Senate File 516 - IntroducedA Bill ForAn Act 1relating to state and local finances by making
2appropriations, providing for legal and regulatory
3responsibilities, concerning taxation, and providing for
4other properly related matters, and including effective date
5and retroactive applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2STANDING APPROPRIATIONS AND RELATED MATTERS
3   Section 1.  BUDGET PROCESS FOR FISCAL YEAR 2018-2019.
   41.  For the budget process applicable to the fiscal year
5beginning July 1, 2018, on or before October 1, 2017, in lieu
6of the information specified in section 8.23, subsection
71, unnumbered paragraph 1, and section 8.23, subsection 1,
8paragraph “a”, all departments and establishments of the
9government shall transmit to the director of the department
10of management, on blanks to be furnished by the director,
11estimates of their expenditure requirements, including every
12proposed expenditure, for the ensuing fiscal year, together
13with supporting data and explanations as called for by the
14director of the department of management after consultation
15with the legislative services agency.
   162.  The estimates of expenditure requirements shall be
17in a form specified by the director of the department of
18management, and the expenditure requirements shall include all
19proposed expenditures and shall be prioritized by program or
20the results to be achieved. The estimates shall be accompanied
21by performance measures for evaluating the effectiveness of the
22programs or results.
23   Sec. 2.  BUDGET PROCESS FOR FISCAL YEAR 2019-2020.
   241.  For the budget process applicable to the fiscal year
25beginning July 1, 2019, on or before October 1, 2018, in lieu
26of the information specified in section 8.23, subsection
271, unnumbered paragraph 1, and section 8.23, subsection 1,
28paragraph “a”, all departments and establishments of the
29government shall transmit to the director of the department
30of management, on blanks to be furnished by the director,
31estimates of their expenditure requirements, including every
32proposed expenditure, for the ensuing fiscal year, together
33with supporting data and explanations as called for by the
34director of the department of management after consultation
35with the legislative services agency.
-1-
   12.  The estimates of expenditure requirements shall be
2in a form specified by the director of the department of
3management, and the expenditure requirements shall include all
4proposed expenditures and shall be prioritized by program or
5the results to be achieved. The estimates shall be accompanied
6by performance measures for evaluating the effectiveness of the
7programs or results.
8   Sec. 3.  LIMITATIONS OF STANDING APPROPRIATIONS — FY
92017-2018.
  Notwithstanding the standing appropriations
10in the following designated sections for the fiscal year
11beginning July 1, 2017, and ending June 30, 2018, the amounts
12appropriated from the general fund of the state pursuant to
13these sections for the following designated purposes shall not
14exceed the following amounts:
   151.  For payment of claims for nonpublic school
16transportation under section 285.2:
..................................................  $178,197,091
   18If total approved claims for reimbursement for nonpublic
19school pupil transportation exceed the amount appropriated in
20accordance with this subsection, the department of education
21shall prorate the amount of each approved claim.
   222.  For distribution for the tribal council of the Sac and
23Fox Indian settlement for educating American Indian children
24under section 256.30:
..................................................  $2595,750
26   Sec. 4.  LIMITATIONS OF STANDING APPROPRIATIONS — FY
272018-2019.
  Notwithstanding the standing appropriations
28in the following designated sections for the fiscal year
29beginning July 1, 2018, and ending June 30, 2019, the amounts
30appropriated from the general fund of the state pursuant to
31these sections for the following designated purposes shall not
32exceed the following amounts:
   331.  For payment of claims for nonpublic school
34transportation under section 285.2:
..................................................  $358,197,091
-2-
   1If total approved claims for reimbursement for nonpublic
2school pupil transportation exceed the amount appropriated in
3accordance with this subsection, the department of education
4shall prorate the amount of each approved claim.
   52.  For distribution for the tribal council of the Sac and
6Fox Indian settlement for educating American Indian children
7under section 256.30:
..................................................  $895,750
9   Sec. 5.  GENERAL ASSEMBLY.
   101.  The appropriations made pursuant to section 2.12 for the
11expenses of the general assembly and legislative agencies for
12the fiscal year beginning July 1, 2017, and ending June 30,
132018, are reduced by the following amount:
..................................................  $14400,000
   152.  The budgeted amounts for the general assembly and
16legislative agencies for the fiscal year beginning July 1,
172017, may be adjusted to reflect the unexpended budgeted
18amounts from the previous fiscal year.
   193.  Annual membership dues for organizations, associations,
20and conferences shall not be paid from moneys appropriated
21pursuant to section 2.12.
   224.  Costs for out-of-state travel and per diems for
23out-of-state travel shall not be paid from moneys appropriated
24pursuant to section 2.12.
25   Sec. 6.  INSTRUCTIONAL SUPPORT STATE AID — FY 2017-2018.  In
26lieu of the appropriation provided in section 257.20,
27subsection 2, the appropriation for the fiscal year
28beginning July 1, 2017, and ending June 30, 2018, for paying
29instructional support state aid under section 257.20 for such
30fiscal years is zero.
31   Sec. 7.  SPECIAL FUNDS — SALARY ADJUSTMENTS — FY 2017-2018
32— FY 2018-2019.
  For the fiscal year beginning July 1, 2017,
33and ending June 30, 2018, and for the fiscal year beginning
34July 1, 2018, and ending June 30, 2019, salary adjustments may
35be funded using departmental revolving, trust, or special funds
-3-1for which the general assembly has established an operating
2budget, provided that doing so does not exceed the operating
3budget established by the general assembly.
4   Sec. 8.  OPERATIONAL APPROPRIATIONS — REVERSION — FY
52016-2017.
  Notwithstanding section 8.62, at the close of
6the fiscal year beginning July 1, 2016, and ending June 30,
72017, any balance of an operational appropriation that remains
8unexpended or unencumbered shall not be encumbered or deposited
9in the cash reserve fund as provided in section 8.62, but shall
10instead revert to the general fund of the state at the close of
11the fiscal year as provided in section 8.33.
12   Sec. 9.  SPECIAL FUNDS — SALARY ADJUSTMENTS —
13UNAPPROPRIATED MONEYS — FY 2017-2018 — FY 2018-2019.
  For the
14fiscal year beginning July 1, 2017, and ending June 30, 2018,
15and for the fiscal year beginning July 1, 2018, and ending
16June 30, 2019, salary adjustments otherwise provided may be
17funded as determined by the department of management using
18unappropriated moneys remaining in the department of commerce
19revolving fund, the gaming enforcement revolving fund, the
20gaming regulatory revolving fund, the primary road fund, the
21road use tax fund, the fish and game protection fund, the Iowa
22public employees’ retirement fund, and in other departmental
23revolving, trust, or special funds for which the general
24assembly has not made an operating budget appropriation.
25   Sec. 10.  SALARY MODEL ADMINISTRATOR.  The salary model
26administrator shall work in conjunction with the legislative
27services agency to maintain the state’s salary model used for
28analyzing, comparing, and projecting state employee salary
29and benefit information, including information relating to
30employees of the state board of regents. The department of
31revenue, the department of administrative services, the five
32institutions under the jurisdiction of the state board of
33regents, the judicial district departments of correctional
34services, and the state department of transportation shall
35provide salary data to the department of management and the
-4-1legislative services agency to operate the state’s salary
2model. The format and frequency of provision of the salary
3data shall be determined by the department of management and
4the legislative services agency. The information shall be
5used in collective bargaining processes under chapter 20 and
6in calculating the funding needs contained within the annual
7salary adjustment legislation. A state employee organization
8as defined in section 20.3, subsection 4, may request
9information produced by the model, but the information provided
10shall not contain information attributable to individual
11employees.
12   Sec. 11.  Section 257.35, Code 2017, is amended by adding the
13following new subsection:
14   NEW SUBSECTION.  11A.  Notwithstanding subsection 1, and in
15addition to the reduction applicable pursuant to subsection
162, the state aid for area education agencies and the portion
17of the combined district cost calculated for these agencies
18for the fiscal year beginning July 1, 2017, and ending June
1930, 2018, shall be reduced by the department of management by
20fifteen million dollars. The reduction for each area education
21agency shall be prorated based on the reduction that the agency
22received in the fiscal year beginning July 1, 2003.
23   Sec. 12.  EFFECTIVE UPON ENACTMENT.  The following provision
24or provisions of this division of this Act, being deemed of
25immediate importance, take effect upon enactment:
   261.  The section of this division of this Act reverting to
27the general fund any unexpended or unencumbered moneys from
28operational appropriations.
29DIVISION II
30MISCELLANEOUS APPROPRIATIONS
31   Sec. 13.  TRANSFER FROM CASH RESERVE FUND.  Notwithstanding
32section 8.56, subsections 3 and 4, there is transferred from
33the cash reserve fund created in section 8.56 to the general
34fund of the state for the fiscal year beginning July 1, 2016,
35and ending June 30, 2017, the following amount:
-5-
..................................................  $1131,100,000
2   Sec. 14.  APPROPRIATION TO CASH RESERVE FUND.  There is
3appropriated from the general fund of the state to the cash
4reserve fund created in section 8.56 for the fiscal year
5beginning July 1, 2017, and ending June 30, 2018, the following
6amount:
..................................................  $720,000,000
8   Sec. 15.  GUBERNATORIAL TRANSITION.  There is appropriated
9from the general fund of the state to the offices of the
10governor and the lieutenant governor for the fiscal year
11beginning July 1, 2017, and ending June 30, 2018, the following
12amount, or so much thereof as is necessary, to be used for the
13purposes designated:
   14For expenses incurred during the gubernatorial transition:
..................................................  $15150,000
16   Sec. 16.  EFFECTIVE UPON ENACTMENT.  The following provision
17or provisions of this division of this Act, being deemed of
18immediate importance, take effect upon enactment:
   191.  The section of this division of this Act transferring
20moneys from the cash reserve fund to the general fund of the
21state.
22DIVISION III
23MISCELLANEOUS PROVISIONS
24   Sec. 17.  Section 2.43, unnumbered paragraph 1, Code 2017,
25is amended to read as follows:
   26The legislative council in cooperation with the officers of
27the senate and house shall have the duty and responsibility for
28preparing for each session of the general assembly. Pursuant
29to such duty and responsibility, the legislative council
30shall assign the use of areas in the state capitol except for
31the areas used by the governor as of January 1, 1986, and by
32the courts as of July 1, 2003,
and, in consultation with the
33director of the department of administrative services and the
34capitol planning commission, may assign areas in other state
35office buildings for use of the general assembly or legislative
-6-1agencies. The legislative council shall provide the courts
2with use of space in the state capitol for ceremonial purposes.

3 The legislative council may authorize the renovation,
4remodeling and preparation of the physical facilities used or
5to be used by the general assembly or legislative agencies
6subject to the jurisdiction of the legislative council and
7award contracts pursuant to such authority to carry out such
8preparation. The legislative council may purchase supplies and
9equipment deemed necessary for the proper functioning of the
10legislative branch of government.
11   Sec. 18.  Section 8A.322, subsection 2, Code 2017, is amended
12to read as follows:
   132.  Except for buildings and grounds described in section
14216B.3, subsection 6; section 2.43, unnumbered paragraph 1; and
15any buildings under the custody and control of the Iowa public
16employees’ retirement system, the director shall assign office
17space at the capitol, other state buildings, and elsewhere in
18the city of Des Moines, and the state laboratories facility
19in Ankeny, for all executive and judicial state agencies.
20Assignments may be changed at any time. The various officers
21to whom rooms have been so assigned may control the same while
22the assignment to them is in force. Official apartments shall
23be used only for the purpose of conducting the business of the
24state. The term “capitol” or “capitol building” as used in the
25Code shall be descriptive of all buildings upon the capitol
26grounds. The capitol building itself is reserved for the
27operations of the general assembly, and the governor, and, for
28ceremonial purposes, for
the courts and the. The assignment
29and use of physical facilities for the general assembly shall
30be pursuant to section 2.43.
31   Sec. 19.  Section 8C.7A, subsection 3, paragraph b,
32unnumbered paragraph 1, if enacted by 2017 Iowa Acts, Senate
33File 431, is amended to read as follows:
   34An authority shall not require a person to apply for or
35enter into an individual license, franchise, or other agreement
-7-1with the authority or any other entity for the siting of
2a small wireless facility on a utility pole located in a
3public right-of-way. However, an authority may, through the
4conditions set forth in a building permit obtained pursuant to
5this subsection, do any of the following:
6   Sec. 20.  NEW SECTION.  9.4A  Technology modernization fund.
   71.  A technology modernization fund is created in the state
8treasury under the control of the secretary of state. Moneys
9in the fund are appropriated to the secretary of state for
10purposes of modernizing technology used by the secretary of
11state to fulfill the duties of office.
   122.  On and after July 1, 2017, any increased fee amount
13collected by the secretary of state shall be credited to the
14technology modernization fund. From each fee collected, the
15amount credited to the fund equals the difference between the
16fee amount collected and the amount assessed for the same fee
17on June 30, 2017.
   183.  Each fiscal year, not more than two million dollars shall
19be credited to the fund.
   204.  This section is repealed July 1, 2022.
21   Sec. 21.  Section 15.329, subsection 1, paragraph f, Code
222017, is amended to read as follows:
   23f.  The business shall not be a retail business or a business
24where entrance is limited by a cover charge or membership
25requirement. For purposes of this paragraph, a business
26operated for the purpose of fulfilling customer orders is not a
27retail business or a retail operation.

28   Sec. 22.  Section 321N.4, subsection 6, Code 2017, is amended
29to read as follows:
   306.  Insurance maintained under this chapter shall be
31provided by an insurer governed by chapter 515 or 518, or by
32a surplus lines insurer governed by chapter 515I. A surplus
33lines insurer that issues a policy pursuant to this section
34 shall be considered an insurance carrier duly authorized to
35transact business in this state for the purposes of chapter
-8-1321A.

2   Sec. 23.  Section 481A.38, Code 2017, is amended by adding
3the following new subsection:
4   NEW SUBSECTION.  4.  The commission shall not restrict or
5prohibit hunting on specific private property generally or for
6the hunting of a particular wild animal, so long as the person
7hunting on that property is otherwise qualified to hunt in
8this state, purchases a valid hunting license that includes
9the wildlife habitat fee and a valid hunting license for the
10type of wild animal being hunted, if applicable, and adheres to
11all municipal, county, state, and federal regulations that are
12applicable to hunting and specifically applicable to the type
13of wild animal being hunted, including but not limited to daily
14limits, possession limits, shooting hours, methods of take, and
15transportation of a carcass.
16   Sec. 24.  ALCOHOLIC BEVERAGE CONTROL — STUDY.
   171.  The alcoholic beverages division of the department of
18commerce, in conjunction with other stakeholders the division
19deems necessary, shall conduct a study concerning enforcement
20issues related to alcoholic beverage control, including
21consideration of the manner of properly balancing appropriate
22regulation of the manufacturing, distribution, and sale of
23alcoholic liquor, wine, and beer in this state with emerging
24trends in the industry.
   252.  In conducting the study, the division shall consider
26any other relevant issues the division identifies for study,
27issues relating to the three-tiered system and section 123.45,
28as it impacts the ability of manufacturers, wholesalers, and
29retailers to meet changing marketplace conditions and business
30opportunities.
   313.  By July 1, 2018, the division shall submit a final report
32to the general assembly. The report shall provide the results
33of the study including any findings and recommendations.
   344.  The administrator may exercise discretion on a
35case-by-case basis and elect to not enforce section 123.45
-9-1during the period of such study upon a finding that an
2applicant does not pose a risk to public health or safety.
3   Sec. 25.  SEXUAL ABUSE EVIDENCE COLLECTION KITS.  Any sexual
4abuse evidence collection kit identified by a jurisdictional
5law enforcement agency through the inventory required pursuant
6to 2016 Iowa Acts, chapter 1042, shall be maintained by the law
7enforcement agency indefinitely. A law enforcement agency in
8possession of any sexual abuse evidence kit identified through
9the inventory shall submit for analysis any kit at the request
10of the department of justice.
11   Sec. 26.  REPEAL.  Chapter 304A, Code 2017, is repealed.
12DIVISION IV
13CORRECTIVE PROVISIONS
14   Sec. 27.  Section 22.13A, subsection 5, paragraph b, as
15enacted by 2017 Iowa Acts, House File 291, section 51, is
16amended to read as follows:
   17b.  If paragraph “a”, subparagraph (1) or (2) is not
18consistent with the provision of a collective bargaining
19agreement, a state agency shall provide the individuals
20referenced in this subsection, as applicable, with regular
21reports regarding any personnel settlement agreements entered
22into with state employees by the state agency.
23   Sec. 28.  Section 73A.26, as enacted by 2017 Iowa Acts,
24Senate File 438, section 6, is amended to read as follows:
   2573A.26  Purpose.
   26The purpose of this chapter subchapter is to provide for
27more economical, nondiscriminatory, neutral, and efficient
28procurement of construction-related goods and services by this
29state and political subdivisions of this state.
30   Sec. 29.  Section 84A.1A, subsection 1, paragraph a,
31subparagraph (8), subparagraph division (b), subparagraph
32subdivision (iii), as enacted by 2017 Iowa Acts, House File
33572, section 1, is amended to read as follows:
   34(iii)  Two representatives of community-based organizations
35that have demonstrated experience and expertise in addressing
-10-1the employment, training, or education needs of individuals
2with barriers to employment as defined in the federal Workforce
3Innovation and Opportunity Act, Pub.L. No.113-128, §3(24),
4including but not limited to organizations that serve veterans,
5
 or that provide or support competitive, integrated employment
6for individuals with disabilities; or that serve eligible
7youth, as defined in the federal Workforce Innovation and
8Opportunity Act, Pub.L. No.113-128, §3(18), including
9representatives of organizations that serve out-of-school
10youth, as defined in the federal Workforce Innovation and
11Opportunity Act, Pub.L. No.113-128, §129(a)(1)(B).
12   Sec. 30.  Section 225D.1, subsection 8, Code 2017, as amended
13by 2017 Iowa Acts, House File 215, section 1, is amended to
14read as follows:
   158.  “Eligible individual” means a child less than fourteen
16years of age who has been diagnosed with autism based on a
17diagnostic assessment of autism, is not otherwise eligible for
18coverage for applied behavioral analysis treatment or applied
19behavior analysis treatment under the medical assistance
20program, section 514C.28, 514C.31, or other private insurance
21coverage, and whose household income does not exceed five
22hundred percent of the federal poverty level.
23   Sec. 31.  2017 Iowa Acts, House File 488, section 57, as
24enacted, is amended by striking the section and inserting in
25lieu thereof the following:
   26SEC. 57.  Section 455B.474, subsection 2, paragraph a,
27subparagraph (1), Code 2017, is amended to read as follows:
   28(1)  (a)  Financial responsibility required by this
29subsection may be established in accordance with rules adopted
30by the commission by any one, or any combination, of the
31following methods: insurance, guarantee, surety bond, letter
   32(i)  Insurance.
   33(ii)  Guarantee.
   34(iii)  Surety bond.
   35(iv)   Letterof credit, or qualification.
-11-
   1(v)   Qualificationas a self-insurer.
   2(b)  In adopting requirements under this subsection, the
3commission may specify policy or other contractual terms,
4conditions, or defenses which are necessary or are unacceptable
5in establishing the evidence of financial responsibility.
6   Sec. 32.  EFFECTIVE UPON ENACTMENT.  The following sections
7of this division of this Act, being deemed of immediate
8importance, take effect upon enactment:
   91.  The section of this division of this Act amending section
1022.13A, subsection 5, paragraph “b”.
   112.  The section of this division of this Act amending section
1273A.26.
   133.  The section of this division of this Act amending
14section 84A.1A, subsection 1, paragraph “a”, subparagraph (8),
15subparagraph division (b), subparagraph subdivision (iii).
16   Sec. 33.  EFFECTIVE DATE.  The section of this division of
17this Act amending section 225D.1, subsection 8, takes effect
18January 1, 2018.
19DIVISION V
20WEAPONS
21   Sec. 34.  Section 724.2A, as enacted by 2017 Iowa Acts, House
22File 517, section 5, is amended to read as follows:
   23724.2A  Peace officer and reserve peace officer — defined.
   24As used in sections 724.4, 724.6, and 724.11, “peace officer”
25means a certified “peace officer” and includes a reserve peace
26officer as defined in section 80D.1A.
27   Sec. 35.  Section 724.4C, subsection 1, unnumbered paragraph
281, as enacted by 2017 Iowa Acts, House File 517, section 8, is
29amended to read as follows:
   30Except as provided in subsection 2, a person commits a
31serious misdemeanor if the person is intoxicated as provided
32under the conditions set out in section 321J.2, subsection
331, paragraph “a”, “b”, or “c”, and the person does any of the
34following:
35   Sec. 36.  Section 724.17, subsection 1, as enacted by 2017
-12-1Iowa Acts, House File 517, section 22, is amended to read as
2follows:
   31.  The application for a permit to acquire pistols or
4revolvers may be made to the sheriff of the county of the
5applicant’s residence and shall be on a form prescribed
6and published by the commissioner of public safety. The
7application shall require only the full name of the applicant,
8the driver’s license or nonoperator’s identification card
9number of the applicant, the residence of the applicant, and
10 the date and place of birth of the applicant, and whether the
11applicant meets the criteria specified in section 724.15
.
12The applicant shall also display an identification card that
13bears a distinguishing number assigned to the cardholder, the
14full name, date of birth, sex, residence address, and brief
15description and color photograph of the cardholder, or other
16identification as specified by rule of the department of public
17safety. The sheriff shall conduct a criminal history check
18concerning each applicant by obtaining criminal history data
19from the department of public safety which shall include an
20inquiry of the national instant criminal background check
21system maintained by the federal bureau of investigation or any
22successor agency. A person who makes what the person knows
23to be a false statement of material fact on an application
24submitted under this section or who submits what the person
25knows to be any materially falsified or forged documentation in
26connection with such an application commits a class “D” felony.
27   Sec. 37.  Section 724.22, subsection 9, as enacted by 2017
28Iowa Acts, House File 517, section 29, is amended to read as
29follows:
   309.  A parent, guardian, spouse, or instructor, who knowingly
31provides direct supervision under subsection 5, of a person
32while intoxicated as provided under the conditions set out
33in section 321J.2, subsection 1, or under the influence of
34an illegal drug
 paragraph “a”, “b”, or “c”, commits child
35endangerment in violation of section 726.6, subsection 1,
-13-1paragraph “i”.
2   Sec. 38.  Section 726.6, subsection 1, paragraph i, as
3enacted by 2017 Iowa Acts, House File 517, section 30, is
4amended to read as follows:
   5i.  Knowingly provides direct supervision of a person under
6section 724.22, subsection 5, while intoxicated as provided
7under the conditions set out in section 321J.2, subsection 1,
8or under the influence of an illegal drug paragraph “a”, “b”,
9or “c”
.
10   Sec. 39.  2017 Iowa Acts, House File 517, section 50,
11subsection 1, as enacted, is amended to read as follows:
   121.  The section sections of this Act amending section
13
 sections 724.22 and 726.6.
14   Sec. 40.  REPEAL.  2017 Iowa Acts, House File 517, section
1516, as enacted, is repealed.
16   Sec. 41.  EFFECTIVE UPON ENACTMENT.  The section of this
17division of this Act amending 2017 Iowa Acts, House File 517,
18section 50, subsection 1, being deemed of immediate importance,
19takes effect upon enactment.
20   Sec. 42.  RETROACTIVE APPLICABILITY.  The section of this
21division of this Act amending 2017 Iowa Acts, House File 517,
22section 50, subsection 1, applies retroactively to April 13,
232017.
24DIVISION VI
25VAPOR AND ALTERNATIVE NICOTINE PRODUCTS — TAX
26   Sec. 43.  Section 453A.1, Code 2017, is amended by adding the
27following new subsection:
28   NEW SUBSECTION.  7A.  “Delivery sale” means any sale of
29an alternative nicotine product or a vapor product to a
30purchaser in this state where the purchaser submits the order
31for such sale by means of a telephonic or other method of
32voice transmission, mail or any other delivery service, or the
33internet or other online service and the alternative nicotine
34product or vapor product is delivered by use of mail or a
35delivery service. The sale of an alternative nicotine product
-14-1or vapor product shall constitute a delivery sale regardless of
2whether the seller is located in this state. “Delivery sale”
3does not include a sale to a distributor or retailer of any
4alternative nicotine product or vapor product not for personal
5consumption.
6   Sec. 44.  Section 453A.1, subsection 20, Code 2017, is
7amended to read as follows:
   820.  “Place of business” is construed to mean and include any
9place where cigarettes are sold or where cigarettes are stored
10within or without the state of Iowa by the holder of an Iowa
11permit or kept for the purpose of sale or consumption; or if
12sold from any vehicle or train, the vehicle or train on which
13or from which such cigarettes are sold shall constitute a place
14of business; or for a business within or without the state that
15conducts delivery sales, any place where alternative nicotine
16products or vapor products are sold or where alternative
17nicotine products or vapor products are kept for the purpose
18of sale
.
19   Sec. 45.  Section 453A.13, subsection 1, Code 2017, is
20amended to read as follows:
   211.  Permits required.  Every distributor, wholesaler,
22cigarette vendor, and retailer, now engaged or who desires to
23become engaged in the sale or use of cigarettes, upon which a
24tax is required to be paid, and every retailer now engaged or
25who desires to become engaged in selling, offering for sale, or
26distributing alternative nicotine products or vapor products,
27including through delivery sales,
shall obtain a state or
28retail permit as a distributor, wholesaler, cigarette vendor,
29or retailer, as the case may be.
30   Sec. 46.  Section 453A.13, subsection 2, paragraph a, Code
312017, is amended to read as follows:
   32a.  The department shall issue state permits to distributors,
33wholesalers, and cigarette vendors and retailers that make
34delivery sales of alternative nicotine products and vapor
35products
subject to the conditions provided in this division.
-15- 1If an out-of-state retailer makes delivery sales of alternative
2nicotine products or vapor products, an application shall be
3filed with the department and a permit shall be issued for the
4out-of-state retailer’s principal place of business.
Cities
5may issue retail permits to dealers retailers with a place of
6business located
within their respective limits. County boards
7of supervisors may issue retail permits to dealers retailers
8with a place of business
in their respective counties, outside
9of the corporate limits of cities.
10   Sec. 47.  Section 453A.42, Code 2017, is amended by adding
11the following new subsection:
12   NEW SUBSECTION.  2A.  “Delivery sale” means any sale of
13an alternative nicotine product or a vapor product to a
14purchaser in this state where the purchaser submits the order
15for such sale by means of a telephonic or other method of
16voice transmission, mail or any other delivery service, or the
17internet or other online service and the alternative nicotine
18product or vapor product is delivered by use of mail or a
19delivery service. The sale of an alternative nicotine product
20or vapor product shall constitute a delivery sale regardless of
21whether the seller is located in this state. “Delivery sale”
22does not include a sale to a distributor or retailer of any
23alternative nicotine product or vapor product not for personal
24consumption.
25   Sec. 48.  Section 453A.42, subsection 8, Code 2017, is
26amended to read as follows:
   278.  “Place of business” means any place where tobacco
28products are sold or where tobacco products are manufactured,
29stored, or kept for the purpose of sale or consumption,
30including any vessel, vehicle, airplane, train, or vending
31machine; or for a business within or without the state that
32conducts delivery sales, any place where alternative nicotine
33products or vapor products are sold or where alternative
34nicotine products or vapor products are kept for the purpose of
35sale, including delivery sales
.
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1   Sec. 49.  Section 453A.47A, subsections 1, 3, and 6, Code
22017, are amended to read as follows:
   31.  Permits required.  A person shall not engage in
4the business of a retailer of tobacco, tobacco products,
5alternative nicotine products, or vapor products at any place
6of business, or through delivery sales, without first having
7received a permit as a retailer.
   83.  Number of permits.  An application shall be filed and a
9permit obtained for each place of business owned or operated by
10a retailer located in the stateIf an out-of-state retailer
11makes delivery sales of alternative nicotine products or vapor
12products, an application shall be filed with the department
13and a permit shall be issued for the out-of-state retailer’s
14principal place of business.

   156.  Issuance.  Cities shall may issue retail permits to
16retailers located within their respective limits. County
17boards of supervisors shall may issue retail permits to
18retailers located in their respective counties, outside of the
19corporate limits of cities. The city or county shall submit a
20duplicate of any application for a retail permit and any retail
21permit issued by the entity under this section to the alcoholic
22beverages division of the department of commerce within thirty
23days of issuance. The alcoholic beverages division of the
24department of commerce shall submit the current list of all
25retail permits issued to the Iowa department of public health
26by the first day of each quarter of a state fiscal year.
27   Sec. 50.  NEW SECTION.  453A.47B  Requirements for mailing or
28shipping — alternative nicotine products or vapor products.
   291.  A retailer shall not mail, ship, or otherwise cause to
30be delivered any alternative nicotine product or vapor product
31in connection with a delivery sale unless all of the following
32apply:
   33a.  Prior to sale to the purchaser, the retailer verifies
34that the purchaser is at least eighteen years of age through or
35by one of the following:
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   1(1)  A commercially available database, or aggregate of
2databases, that is regularly used by government and businesses
3for the purpose of age and identity verification.
   4(2)  Obtaining a copy of a valid government-issued document
5that provides the name, address, and date of birth of the
6purchaser.
   7b.  The retailer uses a method of mailing, shipping, or
8delivery that requires the signature of a person who is at
9least eighteen years of age before the shipping package is
10released to the purchaser.
11   Sec. 51.  NEW SECTION.  453A.47C  Sales and use tax on
12delivery sales — alternative nicotine products or vapor
13products.
   141.  A delivery sale of alternative nicotine products or vapor
15products within this state shall be subject to the sales tax
16provided in chapter 423, subchapter II.
   172.  The use in this state of alternative nicotine products
18or vapor products purchased for use in this state through a
19delivery sale shall be subject to the use tax provided in
20chapter 423, subchapter III.
   213.  A retailer required to possess or possessing a permit
22under section 453A.13 or 453A.47A to make delivery sales of
23alternative nicotine products or vapor products within this
24state shall be deemed to have waived all claims that such
25retailer lacks physical presence within this state for purposes
26of collecting and remitting sales and use tax.
   274.  A retailer making taxable delivery sales of alternative
28nicotine products or vapor products within this state shall
29remit to the department all sales and use tax due on such sales
30at the times and in the manner provided by chapter 423.
   315.  The director shall adopt rules pursuant to chapter 17A to
32administer this section.
33DIVISION VII
34BALLOT ARRANGEMENT FOR CERTAIN PARTISAN OFFICES
35   Sec. 52.  Section 49.31, subsection 1, Code 2017, is amended
-18-1to read as follows:
   21.  a.  All ballots shall be arranged with the names of
3candidates for each office listed below the office title.
4For partisan elections the name of the political party or
5organization which nominated each candidate shall be listed
6after or below each candidate’s name.
   7b.  (1)  The commissioner shall determine the order of
8political parties and nonparty political organizations on the
9ballot as provided under this paragraph “b”. The sequence shall
10be the same for each office on the ballot and for each precinct
11in the county voting in the election. The commissioner shall
12arrange the ballot so that the candidates of each political
13party, as defined in section 43.2, for each partisan office
14appearing on the ballot shall appear in descending order so
15that the candidates of the political party whose registered
16voters voted in the greatest number in the commissioner’s
17county at the preceding election described in section 39.9
18shall appear first on the ballot, and the candidates of the
19political party whose registered voters voted in the next
20greatest number in the commissioner’s county at such election
21appear next on the ballot, and continuing in descending order
22in the same manner.

   23(2)  The commissioner shall determine the number of
24registered voters from each political party who voted at each
25election described in section 39.9 after the state registrar
26has updated information on participation pursuant to section
2748A.38, subsection 2, following such an election.
   28(3)  If the number of registered voters from two or more
29political parties voted in the same number in the county, the
30commissioner shall determine the order of arranging political
31party candidates for those political parties based upon the
32numbers of registered voters who voted in the most recent
33election described in section 39.9 for which the number of
34registered voters from those political parties who voted in
35such an election were different.
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   1c.  The commissioner shall determine the order of nonparty
2political organizations on the ballot. The sequence shall be
3the same for each office on the ballot and for each precinct in
4the county voting in the election.
5   Sec. 53.  Section 49.31, subsection 2, paragraph b, Code
62017, is amended to read as follows:
   7b.  The Notwithstanding any provision of subsection 1,
8paragraph “b”, to the contrary, the
commissioner shall then
9arrange the surnames of each political party’s candidates for
10each office to which two or more persons are to be elected at
11large alphabetically for the respective offices for the first
12precinct on the list; thereafter, for each political party and
13for each succeeding precinct, the names appearing first for
14the respective offices in the last preceding precinct shall
15be placed last, so that the names that were second before the
16change shall be first after the change. The commissioner may
17also rotate the names of candidates of a political party in the
18reverse order of that provided in this subsection or alternate
19the rotation so that the candidates of different parties shall
20not be paired as they proceed through the rotation. The
21procedure for arrangement of names on ballots provided in this
22section shall likewise be substantially followed in elections
23in political subdivisions of less than a county.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
   27This bill relates to state and local finances by
28making appropriations, providing for legal and regulatory
29responsibilities, concerning taxation, and providing for other
30properly related matters. The bill is organized by divisions.
   31STANDING APPROPRIATIONS AND RELATED MATTERS. For the budget
32process applicable to FY 2017-2018 and FY 2018-2019, state
33agencies are required to submit estimates and other expenditure
34information as called for by the director of the department
35of management instead of the information required under Code
-20-1section 8.23.
   2The bill limits standing appropriations for FY 2017-2018
3and FY 2018-2019 made for payment of nonpublic school
4transportation claims and for distribution for the tribal
5council of the Sac and Fox Indian settlement for educating
6American Indian children.
   7The bill reduces the standing unlimited appropriation for FY
82017-2018 made for expenses of the general assembly under Code
9section 2.12.
   10The bill limits the standing appropriation for paying
11instructional support state aid to zero for FY 2017-2018.
   12The bill allows salary adjustments to be funded using
13departmental revolving, trust, or special funds for which the
14general assembly has established an operating budget for FY
152017-2018 and FY 2018-2019.
   16The bill requires any balance of an operational
17appropriation that remains unexpended or unencumbered shall
18not be encumbered or deposited in the cash reserve fund as
19provided in Code section 8.62, but shall instead revert to the
20general fund of the state at the close of the fiscal year for FY
212016-2017. This provision takes effect upon enactment.
   22The bill allows salary adjustments otherwise provided to
23be funded as determined by the department of management using
24unappropriated moneys remaining in the department of commerce
25revolving fund, the gaming enforcement revolving fund, the
26gaming regulatory revolving fund, the primary road fund, the
27road use tax fund, the fish and game protection fund, the Iowa
28public employees’ retirement fund, and in other departmental
29revolving, trust, or special funds for which the general
30assembly has not made an operating budget appropriation for FY
312017-2018 and FY 2018-2019.
   32The bill requires the salary model administrator to work in
33conjunction with the legislative services agency to maintain
34the state’s salary model used for analyzing, comparing, and
35projecting state salary and benefit information.
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   1The bill reduces state aid for the area education agencies
2and the portion of the combined district cost calculated for
3these agencies for FY 2017-2018 by $15 million.
   4MISCELLANEOUS APPROPRIATIONS. The bill transfers moneys
5from the cash reserve fund to the general fund of the state for
6FY 2016-2017. This provision takes effect upon enactment.
   7The bill appropriates moneys from the general fund of the
8state to the cash reserve fund for FY 2017-2018.
   9The bill appropriates moneys to the offices of the governor
10and lieutenant governor for purposes of expenses incurred
11during the gubernatorial transition for FY 2017-2018.
   12MISCELLANEOUS PROVISIONS. Currently, the courts are
13assigned space in the capitol building. The bill eliminates
14the assignment of space and requires the legislative council to
15provide the courts with use of space in the state capitol for
16ceremonial purposes.
   17The bill amends 2017 Iowa Acts, Senate File 431, if enacted,
18relating to small wireless facilities. The bill changes a
19reference to “building permit” to read “permit”.
   20The bill creates a technology modernization fund. Moneys
21in the fund are appropriated to the secretary of state to be
22used for modernizing technology used by the secretary of state
23to fulfill the duties of office. On and after July 1, 2017,
24any increased fee amount collected by the secretary of state
25is credited to the technology modernization fund. From each
26fee collected, the amount credited to the fund equals the
27difference between the fee amount collected and the amount
28assessed for the same fee on June 30, 2017. Each fiscal year,
29not more than $2 million shall be credited to the fund. The
30fund is repealed July 1, 2022.
   31The bill exempts a business operated for the purpose of
32fulfilling customer orders from being considered a retail
33business under the eligibility requirements for incentives or
34assistance under the high quality jobs program.
   35Currently, under Code section 321N.4, insurance coverage
-22-1maintained by a transportation network company must be provided
2by an insurer governed by Code chapter 515 or 518, or by a
3surplus lines insurer governed by Code chapter 515I, and such
4surplus lines insurers are considered insurance carriers duly
5authorized to transact business for purposes of Code chapter
6321A. The bill eliminates the reference to Code chapter 518
7and eliminates the reference to surplus lines insurers being
8considered insurance carriers authorized to transact business
9for purposes of Code chapter 321A.
   10The bill provides that the natural resource commission shall
11not restrict or prohibit hunting on specific private property
12generally or for the hunting of a particular wild animal, so
13long as the hunter is otherwise qualified to hunt in this
14state, purchases a valid hunting license that includes the
15wildlife habitat fee and a valid hunting license for the type
16of wild animal being hunted, if applicable, and adheres to all
17municipal, county, state, and federal regulations applicable to
18the hunting and to the type of wild animal being hunted.
   19The bill requires the alcoholic beverages division of the
20department of commerce, in conjunction with other stakeholders
21the division deems necessary, to conduct a study concerning
22enforcement issues related to alcoholic beverage control,
23including consideration of the manner of properly balancing
24appropriate regulation of the manufacturing, distribution, and
25sale of alcoholic liquor, wine, and beer in this state with
26emerging trends in the industry. The bill includes reporting
27requirements. The bill allows the division administrator to
28exercise discretion on a case-by-case basis and elect to not
29enforce Code section 123.45 during the period of such study
30upon a finding that an applicant does not pose a risk to public
31health or safety.
   32The bill requires sexual abuse evidence kits identified
33through an inventory conducted pursuant to 2016 Iowa Acts,
34chapter 1042, to be maintained indefinitely.
   35The bill repeals Code sections requiring the integration of
-23-1fine arts within, on, or about the total environment of the
2construction of a state building.
   3CORRECTIVE PROVISIONS. Code section 22.13A(5)(b), as
4enacted by 2017 Iowa Acts, House File 291, section 51, is
5amended to correct an internal reference to the subparagraphs
6of a preceding paragraph in this provision relating to
7personnel settlement agreements. The amendment is made
8effective upon enactment of the bill.
   9Code section 73A.26, as enacted by 2017 Iowa Acts, Senate
10File 438, section 6, is amended to correct a reference to the
11new subchapter created in the bill relating to the construction
12of public improvements. The amendment is made effective upon
13enactment of the bill.
   14Code section 84A.1A(1)(a)(8)(b)(iii), as enacted by 2017
15Iowa Acts, House File 572, section 1, is amended to correct
16a grammatical construction describing serving or providing
17support to two different populations, veterans and individuals
18with disabilities, in a provision relating to the appointment
19of representatives to the Iowa workforce development board.
20The amendment is made effective upon enactment of the bill.
   21Code section 225D.1(8), as amended by 2017 Iowa Acts, House
22File 215, section 1, is amended to refer to “other” private
23insurance coverage to match other references in the bill to
24such coverage in this provision relating to health insurance
25coverage for autism spectrum disorder. The amendment is made
26effective January 1, 2018, to coincide with the effective date
27of the amendment in House File 215.
   282017 Iowa Acts, House File 488, section 57, the
29nonsubstantive Code editor’s bill, as enacted, is amended
30to correctly include the words “surety bond”, which were
31inadvertently omitted from a newly created numeric list of
32methods to meet financial responsibility requirements in this
33provision relating to underground storage tanks.>
   34WEAPONS. This division relates to 2017 Iowa Acts, House File
35517, dealing with weapons.
-24-
   1The amendment to Code section 724.17 is in response to State
2v.Downey, (Iowa Supreme Court No.15-1585) relating to an
3application for a permit to acquire pistols and revolvers.
4For purposes of completing the application and in addition to
5the requirements of the application including the applicant’s
6full name, driver’s license or nonoperator’s identification
7card number, residence, and date and place of birth, the bill
8requires that such an application for a permit to acquire
9include whether the applicant is able to meet the criteria
10specified in Code section 724.15 (requirements for issuance of
11permit to acquire pistols or revolvers). Under current law and
12the bill, an applicant who knowingly makes a false statement
13of material fact on the application for a permit to acquire
14pistols and revolvers or who submits what the applicant knows
15to be any materially falsified or forged documentation in
16connection with such an application commits a class “D” felony.
   17The definition of “peace officer” in Code section 724.2A,
18with respect to the carrying of weapons under Code section
19724.4, is amended to apply to peace officers whether certified
20or awaiting certification.
   21The descriptions of intoxication in Code sections 724.4C
22(carrying of firearms), 724.22 (while supervising a minor in
23possession of a pistol or revolver), and 726.6 (commission of
24child endangerment while so supervising a minor) are amended
25to specify that the conditions of intoxication are set out in
26Code section 321J.2(1)(a),(b), or (c), which relate to the
27presence of alcohol or drugs in a person and do not relate to
28the condition of operating a motor vehicle.
   29Two mostly duplicative provisions are contained in House
30File 517 that relate to the awarding of court costs and
31attorney fees with regard to disputes in the issuance of
32permits to carry and to acquire. The second provision in
33section 27 of House File 517 is more complete, including
34withdrawals of appeals by applicants. The first more
35incomplete provision of the two is repealed.
-25-
   1Two sections of House File 517 amend Code section 724.22
2relating to the supervised possession of a pistol or revolver
3by a person under the age of 21. However, the immediate
4effective date provision of the bill only recognizes that
5one section of the bill amends Code section 724.22. Section
629 of the bill relates to civil liability and the commission
7of child endangerment by a person supervising a person
8under the age of 21. The amendment makes certain that all
9amendments in House File 517 affecting Code sections 724.22
10(supervision, liability, and child endangerment) and 726.6
11(child endangerment) take effect upon the enactment of the bill
12and apply retroactively to April 13, 2017.
   13VAPOR AND ALTERNATIVE NICOTINE PRODUCTS — DELIVERY SALES
14— TAX. The bill regulates the delivery sale, as defined in
15the bill, of alternative nicotine products and vapor products
16by sellers within and without the state through a permitting
17process for retailers making delivery sales and through age
18verification requirements. The bill also subjects the delivery
19sale of alternative nicotine products and vapor products to
20sales and use tax.
   21BALLOT ARRANGEMENT FOR CERTAIN PARTISAN OFFICES. The bill
22relates to the arrangement of election ballots for certain
23partisan offices. Under the bill, a county commissioner is
24required to arrange the ballot so that the candidates of
25each political party for most partisan offices appearing on
26the ballot appear in descending order so that the candidates
27of the political party whose registered voters voted in the
28greatest number in the commissioner’s county at the preceding
29gubernatorial election appear first on the ballot, and the
30candidates of the political party whose registered voters voted
31in the next greatest number in the commissioner’s county at
32such election appear next on the ballot, and continuing in
33descending order in the same manner.
-26-
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