House Amendment to Senate File 612 S-3190 Amend Senate File 612, as passed by the Senate, as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 CIGARETTE AND TOBACCO-RELATED REGULATIONS 5 Section 1. Section 453A.1, subsection 27, Code 2025, is 6 amended to read as follows: 7 27. “State permit” shall mean and include all permits issued 8 by the department to distributors, wholesalers, and retailers 9 under this chapter except the permits issued to retailers 10 approved by cities and counties pursuant to sections 453A.13 11 and 453A.47A . 12 Sec. 2. Section 453A.6, subsection 8, paragraph a, Code 13 2025, is amended to read as follows: 14 a. Pay directly to the department, in lieu of the tax 15 under subsection 1 , a tax equal to three and six hundredths 16 cents on each cigarette dispensed from such machine. Payments 17 made under this paragraph shall be remitted to the department 18 electronically. 19 Sec. 3. Section 453A.8, subsection 2, Code 2025, is amended 20 to read as follows: 21 2. Orders for cigarette tax stamps, including the payment 22 for such stamps, shall be sent direct made to the department 23 electronically on a form to be prescribed by the director, 24 except as provided in subsection 6 . 25 Sec. 4. Section 453A.13, subsection 2, paragraph a, Code 26 2025, is amended to read as follows: 27 a. The department shall issue state permits to distributors, 28 wholesalers, and cigarette vendors, and retailers that 29 make delivery sales of alternative nicotine products and 30 vapor products, subject to the conditions provided in this 31 subchapter . If an out-of-state retailer makes delivery 32 sales of alternative nicotine products or vapor products, an 33 application shall be filed with the department electronically 34 and a permit shall be issued for the out-of-state retailer’s 35 -1- SF 612.2129.H (1) 91 md 1/ 17 #1.

principal place of business. Cities may issue approve retail 1 permits to retailers permit applications for applicants with 2 a place of business located within their respective limits. 3 County boards of supervisors may issue approve retail permits 4 to retailers permit applications for applicants with a place of 5 business in their respective counties, outside of the corporate 6 limits of cities. Upon approval of a retail permit application 7 by a city or county, the department shall issue the permit to 8 the applicant on behalf of the city or county, in the manner 9 determined by the department. A city or county shall use the 10 electronic portal of the department to process retail permit 11 applications. A city or county that is unable to use the 12 electronic portal of the department may request permission from 13 the director to process retail applications by another method. 14 Sec. 5. Section 453A.13, subsection 2, paragraph c, Code 15 2025, is amended to read as follows: 16 c. A city or county shall submit a duplicate of any 17 application for a retail permit to the department within thirty 18 days of the issuance. The department shall submit the current 19 list of all retail permits issued to the department of health 20 and human services by the last day of each quarter of a state 21 fiscal year. 22 Sec. 6. Section 453A.13, subsection 3, paragraph a, Code 23 2025, is amended to read as follows: 24 a. All permits provided for in this subchapter shall expire 25 on June 30 of each year. A permit shall not be granted or 26 issued until the applicant has paid the fees to the department 27 required in this subchapter for the next period ending on June 28 30 next, to the department or the city or county granting the 29 permit, the fees provided for in this subchapter . The annual 30 state permit fee for a distributor, cigarette vendor, and 31 wholesaler is one hundred dollars when the permit is granted 32 during the months of July, August, or September. However, 33 whenever a state permit holder operates more than one place of 34 business, a duplicate state permit shall be issued for each 35 -2- SF 612.2129.H (1) 91 md 2/ 17

additional place of business on payment of five dollars for 1 each duplicate state permit, but refunds as provided in this 2 subchapter do not apply to any duplicate permit issued. 3 Sec. 7. Section 453A.13, subsection 5, unnumbered paragraph 4 1, Code 2025, is amended to read as follows: 5 Permits shall be issued only upon applications accompanied 6 by the fee indicated above, and by an adequate bond as provided 7 in section 453A.14 , and upon forms furnished by the department 8 upon written request . The failure to furnish such forms shall 9 be no excuse for the failure to file the forms unless absolute 10 refusal is shown. Applications, any supporting documentation, 11 and the associated fees required by this section shall be 12 submitted to the department electronically. The forms shall 13 set forth all of the following: 14 Sec. 8. Section 453A.13, subsection 9, unnumbered paragraph 15 1, Code 2025, is amended to read as follows: 16 Each permit issued shall describe clearly the place of 17 business for which it is issued, shall be nonassignable, 18 consecutively numbered, designating the kind of permit, and 19 shall authorize the sale of cigarettes, alternative nicotine 20 products, or vapor products in this state subject to the 21 limitations and restrictions herein contained. The retail 22 permits shall be upon forms furnished by the department or on 23 forms made available or approved by the department . 24 Sec. 9. Section 453A.14, subsection 1, unnumbered paragraph 25 1, Code 2025, is amended to read as follows: 26 No A state or manufacturer’s permit shall not be issued until 27 the applicant files a bond, with good and sufficient surety, 28 to be approved by the director, which bond shall be in favor of 29 the state and conditioned upon the payment of taxes, damages, 30 fines, penalties, and costs adjudged against the permit holder 31 for violation of any of the provisions of this subchapter . The 32 bonds shall be on forms prescribed by the director and shall be 33 filed electronically. A bond filed under this section shall be 34 in one of the following amounts: 35 -3- SF 612.2129.H (1) 91 md 3/ 17

Sec. 10. Section 453A.14, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. A person shall not engage in interstate business unless 3 the person files a bond, with good and sufficient surety in an 4 amount of not less than one thousand dollars. A bond required 5 by this subsection shall be on forms prescribed by the director 6 and shall be filed electronically. The amount of the bond 7 required of the person shall be fixed by the director, subject 8 to the minimum limitation provided in this section . The bond 9 is subject to approval by the director and shall be payable to 10 the state in Des Moines, Polk county, and conditioned upon the 11 payment of taxes, damages, fines, penalties, and costs adjudged 12 against the person for violation of any of the requirements of 13 this subchapter affecting the person, on a form prescribed by 14 the director. 15 Sec. 11. Section 453A.15, subsection 7, Code 2025, is 16 amended to read as follows: 17 7. The director may require by rule that Any reports 18 required to be made under this subchapter shall be filed by 19 electronic transmission electronically . 20 Sec. 12. Section 453A.16, Code 2025, is amended to read as 21 follows: 22 453A.16 Manufacturer’s permit. 23 The department may, upon application of any manufacturer, 24 issue without charge to the manufacturer a manufacturer’s 25 permit. The application shall contain information as 26 the director shall prescribe and the application shall be 27 submitted to the department electronically . The holder of a 28 manufacturer’s permit is authorized to purchase stamps from 29 the department, and must affix stamps to individual packages 30 of cigarettes outside of this state, prior to their shipment 31 into the state unless the cigarettes are shipped to an Iowa 32 permitted distributor or an Iowa permitted distributor’s agent. 33 Sec. 13. Section 453A.17, subsection 1, Code 2025, is 34 amended to read as follows: 35 -4- SF 612.2129.H (1) 91 md 4/ 17

1. Every distributing agent in the state, now engaged, 1 or who desires to become engaged, in the business of storing 2 unstamped cigarettes which are received in interstate commerce 3 for distribution or delivery only upon order received from 4 without the state or to be sold outside the state, shall 5 file with the department electronically , an application for 6 a distributing agent’s permit, on a form prescribed by the 7 director , to be furnished upon written request . The failure 8 to furnish shall be no excuse for the failure to file the same 9 unless an absolute refusal is shown. Said form shall set 10 forth the name under which such distributing agent transacts 11 or intends to transact such business as a distributing agent, 12 the principal office and place of business in Iowa to which 13 the permit is to apply, and if other than an individual, the 14 principal officers or members thereof and their addresses. The 15 director may require any other information in said application. 16 No distributing agent shall engage in such business until 17 such application has been filed and fee in the sum of one 18 hundred dollars paid for the permit and until the permit has 19 been obtained. Such permit shall expire on June 30 following 20 the date of issuance. All of the provisions of the last 21 two paragraphs of section 453A.14 , relative to bonds, are 22 incorporated herein and by this reference made applicable to 23 distributing agents. Upon failure to furnish adequate bond 24 as required, the permit shall be revoked without hearing. An 25 application shall be filed and a permit obtained for each place 26 of business owned or operated by a distributing agent. 27 Sec. 14. Section 453A.18, Code 2025, is amended to read as 28 follows: 29 453A.18 Forms for records and reports. 30 The department shall furnish or make available in electronic 31 form, without charge, to holders of the various permits, forms 32 in sufficient quantities to enable permit holders to make the 33 reports required to be made under this subchapter . The permit 34 holders shall furnish at their own expense the books, records, 35 -5- SF 612.2129.H (1) 91 md 5/ 17

and invoices, required to be used and kept, but the books, 1 records, and invoices shall be in exact conformity to the forms 2 prescribed for that purpose by the director, and shall be kept 3 and used in the manner prescribed by the director. However, 4 the director may, by express order in certain cases, authorize 5 permit holders to keep their records in a manner and upon forms 6 other than those prescribed. The authorization may be revoked 7 at any time. A report, book, record, invoice, and any other 8 document required to be submitted to the department under this 9 subchapter shall be submitted electronically. 10 Sec. 15. Section 453A.23, subsections 1 and 2, Code 2025, 11 are amended to read as follows: 12 1. Subject to this subchapter , a retailer’s permit may be 13 issued by the department to any dining car company, sleeping 14 car company, railroad or railway company. The permit shall 15 authorize the holder to keep for sale, and sell, cigarettes 16 at retail on any dining car, sleeping car, or passenger car 17 operated by the applicant in, through, or across the state of 18 Iowa, subject to all of the restrictions imposed upon retailers 19 under this subchapter . The application for the permit shall 20 be in the form and contain the information required by the 21 director and each application submitted under this section 22 shall be submitted to the department electronically . Each 23 permit is good throughout the state. Only one permit is 24 required for all cars operated in this state by the applicant, 25 but a duplicate of the permit shall be posted in each car 26 in which cigarettes are sold and no further permit shall be 27 required or tax levied for the privilege of selling cigarettes 28 in the cars. No cigarettes Cigarettes shall not be sold in 29 the cars without having affixed thereto stamps evidencing the 30 payment of the tax as provided in this subchapter . 31 2. As a condition precedent to the issuing of a retailer’s 32 permit for railway car, the applicant shall file with the 33 department a bond in favor of the state for the benefit of 34 all parties interested in the amount of five hundred dollars 35 -6- SF 612.2129.H (1) 91 md 6/ 17

conditioned upon the payment of all taxes, fines and penalties 1 and costs in this subchapter . A bond filed under this 2 subsection shall be on a form prescribed by the director and 3 shall be filed electronically. 4 Sec. 16. Section 453A.24, subsection 2, Code 2025, is 5 amended to read as follows: 6 2. The director may require by rule that common carriers 7 or the appropriate persons provide monthly reports to the 8 department detailing all information the department deems 9 necessary on shipments into and out of Iowa of cigarettes 10 and tobacco products as set forth in this subchapter I and 11 subchapter II of this chapter . The director may require by 12 rule that the reports A report required to be submitted by the 13 director pursuant to this section shall be filed by electronic 14 transmission electronically . 15 Sec. 17. Section 453A.28, subsection 1, paragraph a, Code 16 2025, is amended to read as follows: 17 a. (1) If after any audit, examination of records, or 18 other investigation the department finds that any person has 19 sold cigarettes without stamps affixed or that any person 20 responsible for paying the tax has not done so as required by 21 this subchapter , the department shall fix and determine the 22 amount of tax due, and shall assess the tax against the person, 23 together with a penalty as provided in section 421.27 . 24 (2) The taxpayer shall pay interest on the tax or additional 25 tax at the rate determined under section 421.7 counting each 26 fraction of a month as an entire month, computed from the date 27 the tax was due. If any person fails to furnish evidence 28 satisfactory to the director showing purchases of sufficient 29 stamps to stamp unstamped cigarettes purchased by the person, 30 the presumption shall be that the cigarettes were sold without 31 the proper stamps affixed. Within three years after the report 32 is filed or within three years after the report became due, 33 whichever is later, the department shall examine the report 34 and determine the correct amount of tax. The period for 35 -7- SF 612.2129.H (1) 91 md 7/ 17

examination and determination of the correct amount of tax is 1 unlimited in the case of a false or fraudulent report made 2 with the intent to evade tax, or in the case of a failure to 3 file a report, or if a person purchases or is in possession of 4 unstamped cigarettes. 5 (3) For purposes of imposing penalties under this section 6 and section 421.27, a person who fails to timely file or submit 7 a required return, report, or other documentation upon which no 8 tax is shown due is subject to a penalty in the amount of fifty 9 dollars for each occurrence. 10 Sec. 18. Section 453A.28, subsection 1, Code 2025, is 11 amended by adding the following new paragraph: 12 NEW PARAGRAPH . c. For purposes of this section and section 13 421.27, any application, bond, fee, report, return, remittance, 14 or other documentation required to be submitted electronically 15 under this subchapter that is filed in a manner other than in 16 an electronic format specified by the department shall not be 17 considered a valid submission unless the director has permitted 18 submission of such application, bond, fee, report, return, 19 remittance, or other documentation through an alternative 20 method pursuant to section 453A.57. 21 Sec. 19. Section 453A.35, subsection 1, paragraph a, Code 22 2025, is amended to read as follows: 23 a. With the exception of revenues credited to the health 24 care trust fund pursuant to paragraph “b” , the proceeds derived 25 from the sale of stamps and the payment of fees and penalties 26 provided for under this chapter , and the permit fees received 27 from all state permits issued by the department, shall be 28 credited to the general fund of the state. 29 Sec. 20. Section 453A.35, subsection 2, Code 2025, is 30 amended to read as follows: 31 2. All permit fees provided for in this chapter and 32 collected by the department on behalf of cities in the issuance 33 of permits granted by the cities shall be paid remitted by 34 the department to the treasurer of the city where the permit 35 -8- SF 612.2129.H (1) 91 md 8/ 17

is effective, or to another city officer as designated by the 1 council, and shall be credited to the general fund of the 2 city. Permit fees so collected by the department on behalf of 3 counties shall be paid remitted to the county treasurer of the 4 county where the permit is effective . 5 Sec. 21. Section 453A.39, subsection 2, paragraph a, Code 6 2025, is amended to read as follows: 7 a. All cigarette samples shall be shipped only to a 8 distributor that has a permit to stamp cigarettes or little 9 cigars with Iowa tax. All cigarette samples must have a 10 cigarette stamp. The manufacturer shipping samples under this 11 section shall send an affidavit to the director stating the 12 shipment information, including the date shipped, quantity, and 13 to whom the samples were shipped. The distributor receiving 14 the shipment shall send an affidavit to the director stating 15 the shipment information, including the date shipped, quantity, 16 and from whom the samples were shipped. These affidavits shall 17 be duly notarized and submitted to the director at the time of 18 shipment and receipt of the samples. The distributor shall 19 pay the tax on samples by separate remittance along with the 20 affidavit. The affidavit and remittance required under this 21 paragraph shall be submitted to the department electronically. 22 Sec. 22. Section 453A.40, subsection 2, Code 2025, is 23 amended to read as follows: 24 2. Persons subject to the inventory tax imposed under this 25 section shall take an inventory as of the close of the business 26 day next preceding the effective date of the increased tax rate 27 of those items subject to the inventory tax for the purpose of 28 determining the tax due. These persons shall report the tax 29 on forms provided by the department of revenue and remit the 30 tax due within thirty days of the prescribed inventory date. 31 The report and remittance required under this subsection shall 32 be submitted to the department electronically. The department 33 of revenue shall adopt rules as are necessary to carry out this 34 section . 35 -9- SF 612.2129.H (1) 91 md 9/ 17

Sec. 23. Section 453A.45, subsection 5, paragraphs b, c, and 1 d, Code 2025, are amended to read as follows: 2 b. The report shall be made on forms provided by the 3 director. The director may require by rule that the A report 4 required under this subsection shall be filed by electronic 5 transmission electronically . A report required to be submitted 6 electronically under this subsection that is filed in a manner 7 other than in an electronic format specified by the department 8 shall not be considered a valid submission unless the director 9 has permitted the submission of such a report through an 10 alternative method pursuant to section 453A.57. 11 c. Common carriers transporting tobacco products into 12 this state shall file with the director reports of all such 13 shipments other than those which are delivered to public 14 warehouses of first destination in this state which are 15 licensed under the provisions of chapter 554 . Such reports 16 shall be filed electronically with the department on or before 17 the tenth day of each month and shall show with respect to 18 deliveries made in the preceding month all of the following: 19 (1) The date. 20 (2) The point of origin. 21 (3) The point of delivery. 22 (4) The name of the consignee. 23 (5) A description and the quantity of tobacco products 24 delivered. 25 (6) Such other information as the director may require. 26 d. Any person who fails or refuses to transmit to the 27 director the required reports or whoever refuses to permit the 28 examination of the records by the director shall be guilty 29 of a serious misdemeanor. In addition, any person who fails 30 to timely submit a report required under this section is 31 subject to a penalty in the amount of fifty dollars for each 32 occurrence. 33 Sec. 24. Section 453A.46, subsection 1, paragraph a, 34 subparagraph (1), Code 2025, is amended to read as follows: 35 -10- SF 612.2129.H (1) 91 md 10/ 17

(1) On or before the twentieth day of each calendar month 1 every distributor with a place of business in this state shall 2 file a return with the director showing for the preceding 3 calendar month the quantity and wholesale sales price of each 4 tobacco product brought, or caused to be brought, into this 5 state for sale; made, manufactured, or fabricated in this state 6 for sale in this state; and any other information the director 7 may require. Every licensed distributor outside this state 8 shall in like manner file a return with the director showing 9 for the preceding calendar month the quantity and wholesale 10 sales price of each tobacco product shipped or transported to 11 retailers in this state to be sold by those retailers and any 12 other information the director may require. Returns shall 13 be made upon forms furnished or made available in electronic 14 form and prescribed by the director and shall contain other 15 information as the director may require. Each return shall be 16 accompanied by a remittance for the full tax liability shown 17 on the return, less a discount as fixed by the director not to 18 exceed five percent of the tax. Within three years after the 19 return is filed or within three years after the return became 20 due, whichever is later, the department shall examine it, 21 determine the correct amount of tax, and assess the tax against 22 the taxpayer for any deficiency. The period for examination 23 and determination of the correct amount of tax is unlimited in 24 the case of a false or fraudulent return made with the intent 25 to evade tax, or in the case of a failure to file a return. 26 Sec. 25. Section 453A.46, subsection 3, Code 2025, is 27 amended to read as follows: 28 3. In addition to the tax or additional tax, the taxpayer 29 shall also pay a penalty as provided in section 421.27 and be 30 subject to the civil penalties set forth in sections 421.27 ; 31 453A.31, subsection 1 , paragraph “b” ; and 453A.50, subsection 32 3 , as applicable. For purposes of imposing penalties under 33 this section and section 421.27, a person who fails to 34 timely file or submit a required return, report, or other 35 -11- SF 612.2129.H (1) 91 md 11/ 17

documentation upon which no tax is shown due is subject to a 1 penalty in the amount of fifty dollars for each occurrence. 2 Sec. 26. Section 453A.46, subsection 7, Code 2025, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 7. A report, return, remittance, or other documentation 6 required to be submitted under this subchapter shall be filed 7 electronically. Any report, return, remittance, or other 8 documentation required to be submitted electronically that 9 is submitted in a manner other than in an electronic format 10 specified by the department shall not be considered a valid 11 submission unless the director has permitted submission of such 12 application, bond, fee, report, return, remittance, or other 13 documentation through an alternative method pursuant to section 14 453A.57. 15 Sec. 27. Section 453A.47A, subsection 6, Code 2025, is 16 amended to read as follows: 17 6. Issuance. Cities may issue approve retail permits to 18 retailers permit applications of applicants located within 19 their respective limits. County boards of supervisors may 20 issue approve retail permits to retailers permit applications 21 of applicants located in their respective counties, outside 22 of the corporate limits of cities. The city or county shall 23 submit a duplicate of any application for a retail permit to 24 the department within thirty days of issuance of a permit. 25 Upon approval of a retail permit application by a city or 26 county, the department shall issue the permit to the applicant 27 on behalf of the city or county, in the manner determined by 28 the department. A city or county shall use the electronic 29 portal of the department to process retail permit applications. 30 A city or county that is unable to use the electronic portal 31 of the department may request permission from the director to 32 process retail applications by another method. The department 33 shall submit the current list of all retail permits issued to 34 the department of health and human services by the last day of 35 -12- SF 612.2129.H (1) 91 md 12/ 17

each quarter of a state fiscal year. 1 Sec. 28. Section 453A.47A, subsection 7, paragraph a, 2 unnumbered paragraph 1, Code 2025, is amended to read as 3 follows: 4 All permits provided for in this subchapter shall expire on 5 June 30 of each year. A permit shall not be granted or issued 6 until the applicant has paid the fees provided for to the 7 department required in this section for the next period ending 8 on June 30 next, to the city or county granting the permit . The 9 fee for retail permits is as follows when the permit is granted 10 during the month of July, August, or September: 11 Sec. 29. Section 453A.47A, subsection 9, unnumbered 12 paragraph 1, Code 2025, is amended to read as follows: 13 Retail permits shall be issued only upon applications, 14 accompanied by the fee indicated above, made upon forms 15 furnished by the department upon written request . The failure 16 to furnish such forms shall be no excuse for the failure to 17 file the form unless absolute refusal is shown. Applications, 18 any supporting documentation, and the associated fees 19 required by this section shall be submitted to the department 20 electronically. The forms shall specify: 21 Sec. 30. Section 453A.47A, subsection 10, paragraph b, Code 22 2025, is amended to read as follows: 23 b. Every retailer shall, when requested by the department, 24 make additional reports as the department deems necessary and 25 proper and shall at the request of the department furnish full 26 and complete information pertaining to any transaction of the 27 retailer involving the purchase or sale or use of tobacco, 28 tobacco products, alternative nicotine products, or vapor 29 products. A report required to be submitted to the department 30 pursuant to this subsection shall be submitted electronically. 31 Sec. 31. Section 453A.52, Code 2025, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 9. Any certification form, notice, and 34 supporting documentation and any payment required to be 35 -13- SF 612.2129.H (1) 91 md 13/ 17

submitted to the department pursuant to this section shall 1 be submitted to the department electronically, unless the 2 director has permitted submission of such information through 3 an alternative method pursuant to section 453A.57. 4 Sec. 32. Section 453A.52B, Code 2025, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 6. Payment for any penalty imposed 7 pursuant to this section shall be remitted to the department 8 electronically, unless the director has permitted submission 9 of such information through an alternative method pursuant to 10 section 453A.57. 11 Sec. 33. Section 453A.52D, Code 2025, is amended by adding 12 the following new subsection: 13 NEW SUBSECTION . 4. Notice to the department and any 14 supporting documentation required to be submitted to the 15 department pursuant to this section shall be submitted to the 16 department electronically, unless the director has permitted 17 submission of such information through an alternative method 18 pursuant to section 453A.57. 19 Sec. 34. NEW SECTION . 453A.57 Submitting documents —— 20 alternative method. 21 A person subject to this chapter who is required to submit an 22 application, bond, fee, report, return, remittance, or other 23 documentation electronically and who is unable to do so, may 24 request permission from the director to make a submission using 25 an alternative method. 26 Sec. 35. Section 453D.5, subsection 1, Code 2025, is amended 27 to read as follows: 28 1. No later than twenty calendar days after the end of 29 each calendar quarter, and more frequently if so directed by 30 the director, each stamping agent and distributor shall submit 31 information as the director requires to facilitate compliance 32 with this chapter , including but not limited to a list by brand 33 family of the total number of cigarettes, or, in the case of 34 roll-your-own tobacco, the equivalent stick count, for which 35 -14- SF 612.2129.H (1) 91 md 14/ 17

the stamping agent or distributor affixed stamps during the 1 previous calendar quarter or otherwise paid the tax due for 2 the cigarettes. The stamping agent and distributor shall 3 maintain, and make available to the director, all invoices and 4 documentation of sales of all nonparticipating manufacturer 5 cigarettes and any other information relied upon in reporting 6 to the director for a period of five years. Any information 7 submitted pursuant to this subsection shall be submitted to 8 the director electronically, unless the director has permitted 9 submission of such information through an alternative method 10 pursuant to section 453A.57. Any information submitted 11 pursuant to this subsection that is submitted in a manner other 12 than in a format specified by the department shall not be 13 considered a valid submission. Violations of this subsection 14 are subject to civil penalties as established in section 15 453A.31, subsection 1 , paragraph “b” . 16 Sec. 36. CODE EDITOR DIRECTIVES. 17 1. The Code editor is directed to place new section 453A.57, 18 as enacted by this division of this Act, in subchapter IV 19 titled “Uniformed Application of Chapter”. 20 2. The Code editor may modify subchapter titles if necessary 21 and is directed to correct internal references in the Code as 22 necessary due to enactment of this section. 23 DIVISION II 24 CITY BUDGET CERTIFICATION DEADLINE 25 Sec. 37. CITY BUDGET CERTIFICATION DEADLINE —— FY 26 2025-2026. 27 1. As used in this section, “qualified city” means a city 28 in this state having a population between twenty thousand four 29 hundred and twenty thousand five hundred, according to the 2020 30 federal decennial census. 31 2. a. Notwithstanding any provision of section 384.16 to 32 the contrary, a qualified city that failed to certify a budget 33 as required in section 384.16 for the fiscal year beginning 34 July 1, 2025, may comply with the requirements in section 35 -15- SF 612.2129.H (1) 91 md 15/ 17

384.16 by certifying the budget on or before July 1, 2025. 1 b. A qualified city that complies with the requirements of 2 paragraph “a” is not required to conduct a hearing as required 3 in section 384.16 or 384.18. In addition, the provisions of 4 section 384.19 allowing persons affected by the budget to file 5 a written protest with the county auditor do not apply to the 6 qualified city’s budget for the fiscal year beginning July 1, 7 2025. 8 c. A qualified city that meets the extended certification 9 deadline as provided in this subsection shall be deemed to have 10 complied with the requirements of section 384.16 on April 30, 11 2025. 12 Sec. 38. EFFECTIVE DATE. This division of this Act, being 13 deemed of immediate importance, takes effect upon enactment. > 14 DIVISION III 15 HISTORIC PRESERVATION TAX CREDIT 16 Sec. 39. Section 404A.2, subsection 4, paragraph a, Code 17 2025, is amended to read as follows: 18 a. For a tax credit claimed by an eligible taxpayer or 19 a transferee for qualified rehabilitation projects with 20 agreements entered into on or after July 1, 2014, the following 21 percentage of any credit in excess of the taxpayer’s tax 22 liability for the tax year may be refunded: 23 (1) For the tax year beginning on or after January 1, 2023, 24 but before January 1, 2024, ninety-five percent. 25 (2) For the tax year beginning on or after January 1, 2024, 26 but before January 1, 2025, ninety percent. 27 (3) For the tax year beginning on or after January 1, 2025, 28 but before January 1, 2026, eighty-five percent. 29 (4) For the tax year beginning on or after January 1, 2026, 30 but before January 1, 2027, eighty percent. 31 (5) (3) For tax years beginning on or after January 1, 2027 32 2025 , seventy-five one hundred percent. 33 Sec. 40. RETROACTIVE APPLICABILITY. This division of this 34 Act applies retroactively to January 1, 2025, for tax years 35 -16- SF 612.2129.H (1) 91 md 16/ 17