Senate File 516 - Reprinted SENATE FILE 516 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 1198) (As Amended and Passed by the Senate April 20, 2017 ) A BILL FOR An Act relating to state and local finances by making 1 appropriations, providing for legal and regulatory 2 responsibilities, concerning taxation, and providing for 3 other properly related matters, and including effective date 4 and retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 516 (4) 87 tm/rn/jh

S.F. 516 DIVISION I 1 STANDING APPROPRIATIONS AND RELATED MATTERS 2 Section 1. BUDGET PROCESS FOR FISCAL YEAR 2018-2019. 3 1. For the budget process applicable to the fiscal year 4 beginning July 1, 2018, on or before October 1, 2017, in lieu 5 of the information specified in section 8.23, subsection 6 1, unnumbered paragraph 1, and section 8.23, subsection 1, 7 paragraph “a”, all departments and establishments of the 8 government shall transmit to the director of the department 9 of management, on blanks to be furnished by the director, 10 estimates of their expenditure requirements, including every 11 proposed expenditure, for the ensuing fiscal year, together 12 with supporting data and explanations as called for by the 13 director of the department of management after consultation 14 with the legislative services agency. 15 2. The estimates of expenditure requirements shall be 16 in a form specified by the director of the department of 17 management, and the expenditure requirements shall include all 18 proposed expenditures and shall be prioritized by program or 19 the results to be achieved. The estimates shall be accompanied 20 by performance measures for evaluating the effectiveness of the 21 programs or results. 22 Sec. 2. BUDGET PROCESS FOR FISCAL YEAR 2019-2020. 23 1. For the budget process applicable to the fiscal year 24 beginning July 1, 2019, on or before October 1, 2018, in lieu 25 of the information specified in section 8.23, subsection 26 1, unnumbered paragraph 1, and section 8.23, subsection 1, 27 paragraph “a”, all departments and establishments of the 28 government shall transmit to the director of the department 29 of management, on blanks to be furnished by the director, 30 estimates of their expenditure requirements, including every 31 proposed expenditure, for the ensuing fiscal year, together 32 with supporting data and explanations as called for by the 33 director of the department of management after consultation 34 with the legislative services agency. 35 -1- SF 516 (4) 87 tm/rn/jh 1/ 22

S.F. 516 2. The estimates of expenditure requirements shall be 1 in a form specified by the director of the department of 2 management, and the expenditure requirements shall include all 3 proposed expenditures and shall be prioritized by program or 4 the results to be achieved. The estimates shall be accompanied 5 by performance measures for evaluating the effectiveness of the 6 programs or results. 7 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 8 2017-2018. Notwithstanding the standing appropriations 9 in the following designated sections for the fiscal year 10 beginning July 1, 2017, and ending June 30, 2018, the amounts 11 appropriated from the general fund of the state pursuant to 12 these sections for the following designated purposes shall not 13 exceed the following amounts: 14 1. For payment of claims for nonpublic school 15 transportation under section 285.2: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,197,091 17 If total approved claims for reimbursement for nonpublic 18 school pupil transportation exceed the amount appropriated in 19 accordance with this subsection, the department of education 20 shall prorate the amount of each approved claim. 21 2. For distribution for the tribal council of the Sac and 22 Fox Indian settlement for educating American Indian children 23 under section 256.30: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95,750 25 Sec. 4. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 26 2018-2019. Notwithstanding the standing appropriations 27 in the following designated sections for the fiscal year 28 beginning July 1, 2018, and ending June 30, 2019, the amounts 29 appropriated from the general fund of the state pursuant to 30 these sections for the following designated purposes shall not 31 exceed the following amounts: 32 1. For payment of claims for nonpublic school 33 transportation under section 285.2: 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,197,091 35 -2- SF 516 (4) 87 tm/rn/jh 2/ 22

S.F. 516 If total approved claims for reimbursement for nonpublic 1 school pupil transportation exceed the amount appropriated in 2 accordance with this subsection, the department of education 3 shall prorate the amount of each approved claim. 4 2. For distribution for the tribal council of the Sac and 5 Fox Indian settlement for educating American Indian children 6 under section 256.30: 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95,750 8 Sec. 5. GENERAL ASSEMBLY. 9 1. The appropriations made pursuant to section 2.12 for the 10 expenses of the general assembly and legislative agencies for 11 the fiscal year beginning July 1, 2017, and ending June 30, 12 2018, are reduced by the following amount: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 14 2. The budgeted amounts for the general assembly and 15 legislative agencies for the fiscal year beginning July 1, 16 2017, may be adjusted to reflect the unexpended budgeted 17 amounts from the previous fiscal year. 18 3. Annual membership dues for organizations, associations, 19 and conferences shall not be paid from moneys appropriated 20 pursuant to section 2.12. 21 4. Costs for out-of-state travel and per diems for 22 out-of-state travel shall not be paid from moneys appropriated 23 pursuant to section 2.12. 24 Sec. 6. INSTRUCTIONAL SUPPORT STATE AID —— FY 2017-2018. In 25 lieu of the appropriation provided in section 257.20, 26 subsection 2, the appropriation for the fiscal year 27 beginning July 1, 2017, and ending June 30, 2018, for paying 28 instructional support state aid under section 257.20 for such 29 fiscal years is zero. 30 Sec. 7. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— FY 2017-2018 31 —— FY 2018-2019. For the fiscal year beginning July 1, 2017, 32 and ending June 30, 2018, and for the fiscal year beginning 33 July 1, 2018, and ending June 30, 2019, salary adjustments may 34 be funded using departmental revolving, trust, or special funds 35 -3- SF 516 (4) 87 tm/rn/jh 3/ 22

S.F. 516 for which the general assembly has established an operating 1 budget, provided that doing so does not exceed the operating 2 budget established by the general assembly. 3 Sec. 8. OPERATIONAL APPROPRIATIONS —— REVERSION —— FY 4 2016-2017. Notwithstanding section 8.62, at the close of 5 the fiscal year beginning July 1, 2016, and ending June 30, 6 2017, any balance of an operational appropriation that remains 7 unexpended or unencumbered shall not be encumbered or deposited 8 in the cash reserve fund as provided in section 8.62, but shall 9 instead revert to the general fund of the state at the close of 10 the fiscal year as provided in section 8.33. 11 Sec. 9. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— 12 UNAPPROPRIATED MONEYS —— FY 2017-2018 —— FY 2018-2019. For the 13 fiscal year beginning July 1, 2017, and ending June 30, 2018, 14 and for the fiscal year beginning July 1, 2018, and ending 15 June 30, 2019, salary adjustments otherwise provided may be 16 funded as determined by the department of management using 17 unappropriated moneys remaining in the department of commerce 18 revolving fund, the gaming enforcement revolving fund, the 19 gaming regulatory revolving fund, the primary road fund, the 20 road use tax fund, the fish and game protection fund, the Iowa 21 public employees’ retirement fund, and in other departmental 22 revolving, trust, or special funds for which the general 23 assembly has not made an operating budget appropriation. 24 Sec. 10. SALARY MODEL ADMINISTRATOR. The salary model 25 administrator shall work in conjunction with the legislative 26 services agency to maintain the state’s salary model used for 27 analyzing, comparing, and projecting state employee salary 28 and benefit information, including information relating to 29 employees of the state board of regents. The department of 30 revenue, the department of administrative services, the five 31 institutions under the jurisdiction of the state board of 32 regents, the judicial district departments of correctional 33 services, and the state department of transportation shall 34 provide salary data to the department of management and the 35 -4- SF 516 (4) 87 tm/rn/jh 4/ 22

S.F. 516 legislative services agency to operate the state’s salary 1 model. The format and frequency of provision of the salary 2 data shall be determined by the department of management and 3 the legislative services agency. The information shall be 4 used in collective bargaining processes under chapter 20 and 5 in calculating the funding needs contained within the annual 6 salary adjustment legislation. A state employee organization 7 as defined in section 20.3, subsection 4, may request 8 information produced by the model, but the information provided 9 shall not contain information attributable to individual 10 employees. 11 Sec. 11. Section 257.35, Code 2017, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 11A. Notwithstanding subsection 1, and in 14 addition to the reduction applicable pursuant to subsection 15 2, the state aid for area education agencies and the portion 16 of the combined district cost calculated for these agencies 17 for the fiscal year beginning July 1, 2017, and ending June 18 30, 2018, shall be reduced by the department of management by 19 fifteen million dollars. The reduction for each area education 20 agency shall be prorated based on the reduction that the agency 21 received in the fiscal year beginning July 1, 2003. 22 Sec. 12. EFFECTIVE UPON ENACTMENT. The following provision 23 or provisions of this division of this Act, being deemed of 24 immediate importance, take effect upon enactment: 25 1. The section of this division of this Act reverting to 26 the general fund any unexpended or unencumbered moneys from 27 operational appropriations. 28 DIVISION II 29 MISCELLANEOUS APPROPRIATIONS 30 Sec. 13. TRANSFER FROM CASH RESERVE FUND. Notwithstanding 31 section 8.56, subsection 3 and 4, paragraph “a”, there is 32 transferred from the cash reserve fund created in section 8.56 33 to the general fund of the state for the fiscal year beginning 34 July 1, 2016, and ending June 30, 2017, the following amount: 35 -5- SF 516 (4) 87 tm/rn/jh 5/ 22

S.F. 516 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $131,100,000 1 Sec. 14. APPROPRIATION TO CASH RESERVE FUND. There is 2 appropriated from the general fund of the state to the cash 3 reserve fund created in section 8.56 for the fiscal year 4 beginning July 1, 2017, and ending June 30, 2018, the following 5 amount: 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000,000 7 Sec. 15. GUBERNATORIAL TRANSITION. There is appropriated 8 from the general fund of the state to the offices of the 9 governor and the lieutenant governor for the fiscal year 10 beginning July 1, 2017, and ending June 30, 2018, the following 11 amount, or so much thereof as is necessary, to be used for the 12 purposes designated: 13 For expenses incurred during the gubernatorial transition: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000 15 Sec. 16. EFFECTIVE UPON ENACTMENT. The following provision 16 or provisions of this division of this Act, being deemed of 17 immediate importance, take effect upon enactment: 18 1. The section of this division of this Act transferring 19 moneys from the cash reserve fund to the general fund of the 20 state. 21 DIVISION III 22 MISCELLANEOUS PROVISIONS 23 Sec. 17. Section 2.43, unnumbered paragraph 1, Code 2017, 24 is amended to read as follows: 25 The legislative council in cooperation with the officers of 26 the senate and house shall have the duty and responsibility for 27 preparing for each session of the general assembly. Pursuant 28 to such duty and responsibility, the legislative council 29 shall assign the use of areas in the state capitol except for 30 the areas used by the governor as of January 1, 1986, and by 31 the courts as of July 1, 2003, and, in consultation with the 32 director of the department of administrative services and the 33 capitol planning commission, may assign areas in other state 34 office buildings for use of the general assembly or legislative 35 -6- SF 516 (4) 87 tm/rn/jh 6/ 22

S.F. 516 agencies. The legislative council shall provide the courts 1 with use of space in the state capitol for ceremonial purposes. 2 The legislative council may authorize the renovation, 3 remodeling and preparation of the physical facilities used or 4 to be used by the general assembly or legislative agencies 5 subject to the jurisdiction of the legislative council and 6 award contracts pursuant to such authority to carry out such 7 preparation. The legislative council may purchase supplies and 8 equipment deemed necessary for the proper functioning of the 9 legislative branch of government. 10 Sec. 18. Section 8A.322, subsection 2, Code 2017, is amended 11 to read as follows: 12 2. Except for buildings and grounds described in section 13 216B.3, subsection 6 ; section 2.43 , unnumbered paragraph 1; and 14 any buildings under the custody and control of the Iowa public 15 employees’ retirement system, the director shall assign office 16 space at the capitol, other state buildings, and elsewhere in 17 the city of Des Moines, and the state laboratories facility 18 in Ankeny, for all executive and judicial state agencies. 19 Assignments may be changed at any time. The various officers 20 to whom rooms have been so assigned may control the same while 21 the assignment to them is in force. Official apartments shall 22 be used only for the purpose of conducting the business of the 23 state. The term “capitol” or “capitol building” as used in the 24 Code shall be descriptive of all buildings upon the capitol 25 grounds. The capitol building itself is reserved for the 26 operations of the general assembly , and the governor, and , for 27 ceremonial purposes, for the courts and the . The assignment 28 and use of physical facilities for the general assembly shall 29 be pursuant to section 2.43 . 30 Sec. 19. Section 8C.7A, subsection 3, paragraph b, 31 unnumbered paragraph 1, if enacted by 2017 Iowa Acts, Senate 32 File 431, is amended to read as follows: 33 An authority shall not require a person to apply for or 34 enter into an individual license, franchise, or other agreement 35 -7- SF 516 (4) 87 tm/rn/jh 7/ 22

S.F. 516 with the authority or any other entity for the siting of 1 a small wireless facility on a utility pole located in a 2 public right-of-way. However, an authority may, through the 3 conditions set forth in a building permit obtained pursuant to 4 this subsection, do any of the following: 5 Sec. 20. NEW SECTION . 9.4A Technology modernization fund. 6 1. A technology modernization fund is created in the state 7 treasury under the control of the secretary of state. Moneys 8 in the fund are appropriated to the secretary of state for 9 purposes of modernizing technology used by the secretary of 10 state to fulfill the duties of office. 11 2. On and after July 1, 2017, any increased fee amount 12 collected by the secretary of state shall be credited to the 13 technology modernization fund. From each fee collected, the 14 amount credited to the fund equals the difference between the 15 fee amount collected and the amount assessed for the same fee 16 on June 30, 2017. 17 3. Each fiscal year, not more than two million dollars shall 18 be credited to the fund. 19 4. This section is repealed July 1, 2022. 20 Sec. 21. Section 15.329, subsection 1, paragraph f, Code 21 2017, is amended to read as follows: 22 f. The business shall not be a retail business or a business 23 where entrance is limited by a cover charge or membership 24 requirement. For purposes of this paragraph, a business 25 operated for the purpose of fulfilling customer orders is not a 26 retail business or a retail operation. 27 Sec. 22. Section 321N.4, subsection 6, Code 2017, is amended 28 to read as follows: 29 6. Insurance maintained under this chapter shall be 30 provided by an insurer governed by chapter 515 or 518 , or by 31 a surplus lines insurer governed by chapter 515I . A surplus 32 lines insurer that issues a policy pursuant to this section 33 shall be considered an insurance carrier duly authorized to 34 transact business in this state for the purposes of chapter 35 -8- SF 516 (4) 87 tm/rn/jh 8/ 22

S.F. 516 321A . 1 Sec. 23. Section 481A.38, Code 2017, is amended by adding 2 the following new subsection: 3 NEW SUBSECTION . 4. The commission shall not restrict or 4 prohibit hunting on specific private property generally or for 5 the hunting of a particular wild animal, so long as the person 6 hunting on that property is otherwise qualified to hunt in 7 this state, purchases a valid hunting license that includes 8 the wildlife habitat fee and a valid hunting license for the 9 type of wild animal being hunted, if applicable, and adheres to 10 all municipal, county, state, and federal regulations that are 11 applicable to hunting and specifically applicable to the type 12 of wild animal being hunted, including but not limited to daily 13 limits, possession limits, shooting hours, methods of take, and 14 transportation of a carcass. 15 Sec. 24. ALCOHOLIC BEVERAGE CONTROL —— STUDY. 16 1. It is the intent of the general assembly that the 17 three-tiered system of regulating the alcohol beverage industry 18 is critical to maintaining a fair and competitive marketplace. 19 The study required by this section does not preclude the 20 alcoholic beverages division from applying regulatory 21 discretion that aligns with the performance of the powers and 22 duties granted to the administrator in chapter 123. 23 2. The alcoholic beverages division of the department of 24 commerce, in conjunction with other stakeholders the division 25 deems necessary, shall conduct a study concerning enforcement 26 issues related to alcoholic beverage control, including 27 consideration of the manner of properly balancing appropriate 28 regulation of the manufacturing, distribution, and sale of 29 alcoholic liquor, wine, and beer in this state with emerging 30 trends in the industry. 31 3. In conducting the study, the division shall consider 32 any other relevant issues the division identifies for study, 33 issues relating to the three-tiered system and section 123.45, 34 as it impacts the ability of manufacturers, wholesalers, and 35 -9- SF 516 (4) 87 tm/rn/jh 9/ 22

S.F. 516 retailers to meet changing marketplace conditions and business 1 opportunities. 2 4. By July 1, 2018, the division shall submit a final report 3 to the general assembly. The report shall provide the results 4 of the study including any findings and recommendations. 5 5. During the time period of the study and consideration of 6 the issue by the general assembly during the 2019 legislative 7 session, if an applicant has a conflict with section 123.45, 8 subsection 1, paragraphs “c” or “d” , the administrator may elect 9 to defer on a final determination regarding the eligibility 10 and issue a temporary license or permit with conditions, if 11 applicable. In making a determination of whether to defer on a 12 final determination, the administrator shall balance regulatory 13 principles and practices that ensure a fair and competitive 14 marketplace with the protections of the public interests as 15 provided in chapter 123. 16 6. This section is repealed July 1, 2019. 17 Sec. 25. SEXUAL ABUSE EVIDENCE COLLECTION KITS. Any sexual 18 abuse evidence collection kit identified by a jurisdictional 19 law enforcement agency through the inventory required pursuant 20 to 2016 Iowa Acts, chapter 1042, shall be maintained by the law 21 enforcement agency indefinitely. A law enforcement agency in 22 possession of any sexual abuse evidence kit identified through 23 the inventory shall submit for analysis any kit at the request 24 of the department of justice. 25 Sec. 26. REPEAL. Chapter 304A, Code 2017, is repealed. 26 DIVISION IV 27 CORRECTIVE PROVISIONS 28 Sec. 27. Section 22.13A, subsection 5, paragraph b, as 29 enacted by 2017 Iowa Acts, House File 291, section 51, is 30 amended to read as follows: 31 b. If paragraph “a” , subparagraph (1) or (2) is not 32 consistent with the provision of a collective bargaining 33 agreement, a state agency shall provide the individuals 34 referenced in this subsection , as applicable, with regular 35 -10- SF 516 (4) 87 tm/rn/jh 10/ 22

S.F. 516 reports regarding any personnel settlement agreements entered 1 into with state employees by the state agency. 2 Sec. 28. Section 73A.26, as enacted by 2017 Iowa Acts, 3 Senate File 438, section 6, is amended to read as follows: 4 73A.26 Purpose. 5 The purpose of this chapter subchapter is to provide for 6 more economical, nondiscriminatory, neutral, and efficient 7 procurement of construction-related goods and services by this 8 state and political subdivisions of this state. 9 Sec. 29. Section 80B.19, subsection 2, if enacted by 2017 10 Iowa Acts, Senate File 509, section 22, is amended to read as 11 follows: 12 2. Internal training funds in the internal training 13 clearing fund shall be administered by the academy and shall 14 consist of moneys collected by the academy from billings issued 15 in accordance with this chapter 80B , and any other moneys 16 obtained or accepted by the academy, including but not limited 17 to gifts, loans, donations, grants, and contributions, which 18 are obtained or designated to support the activities of the 19 academy. 20 Sec. 30. Section 84A.1A, subsection 1, paragraph a, 21 subparagraph (8), subparagraph division (b), subparagraph 22 subdivision (iii), as enacted by 2017 Iowa Acts, House File 23 572, section 1, is amended to read as follows: 24 (iii) Two representatives of community-based organizations 25 that have demonstrated experience and expertise in addressing 26 the employment, training, or education needs of individuals 27 with barriers to employment as defined in the federal Workforce 28 Innovation and Opportunity Act, Pub. L. No. 113-128, §3(24), 29 including but not limited to organizations that serve veterans , 30 or that provide or support competitive, integrated employment 31 for individuals with disabilities; or that serve eligible 32 youth, as defined in the federal Workforce Innovation and 33 Opportunity Act, Pub. L. No. 113-128, §3(18), including 34 representatives of organizations that serve out-of-school 35 -11- SF 516 (4) 87 tm/rn/jh 11/ 22

S.F. 516 youth, as defined in the federal Workforce Innovation and 1 Opportunity Act, Pub. L. No. 113-128, §129(a)(1)(B). 2 Sec. 31. Section 225D.1, subsection 8, Code 2017, as amended 3 by 2017 Iowa Acts, House File 215, section 1, is amended to 4 read as follows: 5 8. “Eligible individual” means a child less than fourteen 6 years of age who has been diagnosed with autism based on a 7 diagnostic assessment of autism, is not otherwise eligible for 8 coverage for applied behavioral analysis treatment or applied 9 behavior analysis treatment under the medical assistance 10 program, section 514C.28 , 514C.31 , or other private insurance 11 coverage, and whose household income does not exceed five 12 hundred percent of the federal poverty level. 13 Sec. 32. Section 261.9, subsection 2A, paragraph b, if 14 enacted by 2017 Iowa Acts, House File 642, section 15, is 15 amended to read as follows: 16 b. Is a barber school licensed under section 158.7 or 17 a school of cosmetology arts and sciences licensed under 18 chapter 157 and is accredited by a national accrediting agency 19 recognized by the United States department of education. For 20 the fiscal year beginning July 1, 2017, an eligible institution 21 under this paragraph shall provide a matching aggregate amount 22 of institutional financial aid equal to at least seventy-five 23 percent of the amount received by the institution’s students 24 for Iowa tuition grant assistance under section 261.16A. 25 For the fiscal year beginning July 1, 2018, the institution 26 shall provide a matching aggregate amount of institutional 27 financial aid equal to at least eighty-five percent of the 28 amount received in that fiscal year. Commencing with the 29 fiscal year beginning July 1, 2019, and each succeeding fiscal 30 year, the matching aggregate amount of institutional financial 31 aid shall be at least equal to the match provided by eligible 32 institutions under section 261.16A, subsection 2 paragraph “a” . 33 Sec. 33. 2017 Iowa Acts, House File 488, section 57, as 34 enacted, is amended by striking the section and inserting in 35 -12- SF 516 (4) 87 tm/rn/jh 12/ 22

S.F. 516 lieu thereof the following: 1 SEC. 57. Section 455B.474, subsection 2, paragraph a, 2 subparagraph (1), Code 2017, is amended to read as follows: 3 (1) (a) Financial responsibility required by this 4 subsection may be established in accordance with rules adopted 5 by the commission by any one, or any combination, of the 6 following methods: insurance, guarantee, surety bond, letter 7 (i) Insurance. 8 (ii) Guarantee. 9 (iii) Surety bond. 10 (iv) Letter of credit , or qualification . 11 (v) Qualification as a self-insurer. 12 (b) In adopting requirements under this subsection , the 13 commission may specify policy or other contractual terms, 14 conditions, or defenses which are necessary or are unacceptable 15 in establishing the evidence of financial responsibility. 16 Sec. 34. 2017 Iowa Acts, House File 642, section 44, 17 subsection 1, paragraph f, unnumbered paragraph 2, if enacted, 18 is amended to read as follows: 19 From the moneys appropriated in this lettered paragraph 20 “f”, not more than $50,000 shall be used by the department for 21 expenses associated with the activities of the secondary career 22 and technical programming task force convened pursuant to this 23 Act to provide statewide support for work-based learning . 24 Sec. 35. 2017 Iowa Acts, House File 642, section 55, 25 subsection 1, paragraph f, unnumbered paragraph 2, if enacted, 26 is amended to read as follows: 27 From the moneys appropriated in this lettered paragraph 28 “f”, not more than $25,000 shall be used by the department for 29 expenses associated with the activities of the secondary career 30 and technical programming task force convened pursuant to this 31 Act to provide statewide support for work-based learning . 32 Sec. 36. 2017 Iowa Acts, Senate File 510, section 22, 33 subsection 1, if enacted, is amended to read as follows: 34 1. Notwithstanding section 466A.2, and the repeal of 35 -13- SF 516 (4) 87 tm/rn/jh 13/ 22

S.F. 516 chapter 466A as provided in this division of this Act, on and 1 after December 31, 2017, the department of agriculture and 2 land stewardship shall manage moneys credited to the watershed 3 improvement fund in the same manner as required in 2016 4 Acts, chapter 1134, section 35, including by making necessary 5 payments to satisfy any outstanding obligations incurred by the 6 watershed improvement review board prior to December 31, 2017. 7 Sec. 37. EFFECTIVE UPON ENACTMENT. The following sections 8 of this division of this Act, being deemed of immediate 9 importance, take effect upon enactment: 10 1. The section of this division of this Act amending section 11 22.13A, subsection 5, paragraph “b”. 12 2. The section of this division of this Act amending section 13 73A.26. 14 3. The section of this division of this Act amending 15 section 84A.1A, subsection 1, paragraph “a”, subparagraph (8), 16 subparagraph division (b), subparagraph subdivision (iii). 17 Sec. 38. EFFECTIVE DATE. The section of this division of 18 this Act amending section 225D.1, subsection 8, takes effect 19 January 1, 2018. 20 DIVISION V 21 WEAPONS 22 Sec. 39. Section 724.2A, as enacted by 2017 Iowa Acts, House 23 File 517, section 5, is amended to read as follows: 24 724.2A Peace officer and reserve peace officer —— defined. 25 As used in sections 724.4, 724.6 , and 724.11 , “peace officer” 26 means a certified “peace officer” and includes a reserve peace 27 officer as defined in section 80D.1A . 28 Sec. 40. Section 724.4C, subsection 1, unnumbered paragraph 29 1, as enacted by 2017 Iowa Acts, House File 517, section 8, is 30 amended to read as follows: 31 Except as provided in subsection 2, a person commits a 32 serious misdemeanor if the person is intoxicated as provided 33 under the conditions set out in section 321J.2, subsection 34 1 , paragraph “a” , “b” , or “c” , and the person does any of the 35 -14- SF 516 (4) 87 tm/rn/jh 14/ 22

S.F. 516 following: 1 Sec. 41. Section 724.17, subsection 1, as enacted by 2017 2 Iowa Acts, House File 517, section 22, is amended to read as 3 follows: 4 1. The application for a permit to acquire pistols or 5 revolvers may be made to the sheriff of the county of the 6 applicant’s residence and shall be on a form prescribed 7 and published by the commissioner of public safety. The 8 application shall require only the full name of the applicant, 9 the driver’s license or nonoperator’s identification card 10 number of the applicant, the residence of the applicant, and 11 the date and place of birth of the applicant , and whether the 12 applicant meets the criteria specified in section 724.15 . 13 The applicant shall also display an identification card that 14 bears a distinguishing number assigned to the cardholder, the 15 full name, date of birth, sex, residence address, and brief 16 description and color photograph of the cardholder, or other 17 identification as specified by rule of the department of public 18 safety. The sheriff shall conduct a criminal history check 19 concerning each applicant by obtaining criminal history data 20 from the department of public safety which shall include an 21 inquiry of the national instant criminal background check 22 system maintained by the federal bureau of investigation or any 23 successor agency. A person who makes what the person knows 24 to be a false statement of material fact on an application 25 submitted under this section or who submits what the person 26 knows to be any materially falsified or forged documentation in 27 connection with such an application commits a class “D” felony. 28 Sec. 42. Section 724.22, subsection 9, as enacted by 2017 29 Iowa Acts, House File 517, section 29, is amended to read as 30 follows: 31 9. A parent, guardian, spouse, or instructor, who knowingly 32 provides direct supervision under subsection 5, of a person 33 while intoxicated as provided under the conditions set out 34 in section 321J.2, subsection 1, or under the influence of 35 -15- SF 516 (4) 87 tm/rn/jh 15/ 22

S.F. 516 an illegal drug paragraph “a” , “b” , or “c” , commits child 1 endangerment in violation of section 726.6, subsection 1, 2 paragraph “i” . 3 Sec. 43. Section 726.6, subsection 1, paragraph i, as 4 enacted by 2017 Iowa Acts, House File 517, section 30, is 5 amended to read as follows: 6 i. Knowingly provides direct supervision of a person under 7 section 724.22, subsection 5, while intoxicated as provided 8 under the conditions set out in section 321J.2, subsection 1, 9 or under the influence of an illegal drug paragraph “a” , “b” , 10 or “c” . 11 Sec. 44. 2017 Iowa Acts, House File 517, section 50, 12 subsection 1, as enacted, is amended to read as follows: 13 1. The section sections of this Act amending section 14 sections 724.22 and 726.6 . 15 Sec. 45. REPEAL. 2017 Iowa Acts, House File 517, section 16 16, as enacted, is repealed. 17 Sec. 46. EFFECTIVE UPON ENACTMENT. The section of this 18 division of this Act amending 2017 Iowa Acts, House File 517, 19 section 50, subsection 1, being deemed of immediate importance, 20 takes effect upon enactment. 21 Sec. 47. RETROACTIVE APPLICABILITY. The section of this 22 division of this Act amending 2017 Iowa Acts, House File 517, 23 section 50, subsection 1, applies retroactively to April 13, 24 2017. 25 DIVISION VI 26 VAPOR AND ALTERNATIVE NICOTINE PRODUCTS —— TAX 27 Sec. 48. Section 453A.1, Code 2017, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 7A. “Delivery sale” means any sale of 30 an alternative nicotine product or a vapor product to a 31 purchaser in this state where the purchaser submits the order 32 for such sale by means of a telephonic or other method of 33 voice transmission, mail or any other delivery service, or the 34 internet or other online service and the alternative nicotine 35 -16- SF 516 (4) 87 tm/rn/jh 16/ 22

S.F. 516 product or vapor product is delivered by use of mail or a 1 delivery service. The sale of an alternative nicotine product 2 or vapor product shall constitute a delivery sale regardless of 3 whether the seller is located in this state. “Delivery sale” 4 does not include a sale to a distributor or retailer of any 5 alternative nicotine product or vapor product not for personal 6 consumption. 7 Sec. 49. Section 453A.1, subsection 20, Code 2017, is 8 amended to read as follows: 9 20. “Place of business” is construed to mean and include any 10 place where cigarettes are sold or where cigarettes are stored 11 within or without the state of Iowa by the holder of an Iowa 12 permit or kept for the purpose of sale or consumption; or if 13 sold from any vehicle or train, the vehicle or train on which 14 or from which such cigarettes are sold shall constitute a place 15 of business ; or for a business within or without the state that 16 conducts delivery sales, any place where alternative nicotine 17 products or vapor products are sold or where alternative 18 nicotine products or vapor products are kept for the purpose 19 of sale . 20 Sec. 50. Section 453A.13, subsection 1, Code 2017, is 21 amended to read as follows: 22 1. Permits required. Every distributor, wholesaler, 23 cigarette vendor, and retailer, now engaged or who desires to 24 become engaged in the sale or use of cigarettes, upon which a 25 tax is required to be paid, and every retailer now engaged or 26 who desires to become engaged in selling, offering for sale, or 27 distributing alternative nicotine products or vapor products , 28 including through delivery sales, shall obtain a state or 29 retail permit as a distributor, wholesaler, cigarette vendor, 30 or retailer, as the case may be. 31 Sec. 51. Section 453A.13, subsection 2, paragraph a, Code 32 2017, is amended to read as follows: 33 a. The department shall issue state permits to distributors, 34 wholesalers, and cigarette vendors and retailers that make 35 -17- SF 516 (4) 87 tm/rn/jh 17/ 22

S.F. 516 delivery sales of alternative nicotine products and vapor 1 products subject to the conditions provided in this division . 2 If an out-of-state retailer makes delivery sales of alternative 3 nicotine products or vapor products, an application shall be 4 filed with the department and a permit shall be issued for the 5 out-of-state retailer’s principal place of business. Cities 6 may issue retail permits to dealers retailers with a place of 7 business located within their respective limits. County boards 8 of supervisors may issue retail permits to dealers retailers 9 with a place of business in their respective counties, outside 10 of the corporate limits of cities. 11 Sec. 52. Section 453A.42, Code 2017, is amended by adding 12 the following new subsection: 13 NEW SUBSECTION . 2A. “Delivery sale” means any sale of 14 an alternative nicotine product or a vapor product to a 15 purchaser in this state where the purchaser submits the order 16 for such sale by means of a telephonic or other method of 17 voice transmission, mail or any other delivery service, or the 18 internet or other online service and the alternative nicotine 19 product or vapor product is delivered by use of mail or a 20 delivery service. The sale of an alternative nicotine product 21 or vapor product shall constitute a delivery sale regardless of 22 whether the seller is located in this state. “Delivery sale” 23 does not include a sale to a distributor or retailer of any 24 alternative nicotine product or vapor product not for personal 25 consumption. 26 Sec. 53. Section 453A.42, subsection 8, Code 2017, is 27 amended to read as follows: 28 8. “Place of business” means any place where tobacco 29 products are sold or where tobacco products are manufactured, 30 stored, or kept for the purpose of sale or consumption, 31 including any vessel, vehicle, airplane, train, or vending 32 machine ; or for a business within or without the state that 33 conducts delivery sales, any place where alternative nicotine 34 products or vapor products are sold or where alternative 35 -18- SF 516 (4) 87 tm/rn/jh 18/ 22