HSB 521 (LSB 5452XD (3) 90)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF VETERANS AFFAIRS BILL)

A BILL FOR

An Act relating to the qualifications of veterans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 35.1, subsection 2, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:
   2.  “Veteran” means a resident of this state who is any of the following:
   a.  A veteran as defined in 38 C.F.R. §3.1, as amended.
   b.  A former member of the reserve forces of the United States who served at least twenty years in the reserve forces and who was discharged under honorable conditions. However, a member of the reserve forces of the United States who completed a minimum aggregate of ninety days of federal active duty, other than training, and was discharged under honorable conditions, or was retired under Tit. 10 of the United States Code, shall be included as a veteran.
   c.  A former member of the Iowa national guard who served at least twenty years in the Iowa national guard and who was discharged under honorable conditions. However, a member of the Iowa national guard who was activated for federal duty, other than training, for a minimum aggregate of ninety days, and was discharged under honorable conditions, or was retired under Tit. 10 of the United States Code, shall be included as a veteran.
   d.  A member of the reserve forces of the United States who has served at least twenty years in the reserve forces and who continues to serve in the reserve forces.
   e.  A member of the Iowa national guard who has served at least twenty years in the Iowa national guard and who continues to serve in the Iowa national guard.
    Sec. 2.  Section 35.2, Code 2024, is amended to read as follows:
   35.2  Proof of veteran status for certain veterans.
   In order to fulfill any eligibility requirements under Iowa law pertaining to veteran status, a veteran described in section 35.1, subsection 2, paragraph “b”, subparagraph (6) or (7) “d” or “e”, shall submit the veteran’s retirement points accounting statement issued by the armed forces of the United States, the state adjutant general, or the adjutant general of any other state, to confirm that the person has completed twenty years of service with the reserve forces or the national guard.
    Sec. 3.  Section 425.15, subsection 1, paragraph c, Code 2024, is amended to read as follows:
   c.  A former member of the national guard of any state who otherwise meets the service requirements of section 35.1, subsection 2, paragraph “b”, subparagraph (2) or (7) “c” or “e”, with a permanent service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs, or a permanent and total disability rating based on individual unemployability that is compensated at the one hundred percent disability rate, as certified by the United States department of veterans affairs.
    Sec. 4.  Section 426A.11, subsection 2, Code 2024, is amended to read as follows:
   2.  a.  The property, not to exceed one thousand eight hundred fifty-two dollars in taxable value for assessment years beginning before January 1, 2023, of an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran, as defined in section 35.1, subsection 2, paragraph “a” or “b”.
   b.  The property, not to exceed four thousand dollars in taxable value for the assessment years beginning on or after January 1, 2023, of an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran, as defined in section 35.1, subsection 2, paragraph “a” or “b”.
    Sec. 5.  Section 426A.12, Code 2024, is amended to read as follows:
   426A.12  Exemptions to relatives.
   1.  In case any person in the foregoing classifications does not claim the exemption from taxation, it shall be allowed in the name of the person to the same extent on the property of any one of the following persons in the order named:
   a.  The spouse, or surviving spouse remaining unmarried, of a veteran, as defined in this chapter or in section 35.1, subsection 2, paragraph “a” or “b”, where they are living together or were living together at the time of the death of the veteran.
   b.  The parent whose spouse is deceased and who remains unmarried, of a veteran, as defined in this chapter or in section 35.1, subsection 2, paragraph “a” or “b”, whether living or deceased, where the parent is, or was at the time of death of the veteran, dependent on the veteran for support.
   c.  The minor child, or children owning property as tenants in common, of a deceased veteran, as defined in this chapter or in section 35.1, subsection 2, paragraph “a” or “b”.
   2.  No more than one tax exemption shall be allowed under this section or section 426A.11 in the name of a veteran, as defined in this chapter or in section 35.1, subsection 2, paragraph “a” or “b”.
    Sec. 6.  Section 426A.13, subsections 1 and 2, Code 2024, are amended to read as follows:
   1.  A person named in section 426A.11, who is a resident of and domiciled in the state of Iowa, shall receive a reduction equal to the exemption, to be made from any property owned by the person or owned by a family farm corporation of which the person is a shareholder and occupant of the property and so designated by proceeding as provided in this section. To be eligible to receive the exemption, the person claiming it shall have recorded in the office of the county recorder of the county in which is located the property designated for the exemption, evidence of property ownership by that person or the family farm corporation of which the person is a shareholder and the military certificate of satisfactory service, order transferring to inactive status, reserve, retirement, order of separation from service, honorable discharge or a copy of any of these documents of the person claiming or through whom is claimed the exemption. In the case of a person claiming the exemption as a veteran described in section 35.1, subsection 2, paragraph “b”, subparagraph (6) or (7) “d” or “e”, the person shall file the statement required by section 35.2.
   2.  The person shall file with the appropriate assessor on forms obtained from the assessor the claim for exemption for the year for which the person is first claiming the exemption. The claim shall be filed not later than July 1 of the year for which the person is claiming the exemption. The claim shall set out the fact that the person is a resident of and domiciled in the state of Iowa, and a person within the terms of section 426A.11, and shall give the volume and page on which the certificate of satisfactory service, order of separation, retirement, furlough to reserve, inactive status, or honorable discharge or certified copy thereof is recorded in the office of the county recorder, and may include the designation of the property from which the exemption is to be made, and shall further state that the claimant is the equitable or legal owner of the property designated or if the property is owned by a family farm corporation, that the person is a shareholder of that corporation and that the person occupies the property. In the case of a person claiming the exemption as a veteran described in section 35.1, subsection 2, paragraph “b”, subparagraph (6) or (7) “d” or “e”, the person shall file the statement required by section 35.2.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, “veteran” is defined for purposes of Code chapter 35 (veterans affairs) as a former member of the Iowa national guard or the reserve forces of the United States who served at least 20 years and was discharged under honorable conditions; a member of the Iowa national guard or the reserve forces of the United States who completed at least 90 days of federal active duty, other than training, and was discharged under honorable conditions or retired; a person who has served at least 20 years with the Iowa national guard or reserve forces of the United States and continues to do so; a member of particular military or civilian groups who served in certain conflicts; or an Iowa resident who served in specific military conflicts or on federal active duty, other than training, in the United States armed forces and was discharged under honorable conditions.
   This bill redefines “veteran” for purposes of Code chapter 35 by extending the requirement of Iowa residency to all categories of veterans, eliminating references to specific conflicts, and including a citation to the definition of “veteran” under federal regulations (a person who served in the active military, naval, air, or space service and who was discharged or released under conditions other than dishonorable).
   By operation of law, the bill affects the term “veteran” as used in Code sections 8A.413 (state employment preference), 35B.3 (service on county commission of veteran affairs), 35B.14 (burial expenses), 35B.16 (markers for graves), 272C.12A (professional licensure of veterans), 400.10 (civil service examination preference), 425.15 (disabled veteran tax credit), and 514C.27 (mental health and substance use disorder treatment coverage), among a variety of other Code provisions.
   The bill makes conforming changes.