowa
Values, that was the easy part. The hard work is coming to make that thing work.
And it is not going to be easy. It will take an awful lot of work. It will take more than
just Iowa, but that was a very important thing to do. Frankly, even though I didn't
really care much for the bill I did respect the work that was done in rethinking the tax
structures and trying to move us down a road on doing something different.

We passed a bill that didn't get much notice. Frankly, it was introduced by a
Democrat and supported by Republicans on character education. We talked about it a
lot over the years. I am a person that's always believed very strongly that kids ought
to have a connection to their community. They ought to understand what their town is
all about. They ought to understand what their country is about. They ought to
understand what our economic system and our political system is about, and they need
to start that early. Our education system should support that, encourage that, make it
grow so that our children grow up really understanding just what a great place they
live in here in the great state of Iowa.

I regret that we didn't do a couple of things that I really wish you would think
about in the next term. We need to do a better job with prescription drugs. We need to
pass a mental health parody bill. We need to do something about people who are
mentally ill. We have the capacity to do that. We have the greatest expertise for
solving problems like this of any state in the country. Folks, the people at the bottom
of the wage scale need a raise. Those people take care of our children and they take
care of older people. And yes, the government can be a force to raise their economic
strata and it should be. It's time people at the bottom of the ladder got a raise. We
didn't get that done this time, but I think there is the heart in this place, the wish in
this place, the soul in this place to say that people at the bottom of the ladder need a
raise. I hope we get that done. Those are things that I wish we could have had a
chance to, but maybe next year.

You know the funny thing, I announced this morning that I, as you know, that I
wasn't going to run again. I noticed a couple things right off the bat. When you
announce that your going to retire from politics people start talking about you like your
dead. They talk about you in the past tense, he was, he left, he's gone. Well, I'm not
gone. I haven't died. Also, I noticed that the lobby treats you differently. They no
longer say 'sir' when they talk to you. I don't know for sure what the future brings for
me. I don't want to get any Republicans nervous here, I always like to look at
Representative Carroll when I say something like this, but maybe one of these days I'll
be riding around Poweshiek County with a real estate agent…. No, I doubt if I will do
that again.

I think most of you know that I've spent, spread over five decades, about thirty-four
years in public office since 1969. I have been very lucky, very fortunate. I seemed to
do that for a number of reasons, not the least of which is an awful lot of luck, but I can't
say enough about the people who sent me here. It is indeed humbling to think that
someone trusts you enough to do the things that we do here on their behalf. Even
when I was in county government or city government, you know that has always
amazed me. And, there was a time in my life when I didn't think that generated much
respect and yet that has happened to me. For that, I am enormously grateful.


And finally, one of the reason why I am leaving is I want to spend more time with
my family, with my wife. The first day that I was here, my wife has always given me
very sound instructions, I didn't always pay attention to them but, she said, "Richard",
I was sitting right over there where Representative Reasoner sits, "Richard, now your
starting here today and I know you, keep your mouth shut for five days." I'm sorry, I
didn't last five minutes. And some of you remember that. It's very difficult to talk
about the things that you really thought were important. People always ask me what
is the most important thing you have done in politics? I never can answer that.
Because I didn't do it, we did it. It takes 51 people to adjourn this place, no one does it
by themselves. And I hope they will always remember that. That is the real key to
working together. But I am a very humbled, grateful person. I can't think of how
lucky I am. I served in the military for eight years of active duty and I was always
grateful to come back to Iowa. What a great place to be from. Proud to say that I am
from Iowa. From Iowa City, Iowa, great place, a place to raise our kids. And we have
the capacity here to make it better. I think we did it this time, but I think we have
work to do. Maybe I'll go home and write a book. I won't publish it for about twenty-
five years, but I might write a book.

Mr. Speaker, I really appreciate working with you. You know we didn't come in
here dancing goody two shoes around the floor. I think we came in here at swords
point on many things. You got here about a year ahead of me and I think that we work
together pretty well, I like that. Both as Majority Leader and when you assumed the
Speakers chair. I want you to know I appreciate your work. Mr. Gipp, we have been
friends for a long time and we will remain so. I have enjoyed coming to work every
morning to find out what we were going to do that day and how we were going to get it
done. I don't want to start mentioning a lot of names, but I want you to remember the
first day that I walked in this door, a man by the name of Hubert Houser was the
former county supervisor, a conservative cattle farmer from western Iowa, walked up
to me and he said I hear that your interested in working on mental health. He said I'm
going to have a little informal meeting, you want to work with it? So, we did. We
started working on that and out of that came something called Senate File 69 and a
way to fund mental health bill that maybe will be done yet, we need to finish that. But
the guy that took his place is Danny Carroll. I think that Mr. Carroll and I have some
opinions about things that are different from one another's once in a while. We got
some things done here, I think. You know why? I trust Mr. Carroll. That's important
in this place, we need to trust one another. We need to earn that trust, and we need to
continue it.

So, thanks a lot. I'm going to go, goodbye, thank you.

REMARKS BY SPEAKER RANTS

Speaker Rants offered the following remarks:

For the last three years, Representative Myers and I have had a lot of opportunities
to go to a lot of functions and speak together. I always hate going after Dick Myers.
No more true than tonight. You will be missed Dick, and missed a lot.

I want to start tonight by saying that I am working on three and a half hours of
sleep and we will see if I can make it through this.

I want to start tonight by saying how proud I am of this Iowa House. In my eleven
years, I've never seen a more congenial, bi-partisan or non-partisan, more orderly
session and all of us should be proud of the way we did our job this year.

When we started this session, many said that with forty new members, that was
going to be our greatest weakness. It was our greatest strength this year. You know,
the last four months we have focused on four items; property and income tax reform,
regulatory reform and an economic stimulus package. In any other year the
accomplishment of one of those items would have been heralded as the hallmark of a
legislative session. We did all four. This House had a monumental year.

We resolved a lot of old carry-over issues -.08 alcohol limit, gambling and taxes, (at
least we got the gambling taxes part done). When we started the session we, we
Republican's at least, held ourselves to three basic tests for the year. Does it create
wealth, remember that? Opening day? Well, we have focused on the big four here
recently. We shouldn't forget our efforts to become more energy independent as a
state. I think that's on creating wealth. We did wind energy and a co-generation bill.
We passed a broad band initiative to deliver high speed access to all of Iowa. I think
that's about helping to create a state that fosters the creation of wealth. We did an
NGIP junior program and we worked to focus on commercializing our research and
development efforts at our research universities. And I know that's about creating
wealth.

The second test we challenged ourselves with was, does it improve student
performance? The first thing we had to do was to make sure we did no harm. Coming
in with a tight budget year, I know this is certainly true in our area, the people were
concerned about was the kind of cuts that were going to befall education. We protected
our priorities. We protected allowable growth. We protected our teacher comp
program. We protected our K-3 reading program. We said those were priorities and
we took care of them. Perhaps more importantly we finally ended the dispute between
rural and urban school districts over school infrastructure. Dan Boddickers' worst vote
he ever cast was following me down that path once upon a time. You owe
Representative Tymeson a thank you Representative Boddicker, for getting you out of
that vote.

Our third test was to put Iowa on sound financial footing. We came in, we started
with a four hundred million dollar projected shortfall. This chamber made the tough
decisions on things like Medicaid reform. When we walk out of here tonight, we walk
out with a balanced budget and one that complies with our 99 per cent expenditure
limitation allowed. Our appropriations chair did it with a smile. Congratulations
Representative Dix.

But, none of us did it alone. We are blessed with great people who work with us.
The folks in the well, the folks in all of the back rooms, the Chief Clerks Office, the
people crunching numbers, the people drafting amendments, the people proofing the
journal. They all continue to work when we walk out of here. Whether it's at 5:00 in
the afternoon or 11:00 at night. And we owe all of them a debt of thanks.

I have to say a special thanks to the Republican Caucus staff. In eleven years, I've
never had a better group of people to work with. I want to thank all you guys. To Tim,
Becky, Cynthia and especially Allison, whose job it was to kick me in the shins this
week if I was scowling and not smiling, you are the best team I could ever ask for. Now

we will see if I can keep you here with me for another year. To my fellow Republican
leaders; Gene, Rod, Libby, Carmen, thank you for helping to carry the burden. Danny
and Ralph, thank you for being there when I needed you. To my former roommate of
nine years, and it was nine years Chuck, I know...I always knew it would be like this
by the way. You know, polka dot ties were never really my style, might be yours, got it
if you need it.

You know in every session, there is a turning point for each member. Something
that turns your session around. For all of you it's different. I can imagine what it was
for Representative Kurtenbach, probably when he came in and found Gipp and I and
we told him, he was crazy… to go away, and he didn't anyway. That might have been
his turning point. I want to tell you about mine. My turning point was relatively early
on, I am new in the job and I think I know what I'm doing, not really sure though, with
a lot at stake. Chuck and I are sitting around in my office one night, it was probably
about 7:00, still dark out and everybody is gone. In walks a guy by the name of Jan
Schuiteman. He wanted to talk to us about crazy ideas. Got these genetically altered
cows, growing something called human serum albumen in the cows milk that you can
use for medical purposes. Replacing the cows antibody system with human antibody
system... why is that important? Because you can create vaccines. They are doing that
with a cow. That was a turning point for me in this session. Because that opened my
eyes about the potential that we have in this state. I am not an Ag guy, I'm a city kid.
I actually got to go up and pet those cows. It's like a poem… "I petted a cow." But to
me, that crystallized the possibilities that we have in Iowa. You know we are a state
that's dependent upon low price commodities. We try to add value to them and we are
doing a good job. We are running them through livestock. But here is a whole new
kind of potential, real value added agriculture. Bio-technology, something I read
about. I figured bio-tech was something they could do at UC Berkley or MIT. We can
do that here in Iowa. That should be our future. And that became clear to me that
night in those discussions and in the weeks that followed. Iowa has hope. We have
reason to give our children in this state hope for their future. It is going to take some
risks, and we took some of that risk last night, but we don't have to be satisfied in this
state with having more deaths than births in some of our counties or continuing to
export our best product, which is our children. We can give our young people some
hope. We can change the future of this state. We can chart a better course. We can do
business differently. It's about taking risks and we haven't been afraid to do that. It
took a lot of work Representative Hoffman, thank you for sticking with me all session
long, keeping me from sliding off when I was getting a little concerned. But that was a
turning point for me this session. And I think, I hope, because of the actions we took
last night, and I got dedicated to those actions, because of what I saw occurring at a
place called Trans Ova, in place called Hull, Iowa. I think that can be a turning point
for this state because of the actions that we took, this chamber took. I hope you had an
equally good turning point this session.

You know my favorite Roosevelt once said, "It is through labor and painful effort by
grim energy and resolute courage that we move into better things." Ladies and
gentlemen of the House, with that as our standard we had a "bully" of a year. Thank
you for the opportunity to be your Speaker. God bless and have a good summer.

ADOPTION OF SENATE CONCURRENT RESOLUTION 21

Gipp of Winneshiek asked and received unanimous consent for

the immediate consideration of Senate Concurrent Resolution 21,
a senate concurrent resolution to provide for adjournment sine die,
and moved its adoption.

The motion prevailed and the resolution was adopted.

IMMEDIATE MESSAGE

Gipp of Winneshiek asked and received unanimous consent that
Senate Concurrent Resolution 21 be immediately messaged to the
Senate.

EXPLANATIONS OF VOTE

I was necessarily absent from the House chamber on May 1, 2003.
Had I been present, I would have voted "aye" on House File 543.

ALONS of Sioux

I was necessarily absent from the House chamber on May 1, 2003.
Had I been present, I would have voted "aye" on House Files 543, 549,
595, 685 and Senate File 459.

MANTERNACH of Jones

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 report 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 1st day of May, 2003: House Files 206, 225, 304, 329, 386, 391, 394, 455, 457,
492, 558, 560, 565, 576, 577, 583, 584, 594, 599, 624, 644, 681 and 682.

MARGARET A. THOMSON
Chief Clerk of the House

Report adopted.

BILL SIGNED BY THE GOVERNOR

A communication was received from the Governor announcing that
on April 30, 2003, he approved and transmitted to the Secretary of
State the following bill:

House File 628, an Act relating to physician assistant licensure, and providing an
effective date.

Also: the Governor announced that on May 1, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 319, an Act permitting written demand via regular mail prior to an
action under the Uniform Commercial Code for recovery of civil damages for a
dishonored check, draft, or order, when supported by an affidavit of service.

House File 387, an Act relating to mental health and developmental disabilities by
expanding an exemption to health care licensing requirements for certain residential
programs that receive funding under a medical assistance home and community-based
services waiver and approval from the Department of Human Services, and revising
membership requirements for the Mental Health and Developmental Disabilities
Commission, and providing an effective date.

House File 454, an Act relating to mandatory universal newborn and infant hearing
screening.

House File 541, an Act relating to the fee and use of fee for a certificate of birth.

House File 600, an Act regulating organic agricultural products, providing for fees
and penalties, and providing an effective date.

House File 656, an Act relating to fees charged for special fire fighter motor vehicle
registration plates.

Senate File 102, an Act relating to the Chief Executive Officer of the Iowa Public
Employees' Retirement System and providing an effective and retroactive applicability
date.

Senate File 366, an Act relating to the Iowa Probate Code, including provisions
relating to state inheritance, gift taxes, and trusts and including an applicability date
provision.

Senate File 372, an Act relating to the licensing of persons providing money
transmission and currency exchange services, providing penalties, and providing an
effective date.

Senate File 375, an Act relating to enforcement enhancements relative to certain
tobacco product manufacturers, providing appropriations and penalties, and providing
effective dates.

Senate File 416, an Act relating to dependent adult abuse including elder abuse
emergency shelter and support services projects.

Senate File 438, an Act relating to the establishment of the office of Grants
Enterprise Management in the Department of Management to assist the state in
receiving more nonstate funds and providing a standing limited appropriation.


CERTIFICATES OF RECOGNITION

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

MARGARET A. THOMSON
Chief Clerk of the House

2003\1394 Dale Barber, Bettendorf - For her 25 years of dedicated service as
the Superintendent at Pleasant Valley Community Schools.

2003\1395 Winga's Restaurant, Riverdale - For serving the citizens for
Washington County for 75 years.

2003\1396 Don and Joyce Zubrod, Manning - For celebrating their 50th
wedding anniversary.

2003\1397 Mr. and Mrs. Stewart, Ottumwa - For celebrating their 56th
wedding anniversary.

2003\1398 Mac Thummel, Clarinda - For being selected as a Southwest
Regional Finalist for the Des Moines Register Academic All-State
Team.

2003\1399 Richard and Joyce Lynch, Cascade - For being the first recipients of
the Good Nighbor Award presented by the Department of
Agriculture and Land Stewardship.

2003\1400 Ryan Francis Forret, Calamus - For receiving his Iowa FFA degree.

2003\1401 Clare and Ruth Hodson, DeWitt - For celebrating their 50th wedding
anniversary.

2003\1402 Mauree Gibson, Central Lee High School - For being selected by the
Water Pollution Control Association as the senior division winner of
its Environment Excellence Award.

2003\1403 Ski Schroeder, Mt. Pleasant - For attaining the rank of Eagle Scout,
the highest rank in the Boy Scouts of America.

2003\1404 Christopher Mallams, Mt. Pleasant - For attaining the rank of
Eagle Scout, the highest rank in the Boy Scouts of America.

2003\1405 Nick Creager, Mt. Pleasant - For attaining the rank of Eagle Scout,
the highest rank in the Boy Scouts of America.

2003\1406 Todd A. Cooney, Muscatine - For attaining the rank of Eagle Scout,
the highest rank in the Boy Scouts of America.


RESOLUTIONS FILED

HCR 23, by Rants and Myers, a house concurrent resolution to
provide for adjournment sine die.

Laid over under Rule 25.

HR 62, by Alons, De Boef, Boddicker, Roberts, Chambers, Lalk, Boal,
Lukan, Kramer, Kurtenbach and Mertz, a resolution to recognize that
human life exists at the point of conception.

Laid over under Rule 25.

HR 63, by Gipp, Myers, Hoffman, Alons and Thomas, a resolution
requesting the Department of Economic Development and the
department's director to continue efforts to foster and grow the
animal life science product industry in Iowa.

Laid over under Rule 25.

SCR 17, by Sievers, Behn, Kettering, Putney, Angelo, Hosch, Larson,
Boettger, Seymour, Schuerer, Iverson, McKibben, Stewart, Beall,
Bolkcom, Quirmbach, Seng, Dvorsky, Horn, Warnstadt, Black and
Courtney, a concurrent resolution supporting the widening,
improvement, and enhancement of U.S. Highway 30 across central
Iowa and requesting federal assistance.

Laid over under Rule 25.

SCR 19, by Dotzler, Rehberg, Hosch, Seymour, McKinley, Warnstadt,
Dvorsky, McKibben, Gaskill, Courtney, Stewart and Beall, a
concurrent resolution relating to federal funding for fire and
emergency services and homeland security costs.

Laid over under Rule 25.

AMENDMENT FILED

H-1585 S.F. 448 Horbach of Tama

The House stood at ease at 10:12 p.m., until the fall of the gavel.


The House resumed session at 3:33 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
May 1, 2003, passed the following bill in which the concurrence of the Senate was
asked:

House File 662, a bill for an act relating to the funding of, the operation of, and
appropriation of moneys to the college student aid commission, the department for the
blind, the department of cultural affairs, the department of education, and the state
board of regents and including an effective date and retroactive applicability date
provision.

Also: That the Senate has on May 1, 2003, passed the following bill in which the
concurrence of the Senate was asked:

House File 667, a bill for an act relating to and making appropriations for health
and human services to the department of elder affairs, the Iowa department of public
health, the department of inspections and appeals, the department of human services,
and the commission of veterans affairs, and providing effective dates.

Also: That the Senate has on May 1, 2003, concurred in the House amendment and
passed the following bill in which the concurrence of the Senate was asked:

Senate File 433, a bill for an act relating to and making appropriations to the
department of economic development, certain board of regents institutions, department
of workforce development, and the public employment relations board and related
matters.

Also: That the Senate has on May 1, 2003, concurred in the House amendment and
passed the following bill in which the concurrence of the Senate was asked:

Senate File 439, a bill for an act relating to and making appropriations to the
justice system and providing an effective date.

MICHAEL E. MARCHALL, Secretary

FINAL DISPOSITION OF MOTIONS TO RECONSIDER

Pursuant to House Rule 73.7, the following motions to reconsider
which remained on the House Calendar upon adjournment of 2003
Regular Session of the Eightieth General Assembly will be considered
to have failed:


By Greiner of Washington, Huser of Polk and Arnold of Lucas to
House File 490, a bill for an act relating to the right of
condemnation of owners of certain land and including effective and
applicability date provisions, filed on March 20, 2003. (Bill passed
the House on March 20, 2003)

By Gipp of Winneshiek to Senate File 425, a bill for an act
relating to and making appropriations involving state government,
including provisions affecting agriculture and natural resources, filed
on April 7, 2003. (Bill passed the House on April 7, 2003)

By Gipp of Winneshiek to Senate File 435, a bill for an act
relating to and making appropriations to the judicial branch, filed on
April 22, 2003. (Bill passed the House on April 22, 2003)

HOUSE AND SENATE FILES REREFERRED TO COMMITTEES

Under to provisions of House Rule 45, the following House Files
and Senate Files were rereferred to the committees listed:

House Joint Resolution 12 Ways and Means
House File 96 Ways and Means
House File 169 State Government
House File 211 State Government
House File 572 Environmental Protection
House File 607 Judiciary
House File 660 Government Oversight
House File 666 Ways and Means
House File 690 Ways and Means
Senate File 73 Economic Growth
Senate File 185 Public Safety
Senate File 203 Environmental Protection
Senate File 313 Commerce, Regulation &
Labor
Senate File 384 Ways and Means
Senate File 440 Appropriations
Senate File 448 Public Safety

Senate File 449, previously passed on file was referred to the
committee on commerce, regulation and labor.


REPORT OF CHIEF CLERK OF THE HOUSE

MR. SPEAKER: Pursuant to House Rule 42, I report that in
enrolling bills the following corrections were made:

House File 549

1. Page 26, line 16 - Change spelling of teachers's to teacher's.
2. Page 37, line 4 - Underscore period after the c.
3. Page 42, line 4 - Need a comma after the word importance.

House File 654

1. Page 1, line 8 - Take out the "1.".

House File 667

Page 16, line 6 - Post marital should be one word.
Page 55, line 24 - Change impatient to inpatient.

House File 685

1. Page 4, line 18 - Move the amount $75,000 one space to the right.
2. Page 6, line 21 - Need a comma after the word subsection.

MARGARET A. THOMSON
Chief Clerk of the House

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 1st day of May, 2003: House Files 450, 534, 543, 549, 595, 654, 655, 662, 665,
667, 671, 672, 674, 675, 676, 677, 680, 685, 689, and 694.

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 May 2, 2003, he approved and transmitted to the Secretary of
State the following bills:

House File 171, an Act relating to nonsubstantive code corrections and including
effective and retroactive applicability date provisions.

House File 404, an Act authorizing a sentencing court to issue no-contact orders
against persons arrested for any public offense.

House File 516, an Act relating to composition and responsibilities of the Iowa
Comprehensive Petroleum Underground Storage Tank Fund Board.

House File 529, an Act directing the Mental Health and Developmental Disabilities
Commission to make recommendations for redesigning the Mental Health and
Developmental Disabilities Services System for adults and providing an effective date.

House File 619, an Act relating to health care including reimbursement of health
care facilities based on resident program eligibility and providing effective dates and a
contingent effective date.

House File 650, an Act relating to the assessment of a correctional fee by a county or
municipality, and to the prosecution of certain criminal offenses committed in a
municipality located in two or more counties.

Senate File 275, an Act relating to the taxation of utilities, including establishment
of a natural gas delivery tax rate for new electric power generating plants,
establishment of a replacement transmission tax for certain municipal utilities,
methods of allocation of replacement generation tax incurred by certain new stand-
alone electric power generating plants, a formula for determining taxable value for
property generating replacement tax annually, extending the task force, and providing
for applicability.

Senate File 353, an Act requiring establishment of county child protection assistance
teams.

Also: the Governor announced that on May 9, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 457, an Act expanding the requirements for the transition of an
individual from the child welfare services system to adulthood.

House File 560, an Act relating to medical assistance home and community-based
services waivers.

House File 599, an Act relating to property insurance, including establishment of a
mandatory plan to assure fair access to insurance requirements, and providing for an
effective date and retroactive applicability.

House File 680, an Act relating to licenses for bait dealers by creating resident and
nonresident wholesale bait dealer licenses, providing reciprocity, and providing an
effective date.

Senate File 94, an Act providing for the confidentiality of certain veterans’ records
maintained by county recorders.

Senate File 341, 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.

Senate File 405, an Act relating to the authority of a city to acquire equity interests
in business entities for the purpose of participating in electric energy transmission
service.

Also: the Governor announced that on May 12, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 558, an Act authorizing the Department of Human Services to disclose
information regarding the listing of an individual in the child or dependent abuse
registry or the sex offender registry when it is necessary for the protection of a child or
a dependent adult.

House File 565, an Act relating to the Healthy and Well Kids in Iowa program.

House File 677, an Act relating to new capital investment for businesses and new
jobs by creating a new capital investment program, creating tax incentives, and
amending the New Jobs and Income Program.

Senate File 444, an Act relating to the requirements for receiving a property tax
exemption for open prairies and wildlife habitats and including an applicability date
provision.

Senate File 459, an Act relating to Iowa agricultural industrial finance corporations,
by providing for the assignment of an Iowa Agricultural Finance Loan, and providing
an effective date.

Also: The Governor announced that on May 15, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 304, an Act relating to the payment by a county of the agricultural land
tax credit and reimbursement to the county of its payment and providing an effective
date.

House File 492, an Act relating to soil conservation by providing for the acquisition
of land by soil and water conservation districts, and eliminating certain reporting
requirements.

House File 576, an Act relating to the enterprise zone program and including
effective date provisions.

House File 665, an Act relating to property taxation of certain lands leased to others
by the Department of Corrections or Department of Human Services and providing for
the Act’s applicability.

House File 676, an Act establishing a veterans trust fund under the control of the
Commission of Veterans Affairs and providing a contingent appropriation.

Senate File 368, an Act relating to advanced telecommunications services, including
rate provisions.

Also: The Governor announced that on May 16, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 455, an Act requiring licensed health-related professionals to report
certain burn injuries to a law enforcement agency.

House File 543, an Act relating to minimum mammography examination coverage,
and making related changes.

House File 671, an Act relating to the recycling property exemption from property
tax and including an applicability date.

Senate File 402, an Act relating to sexual assault offenses by affecting the
admissibility of prior criminal offenses into evidence in the prosecution of certain
sexual offenses and by modifying the penalties for certain assaults.

Senate File 441, an Act relating to the transfer of certain property-related tax
credits and including effective and retroactive applicability date provisions.

Also: The Governor announced that on May 21, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 225, an Act modifying workers’ compensation laws and providing an
effective date.

House File 386, an Act relating to the Department of Elder Affairs including
provisions relating to the Elder Iowans Act.

House File 674, an Act relating to income tax deductions and exemptions for military
personnel and organizations, and including effective and applicability date provisions.

House File 682, 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.

Senate File 393, an Act relating to the Agricultural Development Authority by
providing for its organization and administration.

Senate File 396, an Act providing for the animal unit capacity of fowl for purposes of
regulating under the Animal Agriculture Compliance Act, and providing an effective
date.

Senate File 442, an Act updating the Iowa Code references to the Internal Revenue
Code, providing for decoupling with the Internal Revenue Code for a certain bonus
depreciation provision, and providing retroactivity applicability dates and an effective
date.


Also: the Governor announced that on May 23, 2003, he approved
and transmitted to the Secretary of State the following bills:

House File 534, an Act providing for the reorganization of certain state
departments by establishing a Department of Administrative Services, making related
changes, providing penalties, and providing an effective date.

House File 577, an Act providing for a waiver of deadline requirements relating to
whole-grade sharing agreements in specified school districts, and providing an effective
date.

House File 594, an Act relating to the registration of electrical and mechanical
amusement devices and the registration of manufacturers and distributors thereof,
establishing fees, making an appropriation, making penalties applicable, and providing
an effective date.

House File 595, an Act relating to certain voluntary annexations and to involuntary
annexations and providing an effective date.

House File 624, an Act regulating farm deer, providing for penalties, and providing
an effective date.

House File 681, an Act relating to tax credits and associated refunds for cooperatives
engaged in the production of value-added agricultural products, and providing for its
applicability.

House File 694, an Act relating to the judicial branch including by establishing a
judicial district and judicial election district redistricting process, making changes to
the nomination, appointment, and retention of judges, expanding magistrate courts,
eliminating the position of alternate district associate judge, permitting district
judgeships to be apportioned or transferred to another judicial district, requiring the
county sheriff to serve a summons in certain delinquency proceedings, eliminating the
participation of the Foster Care Review Board in voluntary foster care placements,
waiving the filing fee and court costs in certain contempt actions, changing the duties
of and the procedures related to the clerk of the district court, providing that interest
on a judgment be calculated upon the one year treasury constant maturity plus two
percent, expanding the access of the deferred judgment docket, prohibiting regional
litigation centers, modifying the schedule of the probate court, providing for a fee, and
providing for a study.

Senate File 425, an Act relating to and making appropriations involving state
government, including provisions affecting agriculture and natural resources.

Senate File 435, an Act relating to and making appropriations to the judicial branch.

Senate File 439, an Act relating to and making appropriations to the justice system
and providing an effective date.

Senate File 451, an Act providing for the jurisdiction and funding of roads by
transferring funding for and jurisdiction of certain primary and farm-to-market roads,

modifying the procedure for classification of area service "C" roads, and establishing a
street construction fund distribution advisory committee, and making appropriations.

GOVERNOR’S ITEM VETO MESSAGE

May 23, 2003

The Honorable Chester Culver
Secretary of State
State Capitol
L O C A L

Dear Mr. Secretary:

I hereby transmit House File 667, an Act relating to and making appropriations for
health and human services to the Department of Elder Affairs, the Iowa Department of
Public Health, the Department of Inspections and Appeals, the Department of Human
Services, and Commission of Veterans Affairs, and providing effective dates.

There were cooperative efforts to resolve issues in areas addressed by this bill that
will allow Iowa to continue to provide services to children and families, even in these
challenging times. The legislature was thoughtful and receptive and this bill reflects a
very collaborative process between the stakeholders. Strong efforts were made to
protect vulnerable Iowans; including seniors, the disabled, dependent children and
families. This bill reflects joint efforts to address Medicaid and child welfare issues.

However, this bill continues to demand more services and reporting requirements at
the same time funding levels have been reduced. With a goal of working to provide
needed services and reducing process requirements, this bill has several provisions
that I cannot support.

I am unable to approve the designated portions of Section 2, subsection 1. This
section would require the Department of Health to produce a report of all the
organizations that applied for substance abuse treatment funds, the amounts awarded,
and the basis for refusal to award funds to any of the organizations that applied. In
accordance with the Accountable Government Act all substance abuse treatment and
prevention grants are awarded on a competitive basis. This item is an un-funded
mandate that takes time away from customers and communities for unnecessary
reporting.

I am unable to approve the item designated as Section 7, subsection 15, paragraph a
through k in their entirety. This language creates a new Iowa marriage grant
initiative. The language involved adds new bureaucratic rules and regulations that
require extensive staff time that could otherwise be spent providing services to
families. Furthermore, language already exists in statute for this program.

I am unable to approve the item designated as Section 11, subsection 8 in its
entirety. This language directs the Department of Human Services to work with
counties to implement services to people with chronic mental illness. This effort has
already been accomplished and is, therefore, redundant.

I am unable to approve the item designated as Section 16, subsection 5 in its
entirety. This language requires additional notice to legislators if additional federal

child-care funds are received. This is an unnecessary reporting requirement at a time
when funding for staff have been reduced.

I am unable to approve the item designated as Section 16, subsection 7(b) and (c) in
their entirety. This language directs the Department of Human Services to develop
consumer information to assist parents in selecting a childcare provider. The
department currently provides consumer information to customers and will continue to
do so. Staff and funding of the department have been severely reduced leaving the
department ill-equipped to provide the support necessary to complete this effort.

I am unable to approve the item designated as Section 18, subsection 12 in its
entirety. This language requires the Department of Human Services and juvenile
court officers to develop criteria for intensive tracking and supervision of delinquent
youth. These criteria were developed three years ago in response to this language;
thus, this language is no longer needed.

I am unable to approve the item designated as Section 18, subsection 21. This
directs the Department of Human Services to develop a plan to privatize the
administration of foster care and adoption programs. Given the fact that no additional
funds were provided for this purpose, staffing has been severely reduced, and the child
welfare redesign effort is included in Senate File 453, implementation of this section is
counter-productive.

I am unable to approve the item designated as a portion of Section 28, subsection 2.
This item requires the Department of Human Services to submit proposed legislation
to correct Code references related to service areas. This appears to be the realm of the
Legislative Service Bureau or Code Editor rather than the Department of Human
Services, especially at a time when the Department’s resources have been severely
reduced.

I am unable to approve the item designated as Section 35. This language exempts
the Department of Human Services from making payments to the Vehicle Dispatcher
for fiscal year 2004. This would hamper the state’s efforts to purchase vehicles when
needed and at the best price.

I am unable to approve the item designated as Section 36, subsection 2, in its
entirety. This language creates a new initiative on parental involvement. The
language involved is very prescriptive, time intensive and can be accomplished without
directing the effort.

For the above reasons, I respectfully disapprove these items in accordance with
Amendment IV of the Amendments of 1968 to the Constitution of the State of Iowa.
All other items in House File 667 are hereby approved as of this date.

Sincerely,
Thomas J. Vilsack
Governor


COMMUNICATIONS RECEIVED

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

DEPARTMENT OF HUMAN SERVICES

Analysis report regarding the use of any excess payment allowance to nursing
facilities, pursuant to Chapter 3 e, f, Code of Iowa.

CIVIL RIGHTS COMMISSION

Annual savings report on ICN usage for fiscal year 2002, pursuant to Chapter
7E.5(n), Code of Iowa.

COMMITTEE TO NOTIFY THE GOVERNOR

Gipp of Winneshiek moved that a committee of two be appointed to
notify the Governor that the House was ready to adjourn in
accordance with Senate Concurrent Resolution 21, duly adopted.

The motion prevailed and the Speaker appointed as such
committee Carroll of Poweshiek and Myers of Johnson.

COMMITTEE TO NOTIFY THE SENATE

Gipp of Winneshiek moved that a committee of two be appointed to
notify the Senate that the House was ready to adjourn in accordance
with Senate Concurrent Resolution 21, duly adopted.

The motion prevailed and the Speaker appointed as such
committee Elgin of Linn and Connors of Polk.

COMMITTEE FROM THE SENATE

The committee from the Senate appeared and notified the House
that the Senate was ready to adjourn.

REPORT OF THE COMMITTEE TO NOTIFY THE SENATE

The committee appointed to notify the Senate that the House was
ready to adjourn returned and reported it had performed its duty.

REPORT OF THE COMMITTEE TO NOTIFY THE GOVERNOR

The committee appointed to notify the Governor that the House

was ready to adjourn returned and reported it had performed its
duty.

COMMUNICATION FROM THE GOVERNOR

May 1, 2003

The Honorable Mary Kramer
President of the Senate
State Capitol
L O C A L

The Honorable Christopher Rants
Speaker of the House
State Capitol
L O C A L

Dear President Kramer and Speaker Rants:

Throughout our state’s history, Iowans have valued education, hard work, self-
reliance, community involvement, generosity to our neighbors, and responsible
stewardship of the land, air, and water. Challenging times give us an opportunity to
assess our values, and to make changes that will support those values.

This, the first session of the Eightieth General Assembly, gave us the opportunity
to address these shared Iowa values. Even in these difficult economic times that have
most states reeling from budget cuts and shortfalls, we have a unique opportunity to
make the bold changes necessary to grow Iowa, preserve our values, and strengthen
the quality of life that has long sustained our state.

Developing and drafting consensus language that creates the Iowa Values Fund has
been a historic achievement accomplished by both the majority and minority members
of the House of Representatives during the regular session. I look forward to working
with the State Senate to act on the Iowa Values Fund.

Two pieces of significant legislation that were accomplished during the regular
session were to lower the level of alcohol needed in a person’s blood to be presumed
drunk, from .10 to .08 BAC and the proposal to reorganize and streamline state
government.

This was the third consecutive legislative session that I have called for a bill to
lower the blood alcohol rate to .08. The tougher standard corresponds with a projected
10-16 lives saved in Iowa per year. This has always been an issue of safety.

I had called on the legislature to create the Department of Administrative Services
(DAS) last session and am pleased that this session DAS was sent to me. DAS will
streamline services, improve services to customers, enhance resource flexibility, and to
save money.


I intend to continue to work with legislators to lay the foundation for a more
prosperous future for our state. When the people of Iowa work together on a common
goal, we can accomplish anything.

Sincerely,
Thomas J. Vilsack
Governor

FINAL ADJOURNMENT

By virtue of Senate Concurrent Resolution 21, duly adopted, the
day of May 1, 2003 having arrived, the Speaker of the House of
Representatives declared the 2003 Regular Session of the Eightieth
General Assembly adjourned sine die.


Previous Day: Wednesday, April 30Next Day: Thursday, May 29
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