SSB 3098 (LSB 5358XL (25) 85)

SENATE/HOUSE FILE _____

BY  (PROPOSED GOVERNOR BILL)

A BILL FOR

An Act relating to veterans and military service members and including appropriations and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

TITLE
    Section 1.  TITLE.  This Act shall be known as the “Home Base Iowa Act”.

DIVISION II

RETIREMENT PAY TAX EXEMPTION
    Sec. 2.  Section 422.5, subsection 3, paragraph a, Code 2014, is amended to read as follows:
   a.  The tax shall not be imposed on a resident or nonresident whose net income, as defined in section 422.7, is thirteen thousand five hundred dollars or less in the case of married persons filing jointly or filing separately on a combined return, heads of household, and surviving spouses or nine thousand dollars or less in the case of all other persons; but in the event that the payment of tax under this division would reduce the net income to less than thirteen thousand five hundred dollars or nine thousand dollars as applicable, then the tax shall be reduced to that amount which would result in allowing the taxpayer to retain a net income of thirteen thousand five hundred dollars or nine thousand dollars as applicable. The preceding sentence does not apply to estates or trusts. For the purpose of this subsection, the entire net income, including any part of the net income not allocated to Iowa, shall be taken into account. For purposes of this subsection, net income includes all amounts of pensions or other retirement income, except for military retirement pay excluded under section 422.7, subsection 31A, paragraph “a”, received from any source which is not taxable under this division as a result of the government pension exclusions in section 422.7, or any other state law. If the combined net income of a husband and wife exceeds thirteen thousand five hundred dollars, neither of them shall receive the benefit of this subsection, and it is immaterial whether they file a joint return or separate returns. However, if a husband and wife file separate returns and have a combined net income of thirteen thousand five hundred dollars or less, neither spouse shall receive the benefit of this paragraph, if one spouse has a net operating loss and elects to carry back or carry forward the loss as provided in section 422.9, subsection 3. A person who is claimed as a dependent by another person as defined in section 422.12 shall not receive the benefit of this subsection if the person claiming the dependent has net income exceeding thirteen thousand five hundred dollars or nine thousand dollars as applicable or the person claiming the dependent and the person’s spouse have combined net income exceeding thirteen thousand five hundred dollars or nine thousand dollars as applicable.
    Sec. 3.  Section 422.5, subsection 3B, paragraph a, Code 2014, is amended to read as follows:
   a.  The tax shall not be imposed on a resident or nonresident who is at least sixty-five years old on December 31 of the tax year and whose net income, as defined in section 422.7, is thirty-two thousand dollars or less in the case of married persons filing jointly or filing separately on a combined return, heads of household, and surviving spouses or twenty-four thousand dollars or less in the case of all other persons; but in the event that the payment of tax under this division would reduce the net income to less than thirty-two thousand dollars or twenty-four thousand dollars as applicable, then the tax shall be reduced to that amount which would result in allowing the taxpayer to retain a net income of thirty-two thousand dollars or twenty-four thousand dollars as applicable. The preceding sentence does not apply to estates or trusts. For the purpose of this subsection, the entire net income, including any part of the net income not allocated to Iowa, shall be taken into account. For purposes of this subsection, net income includes all amounts of pensions or other retirement income, except for military retirement pay excluded under section 422.7, subsection 31A, paragraph “a”, received from any source which is not taxable under this division as a result of the government pension exclusions in section 422.7, or any other state law. If the combined net income of a husband and wife exceeds thirty-two thousand dollars, neither of them shall receive the benefit of this subsection, and it is immaterial whether they file a joint return or separate returns. However, if a husband and wife file separate returns and have a combined net income of thirty-two thousand dollars or less, neither spouse shall receive the benefit of this paragraph, if one spouse has a net operating loss and elects to carry back or carry forward the loss as provided in section 422.9, subsection 3. A person who is claimed as a dependent by another person as defined in section 422.12 shall not receive the benefit of this subsection if the person claiming the dependent has net income exceeding thirty-two thousand dollars or twenty-four thousand dollars as applicable or the person claiming the dependent and the person’s spouse have combined net income exceeding thirty-two thousand dollars or twenty-four thousand dollars as applicable.
    Sec. 4.  Section 422.7, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  31A.  a.  Subtract, to the extent included, retirement pay received by a resident taxpayer from the federal government for military service performed in the armed forces, the armed forces military reserve, or the national guard.
   b.  The exclusion of retirement pay under this subsection is in addition to any exclusion provided under subsection 31.
    Sec. 5.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to January 1, 2014, for tax years beginning on or after that date.

DIVISION III

HOME OWNERSHIP ASSISTANCE PROGRAM APPROPRIATIONS
    Sec. 6.  2013 Iowa Acts, chapter 138, section 134, subsection 3, is amended to read as follows:
   3.  HOME OWNERSHIP ASSISTANCE PROGRAM

   For transfer to the Iowa finance authority for the continuation of the home ownership assistance program for persons who are or were eligible members of the armed forces of the United States, pursuant to section 16.54:

.................................................. $    800,000

______________________________________________________2,500,000

DIVISION IV

VETERANS PREFERENCE
    Sec. 7.  NEW SECTION.  35.3  Veterans preference in private employment permitted.
   1.  A private employer may grant preference in hiring and promotion to an individual who is a veteran.
   2.  a.  A private employer may grant preference in hiring and promotion to the spouse of a veteran who has sustained a permanent, compensable service-connected disability as adjudicated by the United States veterans administration or by the retirement board of one of the armed forces of the United States.
   b.  A private employer may grant preference in hiring and promotion to the surviving spouse of a deceased member of the United States armed forces who died while serving on active duty during a time of military conflict or who died as a result of such service.
   3.  Granting a hiring or promotion preference under this section does not violate any state law or local ordinance regarding equal employment opportunity, including but not limited to chapter 216.
   4.  The hiring and promotion preferences allowable under this section shall only be granted if consistent with applicable federal laws and regulations.

DIVISION V

LICENSED PROFESSIONS AND OCCUPATIONS
    Sec. 8.  Section 272C.4, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  11.  Adopt rules by January 1, 2015, to provide credit towards qualifications for licensure to practice an occupation or profession in this state for education, training, and service obtained or completed by an individual while serving honorably on federal active duty, state active duty, or national guard duty, as defined in section 29A.1, to the extent consistent with the qualifications required by the appropriate licensing board. The rules shall also provide credit towards qualifications for initial licensure for education, training, or service obtained or completed by an individual while serving honorably in the military forces of another state or the organized reserves of the armed forces of the United States, to the extent consistent with the qualifications required by the appropriate licensing board.
   NEW SUBSECTION.  12.  Establish procedures by January 1, 2015, to expedite the licensing of an individual who is licensed in a similar profession or occupation in another state and who is a veteran, as defined in section 35.1, or the spouse of a veteran.
   a.  If the board determines that the professional or occupational licensing requirements of the state where the veteran or veteran’s spouse is licensed are substantially equivalent to the licensing requirements of this state, the procedures shall require the licensing of the veteran or the veteran’s spouse in this state.
   b.  If the board determines that the professional or occupational licensing requirements of the state where the veteran or veteran’s spouse is licensed are not substantially equivalent to the professional or occupational licensing requirements of this state, the procedures shall allow the provisional licensing of the veteran or veteran’s spouse for a period of time deemed necessary by the board to obtain a substantial equivalent to the licensing requirements of this state. The board shall advise the veteran or the veteran’s spouse of required education or training necessary to obtain a substantial equivalent to the professional or occupational licensing requirements of this state, and the procedures shall provide for licensing of an individual who has, pursuant to this paragraph, obtained a substantial equivalent to the professional or occupational licensing requirements of this state.
   NEW SUBSECTION.  13.  Beginning December 15, 2016, annually file a report with the governor and the general assembly providing information and statistics on credit received by individuals for education, training, and service pursuant to subsection 11 and information and statistics on licenses and provisional licenses issued pursuant to subsection 12.
   NEW SUBSECTION.  14.  Notwithstanding the designation of the licensing boards in section 272C.1, the provisions of subsections 11 through 13 shall apply to all of the occupational and professional licensing boards of this state.
    Sec. 9.  REPORT.  Each licensing board under this division shall file a report with the governor and the general assembly by January 31, 2015, on the substance of rules and procedures adopted to implement the provisions of this division of this Act.

DIVISION VI

EDUCATION
    Sec. 10.  Section 260C.14, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  24.  a.  Beginning December 15, 2015, annually file a report with the governor and the general assembly providing information and statistics for the previous five academic years on the number of students who are veterans per year who received education credit for military education, training, and service, that number as a percentage of veterans known to be enrolled at the college, the average number of credits received by students, and the average number of credits applied towards the award of a certificate, competency-based credential, postsecondary diploma, or associate degree.
   b.  For purposes of this subsection, “veteran” means a veteran as defined in section 35.1.
    Sec. 11.  Section 262.9, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  38.  a.  Beginning December 15, 2015, annually file a report with the governor and the general assembly providing information and statistics for the previous five academic years on the number of students who are veterans per year who received education credit for military education, training, and service, that number as a percentage of veterans known to be enrolled at the institution, the average number of credits received by students, and the average number of credits applied towards the award or completion of a course of instruction, postsecondary diploma, degree, or other evidences of distinction.
   b.  For purposes of this subsection, “veteran” means a veteran as defined in section 35.1.

DIVISION VII

LICENSE PLATES
    Sec. 12.  Section 35A.11, Code 2014, is amended to read as follows:
   35A.11  Veterans license fee fund.
   1.  A veterans license fee fund is created in the state treasury under the control of the commission. Notwithstanding section 12C.7, interest or earnings on moneys in the veterans license fee fund shall be credited to the veterans license fee fund. Moneys in the fund are appropriated to the commission to be used to fulfill the responsibilities of the commission.
   2.  The fund created in this section shall include the fees credited by the treasurer of state from the sale annual validation of the following special motor vehicle registration plates:
   1.  Veteran special plates issued pursuant to section 321.34, subsection 13, paragraph “d”.
   2.  a.  National guard special plates issued pursuant to section 321.34, subsection 16.
   3.  b.  Pearl Harbor special plates issued pursuant to section 321.34, subsection 17.
   4.  c.  Purple heart special plates issued pursuant to section 321.34, subsection 18.
   5.  d.  United States armed forces retired special plates issued pursuant to section 321.34, subsection 19.
   6.  e.  Silver star and bronze star special plates issued pursuant to section 321.34, subsection 20.
   7.  f.  Distinguished service cross, navy cross, and air force cross special plates issued pursuant to section 321.34, subsection 20A.
   8.  g.  Soldier’s medal, navy and marine corps medal, and airman’s medal special plates issued pursuant to section 321.34, subsection 20B.
   9.  h.  Combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates issued pursuant to section 321.34, subsection 20C.
   10.  i.  Gold star special plates issued pursuant to section 321.34, subsection 24.
   j.  United States veteran special plates issued pursuant to section 321.34, subsection 27.
    Sec. 13.  Section 321.34, subsection 16, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who is a member of the national guard, as defined in chapter 29A, may, upon written application to the department, order special registration plates with a national guard processed emblem with the emblem designed by the department in cooperation with the adjutant general which emblem signifies that the applicant is a member of the national guard. The application shall be approved by the department in consultation with the adjutant general. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated national guard plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized national guard plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for national guard plates. Special registration plates with a national guard processed emblem shall be surrendered, as provided in subsection 12, in exchange for regular registration plates upon termination of the owner’s membership in the active national guard.
    Sec. 14.  Section 321.34, subsection 16, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a national guard processed emblem at no charge.
    Sec. 15.  Section 321.34, subsection 17, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who was at Pearl Harbor, Hawaii, as a member of the armed services of the United States on December 7, 1941, may, upon written application to the department, order special registration plates with a Pearl Harbor processed emblem. The emblem shall be designed by the department in consultation with service organizations. The application is subject to approval by the department. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated Pearl Harbor plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized Pearl Harbor plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for Pearl Harbor plates.
    Sec. 16.  Section 321.34, subsection 17, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a Pearl Harbor processed emblem at no charge.
    Sec. 17.  Section 321.34, subsection 18, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who was awarded a purple heart medal by the United States government for wounds received in military or naval combat against an armed enemy of the United States may, upon written application to the department and presentation of satisfactory proof of the award of the purple heart medal, order special registration plates with a purple heart processed emblem. The design of the emblem shall include a representation of a purple heart medal and ribbon. The application is subject to approval by the department in consultation with the adjutant general. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated purple heart plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized purple heart plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for purple heart plates.
    Sec. 18.  Section 321.34, subsection 18, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a purple heart processed emblem at no charge.
    Sec. 19.  Section 321.34, subsection 19, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who is a retired member of the United States armed forces may, upon written application to the department and upon presentation of satisfactory proof of membership, order special registration plates with a United States armed forces retired processed emblem. The emblem shall be designed by the department in consultation with service organizations. The application is subject to approval by the department. For purposes of this subsection, a person is considered to be retired if the person is recognized by the United States armed forces as retired from the United States armed forces. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated armed forces retired plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized armed forces retired plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for armed forces retired plates.
    Sec. 20.  Section 321.34, subsection 19, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with an armed forces retired processed emblem at no charge.
    Sec. 21.  Section 321.34, subsection 20, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who was awarded a silver or a bronze star by the United States government, may, upon written application to the department and presentation of satisfactory proof of the award of the silver or bronze star, order special registration plates with a silver or bronze star processed emblem. The emblem shall be designed by the department in consultation with the adjutant general. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated silver star and bronze star plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized silver star and bronze star plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for silver star and bronze star plates.
    Sec. 22.  Section 321.34, subsection 20, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a silver star or bronze star processed emblem at no charge.
    Sec. 23.  Section 321.34, subsection 20A, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who was awarded a distinguished service cross, a navy cross, or an air force cross by the United States government may, upon written application to the department and presentation of satisfactory proof of the award, order special registration plates with a distinguished service cross, navy cross, or air force cross processed emblem. The emblem shall be designed by the department in consultation with the adjutant general. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated distinguished service cross, navy cross, and air force cross plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized distinguished service cross, navy cross, and air force cross plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for distinguished service cross, navy cross, and air force cross plates.
    Sec. 24.  Section 321.34, subsection 20A, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a distinguished service cross, navy cross, or air force cross processed emblem at no charge.
    Sec. 25.  Section 321.34, subsection 20B, paragraph a, Code 2014, is amended to read as follows:
   a.  An owner referred to in subsection 12 who was awarded a soldier’s medal, a navy and marine corps medal, or an airman’s medal by the United States government may, upon written application to the department and presentation of satisfactory proof of the award, order special registration plates with a soldier’s medal, navy and marine corps medal, or airman’s medal processed emblem. The emblem shall be designed by the department in consultation with the adjutant general. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated soldier’s medal, navy and marine corps medal, and airman’s medal plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized soldier’s medal, navy and marine corps medal, and airman’s medal plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for soldier’s medal, navy and marine corps medal, and airman’s medal plates.
    Sec. 26.  Section 321.34, subsection 20B, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a soldier’s medal, navy and marine corps medal, or airman’s medal processed emblem at no charge.
    Sec. 27.  Section 321.34, subsection 20C, paragraph b, Code 2014, is amended to read as follows:
   b.  An owner referred to in subsection 12 who was awarded a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge by the United States government may, upon written application to the department and presentation of satisfactory proof of the award, order special registration plates with a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, or combat medical badge processed emblem. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge plates.
    Sec. 28.  Section 321.34, subsection 20C, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0c.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates with a combat infantryman badge, combat action badge, combat action ribbon, air force combat action medal, and combat medical badge distinguishing processed emblem at no charge.
    Sec. 29.  Section 321.34, subsection 24, Code 2014, is amended to read as follows:
   24.  Gold star plates.
   a.  An owner referred to in subsection 12 who is the surviving spouse, parent, child, or sibling of a deceased member of the United States armed forces who died while serving on active duty during a time of military conflict or who died as a result of such service may order special registration plates bearing a gold star emblem upon written application to the department accompanied by satisfactory supporting documentation as determined by the department. The gold star emblem shall be designed by the department in cooperation with the commission of veterans affairs. The special plate fees collected by the director under subsection 12, paragraphs paragraph “a” and “c”, from the issuance and annual validation of letter-number designated gold star plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized gold star plates shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for gold star plates.
   b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for special registration plates under this subsection shall be issued one set of special registration plates bearing a gold star emblem at no charge.
    Sec. 30.  Section 321.34, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  27.  United States veteran plates.
   a.  An owner referred to in subsection 12 who served in the armed forces of the United States and was discharged under honorable conditions may, upon written application to the department and upon presentation of satisfactory proof of military service and discharge under honorable conditions, order special registration plates bearing a distinguishing processed emblem depicting the word “veteran” below an image of the American flag. The application is subject to approval by the department. The special plate fees collected by the director under subsection 12, paragraph “a”, from the annual validation of letter-number designated United States veteran plates, and subsection 12, paragraph “c”, from the issuance and annual validation of personalized United States veteran plates, shall be paid monthly to the treasurer of state and deposited in the road use tax fund. The treasurer of state shall transfer monthly from the statutory allocations fund created under section 321.145, subsection 2, to the veterans license fee fund created in section 35A.11 the amount of the special fees collected under subsection 12, paragraph “a”, in the previous month for United States veteran plates.
   b.  Notwithstanding subsection 12, paragraph “a”, an owner who is approved for a special registration plate under this subsection shall be issued one set of special registration plates bearing a distinguishing processed emblem depicting the word “veteran” below an image of the American flag at no charge.

DIVISION VIII

IOWA WORKFORCE DEVELOPMENT APPROPRIATIONS
    Sec. 31.  APPROPRIATIONS.
   1.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For funding research linking military occupational education, training, and service to existing licensing requirements in this state, for funding implementation of this Act, and for meeting additional demand for workforce development services provided to veterans:
.................................................. $  1,000,000

   2.  There is appropriated from the general fund of the state to the department of workforce development for the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For awarding a grant, in the amount appropriated, to a nonprofit workforce services foundation exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code that is administered by an agency of this state for the purposes of paying for the direct expenses of marketing this state to veterans through public-private partnerships:
.................................................. $  1,000,000
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill enacts the “Home Base Iowa Act”, which relates to veterans and military service members by exempting military service retirement pay for certain purposes of the state individual income tax, providing appropriations for the home ownership assistance program for military members, permitting private employers to grant certain employment preferences to veterans and certain spouses of veterans and service members, relating to professional licensure, requiring reporting on the provision of certain educational credits, and relating to fees charged for license plates associated with military service.
   Division I of the bill states that the Act is to be known as the “Home Base Iowa Act”.
   Division II of the bill exempts from the individual income tax all retirement pay of an Iowa resident from federal military service in the armed forces, the military reserve, or the national guard. The exemption is in addition to the general pension exclusion. The bill also exempts military retirement pay from the net income calculations used to determine certain personal income tax filing thresholds.
   The division applies retroactively to January 1, 2014, for tax years beginning on or after that date.
   Division III of the bill increases the fiscal year 2014-2015 appropriation for the home ownership assistance program for military members from $800,000 to $2.5 million.
   Division IV allows private employers to grant a preference in hiring and promotion to veterans and certain veterans’ spouses.
   Division IV specifically permits private employers to grant a preference in hiring and promotion to veterans, as defined in the Iowa department of veterans affairs law, and as far as is consistent with federal laws and regulations. Private employers are also allowed to grant such preferences to the spouse of a veteran who has sustained a permanent, compensable service-connected disability as adjudicated by the United States veterans administration or by the retirement board of one of the armed forces of the United States. These employers may also grant hiring and promotion preferences to the surviving spouse of a deceased member of the United States armed forces who died while serving on active duty during a time of military conflict or who died as a result of such service. The division states that hiring and promotion preferences granted by private employers do not violate any state law or local ordinance regarding equal employment opportunity.
   Division V of the bill amends Code section 272C.4 to require that all professional and occupational licensing boards adopt rules by January 1, 2015, to provide credit towards licensing for education, training, and service that is either obtained or completed by an individual while serving on federal active duty, state active duty, or national guard duty. The division further requires that the rules provide such credit toward licensure for service in the military forces of other states or the organized reserves of the armed forces of the United States. Code section 272C.1 provides that the term “licensing” and its derivations include the terms “registration” and “certification” and their derivations.
   Division V of the bill also requires that licensing boards establish procedures to expedite the licensing in this state of certain individuals who are licensed to practice in a similar profession or occupation in another state if the individual is a veteran or the spouse of a veteran and if the board determines that the licensing requirements of the other state are substantially equivalent to the licensing requirements of this state. The division also requires that if the board determines that another state’s licensing requirements are not substantially equivalent to the licensing requirements of this state, the board shall issue a provisional license to the qualifying veteran or the qualifying spouse of a veteran for a period of time deemed necessary to obtain a substantial equivalent to the licensing requirements of this state.
   Division V requires that licensing boards provide a report to the governor and to the general assembly by December 15, 2016, on the awarding of credits for qualifying education, training, and service and on licensing and provisional licensing awarded under the division.
   Division V requires that each licensing board report to the governor and the general assembly by January 31, 2015, on the substance of the rules and procedures adopted to carry out the provisions of the division.
   Division VI of the bill requires that the board of directors of each community college file an annual report, beginning December 15, 2015, with the governor and the general assembly, including certain statistics relating to the award of educational credits to veterans for military education, training, and experience for the prior five academic years.
   Division VI also requires that the board of regents file an annual report, beginning December 15, 2015, with the governor and the general assembly, including certain statistics relating to the award of educational credits to veterans for military education, training, and service for the prior five academic years.
   Division VII of the bill eliminates the special plate issuance fees charged for issuance of certain special motor vehicle registration plates associated with military service which are established statutorily. The affected plates are national guard plates; Pearl Harbor plates; purple heart plates; United States armed forces retired plates; silver star and bronze star plates; distinguished service cross, navy cross, and air force cross special plates; soldier’s medal, navy and marine corps medal, and airman’s medal special plates; and gold star plates. The division also eliminates special plate issuance fees for United States veteran plates which were established by the department of transportation, in cooperation with the commission of veterans affairs, by administrative process. Under current law, the fee for issuance of the special plates is $25. The issuance fee for United States veteran plates is $35. The division maintains transfers to the veterans license fee fund from the annual validation fees for these special plates. The division adds the United States armed forces veteran plate, which is currently established administratively, to the list of special motor vehicle registration plates established in Code section 321.34. The division also makes additional corresponding changes.
   Division VIII provides an appropriation of $1 million from the general fund of the state to the department of workforce development to fund research linking military occupational education, training, and service to existing licensing requirements in this state, to fund implementation of the bill, and to support additional demand for workforce development services to be provided to veterans. The division also provides a $1 million appropriation from the general fund to the department of workforce development to be used to provide a grant, in that amount, to a nonprofit workforce services organization administered by an agency of this state for the purposes of paying for the direct expenses of marketing this state to veterans.