CCH-2465 REPORT OF THE CONFERENCE COMMITTEE ON HOUSE FILE 2465 To the Speaker of the House of Representatives and the President of the Senate: We, the undersigned members of the conference committee appointed to resolve the differences between the House of Representatives and the Senate on House File 2465, a bill for an Act relating to state and local finances by making and adjusting appropriations, providing for legal responsibilities, and providing for properly related matters, and including effective date and retroactive and other applicability provisions, respectfully make the following report: 1. That Senate amendment, H-8513, to House File 2465, as amended, passed, and reprinted by the House, is amended to read as follows: 1. Page 1, after line 6 by inserting: < Sec. ___. GENERAL ASSEMBLY. The appropriations made pursuant to section 2.12 for the expenses of the general assembly and the legislative agencies for the fiscal year beginning July 1, 2012, and ending June 30, 2013, are reduced by the following amount: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,672,924 > -1- H8513.6166 (5) 84 tm/jp 1/ 20

CCH-2465 2. Page 2, after line 1 by inserting: < 8. For reimbursement for the homestead property tax credit under section 425.1: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 106,983,518 Sec. ___. Section 97A.11A, subsection 1, Code 2011, is amended to read as follows: 1. Beginning with the fiscal year commencing July 1, 2012 2013 , and ending June 30 of the fiscal year during which the board determines that the system’s funded ratio of assets to liabilities is at least eighty-five percent, there is appropriated from the general fund of the state for each fiscal year to the retirement fund described in section 97A.8 , an amount equal to five million dollars. > 3. Page 2, after line 3 by inserting: < Sec. ___. WATERSHED IMPROVEMENT FUND —— APPROPRIATION. There is appropriated from the rebuild Iowa infrastructure fund to the department of agriculture and land stewardship for the fiscal year beginning July 1, 2012, and ending June 30, 2013, the following amount, or so much thereof as is necessary, to be used for the purposes designated, notwithstanding section 8.57, subsection 6, paragraph “c”: For deposit in the watershed improvement fund created in section 466A.2: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 Sec. ___. TUITION GRANTS —— FOR-PROFIT ACCREDITED PRIVATE INSTITUTIONS. 1. There is appropriated from the general fund of the state to the college student aid commission for the fiscal year beginning July 1, 2012, and ending June 30, 2013, the following amount, or so much thereof as is necessary, to be used for the purposes designated: For tuition grants for students attending for-profit accredited private institutions located in Iowa under 261.25, subsection 2: -2- H8513.6166 (5) 84 tm/jp 2/ 20

CCH-2465 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000 2. Moneys appropriated in this section shall supplement and not supplant moneys appropriated in section 261.25, subsection 2, for the fiscal year beginning July 1, 2012, and ending June 30, 2013. Sec. ___. IOWA READING RESEARCH CENTER. There is appropriated from the general fund of the state to the department of education for the fiscal year beginning July 1, 2012, and ending June 30, 2013, the following amount, or so much thereof as is necessary, to be used for the purposes designated: For establishing an Iowa reading research center pursuant to 2012 Iowa Acts, Senate File 2284, if enacted: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 > 4. Page 2, by striking lines 4 through 11 and inserting: < Sec. ___. JOINT STATE-FEDERAL MORTGAGE SERVICING SETTLEMENT MONEYS —— APPROPRIATIONS. 1. A mortgage servicing settlement fund is established, separate and apart from all other public moneys or funds of the state, under the control of the department of justice. The department of justice shall deposit moneys received by the department from the joint state-federal mortgage servicing settlement into the fund. The department of justice is authorized to make expenditures of moneys in the fund consistent with the terms of the consent decree signed in federal court on April 5, 2012. Any unencumbered or unobligated moneys remaining in the fund on June 30, 2015, shall be transferred to the general fund of the state. 2. A banking division mortgage servicing settlement fund is established, separate and apart from all other public moneys or funds of the state, under the control of the division of banking of the department of commerce. The banking division shall deposit moneys received by the division from the joint state-federal mortgage servicing settlement into the fund. -3- H8513.6166 (5) 84 tm/jp 3/ 20

CCH-2465 Moneys deposited in the fund are appropriated to the banking division to be used as provided in a financial plan developed by the superintendent of banking and approved by the department of management to support state financial regulation, including oversight of mortgage lending and mortgage servicing, real estate and real estate appraisal, state chartered banks, and other financial services regulated by the division of banking. Moneys in the fund may also be used to support financial literacy efforts. The financial plan may be updated periodically as provided by the superintendent and approved by the department of management. Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that begins July 1, 2014. Any unencumbered or unobligated moneys remaining in the fund on June 30, 2015, shall be transferred to the general fund of the state. 3. There is appropriated from the mortgage servicing settlement fund to the department of management for the fiscal year beginning July 1, 2012, and ending June 30, 2013, the following amount, or so much thereof as is necessary, to be used for the purposes designated: For deposit in the rebuild Iowa infrastructure fund: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 > 5. Page 2, by striking line 12 and inserting: < 4. a. The department of justice shall > 6. Page 2, line 14, after < moneys > by inserting < from the mortgage servicing settlement fund by the department of justice > 7. Page 2, after line 20 by inserting: < b. The division of banking shall submit a report to the general assembly detailing the expenditure of moneys from the banking division mortgage servicing settlement fund by the -4- H8513.6166 (5) 84 tm/jp 4/ 20

CCH-2465 division of banking for the previous calendar year and how the expenditures related to the implementation, monitoring, or enforcement of the settlement and how expenditures in the current and succeeding calendar year will be used for implementation, monitoring, or enforcement of the settlement. The initial report shall be submitted on or before January 15, 2013. > 8. Page 2, line 30, by striking < 137,000 > and inserting < 50,000 > 9. By striking page 2, line 31, through page 3, line 1. 10. Page 3, line 2, by striking < 2. > and inserting < 1. > 11. Page 3, line 7, after < year > by inserting < and shall include but is not limited to an antibullying internet site, internet-based communications including texting capabilities, and a telephone hotline > 12. Page 3, line 8, by striking < 3. > and inserting < 2. > 13. Page 3, by striking lines 13 through 46. 14. Page 4, by striking lines 6 through 17. 15. Page 5, line 10, by striking < 13. > and inserting < ___. > 16. Page 5, before line 13 by inserting: < Sec. ___. NEW SECTION . 15E.71 Executive council action. Notwithstanding section 7D.29, subsection 1, the executive council in full consultation with the attorney general, and with the agreement of the attorney general, shall take any action deemed necessary to protect the interests of the state with respect to any certificates, tax credits, entities created, or action taken in relation to this division. Such actions may include but are not limited to initiation of legal action, commencement of special investigations, institution of special audits of any involved entity, or establishment of receiverships. If such action is taken, the council may incur the necessary expense to perform such a duty or cause such a duty to be performed, and pay the same out of any money in the state treasury not otherwise appropriated. > -5- H8513.6166 (5) 84 tm/jp 5/ 20

CCH-2465 17. By striking page 6, line 46, through page 8, line 7. 18. Page 9, by striking lines 15 through 23. 19. Page 9, line 32, by striking < fifteen > and inserting < twenty > 20. Page 9, before line 37 by inserting: < Sec. ___. Section 257.37, subsections 1 and 2, Code 2011, are amended to read as follows: 1. For the budget year beginning July 1, 1991, and succeeding budget years, the total amount funded in each area for media services shall be computed as provided in this subsection . For the budget year beginning July 1, 1991, the total amount funded in each area for media services in the base year , including the cost for media resource material which shall only be used for the purchase or replacement of material required in section 273.6, subsection 1 , paragraphs “a” , “b” , and “c” , shall be divided by the enrollment served in the base year to provide an area media services cost per pupil in the base year, and the department of management shall compute the state media services cost per pupil in the base year which is equal to the average of the area media services costs per pupil in the base year. For the budget year beginning July 1, 1991, and succeeding budget years, the department of management shall compute the allowable growth for media services in the budget year by multiplying the state media services cost per pupil in the base year times the state percent of growth for the budget year, and the total amount funded in each area for media services cost in the budget year equals the area media services cost per pupil in the base year plus the allowable growth for media services in the budget year times the enrollment served in the budget year. Funds shall be paid to area education agencies as provided in section 257.35 . 2. Thirty Up to thirty percent of the budget of an area for media services shall may be expended for media resource material which shall only be used for including the purchase or -6- H8513.6166 (5) 84 tm/jp 6/ 20

CCH-2465 replacement of material required in section 273.6, subsection 1 . Funds shall be paid to area education agencies as provided in section 257.35 . > 21. Page 10, by striking lines 5 through 7 and inserting < in section 97A.1, who was killed in the line of duty > 22. Page 10, by striking lines 13 through 15 and inserting < fighter, as defined in section 411.1, who was killed in the > 23. Page 10, by striking lines 20 through 23 and inserting < as defined in section 97B.49C, who was killed in the line of duty as > 24. Page 10, after line 25 by inserting: < (4) Is the child of a fire fighter included under section 97B.49B, who was killed in the line of duty as determined by the Iowa public employees’ retirement system in accordance with section 97B.52, subsection 2. > 25. By striking page 11, line 25, through page 12, line 7. 26. Page 13, before line 1 by inserting: < Sec. ___. Section 476C.3, subsection 4, paragraph b, Code Supplement 2011, is amended to read as follows: b. The maximum amount of energy production capacity equivalent of all other facilities the board may find eligible under this chapter shall not exceed a combined output of fifty-three megawatts of nameplate generating capacity and one hundred sixty-seven billion British thermal units of heat for a commercial purpose. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter, no more than ten megawatts of nameplate generating capacity or energy production capacity equivalent shall be allocated to any one facility. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter , fifty-five billion British thermal units of heat for a commercial purpose shall be reserved for an eligible facility that is a refuse conversion facility for processed, engineered fuel from a -7- H8513.6166 (5) 84 tm/jp 7/ 20

CCH-2465 multicounty solid waste management planning area. The maximum amount of energy production capacity the board may find eligible for a single refuse conversion facility is fifty-five billion British thermal units of heat for a commercial purpose. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter, an amount equivalent to ten megawatts of nameplate generating capacity shall be reserved for eligible renewable energy facilities incorporated within or associated with an ethanol cogeneration plant engaged in the sale of ethanol to states to meet a low carbon fuel standard. Sec. ___. Section 476C.3, Code Supplement 2011, is amended by adding the following new subsection: NEW SUBSECTION . 4A. Notwithstanding the definition of “eligible renewable energy facility” in section 476C.1, subsection 6, unnumbered paragraph 1, of the maximum amount of energy production capacity equivalent of all other facilities found eligible pursuant to subsection 4, paragraph “b” , an amount equivalent to ten megawatts of nameplate generating capacity shall be reserved for natural gas cogeneration facilities incorporated within or associated with an ethanol plant to assist the ethanol plant in meeting a low carbon fuel standard. > 27. Page 13, after line 14 by inserting: < Sec. ___. Section 511.8, subsection 19, Code Supplement 2011, is amended to read as follows: 19. Other foreign government or corporate obligations. a. Bonds or other evidences of indebtedness, not to include currency, issued, assumed, or guaranteed by a foreign government other than Canada, or by a corporation incorporated under the laws of a foreign government other than Canada. Such governmental obligations must be valid, legally authorized and issued, and on the date of acquisition have predominantly investment qualities and characteristics as provided by -8- H8513.6166 (5) 84 tm/jp 8/ 20

CCH-2465 rule. Such corporate obligations must meet the qualifications established in subsection 5 for bonds and other evidences of indebtedness issued, assumed, or guaranteed by a corporation incorporated under the laws of the United States or Canada. Foreign investments authorized by this subsection are not eligible in excess of twenty twenty-five percent of the legal reserve of the life insurance company or association. Investments in obligations of a foreign government, other than Canada and , the United Kingdom, and foreign governments rated AAA by Standard and Poor’s division of McGraw-Hill companies, inc., or Aaa by Moody’s investors services, inc., are not eligible in excess of two percent of the legal reserve in the securities of foreign governments of any one foreign nation. Investments in obligations of the United Kingdom are not eligible in excess of four percent of the legal reserve. Investments in obligations of foreign governments rated either AAA by Standard and Poor’s division of McGraw-Hill companies, inc., or Aaa by Moody’s investors services, inc., are not eligible in excess of five percent of the legal reserve. Investments in a corporation incorporated under the laws of a foreign government other than Canada are not eligible in excess of two percent of the legal reserve in the securities of any one foreign corporation. b. Eligible investments in foreign obligations under this subsection are limited to the types of obligations specifically referred to in this subsection . This subsection in no way limits or restricts investments in Canadian obligations and securities specifically authorized in other subsections of this section . c. This subsection shall not authorize investment in evidences of indebtedness issued, assumed, or guaranteed by a foreign government which engages in a consistent pattern of gross violations of human rights. > 28. Page 15, line 5, by striking < 2289. >> and inserting -9- H8513.6166 (5) 84 tm/jp 9/ 20

CCH-2465 < 2289. > 29. Page 15, by striking lines 14 through 16 and inserting: < 6. The section of this division of this Act relating to joint state-federal mortgage servicing settlement moneys. > 30. By striking page 25, line 43, through page 27, line 32. 31. By striking page 28, line 7, through page 30, line 44. 32. By striking page 30, line 45, through page 31, line 25. 33. By striking page 31, line 29, through page 34, line 39. 34. By striking page 42, line 23, through page 43, line 28. 35. Page 44, line 9, after < percent. > by inserting < An ordinance increasing the franchise fee rate to greater than five percent pursuant to this subparagraph division (b) shall not become effective unless approved at an election. After passage of the ordinance, the council shall submit the proposal at a special election held on a date specified in section 39.2, subsection 4, paragraph “b” . If a majority of those voting on the proposal approves the proposal, the city may proceed as proposed. The complete text of the ordinance shall be included on the ballot and the full text of the ordinance posted for the voters pursuant to section 52.25. All absentee voters shall receive the full text of the ordinance along with the absentee ballot. > 36. By striking page 45, line 9, through page 46, line 5. 37. Page 46, by striking lines 8 and 9 and inserting: < Sec. ___. Section 256D.9, Code 2011, is amended to read as follows: 256D.9 Future repeal. This chapter is repealed effective July 1, 2012 2013 . > 38. By striking page 46, line 12, through page 52, line 6. 39. By striking page 53, line 14, through page 57, line 44, and inserting: < DIVISION ___ NAVIGATOR —— INSURANCE Sec. ___. NEW SECTION . 522D.1 Definitions. -10- H8513.6166 (5) 84 tm/jp 10/ 20

CCH-2465 As used in this chapter, unless the context otherwise requires: 1. “Commissioner” means the commissioner of insurance. 2. “ Navigator ” means a public or private entity or an individual that is qualified and licensed, if appropriate, to engage in the activities and meet the standards described in 45 C.F.R. § 155.210. Sec. ___. NEW SECTION . 522D.2 License required. A person shall not act as a navigator in this state unless the person is licensed by the commissioner as required in this chapter. Sec. ___. NEW SECTION . 522D.3 Actions prohibited. A navigator shall not perform the functions of a person required to be licensed as an insurance producer under chapter 522B unless the navigator is licensed as a navigator pursuant to this chapter and as an insurance producer pursuant to chapter 522B. Sec. ___. NEW SECTION . 522D.4 Application for examination. 1. An individual applying for a navigator license shall pass a written examination. The examination shall test the knowledge of the individual concerning the duties and responsibilities of a navigator and the insurance laws and regulations of this state. The commissioner shall adopt rules pursuant to chapter 17A related to the development and conduct of the examination. 2. The commissioner may make arrangements, including contracting with an outside testing service or other appropriate entity, for administering examinations and collecting fees. 3. An individual applying for an examination shall remit a nonrefundable fee as established by rule of the commissioner. 4. An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being -11- H8513.6166 (5) 84 tm/jp 11/ 20

CCH-2465 rescheduled for another examination. Sec. ___. NEW SECTION . 522D.5 Application for license. 1. A person applying for a navigator license shall make application to the commissioner on an application form approved by the commissioner and declare under penalty of refusal, suspension, or revocation of the license that the statements made on the application are true, correct, and complete to the best of the individual’s knowledge and belief. Before approving the application, the commissioner shall find all of the following: a. The individual is at least eighteen years of age. b. The individual has not committed any act that is a ground for denial, suspension, or revocation as set forth in section 522D.7. c. The individual has paid the license fee, as established by the commissioner by rule. d. The individual has successfully completed the initial training and education program for a license as established by the commissioner by rule. e. The individual has successfully passed the examination as provided in section 522D.4. f. In order to protect the public interest, the individual has the requisite character and competence to receive a license as a navigator. 2. A public or private entity acting as a navigator may elect to obtain a navigator license. Application shall be made using the application form approved by the commissioner. Prior to approving the application, the commissioner shall find both of the following: a. The entity has paid the appropriate fees. b. The entity has designated a licensed navigator responsible for the entity’s compliance with this chapter. Sec. ___. NEW SECTION . 522D.6 License. 1. A person who meets the requirements of sections 522D.4 -12- H8513.6166 (5) 84 tm/jp 12/ 20

CCH-2465 and 522D.5, unless otherwise denied licensure pursuant to section 522D.7, shall be issued a navigator license. A navigator license is valid for three years. 2. A navigator license remains in effect unless revoked or suspended as long as all required fees are paid and continuing education requirements are met by any applicable due date. A navigator is required to complete continuing education requirements required by law in order to be eligible for license renewal. 3. A licensed navigator who is unable to comply with license renewal procedures due to military service or other extenuating circumstances may request a waiver of those procedures. The licensed navigator may also request a waiver of any examination requirement or any other penalty or sanction imposed for failure to comply with renewal procedures. 4. The license shall contain the licensee’s name, address, personal identification number, the date of issuance, the expiration date, and any other information the commissioner deems necessary. 5. A licensee shall inform the commissioner by any means acceptable to the commissioner of a change of legal name or address within thirty days of the change. Failure to timely inform the commissioner of a change of legal name or address may result in a penalty as specified in section 522D.7. 6. The commissioner shall require by rule that a licensed navigator furnish a surety bond or other evidence of financial responsibility that protects all persons against wrongful acts, misrepresentations, errors, omissions, or negligence of the navigator. 7. In order to assist with the commissioner’s duties, the commissioner may contract with a nongovernmental entity, including the national association of insurance commissioners or any affiliate or subsidiary the national association of insurance commissioners oversees, to perform any ministerial -13- H8513.6166 (5) 84 tm/jp 13/ 20

CCH-2465 functions, including the collection of fees, related to navigator licensing that the commissioner deems appropriate. Sec. ___. NEW SECTION . 522D.7 License denial, nonrenewal, or revocation. 1. The commissioner may place on probation, suspend, revoke, or refuse to issue or renew a navigator’s license or may levy a civil penalty as provided in section 522D.8 for any one or more of the following causes: a. Providing incorrect, misleading, incomplete, or materially untrue information in the license application. b. Violating any insurance laws, or violating any regulation, subpoena, or order of the commissioner or of a commissioner of another state. c. Obtaining or attempting to obtain a license through misrepresentation or fraud. d. Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance business. e. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance. f. Having been convicted of a felony. g. Having admitted or been found to have committed any unfair insurance trade practice or fraud. h. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere. i. Having a navigator license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory. j. Forging another’s name to an application for insurance or to any document related to an insurance transaction. k. Improperly using notes or any other reference material to complete an examination for a navigator license. -14- H8513.6166 (5) 84 tm/jp 14/ 20

CCH-2465 l. Failing to comply with an administrative or court order imposing a child support obligation. m. Failing to comply with an administrative or court order related to repayment of loans to the college student aid commission. n. Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax. o. Failing or refusing to cooperate in an investigation by the commissioner. 2. If the commissioner does not renew a license or denies an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, the licensee or applicant of the reason for the nonrenewal of the license or denial of the application for a license. The licensee or applicant may request a hearing on the nonrenewal or denial. A hearing shall be conducted according to section 507B.6. 3. The license of a public or private entity operating as a navigator may be suspended, revoked, or refused if the commissioner finds, after hearing, that an individual navigator licensee’s violation was known or should have been known by a partner, officer, or manager acting on behalf of the entity and the violation was not reported to the commissioner and corrective action was not taken. 4. In addition to, or in lieu of, any applicable denial, suspension, or revocation of a license, a person, after hearing, may be subject to a civil penalty as provided in section 522D.8. 5. The commissioner may conduct an investigation of any suspected violation of this chapter pursuant to section 507B.6 and may enforce the provisions and impose any penalty or remedy authorized by this chapter and chapter 507B against any person who is under investigation for, or charged with, a violation of either chapter even if the person’s license has been -15- H8513.6166 (5) 84 tm/jp 15/ 20

CCH-2465 surrendered or has lapsed by operation of law. 6. a. In order to assure a free flow of information for accomplishing the purposes of this section, all complaint files, investigation files, other investigation reports, and other investigative information in the possession of the commissioner or the commissioner’s employees or agents that relates to licensee discipline are privileged and confidential, and are not subject to discovery, subpoena, or other means of legal compulsion for their release to a person other than the licensee, and are not admissible in evidence in a judicial or administrative proceeding other than the proceeding involving licensee discipline. A final written decision of the commissioner in a disciplinary proceeding is a public record. b. Investigative information in the possession of the commissioner or the commissioner’s employees or agents that relates to licensee discipline may be disclosed, in the commissioner’s discretion, to appropriate licensing authorities within this state, the appropriate licensing authority in another state, the District of Columbia, or a territory or country in which the licensee is licensed or has applied for a license. c. If the investigative information in the possession of the commissioner or the commissioner’s employees or agents indicates a crime has been committed, the information shall be reported to the proper law enforcement agency. d. Pursuant to the provisions of section 17A.19, subsection 6, upon an appeal by the licensee, the commissioner shall transmit the entire record of the contested case to the reviewing court. e. Notwithstanding the provisions of section 17A.19, subsection 6, if a waiver of privilege has been involuntary and evidence has been received at a disciplinary hearing, the court shall issue an order to withhold the identity of the individual whose privilege was waived. -16- H8513.6166 (5) 84 tm/jp 16/ 20

CCH-2465 Sec. ___. NEW SECTION . 522D.8 Cease and desist orders —— penalties. 1. A navigator who, after hearing, is found to have violated this chapter, may be ordered to cease and desist from engaging in the conduct resulting in the violation and may be assessed a civil penalty pursuant to chapter 507B. 2. If a person does not comply with an order issued pursuant to this section, the commissioner may petition a court of competent jurisdiction to enforce the order. The court shall not require the commissioner to post a bond in an action or proceeding under this section. If the court finds, after notice and opportunity for hearing, that the person is not in compliance with an order, the court may adjudge the person to be in civil contempt of the order. The court may impose a civil penalty against the person for contempt in an amount not less than three thousand dollars but not greater than ten thousand dollars for each violation and may grant any other relief that the court determines is just and proper in the circumstances. Sec. ___. NEW SECTION . 522D.9 Injunctive relief. 1. A person may bring an action in district court to enjoin another person from acting as a navigator in violation of section 522D.2. However, before bringing an action in district court to enjoin a person pursuant to this section, the person shall file a complaint with the insurance division alleging that another person is acting as a navigator in violation of section 522D.2. 2. If the division makes a determination to proceed administratively against the person for a violation of section 522D.2, the complainant shall not bring an action in district court against the person pursuant to this section based upon the allegations contained in the complaint filed with the division. 3. If the division does not make a determination to proceed administratively against the person for a violation of section -17- H8513.6166 (5) 84 tm/jp 17/ 20

CCH-2465 522D.2, the division shall issue, by ninety days from the date of filing of the complaint, a release to the complainant that permits the complainant to bring an action in district court pursuant to this section. 4. The filing of a complaint with the division pursuant to this section tolls the statute of limitations pursuant to section 614.1 as to the alleged violation for a period of one hundred twenty days from the date of filing the complaint. 5. Any action brought in district court by a complainant against a person pursuant to this section, based upon the allegations contained in the complaint filed with the division, shall be brought within one year after the ninety-day period following the filing of the complaint with the division, or the date of the issuance of a release by the division, whichever is earlier. 6. If the court finds that the person is in violation of section 522D.2 and enjoins the person from acting as a navigator in violation of that section, the court’s findings of fact and law, and the judgment and decree, when final, shall be admissible in any proceeding initiated pursuant to section 522D.8 by the commissioner against the person enjoined and the person enjoined shall be precluded from contesting in that proceeding the court’s determination that the person acted as a navigator in violation of section 522D.2. Sec. ___. NEW SECTION . 522D.10 Rules. The commissioner may adopt rules pursuant to chapter 17A as are necessary or proper to carry out the purposes of this chapter. Sec. ___. NEW SECTION . 522D.11 Severability. If any provision of this chapter or its application to any person or circumstance is held invalid by a court of competent jurisdiction or by federal law, the invalidity does not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and -18- H8513.6166 (5) 84 tm/jp 18/ 20

CCH-2465 to this end the provisions of the chapter are severable and the valid provisions or applications shall remain in full force and effect. Sec. ___. NEW SECTION . 522D.12 Future repeal. If the federal law providing for the sale of qualified health benefit plans of the state is repealed by federal legislation or is ruled invalid by a decision of the United States supreme court, the commissioner shall notify the Iowa Code editor of the effective date of the repeal or the date of the ruling. This chapter is repealed on the effective date of such federal legislation or the date of the United States supreme court decision. DIVISION ___ CAPITAL GAIN DEDUCTION FOR SALE TO AN IOWA ESOP Sec. ___. Section 422.7, subsection 21, Code Supplement 2011, is amended by adding the following new paragraph: NEW PARAGRAPH . e. (1) To the extent not already excluded, fifty percent of the net capital gain from the sale or exchange of employer securities of an Iowa corporation to a qualified Iowa employee stock ownership plan when, upon completion of the transaction, the qualified Iowa employee stock ownership plan owns at least thirty percent of all outstanding employer securities issued by the Iowa corporation. (2) For purposes of this paragraph: (a) “Employer securities” means the same as defined in section 409(l) of the Internal Revenue Code. (b) “Iowa corporation” means a corporation whose commercial domicile, as defined in section 422.32, is in this state. (c) “Qualified Iowa employee stock ownership plan” means an employee stock ownership plan, as defined in section 4975(e)(7) of the Internal Revenue Code, and trust that are established by an Iowa corporation for the benefit of the employees of the corporation. Sec. ___. RETROACTIVE APPLICABILITY. This division of this -19- H8513.6166 (5) 84 tm/jp 19/ 20

CCH-2465 Act applies retroactively to January 1, 2012, for tax years beginning on or after that date. > 40. By renumbering as necessary. ON THE PART OF THE HOUSE: ______________________________ J. SCOTT RAECKER, CHAIRPERSON ______________________________ MARK LOFGREN ______________________________ TYLER OLSON ______________________________ KIRSTEN RUNNING-MARQUARDT ______________________________ NICK WAGNER ON THE PART OF THE SENATE: ______________________________ ROBERT E. DVORSKY, CHAIRPERSON ______________________________ MICHAEL E. GRONSTAL ______________________________ JOHN P. KIBBIE -20- H8513.6166 (5) 84 tm/jp 20/ 20