House Amendment to Senate Amendment to House File 2459 S-5177 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 ___. By striking everything after the enacting 8 clause 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- H8278.3869.H (2) 86 md 1/ 23 #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- H8278.3869.H (2) 86 md 2/ 23

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- H8278.3869.H (2) 86 md 3/ 23

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- H8278.3869.H (2) 86 md 4/ 23

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- H8278.3869.H (2) 86 md 5/ 23

performance measures for evaluating the effectiveness 1 of the programs or results. 2 Sec. 10. TIME AND ATTENDANCE SOLUTION —— EXECUTIVE 3 BRANCH. It is the intent of the general assembly that 4 executive branch agencies make use of an existing 5 master agreement entered into by the department of 6 administrative services on November 17, 2015, to 7 develop a statewide time and attendance solution. 8 The statewide time and attendance solution will 9 have the ability to generate savings within state 10 government, minimize compliance risk, and improve 11 workforce productivity with a vendor who specializes in 12 measuring metrics to monitor performance and measures 13 financial and operational activities by incorporating 14 modeling and data analytics, baseline numbers, and any 15 additional pertinent information. 16 Sec. 11. WATER QUALITY —— IOWA FINANCE 17 AUTHORITY. There is appropriated from the general fund 18 of the state to the Iowa finance authority for the 19 fiscal year beginning July 1, 2016, and ending June 30, 20 2017, the following amount, or so much thereof as is 21 necessary, to be used for the purpose designated: 22 For deposit in the water quality financial 23 assistance fund created in section 16.134A, if enacted 24 by 2016 Iowa Acts, House File 2451: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 26 Sec. 12. SALARY MODEL ADMINISTRATOR. The salary 27 model administrator shall work in conjunction with 28 the legislative services agency to maintain the 29 state’s salary model used for analyzing, comparing, 30 and projecting state employee salary and benefit 31 information, including information relating to 32 employees of the state board of regents. The 33 department of revenue, the department of administrative 34 services, the five institutions under the jurisdiction 35 -6- H8278.3869.H (2) 86 md 6/ 23

of the state board of regents, the judicial district 1 departments of correctional services, and the state 2 department of transportation shall provide salary data 3 to the department of management and the legislative 4 services agency to operate the state’s salary 5 model. The format and frequency of provision of the 6 salary data shall be determined by the department of 7 management and the legislative services agency. The 8 information shall be used in collective bargaining 9 processes under chapter 20 and in calculating the 10 funding needs contained within the annual salary 11 adjustment legislation. A state employee organization 12 as defined in section 20.3, subsection 4, may request 13 information produced by the model, but the information 14 provided shall not contain information attributable to 15 individual employees. 16 Sec. 13. Section 24.32, Code 2016, is amended to 17 read as follows: 18 24.32 Decision certified. 19 After a hearing upon the appeal, the state board 20 shall certify its decision to the county auditor and 21 to the parties to the appeal as provided by rule, and 22 the decision shall be final. The county auditor shall 23 make up the records in accordance with the decision and 24 the levying board shall make its levy in accordance 25 with the decision. Upon receipt of the decision, the 26 certifying board shall correct its records accordingly, 27 if necessary. Final disposition of all appeals shall 28 be made by the state board on or before April 30 of 29 each year within forty-five days after the date of the 30 appeal hearing . 31 Sec. 14. Section 284.6, subsection 8, Code 2016, is 32 amended to read as follows: 33 8. For each year in which a school district 34 receives funds calculated and paid to school 35 -7- H8278.3869.H (2) 86 md 7/ 23

districts for professional development pursuant to 1 section 257.10, subsection 10 , or section 257.37A, 2 subsection 2 , the school district shall create quality 3 professional development opportunities. Not less 4 than thirty-six hours in the school calendar, held 5 outside of the minimum school day, shall be set aside 6 during nonpreparation time or designated professional 7 development time to allow practitioners to collaborate 8 with each other to deliver educational programs and 9 assess student learning, or to engage in peer review 10 pursuant to section 284.8, subsection 1 . The funds 11 may be used to implement the professional development 12 provisions of the teacher career paths and leadership 13 roles specified in section 284.7 or 284.15 , including 14 but not limited to providing professional development 15 to teachers, including additional salaries for 16 time beyond the normal negotiated agreement; pay 17 for substitute teachers , ; professional development 18 materials, speakers, and professional development 19 content; textbooks and curriculum materials used for 20 classroom purposes, if purchase of such textbooks and 21 curriculum materials includes professional development; 22 and costs associated with implementing the individual 23 professional development plans. The use of the funds 24 shall be balanced between school district, attendance 25 center, and individual professional development plans, 26 making every reasonable effort to provide equal access 27 to all teachers. 28 Sec. 15. Section 418.12, subsection 5, Code 2016, 29 is amended to read as follows: 30 5. If the department of revenue determines that 31 the revenue accruing to the fund or accounts within 32 the fund exceeds thirty million dollars for a fiscal 33 year or exceeds the amount necessary for the purposes 34 of this chapter if the amount necessary is less than 35 -8- H8278.3869.H (2) 86 md 8/ 23

thirty million dollars for a fiscal year , then those 1 excess moneys shall be credited by the department of 2 revenue for deposit in the general fund of the state. 3 Sec. 16. Section 669.11, Code 2016, is amended to 4 read as follows: 5 669.11 Payment of award. 6 1. Any Except as provided in subsection 2, an award 7 to a claimant under this chapter , and any judgment in 8 favor of any claimant under this chapter , shall be 9 paid promptly out of appropriations which have been 10 made for such purpose, if any; but any such amount or 11 part thereof which cannot be paid promptly from such 12 appropriations shall be paid promptly out of any money 13 in the state treasury not otherwise appropriated. 14 Payment shall be made only upon receipt of a written 15 release by the claimant in a form approved by the 16 attorney general. 17 2. An award under this chapter, and any judgment 18 in favor of any claimant under this chapter, for a 19 claim relating to conduct or actions of an employee 20 of the hospital and medical clinics at the university 21 of Iowa that is paid by moneys from the general fund 22 of the state through the state appeal board shall be 23 reimbursed by the hospital and medical clinics at the 24 university of Iowa. Payment shall be made only upon 25 receipt of a written release by the claimant in a form 26 approved by the attorney general. 27 Sec. 17. Section 915.25, subsection 3, as enacted 28 by 2016 Iowa Acts, Senate File 2288, section 16, is 29 amended to read as follows: 30 3. Notwithstanding the provisions of sections 31 232.147 , 232.149 , and 232.149A , an intake or juvenile 32 court officer shall disclose to the alleged victim 33 of a delinquent act, upon the request of the victim, 34 the complaint, the name and address of the child 35 -9- H8278.3869.H (2) 86 md 9/ 23

who allegedly committed the delinquent act, and 1 the disposition of the complaint. If the alleged 2 delinquent act would be a forcible felony serious 3 misdemeanor, aggravated misdemeanor, or felony offense 4 if committed by an adult, the intake or juvenile court 5 officer shall provide notification to the victim of the 6 delinquent act as required by section 915.24 . 7 Sec. 18. 2016 Iowa Acts, Senate File 2314, section 8 22, if enacted, is amended to read as follows: 9 SEC. 59. SECRETARY OF STATE. There is appropriated 10 from the general fund of the state to the office of 11 the secretary of state for the fiscal year beginning 12 July 1, 2016, and ending June 30, 2017, the following 13 amounts, or so much thereof as is necessary, to be used 14 for the purposes designated: 15 1. ADMINISTRATION AND ELECTIONS 16 For salaries, support, maintenance, and 17 miscellaneous purposes, and for not more than the 18 following full-time equivalent positions: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,440,890 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.10 21 15.60 22 The state department or state agency which provides 23 data processing services to support voter registration 24 file maintenance and storage shall provide those 25 services without charge. 26 2. BUSINESS SERVICES 27 For salaries, support, maintenance, and 28 miscellaneous purposes, and for not more than the 29 following full-time equivalent positions: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,440,891 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FTEs 13.10 32 15.60 33 DIVISION V 34 CORRECTIVE PROVISIONS 35 -10- H8278.3869.H (2) 86 md 10/ 23

Sec. 19. Section 29C.24, subsection 3, paragraph 1 a, subparagraphs (3) and (6), if enacted by 2016 Iowa 2 Acts, Senate File 2306, section 2, are amended to read 3 as follows: 4 (3) The imposition of income taxes under chapter 5 422, divisions II and III, including the requirement 6 to file tax returns under sections 422.13 through 7 422.15 or section 422.36, as applicable, and 8 including the requirement to withhold and remit 9 income tax from out-of-state employees under section 10 422.16. In addition, the performance of disaster or 11 emergency-related work during a disaster response 12 period by an out-of-state business or out-of-state 13 employee shall not require an out-of-state business 14 to be included in a consolidated return under section 15 422.37, and shall not increase the amount of net income 16 of the out-of-state business allocated and apportioned 17 to the state under sections section 422.8 or 422.33, as 18 applicable. 19 (6) The assessment of property taxes by the 20 department of revenue under sections 428.24 through 21 428.26, 428.28, and 428.29, or chapters 433, 434, 22 435, and 437 through 438, or by a local assessor 23 under another provision of law, on property brought 24 into the state to aid in the performance of disaster 25 or emergency-related work during a disaster response 26 period if such property does not remain in the state 27 after the conclusion of the disaster response period. 28 Sec. 20. Section 29C.24, subsection 4, if enacted 29 by 2016 Iowa Acts, Senate File 2306, section 2, is 30 amended to read as follows: 31 4. Business and employee status after a disaster 32 response period. An out-of-state business or 33 out-of-state employee that remains in the state after 34 the conclusion of the disaster response period for 35 -11- H8278.3869.H (2) 86 md 11/ 23

during which the disaster or emergency-related work 1 was performed shall be fully subject to the state’s 2 standards for establishing presence, residency, or 3 doing business as otherwise provided by law, and 4 shall be responsible for any resulting taxes, fees, 5 licensing, registration, filing, or other requirements. 6 Sec. 21. Section 155A.13, subsection 3, paragraph 7 d, if enacted by 2016 Iowa Acts, Senate File 453, 8 section 3, is amended to read as follows: 9 d. An applicant seeking a special or limited-use 10 pharmacy licensed license for a proposed telepharmacy 11 site that does not meet the mileage requirement 12 established in paragraph “c” and is not statutorily 13 exempt from the mileage requirement may apply to the 14 board for a waiver of the mileage requirement. A 15 waiver request shall only be granted if the applicant 16 can demonstrate to the board that the proposed 17 telepharmacy site is located in an area where there is 18 limited access to pharmacy services and can establish 19 the existence of compelling circumstances that justify 20 waiving the mileage requirement. The board’s decision 21 to grant or deny a waiver request shall be a proposed 22 decision subject to mandatory review by the director 23 of the department of public health. The director 24 shall review a proposed decision and shall have the 25 power to approve, modify, or veto a proposed decision. 26 The director’s decision on a waiver request shall be 27 considered final agency action subject to judicial 28 review under chapter 17A. 29 Sec. 22. Section 229.13, subsection 7, paragraph a, 30 subparagraph (1), if enacted by 2016 Iowa Acts, Senate 31 File 2259, section 1, is amended to read as follows: 32 (1) The respondent’s mental health professional 33 acting within the scope of the mental health 34 professional’s practice shall notify the committing 35 -12- H8278.3869.H (2) 86 md 12/ 23

court, with preference given to the committing judge, 1 if available, in the appropriate county who and the 2 court shall enter a written order directing that 3 the respondent be taken into immediate custody by 4 the appropriate sheriff or sheriff’s deputy. The 5 appropriate sheriff or sheriff’s deputy shall exercise 6 all due diligence in taking the respondent into 7 protective custody to a hospital or other suitable 8 facility. 9 Sec. 23. Section 256.11, subsection 4, Code 2016, 10 as amended by 2016 Iowa Acts, House File 2392, section 11 26, if enacted, is amended to read as follows: 12 4. The following shall be taught in grades seven 13 and eight: English-language arts; social studies; 14 mathematics; science; health; age-appropriate and 15 research-based human growth and development; career 16 exploration and development; physical education; music; 17 and visual art. Career exploration and development 18 shall be designed so that students are appropriately 19 prepared to create an individual career and academic 20 plan pursuant to section 279.61, incorporate 21 foundational career and technical education concepts 22 aligned with the six career and technical education 23 service areas as defined in paragraph subsection 5, 24 subsection paragraph “h” , and incorporate relevant 25 twenty-first century skills. The health curriculum 26 shall include age-appropriate and research-based 27 information regarding the characteristics of 28 sexually transmitted diseases, including HPV and the 29 availability of a vaccine to prevent HPV, and acquired 30 immune deficiency syndrome. The state board as part 31 of accreditation standards shall adopt curriculum 32 definitions for implementing the program in grades 33 seven and eight. However, this subsection shall 34 not apply to the teaching of career exploration and 35 -13- H8278.3869.H (2) 86 md 13/ 23

development in nonpublic schools. For purposes of this 1 section , “age-appropriate” , “HPV” , and “research-based” 2 mean the same as defined in section 279.50 . 3 Sec. 24. Section 272.25, subsection 3, Code 2016, 4 as amended by 2016 Iowa Acts, Senate File 2196, section 5 3, is amended to read as follows: 6 3. A requirement that the program include 7 instruction in skills and strategies to be used in 8 classroom management of individuals, and of small and 9 large groups, under varying conditions; skills for 10 communicating and working constructively with pupils, 11 teachers, administrators, and parents; preparation in 12 reading theory, knowledge, strategies, and approaches, 13 and for integrating literacy instruction in into 14 content areas in accordance with section 256.16; and 15 skills for understanding the role of the board of 16 education and the functions of other education agencies 17 in the state. The requirement shall be based upon 18 recommendations of the department of education after 19 consultation with teacher education faculty members in 20 colleges and universities. 21 Sec. 25. Section 521A.6B, subsection 5, paragraph 22 e, if enacted by 2016 Iowa Acts, House File 2394, 23 section 10, is amended to read as follows: 24 e. Entering into agreements with or obtaining 25 documentation from any insurer registered under 26 section 521A.4, any member of an internationally 27 active insurance group, and any other state, federal, 28 or international regulatory agency for members of the 29 internationally active insurance group, that provides 30 the basis for or otherwise clarifies the commissioner’s 31 role as group-wide supervisor of an internationally 32 active insurance group, including provisions for 33 resolving disputes with other regulatory officials. 34 Such agreements or documentation shall not serve as 35 -14- H8278.3869.H (2) 86 md 14/ 23

evidence in any proceeding that any insurer or person 1 within an insurance company holding company system 2 not domiciled or incorporated in this state is doing 3 business in this state or is otherwise subject to 4 jurisdiction in this state. 5 Sec. 26. Section 598C.102, subsection 8, paragraph 6 b, if enacted by 2016 Iowa Acts, Senate File 2233, 7 section 2, is amended to read as follows: 8 b. An individual who has custodial responsibility 9 for a child under a law of this state other than this 10 chapter. 11 Sec. 27. 2016 Iowa Acts, House File 2269, section 12 20, subsection 1, is amended to read as follows: 13 1. It is amended, rescinded, or supplemented by the 14 affirmative action of the executive council committee 15 of the Iowa beef cattle producers association created 16 in section 181.3, as amended in this Act. 17 Sec. 28. 2016 Iowa Acts, Senate File 378, section 18 2, is amended to read as follows: 19 SEC. 2. REPEAL. Section 80.37, Code 2015 2016 , is 20 repealed. 21 Sec. 29. 2016 Iowa Acts, Senate File 2185, section 22 2, if enacted, is amended by striking the section and 23 inserting in lieu thereof the following: 24 SEC. 2. Section 709.21, subsection 3, Code 2016, is 25 amended to read as follows: 26 3. A person who violates this section commits a 27 serious an aggravated misdemeanor. 28 DIVISION VI 29 AREA EDUCATION AGENCY FUNDING 30 Sec. 30. SPECIAL EDUCATION SUPPORT SERVICES 31 FUNDING. Notwithstanding the provisions of section 32 257.35, subsection 11, and section 257.37, subsection 33 6, for the budget year beginning July 1, 2016, an area 34 education agency shall use the total amount determined 35 -15- H8278.3869.H (2) 86 md 15/ 23

to be available to the area education agency under 1 section 257.35 and any unreserved fund balances for 2 media services or education services that exceed 3 an amount equal to 5 percent of the area education 4 agency’s budget for media services and education 5 services for that budget year, and including funds 6 that exceed the payment for special education support 7 services pursuant to section 257.35, in a manner to 8 best maintain the level of required area education 9 agency special education support services. 10 Sec. 31. EFFECTIVE UPON ENACTMENT. This division 11 of this Act, being deemed of immediate importance, 12 takes effect upon enactment. 13 DIVISION VII 14 SCHOOL DISTRICT FUNDING 15 Sec. 32. Section 257.2, subsection 2, Code 2016, is 16 amended by striking the subsection. 17 Sec. 33. NEW SECTION . 257.14A District cost per 18 pupil equity —— budget adjustment. 19 1. The board of directors of an eligible school 20 district with a regular program district cost per pupil 21 for the budget year beginning July 1, 2016, that is 22 less than the highest regular program district cost 23 per pupil among all school districts in the state for 24 the same budget year that wishes to receive the budget 25 adjustment under this section may adopt a resolution 26 by June 30, 2016, and shall notify the department of 27 management of the adoption of the resolution and the 28 amount of the budget adjustment to be received. 29 2. a. For the budget year beginning July 1, 30 2016, each eligible school district that satisfies 31 the requirements of subsection 1 shall be eligible 32 for a budget adjustment for that budget year in an 33 amount not to exceed the difference between the school 34 district’s regular program district cost per pupil 35 -16- H8278.3869.H (2) 86 md 16/ 23

for the budget year beginning July 1, 2016, and the 1 highest regular program district cost per pupil among 2 all school districts in the state for the same budget 3 year multiplied by the district’s budget enrollment 4 for the budget year beginning July 1, 2016. The 5 resolution adopted under subsection 1 may specify a 6 budget adjustment amount that is less than the maximum 7 amount authorized under this paragraph “a” . 8 b. The eligible school district shall fund the 9 budget adjustment solely by using cash reserve moneys 10 available to the school district during the budget 11 year beginning July 1, 2016. Amounts used to fund the 12 budget adjustment may be used by the school district 13 for any school general fund purpose. 14 c. An eligible school district receiving a budget 15 adjustment under this section shall be subject to the 16 reduction of the maximum cash reserve levy authorized 17 in section 298.10, subsection 3, paragraph “b” , and 18 shall in one or more subsequent budget years reimburse 19 the school district’s cash reserve amount the total 20 amount of the budget adjustment received during the 21 budget year beginning July 1, 2016, using school 22 district general fund moneys that are part of the 23 school district’s authorized expenditures in section 24 257.7. 25 3. A budget adjustment received under this section 26 shall not affect the eligibility for or amount of any 27 other budget adjustment authorized by law for the same 28 budget year. In addition, a budget adjustment under 29 this section shall be limited to the budget year for 30 which the adjustment was authorized and shall not be 31 included in any computation of a school district’s cost 32 for any future budget year. 33 4. For purposes of this section, “eligible school 34 district” means a school district located in whole or 35 -17- H8278.3869.H (2) 86 md 17/ 23

in part within a county with a population in excess of 1 one hundred fifty thousand but less than two hundred 2 thousand and that has a budget enrollment in excess 3 of ten thousand for the budget year beginning July 1, 4 2016. 5 Sec. 34. Section 257.34, Code 2016, is amended to 6 read as follows: 7 257.34 Cash reserve information. 8 1. If a school district receives less state school 9 foundation aid under section 257.1 than is due under 10 that section for a base year and the school district 11 uses funds from its cash reserve during the base year 12 to make up for the amount of state aid not paid, the 13 board of directors of the school district shall include 14 in its general fund budget document information about 15 the amount of the cash reserve used to replace state 16 school foundation aid not paid. 17 2. If a school district uses funds from its cash 18 reserve during the budget year beginning July 1, 2016, 19 to fund a budget adjustment under section 257.14A, the 20 board of directors of the school district shall include 21 in its general fund budget document information about 22 the amount of the cash reserve used for such purpose. 23 Sec. 35. Section 298.10, subsection 3, Code 2016, 24 is amended to read as follows: 25 3. a. For fiscal years beginning on or after 26 July 1, 2012, the cash reserve levy for a budget 27 year shall not exceed twenty percent of the general 28 fund expenditures for the year previous to the base 29 year minus the unexpended fund balance, as defined in 30 section 257.2 , for the year previous to the base year. 31 b. For fiscal years beginning on or after July 32 1, 2017, the maximum amount of the cash reserve levy 33 calculated under paragraph “a” shall be reduced by an 34 amount equal to the amount of the budget adjustment 35 -18- H8278.3869.H (2) 86 md 18/ 23

authorized by the school district under section 257.14A 1 that has not been reimbursed by the school district 2 pursuant to section 257.14, subsection 2, paragraph 3 “c” . 4 Sec. 36. EFFECTIVE UPON ENACTMENT. This division 5 of this Act, being deemed of immediate importance, 6 takes effect upon enactment. 7 DIVISION VIII 8 WATER UTILITIES 9 Sec. 37. Section 388.1, Code 2016, is amended by 10 adding the following new subsections: 11 NEW SUBSECTION . 1A. “Population” means the 12 population shown by the latest preceding certified 13 federal census or the latest applicable population 14 estimate issued by the federal government, whichever is 15 most recent and available as of July 1 of the preceding 16 fiscal year. 17 NEW SUBSECTION . 2A. “Water utility services” 18 means providing water at retail or wholesale cost; 19 water withdrawal, storage, treatment, or distribution 20 facilities; other equipment or facilities necessary for 21 the operation of a water utility; or water management, 22 operation, or billing services. 23 Sec. 38. Section 388.3, Code 2016, is amended to 24 read as follows: 25 388.3 Procedure upon approval. 26 1. If a proposal to establish a utility board 27 receives a favorable majority vote, the mayor shall 28 appoint the board members, as provided in the proposal, 29 subject to the approval of the council. The council 30 shall by resolution provide for staggered six-year 31 terms for, and shall set the compensation of, board 32 members. 33 2. A board member appointed to fill a vacancy 34 occurring by reason other than the expiration of a term 35 -19- H8278.3869.H (2) 86 md 19/ 23

is appointed for the balance of the unexpired term. 1 3. A public officer or a salaried employee of the 2 city may not serve on a utility board. 3 4. Notwithstanding section 388.2, a board for 4 a city with a population of more than one hundred 5 ninety thousand that provides water utility services 6 to persons who reside outside of the city limits or to 7 other cities shall be appointed as follows: 8 a. The mayor of the city with a population of one 9 hundred ninety thousand or more shall appoint two board 10 members, subject to approval by the city council. 11 b. The mayor of each city with a population of 12 more than fifteen thousand and less than one hundred 13 ninety thousand where the city utility provides utility 14 services shall each appoint one board member, subject 15 to approval by the respective city councils. 16 c. The board of supervisors of each county in which 17 the city utility provides utility services shall each 18 appoint one board member. Such board members shall 19 reside in an area in which the city utility provides 20 utility services that is not within a city with a 21 population of more than fifteen thousand. However, if 22 the utility services in the county are provided to a 23 rural water district organized under chapter 357A, the 24 board of the rural water district shall appoint the 25 board member. 26 5. The board established in subsection 4 shall, by 27 resolution, provide for staggered six-year terms and 28 shall set the compensation for the board members. 29 DIVISION IX 30 CITY UTILITY BILLINGS AND COLLECTIONS —— LIENS 31 Sec. 39. Section 384.84, subsection 4, paragraph 32 a, Code 2016, is amended by adding the following new 33 subparagraph: 34 NEW SUBPARAGRAPH . (4) A lien under subparagraph 35 -20- H8278.3869.H (2) 86 md 20/ 23