House File 2686 - Reprinted HOUSE FILE 2686 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2550) (SUCCESSOR TO HSB 664) (As Amended and Passed by the House April 9, 2024 ) A BILL FOR An Act relating to the organization, structure, and functions 1 of state and local governments, providing for salaries 2 of certain state officers, making statutory corrections, 3 resolving inconsistencies, removing ambiguities, and 4 including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 HF 2686 (3) 90 md/ns/md

H.F. 2686 DIVISION I 1 NATURAL RESOURCES 2 Section 1. Section 233A.15, Code 2024, is amended to read 3 as follows: 4 233A.15 Transfers Assignments to work in parks. 5 1. The director may assign children from the state training 6 school deemed trustworthy, to perform services for the 7 department of natural resources within the state parks, state 8 game and forest areas, and other lands under the jurisdiction 9 of the department of natural resources. The department of 10 natural resources shall provide permanent housing and work 11 guidance supervision, but the care and custody of the children 12 assigned shall remain with the department. All programs shall 13 have as their primary purpose and shall provide for inculcation 14 or the activation of attitudes, skills, and habit patterns 15 which will be conducive to the habilitation of the children 16 involved. 17 2. The director may use state-owned mobile housing 18 equipment and facilities in performing services at temporary 19 locations in the areas described in subsection 1 . 20 DIVISION II 21 DEPARTMENT OF INSPECTIONS, APPEALS, AND LICENSING 22 Sec. 2. Section 10A.309, Code 2024, is amended to read as 23 follows: 24 10A.309 Interest in affected business. 25 It shall be unlawful for the The commissioner to shall not 26 be financially interested in any business enterprise coming 27 under or affected by this subchapter during the commissioner’s 28 term of while in office, and if the commissioner violates 29 this statute, it shall be sufficient grounds for removal from 30 office, and in such case the governor shall at once declare the 31 office vacant and appoint another to fill the vacancy. 32 Sec. 3. Section 10A.310, subsection 2, Code 2024, is amended 33 to read as follows: 34 2. Subject to the approval of the director of the department 35 -1- HF 2686 (3) 90 md/ns/md 1/ 75

H.F. 2686 of workforce development , the commissioner may enter into 1 contracts with any state agency, with or without reimbursement, 2 for the purpose of obtaining the services, facilities, and 3 personnel of the agency and with the consent of any state 4 agency or political subdivision of the state, accept and use 5 the services, facilities, and personnel of the agency or 6 political subdivision, and employ experts and consultants or 7 organizations in order to expeditiously, efficiently, and 8 economically effectuate the purposes of this chapter . The 9 agreements under this subsection are subject to approval by the 10 executive council if approval is required by law. 11 Sec. 4. Section 10A.504, subsection 1, unnumbered paragraph 12 1, Code 2024, is amended to read as follows: 13 The director shall appoint and supervise a full-time an 14 executive director for each of the following boards: 15 Sec. 5. Section 10A.507, subsection 2, Code 2024, is amended 16 to read as follows: 17 2. The fund shall consist of moneys and fees collected by 18 the department for deposit in the fund and other moneys as 19 provided by law . 20 Sec. 6. Section 91C.4, Code 2024, is amended to read as 21 follows: 22 91C.4 Fees. 23 The director shall prescribe the fee for registration, 24 which fee shall not exceed fifty dollars every per year. All 25 fees collected under this chapter shall be deposited in the 26 licensing and regulation fund created in section 10A.507. 27 Sec. 7. Section 135C.9, subsection 1, paragraph b, Code 28 2024, is amended to read as follows: 29 b. The facility has been inspected by the director , who may 30 be a member of a municipal fire department, or the director’s 31 designee and the department has received either a certificate 32 of compliance or a provisional certificate of compliance by 33 the facility with the fire hazard and fire safety rules and 34 standards of the department as promulgated by the director 35 -2- HF 2686 (3) 90 md/ns/md 2/ 75

H.F. 2686 and, where applicable, the fire safety standards required for 1 participation in programs authorized by either Tit. XVIII or 2 Tit. XIX of the United States Social Security Act, codified at 3 42 U.S.C. §1395 – 1395ll and 1396 – 1396g. The certificate or 4 provisional certificate shall be signed by the director or the 5 director’s designee who made the inspection. If the director 6 or director’s designee finds a deficiency upon inspection, the 7 notice to the facility shall be provided in a timely manner 8 and shall specifically describe the nature of the deficiency, 9 identifying the Code section or subsection provision or the 10 rule or standard violated. The notice shall also specify the 11 time allowed for correction of the deficiency, at the end of 12 which time the director or director’s designee shall perform 13 a follow-up inspection. 14 Sec. 8. Section 147.80, Code 2024, is amended to read as 15 follows: 16 147.80 Establishment of fees —— administrative costs. 17 1. Each board , following approval by the department, may , or 18 at the direction of the department, shall by rule establish or 19 revise fees for the following based on the costs of sustaining 20 the board and the actual costs of the service : 21 a. Examinations. 22 b. Licensure, certification, or registration. 23 c. Renewal of licensure, certification, or registration. 24 d. Renewal of licensure, certification, or registration 25 during the grace period. 26 e. Reinstatement or reactivation of licensure, 27 certification, or registration. 28 f. Issuance of a certified statement that a person is 29 licensed, registered, or has been issued a certificate to 30 practice in this state. 31 g. Issuance of a duplicate license, registration, or 32 certificate, which shall be so designated on its face. A board 33 may require satisfactory proof that the original license, 34 registration, or certificate issued by the board has been lost 35 -3- HF 2686 (3) 90 md/ns/md 3/ 75

H.F. 2686 or destroyed. 1 h. Issuance of a renewal card. 2 i. Verification of licensure, registration, or 3 certification. 4 j. Returned checks. 5 k. Inspections. 6 2. Each board The department shall annually prepare 7 estimates of projected revenues to be generated by the all 8 fees received by the board collected as well as a projection 9 of the fairly apportioned aggregate administrative costs and 10 rental expenses attributable to the board all boards and the 11 division of the department responsible for licensing related to 12 such boards . Each board The department shall annually review 13 and , if necessary, direct the boards to adjust its the schedule 14 of fees to cover aggregate projected expenses and ensure fees 15 imposed in this state are not greater than similar fees imposed 16 by similar boards or agencies in other states . The department 17 shall annually provide to each appropriate board a comparison 18 of the amount of the board’s fees as compared to similar fees 19 imposed by similar boards or agencies in other states. 20 3. a. The board of medicine, the board of pharmacy, the 21 dental board, and the board of nursing shall retain individual 22 an executive officers director pursuant to section 10A.504 , but 23 to the extent possible shall share administrative, clerical, 24 and investigative staff . 25 b. An individual executive director may be appointed and 26 serve as the executive director of one or more of the boards 27 specified under paragraph “a” . 28 Sec. 9. Section 152.2, Code 2024, is amended to read as 29 follows: 30 152.2 Executive director. 31 The board shall retain a full-time an executive director, 32 who shall be appointed pursuant to section 10A.504 . The 33 executive director shall be a registered nurse. The governor, 34 with the approval of the executive council pursuant to section 35 -4- HF 2686 (3) 90 md/ns/md 4/ 75

H.F. 2686 8A.413, subsection 3 , under the pay plan for exempt positions 1 in the executive branch of government, shall set the salary of 2 the executive director. 3 Sec. 10. Section 153.33B, unnumbered paragraph 1, Code 4 2024, is amended to read as follows: 5 A full-time An executive director shall be appointed as 6 provided under section 10A.504 . The executive director shall 7 not be a member of the board. The duties of the executive 8 director shall be the following: 9 Sec. 11. Section 231B.4, Code 2024, is amended to read as 10 follows: 11 231B.4 Zoning —— fire and safety standards. 12 An elder group home shall be located in an area zoned 13 for single-family or multiple-family housing or in an 14 unincorporated area and shall be constructed in compliance with 15 applicable local housing codes and the rules adopted for the 16 special classification by the department. In the absence of 17 local building codes, the facility shall comply with the state 18 plumbing code established pursuant to section 135.11 105.4 and 19 the state building code established pursuant to section 103A.7 20 and the rules adopted for the special classification by the 21 department. The rules adopted for the special classification 22 by the department regarding second floor occupancy shall take 23 into consideration the mobility of the tenants. 24 Sec. 12. Section 272C.1, subsection 6, Code 2024, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . ag. The real estate appraiser examining 27 board, created pursuant to chapter 543D. 28 Sec. 13. Section 272C.2, subsection 2, Code 2024, is amended 29 by adding the following new paragraph: 30 NEW PARAGRAPH . h. Allow a licensee to apply continuing 31 education credit obtained in excess of the requirements for a 32 renewal period to the continuing education requirements for 33 the following renewal period in an amount not to exceed fifty 34 percent of the continuing education credits required for a 35 -5- HF 2686 (3) 90 md/ns/md 5/ 75

H.F. 2686 renewal period. A licensing board may adopt rules specifying 1 types of continuing education credits earned in a renewal 2 period that cannot be applied to the continuing education 3 requirements for the following renewal period. 4 Sec. 14. REPEAL. Section 91C.9, Code 2024, is repealed. 5 Sec. 15. TRANSFER. Moneys remaining in the contractor 6 registration revolving fund at the end of the fiscal year 7 beginning July 1, 2023, shall be transferred to the licensing 8 and regulation fund created in section 10A.507. 9 DIVISION III 10 DEPARTMENT OF TRANSPORTATION 11 Sec. 16. Section 321.383, subsections 1 and 2, Code 2024, 12 are amended to read as follows: 13 1. This chapter with respect to equipment on vehicles does 14 not apply to implements of husbandry, road machinery, or bulk 15 spreaders and other fertilizer and chemical equipment defined 16 as special mobile equipment, except as made applicable in this 17 section . However, the movement of implements of husbandry on a 18 roadway is subject to safety rules adopted by the department of 19 public safety . The safety rules shall prohibit the movement 20 of any power unit towing more than one implement of husbandry, 21 except implements of husbandry that are not self-propelled and 22 are capable of being towed in tandem, from the manufacturer 23 to the retail seller, from the retail seller to the farm 24 purchaser, or from the manufacturer to the farm purchaser. 25 2. When operated on a highway in this state at a speed 26 of thirty-five miles per hour or less, every farm tractor, 27 or tractor with towed equipment, self-propelled implement of 28 husbandry, road construction or maintenance vehicle, road 29 grader, horse-drawn vehicle, or any other vehicle principally 30 designed for use off the highway and any such tractor, 31 implement, vehicle, or grader when manufactured for sale or 32 sold at retail after December 31, 1971, shall be identified 33 with a reflective device in accordance with the standards of 34 the American society of agricultural engineers; however, this 35 -6- HF 2686 (3) 90 md/ns/md 6/ 75

H.F. 2686 provision shall not apply to such vehicles when traveling in 1 an escorted parade. If a person operating a vehicle drawn 2 by a horse or mule objects to using a reflective device 3 that complies with the standards of the American society of 4 agricultural engineers for religious reasons, the vehicle may 5 be identified by an alternative reflective device that is in 6 compliance with rules adopted by the department of public 7 safety . The reflective device or alternative reflective device 8 shall be visible from the rear. A vehicle other than those 9 specified in this section shall not display a reflective device 10 or an alternative reflective device. On vehicles operating at 11 speeds above thirty-five miles per hour, the reflective device 12 or alternative reflective device shall be removed or hidden 13 from view. 14 Sec. 17. Section 307.12, subsection 1, paragraph f, Code 15 2024, is amended to read as follows: 16 f. Present the department’s proposed budget to the 17 commission prior to December March 31 of each immediately 18 preceding the applicable fiscal year. 19 Sec. 18. Section 307.12, subsection 1, Code 2024, is amended 20 by adding the following new paragraph: 21 NEW PARAGRAPH . 0l. Establish divisions within the 22 department as necessary or desirable in addition to any 23 departmental division required or established by law. 24 Sec. 19. Section 307.12, subsection 2, Code 2024, is amended 25 to read as follows: 26 2. If in the interest of the state, the director may allow 27 a subsistence expense to an employee under the supervision 28 of the department’s administrator responsible for highway 29 programs and activities for continuous stay in one location 30 while on duty away from established headquarters and place 31 of domicile for a period not to exceed forty-five days; and 32 allow automobile expenses in accordance with section 8A.363 , 33 for moving an employee and the employee’s family from place of 34 present domicile to new domicile, and actual transportation 35 -7- HF 2686 (3) 90 md/ns/md 7/ 75

H.F. 2686 expense for moving of household goods. The household goods for 1 which transportation expense is allowed shall not include pets 2 or animals. 3 Sec. 20. Section 307.21, subsection 1, Code 2024, is amended 4 to read as follows: 5 1. The department’s administrator responsible for the 6 operations and finances of the department shall: 7 a. Provide for the proper maintenance and protection of 8 the grounds, buildings, and equipment of the department, in 9 cooperation with the department of administrative services. 10 b. Establish, supervise, and maintain a system of 11 centralized electronic data processing for the department, in 12 cooperation with the department of administrative services 13 management . 14 c. Assist the director in preparing Prepare the departmental 15 budget. 16 d. Provide centralized purchasing services for the 17 department, if authorized by the department of administrative 18 services. The administrator department shall, when the price 19 is reasonably competitive and the quality as intended, purchase 20 soybean-based inks and plastic products with recycled content, 21 including but not limited to plastic garbage can liners, and 22 shall purchase these items in accordance with the schedule 23 established in section 8A.315 . However, the administrator 24 department need not purchase garbage can liners in accordance 25 with the schedule if the liners are utilized by a facility 26 approved by the environmental protection commission created 27 under section 455A.6 , for purposes of recycling. For purposes 28 of this section , “recycled content” means that the content of 29 the product contains a minimum of thirty percent postconsumer 30 material. 31 e. Assist the director in employing Employ the professional, 32 technical, clerical, and secretarial staff for the department 33 and maintain employee records, in cooperation with the 34 department of administrative services and provide personnel 35 -8- HF 2686 (3) 90 md/ns/md 8/ 75

H.F. 2686 services, including but not limited to training, safety 1 education, and employee counseling. 2 f. Assist the director in coordinating Coordinate the 3 responsibilities and duties of the various divisions within the 4 department. 5 g. Carry out all other general administrative duties for the 6 department. 7 h. Perform such other duties and responsibilities as may be 8 assigned by the director. 9 Sec. 21. Section 307.21, subsection 2, unnumbered paragraph 10 1, Code 2024, is amended to read as follows: 11 When performing the duty of providing centralized purchasing 12 services under subsection 1 , the administrator department shall 13 do all of the following: 14 Sec. 22. Section 307.21, subsection 4, Code 2024, is amended 15 to read as follows: 16 4. The administrator department shall provide for the 17 purchase of qualified renewable fuels to power internal 18 combustion engines that are used to operate motor vehicles and 19 for the purchase of motor vehicles operating using engines 20 powered by qualified renewable fuels in the same manner 21 required for the director of the department of administrative 22 services pursuant to section 8A.368 . The department of 23 transportation shall compile information regarding compliance 24 with the provisions of this subsection in the same manner as 25 the department of administrative services pursuant to section 26 8A.369 . The department of transportation shall cooperate 27 with the department of administrative services in preparing 28 the annual state fleet qualified renewable fuels compliance 29 report regarding compliance with this subsection as provided 30 in section 8A.369 . 31 Sec. 23. Section 307.21, subsection 5, paragraph a, 32 unnumbered paragraph 1, Code 2024, is amended to read as 33 follows: 34 Of all new passenger vehicles and light pickup trucks 35 -9- HF 2686 (3) 90 md/ns/md 9/ 75

H.F. 2686 purchased by the administrator department , a minimum of ten 1 percent of all such vehicles and trucks purchased shall be 2 equipped with engines which utilize alternative methods of 3 propulsion, including but not limited to any of the following: 4 Sec. 24. Section 307.21, subsections 6 and 7, Code 2024, are 5 amended to read as follows: 6 6. The administrator department shall, whenever technically 7 feasible, purchase and use degradable loose foam packing 8 material manufactured from grain starches or other renewable 9 resources, unless the cost of the packing material is more than 10 ten percent greater than the cost of packing material made from 11 nonrenewable resources. For the purposes of this subsection , 12 “packing material” means material, other than an exterior 13 packing shell, that is used to stabilize, protect, cushion, or 14 brace the contents of a package. 15 7. The administrator department may purchase items from 16 the department of administrative services and may cooperate 17 with the director of the department of administrative services 18 by providing purchasing services for the department of 19 administrative services. 20 Sec. 25. Section 307.22, Code 2024, is amended to read as 21 follows: 22 307.22 Planning and programming activities. 23 1. The department’s administrator responsible for 24 transportation planning and infrastructure program development 25 department shall: 26 a. 1. Assist the director in planning Plan all modes of 27 transportation in order to develop an integrated transportation 28 system providing adequate transportation services for all 29 citizens of the state. 30 b. 2. Develop and maintain transportation statistical data 31 for the department. 32 c. 3. Assist the director in establishing, analyzing, 33 and evaluating Establish, analyze, and evaluate alternative 34 transportation policies for the state. 35 -10- HF 2686 (3) 90 md/ns/md 10/ 75

H.F. 2686 d. 4. Coordinate planning duties and responsibilities with 1 the planning functions carried on by other administrators among 2 the divisions of the department. 3 e. (1) 5. a. Annually report by July 1 of each year, 4 for both secondary and farm-to-market systems, miles of earth, 5 granular, and paved surface roads; the daily vehicle miles of 6 travel; and lineal feet of bridge deck under the jurisdiction 7 of each county’s secondary road department, as of the preceding 8 January 1, taking into account roads whose jurisdiction has 9 been transferred from the department to a county or from a 10 county to the department during the previous year. The annual 11 report shall include those roads transferred to a county 12 pursuant to section 306.8A . 13 (2) b. Miles of secondary and farm-to-market roads shall 14 not include those miles of farm-to-market extensions within 15 cities under five hundred population that are placed under 16 county secondary road jurisdiction pursuant to section 306.4 . 17 (3) c. The annual report of updated road and bridge data of 18 both the secondary and farm-to-market roads shall be submitted 19 to the Iowa county engineers association service bureau. 20 f. 6. Advise and assist the director to study Study and 21 develop highway transport economics to assure availability and 22 productivity of highway transport services. 23 g. Perform such other planning functions as may be assigned 24 by the director. 25 2. The function of planning does not include the detailed 26 design of highways or other modal transportation facilities, 27 but is restricted to the needs of this state for multimodal 28 transportation systems. 29 Sec. 26. Section 307.23, subsection 1, paragraph b, Code 30 2024, is amended to read as follows: 31 b. Provide all legal services for the department. 32 Sec. 27. Section 307.24, unnumbered paragraph 1, Code 2024, 33 is amended to read as follows: 34 The department’s administrator department shall be 35 -11- HF 2686 (3) 90 md/ns/md 11/ 75

H.F. 2686 responsible for highway programs and activities , shall plan, 1 design, construct, and maintain the state primary highways , 2 and shall administer chapters 306 through 306C , chapters 3 309 through 314 , chapters 316 through 318 , and chapter 320 4 and perform other duties as assigned by the director . The 5 department shall: 6 Sec. 28. Section 307.26, Code 2024, is amended to read as 7 follows: 8 307.26 Administration of modal Modal programs and activities. 9 The department’s administrator responsible for modal 10 programs and activities department shall: 11 1. Advise and assist the director in the development of 12 Develop aeronautics, including but not limited to the location 13 of air terminals; accessibility of air terminals by other 14 modes of public transportation; protective zoning provisions 15 considering safety factors, noise, and air pollution; 16 facilities for private and commercial aircraft; air freight 17 facilities; and such other physical and technical aspects as 18 may be necessary to meet present and future needs. 19 2. Advise and assist the director in the study of Study 20 local and regional transportation of goods and people including 21 intracity and intercity bus systems, dial-a-bus facilities, 22 rural and urban bus and taxi systems, the collection of data 23 from these systems, the study of the feasibility of increased 24 government subsidy assistance and the allocation of such 25 subsidies to each mass transportation system, the study of such 26 other physical and technical aspects which may be necessary 27 to meet present and future needs, and the application for, 28 acceptance of, and expending of federal, state, or private 29 funds for the improvement of mass transit. 30 3. Advise and assist the director in the development of 31 Develop transportation systems and programs for improving 32 passenger and freight services. 33 4. Advise and assist the director in developing Develop 34 programs in anticipation of railroad abandonment, including: 35 -12- HF 2686 (3) 90 md/ns/md 12/ 75

H.F. 2686 a. Development and evaluation of Developing and evaluating 1 programs which will encourage improvement of rail freight 2 and the upgrading of rail lines in order to improve freight 3 service. 4 b. Advising the director Determining when it may appear in 5 the best interest of the state to assume the role of advocate 6 in railroad abandonments and railroad rate schedules. 7 5. Develop and maintain a federal-state relationship 8 of programs relating to railroad safety enforcement, track 9 standards, rail equipment, operating rules, and transportation 10 of hazardous materials. 11 6. Make surveys, plans, and estimates of cost for the 12 elimination of danger at railroad crossings on highways and 13 confer with local and railroad officials with reference to 14 elimination of the danger. 15 7. Advise and assist the director in the conduct of Conduct 16 research on railroad-highway grade crossings and encourage 17 and develop a safety program in order to reduce injuries or 18 fatalities including but not limited to the following: 19 a. The establishment of Establishing standards for warning 20 devices for particularly hazardous crossings or for classes 21 of crossings on highways, which standards shall be designed 22 to reduce injuries, fatalities, and property damage. Such 23 standards shall regulate the use of warning devices and 24 signs, which shall be in addition to the requirements of 25 section 327G.2 . Implementation of such standards shall be 26 the responsibility of the government agency or department 27 or political subdivision having jurisdiction and control of 28 the highway and such implementation shall be deemed adequate 29 for the purposes of railroad grade crossing protection. The 30 department, or the political subdivision having jurisdiction, 31 may direct the installation of temporary protection while 32 awaiting installation of permanent protection. A railroad 33 crossing shall not be found to be particularly hazardous for 34 any purpose unless the department has determined it to be 35 -13- HF 2686 (3) 90 md/ns/md 13/ 75

H.F. 2686 particularly hazardous. 1 b. The development and adoption of Developing and adopting 2 classifications of crossings on public highways based upon 3 their characteristics, conditions, and hazards, and standards 4 for warning devices, signals, and signs of each crossing 5 classification. The department shall recommend a schedule 6 for implementation of the standards to the government agency, 7 department, or political subdivision having jurisdiction of 8 the highway and shall provide an annual report to the general 9 assembly on the development and adoption of classifications 10 and standards under this paragraph and their implementation, 11 including information about financing installation of warning 12 devices, signals, and signs. The department shall not be 13 liable for the development or adoption of the classifications 14 or standards. A government agency, department, or political 15 subdivision shall not be liable for failure to implement the 16 standards. A crossing warning or improvement installed or 17 maintained pursuant to standards adopted by the department 18 under this paragraph shall be deemed an adequate and 19 appropriate warning for the crossing. 20 8. Advise and assist the director to assure Assure 21 availability, efficiency, and productivity of freight and 22 passenger services and to promote the coordination of service 23 between all transportation modes. 24 9. Advise and assist the director with studies of Study 25 regulatory changes deemed necessary to effectuate economical 26 and efficient railroad service. 27 10. Advise and assist the director regarding Enter into 28 agreements with railroad corporations for the restoration, 29 conservation, or improvement of railroad as defined in section 30 327D.2, subsection 3 , on such terms, conditions, rates, 31 rentals, or subsidy levels as may be in the best interest 32 of the state. The commission may enter into contracts 33 and agreements which are binding only to the extent that 34 appropriations have been or may subsequently be made by the 35 -14- HF 2686 (3) 90 md/ns/md 14/ 75

H.F. 2686 legislature to effectuate the purposes of this subsection . 1 11. Administer chapters 324A , 327C through 327H , 327J , 328 , 2 329 , and 330 . 3 12. Administer programs and activities in chapters 306D , 4 307C , 308A , and 315 . 5 13. Perform such other duties and responsibilities as may be 6 assigned by the director. 7 14. 13. Promote river transportation and coordinate river 8 programs with other transportation modes. 9 15. 14. Advise and assist the director in the development 10 of Develop river transportation and port facilities in the 11 state. 12 Sec. 29. Section 307.27, unnumbered paragraph 1, Code 2024, 13 is amended to read as follows: 14 The department’s administrator department shall be 15 responsible for the enforcement and regulation of motor 16 carriers, registration of motor vehicles, and licensing of 17 drivers , and shall: 18 Sec. 30. Section 307.47, subsection 1, Code 2024, is amended 19 to read as follows: 20 1. The highway materials and equipment revolving fund 21 is created from moneys appropriated out of the primary road 22 fund. From this fund shall be paid all costs for materials 23 and supplies, inventoried stock supplies, maintenance and 24 operational costs of equipment, and equipment replacements 25 incurred in the operation of centralized purchasing under 26 the supervision of the administrator responsible for highway 27 programs and activities . Direct salaries and expenses properly 28 chargeable to direct salaries shall be paid from the fund. For 29 each month the administrator responsible for the operations 30 and finances of the department shall render a statement 31 to each highway unit for the actual cost of materials and 32 supplies, operational and maintenance costs of equipment, and 33 equipment depreciation used. The expense shall be paid by the 34 administrator responsible for the operations and finances of 35 -15- HF 2686 (3) 90 md/ns/md 15/ 75

H.F. 2686 the department in the same manner as other interdepartmental 1 billings are paid. The sum paid shall be credited to the 2 highway materials and equipment revolving fund. 3 Sec. 31. Section 307.48, subsection 2, Code 2024, is amended 4 to read as follows: 5 2. An employee under the supervision of the department’s 6 administrator of highways who became an employee of the state 7 department of transportation on July 1, 1974, retains all 8 rights to longevity pay so long as the employee continues 9 employment with the department. 10 Sec. 32. Section 327D.192, Code 2024, is amended to read as 11 follows: 12 327D.192 Spot checks for hazardous cargo. 13 An employee under the supervision of the department’s 14 administrator for rail and water designated by the director of 15 the department may conduct spot inspections of vehicles subject 16 to registration which are owned or operated by a railroad 17 corporation to determine whether a vehicle is used to transport 18 products or property which may be a safety hazard for the 19 operator of the vehicle subject to registration or any other 20 employee of the railroad corporation who is transported in the 21 vehicle. 22 Sec. 33. Section 327F.39, subsection 1, paragraph a, Code 23 2024, is amended to read as follows: 24 a. “Administrator” means the department’s administrator 25 for rail and water modal programs , or the administrator’s 26 director’s designee. 27 DIVISION IV 28 DEPARTMENT OF EDUCATION 29 Sec. 34. Section 256.9, unnumbered paragraph 1, Code 2024, 30 is amended to read as follows: 31 Except for the higher education division; the bureaus, 32 boards, and commissions within the higher education division; 33 and the public broadcasting board and division, the director 34 shall: 35 -16- HF 2686 (3) 90 md/ns/md 16/ 75

H.F. 2686 Sec. 35. Section 256.9, subsections 3 and 4, Code 2024, are 1 amended to read as follows: 2 3. Establish divisions of the department and assign 3 subject matter duties to divisions of the department in a 4 manner determined by the director as necessary or desirable in 5 addition to divisions required by law , unless a provision of 6 law requires a particular departmental unit or subject matter 7 to be assigned to a specific division of the department . The 8 organization of the department shall promote coordination of 9 functions and services relating to administration, supervision, 10 and improvement of instruction. The director may also reassign 11 within the department the boards, commissions, bureaus, and 12 duties specified in sections 256.111 and 256.121. 13 4. Employ personnel and assign duties and responsibilities 14 of the department. The director shall appoint a deputy 15 director and division administrators deemed necessary. 16 They shall be appointed on the basis of their professional 17 qualifications, experience in administration, and background. 18 Members of the professional staff are not subject to the merit 19 system provisions of chapter 8A, subchapter IV , and are subject 20 to section 256.10 . 21 Sec. 36. Section 256.10, Code 2024, is amended to read as 22 follows: 23 256.10 Director salary —— employment of professional staff. 24 1. The salary of the director shall be fixed by the 25 governor. 26 2. Appointments to the professional staff of the department 27 shall be without reference to political party affiliation, 28 religious affiliation, sex, or marital status, but shall be 29 based solely upon fitness, ability, and proper qualifications 30 for the particular position. The professional staff shall 31 serve at the discretion of the director. A member of the 32 professional staff shall not be dismissed for cause without 33 appropriate due process procedures including a hearing. 34 3. The director may employ full-time professional salaried 35 -17- HF 2686 (3) 90 md/ns/md 17/ 75

H.F. 2686 staff for less than twelve months each year, but such staff 1 shall be employed by the director for at least nine months of 2 each year. Salaries for full-time professional salaried staff 3 employed as provided in this subsection shall be comparable to 4 other professional salaried staff, adjusting for time worked. 5 Salaries for professional salaried staff employed for periods 6 of less than twelve months shall be paid during each month of 7 the year in which they are employed on the same schedule as all 8 other full-time permanent professional salaried staff. Such 9 staff shall have their salaries paid over twelve months. The 10 director shall provide for and the department shall pay for 11 the employer share of health and dental insurance benefits for 12 twelve months each year for the full-time professional staff 13 employed as provided in this subsection , and the health and 14 dental insurance benefits provided shall be comparable to the 15 benefits provided to all other professional staff employed by 16 the director . 17 4. The director may employ hourly staff for less than 18 twelve months each year, but such staff shall be employed by 19 the director for at least nine months of each year. Wages for 20 staff employed as provided in this subsection shall be paid 21 during the months the employee is scheduled to work on the same 22 schedule as other employees of the state. The director shall 23 provide for and the department shall pay for the employer share 24 of health and dental insurance benefits for twelve months each 25 year for hourly staff employed as provided in this subsection. 26 Sec. 37. Section 256.103, Code 2024, is amended to read as 27 follows: 28 256.103 Employees —— contracts —— termination and discharge 29 procedures. 30 Sections 279.12 through 279.19 279.19B and section 279.27 31 apply to employees of the Iowa educational services for the 32 blind and visually impaired program and employees of the Iowa 33 school for the deaf, who are licensed pursuant to subchapter 34 VII, part 3 . In following those sections in chapter 279 , the 35 -18- HF 2686 (3) 90 md/ns/md 18/ 75

H.F. 2686 references to boards of directors of school districts shall be 1 interpreted to apply to the department. 2 Sec. 38. NEW SECTION . 256.103A Iowa educational services 3 for the blind and visually impaired and Iowa school for the deaf 4 —— leave. 5 Salaried employees of the Iowa educational services for the 6 blind and visually impaired program and employees of the Iowa 7 school for the deaf who are employed on a school year basis 8 for less than twelve months per year shall be exempt from the 9 provisions of chapter 70A relating to vacation leave. In lieu 10 of vacation leave, such employees shall accrue two personal 11 leave days per school year and may carry over up to one unused 12 personal day into a subsequent school year. Such employees 13 shall not accrue more than three personal leave days at any one 14 time. Such leave shall not be paid out to the employee upon 15 separation from employment. 16 Sec. 39. Section 256.111, subsection 1, Code 2024, is 17 amended to read as follows: 18 1. The innovation division of the department of education is 19 created. The chief administrative officer head of the division 20 is the administrator who shall be a highly qualified science, 21 technology, engineering, and mathematics advocate and shall be 22 appointed by the director. 23 Sec. 40. Section 256.111, subsection 2, unnumbered 24 paragraph 1, Code 2024, is amended to read as follows: 25 The administrator shall do all of the following , subject to 26 supervision of the director : 27 Sec. 41. Section 256.111, subsection 2, paragraphs a and c, 28 Code 2024, are amended to read as follows: 29 a. Direct and organize the activities of the division, 30 including the science, technology, engineering, and mathematics 31 collaborative initiative created in subsection 3 . 32 c. Perform other duties imposed by law or assigned by the 33 director . 34 Sec. 42. Section 256.121, subsection 1, Code 2024, is 35 -19- HF 2686 (3) 90 md/ns/md 19/ 75