Senate File 510 H-1371 Amend the amendment, H-1365, to Senate File 510, 1 as amended, passed, and reprinted by the Senate, as 2 follows: 3 1. Page 1, after line 4 by inserting: 4 < DIVISION ___ 5 ONLINE LEARNING PROGRAMS 6 Sec. ___. Section 256.7, subsection 32, paragraph 7 c, Code 2015, is amended to read as follows: 8 c. Adopt rules that limit the statewide enrollment 9 of pupils in educational instruction and course content 10 that are delivered primarily over the internet to not 11 more than eighteen one-hundredths of one percent of 12 the statewide enrollment of all pupils, and that limit 13 the number of pupils participating in open enrollment 14 for purposes of receiving educational instruction 15 and course content that are delivered primarily over 16 the internet to no more than one percent of a sending 17 district’s enrollment. Until June 30, 2015 2017 , 18 students shall not apply if the limitations would 19 prevent siblings from enrolling in the same school 20 district or if a sending district determines that 21 the educational needs of a physically or emotionally 22 fragile student would be best served by educational 23 instruction and course content that are delivered 24 primarily over the internet. Students who meet the 25 requirements of section 282.18 may participate in open 26 enrollment under this paragraph “c” for purposes of 27 enrolling only in the CAM community school district or 28 the Clayton Ridge community school district. 29 (01) The department, in collaboration with the 30 international association for K-12 online learning, 31 shall annually collect data on student performance in 32 educational instruction and course content that are 33 delivered primarily over the internet pursuant to this 34 paragraph “c” . The department shall include such data 35 in its annual report to the general assembly pursuant 36 to subparagraph (3) and shall post the data on the 37 department’s internet site. 38 (1) School districts providing educational 39 instruction and course content that are delivered 40 primarily over the internet pursuant to this paragraph 41 “c” shall annually submit to the department, in the 42 manner prescribed by the department, data that includes 43 but is not limited to student the following: 44 (a) Student achievement and demographic 45 characteristics , retention . 46 (b) Retention rates , and the . 47 (c) The percentage of enrolled students’ active 48 participation in extracurricular activities. 49 (d) Academic proficiency levels, consistent with 50 -1- H1365.2106 (2) 86 tm/rn 1/ 10 #1.

requirements applicable to all school districts and 1 accredited nonpublic schools in this state. 2 (e) Academic growth measures, which shall include 3 either of the following: 4 (i) Entry and exit assessments in, at a minimum, 5 math and English for elementary and middle school 6 students, and additional subjects, including science, 7 for high school students. 8 (ii) State-required assessments that track 9 year-over-year improvements in academic proficiency. 10 (f) Academic mobility. To facilitate the tracking 11 of academic mobility, school districts shall request 12 the following information from the parent or guardian 13 of a student enrolled in educational instruction and 14 course content that are delivered primarily over the 15 internet pursuant to this paragraph “c” : 16 (i) For a student newly enrolling, the reasons for 17 choosing such enrollment. 18 (ii) For a student terminating enrollment, the 19 reasons for terminating such enrollment. 20 (g) Student progress toward graduation. 21 Measurement of such progress shall account for specific 22 characteristics of each enrolled student, including 23 but not limited to age and course credit accrued prior 24 to enrollment in educational instruction and course 25 content that are delivered primarily over the internet 26 pursuant to this paragraph “c” , and shall be consistent 27 with evidence-based best practices. 28 (2) The department shall conduct annually a survey 29 of not less than ten percent of the total number of 30 students enrolled as authorized under this paragraph 31 “c” and section 282.18 , and not less than one hundred 32 percent of the students in those districts who are 33 enrolled as authorized under this paragraph “c” and 34 section 282.18 and who are eligible for free or reduced 35 price meals under the federal National School Lunch 36 Act and the federal Child Nutrition Act of 1966 , 42 37 U.S.C. §§1751-1785 , to determine whether students are 38 enrolled under this paragraph “c” and section 282.18 39 to receive educational instruction and course content 40 primarily over the internet or are students who are 41 receiving competent private instruction from a licensed 42 practitioner provided through a school district 43 pursuant to chapter 299A . 44 (3) The department shall compile and review the 45 data collected pursuant to this paragraph “c” and 46 shall submit its findings and recommendations for the 47 continued delivery of instruction and course content by 48 school districts pursuant to this paragraph “c” , in a 49 report to the general assembly by January 15 annually. 50 -2- H1365.2106 (2) 86 tm/rn 2/ 10

(4) This paragraph “c” is repealed July 1, 2015. 1 School districts providing educational instruction 2 and course content that are delivered primarily over 3 the internet pursuant to this paragraph “c” shall 4 comply with the following requirements relating to such 5 instruction and content: 6 (a) Monitoring and verifying full-time student 7 enrollment, timely completion of graduation 8 requirements, course credit accrual, and course 9 completion. 10 (b) Monitoring and verifying student progress and 11 performance in each course through a school-based 12 assessment plan that includes submission of coursework 13 and security and validity of testing. 14 (c) Conducting parent-teacher conferences. 15 (d) Administering assessments required by the state 16 to all students in a proctored setting and pursuant to 17 state law. 18 DIVISION ___ 19 HUMAN GROWTH AND DEVELOPMENT 20 Sec. ___. Section 279.50, subsections 3 and 5, Code 21 2015, are amended to read as follows: 22 3. Each school board shall annually provide to 23 a parent or guardian of any pupil enrolled in the 24 school district, information about the human growth and 25 development curriculum used in the pupil’s grade level 26 and the procedure for inspecting the instructional 27 materials prior to their use in the classroom or at any 28 educational conference or seminar . 29 5. A pupil shall not be required to take 30 instruction in human growth and development if the 31 pupil’s parent or guardian files with the appropriate 32 principal a written request that the pupil be excused 33 from the instruction. Except with the written consent 34 of a pupil’s parent or guardian, which shall be filed 35 with the appropriate school principal, a pupil shall 36 not be required to take instruction in human growth and 37 development nor attend an educational conference or 38 seminar. Notification that the written request may be 39 made shall be included in the information provided by 40 the school district. 41 DIVISION ___ 42 HEALTH CARRIER DISCLOSURES 43 Sec. ___. NEW SECTION . 514K.2 Health carrier 44 disclosures —— public internet sites. 45 1. A carrier that provides small group health 46 coverage pursuant to chapter 513B or individual health 47 coverage pursuant to chapter 513C and that offers 48 for sale a policy, contract, or plan that covers the 49 essential health benefits required pursuant to section 50 -3- H1365.2106 (2) 86 tm/rn 3/ 10

1302 of the federal Patient Protection and Affordable 1 Care Act, Pub. L. No. 111-148, and its implementing 2 regulations, shall provide to each of its enrollees 3 at the time of enrollment, and shall make available 4 to prospective enrollees and enrollees, insurance 5 producers licensed under chapter 522B, and the general 6 public, on the carrier’s internet site, all of the 7 following information in a clear and understandable 8 form for use in comparing policies, contracts, and 9 plans, and coverage and premiums: 10 a. Any exclusions from coverage and any 11 restrictions on the use or quantity of covered items 12 and services in each category of benefits, including 13 prescription drugs and drugs administered by a 14 physician or clinic. 15 b. Any items or services, including prescription 16 drugs, that have a coinsurance requirement where the 17 cost-sharing required depends on the cost of the item 18 or service. 19 c. The specific prescription drugs available on 20 the carrier’s formulary, the specific prescription 21 drugs covered when furnished by a physician or clinic, 22 and any clinical prerequisites or prior authorization 23 requirements for coverage of the drugs. 24 d. The specific types of specialists available 25 in the carrier’s network and the specific physicians 26 included in the carrier’s network. 27 e. The process for an enrollee to appeal a 28 carrier’s denial of coverage of an item or service 29 prescribed or ordered by the enrollee’s treating 30 physician. 31 f. How medications will specifically be included 32 in or excluded from the deductible, including a 33 description of all out-of-pocket costs that may not 34 apply to the deductible for a prescription drug. 35 2. The commissioner may adopt rules pursuant to 36 chapter 17A to administer this section. 37 3. The commissioner may impose any of the sanctions 38 provided under chapter 507B for a violation of this 39 section. 40 Sec. ___. NEW SECTION . 514K.3 Health care plan 41 internal appeals process —— disclosure requirements. 42 1. A carrier that provides small group health 43 coverage pursuant to chapter 513B or individual 44 health coverage pursuant to chapter 513C through the 45 issuance of nongrandfathered health plans as defined 46 in section 1251 of the federal Patient Protection 47 and Affordable Care Act, Pub. L. No. 111-148, and 48 in 45 C.F.R. §147.140, shall implement and maintain 49 procedures for carrying out an effective internal 50 -4- H1365.2106 (2) 86 tm/rn 4/ 10

claims and appeals process that meets the requirements 1 established pursuant to section 2719 of the federal 2 Public Health Service Act, 42 U.S.C. §300gg-19, and 45 3 C.F.R. §147.136. The procedures shall include but are 4 not limited to all of the following: 5 a. Expedited notification to enrollees of benefit 6 determinations involving urgent care. 7 b. Full and fair internal review of claims and 8 appeals. 9 c. Avoidance of conflicts of interest. 10 d. Sufficient notice to enrollees, including a 11 description of available internal claims and appeals 12 procedures, as well as information about how to 13 initiate an appeal of a denial of coverage. 14 2. a. A carrier that provides health coverage 15 as described in subsection 1 shall maintain written 16 records of all requests for internal claims and appeals 17 that are received and for which internal review was 18 performed during each calendar year. Such records 19 shall be maintained for at least three years. 20 b. A carrier that provides health coverage 21 as described in subsection 1 shall submit to the 22 commissioner, upon request, a report that includes all 23 of the following: 24 (1) The total number of requests for internal 25 review of claims and appeals that are received by the 26 carrier each year. 27 (2) The average length of time for resolution of 28 each request for internal review of a claim or appeal. 29 (3) A summary of the types of coverage or cases 30 for which internal review of a claim or appeal was 31 requested. 32 (4) Any other information required by the 33 commissioner in a format specified by rule. 34 3. A carrier that provides health coverage as 35 described in subsection 1 shall make available to 36 consumers written notice of the carrier’s internal 37 claims and appeals and internal review procedures 38 and shall maintain a toll-free consumer-assistance 39 telephone helpline that offers consumers assistance 40 with the carrier’s internal claims and appeals and 41 internal review procedures, including how to initiate, 42 complete, or submit a claim or appeal. 43 4. The commissioner may adopt rules pursuant to 44 chapter 17A to administer this section. 45 Sec. ___. APPLICABILITY. This division of this Act 46 is applicable to health insurance policies, contracts, 47 or plans that are delivered, issued for delivery, 48 continued, or renewed on or after January 1, 2016. 49 DIVISION ___ 50 -5- H1365.2106 (2) 86 tm/rn 5/ 10

HOUSING ENTERPRISE TAX CREDIT 1 Sec. ___. 2014 Iowa Acts, chapter 1130, is amended 2 by adding the following new section: 3 NEW SECTION . SEC. 41A. Notwithstanding the section 4 of this Act repealing section 15E.193B, the economic 5 development authority may enter into an agreement 6 and issue housing enterprise tax credits to a housing 7 business if all the following conditions are met: 8 1. The city or county in which the enterprise 9 zone is located mailed, or caused to be mailed, the 10 necessary program application forms on or after June 1, 11 2014, and prior to July 1, 2014, but the applications 12 were not received by the economic development 13 authority. The economic development authority may 14 accept an affidavit by a city to confirm timely mailing 15 of the application forms, notwithstanding section 16 622.105. 17 2. The application forms submitted pursuant to 18 subsection 1 were approved by all necessary governing 19 bodies and commissions of the city or county as 20 required by chapter 15E, division XVIII, Code 2014. 21 3. The economic development authority determines 22 the housing business would otherwise be eligible under 23 section 15E.193B, Code 2014. 24 4. The city or county and the eligible housing 25 business meet all other requirements of the housing 26 enterprise tax credit program under chapter 15E, 27 division XVIII, Code 2014, and the agreement to be 28 entered into pursuant to this section. 29 Sec. ___. 2014 Iowa Acts, chapter 1130, section 43, 30 subsection 1, is amended to read as follows: 31 1. On or after the effective date of this division 32 of this Act, a city or county shall not create an 33 enterprise zone under chapter 15E, division XVIII, 34 or enter into a new agreement or amend an existing 35 agreement under chapter 15E, division XVIII , unless 36 otherwise authorized in this Act . 37 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 38 of this Act, being deemed of immediate importance, 39 takes effect upon enactment. 40 Sec. ___. RETROACTIVE APPLICABILITY. This division 41 of this Act applies retroactively to July 1, 2014. 42 DIVISION ___ 43 ELIGIBILITY VERIFICATION —— UNEMPLOYMENT INSURANCE 44 Sec. ___. NEW SECTION . 96.55 Eligibility 45 verification procedures. 46 1. The department shall establish procedures to 47 accurately verify the eligibility to receive benefits 48 of each individual filing a claim for benefits in order 49 to prevent payment of fraudulent or erroneous benefits. 50 -6- H1365.2106 (2) 86 tm/rn 6/ 10

The procedures shall include but not be limited to the 1 following components: 2 a. A requirement that each individual filing 3 a claim for benefits provide correct answers to 4 randomized questions relating to the individual’s 5 identity. 6 b. A process to prevent an individual who is 7 ineligible for benefits due to the individual’s 8 incarceration in a jail, prison, or other correctional 9 institution or facility from filing a claim for 10 benefits or receiving benefits. The department shall 11 coordinate the administration of this process with 12 the department of corrections and federal, state, 13 and local law enforcement agencies. The department 14 of corrections and state and local law enforcement 15 agencies shall cooperate with the department in the 16 administration of this process. 17 2. The department may utilize one or more requests 18 for proposals to administer this section. The 19 department may enter into agreements pursuant to 20 chapter 28E to administer this section. The department 21 shall utilize existing information technology resources 22 of state and local government to administer this 23 section where practicable. 24 Sec. ___. IMPLEMENTATION —— REPORT. The department 25 of workforce development shall implement the procedures 26 required by this division of this Act no later than 27 June 30, 2016. The department shall submit a report 28 on the department’s progress in implementing the 29 procedures required by this division of this Act to 30 the general assembly by December 15, 2015. The report 31 shall include any statutory changes necessary to 32 facilitate the implementation of this division of this 33 Act. 34 DIVISION ___ 35 REFUND FRAUD —— INCOME TAXES 36 Sec. ___. Section 421.17, subsection 23, Code 2015, 37 is amended to read as follows: 38 23. To develop, modify, or contract with vendors to 39 create or administer systems or programs which identify 40 nonfilers of returns or nonpayers of taxes administered 41 by the department and to identify and prevent the 42 issuance of fraudulent or erroneous refunds . Fees 43 for services, reimbursements, costs incurred by the 44 department, or other remuneration may be funded from 45 the amount of tax, penalty, or interest actually 46 collected and shall be paid only after the amount is 47 collected. An amount is appropriated from the amount 48 of tax, penalty, and interest actually collected, not 49 to exceed the amount collected, which is sufficient 50 -7- H1365.2106 (2) 86 tm/rn 7/ 10

to pay for services, reimbursement, costs incurred by 1 the department, or other remuneration pursuant to this 2 subsection . Vendors entering into a contract with the 3 department pursuant to this subsection are subject to 4 the requirements and penalties of the confidentiality 5 laws of this state regarding tax information. The 6 director shall report annually to the legislative 7 services agency and the chairpersons and ranking 8 members of the ways and means committees on the amount 9 of costs incurred and paid during the previous fiscal 10 year pursuant to this subsection and the incidence 11 of refund fraud and the costs incurred and amounts 12 prevented from issuance during the previous fiscal year 13 pursuant to this subsection . 14 Sec. ___. IMPLEMENTATION —— REPORT. The director 15 of revenue shall implement the procedures required 16 by this division of this Act no later than January 17 1, 2016. The director shall submit a report on the 18 director’s progress in implementing the procedures 19 required by this division of this Act to the general 20 assembly by October 3, 2016. The report shall include 21 any statutory changes necessary to facilitate the 22 implementation of this division of this Act. 23 DIVISION ___ 24 ELIGIBILITY VERIFICATION —— MEDICAID 25 Sec. ___. MEDICAID PROGRAM —— ELIGIBILITY 26 VERIFICATION SYSTEM. The department of human services 27 shall ensure during the fiscal year beginning July 28 1, 2015, that the department’s Medicaid program 29 eligibility system, the eligibility integrated 30 application solution (ELIAS), is capable of accurately 31 verifying the identity of individuals for the purposes 32 of initial eligibility and redetermination of 33 eligibility for the Medicaid program. The department 34 shall submit a report on the department’s progress 35 in implementing this section to the general assembly 36 by December 15, 2015. The report shall include 37 any statutory changes necessary to facilitate the 38 implementation of this section. > 39 2. By renumbering as necessary. 40 ______________________________ HALL of Woodbury ______________________________ ABDUL-SAMAD of Polk -8- H1365.2106 (2) 86 tm/rn 8/ 10 #2.

______________________________ BENNETT of Linn ______________________________ BERRY of Black Hawk ______________________________ BROWN-POWERS of Black Hawk ______________________________ DUNKEL of Dubuque ______________________________ FORBES of Polk ______________________________ GAINES of Polk ______________________________ GASKILL of Wapello ______________________________ HANSON of Jefferson ______________________________ HUNTER of Polk ______________________________ KEARNS of Lee ______________________________ KELLEY of Jasper ______________________________ LENSING of Johnson ______________________________ MASCHER of Johnson -9- H1365.2106 (2) 86 tm/rn 9/ 10

______________________________ McCONKEY of Pottawattamie ______________________________ H. MILLER of Webster ______________________________ OLDSON of Polk ______________________________ OURTH of Warren ______________________________ PRICHARD of Floyd ______________________________ RUNNING-MARQUARDT of Linn ______________________________ SMITH of Marshall ______________________________ STAED of Linn ______________________________ STUTSMAN of Johnson ______________________________ T. TAYLOR of Linn ______________________________ THEDE of Scott ______________________________ WESSEL-KROESCHELL of Story ______________________________ WINCKLER of Scott -10- H1365.2106 (2) 86 tm/rn 10/ 10