Section 1. Section 426B.5, subsection 2, paragraph d, subparagraphs (1) and (6), Code 2003, are amended to read as follows:

(1) A county must apply to the board for assistance from

the risk pool on or before April 1January 25 to cover an

unanticipated net expenditure amount in excess of the county's

current fiscal year budgeted net expenditure amount for the

county's services fund. The risk pool board shall make its

final decisions on or before February 25 regarding acceptance

or rejection of the applications for assistance and the total

amount accepted shall be considered obligated. For purposes

of applying for risk pool assistance and for repaying unused

risk pool assistance, the current fiscal year budgeted net

expenditure amount shall be deemed to be the higher of either

the budgeted net expenditure amount in the management plan

approved under section 331.439 for the fiscal year in which

the application is made or the prior fiscal year's net

expenditure amount.

(6) The total amount of risk pool assistance shall be

limited to the amount available in the risk pool for a fiscal

year. If the total amount of eligible assistance exceeds the

amount available in the risk pool the amount of assistance

paid shall be prorated among the counties eligible for

assistance. Moneys remaining unexpended or unobligated in the

risk pool at the close of a fiscal year shall remain available

for distribution in the succeeding fiscal yearfollowing the

risk pool board's decisions made pursuant to subparagraph (1)

shall be distributed to the counties eligible to receive

funding from the allowed growth factor adjustment

appropriation for the fiscal year using the distribution

methodology applicable to that appropriation.

Sec. 2.

COUNTY MENTAL HEALTH, MENTAL RETARDATION, AND DEVELOPMENTAL DISABILITIES ALLOWED GROWTH FACTOR ADJUSTMENT AND ALLOCATIONS — FISCAL YEAR 2004-2005.

1. There is appropriated from the general fund of the

state to the department of human services for the fiscal year

beginning July 1, 2004, and ending June 30, 2005, the

following amount, or so much thereof as is necessary, to be

used for the purpose designated:

For distribution to counties of the county mental health,

mental retardation, and developmental disabilities allowed

growth factor adjustment, as provided in this section in lieu

of the provisions of section 331.438, subsection 2, and

section 331.439, subsection 3, and chapter 426B:

.................................................. $ 23,738,749

2. The funding appropriated in this section is the allowed

growth factor adjustment for fiscal year 2004-2005, and is

allocated as follows:

a. For distribution as provided by law:

.................................................. $ 21,738,749

b. For deposit in the risk pool created in the property

tax relief fund and for distribution in accordance with

section 426B.5, subsection 2:

.................................................. $ 2,000,000

Sec. 3.

2002 Iowa Acts, chapter 1175, section 104,

subsections 2, 4 and 5, as amended by 2003 Iowa Acts, House

File 667, section 41, are amended to read as follows:

2. The following formula amounts shall be utilized only to

calculate preliminary distribution amounts for fiscal year

2003-2004 under this section by applying the indicated formula

provisions to the formula amounts and producing a preliminary

distribution total for each county:

a. For calculation of an allowed growth factor adjustment

amount for each county in accordance with the formula in

section 331.438, subsection 2, paragraph "b":

.................................................. $ 12,000,000

b. For calculation of a distribution amount for eligible

counties from the per capita expenditure target pool created

in the property tax relief fund in accordance with the

requirements in section 426B.5, subsection 1:

.................................................. $ 12,492,712

14,492,000

c. For calculation of a distribution amount for counties

from the mental health and developmental disabilities (MH/DD)

community services fund in accordance with the formula

provided in the appropriation made for the MH/DD community

services fund for the fiscal year beginning July 1, 2003:

.................................................. $ 17,727,890

4. After applying the applicable statutory distribution

formulas to the amounts indicated in subsection 2 for purposes

to produce preliminary distribution totals, the department of

human services shall apply a withholding factor to adjust an

eligible individual county's preliminary distribution total.

An ending balance percentage for each county shall be

determined by expressing the county's ending balance on a

modified accrual basis under generally accepted accounting

principles for the fiscal year beginning July 1, 2002, in the

county's mental health, mental retardation, and developmental

disabilities services fund created under section 331.424A, as

a percentage of the county's gross expenditures from that fund

for that fiscal year. The withholding factor for a county

shall be the following applicable percent:

a. For an ending balance percentage of less than 10

percent, a withholding factor of 0 percent. In addition to

the county's adjusted distribution total, a county that is

subject to this paragraph "a" shall receive an inflation

adjustment equal to 2.6 percent of the gross expenditures

reported for the county's services fund for that fiscal year.

b. For an ending balance percentage of 10 through 24

percent, a withholding factor of 25 percent.

c. For an ending balance percentage of 25 through 34

percent, a withholding factor of 60 percent.

d. For an ending balance percentage of 35 through 44

percent, a withholding factor of 85 percent.

e.d. For an ending balance percentage of 4535 percent or

more, a withholding factor of 100 percent.

5. The total withholding amounts applied pursuant to

subsection 4 shall be equal to a withholding target amount of

$7,419,074 and the appropriation enacted by the Eightieth

General Assembly, 2003 Session, for the MH/DD community

services fund shall be reduced by the amount necessary to

attain the withholding target amount$9,418,362. If the

department of human services determines that the amount to be

withheld in accordance with subsection 4 is not equal to the

target withholding amount, the department shall adjust the

withholding factors listed in subsection 4 as necessary to

achieve the withholding target amount. However, in making

such adjustments to the withholding factors, the department

shall strive to minimize changes to the withholding factors

for those ending balance percentage ranges that are lower than

others and shall not adjust the zero withholding factor or the

inflation adjustment percentage specified in subsection 4,

paragraph "a".

Sec. 4.

GENERAL ASSEMBLY.

The appropriations made

pursuant to section 2.12 for the expenses of the general

assembly and legislative agencies for the fiscal year

beginning July 1, 2003, and ending June 30, 2004, are reduced

by the following amount:

.................................................. $ 2,000,000

Sec. 5.

REBUILD IOWA INFRASTRUCTURE FUND.

Notwithstanding

section 8.56, subsection 4, there is appropriated from the

cash reserve fund to the rebuild Iowa infrastructure fund

created in section 8.57 for the fiscal year beginning July 1,

2002, and ending June 30, 2003, the following amount:

.................................................. $ 2,150,000

Sec. 6.

ENVIRONMENT FIRST FUND.

Notwithstanding the

amount of the standing appropriation from the rebuild Iowa

infrastructure fund under section 8.57A, subsection 4, there

is appropriated from the rebuild Iowa infrastructure fund to

the environment first fund, in lieu of the appropriation made

in section 8.57A, for the fiscal year beginning July 1, 2002,

and ending June 30, 2003, the following amount:

.................................................. $ 18,445,000

Sec. 7.

AT-RISK CHILDREN PROGRAMS.

Notwithstanding the

standing appropriation in section 279.51, subsection 1, the

amount appropriated from the general fund of the state under

section 279.51, subsection 1, to the department of education

for the fiscal year beginning July 1, 2003, and ending June

30, 2004, is reduced by the following amount:

.................................................. $ 1,000,000

The amount of the reduction in this section shall be

prorated among the programs specified in section 279.51,

subsection 1, paragraphs "a", "b", and "c".

Sec. 8.

PUBLIC TRANSIT ASSISTANCE APPROPRIATION.

Notwithstanding section 312.2, subsection 14, the amount

appropriated from the general fund of the state under section

312.2, subsection 14, to the state department of

transportation for public transit assistance under chapter

324A for the fiscal year beginning July 1, 2003, and ending

June 30, 2004, is reduced by the following amount:

.................................................. $ 1,298,675

Sec. 9. Section 294A.25, subsection 1, Code 2003, is amended to read as follows:

1. For the fiscal year beginning July 1, 20002003, and

for each succeeding year, there is appropriated from the

general fund of the state to the department of education the

amount of eightyfifty-six million eight hundred ninety-one

thousand three hundred thirty-six dollars to be used to

improve teacher salaries. The moneys shall be distributed as

provided in this section.

Sec. 10.

EFFECTIVE DATE.

The sections of this division of

this Act relating to the appropriations made to the rebuild

Iowa infrastructure fund and environment first fund for the

fiscal year beginning July 1, 2002, being deemed of immediate

importance, take effect upon enactment.

Sec. 11.

Notwithstanding the standing appropriations in

the following designated sections for the fiscal year

beginning July 1, 2003, and ending June 30, 2004, the amounts

appropriated from the general fund of the state pursuant to

those sections for the following designated purposes shall not

exceed the following amounts:

1. For compensation of officers and enlisted persons and

their expenses while on state active duty as authorized in

section 29A.27:

.................................................. $ 432,450

2. For payment for nonpublic school transportation under

section 285.2:

.................................................. $ 7,799,550

If total approved claims for reimbursement for nonpublic

school pupil transportation claims exceed the amount

appropriated in this section, the department of education

shall prorate the amount of each claim.

3. For printing cigarette tax stamps under section 453A.7:

.................................................. $ 110,055

4. For the state's share of the cost of the peace

officers' retirement benefits under section 411.20:

.................................................. $ 2,816,189

5. For payment of livestock production credit refunds

under section 422.121:

.................................................. $ 1,815,735

6. For reimbursement for the homestead property tax credit

under section 425.1:

.................................................. $105,585,004

7. For reimbursement for the agricultural land and family

farm tax credits under section 426.1:

.................................................. $ 35,497,624

8. For reimbursement for the military service tax credit

under section 426A.1A:

.................................................. $ 2,569,712

9. For administration expenses of the state unemployment

compensation law under chapter 96:

.................................................. $ 450,000

10. For payment of certain interest costs due the federal

government under the federal Cash Management and Improvement

Act under section 421.31:

.................................................. $ 550,000

11. For funding the state's deferred compensation program

established for state employees under section 509A.12:

.................................................. $ 56,501

Sec. 12.

ELDERLY AND DISABLED CREDIT.

Notwithstanding the

standing appropriation in section 425.39, the amount

appropriated from the general fund of the state under section

425.39, for the fiscal year beginning July 1, 2003, and ending

June 30, 2004, for purposes of implementing the elderly and

disabled credit and reimbursement portion of the extraordinary

property tax and reimbursement division of chapter 425, shall

not exceed $16,651,800. The director shall pay, in full, all

claims to be paid during the fiscal year beginning July 1,

2003, for reimbursement of rent constituting property taxes

paid. If the amount of claims for credit for property taxes

due to be paid during the fiscal year beginning July 1, 2003,

exceeds the amount remaining after payment to renters, the

director of revenue and finance shall prorate the payments to

the counties for the property tax credit. In order for the

director to carry out the requirements of this section,

notwithstanding any provision to the contrary in sections

425.16 through 425.39, claims for reimbursement for rent

constituting property taxes paid filed before May 1, 2004,

shall be eligible to be paid in full during the fiscal year

ending June 30, 2004, and those claims filed on or after May

1, 2004, shall be eligible to be paid during the fiscal year

beginning July 1, 2004, and the director is not required to

make payments to counties for the property tax credit before

June 15, 2004.

Sec. 13.

REDUCTION IN CREDITS NOT APPLICABLE.

The

provision in section 25B.7 relating to the proration of the

property tax credits does not apply with respect to the amount

of state reimbursement for property tax credits under this

division.

Sec. 14.

IOWA ECONOMIC EMERGENCY AND RESERVE FUNDS — EARNINGS.

Notwithstanding section 8.55, subsection 4, and

section 8.56, subsection 1, for the fiscal year beginning July

1, 2003, and ending June 30, 2004, the interest and earnings

on moneys deposited in the Iowa economic emergency fund and

the cash reserve fund shall be credited to the general fund of

the state.

Sec. 15.

USE OF REVERSIONS.

Notwithstanding section 8.62,

if on June 30, 2004, a balance of an operational

appropriation, as defined in section 8.62, except for the

balances of charter agencies, as defined in section 7J.1, if

enacted by 2003 Iowa Acts, Senate File 453, remains unexpended

or unencumbered, the balance shall revert to the general fund

of the state as provided in section 8.33.

Sec. 16.

KEEP IOWA BEAUTIFUL FUND.

For the fiscal years

beginning July 1, 2002, and July 1, 2003, moneys credited to

the keep Iowa beautiful fund in accordance with section

422.12A are appropriated to the state department of

transportation to be used for the purposes provided in section

314.28.

Sec. 17.

ENDOWMENT FOR IOWA'S HEALTH.

For the fiscal year

beginning July 1, 2003, and ending June 30, 2004, of the

$70,000,000 to be deposited in the endowment for Iowa's health

account of the tobacco settlement trust fund under 2001 Iowa

Acts, chapter 174, section 1, subsection 1, the following

amount shall instead be deposited in the general fund of the

state:

.................................................. $ 20,000,000

Sec. 18.

JUNIOR OLYMPICS.

There is appropriated from the

general fund of the state to the department of economic

development for the fiscal year beginning July 1, 2003, and

ending June 30, 2004, the following amount, or so much thereof

as is necessary, to be used for the purpose designated:

For providing assistance to a city or nonprofit

organization hosting the national junior olympics:

.................................................. $ 50,000

Sec. 19.

REBUILD IOWA INFRASTRUCTURE FUND.

Notwithstanding section 8.57, subsection 5, there is

appropriated from the rebuild Iowa infrastructure fund

created in section 8.57, subsection 5, to the general

fund of the state during the fiscal year beginning

July 1, 2003, and ending June 30, 2004, the following

amount:

.................................................. $ 10,000,000

Sec. 20.

IOWA LAW ENFORCEMENT ACADEMY.

2003 Iowa Acts,

Senate File 439, section 10, subsection 1, unnumbered

paragraph 2, if enacted, is amended to read as follows:

For salaries, support, maintenance, miscellaneous purposes,

including jailer training and technical assistance, and for

not more than the following full-time equivalent positions:

.................................................. $ 1,002,629

1,047,629

............................................... FTEs 30.05

Sec. 21.

MILITARY PAY DIFFERENTIAL.

There is appropriated

from the cash reserve fund to the department of revenue and

finance or its successor agency for the period beginning March

19, 2003, and ending June 30, 2003, the following amount, or

so much thereof as is necessary, for the purposes designated:

For a military pay differential program and health

insurance retention program for individuals activated for the

armed services of the United States, for employees on the

central payroll system:

.................................................. $ 1,810,000

Of the funds appropriated in this section, up to $10,000 is

transferred to the Iowa department of public health for

allocation to community mental health centers to provide

counseling services to persons who are members of the national

guard and reservists activated but as yet not sent to combat

zones and to the persons' family members. The sessions shall

be provided on a first come, first served basis and shall be

limited to three visits per family.

The department or agency receiving funds under this section

shall report monthly to the fiscal committee of the

legislative council on the use of the funds.

Notwithstanding section 8.33, unencumbered or unobligated

funds remaining on June 30, 2003, from the appropriation made

in this section shall not revert but shall remain available to

be used for the purposes designated in the following fiscal

year.

Sec. 22.

ASSISTED LIVING PROGRAMS.

Notwithstanding

section 231C.6, any fees remaining on June 30, 2003, in the

assisted living program fund created pursuant to section

231C.6 are appropriated to the department of inspections and

appeals for the fiscal year beginning July 1, 2003, and ending

June 30, 2004, to carry out the purposes of chapter 231C.

Sec. 23.

COUNTY HOSPITALS.

There is appropriated from the

general fund of the state to the department of human services

for the fiscal year beginning July 1, 2003, and ending June

30, 2004, the following amount, or so much thereof as is

necessary, for the purpose designated:

For support of operational expenses of county hospitals in

counties having a population of two hundred twenty-five

thousand or more:

.................................................. $ 312,000

Sec. 24.

WORKFORCE DEVELOPMENT.

There is appropriated

from the general fund of the state to the Iowa department of

workforce development for the fiscal year beginning July 1,

2003, and ending June 30, 2004, the following amount, or so

much thereof as is necessary, for the purpose designated:

For salaries and support and for the following full-time

equivalent positions:

.................................................. $ 250,000

............................................... FTEs 5.00

The appropriation in this section shall be used for four

OSHA inspectors and one workers' compensation compliance

officer. The appropriation in this section is contingent upon

the enactment of 2003 Iowa Acts, Senate File 344, by the

Eightieth General Assembly, 2003 Regular Session.

Sec. 25.

UNEMPLOYMENT TRUST FUND.

There is appropriated

from moneys transferred to the state on March 13, 2002,

pursuant to section 903(d) of the federal Social Security Act,

as amended, to the department of workforce development, the

following amount, to be deposited, under the direction of the

department of workforce development, in the unemployment

compensation fund for the payment of unemployment benefits and

for the establishment of the unemployment compensation reserve

fund:

.................................................. $ 40,000,000

Sec. 26.

UNEMPLOYMENT TAX AND CLAIM SYSTEM.

There is

appropriated from moneys transferred to the state on March 13,

2002, pursuant to section 903(d) of the federal Social

Security Act, as amended, to the department of workforce

development, the following amount for purposes of automation

and technology for the unemployment tax and claim system:

.................................................. $ 20,000,000

Sec. 27.

ENHANCED SERVICES TO CLAIMANTS.

There is

appropriated from moneys transferred to the state on March 13,

2002, pursuant to section 903(d) of the federal Social

Security Act, as amended, to the department of workforce

development the following amount for purposes of

infrastructure improvements and the administrative and

technology costs associated with enhanced services to

unemployment benefit claimants for workforce and labor

exchange services:

.................................................. $ 20,700,000

Sec. 28.

FEDERAL FISCAL RELIEF FUNDING.

If the

one hundred eighth United States Congress enacts an

economic stimulus package that includes the provision

of discretionary funding to the state to provide state

or local government fiscal relief, the funding shall

be deposited in the fund created by section 8.41.

Sec. 29. Section 8.55, subsection 2, paragraph c, Code 2003, is amended to read as follows:

c. Notwithstanding paragraph "a", any moneys in excess of

the maximum balance in the economic emergency fund after the

distribution of the surplus in the general fund of the state

at the conclusion of each fiscal year and after the

appropriate amount has been transferred pursuant to paragraph

"b", shall not be transferred to the general fund of the state

but shall be transferred to the senior living trust fund. The

total amount transferred, in the aggregate, under this

paragraph for all fiscal years shall not exceed fifty-oneone

hundred eighteen million five hundred thousand dollars.

Sec. 30. Section 8.55, subsection 2, paragraph d, Code 2003, is amended to read as follows:

d. Notwithstanding paragraph "a", any moneys in excess of

the maximum balance in the economic emergency fund after the

distribution of the surplus in the general fund of the state

at the conclusion of each fiscal year and after the

appropriate amounts have been transferred pursuant to

paragraphs "b" and "c" shall not be transferred to the general

fund of the state but shall be transferred to the endowment

for Iowa's health account of the tobacco settlement trust

fund. The total amount transferred, in the aggregate, under

this paragraph for all fiscal years shall not exceed the

difference between sixtyone hundred one million fiveseven

hundred fifty-one thousand dollars and the amounts transferred

to the endowment for Iowa's health account to repay the

amounts transferred or appropriated from the endowment for

Iowa's health account in 2002 Iowa Acts, chapter 1165, 2002

Iowa Acts, chapter 1166, 2002 Iowa Acts, chapter 1167, and

2002 Iowa Acts, Second Extraordinary Session, chapter 1003,

and 2003 Iowa Acts, House File 685.

Sec. 31. Section 8.57, subsection 1, paragraph a, unnumbered paragraph 1, Code Supplement 2001, as enacted by 2002 Iowa Acts, Second Extraordinary Session, chapter 1001, section 28, is amended to read as follows:

The "cash reserve goal percentage" for fiscal years

beginning on or after July 1, 20032004, is seven and one-half

percent of the adjusted revenue estimate. For each fiscal

year beginning on or after July 1, 2003, in which the

appropriation of the surplus existing in the general fund of

the state at the conclusion of the prior fiscal year pursuant

to paragraph "b" was not sufficient for the cash reserve fund

to reach the cash reserve goal percentage for the current

fiscal year, there is appropriated from the general fund of

the state an amount to be determined as follows:

Sec. 32. Section 96.9, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 8. UNEMPLOYMENT COMPENSATION RESERVE FUND.

a. A special fund to be known as the unemployment

compensation reserve fund is created in the state treasury.

The reserve fund is separate and distinct from the

unemployment compensation fund. All moneys collected as

reserve contributions, as defined in paragraph "b", shall be

deposited in the reserve fund. The moneys in the reserve fund

may be used for the payment of unemployment benefits and shall

remain available for expenditure in accordance with the

provisions of this subsection. The treasurer of state shall

be the custodian of the reserve fund and shall disburse the

moneys in the reserve fund in accordance with this subsection

and the directions of the director of the department of

workforce development.

b. If the balance in the reserve fund on July 1 of the

preceding calendar year for calendar year 2004 and each year

thereafter is less than one hundred fifty million dollars, a

percentage of contributions, as determined by the director,

shall be deemed to be reserve contributions for the following

calendar year. If the percentage of contributions, termed the

reserve contribution tax rate, is not zero percent as

determined pursuant to this subsection, the combined tax rate

of contributions to the unemployment compensation fund and to

the unemployment compensation reserve fund shall be divided so

that a minimum of fifty percent of the combined tax rate

equals the unemployment contribution tax rate and a maximum of

fifty percent of the combined tax rate equals the reserve

contribution tax rate except for employers who are assigned a

combined tax rate of five and four-tenths. For those

employers, the reserve contribution tax rate shall equal zero

and their combined tax rate shall equal their unemployment

contribution rate. When the reserve contribution tax rate is

determined to be zero percent, the unemployment contribution

rate for all employers shall equal one hundred percent of the

combined tax rate. The reserve contributions collected in any

calendar year shall not exceed fifty million dollars. The

provisions for collection of contributions under section 96.14

are applicable to the collection of reserve contributions.

Reserve contributions shall not be deducted in whole or in

part by any employer from the wages of individuals in its

employ. All moneys collected as reserve contributions shall

not become part of the unemployment compensation fund but

shall be deposited in the reserve fund created in this

subsection.

c. Moneys in the reserve fund shall only be used to pay

unemployment benefits to the extent moneys in the unemployment

compensation fund are insufficient to pay benefits during a

calendar quarter.

d. The interest earned on the moneys in the reserve fund

shall be deposited in and credited to the reserve fund.

e. Moneys from interest earned on the unemployment

compensation reserve fund shall be used by the department only

upon appropriation by the general assembly and only for

purposes contained in section 96.7, subsection 12, for

department of workforce development rural satellite offices,

and for administrative costs to collect the reserve

contributions.

Sec. 33. Section 256D.4, subsection 2, unnumbered paragraph 1, Code 2003, is amended to read as follows:

For each fiscal year in the fiscal period beginning July 1,

2001, and ending June 30, 2003, moneysMoneys appropriated

pursuant to section 256D.5, subsection 3, shall be allocated

to school districts as follows:

Sec. 34. Section 256D.5, subsection 3, Code 2003, is amended to read as follows:

3. For each fiscal year of the fiscal period beginning

July 1, 2001, and ending June 30, 20032004, the sum of thirty

million dollars.

Sec. 35. Section 260G.4B, subsection 1, Code 2003, is amended to read as follows:

1. The total amount of program job credits from all

employers which shall be allocated for all accelerated career

education programs in the state in any one fiscal year shall

not exceed the sum of three million dollars in the fiscal year

beginning July 1, 2000, three million dollars in the fiscal

year beginning July 1, 2001, three million dollars in the

fiscal year beginning July 1, 2002, four million dollars in

the fiscal year beginning July 1, 2003, and six million

dollars in the fiscal year beginning July 1, 20032004, and

every fiscal year thereafter. Any increase in program job

credits above the six-million-dollar limitation per fiscal

year shall be developed, based on recommendations in a study

which shall be conducted by the department of economic

development of the needs and performance of approved programs

in the fiscal years beginning July 1, 2000, and July 1, 2001.

The study's findings and recommendations shall be submitted to

the general assembly by the department by December 31, 2002.

The study shall include but not be limited to an examination

of the quality of the programs, the number of program

participant placements, the wages and benefits in program

jobs, the level of employer contributions, the size of

participating employers, and employer locations. A community

college shall file a copy of each agreement with the

department of economic development. The department shall

maintain an annual record of the proposed program job credits

under each agreement for each fiscal year. Upon receiving a

copy of an agreement, the department shall allocate any

available amount of program job credits to the community

college according to the agreement sufficient for the fiscal

year and for the term of the agreement. When the total

available program job credits are allocated for a fiscal year,

the department shall notify all community colleges that the

maximum amount has been allocated and that further program job

credits will not be available for the remainder of the fiscal

year. Once program job credits have been allocated to a

community college, the full allocation shall be received by

the community college throughout the fiscal year and for the

term of the agreement even if the statewide program job credit

maximum amount is subsequently allocated and used.

Sec. 36. Section 294A.25, subsection 10, Code 2003, is amended to read as follows:

10. For theeach fiscal year beginning July 1, 2001, and

ending June 30, 2002, to the department of education from

phase III moneys the amount of forty-seven thousand dollars

for the Iowa mathematics and science coalition.

Sec. 37.

Section 427B.19A, subsection 1, as amended by

2003 Iowa Acts, Senate File 453, if enacted, is amended to

read as follows:

1. The industrial machinery, equipment and computers

property tax replacement fund is created. For the fiscal year

beginning July 1, 1996, through the fiscal year ending June

30, 2004, there is appropriated annually from the general fund

of the state to the department of revenue and finance to be

credited to the industrial machinery, equipment and computers

property tax replacement fund, an amount sufficient to

implement this division. However, for the fiscal year

beginning July 1, 2003, the amount appropriated to the

department of revenue and finance to be credited to the

industrial machinery, equipment and computers tax replacement

fund is teneleven million two hundred eighty-one thousand six

hundred eighty-five dollars.

Sec. 38.

2001 Iowa Acts, chapter 174, section 1,

subsection 2, as amended by 2002 Iowa Acts, chapter 1174,

section 8, is amended to read as follows:

2. There is appropriated from the general fund of the

state to the endowment for Iowa's health account of the

tobacco settlement trust fund created in section 12E.12, for

the designated fiscal years, the following amounts, to be used

for the purposes specified in section 12E.12 for the endowment

for Iowa's health account:

FY 2001-2002 ..................................... $ 7,248,000

FY 2003-2004 ..................................... $ 28,251,000

0

FY 2004-2005 ..................................... $ 29,785,000

FY 2005-2006 ..................................... $ 29,562,000

FY 2006-2007 ..................................... $ 17,773,000

Sec. 39.

2002 Iowa Acts, chapter 1173, section 18, is

amended to read as follows:

SEC.

18. POOLED TECHNOLOGY FUNDING — PRIOR ALLOCATIONS —

NONREVERSION. Notwithstanding section 8.33, moneys

appropriated and allocated in 2001 Iowa Acts, chapter 189,

section 5, subsection 1, which remain unobligated or

unexpended at the close of the fiscal year for which they were

appropriated shall not revert, but shall remain available for

expenditure for the purposes for which they were appropriated

and allocated, for the fiscal yearperiod beginning July 1,

2002, and ending June 30, 20032004.

Sec. 40.

2002 Iowa Acts, Second Extraordinary Session,

chapter 1001, section 33, is amended to read as follows:

SEC.

33. EFFECTIVE DATE — APPLICABILITY. The amendments

to the following designated Code provisions in this division

of this Act take effect July 1, 20032004:

1. Section 8.55, subsection 2, paragraph "a".

2. Section 8.56, subsection 4, paragraph "b".

3. Section 8.57, subsection 1, paragraph "a".

Sec. 41.

FRANCHISE TAX REVENUE ALLOCATION.

There is

appropriated from the franchise tax revenues deposited in the

general fund of the state to the department of revenue and

finance for the fiscal year beginning July 1, 2003, and ending

June 30, 2004, $8,800,000 to be allocated as follows:

1. Sixty percent to the general fund of the city from

which the tax is collected.

2. Forty percent to the county from which the tax is

collected.

If the financial institution maintains one or more offices

for the transaction of business, other than its principal

office, a portion of its franchise tax shall be allocated to

each office, based upon a reasonable measure of the business

activity of each office. The director of revenue and finance

shall prescribe, for each type of financial institution, a

method of measuring the business activity of each office.

Financial institutions shall furnish all necessary information

for this purpose at the request of the director. The

allocation shall be distributed quarterly.

Sec. 42.

2003 Iowa Acts, Senate File 453, section 28, if

enacted, is repealed.

Sec. 43.

2002 Iowa Acts, Second Extraordinary Session,

chapter 1003, section 9, subsection 1, is amended to read as

follows:

1. RACETRACK REGULATION

There is appropriated from the general fund of the state to

the racing and gaming commission of the department of

inspections and appeals for the fiscal year beginning July 1,

2002, and ending June 30, 2003, the following amount, or so

much thereof as is necessary, to be used for the purposes

designated:

For salaries, support, maintenance, and miscellaneous

purposes for the regulation of pari-mutuel racetracks, and for

not more than the following full-time equivalent positions:

.................................................. $ 2,083,762

2,163,762

............................................... FTEs 24.78

Of the funds appropriated in this subsection, $85,576 shall

be used to conduct an extended harness racing season.

Sec. 44.

2003 Iowa Acts, House File 655, section 24, if

enacted, is amended to read as follows:

SEC.

24. READY TO WORK PROGRAM COORDINATOR. There is

appropriated from the surplus funds in the long-term

disability reserve fund and the workers' compensation trust

fund to the department of personnel for the fiscal year

beginning July 1, 2003, and ending June 30, 2004, the

following amount, or so much thereof as is necessary, to be

used for the purposes designated:

For the salary, support, and miscellaneous expenses for the

ready to work program and coordinator:

.................................................. $ 89,416

The moneys appropriated pursuant to this section shall be

taken in equal proportions from the long-term disability

reserve fund and the workers' compensation trust fund.

Sec. 45.

2003 Iowa Acts, House File 655, section 34, if

enacted, is amended to read as follows:

SEC.

34. READY TO WORK PROGRAM COORDINATOR. There is

appropriated from the surplus funds in the long-term

disability reserve fund and the workers' compensation trust

fund to the department of administrative services for the

fiscal year beginning July 1, 2003, and ending June 30, 2004,

the following amount, or so much thereof as is necessary, to

be used for the purposes designated:

For the salary, support, and miscellaneous expenses for the

ready to work program and coordinator:

.................................................. $ 89,416

The moneys appropriated pursuant to this section shall be

taken in equal proportions from the long-term disability

reserve fund and the workers' compensation trust fund.

Sec. 46.

CONTINGENT CASH RESERVE APPROPRIATION.

1. There is appropriated from the cash reserve fund to the

general fund of the state for the fiscal year beginning July

1, 2002, and ending June 30, 2003, for the purposes of

reducing or preventing any overdraft on or deficit in the

general fund of the state, an amount not to exceed

$50,000,000.

2. The appropriation made in subsection 1 is contingent

upon all of the following having occurred:

a. The revenue estimating conference estimate of general

fund receipts made during the last quarter of the fiscal year

was or the actual fiscal year receipts and accruals were at

least one-half of one percent less than the comparable

estimate made during the third quarter of the fiscal year.

b. The governor has implemented the uniform reductions in

appropriations required in section 8.31 as a result of

paragraph "a" and such reduction was insufficient to prevent

an overdraft on or deficit in the general fund of the state or

the governor did not implement uniform reductions in

appropriations because of the lateness of the estimated or

actual receipts and accruals under paragraph "a".

c. The balance of the general fund of the state at the end

of the fiscal year prior to the appropriation made in

subsection 1 was negative.

d. The governor has issued an official proclamation and

has notified the cochairpersons of the fiscal committee of the

legislative council and the legislative services agency that

the contingencies in paragraphs "a" through "c" have occurred

and the reasons why the uniform reductions specified in

paragraph "b" were insufficient or were not implemented to

prevent an overdraft on or deficit in the general fund of the

state.

3. If an appropriation is made pursuant to subsection 1

for a fiscal year, there is appropriated from the general fund

of the state to the cash reserve fund for the following fiscal

year, the amount of the appropriation made pursuant to

subsection 1.

Sec. 47.

EFFECTIVE DATE.

The following provisions of this

division of this Act, being deemed of immediate importance,

take effect upon enactment:

1. The section appropriating moneys from the keep Iowa

beautiful fund.

2. The section amending 2002 Iowa Acts, chapter 1173,

section 18, relating to the nonreversion of pooled technology

funding.

3. The section appropriating moneys from the cash reserve

fund for the military pay differential program. This section

applies retroactively to March 19, 2003.

4. The section appropriating moneys from the assisted

living program fund.

5. The section making the contingent appropriation from

the cash reserve fund.

6. The section amending 2002 Iowa Acts, Second

Extraordinary Session, chapter 1003, section 9, relating to

racetrack regulation.

7. The amendment to section 96.9.

Sec. 48.

COLLECTIVE BARGAINING AGREEMENTS FUNDED — GENERAL FUND.

There is appropriated from the general fund of

the state to the salary adjustment fund for distribution by

the department of management to the various state departments,

boards, commissions, councils, and agencies, and to the state

board of regents for those persons employed at the state

school for the deaf and the Iowa braille and sight saving

school, for the fiscal year beginning July 1, 2003, and ending

June 30, 2004, the amount of $28,000,000, or so much thereof

as may be necessary, to fully fund annual pay adjustments,

expense reimbursements, and related benefits implemented

pursuant to the following:

1. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the blue collar bargaining

unit.

2. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the public safety bargaining

unit.

3. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the security bargaining unit.

4. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the technical bargaining unit.

5. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the professional fiscal and

staff bargaining unit.

6. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the clerical bargaining unit.

7. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the professional social

services bargaining unit.

8. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the community-based corrections

bargaining unit.

9. The collective bargaining agreements negotiated

pursuant to chapter 20 for employees in the judicial branch of

government bargaining units.

10. The collective bargaining agreement negotiated

pursuant to chapter 20 for employees in the patient care

bargaining unit.

11. The collective bargaining agreement negotiated

pursuant to chapter 20 for employees in the science bargaining

unit.

12. The annual pay adjustments, related benefits, and

expense reimbursements referred to in the sections of this

division of this Act for employees not covered by a collective

bargaining agreement.

Of the amount appropriated in this section, $2,668,000

shall be allocated to the judicial branch for the purpose of

funding annual pay adjustments, expense reimbursements, and

related benefits implemented for judicial branch employees.

In distributing the remainder of the amount appropriated in

this section, the department of management, in order to

address essential public protection functions and recognizing

the availability of funds appropriated in other Acts of the

general assembly and other sources, shall give priority, in

descending order, to the department of corrections, department

of human services, and department of public safety, and then

to the remaining state departments, boards, commissions,

councils, and agencies to which the appropriation is

applicable.

Sec. 49.

NONCONTRACT STATE EMPLOYEES — GENERAL.

1.

a. For the fiscal year beginning July 1, 2003, the

maximum salary levels of all pay plans provided for in section

19A.9, subsection 2, as they exist for the fiscal year ending

June 30, 2003, shall be increased by 2 percent for the pay

period beginning June 20, 2003, and any additional changes in

the pay plans shall be approved by the governor.

b. For the fiscal year beginning July 1, 2003, employees

may receive a step increase or the equivalent of a step

increase.

2. The pay plans for state employees who are exempt from

chapter 19A and who are included in the department of revenue

and finance's centralized payroll system shall be increased in

the same manner as provided in subsection 1, and any

additional changes in any executive branch pay plans shall be

approved by the governor. However, commencing July 1, 2003,

the consumer advocate shall receive an annual salary in the

same salary range as the chairperson and members of the

utilities board.

3. This section does not apply to members of the general

assembly, board members, commission members, salaries of

persons set by the general assembly in statute, salaries of

appointed state officers set by the governor, other persons

designated, employees designated under section 19A.3,

subsection 5, and employees covered by 581 IAC 4.6(3).

4. The pay plans for the bargaining eligible employees of

the state shall be increased in the same manner as provided in

subsection 1, and any additional changes in such executive

branch pay plans shall be approved by the governor. As used

in this section, "bargaining eligible employee" means an

employee who is eligible to organize under chapter 20, but has

not done so.

5. The policies for implementation of this section shall

be approved by the governor.

Sec. 50.

STATE EMPLOYEES — STATE BOARD OF REGENTS.

1. Funds from the appropriation made in this division of

this Act from the general fund of the state to the salary

adjustment fund shall be allocated by the department of

management to the state board of regents for the purposes of

providing increases for state board of regents employees at

the state school for the deaf and the Iowa braille and sight

saving school who are addressed by that appropriation and

employees of the schools who are not covered by a collective

bargaining agreement.

2. The state board of regents office and the state

university of Iowa, Iowa state university of science and

technology, and the university of northern Iowa shall provide

from available sources pay adjustments, expense

reimbursements, and related benefits to fully fund the

following:

a. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the university of northern Iowa

faculty bargaining unit.

b. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the patient care bargaining

unit.

c. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the science bargaining unit.

d. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the state university of Iowa

graduate student bargaining unit.

e. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the state university of Iowa

hospital and clinics tertiary health care bargaining unit.

f. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the blue collar bargaining

unit.

g. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the public safety bargaining

unit.

h. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the security bargaining unit.

i. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the technical bargaining unit.

j. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the professional fiscal and

staff bargaining unit.

k. The collective bargaining agreement negotiated pursuant

to chapter 20 for employees in the clerical bargaining unit.

l. The annual pay adjustments, related benefits, and

expense reimbursements referred to in the sections of this

division of this Act for employees not covered by a collective

bargaining agreement.

Sec. 51.

APPROPRIATIONS FROM ROAD FUNDS.

1. There is appropriated from the road use tax fund to the

salary adjustment fund for the fiscal year beginning July 1,

2003, and ending June 30, 2004, the following amount, or so

much thereof as may be necessary, to be used for the purpose

designated:

To supplement other funds appropriated by the general

assembly:

.................................................. $ 3,000,000

2. There is appropriated from the primary road fund to the

salary adjustment fund, for the fiscal year beginning July 1,

2003, and ending June 30, 2004, the following amount, or so

much thereof as may be necessary, to be used for the purpose

designated:

To supplement other funds appropriated by the general

assembly:

.................................................. $ 12,000,000

3. Except as otherwise provided in this division of this

Act, the amounts appropriated in subsections 1 and 2 shall be

used to fund the annual pay adjustments, expense

reimbursements, and related benefits for public employees as

provided in this division of this Act.

Sec. 52.

SPECIAL FUNDS — AUTHORIZATION.

To departmental

revolving, trust, or special funds, except for the primary

road fund or the road use tax fund, for which the general

assembly has established an operating budget, a supplemental

expenditure authorization is provided, unless otherwise

provided, in an amount necessary to fund salary adjustments as

otherwise provided in this division of this Act.

Sec. 53.

GENERAL FUND SALARY MONEYS.

Funds appropriated

from the general fund of the state in this division of this

Act relate only to salaries supported from general fund

appropriations of the state except for employees of the state

board of regents at the state school for the deaf and the Iowa

braille and sight saving school. The funds appropriated from

the general fund of the state for employees at the state

school for the deaf and the Iowa braille and sight saving

school of the state board of regents shall exclude general

university indirect costs and general university federal

funds.

Sec. 54.

FEDERAL FUNDS APPROPRIATED.

All federal grants

to and the federal receipts of the agencies affected by this

division of this Act which are received and may be expended

for purposes of this division of this Act are appropriated for

those purposes and as set forth in the federal grants or

receipts.

Sec. 55.

STATE TROOPER MEAL ALLOWANCE.

The sworn peace

officers in the department of public safety who are not

covered by a collective bargaining agreement negotiated

pursuant to chapter 20 shall receive the same per diem meal

allowance as the sworn peace officers in the department of

public safety who are covered by a collective bargaining

agreement negotiated pursuant to chapter 20.

Sec. 56.

SALARY MODEL COORDINATOR.

Of the funds

appropriated in this division of this Act from the general

fund of the state, $126,767 for the fiscal year beginning July

1, 2003, is allocated to the department of management for

salary and support of the salary model coordinator who shall

work in conjunction with the legislative fiscal bureau to

maintain the state's salary model used for analyzing,

comparing, and projecting state employee salary and benefit

information, including information relating to employees of

the state board of regents. The department of revenue and

finance, the department of personnel, the five institutions

under the jurisdiction of the state board of regents, the

eight judicial district departments of correctional services,

and the state department of transportation shall provide

salary data to the department of management and the

legislative fiscal bureau to operate the state's salary model.

The format and frequency of provision of the salary data shall

be determined by the department of management and the

legislative fiscal bureau. The information shall be used in

collective bargaining processes under chapter 20 and in

calculating the funding needs contained within the annual

salary adjustment legislation. A state employee organization

as defined in section 20.3, subsection 4, may request

information produced by the model, but the information

provided shall not contain information attributable to

individual employees.

Sec. 57.

Section 8A.202, subsection 2, paragraph e, if

enacted by 2003 Iowa Acts, House File 534, is amended by

striking the paragraph and inserting in lieu thereof the

following:

e. Developing and maintaining an electronic repository for

public access to reference copies of agency mandated reports,

newsletters, and publications in conformity with section

304B.10, subsection 1, paragraph "h". The department shall

develop technical standards for an electronic repository in

consultation with the state librarian and the state archivist.

Sec. 58.

2003 Iowa Acts, House File 289, section 1, is

amended by striking the section and inserting in lieu thereof

the following:

SECTION 1.

Section 12C.1, subsection 2, paragraph e, Code

2003, as amended by 2003 Iowa Acts, Senate File 395, is

amended by adding the following new subparagraph:

NEW SUBPARAGRAPH (6) Moneys placed in a depository for

the purpose of completing an electronic financial transaction

pursuant to section 8A.222 or 331.427.

Sec. 59. Section 99E.9, subsection 2, Code 2003, as amended by 2003 Iowa Acts, House File 171, section 31, is amended to read as follows:

2. Subject to the approval of the board, the commissioner

may enter into contracts for the operation and marketing of

the lottery, except that the board may by rule designate

classes of contracts other than major procurements which do

not require prior approval by the board. A major procurement

shall be as the result of competitive bidding with the

contract being awarded to the responsible vendor submitting

the lowest and best proposal. However, before a contract for

a major procurement is awarded, the division of criminal

investigation of the department of public safety shall conduct

a thorough background investigation of the vendor to whom the

contract is to be awarded. The commissioner and board shall

consult with the division of criminal investigation and shall

provide, by rule, for the scope of the thorough background

investigations and due diligence with regard to the background

investigations to be conducted in connection with major

procurements. The vendor shall submit to the division of

criminal investigation appropriate investigation

authorizations to facilitate this investigation. The

background investigation by the division of criminal

investigation may include a national criminal history record

check through the federal bureau of investigation. The

screening of vendors or their employees through the federal

bureau of investigation shall be conducted by submission of

fingerprints through the state criminal history repository to

the federal bureau of investigation. As used in this

subsection, "major procurement" means consulting agreements

and the major procurement contract with a business

organization for the printing of tickets, or for purchase or

lease of equipment or services essential to the operation of a

lottery game.

Sec. 60.

Section 99G.10, subsection 2, if enacted by 2003

Iowa Acts, Senate File 453, section 72, is amended to read as

follows:

2. Subject to the approval of the board, the chief

executive officer shall have the sole power to designate

particular employees as key personnel, but may take advice

from the department of personnel in making any such

designations. All key personnel shall be exempt from the

merit system described in chapter 19A8A, article 4. The

chief executive officer and the board shall have the sole

power to employ, classify, and fix the compensation of key

personnel. All other employees shall be employed, classified,

and compensated in accordance with chapters 19Achapter 8A,

article 4, and chapter 20.

Sec. 61.

Section 99G.22, subsection 1, if enacted by 2003

Iowa Acts, Senate File 453, is amended to read as follows:

1. The authority shall investigate the financial

responsibility, security, and integrity of any lottery system

vendor who is a finalist in submitting a bid, proposal, or

offer as part of a major procurement contract. Before a major

procurement contract is awarded, the division of criminal

investigation of the department of public safety shall conduct

a background investigation of the vendor to whom the contract

is to be awarded. The chief executive officer and board shall

consult with the division of criminal investigation and shall

provide for the scope of the background investigation and due

diligence to be conducted in connection with major procurement

contracts. At the time of submitting a bid, proposal, or

offer to the authority on a major procurement contract, the

authority shall require that each vendor submit to the

division of criminal investigation appropriate investigation

authorization to facilitate this investigation, together with

an advance of funds to meet the anticipated investigation

costs. If the division of criminal investigation determines

that additional funds are required to complete an

investigation, the vendor will be so advised. The background

investigation by the division of criminal investigation may

include a national criminal history record check through the

federal bureau of investigation. The screening of vendors or

their employees through the federal bureau of investigation

shall be conducted by submission of fingerprints through the

state criminal history record repository to the federal bureau

of investigation.

Sec. 62.

Section 99G.37, subsection 2, if enacted by 2003

Iowa Acts, Senate File 453, section 90, is amended to read as

follows:

2. In any bidding process, the authority may administer

its own bidding and procurement or may utilize the services of

the department of generaladministrative services, or its

successor, or other state agency.

Sec. 63.

Section 99G.38, subsection 3, if enacted by 2003

Iowa Acts, Senate File 453, section 91, is amended to read as

follows:

3. The state of Iowa offset program, as provided in

section 421.178A.504, shall be available to the authority to

facilitate receipt of funds owed to the authority.

Sec. 64.

Section 135.150, subsection 3, as enacted by 2003

Iowa Acts, House File 396, section 1, is amended to read as

follows:

3. "Director" means the director or the director's

designee of public health or the director's designee.

Sec. 65.

Section 135.154, subsection 7, as enacted by 2003

Iowa Acts, House File 396, section 5, is amended to read as

follows:

7. Treat or order that individuals exposed to or infected

with disease receive treatment or prophylaxis. Treatment or

prophylaxis shall be administered by any qualified person

authorized to do so by the department. Treatment or

prophylaxis shall not be provided or ordered if the treatment

or prophylaxis is reasonably likely to lead to serious harm to

the affected individual. To prevent the spread of

communicable or potentially communicable disease, the

department may isolate or quarantine, pursuant to chapter 139A

and the rules implementing chapter 139A and this division of

this chapter, any individual who is unable or unwilling to

undergo treatment or prophylaxis pursuant to this section.

Sec. 66.

Section 170.6, subsection 1, paragraph b, if

enacted by 2003 Iowa Acts, House File 624, is amended to read

as follows:

b. Failed to provide notice or access to the department of

natural resources and the department of agriculture and land

stewardship as required by section 170.5.

Sec. 67.

Section 231.56A, if enacted by 2003 Iowa Acts,

Senate File 416, section 1, is amended to read as follows:

231.56A ELDER ABUSE INITIATIVE, EMERGENCY SHELTER, AND

SUPPORT SERVICES PROJECTS.

1. Through the state's service contract process adopted

pursuant to section 8.47, the department shall identify area

agencies on aging that have demonstrated the ability to

provide a collaborative response to the immediate needs of

elders in the area agency on aging service area for the

purpose of implementing elder abuse initiative, emergency

shelter, and support services projects. The projects shall be

implemented only in the counties within an area agency on

aging service area that have a multidisciplinary team

established pursuant to section 235B.1.

2. The target population of the projects shall be any

elder residing in the service area of an area agency on aging

who meets both of the following conditions:

a. Is the subject of a report of suspected dependent adult

abuse pursuant to chapter 235B.

b. Is not receiving assistance under a county management

plan approved pursuant to section 331.439.

3. The area agencies on aging implementing the projects

shall identify allowable emergency shelter and support

services, state funding, outcomes, reporting requirements, and

approved community resources from which services may be

obtained under the projects. The area agency on aging shall

identify at least one provider of case management services for

the project area.

4. The area agencies on aging shall implement the projects

and shall coordinate the provider network through the use of

referrals or other engagement of community resources to

provide services to elders.

5. The department shall award funds to the area agencies

on aging in accordance with the state's service contract

process. Receipt and expenditures of moneys under the

projects are subject to examination, including audit, by the

department.

6. This section shall not be construed and is not intended

as, and shall not imply, a grant of entitlement for services

to individuals who are not otherwise eligible for the services

or for utilization of services that do not currently exist or

are not otherwise available.

Sec. 68.

Section 232.71B, subsection 7A, if enacted by

2003 Iowa Acts, House File 558, section 1, is amended to read

as follows:

7A. PROTECTIVE DISCLOSURE. If the department determines

that disclosure is necessary for the protection of a child,

the department may disclose to a subject of a child abuse

report referred to in section 235A.15, subsection 2, paragraph

"a", that an individual is listed in the child or dependent

adult abuse registry or is required to register with the sex

offender registry in accordance with chapter 692A.

Sec. 69.

Section 235B.3, subsection 6A, if enacted by 2003

Iowa Acts, House File 558, section 2, is amended to read as

follows:

6A. If the department determines that disclosure is

necessary for the protection of a dependent adult, the

department may disclose to a subject of a dependent adult

abuse report referred to in section 235B.6, subsection 2,

paragraph "a", that an individual is listed in the child or

dependent adult abuse registry or is required to register with

the sex offender registry in accordance with chapter 692A.

Sec. 70.

Section 304B.3, subsections 4, 8, and 9, if

enacted by 2003 Iowa Acts, House File 648, section 6, are

amended to read as follows:

4. The director of revenue and finance.

8. The director of the department of general

administrative services.

9. The director of the information technology department.

Sec. 71.

Section 321.69, subsection 9, as amended by 2003

Iowa Acts, House File 502, section 3, is amended to read as

follows:

9. ThisExcept for subsection 9A, this section does not

apply to motor trucks and truck tractors with a gross vehicle

weight rating of sixteen thousand pounds or more, vehicles

more than nine model years old, motorcycles, motorized

bicycles, and special mobile equipment. This section does

apply to motor homes. The requirement in subsection 1 that

the new certificate of title and registration receipt shall

state on the face of the title the total cumulative dollar

amount of damage does not apply to a vehicle with a

certificate of title bearing a designation that the vehicle

was previously titled on a salvage certificate of title

pursuant to section 321.52, subsection 4, paragraph "b", or to

a vehicle with a certificate of title bearing a "REBUILT" or

"SALVAGE" designation pursuant to section 321.24, subsection 4

or 5. ThisExcept for subsection 9A, this section does not

apply to new motor vehicles with a true mileage, as defined in

section 321.71, of one thousand miles or less, unless such

vehicle has incurred damage as defined in subsection 2.

Sec. 72.

Section 356.7, subsection 1, as amended by 2003

Iowa Acts, House File 650, section 1, if enacted, is amended

to read as follows:

1. The county sheriff, or a municipality operating a

temporary municipal holding facility or jail, may charge a

prisoner who is eighteen years of age or older and who has

been convicted of a criminal offense or sentenced for contempt

of court for violation of a domestic abuse order for the

actual administrative costs relating to the arrest and booking

of that prisoner, and for room and board provided to the

prisoner while in the custody of the county sheriff or

municipality. Moneys collected by the sheriff or municipality

under this section shall be credited respectfullyrespectively

to the county general fund or the city general fund and

distributed as provided in this section. If a prisoner who

has been convicted of a criminal offense or sentenced for

contempt of court for violation of a domestic abuse order

fails to pay for the administrative costs and the room and

board, the sheriff or municipality may file a room and board

reimbursement claim with the district court as provided in

subsection 2. The county attorney may file the reimbursement

claim on behalf of the sheriff and the county or the

municipality. The attorney for the municipality may also file

a reimbursement claim on behalf of the municipality. This

section does not apply to prisoners who are paying for their

room and board by court order pursuant to sections 356.26

through 356.35.

Sec. 73.

Section 459.401, subsection 2, paragraph a,

subparagraph (3A), if enacted by 2003 Iowa Acts, House File

644, section 18, is amended to read as follows:

(3A) A commercial manure service license fee as provided

in section 359.316459.316.

Sec. 74.

Section 505A.1, article V, section 2, paragraph

a, subparagraph (3), if enacted by 2003 Iowa Acts, House File

647, section 54, is amended to read as follows:

(3) Four members from those compacting states with less

than two percent of the market, based on the premium volume

described in subparagraph (1), with one selected from each of

the four zone regions of the national association of insurance

commissioners as provided in the bylaws.

Sec. 75. Section 508.31A, subsection 2, paragraph b, Code 2003, as amended by 2003 Iowa Acts, House File 647, section 7, if enacted, is amended to read as follows:

b. A funding agreement issued pursuant to paragraph "a",

subparagraph (1), (2), or (3), shall be for a total amount of

not less than one million dollars.

Sec. 76.

Section 692A.13, subsection 9, if enacted by 2003

Iowa Acts, House File 558, section 3, is amended to read as

follows:

9. If the department of human services determines that

disclosure is necessary for the protection of a child or a

dependent adult, the department may disclose to a subject of a

child abuse report referred to in section 235A.15, subsection

2, paragraph "a", or to a subject of a dependent adult abuse

report referred to in section 235B.6, subsection 2, paragraph

"a", that an individual is listed in the child or dependent

adult abuse registry or is required to register under this

chapter.

Sec. 77.

Section 901.5, subsection 7A, paragraph d, as

enacted by 2003 Iowa Acts, House File 404, section 1, is

amended to read as follows:

d. Violation of a no-contact order issued under this

section is punishable by summary contempt proceedings. A

hearing in a contempt proceeding brought pursuant to this

subsection shall be held not less than five days and not more

than fifteen days after the issuance of a rule to show cause,

as set by the court, unless the defendant is already in

custody at the time of the alleged violation in which case the

hearing shall be held not less than five days and not more

than forty-five days after the issuance of the rule to show

cause.

Sec. 78.

2003 Iowa Acts, Senate File 155, section 26, is

repealed.

Sec. 79.

2003 Iowa Acts, Senate File 155, section 56, is

repealed.

Sec. 80.

2003 Iowa Acts, Senate File 453, section 44,

subsection 8, if enacted, is amended to read as follows:

8. STATUTORY REQUIREMENTS. The requirements of sections

18.68A.311 and 72.3 and the administrative rules implementing

section 8.47 are not applicable to the services procurement

process used to implement the outcomes-based service system

redesign in accordance with this section. The department of

human services may enter into competitive negotiations and

proposal modifications with each successful contractor as

necessary to implement the provisions of this section.

Sec. 81.

2003 Iowa Acts, House File 601, section 2, is

amended by striking the section and inserting in lieu thereof

the following:

SEC.

2. Section 56.5, subsection 2, paragraph d, Code

2003, is amended by striking the paragraph.

Sec. 82.

2003 Iowa Acts, House File 624, section 22, if

enacted, is amended to read as follows:

SEC.

22. HUNTING PRESERVES AND GAME BREEDERS — AUTOMATIC

CERTIFICATION. AnyA fence enclosing farm deer kept on land

which is owned by a person licensed pursuant to section 484B.5

or 481A.61 and which is enclosed with a fence on the effective

date of this Act shall be deemed to comply with construction

requirements of section 170.4 and shall be automatically

certified by the department of agriculture and land

stewardship without submittingsubmission of an application.

The landowner is not required to notify the department of

natural resources concerning removal of whitetail as otherwise

required pursuant to section 170.5.

Sec. 83.

2003 Iowa Acts, House File 648, section 1, if

enacted, is repealed.

Sec. 84.

CONTINGENT EFFECTIVE DATES.

1. The section of this division of this Act amending

section 8A.202, subsection 2, if enacted by 2003 Iowa Acts,

House File 534, takes effect if House File 648, relating to

the management of state archives and records, is enacted by

the Eightieth General Assembly, 2003 Regular Session.

2. The sections of this division of this Act amending

sections 12C.1, 99G.10, 99G.37, and 99G.38 take effect only if

House File 534 is enacted by the Eightieth General Assembly,

2003 Regular Session.

3. The sections of this division of this Act amending

section 304B.3, if enacted by 2003 Iowa Acts, House File 648,

and repealing 2003 Iowa Acts, House File 648, section 1, if

enacted, take effect if House File 534, establishing a

department of administrative services, is enacted by the

Eightieth General Assembly, 2003 Regular Session.

4. The section of this division of this Act repealing 2003

Iowa Acts, Senate File 155, section 26, takes effect if 2003

Iowa Acts, House File 614, relating to elections, is enacted

by the Eightieth General Assembly, 2003 Regular Session.

Sec. 85.

Section 7J.1, subsection 1, if enacted by 2003

Iowa Acts, Senate File 453, is amended to read as follows:

7J.1 CHARTER AGENCIES.

1. DESIGNATION OF CHARTER AGENCIES — PURPOSE. The

governor may, by executive order, designate up to five state

departments or agencies, as described in section 7E.5, other

than the department of administrative services, if the

department is established in law, or the department of

management, as a charter agency by July 1, 2003. The

designation of a charter agency shall be for a period of five

years which shall terminate as of June 30, 2008. The purpose

of designating a charter agency is to grant the agency

additional authority as provided by this chapter while

reducing the total appropriations to the agency.

Sec. 86.

Section 7J.1, subsection 3, paragraph a, if

enacted by 2003 Iowa Acts, Senate File 453, is amended to read

as follows:

a. It is the intent of the general assembly that state

general fund operating appropriations to a charter agency for

anythe fiscal year beginning July 1, 2003, and ending June

30, 2004, shall be reduced, with a target reduction of ten

percent for each charter agency, from the appropriation that

would otherwise have been enacted for that charter agency

which, along with any additional generated revenue to the

general fund of the state attributed to the reinvention

process as determined by the department of management, over

that already committed to the general fund of the state by a

charter agency, will achieve an overall target of fifteen

million dollars.

Sec. 87.

Section 7J.2, if enacted by 2003 Iowa Acts,

Senate File 453, is amended to read as follows:

7J.2 CHARTER AGENCY LOANGRANT FUND.

1. A charter agency loangrant fund is created in the

state treasury under the control of the department of

management for the purpose of providing funding to support

innovation by those state agencies designated as charter

agencies in accordance with section 7J.1. Innovation purposes

shall include but are not limited to training, development of

outcome measurement systems, management system modifications,

and other modifications associated with transition of

operations to charter agency status. Moneys in the fund are

appropriated to the department of management for the purposes

described in this subsection.

2. A charter agency requesting a loangrant from the fund

shall complete an application process designated by the

director of the department of management. Minimum loan

requirements for charter agency requests shall be determined

by the director.

3. In order for the fund to be self-supporting, the

director of the department of management shall establish

repayment schedules for each loan awarded. An agency shall

repay the loan over a period not to exceed five years with

interest, at a rate to be determined by the director.

4.3. Notwithstanding section 12C.7, subsection 2,

interest or earnings on moneys deposited in the charter agency

loangrant fund shall be credited to the charter agency loan

grant fund. Notwithstanding section 8.33, moneys credited to

the charter agency loangrant fund shall not revert to the

fund from which appropriated at the close of a fiscal year.

Sec. 88. Section 8.23, subsection 1, paragraph a, Code 2003, is amended by striking the paragraph.

Sec. 89. Section 8.31, Code 2003, is amended to read as follows:

8.31 QUARTERLY REQUISITIONS — ALLOTMENTS OF

APPROPRIATIONS — EXCEPTIONS — MODIFICATIONS.

1. a. Before an appropriation for administration,

operation and maintenance of any department or establishment

shall becomebecomes available, there shall be submittedthe

department or establishment shall submit to the director of

the department of management, not less than twenty days before

the beginning of each quarter of each fiscal year, a

requisition for an allotment of the amount estimated to be

necessary to carry on its workappropriation according to

dates identified in the requisition during the ensuing quarter

fiscal year by which portions of the appropriation will be

needed. The department or establishment shall submit the

requisition by June 1, prior to the start of a fiscal year or

by another date identified by the director. The requisition

shall contain details of proposed expenditures as may be

required by the director of the department of management

subject to review by the governor.

b. The director of the department of management shall

approve the allotments subject to review by the governor,

unless it is found that the estimated budget resources during

the fiscal year are insufficient to pay all appropriations in

full, in which event such allotments may be modified to the

extent the governor may deem necessary in order that there

shall be no overdraft or deficit in the several funds of the

state at the end of the fiscal year, and the director shall

submit copies of the allotments thus approved or modified to

the head of the department or establishment concerned, who

shall set up such allotments on the books and be governed

accordingly in the control of expenditures.

Allotments of appropriations made for equipment, land,

permanent improvements, and other capital projects may,

however, be allotted in one amount by major classes or

projects for which they are expendable without regard to

quarterly periods. For fiscal years beginning on or after

July 1, 1989, allotments of appropriations for equipment,

land, permanent improvements, and other capital projects,

except where contracts have been entered into with regard to

the acquisition or project prior to July 1, 1989, shall not be

allotted in one amount but shall be allotted at quarterly

periods as provided in this section.

2. Allotments thus made in accordance with subsection 1

may be subsequently modified by the director of the department

of management at the direction of the governor either upon the

written request of the head of the department or establishment

concerned, or in the event the governor finds that the

estimated budget resources during the fiscal year are

insufficient to pay all appropriations in full, upon the

governor's own initiative to the extent the governor may deem

necessary in order that there shall be no overdraft or deficit

in the several funds of the state at the end of the fiscal

year; and the head of the department or establishment shall be

given notice of a modification in the same way as in the case

of original allotments.

3. Provided, however, that theThe allotment requests of

all departments and establishments collecting governmental

fees and other revenue which supplement a state appropriation

shall attach to the summary of requests a statement showing

how much of the proposed allotments are to be financed from

(1) state appropriations, (2) stores, and (3) repayment

receipts.

4. The procedure to be employed in controlling the

expenditures and receipts of the state fair board and the

institutions under the state board of regents, whose

collections are not deposited in the state treasury, is that

outlined in section 421.31, subsection 6.

5. If the governor determines that the estimated budget

resources during the fiscal year are insufficient to pay all

appropriations in full, the reductions shall be uniform and

prorated between all departments, agencies and establishments

upon the basis of their respective appropriations.

6. Allotments from appropriations for the foreign trade

offices of the department of economic development, if the

appropriations are described by line item in the department's

appropriation Act or another Act, may be made without regard

to quarterly periods as is necessary to take advantage of the

most favorable foreign currency exchange rates.

Sec. 90. Section 8.57, subsection 1, paragraph c, Code 2003, is amended to read as follows:

c. The amount appropriated in this section is not subject

to the provisions of section 8.31, relating to quarterly

requisitions and allotment, or to section 8.32, relating to

conditional availability of appropriations.

Sec. 91. Section 12B.10, subsection 6, paragraph d, subparagraph (4), Code 2003, is amended to read as follows:

(4) For investments of short-term operating funds, the

funds shall not be invested in investments having effective

maturities exceeding sixty-three months.

Sec. 92. Section 12B.10A, subsection 6, paragraph d, subparagraph (4), Code 2003, is amended to read as follows:

(4) For investments of short-term operating funds, the

funds shall not be invested in investments having effective

maturities exceeding sixty-three months.

Sec. 93. Section 12C.27, Code 2003, is amended by striking the section and inserting in lieu thereof the following:

12C.27 FAILURE TO MAINTAIN REQUIRED COLLATERAL.

If the treasurer of state determines that a bank fails to

comply with chapter 12C.22, subsections 2 and 3, the treasurer

of state may restrict that bank from accepting uninsured

public funds and shall notify the office of thrift

supervision, the office of the comptroller of the currency, or

the superintendent as applicable, who may take such action

against the bank, its board of directors and officers as

permitted by law.

Sec. 94. Section 12E.12, subsection 8, Code 2003, is amended to read as follows:

8. With respect to the payment of certain debt service,

the debt service to be paid shall be those installments of

debt service on bonds selected by the treasurer of state and

identified in the authority's tax certificate delivered at the

time of the issuance of the bonds issued pursuant to this

chapter, or as otherwise selected by the treasurer of state.

Once the bonds and the installments of debt service thereon

are so selected, that debt service and bonds shall not be

paid, or provided to be paid, from any other source including

the state or any of its departments or agencies. Provided,

however, that if funds are not appropriated to pay debt

service on such bonds when due, the issuing agency shall pay

suchthe debt service from any available source as provided in

the bond covenants for such bonds. To the extent that this

section does not allow proceeds of previously issued refunding

bonds to be applied for the purpose of the refunding, the

issuing agency may expend such proceeds to improve, remodel,

or repair buildings or other infrastructure upon authorization

of the issuing agency's authority.

Sec. 95. Section 15E.42, subsection 3, Code 2003, is amended to read as follows:

3. "Investor" means an individual making a cash investment

in a qualifying business or an individual taxed on income from

a revocable trust's cash investment in a qualifying business

or a person making a cash investment in a community-based seed

capital fund. "Investor" does not include a person which is a

current or previous owner, member, or shareholder in a

qualifying business.

Sec. 96. Section 15E.43, subsection 1, paragraph a, Code 2003, is amended to read as follows:

a. For tax years beginning on or after January 1, 2002, a

tax credit shall be allowed against the taxes imposed in

chapter 422, division II, for a portion of an individual

taxpayer's equity investment, as provided in subsection 2, in

a qualifying business. An individual shall not claim a tax

credit under this paragraph of a partnership, limited

liability company, S corporation, estate, or trust electing to

have income taxed directly to the individual. However, an

individual receiving income from a revocable trust's

investment in a qualified business may claim a tax credit

under this paragraph against the taxes imposed in chapter 422,

division II, for a portion of the revocable trust's equity

investment, as provided in subsection 2, in a qualified

business.

Sec. 97. Section 15E.43, subsection 1, Code 2003, is amended by adding the following new paragraph:

NEW PARAGRAPH d. In the case of a tax credit allowed

against the taxes imposed in chapter 422, division II, where

the taxpayer died prior to redeeming the entire tax credit,

the remaining credit can be redeemed on the decedent's final

income tax return.

Sec. 98. Section 15E.45, subsection 2, paragraph c, Code 2003, is amended to read as follows:

c. The fund has no fewer than ten individual investors who

are not affiliates, with no single investor and affiliates of

that investor together owning a total of more than twenty-five

percent of the ownership interests outstanding in the fund.

Sec. 99. Section 15E.51, subsection 4, Code 2003, is amended to read as follows:

4. A taxpayer shall not claim a tax credit under this

section if the taxpayer is a venture capital investment fund

allocation manager for the Iowa fund of funds created in

section 15E.65 or an investor that receives a tax credit for

anthe same investment in a community-based seed capital fund

as defined in 2002 Iowa Acts, House File 2271.

Sec. 100. Section 15E.193B, subsection 4, Code 2003, is amended to read as follows:

4. The eligible housing business shall complete its

building or rehabilitation within two years from the time the

business begins construction on the single-family homes and

dwelling units. The failure to complete construction or

rehabilitation within two years shall result in the eligible

housing business becoming ineligible and subject to the

repayment requirements and penalties enumerated in subsection

7. The department may extend the prescribed two-year

completion period for any project which has not been completed

if the department determines that completion within the two-

year period is impossible or impractical as a result of a

substantial loss caused by flood, fire, earthquake, storm, or

other catastrophe. For purposes of this subsection,

"substantial loss" means damage or destruction in an amount in

excess of thirty percent of the project's expected eligible

basis as set forth in the eligible housing business's

application.

Sec. 101. NEW SECTION 16.181 HOUSING TRUST FUND.

1.

a. A housing trust fund is created within the

authority. The moneys in the housing trust fund are annually

appropriated to the authority to be used for the development

and preservation of affordable housing for low-income people

in the state. Payment of interest, recaptures of awards, or

other repayments to the housing trust fund shall be deposited

in the fund. Notwithstanding section 12C.7, interest or

earnings on moneys in the housing trust fund or appropriated

to the fund shall be credited to the fund. Notwithstanding

section 8.33, unencumbered and unobligated moneys remaining in

the fund at the close of each fiscal year shall not revert but

shall remain available for expenditure for the same purposes

in the succeeding fiscal year.

b. Assets in the housing trust fund shall consist of all

of the following:

(1) Any assets received by the authority from the Iowa

housing corporation.

(2) Any assets transferred by the authority for deposit in

the housing trust fund.

(3) Any other moneys appropriated by the general assembly

and any other moneys available to and obtained or accepted by

the authority for placement in the housing trust fund.

c. The authority shall create the following programs

within the housing trust fund:

(1) Local housing trust fund program. Sixty percent of

available moneys in the housing trust fund shall be allocated

for the local housing trust fund program. Any moneys

remaining in the local housing trust fund program on April 1

of each fiscal year which have not been awarded to a local

housing trust fund may be transferred to the project-based

housing program at any time prior to the end of the fiscal

year.

(2) Project-based housing program. Forty percent of the

available moneys in the housing trust fund shall be allocated

to the project-based housing program.

2.

a. In order to be eligible to apply for funding from

the local housing trust fund program, a local housing trust

fund must be approved by the authority and have all of the

following:

(1) A local governing board recognized by the city,

county, council of governments, or regional officials as the

board responsible for coordinating local housing programs.

(2) A housing assistance plan approved by the authority.

(3) Sufficient administrative capacity in regard to

housing programs.

(4) A local match requirement approved by the authority.

b. An award from the local housing trust fund program

shall not exceed ten percent of the balance in the program at

the beginning of the fiscal year plus ten percent of any

deposits made during the fiscal year.

c. By December 31 of each year, a local housing trust fund

receiving moneys from the local housing trust fund program

shall submit a report to the authority itemizing expenditures

of the awarded moneys.

3. In an area where no local housing trust fund exists, a

person may apply for moneys from the project-based housing

program.

4. The authority shall adopt rules pursuant to chapter 17A

necessary to administer this section.

Sec. 102. Section 25.1, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 4. Notwithstanding subsections 1 and 2,

and section 25.2, the state appeal board shall not consider

claims for refund of the unused portion of vehicle

registration fees collected under section 321.105.

Sec. 103. Section 28.9, subsection 2, Code 2003, is amended to read as follows:

2. a. A school ready children grants account is created

in the Iowa empowerment fund under the authority of the

director of the department of education. Moneys credited to

the account shall be distributed by the department of

education in the form of grants to community empowerment areas

pursuant to criteria established by the Iowa board in

accordance with law.

b. The distribution formula utilized by the Iowa board for

school ready children grants in the fiscal year beginning July

1, 2004, and for each succeeding fiscal year, shall

specifically incorporate the following components:

(1) A minimum statewide performance baseline shall be

established for the core indicators of performance identified

pursuant to section 28.8, subsection 1, paragraph "a".

(2) A community empowerment area must maintain its

designated status in good standing and must have received

continued approval of its school ready children grant plan.

(3) The community empowerment area must identify how the

core indicators of performance will be addressed by the area

and select two or more of the core indicators that will

achieve a minimum percentage of improvement identified by the

area, subject to approval by the Iowa board. The community

empowerment area's data for the calendar year preceding the

year in which the area initially received a school ready

children grant shall be used as the area's baseline year.

(4) If an area achieves the identified percentage level of

improvement in the preceding calendar year, the area's minimum

grant amount shall be the annualized grant amount received in

the area's initial year of funding. The Iowa board may

implement provisions for averaging the performance levels over

two or more years and other approaches to apply the

requirements of this paragraph "b" in an equitable manner.

(5) If an area does not achieve the identified percentage

level of improvement in the preceding calendar year, the area

shall receive a reduction from the area's minimum grant

amount. If the identified percentage level of improvement is

achieved in the next succeeding calendar year, the area's

minimum grant amount shall be restored.

Sec. 104. Section 29C.8, subsection 3, Code 2003, is amended by adding the following new paragraphs:

NEW PARAGRAPH f. (1) Approve and support the

development and ongoing operations of an urban search and

rescue team to be deployed as a resource to supplement and

enhance emergency and disaster operations.

(2) A member of an urban search and rescue team acting

under the authority of the administrator or pursuant to a

governor's disaster proclamation as provided in section 29C.6

shall be considered an employee of the state under chapter 669

and shall be afforded protection as an employee of the state

under section 669.21. Disability, workers' compensation, and

death benefits for team members working under the authority of

the administrator or pursuant to the provisions of section

29C.6 shall be paid by the state in a manner consistent with

the provisions of chapter 85, 410, or 411 as appropriate,

depending on the status of the member.

NEW PARAGRAPH g. Develop, implement, and support a

uniform incident command system to be used by state agencies

to facilitate efficient and effective assistance to those

affected by emergencies and disasters. This system shall be

consistent with the requirements of the United States

occupational safety and health administration and a national

incident management system.

Sec. 105. Section 29C.20, subsection 1, Code 2003, is amended to read as follows:

1. a. A contingent fund is created in the state treasury

for the use of the executive council which may be expended for

the purpose of payingfollowing purposes:

(1) Paying the expenses of suppressing an insurrection or

riot, actual or threatened, when state aid has been rendered

by order of the governor, and for repairing,.

(2) Repairing, rebuilding, or restoring state property

injured, destroyed, or lost by fire, storm, theft, or

unavoidable cause, and for repairing,.

(3) Repairing, rebuilding, or restoring state property

whichthat is fiberoptic cable and whichthat is injured or

destroyed by a wild animal, and for aid to.

(4) Paying the expenses incurred by and claims of an urban

search and rescue team when acting under the authority of the

administrator and the provisions of section 29C.6 and disaster

medical assistance teams when acting under the provisions of

section 135.153.

(5) (a) Aiding any governmental subdivision in an area

declared by the governor to be a disaster area due to natural

disasters or to expenditures necessitated by the governmental

subdivision toward averting or lessening the impact of the

potential disaster, where the effect of the disaster or action

on the governmental subdivision is the immediate financial

inability to meet the continuing requirements of local

government.

(b) Upon application by a governmental subdivision in such

an area, accompanied by a showing of obligations and

expenditures necessitated by an actual or potential disaster

in a form and with further information the executive council

requires, the aid may be made in the discretion of the

executive council and, if made, shall be in the nature of a

loan up to a limit of seventy-five percent of the showing of

obligations and expenditures. The loan, without interest,

shall be repaid by the maximum annual emergency levy

authorized by section 24.6, or by the appropriate levy

authorized for a governmental subdivision not covered by

section 24.6. The aggregate total of loans shall not exceed

one million dollars during a fiscal year. A loan shall not be

for an obligation or expenditure occurring more than two years

previous to the application.

b. When a state department or agency requests that moneys

from the contingent fund be expended to repair, rebuild, or

restore state property injured, destroyed, or lost by fire,

storm, theft, or unavoidable cause, or to repair, rebuild, or

restore state property whichthat is fiberoptic cable and

whichthat is injured or destroyed by a wild animal, or for

payment of the expenses incurred by and claims of an urban

search and rescue team when acting under the authority of the

administrator and the provisions of section 29C.6, the

executive council shall consider the original source of the

funds for acquisition of the property before authorizing the

expenditure. If the original source was other than the

general fund of the state, the department or agency shall be

directed to utilize moneys from the original source if

possible. The executive council shall not authorize the

repairing, rebuilding, or restoring of the property from the

disaster aid contingent fund if it determines that moneys from

the original source are available to finance the project.

Sec. 106. Section 80B.5, Code 2003, is amended to read as follows:

80B.5 ADMINISTRATION.

The administration of the Iowa law enforcement academy and

council Act shall be vested in the office of the governor. A

director of the academy and such staffStaff as may be

necessary for itthe law enforcement academy to function shall

be employed pursuant to the Iowa merit system.

Sec. 107. NEW SECTION 80B.5A DIRECTOR.

The governor shall appoint the director of the Iowa law

enforcement academy, subject to senate confirmation, to a

four-year term beginning and ending as provided in section

69.19.

Sec. 108.

Section 99G.9, subsection 3, paragraph j, if

enacted by 2003 Iowa Acts, Senate File 453, is amended by

striking the paragraph.

Sec. 109.

Section 99G.40, subsection 5, if enacted by 2003

Iowa Acts, Senate File 453, is amended to read as follows:

5. The authority shall adopt the same fiscal year as that

used by state government and shall be audited annually by the

auditor of state or a certified public accounting firm

appointed by the auditor. The auditor of state or a designee

conducting an audit under this chapter shall have access and

authority to examine any and all records of licensees

necessary to determine compliance with this chapter and the

rules adopted pursuant to this chapter. The cost of audits

and examinations conducted by the auditor of state or a

designee shall be paid for by the authority.

Sec. 110. NEW SECTION 174.24 LIABILITY OF COUNTY FAIR SOCIETY.

A society, as defined in section 174.1, shall be immune

from liability for any damages incurred at a county fair held

by the society if the damages were incurred on or at an

exhibit, leased facility, amusement ride, or an activity not

under the control of the society, if the county fair requires

the vendor in control of the exhibit, leased facility,

amusement ride, or other activity to obtain liability

insurance of at least three hundred thousand dollars. An

officer or employee of a society, as defined in section 174.1,

shall not be held liable for punitive damages as a result of

acts in the performance of the officer's or employee's duties,

unless reckless misconduct is proven.

Sec. 111. Section 257.11, subsection 5, paragraph b, Code 2003, is amended to read as follows:

b. A school district which establishes a regional academy

shall be eligible to assign its resident pupils attending

classes at the academy a weighting of one-tenth of the

percentage of the pupil's school day during which the pupil

attends classes at the regional academy. For the purposes of

this subsection, "regional academy" means an educational

institution established by a school district to which multiple

schools send pupils in grades sevennine through twelve, and

may include a virtual academy. A regional academy shall

include in its curriculum advanced-level courses and may

include in its curriculum vocational-technical programs

courses. The maximum amount of additional weighting for which

a school district establishing a regional academy shall be

eligible is an amount corresponding to fifteen additional

pupils. The minimum amount of additional weighting for which

a school district establishing a regional academy shall be

eligible is an amount corresponding to ten additional pupils

if the academy provides both advanced-level courses and

vocational-technical courses. However, if the sum of the

funding amount calculated for all districts operating regional

academies under this subsection exceeds one million dollars

for the school year beginning July 1, 2004, and each

succeeding fiscal year, the director of the department of

management shall prorate the amount calculated for each

district. The proration shall be based upon the amount

calculated for each district when compared to the sum of the

amount for all districts.

Sec. 112. Section 260C.14, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 20. Adopt a policy to offer not less than

the following options to a student who is a member of the Iowa

national guard or reserve forces of the United States and who

is ordered to active state service or federal service or duty:

a. Withdraw from the student's entire registration and

receive a full refund of tuition and mandatory fees.

b. Make arrangements with the student's instructors for

course grades, or for incompletes that shall be completed by

the student at a later date. If such arrangements are made,

the student's registration shall remain intact and tuition and

mandatory fees shall be assessed for the courses in full.

c. Make arrangements with only some of the student's

instructors for course grades, or for incompletes that shall

be completed by the student at a later date. If such

arrangements are made, the registration for those courses

shall remain intact and tuition and mandatory fees shall be

assessed for those courses. Any course for which arrangements

cannot be made for grades or incompletes shall be considered

dropped and the tuition and mandatory fees for the course

refunded.

Sec. 113. Section 261.9, subsection 1, unnumbered paragraph 1, Code 2003, is amended to read as follows:

"Accredited private institution" means an institution of

higher learning located in Iowa which is operated privately

and not controlled or administered by any state agency or any

subdivision of the state, except for county hospitals as

provided in paragraph "c" of this subsection, and which meets

at least one of the criteria in paragraphs "a" through "c" and

all of the criteria in paragraphs "d" through "f""g":

Sec. 114. Section 261.9, subsection 1, Code 2003, is amended by adding the following new paragraph:

NEW PARAGRAPH g. Adopts a policy to offer not less than

the following options to a student who is a member of the Iowa

national guard or reserve forces of the United States and who

is ordered to active state service or federal service or duty:

(1) Withdraw from the student's entire registration and

receive a full refund of tuition and mandatory fees.

(2) Make arrangements with the student's instructors for

course grades, or for incompletes that shall be completed by

the student at a later date. If such arrangements are made,

the student's registration shall remain intact and tuition and

mandatory fees shall be assessed for the courses in full.

(3) Make arrangements with only some of the student's

instructors for grades, or for incompletes that shall be

completed by the student at a later date. If such

arrangements are made, the registration for those courses

shall remain intact and tuition and mandatory fees shall be

assessed for those courses. Any course for which arrangements

cannot be made for grades or incompletes shall be considered

dropped and the tuition and mandatory fees for the course

refunded.

Sec. 115. Section 262.9, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 29. Direct the institutions of higher

education under its control to adopt a policy to offer not

less than the following options to a student who is a member

of the Iowa national guard or reserve forces of the United

States and who is ordered to active state service or federal

service or duty:

a. Withdraw from the student's entire registration and

receive a full refund of tuition and mandatory fees.

b. Make arrangements with the student's instructors for

course grades, or for incompletes that shall be completed by

the student at a later date. If such arrangements are made,

the student's registration shall remain intact and tuition and

mandatory fees shall be assessed for the courses in full.

c. Make arrangements with only some of the student's

instructors for grades, or for incompletes that shall be

completed by the student at a later date. If such

arrangements are made, the registration for those courses

shall remain intact and tuition and mandatory fees shall be

assessed for those courses. Any course for which arrangements

cannot be made for grades or incompletes shall be considered

dropped and the tuition and mandatory fees for the course

refunded.

Sec. 116. Section 284.13, subsection 1, paragraph a, Code 2003, is amended to read as follows:

a. For each fiscal year in the fiscal yearperiod

beginning July 1, 20012003, and ending June 30, 20022005,

the department shall reserve up to one millionfive hundred

thousand dollars of any moneys appropriated for purposes of

this chapter. For each fiscal year in which moneys are

appropriated by the general assembly for purposes of team-

based variable pay pursuant to section 284.11, the amount of

moneys allocated to school districts shall be in the

proportion that the basic enrollment of a school district

bears to the sum of the basic enrollments of all participating

school districts for the budget year. However, the per pupil

amount distributed to a school district under the pilot

program shall not exceed one hundred dollars.

Sec. 117. Section 284.13, subsection 1, paragraph g, unnumbered paragraph 1, Code 2003, is amended to read as follows:

For each fiscal year in which funds are appropriated for

purposes of this chapter, the moneys remaining after

distribution as provided in paragraphs "a" through "f" and "h"

shall be allocated to school districts for salaries and career

development in accordance with the following formula:

Sec. 118. Section 294A.25, subsection 6, Code 2003, is amended by striking the subsection.

Sec. 119. Section 294A.25, subsections 7, 8, and 9, Code 2003, are amended to read as follows:

7. ForExcept as otherwise provided in this section, for

the fiscal year beginning July 1, 19902003, and succeeding

fiscal years, the remainder of moneys appropriated in

subsection 1 to the department of education shall be deposited

in the educational excellence fund to be allocated in an

amount to meet the minimum salary requirements of this chapter

for phase I, in an amount to meet the requirements forand

phase II, and the remainder of the appropriation for phase

III.

8. Commencing with the fiscal year beginning July 1, 1997

2003, the amount of two hundred thirty thousand dollars for a

kindergarten to grade twelve management information system

from additional funds transferred from phase I to phase III.

9. For the fiscal year beginning July 1, 20002003, and

for each succeeding fiscal year, the amount of one hundred

seventy thousand dollars to the state board of regents for

distribution in the amount of sixty-eight thousand dollars to

the Iowa braille and sight saving school and in the amount of

one hundred two thousand dollars to the Iowa state school for

the deaf from phase III moneys.

Sec. 120.

Section 321J.2, subsection 2, paragraph a,

subparagraph (3), subparagraph subdivisions (a) and (b), as

enacted by 2003 Iowa Acts, House File 65, section 2, are

amended to read as follows:

(a) A defendant whose alcohol concentration is .08 or more

but not more than .10 shall not be eligible for any temporary

restricted license for at least thirty days if a test was

obtained and an accident resulting in personal injury or

property damage occurred. The defendant shall be ordered to

install an ignition interlock device of a type approved by the

commissioner of public safety on all vehicles owned or

operated by the defendant if the defendant seeks a temporary

restricted license. There shall be no such period of

ineligibility if no such accident occurred, and the defendant

shall not be ordered to install an ignition interlock device.

(b) A defendant whose alcohol concentration is more than

.10 shall not be eligible for any temporary restricted license

for at least thirty days if a test was obtained, and an

accident resulting in personal injury or property damage

occurred or the defendant's alcohol concentration exceeded

.15. There shall be no such period of ineligibility if no

such accident occurred and the defendant's alcohol

concentration did not exceed .15. In either case, where a

defendant's alcohol concentration is more than .10, the

defendant shall be ordered to install an ignition interlock

device of a type approved by the commissioner of public safety

on all vehicles owned or operated by the defendant if the

defendant seeks a temporary restricted license.

Sec. 121.

Section 321J.4, subsection 1, paragraphs a and

b, as enacted by 2003 Iowa Acts, House File 65, section 3, are

amended to read as follows:

a. A defendant whose alcohol concentration is .08 or more

but not more than .10 shall not be eligible for any temporary

restricted license for at least thirty days if a test was

obtained and an accident resulting in personal injury or

property damage occurred. The defendant shall be ordered to

install an ignition interlock device of a type approved by the

commissioner of public safety on all vehicles owned or

operated by the defendant if the defendant seeks a temporary

restricted license. There shall be no such period of

ineligibility if no such accident occurred, and the defendant

shall not be ordered to install an ignition interlock device.

b. A defendant whose alcohol concentration is more than

.10 shall not be eligible for any temporary restricted license

for at least thirty days if a test was obtained, and an

accident resulting in personal injury or property damage

occurred or the defendant's alcohol concentration exceeded

.15. There shall be no such period of ineligibility if no

such accident occurred and the defendant's alcohol

concentration did not exceed .15. In either case, where a

defendant's alcohol concentration is more than .10, the

defendant shall be ordered to install an ignition interlock

device of a type approved by the commissioner of public safety

on all vehicles owned or operated by the defendant if the

defendant seeks a temporary restricted license.

Sec. 122.

Section 321J.4, subsection 3, paragraphs a and

b, as enacted by 2003 Iowa Acts, House File 65, section 3, are

amended to read as follows:

a. A defendant whose alcohol concentration is .08 or more

but not more than .10 shall not be eligible for any temporary

restricted license for at least thirty days if a test was

obtained and an accident resulting in personal injury or

property damage occurred. The defendant shall be ordered to

install an ignition interlock device of a type approved by the

commissioner of public safety on all vehicles owned or

operated by the defendant if the defendant seeks a temporary

restricted license. There shall be no such period of

ineligibility if no such accident occurred, and the defendant

shall not be ordered to install an ignition interlock device.

b. A defendant whose alcohol concentration is more than

.10 shall not be eligible for any temporary restricted license

for at least thirty days if a test was obtained, and an

accident resulting in personal injury or property damage

occurred or the defendant's alcohol concentration exceeded

.15. There shall be no such period of ineligibility if no

such accident occurred and the defendant's alcohol

concentration did not exceed .15. In either case, where a

defendant's alcohol concentration is more than .10, the

defendant shall be ordered to install an ignition interlock

device of a type approved by the commissioner of public safety

on all vehicles owned or operated by the defendant if the

defendant seeks a temporary restricted license.

Sec. 123.

Section 321J.12, subsection 2, paragraphs a and

b, as enacted by 2003 Iowa Acts, House File 65, section 5, are

amended to read as follows:

a. A person whose driver's license or nonresident

operating privileges have been revoked under subsection 1,

paragraph "a", whose alcohol concentration is .08 or more but

not more than .10 shall not be eligible for any temporary

restricted license for at least thirty days after the

effective date of the revocation if a test was obtained and an

accident resulting in personal injury or property damage

occurred. The defendant shall be ordered to install an

ignition interlock device of a type approved by the

commissioner of public safety on all vehicles owned or

operated by the defendant if the defendant seeks a temporary

license. There shall be no such period of ineligibility if no

such accident occurred, and the defendant shall not be ordered

to install an ignition interlock device.

b. A defendant whose alcohol concentration is more than

.10 shall not be eligible for any temporary restricted license

for at least thirty days if a test was obtained, and an

accident resulting in personal injury or property damage

occurred or the defendant's alcohol concentration exceeded

.15. There shall be no such period of ineligibility if no

such accident occurred and the defendant's alcohol

concentration did not exceed .15. In either case, where a

defendant's alcohol concentration is more than .10, the

defendant shall be ordered to install an ignition interlock

device of a type approved by the commissioner of public safety

on all vehicles owned or operated by the defendant if the

defendant seeks a temporary restricted license.

Sec. 124.

Section 331.605C, subsections 1 and 2, if

enacted by 2003 Iowa Acts, Senate File 453, are amended to

read as follows:

1. For the fiscal year beginning July 1, 2003, and ending

June 30, 2004, the recorder shall collect a fee of five

dollars for each recorded transaction, regardless of the

number of pages, for which a fee is paid pursuant to section

331.604 to be used for the purposes of planning and

implementing electronic recording and electronic transactions

in each county and developing county and statewide internet

websites to provide electronic access to records and

information.

2. Beginning July 1, 2004, the recorder shall collect a

fee of one dollar for each recorded transaction, regardless of

the number of pages, for which a fee is paid pursuant to

section 331.604 to be used for the purpose of paying the

county's ongoing costs of maintaining the systems developed

and implemented under subsection 1.

Sec. 125.

Section 331.605C, subsection 4, if enacted by

2003 Iowa Acts, Senate File 453, is amended to read as

follows:

4. The statelocal electronic government electronic

transaction fund is established in the office of the treasurer

of state under the control of the treasurer of state. Moneys

deposited into the fund are not subject to section 8.33.

Notwithstanding section 12C.7, interest or earnings on moneys

in the statelocal electronic government electronic

transaction fund shall be credited to the fund. Moneys in the

statelocal electronic government electronic transaction fund

are not subject to transfer, appropriation, or reversion to

any other fund, or any other use except as provided in this

subsection. The treasurer of state shall enter into a

contract with the Iowa state association of counties affiliate

representing county recorders to develop, implement, and

maintainhold the fund for the development, implementation,

and maintenance of a statewide internet website for purposes

of providing electronic access to records and information

recorded or filed by county recorders. On a monthly basis,

the county treasurer shall pay one dollar of each fee

collected pursuant to subsection 1 to the treasurer of state

for deposit into the statelocal electronic government

electronic transaction fund. Moneys credited to the state

local electronic government electronic transaction fund are

appropriated to the treasurer of state to be used for contract

costs. This subsection is repealed June 30, 2004.

Sec. 126. Section 422.45, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 64. The gross receipts from noncustomer

point of sale or noncustomer automated teller machine access

or service charges assessed by a financial institution. For

purposes of this subsection, "financial institution" means the

same as defined in section 527.2.

Sec. 127. Section 423.4, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 9A. Vehicles subject to registration

which are transferred from a corporation that is primarily

engaged in the business of leasing vehicles subject to

registration to a corporation that is primarily engaged in the

business of leasing vehicles subject to registration when the

transferor and transferee corporations are part of the same

controlled group for federal income tax purposes.

Sec. 128.

Section 435.26A, subsections 2 and 5, as enacted

by 2003 Iowa Acts, Senate File 134, section 7, are amended to

read as follows:

2. Upon receipt of a certificate of title from a

manufactured home owner, a county treasurer shall notify the

department of transportation that the certificate of title has

been surrendered, remove the registration of title from the

county treasurer's records, and destroy the certificate of

title.

The manufactured home owner or the owner's representative

shall provide to the county recorder the identifying data of

the manufactured home, including the owner's name, the name of

the manufacturer, the model name, the year of manufacture, and

the serial number of the home, along with the legal

description of the real estate on which the manufactured home

is located. In addition, evidence shall be provided of the

surrender of the certificate of title. After the surrender of

the certificate of title of a manufactured home under this

section, conveyance of an interest in the manufactured home

shall not require transfer of title so long as the

manufactured home remains on the same real estate site.

5. An owner of a manufactured home who has surrendered a

certificate of title under this section and requires another

certificate of title for the manufactured home is required to

apply for a bonded certificate of title under chapter 321

section 321.42. If supporting documents for the reissuance of

a title are not available or sufficient, the procedure for the

reissuance of a title specified in the rules of the department

of transportation shall be used.

Sec. 129. Section 452A.2, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 20A. "Nonterminal storage facility" means

a facility where motor fuel or special fuel, other than

liquefied petroleum gas, is stored that is not supplied by a

pipeline or a marine vessel. "Nonterminal storage facility"

includes a facility that manufactures products such as

alcohol, biofuel, blend stocks, or additives which may be used

as motor fuel or special fuel, other than liquefied petroleum

gas, for operating motor vehicles or aircraft.

Sec. 130. Section 453A.2, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 5B. A tobacco compliance employee

training fund is created in the office of the treasurer of

state. The fund shall consist of civil penalties assessed by

the Iowa department of public health under section 453A.22,

for violations of this section. Moneys in the fund are

appropriated to the alcoholic beverages division of the

department of commerce and shall be used to develop and

administer the tobacco compliance employee training program

under section 453A.2A. Moneys deposited in the fund shall not

be transferred, used, obligated, appropriated, or otherwise

encumbered except as provided in this subsection.

Notwithstanding section 8.33, any unexpended balance in the

fund at the end of the fiscal year shall be retained in the

fund.

Sec. 131. Section 453C.1, subsection 10, Code 2003, is amended to read as follows:

10. "Units sold" means the number of individual cigarettes

sold in the state by the applicable tobacco product

manufacturer, whether directly or through a distributor,

retailer, or similar intermediary or intermediaries, during

the year in question, as measured by excise taxes collected by

the state on packs or roll-your-own tobacco containers bearing

the excise tax stamp of the state. The department of revenue

and finance shall adopt rules as are necessary to ascertain

the amount of state excise tax paid on the cigarettes of such

tobacco product manufacturer for each year.

Sec. 132. Section 453C.2, subsection 2, paragraph b, subparagraph (2), Code 2003, is amended to read as follows:

(2) To the extent that a tobacco product manufacturer

establishes that the amount the manufacturer was required to

place into escrow on account of units sold in the state in a

particular year was greater than the state's allocable share

of the total payments that such manufacturer would have been

required to make in that year under the master settlement

agreementthe master settlement agreement payments, as

determined pursuant to section IX(i) of that agreement

including after final determination of all adjustments, that

such manufacturer would have been required to make on account

of such units sold had such manufacturer been a participating

manufacturer, as such payments are determined pursuant to

section IX(i)(2) of the master settlement agreement and before

any of the adjustments or offsets described in section

IX(i)(3) of that agreement other than the inflation

adjustment, the excess shall be released from escrow and

revert back to such tobacco product manufacturer.

Sec. 133. Section 455D.9, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 1A. Yard waste may be accepted by a

sanitary landfill for land disposal if the sanitary landfill

operates an active methane collection system that produces

electricity.

Sec. 134. Section 476.33, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 5.

a. The board shall adopt rules that

require the board, in a rate regulatory proceeding under

sections 476.3 and 476.6, to consider both of the following

for inclusion in rates:

(1) Capital infrastructure investments that will not

produce significant additional revenues and will be in service

in Iowa within nine months after the conclusion of the test

year.

(2) Cost of capital changes that will occur within nine

months after the conclusion of the test year that are

associated with a new generating plant that has been the

subject of a ratemaking principles proceeding pursuant to

section 476.53.

b. This subsection is repealed effective July 1, 2007.

However, any utilities board proceeding that is pending on

July 1, 2007, that is being conducted pursuant to section

476.3 or 476.6 shall be completed as if this section had not

been repealed. Upon repeal, the board may still consider the

adjustments addressed in this subsection, but shall not be

required to consider them.

Sec. 135. Section 505.7, Code 2003, is amended by adding the following new subsection:

NEW SUBSECTION 9. The commissioner may retain funds

collected during the fiscal year beginning July 1, 2003,

pursuant to any settlement, enforcement action, or other legal

action authorized under federal or state law for the purpose

of reimbursing costs and expenses of the division.

Sec. 136. Section 518.18, unnumbered paragraph 2, Code 2003, is amended to read as follows:

1. TwoThe applicable percent of the gross amount of

premiums received during the preceding calendar year, after

deducting the amount returned upon the canceled policies,

certificates, and rejected applications; and after deducting

premiums paid for windstorm or hail reinsurance on properties

specifically reinsured; provided, however, that. However, the

reinsurer of such windstorm or hail risks shall pay twothe

applicable percent of the gross amount of reinsurance premiums

received upon such risks after deducting the amounts returned

upon canceled policies, certificates, and rejected

applications. For purposes of this section, "applicable

percent" means the same as specified in section 432.1,

subsection 4.

2. Except as provided in subsection 3, the premium tax

shall be paid on or before March 1 of the year following the

calendar year for which the tax is due. The commissioner of

insurance may suspend the certificate of authority of a county

mutual insurance association that fails to pay its premium tax

on or before the due date.

3. a. Each county mutual insurance association

transacting business in this state whose Iowa premium tax

liability for the preceding calendar year was one thousand

dollars or more shall remit on or before June 1, on a

prepayment basis, an amount equal to one-half of the premium

tax liability for the preceding calendar year.

b. In addition to the prepayment amount in paragraph "a",

each association shall remit on or before June 30, on a

prepayment basis, an additional amount equal to the following

percent of the premium tax liability for the preceding

calendar year as follows:

(1) For prepayment in the 2003 and 2004 calendar years,

eleven percent.

(2) For prepayment in the 2005 calendar year, twenty-six

percent.

(3) For prepayment in the 2006 and subsequent calendar

years, fifty percent.

c. The sums prepaid by a county mutual insurance

association under this subsection shall be allowed as credits

against its premium tax liability for the calendar year during

which the payments are made. If a prepayment made under this

subsection exceeds the annual premium tax liability, the

excess shall be allowed as a credit against subsequent

prepayment or tax liabilities. The commissioner of insurance

may suspend the certificate of authority of an association

that fails to make a prepayment on or before the due date.

Sec. 137. Section 518A.35, Code 2003, is amended to read as follows:

518A.35 ANNUAL TAX.

1. A state mutual insurance association doing business

under this chapter shall on or before the first day of March,

each year, pay to the director of revenue and finance, or a

depository designated by the director, a sum equivalent to two

the applicable percent of the gross receipts from premiums and

fees for business done within the state, including all

insurance upon property situated in the state without

including or deducting any amounts received or paid for

reinsurance. However, a company reinsuring windstorm or hail

risks written by county mutual insurance associations is

required to pay a twothe applicable percent tax on the gross

amount of reinsurance premiums received upon such risks, but

after deducting the amount returned upon canceled policies and

rejected applications covering property situated within the

state, and dividends returned to policyholders on property

situated within the state. For purposes of this section,

"applicable percent" means the same as specified in section

432.1, subsection 4.

2. Except as provided in subsection 3, the premium tax

shall be paid on or before March 1 of the year following the

calendar year for which the tax is due. The commissioner of

insurance may suspend the certificate of authority of a state

mutual insurance association that fails to pay its premium tax

on or before the due date.

3. a. Each state mutual insurance association transacting

business in this state whose Iowa premium tax liability for

the preceding calendar year was one thousand dollars or more

shall remit on or before June 1, on a prepayment basis, an

amount equal to one-half of the premium tax liability for the

preceding calendar year.

b. In addition to the prepayment amount in paragraph "a",

each association shall remit on or before June 30, on a

prepayment basis, an additional amount equal to the following

percent of the premium tax liability for the preceding

calendar year as follows:

(1) For prepayment in the 2003 and 2004 calendar years,

eleven percent.

(2) For prepayment in the 2005 calendar year, twenty-six

percent.

(3) For prepayment in the 2006 and subsequent calendar

years, fifty percent.

c. The sums prepaid by a state mutual insurance

association under this subsection shall be allowed as credits

against its premium tax liability for the calendar year during

which the payments are made. If a prepayment made under this

subsection exceeds the annual premium tax liability, the

excess shall be allowed as a credit against subsequent

prepayment or tax liabilities. The commissioner of insurance

may suspend the certificate of authority of an association

that fails to make a prepayment on or before the due date.

Sec. 138.

2003 Iowa Acts, Senate File 453, section 30, if

enacted, is amended by striking the section and inserting in

lieu thereof the following:

SEC.

30. CHARGE FOR RENT. For the fiscal year beginning

July 1, 2003, and ending June 30, 2004, the department of

administrative services, if established in 2003 Iowa Acts,

House File 534, shall transfer $900,000 to the general fund of

the state from the rent fund if established under section

8A.123 in 2003 Iowa Acts, House File 534.

Sec. 139.

2003 Iowa Acts, Senate File 453, section 35, if

enacted, is amended to read as follows:

SEC.

35. CHARTER AGENCY APPROPRIATIONS.

1. Notwithstanding any provision of law to the contrary,

the total operating appropriations reductions as allowed under

section 7J.1 from the general fund of the state to those

departments and agencies designated as charter agencies and

additional revenue to the general fund of the state attributed

to the reinvention process as determined by the department of

management above that already committed to the general fund of

the state generated for the fiscal year beginning July 1,

2003, and ending June 30, 2004, as provided by the

appropriation to those agencies as enacted by the Eightieth

General Assembly, 2003 Regular Session, shall be reduced by

total $15,000,000. The department of management shall apply

the appropriation reductions, with a target of a 10 percent

reduction for each charter agency, as necessary towhich along

with additional generated revenue shall achieve the overall

reduction amount and shall make this information available to

the legislative fiscal committee and the legislative fiscal

bureau. It is the intent of the general assembly that

appropriations to a charter agency in subsequent fiscal years

shall be similarly adjusted from the appropriation that would

otherwise have been enacted.

2. There is appropriated from the general fund of the

state to the department of management for the fiscal year

beginning July 1, 2003, and ending June 30, 2004, the

following amount, or so much thereof as is necessary, to be

used for the purposes designated:

For deposit in the charter agency loangrant fund created

in section 7J.2:

.................................................. $ 3,000,000

3. For the fiscal year beginning July 1, 2003, and ending

June 30, 2004, if the actual amount of revenue received by a

charter agency exceeds the revenue amount budgeted for that

charter agency by the governor and the general assembly, the

charter agency may consider the excess amount to be repayment

receipts as defined in section 8.2.

Sec. 140.

Notwithstanding section 8.33, unencumbered and

unobligated funds remaining from the appropriation made in

1996 Iowa Acts, chapter 1218, section 13, subsection 2,

paragraph "a", subparagraph (2), as amended by 1997 Iowa Acts,

chapter 215, section 3, and from the appropriation made in

1997 Iowa Acts, chapter 215, section 4, subsection 1, shall

not revert but shall be available for the purposes designated

in those provisions until the close of the fiscal year

beginning July 1, 2003.

Sec. 141.

2003 Iowa Acts, Senate File 453, section 49,

subsection 1, unnumbered paragraph 1, if enacted, is amended

to read as follows:

The department of human services shall establish a work

group in cooperation with representatives of the insurance

industry and members of the medical assistance advisory

council to develop a plan for the redesign of the medical

assistance program. In developing the redesign plan, the work

group shall consider all of the following:

Sec. 142.

2003 Iowa Acts, Senate File 453, section 121, if

enacted, is amended to read as follows:

SEC.

121. EFFECTIVE DATE. This division of this Act,

creating the Iowa lottery authority, takes effect September

July 1, 2003.

Sec. 143.

Sections 266.8, 266.24, 266.25, and 266.26, Code

2003, are repealed.

Sec. 144.

REPORT ON FEDERAL ELECTION LAW IMPLEMENTATION.

The state committee, if formed, shall develop a plan for

compliance with the federal Help America Vote Act, Pub. L. No.

107-252, and the state committee, in conjunction with the

state commissioner of elections, shall provide quarterly

updates to the Senate and House of Representatives standing

committees on government oversight on the status of the

implementation of Pub. L. No. 107-252.

Sec. 145.

SALE OF DEPARTMENT OF CORRECTIONS' REAL PROPERTY.

1. Immediately after the effective date of this section,

the department of corrections shall develop a plan to sell, at

market value, the twenty-acre tract of undeveloped land

adjacent to the Iowa correctional institution for women to any

municipality with a population of less than twenty thousand

persons. The plan shall include the sale of the tract of land

within a commercially reasonable time. The sale shall be

negotiated by the department and shall be handled in a manner

that is financially beneficial to the department. The

department shall as a condition of the sale to the

municipality require that the land not be sold by the

municipality for a period of ninety-nine years unless the land

is resold back to the state. Appraisals conducted by the

department of the value of the land shall be made available to

the public immediately following the sale of the tract of

land. If the department is unable to negotiate a financially

beneficial sale, the tract of land shall not be sold, and the

department shall provide the legislative fiscal bureau with

the reasons the sale did not occur.

2. The proceeds from the sale of the property as provided

in subsection 1 shall be retained by the department of

corrections to be used for correctional facilities. The costs

incident to the sale of the tract of land including, but not

limited to, appraisals, invitations for offers, abstracts, and

other necessary costs, may be paid from the proceeds of the

sale or from moneys appropriated for support and maintenance

to the institution at which the real estate is located.

3. The provisions of section 904.317 shall not apply to

the sale of the tract of land sold in accordance with this

section.

Sec. 146.

SALES AND USE TAX REFUND.

1. Notwithstanding the one-year application period

provided for in section 422.45, subsection 7, paragraph "b",

an application by a city with a population between 550 and 625

located entirely in a county with a population between 39,750

and 41,750 for a refund of sales, services, or use tax paid

upon any goods, wares, or merchandise, or services rendered,

furnished, or performed and used in the performance of

contracts involving a street construction project and a sewer

project is considered timely filed under section 422.45,

subsection 7, if the application for refund is filed with the

department of revenue and finance on or before August 1, 2003.

2. Notwithstanding the amount applied for under subsection

1, the amount of a refund paid under this section shall not

exceed $15,000.

Sec. 147.

SCHOOL DISTRICT REIMBURSEMENT CLAIM.

1. Any school district located in a county with a

population between 11,550 and 12,000 is authorized to refile a

claim for state reimbursement of the costs of providing

vocational education programs at the secondary level in its

district notwithstanding the denial of its previously filed

claim with the state appeal board if the claim is filed by

October 1, 2003. Such claim shall be considered timely filed

notwithstanding any provision of law.

2. If the claim filed pursuant to subsection 1 is a valid

claim for state reimbursement, the claim shall be paid subject

to the following:

a. The amount of costs reimbursed shall not exceed 6.5

percent.

b. Any amount reimbursed pursuant to any previously filed

claim relating to the same costs shall not be included.

c. The total amount reimbursed under this section shall

not exceed $6,000.

Sec. 148.

COORDINATION OF PUBLIC TRANSPORTATION STUDY.

The state department of transportation shall conduct a study

and prepare a report pertaining to administrative efficiencies

that may be gained by the coordination of transit management

and maintenance systems in the areas of school transportation,

public transit, and other forms of public transportation. The

report shall be provided to the general assembly by December

31, 2003.

Sec. 149.

SUPPLEMENTAL PAYMENT ADJUSTMENTS FOR PHYSICIAN SERVICES.

To the extent that, pursuant to law enacted by the

Eightieth General Assembly, 2003 Session, supplemental payment

adjustments are implemented for physician services provided to

medical assistance program participants at publicly owned

acute care hospitals, the department of human services shall

not, directly or indirectly, recoup the supplemental payment

adjustments for any reason, unless an amount equivalent to the

amount of adjustment funds that were transferred to the

department by the state university of Iowa college of medicine

is transferred by the department to the qualifying physicians.

Sec. 150.

UTILITIES BOARD REVIEW.

The utilities board

shall initiate and coordinate a review of current ratemaking

procedures to determine whether different procedures would be

cost-effective and would result in rates that more accurately

reflect a utility's cost of providing service to its customers

in Iowa. The board shall allow the consumer advocate division

of the department of justice, the rate-regulated utilities,

and other interested persons to participate in its review.

The board shall report the results of its review to the

general assembly, with recommendations as appropriate, on or

before January 5, 2004.

Sec. 151.

USE OF TEAM-BASED VARIABLE PAY MONEYS FOR FY 2003-2004.

Notwithstanding section 284.13, subsection 1,

paragraph a, of the moneys reserved for purposes of team-based

variable pay for the fiscal year beginning July 1, 2003, and

ending June 30, 2004, the sum of two hundred thousand dollars

shall be used for purposes of the reading instruction pilot

program established pursuant to 2003 Iowa Acts, House File

549, if enacted.

Sec. 152.

FULL-SIZE OFF-HIGHWAY VEHICLE REGISTRATION PROGRAM — PLAN.

The department of natural resources and the

state department of transportation, in consultation with the

Iowa association of four wheel drive clubs, shall develop a

plan for the establishment of a registration program for full-

size off-highway vehicles for the purposes of regulating the

recreational use of full-size off-highway vehicles and

establishing a full-size off-highway vehicle recreation area

in the state. The plan shall include an analysis of the

number of full-size off-highway vehicles expected to be

registered prior to the establishment of a full-size off-

highway vehicle recreation area and the number of

registrations expected after the establishment of such a

facility. The plan shall also include optimum locations for a

full-size off-highway vehicle recreation area, estimated

costs, if any, for maintenance of the area, and any other

issues the departments and the association deem to be of

importance in the planning process. The plan, which shall

include any proposed legislation for implementation of the

plan, shall be submitted to the legislative services agency

and the general assembly no later than January 1, 2004.

Sec. 153.

ELIMINATION OF POSITION — IOWA LAW ENFORCEMENT ACADEMY DIRECTOR.

The merit position of director of the Iowa

law enforcement academy referred to in section 80B.5, Code

2003, is eliminated effective April 30, 2004.

Sec. 154.

SEVERABILITY.

1. If this entire Act or any portion of section 453C.2,

subsection 2, paragraph "b", subparagraph (2), as amended in

this Act, is held by a court of competent jurisdiction to be

unconstitutional, section 453C.2, subsection 2, paragraph "b",

subparagraph (2), is repealed in its entirety.

2. If section 453C.2, subsection 2, paragraph "b",

subparagraph (2), is repealed pursuant to subsection 1 and a

court of competent jurisdiction subsequently finds that

section 453C.2, subsection 2, paragraph "b", is

unconstitutional due to such repeal, section 453C.2,

subsection 2, paragraph "b", subparagraph (2), Code 2003,

shall be restored.

3. Any holding of unconstitutionality or any repeal of

section 453C.2, subsection 2, paragraph "b", subparagraph (2),

as amended in this Act, or of section 453C.2, subsection 2,

paragraph "b", subparagraph (2), Code 2003, shall not affect,

impair, or invalidate any other portion of section 453C.2 or

the application of that section to any other person or

circumstance, and the remaining portions of section 453C.2,

shall continue in full force and effect.

Sec. 155.

FEDERAL HOUSING MONEYS.

Any federal moneys

received by the department of economic development for the

community development block grant program that are allocated

for housing and any federal moneys received for the HOME

investment partnership program shall be coordinated with

projects within the housing trust fund established in section

16.181, if enacted.

Sec. 156.

SMALLPOX VACCINATIONS.

It is the intent of the

general assembly that public safety workers, smallpox response

teams, and others who will be required to be vaccinated

pursuant to the federal Homeland Security Act be protected

from both health-related and other results of the federally

required vaccination. The emergency management division of

the Iowa department of public defense and local governments

should work with employees in the public safety areas or

response teams to achieve the following:

1. Vaccinations should be given only on a voluntary basis.

2. Extensive screening should be employed to protect those

workers who would be at risk from current health conditions if

vaccinated.

3. Reprisals or discrimination for workers not voluntarily

receiving vaccinations should be prohibited.

4. Public employers should protect employees from loss of

income or seniority as a result of side effects from

vaccinations. Homeland security moneys received by the

emergency management division of the Iowa department of public

defense from the federal government should include a set-aside

to purchase supplemental insurance for public safety or

response employees to cover those reactions not covered by

traditional employer-provided health insurance.

5. Disability or long-term reactions from vaccinations

should be considered a work-related injury and should be

covered by local or state policies governing disability.

6. Vaccinations should be scheduled at staggered times to

allow for normal loss of staff time because of vaccination-

related illnesses without seriously hampering public safety

service.

7. Vaccinations administered in Iowa should meet the

requirements of the federal Needlestick Safety and Prevention

Act of 2000 that requires safety features in the use of

needles to administer medicine.

8. The emergency management division of the Iowa

department of public defense should coordinate efforts to

ensure adequate supplies of vaccinia immune globulin and

cidofovir and other appropriate medical care and

pharmaceuticals to protect those employees who suffer

reactions to vaccinations.

Sec. 157.

CODE EDITOR DIRECTIVE.

The Code editor shall

change the name of the department of public defense, emergency

management division, to the department of public defense,

homeland security and emergency management division, in

chapter 29C and elsewhere throughout the Code, including

references to the division made in law enacted by the

Eightieth General Assembly, 2003 Regular Session and other

enactments.

Sec. 158.

RECORDING AND TRANSACTION FEE REPORT.

The

treasurer of state shall submit a report to the governor and

general assembly on or before December 1, 2003, detailing the

amount of fees collected statewide pursuant to section 331.604

in each fiscal year of the period beginning July 1, 2000, and

ending June 30, 2003, and the amount of electronic transaction

fees collected statewide for the period beginning July 1,

2003, and ending September 30, 2003, pursuant to section

331.605C, if enacted by 2003 Iowa Acts, Senate File 453,

section 25.

Sec. 159.

EFFECTIVE DATES.

The following provisions of

this division of this Act, being deemed of immediate

importance, take effect upon enactment:

1. The amendments to sections 8.23, 8.31, and 8.57 which

are first applicable to appropriations made for the fiscal

year beginning July 1, 2003.

2. The amendment to section 12E.12.

3. The amendments to sections 15E.42, 15E.43, 15E.45, and

15E.51, which apply retroactively to January 1, 2002, for tax

years beginning on or after that date.

4. The amendment to section 15E.193B.

5. The amendment to section 435.26A.

6. The amendment to section 453A.2, which shall only take

effect if 2003 Iowa Acts, Senate File 401, is enacted by the

Eightieth General Assembly, 2003 Regular Session.

7. The amendments to sections 453C.1 and 453C.2 and the

related severability provision.

8. The amendments to sections 518.18 and 518A.35.

9. The section directing the department of corrections to

develop a plan for selling certain land.

10. The section relating to the sales and use tax refund.

11. The section relating to the school district

reimbursement claim.

The sections of this division of this Act amending section

80B.5 and enacting section 80B.5A are applicable to the

appointment of the director of the Iowa law enforcement

academy for the term beginning May 1, 2004.

Section 29C.8, subsection 3, paragraph "f", as enacted in

this division of this Act, and the amendment to section

29C.20, subsection 1, as enacted in this division of this Act,

take effect July 1, 2004.

Sec. 160.

Section 135C.31A, if enacted by 2003 Iowa Acts,

House File 619, section 2, is amended to read as follows:

135C.31A ASSESSMENT OF RESIDENTS — PROGRAM ELIGIBILITY.

Beginning July 1, 2003, a health care facility receiving

reimbursement through the medical assistance program under

chapter 249A shall assist the Iowa commission of veterans

affairs in determining, prior to the initialidentifying, upon

admission of a resident, the prospective resident's

eligibility for benefits through the federal department of

veterans affairs. The health care facility shall also assist

the Iowa commission of veterans affairs in determining such

eligibility for residents residing in the facility on July 1,

2003. The department of inspections and appeals, in

cooperation with the department of human services, shall adopt

rules to administer this section, including a provision that

ensures that if a resident is eligible for benefits through

the federal department of veterans affairs or other third-

party payor, the payor of last resort for reimbursement to the

health care facility is the medical assistance program. This

section shall not apply to the admission of an individual to a

state mental health institute for acute psychiatric care.

Sec. 161.

Section 249A.20A, if enacted by 2003 Iowa Acts,

House File 619, section 3, is amended by adding the following

new subsection:

NEW SUBSECTION 5A. The department shall adopt rules to

provide a procedure under which the department and the

pharmaceutical and therapeutics committee may disclose

information relating to the prices manufacturers or

wholesalers charge for pharmaceuticals. The procedures

established shall comply with 42 U.S.C. § 1396r-8 and with

chapter 550.

Sec. 162.

Section 249A.20B, if enacted by 2003 Iowa Acts,

House File 619, section 4, is amended by adding the following

new subsection:

NEW SUBSECTION 5A. The department of human services

shall provide a reimbursement to nursing facilities under this

section. The reimbursement amount shall be calculated as a

per patient day amount and shall be paid to nursing facilities

in addition to the reimbursement payment specified in 2001

Iowa Acts, chapter 192, section 4, subsection 2, paragraph

"c".

Sec. 163.

2003 Iowa Acts, House File 619, section 5, if

enacted, is amended by striking the section and inserting in

lieu thereof the following:

SEC.

5. CASE MANAGEMENT PROGRAM FOR FRAIL ELDERS.

1. The general assembly finds that the existing case

management program for frail elders administered by the

department of elder affairs is an important component of the

long-term care system in this state. The program emphasizes

the independence and dignity of the individual while providing

services in a cost-effective manner.

2. The purposes of the case management program for frail

elders include all of the following:

a. To provide planning, policy development, coordination,

and administrative oversight.

b. To provide assistance in the form of assessment and

care coordination under circumstances in which an elder or the

elder's caregiver is experiencing diminished functional

capacity or other conditions that require the provision of

services by professional service providers.

c. To maintain a system that focuses on the delivery of

home and community-based services that emphasize individual

independence, individual needs and desires, and consumer-

driven quality of services.

3. It is the intent of the general assembly that the

department of elder affairs in collaboration with the

department of human services, area agencies on aging, advocacy

groups, industry representatives, and consumers submit

recommendations to the general assembly by October 1, 2003,

regarding the redesigning of the case management program for

the frail elderly including preadmission screening

methodologies, level of care determinations and ongoing

methodologies for the coordination, provision, and delivery of

home and community-based services.

4. It is also the intent of the general assembly that the

department of elder affairs and the department of human

services coordinate efforts to resolve issues relating to

level of care determinations no later than October 1, 2003.

Sec. 164.

2003 Iowa Acts, House File 619, section 7,

subsection 4, paragraph b, if enacted, is amended to read as

follows:

b. Pharmacies and providers that are enrolled in the

medical assistance program shall make available drug

acquisition cost information, product availability

information, and other information deemed necessary by the

department for the determination of reimbursement rates and

the efficient operation of the pharmacy benefit. Pharmacies

and providers shall produce and submit the requested

information in the manner and format requested by the

department or its designee at no cost to the department or

designee. Pharmacies and providers shall submit information

to the department or its designee within thirty days following

receipt of a request for information unless the department or

its designee grants an extension upon written request of the

pharmacy or provider. Notwithstanding the required provision

of information by pharmacies and providers under this

paragraph, if the department is able to obtain any of the

information required to be provided under this paragraph in an

alternative manner, through which the department is ensured of

the validity and accuracy of the information and of the timely

submission of the information, the department may instead

obtain the information in the alternative manner. Chapter 550

shall apply to the information provided by pharmacies and

providers under this paragraph.

Sec. 165.

2003 Iowa Acts, House File 619, section 9, if

enacted, is amended to read as follows:

SEC.

9. NURSING FACILITY REIMBURSEMENT. Notwithstanding

2001 Iowa Acts, chapter 192, section 4, subsection 2,

paragraph "c", and subsection 3, paragraph "a", subparagraph

(2), if projected state fund expenditures for reimbursement of

nursing facilities for the fiscal year beginning July 1, 2003,

in accordance with the reimbursement rate specified in 2001

Iowa Acts, chapter 192, section 4, subsection 2, paragraph

"c", exceedsexceed $147,252,856, the department shall adjust

the inflation factor of the reimbursement rate calculation to

provide reimbursement within the amount projectedspecified in

this section. The department, in consultation with nursing

facility representatives, shall review the projections on a

quarterly basis to determine if an interim adjustment is

necessary in order to provide reimbursement within the amount

specified in this section. In reviewing the projections, the

department shall consider the savings from the reduction in

bed hold payments, elimination of crossover claims, and

increases in Medicare part A utilization.

Sec. 166.

2003 Iowa Acts, House File 619, section 12,

subsections 2 and 3, if enacted, are amended to read as

follows:

2. The department of human services, in cooperation with

the department's fiscal agent and in consultation with a

chronic care management resource groupconsortium, shall

profile medical assistance recipients within a select number

of disease diagnosis categories. The assessment shall focus

on those diagnosis areas that present the greatest opportunity

for impact to improved care and cost reduction.

3. The department of human services, in consultation with

a chronic care management resource groupconsortium, shall

conduct a chronic disease management pilot project for a

select number of individuals who are participants in the

medical assistance program. The project shall focus on a

select number of chronic diseases which may include congestive

heart failure, diabetes, and asthma. The initial pilot

project shall be implemented by October 1, 2003.

Sec. 167.

2003 Iowa Acts, House File 619, section 12,

subsection 4, if enacted, is amended by striking the

subsection and inserting in lieu thereof the following:

4. The department of human services may procure a sole

source contract with a vendor to manage individuals with

select chronic diseases following the conclusion of the

profiling of medical assistance recipients. The management of

chronic diseases for individuals under this subsection may be

coordinated with the pilot project established in subsection

3.

Sec. 168.

2002 Iowa Acts, Second Extraordinary Session,

chapter 1003, section 110, is amended by adding the following

new paragraph:

NEW UNNUMBERED PARAGRAPH. Notwithstanding section 8.33, up

to $2,400,000 of the funds appropriated in this section that

remain unencumbered or unobligated at the close of the fiscal

year shall not revert but shall remain available in the

succeeding fiscal year to be used for additional field

operations, full-time equivalent positions and general

administration. Four hundred thousand dollars of this amount

shall be used for eight full-time equivalent positions to

provide a case manager in each of the judicial districts to

provide coordination of services for families that have a

history of methamphetamine abuse and $400,000 of this amount

shall be used for general administration.

Sec. 169.

VETERANS — DIRECTIVE.

The commission of

veterans affairs shall work with the commandant of the Iowa

veterans home, the department of human services, and the

department of inspections and appeals to identify the

residents of health care facilities who may be eligible for

benefits through the federal department of veterans affairs

pursuant to section 135C.31A, if enacted by 2003 Iowa Acts,

House File 619.

Sec. 170.

The section of this division of this Act

amending 2002 Iowa Acts, Second Extraordinary Session, chapter

1003, section 110, relating to certain federal temporary

assistance for needy families block grant funding, takes

effect upon enactment.

Sec. 171.

PURPOSE AND DEFINITIONS.

1. PURPOSE. The general assembly finds that the Iowa

communications network is a valuable state asset that has

served the people of the state well, but which requires

significant ongoing financial support from the state in the

form of annual appropriations. The operation of a

telecommunications network is a function that can be and

generally is conducted by private enterprise. It is in the

public interest to sell the Iowa communications network to a

qualified private business enterprise that will commit to

provide the same secure low-cost high-quality service to state

and federal agencies and military installations now provided

by the network. Through such a sale, the state would

eliminate the need for ongoing annual appropriations while

preserving the key benefits enjoyed by the state under the

present state ownership of the network. The state also

expects to obtain sufficient proceeds from such a sale to

cover existing obligations and to realize additional proceeds

above the level of such obligations. Given the current

depressed state of the telecommunications industry, the state

can reasonably be expected to maximize sales proceeds by

allowing a purchaser a period of time in which to assemble

financing for its purchase. During the interim between

enactment of this division of this Act and completion of a

sale, the services of a private-enterprise manager with

experience operating telecommunications networks can

reasonably be expected to reduce the costs of operating the

Iowa communications network, thereby lowering annual

appropriations.

2. DEFINITIONS. As used in this division of this Act,

unless the context otherwise requires:

a. "Board" means the state network privatization board.

b. "Commission" means the Iowa telecommunications and

technology commission established in section 8D.3 to oversee

the operations of the network.

c. "Management contract" means an agreement between the

board and the manager for services to oversee and operate the

network on behalf of the state.

d. "Manager" means the private entity selected by the

board to oversee and operate the network on behalf of the

state.

e. "Network" means the Iowa or state communications

network as defined in section 8D.2.

f. "Out-of-pocket expenses" means moneys paid to an

unaffiliated third party for engineering, legal, consulting,

or other services or goods by a manager or purchaser.

g. "Purchaser" means the entity that is selected by the

board to purchase the network from the state.

h. "Required third-party approval" means any consent,

conveyance, approval, or waiver that must be granted by a

private, governmental, or quasi-governmental third party in

order for the purchaser to receive clear title to all network

assets and the right to use the network assets free of adverse

claims. Required third-party approvals include but are not

limited to all of the following:

(1) Approvals of assignments to the purchaser of the

state's rights under leases or contracts between the state and

the third party.

(2) Conveyance to the purchaser of property that the third

party currently leases to the state on a term with less than

fifteen years remaining.

(3) Release of restrictions in contracts that require that

the state operate the network.

i. "Sales contract" means the contract between the state

as seller, represented by the board, and the purchaser, for

sale of the network to the purchaser.

Sec. 172.

STATE NETWORK PRIVATIZATION BOARD CREATED — DUTIES.

1. A state network privatization board is created. The

board shall consist of the following members:

a. A chairperson member appointed by the legislative

council, subject to confirmation by the senate.

b. A member, who shall not be of the same political party

as the chairperson, appointed by the governor subject to

confirmation by the senate.

c. The adjutant general or the adjutant general's

designee.

2. The board shall do all of the following:

a. Issue a request for proposals from qualified entities

interested in serving as the manager of the network. This

request for proposals shall be issued by July 1, 2004, and

responses to the request for proposals shall be due by August

1, 2004.

b. Select a manager and enter into a management contract

with the manager by October 1, 2004. The management contract

shall provide for the continuation of all services currently

being provided to state and federal agencies and military

installations pursuant to chapter 8D, at the rates specified

therein, for the duration of the contract. The contract shall

also specify the manager's authority in relation to the duties

of the commission during the period between execution of the

management contract and closing of the sale of the network.

The commission shall establish a dispute resolution process

regarding rate increases, quality of service issues, and other

areas of dispute involving network subscribers. The

commission shall also make recommendations regarding

imposition of an ongoing dispute resolution and appeals

process commencing with the closing of the sale of the

network.

c. Issue a request for proposals from qualified entities

for the purchase of the network. This request for proposals

shall be issued by January 1, 2005, and responses to the

request for proposals shall be due by May 1, 2005.

d. Utilizing the criteria set forth in sections 173 and

174 of this Act, select a purchaser and enter into a sales

contract with the purchaser by October 1, 2005.

e. Immediately upon execution of the management contract

and the sales contract by the majority of the board, transmit

the executed contract to the general assembly and to the

governor. The board shall have full authority to enter into

the management contract and the sales contract on behalf of

the state, provided that the general assembly by legislation

enacted regarding the specific purchase and approved by the

governor, within thirty days after transmittal to the general

assembly and the governor in the case of the management

contract, and within sixty days after transmittal to the

general assembly and the governor in the case of the sales

contract, may disapprove the board's action, in which case the

disapproved contract shall have no force and effect. In the

event of such disapproval, the state shall pay the manager or

the purchaser, as the case may be, reasonable out-of-pocket

expenses incurred in preparing a proposal and performing prior

to disapproval, but such expenses shall not exceed two hundred

thousand dollars in the case of disapproval of the management

contract and five hundred thousand dollars in the case of

disapproval of the sales contract.

f. Cause the sales contract to require closing by October

1, 2007, allowing time for the state to obtain third-party

approvals as required by section 176 of this Act, including

the filing of any necessary eminent domain actions, and for

the purchaser to secure financing.

g. Execute all necessary documents relating to the closing

of the sale of the network. The board may direct any other

applicable official to assist in the execution of necessary

documents relating to the closing.

h. Require by written directive that all state officials

provide information and records concerning the network to the

board, to the manager, or to a person submitting a proposal to

purchase the network, whenever the board requires such

provision of such records and other information.

i. Take all other steps necessary and proper as needed to

carry out its responsibilities enumerated in this subsection.

The board may adopt necessary rules pursuant to chapter 17A to

administer this division of this Act.

Sec. 173.

MINIMUM QUALIFICATIONS OF PURCHASER.

The

purchaser shall meet the following requirements:

1. The principal place of business of the purchaser and

any parent of the purchaser shall be located in the state of

Iowa.

2. For national security reasons, and because of the

extensive military use of the network, the purchaser shall

possess national security approval.

Sec. 174.

CRITERIA FOR SELECTION OF PURCHASER.

After

issuing a request for proposals for the purchase of the

network and considering the proposals received, the board

shall select the highest and best offer for purchase of the

network from those persons submitting proposals which meet all

of the following criteria:

1. Satisfy the minimum qualifications of this division of

this Act.

2. Submit a proposal in compliance with the request for

proposals.

3. Demonstrate a likelihood of being able to obtain any

financing necessary to close the transaction. However, the

board shall not require that the purchaser have a commitment

for financing to award the contract, but shall allow the

purchaser at least one year to obtain any necessary financing.

The board may also in its discretion consider proposals

involving financing of the sale by the state.

4. Agree to continue all services currently being provided

to state and federal agencies and military installations for

the next ten years, with any annual rate increase not to

exceed five percent per year, provided that the purchaser

shall not be required to supply at such restricted prices a

quantity or quality of service greater than that provided by

the network as of execution of the contract for sale of the

network.

Sec. 175.

CLOSING OF SALE.

Any debt of the state related

to the network or other liens against network assets shall be

discharged out of the state's proceeds of closing, so that the

purchaser receives marketable title to the network. The

purchaser shall receive bills of sale, in the case of personal

property, and deeds, in the case of real property,

transferring all network assets to the purchaser. The state

shall also transfer its interest in right-of-way and leases

and easements for uses of rights-of-way.

Sec. 176.

THIRD-PARTY APPROVALS.

1. The state shall exercise all reasonable efforts to

obtain each required third-party approval, including where

necessary by use of eminent domain proceedings. To the extent

feasible, the state may pay the costs of obtaining required

third-party approvals out of the proceeds of sale rather than

from the general fund of the state. In the event the state

fails to obtain a required third-party approval, the purchaser

may terminate the sales contract without penalty and shall be

reimbursed by the state for reasonable out-of-pocket expenses

incurred in preparing its proposal and fulfilling its

obligations under the sales contract, not to exceed two

million dollars.

2. The board and the purchaser shall develop a list of

required third-party approvals and persons who may have claims

that would constitute required third-party approvals if valid.

The board shall mail to each person on the list at their last

known address a notice that provides a description of the sale

and invites the recipient to submit a claim on a form

developed by the board by a deadline set by the board. The

claim or interest of any person who fails to timely file a

claim shall be deemed discharged and forfeited, and such

person shall be forever barred and estopped from taking any

action against the state or purchaser that would in any way

interfere with the purchaser's use of the network. In

addition, the board shall publish the notice in newspapers of

general circulation in the state of Iowa, and failure to file

a timely claim shall bar all persons whose rights could

constitutionally be affected by such notice, just as if such

person had been mailed notice.

3. Any eminent domain or other proceeding to obtain a

required third-party approval shall be promptly filed by the

attorney general at the request of the board and shall be

added to the calendar of any trial or appellate court of this

state so that the deadline in section 172 of this Act for

closing the sale can be met.

Sec. 177.

REMOVAL OF RESTRICTIONS — REPEAL OF CHAPTER 8D.

Chapter 8D is repealed, effective as of the date of the

closing of the sale of the network under this division of this

Act, as certified by the chairperson of the board to the

governor.

Sec. 178.

ASSISTANCE OF OTHER STATE AGENCIES.

1. The attorney general shall provide legal advice to the

board.

2. All other state agencies shall provide whatever

assistance may reasonably be required by the board in carrying

out its duties under this division of this Act.

Sec. 179.

Section 331.264, subsection 1, unnumbered

paragraph 1, and paragraphs a through d, if enacted by 2003

Iowa Acts, Senate File 390, section 25, are amended to read as

follows:

A local government organization review committee may be

created in a county having a population in excess of one

hundred thousand. The committee shall be composed of the

following members:

a. Three city council members appointed by the city

council of each participating city with a population of

twenty-five thousand or more.

b. Three county supervisors appointed by the county board

of supervisors.

c. One city council member appointed by each participating

city with a population of less than twenty-five thousand.

d. One member shall be appointed by each state legislator

whose legislative district is located in the county if a

majority of the constituents of that legislative district

reside in the county. However, if a county does not have a

state representative's legislative district which has a

majority of a state representative's constituency residing in

the county, the state representative having the largest

plurality of constituents residing in the county shall appoint

a member. The member appointed by each state legislator shall

be a person who is not holding elected office and who is a

resident of the legislative district of the state legislator.

If any portionmore than one-half of the population of a

legislative district is in the unincorporated area of the

county, the member appointed by that legislator shall be a

resident of the unincorporated area of the county.

Sec. 180.

EFFECTIVE DATE.

This division of this Act,

being deemed of immediate importance, takes effect upon

enactment.