Senate File 510 H-1370 Amend the amendment, H-1365, to Senate File 510, 1 as amended, passed, and reprinted by the Senate, as 2 follows: 3 1. Page 4, line 13, after < dues. > by inserting 4 < This subsection shall not apply to institutions of 5 higher learning under the control of the state board of 6 regents or to the state board of regents. > 7 2. Page 4, after line 26 by inserting: 8 < Sec. ___. Section 8.55, subsection 2, paragraph a, 9 Code 2015, is amended to read as follows: 10 a. The first sixty ninety million dollars of the 11 difference between the actual net revenue for the 12 general fund of the state for the fiscal year and the 13 adjusted revenue estimate for the fiscal year shall be 14 transferred to the taxpayers trust fund. 15 Sec. ___. Section 8A.311, Code 2015, is amended by 16 adding the following new subsection: 17 NEW SUBSECTION . 23. Notwithstanding sections 18 904.807 and 904.808, the director of the department of 19 administrative services shall furnish state parks with 20 equipment deemed necessary by the department of natural 21 resources and the director of the department of natural 22 resources under a competitive bid process as described 23 in this chapter. > 24 3. Page 5, after line 30 by inserting: 25 < Sec. ___. Section 256.7, subsection 32, paragraph 26 c, Code 2015, is amended to read as follows: 27 c. Adopt rules that limit the statewide enrollment 28 of pupils in educational instruction and course content 29 that are delivered primarily over the internet to 30 not more than eighteen one-hundredths of one percent 31 of the statewide enrollment of all pupils, and that 32 limit the number of pupils participating in open 33 enrollment for purposes of receiving educational 34 instruction and course content that are delivered 35 primarily over the internet to no more than one percent 36 of a sending district’s enrollment. Until June 30, 37 2015, students Such limitations shall not apply if 38 the limitations would prevent siblings from enrolling 39 in the same school district or if a sending district 40 determines that the educational needs of a physically 41 or emotionally fragile student would be best served 42 by educational instruction and course content that 43 are delivered primarily over the internet. Students 44 who meet the requirements of section 282.18 may 45 participate in open enrollment under this paragraph “c” 46 for purposes of enrolling only in the CAM community 47 school district or the Clayton Ridge community school 48 district. 49 (01) The department, in collaboration with the 50 -1- H1365.2104 (1) 86 tm/rn 1/ 52 #1. #2. #3.
international association for K-12 online learning, 1 shall annually collect data on student performance in 2 educational instruction and course content that are 3 delivered primarily over the internet pursuant to this 4 paragraph “c” . The department shall include such data 5 in its annual report to the general assembly pursuant 6 to subparagraph (3) and shall post the data on the 7 department’s internet site. 8 (1) School districts providing educational 9 instruction and course content that are delivered 10 primarily over the internet pursuant to this paragraph 11 “c” shall annually submit to the department, in the 12 manner prescribed by the department, data that includes 13 but is not limited to student the following: 14 (a) Student achievement and demographic 15 characteristics , retention . 16 (b) Retention rates , and the . 17 (c) The percentage of enrolled students’ active 18 participation in extracurricular activities. 19 (d) Academic proficiency levels, consistent with 20 requirements applicable to all school districts and 21 accredited nonpublic schools in this state. 22 (e) Academic growth measures, which shall include 23 either of the following: 24 (i) Entry and exit assessments in, at a minimum, 25 math and English for elementary and middle school 26 students, and additional subjects, including science, 27 for high school students. 28 (ii) State-required assessments that track 29 year-over-year improvements in academic proficiency. 30 (f) Academic mobility. To facilitate the tracking 31 of academic mobility, school districts shall request 32 the following information from the parent or guardian 33 of a student enrolled in educational instruction and 34 course content that are delivered primarily over the 35 internet pursuant to this paragraph “c” : 36 (i) For a student newly enrolling, the reasons for 37 choosing such enrollment. 38 (ii) For a student terminating enrollment, the 39 reasons for terminating such enrollment. 40 (g) Student progress toward graduation. 41 Measurement of such progress shall account for specific 42 characteristics of each enrolled student, including 43 but not limited to age and course credit accrued prior 44 to enrollment in educational instruction and course 45 content that are delivered primarily over the internet 46 pursuant to this paragraph “c” , and shall be consistent 47 with evidence-based best practices. 48 (2) The department shall conduct annually a survey 49 of not less than ten percent of the total number of 50 -2- H1365.2104 (1) 86 tm/rn 2/ 52
students enrolled as authorized under this paragraph 1 “c” and section 282.18 , and not less than one hundred 2 percent of the students in those districts who are 3 enrolled as authorized under this paragraph “c” and 4 section 282.18 and who are eligible for free or reduced 5 price meals under the federal National School Lunch 6 Act and the federal Child Nutrition Act of 1966 , 42 7 U.S.C. §§1751-1785 , to determine whether students are 8 enrolled under this paragraph “c” and section 282.18 9 to receive educational instruction and course content 10 primarily over the internet or are students who are 11 receiving competent private instruction from a licensed 12 practitioner provided through a school district 13 pursuant to chapter 299A . 14 (3) The department shall compile and review the 15 data collected pursuant to this paragraph “c” and 16 shall submit its findings and recommendations for the 17 continued delivery of instruction and course content by 18 school districts pursuant to this paragraph “c” , in a 19 report to the general assembly by January 15 annually. 20 (4) This paragraph “c” is repealed July 1, 2015. 21 School districts providing educational instruction 22 and course content that are delivered primarily over 23 the internet pursuant to this paragraph “c” shall 24 comply with the following requirements relating to such 25 instruction and content: 26 (a) Monitoring and verifying full-time student 27 enrollment, timely completion of graduation 28 requirements, course credit accrual, and course 29 completion. 30 (b) Monitoring and verifying student progress and 31 performance in each course through a school-based 32 assessment plan that includes submission of coursework 33 and security and validity of testing. 34 (c) Conducting parent-teacher conferences. 35 (d) Administering assessments required by the state 36 to all students in a proctored setting and pursuant to 37 state law. 38 Sec. ___. NEW SECTION . 274.3 Exercise of powers 39 —— construction. 40 1. The board of directors of a school district 41 shall operate, control, and supervise all public 42 schools located within its district boundaries and may 43 exercise any broad and implied power, not inconsistent 44 with the laws of the general assembly, related to the 45 operation, control, and supervision of those public 46 schools. 47 2. Notwithstanding subsection 1, the board of 48 directors of a school district shall not have power to 49 levy any tax unless expressly authorized by the general 50 -3- H1365.2104 (1) 86 tm/rn 3/ 52
assembly. 1 3. This chapter, chapter 257 and chapters 275 2 through 301, and other statutes relating to the 3 boards of directors of school districts and to school 4 districts shall be liberally construed to effectuate 5 the purposes of subsection 1. 6 Sec. ___. Section 279.50, subsections 3 and 5, Code 7 2015, are amended to read as follows: 8 3. Each school board shall annually provide to 9 a parent or guardian of any pupil enrolled in the 10 school district, information about the human growth and 11 development curriculum used in the pupil’s grade level , 12 as well as information on human growth and development 13 that is provided to the pupil at any educational 14 conference or seminar for which the school district 15 facilitates pupil participation, and the procedure for 16 inspecting the instructional materials prior to their 17 use in the classroom or at the educational conference 18 or seminar . 19 5. A Except with the written consent of a pupil’s 20 parent or guardian, which shall be filed with the 21 appropriate school principal, a pupil shall not neither 22 be required to take enrolled in a course of instruction 23 in human growth and development if the pupil’s parent 24 or guardian files with the appropriate principal a 25 written request that the pupil be excused from the 26 instruction nor attend an educational conference or 27 seminar for which the school district facilitates pupil 28 participation if the educational conference or seminar 29 includes information on human growth and development . 30 Notification that the written request may be made 31 consent is required prior to a pupil’s enrollment or 32 attendance as provided in this subsection shall be 33 included in the information provided by the school 34 district under subsection 3 . 35 Sec. ___. Section 284.13, subsection 1, paragraph 36 e, subparagraph (2), subparagraph division (a), Code 37 2015, is amended to read as follows: 38 (a) For the initial school year for which a 39 school district receives department approval for 40 and implements a framework or comparable system in 41 accordance with section 284.15 , teacher leadership 42 supplement foundation aid payable to that school 43 district shall be paid from the allocation made in 44 subparagraph (1) for that school year. For that school 45 year beginning July 1, 2014 , the teacher leadership 46 supplement foundation aid payable to the school 47 district is the product of the teacher leadership 48 district cost per pupil for the school year multiplied 49 by the school district’s budget enrollment. For that 50 -4- H1365.2104 (1) 86 tm/rn 4/ 52
school year beginning July 1, 2015, or beginning July 1 1, 2016, the teacher leadership supplement foundation 2 aid payable to the school district is the product 3 of three hundred eight dollars and eighty-two cents 4 multiplied by the school district’s budget enrollment. 5 The board of directors of the district of residence 6 shall pay to the receiving district any moneys received 7 for a pupil under subparagraph (1) if the pupil is 8 participating in open enrollment under section 282.18 9 and both the district of residence and the receiving 10 district are receiving an allocation under subparagraph 11 (1). 12 Sec. ___. Section 730.5, subsection 9, paragraph e, 13 Code 2015, is amended to read as follows: 14 e. If the written policy provides for alcohol 15 testing, the employer shall establish in the written 16 policy a standard for alcohol concentration which shall 17 be deemed to violate the policy. The standard for 18 alcohol concentration shall not be less than .04 .02 , 19 expressed in terms of grams of alcohol per two hundred 20 ten liters of breath, or its equivalent. > 21 4. Page 12, by striking lines 11 through 34. 22 5. Page 28, after line 22 by inserting: 23 < Sec. ___. Section 459A.206, subsection 1, Code 24 2015, as amended by 2015 Iowa Acts, House File 583, 25 section 25, is amended to read as follows: 26 1. A settled open feedlot effluent basin or an 27 unformed animal truck wash effluent structure required 28 to be constructed pursuant to a construction permit 29 issued pursuant to section 459A.205 shall meet design 30 standards as required by a soils and hydrogeologic 31 report. 32 Sec. ___. Section 459A.206, subsection 2, paragraph 33 c, Code 2015, is amended to read as follows: 34 c. The results of at least three soil corings 35 reflecting the continuous soil profile taken for 36 each settled open feed lot effluent basin or unformed 37 animal truck wash effluent structure . The soil corings 38 shall be taken and used in determining subsurface soil 39 characteristics and groundwater elevation and direction 40 of flow of the proposed site for construction. The 41 soil corings shall be taken as follows: 42 (1) By a qualified person ordinarily engaged in the 43 practice of taking soil cores and in performing soil 44 testing. 45 (2) At locations that reflect the continuous 46 soil profile conditions existing within the area of 47 the proposed basin or unformed structure , including 48 conditions found near the corners and the deepest point 49 of the proposed basin. The soil corings shall be 50 -5- H1365.2104 (1) 86 tm/rn 5/ 52 #4. #5.
taken to a minimum depth of ten feet below the bottom 1 elevation of the basin. 2 (3) By a method such as hollow stem auger or other 3 method that identifies the continuous soil profile and 4 does not result in the mixing of soil layers. 5 Sec. ___. Section 459A.207, subsection 1, paragraph 6 a, Code 2015, is amended to read as follows: 7 a. The basin or structure was constructed in 8 accordance with the design plans submitted to the 9 department as part of an application for a construction 10 permit pursuant to section 459A.205 . If the actual 11 construction deviates from the approved design plans, 12 the construction certification shall identify all 13 changes and certify that the changes were consistent 14 with all applicable standards of this section . 15 Sec. ___. Section 459A.302, unnumbered paragraph 16 1, Code 2015, as amended by 2015 Iowa Acts, House File 17 583, section 32, is amended to read as follows: 18 A settled open feedlot effluent basin or an unformed 19 animal truck wash effluent structure required to be 20 constructed pursuant to a construction permit issued 21 pursuant to section 459A.205 shall meet all of the 22 following requirements: 23 Sec. ___. Section 459A.302, subsection 1, paragraph 24 a, unnumbered paragraph 1, Code 2015, as amended by 25 2015 Iowa Acts, House File 583, section 33, is amended 26 to read as follows: 27 Prior to constructing a settled open feedlot 28 effluent basin or an unformed animal truck wash 29 effluent structure, the site for the basin shall be 30 investigated for a drainage tile line by the owner 31 of the open feedlot operation or animal truck wash 32 facility. The investigation shall be made by digging 33 a core trench to a depth of at least six feet deep from 34 ground level at the projected center of the berm of the 35 basin or unformed structure. If a drainage tile line 36 is discovered, one of the following solutions shall be 37 implemented: 38 Sec. ___. Section 459A.302, subsection 1, paragraph 39 a, subparagraphs (1) and (2), Code 2015, are amended 40 to read as follows: 41 (1) The drainage tile line shall be rerouted 42 around the perimeter of the basin or unformed animal 43 truck wash effluent structure at a distance of at 44 least twenty-five feet horizontally separated from 45 the outside edge of the berm of the basin or unformed 46 structure . For an area of the basin or unformed 47 structure where there is not a berm, the drainage tile 48 line shall be rerouted at least fifty feet horizontally 49 separated from the edge of the basin or unformed 50 -6- H1365.2104 (1) 86 tm/rn 6/ 52
structure . 1 (2) The drainage tile line shall be replaced with a 2 nonperforated tile line under the basin floor of the 3 basin or unformed animal truck wash effluent structure . 4 The nonperforated tile line shall be continuous and 5 without connecting joints. There must be a minimum of 6 three feet between the nonperforated tile line and the 7 basin floor of the basin or unformed structure . 8 Sec. ___. Section 459A.302, subsections 2, 3, 4, 9 and 5 Code 2015, as amended by 2015 Iowa Acts, House 10 File 583, section 34, is amended to read as follows: 11 2. a. The settled open feedlot effluent basin or 12 an unformed animal truck wash effluent structure shall 13 be constructed with a minimum separation of two feet 14 between the top of the liner of the basin or unformed 15 structure and the seasonal high-water table. 16 b. If a drainage tile line around the perimeter of 17 the settled open feedlot effluent basin or unformed 18 animal truck wash effluent structure is installed 19 a minimum of two feet below the top of the basin’s 20 or unformed structure’s liner to artificially lower 21 the seasonal high-water table, the top of the liner 22 may be a maximum of four feet below the seasonal 23 high-water table. The seasonal high-water table may 24 be artificially lowered by gravity flow tile lines or 25 other similar system. However, the following shall 26 apply: 27 (1) Except as provided in subparagraph (2), an 28 open feedlot operation or animal truck wash facility 29 shall not use a nongravity mechanical system that uses 30 pumping equipment. 31 (2) If the open feedlot operation was constructed 32 before July 1, 2005, the operation may continue to use 33 its existing nongravity mechanical system that uses 34 pumping equipment or it may construct a new nongravity 35 mechanical system that uses pumping equipment. 36 However, an open feedlot operation that expands the 37 area of its open feedlot on or after April 1, 2011, 38 shall not use a nongravity mechanical system that uses 39 pumping equipment. 40 3. Drainage tile lines may be installed to 41 artificially lower the seasonal high-water table at 42 a settled open feedlot effluent basin or an unformed 43 animal truck wash effluent structure, if all of the 44 following conditions are satisfied: 45 a. A device to allow monitoring of the water in the 46 drainage tile lines and a device to allow shutoff of 47 the flow in the drainage tile lines are installed, if 48 the drainage tile lines do not have a surface outlet 49 accessible on the property where the basin or unformed 50 -7- H1365.2104 (1) 86 tm/rn 7/ 52
structure is located. 1 b. Drainage tile lines are installed horizontally 2 at least twenty-five feet away from the basin or 3 unformed structure. Drainage tile lines shall be 4 placed in a vertical trench and encased in granular 5 material which extends upward to the level of the 6 seasonal high-water table. 7 4. A settled open feedlot effluent basin or an 8 unformed animal truck wash effluent structure shall 9 be constructed with at least four feet between the 10 bottom of the basin or unformed structure and a bedrock 11 formation. 12 5. A settled open feedlot effluent basin or 13 an unformed animal truck wash effluent structure 14 constructed on a floodplain or within a floodway of a 15 river or stream shall comply with rules adopted by the 16 commission. 17 Sec. ___. Section 459A.302, subsection 6, 18 unnumbered paragraph 1, Code 2015, as amended by 2015 19 Iowa Acts, House File 583, section 35, is amended to 20 read as follows: 21 The liner of a settled open feedlot effluent basin 22 or unformed animal truck wash effluent structure shall 23 comply with all of the following: 24 Sec. ___. Section 459A.302, subsection 7, Code 25 2015, as amended by 2015 Iowa Acts, House File 583, 26 section 36, is amended to read as follows: 27 7. The owner of an open feedlot operation using 28 a settled open feedlot effluent basin or animal truck 29 wash facility using an unformed animal truck wash 30 effluent structure shall inspect the berms of the 31 basin or unformed structure at least semiannually for 32 evidence of erosion. If the inspection reveals erosion 33 which may impact the basin’s or unformed structure’s 34 structural stability or the integrity of the basin’s 35 or unformed structure’s liner, the owner shall repair 36 the berms. > 37 6. Page 29, by striking line 18 and inserting: 38 < 1. SECRETARY OF STATE > 39 7. Page 30, by striking lines 34 and 35 and 40 inserting: 41 < For the provision of the purchase of compatible 42 radio > 43 8. Page 30, by striking lines 38 and 39 and 44 inserting < narrowband mandate deadline: > 45 9. Page 31, by striking lines 17 and 18 and 46 inserting < $626,000 for the provision of the purchase 47 of compatible radio > 48 10. Page 31, by striking lines 21 and 22 and 49 inserting < narrowband mandate deadline. > 50 -8- H1365.2104 (1) 86 tm/rn 8/ 52 #6. #7. #8. #9.
11. Page 31, after line 31 by inserting: 1 < DIVISION ___ 2 FIREARMS 3 Sec. ___. Section 724.1, subsection 1, paragraph h, 4 Code 2015, is amended by striking the paragraph. 5 Sec. ___. NEW SECTION . 724.1A Firearm suppressors 6 —— certification. 7 1. As used in this section, unless the context 8 otherwise requires: 9 a. “Certification” means the participation and 10 assent of the chief law enforcement officer of the 11 jurisdiction where the applicant resides or maintains 12 an address of record, that is necessary under federal 13 law for the approval of an application to make or 14 transfer a firearm suppressor. 15 b. “Chief law enforcement officer” means the county 16 sheriff, chief of police, or the designee of such 17 official, that the federal bureau of alcohol, tobacco, 18 firearms and explosives, or any successor agency, has 19 identified by regulation or has determined is otherwise 20 eligible to provide any required certification for 21 making or transferring a firearm suppressor. 22 c. “Firearm suppressor” means a mechanical device 23 specifically constructed and designed so that when 24 attached to a firearm silences, muffles, or suppresses 25 the sound when fired that is considered a “firearm 26 silencer” or “firearm muffler” as defined in 18 U.S.C. 27 §921. 28 2. a. A chief law enforcement officer is not 29 required to make any certification under this section 30 the chief law enforcement officer knows to be false, 31 but the chief law enforcement officer shall not 32 refuse, based on a generalized objection, to issue a 33 certification to make or transfer a firearm suppressor. 34 b. When the certification of the chief law 35 enforcement officer is required by federal law or 36 regulation for making or transferring a firearm 37 suppressor, the chief law enforcement officer 38 shall, within thirty days of receipt of a request 39 for certification, issue such certification if the 40 applicant is not prohibited by law from making or 41 transferring a firearm suppressor or is not the subject 42 of a proceeding that could result in the applicant 43 being prohibited by law from making or transferring 44 the firearm suppressor. If the chief law enforcement 45 officer does not issue a certification as required by 46 this section, the chief law enforcement officer shall 47 provide the applicant with a written notification of 48 the denial and the reason for the denial. 49 c. A certification that has been approved under 50 -9- H1365.2104 (1) 86 tm/rn 9/ 52 #11.
this section grants the person the authority to make 1 or transfer a firearm suppressor as provided by state 2 and federal law. 3 3. An applicant whose request for certification 4 is denied may appeal the decision of the chief law 5 enforcement officer to the district court for the 6 county in which the applicant resides or maintains 7 an address of record. The court shall review the 8 decision of the chief law enforcement officer to deny 9 the certification de novo. If the court finds that 10 the applicant is not prohibited by law from making 11 or transferring the firearm suppressor, or is not the 12 subject of a proceeding that could result in such 13 prohibition, or that no substantial evidence supports 14 the decision of the chief law enforcement officer, the 15 court shall order the chief law enforcement officer 16 to issue the certification and award court costs and 17 reasonable attorney fees to the applicant. If the 18 court determines the applicant is not eligible to be 19 issued a certification, the court shall award court 20 costs and reasonable attorney fees to the political 21 subdivision of the state representing the chief law 22 enforcement officer. 23 4. In making a determination about whether to 24 issue a certification under subsection 2, a chief law 25 enforcement officer may conduct a criminal background 26 check, including an inquiry of the national instant 27 criminal background check system maintained by the 28 federal bureau of investigation or any successor 29 agency, but shall only require the applicant provide 30 as much information as is necessary to identify 31 the applicant for this purpose or to determine the 32 disposition of an arrest or proceeding relevant to the 33 eligibility of the applicant to lawfully possess or 34 receive a firearm suppressor. A chief law enforcement 35 officer shall not require access to or consent 36 to inspect any private premises as a condition of 37 providing a certification under this section. 38 5. A chief law enforcement officer and employees 39 of the chief law enforcement officer who act in good 40 faith are immune from liability arising from any act or 41 omission in making a certification as required by this 42 section. 43 Sec. ___. NEW SECTION . 724.1B Firearm suppressors 44 —— penalty. 45 1. A person shall not possess a firearm suppressor 46 in this state if such possession is knowingly in 47 violation of federal law. 48 2. A person who possesses a firearm suppressor in 49 violation of subsection 1 commits a class “D” felony. 50 -10- H1365.2104 (1) 86 tm/rn 10/ 52
Sec. ___. Section 724.4, subsection 4, paragraph i, 1 Code 2015, is amended to read as follows: 2 i. (1) A person who has in the person’s immediate 3 possession and who displays to a peace officer on 4 demand a valid permit to carry weapons which has been 5 issued to the person, and whose conduct is within the 6 limits of that permit. A peace officer shall verify 7 through electronic means, if possible, the validity of 8 the person’s permit to carry weapons. 9 (2) A person commits a simple misdemeanor 10 punishable as a scheduled violation pursuant to section 11 805.8C, subsection 11, if the person does not have in 12 the person’s immediate possession a valid permit to 13 carry weapons which has been issued to the person. 14 (3) A Except as provided subparagraph (2), a 15 person shall not be convicted of a violation of this 16 section if the person produces at the person’s trial a 17 permit to carry weapons which was valid at the time of 18 the alleged offense and which would have brought the 19 person’s conduct within this exception if the permit 20 had been produced at the time of the alleged offense. 21 Sec. ___. Section 724.4B, subsection 2, paragraph 22 a, Code 2015, is amended to read as follows: 23 a. A person listed under section 724.4, subsection 24 4 , paragraphs “b” through “f” or “j” , or a certified 25 peace officer as specified in section 724.6, subsection 26 1 . 27 Sec. ___. Section 724.5, Code 2015, is amended to 28 read as follows: 29 724.5 Duty to carry or verify permit to carry 30 weapons. 31 1. A person armed with a revolver, pistol, or 32 pocket billy concealed upon the person shall have in 33 the person’s immediate possession the permit provided 34 for in section 724.4, subsection 4 , paragraph “i” , and 35 shall produce the permit for inspection at the request 36 of a peace officer. 37 2. A peace officer shall verify through electronic 38 means, if possible, the validity of the person’s permit 39 to carry weapons. 40 3. Failure to so produce a permit is a simple 41 misdemeanor , punishable as a scheduled violation 42 pursuant to section 805.8C, subsection 12 . 43 Sec. ___. Section 724.6, subsection 1, Code 2015, 44 is amended to read as follows: 45 1. A person may be issued a permit to carry weapons 46 when the person’s employment in a private investigation 47 business or private security business licensed under 48 chapter 80A , or a person’s employment as a peace 49 officer, correctional officer, security guard, bank 50 -11- H1365.2104 (1) 86 tm/rn 11/ 52
messenger or other person transporting property of a 1 value requiring security, or in police work, reasonably 2 justifies that person going armed. The permit shall be 3 on a form prescribed and published by the commissioner 4 of public safety, shall identify the holder, and 5 shall state the nature of the employment requiring the 6 holder to go armed. A permit so issued, other than to 7 a peace officer, shall authorize the person to whom 8 it is issued to go armed anywhere in the state, only 9 while engaged in the employment, and while going to and 10 from the place of the employment. A permit issued to 11 a certified peace officer shall authorize that peace 12 officer to go armed anywhere in the state , including 13 a school as provided in section 724.4B, at all times. 14 Permits shall expire twelve months after the date when 15 issued except that permits issued to peace officers and 16 correctional officers are valid through the officer’s 17 period of employment unless otherwise canceled. When 18 the employment is terminated, the holder of the 19 permit shall surrender it to the issuing officer for 20 cancellation. 21 Sec. ___. Section 724.7, subsection 1, Code 2015, 22 is amended to read as follows: 23 1. Any person who is not disqualified under 24 section 724.8 , who satisfies the training requirements 25 of section 724.9 , if applicable, and who files an 26 application in accordance with section 724.10 shall be 27 issued a nonprofessional permit to carry weapons. Such 28 permits shall be on a form prescribed and published 29 by the commissioner of public safety, which shall be 30 readily distinguishable from the professional permit, 31 and shall identify the holder of the permit. Such 32 permits shall not be issued for a particular weapon 33 and shall not contain information about a particular 34 weapon including the make, model, or serial number of 35 the weapon or any ammunition used in that weapon. All 36 permits so issued shall be for a period of five years 37 and shall be valid throughout the state except where 38 the possession or carrying of a firearm is prohibited 39 by state or federal law. 40 Sec. ___. Section 724.9, Code 2015, is amended by 41 adding the following new subsection: 42 NEW SUBSECTION . 1A. The handgun safety training 43 course required in subsection 1 may be conducted 44 over the internet in a live or web-based format, if 45 completion of the course is verified by the instructor 46 or provider of the course. 47 Sec. ___. Section 724.11, subsections 1 and 3, Code 48 2015, are amended to read as follows: 49 1. a. Applications for permits to carry weapons 50 -12- H1365.2104 (1) 86 tm/rn 12/ 52
shall be made to the sheriff of the county in which 1 the applicant resides. Applications for professional 2 permits to carry weapons for persons who are 3 nonresidents of the state, or whose need to go armed 4 arises out of employment by the state, shall be made 5 to the commissioner of public safety. In either case, 6 the sheriff or commissioner, before issuing the permit, 7 shall determine that the requirements of sections 724.6 8 to 724.10 have been satisfied. However, for renewal of 9 a permit the training program requirements in section 10 724.9, subsection 1, do not apply to an applicant 11 who is able to demonstrate completion of small arms 12 training as specified in section 724.9, subsection 1, 13 paragraph “d” . For all other applicants the training 14 program requirements of section 724.9, subsection 1, 15 must be satisfied within the twenty-four-month period 16 prior to the date of the application for the issuance 17 of a permit. 18 b. (1) Prior to issuing a renewal, the sheriff 19 or commissioner shall determine the requirements of 20 sections 724.6, 724.7, 724.8, and 724.10 and either of 21 the following, as applicable, have been satisfied: 22 (a) Beginning with the first renewal of a permit 23 issued after the calendar year 2010, and alternating 24 renewals thereafter, if a renewal applicant applies 25 within thirty days prior to the expiration of the 26 permit or within thirty days after expiration of the 27 permit, the training program requirements of section 28 724.9, subsection 1, do not apply. 29 (b) Beginning with the second renewal of a permit 30 issued after the calendar year 2010, and alternating 31 renewals thereafter, if a renewal applicant applies 32 within thirty days prior to the expiration of the 33 permit or within thirty days after expiration of the 34 permit, a renewal applicant shall qualify for renewal 35 by taking an online training course certified by the 36 national rifle association or the Iowa law enforcement 37 academy, and the training program requirements of 38 section 724.9, subsection 1, do not apply. 39 (2) If any renewal applicant applies more than 40 thirty days after the expiration of the permit, the 41 permit requirements of paragraph “a” apply to the 42 applicant, and any subsequent renewal of this permit 43 shall be considered a first renewal for purposes 44 of subparagraph (1). However, the training program 45 requirements of section 724.9, subsection 1, do not 46 apply to an applicant who is able to demonstrate 47 completion of small arms training as specified in 48 section 724.9, subsection 1, paragraph “d” . For all 49 other applicants, in lieu of the training program 50 -13- H1365.2104 (1) 86 tm/rn 13/ 52
requirements of section 724.9, subsection 1, the 1 renewal applicant may choose to qualify on a firing 2 range under the supervision of an instructor certified 3 by the national rifle association or the department of 4 public safety or another state’s department of public 5 safety, state police department, or similar certifying 6 body. 7 (3) As an alternative to subparagraph (1), and if 8 the requirements of sections 724.6, 724.7, 724.8, and 9 724.10 have been satisfied, a renewal applicant may 10 choose to qualify, at any renewal, under the training 11 program requirements in section 724.9, subsection 1 , 12 shall apply or the renewal applicant may choose to 13 qualify on a firing range under the supervision of an 14 instructor certified by the national rifle association 15 or the department of public safety or another 16 state’s department of public safety, state police 17 department, or similar certifying body. Such training 18 or qualification must occur within the twelve-month 19 twenty-four-month period prior to the expiration 20 of the applicant’s current permit , except that the 21 twenty-four-month time period limitation for training 22 or qualification does not apply to an applicant who is 23 able to demonstrate completion of small arms training 24 as specified in section 724.9, subsection 1, paragraph 25 “d” . 26 3. The issuing officer shall collect a fee of fifty 27 dollars, except from a duly appointed peace officer or 28 correctional officer, for each permit issued. Renewal 29 permits or duplicate permits shall be issued for a fee 30 of twenty-five dollars, provided the application for 31 such renewal permit is received by the issuing officer 32 at least within thirty days prior to the expiration 33 of the applicant’s current permit or within thirty 34 days after such expiration . The issuing officer 35 shall notify the commissioner of public safety of the 36 issuance of any permit at least monthly and forward to 37 the commissioner an amount equal to ten dollars for 38 each permit issued and five dollars for each renewal 39 or duplicate permit issued. All such fees received 40 by the commissioner shall be paid to the treasurer 41 of state and deposited in the operating account of 42 the department of public safety to offset the cost of 43 administering this chapter . Notwithstanding section 44 8.33 , any unspent balance as of June 30 of each year 45 shall not revert to the general fund of the state. 46 Sec. ___. Section 724.11, Code 2015, is amended by 47 adding the following new subsection: 48 NEW SUBSECTION . 5. The initial or renewal permit 49 shall have a uniform appearance, size, and content 50 -14- H1365.2104 (1) 86 tm/rn 14/ 52
prescribed and published by the commissioner of public 1 safety. The permit shall contain the name of the 2 permittee and the effective date of the permit, but 3 shall not contain the permittee’s social security 4 number. Such a permit shall not be issued for a 5 particular weapon and shall not contain information 6 about a particular weapon including the make, model, 7 or serial number of the weapon, or any ammunition used 8 in that weapon. 9 Sec. ___. Section 724.11A, Code 2015, is amended to 10 read as follows: 11 724.11A Recognition. 12 A valid permit or license issued by another state to 13 any nonresident of this state shall be considered to 14 be a valid permit or license to carry weapons issued 15 pursuant to this chapter , except that such permit or 16 license shall not be considered to be a substitute for 17 an annual a permit to acquire pistols or revolvers 18 issued pursuant to section 724.15 this chapter . 19 Sec. ___. Section 724.15, subsections 1, 2, and 3, 20 Code 2015, are amended to read as follows: 21 1. Any person who desires to acquire ownership of 22 any pistol or revolver shall first obtain an annual 23 a permit. An annual A permit shall be issued upon 24 request to any resident of this state unless the person 25 is subject to any of the following: 26 a. Is less than twenty-one years of age. 27 b. Is subject to the provisions of section 724.26 . 28 c. Is prohibited by federal law from shipping, 29 transporting, possessing, or receiving a firearm. 30 2. Any person who acquires ownership of a pistol or 31 revolver shall not be required to obtain an annual a 32 permit if any of the following apply: 33 a. The person transferring the pistol or revolver 34 and the person acquiring the pistol or revolver are 35 licensed firearms dealers under federal law. 36 b. The pistol or revolver acquired is an antique 37 firearm, a collector’s item, a device which is not 38 designed or redesigned for use as a weapon, a device 39 which is designed solely for use as a signaling, 40 pyrotechnic, line-throwing, safety, or similar device, 41 or a firearm which is unserviceable by reason of being 42 unable to discharge a shot by means of an explosive 43 and is incapable of being readily restored to a firing 44 condition. 45 c. The person acquiring the pistol or revolver is 46 authorized to do so on behalf of a law enforcement 47 agency. 48 d. The person has obtained a valid permit to carry 49 weapons, as provided in section 724.11 . 50 -15- H1365.2104 (1) 86 tm/rn 15/ 52
e. The person transferring the pistol or revolver 1 and the person acquiring the pistol or revolver 2 are related to one another within the second degree 3 of consanguinity or affinity unless the person 4 transferring the pistol or revolver knows that the 5 person acquiring the pistol or revolver would be 6 disqualified from obtaining a permit. 7 3. The annual permit to acquire pistols or 8 revolvers shall authorize the permit holder to acquire 9 one or more pistols or revolvers during the period 10 that the permit remains valid. If the issuing officer 11 determines that the applicant has become disqualified 12 under the provisions of subsection 1 , the issuing 13 officer may immediately revoke the permit and shall 14 provide a written statement of the reasons for 15 revocation, and the applicant shall have the right to 16 appeal the revocation as provided in section 724.21A . 17 Sec. ___. Section 724.16, Code 2015, is amended to 18 read as follows: 19 724.16 Annual permit Permit to acquire required —— 20 transfer prohibited. 21 1. Except as otherwise provided in section 724.15, 22 subsection 2 , a person who acquires ownership of a 23 pistol or revolver without a valid annual permit to 24 acquire pistols or revolvers or a person who transfers 25 ownership of a pistol or revolver to a person who does 26 not have in the person’s possession a valid annual 27 permit to acquire pistols or revolvers is guilty of an 28 aggravated misdemeanor. 29 2. A person who transfers ownership of a pistol 30 or revolver to a person that the transferor knows is 31 prohibited by section 724.15 from acquiring ownership 32 of a pistol or revolver commits a class “D” felony. 33 Sec. ___. Section 724.17, Code 2015, is amended to 34 read as follows: 35 724.17 Application for annual permit to acquire —— 36 criminal history check required. 37 1. The application for an annual a permit to 38 acquire pistols or revolvers may be made to the sheriff 39 of the county of the applicant’s residence and shall be 40 on a form prescribed and published by the commissioner 41 of public safety. 42 a. The If an applicant is a United States citizen, 43 the application shall require only the full name of 44 the applicant, the driver’s license or nonoperator’s 45 identification card number of the applicant, the 46 residence of the applicant, and the date and place of 47 birth of the applicant. 48 b. If the applicant is not a United States citizen, 49 the application shall, in addition to the information 50 -16- H1365.2104 (1) 86 tm/rn 16/ 52
specified in paragraph “a” , require the applicant’s 1 country of citizenship, any alien or admission 2 number issued by the United States immigration and 3 customs enforcement or any successor agency, and, 4 if applicable, the basis for any exception claimed 5 pursuant to 18 U.S.C. §922(y). 6 c. The applicant shall also display an 7 identification card that bears a distinguishing number 8 assigned to the cardholder, the full name, date of 9 birth, sex, residence address, and brief description 10 and colored photograph of the cardholder, or other 11 identification as specified by rule of the department 12 of public safety. 13 2. The sheriff shall conduct a criminal history 14 check concerning each applicant by obtaining criminal 15 history data from the department of public safety 16 which shall include an inquiry of the national instant 17 criminal background check system maintained by the 18 federal bureau of investigation or any successor agency 19 and an immigration alien query through a database 20 maintained by the United States immigration and customs 21 enforcement or any successor agency if the applicant is 22 not a United States citizen . 23 3. A person who makes what the person knows to be 24 a false statement of material fact on an application 25 submitted under this section or who submits what the 26 person knows to be any materially falsified or forged 27 documentation in connection with such an application 28 commits a class “D” felony. 29 Sec. ___. Section 724.18, Code 2015, is amended to 30 read as follows: 31 724.18 Procedure for making application for annual 32 permit to acquire. 33 A person may personally request the sheriff to 34 mail an application for an annual a permit to acquire 35 pistols or revolvers, and the sheriff shall immediately 36 forward to such person an application for an annual 37 a permit to acquire pistols or revolvers. A person 38 shall upon completion of the application personally 39 deliver file such application to with the sheriff who 40 shall note the period of validity on the application 41 and shall immediately issue the annual permit to 42 acquire pistols or revolvers to the applicant. For the 43 purposes of this section the date of application shall 44 be the date on which the sheriff received the completed 45 application. 46 Sec. ___. Section 724.19, Code 2015, is amended to 47 read as follows: 48 724.19 Issuance of annual permit to acquire. 49 The annual permit to acquire pistols or revolvers 50 -17- H1365.2104 (1) 86 tm/rn 17/ 52
shall be issued to the applicant immediately upon 1 completion of the application unless the applicant is 2 disqualified under the provisions of section 724.15 and 3 or 724.17. The permit shall be on a form have a 4 uniform appearance, size, and content prescribed and 5 published by the commissioner of public safety. The 6 permit shall contain the name of the permittee , the 7 residence of the permittee, and the effective date 8 of the permit , but shall not contain the permittee’s 9 social security number . Such a permit shall not be 10 issued for a particular pistol or revolver and shall 11 not contain information about a particular pistol or 12 revolver including the make, model, or serial number of 13 the pistol or revolver, or any ammunition used in such 14 a pistol or revolver. 15 Sec. ___. Section 724.20, Code 2015, is amended to 16 read as follows: 17 724.20 Validity of annual permit to acquire pistols 18 or revolvers. 19 The permit shall be valid throughout the state and 20 shall be valid three days after the date of application 21 and shall be invalid one year five years after the date 22 of application. 23 Sec. ___. Section 724.21A, subsections 1 and 7, 24 Code 2015, are amended to read as follows: 25 1. In any case where the sheriff or the 26 commissioner of public safety denies an application 27 for or suspends or revokes a permit to carry weapons 28 or an annual a permit to acquire pistols or revolvers, 29 the sheriff or commissioner shall provide a written 30 statement of the reasons for the denial, suspension, 31 or revocation and the applicant or permit holder 32 shall have the right to appeal the denial, suspension, 33 or revocation to an administrative law judge in the 34 department of inspections and appeals within thirty 35 days of receiving written notice of the denial, 36 suspension, or revocation. 37 7. In any case where the issuing officer denies an 38 application for, or suspends or revokes a permit to 39 carry weapons or an annual a permit to acquire pistols 40 or revolvers solely because of an adverse determination 41 by the national instant criminal background check 42 system, the applicant or permit holder shall not seek 43 relief under this section but may pursue relief of 44 the national instant criminal background check system 45 determination pursuant to Pub. L. No. 103-159, sections 46 103(f) and (g) and 104 and 28 C.F.R. §25.10, or other 47 applicable law. The outcome of such proceedings shall 48 be binding on the issuing officer. 49 Sec. ___. Section 724.21A, Code 2015, is amended by 50 -18- H1365.2104 (1) 86 tm/rn 18/ 52
adding the following new subsection: 1 NEW SUBSECTION . 8. If an applicant appeals the 2 decision by the sheriff or commissioner to deny an 3 application, or suspend or revoke a permit to carry 4 weapons or a permit to acquire, and it is later 5 determined the applicant is eligible to be issued or 6 possess such a permit, the applicant shall be awarded 7 court costs and reasonable attorney fees. If the 8 decision of the sheriff or commission to deny the 9 application, or suspend or revoke the permit is upheld 10 on appeal, the political subdivision of the state 11 representing the sheriff or the commissioner shall be 12 awarded court costs and reasonable attorney fees. 13 Sec. ___. Section 724.22, subsection 5, Code 2015, 14 is amended to read as follows: 15 5. A parent or guardian or spouse who is twenty-one 16 years of age or older, of a person fourteen years of 17 age but less than below the age of twenty-one may 18 allow the person to possess a pistol or revolver or 19 the ammunition therefor for any lawful purpose while 20 under the direct supervision of the parent or guardian 21 or spouse who is twenty-one years of age or older, or 22 while the person receives instruction in the proper use 23 thereof from an instructor twenty-one years of age or 24 older, with the consent of such parent, guardian or 25 spouse. 26 Sec. ___. Section 724.23, Code 2015, is amended to 27 read as follows: 28 724.23 Records kept by commissioner and issuing 29 officers . 30 1. a. The commissioner of public safety shall 31 maintain a permanent record of all valid permits to 32 carry weapons and of current permit revocations. 33 b. The permanent record shall be kept in a 34 searchable database that is accessible on a statewide 35 basis for the circumstances described in subsection 2, 36 paragraph “b” , “c” , “d” , or “e” . 37 2. a. Notwithstanding any other law or rule to 38 the contrary, the commissioner of public safety and 39 any issuing officer shall keep confidential personally 40 identifiable information of holders of permits to 41 carry weapons and permits to acquire, including but not 42 limited to the name, social security number, date of 43 birth, residential or business address, and driver’s 44 license or other identification number of the applicant 45 or permit holder. 46 b. This subsection shall not prohibit the 47 release of statistical information relating to the 48 issuance, denial, revocation, or administration of 49 nonprofessional permits to carry weapons and permits to 50 -19- H1365.2104 (1) 86 tm/rn 19/ 52
acquire, provided that the release of such information 1 does not reveal the identity of any individual permit 2 holder. 3 c. This subsection shall not prohibit the release 4 of information to any law enforcement agency or any 5 employee or agent thereof when necessary for the 6 purpose of investigating a possible violation of law 7 and when probable cause exists, or to determine the 8 validity of a permit, or for conducting a lawfully 9 authorized background investigation. 10 d. This subsection shall not prohibit the 11 release of information relating to the validity of a 12 professional permit to carry weapons to an employer who 13 requires an employee or an agent of the employer to 14 possess a professional permit to carry weapons as part 15 of the duties of the employee or agent. 16 e. (1) This subsection shall not prohibit the 17 release of the information described in subparagraph 18 (3) to a member of the public if the person, in writing 19 or in person, requests whether another person has a 20 professional or nonprofessional permit to carry weapons 21 or a permit to acquire. The request must include 22 the name of the other person and at least one of the 23 following identifiers pertaining to the other person: 24 (a) The date of birth of the person. 25 (b) The address of the person. 26 (c) The telephone number of the person, including 27 any landline or wireless numbers. 28 (2) Prior to the release of information under this 29 paragraph “e” , the member of the public requesting the 30 information shall provide the department of public 31 safety or issuing officer with the name of the person 32 requesting the information and the reason for the 33 request in writing even if the person appears in person 34 to request such information. The department or issuing 35 officer shall keep a record of the person making the 36 request and the reason for such a request. 37 (3) The information released by the department 38 of public safety or issuing officer shall be limited 39 to an acknowledgment as to whether or not the person 40 currently possesses a valid permit to carry weapons or 41 a permit to acquire, the date such permit was issued, 42 and whether the person has ever possessed such a permit 43 that has been revoked or has expired and the date the 44 permit was revoked or expired. No other information 45 shall be released under this paragraph “e” . 46 f. Except as provided in paragraphs “b” , “c” , “d” , 47 or “e” , the release of any confidential information 48 under this section shall require a court order or the 49 consent of the person whose personally identifiable 50 -20- H1365.2104 (1) 86 tm/rn 20/ 52
information is the subject of the information request. 1 Sec. ___. Section 724.27, subsection 1, unnumbered 2 paragraph 1, Code 2015, is amended to read as follows: 3 The provisions of section 724.8 , section 724.15, 4 subsection 1 2 , and section 724.26 shall not apply to 5 a person who is eligible to have the person’s civil 6 rights regarding firearms restored under section 914.7 7 if any of the following occur: 8 Sec. ___. NEW SECTION . 724.29A Fraudulent purchase 9 of firearms or ammunition. 10 1. For purposes of this section: 11 a. “Ammunition” means any cartridge, shell, or 12 projectile designed for use in a firearm. 13 b. “Licensed firearms dealer” means a person who is 14 licensed pursuant to 18 U.S.C. §923 to engage in the 15 business of dealing in firearms. 16 c. “Materially false information” means information 17 that portrays an illegal transaction as legal or a 18 legal transaction as illegal. 19 d. “Private seller” means a person who sells or 20 offers for sale any firearm or ammunition. 21 2. A person who knowingly solicits, persuades, 22 encourages, or entices a licensed firearms dealer or 23 private seller of firearms or ammunition to transfer 24 a firearm or ammunition under circumstances that the 25 person knows would violate the laws of this state or of 26 the United States commits a class “D” felony. 27 3. A person who knowingly provides materially 28 false information to a licensed firearms dealer or 29 private seller of firearms or ammunition with the 30 intent to deceive the firearms dealer or seller about 31 the legality of a transfer of a firearm or ammunition 32 commits a class “D” felony. 33 4. Any person who willfully procures another to 34 engage in conduct prohibited by this section shall be 35 held accountable as a principal. 36 5. This section does not apply to a law enforcement 37 officer acting in the officer’s official capacity 38 or to a person acting at the direction of such law 39 enforcement officer. 40 Sec. ___. NEW SECTION . 724.32 Rules. 41 The department of public safety shall adopt rules 42 pursuant to chapter 17A to administer this chapter. 43 Sec. ___. Section 805.8C, Code 2015, is amended by 44 adding the following new subsections: 45 NEW SUBSECTION . 11. Duty to possess permit to carry 46 weapons. For violations of section 724.4, subsection 47 4, paragraph “i” , subparagraph (2), the scheduled fine 48 is ten dollars. 49 NEW SUBSECTION . 12. Failure to produce permit to 50 -21- H1365.2104 (1) 86 tm/rn 21/ 52
carry. For violations of section 724.5, the scheduled 1 fine is ten dollars. 2 Sec. ___. EFFECTIVE UPON ENACTMENT. The following 3 provision or provisions of this division of this Act, 4 being deemed of immediate importance, take effect upon 5 enactment: 6 1. The section of this division amending section 7 724.1, subsection 1, paragraph “h”. 8 2. The section of this division enacting new 9 section 724.1A. 10 3. The section of this division amending section 11 724.22. 12 4. The section of this division amending section 13 724.23, subsection 2. 14 5. The section of this division amending section 15 724.29A. 16 6. The applicability section of this division. 17 Sec. ___. APPLICABILITY. The section of this 18 division of this Act amending section 724.23 applies 19 to holders of nonprofessional permits to carry weapons 20 and permits to acquire firearms and to applicants for 21 nonprofessional permits to carry weapons and permits to 22 acquire firearms on or after the effective date of that 23 section of this division of this Act. 24 DIVISION ___ 25 STATUTE-OF-REPOSE 26 Sec. ___. Section 614.1, subsection 11, Code 2015, 27 is amended to read as follows: 28 11. Improvements to real property. 29 a. Residential construction. In addition to 30 limitations contained elsewhere in this section , an 31 action arising out of the unsafe or defective condition 32 of an improvement to real property residential 33 construction based on tort and implied warranty and 34 for contribution and indemnity, and founded on injury 35 to property, real or personal, or injury to the person 36 or wrongful death, shall not be brought more than 37 fifteen years after the date on which occurred the act 38 or omission of the defendant alleged in the action to 39 have been the cause of the injury or death. However, 40 this subsection paragraph does not bar an action 41 against a person solely in the person’s capacity as an 42 owner, occupant, or operator of an improvement to real 43 property. 44 b. Nonresidential construction. In addition to 45 limitations contained elsewhere in this section, an 46 action arising out of the unsafe or defective condition 47 of an improvement to nonresidential construction based 48 on tort and implied warranty and for contribution and 49 indemnity, and founded on injury to property, real or 50 -22- H1365.2104 (1) 86 tm/rn 22/ 52
personal, or injury to the person or wrongful death, 1 shall not be brought more than ten years after the date 2 on which occurred the act or omission of the defendant 3 alleged in the action to have been the cause of the 4 injury or death. However, this paragraph does not 5 bar an action against a person solely in the person’s 6 capacity as an owner, occupant, or operator of an 7 improvement to real property. 8 c. Definitions. For purposes of this subsection, 9 “residential construction” means the same as defined 10 in section 572.1. Nonresidential construction” 11 means all other construction that is not residential 12 construction. 13 Sec. ___. APPLICABILITY. This division of this 14 Act does not apply to residential-construction or 15 nonresidential-construction projects in existence prior 16 to the effective date of this division of this Act. 17 DIVISION ___ 18 EDUCATION BUDGETING MATTERS 19 Sec. ___. Section 8.22A, subsection 2, Code 2015, 20 is amended to read as follows: 21 2. The conference shall meet as often as deemed 22 necessary, but shall meet at least three times per year 23 with at least one meeting taking place each year in 24 March . The conference may use sources of information 25 deemed appropriate. At each meeting, the conference 26 shall agree to estimates for the current fiscal year 27 and the following fiscal year for the general fund 28 of the state, lottery revenues to be available for 29 disbursement, and from gambling revenues and from 30 interest earned on the cash reserve fund and the 31 economic emergency fund to be deposited in the rebuild 32 Iowa infrastructure fund. At the meeting taking 33 place each year in March, in addition to agreeing to 34 estimates for the current fiscal year and the following 35 fiscal year, the conference shall agree to estimates 36 for the fiscal year beginning July 1 of the following 37 calendar year. Only an estimate for the following 38 fiscal year agreed to by the conference pursuant to 39 subsection 3, 4, or 5 , shall be used for purposes 40 of calculating the state general fund expenditure 41 limitation under section 8.54 , and any other estimate 42 agreed to shall be considered a preliminary estimate 43 that shall not be used for purposes of calculating the 44 state general fund expenditure limitation. 45 Sec. ___. Section 257.8, subsections 1 and 2, Code 46 2015, are amended to read as follows: 47 1. State percent of growth. 48 a. The state percent of growth for the budget year 49 beginning July 1, 2012, is two percent. The state 50 -23- H1365.2104 (1) 86 tm/rn 23/ 52
percent of growth for the budget year beginning July 1 1, 2013, is two percent. The state percent of growth 2 for the budget year beginning July 1, 2014, is four 3 percent. 4 b. (1) The state percent of growth for each 5 subsequent budget year beginning before July 1, 2017, 6 shall be established by statute which shall be enacted 7 within thirty days of the submission in the year 8 preceding the base year of the governor’s budget under 9 section 8.21 . 10 (2) The state percent of growth for each subsequent 11 budget year beginning on or after July 1, 2017, shall 12 be established by statute which shall be enacted during 13 the regular legislative session beginning in the same 14 calendar year during which the base year begins. 15 c. The establishment of the state percent of growth 16 for a budget year shall be the only subject matter of 17 the bill which enacts the state percent of growth for a 18 budget year. 19 2. Categorical state percent of growth. 20 a. The categorical state percent of growth for the 21 budget year beginning July 1, 2012, is two percent. 22 The categorical state percent of growth for the budget 23 year beginning July 1, 2013, is two percent. The 24 categorical state percent of growth for the budget year 25 beginning July 1, 2014, is four percent. 26 b. (1) The categorical state percent of growth 27 for each subsequent budget year beginning before July 28 1, 2017, shall be established by statute which shall 29 be enacted within thirty days of the submission in the 30 year preceding the base year of the governor’s budget 31 under section 8.21 . 32 (2) The categorical state percent of growth for 33 each subsequent budget year beginning on or after July 34 1, 2017, shall be established by statute which shall 35 be enacted during the regular legislative session 36 beginning in the same calendar year during which the 37 base year begins. 38 c. The establishment of the categorical state 39 percent of growth for a budget year shall be the only 40 subject matter of the bill which enacts the categorical 41 state percent of growth for a budget year. 42 d. The categorical state percent of growth may 43 include state percents of growth for the teacher salary 44 supplement, the professional development supplement, 45 the early intervention supplement, and the teacher 46 leadership supplement. 47 DIVISION ___ 48 HEALTH CARRIER DISCLOSURES 49 Sec. ___. NEW SECTION . 514K.2 Health carrier 50 -24- H1365.2104 (1) 86 tm/rn 24/ 52
disclosures —— public internet sites. 1 1. A carrier that provides small group health 2 coverage pursuant to chapter 513B or individual health 3 coverage pursuant to chapter 513C and that offers 4 for sale a policy, contract, or plan that covers the 5 essential health benefits required pursuant to section 6 1302 of the federal Patient Protection and Affordable 7 Care Act, Pub. L. No. 111-148, and its implementing 8 regulations, shall provide to each of its enrollees 9 at the time of enrollment, and shall make available 10 to prospective enrollees and enrollees, insurance 11 producers licensed under chapter 522B, and the general 12 public, on the carrier’s internet site, all of the 13 following information in a clear and understandable 14 form for use in comparing policies, contracts, and 15 plans, and coverage and premiums: 16 a. Any exclusions from coverage and any 17 restrictions on the use or quantity of covered items 18 and services in each category of benefits, including 19 prescription drugs and drugs administered by a 20 physician or clinic. 21 b. Any items or services, including prescription 22 drugs, that have a coinsurance requirement where the 23 cost-sharing required depends on the cost of the item 24 or service. 25 c. The specific prescription drugs available on 26 the carrier’s formulary, the specific prescription 27 drugs covered when furnished by a physician or clinic, 28 and any clinical prerequisites or prior authorization 29 requirements for coverage of the drugs. 30 d. The specific types of specialists available 31 in the carrier’s network and the specific physicians 32 included in the carrier’s network. 33 e. The process for an enrollee to appeal a 34 carrier’s denial of coverage of an item or service 35 prescribed or ordered by the enrollee’s treating 36 physician. 37 f. How medications will specifically be included 38 in or excluded from the deductible, including a 39 description of all out-of-pocket costs that may not 40 apply to the deductible for a prescription drug. 41 2. The commissioner may adopt rules pursuant to 42 chapter 17A to administer this section. 43 3. The commissioner may impose any of the sanctions 44 provided under chapter 507B for a violation of this 45 section. 46 Sec. ___. NEW SECTION . 514K.3 Health care plan 47 internal appeals process —— disclosure requirements. 48 1. A carrier that provides small group health 49 coverage pursuant to chapter 513B or individual 50 -25- H1365.2104 (1) 86 tm/rn 25/ 52
health coverage pursuant to chapter 513C through the 1 issuance of nongrandfathered health plans as defined 2 in section 1251 of the federal Patient Protection 3 and Affordable Care Act, Pub. L. No. 111-148, and 4 in 45 C.F.R. §147.140, shall implement and maintain 5 procedures for carrying out an effective internal 6 claims and appeals process that meets the requirements 7 established pursuant to section 2719 of the federal 8 Public Health Service Act, 42 U.S.C. §300gg-19, and 45 9 C.F.R. §147.136. The procedures shall include but are 10 not limited to all of the following: 11 a. Expedited notification to enrollees of benefit 12 determinations involving urgent care. 13 b. Full and fair internal review of claims and 14 appeals. 15 c. Avoidance of conflicts of interest. 16 d. Sufficient notice to enrollees, including a 17 description of available internal claims and appeals 18 procedures, as well as information about how to 19 initiate an appeal of a denial of coverage. 20 2. a. A carrier that provides health coverage 21 as described in subsection 1 shall maintain written 22 records of all requests for internal claims and appeals 23 that are received and for which internal review was 24 performed during each calendar year. Such records 25 shall be maintained for at least three years. 26 b. A carrier that provides health coverage 27 as described in subsection 1 shall submit to the 28 commissioner, upon request, a report that includes all 29 of the following: 30 (1) The total number of requests for internal 31 review of claims and appeals that are received by the 32 carrier each year. 33 (2) The average length of time for resolution of 34 each request for internal review of a claim or appeal. 35 (3) A summary of the types of coverage or cases 36 for which internal review of a claim or appeal was 37 requested. 38 (4) Any other information required by the 39 commissioner in a format specified by rule. 40 3. A carrier that provides health coverage as 41 described in subsection 1 shall make available to 42 consumers written notice of the carrier’s internal 43 claims and appeals and internal review procedures 44 and shall maintain a toll-free consumer-assistance 45 telephone helpline that offers consumers assistance 46 with the carrier’s internal claims and appeals and 47 internal review procedures, including how to initiate, 48 complete, or submit a claim or appeal. 49 4. The commissioner may adopt rules pursuant to 50 -26- H1365.2104 (1) 86 tm/rn 26/ 52
chapter 17A to administer this section. 1 Sec. ___. APPLICABILITY. This division of this Act 2 is applicable to health insurance policies, contracts, 3 or plans that are delivered, issued for delivery, 4 continued, or renewed on or after January 1, 2016. 5 DIVISION ___ 6 PUBLIC IMPROVEMENT LOCATION AND UNUSED PORTION OF 7 CONDEMNED PROPERTY 8 Sec. ___. Section 6B.2C, Code 2015, is amended to 9 read as follows: 10 6B.2C Approval of the public improvement. 11 The authority to condemn is not conferred, and the 12 condemnation proceedings shall not commence, unless 13 the governing body for the acquiring agency approves 14 a preliminary or final route or site location of 15 the proposed public improvement, approves the use of 16 condemnation , and finds that there is a reasonable 17 expectation the applicant will be able to achieve its 18 public purpose, comply with all applicable standards, 19 and obtain the necessary permits. 20 Sec. ___. Section 6B.56, subsection 1, Code 2015, 21 is amended to read as follows: 22 1. If all or a portion of real property condemned 23 pursuant to this chapter is not used for the purpose 24 stated in the application filed pursuant to section 25 6B.3 and the acquiring agency seeks to dispose of 26 the unused real property, the acquiring agency shall 27 first offer the unused real property for sale to the 28 prior owner of the condemned property as provided in 29 this section . If real property condemned pursuant to 30 this chapter is used for the purpose stated in the 31 application filed pursuant to section 6B.3 and the 32 acquiring agency seeks to dispose of the real property 33 by sale to a private person or entity within five years 34 after acquisition of the property, the acquiring agency 35 shall first offer the property for sale to the prior 36 owner of the condemned property as provided in this 37 section . For purposes of this section , the prior owner 38 of the real property includes the successor in interest 39 of the real property. 40 Sec. ___. Section 6B.56, subsection 2, paragraph a, 41 Code 2015, is amended to read as follows: 42 a. Before the real property described in subsection 43 1 may be offered for sale to the general public, 44 the acquiring agency shall notify the prior owner 45 of the such real property condemned in writing of 46 the acquiring agency’s intent to dispose of the real 47 property, of the current appraised value of the real 48 property to be offered for sale , and of the prior 49 owner’s right to purchase the real property to be 50 -27- H1365.2104 (1) 86 tm/rn 27/ 52
offered for sale within sixty days from the date 1 the notice is served at a price equal to the current 2 appraised value of the real property to be offered for 3 sale or the fair market value of the property to be 4 offered for sale at the time it was acquired by the 5 acquiring agency from the prior owner plus cleanup 6 costs incurred by the acquiring agency for the property 7 to be offered for sale , whichever is less. However, 8 the current appraised value of the real property to be 9 offered for sale shall be the purchase price to be paid 10 by the previous owner if any other amount would result 11 in a loss of federal funding for projects funded in 12 whole or in part with federal funds. The notice sent 13 by the acquiring agency as provided in this subsection 14 shall be filed with the office of the recorder in the 15 county in which the real property is located. 16 Sec. ___. Section 6B.56A, subsection 1, Code 2015, 17 is amended to read as follows: 18 1. When five years have elapsed since property was 19 condemned and all or a portion of the property has not 20 been used for the purpose stated in the application 21 filed pursuant to section 6B.3 , and the acquiring 22 agency has not taken action to dispose of the unused 23 property pursuant to section 6B.56 , the acquiring 24 agency shall, within sixty days, adopt a resolution 25 reaffirming the purpose for which the property will be 26 used or offering the property for sale to the prior 27 owner at a price as provided in section 6B.56 . If the 28 resolution adopted approves an offer of sale to the 29 prior owner, the offer shall be made in writing and 30 mailed by certified mail to the prior owner. The prior 31 owner has one hundred eighty days after the offer is 32 mailed to purchase the property from the acquiring 33 agency. 34 Sec. ___. APPLICABILITY. The section of this 35 division of this Act amending section 6B.2C applies to 36 public improvement projects for which an application 37 under section 6B.3 is filed on or after July 1, 2015. 38 Sec. ___. APPLICABILITY. The sections of this 39 division of this Act amending sections 6B.56 and 6B.56A 40 apply to public improvement projects for which an 41 application under section 6B.3 is filed before, on, or 42 after July 1, 2015. 43 DIVISION ___ 44 CONDEMNATION FOR CREATION OF A LAKE —— NUMBER OF ACRES 45 Sec. ___. Section 6A.22, subsection 2, paragraph c, 46 subparagraph (1), subparagraph division (b), Code 2015, 47 is amended to read as follows: 48 (b) (i) For purposes of this subparagraph (1), 49 “number of acres justified as necessary for a surface 50 -28- H1365.2104 (1) 86 tm/rn 28/ 52
drinking water source” means according to guidelines of 1 the United States natural resource conservation service 2 and according to analyses of surface drinking water 3 capacity needs conducted by one or more registered 4 professional engineers. 5 (ii) For condemnation proceedings for which the 6 application pursuant to section 6B.3 was filed after 7 January 1, 2013, for condemnation of property located 8 in a county with a population of greater than nine 9 thousand two hundred fifty but less than nine thousand 10 three hundred, according to the 2010 federal decennial 11 census, which property was in whole or in part subject 12 to an action under section 6A.24 for which the petition 13 under section 6A.24 was filed after January 1, 2013, 14 but before January 1, 2014, “number of acres justified 15 as necessary for a surface drinking water source” , as 16 determined under subparagraph subdivision (i) shall 17 not exceed the number of acres that would be necessary 18 to provide the amount of drinking water to meet the 19 needs of a population equal to the population of the 20 county where the lake is to be developed or created, 21 according to the most recent federal decennial census. 22 However, if the population of the county where the 23 lake is to be developed or created increased from the 24 federal decennial census immediately preceding the 25 most recent federal decennial census, the “number of 26 acres justified as necessary for a surface drinking 27 water source” shall not exceed the number of acres that 28 would be necessary to provide the amount of drinking 29 water to meet the needs of a population equal to the 30 product of one plus the percentage increase in the 31 population of the county between the two most recent 32 federal decennial censuses multiplied by the county’s 33 population according to the most recent federal 34 decennial census. 35 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 36 of this Act, being deemed of immediate importance, 37 takes effect upon enactment. 38 DIVISION ___ 39 CONDEMNATION FOR CREATION OF A LAKE —— EXISTING SOURCES 40 Sec. ___. Section 6A.22, subsection 2, paragraph c, 41 subparagraph (1), Code 2015, is amended by adding the 42 following new subparagraph division: 43 NEW SUBPARAGRAPH DIVISION . (0b) For condemnation 44 of property located in a county with a population 45 of greater than nine thousand two hundred fifty but 46 less than nine thousand three hundred, according to 47 the 2010 federal decennial census, prior to making 48 a determination that development or creation of a 49 lake as a surface drinking water source is reasonable 50 -29- H1365.2104 (1) 86 tm/rn 29/ 52
and necessary, the acquiring agency shall conduct a 1 review of feasible alternatives to development or 2 creation of a lake as a surface drinking water source. 3 An acquiring agency shall not have the authority 4 to condemn private property for the development or 5 creation of a lake as a surface drinking water source 6 if one or more feasible alternatives to provision of 7 a drinking water source exist. An alternative that 8 results in the physical expansion of an existing 9 drinking water source is presumed to be a feasible 10 alternative to development or creation of a lake as 11 a surface drinking water source. An alternative that 12 supplies drinking water by pipeline or other method of 13 transportation or transmission from an existing source 14 located within or outside this state at a reasonable 15 cost is a feasible alternative to development or 16 creation of a lake as a surface drinking water source. 17 If private property is to be condemned for development 18 or creation of a lake, only that number of acres 19 justified as necessary for a surface drinking water 20 source, and not otherwise acquired, may be condemned. 21 Development or creation of a lake as a surface drinking 22 water source includes all of the following: 23 (i) Construction of the dam, including sites for 24 suitable borrow material and the auxiliary spillway. 25 (ii) The water supply pool. 26 (iii) The sediment pool. 27 (iv) The flood control pool. 28 (v) The floodwater retarding pool. 29 (vi) The surrounding area upstream of the dam 30 no higher in elevation than the top of the dam’s 31 elevation. 32 (vii) The appropriate setback distance required 33 by state or federal laws and regulations to protect 34 drinking water supply. 35 Sec. ___. Section 6A.24, subsection 3, Code 2015, 36 is amended to read as follows: 37 3. For any action brought under this section , 38 the burden of proof shall be on the acquiring agency 39 to prove by a preponderance of the evidence that 40 the finding of public use, public purpose, or public 41 improvement meets the definition of those terms. 42 However, for any action brought under this section 43 that involves property described in section 6A.22, 44 subsection 2, paragraph “c” , subparagraph (1), 45 subparagraph division (0b), the burden of proof shall 46 be on the acquiring agency to prove by clear and 47 convincing evidence that no feasible alternatives 48 to provision of a drinking water source exist. If a 49 property owner or a contract purchaser of record or a 50 -30- H1365.2104 (1) 86 tm/rn 30/ 52
tenant occupying the property under a recorded lease 1 prevails in an action brought under this section , the 2 acquiring agency shall be required to pay the costs, 3 including reasonable attorney fees, of the adverse 4 party. 5 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 6 of this Act, being deemed of immediate importance, 7 takes effect upon enactment. 8 Sec. ___. APPLICABILITY. This division of this Act 9 applies to projects or condemnation proceedings pending 10 or commenced on or after the effective date of this 11 division of this Act. 12 DIVISION ___ 13 DISPOSITION OF CONDEMNED PROPERTY 14 Sec. ___. Section 6B.56A, subsection 4, Code 2015, 15 is amended to read as follows: 16 4. This section does not apply to property acquired 17 for street and highway projects undertaken by the 18 state, a county, or a city or to property that is 19 subject to the disposition of property requirements 20 under section 6B.56B . 21 Sec. ___. NEW SECTION . 6B.56B Disposition of 22 condemned property —— lake creation. 23 1. When two years have elapsed since property was 24 condemned for the creation of a lake according to the 25 requirements of section 6A.22, subsection 2, paragraph 26 “c” , subparagraph (1), subparagraph division (0b), and 27 the property has not been used for the purpose stated 28 in the application filed pursuant to section 6B.3, and 29 the acquiring agency has not taken action to dispose of 30 the property pursuant to section 6B.56, the acquiring 31 agency shall, within sixty days, adopt a resolution 32 offering the property for sale to the prior owner at a 33 price as provided in section 6B.56. If the resolution 34 adopted approves an offer of sale to the prior owner, 35 the offer shall be made in writing and mailed by 36 certified mail to the prior owner. The prior owner has 37 one hundred eighty days after the offer is mailed to 38 purchase the property from the acquiring agency. 39 2. If the acquiring agency has not adopted a 40 resolution described in subsection 1 within the 41 sixty-day time period, the prior owner may, in writing, 42 petition the acquiring agency to offer the property 43 for sale to the prior owner at a price as provided in 44 section 6B.56. Within sixty days after receipt of 45 such a petition, the acquiring agency shall adopt a 46 resolution described in subsection 1. If the acquiring 47 agency does not adopt such a resolution within sixty 48 days after receipt of the petition, the acquiring 49 agency is deemed to have offered the property for sale 50 -31- H1365.2104 (1) 86 tm/rn 31/ 52
to the prior owner. 1 3. The acquiring agency shall give written notice 2 to the owner of the right to purchase the property 3 under this section at the time damages are paid to the 4 owner. 5 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 6 of this Act, being deemed of immediate importance, 7 takes effect upon enactment. 8 Sec. ___. APPLICABILITY. This division of this Act 9 applies to projects or condemnation proceedings pending 10 or commenced on or after the effective date of this 11 division of this Act. 12 DIVISION ___ 13 RENEWABLE CHEMICAL PRODUCTION TAX CREDIT 14 Sec. ___. Section 15.119, subsection 2, Code 2015, 15 is amended by adding the following new paragraph: 16 NEW PARAGRAPH . h. The renewable chemical 17 production tax credit program administered pursuant 18 to sections 15.315 through 15.320. In allocating tax 19 credits pursuant to this subsection, the authority 20 shall not allocate more than fifteen million dollars 21 for purposes of this paragraph. 22 Sec. ___. NEW SECTION . 15.315 Short title. 23 This part shall be known and may be cited as the 24 “Renewable Chemical Production Tax Credit Program” . 25 Sec. ___. NEW SECTION . 15.316 Definitions. 26 As used in this part, unless the context otherwise 27 requires: 28 1. “Biobased content percentage” means, with respect 29 to any renewable chemical, the amount, expressed as a 30 percentage, of renewable organic material present as 31 determined by testing representative samples using the 32 American society for testing and materials standard 33 D6866. 34 2. “Biomass feedstock” means sugar, polysaccharide, 35 glycerin, lignin, fat, grease, or oil derived from 36 a plant or animal, or a protein capable of being 37 converted to a building block chemical by means of a 38 biological or chemical conversion process. 39 3. “Building block chemical” means a molecule 40 converted from biomass feedstock as a first product 41 or a secondarily derived product that can be further 42 refined into a higher-value chemical, material, or 43 consumer product. “Building block chemical” includes 44 but is not limited to glycerol, methanoic or formic 45 acid, arabonic acid, erythonic acid, glyceric acid, 46 glycolic acid, lactic acid, 3-hydroxypropionate, 47 propionic acid, malonic acid, serine, succinic 48 acid, fumaric acid, malic acid, aspartic acid, 49 3-hydroxybutyrolactone, acetoin, threonine, itaconic 50 -32- H1365.2104 (1) 86 tm/rn 32/ 52
acid, furfural, levulinic acid, glutamic acid, xylonic 1 acid, xylaric acid, xylitol, arabitol, citric acid, 2 aconitic acid, 5-hydroxymethylfurfural, lysine, 3 gluconic acid, glucaric acid, sorbitol, gallic acid, 4 ferulic acid, nonfuel butanol, nonfuel ethanol, a 5 polymer or gum that can be produced directly from a 6 protein-based biomass feedstock, or such additional 7 molecules as may be included by the authority by rule. 8 4. “Eligible business” means a business meeting the 9 requirements of section 15.317. 10 5. “Food additive” means a building block chemical 11 that is not primarily consumed as food but which, when 12 combined with other components, improves the taste, 13 appearance, odor, texture, or nutritional content 14 of food. The authority, in its discretion, shall 15 determine whether or not a building block chemical is 16 primarily consumed as food. 17 6. “Program” means the renewable chemical 18 production tax credit program administered pursuant to 19 this part. 20 7. “Renewable chemical” means a building block 21 chemical with a biobased content percentage of at least 22 fifty percent. “Renewable chemical” does not include a 23 chemical sold or used for the production of food, feed, 24 or fuel. “Renewable chemical” includes cellulosic 25 ethanol, starch ethanol, or other ethanol derived 26 from biomass feedstock, fatty acid methyl esters, or 27 butanol, but only to the extent that such molecules 28 are produced and sold for uses other than food, 29 feed, or fuel. “Renewable chemical” also includes a 30 building block chemical that can be a food additive as 31 long as the building block chemical is not primarily 32 consumed as food and is also sold for uses other than 33 food. “Renewable chemical” also includes supplements, 34 vitamins, nutraceuticals, and pharmaceuticals, but 35 only to the extent that such molecules do not provide 36 caloric value so as to be considered sustenance as food 37 or feed. 38 8. “Sugar” means the organic compound glucose, 39 fructose, xylose, arabinose, lactose, sucrose, starch, 40 cellulose, or hemicellulose. 41 Sec. ___. NEW SECTION . 15.317 Eligibility 42 requirements. 43 To be eligible to receive the renewable chemical 44 production tax credit pursuant to the program, a 45 business shall meet all of the following requirements: 46 1. The business is physically located in this 47 state. 48 2. The business is operated for profit and under 49 single management. 50 -33- H1365.2104 (1) 86 tm/rn 33/ 52
3. The business is not an entity providing 1 professional services, health care services, or medical 2 treatments or an entity engaged primarily in retail 3 operations. 4 4. The business organized, expanded, or located 5 in the state on or after the effective date of this 6 division of this Act. 7 5. The business shall not be relocating or 8 reducing operations as described in section 15.329, 9 subsection 1, paragraph “b” , and as determined under 10 the discretion of the authority. 11 6. The business is in compliance with all 12 agreements entered into under this program or other 13 programs administered by the authority. 14 Sec. ___. NEW SECTION . 15.318 Eligible business 15 application and agreement —— maximum tax credits. 16 1. Application. 17 a. An eligible business that produces a renewable 18 chemical in this state from biomass feedstock during 19 a calendar year may apply to the authority for the 20 renewable chemical production tax credit provided in 21 section 15.319. 22 b. The application shall be made to the authority 23 in the manner prescribed by the authority. 24 c. The application shall be made during the 25 calendar year following the calendar year in which the 26 renewable chemicals are produced. 27 d. The authority may accept applications on a 28 continuous basis or may establish, by rule, an annual 29 application deadline. 30 e. The application shall include all of the 31 following information: 32 (1) The amount of renewable chemicals produced 33 in the state from biomass feedstock by the eligible 34 business during the calendar year, measured in pounds. 35 (2) Any other information reasonably required 36 by the authority in order to establish and verify 37 eligibility under the program. 38 2. Agreement and fees. 39 a. Before being issued a tax credit under section 40 15.319, an eligible business shall enter into an 41 agreement with the authority for the successful 42 completion of all requirements of the program. 43 b. The compliance cost fees authorized in section 44 15.330, subsection 12, shall apply to all agreements 45 entered into under this program and shall be collected 46 by the authority in the same manner and to the same 47 extent as described in that subsection. 48 c. An eligible business shall fulfill all the 49 requirements of the program and the agreement before 50 -34- H1365.2104 (1) 86 tm/rn 34/ 52
receiving a tax credit or entering into a subsequent 1 agreement under this section. The authority may 2 decline to enter into a subsequent agreement under this 3 section or issue a tax credit if an agreement is not 4 successfully fulfilled. 5 d. Upon establishing that all requirements of the 6 program and the agreement have been fulfilled, the 7 authority shall issue a tax credit and related tax 8 credit certificate to the eligible business stating 9 the amount of renewable chemical production tax credit 10 under section 15.319 the eligible business may claim. 11 3. Maximum tax credit amount. 12 a. The maximum amount of tax credit that may be 13 issued under section 15.319 to an eligible business for 14 the production of renewable chemicals in a calendar 15 year shall not exceed the following: 16 (1) In the case of an eligible business that has 17 been in operation in the state for five years or less 18 at the time of the application, one million dollars. 19 (2) In the case of an eligible business that has 20 been in operation in the state for more than five years 21 at the time of the application, five hundred thousand 22 dollars. 23 b. An eligible business shall not receive a tax 24 credit for renewable chemicals produced before the date 25 the business first qualified as an eligible business 26 pursuant to section 15.317. 27 c. An eligible business shall not receive more than 28 five tax credits under the program. 29 d. The authority shall issue tax credits under 30 the program on a first-come, first-served basis until 31 the maximum amount of tax credits allocated pursuant 32 to section 15.119, subsection 2, paragraph “h” , is 33 reached. The authority shall maintain a list of 34 successful applicants under the program, so that if 35 the maximum aggregate amount of tax credits is reached 36 in a given fiscal year, eligible businesses that 37 successfully applied but for which tax credits were not 38 issued shall be placed on a wait list in the order the 39 eligible businesses applied and shall be given priority 40 for receiving tax credits in succeeding fiscal years. 41 Placement on a wait list pursuant to this paragraph 42 shall not constitute a promise binding the state. The 43 availability of a tax credit and issuance of a tax 44 credit certificate pursuant to this subsection in a 45 future fiscal year is contingent upon the availability 46 of tax credits in that particular fiscal year. 47 4. Termination and repayment. The failure by an 48 eligible business in fulfilling any requirement of 49 the program or any of the terms and obligations of an 50 -35- H1365.2104 (1) 86 tm/rn 35/ 52
agreement entered into pursuant to this section may 1 result in the reduction, termination, or recision of 2 the tax credits under section 15.319 and may subject 3 the eligible business to the repayment or recapture 4 of tax credits claimed. The repayment or recapture 5 of tax credits pursuant to this subsection shall be 6 accomplished in the same manner as provided in section 7 15.330, subsection 2. 8 5. Confidentiality. 9 a. Except as provided in paragraph “b” , any 10 information or record in the possession of the 11 authority with respect to the program shall be presumed 12 by the authority to be a trade secret protected 13 under chapter 550 or common law and shall be kept 14 confidential by the authority unless otherwise ordered 15 by a court. 16 b. The identity of a tax credit recipient and the 17 amount of the tax credit shall be considered public 18 information under chapter 22. 19 Sec. ___. NEW SECTION . 15.319 Renewable chemical 20 production tax credit. 21 1. An eligible business that has entered into an 22 agreement pursuant to section 15.318 may claim a tax 23 credit equal to the product of five cents multiplied by 24 the number of pounds of renewable chemicals produced 25 in this state from biomass feedstock by the eligible 26 business during the calendar year. However, an 27 eligible business shall not receive a tax credit for 28 the production of a secondarily derived building block 29 chemical if that chemical is also the subject of a 30 credit at the time of production as a first product. 31 The renewable chemical production tax credit shall not 32 be available for any renewable chemical produced before 33 the 2016 calendar year, or after the 2026 calendar 34 year. 35 2. The tax credit shall be allowed against taxes 36 imposed under chapter 422, division II or III. 37 3. The tax credit shall be claimed for the tax year 38 during which the eligible business was issued the tax 39 credit. 40 4. An individual may claim a tax credit under this 41 section of a partnership, limited liability company, S 42 corporation, cooperative organized under chapter 501 43 and filing as a partnership for federal tax purposes, 44 estate, or trust electing to have income taxed 45 directly to the individual. The amount claimed by the 46 individual shall be based upon the pro rata share of 47 the individual’s earnings from the partnership, limited 48 liability company, S corporation, cooperative, estate, 49 or trust. 50 -36- H1365.2104 (1) 86 tm/rn 36/ 52
5. Any tax credit in excess of the tax liability 1 is refundable. In lieu of claiming a refund, the 2 taxpayer may elect to have the overpayment shown on the 3 taxpayer’s final, completed return credited to the tax 4 liability for the following tax year. 5 6. a. To claim a tax credit under this section, 6 a taxpayer shall include one or more tax credit 7 certificates with the taxpayer’s tax return. 8 b. The tax credit certificate shall contain the 9 taxpayer’s name, address, tax identification number, 10 the amount of the credit, the name of the eligible 11 business, and any other information required by the 12 department of revenue. 13 c. The tax credit certificate, unless rescinded 14 by the authority, shall be accepted by the department 15 of revenue as payment for taxes imposed pursuant to 16 chapter 422, divisions II and III, subject to any 17 conditions or restrictions placed by the authority upon 18 the face of the tax credit certificate and subject to 19 the limitations of the program. 20 d. Tax credit certificates issued pursuant to this 21 section shall not be transferred to any other person. 22 Sec. ___. NEW SECTION . 15.320 Rules. 23 The authority and the department of revenue shall 24 each adopt rules as necessary for the implementation 25 and administration of this part. 26 Sec. ___. NEW SECTION . 422.10A Renewable chemical 27 production tax credit. 28 The taxes imposed under this division, less the 29 credits allowed under section 422.12, shall be reduced 30 by a renewable chemical production tax credit allowed 31 under section 15.319. 32 Sec. ___. Section 422.33, Code 2015, is amended by 33 adding the following new subsection: 34 NEW SUBSECTION . 22. The taxes imposed under this 35 division shall be reduced by a renewable chemical 36 production tax credit allowed under section 15.319. 37 Sec. ___. TAX CREDIT CLAIMS. Renewable chemical 38 production tax credits issued pursuant to the renewable 39 chemical production tax credit program enacted in 40 this division of this Act shall not be issued by 41 the economic development authority prior to July 1, 42 2017, and shall not be claimed by a taxpayer prior to 43 September 1, 2017. 44 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 45 of this Act, being deemed of immediate importance, 46 takes effect upon enactment. 47 Sec. ___. APPLICABILITY. This division of this Act 48 applies to renewable chemicals produced in the state 49 from biomass feedstock on or after January 1, 2016. 50 -37- H1365.2104 (1) 86 tm/rn 37/ 52
DIVISION ___ 1 ANGEL INVESTOR TAX CREDITS 2 Sec. ___. Section 2.48, subsection 3, paragraph 3 d, subparagraph (1), Code 2015, is amended to read as 4 follows: 5 (1) Tax credits for investments in qualifying 6 businesses and community-based seed capital funds under 7 chapter 15E, division V . 8 Sec. ___. Section 15.119, subsection 2, paragraph 9 d, Code 2015, is amended to read as follows: 10 d. The tax credits for investments in qualifying 11 businesses and community-based seed capital funds 12 issued pursuant to section 15E.43 . In allocating tax 13 credits pursuant to this subsection , the authority 14 shall allocate two million dollars for purposes of this 15 paragraph, unless the authority determines that the tax 16 credits awarded will be less than that amount. 17 Sec. ___. Section 15E.41, Code 2015, is amended by 18 striking the section and inserting in lieu thereof the 19 following: 20 15E.41 Purpose. 21 The purpose of this division is to stimulate job 22 growth, create wealth, and accelerate the creation 23 of new ventures by using investment tax credits to 24 incentivize the transfer of capital from investors to 25 entrepreneurs, particularly during early-stage growth. 26 Sec. ___. Section 15E.42, Code 2015, is amended by 27 adding the following new subsection: 28 NEW SUBSECTION . 2A. “Entrepreneurial assistance 29 program” includes the entrepreneur investment awards 30 program administered under section 15E.362, the receipt 31 of services from a service provider engaged pursuant 32 to section 15.411, subsection 1, or the program 33 administered under section 15.411, subsection 2. 34 Sec. ___. Section 15E.42, subsection 3, Code 2015, 35 is amended to read as follows: 36 3. “Investor” means a person making a cash 37 investment in a qualifying business or in a 38 community-based seed capital fund . “Investor” does not 39 include a person that holds at least a seventy percent 40 ownership interest as an owner, member, or shareholder 41 in a qualifying business. 42 Sec. ___. Section 15E.42, subsection 4, Code 2015, 43 is amended by striking the subsection. 44 Sec. ___. Section 15E.43, subsections 1 and 2, Code 45 2015, are amended to read as follows: 46 1. a. For tax years beginning on or after January 47 1, 2002 2015 , a tax credit shall be allowed against the 48 taxes imposed in chapter 422, divisions II, III, and V, 49 and in chapter 432, and against the moneys and credits 50 -38- H1365.2104 (1) 86 tm/rn 38/ 52
tax imposed in section 533.329, for a portion of a 1 taxpayer’s equity investment, as provided in subsection 2 2 , in a qualifying business or a community-based seed 3 capital fund . 4 b. An individual may claim a tax credit under this 5 paragraph section of a partnership, limited liability 6 company, S corporation, estate, or trust electing 7 to have income taxed directly to the individual. 8 The amount claimed by the individual shall be based 9 upon the pro rata share of the individual’s earnings 10 from the partnership, limited liability company, S 11 corporation, estate, or trust. 12 b. c. A tax credit shall be allowed only for an 13 investment made in the form of cash to purchase equity 14 in a qualifying business or in a community-based seed 15 capital fund. A taxpayer that has received a tax 16 credit for an investment in a community-based seed 17 capital fund shall not claim the tax credit prior to 18 the third tax year following the tax year in which the 19 investment is made. Any tax credit in excess of the 20 taxpayer’s liability for the tax year may be credited 21 to the tax liability for the following five years or 22 until depleted, whichever is earlier. A tax credit 23 shall not be carried back to a tax year prior to the 24 tax year in which the taxpayer redeems the tax credit . 25 c. In the case of a tax credit allowed against the 26 taxes imposed in chapter 422, division II , where the 27 taxpayer died prior to redeeming the entire tax credit, 28 the remaining credit can be redeemed on the decedent’s 29 final income tax return. 30 d. For a tax credit claimed against the taxes 31 imposed in chapter 422, division II, any tax credit in 32 excess of the tax liability is refundable. In lieu of 33 claiming a refund, the taxpayer may elect to have the 34 overpayment shown on the taxpayer’s final, completed 35 return credited to the tax liability for the following 36 tax year. For a tax credit claimed against the taxes 37 imposed in chapter 422, divisions III and V, and in 38 chapter 432, and against the moneys and credits tax 39 imposed in section 533.329, any tax credit in excess 40 of the taxpayer’s liability for the tax year may be 41 credited to the tax liability for the following three 42 years or until depleted, whichever is earlier. A tax 43 credit shall not be carried back to a tax year prior 44 to the tax year in which the taxpayer redeems the tax 45 credit. 46 2. a. A The amount of the tax credit shall equal 47 twenty twenty-five percent of the taxpayer’s equity 48 investment. 49 b. The maximum amount of a tax credit for an 50 -39- H1365.2104 (1) 86 tm/rn 39/ 52
investment by an investor in any one qualifying 1 business shall be fifty thousand dollars. Each year, 2 an investor and all affiliates of the investor shall 3 not claim tax credits under this section for more 4 than five different investments in five different 5 qualifying businesses that may be issued per calendar 6 year to a natural person and the person’s spouse or 7 dependent shall not exceed one hundred thousand dollars 8 combined. For purposes of this paragraph, a tax credit 9 issued to a partnership, limited liability company, S 10 corporation, estate, or trust electing to have income 11 taxed directly to the individual shall be deemed to be 12 issued to the individual owners based upon the pro rata 13 share of the individual’s earnings from the entity. 14 For purposes of this paragraph, “dependent” has the 15 same meaning as provided by the Internal Revenue Code . 16 c. The maximum amount of tax credits that may be 17 issued per calendar year for equity investments in any 18 one qualifying business shall not exceed five hundred 19 thousand dollars. 20 Sec. ___. Section 15E.43, subsections 5 and 7, Code 21 2015, are amended to read as follows: 22 5. A tax credit shall not be transferable 23 transferred to any other taxpayer person . 24 7. The authority shall develop a system for 25 registration and authorization issuance of tax credits 26 authorized pursuant to this division and shall control 27 distribution of all tax credits distributed credit 28 certificates to investors pursuant to this division . 29 The authority shall develop rules for the qualification 30 and administration of qualifying businesses and 31 community-based seed capital funds . The department of 32 revenue shall adopt these criteria as administrative 33 rules and any other rules pursuant to chapter 17A as 34 necessary for the administration of this division . 35 Sec. ___. Section 15E.43, subsections 6 and 8, Code 36 2015, are amended by striking the subsections. 37 Sec. ___. Section 15E.44, subsection 2, paragraph 38 c, Code 2015, is amended by striking the paragraph and 39 inserting in lieu thereof the following: 40 c. The business is participating in an 41 entrepreneurial assistance program. The authority may 42 waive this requirement if a business establishes that 43 its owners, directors, officers, and employees have an 44 appropriate level of experience such that participation 45 in an entrepreneurial assistance program would not 46 materially change the prospects of the business. The 47 authority may consult with outside service providers in 48 consideration of such a waiver. 49 Sec. ___. Section 15E.44, subsection 2, paragraphs 50 -40- H1365.2104 (1) 86 tm/rn 40/ 52
e and f, Code 2015, are amended to read as follows: 1 e. The business shall not have a net worth that 2 exceeds five ten million dollars. 3 f. The business shall have secured all of the 4 following at the time of application for tax credits: 5 (1) At least two investors. 6 (2) total Total equity financing, near equity 7 financing, binding investment commitments, or some 8 combination thereof, equal to at least two hundred 9 fifty five hundred thousand dollars , from investors. 10 For purposes of this subparagraph, “investor” includes 11 a person who executes a binding investment commitment 12 to a business . 13 Sec. ___. Section 15E.46, Code 2015, is amended to 14 read as follows: 15 15E.46 Reports Confidentiality —— reports . 16 1. Except as provided in subsection 2, all 17 information or records in the possession of the 18 authority with respect to this division shall be 19 presumed by the authority to be a trade secret 20 protected under chapter 550 or common law and shall be 21 kept confidential by the authority unless otherwise 22 ordered by a court. 23 2. All of the following shall be considered public 24 information under chapter 22: 25 a. The identity of a qualifying business. 26 b. The identity of an investor and the qualifying 27 business in which the investor made an equity 28 investment. 29 c. The number of tax credit certificates issued by 30 the authority. 31 d. The total dollar amount of tax credits issued by 32 the authority. 33 3. The authority shall publish an annual report 34 of the activities conducted pursuant to this division 35 and shall submit the report to the governor and the 36 general assembly. The report shall include a listing 37 of eligible qualifying businesses and the number of 38 tax credit certificates and the amount of tax credits 39 issued by the authority. 40 Sec. ___. Section 15E.52, subsection 4, Code 2015, 41 is amended to read as follows: 42 4. A taxpayer shall not claim a tax credit under 43 this section if the taxpayer is a venture capital 44 investment fund allocation manager for the Iowa fund 45 of funds created in section 15E.65 or an investor that 46 receives a tax credit for the same investment in a 47 qualifying business as described in section 15E.44 or 48 in a community-based seed capital fund as described in 49 section 15E.45 , Code 2015 . 50 -41- H1365.2104 (1) 86 tm/rn 41/ 52
Sec. ___. Section 422.11F, subsection 1, Code 2015, 1 is amended to read as follows: 2 1. The taxes imposed under this division , less 3 the credits allowed under section 422.12 , shall be 4 reduced by an investment tax credit authorized pursuant 5 to section 15E.43 for an investment in a qualifying 6 business or a community-based seed capital fund . 7 Sec. ___. Section 422.33, subsection 12, paragraph 8 a, Code 2015, is amended to read as follows: 9 a. The taxes imposed under this division shall be 10 reduced by an investment tax credit authorized pursuant 11 to section 15E.43 for an investment in a qualifying 12 business or a community-based seed capital fund . 13 Sec. ___. Section 422.60, subsection 5, paragraph 14 a, Code 2015, is amended to read as follows: 15 a. The taxes imposed under this division shall be 16 reduced by an investment tax credit authorized pursuant 17 to section 15E.43 for an investment in a qualifying 18 business or a community-based seed capital fund . 19 Sec. ___. Section 432.12C, subsection 1, Code 2015, 20 is amended to read as follows: 21 1. The tax imposed under this chapter shall be 22 reduced by an investment tax credit authorized pursuant 23 to section 15E.43 for an investment in a qualifying 24 business or a community-based seed capital fund . 25 Sec. ___. REPEAL. Section 15E.45, Code 2015, is 26 repealed. 27 Sec. ___. TAX CREDIT CLAIMS. Tax credits for 28 equity investments in qualifying businesses made on 29 or after the effective date of this division of this 30 Act shall not be issued by the economic development 31 authority prior to July 1, 2016, and shall not be 32 claimed by a taxpayer prior to September 1, 2016. 33 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 34 of this Act, being deemed of immediate importance, 35 takes effect upon enactment. 36 Sec. ___. APPLICABILITY. Unless otherwise provided 37 in this division of this Act, this division of this Act 38 applies to equity investments in a qualifying business 39 made on or after the effective date of this division of 40 this Act, and equity investments made in a qualifying 41 business or community-based seed capital fund prior to 42 the effective date of this division of this Act shall 43 be governed by sections 15E.41 through 15E.46, 422.11F, 44 422.33, 422.60, 432.12C, and 533.329, Code 2015. 45 Sec. ___. APPLICABILITY. The sections of this 46 division of this Act amending section 15E.44, 47 subsection 2, apply to businesses that submit an 48 application to the economic development authority to 49 be registered as a qualifying business on or after 50 -42- H1365.2104 (1) 86 tm/rn 42/ 52
the effective date of this division of this Act, and 1 businesses that submit an application to the economic 2 development authority to be registered as a qualifying 3 business before the effective date of this division 4 of this Act shall be governed by section 15E.44, 5 subsection 2, Code 2015. 6 DIVISION ___ 7 ENTREPRENEUR INVESTMENT AWARDS PROGRAM 8 Sec. ___. Section 15E.362, Code 2015, is amended by 9 striking the section and inserting in lieu thereof the 10 following: 11 15E.362 Entrepreneur investment awards program. 12 1. For purposes of this division, unless the 13 context otherwise requires: 14 a. “Business development services” includes but 15 is not limited to corporate development services, 16 business model development services, business planning 17 services, marketing services, financial strategies and 18 management services, mentoring and management coaching, 19 and networking services. 20 b. “Eligible entrepreneurial assistance provider” 21 means a person meeting the requirements of subsection 22 3. 23 c. “Financial assistance” means the same as defined 24 in section 15.327. 25 d. “Program” means the entrepreneur investment 26 awards program administered pursuant to this division. 27 2. The authority shall establish and administer 28 an entrepreneur investment awards program for 29 purposes of providing financial assistance to eligible 30 entrepreneurial assistance providers that provide 31 technical and financial assistance to entrepreneurs and 32 start-up companies seeking to create, locate, or expand 33 a business in the state. Financial assistance under 34 the program shall be provided from the entrepreneur 35 investment awards program fund created in section 36 15E.363. 37 3. In order to be eligible for financial assistance 38 under the program an entrepreneurial assistance 39 provider must meet all of the following requirements: 40 a. The provider must have its principal place of 41 operations located in this state. 42 b. The provider must offer a comprehensive set 43 of business development services to emerging and 44 early-stage innovation companies to assist in the 45 creation, location, growth, and long-term success of 46 the company in this state. 47 c. The business development services may be 48 performed at the physical location of the provider or 49 the company. 50 -43- H1365.2104 (1) 86 tm/rn 43/ 52
d. The business development services may be 1 provided in consideration of equity participation in 2 the company, a fee for services, a membership agreement 3 with the company, or any combination thereof. 4 4. Entrepreneurial assistance providers may apply 5 for financial assistance under the program in the 6 manner and form prescribed by the authority. 7 5. The economic development authority board in its 8 discretion may approve, deny, or defer each application 9 for financial assistance under the program from 10 persons it determines to be an eligible entrepreneurial 11 assistance provider. 12 6. Subject to subsection 7, the amount of financial 13 assistance awarded to an eligible entrepreneurial 14 assistance provider shall be within the discretion of 15 the authority. 16 7. a. The maximum amount of financial assistance 17 awarded to an eligible entrepreneurial assistance 18 provider shall not exceed two hundred thousand dollars. 19 b. The maximum amount of financial assistance 20 provided under the program shall not exceed one million 21 dollars in a fiscal year. 22 8. The authority shall award financial assistance 23 on a competitive basis. In making awards of financial 24 assistance, the authority may develop scoring criteria 25 and establish minimum requirements for the receipt of 26 financial assistance under the program. In making 27 awards of financial assistance, the authority may 28 consider all of the following: 29 a. The business experience of the professional 30 staff employed or retained by the eligible 31 entrepreneurial assistance provider. 32 b. The business plan review capacity of the 33 professional staff of the eligible entrepreneurial 34 assistance provider. 35 c. The expertise in all aspects of business 36 disciplines of the professional staff of the eligible 37 entrepreneurial assistance provider. 38 d. The access of the eligible entrepreneurial 39 assistance provider to external service providers, 40 including legal, accounting, marketing, and financial 41 services. 42 e. The service model and likelihood of success of 43 the eligible entrepreneurial assistance provider and 44 its similarity to other successful entrepreneurial 45 assistance providers in the country. 46 f. The financial need of the eligible 47 entrepreneurial assistance provider. 48 9. Financial assistance awarded to an eligible 49 entrepreneurial assistance provider shall only be 50 -44- H1365.2104 (1) 86 tm/rn 44/ 52
used for the purpose of operating costs incurred by 1 the eligible entrepreneurial assistance provider in 2 providing business development services to emerging 3 and early-stage innovation companies in this state. 4 Such financial assistance shall not be distributed to 5 owners or investors of the company to which business 6 development services are provided and shall not 7 be distributed to other persons assisting with the 8 provision of business development services to the 9 company. 10 10. The authority may contract with outside service 11 providers for assistance with the program or may 12 delegate the administration of the program to the Iowa 13 innovation corporation pursuant to section 15.106B. 14 11. The authority may make client referrals to 15 eligible entrepreneurial assistance providers. 16 Sec. ___. Section 15E.363, subsection 3, Code 2015, 17 is amended to read as follows: 18 3. The Moneys credited to the fund are appropriated 19 to the authority and shall be used to provide grants 20 under the entrepreneur investment awards program 21 established in section 15E.362 financial assistance 22 under the program . 23 DIVISION ___ 24 WORKFORCE HOUSING TAX INCENTIVES PROGRAM 25 Sec. ___. Section 15.354, subsection 3, paragraph 26 e, Code 2015, is amended to read as follows: 27 e. (1) Upon review of the examination and 28 verification of the amount of the qualifying new 29 investment, the authority may issue a tax credit 30 certificate to the housing business stating the amount 31 of workforce housing investment tax credits under 32 section 15.355 the eligible housing business may claim. 33 (2) If upon review of the examination in 34 subparagraph (1) the authority determines that a 35 housing project has incurred project costs in excess of 36 the amount submitted in the application made pursuant 37 to subsection 1, the authority shall do one of the 38 following: 39 (a) If the project costs do not cause the housing 40 project’s average dwelling unit cost to exceed the 41 applicable maximum amount authorized in section 15.353, 42 subsection 3, the authority may consider the agreement 43 fulfilled and may issue a tax credit certificate. 44 (b) If the project costs cause the housing 45 project’s average dwelling unit cost to exceed the 46 applicable maximum amount authorized in section 47 15.353, subsection 3, but does not cause the average 48 dwelling unit cost to exceed one hundred ten percent 49 of such applicable maximum amount, the authority 50 -45- H1365.2104 (1) 86 tm/rn 45/ 52
may consider the agreement fulfilled and may issue a 1 tax credit certificate. In such case, the authority 2 shall reduce the amount of tax incentives the eligible 3 housing project may claim under section 15.355, 4 subsections 2 and 3, by the same percentage that the 5 housing project’s average dwelling unit cost exceeds 6 the applicable maximum amount under section 15.353, 7 subsection 3, and such tax incentive reduction shall 8 be reflected on the tax credit certificate. If 9 the authority issues a certificate pursuant to this 10 subparagraph division, the department of revenue shall 11 accept the certificate notwithstanding that the housing 12 project’s average dwelling unit costs exceeds the 13 maximum amount specified in section 15.353, subsection 14 3. 15 (c) If the project costs cause the housing 16 project’s average dwelling unit cost to exceed one 17 hundred ten percent of the applicable maximum amount 18 authorized in 15.353, subsection 3, the authority 19 shall determine the eligible housing business to be in 20 default under the agreement and shall not issue a tax 21 credit certificate. 22 Sec. ___. Section 15.355, subsection 2, Code 2015, 23 is amended to read as follows: 24 2. A housing business may claim a refund of the 25 sales and use taxes paid under chapter 423 that are 26 directly related to a housing project. The refund 27 available pursuant to this subsection shall be as 28 provided in section 15.331A to the extent applicable 29 for purposes of this program , excluding subsection 30 2, paragraph “c” , of that section . For purposes of 31 the program, the term “project completion” , as used 32 in section 15.331A, shall mean the date on which the 33 authority notifies the department of revenue that all 34 applicable requirements of an agreement entered into 35 pursuant to section 15.354 are satisfied. 36 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 37 of this Act, being deemed of immediate importance, 38 takes effect upon enactment. 39 Sec. ___. RETROACTIVE APPLICABILITY. This division 40 of this Act applies retroactively to May 30, 2014, for 41 all agreements entered into pursuant to Code section 42 15.354 on or after that date. 43 DIVISION ___ 44 MISCELLANEOUS CHANGES TO ECONOMIC DEVELOPMENT AUTHORITY 45 PROGRAMS 46 Sec. ___. Section 15.293B, subsection 4, Code 2015, 47 is amended to read as follows: 48 4. A registered project shall be completed within 49 thirty months of the date the project was registered 50 -46- H1365.2104 (1) 86 tm/rn 46/ 52
unless the authority , upon recommendation of the 1 council and approval of the board, provides additional 2 time to complete the project. A project shall not be 3 provided more than twelve months of additional time. 4 If the registered project is not completed within the 5 time required, the project is not eligible to claim a 6 tax credit provided in section 15.293A . 7 Sec. ___. SPECIAL PROJECT EXTENSION. 8 Notwithstanding any other provision of law to the 9 contrary, the economic development authority may extend 10 the project completion date for a project awarded tax 11 incentives under both the redevelopment tax credit 12 program in sections 15.293A and 15.293B and the housing 13 enterprise zone tax incentives program in section 14 15E.193B, Code 2014, if the property that is the 15 subject of the project suffered a catastrophic fire 16 during the 2014 calendar year. 17 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 18 of this Act, being deemed of immediate importance, 19 takes effect upon enactment. 20 Sec. ___. RETROACTIVE APPLICABILITY. The 21 section of this division of this Act amending Code 22 section 15.293B applies retroactively to qualifying 23 redevelopment project agreements entered into on or 24 after July 1, 2010, for which a request for a project 25 extension is submitted to the economic development 26 authority on or after January 1, 2015. 27 DIVISION ___ 28 HOUSING ENTERPRISE TAX CREDIT 29 Sec. ___. 2014 Iowa Acts, chapter 1130, is amended 30 by adding the following new section: 31 NEW SECTION . SEC. 41A. Notwithstanding the section 32 of this Act repealing section 15E.193B, the economic 33 development authority may enter into an agreement 34 and issue housing enterprise tax credits to a housing 35 business if all the following conditions are met: 36 1. The city or county in which the enterprise 37 zone is located mailed, or caused to be mailed, the 38 necessary program application forms on or after June 1, 39 2014, and prior to July 1, 2014, but the applications 40 were not received by the economic development 41 authority. The economic development authority may 42 accept an affidavit by a city to confirm timely mailing 43 of the application forms, notwithstanding section 44 622.105. 45 2. The application forms submitted pursuant to 46 subsection 1 were approved by all necessary governing 47 bodies and commissions of the city or county as 48 required by chapter 15E, division XVIII, Code 2014. 49 3. The economic development authority determines 50 -47- H1365.2104 (1) 86 tm/rn 47/ 52
the housing business would otherwise be eligible under 1 section 15E.193B, Code 2014. 2 4. The city or county and the eligible housing 3 business meet all other requirements of the housing 4 enterprise tax credit program under chapter 15E, 5 division XVIII, Code 2014, and the agreement to be 6 entered into pursuant to this section. 7 Sec. ___. 2014 Iowa Acts, chapter 1130, section 43, 8 subsection 1, is amended to read as follows: 9 1. On or after the effective date of this division 10 of this Act, a city or county shall not create an 11 enterprise zone under chapter 15E, division XVIII, 12 or enter into a new agreement or amend an existing 13 agreement under chapter 15E, division XVIII , unless 14 otherwise authorized in this Act . 15 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 16 of this Act, being deemed of immediate importance, 17 takes effect upon enactment. 18 Sec. ___. RETROACTIVE APPLICABILITY. This division 19 of this Act applies retroactively to July 1, 2014. 20 DIVISION ___ 21 ELIGIBILITY VERIFICATION —— UNEMPLOYMENT INSURANCE 22 Sec. ___. NEW SECTION . 96.55 Eligibility 23 verification procedures. 24 1. The department shall establish procedures to 25 accurately verify the eligibility to receive benefits 26 of each individual filing a claim for benefits in order 27 to prevent payment of fraudulent or erroneous benefits. 28 The procedures shall include but not be limited to the 29 following components: 30 a. A requirement that each individual filing 31 a claim for benefits provide correct answers to 32 randomized questions relating to the individual’s 33 identity. 34 b. A process to prevent an individual who is 35 ineligible for benefits due to the individual’s 36 incarceration in a jail, prison, or other correctional 37 institution or facility from filing a claim for 38 benefits or receiving benefits. The department shall 39 coordinate the administration of this process with 40 the department of corrections and federal, state, 41 and local law enforcement agencies. The department 42 of corrections and state and local law enforcement 43 agencies shall cooperate with the department in the 44 administration of this process. 45 2. The department may utilize one or more requests 46 for proposals to administer this section. The 47 department may enter into agreements pursuant to 48 chapter 28E to administer this section. The department 49 shall utilize existing information technology resources 50 -48- H1365.2104 (1) 86 tm/rn 48/ 52
of state and local government to administer this 1 section where practicable. 2 Sec. ___. IMPLEMENTATION —— REPORT. The department 3 of workforce development shall implement the procedures 4 required by this division of this Act no later than 5 June 30, 2016. The department shall submit a report 6 on the department’s progress in implementing the 7 procedures required by this division of this Act to 8 the general assembly by December 15, 2015. The report 9 shall include any statutory changes necessary to 10 facilitate the implementation of this division of this 11 Act. 12 DIVISION ___ 13 REFUND FRAUD —— INCOME TAXES 14 Sec. ___. Section 421.17, subsection 23, Code 2015, 15 is amended to read as follows: 16 23. To develop, modify, or contract with vendors to 17 create or administer systems or programs which identify 18 nonfilers of returns or nonpayers of taxes administered 19 by the department and to identify and prevent the 20 issuance of fraudulent or erroneous refunds . Fees 21 for services, reimbursements, costs incurred by the 22 department, or other remuneration may be funded from 23 the amount of tax, penalty, or interest actually 24 collected and shall be paid only after the amount is 25 collected. An amount is appropriated from the amount 26 of tax, penalty, and interest actually collected, not 27 to exceed the amount collected, which is sufficient 28 to pay for services, reimbursement, costs incurred by 29 the department, or other remuneration pursuant to this 30 subsection . Vendors entering into a contract with the 31 department pursuant to this subsection are subject to 32 the requirements and penalties of the confidentiality 33 laws of this state regarding tax information. The 34 director shall report annually to the legislative 35 services agency and the chairpersons and ranking 36 members of the ways and means committees on the amount 37 of costs incurred and paid during the previous fiscal 38 year pursuant to this subsection and the incidence 39 of refund fraud and the costs incurred and amounts 40 prevented from issuance during the previous fiscal year 41 pursuant to this subsection . 42 Sec. ___. IMPLEMENTATION —— REPORT. The director 43 of revenue shall implement the procedures required 44 by this division of this Act no later than January 45 1, 2016. The director shall submit a report on the 46 director’s progress in implementing the procedures 47 required by this division of this Act to the general 48 assembly by October 3, 2016. The report shall include 49 any statutory changes necessary to facilitate the 50 -49- H1365.2104 (1) 86 tm/rn 49/ 52
implementation of this division of this Act. 1 DIVISION ___ 2 ELIGIBILITY VERIFICATION —— MEDICAID 3 Sec. ___. MEDICAID PROGRAM —— ELIGIBILITY 4 VERIFICATION SYSTEM. The department of human services 5 shall ensure during the fiscal year beginning July 6 1, 2015, that the department’s Medicaid program 7 eligibility system, the eligibility integrated 8 application solution (ELIAS), is capable of accurately 9 verifying the identity of individuals for the purposes 10 of initial eligibility and redetermination of 11 eligibility for the Medicaid program. The department 12 shall submit a report on the department’s progress 13 in implementing this section to the general assembly 14 by December 15, 2015. The report shall include 15 any statutory changes necessary to facilitate the 16 implementation of this section. 17 DIVISION ___ 18 EXEMPTION FROM FRANCHISE FEES —— STATE AGENCIES 19 Sec. ___. Section 364.2, subsection 4, paragraph 20 f, subparagraph (2), Code 2015, is amended to read as 21 follows: 22 (2) Franchise fees collected pursuant to an 23 ordinance in effect on May 26, 2009, shall be deposited 24 in the city’s general fund and such fees collected in 25 excess of the amounts necessary to inspect, supervise, 26 and otherwise regulate the franchise may be used by 27 the city for any other purpose authorized by law. 28 Franchise fees collected pursuant to an ordinance 29 that is adopted or amended on or after May 26, 2009, 30 to increase the percentage rate at which franchise 31 fees are assessed shall be credited to the franchise 32 fee account within the city’s general fund and used 33 pursuant to section 384.3A . If a city franchise fee 34 is assessed to customers of a franchise, the fee shall 35 not be assessed to the city as a customer. Before a 36 city adopts or amends a franchise fee rate ordinance 37 or franchise ordinance to increase the percentage 38 rate at which franchise fees are assessed, a revenue 39 purpose statement shall be prepared specifying the 40 purpose or purposes for which the revenue collected 41 from the increased rate will be expended. If property 42 tax relief is listed as a purpose, the revenue purpose 43 statement shall also include information regarding the 44 amount of the property tax relief to be provided with 45 revenue collected from the increased rate. The revenue 46 purpose statement shall be published as provided in 47 section 362.3 . 48 Sec. ___. Section 364.2, subsection 4, paragraph 49 f, Code 2015, is amended by adding the following new 50 -50- H1365.2104 (1) 86 tm/rn 50/ 52
subparagraph: 1 NEW SUBPARAGRAPH . (4) (a) If a city franchise 2 fee is assessed to customers of a franchise or if a 3 franchise fee or substantially similar fee is assessed 4 by the franchisee to customers of the franchise for the 5 payment of a franchise fee assessed by the city to the 6 franchisee, the fee shall not be assessed to the city 7 or to a state agency as a customer. 8 (b) For purposes of this subparagraph, “state 9 agency” means any executive, judicial, or legislative 10 department, commission, board, institution, division, 11 bureau, office, agency, or other entity of state 12 government. 13 Sec. ___. APPLICABILITY. This division of this 14 Act applies to franchise fees assessed by a city to 15 a customer on or after July 1, 2015, pursuant to an 16 ordinance adopted before, on, or after that date. 17 This division of this Act also applies to franchise 18 fees or other substantially similar fees assessed 19 by a franchisee to a customer on or after July 1, 20 2015, to pay a franchise fee assessed by the city to 21 the franchisee pursuant to an ordinance or franchise 22 agreement adopted before, on, or after July 1, 2015. 23 DIVISION ___ 24 PAYMENTS IN LIEU OF TAXES AGREEMENTS 25 Sec. ___. NEW SECTION . 262.9D Agreements for 26 payments in lieu of taxes. 27 1. For purposes of this section: 28 a. “Payments in lieu of taxes” are payments made 29 as a substitute for property taxes not levied on real 30 property as a result of a property tax exemption, which 31 payments are made by an institution under the control 32 of the board to a political subdivision in which the 33 institution is located pursuant to an agreement entered 34 into by the board or an institution under the control 35 of the board and the political subdivision. Payments 36 in lieu of taxes are not payments made in accordance 37 with a contract for services under section 364.19 or 38 other service agreements authorized in statute. 39 b. “Political subdivision” means a city, county, 40 school district, or any other public body or 41 corporation of this state that has power to levy 42 or certify a tax or sum of money to be collected by 43 taxation or otherwise derives funds from a property tax 44 levied against taxable property situated within the 45 political subdivision. 46 2. Any agreement providing for payments in lieu of 47 taxes between the board or an institution under the 48 control of the board and a political subdivision shall 49 be approved by the board at a regular meeting in open 50 -51- H1365.2104 (1) 86 tm/rn 51/ 52
session prior to the execution of such an agreement. 1 A request for board approval of an agreement for 2 payments in lieu of taxes shall include a detailed 3 explanation of the need for the agreement, the manner 4 in which payments are calculated, and concurrence from 5 the appropriate local assessor as to the assessment 6 calculation for establishing the amount of each payment 7 under the agreement. The agreement shall also include 8 a termination date for the agreement and shall ensure, 9 to the extent permitted by law, that the payments made 10 under the agreement are apportioned in the same manner 11 as property taxes are apportioned among the political 12 subdivisions in which the property is located. 13 Sec. ___. APPLICABILITY. This division of this Act 14 applies to any agreement for payments in lieu of taxes 15 entered into on or after July 1, 2015. > 16 12. By renumbering, redesignating, and correcting 17 internal references as necessary. 18 ______________________________ RIZER of Linn -52- H1365.2104 (1) 86 tm/rn 52/ 52 #12.