House File 2459 H-8291 Amend the amendment, H-8286, to the Senate 1 amendment, H-8278, to House File 2459, as amended, 2 passed, and reprinted by the House, as follows: 3 1. By striking page 1, line 1, through page 21, 4 line 18, and inserting: 5 < Amend the Senate amendment, H-8278, to House File 6 2459, as amended, passed, and reprinted by the House, 7 as follows: 8 1. By striking page 1, line 1, through page 20, 9 line 34, and inserting: 10 < Amend House File 2459, as amended, passed, and 11 reprinted by the House, as follows: 12 ___. By striking everything after the enacting 13 clause and inserting: 14 < DIVISION I 15 EQUAL PAY TASK FORCE AND REPORT 16 Section 1. EQUAL PAY. 17 1. An equal pay task force is created. The task 18 force shall consist of seven members appointed by the 19 governor. 20 2. The task force shall study wage discrepancies 21 within public and private employment and between public 22 and private employers. 23 3. The task force shall submit a report regarding 24 its findings and its recommendations regarding 25 potential actions for the elimination and prevention 26 of such discrepancies to the governor and the general 27 assembly no later than December 22, 2017. 28 DIVISION II 29 MISCELLANEOUS PROVISIONS —— WAGE DISCRIMINATION 30 Sec. 2. ADDITIONAL UNFAIR OR DISCRIMINATORY 31 PRACTICE —— WAGE DISCRIMINATION IN EMPLOYMENT. 32 1. As stated in chapter 216, the general assembly 33 finds that the practice of discriminating against any 34 employee because of the age, race, creed, color, sex, 35 -1- H8286.3864 (3) 86 tm/rn 1/ 23 #1.

sexual orientation, gender identity, national origin, 1 religion, or disability of such employee by paying 2 wages to such employee at a rate less than the rate 3 paid to other employees does all of the following: 4 a. Unjustly discriminates against the person 5 receiving the lesser rate. 6 b. Leads to low employee morale, high turnover, and 7 frequent labor unrest. 8 c. Discourages employees paid at lesser wage rates 9 from training for higher level jobs. 10 d. Curtails employment opportunities, decreases 11 employees’ mobility, and increases labor costs. 12 e. Impairs purchasing power and threatens the 13 maintenance of an adequate standard of living by such 14 employees and their families. 15 f. Prevents optimum utilization of the state’s 16 available labor resources. 17 g. Threatens the well-being of citizens of this 18 state and adversely affects the general welfare. 19 2. As stated in section 216.6A, it remains 20 unfair or discriminatory practice for any employer 21 or agent of any employer to discriminate against 22 any employee because of the age, race, creed, color, 23 sex, sexual orientation, gender identity, national 24 origin, religion, or disability of such employee by 25 paying wages to such employee at a rate less than the 26 rate paid to other employees who are employed within 27 the same establishment for equal work on jobs, the 28 performance of which requires equal skill, effort, and 29 responsibility, and which are performed under similar 30 working conditions. As also stated in section 216.6A, 31 an employer or agent of an employer who is paying wages 32 to an employee at a rate less than the rate paid to 33 other employees in violation of this section shall not 34 remedy the violation by reducing the wage rate of any 35 -2- H8286.3864 (3) 86 tm/rn 2/ 23

employee. 1 DIVISION III 2 STANDING APPROPRIATIONS AND RELATED MATTERS 3 Sec. 3. 2015 Iowa Acts, chapter 138, section 3, is 4 amended by adding the following new subsection: 5 NEW SUBSECTION . 4. For the peace officers’ 6 retirement, accident, and disability system retirement 7 fund under section 97A.11A: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 9 Sec. 4. 2015 Iowa Acts, chapter 138, is amended by 10 adding the following new section: 11 NEW SECTION . SEC. 5A. GENERAL ASSEMBLY. 12 1. The appropriations made pursuant to section 13 2.12 for the expenses of the general assembly and 14 legislative agencies for the fiscal year beginning July 15 1, 2016, and ending June 30, 2017, are reduced by the 16 following amount: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,850,000 18 2. The budgeted amounts for the general assembly 19 and legislative agencies for the fiscal year beginning 20 July 1, 2016, may be adjusted to reflect the unexpended 21 budgeted amounts from the previous fiscal year. 22 3. Annual membership dues for organizations, 23 associations, and conferences shall not be paid from 24 moneys appropriated pursuant to section 2.12. 25 4. Costs for out-of-state travel and per diems 26 for out-of-state travel shall not be paid from moneys 27 appropriated pursuant to section 2.12. 28 Sec. 5. 2015 Iowa Acts, chapter 138, is amended by 29 adding the following new section: 30 NEW SECTION . SEC. 7A. Section 257.35, Code 2016, 31 is amended by adding the following new subsection: 32 NEW SUBSECTION . 10A. Notwithstanding subsection 1, 33 and in addition to the reduction applicable pursuant 34 to subsection 2, the state aid for area education 35 -3- H8286.3864 (3) 86 tm/rn 3/ 23

agencies and the portion of the combined district cost 1 calculated for these agencies for the fiscal year 2 beginning July 1, 2016, and ending June 30, 2017, shall 3 be reduced by the department of management by twenty 4 million dollars. The reduction for each area education 5 agency shall be prorated based on the reduction that 6 the agency received in the fiscal year beginning July 7 1, 2003. 8 Sec. 6. Section 2.48, subsection 3, Code 2016, is 9 amended by adding the following new paragraph: 10 NEW PARAGRAPH . 0f. In 2016: 11 (1) The homestead tax credit under chapter 425. 12 (2) The elderly and disabled property tax credit 13 under chapter 425. 14 (3) The agricultural land tax credit under chapter 15 426. 16 (4) The military service tax credit under chapter 17 426A. 18 (5) The business property tax credit under chapter 19 426C. 20 (6) The commercial and industrial property tax 21 replacement claims under section 441.21A. 22 Sec. 7. Section 230.8, Code 2016, is amended to 23 read as follows: 24 230.8 Transfers of persons with mental illness —— 25 expenses. 26 The transfer to any state hospitals or to the places 27 of their residence of persons with mental illness who 28 have no residence in this state or whose residence is 29 unknown and deemed to be a state case, shall be made 30 according to the directions of the administrator, 31 and when practicable by employees of the state 32 hospitals. The actual and necessary expenses of such 33 transfers shall be paid by the department on itemized 34 vouchers sworn to by the claimants and approved by 35 -4- H8286.3864 (3) 86 tm/rn 4/ 23

the administrator , and the amount of the expenses is 1 appropriated to the department from any funds in the 2 state treasury not otherwise appropriated . 3 Sec. 8. Section 820.24, Code 2016, is amended to 4 read as follows: 5 820.24 Expenses —— how paid. 6 When the punishment of the crime shall be the 7 confinement of the criminal in the penitentiary, the 8 expenses shall be paid out of the state treasury, on 9 the certificate of the governor and warrant of the 10 director of the department of administrative services 11 by the department of corrections ; and in all other 12 cases they shall be paid out of the county treasury in 13 the county wherein the crime is alleged to have been 14 committed. The expenses shall be the fees paid to the 15 officers of the state on whose governor the requisition 16 is made, and all necessary and actual traveling 17 expenses incurred in returning the prisoner. 18 DIVISION IV 19 MISCELLANEOUS PROVISIONS 20 Sec. 9. BUDGET PROCESS FOR FISCAL YEAR 2017-2018. 21 1. For the budget process applicable to the fiscal 22 year beginning July 1, 2017, on or before October 1, 23 2016, in lieu of the information specified in section 24 8.23, subsection 1, unnumbered paragraph 1, and 25 paragraph “a”, all departments and establishments of 26 the government shall transmit to the director of the 27 department of management, on blanks to be furnished 28 by the director, estimates of their expenditure 29 requirements, including every proposed expenditure, for 30 the ensuing fiscal year, together with supporting data 31 and explanations as called for by the director of the 32 department of management after consultation with the 33 legislative services agency. 34 2. The estimates of expenditure requirements 35 -5- H8286.3864 (3) 86 tm/rn 5/ 23

shall be in a form specified by the director of 1 the department of management, and the expenditure 2 requirements shall include all proposed expenditures 3 and shall be prioritized by program or the results to 4 be achieved. The estimates shall be accompanied by 5 performance measures for evaluating the effectiveness 6 of the programs or results. 7 Sec. 10. TIME AND ATTENDANCE SOLUTION —— EXECUTIVE 8 BRANCH. It is the intent of the general assembly that 9 executive branch agencies make use of an existing 10 master agreement entered into by the department of 11 administrative services on November 17, 2015, to 12 develop a statewide time and attendance solution. 13 The statewide time and attendance solution will 14 have the ability to generate savings within state 15 government, minimize compliance risk, and improve 16 workforce productivity with a vendor who specializes in 17 measuring metrics to monitor performance and measures 18 financial and operational activities by incorporating 19 modeling and data analytics, baseline numbers, and any 20 additional pertinent information. 21 Sec. 11. WATER QUALITY —— IOWA FINANCE 22 AUTHORITY. There is appropriated from the general fund 23 of the state to the Iowa finance authority for the 24 fiscal year beginning July 1, 2016, and ending June 30, 25 2017, the following amount, or so much thereof as is 26 necessary, to be used for the purpose designated: 27 For deposit in the water quality financial 28 assistance fund created in section 16.134A, if enacted 29 by 2016 Iowa Acts, House File 2451: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 31 Sec. 12. SALARY MODEL ADMINISTRATOR. The salary 32 model administrator shall work in conjunction with 33 the legislative services agency to maintain the 34 state’s salary model used for analyzing, comparing, 35 -6- H8286.3864 (3) 86 tm/rn 6/ 23

and projecting state employee salary and benefit 1 information, including information relating to 2 employees of the state board of regents. The 3 department of revenue, the department of administrative 4 services, the five institutions under the jurisdiction 5 of the state board of regents, the judicial district 6 departments of correctional services, and the state 7 department of transportation shall provide salary data 8 to the department of management and the legislative 9 services agency to operate the state’s salary 10 model. The format and frequency of provision of the 11 salary data shall be determined by the department of 12 management and the legislative services agency. The 13 information shall be used in collective bargaining 14 processes under chapter 20 and in calculating the 15 funding needs contained within the annual salary 16 adjustment legislation. A state employee organization 17 as defined in section 20.3, subsection 4, may request 18 information produced by the model, but the information 19 provided shall not contain information attributable to 20 individual employees. 21 Sec. 13. Section 24.32, Code 2016, is amended to 22 read as follows: 23 24.32 Decision certified. 24 After a hearing upon the appeal, the state board 25 shall certify its decision to the county auditor and 26 to the parties to the appeal as provided by rule, and 27 the decision shall be final. The county auditor shall 28 make up the records in accordance with the decision and 29 the levying board shall make its levy in accordance 30 with the decision. Upon receipt of the decision, the 31 certifying board shall correct its records accordingly, 32 if necessary. Final disposition of all appeals shall 33 be made by the state board on or before April 30 of 34 each year within forty-five days after the date of the 35 -7- H8286.3864 (3) 86 tm/rn 7/ 23

appeal hearing . 1 Sec. 14. Section 284.6, subsection 8, Code 2016, is 2 amended to read as follows: 3 8. For each year in which a school district 4 receives funds calculated and paid to school 5 districts for professional development pursuant to 6 section 257.10, subsection 10 , or section 257.37A, 7 subsection 2 , the school district shall create quality 8 professional development opportunities. Not less 9 than thirty-six hours in the school calendar, held 10 outside of the minimum school day, shall be set aside 11 during nonpreparation time or designated professional 12 development time to allow practitioners to collaborate 13 with each other to deliver educational programs and 14 assess student learning, or to engage in peer review 15 pursuant to section 284.8, subsection 1 . The funds 16 may be used to implement the professional development 17 provisions of the teacher career paths and leadership 18 roles specified in section 284.7 or 284.15 , including 19 but not limited to providing professional development 20 to teachers, including additional salaries for 21 time beyond the normal negotiated agreement; pay 22 for substitute teachers , ; professional development 23 materials, speakers, and professional development 24 content; textbooks and curriculum materials used for 25 classroom purposes, if purchase of such textbooks and 26 curriculum materials includes professional development; 27 and costs associated with implementing the individual 28 professional development plans. The use of the funds 29 shall be balanced between school district, attendance 30 center, and individual professional development plans, 31 making every reasonable effort to provide equal access 32 to all teachers. 33 Sec. 15. Section 418.12, subsection 5, Code 2016, 34 is amended to read as follows: 35 -8- H8286.3864 (3) 86 tm/rn 8/ 23

5. If the department of revenue determines that 1 the revenue accruing to the fund or accounts within 2 the fund exceeds thirty million dollars for a fiscal 3 year or exceeds the amount necessary for the purposes 4 of this chapter if the amount necessary is less than 5 thirty million dollars for a fiscal year , then those 6 excess moneys shall be credited by the department of 7 revenue for deposit in the general fund of the state. 8 Sec. 16. Section 669.11, Code 2016, is amended to 9 read as follows: 10 669.11 Payment of award. 11 1. Any Except as provided in subsection 2, an award 12 to a claimant under this chapter , and any judgment in 13 favor of any claimant under this chapter , shall be 14 paid promptly out of appropriations which have been 15 made for such purpose, if any; but any such amount or 16 part thereof which cannot be paid promptly from such 17 appropriations shall be paid promptly out of any money 18 in the state treasury not otherwise appropriated. 19 Payment shall be made only upon receipt of a written 20 release by the claimant in a form approved by the 21 attorney general. 22 2. An award under this chapter, and any judgment 23 in favor of any claimant under this chapter, for a 24 claim relating to conduct or actions of an employee 25 of the hospital and medical clinics at the university 26 of Iowa that is paid by moneys from the general fund 27 of the state through the state appeal board shall be 28 reimbursed by the hospital and medical clinics at the 29 university of Iowa. Payment shall be made only upon 30 receipt of a written release by the claimant in a form 31 approved by the attorney general. 32 Sec. 17. Section 915.25, subsection 3, as enacted 33 by 2016 Iowa Acts, Senate File 2288, section 16, is 34 amended to read as follows: 35 -9- H8286.3864 (3) 86 tm/rn 9/ 23

3. Notwithstanding the provisions of sections 1 232.147 , 232.149 , and 232.149A , an intake or juvenile 2 court officer shall disclose to the alleged victim 3 of a delinquent act, upon the request of the victim, 4 the complaint, the name and address of the child 5 who allegedly committed the delinquent act, and 6 the disposition of the complaint. If the alleged 7 delinquent act would be a forcible felony serious 8 misdemeanor, aggravated misdemeanor, or felony offense 9 if committed by an adult, the intake or juvenile court 10 officer shall provide notification to the victim of the 11 delinquent act as required by section 915.24 . 12 Sec. 18. 2016 Iowa Acts, Senate File 2314, section 13 22, if enacted, is amended to read as follows: 14 SEC. 59. SECRETARY OF STATE. There is appropriated 15 from the general fund of the state to the office of 16 the secretary of state for the fiscal year beginning 17 July 1, 2016, and ending June 30, 2017, the following 18 amounts, or so much thereof as is necessary, to be used 19 for the purposes designated: 20 1. ADMINISTRATION AND ELECTIONS 21 For salaries, support, maintenance, and 22 miscellaneous purposes, and for not more than the 23 following full-time equivalent positions: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,440,890 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.10 26 15.60 27 The state department or state agency which provides 28 data processing services to support voter registration 29 file maintenance and storage shall provide those 30 services without charge. 31 2. BUSINESS SERVICES 32 For salaries, support, maintenance, and 33 miscellaneous purposes, and for not more than the 34 following full-time equivalent positions: 35 -10- H8286.3864 (3) 86 tm/rn 10/ 23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,440,891 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.10 2 15.60 3 DIVISION V 4 CORRECTIVE PROVISIONS 5 Sec. 19. Section 29C.24, subsection 3, paragraph 6 a, subparagraphs (3) and (6), if enacted by 2016 Iowa 7 Acts, Senate File 2306, section 2, are amended to read 8 as follows: 9 (3) The imposition of income taxes under chapter 10 422, divisions II and III, including the requirement 11 to file tax returns under sections 422.13 through 12 422.15 or section 422.36, as applicable, and 13 including the requirement to withhold and remit 14 income tax from out-of-state employees under section 15 422.16. In addition, the performance of disaster or 16 emergency-related work during a disaster response 17 period by an out-of-state business or out-of-state 18 employee shall not require an out-of-state business 19 to be included in a consolidated return under section 20 422.37, and shall not increase the amount of net income 21 of the out-of-state business allocated and apportioned 22 to the state under sections section 422.8 or 422.33, as 23 applicable. 24 (6) The assessment of property taxes by the 25 department of revenue under sections 428.24 through 26 428.26, 428.28, and 428.29, or chapters 433, 434, 27 435, and 437 through 438, or by a local assessor 28 under another provision of law, on property brought 29 into the state to aid in the performance of disaster 30 or emergency-related work during a disaster response 31 period if such property does not remain in the state 32 after the conclusion of the disaster response period. 33 Sec. 20. Section 29C.24, subsection 4, if enacted 34 by 2016 Iowa Acts, Senate File 2306, section 2, is 35 -11- H8286.3864 (3) 86 tm/rn 11/ 23

amended to read as follows: 1 4. Business and employee status after a disaster 2 response period. An out-of-state business or 3 out-of-state employee that remains in the state after 4 the conclusion of the disaster response period for 5 during which the disaster or emergency-related work 6 was performed shall be fully subject to the state’s 7 standards for establishing presence, residency, or 8 doing business as otherwise provided by law, and 9 shall be responsible for any resulting taxes, fees, 10 licensing, registration, filing, or other requirements. 11 Sec. 21. Section 155A.13, subsection 3, paragraph 12 d, if enacted by 2016 Iowa Acts, Senate File 453, 13 section 3, is amended to read as follows: 14 d. An applicant seeking a special or limited-use 15 pharmacy licensed license for a proposed telepharmacy 16 site that does not meet the mileage requirement 17 established in paragraph “c” and is not statutorily 18 exempt from the mileage requirement may apply to the 19 board for a waiver of the mileage requirement. A 20 waiver request shall only be granted if the applicant 21 can demonstrate to the board that the proposed 22 telepharmacy site is located in an area where there is 23 limited access to pharmacy services and can establish 24 the existence of compelling circumstances that justify 25 waiving the mileage requirement. The board’s decision 26 to grant or deny a waiver request shall be a proposed 27 decision subject to mandatory review by the director 28 of the department of public health. The director 29 shall review a proposed decision and shall have the 30 power to approve, modify, or veto a proposed decision. 31 The director’s decision on a waiver request shall be 32 considered final agency action subject to judicial 33 review under chapter 17A. 34 Sec. 22. Section 229.13, subsection 7, paragraph a, 35 -12- H8286.3864 (3) 86 tm/rn 12/ 23

subparagraph (1), if enacted by 2016 Iowa Acts, Senate 1 File 2259, section 1, is amended to read as follows: 2 (1) The respondent’s mental health professional 3 acting within the scope of the mental health 4 professional’s practice shall notify the committing 5 court, with preference given to the committing judge, 6 if available, in the appropriate county who and the 7 court shall enter a written order directing that 8 the respondent be taken into immediate custody by 9 the appropriate sheriff or sheriff’s deputy. The 10 appropriate sheriff or sheriff’s deputy shall exercise 11 all due diligence in taking the respondent into 12 protective custody to a hospital or other suitable 13 facility. 14 Sec. 23. Section 256.11, subsection 4, Code 2016, 15 as amended by 2016 Iowa Acts, House File 2392, section 16 26, if enacted, is amended to read as follows: 17 4. The following shall be taught in grades seven 18 and eight: English-language arts; social studies; 19 mathematics; science; health; age-appropriate and 20 research-based human growth and development; career 21 exploration and development; physical education; music; 22 and visual art. Career exploration and development 23 shall be designed so that students are appropriately 24 prepared to create an individual career and academic 25 plan pursuant to section 279.61, incorporate 26 foundational career and technical education concepts 27 aligned with the six career and technical education 28 service areas as defined in paragraph subsection 5, 29 subsection paragraph “h” , and incorporate relevant 30 twenty-first century skills. The health curriculum 31 shall include age-appropriate and research-based 32 information regarding the characteristics of 33 sexually transmitted diseases, including HPV and the 34 availability of a vaccine to prevent HPV, and acquired 35 -13- H8286.3864 (3) 86 tm/rn 13/ 23

immune deficiency syndrome. The state board as part 1 of accreditation standards shall adopt curriculum 2 definitions for implementing the program in grades 3 seven and eight. However, this subsection shall 4 not apply to the teaching of career exploration and 5 development in nonpublic schools. For purposes of this 6 section , “age-appropriate” , “HPV” , and “research-based” 7 mean the same as defined in section 279.50 . 8 Sec. 24. Section 272.25, subsection 3, Code 2016, 9 as amended by 2016 Iowa Acts, Senate File 2196, section 10 3, is amended to read as follows: 11 3. A requirement that the program include 12 instruction in skills and strategies to be used in 13 classroom management of individuals, and of small and 14 large groups, under varying conditions; skills for 15 communicating and working constructively with pupils, 16 teachers, administrators, and parents; preparation in 17 reading theory, knowledge, strategies, and approaches, 18 and for integrating literacy instruction in into 19 content areas in accordance with section 256.16; and 20 skills for understanding the role of the board of 21 education and the functions of other education agencies 22 in the state. The requirement shall be based upon 23 recommendations of the department of education after 24 consultation with teacher education faculty members in 25 colleges and universities. 26 Sec. 25. Section 521A.6B, subsection 5, paragraph 27 e, if enacted by 2016 Iowa Acts, House File 2394, 28 section 10, is amended to read as follows: 29 e. Entering into agreements with or obtaining 30 documentation from any insurer registered under 31 section 521A.4, any member of an internationally 32 active insurance group, and any other state, federal, 33 or international regulatory agency for members of the 34 internationally active insurance group, that provides 35 -14- H8286.3864 (3) 86 tm/rn 14/ 23

the basis for or otherwise clarifies the commissioner’s 1 role as group-wide supervisor of an internationally 2 active insurance group, including provisions for 3 resolving disputes with other regulatory officials. 4 Such agreements or documentation shall not serve as 5 evidence in any proceeding that any insurer or person 6 within an insurance company holding company system 7 not domiciled or incorporated in this state is doing 8 business in this state or is otherwise subject to 9 jurisdiction in this state. 10 Sec. 26. Section 598C.102, subsection 8, paragraph 11 b, if enacted by 2016 Iowa Acts, Senate File 2233, 12 section 2, is amended to read as follows: 13 b. An individual who has custodial responsibility 14 for a child under a law of this state other than this 15 chapter. 16 Sec. 27. 2016 Iowa Acts, House File 2269, section 17 20, subsection 1, is amended to read as follows: 18 1. It is amended, rescinded, or supplemented by the 19 affirmative action of the executive council committee 20 of the Iowa beef cattle producers association created 21 in section 181.3, as amended in this Act. 22 Sec. 28. 2016 Iowa Acts, Senate File 378, section 23 2, is amended to read as follows: 24 SEC. 2. REPEAL. Section 80.37, Code 2015 2016 , is 25 repealed. 26 Sec. 29. 2016 Iowa Acts, Senate File 2185, section 27 2, if enacted, is amended by striking the section and 28 inserting in lieu thereof the following: 29 SEC. 2. Section 709.21, subsection 3, Code 2016, is 30 amended to read as follows: 31 3. A person who violates this section commits a 32 serious an aggravated misdemeanor. 33 DIVISION VI 34 AREA EDUCATION AGENCY FUNDING 35 -15- H8286.3864 (3) 86 tm/rn 15/ 23

Sec. 30. SPECIAL EDUCATION SUPPORT SERVICES 1 FUNDING. Notwithstanding the provisions of section 2 257.35, subsection 11, and section 257.37, subsection 3 6, for the budget year beginning July 1, 2016, an area 4 education agency shall use the total amount determined 5 to be available to the area education agency under 6 section 257.35 and any unreserved fund balances for 7 media services or education services that exceed 8 an amount equal to 5 percent of the area education 9 agency’s budget for media services and education 10 services for that budget year, and including funds 11 that exceed the payment for special education support 12 services pursuant to section 257.35, in a manner to 13 best maintain the level of required area education 14 agency special education support services. 15 Sec. 31. EFFECTIVE UPON ENACTMENT. This division 16 of this Act, being deemed of immediate importance, 17 takes effect upon enactment. 18 DIVISION VII 19 SCHOOL DISTRICT FUNDING 20 Sec. 32. Section 257.2, subsection 2, Code 2016, is 21 amended by striking the subsection. 22 Sec. 33. NEW SECTION . 257.14A District cost per 23 pupil equity —— budget adjustment. 24 1. The board of directors of an eligible school 25 district with a regular program district cost per pupil 26 for the budget year beginning July 1, 2016, that is 27 less than the highest regular program district cost 28 per pupil among all school districts in the state for 29 the same budget year that wishes to receive the budget 30 adjustment under this section may adopt a resolution 31 by June 30, 2016, and shall notify the department of 32 management of the adoption of the resolution and the 33 amount of the budget adjustment to be received. 34 2. a. For the budget year beginning July 1, 35 -16- H8286.3864 (3) 86 tm/rn 16/ 23

2016, each eligible school district that satisfies 1 the requirements of subsection 1 shall be eligible 2 for a budget adjustment for that budget year in an 3 amount not to exceed the difference between the school 4 district’s regular program district cost per pupil 5 for the budget year beginning July 1, 2016, and the 6 highest regular program district cost per pupil among 7 all school districts in the state for the same budget 8 year multiplied by the district’s budget enrollment 9 for the budget year beginning July 1, 2016. The 10 resolution adopted under subsection 1 may specify a 11 budget adjustment amount that is less than the maximum 12 amount authorized under this paragraph “a” . 13 b. The eligible school district shall fund the 14 budget adjustment solely by using cash reserve moneys 15 available to the school district during the budget 16 year beginning July 1, 2016. Amounts used to fund the 17 budget adjustment may be used by the school district 18 for any school general fund purpose. 19 c. An eligible school district receiving a budget 20 adjustment under this section shall be subject to the 21 reduction of the maximum cash reserve levy authorized 22 in section 298.10, subsection 3, paragraph “b” , and 23 shall in one or more subsequent budget years reimburse 24 the school district’s cash reserve amount the total 25 amount of the budget adjustment received during the 26 budget year beginning July 1, 2016, using school 27 district general fund moneys that are part of the 28 school district’s authorized expenditures in section 29 257.7. 30 3. A budget adjustment received under this section 31 shall not affect the eligibility for or amount of any 32 other budget adjustment authorized by law for the same 33 budget year. In addition, a budget adjustment under 34 this section shall be limited to the budget year for 35 -17- H8286.3864 (3) 86 tm/rn 17/ 23

which the adjustment was authorized and shall not be 1 included in any computation of a school district’s cost 2 for any future budget year. 3 4. For purposes of this section, “eligible school 4 district” means a school district located in whole or 5 in part within a county with a population in excess of 6 one hundred fifty thousand but less than two hundred 7 thousand and that has a budget enrollment in excess 8 of ten thousand for the budget year beginning July 1, 9 2016. 10 Sec. 34. Section 257.34, Code 2016, is amended to 11 read as follows: 12 257.34 Cash reserve information. 13 1. If a school district receives less state school 14 foundation aid under section 257.1 than is due under 15 that section for a base year and the school district 16 uses funds from its cash reserve during the base year 17 to make up for the amount of state aid not paid, the 18 board of directors of the school district shall include 19 in its general fund budget document information about 20 the amount of the cash reserve used to replace state 21 school foundation aid not paid. 22 2. If a school district uses funds from its cash 23 reserve during the budget year beginning July 1, 2016, 24 to fund a budget adjustment under section 257.14A, the 25 board of directors of the school district shall include 26 in its general fund budget document information about 27 the amount of the cash reserve used for such purpose. 28 Sec. 35. Section 298.10, subsection 3, Code 2016, 29 is amended to read as follows: 30 3. a. For fiscal years beginning on or after 31 July 1, 2012, the cash reserve levy for a budget 32 year shall not exceed twenty percent of the general 33 fund expenditures for the year previous to the base 34 year minus the unexpended fund balance, as defined in 35 -18- H8286.3864 (3) 86 tm/rn 18/ 23

section 257.2 , for the year previous to the base year. 1 b. For fiscal years beginning on or after July 2 1, 2017, the maximum amount of the cash reserve levy 3 calculated under paragraph “a” shall be reduced by an 4 amount equal to the amount of the budget adjustment 5 authorized by the school district under section 257.14A 6 that has not been reimbursed by the school district 7 pursuant to section 257.14, subsection 2, paragraph 8 “c” . 9 Sec. 36. EFFECTIVE UPON ENACTMENT. This division 10 of this Act, being deemed of immediate importance, 11 takes effect upon enactment. 12 DIVISION VIII 13 WATER UTILITIES 14 Sec. 37. Section 388.1, Code 2016, is amended by 15 adding the following new subsections: 16 NEW SUBSECTION . 1A. “Population” means the 17 population shown by the latest preceding certified 18 federal census or the latest applicable population 19 estimate issued by the federal government, whichever is 20 most recent and available as of July 1 of the preceding 21 fiscal year. 22 NEW SUBSECTION . 2A. “Water utility services” 23 means providing water at retail or wholesale cost; 24 water withdrawal, storage, treatment, or distribution 25 facilities; other equipment or facilities necessary for 26 the operation of a water utility; or water management, 27 operation, or billing services. 28 Sec. 38. Section 388.3, Code 2016, is amended to 29 read as follows: 30 388.3 Procedure upon approval. 31 1. If a proposal to establish a utility board 32 receives a favorable majority vote, the mayor shall 33 appoint the board members, as provided in the proposal, 34 subject to the approval of the council. The council 35 -19- H8286.3864 (3) 86 tm/rn 19/ 23

shall by resolution provide for staggered six-year 1 terms for, and shall set the compensation of, board 2 members. 3 2. A board member appointed to fill a vacancy 4 occurring by reason other than the expiration of a term 5 is appointed for the balance of the unexpired term. 6 3. A public officer or a salaried employee of the 7 city may not serve on a utility board. 8 4. Notwithstanding section 388.2, a board for 9 a city with a population of more than one hundred 10 ninety thousand that provides water utility services 11 to persons who reside outside of the city limits or to 12 other cities shall be appointed as follows: 13 a. The mayor of the city with a population of one 14 hundred ninety thousand or more shall appoint two board 15 members, subject to approval by the city council. 16 b. The mayor of each city with a population of 17 more than fifteen thousand and less than one hundred 18 ninety thousand where the city utility provides utility 19 services shall each appoint one board member, subject 20 to approval by the respective city councils. 21 c. The board of supervisors of each county in which 22 the city utility provides utility services shall each 23 appoint one board member. Such board members shall 24 reside in an area in which the city utility provides 25 utility services that is not within a city with a 26 population of more than fifteen thousand. However, if 27 the utility services in the county are provided to a 28 rural water district organized under chapter 357A, the 29 board of the rural water district shall appoint the 30 board member. 31 5. The board established in subsection 4 shall, by 32 resolution, provide for staggered six-year terms and 33 shall set the compensation for the board members. 34 DIVISION IX 35 -20- H8286.3864 (3) 86 tm/rn 20/ 23