House File 2661 - Introduced HOUSE FILE 2661 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2533) (SUCCESSOR TO HF 2206) A BILL FOR An Act relating to public safety personnel by modifying the 1 retirement benefits of sheriffs and deputy sheriffs, 2 restricting bail for murder in the first degree or felonious 3 assaults committed upon public safety personnel, and 4 providing for a tax credit for moving expenses available 5 against the individual income tax for new public safety 6 personnel moving to the state, and including retroactive 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 5454HZ (2) 90 jm/ns

H.F. 2661 DIVISION I 1 IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM —— SHERIFFS AND DEPUTY 2 SHERIFFS 3 Section 1. Section 97B.49C, subsection 1, paragraph a, 4 subparagraph (3), Code 2024, is amended to read as follows: 5 (3) For each active or inactive vested member retiring 6 on or after July 1, 1998, and before July 1, 2024, sixty 7 percent plus, if applicable, an additional three-eighths of 8 one percentage point for each additional calendar quarter of 9 eligible service beyond twenty-two years of service, not to 10 exceed a total of twelve additional percentage points. 11 Sec. 2. Section 97B.49C, subsection 1, paragraph a, Code 12 2024, is amended by adding the following new subparagraph: 13 NEW SUBPARAGRAPH . (4) For each active or inactive vested 14 member retiring on or after July 1, 2024, sixty percent plus, 15 if applicable, an additional five-eighths of one percentage 16 point for each additional calendar quarter of eligible service 17 beyond twenty-two years of service, not to exceed a total of 18 twenty additional percentage points. 19 Sec. 3. Section 97B.49C, Code 2024, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 2A. Annual adjustment of allowance. A 22 member who retires from employment as a sheriff or deputy 23 sheriff on or after July 1, 2024, and who receives a monthly 24 retirement allowance under this section shall have the monthly 25 allowance adjusted as follows: 26 a. On each July 1, the monthly retirement allowance 27 authorized in this section and payable to a member retired 28 prior to that date, and to a beneficiary or contingent 29 annuitant entitled to a monthly retirement allowance prior 30 to that date, shall be adjusted by adding to the monthly 31 retirement allowance payable on that date an amount equal to 32 the sum of one and one-half percent of the monthly retirement 33 allowance payable on that date. 34 b. A retired member, beneficiary, or contingent annuitant 35 -1- LSB 5454HZ (2) 90 jm/ns 1/ 7

H.F. 2661 shall not be eligible for an annual readjustment of allowance 1 provided in this subsection unless the member has twenty-two 2 years of eligible service and attained the age of fifty years 3 prior to the member’s termination of employment. 4 c. A retired member, beneficiary, or contingent annuitant 5 that receives an annual adjustment of allowance provided in 6 this subsection shall not be eligible for the retirement 7 dividends under section 97B.49F. 8 DIVISION II 9 ASSAULT ON PUBLIC SAFETY PERSONNEL —— BAIL 10 Sec. 4. Section 124.416, Code 2024, is amended to read as 11 follows: 12 124.416 Exception to restrictions on bail. 13 Notwithstanding section 811.1 , the court, after making the 14 finding required by section 811.1, subsection 3 2 , paragraph 15 “d” , may admit a person convicted of a violation of section 16 124.401, subsection 2 , or of a violation of section 124.406 , 17 to bail if the prosecuting attorney in the action and the 18 defendant’s counsel jointly petition the court to admit the 19 person to bail. 20 Sec. 5. Section 811.1, Code 2024, is amended to read as 21 follows: 22 811.1 Bail and bail restrictions. 23 1. For purposes of this section: 24 a. “Assault” means the same as defined in section 708.1. 25 b. “Charged” means the same as “charge” as defined in 26 section 801.4. 27 c. “Felonious assault upon an officer” means the defendant 28 committed an assault, for which the penalty is a felony, with 29 the knowledge the person against whom the felonious assault was 30 committed was a peace officer or correctional officer, acting 31 in the peace officer’s or correctional officer’s official 32 capacity. 33 d. “Peace officer” means the same as defined in section 34 801.4. 35 -2- LSB 5454HZ (2) 90 jm/ns 2/ 7

H.F. 2661 2. All defendants are bailable both before and after 1 conviction, by sufficient surety, or subject to release 2 upon condition or on their own recognizance, except that the 3 following defendants shall not be admitted to bail: 4 a. A defendant charged with murder in the first degree of a 5 peace officer in violation of section 707.2, if the murder in 6 the first degree was committed with the knowledge the person 7 against whom the murder was committed was a peace officer 8 or correctional officer, acting in the peace officer’s or 9 correctional officer’s official capacity. 10 1. b. A defendant awaiting judgment of conviction and 11 sentencing following either a plea or verdict of guilty of a 12 class “A” felony; forcible felony as defined in section 702.11 ; 13 a felonious assault upon an officer; any class “B” felony 14 included in section 462A.14 or 707.6A ; any felony included in 15 section 124.401, subsection 1 , paragraph “a” or “b” ; a second 16 or subsequent offense under section 124.401, subsection 1 , 17 paragraph “c” ; any public offense committed while detained 18 pursuant to section 229A.5 ; or any public offense committed 19 while subject to an order of commitment pursuant to chapter 20 229A . 21 2. c. A defendant appealing a conviction of a class 22 “A” felony; forcible felony as defined in section 702.11 ; a 23 felonious assault upon an officer; any class “B” or “C” felony 24 included in section 462A.14 or 707.6A ; any felony included in 25 section 124.401, subsection 1 , paragraph “a” or “b” ; or a second 26 or subsequent conviction under section 124.401, subsection 1 , 27 paragraph “c” ; any public offense committed while detained 28 pursuant to section 229A.5 ; or any public offense committed 29 while subject to an order of commitment pursuant to chapter 30 229A . 31 3. d. Notwithstanding subsections 1 and 2 paragraphs 32 “b” and “c” , a defendant awaiting judgment of conviction and 33 sentencing following either a plea or verdict of guilty of, 34 or appealing a conviction of, any felony offense included in 35 -3- LSB 5454HZ (2) 90 jm/ns 3/ 7

H.F. 2661 section 708.11, subsection 3 , or a felony offense under chapter 1 124 not provided for in subsection 1 or 2 , is presumed to be 2 ineligible to be admitted to bail unless the court determines 3 that such release reasonably will not result in the person 4 failing to appear as required and will not jeopardize the 5 personal safety of another person or persons. 6 DIVISION III 7 PUBLIC SAFETY OFFICER MOVING EXPENSES —— TAX CREDIT 8 Sec. 6. NEW SECTION . 422.12P Public safety officer moving 9 expense —— tax credit. 10 1. For purposes of this section, unless the context 11 otherwise requires: 12 a. “Moving expense” means an unreimbursed expense for moving 13 household goods and personal effects from the former residence 14 of the new resident to this state including travel expenses for 15 meals and lodging. 16 b. “New resident” means an individual who becomes a resident 17 of Iowa, after July 1, 2024, upon taking full-time employment 18 as a public safety officer in this state, who remains a 19 resident of and employed full-time as a public safety officer 20 in this state when claiming the credit, and who has not been 21 a resident of this state at any time during the previous 22 twelve-month period prior to establishing residency in this 23 state. 24 c. “Public safety officer” means a peace officer as defined 25 in section 801.4 or a correctional officer. 26 2. The taxes imposed under this subchapter, less the credits 27 allowed under section 422.12, shall be reduced by a public 28 safety officer moving expense tax credit equal to the amount of 29 moving expense incurred by the new resident in connection with 30 taking full-time employment as a public safety officer in this 31 state, not to exceed two thousand dollars. 32 3. Any credit in excess of the tax liability is refundable. 33 In lieu of claiming a refund, the taxpayer may elect to have 34 the overpayment shown on the taxpayer’s final, completed return 35 -4- LSB 5454HZ (2) 90 jm/ns 4/ 7

H.F. 2661 credited to the tax liability for the following tax year. 1 4. The credit under this section with respect to any moving 2 expense shall be allowed during a tax year as follows: 3 a. For any moving expense paid or incurred prior to or 4 during the tax year in which the new resident is employed 5 full-time in the state, the tax year in which the full-time 6 employment begins. 7 b. For any qualified moving expense paid or incurred after 8 the tax year in which the full-time employment begins, the tax 9 year in which the moving expense is paid or incurred. 10 5. The department of revenue shall adopt rules to administer 11 this section. 12 Sec. 7. RETROACTIVE APPLICABILITY. This division of this 13 Act applies retroactively to January 1, 2024, for tax years 14 beginning on or after that date. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to public safety personnel by modifying 19 the retirement benefits of sheriffs and deputy sheriffs, 20 restricting bail for a murder offense in the first degree or 21 felonious assaults committed upon public safety personnel, 22 and providing for a tax credit for moving expenses available 23 against the individual income tax for new public safety 24 personnel moving to the state. 25 DIVISION I —— IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM —— 26 SHERIFFS AND DEPUTY SHERIFFS. The bill modifies the portion 27 of the Iowa public employees’ retirement system (IPERS) 28 established for sheriffs and deputies (member). 29 The monthly retirement benefit under IPERS for a sheriff 30 or deputy sheriff is calculated by multiplying the retiree’s 31 applicable covered wage by a percentage. The bill increases, 32 for sheriffs and deputy sheriffs retiring on or after July 1, 33 2024, the applicable percentage used to calculate the retiree’s 34 monthly retirement benefit by five-eighths of one percentage 35 -5- LSB 5454HZ (2) 90 jm/ns 5/ 7

H.F. 2661 point for each calendar quarter of service beyond 22 years of 1 service up to a maximum of 20 additional percentage points. 2 Under current law, the applicable percentage is increased by 3 three-eighths of one percentage point up to a maximum of 12 4 additional percentage points for calendar quarters of service 5 beyond 22 years of service. 6 The bill establishes a cost-of-living adjustment (COLA) to 7 the monthly allowance for active and inactive members and to 8 any beneficiaries and contingent annuitants for retirements 9 occurring on or after July 1, 2024. Beginning July 1, 2024, 10 and on each July 1 thereafter, the monthly retirement allowance 11 of such a member or a beneficiary or contingent annuitant shall 12 be adjusted by adding to the monthly retirement allowance an 13 amount equal to 1.5 percent of the monthly retirement allowance 14 payable on that date. Such a member, or a beneficiary or 15 contingent annuitant, is not eligible for the COLA increase 16 unless the member has 22 years of eligible service and attained 17 50 years of age prior to the retirement date of the member. 18 A retired member, beneficiary, or contingent annuitant that 19 receives the COLA is not eligible for the retirement dividends 20 under Code section 97B.49F. 21 DIVISION II —— MURDER OR FELONIOUS ASSAULT ON PUBLIC SAFETY 22 PERSONNEL —— BAIL RESTRICTIONS. The bill specifies a defendant 23 charged with murder in the first degree of a peace officer or 24 correctional officer is not eligible for bail if the murder in 25 the first degree was committed with the knowledge the person 26 against whom the murder was committed was a peace officer 27 or correctional officer, acting in the peace officer’s or 28 correctional officer’s official capacity. 29 The bill also specifies a defendant awaiting sentencing 30 after a plea of guilty or a conviction for a felonious assault 31 upon a peace officer or correctional officer is not eligible 32 for bail and a defendant appealing a conviction for a felonious 33 assault upon a peace officer or correctional officer is not 34 eligible for bail. 35 -6- LSB 5454HZ (2) 90 jm/ns 6/ 7

H.F. 2661 For a defendant awaiting sentencing after a conviction or 1 guilty plea of, or appealing a conviction for, a felonious 2 assault upon a peace officer or correctional officer for which 3 bail is restricted under the bill, the defendant is required to 4 have knowledge the person against whom the felonious assault 5 was committed was such an officer acting in the officer’s 6 official capacity. 7 DIVISION III —— PUBLIC SAFETY OFFICER MOVING EXPENSES —— 8 TAX CREDIT. The bill creates a public safety officer moving 9 expense tax credit available against the individual income 10 tax. The amount of the tax credit shall equal the amount of 11 the unreimbursed moving expenses incurred by a new resident in 12 connection with taking full-time employment as a public safety 13 officer not to exceed $2,000. 14 The tax credit is refundable. In lieu of claiming a refund, 15 the new resident may elect to have the overpayment shown on the 16 taxpayer’s final, completed return for the following tax year. 17 The bill specifies the tax year when the tax credit is 18 allowed dependent upon when the full-time employment begins or 19 when the moving expenses are incurred. 20 This division applies retroactively to January 1, 2024, for 21 tax years beginning on or after that date. 22 -7- LSB 5454HZ (2) 90 jm/ns 7/ 7