Senate File 638 - Reprinted SENATE FILE 638 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 1262) (As Amended and Passed by the Senate April 26, 2019 ) A BILL FOR An Act relating to state and local finances by making 1 appropriations, providing for legal and regulatory 2 responsibilities, providing for other properly related 3 matters, and including effective date, applicability, and 4 retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 638 (3) 88 ns/tm/jh

S.F. 638 DIVISION I 1 STANDING APPROPRIATIONS AND RELATED MATTERS 2 Section 1. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 3 2019-2020. Notwithstanding the standing appropriation in the 4 following designated section for the fiscal year beginning July 5 1, 2019, and ending June 30, 2020, the amount appropriated from 6 the general fund of the state pursuant to that section for the 7 following designated purpose shall not exceed the following 8 amount: 9 For payment of claims for nonpublic school transportation 10 under section 285.2: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,197,091 12 If total approved claims for reimbursement for nonpublic 13 school pupil transportation exceed the amount appropriated in 14 accordance with this section, the department of education shall 15 prorate the amount of each approved claim. 16 Sec. 2. INSTRUCTIONAL SUPPORT STATE AID —— FY 2019-2020. In 17 lieu of the appropriation provided in section 257.20, 18 subsection 2, the appropriation for the fiscal year 19 beginning July 1, 2019, and ending June 30, 2020, for paying 20 instructional support state aid under section 257.20 for such 21 fiscal year is zero. 22 Sec. 3. Section 257.35, Code 2019, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 13A. Notwithstanding subsection 1, and in 25 addition to the reduction applicable pursuant to subsection 26 2, the state aid for area education agencies and the portion 27 of the combined district cost calculated for these agencies 28 for the fiscal year beginning July 1, 2019, and ending June 29 30, 2020, shall be reduced by the department of management by 30 fifteen million dollars. The reduction for each area education 31 agency shall be prorated based on the reduction that the agency 32 received in the fiscal year beginning July 1, 2003. 33 Sec. 4. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— 34 UNAPPROPRIATED MONEYS —— FY 2019-2020 —— FY 2020-2021. For the 35 -1- SF 638 (3) 88 ns/tm/jh 1/ 19

S.F. 638 fiscal year beginning July 1, 2019, and ending June 30, 2020, 1 and for the fiscal year beginning July 1, 2020, and ending June 2 30, 2021, salary adjustments otherwise provided may be funded 3 as determined by the department of management, subject to any 4 applicable constitutional limitation, using unappropriated 5 moneys remaining in the department of commerce revolving 6 fund, the gaming enforcement revolving fund, the gaming 7 regulatory revolving fund, the primary road fund, the road 8 use tax fund, the fish and game protection fund, and the Iowa 9 public employees’ retirement fund, and in other departmental 10 revolving, trust, or special funds for which the general 11 assembly has not made an operating budget appropriation. 12 DIVISION II 13 MISCELLANEOUS APPROPRIATIONS 14 Sec. 5. DEPARTMENT OF PUBLIC SAFETY. 15 1. There is appropriated from the general fund of the 16 state to the department of public safety for the fiscal year 17 beginning July 1, 2019, and ending June 30, 2020, the following 18 amount, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 For costs associated with the training and equipment needs 21 of volunteer fire fighters: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000 23 2. Notwithstanding section 8.33, moneys appropriated in 24 this section that remain unencumbered or unobligated at the 25 close of the fiscal year shall not revert but shall remain 26 available for expenditure only for the purpose designated in 27 this section until the close of the succeeding fiscal year. 28 3. Notwithstanding section 8.39, the department of public 29 safety may reallocate moneys appropriated in this section 30 and moneys appropriated in 2019 Iowa Acts, Senate File 615, 31 section 15, if enacted, as necessary to best fulfill the needs 32 provided for in the appropriation. However, the department 33 shall not reallocate moneys appropriated to the department 34 in this section and moneys appropriated in 2019 Iowa Acts, 35 -2- SF 638 (3) 88 ns/tm/jh 2/ 19

S.F. 638 Senate File 615, section 15, if enacted, unless notice of the 1 reallocation is given to the legislative services agency and 2 the department of management prior to the effective date of the 3 reallocation. The notice shall include information regarding 4 the rationale for reallocating the moneys. The department 5 shall not reallocate moneys appropriated in this section and 6 moneys appropriated in 2019 Iowa Acts, Senate File 615, section 7 15, if enacted, for the purpose of eliminating any program. 8 DIVISION III 9 MISCELLANEOUS PROVISIONS 10 Sec. 6. Section 2C.18, Code 2019, is amended to read as 11 follows: 12 2C.18 Report to general assembly. 13 The ombudsman shall by April 1 December 31 of each year 14 submit an economically designed and reproduced report to the 15 general assembly and to the governor concerning the exercise of 16 the ombudsman’s functions during the preceding calendar fiscal 17 year. In discussing matters with which the ombudsman has been 18 concerned, the ombudsman shall not identify specific persons 19 if to do so would cause needless hardship. If the annual 20 report criticizes a named agency or official, it shall also 21 include unedited replies made by the agency or official to the 22 criticism, unless excused by the agency or official affected. 23 Sec. 7. Section 558.69, Code 2019, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 9. Notwithstanding section 331.604 or any 26 other provision of law to the contrary, the county recorder 27 shall not charge or collect a fee for the submission or filing 28 of a groundwater hazard statement. 29 DIVISION IV 30 CORRECTIVE PROVISIONS 31 Sec. 8. Section 29C.20C, if enacted by 2019 Iowa Acts, 32 Senate File 570, section 1, is amended to read as follows: 33 29C.20C Immunity —— licensed architects and professional 34 engineers. 35 -3- SF 638 (3) 88 ns/tm/jh 3/ 19

S.F. 638 An architect licensed pursuant to chapter 544A or a 1 professional engineer licensed pursuant to chapter 542B who, 2 during a disaster emergency as proclaimed by the governor or 3 a major disaster as declared by the president of the United 4 States, in good faith and at the request of or with the 5 approval of a national, state, or local public official, law 6 enforcement official, public safety official, or building 7 inspection official believed by the licensed architect or 8 professional engineer to be acting in an official capacity, 9 voluntarily and without compensation provides architectural, 10 engineering, structural, electrical, mechanical, or other 11 design professional services related to the disaster emergency 12 or major disaster shall not be liable for civil damages for any 13 acts or omissions resulting from the services provided, unless 14 such acts or omissions constitute recklessness or willful 15 and wanton misconduct. A licensed architect or professional 16 engineer who receives expense reimbursement for the performance 17 of services described in this section shall not be considered 18 to have received compensation for such services. 19 Sec. 9. Section 216A.133, subsection 3, paragraph l, if 20 enacted by 2019 Iowa Acts, House File 634, section 5, is 21 amended to read as follows: 22 l. Recommending to the board department the adoption of 23 rules pursuant to chapter 17A as it deems necessary for the 24 board and division. 25 Sec. 10. Section 225C.51, subsection 1, paragraph a, if 26 enacted by 2019 Iowa Acts, House File 690, section 8, is 27 amended to read as follows: 28 a. The director of the department of human services or the 29 director’s designee. 30 Sec. 11. Section 225C.51, subsection 3, if enacted by 2019 31 Iowa Acts, House File 690, section 8, is amended to read as 32 follows: 33 3. The director of the department of human services and the 34 director of the department of education, or their designees, 35 -4- SF 638 (3) 88 ns/tm/jh 4/ 19

S.F. 638 shall serve as co-chairpersons of the state board. Board 1 members shall not be entitled to a per diem as specified in 2 section 7E.6 and shall not be entitled to actual and necessary 3 expenses incurred while engaged in their official duties. 4 Sec. 12. Section 261H.3, subsections 1 and 2, as enacted by 5 2019 Iowa Acts, Senate File 274, section 3, are amended to read 6 as follows: 7 1. Noncommercial expressive activities protected under the 8 provisions of this chapter include but are not limited to any 9 lawful oral or written means by which members of the campus 10 community may communicate ideas to one another, including 11 but not limited to all forms of peaceful assembly, protests, 12 speeches including by invited speakers, distribution of 13 literature, circulating petitions, and publishing, including 14 publishing or streaming on an internet site, or audio or video 15 recorded in outdoor areas of campus. 16 2. A member of the campus community who wishes to engage in 17 noncommercial expressive activity in outdoor areas of campus 18 shall be permitted to do so freely, subject to reasonable 19 time, place, and manner restrictions, and as long as the 20 member’s conduct is not unlawful, does not impede others’ 21 access to a facility or use of walkways, and does not disrupt 22 the functioning of the public institution of higher education, 23 subject to the protections of subsection 1. The public 24 institution of higher education may designate other areas of 25 campus available for use by the campus community according to 26 institutional policy, but in all cases access to designated 27 areas of campus must be granted on a viewpoint-neutral basis 28 within the bounds of established principles of the first 29 amendment principles to the Constitution of the United States . 30 Sec. 13. Section 322C.2, subsection 20, if enacted by 2019 31 Iowa Acts, Senate File 435, section 2, is amended to read as 32 follows: 33 20. “Towable recreational vehicle dealer” or “dealer” means 34 a person required to be licensed under this chapter who is 35 -5- SF 638 (3) 88 ns/tm/jh 5/ 19

S.F. 638 authorized to sell and service towable recreational vehicles. 1 Sec. 14. Section 322C.15, subsection 2, paragraph b, if 2 enacted by 2019 Iowa Acts, Senate File 435, section 12, is 3 amended to read as follows: 4 b. The manufacturer’s or distributor’s business operations 5 have been abandoned or caused the dealer’s business operations 6 to close for ten consecutive business days. This subparagraph 7 paragraph does not apply if the closing is due to a normal 8 seasonal closing and the manufacturer or distributor notifies 9 the dealer of the planned closing, an act of God, a strike, 10 a labor difficulty, or any other cause over which the 11 manufacturer or distributor has no control. 12 Sec. 15. Section 456A.33C, subsection 1, unnumbered 13 paragraph 1, if enacted by 2019 Iowa Acts, House File 765, 14 section 18, is amended to read as follows: 15 For purposes of this section, unless the context otherwise 16 requires, “eligible water body” means a body of water that meet 17 meets all of the following criteria: 18 Sec. 16. Section 513D.2, subsection 2, Code 2019, as amended 19 by 2019 Iowa Acts, House File 679, section 184, if enacted, is 20 amended to read as follows: 21 2. The commissioner or of insurance may take any enforcement 22 action under the commissioner’s authority to enforce compliance 23 with this chapter . 24 Sec. 17. Section 515I.4A, subsection 1, paragraph c, as 25 enacted by 2019 Iowa Acts, Senate File 558, section 4, is 26 amended to read as follows: 27 c. The board of directors of the insurer has passed a 28 resolution seeking approval as a domestic surplus lines insurer 29 in this state and stating that the insurer shall only write 30 surplus line lines business. The resolution shall not be 31 amended without approval of the commissioner. 32 Sec. 18. Section 522E.13, subsection 6, Code 2019, as 33 amended by 2019 Iowa Acts, Senate File 559, section 6, is 34 amended to read as follows: 35 -6- SF 638 (3) 88 ns/tm/jh 6/ 19

S.F. 638 6. Whenever notice or correspondence with respect to a 1 policy of portable electronics insurance is required pursuant 2 to this section , it shall be in writing and sent within the 3 notice period required pursuant to this section . Notices 4 and correspondence shall be sent to the licensed portable 5 electronics vendor that is the policyholder at the portable 6 electronics vendor’s mailing or electronic mail address 7 specified for that purpose and to its affected enrolled 8 consumers’ last known mailing or electronic mail addresses on 9 file with the insurer or the portable electronics vendor. All 10 notices and documents that are delivered by electronic means 11 shall comply with section 505B.1, except for the provisions 12 in section 505B.1, subsection 4. The insurer or portable 13 electronics vendor shall maintain proof that the notice or 14 correspondence was sent for not less than three years after 15 that notice or correspondence was sent. 16 Sec. 19. Section 633.648, Code 2019, as amended by 2019 17 Iowa Acts, House File 610, section 34, if enacted, is amended 18 to read as follows: 19 633.648 Appointment of attorney in compromise of personal 20 injury settlements. 21 Notwithstanding the provisions of section 633.642 prior to 22 authorizing a compromise of a claim for damages on account 23 of personal injuries to the ward protected person , the court 24 may order an independent investigation by an attorney other 25 than by the attorney for the conservator. The cost of such 26 investigation, including a reasonable attorney fee, shall be 27 taxed as part of the cost of the conservatorship. 28 Sec. 20. Section 692C.1, subsection 1, paragraph a, if 29 enacted by 2019 Iowa Acts, House File 681, section 1, is 30 amended to read as follows: 31 a. “Covered individual” means an individual who has, seeks 32 to have, or may have access to children, the elderly, or 33 individuals with disabilities served by a qualified entity and 34 who is employed by , volunteers with, or seeks to volunteer with 35 -7- SF 638 (3) 88 ns/tm/jh 7/ 19

S.F. 638 a qualified entity; or owns or operates or seeks to own or 1 operate, a qualified entity. 2 Sec. 21. 2019 Iowa Acts, Senate File 333, section 104, 3 subsection 6, is amended to read as follows: 4 6. Sections 15E.206, subsection 3, paragraph “a”; 5 15E.207, subsection 2, paragraph “b”, subparagraph (2), 6 subparagraph division (c); 15E.208, subsection 5, paragraph 7 “g”, subparagraphs (1) and (2); 15E.208, subsection 6, 8 paragraph “d”, subparagraph (1), subparagraph division 9 (a); 135.61, unnumbered paragraph 1; 135.61, subsection 10 1, paragraph “d”; 135.61, subsection 4; 135.62, subsection 11 1; 135.62, subsection 2, paragraph “f”, subparagraphs (2), 12 (4), and (5); 135.63, subsection 1; 135.63, subsection 2, 13 unnumbered paragraph 1; 135.63, subsection 2, paragraph “f”; 14 135.63, subsection 2, paragraph “g”, subparagraph (1); 135.63, 15 subsection 2, paragraph “h”, subparagraph (1), unnumbered 16 paragraph 1; 135.63, subsection 2, paragraph “j”; 135.63, 17 subsection 2, paragraph “k”, subparagraph (1), unnumbered 18 paragraph 1; 135.63, subsection 2, paragraph “l”, unnumbered 19 paragraph 1; 135.63, subsection 2, paragraphs “m” and “n”; 20 135.63, subsection 2, paragraph “p”, unnumbered paragraph 1; 21 135.63, subsection 3; 135.64, subsection 3; 135.72, unnumbered 22 paragraph 1; 135.73, subsection 1; 135.73, subsection 23 2, unnumbered paragraph 1; 135.73, subsection 3; 135.74, 24 subsections 1 and 3; 135.75, subsection 2; 135.76, subsection 25 1; 135.100, unnumbered paragraph 1; 135.105A, subsection 5; 26 135.108, unnumbered paragraph 1; 135.140, unnumbered paragraph 27 1; 249K.2, subsection 6; 490.120, subsection 12, paragraph “c”, 28 subparagraph (1); 490.140, subsection 29; 490.640, subsection 29 8; 490.809, subsection 2; 490.858, subsection 2; 490.1101, 30 unnumbered paragraph 1; 490.1105, subsection 3; 490.1107, 31 subsection 1, paragraph “h”; 490.1107, subsection 2; 490.1107, 32 subsection 4, paragraph “b”; 490.1108, subsection 1; 490.1114, 33 subsection 1; 490.1114, subsection 2, paragraph “g”; 490.1202, 34 subsection 7; 490.1301, unnumbered paragraph 1; 490.1320, 35 -8- SF 638 (3) 88 ns/tm/jh 8/ 19

S.F. 638 subsection 1; 490.1320, subsection 3, paragraphs “a” and “b”; 1 490.1322, subsection 2, paragraph “c”; 490.1323, subsection 2 3; 490.1331, subsection 1; 490.1340, subsection 2, paragraph 3 “a”, subparagraph (1); 490.1403, subsection 3; 490.1405, 4 subsection 2, paragraph “c”; 499.69A, subsection 6; 524.1309, 5 subsection 8; 524.1406, subsection 1; 524.1417, subsection 1; 6 and 524.1805, subsection 6, Code 2019, are amended by striking 7 the word “division” and inserting in lieu thereof the word 8 “subchapter”. 9 Sec. 22. EFFECTIVE DATE. The following, being deemed of 10 immediate importance, take effect upon enactment: 11 1. The section of this division of this Act amending section 12 29C.20. 13 2. The section of this division of this Act amending section 14 261H.3, subsections 1 and 2. 15 Sec. 23. EFFECTIVE DATE. The following takes effect January 16 1, 2020: 17 The section of this division of this Act amending section 18 633.648. 19 Sec. 24. RETROACTIVE APPLICABILITY. The following applies 20 retroactively to the effective date of 2019 Iowa Acts, Senate 21 File 570, if enacted: 22 The section of this division of this Act amending section 23 29C.20. 24 Sec. 25. RETROACTIVE APPLICABILITY. The following applies 25 retroactively to March 27, 2019: 26 The section of this division of this Act amending section 27 261H.3, subsections 1 and 2. 28 Sec. 26. APPLICABILITY. The following applies to 29 guardianships and guardianship proceedings for adults and 30 conservatorships and conservatorship proceedings for adults and 31 minors established or pending before, on, or after January 1, 32 2020: 33 The section of this division of this Act amending section 34 633.648. 35 -9- SF 638 (3) 88 ns/tm/jh 9/ 19

S.F. 638 DIVISION V 1 FLOOD RECOVERY 2 Sec. 27. NEW SECTION . 418.16 Flood recovery fund. 3 1. A flood recovery fund is established in the state 4 treasury under the control of the board. The fund shall 5 consist of moneys appropriated to the fund by the general 6 assembly and any other moneys available to, obtained by, or 7 accepted by the board for deposit in the fund. Moneys in the 8 fund are appropriated to the department and shall be used for 9 the purposes designated in this section. Moneys in the fund 10 shall not supplant any federal disaster recovery moneys. 11 2. The board may award moneys from the fund to eligible 12 political subdivisions of the state. A political subdivision 13 of the state is eligible to receive moneys from the fund if 14 the political subdivision is located in a county designated 15 under presidential disaster declaration DR-4421-IA and is also 16 located in a county where the federal emergency management 17 agency’s individual assistance program has been activated. 18 3. In order to be awarded moneys from the fund, a political 19 subdivision of the state shall submit a project application 20 to the department for consideration by the board. The board 21 shall prescribe application forms and application instructions. 22 Project applications shall include all of the following: 23 a. A description of the project and the manner in which 24 the project supports flood response, flood recovery, or flood 25 mitigation activities. 26 b. A description of the financial assistance needed from the 27 fund. 28 c. Details on any additional moneys to be applied to the 29 project. 30 4. a. The board shall review all project applications. 31 During the review of a project application, the board shall 32 consider, at a minimum, all of the following: 33 (1) Whether the project supports flood response, flood 34 recovery, or flood mitigation activities. 35 -10- SF 638 (3) 88 ns/tm/jh 10/ 19

S.F. 638 (2) Whether moneys from the fund are essential to meet 1 the necessary expenses or serious needs of the political 2 subdivision related to flood response, flood recovery, or flood 3 mitigation. 4 b. Upon review of a project application, the board shall 5 approve, defer, or deny the application. If a project 6 application is approved, the board shall specify the amount of 7 moneys from the fund awarded to the political subdivision. The 8 board shall negotiate and execute on behalf of the department 9 all necessary agreements to provide the moneys. If a project 10 application is deferred or denied, the board shall state the 11 reasons for such deferral or denial. 12 5. Notwithstanding section 8.33, moneys in the fund 13 that remain unencumbered or unobligated at the close of a 14 fiscal year shall not revert but shall remain available for 15 expenditure for the purposes designated in this section. 16 Notwithstanding section 12C.7, subsection 2, interest or 17 earnings on moneys deposited in the fund shall be credited to 18 the fund. 19 Sec. 28. FLOOD RECOVERY APPROPRIATION. There is 20 appropriated from the general fund of the state to the 21 department of homeland security and emergency management, for 22 the fiscal year beginning July 1, 2018, and ending June 30, 23 2019, the following amount, or so much thereof as is necessary, 24 to be credited to the flood recovery fund created in section 25 418.16, as enacted by this Act, and used for the purposes 26 designated in section 418.16, as enacted by this Act: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 28 Sec. 29. EMERGENCY RULES. The department of homeland 29 security and emergency management may adopt emergency 30 rules under section 17A.4, subsection 3, and section 17A.5, 31 subsection 2, paragraph “b”, to implement the provisions of 32 this division of this Act and the rules shall be effective 33 immediately upon filing unless a later date is specified in the 34 rules. Any rules adopted in accordance with this section shall 35 -11- SF 638 (3) 88 ns/tm/jh 11/ 19

S.F. 638 also be published as a notice of intended action as provided 1 in section 17A.4. 2 Sec. 30. EFFECTIVE DATE. This division of this Act, being 3 deemed of immediate importance, takes effect upon enactment. 4 DIVISION VI 5 STATE BUDGET PROCESS 6 Sec. 31. Section 8.6, Code 2019, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 16. Salary model administrator. To 9 designate a position within the department to serve as the 10 salary model administrator. 11 a. The salary model administrator shall work in conjunction 12 with the legislative services agency to maintain the state’s 13 salary model used for analyzing, comparing, and projecting 14 state employee salary and benefit information, including 15 information relating to employees of the state board of 16 regents. 17 b. The department of revenue, the department of 18 administrative services, the institutions governed by the state 19 board of regents pursuant to section 262.7, each judicial 20 district’s department of correctional services, and the state 21 department of transportation shall provide salary data to the 22 department of management and the legislative services agency 23 to operate the state’s salary model. The format and frequency 24 of provision of the salary data shall be determined by the 25 department of management and the legislative services agency. 26 c. The information shall be used in collective bargaining 27 processes under chapter 20 and in calculating the funding needs 28 contained within any annual salary adjustment legislation. 29 A state employee organization as defined in section 20.3, 30 subsection 4, may request information produced by the model, 31 but the information provided shall not contain information 32 attributable to individual employees. 33 Sec. 32. Section 8.23, subsection 1, unnumbered paragraph 34 1, Code 2019, is amended to read as follows: 35 -12- SF 638 (3) 88 ns/tm/jh 12/ 19

S.F. 638 On or before October 1, prior to each legislative session, 1 all departments and establishments of the government shall 2 transmit to the director, on blanks to be furnished by the 3 director, estimates of their expenditure requirements, 4 including every proposed expenditure, for the ensuing fiscal 5 year, classified so as to distinguish between expenditures 6 estimated for administration, operation, and maintenance, and 7 the cost of each project involving the purchase of land or the 8 making of a public improvement or capital outlay of a permanent 9 character, together with supporting data and explanations 10 as called for by the director after consultation with the 11 legislative services agency . 12 Sec. 33. Section 8.23, subsection 1, paragraph a, Code 2019, 13 is amended to read as follows: 14 a. The estimates of expenditure requirements shall be 15 based upon seventy-five percent of the funding provided for 16 the current fiscal year accounted for by program reduced by 17 the historical employee vacancy factor in a form specified by 18 the director , and the remainder of the estimate of expenditure 19 requirements shall include all proposed expenditures and shall 20 be prioritized by program or the results to be achieved . The 21 estimates shall be accompanied with by performance measures 22 for evaluating the effectiveness of the program programs or 23 results . 24 Sec. 34. Section 602.1301, subsection 2, paragraph a, 25 unnumbered paragraph 1, Code 2019, is amended to read as 26 follows: 27 As early as possible, but not later than December 1, the 28 supreme court shall submit to the legislative services agency 29 the annual budget request and detailed supporting information 30 for the judicial branch. The submission shall be designed 31 to assist the legislative services agency in its preparation 32 for legislative consideration of the budget request. The 33 information submitted shall contain and be arranged in a format 34 substantially similar to the format specified by the director 35 -13- SF 638 (3) 88 ns/tm/jh 13/ 19

S.F. 638 of the department of management and used by all departments 1 and establishments in transmitting to the director estimates 2 of their expenditure requirements pursuant to section 8.23 , 3 except the estimates of expenditure requirements shall be based 4 upon one hundred percent of funding for the current fiscal 5 year accounted for by program, and using the same line item 6 definitions of expenditures as used for the current fiscal 7 year’s budget request, and the remainder of the estimate of 8 expenditure requirements prioritized by program . The supreme 9 court shall also make use of the department of management’s 10 automated budget system when submitting information to the 11 director of the department of management to assist the director 12 in the transmittal of information as required under section 13 8.35A . The supreme court shall budget and track expenditures 14 by the following separate organization codes: 15 DIVISION VII 16 BLACKOUT SPECIAL REGISTRATION PLATES 17 Sec. 35. Section 321.34, Code 2019, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 11C. Blackout plates. 20 a. Upon application and payment of the proper fees, 21 the director may issue blackout plates to the owner of a 22 motor vehicle subject to registration under section 321.109, 23 subsection 1, autocycle, motor truck, motor home, multipurpose 24 vehicle, motorcycle, trailer, or travel trailer. 25 b. Blackout plates shall be designed by the department. A 26 blackout plate’s background shall be black, and the plate’s 27 letters and numbers shall be white. 28 c. The special blackout fee for letter-number designated 29 blackout plates is thirty-five dollars. An applicant may 30 obtain personalized blackout plates upon payment of the fee for 31 personalized plates as provided in subsection 5, which is in 32 addition to the special blackout fee. The fees collected by 33 the director under this subsection shall be paid monthly to the 34 treasurer of state and deposited in the road use tax fund. 35 -14- SF 638 (3) 88 ns/tm/jh 14/ 19

S.F. 638 d. Upon receipt of the special registration plates, the 1 applicant shall surrender the current registration plates to 2 the county treasurer. The county treasurer shall validate 3 the special registration plates in the same manner as regular 4 registration plates are validated under this section. The 5 annual special blackout fee for letter-number designated plates 6 is ten dollars which shall be paid in addition to the regular 7 annual registration fee. The annual fee for personalized 8 blackout plates is five dollars which shall be paid in addition 9 to the annual special blackout fee and the regular annual 10 registration fee. The annual special blackout fee shall be 11 credited as provided under paragraph “c” . 12 e. The department shall not condition the issuance of 13 blackout plates on the receipt of any number of orders for 14 blackout plates. 15 Sec. 36. Section 321.166, subsection 9, Code 2019, is 16 amended to read as follows: 17 9. Special registration plates issued pursuant to section 18 321.34 , other than gold star, medal of honor, collegiate, fire 19 fighter, and natural resources , and blackout registration 20 plates, shall be consistent with the design and color of 21 regular registration plates but shall provide a space on a 22 portion of the plate for the purpose of allowing the placement 23 of a distinguishing processed emblem or an organization 24 decal. Special registration plates shall also comply with 25 the requirements for regular registration plates as provided 26 in this section to the extent the requirements are consistent 27 with the section authorizing a particular special vehicle 28 registration plate. 29 DIVISION VIII 30 GAMBLING REGULATION 31 Sec. 37. Section 99F.7A, subsection 3, if enacted by 2019 32 Iowa Acts, Senate File 617, section 10, is amended to read as 33 follows: 34 3. A licensee under this section may enter into operating 35 -15- SF 638 (3) 88 ns/tm/jh 15/ 19

S.F. 638 agreements with one or two entities to have up to a total of 1 two individually branded internet sites to conduct advance 2 deposit sports wagering for the licensee, unless one additional 3 operating agreement or individually branded internet site 4 is authorized by the commission. However, a person shall 5 not sell, grant, assign, or turn over to another person the 6 operation of an individually branded internet site to conduct 7 advance deposit wagering for the licensee without the approval 8 of the commission. This section does not prohibit an agreement 9 entered into between a licensee under this section and an 10 advanced deposit sports wagering operator as approved by the 11 commission. 12 Sec. 38. Section 99F.13, Code 2019, is amended to read as 13 follows: 14 99F.13 Annual audit of licensee operations. 15 Within ninety days after the end of the licensee’s fiscal 16 year, the licensee shall transmit to the commission an audit 17 of the licensee’s total gambling operations, including an 18 itemization of all expenses and subsidies. For a licensed 19 subsidiary of a parent company, an audit of the parent company 20 meets the requirements of this section. All audits shall 21 be conducted by certified public accountants authorized 22 to practice in the state of Iowa under chapter 542 who are 23 selected by the board of supervisors of the county in which the 24 licensee operates . 25 DIVISION IX 26 PUBLIC UTILITIES 27 Sec. 39. Section 476.6, subsection 15, paragraph c, 28 subparagraphs (2) and (4), Code 2019, are amended to read as 29 follows: 30 (2) Notwithstanding the goals developed pursuant to 31 paragraph “b” , the board shall not require or allow a gas 32 utility to adopt an energy efficiency plan that results in 33 projected cumulative average annual costs that exceed one 34 and one-half percent of the gas utility’s expected annual 35 -16- SF 638 (3) 88 ns/tm/jh 16/ 19

S.F. 638 Iowa retail rate revenue from retail customers in the state, 1 shall not require or allow an electric utility to adopt an 2 energy efficiency plan that results in projected cumulative 3 average annual costs that exceed two percent of the electric 4 utility’s expected annual Iowa retail rate revenue from retail 5 customers in the state, and shall not require or allow an 6 electric utility to adopt a demand response plan that results 7 in projected cumulative average annual costs that exceed two 8 percent of the electric utility’s expected annual Iowa retail 9 rate revenue from retail customers in the state. For purposes 10 of determining the two percent threshold amount, the board 11 shall exclude from an electric utility’s expected annual Iowa 12 retail rate revenue the revenues expected from customers that 13 have received exemptions from energy efficiency plans pursuant 14 to paragraph “a” . This subparagraph shall apply to energy 15 efficiency plans and demand response plans that are effective 16 on or after January 1, 2019. 17 (4) The board shall approve, reject, or modify a plan filed 18 pursuant to this subsection no later than March 31, 2019. If 19 the board fails to approve, reject, or modify a plan filed by a 20 gas or electric utility on or before such date, any plan filed 21 by the gas or electric utility that was approved by the board 22 prior to May 4, 2018, shall be terminated. The board shall 23 not require or allow a gas or electric utility to implement an 24 energy efficiency plan or demand response plan that does not 25 meet the requirements of this subsection . 26 DIVISION X 27 BOARD OF REGENTS CAPITAL PROJECTS 28 Sec. 40. BOARD OF REGENTS CAPITAL PROJECTS REPORT. 29 1. The state board of regents shall submit a written report, 30 including such information and recommendations as required by 31 this section, to the general assembly by December 13, 2019, 32 regarding the financing of capital projects at institutions 33 under the control of the state board of regents. 34 2. The written report shall include a list of all capital 35 -17- SF 638 (3) 88 ns/tm/jh 17/ 19

S.F. 638 projects initiated by an institution under the control of the 1 state board of regents since January 1, 2004, in which the 2 state provided at least a part of the financing for the project 3 from an appropriation from the rebuild Iowa infrastructure fund 4 created in section 8.57. For each project listed, the report 5 shall include all of the following information: 6 a. Total cost of each project. 7 b. The amount and percentage of each project financed 8 through donations and gifts from private sources. 9 c. The amount and percentage of each project financed 10 through funding from the federal government. 11 d. The amount and percentage of each project financed 12 through institution sources. 13 e. The amount and percentage of each project financed 14 through state dollars. 15 f. The amount and percentage of each project financed 16 through other sources. 17 g. Whether each project was considered a renovation or new 18 construction. 19 3. The written report shall include, for each year since 20 January 1, 2004, the percentage of capital project costs that 21 were covered by donations and gifts from private sources for 22 capital projects that did not receive state funding. 23 4. The written report shall include information regarding 24 how the state board of regents defines new construction and 25 renovations, a list of capital projects initiated due to 26 extraordinary circumstances, and the current method used by 27 the state board of regents and institutions under the control 28 of the state board of regents to develop financing plans for 29 capital projects. 30 5. The written report shall also include recommendations to 31 the general assembly regarding the following: 32 a. The type of capital projects that should be eligible for 33 state funding. 34 b. The share of state-funded capital projects that should be 35 -18- SF 638 (3) 88 ns/tm/jh 18/ 19

S.F. 638 funded with non-state dollars. 1 c. How the fundraising plan will be developed for 2 state-funded projects. 3 Sec. 41. REPEAL. Section 262.67, if enacted by 2019 Iowa 4 Acts, House File 765, section 16, is repealed. 5 DIVISION XI 6 WATERSHED MANAGEMENT AUTHORITIES 7 Sec. 42. Section 466B.22, Code 2019, is amended by adding 8 the following new subsection: 9 NEW SUBSECTION . 5. If a portion of a United States 10 geological survey hydrologic unit code 8 watershed is located 11 outside of this state, any political subdivision in such a 12 watershed may participate in any watershed management authority 13 which includes the county in which the political subdivision 14 is located. 15 -19- SF 638 (3) 88 ns/tm/jh 19/ 19