House File 2459 H-8286 Amend the Senate amendment, H-8278, to House File 1 2459, as amended, passed, and reprinted by the House, 2 as follows: 3 1. By striking page 1, line 1, through page 20, 4 line 34, and inserting: 5 < Amend House File 2459, as amended, passed, and 6 reprinted by the House, as follows: 7 1. By striking everything after the enacting clause 8 and inserting: 9 < DIVISION I 10 EQUAL PAY TASK FORCE AND REPORT 11 Section 1. EQUAL PAY. 12 1. An equal pay task force is created. The task 13 force shall consist of seven members appointed by the 14 governor. 15 2. The task force shall study wage discrepancies 16 within public and private employment and between public 17 and private employers. 18 3. The task force shall submit a report regarding 19 its findings and its recommendations regarding 20 potential actions for the elimination and prevention 21 of such discrepancies to the governor and the general 22 assembly no later than December 22, 2017. 23 DIVISION II 24 MISCELLANEOUS PROVISIONS —— WAGE DISCRIMINATION 25 Sec. 2. ADDITIONAL UNFAIR OR DISCRIMINATORY 26 PRACTICE —— WAGE DISCRIMINATION IN EMPLOYMENT. 27 1. As stated in chapter 216, the general assembly 28 finds that the practice of discriminating against any 29 employee because of the age, race, creed, color, sex, 30 sexual orientation, gender identity, national origin, 31 religion, or disability of such employee by paying 32 wages to such employee at a rate less than the rate 33 paid to other employees does all of the following: 34 a. Unjustly discriminates against the person 35 -1- H8278.3851 (2) 86 tm/rn 1/ 21 #1.

receiving the lesser rate. 1 b. Leads to low employee morale, high turnover, and 2 frequent labor unrest. 3 c. Discourages employees paid at lesser wage rates 4 from training for higher level jobs. 5 d. Curtails employment opportunities, decreases 6 employees’ mobility, and increases labor costs. 7 e. Impairs purchasing power and threatens the 8 maintenance of an adequate standard of living by such 9 employees and their families. 10 f. Prevents optimum utilization of the state’s 11 available labor resources. 12 g. Threatens the well-being of citizens of this 13 state and adversely affects the general welfare. 14 2. As stated in section 216.6A, it remains 15 unfair or discriminatory practice for any employer 16 or agent of any employer to discriminate against 17 any employee because of the age, race, creed, color, 18 sex, sexual orientation, gender identity, national 19 origin, religion, or disability of such employee by 20 paying wages to such employee at a rate less than the 21 rate paid to other employees who are employed within 22 the same establishment for equal work on jobs, the 23 performance of which requires equal skill, effort, and 24 responsibility, and which are performed under similar 25 working conditions. As also stated in section 216.6A, 26 an employer or agent of an employer who is paying wages 27 to an employee at a rate less than the rate paid to 28 other employees in violation of this section shall not 29 remedy the violation by reducing the wage rate of any 30 employee. 31 DIVISION III 32 STANDING APPROPRIATIONS AND RELATED MATTERS 33 Sec. 3. 2015 Iowa Acts, chapter 138, section 3, is 34 amended by adding the following new subsection: 35 -2- H8278.3851 (2) 86 tm/rn 2/ 21

NEW SUBSECTION . 4. For the peace officers’ 1 retirement, accident, and disability system retirement 2 fund under section 97A.11A: 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 4 Sec. 4. 2015 Iowa Acts, chapter 138, is amended by 5 adding the following new section: 6 NEW SECTION . SEC. 5A. GENERAL ASSEMBLY. 7 1. The appropriations made pursuant to section 8 2.12 for the expenses of the general assembly and 9 legislative agencies for the fiscal year beginning July 10 1, 2016, and ending June 30, 2017, are reduced by the 11 following amount: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,850,000 13 2. The budgeted amounts for the general assembly 14 and legislative agencies for the fiscal year beginning 15 July 1, 2016, may be adjusted to reflect the unexpended 16 budgeted amounts from the previous fiscal year. 17 3. Annual membership dues for organizations, 18 associations, and conferences shall not be paid from 19 moneys appropriated pursuant to section 2.12. 20 4. Costs for out-of-state travel and per diems 21 for out-of-state travel shall not be paid from moneys 22 appropriated pursuant to section 2.12. 23 Sec. 5. 2015 Iowa Acts, chapter 138, is amended by 24 adding the following new section: 25 NEW SECTION . SEC. 7A. Section 257.35, Code 2016, 26 is amended by adding the following new subsection: 27 NEW SUBSECTION . 10A. Notwithstanding subsection 1, 28 and in addition to the reduction applicable pursuant 29 to subsection 2, the state aid for area education 30 agencies and the portion of the combined district cost 31 calculated for these agencies for the fiscal year 32 beginning July 1, 2016, and ending June 30, 2017, shall 33 be reduced by the department of management by twenty 34 million dollars. The reduction for each area education 35 -3- H8278.3851 (2) 86 tm/rn 3/ 21

agency shall be prorated based on the reduction that 1 the agency received in the fiscal year beginning July 2 1, 2003. 3 Sec. 6. Section 2.48, subsection 3, Code 2016, is 4 amended by adding the following new paragraph: 5 NEW PARAGRAPH . 0f. In 2016: 6 (1) The homestead tax credit under chapter 425. 7 (2) The elderly and disabled property tax credit 8 under chapter 425. 9 (3) The agricultural land tax credit under chapter 10 426. 11 (4) The military service tax credit under chapter 12 426A. 13 (5) The business property tax credit under chapter 14 426C. 15 (6) The commercial and industrial property tax 16 replacement claims under section 441.21A. 17 Sec. 7. Section 230.8, Code 2016, is amended to 18 read as follows: 19 230.8 Transfers of persons with mental illness —— 20 expenses. 21 The transfer to any state hospitals or to the places 22 of their residence of persons with mental illness who 23 have no residence in this state or whose residence is 24 unknown and deemed to be a state case, shall be made 25 according to the directions of the administrator, 26 and when practicable by employees of the state 27 hospitals. The actual and necessary expenses of such 28 transfers shall be paid by the department on itemized 29 vouchers sworn to by the claimants and approved by 30 the administrator , and the amount of the expenses is 31 appropriated to the department from any funds in the 32 state treasury not otherwise appropriated . 33 Sec. 8. Section 820.24, Code 2016, is amended to 34 read as follows: 35 -4- H8278.3851 (2) 86 tm/rn 4/ 21

820.24 Expenses —— how paid. 1 When the punishment of the crime shall be the 2 confinement of the criminal in the penitentiary, the 3 expenses shall be paid out of the state treasury, on 4 the certificate of the governor and warrant of the 5 director of the department of administrative services 6 by the department of corrections ; and in all other 7 cases they shall be paid out of the county treasury in 8 the county wherein the crime is alleged to have been 9 committed. The expenses shall be the fees paid to the 10 officers of the state on whose governor the requisition 11 is made, and all necessary and actual traveling 12 expenses incurred in returning the prisoner. 13 DIVISION IV 14 MISCELLANEOUS PROVISIONS 15 Sec. 9. BUDGET PROCESS FOR FISCAL YEAR 2017-2018. 16 1. For the budget process applicable to the fiscal 17 year beginning July 1, 2017, on or before October 1, 18 2016, in lieu of the information specified in section 19 8.23, subsection 1, unnumbered paragraph 1, and 20 paragraph “a”, all departments and establishments of 21 the government shall transmit to the director of the 22 department of management, on blanks to be furnished 23 by the director, estimates of their expenditure 24 requirements, including every proposed expenditure, for 25 the ensuing fiscal year, together with supporting data 26 and explanations as called for by the director of the 27 department of management after consultation with the 28 legislative services agency. 29 2. The estimates of expenditure requirements 30 shall be in a form specified by the director of 31 the department of management, and the expenditure 32 requirements shall include all proposed expenditures 33 and shall be prioritized by program or the results to 34 be achieved. The estimates shall be accompanied by 35 -5- H8278.3851 (2) 86 tm/rn 5/ 21

performance measures for evaluating the effectiveness 1 of the programs or results. 2 Sec. 10. WATER QUALITY —— IOWA FINANCE 3 AUTHORITY. There is appropriated from the general fund 4 of the state to the Iowa finance authority for the 5 fiscal year beginning July 1, 2016, and ending June 30, 6 2017, the following amount, or so much thereof as is 7 necessary, to be used for the purpose designated: 8 For deposit in the water quality financial 9 assistance fund created in section 16.134A, if enacted 10 by 2016 Iowa Acts, House File 2451: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 12 Sec. 11. SALARY MODEL ADMINISTRATOR. The salary 13 model administrator shall work in conjunction with 14 the legislative services agency to maintain the 15 state’s salary model used for analyzing, comparing, 16 and projecting state employee salary and benefit 17 information, including information relating to 18 employees of the state board of regents. The 19 department of revenue, the department of administrative 20 services, the five institutions under the jurisdiction 21 of the state board of regents, the judicial district 22 departments of correctional services, and the state 23 department of transportation shall provide salary data 24 to the department of management and the legislative 25 services agency to operate the state’s salary 26 model. The format and frequency of provision of the 27 salary data shall be determined by the department of 28 management and the legislative services agency. The 29 information shall be used in collective bargaining 30 processes under chapter 20 and in calculating the 31 funding needs contained within the annual salary 32 adjustment legislation. A state employee organization 33 as defined in section 20.3, subsection 4, may request 34 information produced by the model, but the information 35 -6- H8278.3851 (2) 86 tm/rn 6/ 21

provided shall not contain information attributable to 1 individual employees. 2 Sec. 12. Section 24.32, Code 2016, is amended to 3 read as follows: 4 24.32 Decision certified. 5 After a hearing upon the appeal, the state board 6 shall certify its decision to the county auditor and 7 to the parties to the appeal as provided by rule, and 8 the decision shall be final. The county auditor shall 9 make up the records in accordance with the decision and 10 the levying board shall make its levy in accordance 11 with the decision. Upon receipt of the decision, the 12 certifying board shall correct its records accordingly, 13 if necessary. Final disposition of all appeals shall 14 be made by the state board on or before April 30 of 15 each year within forty-five days after the date of the 16 appeal hearing . 17 Sec. 13. Section 284.6, subsection 8, Code 2016, is 18 amended to read as follows: 19 8. For each year in which a school district 20 receives funds calculated and paid to school 21 districts for professional development pursuant to 22 section 257.10, subsection 10 , or section 257.37A, 23 subsection 2 , the school district shall create quality 24 professional development opportunities. Not less 25 than thirty-six hours in the school calendar, held 26 outside of the minimum school day, shall be set aside 27 during nonpreparation time or designated professional 28 development time to allow practitioners to collaborate 29 with each other to deliver educational programs and 30 assess student learning, or to engage in peer review 31 pursuant to section 284.8, subsection 1 . The funds 32 may be used to implement the professional development 33 provisions of the teacher career paths and leadership 34 roles specified in section 284.7 or 284.15 , including 35 -7- H8278.3851 (2) 86 tm/rn 7/ 21

but not limited to providing professional development 1 to teachers, including additional salaries for 2 time beyond the normal negotiated agreement; pay 3 for substitute teachers , ; professional development 4 materials, speakers, and professional development 5 content; textbooks and curriculum materials used for 6 classroom purposes, if purchase of such textbooks and 7 curriculum materials includes professional development; 8 and costs associated with implementing the individual 9 professional development plans. The use of the funds 10 shall be balanced between school district, attendance 11 center, and individual professional development plans, 12 making every reasonable effort to provide equal access 13 to all teachers. 14 Sec. 14. Section 418.12, subsection 5, Code 2016, 15 is amended to read as follows: 16 5. If the department of revenue determines that 17 the revenue accruing to the fund or accounts within 18 the fund exceeds thirty million dollars for a fiscal 19 year or exceeds the amount necessary for the purposes 20 of this chapter if the amount necessary is less than 21 thirty million dollars for a fiscal year , then those 22 excess moneys shall be credited by the department of 23 revenue for deposit in the general fund of the state. 24 Sec. 15. Section 669.11, Code 2016, is amended to 25 read as follows: 26 669.11 Payment of award. 27 1. Any Except as provided in subsection 2, an award 28 to a claimant under this chapter , and any judgment in 29 favor of any claimant under this chapter , shall be 30 paid promptly out of appropriations which have been 31 made for such purpose, if any; but any such amount or 32 part thereof which cannot be paid promptly from such 33 appropriations shall be paid promptly out of any money 34 in the state treasury not otherwise appropriated. 35 -8- H8278.3851 (2) 86 tm/rn 8/ 21

Payment shall be made only upon receipt of a written 1 release by the claimant in a form approved by the 2 attorney general. 3 2. An award under this chapter, and any judgment 4 in favor of any claimant under this chapter, for a 5 claim relating to conduct or actions of an employee 6 of the hospital and medical clinics at the university 7 of Iowa that is paid by moneys from the general fund 8 of the state through the state appeal board shall be 9 reimbursed by the hospital and medical clinics at the 10 university of Iowa. Payment shall be made only upon 11 receipt of a written release by the claimant in a form 12 approved by the attorney general. 13 Sec. 16. Section 915.25, subsection 3, as enacted 14 by 2016 Iowa Acts, Senate File 2288, section 16, is 15 amended to read as follows: 16 3. Notwithstanding the provisions of sections 17 232.147 , 232.149 , and 232.149A , an intake or juvenile 18 court officer shall disclose to the alleged victim 19 of a delinquent act, upon the request of the victim, 20 the complaint, the name and address of the child 21 who allegedly committed the delinquent act, and 22 the disposition of the complaint. If the alleged 23 delinquent act would be a forcible felony serious 24 misdemeanor, aggravated misdemeanor, or felony offense 25 if committed by an adult, the intake or juvenile court 26 officer shall provide notification to the victim of the 27 delinquent act as required by section 915.24 . 28 Sec. 17. 2016 Iowa Acts, Senate File 2314, section 29 22, if enacted, is amended to read as follows: 30 SEC. 59. SECRETARY OF STATE. There is appropriated 31 from the general fund of the state to the office of 32 the secretary of state for the fiscal year beginning 33 July 1, 2016, and ending June 30, 2017, the following 34 amounts, or so much thereof as is necessary, to be used 35 -9- H8278.3851 (2) 86 tm/rn 9/ 21

for the purposes designated: 1 1. ADMINISTRATION AND ELECTIONS 2 For salaries, support, maintenance, and 3 miscellaneous purposes, and for not more than the 4 following full-time equivalent positions: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,440,890 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.10 7 15.60 8 The state department or state agency which provides 9 data processing services to support voter registration 10 file maintenance and storage shall provide those 11 services without charge. 12 2. BUSINESS SERVICES 13 For salaries, support, maintenance, and 14 miscellaneous purposes, and for not more than the 15 following full-time equivalent positions: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,440,891 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.10 18 15.60 19 DIVISION V 20 CORRECTIVE PROVISIONS 21 Sec. 18. Section 29C.24, subsection 3, paragraph 22 a, subparagraphs (3) and (6), if enacted by 2016 Iowa 23 Acts, Senate File 2306, section 2, are amended to read 24 as follows: 25 (3) The imposition of income taxes under chapter 26 422, divisions II and III, including the requirement 27 to file tax returns under sections 422.13 through 28 422.15 or section 422.36, as applicable, and 29 including the requirement to withhold and remit 30 income tax from out-of-state employees under section 31 422.16. In addition, the performance of disaster or 32 emergency-related work during a disaster response 33 period by an out-of-state business or out-of-state 34 employee shall not require an out-of-state business 35 -10- H8278.3851 (2) 86 tm/rn 10/ 21

to be included in a consolidated return under section 1 422.37, and shall not increase the amount of net income 2 of the out-of-state business allocated and apportioned 3 to the state under sections section 422.8 or 422.33, as 4 applicable. 5 (6) The assessment of property taxes by the 6 department of revenue under sections 428.24 through 7 428.26, 428.28, and 428.29, or chapters 433, 434, 8 435, and 437 through 438, or by a local assessor 9 under another provision of law, on property brought 10 into the state to aid in the performance of disaster 11 or emergency-related work during a disaster response 12 period if such property does not remain in the state 13 after the conclusion of the disaster response period. 14 Sec. 19. Section 29C.24, subsection 4, if enacted 15 by 2016 Iowa Acts, Senate File 2306, section 2, is 16 amended to read as follows: 17 4. Business and employee status after a disaster 18 response period. An out-of-state business or 19 out-of-state employee that remains in the state after 20 the conclusion of the disaster response period for 21 during which the disaster or emergency-related work 22 was performed shall be fully subject to the state’s 23 standards for establishing presence, residency, or 24 doing business as otherwise provided by law, and 25 shall be responsible for any resulting taxes, fees, 26 licensing, registration, filing, or other requirements. 27 Sec. 20. Section 155A.13, subsection 3, paragraph 28 d, if enacted by 2016 Iowa Acts, Senate File 453, 29 section 3, is amended to read as follows: 30 d. An applicant seeking a special or limited-use 31 pharmacy licensed license for a proposed telepharmacy 32 site that does not meet the mileage requirement 33 established in paragraph “c” and is not statutorily 34 exempt from the mileage requirement may apply to the 35 -11- H8278.3851 (2) 86 tm/rn 11/ 21

board for a waiver of the mileage requirement. A 1 waiver request shall only be granted if the applicant 2 can demonstrate to the board that the proposed 3 telepharmacy site is located in an area where there is 4 limited access to pharmacy services and can establish 5 the existence of compelling circumstances that justify 6 waiving the mileage requirement. The board’s decision 7 to grant or deny a waiver request shall be a proposed 8 decision subject to mandatory review by the director 9 of the department of public health. The director 10 shall review a proposed decision and shall have the 11 power to approve, modify, or veto a proposed decision. 12 The director’s decision on a waiver request shall be 13 considered final agency action subject to judicial 14 review under chapter 17A. 15 Sec. 21. Section 229.13, subsection 7, paragraph a, 16 subparagraph (1), if enacted by 2016 Iowa Acts, Senate 17 File 2259, section 1, is amended to read as follows: 18 (1) The respondent’s mental health professional 19 acting within the scope of the mental health 20 professional’s practice shall notify the committing 21 court, with preference given to the committing judge, 22 if available, in the appropriate county who and the 23 court shall enter a written order directing that 24 the respondent be taken into immediate custody by 25 the appropriate sheriff or sheriff’s deputy. The 26 appropriate sheriff or sheriff’s deputy shall exercise 27 all due diligence in taking the respondent into 28 protective custody to a hospital or other suitable 29 facility. 30 Sec. 22. Section 256.11, subsection 4, Code 2016, 31 as amended by 2016 Iowa Acts, House File 2392, section 32 26, if enacted, is amended to read as follows: 33 4. The following shall be taught in grades seven 34 and eight: English-language arts; social studies; 35 -12- H8278.3851 (2) 86 tm/rn 12/ 21

mathematics; science; health; age-appropriate and 1 research-based human growth and development; career 2 exploration and development; physical education; music; 3 and visual art. Career exploration and development 4 shall be designed so that students are appropriately 5 prepared to create an individual career and academic 6 plan pursuant to section 279.61, incorporate 7 foundational career and technical education concepts 8 aligned with the six career and technical education 9 service areas as defined in paragraph subsection 5, 10 subsection paragraph “h” , and incorporate relevant 11 twenty-first century skills. The health curriculum 12 shall include age-appropriate and research-based 13 information regarding the characteristics of 14 sexually transmitted diseases, including HPV and the 15 availability of a vaccine to prevent HPV, and acquired 16 immune deficiency syndrome. The state board as part 17 of accreditation standards shall adopt curriculum 18 definitions for implementing the program in grades 19 seven and eight. However, this subsection shall 20 not apply to the teaching of career exploration and 21 development in nonpublic schools. For purposes of this 22 section , “age-appropriate” , “HPV” , and “research-based” 23 mean the same as defined in section 279.50 . 24 Sec. 23. Section 272.25, subsection 3, Code 2016, 25 as amended by 2016 Iowa Acts, Senate File 2196, section 26 3, is amended to read as follows: 27 3. A requirement that the program include 28 instruction in skills and strategies to be used in 29 classroom management of individuals, and of small and 30 large groups, under varying conditions; skills for 31 communicating and working constructively with pupils, 32 teachers, administrators, and parents; preparation in 33 reading theory, knowledge, strategies, and approaches, 34 and for integrating literacy instruction in into 35 -13- H8278.3851 (2) 86 tm/rn 13/ 21

content areas in accordance with section 256.16; and 1 skills for understanding the role of the board of 2 education and the functions of other education agencies 3 in the state. The requirement shall be based upon 4 recommendations of the department of education after 5 consultation with teacher education faculty members in 6 colleges and universities. 7 Sec. 24. Section 598C.102, subsection 8, paragraph 8 b, if enacted by 2016 Iowa Acts, Senate File 2233, 9 section 2, is amended to read as follows: 10 b. An individual who has custodial responsibility 11 for a child under a law of this state other than this 12 chapter. 13 Sec. 25. 2016 Iowa Acts, House File 2269, section 14 20, subsection 1, is amended to read as follows: 15 1. It is amended, rescinded, or supplemented by the 16 affirmative action of the executive council committee 17 of the Iowa beef cattle producers association created 18 in section 181.3, as amended in this Act. 19 Sec. 26. 2016 Iowa Acts, Senate File 378, section 20 2, is amended to read as follows: 21 SEC 2. REPEAL. Section 80.37, Code 2015 2016 , is 22 repealed. 23 Sec. 27. 2016 Iowa Acts, Senate File 2185, section 24 2, if enacted, is amended by striking the section and 25 inserting in lieu thereof the following: 26 SEC. 2. Section 709.21, subsection 3, Code 2016, is 27 amended to read as follows: 28 3. A person who violates this section commits a 29 serious an aggravated misdemeanor. 30 DIVISION VI 31 AREA EDUCATION AGENCY FUNDING 32 Sec. 28. SPECIAL EDUCATION SUPPORT SERVICES 33 FUNDING. Notwithstanding the provisions of section 34 257.35, subsection 11, and section 257.37, subsection 35 -14- H8278.3851 (2) 86 tm/rn 14/ 21

6, for the budget year beginning July 1, 2016, an area 1 education agency shall use the total amount determined 2 to be available to the area education agency under 3 section 257.35 and any unreserved fund balances for 4 media services or education services that exceed 5 an amount equal to 5 percent of the area education 6 agency’s budget for media services and education 7 services for that budget year, and including funds 8 that exceed the payment for special education support 9 services pursuant to section 257.35, in a manner to 10 best maintain the level of required area education 11 agency special education support services. 12 Sec. 29. EFFECTIVE UPON ENACTMENT. This division 13 of this Act, being deemed of immediate importance, 14 takes effect upon enactment. 15 DIVISION VII 16 SCHOOL DISTRICT FUNDING 17 Sec. 30. Section 257.2, subsection 2, Code 2016, is 18 amended by striking the subsection. 19 Sec. 31. NEW SECTION . 257.14A District cost per 20 pupil equity —— budget adjustment. 21 1. The board of directors of a school district 22 with a regular program district cost per pupil for 23 the budget year beginning July 1, 2016, that is less 24 than the highest regular program district cost per 25 pupil among all school districts in the state for the 26 same budget year that wishes to receive the budget 27 adjustment under this section may adopt a resolution 28 by June 30, 2016, and shall notify the department of 29 management of the adoption of the resolution and the 30 amount of the budget adjustment to be received. 31 2. a. For the budget year beginning July 1, 2016, 32 each school district that satisfies the requirements of 33 subsection 1 shall be eligible for a budget adjustment 34 for that budget year in an amount not to exceed the 35 -15- H8278.3851 (2) 86 tm/rn 15/ 21

difference between the school district’s regular 1 program district cost per pupil for the budget year 2 beginning July 1, 2016, and the highest regular program 3 district cost per pupil among all school districts 4 in the state for the same budget year multiplied by 5 the district’s budget enrollment for the budget year 6 beginning July 1, 2016. The resolution adopted under 7 subsection 1 may specify a budget adjustment amount 8 that is less than the maximum amount authorized under 9 this paragraph “a” . 10 b. The school district shall fund the budget 11 adjustment solely by using cash reserve moneys 12 available to the school district during the budget 13 year beginning July 1, 2016. Amounts used to fund the 14 budget adjustment may be used by the school district 15 for any school general fund purpose. 16 c. A school district receiving a budget adjustment 17 under this section shall be subject to the reduction 18 of the maximum cash reserve levy authorized in section 19 298.10, subsection 3, paragraph “b” , and shall in one 20 or more subsequent budget years reimburse the school 21 district’s cash reserve amount the total amount of 22 the budget adjustment received during the budget year 23 beginning July 1, 2016, using school district general 24 fund moneys that are part of the school district’s 25 authorized expenditures in section 257.7. 26 3. A budget adjustment received under this section 27 shall not affect the eligibility for or amount of any 28 other budget adjustment authorized by law for the same 29 budget year. In addition, a budget adjustment under 30 this section shall be limited to the budget year for 31 which the adjustment was authorized and shall not be 32 included in any computation of a school district’s cost 33 for any future budget year. 34 Sec. 32. Section 257.34, Code 2016, is amended to 35 -16- H8278.3851 (2) 86 tm/rn 16/ 21

read as follows: 1 257.34 Cash reserve information. 2 1. If a school district receives less state school 3 foundation aid under section 257.1 than is due under 4 that section for a base year and the school district 5 uses funds from its cash reserve during the base year 6 to make up for the amount of state aid not paid, the 7 board of directors of the school district shall include 8 in its general fund budget document information about 9 the amount of the cash reserve used to replace state 10 school foundation aid not paid. 11 2. If a school district uses funds from its cash 12 reserve during the budget year beginning July 1, 2016, 13 to fund a budget adjustment under section 257.14A, the 14 board of directors of the school district shall include 15 in its general fund budget document information about 16 the amount of the cash reserve used for such purpose. 17 Sec. 33. Section 298.10, subsection 3, Code 2016, 18 is amended to read as follows: 19 3. a. For fiscal years beginning on or after 20 July 1, 2012, the cash reserve levy for a budget 21 year shall not exceed twenty percent of the general 22 fund expenditures for the year previous to the base 23 year minus the unexpended fund balance, as defined in 24 section 257.2 , for the year previous to the base year. 25 b. For fiscal years beginning on or after July 26 1, 2017, the maximum amount of the cash reserve levy 27 calculated under paragraph “a” shall be reduced by an 28 amount equal to the amount of the budget adjustment 29 authorized by the school district under section 257.14A 30 that has not been reimbursed by the school district 31 pursuant to section 257.14, subsection 2, paragraph 32 “c” . 33 Sec. 34. EFFECTIVE UPON ENACTMENT. This division 34 of this Act, being deemed of immediate importance, 35 -17- H8278.3851 (2) 86 tm/rn 17/ 21

takes effect upon enactment. 1 DIVISION VIII 2 WATER UTILITIES 3 Sec. 35. Section 388.1, Code 2016, is amended by 4 adding the following new subsections: 5 NEW SUBSECTION . 1A. “Population” means the 6 population shown by the latest preceding certified 7 federal census or the latest applicable population 8 estimate issued by the federal government, whichever is 9 most recent and available as of July 1 of the preceding 10 fiscal year. 11 NEW SUBSECTION . 2A. “Water utility services” 12 means providing water at retail or wholesale cost; 13 water withdrawal, storage, treatment, or distribution 14 facilities; other equipment or facilities necessary for 15 the operation of a water utility; or water management, 16 operation, or billing services. 17 Sec. 36. Section 388.3, Code 2016, is amended to 18 read as follows: 19 388.3 Procedure upon approval. 20 1. If a proposal to establish a utility board 21 receives a favorable majority vote, the mayor shall 22 appoint the board members, as provided in the proposal, 23 subject to the approval of the council. The council 24 shall by resolution provide for staggered six-year 25 terms for, and shall set the compensation of, board 26 members. 27 2. A board member appointed to fill a vacancy 28 occurring by reason other than the expiration of a term 29 is appointed for the balance of the unexpired term. 30 3. A public officer or a salaried employee of the 31 city may not serve on a utility board. 32 4. Notwithstanding section 388.2, a board for 33 a city with a population of more than one hundred 34 ninety thousand that provides water utility services 35 -18- H8278.3851 (2) 86 tm/rn 18/ 21

to persons who reside outside of the city limits or to 1 other cities shall be appointed as follows: 2 a. The mayor of the city with a population of one 3 hundred ninety thousand or more shall appoint two board 4 members, subject to approval by the city council. 5 b. The mayor of each city with a population of 6 more than fifteen thousand and less than one hundred 7 ninety thousand where the city utility provides utility 8 services shall each appoint one board member, subject 9 to approval by the respective city councils. 10 c. The board of supervisors of each county in which 11 the city utility provides utility services shall each 12 appoint one board member. Such board members shall 13 reside in an area in which the city utility provides 14 utility services that is not within a city with a 15 population of more than fifteen thousand. However, if 16 the utility services in the county are provided to a 17 rural water district organized under chapter 357A, the 18 board of the rural water district shall appoint the 19 board member. 20 5. The board established in subsection 4 shall, by 21 resolution, provide for staggered six-year terms and 22 shall set the compensation for the board members. 23 DIVISION IX 24 ELECTRIC TRANSMISSION LINES 25 Sec. 37. NEW SECTION . 478.6A Merchant line 26 franchises —— requirements —— limitations. 27 1. a. For purposes of this section, “bifurcation” 28 means the conducting of two separate hearings when 29 a petition involves the taking of property under 30 eminent domain, one hearing considering whether the 31 proposed line is necessary to serve a public use and 32 represents a reasonable relationship to an overall plan 33 of transmitting electricity in the public interest, and 34 the other considering the granting of eminent domain 35 -19- H8278.3851 (2) 86 tm/rn 19/ 21

authority. 1 b. For purposes of this section, “merchant 2 line” means a high-voltage direct current electric 3 transmission line which does not provide for the 4 erection of electric substations at intervals of less 5 than fifty miles, which substations are necessary 6 to accommodate both the purchase and sale to persons 7 located in this state of electricity generated or 8 transmitted by the franchisee. 9 2. A petition for a franchise to construct a 10 merchant line, in addition to any other applicable 11 requirements pursuant to this chapter, shall be subject 12 to all of the following: 13 a. The board shall not permit the bifurcation in 14 any manner of a petition and shall reject any request 15 by a petitioner for bifurcation. 16 b. Notwithstanding section 478.10, the sale and 17 transfer of a merchant line, by voluntary or judicial 18 sale or otherwise, shall not carry with it the transfer 19 of the franchise. 20 c. Notwithstanding section 478.21, if a petition 21 that involves the taking of property under eminent 22 domain is not approved by the board and a franchise 23 granted within three years following the date of 24 the first informational meeting held in any county 25 regarding the petition, pursuant to section 478.2, the 26 utilities board shall reject the petition and make a 27 record of the rejection. A petitioner may not file a 28 petition for the same or a similar project that has 29 been rejected under this subsection within sixty months 30 following the date of rejection. 31 d. The board shall not grant a petition that 32 involves the taking of property under eminent domain 33 unless a minimum of seventy-five percent of the 34 easements necessary to construct the project have been 35 -20- H8278.3851 (2) 86 tm/rn 20/ 21