House Study Bill 589 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BILL) A BILL FOR An Act relating to veterans and military service members and 1 including appropriations and retroactive applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5358XL (25) 85 aw/sc

S.F. _____ H.F. _____ DIVISION I 1 TITLE 2 Section 1. TITLE. This Act shall be known as the “Home Base 3 Iowa Act”. 4 DIVISION II 5 RETIREMENT PAY TAX EXEMPTION 6 Sec. 2. Section 422.5, subsection 3, paragraph a, Code 2014, 7 is amended to read as follows: 8 a. The tax shall not be imposed on a resident or nonresident 9 whose net income, as defined in section 422.7 , is thirteen 10 thousand five hundred dollars or less in the case of married 11 persons filing jointly or filing separately on a combined 12 return, heads of household, and surviving spouses or nine 13 thousand dollars or less in the case of all other persons; 14 but in the event that the payment of tax under this division 15 would reduce the net income to less than thirteen thousand five 16 hundred dollars or nine thousand dollars as applicable, then 17 the tax shall be reduced to that amount which would result 18 in allowing the taxpayer to retain a net income of thirteen 19 thousand five hundred dollars or nine thousand dollars as 20 applicable. The preceding sentence does not apply to estates 21 or trusts. For the purpose of this subsection , the entire net 22 income, including any part of the net income not allocated 23 to Iowa, shall be taken into account. For purposes of this 24 subsection , net income includes all amounts of pensions or 25 other retirement income , except for military retirement pay 26 excluded under section 422.7, subsection 31A, paragraph “a” , 27 received from any source which is not taxable under this 28 division as a result of the government pension exclusions in 29 section 422.7 , or any other state law. If the combined net 30 income of a husband and wife exceeds thirteen thousand five 31 hundred dollars, neither of them shall receive the benefit 32 of this subsection , and it is immaterial whether they file a 33 joint return or separate returns. However, if a husband and 34 wife file separate returns and have a combined net income of 35 -1- LSB 5358XL (25) 85 aw/sc 1/ 21

S.F. _____ H.F. _____ thirteen thousand five hundred dollars or less, neither spouse 1 shall receive the benefit of this paragraph, if one spouse has 2 a net operating loss and elects to carry back or carry forward 3 the loss as provided in section 422.9, subsection 3 . A person 4 who is claimed as a dependent by another person as defined in 5 section 422.12 shall not receive the benefit of this subsection 6 if the person claiming the dependent has net income exceeding 7 thirteen thousand five hundred dollars or nine thousand dollars 8 as applicable or the person claiming the dependent and the 9 person’s spouse have combined net income exceeding thirteen 10 thousand five hundred dollars or nine thousand dollars as 11 applicable. 12 Sec. 3. Section 422.5, subsection 3B, paragraph a, Code 13 2014, is amended to read as follows: 14 a. The tax shall not be imposed on a resident or nonresident 15 who is at least sixty-five years old on December 31 of 16 the tax year and whose net income, as defined in section 17 422.7 , is thirty-two thousand dollars or less in the case 18 of married persons filing jointly or filing separately on a 19 combined return, heads of household, and surviving spouses or 20 twenty-four thousand dollars or less in the case of all other 21 persons; but in the event that the payment of tax under this 22 division would reduce the net income to less than thirty-two 23 thousand dollars or twenty-four thousand dollars as applicable, 24 then the tax shall be reduced to that amount which would result 25 in allowing the taxpayer to retain a net income of thirty-two 26 thousand dollars or twenty-four thousand dollars as applicable. 27 The preceding sentence does not apply to estates or trusts. 28 For the purpose of this subsection , the entire net income, 29 including any part of the net income not allocated to Iowa, 30 shall be taken into account. For purposes of this subsection , 31 net income includes all amounts of pensions or other retirement 32 income , except for military retirement pay excluded under 33 section 422.7, subsection 31A, paragraph “a” , received from any 34 source which is not taxable under this division as a result 35 -2- LSB 5358XL (25) 85 aw/sc 2/ 21

S.F. _____ H.F. _____ of the government pension exclusions in section 422.7 , or any 1 other state law. If the combined net income of a husband and 2 wife exceeds thirty-two thousand dollars, neither of them shall 3 receive the benefit of this subsection , and it is immaterial 4 whether they file a joint return or separate returns. However, 5 if a husband and wife file separate returns and have a combined 6 net income of thirty-two thousand dollars or less, neither 7 spouse shall receive the benefit of this paragraph, if one 8 spouse has a net operating loss and elects to carry back or 9 carry forward the loss as provided in section 422.9, subsection 10 3 . A person who is claimed as a dependent by another person as 11 defined in section 422.12 shall not receive the benefit of this 12 subsection if the person claiming the dependent has net income 13 exceeding thirty-two thousand dollars or twenty-four thousand 14 dollars as applicable or the person claiming the dependent 15 and the person’s spouse have combined net income exceeding 16 thirty-two thousand dollars or twenty-four thousand dollars as 17 applicable. 18 Sec. 4. Section 422.7, Code 2014, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 31A. a. Subtract, to the extent included, 21 retirement pay received by a resident taxpayer from the federal 22 government for military service performed in the armed forces, 23 the armed forces military reserve, or the national guard. 24 b. The exclusion of retirement pay under this subsection is 25 in addition to any exclusion provided under subsection 31. 26 Sec. 5. RETROACTIVE APPLICABILITY. This division of this 27 Act applies retroactively to January 1, 2014, for tax years 28 beginning on or after that date. 29 DIVISION III 30 HOME OWNERSHIP ASSISTANCE PROGRAM APPROPRIATIONS 31 Sec. 6. 2013 Iowa Acts, chapter 138, section 134, subsection 32 3, is amended to read as follows: 33 3. HOME OWNERSHIP ASSISTANCE PROGRAM 34 For transfer to the Iowa finance authority for the 35 -3- LSB 5358XL (25) 85 aw/sc 3/ 21

S.F. _____ H.F. _____ continuation of the home ownership assistance program for 1 persons who are or were eligible members of the armed forces of 2 the United States, pursuant to section 16.54 : 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 800,000 4 2,500,000 5 DIVISION IV 6 VETERANS PREFERENCE 7 Sec. 7. NEW SECTION . 35.3 Veterans preference in private 8 employment permitted. 9 1. A private employer may grant preference in hiring and 10 promotion to an individual who is a veteran. 11 2. a. A private employer may grant preference in hiring 12 and promotion to the spouse of a veteran who has sustained 13 a permanent, compensable service-connected disability as 14 adjudicated by the United States veterans administration or by 15 the retirement board of one of the armed forces of the United 16 States. 17 b. A private employer may grant preference in hiring and 18 promotion to the surviving spouse of a deceased member of the 19 United States armed forces who died while serving on active 20 duty during a time of military conflict or who died as a result 21 of such service. 22 3. Granting a hiring or promotion preference under this 23 section does not violate any state law or local ordinance 24 regarding equal employment opportunity, including but not 25 limited to chapter 216. 26 4. The hiring and promotion preferences allowable 27 under this section shall only be granted if consistent with 28 applicable federal laws and regulations. 29 DIVISION V 30 LICENSED PROFESSIONS AND OCCUPATIONS 31 Sec. 8. Section 272C.4, Code 2014, is amended by adding the 32 following new subsections: 33 NEW SUBSECTION . 11. Adopt rules by January 1, 2015, to 34 provide credit towards qualifications for licensure to practice 35 -4- LSB 5358XL (25) 85 aw/sc 4/ 21

S.F. _____ H.F. _____ an occupation or profession in this state for education, 1 training, and service obtained or completed by an individual 2 while serving honorably on federal active duty, state active 3 duty, or national guard duty, as defined in section 29A.1, 4 to the extent consistent with the qualifications required 5 by the appropriate licensing board. The rules shall also 6 provide credit towards qualifications for initial licensure 7 for education, training, or service obtained or completed by 8 an individual while serving honorably in the military forces 9 of another state or the organized reserves of the armed 10 forces of the United States, to the extent consistent with the 11 qualifications required by the appropriate licensing board. 12 NEW SUBSECTION . 12. Establish procedures by January 13 1, 2015, to expedite the licensing of an individual who is 14 licensed in a similar profession or occupation in another state 15 and who is a veteran, as defined in section 35.1, or the spouse 16 of a veteran. 17 a. If the board determines that the professional or 18 occupational licensing requirements of the state where the 19 veteran or veteran’s spouse is licensed are substantially 20 equivalent to the licensing requirements of this state, the 21 procedures shall require the licensing of the veteran or the 22 veteran’s spouse in this state. 23 b. If the board determines that the professional or 24 occupational licensing requirements of the state where the 25 veteran or veteran’s spouse is licensed are not substantially 26 equivalent to the professional or occupational licensing 27 requirements of this state, the procedures shall allow the 28 provisional licensing of the veteran or veteran’s spouse for 29 a period of time deemed necessary by the board to obtain a 30 substantial equivalent to the licensing requirements of this 31 state. The board shall advise the veteran or the veteran’s 32 spouse of required education or training necessary to obtain 33 a substantial equivalent to the professional or occupational 34 licensing requirements of this state, and the procedures shall 35 -5- LSB 5358XL (25) 85 aw/sc 5/ 21

S.F. _____ H.F. _____ provide for licensing of an individual who has, pursuant to 1 this paragraph, obtained a substantial equivalent to the 2 professional or occupational licensing requirements of this 3 state. 4 NEW SUBSECTION . 13. Beginning December 15, 2016, annually 5 file a report with the governor and the general assembly 6 providing information and statistics on credit received by 7 individuals for education, training, and service pursuant to 8 subsection 11 and information and statistics on licenses and 9 provisional licenses issued pursuant to subsection 12. 10 NEW SUBSECTION . 14. Notwithstanding the designation 11 of the licensing boards in section 272C.1, the provisions 12 of subsections 11 through 13 shall apply to all of the 13 occupational and professional licensing boards of this state. 14 Sec. 9. REPORT. Each licensing board under this division 15 shall file a report with the governor and the general assembly 16 by January 31, 2015, on the substance of rules and procedures 17 adopted to implement the provisions of this division of this 18 Act. 19 DIVISION VI 20 EDUCATION 21 Sec. 10. Section 260C.14, Code 2014, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 24. a. Beginning December 15, 2015, 24 annually file a report with the governor and the general 25 assembly providing information and statistics for the previous 26 five academic years on the number of students who are veterans 27 per year who received education credit for military education, 28 training, and service, that number as a percentage of veterans 29 known to be enrolled at the college, the average number of 30 credits received by students, and the average number of credits 31 applied towards the award of a certificate, competency-based 32 credential, postsecondary diploma, or associate degree. 33 b. For purposes of this subsection, “veteran” means a 34 veteran as defined in section 35.1. 35 -6- LSB 5358XL (25) 85 aw/sc 6/ 21

S.F. _____ H.F. _____ Sec. 11. Section 262.9, Code 2014, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 38. a. Beginning December 15, 2015, 3 annually file a report with the governor and the general 4 assembly providing information and statistics for the previous 5 five academic years on the number of students who are veterans 6 per year who received education credit for military education, 7 training, and service, that number as a percentage of veterans 8 known to be enrolled at the institution, the average number 9 of credits received by students, and the average number of 10 credits applied towards the award or completion of a course of 11 instruction, postsecondary diploma, degree, or other evidences 12 of distinction. 13 b. For purposes of this subsection, “veteran” means a 14 veteran as defined in section 35.1. 15 DIVISION VII 16 LICENSE PLATES 17 Sec. 12. Section 35A.11, Code 2014, is amended to read as 18 follows: 19 35A.11 Veterans license fee fund. 20 1. A veterans license fee fund is created in the state 21 treasury under the control of the commission. Notwithstanding 22 section 12C.7 , interest or earnings on moneys in the veterans 23 license fee fund shall be credited to the veterans license fee 24 fund. Moneys in the fund are appropriated to the commission to 25 be used to fulfill the responsibilities of the commission. 26 2. The fund created in this section shall include the 27 fees credited by the treasurer of state from the sale annual 28 validation of the following special motor vehicle registration 29 plates: 30 1. Veteran special plates issued pursuant to section 31 321.34, subsection 13 , paragraph “d” . 32 2. a. National guard special plates issued pursuant to 33 section 321.34, subsection 16 . 34 3. b. Pearl Harbor special plates issued pursuant to 35 -7- LSB 5358XL (25) 85 aw/sc 7/ 21

S.F. _____ H.F. _____ section 321.34, subsection 17 . 1 4. c. Purple heart special plates issued pursuant to 2 section 321.34, subsection 18 . 3 5. d. United States armed forces retired special plates 4 issued pursuant to section 321.34, subsection 19 . 5 6. e. Silver star and bronze star special plates issued 6 pursuant to section 321.34, subsection 20 . 7 7. f. Distinguished service cross, navy cross, and air 8 force cross special plates issued pursuant to section 321.34, 9 subsection 20A . 10 8. g. Soldier’s medal, navy and marine corps medal, and 11 airman’s medal special plates issued pursuant to section 12 321.34, subsection 20B . 13 9. h. Combat infantryman badge, combat action badge, 14 combat action ribbon, air force combat action medal, and 15 combat medical badge plates issued pursuant to section 321.34, 16 subsection 20C . 17 10. i. Gold star special plates issued pursuant to section 18 321.34, subsection 24 . 19 j. United States veteran special plates issued pursuant to 20 section 321.34, subsection 27. 21 Sec. 13. Section 321.34, subsection 16, paragraph a, Code 22 2014, is amended to read as follows: 23 a. An owner referred to in subsection 12 who is a member 24 of the national guard, as defined in chapter 29A , may, 25 upon written application to the department, order special 26 registration plates with a national guard processed emblem 27 with the emblem designed by the department in cooperation with 28 the adjutant general which emblem signifies that the applicant 29 is a member of the national guard. The application shall be 30 approved by the department in consultation with the adjutant 31 general. The special plate fees collected by the director 32 under subsection 12 , paragraphs paragraph “a” and “c” , from 33 the issuance and annual validation of letter-number designated 34 national guard plates, and subsection 12, paragraph “c” , from 35 -8- LSB 5358XL (25) 85 aw/sc 8/ 21

S.F. _____ H.F. _____ the issuance and annual validation of personalized national 1 guard plates shall be paid monthly to the treasurer of state 2 and deposited in the road use tax fund. The treasurer of state 3 shall transfer monthly from the statutory allocations fund 4 created under section 321.145, subsection 2 , to the veterans 5 license fee fund created in section 35A.11 the amount of the 6 special fees collected under subsection 12 , paragraph “a” , 7 in the previous month for national guard plates. Special 8 registration plates with a national guard processed emblem 9 shall be surrendered, as provided in subsection 12 , in exchange 10 for regular registration plates upon termination of the owner’s 11 membership in the active national guard. 12 Sec. 14. Section 321.34, subsection 16, Code 2014, is 13 amended by adding the following new paragraph: 14 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 15 “a” , an owner who is approved for special registration plates 16 under this subsection shall be issued one set of special 17 registration plates with a national guard processed emblem at 18 no charge. 19 Sec. 15. Section 321.34, subsection 17, paragraph a, Code 20 2014, is amended to read as follows: 21 a. An owner referred to in subsection 12 who was at Pearl 22 Harbor, Hawaii, as a member of the armed services of the United 23 States on December 7, 1941, may, upon written application to 24 the department, order special registration plates with a Pearl 25 Harbor processed emblem. The emblem shall be designed by the 26 department in consultation with service organizations. The 27 application is subject to approval by the department. The 28 special plate fees collected by the director under subsection 29 12 , paragraphs paragraph “a” and “c” , from the issuance and 30 annual validation of letter-number designated Pearl Harbor 31 plates, and subsection 12, paragraph “c” , from the issuance and 32 annual validation of personalized Pearl Harbor plates shall 33 be paid monthly to the treasurer of state and deposited in 34 the road use tax fund. The treasurer of state shall transfer 35 -9- LSB 5358XL (25) 85 aw/sc 9/ 21

S.F. _____ H.F. _____ monthly from the statutory allocations fund created under 1 section 321.145, subsection 2 , to the veterans license fee 2 fund created in section 35A.11 the amount of the special fees 3 collected under subsection 12 , paragraph “a” , in the previous 4 month for Pearl Harbor plates. 5 Sec. 16. Section 321.34, subsection 17, Code 2014, is 6 amended by adding the following new paragraph: 7 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 8 “a” , an owner who is approved for special registration plates 9 under this subsection shall be issued one set of special 10 registration plates with a Pearl Harbor processed emblem at no 11 charge. 12 Sec. 17. Section 321.34, subsection 18, paragraph a, Code 13 2014, is amended to read as follows: 14 a. An owner referred to in subsection 12 who was awarded 15 a purple heart medal by the United States government for 16 wounds received in military or naval combat against an armed 17 enemy of the United States may, upon written application to 18 the department and presentation of satisfactory proof of the 19 award of the purple heart medal, order special registration 20 plates with a purple heart processed emblem. The design of 21 the emblem shall include a representation of a purple heart 22 medal and ribbon. The application is subject to approval by 23 the department in consultation with the adjutant general. The 24 special plate fees collected by the director under subsection 25 12 , paragraphs paragraph “a” and “c” , from the issuance and 26 annual validation of letter-number designated purple heart 27 plates, and subsection 12, paragraph “c” , from the issuance and 28 annual validation of personalized purple heart plates shall 29 be paid monthly to the treasurer of state and deposited in 30 the road use tax fund. The treasurer of state shall transfer 31 monthly from the statutory allocations fund created under 32 section 321.145, subsection 2 , to the veterans license fee 33 fund created in section 35A.11 the amount of the special fees 34 collected under subsection 12 , paragraph “a” , in the previous 35 -10- LSB 5358XL (25) 85 aw/sc 10/ 21

S.F. _____ H.F. _____ month for purple heart plates. 1 Sec. 18. Section 321.34, subsection 18, Code 2014, is 2 amended by adding the following new paragraph: 3 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 4 “a”, an owner who is approved for special registration plates 5 under this subsection shall be issued one set of special 6 registration plates with a purple heart processed emblem at no 7 charge. 8 Sec. 19. Section 321.34, subsection 19, paragraph a, Code 9 2014, is amended to read as follows: 10 a. An owner referred to in subsection 12 who is a retired 11 member of the United States armed forces may, upon written 12 application to the department and upon presentation of 13 satisfactory proof of membership, order special registration 14 plates with a United States armed forces retired processed 15 emblem. The emblem shall be designed by the department in 16 consultation with service organizations. The application is 17 subject to approval by the department. For purposes of this 18 subsection , a person is considered to be retired if the person 19 is recognized by the United States armed forces as retired 20 from the United States armed forces. The special plate fees 21 collected by the director under subsection 12 , paragraphs 22 paragraph “a” and “c” , from the issuance and annual validation 23 of letter-number designated armed forces retired plates, and 24 subsection 12, paragraph “c” , from the issuance and annual 25 validation of personalized armed forces retired plates shall 26 be paid monthly to the treasurer of state and deposited in 27 the road use tax fund. The treasurer of state shall transfer 28 monthly from the statutory allocations fund created under 29 section 321.145, subsection 2 , to the veterans license fee 30 fund created in section 35A.11 the amount of the special fees 31 collected under subsection 12 , paragraph “a” , in the previous 32 month for armed forces retired plates. 33 Sec. 20. Section 321.34, subsection 19, Code 2014, is 34 amended by adding the following new paragraph: 35 -11- LSB 5358XL (25) 85 aw/sc 11/ 21

S.F. _____ H.F. _____ NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 1 “a” , an owner who is approved for special registration plates 2 under this subsection shall be issued one set of special 3 registration plates with an armed forces retired processed 4 emblem at no charge. 5 Sec. 21. Section 321.34, subsection 20, paragraph a, Code 6 2014, is amended to read as follows: 7 a. An owner referred to in subsection 12 who was awarded a 8 silver or a bronze star by the United States government, may, 9 upon written application to the department and presentation 10 of satisfactory proof of the award of the silver or bronze 11 star, order special registration plates with a silver or bronze 12 star processed emblem. The emblem shall be designed by the 13 department in consultation with the adjutant general. The 14 special plate fees collected by the director under subsection 15 12 , paragraphs paragraph “a” and “c” , from the issuance and 16 annual validation of letter-number designated silver star and 17 bronze star plates, and subsection 12, paragraph “c” , from the 18 issuance and annual validation of personalized silver star and 19 bronze star plates shall be paid monthly to the treasurer of 20 state and deposited in the road use tax fund. The treasurer 21 of state shall transfer monthly from the statutory allocations 22 fund created under section 321.145, subsection 2 , to the 23 veterans license fee fund created in section 35A.11 the amount 24 of the special fees collected under subsection 12 , paragraph 25 “a” , in the previous month for silver star and bronze star 26 plates. 27 Sec. 22. Section 321.34, subsection 20, Code 2014, is 28 amended by adding the following new paragraph: 29 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 30 “a” , an owner who is approved for special registration plates 31 under this subsection shall be issued one set of special 32 registration plates with a silver star or bronze star processed 33 emblem at no charge. 34 Sec. 23. Section 321.34, subsection 20A, paragraph a, Code 35 -12- LSB 5358XL (25) 85 aw/sc 12/ 21

S.F. _____ H.F. _____ 2014, is amended to read as follows: 1 a. An owner referred to in subsection 12 who was awarded 2 a distinguished service cross, a navy cross, or an air force 3 cross by the United States government may, upon written 4 application to the department and presentation of satisfactory 5 proof of the award, order special registration plates with 6 a distinguished service cross, navy cross, or air force 7 cross processed emblem. The emblem shall be designed by the 8 department in consultation with the adjutant general. The 9 special plate fees collected by the director under subsection 10 12 , paragraphs paragraph “a” and “c” , from the issuance and 11 annual validation of letter-number designated distinguished 12 service cross, navy cross, and air force cross plates, and 13 subsection 12, paragraph “c” , from the issuance and annual 14 validation of personalized distinguished service cross, navy 15 cross, and air force cross plates shall be paid monthly to the 16 treasurer of state and deposited in the road use tax fund. The 17 treasurer of state shall transfer monthly from the statutory 18 allocations fund created under section 321.145, subsection 2 , 19 to the veterans license fee fund created in section 35A.11 20 the amount of the special fees collected under subsection 12 , 21 paragraph “a” , in the previous month for distinguished service 22 cross, navy cross, and air force cross plates. 23 Sec. 24. Section 321.34, subsection 20A, Code 2014, is 24 amended by adding the following new paragraph: 25 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 26 “a” , an owner who is approved for special registration plates 27 under this subsection shall be issued one set of special 28 registration plates with a distinguished service cross, navy 29 cross, or air force cross processed emblem at no charge. 30 Sec. 25. Section 321.34, subsection 20B, paragraph a, Code 31 2014, is amended to read as follows: 32 a. An owner referred to in subsection 12 who was awarded a 33 soldier’s medal, a navy and marine corps medal, or an airman’s 34 medal by the United States government may, upon written 35 -13- LSB 5358XL (25) 85 aw/sc 13/ 21

S.F. _____ H.F. _____ application to the department and presentation of satisfactory 1 proof of the award, order special registration plates with 2 a soldier’s medal, navy and marine corps medal, or airman’s 3 medal processed emblem. The emblem shall be designed by the 4 department in consultation with the adjutant general. The 5 special plate fees collected by the director under subsection 6 12 , paragraphs paragraph “a” and “c” , from the issuance and 7 annual validation of letter-number designated soldier’s medal, 8 navy and marine corps medal, and airman’s medal plates, and 9 subsection 12, paragraph “c” , from the issuance and annual 10 validation of personalized soldier’s medal, navy and marine 11 corps medal, and airman’s medal plates shall be paid monthly 12 to the treasurer of state and deposited in the road use tax 13 fund. The treasurer of state shall transfer monthly from the 14 statutory allocations fund created under section 321.145, 15 subsection 2 , to the veterans license fee fund created in 16 section 35A.11 the amount of the special fees collected 17 under subsection 12 , paragraph “a” , in the previous month for 18 soldier’s medal, navy and marine corps medal, and airman’s 19 medal plates. 20 Sec. 26. Section 321.34, subsection 20B, Code 2014, is 21 amended by adding the following new paragraph: 22 NEW PARAGRAPH . 0b. Notwithstanding subsection 12, paragraph 23 “a” , an owner who is approved for special registration plates 24 under this subsection shall be issued one set of special 25 registration plates with a soldier’s medal, navy and marine 26 corps medal, or airman’s medal processed emblem at no charge. 27 Sec. 27. Section 321.34, subsection 20C, paragraph b, Code 28 2014, is amended to read as follows: 29 b. An owner referred to in subsection 12 who was awarded a 30 combat infantryman badge, combat action badge, combat action 31 ribbon, air force combat action medal, or combat medical 32 badge by the United States government may, upon written 33 application to the department and presentation of satisfactory 34 proof of the award, order special registration plates with a 35 -14- LSB 5358XL (25) 85 aw/sc 14/ 21

S.F. _____ H.F. _____ combat infantryman badge, combat action badge, combat action 1 ribbon, air force combat action medal, or combat medical badge 2 processed emblem. The special plate fees collected by the 3 director under subsection 12 , paragraphs paragraph “a” and 4 “c” , from the issuance and annual validation of letter-number 5 designated combat infantryman badge, combat action badge, 6 combat action ribbon, air force combat action medal, and 7 combat medical badge plates, and subsection 12, paragraph 8 “c” , from the issuance and annual validation of personalized 9 combat infantryman badge, combat action badge, combat action 10 ribbon, air force combat action medal, and combat medical badge 11 plates shall be paid monthly to the treasurer of state and 12 deposited in the road use tax fund. The treasurer of state 13 shall transfer monthly from the statutory allocations fund 14 created under section 321.145, subsection 2 , to the veterans 15 license fee fund created in section 35A.11 the amount of the 16 special fees collected under subsection 12 , paragraph “a” , in 17 the previous month for combat infantryman badge, combat action 18 badge, combat action ribbon, air force combat action medal, and 19 combat medical badge plates. 20 Sec. 28. Section 321.34, subsection 20C, Code 2014, is 21 amended by adding the following new paragraph: 22 NEW PARAGRAPH . 0c. Notwithstanding subsection 12, paragraph 23 “a” , an owner who is approved for special registration plates 24 under this subsection shall be issued one set of special 25 registration plates with a combat infantryman badge, combat 26 action badge, combat action ribbon, air force combat action 27 medal, and combat medical badge distinguishing processed emblem 28 at no charge. 29 Sec. 29. Section 321.34, subsection 24, Code 2014, is 30 amended to read as follows: 31 24. Gold star plates. 32 a. An owner referred to in subsection 12 who is the 33 surviving spouse, parent, child, or sibling of a deceased 34 member of the United States armed forces who died while serving 35 -15- LSB 5358XL (25) 85 aw/sc 15/ 21

S.F. _____ H.F. _____ on active duty during a time of military conflict or who died 1 as a result of such service may order special registration 2 plates bearing a gold star emblem upon written application 3 to the department accompanied by satisfactory supporting 4 documentation as determined by the department. The gold star 5 emblem shall be designed by the department in cooperation with 6 the commission of veterans affairs. The special plate fees 7 collected by the director under subsection 12 , paragraphs 8 paragraph “a” and “c” , from the issuance and annual validation 9 of letter-number designated gold star plates, and subsection 10 12, paragraph “c” , from the issuance and annual validation of 11 personalized gold star plates shall be paid monthly to the 12 treasurer of state and deposited in the road use tax fund. The 13 treasurer of state shall transfer monthly from the statutory 14 allocations fund created under section 321.145, subsection 2 , 15 to the veterans license fee fund created in section 35A.11 16 the amount of the special fees collected under subsection 12 , 17 paragraph “a” , in the previous month for gold star plates. 18 b. Notwithstanding subsection 12, paragraph “a” , an owner 19 who is approved for special registration plates under this 20 subsection shall be issued one set of special registration 21 plates bearing a gold star emblem at no charge. 22 Sec. 30. Section 321.34, Code 2014, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 27. United States veteran plates. 25 a. An owner referred to in subsection 12 who served in the 26 armed forces of the United States and was discharged under 27 honorable conditions may, upon written application to the 28 department and upon presentation of satisfactory proof of 29 military service and discharge under honorable conditions, 30 order special registration plates bearing a distinguishing 31 processed emblem depicting the word “veteran” below an image 32 of the American flag. The application is subject to approval 33 by the department. The special plate fees collected by the 34 director under subsection 12, paragraph “a” , from the annual 35 -16- LSB 5358XL (25) 85 aw/sc 16/ 21

S.F. _____ H.F. _____ validation of letter-number designated United States veteran 1 plates, and subsection 12, paragraph “c” , from the issuance 2 and annual validation of personalized United States veteran 3 plates, shall be paid monthly to the treasurer of state and 4 deposited in the road use tax fund. The treasurer of state 5 shall transfer monthly from the statutory allocations fund 6 created under section 321.145, subsection 2, to the veterans 7 license fee fund created in section 35A.11 the amount of the 8 special fees collected under subsection 12, paragraph “a” , in 9 the previous month for United States veteran plates. 10 b. Notwithstanding subsection 12, paragraph “a” , an owner 11 who is approved for a special registration plate under this 12 subsection shall be issued one set of special registration 13 plates bearing a distinguishing processed emblem depicting 14 the word “veteran” below an image of the American flag at no 15 charge. 16 DIVISION VIII 17 IOWA WORKFORCE DEVELOPMENT APPROPRIATIONS 18 Sec. 31. APPROPRIATIONS. 19 1. There is appropriated from the general fund of the state 20 to the department of workforce development for the fiscal year 21 beginning July 1, 2014, and ending June 30, 2015, the following 22 amount, or so much thereof as is necessary, to be used for the 23 purposes designated: 24 For funding research linking military occupational 25 education, training, and service to existing licensing 26 requirements in this state, for funding implementation of 27 this Act, and for meeting additional demand for workforce 28 development services provided to veterans: 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 30 2. There is appropriated from the general fund of the state 31 to the department of workforce development for the fiscal year 32 beginning July 1, 2014, and ending June 30, 2015, the following 33 amount, or so much thereof as is necessary, to be used for the 34 purposes designated: 35 -17- LSB 5358XL (25) 85 aw/sc 17/ 21

S.F. _____ H.F. _____ For awarding a grant, in the amount appropriated, to a 1 nonprofit workforce services foundation exempt from federal 2 taxation under section 501(c)(3) of the Internal Revenue 3 Code that is administered by an agency of this state for the 4 purposes of paying for the direct expenses of marketing this 5 state to veterans through public-private partnerships: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill enacts the “Home Base Iowa Act”, which relates to 11 veterans and military service members by exempting military 12 service retirement pay for certain purposes of the state 13 individual income tax, providing appropriations for the home 14 ownership assistance program for military members, permitting 15 private employers to grant certain employment preferences to 16 veterans and certain spouses of veterans and service members, 17 relating to professional licensure, requiring reporting on the 18 provision of certain educational credits, and relating to fees 19 charged for license plates associated with military service. 20 Division I of the bill states that the Act is to be known as 21 the “Home Base Iowa Act”. 22 Division II of the bill exempts from the individual income 23 tax all retirement pay of an Iowa resident from federal 24 military service in the armed forces, the military reserve, 25 or the national guard. The exemption is in addition to the 26 general pension exclusion. The bill also exempts military 27 retirement pay from the net income calculations used to 28 determine certain personal income tax filing thresholds. 29 The division applies retroactively to January 1, 2014, for 30 tax years beginning on or after that date. 31 Division III of the bill increases the fiscal year 2014-2015 32 appropriation for the home ownership assistance program for 33 military members from $800,000 to $2.5 million. 34 Division IV allows private employers to grant a preference 35 -18- LSB 5358XL (25) 85 aw/sc 18/ 21