H.F. _____ Section 1. FINDINGS. The general assembly finds all of the 1 following: 2 1. During times of disaster or emergency, many businesses 3 bring in resources and personnel from other states on a 4 temporary basis to expedite the often enormous and overwhelming 5 task of cleaning up, restoring, and repairing damaged 6 buildings, equipment, and property, or even deploying or 7 building replacement facilities in the state. 8 2. These undertakings may involve the need for out-of-state 9 businesses, including out-of-state affiliates of businesses 10 based in the state, to bring in resources, property, 11 or personnel to perform activities related to critical 12 infrastructure in the state, including but not limited to 13 repairing, renovating, installing, building, and rendering 14 services or other business activities, and for which personnel 15 may be located in the state for extended periods of time to 16 perform such activities. 17 3. During such time of operating in the state on a 18 temporary basis solely for purposes of helping the state 19 recover from the disaster or emergency, these businesses and 20 individual employees should not be burdened by any requirements 21 for business and employee taxes as a result of such activities 22 in the state, and the state’s nexus and residency thresholds 23 should not be applied to businesses and individuals coming into 24 the state on a temporary basis to provide help and assistance 25 in response to a declared state disaster or emergency. 26 4. To ensure that businesses may focus on quick response 27 to the needs of the state and its citizens during a declared 28 state disaster or emergency it is appropriate for the general 29 assembly to deem that such activity for a reasonable period of 30 time before, during, and after the disaster or emergency shall 31 not establish presence, residency, or doing business in the 32 state or any other criteria for purposes of state and local 33 taxes, licensing, and regulatory requirements. 34 Sec. 2. Section 29C.1, subsection 3, Code 2016, is amended 35 -1- LSB 5105YC (8) 86 mm/sc 1/ 10

H.F. _____ to read as follows: 1 3. To provide for the rendering of mutual aid among the 2 political subdivisions of the state and with other states , 3 and to cooperate with the federal government with respect to 4 the carrying out of emergency management functions , and to 5 facilitate the rapid response of businesses and workers in the 6 state and other states to a disaster . 7 Sec. 3. NEW SECTION . 29C.24 Facilitating business rapid 8 response to state-declared disasters Act. 9 1. Title. This section may be cited as the “Facilitating 10 Business Rapid Response to State-Declared Disasters Act” . 11 2. Definitions. For purposes of this section, unless the 12 context otherwise requires: 13 a. (1) “Critical infrastructure” means real and personal 14 property and equipment owned or used by any of the following 15 networks or systems, including related support facilities, 16 which network or system provides service to more than one 17 customer or person: 18 (a) Communication networks. 19 (b) Electric generation, transmission, and distribution 20 systems. 21 (c) Gas distribution systems. 22 (d) Water pipeline systems. 23 (2) “Critical infrastructure” includes but is not limited 24 to buildings, structures, offices, lines, poles, pipes, and 25 equipment. 26 b. “Declared state disaster or emergency” means a disaster 27 or emergency event that meets at least one of the following 28 conditions: 29 (1) A disaster emergency proclamation has been issued by the 30 governor pursuant to section 29C.6 in relation to the event. 31 (2) A presidential declaration of a major disaster has been 32 issued in relation to the event. 33 c. “Disaster or emergency-related work” means repairing, 34 renovating, installing, building, or rendering services 35 -2- LSB 5105YC (8) 86 mm/sc 2/ 10

H.F. _____ or other business activities, that relate to critical 1 infrastructure that has been damaged, impaired, or destroyed by 2 a declared state disaster or emergency. 3 d. “Disaster response period” means, with respect to 4 each declared state disaster or emergency, a period of time 5 that begins ten calendar days prior to the day the governor 6 proclaims a disaster emergency or the president declares a 7 major disaster, whichever occurs first, and extends for a 8 period of sixty calendar days after the end of the declared 9 state disaster or emergency. 10 e. (1) “Out-of-state business” means a business entity that 11 meets all of the following requirements: 12 (a) The business entity is requested to perform disaster or 13 emergency-related work in the state by a registered business or 14 by the state or a political subdivision of the state. 15 (b) Except for disaster and emergency-related work, the 16 business entity has no presence in the state and conducts no 17 business in the state. 18 (c) Except for disaster and emergency-related work, the 19 business entity had no registrations, tax filings, or nexus in 20 the state for the tax year immediately preceding the year in 21 which the relevant declared state disaster or emergency occurs. 22 (2) “Out-of-state business” may include a business entity 23 that is affiliated with a registered business solely through 24 common ownership. 25 f. “Out-of-state employee” means an employee who does 26 not work in this state except to perform disaster or 27 emergency-related work during a disaster response period. 28 g. “Registered business” means a business entity that is 29 registered to do business in the state prior to the declared 30 state disaster or emergency. 31 3. Business and employee status during disaster response 32 period. 33 a. Notwithstanding any other provision of law to the 34 contrary, an out-of-state business that conducts operations 35 -3- LSB 5105YC (8) 86 mm/sc 3/ 10

H.F. _____ within the state solely for the purpose of performing disaster 1 or emergency-related work during a disaster response period 2 shall not be considered to have established a level of presence 3 that would subject the out-of-state business to any of the 4 following: 5 (1) The requirement to complete or obtain any state or local 6 business or occupational registration, permit, certification, 7 or license, or pay any related fee, including but not limited 8 to the requirement to register with the secretary of state, 9 the department of revenue, or a political subdivision. This 10 subparagraph (1) does not apply to the notification requirement 11 in subsection 5. 12 (2) (a) The requirement to collect and remit any 13 tax imposed upon another person or file any related tax 14 return. This subparagraph division (a) does not apply to an 15 out-of-state business for the collection and remittance of 16 sales and use taxes under chapter 423 if the out-of-state 17 business is registered voluntarily as a seller under the 18 streamlined sales and use tax agreement. 19 (b) Subparagraph division (a) shall not be construed to 20 protect or otherwise exempt any person liable for the payment 21 of a tax, other than the out-of-state business, from the 22 responsibility to pay such tax. 23 (3) The imposition of income taxes under chapter 422, 24 divisions II and III, including the requirement to file tax 25 returns under sections 422.13 through 422.15 or 422.36, as 26 applicable, and including the requirement to withhold and remit 27 income tax from out-of-state employees under section 422.16. 28 In addition, the performance of disaster or emergency-related 29 work during a disaster response period by an out-of-state 30 business or out-of-state employee shall not require an 31 out-of-state business to be included in a consolidated return 32 under section 422.37, and shall not increase the amount of net 33 income of the out-of-state business allocated and apportioned 34 to the state under sections 422.8 or 422.33, as applicable. 35 -4- LSB 5105YC (8) 86 mm/sc 4/ 10

H.F. _____ (4) The employment security requirements under chapter 1 96, including but not limited to the payment of employer 2 contributions under section 96.7. 3 (5) The use tax under chapter 423, subchapter III, or 4 the equipment tax under chapter 423D, on tangible personal 5 property or equipment purchased outside the state and brought 6 into the state to aid in the performance of disaster or 7 emergency-related work during a disaster response period if 8 such tangible personal property or equipment does not remain in 9 the state after the conclusion of the disaster response period. 10 (6) The assessment of property taxes by the department of 11 revenue under sections 428.24 through 428.29, or chapters 433, 12 434, and 437 through 438, or by a local assessor under another 13 provision of law, on property brought into the state to aid in 14 the performance of disaster or emergency-related work during a 15 disaster period if such property does not remain in the state 16 after the conclusion of the disaster response period. 17 b. Notwithstanding any other provision of law to the 18 contrary, the performance of disaster or emergency-related 19 work during a disaster response period by an out-of-state 20 employee shall not be used as the basis to determine that the 21 out-of-state employee has established residency or a level of 22 presence that would subject the out-of-state employee to any 23 of the following: 24 (1) The requirement to complete or obtain any state or local 25 business or occupational registration, permit, certification, 26 or license, or pay any related fee, including but not limited 27 to the requirement to register with the secretary of state, the 28 department of revenue, or with a political subdivision. 29 (2) The imposition of income taxes under chapter 422, 30 division II, including the requirement to file tax returns 31 under section 422.13 and the requirement to be subject to 32 withholding of income tax under section 422.16. In addition, 33 the performance of disaster or emergency-related work during a 34 disaster response period by an out-of-state employee shall not 35 -5- LSB 5105YC (8) 86 mm/sc 5/ 10

H.F. _____ increase the amount of net income of the out-of-state employee 1 allocated and apportioned to the state under section 422.8. 2 (3) The use tax under chapter 423, subchapter III, or the 3 equipment tax under chapter 423D, on tangible personal property 4 or equipment purchased outside the state and used in the state 5 to aid in the performance of disaster or emergency-related work 6 during a disaster response period if such tangible personal 7 property or equipment does not remain in the state after the 8 conclusion of the disaster response period. 9 c. During a disaster response period, an out-of-state 10 business or an out-of-state employee shall be subject to all 11 taxes and fees not included in paragraphs “a” and “b” , and this 12 subsection shall not be construed to provide protection or 13 exemption during a disaster response period or any other period 14 from taxes or taxable events not included in paragraphs “a” and 15 “b” . 16 4. Business and employee status after a disaster response 17 period. An out-of-state business or out-of-state employee 18 that remains in the state after the conclusion of the disaster 19 response period for which the disaster or emergency-related 20 work was performed shall be fully subject to the state’s 21 standards for establishing presence, residency, or doing 22 business as otherwise provided by law, and shall be responsible 23 for any resulting taxes, fees, licensing, registration, filing, 24 or other requirements. 25 5. Notification of out-of-state business during disaster 26 response period. 27 a. An out-of-state business that enters the state to perform 28 disaster and emergency-related work during a disaster response 29 period shall provide notification to the secretary of state, 30 which notification shall contain all the following information 31 related to the out-of-state business: 32 (1) Name. 33 (2) State of domicile. 34 (3) Principal business address. 35 -6- LSB 5105YC (8) 86 mm/sc 6/ 10

H.F. _____ (4) Federal employer identification number. 1 (5) The date the out-of-state business entered the state. 2 (6) Contact information. 3 (7) A statement that the out-of-state business is in 4 the state for the purpose of responding to a declared state 5 disaster or emergency. 6 b. For an out-of-state business that enters this state to 7 perform disaster and emergency-related work during a disaster 8 response period as an affiliate of a registered business, the 9 registered business shall provide, on behalf of the affiliate 10 out-of-state business, the notification required in paragraph 11 “a” , which notification shall also include contact information 12 for the registered business. 13 c. The secretary of state shall transmit notification 14 information to the department, department of revenue, and other 15 appropriate state and local government agencies and officials. 16 6. Rules. The department, the secretary of state, and 17 the department of revenue shall each adopt rules pursuant to 18 chapter 17A to jointly administer this section. 19 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 20 immediate importance, takes effect upon enactment. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill establishes the “Facilitating Business Rapid 25 Response to State-Declared Disasters Act” and provides findings 26 and definitions. The bill also amends the statement of policy 27 in Code chapter 29C (Emergency Management and Security). 28 The bill provides that notwithstanding any law to the 29 contrary, an out-of-state business or an out-of-state employee 30 that performs disaster and emergency-related work during a 31 disaster response period will be protected from, and shall not 32 be subject to, certain taxes, fees, licensing, registration, 33 filing, and other requirements, as specified in the bill. 34 “Disaster response period” is defined as a period of time 35 -7- LSB 5105YC (8) 86 mm/sc 7/ 10

H.F. _____ beginning 10 days before the governor proclaims a state 1 disaster or emergency or the president declares a major 2 disaster in the state, and ends 60 days after the end of 3 the declared state disaster or emergency. “Disaster and 4 emergency-related work” is defined to include a variety of work 5 on critical infrastructure damaged, impaired, or destroyed 6 by the declared state disaster or emergency. “Critical 7 infrastructure” is defined to include property and equipment 8 owned or used by a communication network; electric generation, 9 transmission, and distribution system; gas distribution 10 system; water pipeline system; or a related support facility 11 of those networks or systems. The network or system must 12 provide service to more than one customer or person. “Critical 13 infrastructure” includes but is not limited to buildings, 14 structures, offices, lines, poles, pipes, and equipment. 15 OUT-OF-STATE BUSINESSES. The bill defines “out-of-state 16 business” and provides that an out-of-state business performing 17 disaster and emergency-related work during a disaster response 18 period shall not be considered to have established a level of 19 presence that would subject it to the following: 20 1. The requirement to obtain any state or local business or 21 occupational registration, permit, certification, or license, 22 or pay any related fee. 23 2. The requirement to collect and remit any tax imposed upon 24 another person, or file any related tax return, except for the 25 collection of sales and use tax by an out-of-state business 26 registered voluntarily as a seller under the streamlined sales 27 and use tax agreement. 28 3. The requirement to pay the individual or corporate 29 income tax, including the requirement to file a tax return 30 or be included in a consolidated tax return, withhold and 31 remit income tax from out-of-state employees, or increase the 32 amount of the out-of-state business’s net income allocated 33 and apportioned to Iowa as a result of the disaster and 34 emergency-related work. 35 -8- LSB 5105YC (8) 86 mm/sc 8/ 10

H.F. _____ 4. The requirement to be subject to the employment security 1 requirements of Code chapter 96, including but not limited to 2 the requirement to make employer contributions. 3 5. For tangible personal property and equipment purchased 4 outside of Iowa and brought into the state to aid in the 5 performance of disaster or emergency-related work, the 6 requirement to pay use tax or equipment tax on the property, or 7 have the property assessed for property tax purposes, provided 8 the property does not remain in the state after the disaster 9 response period. 10 Out-of-state businesses that enter the state to perform 11 disaster and emergency-related work during a disaster response 12 period are required to provide a notification containing 13 various information to the secretary of state. If the 14 out-of-state business enters the state as an affiliate of a 15 registered business, the registered business must provide the 16 required notification on behalf of the out-of-state business. 17 “Registered business” is defined in the bill. The secretary of 18 state is required to share the notification information with 19 various state and local agencies and officials as specified in 20 the bill. 21 OUT-OF-STATE EMPLOYEES. The bill defines “out-of-state 22 employee” and provides that the performance of disaster or 23 emergency-related work during a disaster response period by 24 an out-of-state employee shall not be used as the basis to 25 determine the out-of-state employee has established residency 26 or a level of presence that would subject the out-of-state 27 employee to the following: 28 1. The requirement to obtain any state or local business or 29 occupational registration, permit, certification, or license, 30 or pay any related fee. 31 2. The requirement to pay the individual income tax or 32 file a tax return, be subject to income tax withholding, or 33 increase the amount of the out-of-state employee’s net income 34 allocated and apportioned to Iowa as a result of the disaster 35 -9- LSB 5105YC (8) 86 mm/sc 9/ 10

H.F. _____ and emergency-related work. 1 3. The requirement to pay use tax or equipment tax on 2 tangible personal property and equipment purchased outside of 3 Iowa and brought into the state to aid in the performance of 4 disaster or emergency-related work, provided the property does 5 not remain in the state after the disaster response period. 6 The bill provides that out-of-state businesses and 7 out-of-state employees shall be subject to all taxes and fees 8 not specifically included in the bill, and provides that 9 out-of-state businesses and out-of-state employees that remain 10 in Iowa after the conclusion of the disaster response period 11 shall be fully subject to Iowa’s standards for establishing 12 presence, residency, or doing business as otherwise provided by 13 law, and shall be responsible for any resulting taxes, fees, 14 licensing, registration, filing, or other requirements. 15 The bill takes effect upon enactment. 16 -10- LSB 5105YC (8) 86 mm/sc 10/ 10