House Study Bill 606 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ANDERSON) 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 5517HC (12) 84 lh/rj
H.F. _____ 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 5517HC (12) 84 lh/rj 1/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 2/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 3/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 4/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 5/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 6/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 7/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 8/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 9/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 10/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 11/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 12/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 13/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 14/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 15/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 16/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 17/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 18/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 19/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 20/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 21/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 22/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 23/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 24/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 25/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 26/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 27/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 28/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 29/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 30/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 31/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 32/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 33/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 34/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 35/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 36/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 37/ 129
H.F. _____ 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 “d” 7 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 5517HC (12) 84 lh/rj 38/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 39/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 40/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 41/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 42/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 43/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 44/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 45/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 46/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 47/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 48/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 49/ 129
H.F. _____ 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 5517HC (12) 84 lh/rj 50/ 129
H.F. _____ life in the rates charged for any