House File 2328 - Introduced HOUSE FILE 2328 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 606) (COMPANION TO SF 2203) A BILL FOR An Act relating to nonsubstantive Code corrections and 1 including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5517HV (2) 84 lh/rj
H.F. 2328 DIVISION I 1 NONSUBSTANTIVE CHANGES 2 Section 1. Section 6B.14, subsection 2, Code 2011, is 3 amended to read as follows: 4 2. Prior to the meeting of the commission, the commission 5 or a commissioner shall not communicate with the applicant, 6 property owner, or tenant, or their agents, regarding the 7 condemnation proceedings. The commissioners shall meet in 8 open session to view the property and to receive evidence, but 9 may deliberate in closed session. When deliberating in closed 10 session, the meeting is closed to all persons who are not 11 commissioners except for personnel from the sheriff’s office 12 if such personnel is are requested by the commission. After 13 deliberations commence, the commission and each commissioner is 14 prohibited from communicating with any party to the proceeding. 15 However, if the commission is deliberating in closed session, 16 and after deliberations commence the commission requires 17 further information from a party or a witness, the commission 18 shall notify the property owner and the acquiring agency that 19 they are allowed to attend the meeting at which such additional 20 information shall be provided but only for that period of time 21 during which the additional information is being provided. 22 The property owner and the acquiring agency shall be given a 23 reasonable opportunity to attend the meeting. The commission 24 shall keep minutes of all its meetings showing the date, time, 25 and place, the members present, and the action taken at each 26 meeting. The minutes shall show the results of each vote taken 27 and information sufficient to indicate the vote of each member 28 present. The vote of each member present shall be made public 29 at the open session. The minutes shall be public records open 30 to public inspection. 31 Sec. 2. Section 8F.2, subsection 8, paragraph b, 32 subparagraph (8), Code 2011, is amended to read as follows: 33 (8) A contract for services provided from resources made 34 available under Title Tit. XVIII, XIX, or XXI of the federal 35 -1- LSB 5517HV (2) 84 lh/rj 1/ 129
H.F. 2328 Social Security Act. 1 Sec. 3. Section 10B.4, subsection 2, paragraph g, Code 2 Supplement 2011, is amended to read as follows: 3 g. If the reporting entity is a life science enterprise, as 4 provided in chapter 10C , Code 2011, as that chapter exists on 5 or before June 30, 2005, the total amount of commercial sale 6 of life science products and products other than life science 7 products which are produced from the agricultural land held by 8 the life science enterprise. 9 Sec. 4. Section 12.87, subsection 1, paragraph a, Code 10 Supplement 2011, is amended to read as follows: 11 a. The treasurer of state is authorized to issue and sell 12 bonds on behalf of the state to provide funds for certain 13 infrastructure projects and for purposes of the Iowa jobs 14 program established in section 16.194 . The treasurer of state 15 shall have all of the powers which are necessary or convenient 16 to issue, sell, and secure bonds and carry out the treasurer of 17 state’s duties, and exercise the treasurer of state’s authority 18 under this section and sections 12.88 through 12.90 . The 19 treasurer of state may issue and sell bonds in such amounts as 20 the treasurer of state determines to be necessary to provide 21 sufficient funds for certain infrastructure projects and the 22 revenue bonds capitals fund, the revenue bonds capitals II 23 fund, the payment of interest on the bonds, the establishment 24 of reserves to secure the bonds, the payment of costs of 25 issuance of the bonds, the payment of other expenditures of 26 the treasurer of state incident to and necessary or convenient 27 to carry out the issuance and sale of the bonds, and the 28 payment of all other expenditures of the treasurer of state 29 necessary or convenient to administer the funds and to carry 30 out the purposes for which the bonds are issued and sold. The 31 treasurer of state may issue and sell bonds as provided in 32 paragraph “b” in one or more series on the terms and conditions 33 the treasurer of state determines to be in the best interest of 34 the state, in accordance with this section in such amounts as 35 -2- LSB 5517HV (2) 84 lh/rj 2/ 129
H.F. 2328 the treasurer of state determines to be necessary to fund the 1 purposes for which such bonds are issued and sold as follows: . 2 Sec. 5. Section 15.104, subsection 3, unnumbered paragraph 3 1, Code Supplement 2011, is amended to read as follows: 4 Review and approve or disapprove a life science enterprise 5 plan or amendments to that plan as provided in chapter 10C , 6 Code 2011, and according to rules adopted by the board. A 7 life science plan shall make a reasonable effort to provide 8 for participation by persons who are individuals or family 9 farm entities actively engaged in farming as defined in 10 section 10.1 . The persons may participate in the life science 11 enterprise by holding an equity position in the life science 12 enterprise or providing goods or service to the enterprise 13 under contract. The plan must be filed with the board not 14 later than June 30, 2005. The life science enterprise may file 15 an amendment to a plan at any time. A life science enterprise 16 is not eligible to file a plan, unless the life science 17 enterprise files a notice with the board. The notice shall be 18 a simple statement indicating that the life science enterprise 19 may file a plan as provided in this section . The notice must be 20 filed with the board not later than June 1, 2005. The notice, 21 plan, or amendments shall be submitted by a life science 22 enterprise as provided by the board. The board shall consult 23 with the department of agriculture and land stewardship during 24 its review of a life science plan or amendments to that plan. 25 The plan shall include information regarding the life science 26 enterprise as required by rules adopted by the board, including 27 but not limited to all of the following: 28 Sec. 6. Section 15.117A, subsection 6, paragraph b, Code 29 Supplement 2011, is amended to read as follows: 30 b. Review annually all of the economic development programs 31 administered by the authority and the board that relate to the 32 targeted industries and make recommendations for adjustments 33 that enhance efficiency and effectiveness. In reviewing the 34 programs, the council shall, to the greatest extent possible, 35 -3- LSB 5517HV (2) 84 lh/rj 3/ 129
H.F. 2328 utilize economic development data and research in order to make 1 objective, fact-based recommendations. 2 Sec. 7. Section 15.247, subsection 8, paragraphs c and d, 3 Code Supplement 2011, are amended to read as follows: 4 c. A person within the third degree of consanguinity of an 5 employee of the authority, a person within the third degree 6 of consanguinity of a member of the targeted small business 7 financial assistance board or member’s relative, or a business 8 with any financial ties to a member shall not be eligible for 9 financial assistance under the program during the employee’s 10 employment or the member’s tenure on the board, as applicable. 11 d. Members shall serve two year two-year terms and may be 12 reappointed. A member shall not serve more than two terms. 13 d. e. The targeted small business financial assistance 14 board shall consider all applications for financial assistance 15 under the program submitted on or after July 1, 2007. 16 Sec. 8. Section 15A.9, subsection 1, paragraph b, Code 17 Supplement 2011, is amended to read as follows: 18 b. (1) In order to assist a community or communities 19 located within the state to secure new industrial manufacturing 20 jobs, the state of Iowa makes economic development assistance 21 available within the zone or zones, and the department of 22 economic development shall designate a site or sites, which 23 shall not be larger than two thousand five hundred acres, 24 within thirty days of March 4, 1994, as a quality jobs 25 enterprise zone or zones for the purpose of attracting a 26 primary business and supporting businesses to locate facilities 27 within the state. 28 (2) The primary business or a supporting business shall not 29 be prohibited from participating in or receiving other economic 30 development programs or services or electing to utilize other 31 tax provisions to the extent authorized elsewhere by law. 32 Sec. 9. Section 34A.15, subsection 1, paragraphs c, e, and 33 h, Code Supplement 2011, are amended to read as follows: 34 c. One person appointed by the Iowa association of chiefs of 35 -4- LSB 5517HV (2) 84 lh/rj 4/ 129
H.F. 2328 police and peace officers association . 1 e. One person appointed by the Iowa association of 2 professional fire fighters. 3 h. One person appointed by the Iowa chapter of the 4 association of public safety public-safety communications 5 officials-international, inc. 6 Sec. 10. Section 80B.11A, Code 2011, is amended to read as 7 follows: 8 80B.11A Jailer training standards. 9 The director of the academy, subject to the approval of 10 the council, and in consultation with the Iowa department of 11 corrections, Iowa state sheriffs’ and deputies’ association, 12 and the Iowa association of chiefs of police and peace officers 13 association , shall adopt rules in accordance with this chapter 14 and chapter 17A establishing minimum standards for training of 15 jailers. 16 Sec. 11. Section 80B.11C, Code 2011, is amended to read as 17 follows: 18 80B.11C Telecommunicator training standards. 19 The director of the academy, subject to the approval of 20 the council, in consultation with the Iowa state sheriffs’ 21 and deputies’ association, the Iowa police executive forum, 22 the Iowa association of chiefs of police and peace officers 23 association , the Iowa state police association, the Iowa 24 association of professional fire fighters, the Iowa emergency 25 medical services association, the joint council of Iowa 26 fire service organizations, the Iowa department of public 27 safety, the Iowa chapter of the association of public safety 28 public-safety communications officials-international, inc., the 29 Iowa chapter of the national emergency number association, the 30 homeland security and emergency management division of the Iowa 31 department of public defense, and the Iowa department of public 32 health, shall adopt rules pursuant to chapter 17A establishing 33 minimum standards for training of telecommunicators. For 34 purposes of this section , “telecommunicator” means a person who 35 -5- LSB 5517HV (2) 84 lh/rj 5/ 129
H.F. 2328 receives requests for, or dispatches requests to, emergency 1 response agencies which include, but are not limited to, law 2 enforcement, fire, rescue, and emergency medical services 3 agencies. 4 Sec. 12. Section 80E.2, subsection 1, paragraph m, Code 5 2011, is amended to read as follows: 6 m. A member representing the Iowa association of chiefs of 7 police and peace officers association . 8 Sec. 13. Section 80E.2, subsection 2, Code 2011, is amended 9 to read as follows: 10 2. The prosecuting attorney, licensed substance abuse 11 treatment specialist, certified substance abuse prevention 12 specialist, substance abuse treatment program director, member 13 representing the Iowa association of chiefs of police and 14 peace officers association , member representing the Iowa state 15 police association, and the member representing the Iowa state 16 sheriffs’ and deputies’ association shall be appointed by the 17 governor, subject to senate confirmation, for four-year terms 18 beginning and ending as provided in section 69.19 . A vacancy 19 on the council shall be filled for the unexpired term in the 20 same manner as the original appointment was made. 21 Sec. 14. Section 96.21, Code 2011, is amended to read as 22 follows: 23 96.21 Termination. 24 If at any time Title Tit. IX of the Social Security Act, 25 as amended, shall be amended or repealed by Congress or held 26 unconstitutional by the supreme court of the United States, 27 with the result that no portion of the contributions required 28 under this chapter may be credited against the tax imposed 29 by said Title Tit. IX, in any such event the operation of 30 the provisions of this chapter requiring the payment of 31 contributions and benefits shall immediately cease, the 32 department shall thereupon requisition from the unemployment 33 trust fund all moneys therein standing to its credit, and such 34 moneys, together with any other moneys in the unemployment 35 -6- LSB 5517HV (2) 84 lh/rj 6/ 129
H.F. 2328 compensation fund shall be refunded, without interest and under 1 regulations prescribed by the department, to each employer 2 by whom contributions have been paid, proportionately to the 3 employer’s pro rata share of the total contributions paid under 4 this chapter . Any interest or earnings of the fund shall be 5 available to the department to pay for the costs of making such 6 refunds. When the department shall have executed the duties 7 prescribed in this section and performed such other acts as are 8 incidental to the termination of its duties under this chapter , 9 the provisions of this chapter , in their entirety, shall cease 10 to be operative. 11 Sec. 15. Section 96.27, Code 2011, is amended to read as 12 follows: 13 96.27 Approval of attorney general. 14 An agreement made for the purchase or other acquisition of 15 the premises mentioned in section 96.25 of this section with 16 funds granted or credited to this state for such purpose under 17 the Social Security Act or the Wagner-Peyser Act shall be 18 subject to the approval of the attorney general of the state of 19 Iowa as to form and as to title thereto. 20 Sec. 16. Section 97C.5, Code 2011, is amended to read as 21 follows: 22 97C.5 Tax on employees. 23 Every employee whose services are covered by an agreement 24 entered into under section 97C.3 shall be required to pay 25 for the period of such coverage into the contribution fund 26 established by section 97C.12 , a tax which is hereby imposed 27 with respect to wages received during the calendar year of 28 1953, equal to such percentum of the wages received by the 29 employee as imposed by Social Security Act, Title Tit. II, 30 as such Act has been and may from time to time be amended. 31 Such payment shall be considered a condition of employment 32 as a public employee. Taxes deducted from the wages of the 33 employee by the employer and taxes imposed upon the employer 34 shall be forwarded to the state agency for recording and shall 35 -7- LSB 5517HV (2) 84 lh/rj 7/ 129
H.F. 2328 be deposited with the treasurer of state to the credit of 1 the contribution fund established by section 97C.12 of this 2 chapter . 3 Sec. 17. Section 97C.10, Code 2011, is amended to read as 4 follows: 5 97C.10 Tax on employer. 6 In addition to all other taxes there is hereby imposed upon 7 each employer as defined in section 97C.2, subsection 2 , a 8 tax equal to such percentum of the wages paid by the employer 9 to each employee as imposed by the Social Security Act, Title 10 Tit. II, as such Act has been and may from time to time be 11 amended. The employer shall pay its tax or contribution from 12 funds available and is directed to pay same from tax money or 13 from any other income available. The political subdivision is 14 hereby authorized and directed to levy in addition to all other 15 taxes a property tax sufficient to meet its obligations under 16 the provisions of this chapter , if such tax levy is necessary 17 because other funds are not available. 18 Sec. 18. Section 97C.15, Code 2011, is amended to read as 19 follows: 20 97C.15 Payments to secretary of treasury. 21 From the contribution fund the custodian of the fund shall 22 pay to the secretary of the treasury of the United States such 23 amounts and at such time or times as may be directed by the 24 state agency in accordance with any agreement entered into 25 under section 97C.3 and the Social Security Act, Title Tit. II. 26 Sec. 19. Section 99D.11, subsections 2 and 3, Code 27 Supplement 2011, are amended to read as follows: 28 2. Licensees shall only permit the pari-mutuel or 29 certificate method of wagering, or the advanced advance deposit 30 method of wagering, as defined in this section . 31 3. The licensee may receive wagers of money only from a 32 person present in a licensed racetrack enclosure on a horse 33 or dog in the race selected by the person making the wager to 34 finish first in the race or from a person engaging in advanced 35 -8- LSB 5517HV (2) 84 lh/rj 8/ 129
H.F. 2328 advance deposit wagering as defined in this section . The 1 person wagering shall acquire an interest in the total money 2 wagered on all horses or dogs in the race as first winners in 3 proportion to the amount of money wagered by the person. 4 Sec. 20. Section 99D.11, subsection 6, paragraph c, Code 5 Supplement 2011, is amended to read as follows: 6 c. (1) The commission shall authorize the licensee of the 7 horse racetrack located in Polk county to conduct advanced 8 advance deposit wagering. An advanced advance deposit wager 9 may be placed in person at a licensed racetrack enclosure, or 10 from any other location via a telephone-type device or any 11 other electronic means. The commission may also issue an 12 advanced advance deposit wagering operator license to an entity 13 who complies with subparagraph (3) and section 99D.8A . 14 (2) For the purposes of this section , “advanced deposit 15 wagering” “advance deposit wagering” means a method of 16 pari-mutuel wagering in which an individual may establish 17 an account, deposit money into the account, and use the 18 account balance to pay for pari-mutuel wagering. Of the net 19 revenue, less all taxes paid and expenses directly related to 20 account deposit wagering incurred by the licensee of the horse 21 racetrack located in Polk county, received through advanced 22 advance deposit wagering, fifty percent shall be designated for 23 the horse purses created pursuant to section 99D.7, subsection 24 5 , and fifty percent shall be designated for the licensee for 25 the pari-mutuel horse racetrack located in Polk county. 26 (3) Before granting an advanced advance deposit wagering 27 operator license to an entity other than the licensee of 28 the horse racetrack located in Polk county, the commission 29 shall enter into an agreement with the licensee of the 30 horse racetrack located in Polk county, the Iowa horsemen’s 31 benevolent and protective association, and the prospective 32 advanced advance deposit wagering operator for the purpose 33 of determining the payment of statewide source market fees 34 and the host fees to be paid on all races subject to advanced 35 -9- LSB 5517HV (2) 84 lh/rj 9/ 129
H.F. 2328 advance deposit wagering. The commission shall establish the 1 term of such an advanced advance deposit wagering operator 2 license. Such an advanced advance deposit wagering operator 3 licensee shall accept wagers on live races conducted at the 4 horse racetrack in Polk county from all of its account holders 5 if it accepts wagers from any residents of this state. 6 (4) An unlicensed advanced advance deposit wagering 7 operator or an individual taking or receiving wagers from 8 residents of this state on races conducted at the horse 9 racetrack located in Polk county is guilty of a class “D” 10 felony. 11 (5) For the purposes of this paragraph “c” , “advanced 12 deposit wagering operator” “advance deposit wagering operator” 13 means an advanced advance deposit wagering operator licensed 14 by the commission who has entered into an agreement with the 15 licensee of the horse racetrack in Polk county and the Iowa 16 horsemen’s benevolent and protective association to provide 17 advanced advance deposit wagering. 18 Sec. 21. Section 100B.1, subsection 1, paragraph a, 19 subparagraph (1), subparagraph division (c), Code Supplement 20 2011, is amended to read as follows: 21 (c) Two members from a list submitted by the Iowa 22 association of professional fire fighters. 23 Sec. 22. Section 105.2, subsection 8, Code Supplement 2011, 24 is amended to read as follows: 25 8. “Hydronic” means a heating or cooling system that 26 transfers heating or cooling by circulating fluid through 27 a closed system, including boilers, pressure vessels, 28 refrigerated refrigeration equipment in connection with chilled 29 water systems, all steam piping, hot or chilled water piping 30 together with all control devices and accessories, installed as 31 part of, or in connection with, any heating or cooling system 32 or appliance using a liquid, water, or steam as the heating 33 or cooling media. “Hydronic” includes all low-pressure and 34 high-pressure systems and all natural, propane, liquid propane, 35 -10- LSB 5517HV (2) 84 lh/rj 10/ 129
H.F. 2328 or other gas lines associated with any component of a hydronic 1 system. 2 Sec. 23. Section 124.401, subsection 4, paragraph e, Code 3 Supplement 2011, is amended to read as follows: 4 e. Red phosphorous phosphorus . 5 Sec. 24. Section 135.105, subsection 1, Code 2011, is 6 amended to read as follows: 7 1. Coordinate the childhood lead poisoning prevention 8 program with the department of natural resources, the 9 university of Iowa poison control program, the mobile and 10 regional child health speciality specialty clinics, and any 11 agency or program known for a direct interest in lead levels 12 in the environment. 13 Sec. 25. Section 135.159, subsection 2, paragraph a, 14 subparagraph (9), Code Supplement 2011, is amended to read as 15 follows: 16 (9) A representative of the governor’s Iowa developmental 17 disabilities council. 18 Sec. 26. Section 161G.3, subsection 3, paragraph a, Code 19 2011, is amended to read as follows: 20 a. Provide for conservation systems that manage and optimize 21 nitrogen and phosphorous phosphorus within fields to minimize 22 runoff and reduce downstream nutrient loading. 23 Sec. 27. Section 162.20, subsection 5, paragraph c, Code 24 2011, is amended to read as follows: 25 c. The transfer of a dog or cat to a research facility as 26 defined in section 162.2 or a person licensed by the United 27 States department of agriculture as a class B dealer pursuant 28 to 9 C.F.R. ch. 1, subch. A, pt. 2. However, a class B dealer 29 who receives an unsterilized dog or cat from a pound or animal 30 shelter shall either sterilize the dog or cat or transfer the 31 unsterilized dog or cat to a research facility provided in this 32 paragraph. The class B dealer shall not transfer a dog to a 33 research facility if the dog is a greyhound registered with the 34 national greyhound association and the dog raced at a track 35 -11- LSB 5517HV (2) 84 lh/rj 11/ 129
H.F. 2328 associated with pari-mutuel racing unless the class B dealer 1 receives written approval of the transfer from a person who 2 owned an interest in the dog while the dog was racing. 3 Sec. 28. Section 225B.3, subsection 1, paragraphs b, c, and 4 d, Code 2011, are amended to read as follows: 5 b. Three providers of disability prevention services, 6 recommended by the governor’s Iowa developmental disabilities 7 council, appointed by the governor, and confirmed by the 8 senate. 9 c. Three persons with expertise in priority prevention 10 areas, recommended by the governor’s Iowa developmental 11 disabilities council, appointed by the governor, and confirmed 12 by the senate. 13 d. Three persons with disabilities or family members of a 14 person with disabilities, recommended by the governor’s Iowa 15 developmental disabilities council, appointed by the governor 16 and confirmed by the senate. 17 Sec. 29. Section 225C.6, subsection 1, paragraph k, Code 18 Supplement 2011, is amended to read as follows: 19 k. Coordinate activities with the governor’s Iowa 20 developmental disabilities council and the mental health 21 planning council, created pursuant to federal law. The 22 commission shall work with other state agencies on 23 coordinating, collaborating, and communicating concerning 24 activities involving persons with disabilities. 25 Sec. 30. Section 231E.4, subsection 3, paragraph e, Code 26 2011, is amended to read as follows: 27 e. Work with the department of human services, the Iowa 28 department of public health, the governor’s Iowa developmental 29 disabilities council, and other agencies to establish a 30 referral system for the provision of substitute decision-making 31 services. 32 Sec. 31. Section 241.3, subsection 2, Code 2011, is amended 33 to read as follows: 34 2. The department shall consult and cooperate with the 35 -12- LSB 5517HV (2) 84 lh/rj 12/ 129
H.F. 2328 department of workforce development, the United States 1 commissioner of social security administration, the division 2 of office on the status of women of the department of human 3 rights, the department of education, and other persons in the 4 executive branch of the state government as the department 5 considers appropriate to facilitate the coordination of 6 multipurpose service programs established under this chapter 7 with existing programs of a similar nature. 8 Sec. 32. Section 249A.4B, subsection 2, paragraph a, 9 subparagraph (39), Code Supplement 2011, is amended to read as 10 follows: 11 (39) The governor’s Iowa developmental disabilities 12 council. 13 Sec. 33. Section 256.32, subsection 2, paragraph c, Code 14 Supplement 2011, is amended to read as follows: 15 c. The current postsecondary agriculture students student 16 organization of Iowa president. 17 Sec. 34. Section 256.35A, subsection 2, paragraph b, Code 18 2011, is amended to read as follows: 19 b. In addition, representatives of the department of 20 education, the division of vocational rehabilitation of the 21 department of education, the department of public health, the 22 department of human services, the governor’s Iowa developmental 23 disabilities council, the division of insurance of the 24 department of commerce, and the state board of regents shall 25 serve as ex officio members of the advisory council. Ex 26 officio members shall work together in a collaborative manner 27 to serve as a resource to the advisory council. The council 28 may also form workgroups as necessary to address specific 29 issues within the technical purview of individual members. 30 Sec. 35. Section 256C.5, subsection 2, paragraph a, Code 31 Supplement 2011, is amended to read as follows: 32 a. For the initial school year for which a school district 33 approved to participate in the preschool program receives that 34 approval and implements the preschool program, the funding for 35 -13- LSB 5517HV (2) 84 lh/rj 13/ 129
H.F. 2328 the preschool foundation aid payable to that school district 1 shall be paid from the appropriation made for that school year 2 in section 256C.6 , Code 2011, or in another appropriation 3 made for purposes of this chapter . For that school year, the 4 preschool foundation aid payable to the school district is 5 the product of the regular program state cost per pupil for 6 the school year multiplied by sixty percent of the school 7 district’s eligible student enrollment on the date in the 8 school year determined by rule. 9 Sec. 36. Section 260H.2, Code Supplement 2011, is amended 10 to read as follows: 11 260H.2 Pathways for academic career and employment program. 12 A pathways for academic career and employment program is 13 established to provide funding to community colleges for the 14 development of projects in coordination with the economic 15 development authority, the department of education, Iowa the 16 department of workforce development, regional advisory boards 17 established pursuant to section 84A.4 , and community partners 18 to implement a simplified, streamlined, and comprehensive 19 process, along with customized support services, to enable 20 eligible participants to acquire effective academic and 21 employment training to secure gainful, quality, in-state 22 employment. 23 Sec. 37. Section 260H.8, Code Supplement 2011, is amended 24 to read as follows: 25 260H.8 Rules. 26 The department of education, in consultation with the 27 community colleges, the economic development authority, and 28 Iowa the department of workforce development, shall adopt 29 rules pursuant to chapter 17A and this chapter to implement 30 the provisions of this chapter . Regional advisory boards 31 established pursuant to section 84A.4 shall be consulted in the 32 development and implementation of rules to be adopted pursuant 33 to this chapter . 34 Sec. 38. Section 273.2, subsection 3, Code Supplement 2011, 35 -14- LSB 5517HV (2) 84 lh/rj 14/ 129
H.F. 2328 is amended to read as follows: 1 3. The area education agency board shall furnish 2 educational services and programs as provided in sections 3 273.1 , this section, sections 273.3 to 273.9 , and chapter 256B 4 to the pupils enrolled in public or nonpublic schools located 5 within its boundaries which are on the list of accredited 6 schools pursuant to section 256.11 . The programs and services 7 provided shall be at least commensurate with programs and 8 services existing on July 1, 1974. The programs and services 9 provided to pupils enrolled in nonpublic schools shall be 10 comparable to programs and services provided to pupils enrolled 11 in public schools within constitutional guidelines. 12 Sec. 39. Section 273.3, subsections 2 and 12, Code 13 Supplement 2011, are amended to read as follows: 14 2. Be authorized to receive and expend money for providing 15 programs and services as provided in sections 273.1 , 273.2, 16 this section, sections 273.4 to 273.9 , and chapters 256B 17 and 257 . All costs incurred in providing the programs and 18 services, including administrative costs, shall be paid from 19 funds received pursuant to sections 273.1 to 273.9 and chapters 20 256B and 257 . 21 12. Prepare an annual budget estimating income and 22 expenditures for programs and services as provided in sections 23 273.1 , 273.2, this section, sections 273.4 to 273.9 , and 24 chapter 256B within the limits of funds provided under section 25 256B.9 and chapter 257 . The board shall give notice of a 26 public hearing on the proposed budget by publication in an 27 official county newspaper in each county in the territory 28 of the area education agency in which the principal place 29 of business of a school district that is a part of the area 30 education agency is located. The notice shall specify the 31 date, which shall be not later than March 1 of each year, the 32 time, and the location of the public hearing. The proposed 33 budget as approved by the board shall then be submitted to the 34 state board of education, on forms provided by the department, 35 -15- LSB 5517HV (2) 84 lh/rj 15/ 129
H.F. 2328 no later than March 15 preceding the next fiscal year for 1 approval. The state board shall review the proposed budget of 2 each area education agency and shall before April 1, either 3 grant approval or return the budget without approval with 4 comments of the state board included. An unapproved budget 5 shall be resubmitted to the state board for final approval not 6 later than April 15. For the fiscal year beginning July 1, 7 1999, and each succeeding fiscal year, the state board shall 8 give final approval only to budgets submitted by area education 9 agencies accredited by the state board or that have been given 10 conditional accreditation by the state board. 11 Sec. 40. Section 280.13C, subsection 3, Code Supplement 12 2011, is amended to read as follows: 13 3. a. A student who has been removed from participation 14 shall not recommence such participation until the student has 15 been evaluated by a licensed health care provider trained in 16 the evaluation and management of concussions and other brain 17 injuries and the student has received written clearance to 18 return to participation from the health care provider. 19 b. 4. For the purposes of this section , a “licensed health 20 care provider” : 21 a. “Extracurricular interscholastic activity” means any 22 extracurricular interscholastic activity, contest, or practice, 23 including sports, dance, or cheerleading. 24 b. “Licensed health care provider” means a physician, 25 physician assistant, chiropractor, advanced registered nurse 26 practitioner, nurse, physical therapist, or athletic trainer 27 licensed by a board designated under section 147.13. 28 c. For the purposes of this section , an “extracurricular 29 interscholastic activity” means any extracurricular 30 interscholastic activity, contest, or practice, including 31 sports, dance, or cheerleading. 32 Sec. 41. Section 313.3, subsection 1, paragraph d, Code 33 2011, is amended to read as follows: 34 d. All revenue accrued or accruing to the state of Iowa 35 -16- LSB 5517HV (2) 84 lh/rj 16/ 129
H.F. 2328 on or after January 26, 1949, from the sale of public lands 1 within the state, under Acts of Congress approved March 3, 2 1845, supplemental to the Act for the admission Admission of 3 the states States of Iowa and Florida into the Union, chapters 4 75 and 76 (Fifth Statutes, pages 788 and 790) , 5 Stat. 788, 5 790 , shall be placed in the primary road fund. 6 Sec. 42. Section 331.512, subsection 1, paragraph e, Code 7 2011, is amended to read as follows: 8 e. The levy for taxes for the county brucellosis and 9 tuberculosis eradication fund as provided in section 165.18 . 10 Sec. 43. Section 331.559, subsection 2, Code 2011, is 11 amended to read as follows: 12 2. Collect the tax levied for the county brucellosis and 13 tuberculosis eradication fund as provided in section 165.18 . 14 Sec. 44. Section 356.36, unnumbered paragraph 1, Code 2011, 15 is amended to read as follows: 16 The Iowa department of corrections, in consultation with 17 the Iowa state sheriff’s association, the Iowa association 18 of chiefs of police and peace officers association , the 19 Iowa league of cities, and the Iowa board of supervisors 20 association, shall draw up minimum standards for the regulation 21 of jails, alternative jails, facilities established pursuant to 22 chapter 356A and municipal holding facilities. When completed 23 by the department, the standards shall be adopted as rules 24 pursuant to chapter 17A . 25 Sec. 45. Section 356.37, Code 2011, is amended to read as 26 follows: 27 356.37 Confinement and detention report —— design proposals. 28 The division of criminal and juvenile justice planning 29 of the department of human rights, in consultation with 30 the department of corrections, the Iowa county attorneys 31 association, the Iowa state sheriff’s association, the Iowa 32 association of chiefs of police and peace officers association , 33 a statewide organization representing rural property taxpayers, 34 the Iowa league of cities, and the Iowa board of supervisors 35 -17- LSB 5517HV (2) 84 lh/rj 17/ 129
H.F. 2328 association, shall prepare a report analyzing the confinement 1 and detention needs of jails and facilities established 2 pursuant to this chapter and chapter 356A . The report for each 3 type of jail or facility shall include but is not limited to 4 an inventory of prisoner space, daily prisoner counts, options 5 for detention of prisoners with mental illness or substance 6 abuse service needs, and the compliance status under section 7 356.36 for each jail or facility. The report shall contain an 8 inventory of recent jail or facility construction projects in 9 which voters have approved the issuance of general obligation 10 bonds, essential county purpose bonds, revenue bonds, or 11 bonds issued pursuant to chapter 423B . The report shall be 12 revised periodically as directed by the administrator of the 13 division of criminal and juvenile justice planning. The first 14 submission of the report shall include recommendations on 15 offender data needed to estimate jail space needs in the next 16 two, three, and five years, on a county, geographic region, and 17 statewide basis, which may be based upon information submitted 18 pursuant to section 356.49 . 19 Sec. 46. Section 403.21, subsection 3, Code Supplement 20 2011, is amended to read as follows: 21 3. The community college shall send a copy of the final 22 agreement prepared pursuant to section 260F.3 to the economic 23 development authority. For each year in which incremental 24 property taxes are used to retire debt service on a jobs 25 training advance issued for a project creating new jobs, the 26 community college shall provide to the economic development 27 authority a report of the incremental property taxes and new 28 jobs credits from withholding generated for that year, a 29 specific description of the training conducted, the number of 30 employees provided program services under the project, and the 31 median wage of employees in the new jobs in the project, and 32 the administrative costs directly attributable to the project. 33 Sec. 47. Section 410.1, unnumbered paragraph 5, Code 2011, 34 is amended to read as follows: 35 -18- LSB 5517HV (2) 84 lh/rj 18/ 129
H.F. 2328 The provisions of this chapter shall not apply to police 1 officers and fire fighters who entered employment after March 2 2, 1934, except that any police officer or fire fighter who 3 had been making payments of membership fees and assessments as 4 provided in section 410.5 prior to July 1, 1971, shall on July 5 1, 1973, be fully restored and entitled to all pension rights 6 and benefits, vested or not vested, under this chapter if the 7 city has not returned to such police officer or fire fighter 8 the membership fees and assessments paid by the police officer 9 or fire fighter prior to July 1, 1971, and if such police 10 officer or fire fighter pays to the city within six months 11 after July 1, 1973, the amount of the fees and assessments 12 that the police officer or fire fighter would have paid to the 13 police officers’ or fire fighters’ pension fund from July 1, 14 1971, to July 1, 1973, if 1971 Iowa Acts of the 1971 Session, 15 Sixty-fourth General Assembly , ch. 108, had not been adopted. 16 If the membership fees and assessments paid by such police 17 officer or fire fighter prior to July 1, 1971, have been 18 returned to the police officer or fire fighter, all pension 19 rights and benefits, vested or not vested, under this chapter 20 shall be fully restored to the police officer or fire fighter 21 on July 1, 1973, if, within six months after July 1, 1973, such 22 police officer or fire fighter repays the fees and assessments 23 so returned and pays the amount of the fees and assessments to 24 the city that the police officer or fire fighter would have 25 paid to the appropriate pension fund from July 1, 1971, to 26 July 1, 1973, if 1971 Iowa Acts of the Sixty-fourth General 27 Assembly, 1971 Session , ch. 108 had not been adopted. 28 Sec. 48. Section 411.36, subsection 1, paragraph a, 29 subparagraph (1), Code 2011, is amended to read as follows: 30 (1) Two fire fighters from different participating cities, 31 one of whom is an active member of the retirement system and 32 one of whom is a retired member. The fire fighters shall be 33 appointed by the governing body of the Iowa association of 34 professional fire fighters. 35 -19- LSB 5517HV (2) 84 lh/rj 19/ 129
H.F. 2328 Sec. 49. Section 437A.3, subsection 14, Code Supplement 1 2011, is amended to read as follows: 2 14. a. “Local amount” means the first forty-four million 3 four hundred forty-four thousand four hundred forty-five 4 dollars of the acquisition cost of any major addition which is 5 an electric power generating plant and the total acquisition 6 cost of any other major addition. 7 b. “Local amount” for the purposes of determining the local 8 taxable value for a new electric power generating plant shall 9 annually be determined to be equal up to the first forty-four 10 million four hundred forty-four thousand four hundred 11 forty-five dollars of the taxable value of the new electric 12 power generating plant. “Local amount” for the purposes 13 of determining the local assessed value for a new electric 14 power generating plant shall be annually determined to be the 15 percentage share of the taxable value of the new electric power 16 generating plant allocated as the local amount multiplied by 17 the total assessed value of the new electric power generating 18 plant. 19 Sec. 50. Section 437A.3, subsection 18, paragraph b, Code 20 Supplement 2011, is amended to read as follows: 21 b. (1) Any acquisition on or after January 1, 2004, by 22 a taxpayer, by transfer of ownership, self-construction, 23 or capital lease of any interest in electric transmission 24 operating property within a local taxing district where the 25 acquisition cost of all interests acquired exceeds one million 26 dollars. 27 (2) For purposes of this chapter , the acquisition cost of 28 an asset acquired by capital lease is its capitalized value 29 determined under generally accepted accounting principles. 30 Sec. 51. Section 451.1, subsection 3, Code 2011, is amended 31 to read as follows: 32 3. “Federal Estate Tax Act” and all such similar terms, 33 means Title Tit. III of chapter 27 of the Acts of the 34 Sixty-ninth Congress of the United States, first session, 35 -20- LSB 5517HV (2) 84 lh/rj 20/ 129
H.F. 2328 appearing in 44 Statutes at Large Stat. , chapter ch. 27, as of 1 January 1, 2000, as amended. 2 Sec. 52. Section 452A.5, Code 2011, is amended to read as 3 follows: 4 452A.5 Distribution allowance. 5 1. A supplier shall retain a distribution allowance of not 6 more than one and six-tenths percent of all gallons of motor 7 fuel and a distribution allowance of not more than seven-tenths 8 percent of all gallons of undyed special fuel removed from 9 the terminal during the reporting period for purposes of tax 10 computation under section 452A.8 . 11 2. The distribution allowance shall be prorated between the 12 supplier and the distributor or dealer as follows: 13 1. a. Motor fuel: four-tenths percent retained by the 14 supplier, one and two-tenths percent to the distributor. 15 2. b. Undyed special fuel: thirty-five hundredths percent 16 retained by the supplier, thirty-five hundredths percent to the 17 distributor or dealer purchasing directly from a supplier. 18 3. Gallons exported outside of the state shall not be 19 included in the calculation of the distribution. 20 Sec. 53. Section 452A.8, subsection 2, paragraph e, Code 21 2011, is amended to read as follows: 22 e. (1) The tax for compressed natural gas and liquefied 23 petroleum gas delivered by a licensed compressed natural gas 24 or liquefied petroleum gas dealer for use in this state shall 25 attach at the time of the delivery and shall be collected by 26 the dealer from the consumer and paid to the department as 27 provided in this chapter . The tax, with respect to compressed 28 natural gas and liquefied petroleum gas acquired by a consumer 29 in any manner other than by delivery by a licensed compressed 30 natural gas or liquefied petroleum gas dealer into a fuel 31 supply tank of a motor vehicle, attaches at the time of the use 32 of the fuel and shall be paid over to the department by the 33 consumer as provided in this chapter . 34 (2) The department shall adopt rules governing the 35 -21- LSB 5517HV (2) 84 lh/rj 21/ 129
H.F. 2328 dispensing of compressed natural gas and liquefied petroleum 1 gas by licensed dealers and licensed users. The director may 2 require by rule that reports and returns be filed by electronic 3 transmission. For purposes of this paragraph “e” , “dealer” 4 and “user” mean a licensed compressed natural gas or liquefied 5 petroleum gas dealer or user and “fuel” means compressed natural 6 gas or liquefied petroleum gas. The department shall require 7 that all pumps located at dealer locations and user locations 8 through which liquefied petroleum gas can be dispensed shall 9 be metered, inspected, tested for accuracy, and sealed and 10 licensed by the state department of agriculture and land 11 stewardship, and that fuel delivered into the fuel supply 12 tank of any motor vehicle shall be dispensed only through 13 tested metered pumps and may be sold without temperature 14 correction or corrected to a temperature of sixty degrees. If 15 the metered gallonage is to be temperature-corrected, only a 16 temperature-compensated meter shall be used. Natural gas used 17 as fuel shall be delivered into compressing equipment through 18 sealed meters certified for accuracy by the department of 19 agriculture and land stewardship. 20 (3) (a) All gallonage which is not for highway use, 21 dispensed through metered pumps as licensed under this section 22 on which fuel tax is not collected, must be substantiated by 23 exemption certificates as provided by the department or by 24 valid exemption certificates provided by the dealers, signed by 25 the purchaser, and retained by the dealer. A “valid exemption 26 certificate provided by a dealer” is an exemption certificate 27 which is in the form prescribed by the director to assist a 28 dealer to properly account for fuel dispensed for which tax is 29 not collected and which is complete and correct according to 30 the requirements of the director. 31 (b) For the privilege of purchasing liquefied petroleum 32 gas, dispensed through licensed metered pumps, on a basis 33 exempt from the tax, the purchaser shall sign exemption 34 certificates for the gallonage claimed which is not for highway 35 -22- LSB 5517HV (2) 84 lh/rj 22/ 129
H.F. 2328 use. 1 (c) The department shall disallow all sales of gallonage 2 which is not for highway use unless proof is established by the 3 certificate. Exemption certificates shall be retained by the 4 dealer for a period of three years. 5 (1) (4) (a) For the purpose of determining the amount 6 of liability for fuel tax, each dealer and each user shall 7 file with the department not later than the last day of the 8 month following the month in which this division becomes 9 effective and not later than the last day of each calendar 10 month thereafter a monthly tax return certified under penalties 11 for false certification. The return shall show, with reference 12 to each location at which fuel is delivered or placed by the 13 dealer or user into a fuel supply tank of any motor vehicle 14 during the next preceding calendar month, information as 15 required by the department. 16 (2) (b) The amount of tax due shall be computed by 17 multiplying the appropriate tax rate per gallon by the number 18 of gallons of fuel delivered or placed by the dealer or user 19 into supply tanks of motor vehicles. 20 (3) (c) The return shall be accompanied by remittance in 21 the amount of the tax due for the month in which the fuel was 22 placed into the supply tanks of motor vehicles. 23 Sec. 54. Section 453A.13, subsection 4, paragraph a, 24 unnumbered paragraph 1, Code Supplement 2011, is amended to 25 read as follows: 26 An unrevoked permit for which the holder has paid the full 27 annual fee may be surrendered during the first nine months of 28 said year to the officer issuing it, and the department, or the 29 city or county granting the permit shall make refunds to the 30 said holder as follows: 31 Sec. 55. Section 453A.13, subsection 4, paragraphs b and c, 32 Code Supplement 2011, are amended to read as follows: 33 b. An unrevoked permit for which the holder has paid 34 three-fourths of a full annual fee may be so surrendered during 35 -23- LSB 5517HV (2) 84 lh/rj 23/ 129
H.F. 2328 the first six months of the period covered by said payment and 1 the said department, city , or county shall make refunds to the 2 holder as follows: 3 (1) A sum equal to one-half of an annual fee if the 4 surrender is made during October, November , or December. 5 (2) A sum equal to one-fourth of an annual fee if the 6 surrender is made during January, February , or March. 7 c. An unrevoked permit for which the holder has paid 8 one-half of a full annual fee may be surrendered during the 9 first three months of the period covered by that payment, and 10 the department, city , or county , shall refund to the holder a 11 sum equal to one-fourth of an annual fee. 12 Sec. 56. Section 455B.171, subsection 32, Code Supplement 13 2011, is amended to read as follows: 14 32. “Sewage sludge” means any solid, semisolid, or liquid 15 residue removed during the treatment of municipal waste water 16 or domestic sewage. “Sewage sludge” includes but is not limited 17 to solids removed during primary, secondary, or advanced waste 18 water treatment, scum septage, portable toilet pumpings, type 19 III marine device pumpings as defined in 33 C.F.R. part ch. 1, 20 subch. O, pt. 159, and sewage sludge products. “Sewage sludge” 21 does not include grit, screenings, or ash generated during the 22 incineration of sewage sludge. 23 Sec. 57. Section 455B.261, subsection 7, Code 2011, is 24 amended to read as follows: 25 7. “Established average minimum flow” means the average 26 minimum flow for a given watercourse at a given point 27 determined and established by the commission. 28 a. The “average minimum flow” for a given watercourse shall 29 be determined by the following factors: 30 a. (1) Average of minimum daily flows occurring during 31 the preceding years chosen by the commission as more nearly 32 representative of changing conditions and needs of a given 33 drainage area at a particular time. 34 b. (2) Minimum daily flows shown by experience to be the 35 -24- LSB 5517HV (2) 84 lh/rj 24/ 129
H.F. 2328 limit at which further withdrawals would be harmful to the 1 public interest in any particular drainage area. 2 c. (3) The minimum daily flows shown by established 3 discharge records and experiences to be definitely harmful to 4 the public interest. 5 b. The determination shall be based upon available data, 6 supplemented, when available data are incomplete, with whatever 7 evidence is available. 8 Sec. 58. Section 455B.423, subsection 2, paragraph a, 9 subparagraph (6), Code Supplement 2011, is amended to read as 10 follows: 11 (6) Through agreements or contracts with other state 12 agencies, to work with private industry to develop alternatives 13 to land disposal of hazardous waste or hazardous substances 14 including but not limited to resource recovery, recycling, 15 neutralization, and reduction. 16 Sec. 59. Section 455B.471, subsection 11, Code Supplement 17 2011, is amended to read as follows: 18 11. a. “Underground storage tank” means one or a 19 combination of tanks, including underground pipes connected 20 to the tanks which are used to contain an accumulation of 21 regulated substances and the volume of which, including the 22 volume of the underground pipes, is ten percent or more beneath 23 the surface of the ground. 24 b. (1) “Underground storage tank” does not include: 25 (1) (a) Farm or residential tanks of one thousand one 26 hundred gallons or less capacity used for storing motor fuel 27 for noncommercial purposes. 28 (2) (b) Tanks used for storing heating oil for consumptive 29 use on the premises where stored. 30 (3) (c) Residential septic tanks. 31 (4) (d) Pipeline facilities regulated under the Natural 32 Gas Pipeline Safety Act of 1968, as amended to January 1, 1985, 33 codified at 49 U.S.C. § 1671 et seq., the Hazardous Liquid 34 Pipeline Safety Act of 1979, as amended to January 1, 1985, 35 -25- LSB 5517HV (2) 84 lh/rj 25/ 129
H.F. 2328 codified at 49 U.S.C. § 2001 et seq., or an intrastate pipeline 1 facility regulated under chapter 479 . 2 (5) (e) A surface impoundment, pit, pond, or lagoon. 3 (6) (f) A storm water or wastewater collection system. 4 (7) (g) A flow-through process tank. 5 (8) (h) A liquid trap or associated gathering lines 6 directly related to oil or gas production and gathering 7 operations. 8 (9) (i) A storage tank situated in an underground area 9 including but not limited to a basement, cellar, mineworking, 10 drift, shaft, or tunnel if the storage tank is situated upon or 11 above the surface of the floor. 12 b. (2) “Underground storage tank” does not include 13 pipes connected to a tank described in paragraph “a” “b” , 14 subparagraphs subparagraph (1) through (9) . 15 Sec. 60. Section 455B.474, subsection 1, paragraph a, 16 subparagraph (6), subparagraph division (g), Code Supplement 17 2011, is amended to read as follows: 18 (g) An owner or operator may elect to proceed with 19 additional corrective action on the site. However, any action 20 taken in addition to that required pursuant to this paragraph 21 “a” , subparagraph (6), shall be solely at the expense of the 22 owner or operator and shall not be considered corrective action 23 for purposes of section 455G.9 , unless otherwise previously 24 agreed to by the board and the owner or operator pursuant to 25 section 455G.9, subsection 7 . Corrective action taken by an 26 owner or operator due to the department’s failure to meet the 27 time requirements provided in subparagraph division (e) shall 28 be considered corrective action for purposes of section 455G.9 . 29 Sec. 61. Section 455B.474, subsection 1, paragraph a, 30 subparagraph (8), subparagraph division (c), Code Supplement 31 2011, is amended to read as follows: 32 (c) A certificate shall be recorded with the county 33 recorder. The owner or operator of a site who has been issued 34 a certificate under this paragraph “a” , subparagraph (8), or 35 -26- LSB 5517HV (2) 84 lh/rj 26/ 129
H.F. 2328 a subsequent purchaser of the site shall not be required to 1 perform further corrective action because action standards are 2 changed at a later date. A certificate shall not prevent the 3 department from ordering corrective action of a new release. 4 Sec. 62. Section 455B.474, subsection 2, paragraph a, 5 subparagraph (2), Code Supplement 2011, is amended to read as 6 follows: 7 (2) A person who establishes financial responsibility 8 by self-insurance shall not require or shall not enforce an 9 indemnification agreement with an operator or owner of the tank 10 covered by the self-insurance obligation, unless the owner 11 or operator has committed a substantial breach of a contract 12 between the self-insurer and the owner or operator, and that 13 substantial breach relates directly to the operation of the 14 tank in an environmentally sound manner. This paragraph 15 subparagraph applies to all contracts between a self-insurer 16 and an owner or operator entered into on or after May 5, 1989. 17 Sec. 63. Section 456A.33B, subsection 2, paragraph c, 18 subparagraph (4), unnumbered paragraph 1, Code Supplement 2011, 19 is amended to read as follows: 20 Delivery of phosphorous phosphorus and sediment from 21 the watershed will be controlled and in place before lake 22 restoration begins. Loads of phosphorous phosphorus and 23 sediment, in conjunction with in-lake management, will meet or 24 exceed the following water quality targets: 25 Sec. 64. Section 462A.52, subsection 3, Code 2011, is 26 amended to read as follows: 27 3. The commission shall submit a written report to the 28 general assembly by December 31, 2007, and by December 31 of 29 each year thereafter through December 31, 2013, summarizing the 30 activities of the department in administering and enforcing 31 programs to control aquatic invasive species and administering 32 and enforcing navigation laws and water safety upon the inland 33 waters of the state. The report shall include information 34 concerning the amount of revenues collected pursuant to this 35 -27- LSB 5517HV (2) 84 lh/rj 27/ 129
H.F. 2328 section as a result of fee increases pursuant to 2005 Iowa 1 Acts, ch. 137, and how the revenues were expended. The report 2 shall also include information concerning the amount and source 3 of all other funds expended by the commission during the year 4 for the purposes of administering and enforcing programs 5 to control aquatic invasive species and administering and 6 enforcing navigation laws and water safety upon the inland 7 waters of the state and how the funds were expended. 8 Sec. 65. Section 466B.3, subsection 4, paragraph k, 9 unnumbered paragraph 1, Code Supplement 2011, is amended to 10 read as follows: 11 The secretary of agriculture , who shall be the chairperson, 12 or the secretary’s designee. As the chairperson, and in 13 order to further the coordination efforts of the council, the 14 secretary may invite representatives from any other public 15 agency, private organization, business, citizen group, or 16 nonprofit entity to give public input at council meetings, 17 provided the entity has an interest in the coordinated 18 management of land resources, soil conservation, flood 19 mitigation, or water quality. The secretary shall also invite 20 and solicit advice from the following: 21 Sec. 66. Section 468.174, Code 2011, is amended to read as 22 follows: 23 468.174 Membership in the national drainage association. 24 1. Any drainage district may join and become a member of 25 the national drainage association. A drainage district may 26 pay a membership fee and annual dues upon the approval of the 27 drainage board of such district, but not in excess of the 28 following: 29 a. One hundred dollars for drainage districts having 30 indebtedness in excess of one million dollars. 31 b. Fifty dollars for drainage districts having an 32 indebtedness of five hundred thousand dollars and less than one 33 million dollars. 34 c. Twenty-five dollars for drainage districts having an 35 -28- LSB 5517HV (2) 84 lh/rj 28/ 129
H.F. 2328 indebtedness of two hundred fifty thousand dollars and less 1 than five hundred thousand dollars. 2 d. Ten dollars for drainage districts having an indebtedness 3 less than two hundred fifty thousand dollars. 4 2. The annual dues for any district shall not exceed 5 one-twentieth of one percent of the outstanding indebtedness of 6 the district. 7 Sec. 67. Section 476.1, Code 2011, is amended to read as 8 follows: 9 476.1 Applicability of authority. 10 1. The utilities board within the utilities division of the 11 department of commerce shall regulate the rates and services of 12 public utilities to the extent and in the manner hereinafter 13 provided. 14 2. As used in this chapter , “board” or “utilities board” 15 means the utilities board within the utilities division of the 16 department of commerce. 17 3. As used in this chapter , “public utility” shall include 18 any person, partnership, business association, or corporation, 19 domestic or foreign, owning or operating any facilities for: 20 1. a. Furnishing gas by piped distribution system or 21 electricity to the public for compensation. 22 2. b. Furnishing communications services to the public for 23 compensation. 24 3. c. Furnishing water by piped distribution system to the 25 public for compensation. 26 4. Mutual telephone companies in which at least fifty 27 percent of the users are owners, cooperative telephone 28 corporations or associations, telephone companies having less 29 than fifteen thousand customers and less than fifteen thousand 30 access lines, municipally owned utilities, and unincorporated 31 villages which own their own distribution systems are not 32 subject to the rate regulation provided for in this chapter . 33 5. This chapter does not apply to waterworks having less 34 than two thousand customers, municipally owned waterworks, 35 -29- LSB 5517HV (2) 84 lh/rj 29/ 129
H.F. 2328 joint water utilities established pursuant to chapter 389 , 1 rural water districts incorporated and organized pursuant 2 to chapters 357A and 504 , cooperative water associations 3 incorporated and organized pursuant to chapter 499 , or to 4 a person furnishing electricity to five or fewer customers 5 either by secondary line or from an alternate energy production 6 facility or small hydro facility, from electricity that is 7 produced primarily for the person’s own use. 8 6. A telephone company otherwise exempt from rate 9 regulation and having telephone exchange facilities which cross 10 state lines may elect, in a writing filed with the board, to 11 have its rates regulated by the board. When a written election 12 has been filed with the board, the board shall assume rate 13 regulation jurisdiction over the company. 14 7. The jurisdiction of the board under this chapter 15 shall include efforts designed to promote the use of energy 16 efficiency strategies by rate or service-regulated gas and 17 electric utilities. 18 Sec. 68. Section 476.1D, subsection 1, paragraph c, 19 subparagraph (3), Code Supplement 2011, is amended to read as 20 follows: 21 (3) Effective July 1, 2008, the retail rate jurisdiction 22 of the board shall not be applicable to single line flat-rated 23 residential and business service rates unless the board during 24 the first six calendar months of 2008 extends its retail rate 25 jurisdiction over single line flat-rated residential and 26 business service rates provided by a previously rate-regulated 27 telephone utility. The board may extend its jurisdiction 28 pursuant to this paragraph subparagraph for not more than two 29 years and may do so only after the board finds that such action 30 is necessary for the public interest. The board shall provide 31 the general assembly with a copy of any order to extend its 32 jurisdiction and shall permit any telephone utility subject to 33 the extension to increase single line flat-rated residential 34 and business monthly service rates by an amount up to two 35 -30- LSB 5517HV (2) 84 lh/rj 30/ 129
H.F. 2328 dollars during each twelve-month period of the extension. If a 1 telephone utility fails to impose such a rate increase during 2 any twelve-month period, the utility may not impose the unused 3 increase in any subsequent year. 4 Sec. 69. Section 499.47B, subsection 3, paragraph a, Code 5 Supplement 2011, is amended to read as follows: 6 a. Except as provided in paragraph “b” , the sale, lease, 7 exchange, or other disposition must be approved by a two-thirds 8 vote of the members in which vote a majority of all voting 9 members participate. 10 Sec. 70. Section 499.47B, subsection 3, paragraph b, 11 subparagraph (1), Code Supplement 2011, is amended to read as 12 follows: 13 (1) If the cooperative association’s articles of 14 incorporation require approval by more than two-thirds of 15 its members in which vote a majority of all voting members 16 participate, the sale, lease, exchange, or other disposition 17 must be approved by the greater number as provided in the 18 articles of incorporation. 19 Sec. 71. Section 499.64, subsection 2, paragraph a, Code 20 Supplement 2011, is amended to read as follows: 21 a. Except as provided in paragraph “b” , the proposed plan of 22 merger or consolidation must be approved by a two-thirds vote 23 of the members in which vote a majority of all voting members 24 participate. 25 Sec. 72. Section 499.64, subsection 2, paragraph b, 26 subparagraph (1), Code Supplement 2011, is amended to read as 27 follows: 28 (1) If the cooperative association’s articles of 29 incorporation require approval by more than two-thirds of 30 its members in which vote a majority of all voting members 31 participate, the proposed plan of merger or consolidation must 32 be approved by the greater number as provided in the articles 33 of incorporation. 34 Sec. 73. Section 501.203, subsection 4, Code Supplement 35 -31- LSB 5517HV (2) 84 lh/rj 31/ 129
H.F. 2328 2011, is amended to read as follows: 1 4. If the board does not recommend the amendment or 2 restatement to the members, then the amendment or restatement 3 must be adopted by the members by a vote of two-thirds of the 4 votes cast in which vote a majority of all votes are cast. 5 Sec. 74. Section 501.204, Code Supplement 2011, is amended 6 to read as follows: 7 501.204 Bylaws. 8 The board may adopt or amend the cooperative’s bylaws by a 9 vote of three-fourths of the board. The members may adopt or 10 amend the cooperative’s bylaws by a vote of three-fourths of 11 the votes cast in which vote a majority of all votes are cast. 12 A bylaw provision adopted by the members shall not be amended 13 or repealed by the directors. 14 Sec. 75. Section 501.601, subsection 2, paragraph b, Code 15 Supplement 2011, is amended to read as follows: 16 b. The members must approve the plan of conversion by the a 17 vote of two-thirds of the votes cast in which vote a majority 18 of all votes are cast. 19 Sec. 76. Section 501.603, subsection 2, Code Supplement 20 2011, is amended to read as follows: 21 2. A cooperative may sell, lease, exchange, or otherwise 22 dispose of all, or substantially all, of its property, with 23 or without the goodwill, on the terms and conditions and for 24 the consideration determined by the board, which consideration 25 may include the interests of another cooperative, if the board 26 recommends the proposed transaction to the members, and the 27 members approve it by the a vote of two-thirds of the votes 28 cast in which vote a majority of all votes are cast. The board 29 may condition its submission of the proposed transaction on any 30 basis. 31 Sec. 77. Section 501.614, subsection 2, Code Supplement 32 2011, is amended to read as follows: 33 2. At the meeting, a vote of the members who are entitled 34 to vote in the affairs of the association shall be taken on 35 -32- LSB 5517HV (2) 84 lh/rj 32/ 129
H.F. 2328 the proposed plan of merger or consolidation. The plan of 1 merger or consolidation shall be approved if two-thirds of 2 the members vote affirmatively in which and a majority of all 3 voting members participate in the voting . 4 Sec. 78. Section 509B.1, subsection 6, Code 2011, is amended 5 to read as follows: 6 6. “Medicare” means Title Tit. XVIII of the United States 7 Social Security Act. 8 Sec. 79. Section 513C.3, subsection 14, paragraph a, Code 9 2011, is amended to read as follows: 10 a. Loss of eligibility for medical assistance provided 11 pursuant to chapter 249A or Medicare coverage provided pursuant 12 to Title Tit. XVIII of the federal Social Security Act. 13 Sec. 80. Section 514G.103, subsection 16, paragraph a, 14 subparagraph (2), Code 2011, is amended to read as follows: 15 (2) The contract does not pay or reimburse expenses incurred 16 for services or items to the extent that the expenses are 17 reimbursable under Title Tit. XVIII of the federal Social 18 Security Act, as amended, or would be reimbursable but for 19 the application of a deductible or coinsurance amount. The 20 requirements of this subparagraph do not apply to expenses that 21 are reimbursable under Title Tit. XVIII of the federal Social 22 Security Act only as a secondary payor. A contract does not 23 fail to satisfy the requirements of this subparagraph because 24 payments are made on a per diem or other periodic basis without 25 regard to the expenses incurred during the period to which the 26 payments relate. 27 Sec. 81. Section 524.221, subsection 3, Code Supplement 28 2011, is amended to read as follows: 29 3. The provisions of this section , insofar as applicable, 30 shall apply to the records of a national bank or a federally 31 chartered savings bank or a federally charted chartered savings 32 and loan association. 33 Sec. 82. Section 558.66, subsection 3, paragraph b, 34 subparagraph (2), Code Supplement 2011, is amended to read as 35 -33- LSB 5517HV (2) 84 lh/rj 33/ 129
H.F. 2328 follows: 1 (2) The name of the surviving joint tenant or owner of the 2 remainder interest, as applicable, in whose name the county 3 records should reflect ownership of title. 4 Sec. 83. Section 602.4201, subsection 3, paragraph h, Code 5 2011, as amended by 2011 Iowa Acts, chapter 121, section 60, 6 is amended to read as follows: 7 h. Involuntary commitment or treatment of persons with a 8 substance-related disorders. 9 Sec. 84. Section 634A.1, subsection 1, paragraph a, Code 10 2011, is amended to read as follows: 11 a. Is considered to be a person with a disability under the 12 disability criteria specified in Title Tit. II or Title Tit. 13 XVI of the federal Social Security Act. 14 Sec. 85. Section 714G.8, subsection 4, Code 2011, is amended 15 to read as follows: 16 4. Child support enforcement officials when investigating a 17 child support case pursuant to Title Tit. IV-D or Title Tit. 18 XIX of the federal Social Security Act. 19 Sec. 86. Section 717.5, subsection 3, paragraph a, 20 subparagraph (1), Code Supplement 2011, is amended to read as 21 follows: 22 (1) For livestock neglected under section 717.2 , the 23 amount shall not be more than for expenses incurred by the 24 local authority in maintaining and disposing of the neglected 25 livestock rescued pursuant to section 717.2A , and reasonable 26 attorney fees and expenses related to the investigation of the 27 case. The remaining amount of a bond or other security posted 28 pursuant to subsection 1 shall be used to reimburse the local 29 authority. 30 DIVISION II 31 VOLUME V RENUMBERING 32 Sec. 87. Section 490.202, subsection 2, paragraph d, Code 33 2011, is amended to read as follows: 34 d. (1) A provision eliminating or limiting the liability 35 -34- LSB 5517HV (2) 84 lh/rj 34/ 129
H.F. 2328 of a director to the corporation or its shareholders for 1 money damages for any action taken, or any failure to take 2 any action, as a director, except liability for any of the 3 following: 4 (1) (a) The amount of a financial benefit received by a 5 director to which the director is not entitled. 6 (2) (b) An intentional infliction of harm on the 7 corporation or the shareholders. 8 (3) (c) A violation of section 490.833 . 9 (4) (d) An intentional violation of criminal law. 10 (2) A provision shall not eliminate or limit the liability 11 of a director for an act or omission occurring prior to the 12 date when the provision in the articles of incorporation 13 becomes effective. 14 Sec. 88. Section 490.1110, subsection 2, Code 2011, is 15 amended to read as follows: 16 2. a. This section does not apply in any of the following 17 circumstances: 18 a. (1) The corporation does not have a class of voting 19 stock that is listed on a national securities exchange, 20 authorized for quotation on the national association 21 of securities dealers automated quotations national 22 market system, or held of record by more than two thousand 23 shareholders, unless any of the foregoing results from action 24 taken, directly or indirectly, by an interested shareholder 25 or from a transaction in which a person becomes an interested 26 shareholder. 27 b. (2) The corporation’s original articles of incorporation 28 contain a provision expressly electing not to be governed by 29 this section . 30 c. (3) The corporation, by action of its board of 31 directors, adopts an amendment to its bylaws by no later than 32 September 29, 1997, expressly electing not to be governed by 33 this section , which amendment shall not be further amended by 34 the board of directors. 35 -35- LSB 5517HV (2) 84 lh/rj 35/ 129
H.F. 2328 d. (4) (a) The corporation, by action of its shareholders, 1 adopts an amendment to its articles of incorporation or bylaws 2 expressly electing not to be governed by this section , provided 3 that, in addition to any other vote required by law, such 4 amendment to the articles of incorporation or bylaws must be 5 approved by the affirmative vote of a majority of the shares 6 entitled to vote. An amendment adopted pursuant to this 7 paragraph subparagraph is effective immediately in the case of 8 a corporation that has never had a class of voting stock that 9 falls within any of the three categories set out in paragraph 10 “a” subparagraph (1) and has not elected by a provision in its 11 original articles of incorporation or any amendment to such 12 articles to be governed by this section . In all other cases, 13 an amendment adopted pursuant to this paragraph subparagraph 14 is not effective until twelve months after the adoption of 15 the amendment and does not apply to any business combination 16 between the corporation and any person who became an interested 17 shareholder of the corporation on or prior to such adoption. 18 (b) An amendment to the bylaws adopted pursuant to this 19 paragraph subparagraph shall not be further amended by the 20 board of directors. 21 e. (5) A shareholder becomes an interested shareholder 22 inadvertently and both of the following apply: 23 (1) (a) As soon as practicable the shareholder divests 24 itself of ownership of sufficient shares so that the 25 shareholder ceases to be an interested shareholder. 26 (2) (b) The shareholder would not, at any time within the 27 three-year period immediately prior to a business combination 28 between the corporation and such shareholder, have been an 29 interested shareholder but for the inadvertent acquisition of 30 ownership. 31 f. (1) (6) (a) The business combination is proposed prior 32 to the consummation or abandonment of and subsequent to the 33 earlier of the public announcement or the notice required in 34 this paragraph subparagraph of a proposed transaction which 35 -36- LSB 5517HV (2) 84 lh/rj 36/ 129
H.F. 2328 satisfies all of the following: 1 (a) (i) Constitutes a transaction described in 2 subparagraph (2) subparagraph division (b) . 3 (b) (ii) Is with or by a person who either was not an 4 interested shareholder during the previous three years or who 5 became an interested shareholder with the approval of the 6 corporation’s board of directors or who became an interested 7 shareholder during the time period described in paragraph “g” 8 subparagraph (7) . 9 (c) (iii) Is approved or not opposed by a majority of 10 the members of the board of directors then in office who 11 were directors prior to any person becoming an interested 12 shareholder during the previous three years, or who were 13 recommended for election or elected to succeed such directors 14 by a majority of such directors. 15 (2) (b) A proposed transaction under subparagraph (1) 16 division (a) is limited to the following: 17 (a) (i) A merger of the corporation, other than a merger 18 pursuant to section 490.1105 . 19 (b) (ii) A sale, lease, exchange, mortgage, pledge, 20 transfer, or other disposition, in one or more transactions 21 and whether as part of a dissolution or otherwise, of assets 22 of the corporation or of any direct or indirect majority-owned 23 subsidiary of the corporation, other than to a direct or 24 indirect wholly owned subsidiary of the corporation or to 25 the corporation itself, which has an aggregate market value 26 equal to fifty percent or more of either the aggregate market 27 value of all of the assets of the corporation determined on a 28 consolidated basis, or the aggregate market value of all the 29 outstanding stock of the corporation. 30 (c) (iii) A proposed tender or exchange offer for fifty 31 percent or more of the outstanding voting stock of the 32 corporation. 33 (3) (c) The corporation shall give no less than twenty 34 days’ notice to all interested shareholders prior to 35 -37- LSB 5517HV (2) 84 lh/rj 37/ 129
H.F. 2328 the consummation of any of the transactions described in 1 subparagraph (2) division (b) , subparagraph division (a) or (b) 2 subdivision (i) or (ii) . 3 g. (7) The business combination is with an interested 4 shareholder who becomes an interested shareholder of the 5 corporation at a time when the corporation is not subject 6 to this section pursuant to paragraph “a” , “b” , “c” , or 7 “d” subparagraph (1), (2), (3), or (4) . 8 b. Notwithstanding paragraphs “a” through “d” 9 paragraph “a” , subparagraphs (1) through (4) , a corporation 10 may elect under its original articles of incorporation 11 or any amendment to such articles to be subject to this 12 section . However, such amendment shall not apply to restrict a 13 business combination between the corporation and an interested 14 shareholder of the corporation if the interested shareholder 15 became such prior to the effective date of the amendment. 16 Sec. 89. Section 490.1110, subsection 3, paragraph e, Code 17 2011, is amended to read as follows: 18 e. “Interested shareholder” means any person, other than 19 the corporation and any direct or indirect majority-owned 20 subsidiary of the corporation, that is the owner of ten percent 21 or more of the outstanding voting stock of the corporation, or 22 is an affiliate or associate of the corporation and was the 23 owner of ten percent or more of the outstanding voting stock 24 of the corporation at any time within the three-year period 25 immediately prior to the date on which it is sought to be 26 determined whether such person is an interested shareholder, 27 and the affiliates and associates of such person. “Interested 28 shareholder” does not include a person whose ownership of shares 29 in excess of the ten percent limitation is the result of action 30 taken solely by the corporation, provided that such person 31 is an interested shareholder if, after such action by the 32 corporation, the person acquires additional shares of voting 33 stock of the corporation, other than as a result of further 34 corporate action not caused, directly or indirectly, by such 35 -38- LSB 5517HV (2) 84 lh/rj 38/ 129
H.F. 2328 person. For purposes of determining whether a person is an 1 interested shareholder, the outstanding voting stock of the 2 corporation does not include any other unissued stock of the 3 corporation which may be issuable pursuant to any agreement, 4 arrangement, or understanding, or upon exercise of conversion 5 rights, warrants, or options, or otherwise. 6 For purposes of determining whether a person is an 7 interested shareholder, the outstanding voting stock of the 8 corporation does not include any other unissued stock of the 9 corporation which may be issuable pursuant to any agreement, 10 arrangement, or understanding, or upon exercise of conversion 11 rights, warrants, or options, or otherwise. 12 Sec. 90. Section 491.102, Code 2011, is amended to read as 13 follows: 14 491.102 Procedure for merger. 15 1. Any two or more corporations whether heretofore or 16 hereafter organized may merge into one of such corporations in 17 the following manner : provided in this section. 18 2. The board of directors of each corporation shall, by 19 resolution adopted by a majority vote of the members of each 20 such board, approve a plan of mergers setting forth: 21 1. a. The names of the corporations proposing to merge, and 22 the name of the corporation into which they propose to merge, 23 which is hereinafter designated as the surviving corporation. 24 2. b. The terms and conditions of the proposed merger. 25 3. c. The manner and basis of converting the shares of 26 each merging corporation into shares or other securities or 27 obligations of the surviving corporation. 28 4. d. A statement of any changes in the articles of 29 incorporation of the surviving corporation to be effected by 30 such merger. 31 5. e. Such other provisions with respect to the proposed 32 merger as are deemed necessary or desirable. 33 Sec. 91. Section 491.103, Code 2011, is amended to read as 34 follows: 35 -39- LSB 5517HV (2) 84 lh/rj 39/ 129
H.F. 2328 491.103 Procedure for consolidation. 1 1. Any two or more corporations whether heretofore or 2 hereafter organized may consolidate into a new corporation in 3 the following manner : provided in this section. 4 2. The board of directors of each corporation, shall, by a 5 resolution adopted by a majority vote of the members of each 6 such board, approve a plan of consolidation setting forth: 7 1. a. The names of the corporations proposing to 8 consolidate, and the name of the new corporation into which 9 they propose to consolidate, which is hereinafter designated 10 as the new corporation. 11 2. b. The terms and conditions of the proposed 12 consolidation. 13 3. c. The manner and basis of converting the shares of each 14 corporation into shares, or other securities, or obligations 15 of the new corporation. 16 4. d. With respect to the new corporation, all of 17 the statements required to be set forth in articles of 18 incorporation for corporations organized under this chapter . 19 5. e. Such other provisions with respect to the proposed 20 consolidation as are deemed necessary or desirable. 21 Sec. 92. Section 499.48, Code 2011, is amended to read as 22 follows: 23 499.48 Distribution in liquidation. 24 1. On dissolution or liquidation, the assets of the 25 association shall be used to pay liquidation expenses first, 26 next the association’s obligations other than patronage 27 dividends or patronage dividend certificates which it has 28 issued, and the remainder shall be distributed in the following 29 priority: 30 1. a. To pay to each person the full amount originally 31 paid by that person in cash for stock or other equity interest 32 in the association. 33 2. b. To pay to each person in proportion to the total of 34 each person’s revolving fund, stock, or other equity interest 35 -40- LSB 5517HV (2) 84 lh/rj 40/ 129
H.F. 2328 in the association remaining after the payment under subsection 1 1 paragraph “a” . 2 2. In applying subsections subsection 1 and 2 , paragraphs 3 “a” and “b” , all classes of stock, all revolving funds, and 4 all other equity interests in the association shall be treated 5 equally based on their stated values. However, an association 6 may establish its own method of distributing the assets 7 remaining, after paying liquidation expenses and obligations 8 other than patronage dividends or patronage dividend 9 certificates which it has issued, in articles of incorporation 10 adopted, amended, or restated after July 1, 1986. 11 Sec. 93. Section 499.62, Code 2011, is amended to read as 12 follows: 13 499.62 Merger. 14 1. Any two or more cooperative associations may merge into 15 one cooperative association in the following manner : provided 16 in this section. 17 2. The board of directors of each cooperative association 18 shall, by resolution adopted by a majority vote of all members 19 of each board, approve a plan of merger which shall set forth: 20 1. a. The names of the cooperative associations proposing 21 to merge and the name of the surviving association. 22 2. b. The terms and conditions of the proposed merger. 23 3. c. A statement of any changes in the articles of 24 incorporation of the surviving association. 25 4. d. Other provisions deemed necessary or desirable. 26 Sec. 94. Section 499.63, Code 2011, is amended to read as 27 follows: 28 499.63 Consolidation. 29 1. Any two or more cooperative associations may be 30 consolidated into a new cooperative association in the 31 following manner : provided in this section. 32 2. The board of directors of each cooperative association 33 shall, by resolution adopted by a majority vote of all members 34 of each board, approve a plan of consolidation setting forth: 35 -41- LSB 5517HV (2) 84 lh/rj 41/ 129
H.F. 2328 1. a. The names of the cooperative associations proposing 1 to consolidate and the name of the new association. 2 2. b. The terms and conditions of the proposed 3 consolidation. 4 3. c. With respect to the new association, all of 5 the statements required to be set forth in articles of 6 incorporation for cooperative associations. 7 4. d. Other provisions deemed necessary or desirable. 8 Sec. 95. Section 499.68, unnumbered paragraphs 1 and 2, Code 9 2011, are amended to read as follows: 10 A merger or consolidation shall become effective upon the 11 date that the certificate of merger or the certificate of 12 consolidation is issued by the secretary of state, or the 13 effective date specified in the articles of merger or articles 14 of consolidation, whichever is later. When a merger or 15 consolidation has become effective: 16 When a merger or consolidation has become effective: 17 Sec. 96. Section 499.69, Code 2011, is amended to read as 18 follows: 19 499.69 Foreign and domestic mergers or consolidations. 20 1. One or more foreign cooperative associations and one 21 or more domestic cooperative associations may be merged 22 or consolidated in the following manner, if such merger or 23 consolidation is permitted by the laws of the state under which 24 each foreign cooperative association is organized: 25 1. a. Each domestic cooperative association shall comply 26 with the provisions of this division with respect to the merger 27 or consolidation of domestic cooperative associations, and 28 each foreign cooperative association shall comply with the 29 applicable provisions of the laws of the state under which it 30 is organized. 31 2. b. If the surviving or new association is to be governed 32 by the laws of any state other than this state, it shall comply 33 with the provisions of the laws of this state with respect to 34 the qualifications of foreign cooperative associations if it is 35 -42- LSB 5517HV (2) 84 lh/rj 42/ 129
H.F. 2328 to transact business in this state, and in every case it shall 1 file with the secretary of state of this state: 2 a. (1) An agreement that it may be served with process 3 in this state in any proceeding for the enforcement of any 4 obligation of any domestic cooperative association which is a 5 party to the merger or consolidation, and in any proceeding 6 for the enforcement of the rights of a dissenting shareholder 7 of any such domestic cooperative association, against the 8 surviving or new association. 9 b. (2) An irrevocable appointment of the secretary of state 10 of this state as its agent to accept service of process in any 11 proceeding. 12 c. (3) An agreement that it will promptly pay to the 13 dissenting shareholders of any domestic cooperative association 14 the amount to which they are entitled under the provisions of 15 this division with respect to the rights of dissenters. 16 2. The effect of such merger or consolidation shall be the 17 same as the effect of the merger or consolidation of domestic 18 cooperative associations, if the surviving or new association 19 is to be governed by the laws of this state. If the surviving 20 or new association is to be governed by the laws of any other 21 state, the effect of merger or consolidation shall be the same 22 as in the case of the merger or consolidation of domestic 23 cooperative associations, except as the laws of the other state 24 otherwise provide. 25 Sec. 97. Section 499A.22, subsections 1, 2, and 3, Code 26 2011, are amended to read as follows: 27 1. a. The cooperative has a lien on a member’s interest in 28 the cooperative for all operating charges or other assessments 29 payable by the member pursuant to the member’s proprietary 30 lease from the time the operating charge or other assessment 31 becomes due. If carrying charges and assessments are payable 32 in installments, the full amount of the charge or assessment is 33 a lien from the first time the first installment becomes due. 34 Upon nonpayment of a carrying charge or assessment, the member 35 -43- LSB 5517HV (2) 84 lh/rj 43/ 129
H.F. 2328 may be evicted from the member’s apartment unit in the same 1 manner as provided by law in the case of an unlawful holdover 2 by a tenant and the lien may be foreclosed by judicial sale in 3 like manner as a mortgage on real estate, or may be foreclosed 4 by the power of sale provided in this section . 5 b. A lien under this section is prior to all other liens and 6 encumbrances on a member’s cooperative interest except liens 7 and encumbrances on the cooperative’s real property which the 8 cooperative creates, assumes, or takes subject to, and liens 9 for real estate taxes and other governmental assessments or 10 charges against the cooperative or the member’s cooperative 11 interest. 12 2. The cooperative, upon a member’s nonpayment of carrying 13 charges and assessments and the cooperative’s compliance with 14 this section , may sell the defaulting member’s cooperative 15 interest. Sale may be at a public sale or by private 16 negotiation, and at any time and place, but every aspect of 17 the sale, including the method, advertising, time, place, and 18 terms must be reasonable. The cooperative shall give to the 19 member and any sublessees of the member reasonable written 20 notice of the time and place of a public sale or, if a private 21 sale is intended, of the intention of entering into a contract 22 to sell and of the time after which a private disposition may 23 be made. The same notice shall also be sent to any other 24 person who has a recorded interest in the defaulting member’s 25 cooperative interest which would be extinguished by the sale. 26 The notices required by this paragraph subsection may be sent 27 to any address reasonable under the circumstances. Sale may 28 not be held until five weeks after the sending of the notice. 29 The cooperative may buy at a public sale, and, if the sale is 30 conducted by a fiduciary or other person not related to the 31 cooperative, at a private sale. 32 3. a. The proceeds of a sale under the preceding paragraph 33 subsection shall be applied in the following order: 34 a. (1) The reasonable expenses of sale. 35 -44- LSB 5517HV (2) 84 lh/rj 44/ 129
H.F. 2328 b. (2) The reasonable expenses of securing possession 1 before sale, and the reasonable expenses of holding, 2 maintaining, and preparing the cooperative interest for sale. 3 These expenses include, but are not limited to, the payment of 4 taxes and other governmental charges, premiums on liability 5 insurance, and to the extent provided for by agreement between 6 the cooperative and the member, reasonable attorney fees and 7 other legal expenses incurred by the cooperative. 8 c. (3) Satisfaction of the cooperative’s lien. 9 d. (4) Satisfaction in the order of priority of any 10 subordinate claim of record. 11 e. (5) Remittance of any excess to the member. 12 b. Unless otherwise agreed, the member is liable for any 13 deficiency. 14 Sec. 98. Section 501.618, unnumbered paragraphs 1 and 2, 15 Code 2011, are amended to read as follows: 16 A merger or consolidation shall become effective upon the 17 date that the certificate of merger or the certificate of 18 consolidation is issued by the secretary of state, or the 19 effective date specified in the articles of merger or articles 20 of consolidation, whichever is later. When a merger or 21 consolidation has become effective: 22 When a merger or consolidation has become effective: 23 Sec. 99. Section 501A.715, subsection 2, paragraph a, 24 subparagraph (2), subparagraph division (b), Code 2011, is 25 amended to read as follows: 26 (b) In the case of an act or omission occurring in the 27 official capacity described in subsection 1 , paragraph 28 “a” , subparagraph (3), the person reasonably believed that 29 the conduct was not opposed to the best interests of the 30 cooperative. If the person’s acts or omissions complained of 31 in the proceeding relate to conduct as a director, officer, 32 trustee, employee, or agent of an employee benefit plan, the 33 conduct is not considered to be opposed to the best interests 34 of the cooperative if the person reasonably believed that 35 -45- LSB 5517HV (2) 84 lh/rj 45/ 129
H.F. 2328 the conduct was in the best interests of the participants or 1 beneficiaries of the employee benefit plan. 2 If the person’s acts or omissions complained of in the 3 proceeding relate to conduct as a director, officer, trustee, 4 employee, or agent of an employee benefit plan, the conduct 5 is not considered to be opposed to the best interests of the 6 cooperative if the person reasonably believed that the conduct 7 was in the best interests of the participants or beneficiaries 8 of the employee benefit plan. 9 Sec. 100. Section 502A.3, Code 2011, is amended to read as 10 follows: 11 502A.3 Exempt person transactions. 12 1. The prohibitions in section 502A.2 do not apply to a 13 transaction in which any of the following persons, or any 14 employee, officer, or director of a listed person acting solely 15 in that capacity, is the purchaser or seller: 16 1. a. A person registered with the commodity futures 17 trading commission as a futures commission merchant or as a 18 leverage transaction merchant whose activities require such 19 registration. 20 2. b. A person registered with the securities and exchange 21 commission as a broker-dealer whose activities require such 22 registration. 23 3. c. A person affiliated with, and whose obligations and 24 liabilities under the transaction are guaranteed by, a person 25 referred to in subsection 1 or 2 paragraph “a” or “b” . 26 4. d. A person who is a member of a contract market 27 designated by the commodity futures trading commission, or any 28 CFTC clearinghouse. 29 5. e. A financial institution. 30 6. f. A person registered under the laws of this state 31 as a securities broker-dealer whose activities require such 32 registration. 33 2. This exemption provided by this section does not apply 34 to any transaction or activity which is prohibited by the 35 -46- LSB 5517HV (2) 84 lh/rj 46/ 129
H.F. 2328 Commodity Exchange Act or CFTC rule. 1 Sec. 101. Section 507B.4, Code 2011, is amended to read as 2 follows: 3 507B.4 Unfair methods of competition and unfair or deceptive 4 acts or practices defined. 5 1. For purposes of subsection 3, paragraph “p” , “insurer” 6 means an entity providing a plan of health insurance, health 7 care benefits, or health care services, or an entity subject 8 to the jurisdiction of the commissioner performing utilization 9 review, including an insurance company offering sickness and 10 accident plans, a health maintenance organization, an organized 11 delivery system authorized under 1993 Iowa Acts, ch. 158, and 12 licensed by the department of public health, a nonprofit health 13 service corporation, a plan established pursuant to chapter 14 509A for public employees, or any other entity providing a 15 plan of health insurance, health care benefits, or health care 16 services. However, “insurer” does not include an entity that 17 sells disability income or long-term care insurance. 18 2. For purposes of subsection 3, paragraphs “k” , “l” , and 19 “m” , “personal lines property and casualty insurance” means 20 insurance sold to individuals and families primarily for 21 noncommercial purposes as provided in chapter 522B. 22 3. The following are hereby defined as unfair methods of 23 competition and unfair or deceptive acts or practices in the 24 business of insurance: 25 1. a. Misrepresentations and false advertising of insurance 26 policies. Making, issuing, circulating, or causing to be made, 27 issued or circulated, any estimate, illustration, circular, 28 statement, sales presentation, omission, or comparison which 29 does any of the following: 30 a. (1) Misrepresents the benefits, advantages, conditions, 31 or terms of any insurance policy. 32 b. (2) Misrepresents the dividends or share of the surplus 33 to be received on any insurance policy. 34 c. (3) Makes any false or misleading statements as to the 35 -47- LSB 5517HV (2) 84 lh/rj 47/ 129
H.F. 2328 dividends or share of surplus previously paid on any insurance 1 policy. 2 d. (4) Is misleading or is a misrepresentation as to the 3 financial condition of any person, or as to the legal reserve 4 system upon which any life insurer operates. 5 e. (5) Uses any name or title of any insurance policy or 6 class of insurance policies misrepresenting the true nature 7 thereof. 8 f. (6) Is a misrepresentation for the purpose of inducing 9 or tending to induce the lapse, forfeiture, exchange, 10 conversion, or surrender of any insurance policy. 11 g. (7) Is a misrepresentation for the purpose of effecting 12 a pledge or assignment of or effecting a loan against any 13 insurance policy. 14 h. (8) Misrepresents any insurance policy as being shares 15 of stock. 16 i. (9) Misrepresents any insurance policy to consumers 17 by using the terms “burial insurance”, “funeral insurance”, 18 “burial plan”, or “funeral plan” in its names or titles, unless 19 the policy is made with a funeral provider as beneficiary who 20 specifies and fixes a price under contract with an insurance 21 company. This paragraph subparagraph does not prevent insurers 22 from stating or advertising that insurance benefits may provide 23 cash for funeral or burial expenses. 24 j. (10) Is a misrepresentation, including any intentional 25 misquote of premium rate, for the purpose of inducing or 26 tending to induce the purchase of an insurance policy. 27 2. b. False information and advertising. 28 a. (1) Generally. Making, publishing, disseminating, 29 circulating, or placing before the public, or causing, directly 30 or indirectly, to be made, published, disseminated, circulated, 31 or placed before the public in a newspaper, magazine, or other 32 publication, or in the form of a notice, circular, pamphlet, 33 letter, or poster, or over any radio or television station, or 34 in any other way, an advertisement, announcement, or statement 35 -48- LSB 5517HV (2) 84 lh/rj 48/ 129
H.F. 2328 containing any assertion, representation, or statement with 1 respect to the business of insurance or with respect to any 2 person in the conduct of the person’s insurance business, which 3 is untrue, deceptive, or misleading. 4 b. (2) False statement of assets. In the case of a company 5 transacting the business of fire insurance within the state, 6 stating or representing by advertisement in any newspaper, 7 magazine, or periodical, or by any sign, circular, card, policy 8 of insurance, or renewal certificate thereof or otherwise, that 9 any funds or assets are in its possession and held available 10 for the protection of holders of its policies unless so held, 11 except the policy of insurance or certificate of renewal 12 thereof may state, as a single item, the amount of capital 13 set forth in the charter, or articles of incorporation, or 14 association, or deed of settlement under which it is authorized 15 to transact business. 16 c. (3) Statement of capital and surplus. In the case of a 17 foreign company transacting the business of casualty insurance 18 in the state, or an officer, producer, or representative of 19 such a company, issuing or publishing an advertisement, public 20 announcement, sign, circular, or card that purports to disclose 21 the company’s financial standing and fails to exhibit: the 22 capital actually paid in cash, and the amount of net surplus 23 of assets over all the company’s liabilities actually held 24 and available for the payment of losses by fire and for the 25 protection of holders of fire policies; and the amount of net 26 surplus of assets over all liabilities in the United States 27 actually available for the payment of losses by fire and held 28 in the United States for the protection of holders of fire 29 policies in the United States, including in such liabilities 30 the fund reserved for reinsurance of outstanding risks. The 31 amounts stated for capital and net surplus shall correspond 32 with the latest verified statement made by the company or 33 association to the commissioner of insurance. 34 3. c. Defamation. Making, publishing, disseminating, 35 -49- LSB 5517HV (2) 84 lh/rj 49/ 129
H.F. 2328 or circulating, directly or indirectly, or aiding, abetting 1 or encouraging the making, publishing, disseminating, or 2 circulating of any oral or written statement or any pamphlet, 3 circular, article or literature which is false, or maliciously 4 critical of or derogatory to the financial condition of any 5 person, and which is calculated to injure such person. 6 4. d. Boycott, coercion and intimidation. Entering into 7 any agreement to commit, or by any concerted action committing, 8 any act of boycott, coercion or intimidation resulting in or 9 tending to result in unreasonable restraint of, or monopoly in, 10 the business of insurance. 11 5. e. False statements and entries. 12 a. (1) Knowingly filing with any supervisory or 13 other public official, or knowingly making, publishing, 14 disseminating, circulating or delivering to any person, or 15 placing before the public, or knowingly causing directly or 16 indirectly, to be made, published, disseminated, circulated, 17 delivered to any person, or placed before the public, any false 18 material statement of fact as to the financial condition of a 19 person. 20 b. (2) Knowingly making any false entry of a material fact 21 in any book, report or statement of any person or knowingly 22 omitting to make a true entry of any material fact pertaining 23 to the business of such person in any book, report or statement 24 of such person. 25 6. f. Stock operations and advisory board contracts. 26 Issuing or delivering or permitting agents, officers or 27 employees to issue or deliver, agency company stock or other 28 capital stock, or benefit certificates or shares in any common 29 law corporation, or securities or any special or advisory board 30 contracts or other contracts of any kind promising returns and 31 profits as an inducement to insurance. 32 7. g. Unfair discrimination. 33 a. (1) Making or permitting any unfair discrimination 34 between individuals of the same class and equal expectation of 35 -50- LSB 5517HV (2) 84 lh/rj 50/ 129
H.F. 2328 life in the rates charged for any contract of life insurance or 1 of life annuity or in the dividends or other benefits payable 2 thereon, or in any other of the terms and conditions of such 3 contract. 4 b. (2) Making or permitting any unfair discrimination 5 between insureds of the same class for essentially the same 6 hazard in the amount of premium, policy fees, or rates charged 7 for any policy or contract of insurance other than life or in 8 the benefits payable thereunder, or in any of the terms or 9 conditions of such contract, or in any other manner whatever. 10 c. (3) Making or permitting any discrimination in the sale 11 of insurance solely on the basis of domestic abuse as defined 12 in section 236.2 . 13 8. h. Release or use of genetic information. Failure of a 14 person to comply with section 729.6, subsection 4 . 15 9. i. Rebates. 16 a. (1) Except as otherwise expressly provided by law, 17 knowingly permitting or offering to make or making any 18 contract of life insurance, life annuity or accident and health 19 insurance, or agreement as to such contract other than as 20 plainly expressed in the contract issued thereon, or paying 21 or allowing, or giving or offering to pay, allow, or give, 22 directly or indirectly, as inducement to such insurance, or 23 annuity, any rebate of premiums payable on the contract, or any 24 special favor or advantage in the dividends or other benefits 25 thereon, or any valuable consideration or inducement whatever 26 not specified in the contract; or giving, or selling, or 27 purchasing or offering to give, sell, or purchase as inducement 28 to such insurance or annuity or in connection therewith, any 29 stocks, bonds, or other securities of any insurance company 30 or other corporation, association, or partnership, or any 31 dividends or profits accrued thereon, or any thing of value 32 whatsoever not specified in the contract. 33 b. (2) Nothing in subsection 7 paragraph “g” or paragraph 34 “a” subparagraph (1) of this subsection paragraph “i” shall be 35 -51- LSB 5517HV (2) 84 lh/rj 51/ 129
H.F. 2328 construed as including within the definition of discrimination 1 or rebates any of the following practices: 2 (1) (a) In the case of any contract of life insurance or 3 life annuity, paying bonuses to policyholders or otherwise 4 rebating their premiums in whole or in part out of surplus 5 accumulated from nonparticipating insurance, provided that 6 any such bonuses or rebatement of premiums shall be fair and 7 equitable to policyholders and for the best interests of the 8 company and its policyholders. 9 (2) (b) In the case of life insurance policies issued on 10 the industrial debit plan, making allowance to policyholders 11 who have continuously for a specified period made premium 12 payments directly to an office of the insurer in an amount 13 which fairly represents the saving in collection expenses. 14 (3) (c) Readjustment of the rate of premium for a group 15 insurance policy based on the loss or expense experienced 16 thereunder, at the end of the first or any subsequent policy 17 year of insurance thereunder, which may be made retroactive 18 only for such policy year. 19 c. (3) (a) Paying, allowing, or giving, or offering to 20 pay, allow, or give, directly or indirectly, as an inducement 21 to purchase or acquire insurance other than life insurance, 22 life annuity, or accident and health insurance, or after 23 insurance has been effected, any rebate, discount, abatement, 24 credit, or reduction of the premium named in a policy of 25 insurance, or any special favor or advantage in the dividends 26 or other benefits to accrue on the policy, or any valuable 27 consideration or inducement, not specified in the policy, 28 except to the extent provided for in an applicable filing. 29 An insured named in a policy, or an employee of the insured, 30 shall not knowingly receive or accept, directly or indirectly, 31 any rebate, discount, abatement, credit, or reduction of 32 premium, or any such special favor or advantage or valuable 33 consideration or inducement. 34 (b) This paragraph “c” subparagraph (3) shall not be 35 -52- LSB 5517HV (2) 84 lh/rj 52/ 129
H.F. 2328 construed to prohibit the payment of commissions or other 1 compensation to duly licensed producers, or to prohibit 2 any insurer from allowing or returning to its participating 3 policyholders, members, or subscribers, dividends, savings, or 4 unabsorbed premium deposits. As used in this paragraph “c” 5 subparagraph (3) , “insurance” includes suretyship and “policy” 6 includes bond. 7 10. j. Unfair claim settlement practices. Committing 8 or performing with such frequency as to indicate a general 9 business practice any of the following: 10 a. (1) Misrepresenting pertinent facts or insurance policy 11 provisions relating to coverages of issue. 12 b. (2) Failing to acknowledge and act reasonably promptly 13 upon communications with respect to claims arising under 14 insurance policies. 15 c. (3) Failing to adopt and implement reasonable standards 16 for the prompt investigation of claims arising under insurance 17 policies. 18 d. (4) Refusing to pay claims without conducting a 19 reasonable investigation based upon all available information. 20 e. (5) Failing to affirm or deny coverage of claims within 21 a reasonable time after proof of loss statements have been 22 completed. 23 f. (6) Not attempting in good faith to effectuate prompt, 24 fair, and equitable settlements of claims in which liability 25 has become reasonably clear, or failing to include interest on 26 the payment of claims when required under subsection 16 27 paragraph “p” or section 511.38 . 28 g. (7) Compelling insureds to institute litigation to 29 recover amounts due under an insurance policy by offering 30 substantially less than the amounts ultimately recovered in 31 actions brought by such insureds. 32 h. (8) Attempting to settle a claim for less than the 33 amount to which a reasonable person would have believed 34 the person was entitled by reference to written or printed 35 -53- LSB 5517HV (2) 84 lh/rj 53/ 129
H.F. 2328 advertising material accompanying or made part of an 1 application. 2 i. (9) Attempting to settle claims on the basis of an 3 application which was altered without notice to, or knowledge 4 or consent of the insured. 5 j. (10) Making claims payments to insureds or beneficiaries 6 not accompanied by a statement setting forth the coverage under 7 which payments are being made. 8 k. (11) Making known to insureds or claimants a policy 9 of appealing from arbitration awards in favor of insureds 10 or claimants for the purpose of compelling them to accept 11 settlements or compromises less than the amount awarded in 12 arbitration. 13 l. (12) Delaying the investigation or payment of claims 14 by requiring an insured, claimant, or the physician of either 15 to submit a preliminary claim report and then requiring the 16 subsequent submission of formal proof of loss forms, both of 17 which submissions contain substantially the same information. 18 m. (13) Failing to promptly settle claims, where liability 19 has become reasonably clear, under one portion of the insurance 20 policy coverage in order to influence settlements under other 21 portions of the insurance policy coverage. 22 n. (14) Failing to promptly provide a reasonable 23 explanation of the basis in the insurance policy in relation 24 to the facts or applicable law for denial of a claim or for the 25 offer of a compromise settlement. 26 o. (15) Failing to comply with the procedures for auditing 27 claims submitted by health care providers as set forth by rule 28 of the commissioner. However, this paragraph subparagraph 29 shall have no applicability to liability insurance, workers’ 30 compensation or similar insurance, automobile or homeowners’ 31 medical payment insurance, disability income, or long-term care 32 insurance. 33 11. k. Use of inquiries. Considering either of the 34 following events for purposes of surcharging, declining, 35 -54- LSB 5517HV (2) 84 lh/rj 54/ 129
H.F. 2328 nonrenewing, or canceling personal lines property and casualty 1 insurance coverage or a binder for personal lines property and 2 casualty insurance coverage: 3 a. (1) An applicant’s or insured’s inquiry into the type 4 or level of coverage of a policy, or an inquiry into whether a 5 policy will cover a loss. 6 b. (2) An insured’s inquiry regarding coverage of a policy 7 for a loss if the insured does not file a claim. 8 12. l. History of a property. Declining to insure a 9 property not previously owned by an applicant for personal 10 lines property and casualty insurance, based solely on the loss 11 history of a previous owner of the property, unless the insurer 12 can provide evidence that the previous owner did not repair 13 damage to the property. 14 13. m. Disclosure of use of claims history. Failing 15 to inform an applicant at the time that an application for 16 personal lines property and casualty insurance is made, in 17 writing or in the same medium as the application is made, that 18 the insurer will consider the applicant’s or insured’s claims 19 history in determining whether to decline, cancel, nonrenew, 20 or surcharge such a policy, and that a claim made by an insured 21 will be reported to an insurance support organization. 22 14. n. Misrepresentation in insurance applications. Making 23 false or fraudulent statements or representations on or 24 relative to an application for an insurance policy, for the 25 purpose of obtaining a fee, commission, money, or other benefit 26 from any insurer, agent, broker, or individual. 27 15. o. Omission from insurance application. Failing to 28 designate on an insurance policy application the licensee who 29 has solicited and written the policy. 30 16. p. Payment of interest. Failure of an insurer to pay 31 interest at the rate of ten percent per annum on all health 32 insurance claims that the insurer fails to timely accept and 33 pay pursuant to section 507B.4A, subsection 2 , paragraph “d” . 34 Interest shall accrue commencing on the thirty-first day after 35 -55- LSB 5517HV (2) 84 lh/rj 55/ 129
H.F. 2328 receipt of all properly completed proof of loss forms. 1 For purposes of this subsection , “insurer” means an entity 2 providing a plan of health insurance, health care benefits, or 3 health care services, or an entity subject to the jurisdiction 4 of the commissioner performing utilization review, including 5 an insurance company offering sickness and accident plans, a 6 health maintenance organization, an organized delivery system 7 authorized under 1993 Iowa Acts, ch. 158, and licensed by 8 the department of public health, a nonprofit health service 9 corporation, a plan established pursuant to chapter 509A 10 for public employees, or any other entity providing a plan 11 of health insurance, health care benefits, or health care 12 services. However, “insurer” does not include an entity that 13 sells disability income or long-term care insurance. 14 17. q. Rating organizations. Any violation of section 15 515F.16 . 16 18. r. Minor traffic violations. Failure of a person to 17 comply with section 516B.3 . 18 19. s. Information. Failing or refusing to furnish any 19 policyholder or applicant, upon reasonable request, information 20 to which that individual is entitled. 21 For purposes of subsections 11, 12, and 13, “personal lines 22 property and casualty insurance” means insurance sold to 23 individuals and families primarily for noncommercial purposes 24 as provided in chapter 522B . 25 Sec. 102. Section 507C.2, subsection 15, Code 2011, is 26 amended to read as follows: 27 15. a. “Insolvency” or “insolvent” means any of the 28 following: 29 a. (1) For an insurer issuing only assessable fire 30 insurance policies, either of the following: 31 (1) (a) The inability to pay any obligation within thirty 32 days after it becomes payable. 33 (2) (b) If an assessment is made, the inability to pay the 34 assessment within thirty days following the date specified in 35 -56- LSB 5517HV (2) 84 lh/rj 56/ 129
H.F. 2328 the first assessment notice issued after the date of loss. 1 b. (2) For any other insurer that it is unable to pay its 2 obligations when they are due, or when its admitted assets do 3 not exceed its liabilities plus the greater of: 4 (1) (a) Any capital and surplus required by law for its 5 organization. 6 (2) (b) The total par or stated value of its authorized and 7 issued capital stock. 8 c. (3) As to an insurer licensed to do business in this 9 state as of July 1, 1984, which does not meet the standard 10 established under paragraph “b” subparagraph (2) , the term 11 “insolvency” or “insolvent” shall mean, for a period not to 12 exceed three years from July 1, 1984, that it is unable to 13 pay its obligations when they are due or that its admitted 14 assets do not exceed its liabilities plus any required capital 15 contribution ordered by the commissioner under provisions of 16 the insurance law. 17 b. For purposes of this subsection “liabilities” includes 18 but is not limited to reserves required by statute or by 19 the division’s rules or specific requirements imposed by the 20 commissioner upon a company at the time of or subsequent to 21 admission. 22 Sec. 103. Section 508.8, Code 2011, is amended to read as 23 follows: 24 508.8 Insurance company officers —— conflicts of interest —— 25 exceptions. 26 1. As used in this section, “employee” includes but is not 27 limited to the officers of a life insurance company. 28 2. A director or officer of a life insurance company shall 29 not receive, in addition to fixed salary or compensation, 30 money or other valuable thing, either directly or indirectly, 31 or through a substantial interest in another corporation or 32 business unit, for negotiating, procuring, recommending or 33 aiding in the purchase or sale of property, or loan, made 34 by the insurer or an affiliate or subsidiary of the insurer; 35 -57- LSB 5517HV (2) 84 lh/rj 57/ 129
H.F. 2328 nor shall a director or officer be pecuniarily interested, 1 either as principal, coprincipal, agent or beneficiary, either 2 directly or indirectly, or through a substantial interest in 3 another corporation or business unit, in the purchase, sale 4 or loan. However, a life insurance company, in connection 5 with the relocation of the place of employment of an employee 6 including relocation upon the initial employment of the 7 employee, may do either of the following: 8 1. a. Make a mortgage loan on real property owned by the 9 employee which is to serve as the employee’s dwelling. 10 2. b. Acquire at not more than fair market value the 11 dwelling which the employee vacates upon relocation. 12 As used in this section , “employee” includes but is not 13 limited to the officers of a life insurance company. 14 Sec. 104. Section 508.36, subsection 3, paragraphs e and f, 15 Code 2011, are amended to read as follows: 16 e. (1) For total and permanent disability benefits in or 17 supplementary to ordinary policies or contracts, the following: 18 (1) (a) For policies or contracts issued on or after 19 January 1, 1966, the tables of period 2 disablement rates and 20 the 1930 to 1950 termination rates of the 1952 disability study 21 of the society of actuaries, with due regard to the type of 22 benefit, or any tables of disablement rates and termination 23 rates adopted after 1980 by the national association of 24 insurance commissioners and approved by rule adopted by the 25 commissioner for use in determining the minimum standard of 26 valuation for such policies. 27 (2) (b) For policies or contracts issued on or after 28 January 1, 1961, and prior to January 1, 1966, either of the 29 tables identified under subparagraph (1) division (a) , or at 30 the option of the company, the class (3) disability table 31 (1926). 32 (3) (c) For policies issued prior to January 1, 1961, the 33 class (3) disability table (1926). 34 (2) A table used under this paragraph “e” shall, for 35 -58- LSB 5517HV (2) 84 lh/rj 58/ 129
H.F. 2328 active lives, be combined with a mortality table permitted for 1 calculating the reserves for life insurance policies. 2 f. (1) For accidental death benefits in or supplementary to 3 policies, the following: 4 (1) (a) For policies issued on or after January 1, 1966, 5 the 1959 accidental death benefits table, or any accidental 6 death benefits table adopted after 1980 by the national 7 association of insurance commissioners and approved by rule 8 adopted by the commissioner for use in determining the minimum 9 standard of valuation for such policies. 10 (2) (b) For policies issued on or after January 1, 1961, 11 and prior to January 1, 1966, either of the tables identified 12 under subparagraph (1) division (a) , or at the option of the 13 company, the intercompany double indemnity mortality table. 14 (3) (c) For policies issued prior to January 1, 1961, the 15 intercompany double indemnity mortality table. 16 (2) A table used under this paragraph “f” shall be combined 17 with a mortality table for calculating the reserves for life 18 insurance policies. 19 Sec. 105. Section 508.37, subsection 5, paragraphs a and c, 20 Code 2011, are amended to read as follows: 21 a. (1) This subsection does not apply to policies issued 22 on or after the operative date of subsection 6 as defined 23 in paragraph “k” of that subsection. Except as provided in 24 paragraph “c” , the adjusted premiums for any policy shall 25 be calculated on an annual basis and shall be such uniform 26 percentage of the respective premiums specified in the policy 27 for each policy year, excluding any extra premiums charged 28 because of impairments or special hazards, that the present 29 value, at the date of issue of the policy, of all such adjusted 30 premiums is equal to the sum of the following: 31 (1) (a) The then present value of the future guaranteed 32 benefits provided for by the policy. 33 (2) (b) Two percent of the amount of the insurance, if the 34 insurance is uniform in amount, or of the equivalent uniform 35 -59- LSB 5517HV (2) 84 lh/rj 59/ 129
H.F. 2328 amount, as defined in paragraph “b” , if the amount of insurance 1 varies with duration of the policy. 2 (3) (c) Forty percent of the adjusted premium for the first 3 policy year. 4 (4) (d) Twenty-five percent of either the adjusted premium 5 for the first policy year or the adjusted premium for a whole 6 life policy of the same uniform or equivalent uniform amount 7 with uniform premiums for the whole of life issued at the same 8 age for the same amount of insurance, whichever is less. 9 (2) However, in applying the percentages specified in 10 subparagraphs (3) and (4) subparagraph divisions (c) and (d) , 11 no adjusted premium shall be deemed to exceed four percent of 12 the amount of insurance or an equivalent uniform amount. The 13 date of issue of a policy for the purpose of this subsection 14 is the date as of which the rated age of the insured is 15 determined. 16 c. The adjusted premiums for a policy providing term 17 insurance benefits by rider or supplemental policy provision 18 shall be equal to (1) the adjusted premiums for an otherwise 19 similar policy issued at the same age without such term 20 insurance benefits, increased during the period for which 21 premiums for such term insurance benefits are payable, by (2) 22 the adjusted premiums for such term insurance, the foregoing 23 items (1) and (2) being calculated separately and as specified 24 in paragraphs “a” and “b” of this subsection except that, for 25 the purposes of subparagraphs (2), (3), and (4) of paragraph 26 “a” , subparagraph (1), subparagraph divisions (b), (c), and 27 (d), the amount of insurance or equivalent uniform amount of 28 insurance used in the calculation of the adjusted premiums 29 referred to in item (2) in this paragraph shall be equal to the 30 excess of the corresponding amount determined for the entire 31 policy over the amount used in the calculation of the adjusted 32 premiums in item (1) in this paragraph. 33 Sec. 106. Section 508.38, subsection 3, paragraphs a and b, 34 Code 2011, are amended to read as follows: 35 -60- LSB 5517HV (2) 84 lh/rj 60/ 129
H.F. 2328 a. (1) The minimum nonforfeiture amount at any time at 1 or prior to the commencement of any annuity payments shall be 2 equal to an accumulation up to such time at rates of interest 3 as indicated in paragraph “b” of the net considerations (as 4 hereinafter defined) paid prior to such time, decreased by the 5 sum of all of the following: 6 (1) (a) Any prior withdrawals from or partial surrenders 7 of the contract accumulated at rates of interest as indicated 8 in paragraph “b” . 9 (2) (b) An annual contract charge of fifty dollars, 10 accumulated at rates of interest as indicated in paragraph “b” . 11 (3) (c) The amount of any indebtedness to the company on 12 the contract, including interest due and accrued. 13 (2) The net considerations for a given contract year 14 used to define the minimum nonforfeiture amount shall be an 15 amount equal to eighty-seven and one-half percent of the gross 16 considerations credited to the contract during the contract 17 year. 18 b. (1) The interest rate used in determining minimum 19 nonforfeiture amounts shall be an annual rate of interest 20 determined as the lesser of three percent per annum and all of 21 the following, which shall be specified in the contract if the 22 interest rate will be reset: 23 (1) (a) The five-year constant maturity treasury rate 24 reported by the federal reserve as of a date, or average over a 25 period, rounded to the nearest one-twentieth of one percent, 26 specified in the contract no longer than fifteen months prior 27 to the contract issue date or redetermination date under 28 subparagraph (4) division (d) . 29 (2) (b) The result of subparagraph (1) division (a) shall 30 be reduced by one hundred twenty-five basis points. 31 (3) (c) The resulting interest guarantee shall not be less 32 than one percent. 33 (4) (d) The interest rate shall apply for an initial 34 period and may be redetermined for additional periods. The 35 -61- LSB 5517HV (2) 84 lh/rj 61/ 129
H.F. 2328 redetermination date, basis, and period, if any, shall be 1 stated in the contract. The basis is the date or average 2 over a specified period that produces the value of the 3 five-year constant maturity treasury rate to be used at each 4 redetermination date. 5 (2) During the period or term that a contract provides 6 substantive participation in an equity indexed benefit, it 7 may increase the reduction described in subparagraph (2) 8 (1), subparagraph division (b) , by up to an additional one 9 hundred basis points to reflect the value of the equity index 10 benefit. The present value at the contract issue date and 11 at each redetermination date thereafter of the additional 12 reduction shall not exceed the market value of the benefit. 13 The commissioner may require a demonstration that the present 14 value of the reduction does not exceed the market value of the 15 benefit. Lacking such a demonstration that is acceptable to 16 the commissioner, the commissioner may disallow or limit the 17 additional reduction. 18 (3) The commissioner may adopt rules to implement the 19 provisions of subparagraph (4) (1), subparagraph division (d) , 20 and to provide for further adjustments to the calculation 21 of minimum nonforfeiture amounts for contracts that provide 22 substantive participation in an equity index benefit and for 23 other contracts that the commissioner determines adjustments 24 are justified. 25 Sec. 107. Section 508C.12, subsection 1, paragraph a, Code 26 Supplement 2011, is amended to read as follows: 27 a. (1) Notify the commissioners or insurance departments 28 of other states or territories of the United States and the 29 District of Columbia when any of the following actions against 30 a member insurer is taken: 31 (1) (a) A license is revoked. 32 (2) (b) A license is suspended. 33 (3) (c) A formal order is made that a company restrict its 34 premium writing, obtain additional contributions to surplus, 35 -62- LSB 5517HV (2) 84 lh/rj 62/ 129
H.F. 2328 withdraw from the state, reinsure all or any part of its 1 business, or increase capital, surplus, or any other account 2 for the security of policyholders or creditors. 3 (2) Notice shall be mailed to the commissioners or 4 departments within thirty days following the earlier of when 5 the action was taken or the date on which the action occurs. 6 This subparagraph does not supersede section 507C.9, subsection 7 5 . 8 Sec. 108. Section 509.1, subsection 2, Code 2011, is amended 9 to read as follows: 10 2. a. A policy issued to any one of the following to be 11 considered the policyholder: 12 a. (1) An advisory, supervisory, or governing body or 13 bodies of a regularly organized religious denomination to 14 insure its clergy, priests, or ministers of the gospel. 15 b. (2) A teachers’ association, to insure its members. 16 c. (3) A lawyers’ association, to insure its members. 17 d. (4) A volunteer fire company, to insure all of its 18 members. 19 e. (5) A fraternal society or association, or any 20 subordinate lodge or branch thereof, to insure its members. 21 f. (6) A common principal of any group of persons similarly 22 engaged between whom there exists a contractual relationship, 23 to insure the members of such group. 24 g. (7) An association, the members of which are students, 25 teachers, administrators or officials of any elementary or 26 secondary school or of any college, to insure the members 27 thereof. For the purpose of this paragraph subparagraph, the 28 students, teachers, administrators or officials of or for any 29 such school or college shall constitute an association. 30 b. Provided that the The provisions and requirements 31 of subsection 1 of this section shall apply to such the 32 policy and the policyholder and insured in like the same 33 manner as said subsection 1 of this section applies to 34 employers and employees, except that if a policy is issued 35 -63- LSB 5517HV (2) 84 lh/rj 63/ 129
H.F. 2328 to a volunteer fire company or an association, the members 1 of which are students, teachers, administrators or officials 2 of any elementary or secondary school or of any college, the 3 requirement for twenty-five members shall not apply, and, if 4 issued to a teachers’ association or lawyers’ association, not 5 less than sixty-five percent of the members thereof may be 6 insured. 7 Sec. 109. Section 509A.15, subsections 1 and 4, Code 2011, 8 are amended to read as follows: 9 1. a. Within ninety days following the end of a fiscal 10 year, the governing body of a self-insurance plan of a 11 political subdivision or a school corporation shall file with 12 the commissioner of insurance a certificate of compliance, 13 actuarial opinion, and an annual financial report. The 14 filing shall be accompanied by a fee of one hundred dollars. 15 A penalty of fifteen dollars per day shall be assessed for 16 failure to comply with the ninety-day filing requirement, 17 except that the commissioner may waive the penalty upon a 18 showing that special circumstances exist which justify the 19 waiver. The certificate shall be signed and dated by the 20 appropriate public official representing the governing body, 21 and shall certify the following: 22 a. (1) That the plan meets the requirements of this chapter 23 and the applicable provisions of the Iowa administrative code. 24 b. (2) That an actuarial opinion has been attached to 25 the certificate which attests to the adequacy of reserves, 26 rates, and financial condition of the plan. The actuarial 27 opinion must include, but is not limited to, a brief commentary 28 about the adequacy of the reserves, rates, and the financial 29 condition of the plan, a test of the prior year claim reserve, 30 a brief description of how the reserves were calculated, 31 and whether or not the plan is able to cover all reasonably 32 anticipated expenses. The actuarial opinion shall be prepared, 33 signed, and dated by a person who is a member of the American 34 academy of actuaries. If necessary, the actuary should assist 35 -64- LSB 5517HV (2) 84 lh/rj 64/ 129
H.F. 2328 the public body in preparing the annual financial report. The 1 annual financial report shall be in a format as prescribed by 2 the commissioner. 3 c. (3) That a written complaint procedure has been 4 implemented. The certificate shall also list the number of 5 complaints filed by participants under the written complaint 6 procedure, and the percentage of participants filing written 7 complaints, in the prior fiscal year. 8 d. (4) That the governing body has contracted or otherwise 9 arranged with a third-party administrator who holds a current 10 certificate of registration issued by the commissioner pursuant 11 to section 510.21 , or with a person not required to obtain 12 the certificate as a third-party administrator as defined in 13 section 510.11, subsection 2 . 14 b. The actuarial opinion must include but is not limited to 15 a brief commentary about the adequacy of the reserves, rates, 16 and the financial condition of the plan, a test of the prior 17 year claim reserve, a brief description of how the reserves 18 were calculated, and whether or not the plan is able to cover 19 all reasonably anticipated expenses. The actuarial opinion 20 shall be prepared, signed, and dated by a person who is a 21 member of the American academy of actuaries. 22 c. If necessary, the actuary should assist the public body 23 in preparing the annual financial report. The annual financial 24 report shall be in a format as prescribed by the commissioner. 25 4. a. One or more political subdivisions of the state 26 or one or more school corporations maintaining self-insured 27 plans with yearly claims that do not exceed two percent of 28 each entity’s general fund budget shall be exempt from the 29 requirements of this section where the plan insures employees 30 for all or part of a deductible, coinsurance payments, drug 31 costs, short-term disability benefits, vision benefits, or 32 dental benefits. 33 b. The yearly claim amount shall be determined annually on 34 the policy renewal date, or an alternative date established 35 -65- LSB 5517HV (2) 84 lh/rj 65/ 129
H.F. 2328 by rule, by a plan administrator or political subdivision 1 or school corporation employee to be designated by the plan 2 administrator. The exemption shall not apply for the year 3 following a year in which yearly claims are determined to 4 exceed two percent of the political subdivision’s or school 5 corporation’s general fund budget. 6 Sec. 110. Section 511.8, unnumbered paragraphs 1 and 2, Code 7 Supplement 2011, are amended to read as follows: 8 A company organized under chapter 508 shall, at all times, 9 have invested in the securities provided in this section , 10 funds equivalent to its legal reserve. Legal reserve is the 11 net present value of all outstanding policies and contracts 12 involving life contingencies. This section does not prohibit 13 a company or association from holding a portion of its 14 legal reserve in cash. The investment programs developed 15 by companies shall take into account the safety of the 16 company’s principal, investment yield and return, stability 17 in the value of the investment, and liquidity necessary to 18 meet the company’s expected business needs and investment 19 diversification. 20 The investment programs developed by companies shall take 21 into account the safety of the company’s principal, investment 22 yield and return, stability in the value of the investment, and 23 liquidity necessary to meet the company’s expected business 24 needs and investment diversification. 25 Sec. 111. Section 511.8, subsections 6, 8, 13, 15, 17, 19, 26 and 20, Code Supplement 2011, are amended to read as follows: 27 6. Preferred and guaranteed stocks. 28 a. Subject to the restrictions contained in subsection 29 8 hereof, preferred stocks of, or stocks guaranteed by, a 30 corporation incorporated under the laws of the United States 31 of America, or of any state, district, insular or territorial 32 possession thereof; or of the Dominion of Canada, or any 33 province thereof; and which meet the following qualifications: 34 a. (1) Preferred stocks. 35 -66- LSB 5517HV (2) 84 lh/rj 66/ 129
H.F. 2328 (1) (a) All of the obligations and preferred stocks of 1 the issuing corporation, if any, prior to the preferred stock 2 acquired must be eligible as investments under this section as 3 of the date of acquisition; and 4 (2) (b) The net earnings available for fixed charges and 5 preferred dividends of the issuing corporation shall have 6 been, for each of the five fiscal years immediately preceding 7 the date of acquisition, not less than one and one-half times 8 the sum of the annual fixed charges and contingent interest, 9 if any, and the annual preferred dividend requirements as of 10 the date of acquisition; or at the date of acquisition the 11 preferred stock has investment qualities and characteristics 12 wherein speculative elements are not predominant. 13 (i) The term “preferred dividend requirements” shall mean 14 cumulative or noncumulative dividends whether paid or not. 15 (ii) The term “fixed charges” shall be construed in 16 accordance with subsection 5 above . 17 (iii) The term “net earnings available for fixed charges and 18 preferred dividends” as used herein shall mean the net income 19 after deducting all operating and maintenance expenses, taxes, 20 including any income taxes, depreciation and depletion, but 21 nonrecurring items may be excluded. 22 b. (2) Guaranteed stocks. 23 (1) (a) All of the fixed interest-bearing obligations of 24 the guaranteeing corporation, if any, must be eligible under 25 this section as of the date of acquisition; and 26 (2) (b) The net earnings available for fixed charges 27 of the guaranteeing corporation shall meet the requirements 28 outlined in paragraph “a” of subsection 5 above , except that all 29 guaranteed dividends shall be included in “fixed charges” . 30 b. Any investments in preferred stocks or guaranteed 31 stocks made under the provisions of this subsection shall be 32 considered as moneys and credits for purposes of taxation 33 and their assessment shall be subject to deductions for 34 indebtedness as provided by law in the case of assessment 35 -67- LSB 5517HV (2) 84 lh/rj 67/ 129
H.F. 2328 of moneys and credits in general. This provision shall be 1 effective as to assessments made during the year 1947 and 2 thereafter. 3 8. Further restrictions. Securities included under 4 subsections 5, 6, and 7 shall not be eligible: 5 a. If the corporation is in default on fixed obligations as 6 of the date of acquisition. Securities provided in paragraph 7 “a” of subsection 6 , paragraph “a” , subparagraph (1), shall 8 not be eligible if the issuing corporation is in arrears with 9 respect to the payment of any preferred dividends as of the 10 date of acquisition. 11 b. The investments of any company or association in 12 such securities shall not be eligible in excess of the 13 following percentages of the legal reserve of such company or 14 association: 15 (1) With the exception of public securities, two percent 16 of the legal reserve in the securities of any one corporation. 17 Five percent of the legal reserve in the securities of any one 18 public utility corporation. 19 (2) Seventy-five percent of the legal reserve in the 20 securities described in subsection 5 issued by other than 21 public utility corporations. Fifty percent of the legal 22 reserve in the securities described in subsection 5 issued by 23 public utility corporations. 24 (3) Ten percent of the legal reserve in the securities 25 described in subsection 6 . 26 (4) Ten percent of the legal reserve in the securities 27 described in subsection 7 . 28 c. Statements adjusted to show the actual condition at 29 the time of acquisition or the effect of new financing, 30 known commercially as pro forma statements, may be used in 31 determining whether investments under subsections 5 and 6 are 32 in compliance with requirements. Statements so adjusted or 33 consolidated statements may be used in order to include the 34 earnings of all predecessor, merged, consolidated, or purchased 35 -68- LSB 5517HV (2) 84 lh/rj 68/ 129
H.F. 2328 companies. 1 d. In addition to the restrictions contained in paragraphs 2 “a” and “b” , the investments of any company or association in 3 securities included under subsection 5 , paragraph “c” , are not 4 eligible in excess of two percent of the legal reserve, but not 5 more than one-eighth of one percent of the legal reserve shall 6 be invested in the securities of any one corporation. 7 13. Collateral loans. Loans secured by collateral 8 consisting of any securities qualified in this section , 9 provided the amount of the loan is not in excess of ninety 10 percent of the value of the securities. Provided further that 11 subsection 8 shall apply to the collateral securities pledged 12 to the payment of loans authorized in this subsection. 13 Provided further that subsection 8 of this section shall 14 apply to the collateral securities pledged to the payment of 15 loans authorized in this subsection . 16 15. Railroad obligations. 17 a. Bonds or other evidences of indebtedness which carry a 18 fixed rate of interest and are issued, assumed or guaranteed 19 by any railroad company incorporated under the laws of the 20 United States of America, or of any state, district, insular 21 or territorial possessions thereof, not in reorganization or 22 receivership at the time of such investment, provided that the 23 railroad company: 24 a. (1) Shall have had for the three-year period immediately 25 preceding investment, for which the necessary data for the 26 railroad company shall have been published, a balance of income 27 available for fixed charges which shall have averaged per year 28 not less than one and one-quarter times the fixed charges for 29 the latest year of the period; and 30 b. (2) Shall have had for the three-year period immediately 31 preceding investment, for which the necessary data for both 32 the railroad company and all class I railroads shall have been 33 published: 34 (1) (a) A balance of income available for the payment of 35 -69- LSB 5517HV (2) 84 lh/rj 69/ 129
H.F. 2328 fixed charges at least as many times greater than the fixed 1 charges for the latest year of the period as the balance of 2 income available for the payment of fixed charges of all class 3 I railroads for the same three-year period is times greater 4 than the amount of all fixed charges for such class I railroads 5 for the latest year of the period; and 6 (2) (b) An amount of railway operating revenues remaining 7 after deduction of three times the fixed charges for the 8 latest year of the period from the balance of income available 9 for the payment of fixed charges for the three-year period, 10 which amount is as great a proportion of its railway operating 11 revenues for the same three-year period as is the proportion of 12 railway operating revenues remaining for all class I railroads, 13 determined in the same manner and for the same period as for 14 the railroad. 15 b. The terms “class I railroads” , “balance of income 16 available for the payment of fixed charges” , “fixed charges” 17 and “railway operating revenues” when used in this subsection , 18 are to be given the same meaning as in the accounting reports 19 filed by a railroad company in accordance with the regulations 20 for common carriers by rail of the Interstate Commerce Act, 21 24 Stat. 379, codified at 49 U.S.C. § 1 40, 1001 1100, 22 provided that the “balance of income available for the payment 23 of fixed charges” and “railway operating revenues remaining” , 24 as the terms are used in this subsection , shall be computed 25 before deduction of federal income or excess profits taxes; 26 and that in computing “fixed charges” there shall be excluded 27 interest and amortization charges applicable to debt called for 28 redemption or which will otherwise mature within six months 29 from the time of investment and for the payment of which funds 30 have been or currently are being specifically set aside. 31 c. The eligibility of railroad obligations described 32 in the first sentence of this subsection paragraph “a” , 33 unnumbered paragraph 1, shall be determined exclusively 34 as provided herein, without regard to the provisions for 35 -70- LSB 5517HV (2) 84 lh/rj 70/ 129
H.F. 2328 qualification contained in subsections 5 and 8 of this section . 1 Provisions for qualification contained in this section shall 2 not be construed as applying to equipment trust obligations, 3 guaranteed stocks, or contingent interest bonds of railroad 4 companies. Investments made in accordance with the provisions 5 of this subsection shall not be eligible in excess of ten 6 percent of the legal reserve. 7 17. Rules of valuation. 8 a. (1) All bonds or other evidences of debt having a fixed 9 term and rate of interest, if amply secured and not in default 10 as to principal or interest, may be valued as follows: 11 (1) (a) If purchased at par, at the par value. 12 (2) (b) If purchased above or below par, on the basis of 13 the purchase price adjusted so as to bring the value to par at 14 maturity and so as to yield in the meantime the effective rate 15 of interest at which the purchase was made. 16 (2) In applying the above rule contained in subparagraph 17 (1) , the purchase price shall in no case be taken at a higher 18 figure than the actual market value at the time of purchase. 19 b. Certificates of sale obtained by foreclosure of liens on 20 real estate shall be valued in an amount not greater than the 21 unpaid principal of the defaulted indebtedness plus any amounts 22 actually expended for taxes and acquisition costs. 23 c. (1) All investments, except those for which a specific 24 rule is provided in this subsection , shall be valued at 25 their market value, or at their appraised value, or at prices 26 determined by the commissioner of insurance as representing 27 their fair market value, or at a value as determined under 28 rules adopted by the national association of insurance 29 commissioners. 30 (2) The commissioner of insurance shall have full 31 discretion in determining the method of calculating values 32 according to the foregoing rules, but no company or association 33 shall be prevented from valuing any asset at an amount less 34 than that provided by this subsection . 35 -71- LSB 5517HV (2) 84 lh/rj 71/ 129
H.F. 2328 19. Other foreign government or corporate obligations. Bonds 1 or other evidences of indebtedness, not to include currency, 2 issued, assumed, or guaranteed by a foreign government other 3 than Canada, or by a corporation incorporated under the laws 4 of a foreign government other than Canada. Such governmental 5 obligations must be valid, legally authorized and issued, 6 and on the date of acquisition have predominantly investment 7 qualities and characteristics as provided by rule. Such 8 corporate obligations must meet the qualifications established 9 in subsection 5 for bonds and other evidences of indebtedness 10 issued, assumed, or guaranteed by a corporation incorporated 11 under the laws of the United States or Canada. Foreign 12 investments authorized by this subsection are not eligible 13 in excess of twenty percent of the legal reserve of the life 14 insurance company or association. Investments in obligations 15 of a foreign government, other than Canada and the United 16 Kingdom, are not eligible in excess of two percent of the 17 legal reserve in the securities of foreign governments of any 18 one foreign nation. Investments in obligations of the United 19 Kingdom are not eligible in excess of four percent of the legal 20 reserve. Investments in a corporation incorporated under the 21 laws of a foreign government other than Canada are not eligible 22 in excess of two percent of the legal reserve in the securities 23 of any one foreign corporation. 24 a. Eligible investments in foreign obligations under this 25 subsection are limited to the types of obligations specifically 26 referred to in this subsection . This subsection in no way 27 limits or restricts investments in Canadian obligations and 28 securities specifically authorized in other subsections of this 29 section . 30 b. This subsection shall not authorize investment in 31 evidences of indebtedness issued, assumed, or guaranteed by a 32 foreign government which engages in a consistent pattern of 33 gross violations of human rights. 34 20. Venture capital funds. 35 -72- LSB 5517HV (2) 84 lh/rj 72/ 129
H.F. 2328 a. Shares or equity interests in venture capital funds which 1 agree to invest an amount equal to at least fifty percent of 2 the funds in small businesses having their principal offices 3 within this state and having either more than one half of 4 their assets within this state or more than one half of their 5 employees employed within this state. A company shall not 6 invest more than five percent of its legal reserve under this 7 subsection . 8 b. For purposes of this subsection , “venture capital 9 fund” means a corporation, partnership, proprietorship, or 10 other entity formed under the laws of the United States, or 11 a state, district, or territory of the United States, whose 12 principal business is or will be the making of investments in, 13 and the provision of significant managerial assistance to, 14 small businesses which meet the small business administration 15 definition of small business. “Equity interests” means limited 16 partnership interests and other equity interests in which 17 liability is limited to the amount of the investment, but does 18 not mean general partnership interests or other interests 19 involving general liability. “Venture capital fund” includes an 20 equity interest in the Iowa fund of funds as defined in section 21 15E.62. 22 “Venture capital fund” includes an equity interest in the 23 Iowa fund of funds as defined in section 15E.62 . 24 Sec. 112. Section 512B.6, subsection 1, Code 2011, is 25 amended to read as follows: 26 1. a. A society shall operate for the benefit of members 27 and their beneficiaries by fulfilling both of the following 28 purposes: 29 a. (1) Providing benefits as specified in section 512B.16 . 30 b. (2) Operating for one or more social, intellectual, 31 educational, charitable, benevolent, moral, fraternal, 32 patriotic, or religious purposes for the benefit of its 33 members, which may also be extended to others. 34 b. The purposes listed in this subsection may be carried 35 -73- LSB 5517HV (2) 84 lh/rj 73/ 129
H.F. 2328 out directly by the society, or indirectly through subsidiary 1 corporations or affiliated organizations. 2 Sec. 113. Section 512B.19, subsection 4, Code 2011, is 3 amended to read as follows: 4 4. a. A society shall provide in its laws that if its 5 reserves as to all or any class of certificates become 6 impaired, its supreme governing body or board of directors may 7 require that there be paid by the owners to the society the 8 amount of the owners’ equitable proportion of the deficiency 9 as ascertained by its governing body or board, and that if the 10 payment is not made either of the following will apply: 11 a. (1) The required payment or assessment shall stand as 12 an indebtedness against the certificate and draw interest not 13 to exceed the rate specified for certificate loans under the 14 certificates. 15 b. (2) In lieu of or in combination with paragraph 16 “a” subparagraph (1) , the owner may accept a proportionate 17 reduction in benefits under the certificate. 18 b. The society may specify the manner of the election and 19 which alternative is to be presumed if no election is made. 20 Sec. 114. Section 512B.23, subsection 2, Code 2011, is 21 amended to read as follows: 22 2. a. The minimum standards of valuation for certificates 23 issued on or after January 1, 1991, shall be based on the 24 following tables: 25 a. (1) For certificates of life insurance, the 26 commissioner’s 1980 standard ordinary mortality table or any 27 more recent table made applicable to life insurers. 28 b. (2) For annuity and pure endowment certificates, for 29 total and permanent disability benefits, for accidental death 30 benefits and for noncancelable accident and health benefits, 31 the tables authorized for use by life insurers in this state. 32 b. Paragraphs “a” and “b” Paragraph “a” , subparagraphs (1) 33 and (2) are under valuation methods and standards, including 34 interest assumptions, in accordance with the laws of this state 35 -74- LSB 5517HV (2) 84 lh/rj 74/ 129
H.F. 2328 applicable to life insurers issuing policies containing like 1 benefits. 2 Sec. 115. Section 514A.1, Code 2011, is amended to read as 3 follows: 4 514A.1 Definition of accident and sickness insurance policy. 5 1. “Policy of accident and sickness insurance” as used in 6 this chapter As used in this chapter, “policy of accident and 7 sickness insurance” includes a policy or contract covering 8 insurance against loss resulting from sickness, or from bodily 9 injury or death by accident, or both. For the purposes of this 10 chapter the words “policy of accident and sickness insurance” 11 are interchangeable without deviation of meaning with the words 12 “policy of accident and health insurance” or the words “policy 13 of accident or health insurance.” “policy of accident or health 14 insurance” . 15 2. This chapter applies to all individual policies of such 16 accident and sickness insurance written by Iowa or non-Iowa 17 companies or associations duly licensed under chapter 508 , 515 , 18 or 520 and, societies, orders, or associations licensed under 19 chapter 512B writing sickness and accident policies providing 20 benefits for loss of time. 21 3. Orders, societies or associations which admit to 22 membership only persons engaged in one or more crafts or 23 hazardous occupations in the same or similar lines of business 24 and the societies or auxiliaries to such orders shall not 25 be subject to the provisions of this chapter nor shall any 26 religious order be subject to the provisions of this chapter . 27 Sec. 116. Section 514B.3, Code 2011, is amended to read as 28 follows: 29 514B.3 Application for a certificate of authority. 30 1. An application for a certificate of authority shall be 31 verified by an officer or authorized representative of the 32 health maintenance organization, shall be in a form prescribed 33 by the commissioner, and shall set forth or be accompanied by 34 the following: 35 -75- LSB 5517HV (2) 84 lh/rj 75/ 129
H.F. 2328 1. a. A copy of the basic organizational document, if 1 any, of the applicant such as the articles of incorporation, 2 articles of association, partnership agreement, trust 3 agreement, or other applicable documents, and all of its 4 amendments. 5 2. b. A copy of the bylaws, rules or similar document, 6 if any, regulating the conduct of the internal affairs of the 7 applicant. 8 3. c. A list of the names, addresses and official positions 9 of the persons who are to be responsible for the conduct of 10 the affairs of the applicant, including all members of the 11 board of directors, board of trustees, executive committee, or 12 other governing board or committee, the principal officers if 13 a corporation and the partners or members if a partnership or 14 association. 15 4. d. A copy of any contract made or to be made between any 16 providers or persons listed in subsection 3 paragraph “c” and 17 the applicant. 18 5. e. A statement generally describing the health 19 maintenance organization including, but not limited to, a 20 description of its facilities and personnel. 21 6. f. A copy of the form of evidence of coverage. 22 7. g. A copy of the form of the group contract, if any, 23 which is to be issued to employers, unions, trustees or other 24 organizations. 25 8. h. Financial statements showing the applicant’s 26 assets, liabilities and sources of financial support. If the 27 applicant’s financial affairs are audited by an independent 28 certified public accountant, a copy of the applicant’s most 29 recent regular certified financial statement shall satisfy this 30 requirement unless the commissioner directs that additional 31 financial information is required for the proper administration 32 of this chapter . 33 9. i. A description of the proposed method of marketing the 34 plan, a financial plan which includes a three-year projection 35 -76- LSB 5517HV (2) 84 lh/rj 76/ 129
H.F. 2328 of operating results anticipated, and a statement as to the 1 sources of funding. 2 10. j. A power of attorney executed by any applicant 3 appointing the commissioner, the commissioner’s successors in 4 office, and deputies to receive process in any legal action or 5 proceeding against the health maintenance organization on a 6 cause of action arising in this state. 7 11. k. A statement reasonably describing the geographic 8 area to be served. 9 12. l. A description of the complaint procedures to be 10 utilized as required under section 514B.14 . 11 13. m. A description of the procedures and programs to be 12 implemented to meet the requirements for quality of health care 13 as determined by the director of public health under section 14 514B.4 . 15 14. n. A description of the mechanism by which enrollees 16 shall be allowed to participate in matters of policy and 17 operation as required by section 514B.7 . 18 15. o. Other information the commissioner finds reasonably 19 necessary to make the determinations required in section 20 514B.5 . 21 2. A health maintenance organization shall, unless 22 otherwise provided for in this chapter , file notice with the 23 commissioner and receive approval from the commissioner before 24 modifying the operations described in the information required 25 by this section . 26 3. Upon receipt of an application for a certificate 27 of authority, the commissioner shall immediately transmit 28 copies of the application and accompanying documents to the 29 director of public health and the affected regional health 30 planning council, as authorized by Pub L. No. 89-749, 42 U.S.C. 31 § 246(b)2b, for their nonbinding consultation and advice. 32 Sec. 117. Section 514B.5, Code 2011, is amended to read as 33 follows: 34 514B.5 Issuance and denial of a certificate of authority. 35 -77- LSB 5517HV (2) 84 lh/rj 77/ 129
H.F. 2328 1. The commissioner shall issue or deny a certificate 1 of authority to any person filing an application pursuant to 2 section 514B.3 within a reasonable period of time. Issuance 3 of a certificate of authority shall be granted upon payment 4 of the application fee prescribed in section 514B.22 if the 5 commissioner is satisfied that the following conditions are 6 met: 7 1. a. The persons responsible for the conduct of the 8 affairs of the applicant are competent and trustworthy. 9 2. b. The commissioner finds that the health maintenance 10 organization’s proposed plan of operation meets the 11 requirements of section 514B.4 . 12 3. c. The health maintenance organization provides or 13 arranges for the provision of basic health care services 14 on a prepaid basis, except that the health maintenance 15 organization may impose deductible and coinsurance charges 16 subject to approval by the commissioner. The commissioner 17 has the authority to promulgate rules pursuant to chapter 17A 18 establishing reasonable maximum deductible and coinsurance 19 charges which may be imposed by health maintenance 20 organizations. 21 4. d. The health maintenance organization is fiscally 22 sound and may reasonably be expected to meet its obligations 23 to enrollees. In making this determination, the commissioner 24 may consider: 25 a. (1) The financial soundness of the health maintenance 26 organization’s arrangements for health care services in 27 relation to its schedule of charges. 28 b. (2) The adequacy of the health maintenance 29 organization’s working capital. 30 c. (3) Any agreement made by the health maintenance 31 organization with an insurer, a corporation authorized under 32 chapter 514 or any other organization for insuring the payment 33 of the cost of health care services or for providing immediate 34 alternative coverage in the event of discontinuance of the 35 -78- LSB 5517HV (2) 84 lh/rj 78/ 129
H.F. 2328 health maintenance organization. 1 d. (4) Any agreement made with providers for the provision 2 of health care services. 3 e. (5) Any surety bond or deposit of cash or securities 4 submitted in accordance with section 514B.16 . 5 5. e. The enrollees may participate in matters of policy 6 and operation pursuant to section 514B.7 . 7 6. f. Nothing in the proposed method of operation as shown 8 by the information submitted pursuant to section 514B.3 or by 9 independent investigation is contrary to the public interest. 10 2. A certificate of authority shall be denied only after 11 compliance with the requirements of section 514B.26 . 12 Sec. 118. Section 514B.6, Code 2011, is amended to read as 13 follows: 14 514B.6 Powers of health maintenance organizations. 15 1. The powers of a health maintenance organization include, 16 but are not limited to, the following: 17 1. a. The purchase, lease, construction, renovation, 18 operation or maintenance of hospitals, medical facilities, 19 or both, and their ancillary equipment, and such property as 20 may reasonably be required for transacting the business of the 21 organization. 22 2. b. The making of loans to a medical group under contract 23 with it or to a corporation under its control for the purpose 24 of acquiring or constructing medical facilities and hospitals 25 or in furtherance of a program providing health care services 26 to enrollees. 27 3. c. The furnishing of health care services to the public 28 through providers which are under contract with or employed by 29 the health maintenance organization. 30 4. d. The contracting with any person for the performance 31 on its behalf of certain functions such as marketing, 32 enrollment and administration. 33 5. e. The contracting with an insurance company authorized 34 to insure groups or individuals in this state for the cost of 35 -79- LSB 5517HV (2) 84 lh/rj 79/ 129
H.F. 2328 health care or with a corporation authorized under chapter 514 1 for the provision of insurance, indemnity, or reimbursement 2 against the cost of health care services provided by the health 3 maintenance organization. 4 6. f. The offering, in addition to basic health care 5 services, of health care services and indemnity benefits to 6 enrollees or groups of enrollees. 7 7. g. The acceptance from any person of payments covering 8 all or part of the charges made to enrollees of the health 9 maintenance organization. 10 2. A health maintenance organization shall file notice with 11 the commissioner before the exercise of any power granted in 12 subsections 1 and 2 subsection 1, paragraphs “a” and “b” . The 13 commissioner shall disapprove the exercise of power if in the 14 commissioner’s opinion it would substantially and adversely 15 affect the financial soundness of the health maintenance 16 organization and endanger its ability to meet its obligations. 17 The commissioner may adopt rules exempting from the filing 18 requirement of this section those activities having a minimum 19 effect. 20 Sec. 119. Section 514B.9, Code 2011, is amended to read as 21 follows: 22 514B.9 Evidence of coverage. 23 1. Every enrollee shall receive an evidence of coverage 24 and any amendments. If the enrollee obtains coverage through 25 an insurance policy or a contract issued by a corporation 26 authorized under chapter 514 , the insurer or the corporation 27 shall issue the evidence of coverage. No evidence of coverage 28 or amendment shall be issued or delivered to any person in this 29 state until a copy of the form of the evidence of coverage or 30 amendment has been filed with and approved by the commissioner. 31 2. An evidence of coverage shall contain a clear and 32 complete statement of: 33 1. a. The health care services and the insurance or other 34 benefits, if any, to which the enrollee is entitled in the 35 -80- LSB 5517HV (2) 84 lh/rj 80/ 129
H.F. 2328 total context of the organizational structure of the health 1 maintenance organization. 2 2. b. Any limitations on the services or benefits to be 3 provided, including any deductible or coinsurance charges 4 permitted under section 514B.5, subsection 3 1, paragraph “c” . 5 3. c. The manner in which information is available on the 6 method of obtaining health care services. 7 4. d. The total amount of payment for health care services 8 and indemnity or service benefits, if any, which the enrollee 9 is obligated to pay with respect to individual contracts, or 10 an indication whether the plan offered through the health 11 maintenance organization is contributory or noncontributory 12 with respect to group contracts. 13 5. e. The health maintenance organization’s method for 14 resolving enrollee complaints. 15 6. f. The mechanism by which enrollees shall be allowed to 16 participate in matters of policy and operation. 17 3. A copy of the form of the evidence of coverage to be 18 used in this state and any amendment shall be subject to the 19 filing and approval requirements of this section unless it 20 is subject to the jurisdiction of the commissioner under the 21 laws governing health insurance or corporations authorized 22 under chapter 514 in which event the filing and approval 23 provisions of such laws apply. To the extent, however, that 24 those provisions are less strict than those provided under this 25 section , then the requirements of this section shall apply. 26 4. Enrollees shall be entitled to receive the most recent 27 annual statement of the financial condition of the health 28 maintenance organization in which they are enrolled, which 29 statement shall include a balance sheet and summary of receipts 30 and disbursements. 31 Sec. 120. Section 515.35, subsection 4, paragraphs a and e, 32 Code 2011, are amended to read as follows: 33 a. United States government obligations. Obligations 34 issued or guaranteed by the United States or an agency or 35 -81- LSB 5517HV (2) 84 lh/rj 81/ 129
H.F. 2328 instrumentality of the United States. Bonds or other evidences 1 of indebtedness issued, assumed, or guaranteed by the United 2 States of America, or by any agency or instrumentality 3 of the United States of America include investments in an 4 open-end management investment company registered with the 5 federal securities and exchange commission under the federal 6 Investment Company Act of 1940, 15 U.S.C. § 80a, and operated 7 in accordance with 17 C.F.R. § 270.2a-7, the portfolio of 8 which is limited to the United States government obligations 9 described in this paragraph “a” , and which are included in the 10 national association of insurance commissioners’ securities 11 valuation office’s United States direct obligation full faith 12 and credit list. 13 Bonds or other evidences of indebtedness issued, assumed, 14 or guaranteed by the United States of America, or by any 15 agency or instrumentality of the United States of America 16 include investments in an open-end management investment 17 company registered with the federal securities and exchange 18 commission under the federal Investment Company Act of 1940, 19 15 U.S.C. § 80a, and operated in accordance with 17 C.F.R. 20 § 270.2a-7, the portfolio of which is limited to the United 21 States government obligations described in this paragraph “a” , 22 and which are included in the national association of insurance 23 commissioners’ securities valuation office’s United States 24 direct obligation full faith and credit list. 25 e. Corporate and business trust obligations. Obligations 26 issued, assumed, or guaranteed by a corporation or business 27 trust organized under the laws of the United States or a state 28 of the United States, or the laws of Canada or a province of 29 Canada, provided that a company shall not invest more than five 30 percent of its admitted assets in the obligations of any one 31 corporation or business trust. Aggregate investments in below 32 investment grade bonds shall not exceed five percent of assets. 33 Aggregate investments in below investment grade bonds shall 34 not exceed five percent of assets. 35 -82- LSB 5517HV (2) 84 lh/rj 82/ 129
H.F. 2328 Sec. 121. Section 515.35, subsection 4, paragraph h, 1 subparagraph (1), Code 2011, is amended to read as follows: 2 (1) (a) Except as provided in subparagraphs (2), (3), and 3 (4) of this paragraph, a company may acquire, hold, and convey 4 real estate only as follows: 5 (a) (i) Real estate mortgaged to it in good faith as 6 security for loans previously contracted, or for moneys due. 7 (b) (ii) Real estate conveyed to it in satisfaction of 8 debts previously contracted in the course of its dealings. 9 (c) (iii) Real estate purchased at sales on judgments, 10 decrees, or mortgages obtained or made for debts previously 11 contracted in the course of its dealings. 12 (d) (iv) Real estate subject to a contract for deed under 13 which the company holds the vendor’s interest to secure the 14 payments the vendee is required to make under the contract. 15 (b) All real estate specified in subparagraph divisions 16 (a), (b), and (c) division (a), subparagraph subdivisions (i), 17 (ii), and (iii) shall be sold and disposed of within three 18 years after the company acquires title to it, or within three 19 years after the real estate ceases to be necessary for the 20 accommodation of the company’s business, and the company shall 21 not hold any of those properties for a longer period unless the 22 company elects to hold the property under another paragraph of 23 this section , or unless the company procures a certificate from 24 the commissioner of insurance that its interest will suffer 25 materially by the forced sale of those properties and that the 26 time for the sale is extended to the time the commissioner 27 directs in the certificate. 28 Sec. 122. Section 515.35, subsection 4, paragraph m, Code 29 2011, is amended to read as follows: 30 m. Venture capital funds. Shares or equity interests in 31 venture capital funds which agree to invest an amount equal to 32 at least fifty percent of the investments by a company in small 33 businesses having their principal offices within this state and 34 having either more than one-half of their assets within this 35 -83- LSB 5517HV (2) 84 lh/rj 83/ 129
H.F. 2328 state or more than one-half of their employees employed within 1 this state. A company shall not invest more than five percent 2 of its capital and surplus under this paragraph. For purposes 3 of this paragraph, “venture capital fund” means a corporation, 4 partnership, proprietorship, or other entity formed under the 5 laws of the United States, or a state, district, or territory 6 of the United States, whose principal business is or will be 7 the making of investments in, and the provision of significant 8 managerial assistance to, small businesses which meet the small 9 business administration definition of small business. “Equity 10 interests” means limited partnership interests and other equity 11 interests in which liability is limited to the amount of the 12 investment, but does not mean general partnership interests or 13 other interests involving general liability. “Venture capital 14 fund” includes an equity interest in the Iowa fund of funds as 15 defined in section 15E.62. 16 “Venture capital fund” includes an equity interest in the 17 Iowa fund of funds as defined in section 15E.62 . 18 Sec. 123. Section 515B.9, subsection 1, Code 2011, is 19 amended to read as follows: 20 1. a. Any person having a claim under an insurance policy, 21 and the claim under such other policy alleges the same damages 22 or arises from the same facts, injury, or loss that gives rise 23 to a covered claim against the association, shall be required 24 to first exhaust all coverage provided by that policy, whether 25 such coverage is on a primary, excess, or pro rata basis and 26 any obligation of the association shall not be considered other 27 insurance. 28 (1) Any amount payable on a covered claim shall be reduced 29 by the full applicable limits of such other insurance policy 30 and the association shall receive full credit for such limits 31 or where there are no applicable limits, the claim shall be 32 reduced by the total recovery. 33 a. (2) A policy providing liability coverage to a person 34 who may be jointly and severally liable with, or a joint 35 -84- LSB 5517HV (2) 84 lh/rj 84/ 129
H.F. 2328 tortfeasor with, the person covered under the policy of the 1 insolvent insurer shall be first exhausted before any claim is 2 made against the association and the association shall receive 3 credit for the same as provided above. 4 b. For purposes of this section , an insurance policy means a 5 policy issued by an insurance company, whether or not a member 6 insurer, which policy insures any of the types of risks insured 7 by an insurance company authorized to write insurance under 8 chapter 515 , 516A , or 520 , or comparable statutes of another 9 state, except those types of risks set forth in chapters 508 10 and 514 . 11 Sec. 124. Section 515E.2, subsections 2, 6, and 7, Code 12 2011, are amended to read as follows: 13 2. a. “Completed operations liability” means liability 14 arising out of the installation, maintenance, or repair of any 15 product at a site which is not owned or controlled by either of 16 the following: 17 a. (1) A person who performs that work. 18 b. (2) A person who hires an independent contractor to 19 perform that work. 20 b. However, liability for activities which are completed or 21 abandoned before the date of the occurrence giving rise to the 22 liability is included. 23 6. a. “Liability” means legal liability for damages, 24 including costs of defense, legal costs and fees, and other 25 claims expenses, because of injuries to other persons, damage 26 to their property, or other damage or loss to other persons 27 resulting from or arising out of either of the following: 28 a. (1) A business, whether profit or nonprofit, trade, 29 product, services, including professional services, premises, 30 or operations. 31 b. (2) An activity of a state or local government, or an 32 agency or political subdivision of state or local government. 33 b. “Liability” does not include personal risk liability and 34 an employer’s liability with respect to its employees other 35 -85- LSB 5517HV (2) 84 lh/rj 85/ 129
H.F. 2328 than an employer’s legal liability under the federal Employers’ 1 Liability Act, 45 U.S.C. § 51 et seq. 2 7. “Personal risk liability” means liability for damages 3 because of injury to a person, damage to property, or 4 other loss or damage resulting from personal, familial, or 5 household responsibilities or activities, rather than from 6 responsibilities or activities referred to in subsection 6 , 7 paragraphs “a” and “b” paragraph “a” , subparagraphs (1) and (2) . 8 Sec. 125. Section 515E.4, unnumbered paragraphs 1 and 2, 9 Code Supplement 2011, are amended to read as follows: 10 Risk retention groups chartered in other states and seeking 11 to do business as a risk retention group in this state must 12 observe and abide by the laws of this state as provided in this 13 section . However, a risk retention group failing to qualify 14 under the definitional requirement of the federal Act, will not 15 benefit from this exemption from state law. The commissioner, 16 therefore, may apply any of the laws that otherwise may be 17 preempted by the federal Act because the nonexempt group will 18 not qualify for the preemption. 19 However, a risk retention group failing to qualify under 20 the definitional requirement of the federal Act, will not 21 benefit from this exemption from state law. The commissioner, 22 therefore, may apply any of the laws that otherwise may be 23 preempted by the federal Act because the nonexempt group will 24 not qualify for the preemption. 25 Sec. 126. Section 515F.6, subsection 3, unnumbered 26 paragraph 2, Code 2011, is amended to read as follows: 27 4. If, after hearing, the commissioner finds that the 28 filing does not meet the requirements of this chapter , the 29 commissioner shall issue an order specifying in what respects 30 the filing fails to meet the requirements of this chapter , and 31 stating when, within a reasonable period after the order is 32 issued, the filing shall no longer be in effect. Copies of the 33 order shall be sent to the applicant and to every insurer and 34 advisory organization which made that filing. The order shall 35 -86- LSB 5517HV (2) 84 lh/rj 86/ 129
H.F. 2328 not affect a contract or policy made or issued prior to the 1 expiration of the period set forth in the order. 2 Sec. 127. Section 516D.4, Code 2011, is amended to read as 3 follows: 4 516D.4 Collision damage and loss. 5 1. a. A rental company shall not hold, or attempt to hold, 6 an authorized driver liable for physical damage to a rental 7 vehicle, loss due to theft of a rental vehicle, or damages 8 resulting from the loss of use of a rental vehicle, unless the 9 rental company offers the customer a collision damage waiver 10 under the terms and conditions described in subsection 2 of 11 this section , or unless one or more of the following applies: 12 a. (1) The damage or loss is caused intentionally by an 13 authorized driver or is a result of the authorized driver’s 14 willful, abusive, reckless, or wanton misconduct. 15 b. (2) The damage or loss arises out of the authorized 16 driver’s operation of the rental vehicle while intoxicated or 17 under the influence of a drug. 18 c. (3) The damage or loss is caused while the authorized 19 driver is engaged in a race, training activity, contest, or use 20 of the rental vehicle for an illegal purpose. 21 d. (4) The rental agreement is based on false or misleading 22 information supplied by the customer or an authorized driver. 23 e. (5) The damage or loss is caused by operating the 24 rental vehicle other than on regularly maintained hard surface 25 roadways, including private driveways and parking lots. 26 f. (6) The damage or loss arises out of the use of the 27 rental vehicle to transport persons or property for hire or to 28 push or tow anything. 29 g. (7) The damage or loss occurs while the rental vehicle 30 is operated by a driver other than an authorized driver. 31 h. (8) The damage or loss arises out of the use of the 32 rental vehicle outside the continental United States unless 33 such use is specifically authorized by the rental agreement. 34 i. (9) The damage or loss is attributable to theft which 35 -87- LSB 5517HV (2) 84 lh/rj 87/ 129
H.F. 2328 occurs with the prior knowledge or knowing participation of an 1 authorized driver, or which is attributable to the authorized 2 driver leaving the rental vehicle unattended with the keys in 3 the rental vehicle. 4 b. This section does not alter the liability of a customer 5 or authorized driver for bodily injury or the death of another 6 and for property damage other than to the rental vehicle in 7 accordance with the rental agreement. This section does not 8 prohibit a rental company from accepting or negotiating master 9 contracts with companies or government entities in advance of 10 need whereby the companies or government entities specifically 11 agree to assume liability in exchange for rate concessions. 12 This section does not prohibit a rental company from entering 13 into agreements with insurance companies to provide replacement 14 vehicles to insurance company customers whereby the insurance 15 company agrees to assume the risk of loss. 16 c. If the rental vehicle is not repaired, damages shall not 17 exceed the fair market value of the vehicle, as determined in 18 the customary market for that vehicle, less salvage or actual 19 sale value, plus additional license and tax fees incurred 20 because of the sale, plus administrative fees. A claim shall 21 not be made for loss of use if the rental vehicle is not 22 repaired. 23 2. a. A rental company may offer a collision damage waiver 24 under the following terms and conditions: 25 a. (1) All restrictions, conditions, and exclusions must 26 be printed in the rental agreement, or on a separate sheet or 27 document, in ten point type, or larger; or written in pen and 28 ink or typewritten in or on the face of the rental agreement 29 in a blank space provided for such restrictions, conditions, 30 and exclusions. The rental agreement may provide that the 31 collision damage waiver may be voided under the conditions set 32 forth in subsection 1 , paragraphs “a” through “i” paragraph “a” , 33 subparagraphs (1) through (9) . 34 b. (2) The rental agreement, separate sheet, or document 35 -88- LSB 5517HV (2) 84 lh/rj 88/ 129
H.F. 2328 must clearly and conspicuously state both the daily and 1 estimated total charge for the collision damage waiver. 2 c. (3) (a) The rental agreement, separate sheet, or 3 document given to the customer prior to entering into the 4 rental agreement must display in ten point type, or larger, the 5 following notice: 6 NOTICE: THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, 7 A COLLISION DAMAGE WAIVER TO COVER ALL OR PART OF YOUR 8 RESPONSIBILITY FOR DAMAGE TO THE RENTAL VEHICLE. 9 BEFORE DECIDING WHETHER TO PURCHASE THE COLLISION DAMAGE 10 WAIVER, YOU MAY WISH TO DETERMINE WHETHER YOUR OWN AUTOMOBILE 11 INSURANCE AFFORDS YOU COVERAGE FOR DAMAGE TO THE RENTAL VEHICLE 12 AND THE AMOUNT OF THE DEDUCTIBLE UNDER YOUR OWN INSURANCE 13 COVERAGE. THE PURCHASE OF THIS COLLISION DAMAGE WAIVER IS NOT 14 MANDATORY AND MAY BE DECLINED. 15 (b) The customer must separately acknowledge that the 16 customer received the above notice, that the customer desires 17 to purchase the collision damage waiver, and the terms of the 18 collision damage waiver to which the customer agrees. 19 d. (4) The car rental company shall not pay commissions to 20 a rental counter agent or representative for selling collision 21 damage waivers and is prohibited from considering volume of 22 sales of collision damage waivers in an employee evaluation or 23 determination of promotion. 24 b. However, notwithstanding whether a rental company 25 offers a collision damage waiver under the provisions of this 26 subsection , the rental company shall not hold an authorized 27 driver liable for damage or loss due to theft except where 28 subsection 1 , paragraph “i” “a” , subparagraph (9) applies. 29 Sec. 128. Section 518C.3, subsection 4, paragraph b, Code 30 Supplement 2011, is amended to read as follows: 31 b. (1) “Covered claim” does not include any of the 32 following: 33 (1) (a) An amount due a reinsurer, insurer, insurance pool, 34 underwriting association, or other group assuming insurance 35 -89- LSB 5517HV (2) 84 lh/rj 89/ 129
H.F. 2328 risks, as subrogation, contribution, indemnity recoveries, or 1 otherwise. 2 (2) (b) An amount that constitutes the portion of a 3 claim that is within an insured’s deductible or self-insured 4 retention. 5 (3) (c) A fee or other amount relating to goods or services 6 sought by or on behalf of an attorney, adjuster, witness, or 7 other provider of goods or services retained by the insolvent 8 insurer or by an insured prior to the date the insurer was 9 declared insolvent. 10 (4) (d) An amount that constitutes a fine, penalty, 11 interest, or punitive or exemplary damages. 12 (5) (e) A fee or other amount sought by or on behalf of 13 an attorney, adjuster, witness, or other provider of goods or 14 services retained by the insured or claimant in connection with 15 the assertion of any claim, covered or otherwise, against the 16 association. 17 (6) (f) A claim filed with the association or with a 18 liquidator for protection afforded under the insured’s policy 19 or contract for incurred but not reported losses or expenses. 20 (7) (g) An amount that is an obligation owed to or on 21 behalf of an affiliate of, as defined in section 521A.1 , an 22 insolvent insurer. 23 (2) Notwithstanding subparagraphs (1) through (7) 24 subparagraph (1), subparagraph divisions (a) through (g) , a 25 person is not prevented from presenting a noncovered claim 26 to the insolvent insurer or its liquidator. However, the 27 noncovered claim shall not be asserted against any other 28 person, including the person to whom benefits were paid or the 29 insured of the insolvent insurer, except to the extent that 30 the claim is outside the coverage of the policy issued by the 31 insolvent insurer. 32 Sec. 129. Section 521A.3, subsections 1 and 2, Code 2011, 33 are amended to read as follows: 34 1. Filing requirements. 35 -90- LSB 5517HV (2) 84 lh/rj 90/ 129
H.F. 2328 a. No person other than the issuer shall make a tender offer 1 for or a request or invitation for tenders of, or enter into 2 any agreement to exchange securities for, seek to acquire, or 3 acquire, in the open market or otherwise, any voting security 4 of a domestic insurer if, after the consummation thereof, 5 such person would, directly or indirectly, or by conversion 6 or by exercise of any right to acquire, be in control of such 7 insurer, and no person shall enter into an agreement to merge 8 with or otherwise to acquire control of a domestic insurer 9 unless, at the time any such offer, request, or invitation 10 is made or any such agreement is entered into, or prior to 11 the acquisition of such securities if no offer or agreement 12 is involved, such person has filed with the commissioner and 13 has sent to such insurer, and such insurer has sent to its 14 shareholders, a statement containing the information required 15 by this section and such offer, request, invitation, agreement 16 or acquisition has been approved by the commissioner in the 17 manner hereinafter prescribed. 18 b. For purposes of this section a domestic insurer shall 19 include any other person controlling a domestic insurer unless 20 the other person is either directly or through its affiliates 21 primarily engaged in business other than the business of 22 insurance. However, for purposes of this section “person” 23 does not include a securities broker holding, in the usual and 24 customary broker’s function, less than twenty percent of the 25 voting securities of an insurance company or of a person which 26 controls an insurance company. 27 2. Content of statement. 28 a. The statement to be filed with the commissioner hereunder 29 shall be made under oath or affirmation and shall contain the 30 following information: 31 a. (1) The name and address of each person by whom or 32 on whose behalf the merger or other acquisition of control 33 referred to in subsection 1 of this section is to be effected, 34 hereinafter called “acquiring party” . 35 -91- LSB 5517HV (2) 84 lh/rj 91/ 129
H.F. 2328 (1) (a) If such person is an individual, the individual’s 1 principal occupation and all offices and positions held during 2 the past five years, and any conviction of crimes other than 3 minor traffic violations during the past ten years. 4 (2) (b) If such person is not an individual, a report 5 of the nature of its business operations during the past 6 five years or for such lesser period as such person and 7 any predecessors thereof shall have been in existence; an 8 informative description of the business intended to be done 9 by such person and such person’s subsidiaries; and a list of 10 all individuals who are or who have been selected to become 11 directors or executive officers of such person, or who perform 12 or will perform functions appropriate to such positions. Such 13 list shall include for each such individual the information 14 required by subparagraph (1) of this paragraph division (a) . 15 b. (2) The source, nature and amount of the consideration 16 used or to be used in effecting the merger or other acquisition 17 of control, a description of any transaction in which funds 18 were or are to be obtained for any such purpose including a 19 pledge of the insurer’s stock, or the stock of any of its 20 subsidiaries or controlling affiliates, and the identity of 21 persons furnishing the consideration. However, if a source 22 of the consideration is a loan made in the lender’s ordinary 23 course of business, the identity of the lender shall remain 24 confidential, if the person filing the statement so requests. 25 c. (3) Fully audited financial information as to the 26 earnings and financial condition of each acquiring party for 27 the preceding five fiscal years of each such acquiring party, 28 or for such lesser period as such acquiring party and any 29 predecessors thereof shall have been in existence, and similar 30 unaudited information as of a date not earlier than ninety days 31 prior to the filing of the statement. 32 d. (4) Any plans or proposals which each acquiring party 33 may have to liquidate such insurer, to sell its assets or 34 merge or consolidate it with any person, or to make any other 35 -92- LSB 5517HV (2) 84 lh/rj 92/ 129
H.F. 2328 material change in its business or corporate structure or 1 management. 2 e. (5) The number of shares of any security referred to 3 in subsection 1 of this section which each acquiring party 4 proposes to acquire, and the terms of the offer, request, 5 invitation, agreement, or acquisition referred to in subsection 6 1 of this section , and a statement as to the method by which the 7 fairness of the proposal was arrived at. 8 f. (6) The amount of each class of any security referred 9 to in subsection 1 of this section which is beneficially owned 10 or concerning which there is a right to acquire beneficial 11 ownership by each acquiring party. 12 g. (7) A full description of any contracts, arrangements 13 or understandings with respect to any security referred to 14 in subsection 1 of this section in which any acquiring party 15 is involved, including but not limited to transfer of any of 16 the securities, joint ventures, loan or option arrangements, 17 puts or calls, guarantees of loans, guarantees against loss 18 or guarantees of profits, division of losses or profits, or 19 the giving or withholding of proxies. Such description shall 20 identify the persons with whom such contracts, arrangements or 21 understandings have been entered into. 22 h. (8) A description of the purchase of any security 23 referred to in subsection 1 of this section during the twelve 24 calendar months preceding the filing of the statement, by any 25 acquiring party, including the dates of purchase, names of 26 the purchasers, and consideration paid or agreed to be paid 27 therefor. 28 i. (9) A description of any recommendations to purchase 29 any security referred to in subsection 1 of this section made 30 during the twelve calendar months preceding the filing of the 31 statement, by any acquiring party, or by anyone based upon 32 interview or at the suggestion of such acquiring party. 33 j. (10) Copies of all tender offers for, requests or 34 invitations for tenders of, exchange offers for, and agreements 35 -93- LSB 5517HV (2) 84 lh/rj 93/ 129
H.F. 2328 to acquire or exchange any securities referred to in subsection 1 1 of this section , and, if distributed, of additional 2 soliciting material relating thereto. 3 k. (11) The terms of any agreement, contract or 4 understanding made with any broker-dealer as to solicitation 5 of securities referred to in subsection 1 of this section 6 for tender, and the amount of any fees, commissions or other 7 compensation to be paid to broker-dealers with regard thereto. 8 l. (12) Additional information as the commissioner may by 9 rule prescribe as necessary or appropriate for the protection 10 of policyholders of the insurer or in the public interest. 11 b. If the person required to file the statement referred 12 to in subsection 1 of this section is a partnership, limited 13 partnership, syndicate or other group, the commissioner may 14 require that the information called for by paragraphs “a” 15 through “l” of this subsection paragraph “a” , subparagraphs 16 (1) through (12) shall be given with respect to each partner 17 of such partnership or limited partnership, each member of 18 such syndicate or group, and each person who controls such 19 partner or member. If any such partner, member or person is 20 a corporation or the person required to file the statement 21 referred to in subsection 1 of this section is a corporation, 22 the commissioner may require that the information called for 23 by paragraphs “a” through “l” of this subsection paragraph 24 “a” , subparagraphs (1) through (12) shall be given with 25 respect to such corporation, each officer and director of such 26 corporation, and each person who is directly or indirectly the 27 beneficial owner of more than ten percent of the outstanding 28 voting securities of such corporation. If any material change 29 occurs in the facts set forth in the statement filed with the 30 commissioner and sent to such insurer pursuant to this section , 31 an amendment setting forth such change, together with copies of 32 all documents and other material relevant to such change, shall 33 be filed with the commissioner and sent to such insurer within 34 two business days after the person learns of such change. Such 35 -94- LSB 5517HV (2) 84 lh/rj 94/ 129
H.F. 2328 insurer shall send such amendment to its shareholders. 1 Sec. 130. Section 521B.2, unnumbered paragraph 1, Code 2 2011, is amended to read as follows: 3 Credit for reinsurance is allowed a domestic ceding insurer 4 as either an asset or a deduction from liability on account of 5 reinsurance ceded only if the reinsurer meets the requirements 6 of subsection 1, 2, 3, 4, or 5 . If the reinsurer meets 7 the requirements of subsection 3 or 4 , the requirements of 8 subsection 6 must also be met. This section does not apply to 9 reinsurance ceded and assumed pursuant to pooling arrangements 10 among insurers in the same holding company system. 11 Sec. 131. Section 521B.2, subsection 2, Code 2011, is 12 amended to read as follows: 13 2. a. Credit is allowed if the reinsurance is ceded to an 14 assuming insurer which is accredited as a reinsurer in this 15 state. An accredited reinsurer is one which satisfies all of 16 the following conditions: 17 a. (1) Files with the commissioner evidence of submission 18 to the jurisdiction of this state. 19 b. (2) Submits to the authority of this state to examine 20 its books and records. 21 c. (3) Is licensed to transact reinsurance in at least one 22 state, or in the case of a United States branch of an alien 23 assuming insurer, is entered through and licensed to transact 24 the business of reinsurance in at least one state. 25 d. (4) Files annually with the commissioner a copy of 26 its annual statement filed with the insurance department of 27 its state of domicile and a copy of its most recent audited 28 financial statement and does either of the following: 29 (1) (a) Maintains a surplus with respect to policyholders 30 in an amount which is not less than twenty million dollars and 31 whose accreditation has not been denied by the commissioner 32 within ninety days of its submission to the jurisdiction of 33 this state. 34 (2) (b) Maintains a surplus with respect to policyholders 35 -95- LSB 5517HV (2) 84 lh/rj 95/ 129
H.F. 2328 in an amount less than twenty million dollars and whose 1 accreditation has been approved by the commissioner. Credit 2 shall not be allowed a domestic ceding insurer, if the 3 accreditation of the assuming insurer is revoked by the 4 commissioner after notice and hearing. 5 b. To qualify as an accredited reinsurer, an assuming 6 insurer must meet all of the requirements and the standards 7 set forth in this subsection . If the commissioner determines 8 that the assuming insurer has failed to continue to meet any 9 of these requirements or standards, the commissioner may upon 10 written notice and hearing revoke accreditation of the assuming 11 insurer. 12 This section does not apply to reinsurance ceded and assumed 13 pursuant to pooling arrangements among insurers in the same 14 holding company system. 15 Sec. 132. Section 521C.3, subsection 5, Code 2011, is 16 amended to read as follows: 17 5. a. The commissioner may refuse to issue a reinsurance 18 intermediary license if, in the commissioner’s judgment, any of 19 the following conditions are present: 20 a. (1) The applicant, anyone named in the application, or 21 any member, principal, officer, or director of the applicant, 22 is not trustworthy. 23 b. (2) A controlling person of such applicant is not 24 trustworthy to act as a reinsurance intermediary. 25 c. (3) Conditions present in paragraph “a” or “b” 26 subparagraph (1) or (2) have given cause for revocation or 27 suspension of a license, or a person referred to in paragraph 28 “a” or “b” subparagraph (1) or (2) has failed to comply with any 29 prerequisite for the issuance of a license. 30 b. Upon written request, the commissioner shall furnish a 31 written summary of the basis for refusal to issue a license, 32 which document is privileged and not subject to disclosure 33 under chapter 22 . 34 Sec. 133. Section 521D.4, subsection 3, Code 2011, is 35 -96- LSB 5517HV (2) 84 lh/rj 96/ 129
H.F. 2328 amended to read as follows: 1 3. a. A report required to be filed pursuant to this 2 chapter is to be filed regardless of who has initiated the 3 nonrenewal, cancellation, or revision of the ceded reinsurance 4 agreement whenever one or more of the following conditions 5 exist: 6 a. (1) The entire cession has been canceled, nonrenewed, 7 or revised and ceded indemnity and loss adjustment expense 8 reserves, after any nonrenewal, cancellation, or revision, 9 represent less than fifty percent of the comparable reserves 10 that would have been ceded had the nonrenewal, cancellation, or 11 revision not occurred. 12 b. (2) An authorized or accredited reinsurer has been 13 replaced on an existing cession by an unauthorized reinsurer. 14 c. (3) Collateral requirements previously established for 15 unauthorized reinsurers have been reduced. 16 b. Subject to the materiality criteria, for purposes of 17 paragraphs “b” and “c” paragraph “a” , subparagraphs (2) and (3) , 18 a report shall be filed if the result of the revision affects 19 more than ten percent of the cession. 20 Sec. 134. Section 524.605, Code 2011, is amended to read as 21 follows: 22 524.605 Liability of directors in certain cases. 23 1. In addition to any other liabilities imposed by law upon 24 directors of a state bank: 25 1. a. Directors of a state bank who vote for or assent 26 to the declaration of any dividend or other distribution of 27 the assets of a state bank to its shareholders in willful or 28 negligent violation of the provisions of this chapter or of 29 any restrictions contained in the articles of incorporation, 30 shall be jointly and severally liable to the state bank for 31 the amount of such dividend which is paid or the value of 32 such assets which are distributed in excess of the amount 33 of such dividend or distribution which could have been 34 paid or distributed without a violation of the provisions 35 -97- LSB 5517HV (2) 84 lh/rj 97/ 129
H.F. 2328 of this chapter or of the restrictions in the articles of 1 incorporation. 2 2. b. The directors of a state bank who vote for or 3 assent to any distribution of assets of a state bank to its 4 shareholders during the dissolution of the state bank without 5 the payment and discharge of, or making adequate provision for, 6 all known debts, obligations, and liabilities of the state bank 7 shall be jointly and severally liable to the state bank for the 8 value of such assets which are distributed, to the extent that 9 such debts, obligations and liabilities of the state bank are 10 not thereafter paid and discharged. 11 3. c. The directors of a state bank who, willfully or 12 negligently, vote for or assent to loans or extensions of 13 credit in violation of the provisions of this chapter , shall be 14 jointly and severally liable to the state bank for the total 15 amount of any loss sustained. 16 4. d. The directors of a state bank who, willfully or 17 negligently, vote for or assent to any investment of funds of 18 the state bank in violation of the provisions of this chapter 19 shall be jointly and severally liable to the state bank for the 20 amount of any loss sustained on such investment. 21 2. A director of a state bank who is present at a meeting 22 of its board of directors at which action on any matter is 23 taken shall be presumed to have assented to the action taken 24 unless the director’s dissent shall be entered in the minutes 25 of the meeting or unless the director shall file the director’s 26 written dissent to such action with the individual acting as 27 the secretary of the meeting before the adjournment thereof or 28 shall forward such dissent by registered or certified mail to 29 the cashier of the state bank promptly after the adjournment 30 of the meeting. Such right to dissent shall not apply to a 31 director who voted in favor of such action. 32 3. A director shall not be liable under subsection 1, 2, 33 3, or 4 of this section paragraph “a” , “b” , “c” , or “d” if 34 the director relied and acted in good faith upon information 35 -98- LSB 5517HV (2) 84 lh/rj 98/ 129
H.F. 2328 represented to the director to be correct by an officer or 1 officers of such state bank or stated in a written report by a 2 certified public accountant or firm of such accountants. No 3 director shall be deemed to be negligent within the meaning 4 of this section if the director in good faith exercised that 5 diligence, care and skill which an ordinarily prudent person 6 would exercise as a director under similar circumstances. 7 4. Any director against whom a claim shall be asserted under 8 or pursuant to this section for the payment of a dividend or 9 other distribution of assets of a state bank and who shall be 10 held liable thereon, shall be entitled to contribution from 11 the shareholders who accepted or received any such dividend or 12 assets, knowing such dividend or distribution to have been made 13 in violation of the provisions of this chapter , in proportion 14 to the amounts received by them respectively. Further, any 15 director against whom a claim shall be asserted pursuant to 16 this section for the payment of any liability imposed by this 17 section shall be entitled to contribution from any director 18 found to be similarly liable. 19 5. Whenever the superintendent deems it necessary the 20 superintendent may require, after affording an opportunity for 21 a hearing upon adequate notice, that a director or directors 22 whom the superintendent reasonably believes to be liable to 23 a state bank pursuant to subsection 1, 2, 3, or 4 of this 24 section paragraph “a” , “b” , “c” , or “d” , to place in an escrow 25 account in an insured bank located in this state, as directed 26 by the superintendent, an amount sufficient to discharge any 27 liability which may accrue pursuant to subsection 1, 2, 3, 28 or 4 of this section paragraph “a” , “b” , “c” , or “d” . The 29 amount so deposited shall be paid over to the state bank by 30 the superintendent upon final determination of the amount of 31 such liability. Any portion of the escrow account which is not 32 necessary to meet such liability shall be repaid on a pro rata 33 basis to the directors who contributed to the fund. 34 6. Any action seeking to impose liability under this 35 -99- LSB 5517HV (2) 84 lh/rj 99/ 129
H.F. 2328 section , other than liability for contribution, shall be 1 commenced only within five years of the action complained of 2 and not thereafter. 3 Sec. 135. Section 524.901, subsection 7, Code 2011, is 4 amended to read as follows: 5 7. a. A state bank, upon the approval of the 6 superintendent, may invest up to five percent of its aggregate 7 capital in the shares or equity interests of any of the 8 following: 9 a. (1) Economic development corporations organized under 10 chapter 496B to the extent authorized by and subject to the 11 limitations of that chapter. 12 b. (2) Community development corporations or community 13 development projects to the same extent a national bank may 14 invest in such corporations or projects pursuant to 12 U.S.C. 15 § 24. 16 c. (3) Small business investment companies as defined by 17 the laws of the United States. 18 d. (4) Venture capital funds which invest an amount equal 19 to at least fifty percent of a state bank’s investment in small 20 businesses having their principal offices within this state and 21 having either more than one-half of their assets within this 22 state or more than one-half of their employees employed within 23 this state. 24 e. (5) Small businesses having a principal office within 25 this state and having either more than one-half of their assets 26 within this state or more than one-half of their employees 27 employed within this state. An investment by a state bank 28 in a small business under this paragraph subparagraph shall 29 be included with the obligations of the small business to 30 the state bank that are incurred as a result of the exercise 31 by the state bank of the powers conferred in section 524.902 32 for the purpose of determining the total obligations of the 33 small business pursuant to section 524.904 . A state bank’s 34 equity interest investment in a small business, pursuant to 35 -100- LSB 5517HV (2) 84 lh/rj 100/ 129
H.F. 2328 this paragraph subparagraph , shall not exceed a twenty percent 1 ownership interest in the small business. 2 f. (6) Other entities, acceptable to the superintendent, 3 whose sole purpose is to promote economic or civic developments 4 within a community or this state. 5 b. A state bank’s total investment in any combination of 6 the shares or equity interests of the entities identified 7 in paragraphs “a” through “f” paragraph “a” , subparagraphs 8 (1) through (6) shall be limited to fifteen percent of its 9 aggregate capital. 10 c. For purposes of this subsection: 11 (1) The term “equity interests” means limited partnership 12 interests and other equity interests in which liability is 13 limited to the amount of the investment, but does not mean 14 general partnership interests or other interests involving 15 general liability. 16 (2) The term “small business” means a corporation, 17 partnership, proprietorship, or other entity which meets 18 the appropriate United States small business administration 19 definition of small business and which is principally engaged 20 in the development or exploitation of inventions, technological 21 improvements, new processes, or other products not previously 22 generally available in this state, or other investments which 23 provide an economic benefit to the state. 24 (3) For purposes of this subsection , the The term “venture 25 capital fund” means a corporation, partnership, proprietorship, 26 or other entity whose principal business is or will be the 27 making of investments in, and the providing of significant 28 managerial assistance to, small businesses. The term “small 29 business” means a corporation, partnership, proprietorship, or 30 other entity which meets the appropriate United States small 31 business administration definition of small business and which 32 is principally engaged in the development or exploitation of 33 inventions, technological improvements, new processes, or other 34 products not previously generally available in this state, or 35 -101- LSB 5517HV (2) 84 lh/rj 101/ 129
H.F. 2328 other investments which provide an economic benefit to the 1 state. The term “equity interests” means limited partnership 2 interests and other equity interests in which liability is 3 limited to the amount of the investment, but does not mean 4 general partnership interests or other interests involving 5 general liability. 6 Sec. 136. Section 527.7, Code 2011, is amended to read as 7 follows: 8 527.7 Records maintained. 9 1. All transactions engaged in through a satellite terminal 10 shall be recorded in a form from which it will be possible 11 to produce a humanly readable record of any transaction, and 12 these recordings shall be retained by the utilizing financial 13 institutions for the periods required by law. 14 2. The machine receipt provided to a satellite account 15 transaction card user by a satellite terminal shall be 16 admissible as evidence in any legal action or proceeding and 17 shall constitute prima facie proof of the transaction evidence 18 by that receipt. 19 3. A financial institution shall provide each of its 20 satellite account holders with a periodic account statement 21 that shall contain a brief description of all satellite 22 terminal transactions sufficient to enable the account holder 23 to identify any transaction and to relate it to machine 24 receipts provided by satellite terminals. 25 4. When a periodic account statement includes both 26 satellite terminal transactions and other nonsatellite terminal 27 transactions, all satellite terminal transactions shall be 28 indicated as such, and shall be accompanied by the description 29 required by this subsection 3 . 30 5. The administrator may provide by rule for the recording 31 and maintenance, by any financial institution utilizing a 32 satellite terminal, of amounts involved in a transaction 33 engaged in through the satellite terminal which are of a known 34 tax consequence to the customer initiating the transaction. 35 -102- LSB 5517HV (2) 84 lh/rj 102/ 129
H.F. 2328 For the purpose of this paragraph subsection, “known tax 1 consequences” means and includes but shall not be limited to the 2 following: 3 1. a. An amount directly or indirectly received from a 4 customer and applied to a loan account of the customer which 5 represents interest paid by the customer to the financial 6 institution. 7 2. b. In any transaction where the total amount involved 8 is deducted from funds in a customer’s account and is 9 simultaneously paid either directly or indirectly by the 10 financial institution to the account of a third party, any 11 portion of the transaction amount which represents a sales or 12 other tax imposed upon or included within the transaction and 13 collected by that third party from the customer, or any portion 14 of the transaction amount which represents interest paid to the 15 third party by the customer. 16 3. c. Any other transaction which the administrator 17 determines to have direct tax consequences to the customer. 18 The administrator also may provide for the periodic 19 distribution to customers of summaries of transactions having 20 known tax consequences. 21 Sec. 137. Section 527.9, subsection 2, Code 2011, is amended 22 to read as follows: 23 2. a. A person desiring to operate a central routing unit 24 shall submit to the administrator an application which shall 25 contain all of the following information: 26 a. (1) The name and business address of the owner of the 27 proposed unit. 28 b. (2) The name and business address of each data 29 processing center and other central routing unit with which 30 the proposed central routing unit will have direct electronic 31 communication. 32 c. (3) The location of the proposed central routing unit. 33 d. (4) A schedule of the charges which will be required to 34 be paid to that applicant by each financial institution which 35 -103- LSB 5517HV (2) 84 lh/rj 103/ 129
H.F. 2328 utilizes the proposed central routing unit. 1 The application shall be accompanied by all agreements 2 between the proposed central routing unit and all data 3 processing centers and other central routing units respecting 4 the transmission of transaction data; and a copy of any 5 agreement between the proposed central routing unit and 6 any financial institution establishing a satellite terminal 7 unless that agreement theretofore has been filed with the 8 administrator pursuant to section 527.5 . 9 e. (5) An agreement by the applicant that the proposed 10 central routing unit will be capable of accepting and routing, 11 and will be operated to accept and route, transmissions of data 12 originating at any satellite terminal located in this state, 13 except limited-function terminals, whether receiving from that 14 terminal or from a data processing center or other central 15 routing unit. 16 f. (6) A representation and undertaking that the proposed 17 central routing unit is directly connected to every data 18 processing center that is directly connected to a satellite 19 terminal located in this state, and that the proposed central 20 routing unit will provide for direct connection in the 21 future with any data processing center that becomes directly 22 connected to a satellite terminal located in this state. This 23 representation and undertaking is not required of a central 24 routing unit with respect to limited-function terminals. 25 b. The application shall be accompanied by all agreements 26 between the proposed central routing unit and all data 27 processing centers and other central routing units respecting 28 the transmission of transaction data; and a copy of any 29 agreement between the proposed central routing unit and 30 any financial institution establishing a satellite terminal 31 unless that agreement theretofore has been filed with the 32 administrator pursuant to section 527.5. 33 Sec. 138. Section 533.102, subsection 3, Code 2011, is 34 amended to read as follows: 35 -104- LSB 5517HV (2) 84 lh/rj 104/ 129
H.F. 2328 3. a. “Credit union” means a cooperative, nonprofit 1 association, organized or incorporated in accordance with the 2 provisions of this chapter or under the laws of another state 3 or the Federal Credit Union Act, 12 U.S.C. § 1751 et seq., 4 for the purposes of creating a source of credit at a fair and 5 reasonable rate of interest, of encouraging habits of thrift 6 among its members, and of providing an opportunity for its 7 members to use and control their own money on a democratic 8 basis in order to improve their economic and social condition. 9 b. A credit union “credit union” is also a supervised 10 financial organization as that term is defined and used in 11 chapter 537 , the Iowa consumer credit code. 12 Sec. 139. Section 536A.10, Code 2011, is amended to read as 13 follows: 14 536A.10 Issuance of license. 15 1. If the superintendent shall find: 16 1. a. That the financial responsibility, experience, 17 character and general fitness of the applicant and of the 18 officers thereof are such as to command the confidence of the 19 community, and to warrant the belief that the business will be 20 operated honestly, fairly and efficiently within the purpose of 21 this chapter ; 22 2. b. That a reasonable necessity exists for a new 23 industrial loan company in the community to be served; 24 3. c. That the applicant has available for the operation 25 of the business at the specified location paid-in capital and 26 surplus as required by section 536A.8 ; and 27 4. d. That the applicant is a corporation organized for 28 pecuniary profit under the laws of the state of Iowa. 29 2. The superintendent shall approve the application and 30 issue to the applicant a license to engage in the industrial 31 loan business in accordance with the provisions of this 32 chapter . The superintendent shall approve or deny an 33 application for a license within one hundred twenty days from 34 the date of the filing of such application. 35 -105- LSB 5517HV (2) 84 lh/rj 105/ 129
H.F. 2328 Sec. 140. Section 542B.2, Code 2011, is amended to read as 1 follows: 2 542B.2 Terms defined. 3 As used in the chapter, unless the context otherwise 4 requires: 5 1. The “board” “Board” means the engineering and land 6 surveying examining board provided by this chapter . 7 2. “Design coordination” includes the review and 8 coordination of technical submissions prepared by others, 9 including as appropriate and without limitation, consulting 10 engineers, architects, landscape architects, land surveyors, 11 and other professionals working under the direction of the 12 engineer. 13 2. The term “engineering documents” as used in this chapter 14 includes all plans, specifications, drawings, and reports, if 15 the preparation of such documents constitutes or requires the 16 practice of engineering. 17 3. The term “engineer intern” as used in this chapter 18 “Engineer intern” means a person who passes an examination in 19 the fundamental engineering subjects, but does not entitle the 20 person to claim to be a professional engineer. 21 4. “Engineering documents” includes all plans, 22 specifications, drawings, and reports, if the preparation 23 of such documents constitutes or requires the practice of 24 engineering. 25 5. “Engineering surveys” includes all survey activities 26 required to support the sound conception, planning, design, 27 construction, maintenance, and operation of engineered 28 projects, but excludes the surveying of real property for the 29 establishment of land boundaries, rights-of-way, easements, and 30 the dependent or independent surveys or resurveys of the public 31 land survey system. 32 4. 6. The term “in responsible charge” as used in this 33 chapter “In responsible charge” means having direct control of 34 and personal supervision over any land surveying work or work 35 -106- LSB 5517HV (2) 84 lh/rj 106/ 129
H.F. 2328 involving the practice of engineering. One or more persons, 1 jointly or severally, may be in responsible charge. 2 5. a. The practice of “land surveying” includes providing 3 professional services such as consultation, investigation, 4 testimony, evaluation, planning, mapping, assembling, and 5 interpreting reliable scientific measurements and information 6 relative to the location of property lines or boundaries, and 7 the utilization, development, and interpretation of these facts 8 into an orderly survey, plat, or map. The practice of land 9 surveying includes, but is not limited to, the following: 10 (1) Locating, relocating, establishing, reestablishing, 11 setting, or resetting of permanent monumentation for any 12 property line or boundary of any tract or parcel of land. 13 Setting permanent monuments constitutes an improvement to real 14 property. 15 (2) Making any survey for the division or subdivision of any 16 tract or parcel of land. 17 (3) Determination, by the use of the principles of land 18 surveying, of the position for any permanent survey monument or 19 reference point, or setting, resetting, or replacing any survey 20 monument or reference point excluding the responsibility of 21 engineers pursuant to section 314.8 . 22 (4) Creating and writing metes and bounds descriptions as 23 defined in section 354.2 . 24 (5) Geodetic surveying for determination of the size and 25 shape of the earth both horizontally and vertically for the 26 precise positioning of permanent land survey monuments on 27 the earth utilizing angular and linear measurements through 28 spatially oriented spherical geometry. 29 (6) Creation, preparation, or modification of electronic 30 or computerized data, including land information systems and 31 geographical information systems, relative to the performance 32 of the activities identified in subparagraphs (1) through (5). 33 b. This subsection does not prohibit a professional engineer 34 from practicing any aspect of the practice of engineering. A 35 -107- LSB 5517HV (2) 84 lh/rj 107/ 129
H.F. 2328 land surveyor is not prohibited from performing engineering 1 surveys as defined in the practice of engineering. 2 c. A person is construed to be engaged in or offering to be 3 engaged in the practice of land surveying if the person does 4 any of the following: 5 (1) Engages in land surveying. 6 (2) Makes a representation by verbal claim, sign, 7 advertisement, letterhead, card, or other manner that the 8 person is a land surveyor. 9 (3) Uses any title which implies that the person is a land 10 surveyor or that the person is licensed under this chapter . 11 (4) Holds the person’s self out as able to perform, or who 12 does perform, any service or work included in the practice of 13 land surveying. 14 6. 7. The term “land surveying documents” as used in this 15 chapter “Land surveying documents” includes all plats, maps, 16 surveys, and reports, if the preparation thereof constitutes or 17 requires the practice of land surveying. 18 7. 8. The term “land surveyor” as used in this chapter 19 shall mean “Land surveyor” means a person who engages in the 20 practice of land surveying as defined in this section . 21 8. 9. a. “Practice of engineering” as used in this 22 chapter means any service or creative work, the adequate 23 performance of which requires engineering education, training, 24 and experience in the application of special knowledge of the 25 mathematical, physical, and engineering sciences, such as 26 consultation, investigation, evaluation, planning, design and 27 design coordination of engineering works and systems, planning 28 the use of land and water, performing engineering surveys and 29 studies, and the review of construction for the purpose of 30 monitoring compliance with drawings and specifications, any of 31 which embraces such services or creative work, either public 32 or private, in connection with any utilities, structures, 33 buildings, machines, equipment, processes, work systems, 34 projects, and industrial or consumer products or equipment of 35 -108- LSB 5517HV (2) 84 lh/rj 108/ 129
H.F. 2328 a mechanical, electrical, hydraulic, pneumatic, or thermal 1 nature, insofar as they involve safeguarding life, health, or 2 property, and including such other professional services as 3 may be necessary to the planning, progress, and completion of 4 the services identified in this paragraph subsection . “Design 5 coordination” includes the review and coordination of technical 6 submissions prepared by others, including as appropriate and 7 without limitation, consulting engineers, architects, landscape 8 architects, land surveyors, and other professionals working 9 under the direction of the engineer. “Engineering surveys” 10 includes all survey activities required to support the sound 11 conception, planning, design, construction, maintenance, and 12 operation of engineered projects, but excludes the surveying 13 of real property for the establishment of land boundaries, 14 rights-of-way, easements, and the dependent or independent 15 surveys or resurveys of the public land survey system. 16 b. A person is construed to be engaged in the practice of 17 engineering if the person does any of the following: 18 a. (1) Practices any branch of the profession of 19 engineering. 20 b. (2) Makes a representation by verbal claim, sign, 21 advertisement, letterhead, card, or other manner that the 22 person is a professional engineer. 23 c. (3) Uses any title which implies that the person is a 24 professional engineer or that the person is certified under 25 this chapter . 26 d. (4) The person holds the person’s self out as able to 27 perform, or who does perform, any service or work included in 28 the practice of engineering. 29 10. a. “Practice of land surveying” includes providing 30 professional services such as consultation, investigation, 31 testimony, evaluation, planning, mapping, assembling, and 32 interpreting reliable scientific measurements and information 33 relative to the location of property lines or boundaries, and 34 the utilization, development, and interpretation of these facts 35 -109- LSB 5517HV (2) 84 lh/rj 109/ 129
H.F. 2328 into an orderly survey, plat, or map. The practice of land 1 surveying includes but is not limited to the following: 2 (1) Locating, relocating, establishing, reestablishing, 3 setting, or resetting of permanent monumentation for any 4 property line or boundary of any tract or parcel of land. 5 Setting permanent monuments constitutes an improvement to real 6 property. 7 (2) Making any survey for the division or subdivision of any 8 tract or parcel of land. 9 (3) Determination, by the use of the principles of land 10 surveying, of the position for any permanent survey monument or 11 reference point, or setting, resetting, or replacing any survey 12 monument or reference point excluding the responsibility of 13 engineers pursuant to section 314.8. 14 (4) Creating and writing metes and bounds descriptions as 15 defined in section 354.2. 16 (5) Geodetic surveying for determination of the size and 17 shape of the earth both horizontally and vertically for the 18 precise positioning of permanent land survey monuments on 19 the earth utilizing angular and linear measurements through 20 spatially oriented spherical geometry. 21 (6) Creation, preparation, or modification of electronic 22 or computerized data, including land information systems and 23 geographical information systems, relative to the performance 24 of the activities identified in subparagraphs (1) through (5). 25 b. This subsection does not prohibit a professional engineer 26 from practicing any aspect of the practice of engineering. A 27 land surveyor is not prohibited from performing engineering 28 surveys as defined in the practice of engineering. 29 c. A person is construed to be engaged in or offering to be 30 engaged in the practice of land surveying if the person does 31 any of the following: 32 (1) Engages in land surveying. 33 (2) Makes a representation by verbal claim, sign, 34 advertisement, letterhead, card, or other manner that the 35 -110- LSB 5517HV (2) 84 lh/rj 110/ 129
H.F. 2328 person is a land surveyor. 1 (3) Uses any title which implies that the person is a land 2 surveyor or that the person is licensed under this chapter. 3 (4) Holds the person’s self out as able to perform, or who 4 does perform, any service or work included in the practice of 5 land surveying. 6 9. 11. The term “professional engineer” as used in this 7 chapter “Professional engineer” means a person, who, by 8 reason of the person’s knowledge of mathematics, the physical 9 sciences, and the principles of engineering, acquired by 10 professional education or practical experience, is qualified to 11 engage in the practice of engineering. 12 Sec. 141. Section 542B.14, Code 2011, is amended to read as 13 follows: 14 542B.14 General requirements for licensure —— temporary 15 permit to practice engineering. 16 1. Each applicant for licensure as a professional engineer 17 or land surveyor shall have all of the following requirements, 18 respectively, to wit: 19 1. a. As a professional engineer: 20 a. (1) (a) Graduation from a course in engineering of 21 four years or more in a school or college which, in the opinion 22 of the board, will properly prepare the applicant for the 23 examination in fundamental engineering subjects. 24 (2) (b) However, prior to July 1, 1988, in lieu of 25 compliance with subparagraph (1) division (a) , the board may 26 accept eight years’ practical experience which, in the opinion 27 of the board, is of satisfactory character to properly prepare 28 the applicant for the examination in fundamental engineering 29 subjects. 30 (3) (c) Between July 1, 1988, and June 30, 1991, in 31 lieu of compliance with subparagraph (1) division (a) , the 32 board shall require satisfactory completion of a minimum of 33 two years of postsecondary study in mathematics, physical 34 sciences, engineering technology, or engineering at an 35 -111- LSB 5517HV (2) 84 lh/rj 111/ 129
H.F. 2328 institution approved by the board, and may accept six years’ 1 practical experience which, in the opinion of the board, is of 2 satisfactory character to properly prepare the applicant for 3 the examination in fundamental engineering subjects. 4 (4) (d) For applicants who obtained an associate of science 5 degree or a more advanced degree between July 1, 1983, and 6 June 30, 1988, in lieu of compliance with subparagraph (1) 7 division (a) , the board shall only require compliance with the 8 provisions of subparagraph (3) division (c) with regard to 9 areas of study and practical experience. Applicants qualifying 10 under this subparagraph division must meet the requirements of 11 paragraph “b” subparagraph (2) , by June 30, 2001. 12 b. (2) Successfully passing a written, oral, or written 13 and oral examination in fundamental engineering subjects which 14 is designed to show the knowledge of general engineering 15 principles. A person passing the examination in fundamental 16 engineering subjects is entitled to a certificate as an 17 engineer intern. 18 c. (3) In addition to any other requirement, a specific 19 record of four years or more of practical experience in 20 engineering work which is of a character satisfactory to the 21 board. 22 d. (4) Successfully passing a written, oral, or written 23 and oral examination designed to determine the proficiency and 24 qualifications to engage in the practice of engineering. No 25 applicant shall be entitled to take this examination until 26 the applicant shows the necessary practical experience in 27 engineering work. 28 2. b. As a land surveyor: 29 a. (1) (a) Graduation from a course of two years or more 30 in mathematics, physical sciences, mapping and surveying, or 31 engineering in a school or college and six years of practical 32 experience, all of which, in the opinion of the board, 33 will properly prepare the applicant for the examination in 34 fundamental land surveying subjects. 35 -112- LSB 5517HV (2) 84 lh/rj 112/ 129
H.F. 2328 (2) (b) However, prior to July 1, 1988, in lieu of 1 compliance with subparagraph (1) division (a) , the board may 2 accept eight years’ practical experience which, in the opinion 3 of the board, is of satisfactory character to properly prepare 4 the applicant for the examination in fundamental land surveying 5 subjects. 6 b. (2) Successfully passing a written, oral, or written and 7 oral examination in fundamental land surveying subjects which 8 is designed to show the knowledge of general land surveying 9 principles. 10 c. (3) In addition to any other requirement, a specific 11 record of four years or more of practical experience in land 12 surveying work which is of a character satisfactory to the 13 board. 14 d. (4) Successfully passing a written, oral, or written 15 and oral examination designed to determine the proficiency and 16 qualifications to engage in the practice of land surveying. 17 No applicant shall be entitled to take this examination until 18 the applicant shows the necessary practical experience in land 19 surveying work. 20 2. The board may establish by rule a temporary permit and 21 a fee to permit an engineer to practice for a period of time 22 without applying for licensure. 23 Sec. 142. Section 548.112, Code 2011, is amended to read as 24 follows: 25 548.112 Infringement. 26 1. Subject to section 548.116 , a person shall not do any of 27 the following: 28 1. a. Use, without the consent of the registrant, any 29 reproduction, counterfeit, copy, or colorable imitation of a 30 mark registered under this chapter in connection with the sale, 31 distribution, offering for sale, or advertising of any goods or 32 services on or in connection with which such use is likely to 33 cause confusion or mistake, or to deceive as to the source of 34 origin of such goods or services. 35 -113- LSB 5517HV (2) 84 lh/rj 113/ 129
H.F. 2328 2. b. Reproduce, counterfeit, copy, or colorably imitate 1 any such mark and apply such reproduction, counterfeit, copy, 2 or colorable imitation to labels, signs, prints, packages, 3 wrappers, receptacles, or advertisements intended to be used 4 upon or in connection with the sale or other distribution in 5 this state of such goods or services. 6 2. The person shall be liable in a civil action by the 7 registrant for any or all of the remedies provided in section 8 548.114 , except that under subsection 2 1, paragraph “b” , the 9 registrant shall not be entitled to recover profits or damages 10 unless the acts have been committed with the intent to cause 11 confusion or mistake or to deceive. 12 Sec. 143. Section 551A.1, subsection 4, Code 2011, is 13 amended to read as follows: 14 4. a. “Franchise” means a contract between a seller and a 15 purchaser where the parties agree to all of the following: 16 a. (1) A franchisee is granted the right to engage in 17 the business of offering, selling, or distributing goods or 18 services under a marketing plan prescribed in substantial part 19 by a franchisor. 20 b. (2) The operation of the franchisee’s business 21 pursuant to such a plan is substantially associated with the 22 franchisor’s business and trademark, service mark, trade name, 23 logotype, advertising, or other commercial symbol designating 24 the franchisor or its affiliate. 25 b. For the purposes of this subsection , “franchisee” : 26 (1) “Franchisee” means a person to whom a franchise is 27 granted and “franchisor” . 28 (2) “Franchisor” means a person who grants a franchise. 29 Sec. 144. Section 554.2103, subsection 3, Code 2011, is 30 amended to read as follows: 31 3. “Control” as provided in section 554.7106 and the The 32 following definitions in other Articles apply to this Article : 33 a. “Check” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3104 34 b. “Consignee” . . . . . . . . . . . . . . . . . . . . . Section 554.7102 35 -114- LSB 5517HV (2) 84 lh/rj 114/ 129
H.F. 2328 c. “Consignor” . . . . . . . . . . . . . . . . . . . . . Section 554.7102 1 d. “Consumer goods” . . . . . . . . . . . . . . . . Section 554.9102 2 e. “Control” . . . . . . . . . . . . . . . . . . . . . . . Section 554.7106 3 f. “Dishonor” . . . . . . . . . . . . . . . . . . . . . . Section 554.3502 4 g. “Draft” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3104 5 Sec. 145. Section 554.4104, subsection 3, Code 2011, is 6 amended to read as follows: 7 3. “Control” as provided in section 554.7106 and the The 8 following definitions in other Articles apply to this Article : 9 a. “Acceptance” . . . . . . . . . . . . . . . . . . . . Section 554.3409 10 b. “Alteration” . . . . . . . . . . . . . . . . . . . . Section 554.3407 11 c. “Cashier’s check” . . . . . . . . . . . . . . . Section 554.3104 12 d. “Certificate of deposit” . . . . . . . . Section 554.3104 13 e. “Certified check” . . . . . . . . . . . . . . . Section 554.3409 14 f. “Check” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3104 15 g. “Control” . . . . . . . . . . . . . . . . . . . . . . . Section 554.7106 16 h. “Holder in due course” . . . . . . . . . . Section 554.3302 17 i. “Instrument” . . . . . . . . . . . . . . . . . . . . Section 554.3104 18 j. “Notice of dishonor” . . . . . . . . . . . . Section 554.3503 19 k. “Order” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3103 20 l. “Ordinary care” . . . . . . . . . . . . . . . . . Section 554.3103 21 m. “Person entitled to enforce” . . . Section 554.3301 22 n. “Presentment” . . . . . . . . . . . . . . . . . . . Section 554.3501 23 o. “Promise” . . . . . . . . . . . . . . . . . . . . . . . Section 554.3103 24 p. “Prove” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3103 25 q. “Teller’s check” . . . . . . . . . . . . . . . . Section 554.3104 26 r. “Unauthorized signature” . . . . . . . . Section 554.3403 27 Sec. 146. Section 554.5104, Code 2011, is amended to read 28 as follows: 29 554.5104 Formal requirements. 30 A letter of credit, confirmation, advice, transfer, 31 amendment, or cancellation may be issued in any form that is 32 a record and is authenticated (i) by a signature or (ii) in 33 accordance with the agreement of the parties or the standard 34 practice referred to in section 554.5108, subsection 5 . 35 -115- LSB 5517HV (2) 84 lh/rj 115/ 129
H.F. 2328 Sec. 147. Section 554.9102, subsection 2, Code 2011, is 1 amended to read as follows: 2 2. Definitions in other Articles. “Control” as provided in 3 section 554.7106 and the The following definitions in other 4 Articles apply to this Article : 5 a. “Applicant” . . . . . . . . . . . . . . . . . . . . . Section 554.5102 6 b. “Beneficiary” . . . . . . . . . . . . . . . . . . . Section 554.5102 7 c. “Broker” . . . . . . . . . . . . . . . . . . . . . . . . Section 554.8102 8 d. “Certificated security” . . . . . . . . . Section 554.8102 9 e. “Check” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3104 10 f. “Clearing corporation” . . . . . . . . . . Section 554.8102 11 g. “Contract for sale” . . . . . . . . . . . . . Section 554.2106 12 h. “Control” . . . . . . . . . . . . . . . . . . . . . . . Section 554.7106 13 i. “Customer” . . . . . . . . . . . . . . . . . . . . . . Section 554.4104 14 j. “Entitlement holder” . . . . . . . . . . . . Section 554.8102 15 k. “Financial asset” . . . . . . . . . . . . . . . Section 554.8102 16 l. “Holder in due course” . . . . . . . . . . Section 554.3302 17 m. “Issuer” (with respect to a letter 18 of credit or letter-of-credit right) . . Section 554.5102 19 n. “Issuer” (with respect 20 to a security) . . . . . . . . . . . . . . . . . . . . . . . . Section 554.8201 21 o. “Issuer” (with respect 22 to documents of title) . . . . . . . . . . . . . . . . Section 554.7102 23 p. “Lease” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.13103 24 q. “Lease agreement” . . . . . . . . . . . . . . . Section 554.13103 25 r. “Lease contract” . . . . . . . . . . . . . . . . Section 554.13103 26 s. “Leasehold interest” . . . . . . . . . . . . Section 554.13103 27 t. “Lessee” . . . . . . . . . . . . . . . . . . . . . . . . Section 554.13103 28 u. “Lessee in ordinary 29 course of business” . . . . . . . . . . . . . . . . . . . Section 554.13103 30 v. “Lessor” . . . . . . . . . . . . . . . . . . . . . . . . Section 554.13103 31 w. “Lessor’s residual interest” . . . . Section 554.13103 32 x. “Letter of credit” . . . . . . . . . . . . . . Section 554.5102 33 y. “Merchant” . . . . . . . . . . . . . . . . . . . . . . Section 554.2104 34 z. “Negotiable instrument” . . . . . . . . . Section 554.3104 35 -116- LSB 5517HV (2) 84 lh/rj 116/ 129
H.F. 2328 aa. “Nominated person” . . . . . . . . . . . . . Section 554.5102 1 ab. “Note” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3104 2 ac. “Proceeds of a letter of credit” . Section 554.5114 3 ad. “Prove” . . . . . . . . . . . . . . . . . . . . . . . . Section 554.3103 4 ae. “Sale” . . . . . . . . . . . . . . . . . . . . . . . . . Section 554.2106 5 af. “Securities account” . . . . . . . . . . . Section 554.8501 6 ag. “Securities intermediary” . . . . . . Section 554.8102 7 ah. “Security” . . . . . . . . . . . . . . . . . . . . . Section 554.8102 8 ai. “Security certificate” . . . . . . . . . Section 554.8102 9 aj. “Security entitlement” . . . . . . . . . Section 554.8102 10 ak. “Uncertificated security” . . . . . . Section 554.8102 11 DIVISION III 12 INTERNAL REFERENCE CHANGES 13 Sec. 148. Section 225C.28B, subsection 2, Code 2011, is 14 amended to read as follows: 15 2. Insurance protection. Pursuant to section 507B.4, 16 subsection 7 3, paragraph “g” , a person or designated group of 17 persons shall not be denied insurance coverage by reason of 18 mental retardation, a developmental disability, brain injury, 19 or chronic mental illness. 20 Sec. 149. Section 225C.29, Code 2011, is amended to read as 21 follows: 22 225C.29 Compliance. 23 Except for a violation of section 225C.28B, subsection 24 2 , the sole remedy for violation of a rule adopted by the 25 commission to implement sections 225C.25 through 225C.28B shall 26 be by a proceeding for compliance initiated by request to the 27 division pursuant to chapter 17A . Any decision of the division 28 shall be in accordance with due process of law and is subject 29 to appeal to the Iowa district court pursuant to sections 30 17A.19 and 17A.20 by any aggrieved party. Either the division 31 or a party in interest may apply to the Iowa district court 32 for an order to enforce the decision of the division. Any 33 rules adopted by the commission to implement sections 225C.25 34 through 225C.28B do not create any right, entitlement, property 35 -117- LSB 5517HV (2) 84 lh/rj 117/ 129
H.F. 2328 or liberty right or interest, or private cause of action for 1 damages against the state or a political subdivision of the 2 state or for which the state or a political subdivision of the 3 state would be responsible. Any violation of section 225C.28B, 4 subsection 2 , shall solely be subject to the enforcement by the 5 commissioner of insurance and penalties granted by chapter 507B 6 for a violation of section 507B.4, subsection 7 3, paragraph 7 “g” . 8 Sec. 150. Section 455B.473, subsection 4, Code Supplement 9 2011, is amended to read as follows: 10 4. An owner or operator of a storage tank described in 11 section 455B.471, subsection 11 , paragraph “a” “b” , subparagraph 12 (1), subparagraph division (a), which brings the tank into 13 use after July 1, 1987, shall notify the department of the 14 existence of the tank within thirty days. The registration 15 of the tank shall be accompanied by a fee of ten dollars to 16 be deposited in the storage tank management account. A tank 17 which is existing before July 1, 1987, shall be reported to the 18 department by July 1, 1989. Tanks under this section installed 19 on or following July 1, 1987, shall comply with underground 20 storage tank regulations adopted by rule by the department. 21 Sec. 151. Section 491.5, subsection 8, Code 2011, is amended 22 to read as follows: 23 8. Any provision eliminating or limiting the personal 24 liability of a director to the corporation or its shareholders 25 or members for money damages as provided in section 490.202, 26 subsection 2 , paragraph “d” , except that section 490.202, 27 subsection 2 , paragraph “d” , subparagraph (1) , subparagraph (3) 28 division (c) , shall have no application. 29 Sec. 152. Section 507B.7, subsection 1, paragraph c, Code 30 Supplement 2011, is amended to read as follows: 31 c. Payment of interest at the rate of ten percent per 32 annum if the commissioner finds that the insurer failed to pay 33 interest as required under section 507B.4, subsection 16 3, 34 paragraph “p” . 35 -118- LSB 5517HV (2) 84 lh/rj 118/ 129
H.F. 2328 Sec. 153. Section 512B.13, Code 2011, is amended to read as 1 follows: 2 512B.13 Institutions. 3 A society may create, maintain, and operate, or may 4 establish organizations to operate, not-for-profit institutions 5 to further the purposes permitted by section 512B.6, subsection 6 1 , paragraph “b” “a” , subparagraph (2) . The institutions may 7 furnish services free or at a reasonable charge. Any real or 8 personal property owned, held, or leased by the society for 9 this purpose shall be reported in every annual statement. A 10 not-for-profit institution so established is a charitable 11 institution with all the rights, benefits, and privileges given 12 to charitable institutions under the Constitution and laws of 13 the State of Iowa. The commissioner may adopt appropriate 14 rules and reporting requirements. 15 Sec. 154. Section 515E.4, subsection 4, Code Supplement 16 2011, is amended to read as follows: 17 4. Compliance with unfair claim settlement practices law. A 18 risk retention group, its agents, and representatives, shall 19 comply with the unfair claim settlement practices law in 20 section 507B.4, subsection 10 3, paragraph “j” . 21 Sec. 155. Section 524.302, subsection 2, paragraph c, Code 22 2011, is amended to read as follows: 23 c. A provision eliminating or limiting the personal 24 liability of a director to the corporation or its shareholders 25 for monetary damages for breach of fiduciary duty as a 26 director, provided that the provision does not eliminate 27 or limit the liability of a director for any breach of 28 the director’s duty of loyalty to the corporation or its 29 shareholders, for acts or omissions not in good faith or which 30 involve intentional misconduct or a knowing violation of law, 31 for any transaction from which the director derives an improper 32 personal benefit, or under section 524.605, subsection 1 , 33 paragraph “a” or 2 “b” . A provision shall not eliminate or 34 limit the liability of a director for any act or omission 35 -119- LSB 5517HV (2) 84 lh/rj 119/ 129
H.F. 2328 occurring prior to the date when the provision in the articles 1 of incorporation becomes effective. 2 Sec. 156. Section 536A.30, subsection 2, Code 2011, is 3 amended to read as follows: 4 2. Section 536A.10 , subsections 2, 3, and 4 subsection 1, 5 paragraphs “b” , “c” , and “d” . 6 DIVISION IV 7 DIRECTIVES 8 Sec. 157. CODE EDITOR DIRECTIVES. 9 1. Sections 175.6, subsection 12; and 331.652, subsection 10 4, Code 2011, are amended by striking the word “co-operation” 11 and inserting in lieu thereof the word “cooperation”. 12 2. Sections 28D.1, 321.6, and 341A.17, Code 2011, are 13 amended by striking the word “co-operation” and inserting in 14 lieu thereof the word “cooperation”. 15 3. Sections 13A.9, subsection 2; 29C.1, subsection 3; 16 169.19, subsection 5; 175.6, subsection 5; 273.9, subsection 2; 17 and 403.12, subsection 1, Code 2011, are amended by striking 18 the word “co-operate” and inserting in lieu thereof the word 19 “cooperate”. 20 4. Sections 177A.4, 199.14, 249.12, and 321.6, Code 2011, 21 are amended by striking the word “co-operate” and inserting in 22 lieu thereof the word “cooperate”. 23 5. Section 179.1, subsection 5, Code 2011, is amended by 24 striking the word “co-operatives” and inserting in lieu thereof 25 the word “cooperatives”. 26 6. Sections 185.1, subsection 5; 185C.1, subsection 7; 27 215A.1, subsection 4; and 419.1, subsection 4, Code 2011, are 28 amended by striking the word “co-operative” and inserting in 29 lieu thereof the word “cooperative”. 30 7. Sections 263B.3, 456A.29, and 456B.10, Code 2011, are 31 amended by striking the word “co-operative” and inserting in 32 lieu thereof the word “cooperative”. 33 8. Section 275.56, Code 2011, is amended by striking the 34 word “re-employing” and inserting in lieu thereof the word 35 -120- LSB 5517HV (2) 84 lh/rj 120/ 129
H.F. 2328 “reemploying”. 1 9. Section 275.56, Code 2011, is amended by striking the 2 word “re-employed” and inserting in lieu thereof the word 3 “reemployed”. 4 10. Sections 341A.6, subsection 6; and 411.21, subsection 5 3, Code 2011, are amended by striking the word “re-employed” 6 and inserting in lieu thereof the word “reemployed”. 7 11. The Code editor is directed to number, renumber, 8 designate, or redesignate to eliminate unnumbered paragraphs 9 within sections 491.5, 491.111, 496C.21, 499.47C, 499.67, 10 499A.2A, 501.617, 507A.3, 507C.12, 510.2, 511.10, 514B.4, 11 514B.14, 514B.20, 515.70, 515F.3, 515G.3, 518.11, 524.224, 12 524.604, 524.801, 524.825, 524.1102, 524.1508, 538.5, 544A.11, 13 544A.21, 544A.25, 544B.9, 544B.14, 544C.3, 548.103, 548.113, 14 552.5, and 552.12, Code 2011, in accordance with established 15 Code section hierarchy and correct internal references in the 16 Code and in any enacted Iowa Acts, as necessary. 17 12. The Code editor is directed to number, renumber, 18 designate, or redesignate to eliminate unnumbered paragraphs 19 within section subunits in sections 490.120, subsection 20 7; 490.121, subsection 1; 490.744, subsection 4; 490.824, 21 subsection 4; 490.1301, subsection 4; 490.1701, subsection 2; 22 490.1701, subsection 3, paragraph “b”; 496B.9, subsection 3, 23 paragraph “b”; 499.30, subsection 2, paragraph “a”; 499.66, 24 subsection 2; 500.3, subsection 2; 501A.206, subsection 1; 25 501A.502, subsection 3; 501A.715, subsection 3; 501A.904, 26 subsection 7; 501A.906, subsection 2; 501A.1003, subsection 27 4, paragraph “b”; 502.321B, subsection 5; 502.509, subsection 28 13B; 502A.1, subsection 4; 504.202, subsection 2, paragraph 29 “d”; 504.503, subsection 1; 504.635, subsection 4; 504.1509, 30 subsection 1; 507.10, subsection 4, paragraph “b”, subparagraph 31 (1); 508.36, subsection 2, paragraph “d”; 508.36, subsection 32 5, paragraph “c”, subparagraph (1), subparagraph division (c), 33 subparagraph subdivision (v); 508.36, subsections 7 and 9; 34 508.37, subsection 6, paragraph “a”; 508.38, subsection 2; 35 -121- LSB 5517HV (2) 84 lh/rj 121/ 129
H.F. 2328 509B.3, subsection 4; 513B.4, subsection 2; 513C.3, subsection 1 15; 513C.7, subsection 1; 513C.10, subsection 2; 514C.4, 2 subsection 1; 514D.5, subsection 2; 515.12, subsection 5; 3 515.48, subsections 1 and 8; 515.109, subsection 2; 515A.18, 4 subsection 3; 515B.5, subsection 1, paragraph “c”; 515B.6, 5 subsection 1; 515D.2, subsection 2; 515F.5, subsection 1; 6 515F.13, subsection 2, paragraph “d”; 516A.2, subsection 1; 7 516E.3, subsection 1, paragraph “c”; 516E.3, subsection 2, 8 paragraph “b”; 518C.6, subsection 1, paragraph “c”; 518C.7, 9 subsection 1; 519A.3, subsection 3; 519A.4, subsection 1; 10 519A.9, subsection 2; 521A.5, subsection 3, paragraphs “a” and 11 “b”; 521A.14, subsection 7; 521B.3, subsection 3; 521C.11, 12 subsection 1; 521D.2, subsection 3; 521E.10, subsection 13 1; 522B.14, subsections 6, 7, and 8; 523C.5, subsection 1; 14 523D.3, subsection 1, paragraph “n”; 523D.5, subsection 3; 15 523G.6, subsection 3; 523I.316, subsection 3, paragraph “d”; 16 523I.508, subsections 2 and 3; 523I.812, subsection 2; 524.103, 17 subsection 17; 524.606, subsection 2; 524.1403, subsection 18 2; 527.5, subsection 3; 536A.20, subsection 3; 536A.25, 19 subsection 2; 537.1301, subsection 45; 537.2501, subsection 1, 20 paragraph “f”; 537.2510, subsection 2, paragraph “a”; 537.3612, 21 subsection 4; 537.5110, subsection 2; 537.5201, subsection 1; 22 537A.10, subsections 9 and 11; 537B.3, subsection 2; 543C.4, 23 subsection 5; 546.10, subsection 3; 548.102, subsection 5; 24 551A.3, subsection 2; 551A.4, subsection 1, paragraph “b”; 25 552A.2, subsection 6; 554.2103, subsection 2; 554.4104, 26 subsection 2; 554.5102, subsection 2; 554.8102, subsection 1, 27 paragraph “i”; 554.8102, subsection 2; 554.8503, subsection 28 4; 554.12105, subsections 2 and 3; and 554.13103, subsections 29 2 and 3, Code and Code Supplement 2011, in accordance with 30 established Code section hierarchy and correct internal 31 references in the Code and in any enacted Iowa Acts, as 32 necessary. 33 DIVISION V 34 EFFECTIVE DATE PROVISIONS 35 -122- LSB 5517HV (2) 84 lh/rj 122/ 129
H.F. 2328 Sec. 158. EFFECTIVE DATE. The section of this Act amending 1 602.4201, subsection 3, paragraph “h”, Code 2011, as amended by 2 2011 Iowa Acts, ch. 121, section 60, takes effect July 1, 2012. 3 EXPLANATION 4 This bill makes Code changes and corrections that are 5 considered to be nonsubstantive and noncontroversial, in 6 addition to style changes. Changes made include updating 7 or correcting names of and references to public and private 8 entities and funds, correcting internal Code references 9 and terminology, updating United States Code and Code of 10 Federal Regulations references, making various corrections 11 to spelling and grammar, and renumbering and reorganizing 12 various provisions to eliminate unnumbered paragraphs and 13 facilitate citation. The Code sections in which the technical, 14 grammatical, and other nonsubstantive changes are made include 15 the following: 16 DIVISION I. Code section 6B.14: Corrects grammar in 17 language relating to meetings of the compensation commission 18 regarding appraisement of property sought to be condemned under 19 eminent domain procedures. 20 Code sections 8F.2, 96.21, 97C.5, 97C.10, 97C.15, 451.1, 21 509B.1, 513C.3, 514G.103, 634A.1, and 714G.8: Abbreviates the 22 word “Title” in a references to federal Acts in provisions 23 regarding government accountability and unemployment 24 compensation and the federal Social Security Enabling Act. 25 Code sections 10B.4 and 15.104: Adds, to correct hypertext 26 linkage, the words “Code 2011” after references to the former 27 Code chapter that governed life sciences enterprises. Code 28 chapter 10C was repealed by 2011 Iowa Acts, chapter 118, 29 section 35. 30 Code section 12.87: Strikes “as follows:” and inserts a 31 reference to paragraph “b” in paragraph “a” of this provision 32 relating to the bonding authority of the treasurer of state, to 33 conform the format to other provisions in the Code. 34 Code section 15.117A: Corrects the grammar by supplying 35 -123- LSB 5517HV (2) 84 lh/rj 123/ 129
H.F. 2328 the missing word “of” in this provision relating to the 1 annual review of economic development programs by the economic 2 development authority. 3 Code section 15.247: Redesignates paragraphs to set apart 4 provisions relating to term limits for members of the targeted 5 small business financial assistance board from those relating 6 to conflicts of interest. 7 Code section 15A.9: Numbers unnumbered paragraphs within 8 this provision relating to designation of sites as quality jobs 9 enterprise zones. 10 Code sections 34A.15 and 80B.11C: Updates references by 11 name to the organizations now called the Iowa professional 12 fire fighters, the Iowa peace officers association, 13 and the association of public-safety communications 14 officials-international, inc., in provisions relating to the 15 E911 communications council and telecommunicator training 16 standards. 17 Code sections 80B.11A, 80E.2, 356.36, and 356.37: Updates 18 references by name to the organization now called the Iowa 19 peace officers association in provisions relating to the 20 membership of the drug policy advisory council, jail and jailer 21 training standards, and a report on confinement and detention 22 needs of jails and municipal holding facilities. 23 Code section 96.27: Strikes an incorrect self-reference 24 in a reference to Code section 96.25 in language relating 25 to approval of purchases of premises with funds granted 26 or credited under the federal Social Security Act or the 27 Wagner-Peyser Act. 28 Code section 99D.11: Corrects references to the method of 29 wagering known as “advance deposit” wagering in the provision 30 governing licensees of horse or dog racetracks and authorizing 31 the acceptance of advance deposit wagers. 32 Code sections 100B.1 and 411.36: Updates references by 33 name to the organization now called the Iowa professional fire 34 fighters in provisions regarding the state fire service and 35 -124- LSB 5517HV (2) 84 lh/rj 124/ 129
H.F. 2328 emergency response council and the board of trustees for the 1 statewide fire and police retirement system. 2 Code section 105.2: Changes “refrigerated equipment” to 3 “refrigeration equipment” within the definition of “hydronic” 4 in the Code chapter on the licensing of plumbers, mechanical 5 professionals, and contractors. 6 Code sections 124.401, 161G.3, and 456A.33B: Corrects 7 the spelling of the chemical name “phosphorus” in provisions 8 relating to controlled substances, the Mississippi river basin 9 health watersheds initiative, and lake restoration. 10 Code section 135.105: Corrects the spelling of the word 11 “specialty” within language describing the duty of the 12 department of public health to coordinate childhood lead 13 poisoning prevention programs with other entities and programs. 14 Code sections 135.159, 225B.3, 225C.6, 231E.4, 249A.4B, 15 and 256.35A: Updates references by name to the organization 16 now called the Iowa developmental disabilities council in 17 provisions regarding the membership of the medical home 18 system advisory council, the prevention of disabilities 19 policy council, the medical assistance advisory council, and 20 the Iowa autism council, and the duties of the mental health 21 and disability services commission and the state office of 22 substitute decision maker. 23 Code sections 162.20 and 455B.171: Completes Code of 24 Federal Regulations references in provisions regarding the 25 sterilization of dogs and cats and sewage sludge. 26 Code section 241.3: Corrects a reference to the office 27 on the status of women of the department of human rights in 28 a provision regarding the provision of services to displaced 29 homemakers by the department of human services. 30 Code section 256.32: Corrects a reference by name to the 31 postsecondary agriculture student organization of Iowa in a 32 provision establishing the advisory council for agricultural 33 education. 34 Code section 256C.5: Adds the words “Code 2011” after a 35 -125- LSB 5517HV (2) 84 lh/rj 125/ 129
H.F. 2328 reference to 256C.6, which was repealed in 2011, in language 1 relating to funding for the preschool foundation aid program. 2 Code sections 260H.2 and 260H.8: Corrects two references by 3 name to the department of workforce development in the pathways 4 for academic career and employment Act chapter. 5 Code sections 273.2 and 273.3: Rewrites two citation series 6 to eliminate internal self-references in provisions relating 7 to the powers and duties of area education agencies and area 8 education agency boards. 9 Code section 280.13C: Renumbers, reorganizes, and places 10 definitions in alphabetical order in language relating to 11 school policies on brain injury and student participation in 12 extracurricular interscholastic activities. 13 Code sections 313.3, 410.1, and 451.1: Updates state and 14 federal Acts citations to the current Code style and format in 15 provisions relating to federal highway fund revenue, police and 16 fire fighter pension funds, and state estate taxes. 17 Code sections 331.512 and 331.559: Corrects the name 18 of the brucellosis and tuberculosis eradication fund in 19 provisions relating to levy of taxes for the fund. The fund 20 was renamed and placed under the jurisdiction of the department 21 of agriculture and land stewardship in 1983 Iowa Acts, chapter 22 123. 23 Code section 403.21: Strikes an extraneous “and” in a 24 series in language relating to communications between community 25 colleges and the economic development authority regarding new 26 jobs training agreements. 27 Code section 437A.3: Renumbers to eliminate unnumbered 28 paragraphs within the definitions of “local amount” and “major 29 addition” in the definitions section for the chapter on taxes 30 on electricity and natural gas providers. 31 Code sections 452A.5 and 452A.8: Renumbers to eliminate 32 unnumbered paragraphs within these provisions relating to motor 33 fuel and special fuel taxes. 34 Code section 453A.13: Eliminates redundant language and 35 -126- LSB 5517HV (2) 84 lh/rj 126/ 129
H.F. 2328 adds punctuation to a series in language relating to fees for 1 cigarette distributor, wholesaler, and retailer permits. 2 Code section 455B.261: Splits a paragraph and renumbers 3 within a definition of the term “established average minimum 4 flow” in the definitions section that relates to water 5 allocation and use to distinguish the separate definition of 6 “average minimum flow”. 7 Code section 455B.423: Adds the word “to” to conform the 8 grammar of the subparagraph regarding hazardous waste disposal 9 agreements to the grammar of the rest of the paragraph. 10 Code section 455B.471: Renumbers within a definition of 11 “underground storage tank” to group together the provisions 12 that describe the tanks and other holding devices that do not 13 fall within the definition. 14 Code section 455B.474: Corrects internal references within 15 provisions regarding corrective actions by owners of property 16 on which there has been a release of a regulated substance from 17 an underground storage tank and establishment of financial 18 responsibility by tank owners. 19 Code section 462A.52: Corrects a citation to an Iowa Act by 20 adding the word “Iowa” in this provision relating to a report 21 by the department of natural resources on programs to control 22 aquatic invasive species and for the enforcement of navigation 23 and water safety laws. 24 Code section 466B.3: Completes a reference to the official 25 title of the secretary of agriculture in language describing 26 the membership of the water resources coordinating council. 27 Code section 468.174: Numbers and letters paragraphs to 28 provide hierarchical Code structure to language relating 29 to drainage district membership fees and annual dues for 30 membership in the national drainage association. 31 Code section 476.1: Redesignates unnumbered paragraphs 32 and subsections to conform this provision relating to the 33 regulatory authority of the utilities board to current Code 34 hierarchy and format. 35 -127- LSB 5517HV (2) 84 lh/rj 127/ 129
H.F. 2328 Code section 476.1D: Corrects an internal reference by 1 changing the word “paragraph” to “subparagraph” within a 2 provision relating to extensions of utility board retail 3 rate jurisdiction over increases in residential and business 4 telephone rates. 5 Code sections 499.47B, 499.64, 501.203, 501.204, 501.601, 6 and 501.603: Adds the word “vote” after the word “which” in 7 nearly identical language in each of these Code provisions 8 which describe the majority requirements that must be met 9 in order for cooperatives to engage in various types of 10 activities. 11 Code section 501.614: Rewrites by replacing the words “in 12 which” with “and” and adding “in the voting” at the end of 13 language relating to the majority requirements that must be 14 met in order for a cooperative to approve a plan of merger or 15 consolidation. 16 Code section 524.221: Corrects a typographical error in a 17 language relating to records of federally chartered savings and 18 loan associations. 19 Code section 558.66: Adds the missing word “in” to correct 20 a clerical error in language relating to instruments used to 21 update the county transfer books and index. 22 2011 Iowa Acts, chapter 121, section 60: Corrects a singular 23 article and plural noun disagreement within a future amendment 24 to Code section 602.4201, effective July 1, 2012, to language 25 regarding involuntary commitment proceedings for persons with 26 alcohol or chemical dependency disorders. 27 Code section 717.5: Adds the missing word “of” to correct 28 a clerical error in language relating to the maintaining and 29 disposal of neglected livestock that has been rescued by local 30 authorities. 31 DIVISION II. The Code sections in this division are amended 32 by numbering, renumbering, designating, or redesignating 33 provisions within volume V of the Code, and by changing 34 textual references as necessary. The purposes of the Code 35 -128- LSB 5517HV (2) 84 lh/rj 128/ 129
H.F. 2328 changes are to conform the Code provisions to existing Code 1 section hierarchy, to eliminate “unanchored” unnumbered 2 paragraphs within the Code sections, to facilitate Code section 3 readability, and to facilitate citation to those Code sections. 4 DIVISION III. This division contains corrections to 5 internal references to Code sections that are numbered, 6 renumbered, designated, or redesignated in division II of this 7 bill. 8 DIVISION IV. This division contains Code editor directives 9 to correct hyphenation in the words “cooperation”, “cooperate”, 10 “cooperative”, “reemploying”, and “reemployed” and to number, 11 renumber, designate, or redesignate Code provisions to 12 eliminate “unanchored” unnumbered paragraphs in Code provisions 13 in volume V of the Code that do not require any additional 14 textual reference corrections. 15 DIVISION V. This division contains an effective date 16 provision relating to a corrective change to 2011 Iowa Acts, 17 chapter 121, section 60, that is contained in division I of the 18 bill. 19 -129- LSB 5517HV (2) 84 lh/rj 129/ 129