House Amendment to Senate File 303 S-5100 Amend Senate File 303, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < DIVISION I 5 RETIREMENT PAY TAX EXEMPTION 6 Section 1. Section 422.5, subsection 3, paragraph 7 a, Code 2014, is amended to read as follows: 8 a. The tax shall not be imposed on a resident or 9 nonresident whose net income, as defined in section 10 422.7 , is thirteen thousand five hundred dollars or 11 less in the case of married persons filing jointly 12 or filing separately on a combined return, heads of 13 household, and surviving spouses or nine thousand 14 dollars or less in the case of all other persons; 15 but in the event that the payment of tax under this 16 division would reduce the net income to less than 17 thirteen thousand five hundred dollars or nine thousand 18 dollars as applicable, then the tax shall be reduced to 19 that amount which would result in allowing the taxpayer 20 to retain a net income of thirteen thousand five 21 hundred dollars or nine thousand dollars as applicable. 22 The preceding sentence does not apply to estates or 23 trusts. For the purpose of this subsection , the entire 24 net income, including any part of the net income not 25 allocated to Iowa, shall be taken into account. For 26 purposes of this subsection , net income includes all 27 amounts of pensions or other retirement income , except 28 for military retirement pay excluded under section 29 422.7, subsection 31A, paragraph “a” , or section 30 422.7, subsection 31B, paragraph “a” , received from any 31 source which is not taxable under this division as a 32 result of the government pension exclusions in section 33 422.7 , or any other state law. If the combined net 34 income of a husband and wife exceeds thirteen thousand 35 five hundred dollars, neither of them shall receive 36 the benefit of this subsection , and it is immaterial 37 whether they file a joint return or separate returns. 38 However, if a husband and wife file separate returns 39 and have a combined net income of thirteen thousand 40 five hundred dollars or less, neither spouse shall 41 receive the benefit of this paragraph, if one spouse 42 has a net operating loss and elects to carry back or 43 carry forward the loss as provided in section 422.9, 44 subsection 3 . A person who is claimed as a dependent 45 by another person as defined in section 422.12 shall 46 not receive the benefit of this subsection if the 47 person claiming the dependent has net income exceeding 48 thirteen thousand five hundred dollars or nine thousand 49 dollars as applicable or the person claiming the 50 -1- SF303.3605.H (2) 85 md 1/ 19 #1.

dependent and the person’s spouse have combined net 1 income exceeding thirteen thousand five hundred dollars 2 or nine thousand dollars as applicable. 3 Sec. 2. Section 422.5, subsection 3B, paragraph a, 4 Code 2014, is amended to read as follows: 5 a. The tax shall not be imposed on a resident or 6 nonresident who is at least sixty-five years old on 7 December 31 of the tax year and whose net income, 8 as defined in section 422.7 , is thirty-two thousand 9 dollars or less in the case of married persons 10 filing jointly or filing separately on a combined 11 return, heads of household, and surviving spouses or 12 twenty-four thousand dollars or less in the case of all 13 other persons; but in the event that the payment of 14 tax under this division would reduce the net income to 15 less than thirty-two thousand dollars or twenty-four 16 thousand dollars as applicable, then the tax shall be 17 reduced to that amount which would result in allowing 18 the taxpayer to retain a net income of thirty-two 19 thousand dollars or twenty-four thousand dollars as 20 applicable. The preceding sentence does not apply to 21 estates or trusts. For the purpose of this subsection , 22 the entire net income, including any part of the net 23 income not allocated to Iowa, shall be taken into 24 account. For purposes of this subsection , net income 25 includes all amounts of pensions or other retirement 26 income , except for military retirement pay excluded 27 under section 422.7, subsection 31A, paragraph “a” , 28 or section 422.7, subsection 31B, paragraph “a” , 29 received from any source which is not taxable under 30 this division as a result of the government pension 31 exclusions in section 422.7 , or any other state law. 32 If the combined net income of a husband and wife 33 exceeds thirty-two thousand dollars, neither of them 34 shall receive the benefit of this subsection , and it 35 is immaterial whether they file a joint return or 36 separate returns. However, if a husband and wife file 37 separate returns and have a combined net income of 38 thirty-two thousand dollars or less, neither spouse 39 shall receive the benefit of this paragraph, if one 40 spouse has a net operating loss and elects to carry 41 back or carry forward the loss as provided in section 42 422.9, subsection 3 . A person who is claimed as a 43 dependent by another person as defined in section 44 422.12 shall not receive the benefit of this subsection 45 if the person claiming the dependent has net income 46 exceeding thirty-two thousand dollars or twenty-four 47 thousand dollars as applicable or the person claiming 48 the dependent and the person’s spouse have combined 49 net income exceeding thirty-two thousand dollars or 50 -2- SF303.3605.H (2) 85 md 2/ 19

twenty-four thousand dollars as applicable. 1 Sec. 3. Section 422.7, Code 2014, is amended by 2 adding the following new subsection: 3 NEW SUBSECTION . 31A. a. Subtract, to the extent 4 included, retirement pay received by a taxpayer from 5 the federal government for military service performed 6 in the armed forces, the armed forces military reserve, 7 or national guard. 8 b. The exclusion of retirement pay under this 9 subsection is in addition to any exclusion provided 10 under subsection 31. 11 Sec. 4. Section 422.7, Code 2014, is amended by 12 adding the following new subsection: 13 NEW SUBSECTION . 31B. a. Subtract, to the extent 14 included, amounts received as survivor benefits by a 15 taxpayer from the federal government pursuant to 10 16 U.S.C. §1447, et seq. 17 b. The exclusion of survivor benefits under this 18 subsection is in addition to any exclusion provided 19 under subsection 31. 20 Sec. 5. RETROACTIVE APPLICABILITY. This division 21 of this Act applies retroactively to January 1, 2014, 22 for tax years beginning on or after that date. 23 DIVISION II 24 PROPERTY OF ASSOCIATIONS OF WAR VETERANS 25 Sec. 6. Section 427.1, subsection 5, Code 2014, is 26 amended to read as follows: 27 5. Property of associations of war veterans. 28 a. The property of any organization composed wholly 29 of veterans of any war, when such property is , except 30 as otherwise provided in this subsection or subsection 31 14, devoted entirely to its own use and not held for 32 pecuniary profit. 33 b. The operation of bingo games on property of such 34 organization shall not adversely affect the exemption 35 of that property under this subsection if all proceeds, 36 in excess of expenses, are used for the legitimate 37 purposes of the organization. 38 c. The occasional or irregular lease or rental of 39 all or a portion of the property of such organization 40 shall not adversely affect the exemption of that 41 property under this subsection if the proceeds from 42 such lease or rental do not exceed two hundred fifty 43 dollars per lease or rental, and the proceeds, in 44 excess of expenses, are used for the legitimate 45 purposes of the organization. In addition, the 46 occasional or irregular lease or rental shall be 47 considered a use for the appropriate objects of the 48 organization for purposes of subsection 14. 49 Sec. 7. IMPLEMENTATION OF ACT. Section 25B.7 does 50 -3- SF303.3605.H (2) 85 md 3/ 19

not apply to this division of this Act. 1 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of 2 this Act, being deemed of immediate importance, takes 3 effect upon enactment. 4 Sec. 9. RETROACTIVE APPLICABILITY. This division 5 of this Act applies retroactively to January 1, 2014, 6 for assessment years beginning on or after that date. 7 DIVISION III 8 LICENSE PLATES 9 Sec. 10. Section 35A.11, Code 2014, is amended to 10 read as follows: 11 35A.11 Veterans license fee fund. 12 1. A veterans license fee fund is created in the 13 state treasury under the control of the commission. 14 Notwithstanding section 12C.7 , interest or earnings 15 on moneys in the veterans license fee fund shall be 16 credited to the veterans license fee fund. Moneys in 17 the fund are appropriated to the commission to be used 18 to fulfill the responsibilities of the commission. 19 2. The fund created in this section shall include 20 the fees credited by the treasurer of state from the 21 sale annual validation of the following special motor 22 vehicle registration plates: 23 1. Veteran special plates issued pursuant to 24 section 321.34, subsection 13 , paragraph “d” . 25 2. a. National guard special plates issued 26 pursuant to section 321.34, subsection 16 . 27 3. b. Pearl Harbor special plates issued pursuant 28 to section 321.34, subsection 17 . 29 4. c. Purple heart special plates issued pursuant 30 to section 321.34, subsection 18 . 31 5. d. United States armed forces retired special 32 plates issued pursuant to section 321.34, subsection 33 19 . 34 6. e. Silver star and bronze star special plates 35 issued pursuant to section 321.34, subsection 20 . 36 7. f. Distinguished service cross, navy cross, 37 and air force cross special plates issued pursuant to 38 section 321.34, subsection 20A . 39 8. g. Soldier’s medal, navy and marine corps 40 medal, and airman’s medal special plates issued 41 pursuant to section 321.34, subsection 20B . 42 9. h. Combat infantryman badge, combat action 43 badge, combat action ribbon, air force combat action 44 medal, and combat medical badge plates issued pursuant 45 to section 321.34, subsection 20C . 46 10. i. Gold star special plates issued pursuant to 47 section 321.34, subsection 24 . 48 j. United States veteran special plates issued 49 pursuant to section 321.34, subsection 27. 50 -4- SF303.3605.H (2) 85 md 4/ 19

Sec. 11. Section 321.34, subsection 16, paragraph 1 a, Code 2014, is amended to read as follows: 2 a. An owner referred to in subsection 12 who is a 3 member of the national guard, as defined in chapter 4 29A , may, upon written application to the department, 5 order special registration plates with a national 6 guard processed emblem with the emblem designed by the 7 department in cooperation with the adjutant general 8 which emblem signifies that the applicant is a member 9 of the national guard. The application shall be 10 approved by the department in consultation with the 11 adjutant general. The special plate fees collected 12 by the director under subsection 12 , paragraphs 13 paragraph “a” and “c” , from the issuance and annual 14 validation of letter-number designated national guard 15 plates, and subsection 12, paragraph “c” , from the 16 issuance and annual validation of personalized national 17 guard plates shall be paid monthly to the treasurer 18 of state and deposited in the road use tax fund. The 19 treasurer of state shall transfer monthly from the 20 statutory allocations fund created under section 21 321.145, subsection 2 , to the veterans license fee fund 22 created in section 35A.11 the amount of the special 23 fees collected under subsection 12 , paragraph “a” , in 24 the previous month for national guard plates. Special 25 registration plates with a national guard processed 26 emblem shall be surrendered, as provided in subsection 27 12 , in exchange for regular registration plates upon 28 termination of the owner’s membership in the active 29 national guard. 30 Sec. 12. Section 321.34, subsection 16, Code 2014, 31 is amended by adding the following new paragraph: 32 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 33 paragraph “a” , an owner who is approved for special 34 registration plates under this subsection shall be 35 issued one set of special registration plates with a 36 national guard processed emblem at no charge. 37 Sec. 13. Section 321.34, subsection 17, paragraph 38 a, Code 2014, is amended to read as follows: 39 a. An owner referred to in subsection 12 who was at 40 Pearl Harbor, Hawaii, as a member of the armed services 41 of the United States on December 7, 1941, may, upon 42 written application to the department, order special 43 registration plates with a Pearl Harbor processed 44 emblem. The emblem shall be designed by the department 45 in consultation with service organizations. The 46 application is subject to approval by the department. 47 The special plate fees collected by the director under 48 subsection 12 , paragraphs paragraph “a” and “c” , from 49 the issuance and annual validation of letter-number 50 -5- SF303.3605.H (2) 85 md 5/ 19

designated Pearl Harbor plates, and subsection 12, 1 paragraph “c” , from the issuance and annual validation 2 of personalized Pearl Harbor plates shall be paid 3 monthly to the treasurer of state and deposited in 4 the road use tax fund. The treasurer of state shall 5 transfer monthly from the statutory allocations fund 6 created under section 321.145, subsection 2 , to the 7 veterans license fee fund created in section 35A.11 the 8 amount of the special fees collected under subsection 9 12 , paragraph “a” , in the previous month for Pearl 10 Harbor plates. 11 Sec. 14. Section 321.34, subsection 17, Code 2014, 12 is amended by adding the following new paragraph: 13 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 14 paragraph “a” , an owner who is approved for special 15 registration plates under this subsection shall be 16 issued one set of special registration plates with a 17 Pearl Harbor processed emblem at no charge. 18 Sec. 15. Section 321.34, subsection 18, paragraph 19 a, Code 2014, is amended to read as follows: 20 a. An owner referred to in subsection 12 who was 21 awarded a purple heart medal by the United States 22 government for wounds received in military or naval 23 combat against an armed enemy of the United States 24 may, upon written application to the department and 25 presentation of satisfactory proof of the award of the 26 purple heart medal, order special registration plates 27 with a purple heart processed emblem. The design of 28 the emblem shall include a representation of a purple 29 heart medal and ribbon. The application is subject to 30 approval by the department in consultation with the 31 adjutant general. The special plate fees collected 32 by the director under subsection 12 , paragraphs 33 paragraph “a” and “c” , from the issuance and annual 34 validation of letter-number designated purple heart 35 plates, and subsection 12, paragraph “c” , from the 36 issuance and annual validation of personalized purple 37 heart plates shall be paid monthly to the treasurer 38 of state and deposited in the road use tax fund. The 39 treasurer of state shall transfer monthly from the 40 statutory allocations fund created under section 41 321.145, subsection 2 , to the veterans license fee fund 42 created in section 35A.11 the amount of the special 43 fees collected under subsection 12 , paragraph “a” , in 44 the previous month for purple heart plates. 45 Sec. 16. Section 321.34, subsection 18, Code 2014, 46 is amended by adding the following new paragraph: 47 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 48 paragraph “a” , an owner who is approved for special 49 registration plates under this subsection shall be 50 -6- SF303.3605.H (2) 85 md 6/ 19

issued one set of special registration plates with a 1 purple heart processed emblem at no charge. 2 Sec. 17. Section 321.34, subsection 19, paragraph 3 a, Code 2014, is amended to read as follows: 4 a. An owner referred to in subsection 12 who is a 5 retired member of the United States armed forces may, 6 upon written application to the department and upon 7 presentation of satisfactory proof of membership, order 8 special registration plates with a United States armed 9 forces retired processed emblem. The emblem shall be 10 designed by the department in consultation with service 11 organizations. The application is subject to approval 12 by the department. For purposes of this subsection , 13 a person is considered to be retired if the person is 14 recognized by the United States armed forces as retired 15 from the United States armed forces. The special plate 16 fees collected by the director under subsection 12 , 17 paragraphs paragraph “a” and “c” , from the issuance and 18 annual validation of letter-number designated armed 19 forces retired plates, and subsection 12, paragraph 20 “c” , from the issuance and annual validation of 21 personalized armed forces retired plates shall be paid 22 monthly to the treasurer of state and deposited in 23 the road use tax fund. The treasurer of state shall 24 transfer monthly from the statutory allocations fund 25 created under section 321.145, subsection 2 , to the 26 veterans license fee fund created in section 35A.11 the 27 amount of the special fees collected under subsection 28 12 , paragraph “a” , in the previous month for armed 29 forces retired plates. 30 Sec. 18. Section 321.34, subsection 19, Code 2014, 31 is amended by adding the following new paragraph: 32 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 33 paragraph “a” , an owner who is approved for special 34 registration plates under this subsection shall be 35 issued one set of special registration plates with an 36 armed forces retired processed emblem at no charge. 37 Sec. 19. Section 321.34, subsection 20, paragraph 38 a, Code 2014, is amended to read as follows: 39 a. An owner referred to in subsection 12 who was 40 awarded a silver or a bronze star by the United States 41 government, may, upon written application to the 42 department and presentation of satisfactory proof of 43 the award of the silver or bronze star, order special 44 registration plates with a silver or bronze star 45 processed emblem. The emblem shall be designed by the 46 department in consultation with the adjutant general. 47 The special plate fees collected by the director under 48 subsection 12 , paragraphs paragraph “a” and “c” , from 49 the issuance and annual validation of letter-number 50 -7- SF303.3605.H (2) 85 md 7/ 19

designated silver star and bronze star plates, and 1 subsection 12, paragraph “c” , from the issuance 2 and annual validation of personalized silver star 3 and bronze star plates shall be paid monthly to the 4 treasurer of state and deposited in the road use tax 5 fund. The treasurer of state shall transfer monthly 6 from the statutory allocations fund created under 7 section 321.145, subsection 2 , to the veterans license 8 fee fund created in section 35A.11 the amount of the 9 special fees collected under subsection 12 , paragraph 10 “a” , in the previous month for silver star and bronze 11 star plates. 12 Sec. 20. Section 321.34, subsection 20, Code 2014, 13 is amended by adding the following new paragraph: 14 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 15 paragraph “a” , an owner who is approved for special 16 registration plates under this subsection shall be 17 issued one set of special registration plates with 18 a silver star or bronze star processed emblem at no 19 charge. 20 Sec. 21. Section 321.34, subsection 20A, paragraph 21 a, Code 2014, is amended to read as follows: 22 a. An owner referred to in subsection 12 who was 23 awarded a distinguished service cross, a navy cross, 24 or an air force cross by the United States government 25 may, upon written application to the department and 26 presentation of satisfactory proof of the award, order 27 special registration plates with a distinguished 28 service cross, navy cross, or air force cross processed 29 emblem. The emblem shall be designed by the department 30 in consultation with the adjutant general. The special 31 plate fees collected by the director under subsection 32 12 , paragraphs paragraph “a” and “c” , from the issuance 33 and annual validation of letter-number designated 34 distinguished service cross, navy cross, and air force 35 cross plates, and subsection 12, paragraph “c” , from 36 the issuance and annual validation of personalized 37 distinguished service cross, navy cross, and air force 38 cross plates shall be paid monthly to the treasurer 39 of state and deposited in the road use tax fund. The 40 treasurer of state shall transfer monthly from the 41 statutory allocations fund created under section 42 321.145, subsection 2 , to the veterans license fee fund 43 created in section 35A.11 the amount of the special 44 fees collected under subsection 12 , paragraph “a” , in 45 the previous month for distinguished service cross, 46 navy cross, and air force cross plates. 47 Sec. 22. Section 321.34, subsection 20A, Code 2014, 48 is amended by adding the following new paragraph: 49 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 50 -8- SF303.3605.H (2) 85 md 8/ 19

paragraph “a” , an owner who is approved for special 1 registration plates under this subsection shall be 2 issued one set of special registration plates with a 3 distinguished service cross, navy cross, or air force 4 cross processed emblem at no charge. 5 Sec. 23. Section 321.34, subsection 20B, paragraph 6 a, Code 2014, is amended to read as follows: 7 a. An owner referred to in subsection 12 who was 8 awarded a soldier’s medal, a navy and marine corps 9 medal, or an airman’s medal by the United States 10 government may, upon written application to the 11 department and presentation of satisfactory proof of 12 the award, order special registration plates with 13 a soldier’s medal, navy and marine corps medal, or 14 airman’s medal processed emblem. The emblem shall be 15 designed by the department in consultation with the 16 adjutant general. The special plate fees collected 17 by the director under subsection 12 , paragraphs 18 paragraph “a” and “c” , from the issuance and annual 19 validation of letter-number designated soldier’s medal, 20 navy and marine corps medal, and airman’s medal plates, 21 and subsection 12, paragraph “c” , from the issuance and 22 annual validation of personalized soldier’s medal, navy 23 and marine corps medal, and airman’s medal plates shall 24 be paid monthly to the treasurer of state and deposited 25 in the road use tax fund. The treasurer of state shall 26 transfer monthly from the statutory allocations fund 27 created under section 321.145, subsection 2 , to the 28 veterans license fee fund created in section 35A.11 the 29 amount of the special fees collected under subsection 30 12 , paragraph “a” , in the previous month for soldier’s 31 medal, navy and marine corps medal, and airman’s medal 32 plates. 33 Sec. 24. Section 321.34, subsection 20B, Code 2014, 34 is amended by adding the following new paragraph: 35 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, 36 paragraph “a” , an owner who is approved for special 37 registration plates under this subsection shall be 38 issued one set of special registration plates with 39 a soldier’s medal, navy and marine corps medal, or 40 airman’s medal processed emblem at no charge. 41 Sec. 25. Section 321.34, subsection 20C, paragraph 42 b, Code 2014, is amended to read as follows: 43 b. An owner referred to in subsection 12 who was 44 awarded a combat infantryman badge, combat action 45 badge, combat action ribbon, air force combat action 46 medal, or combat medical badge by the United States 47 government may, upon written application to the 48 department and presentation of satisfactory proof of 49 the award, order special registration plates with a 50 -9- SF303.3605.H (2) 85 md 9/ 19

combat infantryman badge, combat action badge, combat 1 action ribbon, air force combat action medal, or combat 2 medical badge processed emblem. The special plate 3 fees collected by the director under subsection 12 , 4 paragraphs paragraph “a” and “c” , from the issuance and 5 annual validation of letter-number designated combat 6 infantryman badge, combat action badge, combat action 7 ribbon, air force combat action medal, and combat 8 medical badge plates, and subsection 12, paragraph 9 “c” , from the issuance and annual validation of 10 personalized combat infantryman badge, combat action 11 badge, combat action ribbon, air force combat action 12 medal, and combat medical badge plates shall be paid 13 monthly to the treasurer of state and deposited in 14 the road use tax fund. The treasurer of state shall 15 transfer monthly from the statutory allocations fund 16 created under section 321.145, subsection 2 , to the 17 veterans license fee fund created in section 35A.11 the 18 amount of the special fees collected under subsection 19 12 , paragraph “a” , in the previous month for combat 20 infantryman badge, combat action badge, combat action 21 ribbon, air force combat action medal, and combat 22 medical badge plates. 23 Sec. 26. Section 321.34, subsection 20C, Code 2014, 24 is amended by adding the following new paragraph: 25 NEW PARAGRAPH . 0c. Notwithstanding subsection 12, 26 paragraph “a” , an owner who is approved for special 27 registration plates under this subsection shall be 28 issued one set of special registration plates with a 29 combat infantryman badge, combat action badge, combat 30 action ribbon, air force combat action medal, and 31 combat medical badge distinguishing processed emblem 32 at no charge. 33 Sec. 27. Section 321.34, subsection 24, Code 2014, 34 is amended to read as follows: 35 24. Gold star plates. 36 a. An owner referred to in subsection 12 who is 37 the surviving spouse, parent, child, or sibling of 38 a deceased member of the United States armed forces 39 who died while serving on active duty during a time 40 of military conflict or who died as a result of such 41 service may order special registration plates bearing 42 a gold star emblem upon written application to the 43 department accompanied by satisfactory supporting 44 documentation as determined by the department. The 45 gold star emblem shall be designed by the department in 46 cooperation with the commission of veterans affairs. 47 The special plate fees collected by the director under 48 subsection 12 , paragraphs paragraph “a” and “c” , from 49 the issuance and annual validation of letter-number 50 -10- SF303.3605.H (2) 85 md 10/ 19

designated gold star plates, and subsection 12, 1 paragraph “c” , from the issuance and annual validation 2 of personalized gold star plates shall be paid monthly 3 to the treasurer of state and deposited in the road 4 use tax fund. The treasurer of state shall transfer 5 monthly from the statutory allocations fund created 6 under section 321.145, subsection 2 , to the veterans 7 license fee fund created in section 35A.11 the amount 8 of the special fees collected under subsection 12 , 9 paragraph “a” , in the previous month for gold star 10 plates. 11 b. Notwithstanding subsection 12, paragraph “a” , 12 an owner who is approved for special registration 13 plates under this subsection shall be issued one set of 14 special registration plates bearing a gold star emblem 15 at no charge. 16 Sec. 28. Section 321.34, Code 2014, is amended by 17 adding the following new subsection: 18 NEW SUBSECTION . 27. United States veteran plates. 19 a. An owner referred to in subsection 12 who served 20 in the armed forces of the United States and was 21 discharged under honorable conditions may, upon written 22 application to the department and upon presentation of 23 satisfactory proof of military service and discharge 24 under honorable conditions, order special registration 25 plates bearing a distinguishing processed emblem 26 depicting the word “veteran” below an image of the 27 American flag. The application is subject to approval 28 by the department. The special plate fees collected 29 by the director under subsection 12, paragraph “a” , 30 from the annual validation of letter-number designated 31 United States veteran plates, and subsection 12, 32 paragraph “c” , from the issuance and annual validation 33 of personalized United States veteran plates, shall be 34 paid monthly to the treasurer of state and deposited in 35 the road use tax fund. The treasurer of state shall 36 transfer monthly from the statutory allocations fund 37 created under section 321.145, subsection 2, to the 38 veterans license fee fund created in section 35A.11 the 39 amount of the special fees collected under subsection 40 12, paragraph “a” , in the previous month for United 41 States veteran plates. 42 b. Notwithstanding subsection 12, paragraph “a” , 43 an owner who is approved for a special registration 44 plate under this subsection shall be issued one set of 45 special registration plates bearing a distinguishing 46 processed emblem depicting the word “veteran” below an 47 image of the American flag at no charge. 48 DIVISION IV 49 VETERANS PREFERENCE 50 -11- SF303.3605.H (2) 85 md 11/ 19

Sec. 29. NEW SECTION . 35.3 Veterans preference in 1 private employment permitted. 2 1. A private employer may grant preference in 3 hiring and promotion to an individual who is a veteran. 4 2. a. A private employer may grant preference in 5 hiring and promotion to the spouse of a veteran who has 6 sustained a permanent, compensable service-connected 7 disability as adjudicated by the United States veterans 8 administration or by the retirement board of one of the 9 armed forces of the United States. 10 b. A private employer may grant preference in 11 hiring and promotion to the surviving spouse of a 12 deceased member of the United States armed forces 13 who died while serving on active duty during a time 14 of military conflict or who died as a result of such 15 service. 16 3. Granting a hiring or promotion preference under 17 this section does not violate any state law or local 18 ordinance regarding equal employment opportunity, 19 including but not limited to chapter 216. 20 4. The hiring and promotion preferences allowable 21 under this section shall only be granted if consistent 22 with applicable federal laws and regulations. 23 DIVISION V 24 POSTSECONDARY EDUCATION REPORTING 25 Sec. 30. Section 260C.14, Code 2014, is amended by 26 adding the following new subsection: 27 NEW SUBSECTION . 24. a. Beginning December 15, 28 2015, annually file a report with the governor and the 29 general assembly providing information and statistics 30 for the previous five academic years on the number 31 of students who are veterans per year who received 32 education credit for military education, training, and 33 service, that number as a percentage of veterans known 34 to be enrolled at the college, the average number of 35 credits received by students, and the average number 36 of credits applied towards the award of a certificate, 37 competency-based credential, postsecondary diploma, or 38 associate degree. 39 b. For purposes of this subsection, “veteran” means 40 a veteran as defined in section 35.1. 41 Sec. 31. Section 262.9, Code 2014, is amended by 42 adding the following new subsection: 43 NEW SUBSECTION . 38. a. Beginning December 15, 44 2015, annually file a report with the governor and the 45 general assembly providing information and statistics 46 for the previous five academic years on the number 47 of students who are veterans per year who received 48 education credit for military education, training, and 49 service, that number as a percentage of veterans known 50 -12- SF303.3605.H (2) 85 md 12/ 19

to be enrolled at the institution, the average number 1 of credits received by students, and the average number 2 of credits applied towards the award or completion of a 3 course of instruction, postsecondary diploma, degree, 4 or other evidences of distinction. 5 b. For purposes of this subsection, “veteran” means 6 a veteran as defined in section 35.1. 7 DIVISION VI 8 LICENSED PROFESSIONS AND OCCUPATIONS 9 Sec. 32. Section 272C.4, Code 2014, is amended by 10 adding the following new subsections: 11 NEW SUBSECTION . 11. Adopt rules by January 1, 12 2015, to provide credit towards qualifications for 13 licensure to practice an occupation or profession 14 in this state for education, training, and service 15 obtained or completed by an individual while serving 16 honorably on federal active duty, state active duty, 17 or national guard duty, as defined in section 29A.1, 18 to the extent consistent with the qualifications 19 required by the appropriate licensing board. The 20 rules shall also provide credit towards qualifications 21 for initial licensure for education, training, or 22 service obtained or completed by an individual while 23 serving honorably in the military forces of another 24 state or the organized reserves of the armed forces of 25 the United States, to the extent consistent with the 26 qualifications required by the appropriate licensing 27 board. 28 NEW SUBSECTION . 12. a. Establish procedures 29 by January 1, 2015, to expedite the licensing of an 30 individual who is licensed in a similar profession or 31 occupation in another state and who is a veteran, as 32 defined in section 35.1, or the spouse of a veteran. 33 b. If the board determines that the professional 34 or occupational licensing requirements of the state 35 where the veteran or veteran’s spouse is licensed are 36 substantially equivalent to the licensing requirements 37 of this state, the procedures shall require the 38 licensing of the veteran or the veteran’s spouse in 39 this state. 40 c. If the board determines that the professional 41 or occupational licensing requirements of the state 42 where the veteran or veteran’s spouse is licensed are 43 not substantially equivalent to the professional or 44 occupational licensing requirements of this state, the 45 procedures shall allow the provisional licensing of 46 the veteran or veteran’s spouse for a period of time 47 deemed necessary by the board to obtain a substantial 48 equivalent to the licensing requirements of this state. 49 The board shall advise the veteran or the veteran’s 50 -13- SF303.3605.H (2) 85 md 13/ 19

spouse of required education or training necessary to 1 obtain a substantial equivalent to the professional 2 or occupational licensing requirements of this state, 3 and the procedures shall provide for licensing of 4 an individual who has, pursuant to this paragraph, 5 obtained a substantial equivalent to the professional 6 or occupational licensing requirements of this state. 7 NEW SUBSECTION . 13. Beginning December 15, 2016, 8 annually file a report with the governor and the 9 general assembly providing information and statistics 10 on credit received by individuals for education, 11 training, and service pursuant to subsection 11 and 12 information and statistics on licenses and provisional 13 licenses issued pursuant to subsection 12. 14 NEW SUBSECTION . 14. Notwithstanding the 15 designation of the licensing boards in section 272C.1, 16 the provisions of subsections 11 through 13 shall apply 17 to all of the occupational and professional licensing 18 boards of this state. 19 Sec. 33. REPORT. Each occupational and 20 professional licensing board of this state shall file 21 a report with the governor and the general assembly 22 by January 31, 2015, on the substance of rules and 23 procedures adopted to implement the provisions of this 24 division of this Act. 25 DIVISION VII 26 COUNTY COMMISSIONS 27 Sec. 34. Section 35B.4, Code 2014, is amended to 28 read as follows: 29 35B.4 Appointment —— vacancies. 30 1. Members of the commission of veteran affairs 31 shall be appointed by the board of supervisors , in 32 consultation with the current commission members and 33 the executive director or administrator, to staggered 34 three-year terms at the regular meeting in June. 35 However, a member shall serve until a successor has 36 been appointed and qualifies. The board may remove 37 an appointee at any time for neglect of duty or 38 maladministration. A vacancy on the commission shall 39 be filled for the unexpired portion of the regular term 40 in the same manner as regular appointments are made. 41 2. If the board of supervisors increases the 42 commission of veteran affairs membership to five 43 members, the initial terms of the two new members 44 shall be two and three years respectively. However, 45 the new members shall serve until their successors are 46 appointed and qualify. 47 Sec. 35. Section 35B.6, subsection 1, paragraphs a 48 and c, Code 2014, are amended to read as follows: 49 a. The members of the commission shall qualify by 50 -14- SF303.3605.H (2) 85 md 14/ 19