Senate File 2318 - Introduced SENATE FILE 2318 BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO SF 2213) A BILL FOR An Act concerning and affecting veterans and military members, 1 related to employment benefits, professional licensing, 2 and interest rate limit enforcement, and making penalties 3 applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5553SV (2) 83 ec/sc

S.F. 2318 DIVISION I 1 EMPLOYMENT BENEFITS FOR MILITARY MEMBERS 2 Section 1. Section 8A.402, subsection 2, paragraph f, Code 3 Supplement 2009, is amended to read as follows: 4 f. (1) Develop, in consultation with the department of 5 veterans affairs, programs to inform state employees who are 6 members of the national guard or organized reserves of the 7 armed forces of the United States, and their families, of their 8 rights and benefits while the member is deployed in active 9 federal service. 10 (2) Develop, in consultation with the department of 11 veterans affairs, programs to inform members of the national 12 guard or organized reserves of the armed forces of the United 13 States returning to Iowa following active federal service about 14 job opportunities in state government. 15 Sec. 2. Section 97A.10, Code 2009, is amended by striking 16 the section and inserting in lieu thereof the following: 17 97A.10 Purchase of service credit for military service. 18 1. An active member of the system who has been a member of 19 the retirement system five or more years may elect to purchase 20 up to five years of service credit for military service, other 21 than military service required to be recognized under Internal 22 Revenue Code § 414(u) or under the federal Uniformed Services 23 Employment and Reemployment Rights Act, that will be recognized 24 by the retirement system for purposes of calculating a member’s 25 benefit, pursuant to Internal Revenue Code § 415(n) and the 26 requirements of this section. 27 2. a. A member seeking to purchase service credit pursuant 28 to this section shall file a written application with the 29 system requesting an actuarial determination of the cost of a 30 purchase of service credit. Upon receipt of the cost estimate 31 for the purchase of service from the system, the member may 32 make contributions to the system in an amount equal to the 33 actuarial cost of the service credit purchase. 34 b. For purposes of this subsection, the actuarial cost of 35 -1- LSB 5553SV (2) 83 ec/sc 1/ 4

S.F. 2318 the service credit purchase is an amount determined by the 1 system in accordance with actuarial tables, as reported to the 2 system by the system’s actuary, which reflects the actuarial 3 cost necessary to fund an increased retirement allowance 4 resulting from the purchase of service credit. 5 3. The system shall ensure that the member, in exercising an 6 option provided in this section, does not exceed the amount of 7 annual additions to a member’s account permitted pursuant to § 8 415 of the Internal Revenue Code. 9 4. The board of trustees shall adopt rules providing for the 10 implementation and administration of this section. 11 DIVISION II 12 LICENSING AND PROFESSIONAL LIABILITY INSURANCE 13 Sec. 3. NEW SECTION . 29A.103A Professional liability 14 insurance. 15 An obligation or liability of a service member to pay a 16 premium for professional liability insurance coverage shall be 17 stayed for the service member during military service and the 18 service member shall be allowed to continue coverage and resume 19 payment upon completion of military service, without penalty. 20 Sec. 4. MILITARY SERVICE LICENSING WORKGROUP. The 21 department of workforce development and the department of 22 veterans affairs shall establish a workgroup to identify 23 licensing requirements for workforce shortage areas and to 24 study, in conjunction with the relevant licensing entities, 25 whether comparable military training could substitute for 26 current licensing requirements. The workgroup shall submit any 27 findings, including any recommendations for legislative action 28 to allow flexible licensing requirements for veterans, to the 29 general assembly by January 1, 2011. 30 DIVISION III 31 CONSUMER CREDIT TERMS —— ENFORCEMENT 32 Sec. 5. NEW SECTION . 535.18 Consumer credit terms for 33 service members —— enforcement. 34 The superintendent of banking and the superintendent of 35 -2- LSB 5553SV (2) 83 ec/sc 2/ 4

S.F. 2318 credit unions, as applicable, shall have the authority to 1 enforce the consumer protection provisions of 10 U.S.C. § 987 2 concerning limitations on terms of consumer credit extended to 3 service members and their dependents. 4 EXPLANATION 5 This bill makes changes concerning and affecting veterans 6 and military members. 7 Division I concerns employment benefits for military 8 members. 9 Code section 8A.402, concerning the duties of the department 10 of administrative services relative to human resource 11 management, is amended to provide that the department establish 12 programs to inform state employees who are military members, 13 and their families, of their rights and benefits while the 14 service member is deployed. 15 Code section 97A.10 is rewritten to allow an active member 16 of the peace officers’ retirement system to purchase service 17 credit for military service that is not otherwise required to 18 be recognized by federal law upon payment of the actuarial cost 19 of the service purchase. 20 Division II concerns professional liability insurance and 21 licensing. 22 New Code section 29A.103A adds a provision to the Iowa 23 National Guard Civil Relief Act to provide that a service 24 member’s obligation or liability to pay a premium for 25 professional liability insurance coverage shall be stayed 26 during military service and that the service member shall be 27 allowed to continue coverage and resume payment upon completion 28 of military service without penalty. 29 The division also establishes a department of workforce 30 development and department of veterans affairs workgroup to 31 identify licensing requirements for workforce shortage areas 32 and to study, in conjunction with the relevant licensing 33 entities, whether comparable military training could substitute 34 for current licensing requirements. This portion of the 35 -3- LSB 5553SV (2) 83 ec/sc 3/ 4

S.F. 2318 division directs the workgroup to report any need for 1 legislative action to the general assembly by January 1, 2011. 2 Division III of the bill provides that the superintendent 3 of banking and the superintendent of credit unions shall have 4 the authority to enforce the percentage rate limitation imposed 5 as a restriction or safeguard for military personnel under 10 6 U.S.C. § 987. 7 -4- LSB 5553SV (2) 83 ec/sc 4/ 4