• Ways & Means Committee – All-Bill Summary 2019

    SF 220 – Increased expensing for corporations for tax year 2018

    SF 306 – Pilot project for park user fees at Lake Manawa and Waubonsie

    SF 597 – Sales tax exemption for nonprofit blood centers

    SF 605 – Child Support Recovery fees

    SF 629 – Excessive weights for raw forest products

    SF 634 – Limits on property tax revenues; city/county budget growth cap

    HF 389 – Boat, ATV and snowmobile registration process improvements

    HF 741- Extends bond from 20 to 30 years for flood purposes

    HF 767 – Electric vehicles

    HF 768 – Beginning farmer tax credit program

    HF 769 – Gross weight of special trucks

    HF 772 – Empower Rural Iowa

    HF 778 – Capital gains deduction for sale of real estate involved in farming

    HF 779 – Omnibus tax administration bill

     

    SF 220 – Increased expensing for corporations for tax year 2018

    SF 220 relates to Section 179 expensing for S-corporations, C-corporations and other entities taxed as corporations. The bill also impacts individuals filing K-1 returns (members of LLCs, S-Corp and partnerships) for income earned through those entities. In 2018, SF 2417 (GOP tax bill) raised the Section 179 expensing limit to $70,000/$280,000 annually for individual income taxes only, not for corporate taxpayers. The bill also instituted a K-1 tax form “fix” so that the limit on expensing is extended to every member of the business rather than having all partners cumulatively limited to the expensing threshold.

    During rulemaking to implement SF 2417, the Iowa Department of Revenue determined that, because Section 179 expensing was not raised for corporate taxpayers, the individual taxpayers filing K-1s as a part of an S-corporation (and other corporate taxes entities) were not eligible for the expanded Section 179 limit that individual income taxpayers were given in SF 2417. Those individuals could only claim up to the previous $25,000/$200,000.

    The bill resolves this issue by changing the corporate expensing levels for tax year 2018. Changes for other years are fully addressed in SF 2417. Section 179 expensing levels are increased to $100,000/$250,000 for individual and corporate returns for tax year 2019. Section 179 and other coupling issues are resolved in tax year 2020 because we established “rolling conformity” from then on; applicable federal tax changes on expenses, credits and deductions allowed under Iowa law will automatically be incorporated into Iowa tax code, without further legislative action.
    [2/18: 48-0 (Absent: Miller-Meeks; Vacant: Danielson)]

     

    SF 306 – Pilot project for park user fees at Lake Manawa and Waubonsie

    SF 306 establishes a pilot program for park user fees at Lake Manawa State Park in Council Bluffs. The Department of Natural Resources (DNR) will collect fees from nonresidents who access the state park, and DNR can charge different rates for facility rentals to residents and nonresidents. This system mirrors how Nebraska charges for nonresidents to use their state parks. Lake Manawa is a busy state park that attracts many nonresident visitors because the park does not charge fees for access, unlike similar parks in the area. This has led to high use, a need for infrastructure repairs and demands on local law enforcement responding to illegal activity. The fees are designed to cover park needs and discourage illegal activities. The pilot program will be repealed on July 1, 2022. The bill was amended to create a similar program for Waubonsie State Park in Fremont County.
    [4/25: 49-0 (Absent: Chapman)]

     

    SF 597 – Sales tax exemption for nonprofit blood centers

    SF 597 provides a sales tax exemption for tangible property sold or laboratory test services furnished to a nonprofit blood center, as long as the property or testing are directly and primarily used in the processing of human blood. The nonprofit blood centers must be registered with the federal Food and Drug Administration (FDA).

    This exemption is needed because tax legislation passed in 2018 (SF 2417) redefined the term “manufacturing” to apply to a narrower scope of activity. This change subjected tangible property and laboratory testing services used by nonprofit blood centers to the sales tax. SF 597 replaces the sales tax exemption the nonprofit blood centers had operated under.
    [4/26: 48-0 (Absent: Lykam, T. Taylor)]

     

    SF 605 – Child Support Recovery fees

    SF 605 is a Department of Human Services bill regarding Child Support Recovery fees. The bill eliminates the application fee of $25. It changes the annual fee to what is required by federal law. The fee will be collected from the obligee after $550 in support has been distributed to the family. The fee is only charged if the obligee has never received cash assistance. The bill amends Iowa Code Chapter 252B to remove the specific amount of the fee and cites directly to federal law. This means that the state will not have to pass legislation each time the federal government makes changes.
    [4/22: 49-0 (Absent: Segebart)]

     

    SF 629 – Excessive weights for raw forest products

    SF 629 requires the Department of Transportation (DOT) to develop and implement a single statewide system to receive applications for and issue permits to allow vehicles of excessive size or weight to operate on roads under state or local jurisdiction. DOT will determine, in consultation with local authorities, the network of highways and streets under local jurisdiction, including the appropriate routes, on which the vehicles may operate. DOT will issue permits for a fee set by DOT rule and proportionate to the fees in Code section 321E.14. DOT will allocate a portion of the fees to local authorities. DOT must submit a report to the Legislature by December 31, 2021, regarding the development and implementation of the system.

    The bill allows DOT to issue annual permits for $175, authorizing a vehicle or combination of vehicles to transport divisible loads of raw forest products from fields to storage, processing or other commercial facilities. A vehicle or combination of vehicles for which a permit is issued may exceed the maximum weights in Code section 321.463 if the gross weight does not exceed the limits in Code section 321E.7 (20,000 pounds on any one axle and 46,000 pounds on any one tandem axle having at least four tires). The bill prohibits a vehicle or combination of vehicles issued such a permit from traveling on the interstate or exceeding the size limits set in Code sections 321.454 through 321.457. The permit is valid for operation on non-primary highways if local authorities approved the route within their jurisdictions.
    [4/23: 37-12 (No: Celsi, Greene, Hogg, Miller-Meeks, Nunn, Quirmbach, Schultz, Segebart, Sinclair, J. Smith, R. Taylor, Zaun)]

     

    SF 634 – Limits on property tax revenues; city/county budget growth cap

    SF 634 establishes a new public hearing process before local governments assembles their budgets. As part of this process, the local board will establish a total maximum property tax revenue limit for the city or county budget process. This includes taxes available through existing levies for general services, rural services, trust and agency, and supplemental levies.

    The proposal does not eliminate any levy authority or any specific levies. The local board must publish the maximum property tax revenues within that group for the current budget year, and calculate an effective levy rate that shows what the effective rate would have been if total maximum property tax revenues were not increased. This would provide the public with information on how much property tax revenues are generated by new valuations and revaluations of existing property.

    The proposal establishes a “soft cap” of 2% growth in total maximum property tax revenues over the previous year. If a local board proposes to increase the total maximum property tax revenue by more than 2%, the resolution must be approved by a two-thirds majority vote.

    For counties, the levies included under the total maximum property tax calculation include:

    • The sum of property tax dollars certified for general county services: ($3.50) basic levy, general county services supplemental levies and additions to basic levies (unusual circumstances), but excluding additions approved at election under current Code (special levy elections).
    • The sum of property tax dollars certified for levy for rural county services: ($3.95) basic levy, rural county services supplemental levies and additions to basic levies (unusual circumstances), but excluding additions approved at election under current Code.

    For cities, the levies included under the total maximum property tax revenue calculation include:

    • The sum of property tax dollars certified for city government purposes under the following levies: the city basic levy ($8.10), city trust and agency fund, emergency fund and various additional taxes, under additional taxes, including emergency management commission and insurance.

    The bill establishes new requirements for publication of information prior to the budget process. The bill allows an additional two weeks to complete local budgets that must be submitted to the state. The bill requires that local governments include information on the current budget protest process as part of their budget approval.

    The bill does not include a reverse referendum process or “hard caps” on local budget growth. The bill maintains existing levies. The changes are effective for local budgets after July 1, 2020.
    [4/23: 33-17 (Yes: Republicans, Bisignano)]

     

    HF 389 – Boat, ATV and snowmobile registration process improvements

    HF 389 updates the Iowa Code regarding the process for registering and titling boats and other vessels. Boat and vessel registration is now done using an electronic licensing system. These changes will improve the process:

    • Allowing an owner to register their vessel with any county recorder rather than the county where the vessel was initially registered.
    • Allowing a 60-day grace period for renewal of a boat registration. Boat registrations expire on April 30, prior to the time most owners take their vessel onto the water. Owners could renew prior to June 1 without a $5 late fee.
    • Allowing an owner to initially register their vessel for shorter than the three-year registration period so as to prorate the fee and align the registration with the timeline for renewal.
    • Allowing a title to be used to sell or transfer a vessel. Currently, the transfer or sale requires completing a form on the original registration certificate.
    • Removing the requirement for a notarial to witness the application for a title after acquiring a vessel.

    The bill also increases from 15 to 30 the number of days a snowmobile, all-terrain vehicle or vessel dealer has to send fees and applications to transfer a vehicle requiring a title.
    [4/18: 48-1 (No: Celsi; Absent: Mathis)]

     

    HF 741– Extends bond from 20 to 30 years for flood purposes

    HF 741 would allow general obligation bonds issued to finance a flood-control project that was approved by the state flood mitigation board to be financed over a 30-year period instead of 20 years under current law. This is the same time frame that currently exists for cities and counties to issue bonds for essential purposes. At time of passage, one flood-control project in Cedar Rapids met the terms outlined in the bill.
    [4/26: 49-0 (Absent: Feenstra)]

     

    HF 767 – Electric vehicles

    HF 767 creates new registration fees for Electric and Hybrid Vehicles and a new excise tax on hydrogen and electric fuel. In light of the increasing use of these vehicles, the Legislature directed the Iowa Department of Transportation (DOT) to estimate the impact of increased usage of electric, hybrid and other high-efficiency motor vehicles on future revenues to the Road Use Tax Fund. It also required DOT to evaluate and recommend alternative funding mechanisms or the alteration of existing funding mechanisms to offset decreases in future revenues due to the increased use of electric, hybrid and other high-efficiency motor vehicles. DOT produced recommendations with the goal of no net change in revenue, equity and low administrative costs. HF 767 is based on the recommendations from the DOT report.

    Registration Fees – Battery electric vehicles are vehicles that have no internal combustion engine and are propelled exclusively by electricity. Under the bill, battery electric motors will pay an additional registration fee of $65 in 2020, increasing to $130 after January 1, 2022. Plug-in hybrid vehicles will pay a $32 fee beginning in 2020, increasing to a fee of $65 after January 1, 2022. Motorcycles that have a battery electric or hybrid motor will pay an additional $4.50 fee beginning in 2020, with the fee increasing to $9 by January 1, 2022.

    Excise Tax – A gallon of hydrogen is 249 pounds and will pay an excise tax of 65 cents per gallon. Vehicles using hydrogen fuel will have a special fuel sticker from the County Treasurer designating that the vehicle takes special fuel. Electric fuel means electrical energy delivered or placed into a battery or other energy source outside the motor vehicle to propel it. An excise tax of two and six-tenths cents per kilowatt hour of electric fuel delivered into the battery will attach at the time of delivery. A person cannot sell or dispense electric fuel unless they hold an electric fuel license.
    [4/27: 34-14 (Yes: Republicans, Kinney, Quirmbach; Absent: Lykam, T. Taylor)]

     

    HF 768 – Beginning farmer tax credit program

    HF 768 amends the Beginning Farmer Tax Credit Program, which had allowed up to $12 million in tax credits for the last five years. The legislation that increased the maximum tax credits allowed per year included a sunset of that increase after a five-year period to review the program to ensure the increase remained necessary and that the credit was targeted to the right type of situation. After the sunset, that income tax credit was reduced to a maximum of $6 million for tax years 2019 and after.

    Under this legislation, the tax credit limit for the beginning farmer program is again raised to $12 million for tax years 2019 and beyond. The tax credit is reorganized as a single program rather than reverting to the Agricultural Asset Transfer Tax Credit and Custom Contract Farming Tax Credit. The bill maintains existing income and asset limitations for qualifying farmers and restricts the cost of the lease a beginning farmer can be charged by someone who claims the tax credit. The tax credit no longer covers custom contract farming operations.
    [4/25: 49-0 (Absent: Chapman)]

    HF 769 – Gross weight of special trucks

    HF 769 allows a special truck used for certain farming purposes to increase to a gross maximum weight of 39 tons. The registration fee is an additional $25 per ton between 32 and 38 tons, and an additional $10 between 38 and 39 tons.
    [4/26: 49-0 (Absent: Feenstra)]

     

    HF 772 – Empower Rural Iowa

    HF 772 changes the Broadband Infrastructure Grant Program and the Workforce Housing Tax Credit Program. Under the bill, qualifying broadband projects eligible for grant assistance must meet upload/download speeds established by the Office of the Chief Information Officer. Currently, the speeds are outlined in Code at 25mbps/3mbps. The bill also extends the grant program by five years, and proposes a $5 million increase in tax credits available through the Workforce Housing Tax Credit Program. This $5 million is set aside for projects located within the 88 lowest population counties in the 2010 census. The Workforce Housing Tax Credit Program has a tax credit cap of $20 million, with $5 million reserved for projects in smaller communities.

    The bill changes the application process from first-come, first-served to a competitive process that scored by IEDA. Additionally, the bill allocates the entire cap for the program for FY20 to small city projects that were registered priority to July 1, 2019.

    HF 772 also provides $10 million in Workforce Housing tax credits for projects in counties designated disaster areas because of flooding along the Missouri River. Housing projects in disaster areas can receive a tax credit of up to 20% of new investment in the project, in addition to sales tax refunds. This is in addition to the credits available under the Workforce Housing Program.
    [4/24: 50-0]

     

    HF 778 – Capital gains deduction for sale of real estate involved in farming

    HF 778 amends the contingent capital gains for farm property that will happen for tax year 2023 if the revenue triggers in 2018’s SF 2417 are met. SF 2417 changed the capital gains exemption for farm real estate to a new standard under the contingent tax system in that bill. The capital gains deduction under the contingent tax system was narrower, reducing the value of the capital gains deduction.

    The capital gains deduction is allowed for sales of six types of qualifying assets:

    • Cattle, horses or breeding livestock
    • Real property used in a farm business
    • Real property used in a non-farm business
    • Timber
    • A business
    • Employer securities to a qualified Iowa employee stock ownership plan.

    The future (contingent) capital gain deduction is limited to:

    • The taxpayer “materially participated” in the farming business for at least 10 years and held the real property for at least 10 years; and sold the real property to a relative.
    • The deduction would be revoked if the relative sells or transfers the real property used in a farming business to a non-relative on the taxpayer within five years of the original sale.

    The bill would amend the future (contingent) capital gains deduction so that it would apply in the following cases:

    • The taxpayer “materially participated” in the farming business for at least 10 years and held the real property for at least 10 years; or the taxpayer sold the real property to a relative.
    • This bill expands the definition of relative to include an entity in which a relative of the taxpayer has a legal or equitable interest in the entity as an owner, member, partner or beneficiary.
    • This bill strikes provisions related to restricting the capital gain deduction for the sale of real property used in a farming business if the relative sells or transfers the real property used in a farming business within five years of the original sale.
      [4/25: 49-0 (Absent: Chapman)]

     

    HF 779 – Omnibus tax administration bill

    Division I – Income and franchise tax changes:

    • Technical changes to the new qualified business income deduction to incorporate the “cooperative” fix. This addresses the federal Tax Cut and Jobs Act (TCJA) that had inadvertently created a tax equity issue for people who sold their grain or other agricultural products through a cooperative.
    • Changes the administration of the school tuition organization (STO) so that the amounts are calculated on a calendar year basis rather than tax year. This is how the program is currently administered, but the change is necessary because corporate tax years vary.
    • Clarifies the allocation of the early childhood development tax credit among married taxpayers who filed joint federal tax returns.
    • Provides for the coupling of the state franchise tax to the federal tax code.
    • Technical changes to the treatment of like/kind exchanges to couple with federal changes made after the TCJA.

    Division II – Administrative changes: The Department of Revenue may adopt rules allowing taxpayers to designate another person to receive tax information.

    Division III – Sales and Use tax changes:

    • Clarifies the existing definition of “affiliate” to aid in collecting sales and use taxes from affiliated businesses.
    • Changes the amount of service or warranty contract subject to sales or use tax to the full price of the service contract.
    • Clarifies that carpentry repair and installation services are taxable. This relates to an Iowa Supreme Court case that involved construction services provided by Lowe’s. This mirrors administrative rules for electric or plumbing services. The administrative rules for carpentry did not include the two terms, creating uncertainty that the court ultimately decided.
    • Creates a new sales and use tax exemption for grain bins, including construction materials and replacement parts.
    • Clarifies the type of equipment not exempt from sales and use tax on sales or rentals of industrial machinery, equipment and computers. This change relates to telecommunications companies and prevents refund claims that could arise from other legislative changes that were not meant to create a new exemption for machinery and equipment used for manufacturing purposes.
    • Extends the sales tax exemption on digital products sold for commercial purposes to include digital service contracts.
    • Eliminates language creating a 200-transaction threshold for determining if a retailer is subject to the requirements for remote sellers to collect and remit sales tax. This leaves one test ($100,000 or more in sales) for determining whether or not a remote seller must comply with Iowa’s sales tax requirements. The transaction threshold is being eliminated in other states as well.
    • Reduces the frequency of required reports that must be filed by a “referrer” of online sales. A “referrer” is distinct from a marketplace facilitator. Under the bill, DOR cannot collect tax or require filings for referrers until administrative rules are in place to establish the responsibilities of a referrer.
    • Directs the Department of Revenue to establish a task force to review and provide clarity regarding the definition of “computer” as used throughout the Code and administrative rules.

    Division IV – Automobile Rental Excise Tax: Streamlines the process for collecting and administering the automobile rental excise tax to eliminate issues where online platforms don’t collect the full rental sales price at time of transaction.

    Division V – Telephone company property: Addresses conflicting legislative language in bills enacted following the 2018 session. SF 2388 and another bill both amended the same Code section. The changes included in those bills created uncertainty in how to implement them.

    Division VI – Targeted Jobs Withholding Tax Credit: Extends the targeted jobs withholding tax credit program by two years so that it ends after June 30, 2021, and restricts it to jobs created (not retained). The program is available for specified jobs located in a pilot project city. Pilot project cities include Sioux City, Council Bluffs, Burlington and Keokuk/Fort Madison. Sioux City is the most active participant in this program.

    Division VII – School Tuition Organization tax credits – Increases the amount of tax credits that can be issued under the School Tuition Organization (STO) tax credit program by $2 million to $15 million annually for tax year 2020. STOs provide scholarship assistance to students from families with incomes up to 400 percent of the federal poverty level.

    Division VIII–Income tax checkoffs: Re-authorizes the state fair and combined volunteer firefighter/veterans income tax checkoffs, and establishes a process to notify the Legislature of which checkoffs are scheduled to be eliminated from the state income tax form.

    There is a two-year cycle for established income tax checkoffs. After those two years, the two checkoffs that received the lowest amounts are eliminated from the state income tax return. For this cycle, the two lowest returns were the state fair and the combined volunteer firefighter/veterans checkoffs. The highest two checkoffs support wildlife habitat and child abuse prevention.

    The state income tax return has a maximum of four slots available for income tax checkoffs. The current system allows an opportunity to consider which checkoffs are included on the state income tax return and provides an opportunity to add new checkoffs to the form.

    Division IX– Powers and duties of director of Revenue: Adds a new item to the Code section outlining the powers and duties of the director of the Department of Revenue. This change clarifies that the director can audit or examine all taxes collected or administered by the department. This will extend audit and examination authority to the moneys and credits tax for credit unions. Because of a law change in 2018, the department now administers this tax. It previously had been administered through counties.

    Division X – Sales and Use Tax Exemption for Manufacturers: Clarifies changes from SF 2417 that had restricted who qualified for the sales and use tax exemption for manufacturing processes. Under that bill, anyone engaged in a designated business was unable to qualify for the manufacturing exemption. The bill allows the exemption for a company that is primarily engaged in manufacturing but also engaged in the listed activities. This is a minor adjustment to the change in definition of manufacturer in SF 2417, not a full-scale reversal.

    Division XI – State Research Activities Tax Credit (RAC): Amends the industries eligible to claim the state RAC to include agriscience. In 2018, SF 2417 reigned in the types of companies claiming the credit, and restored the credit to the activities intended under the legislation as passed in 2010. SF 2417 also prohibited those engaged in agricultural production, commercial and residential repair and installation, including HVAC, plumbing, security and electrical systems, from claiming the credit.

    Recent rulemaking by the Department of Revenue to enact SF 2417 has already included agrisciences as an eligible industry because it is difficult to separate it from “life sciences” that are allowed under the legislation. The bill does not extend the RAC to agricultural animal production.

    Division XII – Adoption tax credit; timing of eligible expenses: Allows adoption expenses to be included when claiming the adoption tax credit. Previously, expenses only could be claimed during the year the adoption is completed. That meant eligible expenses claimed in years before the adoption is completed can’t be included and requires the taxpayer to file amended returns for previous years to claim the credit for eligible expenses incurred during those years.

    Division XIII – Utility Replacement Tax Task Force: Extends the utility replacement task force by five years to January 1, 2024. This task force reviews the implementation and operation of the utility replacement tax created to replace the previous property tax on utilities.

    Division XIV – Repealing the alternative minimum tax for franchise taxes: Repeals the alternative minimum tax (AMT) for franchise taxes beginning in tax year 2021. A one-year transition allows the use of the AMT credit in tax year 2021 for those who have to pay the AMT in tax year 2020. This repeal mirrors the repeal of the corporate AMT in 2018’s SF 2417.

    Division XV – Geothermal system tax credit: Reinstates the state geothermal system tax credit that was eliminated in 2018’s SF 2417. The state credit is based off of the federal geothermal tax credit. The state credit will be issued on a first-come, first-served basis. The amount of credits issued in any one year is limited to $1 million.

    Division XVI – Moneys and Credits Taxes: Makes a technical fix to a legislative change in 2018 that put the Department of Revenue in charge of collecting and assessing the moneys and credits tax on credit unions. The bill removes the county boards of supervisors and county treasurers in the levying and collection process.
    [4/27: 44-4 (No: Bolkcom, Celsi, Quirmbach, R. Taylor; Absent: Lykam, T. Taylor)]

  • Natural Resources & Environment Committee – All-Bill Summary 2019

    SF 86 – Anatomical donor info for DNR licenses and education

    SF 282 – Repeal of Honey Creek Premier Destination Park bond program

    SF 409– Administrative procedures by DNR

    SF 548 – Prohibits revolving loan funds to acquire land

    HF 325 – Legal weapons for non-ambulatory hunters

    HF 604 – DNR contracts with out-of-state companies removing rough fish

     

    SF 86 – Anatomical donor info for DNR licenses and education

    SF 86 would establish hunting, fishing and trapping licenses issued by the Department of Natural Resources (DNR) as accepted records for a person to record their registration as an organ donor under the anatomical gift law. The bill makes a number of conforming changes to the anatomical gift law to add these documents as accepted records, including:

    • Allowing a minor who is at least 14 to register their anatomical gift on a hunting, fishing or fur harvester license, with the signed approval of a parent or guardian;
    • Authorizing a symbol to be placed on the license indicating the anatomical gift;
    • Providing that the revocation of the hunting, fishing or fur harvester license does not invalidate the gift on the Iowa donor registry;
    • Including the DNR as a resource for hospitals and organ procurement agencies to determine if an individual has made an anatomical gift.

    DNR must include a section on applications for hunting, fishing or fur harvester licenses for the applicant to request placement of the anatomical gift symbol. The DNR will also include information on becoming an organ donor as part of its hunter education and safety certificate program.

    The legislation is known as “Logan’s Law” in memory of Logan Luft, who died as a result of an all-terrain vehicle accident. His family was able to donate his organs and tissue. Logan was made aware of the organ donation option when he applied for a motor vehicle operator’s permit. His family advocated for expanding anatomical gift donor information and education to memorialize Logan’s life and broaden the reach of organ and tissue donation programs.
    [4/24: 50-0]

     

    SF 282 – Repeal of Honey Creek Premier Destination Park bond program

    SF 282 repeals Code language regarding the Honey Creek Premier Destination Park bond program. The bond program was established to finance construction and development of the Honey Creek Destination Resort State Park. The Legislature appropriated money for defeasement of the bonds in 2013, and the bonds were redeemed on June 1, 2016. By function of the Code language establishing the bond authority, the authority was dissolved two years after the redemption of the bonds on June 1, 2018.

    The bill makes a technical change to preserve existing Code language regarding competitive bidding requirements for the resort. The Code language that established the bond authority included an exemption for purchases related to operation of the resort, but not to development or construction of facilities at the resort. Because the park remains in operation (even though the bond authority has been dissolved), the competitive bidding language will be maintained in a new Code section.
    [3/11: 46-0 (Absent: Edler, J. Smith, Zaun; Vacant: Danielson)]

     

    SF 409– Administrative procedures by DNR

    SF 409 is a Department of Natural Resources (DNR) proposal that makes a number of changes to administrative procedures. Changes include:

    • Standardizing administrative appeal procedures. Existing laws provide 30 days to appeal or do not establish a timeframe. Additionally, the start of an appeal period is variously defined or not defined. The proposed revisions establish a consistent period of 60 days from when DNR mails the order.
    • Clarifying that a rural water utility can construct extensions of sewer or water supply systems under existing permitting authority in certain circumstances.
    • Allowing for waiver of certain requirements for written permits. Under the bill, the Environmental Protection Commission (EPC) may allow exemptions for a class of disposal systems or the DNR director may allow exemptions for individual systems.
    • Exempting DNR from having to publish notices for public water supply permits in a local newspaper, although public notice is still required.
    • Directing DNR to send information on an administrative order to the attorney representing the party in the matter.
      [4/23: 50-0]

     

    SF 548 – Prohibits revolving loan funds to acquire land

    SF 548 prohibits the use of non-point source water pollution control projects that receive funding through the state’s revolving loan fund to be used to acquire property for future donation or sale to the state, a political subdivision or the federal government. It also prohibits the state or political subdivisions from acquiring land that was purchased using assistance from the state’s revolving loan fund. The bill exempts land purchases to accommodate edge of field practices.

    Non-point source water quality projects can include:

    • Restoration of wildlife habitat
    • Stream bank stabilization
    • Wetland flood prevention areas
    • Detention basins
    • Grassed waterways
    • Ponds or wetland systems
    • Soil quality restoration
    • Other practices that are shown to improve or protect water quality

    Placing restrictions on projects that use state revolving loan fund assistance addresses concerns that these types of purchases make it more expensive or more difficult for famers to acquire farmland. Farmers wishing to buy the land get loans through a financial institution at rates higher than those offered under the state’s revolving loan fund. However, the private entities that use the revolving loan fund generally work with willing landowners to acquire the property and often want restrictions on the future development of the land.
    [4/23: 33-17 (Yes: Republicans, Kinney)]

     

    HF 325 – Legal weapons for non-ambulatory hunters

    HF 325 would allow a non-ambulatory hunter who was issued a deer license for one hunting season to use an unfilled deer license in a following season using the approved method of take for that season. Currently, the individual is limited to being issued a license for use during shotgun or muzzle loading rifle seasons only.
    [4/15: 50-0]

     

    HF 604 – DNR contracts with out-of-state companies removing rough fish

    HF 604 restricts DNR from awarding contracts to commercial operators for the removal of rough, undesirable or injurious fish from inland waterways. The bill prohibits DNR from awarding contracts to entities from states that do not allow Iowa companies to apply for these types of contracts. This bill is meant to address a situation that has arisen when other states eliminate contracts for the harvesting of rough fish. Companies from those states come to Iowa and underbid Iowa companies on contracts. The bill allows DNR to restrict commercial harvester licenses to entities from states that also allow the commercial harvesting of rough fish.

    Laborers hired by contractors or subcontractors may work without a license. This will allow companies applying for licenses and contracts to employ individuals from other states.
    [4/24: 49-1 (No: R. Taylor)]

     

  • State Government – All Bill Summary 2019

    SJR 17 – Resolution to allow sale of merchandise by ABATE on Capitol grounds

    SF 323 – Canned cocktails

    SF 367 – Eliminates Education and Regional Telecommunication councils

    SF 447 – Reversal of local control for residential rental living caps

    SF 475 – Allows remote, electronic notarial signatures

    SF 617 – Sports betting and fantasy sports

    SF 618 – ABD Omnibus Departmental Bill

    HF 303 – Statewide welcome center program technical changes

    HF 392 – Competitive bid process not required for professional services

    HF 393 – Gifts received by Executive Branch

    HF 485 – Purchasing for targeted small business procurement goals

    HF 486 – Building remediation grants for emergency projects

    HF 590 – Tax return preparers and providing penalties

    HF 634 – Combining juvenile justice boards

    HF 692 – Elections Bill

    HF 694 – EMS licensure & interstate compact

    HF 701 – Prohibits a city or county from adopting or enforcing an ordinance

    HF 743 – Uniform electronic storage of official documents

     

    SJR 17 – Resolution to allow sale of merchandise by ABATE on Capitol grounds

    SJR 17 is a resolution to allow sale of merchandise by A Brotherhood Aimed Towards Education (ABATE) on the Capitol grounds. ABATE holds a motorcycle rally and toy run each year to collect toys for Iowa children and sells commemorative merchandise at this event to help pay for police escort. The Department of Administrative Services requires the Legislature to approve requests by outside entities to sell things on the Capitol grounds. This resolution is in effect for the current two-year General Assembly.
    [3/11: 46-0 (Excused: J. Smith, Edler, Zaun; Vacant: Danielson)]

     

    SF 323 – Canned cocktails

    SF 323 allows for the sale of “canned cocktails” and “mixed drink or cocktails.” These beverages may contain between 6.25 and 15 percent alcohol by volume. The Code provisions applicable to beer will also apply to canned cocktails (redemption, etc.). The bill takes effect upon enactment.
    [3/12: 45-4 (No: Celsi, Costello, Guth, Hogg; Vacant: Danielson)]

     

    SF 367 – Eliminates Education and Regional Telecommunication councils

    SF 367 eliminates the Education Telecommunication Council and Regional Telecommunications Councils (RTCs). In 1994, the Legislature established an 18-member Education Telecommunications Council to assist in scheduling and site-usage policies for educational users of the Iowa Communications Network (ICN). The council also recommended long-range plans for enhancements to educational applications. At the same time, Regional Telecommunications Councils were established in each of the 15 community college districts. The RTCs provide advice on local educational needs and coordinate program activities, including technical assistance for network classrooms in community centers and schools. General Fund dollars went to the Iowa Telecommunications and Technology Commission for distribution to the RTCs based on usage by the region. In previous years, funding has been approximately $993,000 annually. This budget unit has not been funded since FY17.
    [3/11: 46-0 (Excused: J. Smith, Edler, Zaun; Vacant: Danielson)]

    SF 447 – Reversal of local control for residential rental living caps

    SF 447 prohibits a city from adopting or enforcing a regulation, restriction or other ordinance related to residential property rental caps on single-family homes or duplexes after January 1, 2019. This removes a city’s ability to put a cap on the percentage of rentals in a neighborhood. The bill is effective upon enactment.
    [3/11: 35-11 (No: Bolkcom, Boulton, Celsi, Hogg, Jochum, Mathis, Petersen, Quirmbach, Ragan, R. Taylor, Wahls; Excused: Edler, J. Smith, Zaun; Vacant: Danielson)]

    SF 475 – Allows remote, electronic notarial signatures

    SF 475 will allow a notary public to perform remotely through audio-visual technology. The bill strikes a provision that defines the phrase “personal appearance” to exclude an appearance that uses video or optical technology. Under the bill, a public notary who performs a notarial act remotely must comply with certain standards, including rules adopted by the Secretary of State. This includes keeping the audio-video recording of the notarization for at least 10 years. If a public notary complies with these standards, the personal appearance requirement is deemed satisfied. The bill also provides that a county recorder may accept a tangible copy of the electronic record, if a notarial officer certifies that the copy is accurate. This bill includes all notary acts, not just those involving real-estate transactions, effective July 1, 2020.
    [4/1: 48-0 (Excused: Breitbach, Zaun)]

     

    SF 617 – Sports betting and fantasy sports

    SF 617 establishes legalized sports betting and fantasy sports by establishing program outlines, licensing fees and tax rates. For sports betting, an initial license will be $45,000 with an annual renewal of $10,000. For fantasy sports, an initial license will be $5,000 if the annual revenue is more than $150,000 and $1,000 if less than $150,000. The tax rate is set at 6.75 percent for both sports betting and fantasy sports. For sports betting, the tax rate of 6.75 percent is designated as follows:

    • The tax revenue will be deposited in the newly created fund in 8.57, subsection 6. This fund will pay for $300,000 in gambling treatment efforts, as outline in a separate appropriations bill.
    • The licensing fee will be deposited in the general fund, but money will be held for a year with the Legislature directing appropriations, which may include additional monies to county endowments.
    • As of now, there is no new dedicated funding from sports betting or fantasy sports to the community endowments.
    • Qualified sponsoring organizations (QSO) will get 0.75 percent of the sports betting net receipts from their operator(s). This is 0.75 percent on top of the 6.75 percent the casinos will be taxed.

    Sports betting or “sports wagering” is authorized by the Iowa Racing and Gaming Commission (IRGC). Provisions include:

    • Bettors must be 21 or older and can place a bet at a “sports wagering area” in a casino or on a mobile device.
    • To bet on a mobile/electronic device, one must establish an account at a casino and set up an “advance deposit” system before January 2021. After 2021, bettors can set up an advance deposit system completely online.
    • No minor leagues allowed.
    • No in-game betting on individual Iowa college players or their opponent players.
    • Horses: Sports betting net receipts are added to the current purse disbursement of 11 percent on the first $200 million of net receipts and 6 percent of net receipts above $200 million at casinos with horse racing.

    Provisions include:

    • Service providers can be an online fantasy sports platform, a Racetrack (99D) or Gaming/Casino (99F).
    • Changing the definition of authorized sporting event to include only professional, collegiate, international and motor race events.
    • Sports betting does not include placing bets on individual performances of an Iowa collegiate sporting event or an international Olympic event where any contestant is under 18.

    Fantasy sports are simulated games in which prizes are established and made known in advance to all contestants. Prize winnings reflect the relative knowledge and skill of the participants and are determined by statistical results of the performance of individuals. College fantasy sports are delayed one year to make sure Iowa colleges and universities are prepared for these new potential outside activities.

    Miscellaneous provisions:

    • Qualified Sponsoring Organization (QSO) Boards will include one county supervisor and one member of a city council for each county and city that has a licensed gambling games facility. Anyone serving on a QSO board must be a resident of the state.
    • Adds to the Iowa Code a new sports gambling section concerning social gambling between individuals, to authorize social gambling on fantasy sports contests and to specify that a participant may not win or lose more than $1,000 during any 24 consecutive hours or over that entire period. Previously, wins or losses on social gambling were limited to $200.
    • Racetracks are explicitly allowed to apply for endowment grants.
    • Mobile apps must cite the 800-Bets-Off number and include extensive responsible gambling features (i.e., limit time of play, allow a time out, etc.).
    • The bill takes effect upon enactment, and must be implemented no later than July 4, 2019. The Racing and Gaming Commission will develop rules to implement the program.
      [4/17: 31-18 (Excused: Guth)]

     

    SF 618 – ABD Omnibus Departmental Bill

    SF 618 is the Alcoholic Beverages Division (ABD) departmental bill. It makes changes that will create clarity, improve readability and make the law easier for regulators to apply and enforce with consistency. This is largely a technical cleanup bill.

    This bill removes references to percentage of alcohol by weight from the definitions for alcoholic liquor, beer, high-alcoholic content beer and wine. The definition for wine is further amended to provide for percentage of alcohol by volume.

    It allows ABD to prescribe a uniform fee against certain licensees when they fail to maintain dram shop liability insurance and to assess a capped fee to recover administrative costs related to contested case proceedings through the administrative rules process.

    The bill will allow confidentiality of records collected by the Division from licensees or permittees in conjunction with investigations, inspections and audits before administrative or criminal charges are filed. This proposed change will assist the regulator and protect the rights of businesses it regulates.

    The bill will require liquor, wine and beer manufacturers to share with the Division the records they must submit to the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury (TTB). This ensures that the Division has the information it needs to validate taxes owed to the state. Reciprocal language for class “A” native distilled spirits license holders was passed in 2017.

    Other key changes in the bill include:

    • Authorizing the Division to adopt rules to recover operational costs arising from the failure of licensees or permittees to remain in compliance with the law.
    • Establishing uniform language regarding the types of action that may be taken because of a violation of the rules of the Division. Conforming changes are made throughout the chapter.
    • Eliminating the additional tax imposed on airlines for Sunday sales of liquor.
    • Relocating provisions in §123.144(2) and §123.146 that relate to how homemade beer can be used and how beer may be imported for personal use. These changes are intended to assist the reader by consolidating several related provisions into one section.
    • Allowing Hy-Vee and other stores to have a distribution center carry alcohol and deliver it to homes.
    • Adding “investigative” entities to those with access to investigative records.
      [4/23: 48-2 (No: Celsi, Hogg)]

     

    HF 303 – Statewide welcome center program technical changes

    HF 303 updates Code references to the statewide welcome center program; changes references from “agency” to “authority” to reflect that the Iowa Economic Development Authority (IDEA) is no longer an agency; removes references to a pilot project because welcome centers are no longer in a pilot phase; and requires the IDEA to collaborate with other state agencies as necessary to operate the welcome centers and provide information to travelers.
    [4/24: 50-0]

     

    HF 392 – Competitive bid process not required for professional services

    HF 392 says the competitive bid process is not required for professional services rendered by certain public employees. Previously, an official, a state employee, a member of the Legislature, or a legislative employee could not sell goods or services in excess of $2,000 to any state agency unless the sale is made pursuant to an award or contract  made after public notice and competitive bidding. This does not apply to a contract for professional services that is exempt from competitive bidding requirements in the Code or Administrative Code.
    [4/11:  49-0 (Excused: Brown)]

    HF 393 – Gifts received by Executive Branch

    HF 393 modifies the procedure for reporting gifts. Previously, all gifts received by a department or the governor must be reported to the Iowa Campaign Ethics Board and the Government Oversight Committee. The bill limits the reporting requirement to gifts with a value of $50 or more. The report must be made within 20 days.
    [4/10: 49-0 (Excused: Feenstra)]

    HF 485 – Purchasing for targeted small business procurement goals

    HF 485 — State agencies could previously purchase goods and services from Targeted Small Businesses (TSBs) without going through the RFP process, as long as the amount was under $10,000. The bill removes the dollar amount from Code and allows the Department of Administrative Services to set the dollar amount through the Administrative Rules process. However, the amount cannot exceed $25,000.
    [4/25: 49-0 (Excused: Chapman)]

    HF 486 – Building remediation grants for emergency projects

    HF 486 allows an emergency project to be eligible for a grant from the Community Catalyst Building Remediation Program Fund (without regard for application deadlines and the required percentage that is set aside for cities with small populations). An emergency project is defined as a remediation of an underused building that may present a unique and immediate opportunity or threat. This bill codifies what was previously in the Iowa Economic Development Authority’s Administrative Rules. Tornado damage to Marshalltown in 2018 was the impetus for the bill.
    [4/24: 50-0]

     

    HF 590 – Tax return preparers and providing penalties

    HF 590 defines a tax return preparer as an individual who, for a fee or other consideration, prepares 10 or more tax returns or claims for refund under Ch. 422 during a calendar year, or who assumes final responsibility for completed work on such tax returns or claims for refund under Ch. 422 on which preliminary work has been done by another individual. On or after January 1, 2020, a tax preparer must place their preparer tax identification number (PTIN) on any tax return or claim for a refund that they prepare under Ch. 422.

    The bill provides reasons for the Department of Revenue to seek a temporary or permanent injunction if a tax preparer engages certain bad actions. The bill also requires a minimum of 15 hours of continuing education on subjects prescribed by the Department of Revenue. Two of these hours will involve professional ethics. Continuing education hours must be taken from an IRS-approved provider.
    [4/24: 50-0]

     

    HF 634 – Combining juvenile justice boards

    HF 634 eliminates the Criminal and Juvenile Justice Planning Advisory Council, the Public Safety Advisory Board and the Sex Offender Research Council, and replaces them with the Justice Advisory Board. These boards have overlapping members and missions. The new 28-member board will have 22 voting members and six ex-officio nonvoting members.

    Members will include nine appointed by the governor with confirmation by the Senate and a member representing each of these organizations/agencies: Coalition Against Sexual Assault, American Civil Liberties Union, Iowa County Attorney’s, Department of Human Services, Department of Corrections, Department of Public Safety, Department of Public Health, Courts, a Judicial District, Department of Correctional Services, Office of the Status of African Americans, Board of Parole, State Public Defender, Governor’s Office of Drug Control Policy. The ex-officio members will be two district judges designated by the Chief Justice, the chair and ranking member of the Senate Judiciary Committee, and the chair and ranking member of the House Judiciary Committee or House Public Safety Committee.
    [4/2: 50-0]

     

    HF 692 – Elections Bill

    HF 692 implements the statewide use of postal service barcodes to determine the date that an absentee ballot was placed into the federal postal service. If the postmark or postal service barcode indicates that the ballot was mailed by the day before Election Day, the ballot must be counted. If there is a discrepancy between the date indicated by the postmark and the postal service barcode, the earlier date will be used to determine the “mailed by” date of the ballot. The bill also includes these  provisions:

    • Hospital Board of Trustees Elections – Establishes off-setting term limits for hospital boards of trustees.
    • City/School elections – Two dates in odd years, March and September. Three dates in even years. Strikes December.
    • Makes the fraudulent signing of nomination papers and the misuse of voter registration information election misconduct in the second degree, an aggravated misdemeanor.
    • Requires a person circulating a petition for nomination to include their contact information. The bill also specifies that a signature line must contain a signer’s residential address.
    • Permits objections to be filed to certificates of nomination for candidates to replace candidates who have died or withdrawn their nomination.
    • Allows the SOS to require a written explanation from a county commissioner who has been issued a notice of technical infraction. Such an explanation must contain measures the county commissioner took to redress the issues in the notice.
    • Precinct caucus participation – Cannot have participated in a different party caucus within the same year.
    • County auditors cannot participate in absentee ballot drives, unless they are on doing it for themselves only.
    • County auditors must remove or obscure any published material displaying auditors name, except on ballot or envelop. An auditor’s signature on a ballot is replaced with the county seal.
    • Prohibits distribution of sample ballots, per debacle caused by Linn County Auditor.
    • Conflicts of Interest (AGC Language) – Repeals the prohibition on elected or appointed county employees holding an interest in a contract for the construction, reconstruction, improvement or maintenance of any highway, bridge or culvert. Requires a state or county official who is a voting member of a government entity responsible for awarding a contract pursuant to competitive bidding procedures and is the apparent low bidder for the contract to abstain from voting to award the contract and include an explanation of the official’s conflict in the resolution.
    • Ballot order – The two political parties receiving the highest number of votes will each appear first on the ballot for one gubernatorial election and one presidential election in an eight-year period. The candidates of a party appearing first on the ballot in half of the counties in Iowa will appear second on the ballot in the other half of the counties.
    • Municipal Elections
      • School Board Candidate name withdrawals – goes from 35 to 42 days before an election.
      • Various requirements for canvasing deadlines for city, county, school elections.
      • City elections – if in more than one county, auditor with the largest tax base does the canvas.
      • Terms of office – school boards, various technical changes for transition provisions.
        [4/25: 50-0]

     

    HF 694 – EMS licensure & interstate compact

    HF 694 establishes an Emergency Medical Service Personnel Licensure Interstate Compact to allow EMTs and paramedics licensed in Iowa to practice in other states. Participating states must meet standards set by the compact, including registration requirements, training requirements, investigation procedures and notification procedures. The compact allows a person to work within the same scope of practice in any compact state. The home state has sole authority to discipline a licensee. Member states in the compact participate in the Interstate Commission for EMS Personnel Practice.

    The bill aligns Iowa Department of Public Health licensing authority language for EMS with language in the bill that establishes a multistate commission. It also establishes authority for IDPH to keep and retain new license application fees, which will include the required background check fee. Current law requires all licensing fees to be deposited into the EMS System Development Fund, which cannot be used by IDPH for administrative expenses. The bill will only affect new licensing applications. Renewal fees (which are the majority of the fees collected) will continue to be deposited into the EMS System Development Fund.
    [4/25: 50-0]

    HF 701 – Prohibits a city or county from adopting or enforcing an ordinance

    HF 701 prohibits a city or county from adopting or enforcing an ordinance, regulation or restriction that would prevent a nonconforming use from continuing if the use was legal before for preexisting manufactured, modular and mobile homes, and site-built dwelling units. This local control reversal applies unless a discontinuance is necessary for the safety of life or property; the nonconforming use is legally abandoned; or the nonconforming use is enlarged or extended.
    [4/9: 35-13 (No: Bolkcom, Boulton, Celsi, Dotzler, Giddens, Hogg, Jochum, Mathis, Petersen, Quirmbach, Ragan, J. Smith, Wahls; Excused: Bisignano, Feenstra)]

    HF 743 – Uniform electronic storage of official documents

    HF 743 sets up a process for the electronic storage of official documents. This is largely a technical bill based on the Uniform Electronic Legal Material Act (UELMA), prepared by the National Conference of Commissioners of Uniform State Laws in 2011. The bill requires the Legislative Services Agency (LSA), when acting as custodian of information, to provide for the publication of legal material. LSA must also provide methods of authentication and preservation of electronic records. The bill makes a number of other conforming and miscellaneous changes to the same Code chapter to implement the UELMA and to codify current publication practice.
    [4/23: 49-0 (Excused: Petersen)]

  • Human Resources Committee – All-Bill Summary 2019

    SF 210 – Iowa CARE Act

    SF 531 – Data registry on pediatric congenital heart surgery

    SF 563 – Pharmacy Benefit Manager’s annual report

    HF 291 – Spouse’s protected income for Medicaid eligibility

    HF 304 – Personal degradation

    HF 422 – Telehealth for CCUSO residents

    HF 423 – Medicaid for inmates

    HF 518 – Dually eligible Medicare and Medicaid members in nursing facilities

    HF 532 – Medical residencies

    HF 570 – HCBS Brain Injury cap

    HF 606 – Online continuing education for social workers, therapists and counselors

    HF 623 – Eliminating prior authorization for certain substance abuse treatment

    HF 625 – Integrating Medicaid and Hawki

    HF 642 – Sharing of information in human trafficking cases

    HF 644 – DHS to implement new federal Family First Act

    HF 690 – Children’s Mental Health

    HF 691 – MHDS regions fund balances

    HF 731 – Mandatory reporter training requirements

     

    SF 210 – Iowa CARE Act

    SF 210 allows Iowans to designate a lay caregiver who will be given instructions to care for the patient upon discharge from a hospital. The CARE Act has four main features: (1) Designate – The name of the family caregiver is recorded when a loved one is admitted into a hospital, if a patient chooses to designate one; (2) Notify – The designated family caregiver is notified when the patient is to be discharged back home; (3) Consult – The hospital discusses the caregiver’s abilities and limitations; (4) Instruct – The hospital reviews the patient’s care needs at home, and provides an explanation and live instruction of the medical tasks to be performed.
    [3/26: 49-0 (Excused: Breitbach)]

     

    SF 531 – Data registry on pediatric congenital heart surgery

    SF 531 requires a licensed hospital that provides pediatric congenital heart surgery to participate in a qualified clinical data registry and provide information on how to access the national information during educational consultations with parents.
    [3/21: 46-0 (Excused: Bisignano, Celsi, R. Taylor)]

     

    SF 563 – Pharmacy Benefit Manager’s annual report

    SF 563 requires a Pharmacy Benefit Manager to submit an annual report to the Insurance Commissioner regarding fees, drug prices and rebates received by the Pharmacy Benefit Manager in the aggregate. The reporting requirement is applicable to plans issued in 2019.
    [4/27: 49-0 (Excused: Guth)]

     

    HF 291 – Spouse’s protected income for Medicaid eligibility

    HF 291 raises the protected income that a spouse may retain when their partner is institutionalized from $24,000 to $25,284 to match federal law. Specific amounts are not spelled out in the bill, just the requirement to match federal regulations so new bills don’t have to be passed every time federal law changes.
    [4/23: 49-0 (Excused: Petersen)]

     

    HF 304 – Personal degradation

    HF 304 is a technical change that allows dependent adult abuse “personal degradation” to be classified as “confirmed, not registered” to better match the severity of the crime. It expands current law that allows “confirmed, not registered” if the action is minor, isolated and unlikely to reoccur. Other allegations of dependent adult abuse that currently have the “confirmed, not registered” option are physical injury, unreasonable confinement, unreasonable punishment, assault and neglect of a dependent adult by a caretaker.
    [4/18: 49-0 (Excused: Mathis)]

     

    HF 422 – Telehealth for CCUSO residents

    HF 422 allows the University of Iowa to provide health services for patients at the Civil Commitment Unit for Sexual Offenders (CCUSO) via telehealth when it is deemed medically necessary. This may save CCUSO some travel expenses if they don’t have to drive residents to Iowa City for treatment.
    [4/25: 49-0 (Excused: Chapman)]

     

    HF 423 – Medicaid for inmates

    HF 423 provides that Medicaid coverage of an inmate of a public institution will be suspended, but not terminated, after the first 30 days of commitment, and that the suspension will continue during the entire period of the inmate’s commitment to the public institution. Previously, the law allowed the suspension to continue for up to the initial 12 months of an inmate’s period of commitment, at which time the inmate’s Medicaid coverage would be terminated.
    [4/17: 50-0]

     

    HF 518 – Dually eligible Medicare and Medicaid members in nursing facilities

    HF 518 requires the Iowa Department of Human Services to seek approval from Centers for Medicare & Medicaid Services (CMS) to allow the payment of nursing facility room and board expenses to be made directly to the nursing facility for a dually eligible Medicare and Medicaid member receiving the Medicare hospice benefit or a Medicaid-only member receiving hospice. Currently, the payments are made to hospice and passed along to the nursing facility. This bill is based on one of the options put forward by a 2018 interim work group.
    [4/9: 48-0 (Excused: Bisignano, Feenstra)]

     

    HF 532 – Medical residencies

    HF 532 requires the Medical Residency Training state matching grants program and the awarding of primary care (including psychiatry) residencies by the University of Iowa Hospitals and Clinics (UIHC) to give priority to eligible applicants who are residents of Iowa, attended and earned an undergraduate degree from an Iowa college or university, or attended and earned a medical degree from a medical school in Iowa. The bill also directs the UIHC to allow Des Moines University fourth-year students to take elective classes at the Carver College of Medicine if space is available. The University of Iowa’s College of Medicine must conduct a study of the state’s workforce challenges in recruiting and retaining primary and specialty care physicians.
    [4/16: 49-0 (Excused: Shipley)]

     

     

     

    HF 570 – HCBS Brain Injury cap

    HF 570 removes the monthly Medicaid cap for those on the brain injury home and community-based services (HCBS) waiver; and requires the Iowa Department of Human Services to track the average amount expended per waiver recipient each fiscal year and report the information annually to the Governor and Legislature by October 1.
    [4/16: 49-0 (Excused: Shipley)]

     

    HF 606 – Online continuing education for social workers, therapists and counselors

    HF 606 prohibits the Board of Social Work from limiting the number of continuing education credits that social workers may obtain online and the Board of Behavioral Science from limiting the number of continuing education credits that marital and family therapists and mental health counselors may obtain online. It requires programs providing the continuing education credits online to comply with standards set by the appropriate board.
    [4/16: 49-0 (Excused: Shipley)]

     

    HF 623 – Eliminating prior authorization for certain substance abuse treatment

    HF 623 removes prior authorization requirements in Medicaid fee-for-service and managed care for Medication Assisted Treatment (MAT) for substance use disorders when these medications are used: Methadone, Buprenorphine, Naloxone, Buprenorphine and Naloxone combination and Naltrexone.
    [4/11: 49-0 (Excused: Brown)]

     

    HF 625 – Integrating Medicaid and Hawki

    HF 625 integrates Medicaid and Healthy and Well Kids in Iowa (Hawki) program eligibility, payment and administrative functions by eliminating the use of an administrative contractor under the Hawki program and transferring the duties of the administrative contractor to the Iowa Department of Human Services.
    [4/22: 49-0 (Excused: Segebart)]

     

    HF 642 – Sharing of information in human trafficking cases

    HF 642 allows sharing of certain confidential information by the Iowa Department of Human Services to interdisciplinary teams. Currently, they can only share the information if the team is working on a child abuse investigation. This bill will allow information sharing in human trafficking cases when the interdisciplinary team’s sole focus is children in human trafficking cases.
    [4/25: 49-0 (Excused: Chapman)]

     

    HF 644 – DHS to implement new federal Family First Act

    HF 644 allows the Department of Human Services (DHS) to implement the new federal Families First Prevention and Services Act (Family First Act). Under the bill, DHS must be more persistent in establishing and keeping foster care kids in their medical home and amends case plan requirements accordingly. It requires DHS to send “Proof of Foster Care” letters to youth to establish eligibility for Medicaid or educational assistance, etc. Promoting frequent visits between parents and children is required unless doing so would cause eminent risk to the child’s life or health. The Family First Act promotes practices to keep a child from entering foster care by using support systems within the family of origin. Standards regarding national background checks are elevated to anyone “working in a facility where children reside.”
    [4/23: 49-0 (Excused: Petersen)]

     

    HF 690 – Children’s Mental Health

    HF 690 codifies that the Children’s State Board will provide oversight to the Children’s Mental Health System. It sets up the regional governance structure for the children’s system by adding members and advisory councils to the current Mental Health and Disability Services (MHDS) Regional governing boards. The MHDS regional boards must hire a children’s coordinator. Eligibility for services is defined, as well as core services. No new funding mechanism is established.
    [4/16: 46-2 (No: Guth, Hogg; Excused: Dawson, Shipley)]

     

    HF 691 – MHDS regions fund balances

    HF 691 modifies the amount of excess funds counties can retain for cash flow for the adult Mental Health and Disability Services (MH/DS) system. Beginning in FY24, counties are limited to a fund balance reserved for cash flow of 40 percent of gross expenditures. Counties must reduce their levies by any dollar amount in excess of 40 percent beginning in FY24. If the bill takes effect on or after March 15, 2019, a county may recertify its budget as necessary to implement the provisions of the bill. In addition, MH/DS regions may amend a regional service system management plan or annual service and budget plan for FY19 and FY20. The bill strikes the current requirements of 20 or 25 percent cap on fund balances.
    [4/17: 50-0]

     

    HF 731 – Mandatory reporter training requirements

    HF 731 is based on an interim workgroup’s recommendations regarding mandatory reporter training requirements. The training is for child abuse and dependent adult abuse. The frequency of the required refresher training is changed from every five years to every three years. The training is two hours unless retraining occurs before the third year and then it is one hour. The training is to be developed and provided by the Iowa Department of Human Services (previously many curriculums were developed by numerous groups and approved by the Iowa Department of Public Health). An employer may provide supplemental training specific to the person’s professional practice.
    [4/17: 49-0 (Excused: Guth)]

  • Commerce Committee – All-Bill Summary 2019

    SF 228 – Bioscience Development Corporation

    SF 230 – Manufacturers of native distilled spirits, beer, wine

    SF 337 – Child labor exceptions for volunteers

    SF 402 – Credit Union Division “good faith” requirement

    SF 403 – Credit Union Superintendent subpoena power

    SF 412 – Insurance assignment of rights to contractors

    SF 505 – Professional landscape architects licensure

    SF 506 – Notification requirements for credit union mergers

    SF 507 – Workers’ compensation for idiopathic falls

    SF 528 – Self-service storage facilities

    SF 534 – Gasification, pyrolysis facilities

    SF 556 – Life and Health Insurance Guaranty Association membership

    SF 558 – Domestic surplus lines insurance

    SF 559 – Portable electronic insurance notifications

    SF 619 – Regulation of service contract providers

    HF 260 – Permissible interest rates

    HF 263 – Consumer loan exemption from fee if applicant denied

    HF 264 – Domestic stock insurers

    HF 305 – Enhance Iowa Board

    HF 327 – Franchisor-franchisee relationships

    HF 487– Installation of wireless communications infrastructure

    HF 537– Public utility right-of-way fee

    HF 668 – Business interests of alcoholic beverages entities

     

    SF 228 – Bioscience Development Corporation

    SF 228 is a recommendation by the Iowa Economic Development Authority. It cleans up Code language relating to definitions in the Targeted Small Business Program. It also replaces the Iowa Innovation Corporation, which was created in 2011, with the Iowa Bioscience Development Corporation (IBDC). This new corporation’s structure as a non-profit and purpose are similar to the current Iowa Innovation Corporation. The Bioscience Development Corporation will be tasked with enhancing bioscience-based economic development. The corporation will focus on vaccines and immunotherapeutics; bio-based chemicals; precision and digital agriculture; and medical devices and medical diagnostics.

    The proposal changes the number of members and type of members on the Innovation Council (which is different than Innovation Corporation): representatives from targeted industry businesses increase by seven; those who serve on the Technology Commercialization Committee and then serve on the Iowa Innovation Corporation is reduced by seven members. It does NOT change programs and funds, such as the Innovation and Commercialization Development Fund or the Strategic Infrastructure Fund. The Governor recommends a new general fund appropriation of $2 million for a joint effort by Iowa State University and the University of Iowa for a Biosciences Innovation Ecosystem, but no appropriation is in this policy bill.
    [4/25: 49-0 (Absent: Chapman)]

     

    SF 230 – Manufacturers of native distilled spirits, beer, wine

    SF 230 relates to the authority of manufacturers of beer and native distilled spirits (Iowa Code Chapter 123). It amends the section concerning native distilleries by allowing a manufacturer of native distilled spirits to be issued a class “C” native distilled spirits liquor-control license, regardless of whether the manufacturer is also a manufacturer of beer; amends the section concerning limitations on business interests to provide that a manufacturer of beer may be granted one class “B” beer permit to sell beer at retail for consumption on or off the premises of the manufacturing facility regardless of whether the manufacturer also makes native distilled spirits; and amends the section concerning keeping liquor where beer is sold to allow liquor for beverage purposes to be used or kept at a premises for which both a class “B” beer permit and class “A” native distilled spirits license have been issued. The proposal was initiated by Toppling Goliath Brewing Company in Decorah. The Iowa Alcoholic Beverage Division has no objections to the legislation, noting that it offers parity for breweries and does not change the state’s three-tier system. Native wine manufacturers may hold similar multiple licenses/permits. Native wineries could sell beer for on-premises consumption or for carry-out sales, and wine and beer could be stored on premises where a native winery has a permit to sell beer.
    [4/15: Concur, 49-1 (No: Costello)]

     

    SF 337 – Child labor exceptions for volunteers

    SF 337 is an Iowa Economic Development proposal supported by the Iowa Commission on Volunteers Service, United Ways of Iowa and the YMCA State Alliance. It modifies current provisions of Code Chapter 92, which are Iowa child labor regulations regarding hours, permits, prohibited occupations and permitted occupations for those under 18. The proposal establishes three new exceptions to the law: a child who willfully volunteers, as defined by federal regulation, for a charitable or public purpose; a child 12 or older who is employed by a charitable organization or unit of state or local government as a referee for a sports program sponsored by that charitable organization or unit of government; a child under 16 who serves in the Iowa Summer Youth Corps Program in Section 15H.5 or a child over 14 who serves in any other recognized program of Iowa National Service Corps Program, in accordance with Section 15H.9. These three new subsections must comply with prohibited hazardous occupations listed in Code section 92.8.
    [3/26: 49-0 (Absent: Breitbach)]

     

    SF 402 – Credit Union Division “good faith” requirement

    SF 402 is a proposal by the Credit Union Division to add a new section to Code Ch. 533 – Credit Unions. It stipulates that any information, record, application or document provided to the division must be provided in good faith. A director, officer, agent or employee of a state credit union, a credit union service organization, or any other person must not intentionally publish, report, submit or file any information, record, application or document that is false or misleading by statement or omission. Any such information provided in the absence of good faith or in violation of the bill may be subject to revocation of prior approval or denial.
    [4/8: 50-0]

     

    SF 403 – Credit Union Superintendent subpoena power

    SF 403 is a recommendation by the Credit Union Division of the Department of Commerce. Currently, the superintendent of credit unions can subpoena witnesses and compel the production of any relevant record only during the period of an examination of a state credit union. This bill expands the timeframe to include the examination period and time related to any report or filing made by or provided to the division. If a person subpoenaed by the superintendent fails to produce a record as required by the terms of the subpoena, the superintendent may apply to Polk County district court to issue an order compelling compliance. The refusal of any person to obey such an order without reasonable cause constitutes contempt of court.
    [4/8: 50-0]

     

    SF 412 – Insurance assignment of rights to contractors

    SF 412 relates to post-loss assignment of rights to residential contractors for repair or services performed on residential real estate covered by property and casualty insurance. The Attorney General strongly opposed the original proposals but worked with legislators and stakeholders to craft legislation that included the recommended consumer protections.

    The legislation allows the insured to cancel the contract at the later date of either the execution date or the date on which the insured receives the assignment; adds one additional notice provision that must be included in the contract/assignment (notice of the right to cancel and the process to do so); and makes a violation an unlawful practice under 714.16 – Consumer Frauds. The contract between the insured and the contractors is void if a contractor violates any requirement related to the post-loss assignment of rights or benefits by the insured to the contractor.

    The post-loss assignment must include an itemized description of, and the materials, labor and fees for, the work to be performed, including a total itemized amount. It also requires that the post-loss assignment include a statement and a notice, in 14-point type, that the contractor has not represented that the claimed loss will be fully covered by insurance. After the post-loss assignment is executed, a copy must be provided to the insurer of the real estate within five business days. The insured has the right to cancel the assignment for any reason within those five business days. If the insured cancels, the contractor must return any payments made by the insured, the landowner or the possessor of the real estate.

    Any written contract, estimate or work order prepared by the contractor must include a notice advising the insured that the insured is responsible for payment to the contractor for any goods or services provided by the contractor, even if the insured does not receive payment from the insurance policy. The notice also advises the insured that if the contractor advertises or promises to rebate the insured’s deductible, or represents or negotiates, or offers to represent or negotiate with the insured’s property and casualty insurer on behalf of the insured, the insured is not responsible for payment to the contractor under the contract, estimate or work order. A copy of the document, signed by the insured, must be sent to the insured’s insurance company prior to the contractor being paid from the proceeds of the insurance.
    [3/18: 48-0: (Absent: Dawson; Vacant: Danielson)]

     

    SF 505 – Professional landscape architects licensure

    SF 505 is a recommendation by the Banking Division’s Professional Licensure Bureau that updates provisions relating to the licensure of professional landscape architects by the Landscape Architectural Examining Board. It includes a change to the board membership requirements. The seven-member board includes two public members and five professional members who must be actively engaged in the practice or teaching of landscape architecture for at least five years preceding appointment. The bill allows one of those five members to be actively engaged in the practice or teaching of landscape architecture for at least one year preceding appointment. It also allows the board to adopt a national standardized test, and give reciprocity to individuals who have passed the same standardized test in other states.
    [3/21: 46-0 (Absent: Bisignano, Celsi, R. Taylor; Vacant: Danielson)] 

     

    SF 506 – Notification requirements for credit union mergers

    SF 506 is a recommendation by the Credit Union Division. Currently, a merging credit union must provide notice of balloting for voting members at least 20 days prior to the scheduled vote. It requires that at least 15 days before that notice is sent to members, a merging credit union must submit to the Superintendent of Credit Unions all materials that will be included in the notice. The Superintendent must review and approve those materials at least 10 days before the notice is sent to the members, and may direct other materials to be included in the notice.
    [3/19: 49-0 (Vacant: Danielson)]

     

    SF 507 – Workers’ compensation for idiopathic falls

    SF 507 changes the definition of personal injuries arising out of and in the course of employment for purposes of workers’ compensation. It creates a blanket rule that personal injuries due to idiopathic or unexplained falls from a level surface onto the same level surface would not be compensable under workers’ compensation, rather than looking at such falls on a case-by-case basis and requiring the claimant to show proof that the condition of a floor, just like any other workplace condition, poses an increased risk of injury and should be compensated.
    [3/19: 32-17, party line (Vacant: Danielson)]

     

    SF 528 – Self-service storage facilities

    SF 528 creates a new Code chapter on self-service storage facility liens and repeals the current chapter (578A). It includes updated definitions (e.g., “leased space” is individual storage space at a self-service storage facility rented to an occupant by a rental agreement; “occupant” is a person entitled to use that space under a rental agreement, or the person’s successors or assignees; “operator” means the owner, operator, lessor or sub-lessor of a self-service storage facility or an agent or other person authorized to manage the facility.)

    It allows the operator and occupant to agree to use email to satisfy all notice requirements. If they do so, the rental agreement must contain a section outlining the rights and duties of both parties regarding use of email for all notices. There must be a brief, general description of the personal property subject to the lien. The description must be reasonably adequate to permit the occupant to identify the property. If any container includes a trunk, valise or box that is locked, fastened, sealed or tied in a manner that deters immediate access to its contents, it must be described as such, with no description of the contents. The operator must notify all they know of who claim a security interest in the personal property.

    At least seven days before the sale, the operator must also advertise the time, place and terms of the sale in a commercially reasonable manner (i.e., likely to attract at least three independent bidders to attend or view the sale in person or online at the time and place advertised). The operator may buy the occupant’s personal property at this public sale.

    The rental agreement must disclose if the facility is located in a flood zone (FEMA-defined “special flood hazard area”), and provisions the operator will follow if such a catastrophic event makes the storage space unusable for the occupant.
    [3/28: 35-12 (No: Bolkcom, Boulton, Celsi, Dotzler, Giddens, Hogg, Jochum, Mathis, Petersen, J. Smith, T. Taylor, Wahls; Absent: Breitbach, Nunn, Sweeney)]

     

    SF 534 – Gasification, pyrolysis facilities

    SF 534 relates to the use of gasification and pyrolysis facilities for the conversion of certain recoverable waste materials. It excludes the facilities from the definition of “sanitary disposal project,” excludes certain post-use polymers and recoverable feedstocks from the definition of “solid waste,” and excludes certain gasification and pyrolysis facilities from the definition of “waste conversion technologies.” The proposal incorporates recommendations by the Iowa Department of Natural Resource’s Waste Management Bureau to include financial assurance provisions for proper disposal of any materials that remain at a facility due to the owner’s or operator’s failure to properly close the site within 60 days of termination of operations.
    [3/13: 45-3 (No: Celsi, Hogg, R. Taylor; Absent: T. Taylor; Vacant: Danielson)]

     

    SF 556 – Life and Health Insurance Guaranty Association membership

    SF 556 updates Iowa Code relating to the membership of the Life and Health Insurance Guaranty Association (LHIGA) and assessments to member insurers for insurance written by impaired or insolvent member insurers. It more closely conforms Chapter 508C to the National Association of Insurance Commissioners’ (NAIC) model act, including provisions recently adopted by NAIC. Regardless of the state in which an insurance company is located, there are policyholders across the country. The bill provides that assessments to member insurers of the LHIGA for long-term care insurance written by an impaired or insolvent insurer must be allocated by the methodology included in the association’s plan of operation and must provide for 50 percent of the assessment to  accident and health member insurers and 50 percent to life and annuity member insurers. Current law does not provide for life and annuity members to be included in the assessment for long-term care insurance. The 50/50 split offers parity in those long-term care policies that may be categorized as a type of “life insurance” and/or “health insurance.” The bill takes effect upon enactment.
    [3/20: 49-0 (Vacant: Danielson)]

     

    SF 558 – Domestic surplus lines insurance

    SF 558 allows insurers of surplus lines to be based in Iowa. It establishes requirements and defines “domestic surplus lines insurer” as an insurer that is domiciled in this state and authorized by the Insurance Commissioner to do business as such. Currently, a company with its main office in Iowa can write surplus lines insurance in every state except Iowa. The bill also specifies requirements that a non-admitted insurer domiciled in Iowa must meet to be considered a domestic surplus lines insurer. Surplus lines insurance (a.k.a. excess lines insurance) helps provide coverage of an unconventional nature (e.g., Ninja Gyms, underground storage tanks, long-haul trucking of high-value, hazardous or perishable cargo) when what needs to be insured makes it difficult to get insurance through regular lines because the insurance companies are unable or unwilling to accept the risk. The proposal, based on recommendations by the Iowa Insurance Institute working with the Iowa Insurance Division and other stakeholders, should enhance Iowa’s reputation as an insurance industry leader and could bring more jobs to the state. Similar legislation has been enacted in 18 other states.
    [3/19: 49-0 (Vacant: Danielson)]

     

    SF 559 – Portable electronic insurance notifications

    SF 559 allows insurance carriers to electronically send notifications and documents to customers who purchased portable electronics insurance policies in a retail transaction. Prior to or at the point of sale, the consumer must provide an e-mail address and must be advised in a conspicuous disclosure that by providing the e-mail address, the consumer is giving affirmative consent for insurance notices and correspondence to be delivered by electronic means. The consumer must also be provided a conspicuous disclosure advising them of their right to have the notice or document in paper form, and of the right to cancel consent.
    [3/20: 49-0 (Vacant: Danielson)]

     

    SF 619 – Regulation of service contract providers

    SF 619 combines two Code Chapters (516E Motor Vehicle Service Contracts and 523C Residential Service Contracts). The proposal is based on recommendations by the Service Contract Industry Council (SCIC), a national trade association that works with lawmakers across the country to develop fair and uniform regulation. SCIC member companies collectively offer approximately 80% of all appliance, consumer electronics, home and vehicle service contracts in the U.S.

    The Iowa Insurance Division has worked on the proposal to incorporate recommendations based on the Model Act by the National Association of Insurance Commissioners. The Attorney General’s Consumer Protection Division has offered additional recommendations, such as cancellation notice provisions and a stipulation that if unlicensed service companies sell in Iowa, it is a violation of the Iowa Consumer Fraud Act and the customer’s contract is void.

    With advice from the service contract providers, the Insurance Division and the Consumer Protection Division, the bill ensures that existing consumer protections in the two chapters are contained in the new merged chapter.
    [4/22: 49-0 (Absent: Segebart)]

     

    HF 260 – Permissible interest rates

    HF 260 allows the Iowa Superintendent of Banking to set interest rates on a tiered basis and finance charges for certain loans of $30,000 or less. It applies to non-depository lenders who acquire financing on the open market (banks and credit unions are depository lenders). These lenders offer installment loans to consumers, typically small loans for appliances or vehicles. Customers may prefer this local financing option to apply for a loan rather than another financial institution, delayed deposit companies (payday loans), or out-of-state online lenders that charge higher rates and fees. Currently, the Superintendent can establish the maximum rate of interest or charges for regulated loans (Code Ch. 536, Regulated Loans) with unpaid principal balances of $10,000 or less. This increases that amount to $30,000. The maximum interest rate is capped at 36 percent. For loans with unpaid principal balances in excess of $30,000, the maximum interest rate or charges remains the greater of the rate permitted in Code Ch. 535 or the rate authorized for supervised financial organizations in Code Ch. 537. The bill authorizes a creditor to contract for and receive, for an interest-bearing consumer credit transaction, a service charge (a.k.a. loan origination fee) in an amount not to exceed 10 percent of the amount financed or $30, whichever is less. If the creditor has received such a service charge, the creditor cannot collect or retain a minimum charge upon prepayment as authorized under Code section 537.2510; rebate upon prepayment does not apply to service charges collected pursuant to the bill.

    Stakeholders worked with the Banking Division and Attorney General’s office to proper ensure regulation and consumer protection. The companies will continue to be regulated and licensed by the Superintendent of Banking and be under the jurisdiction of the Attorney General via the Uniform Consumer Credit Code.
    [4/8: 40-10 (No: Bolkcom, Celsi, Dotzler, Giddens, Hogg, Jochum, Lykam, J. Smith, T. Taylor, Wahls)]

     

    HF 263 – Consumer loan exemption from fee if applicant denied

    HF 263 is designed to clarifying the Iowa Consumer Credit Code. Code section 537.2501 lists permissible fees that banks and credit unions may charge on consumer loans, and those fees are excluded from the finance charge, which is capped at 21 percent. Current law allows a financial institution to charge an application fee on loans for less than $3,000 with terms less than a year. The fee is limited to 10 percent of the amount loaned or $30, whichever is less.

    A southeast Iowa credit union is starting a “payday loan alternative” program for these small-dollar loans and does not want to charge the application fee if applicants are denied. The legislation gives financial institutions flexibility to waive the fee if clearly stated in the application, and the waiver is applied to all who are denied a loan. The Attorney General’s office has provided guidance to clarify that credit unions and banks can charge this fee only to those approved for the loan and still have it excluded from the finance charge.
    [4/24: 50-0]

     

    HF 264 – Domestic stock insurers

    HF 264 allows Iowa domestic stock companies to divide into two or more insurers, and provides a process for regulatory approval for such actions. The insurer must file its plan with the Iowa Insurance Division and meet various requirements. The Division will determine whether to approve the plan. The proposal is modeled after Connecticut law and does not apply to mutual insurance companies.
    [3/25: 50-0] 

     

    HF 305 – Enhance Iowa Board

    HF 305 is an Iowa Economic Development Authority (IEDA) proposal. It increases the term of voting members on the Enhance Iowa Board from two years to three years; and provides a transition from the current two-year, staggered terms to three-year, staggered terms. The bill directs the Board, rather than the IEDA, to adopt rules to administer the programs established in Code Chapter 15F. It also eliminates the requirement that the Board, at the beginning of each fiscal year, allocate $100,000 from the Community Attraction and Tourism fund to market projects receiving money from the fund.
    [4/24: 50-0]

     

    HF 327 – Franchisor-franchisee relationships

    HF 327 specifies that a franchisor is not defined as an “employer” for certain purposes. It exempts franchisors from liabilities under Iowa Code chapters applicable to workers’ compensation, wages, unemployment compensation and civil rights.

    • Workers’ Compensation: A franchisor is not an employer for workers’ compensation purposes unless there is a written agreement or the workers’ compensation commissioner finds the franchisor exerts control over the franchisee that is not customary for the purpose of protecting the franchisor’s trademarks and brand.
    • Wage Payment: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the commissioner finds the franchisor exerts control over the franchisee that is not customary.
    • Minimum Wage: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the labor commissioner finds the franchisor exerts control over the franchisee that is not customary.
    • Unemployment Compensation: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the department finds the franchisor exerts control over the franchisee that is not customary.
    • Civil Rights Commission: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the commission finds the franchisor exerts control over the franchisee that is not customary.
      [3/25: 32-18, party line]

     

    HF 487– Installation of wireless communications infrastructure

    HF 487, the Iowa Cell Siting Act, provides uniform rules and limitations and requires authorities to approve an application for a tower in compliance with the Nationwide Public Safety Broadband Network in counties with populations of less than 15,000 people. An authority or governing body authorized to make decisions relative to a cell siting cannot reject an application for the installation of a tower or transmission equipment in the unincorporated area of a county with a population of less than 15,000 (except on property zoned as single-family residential or property of historic significance). It requires written confirmation from the Statewide Interoperable Communications System Board that the tower or equipment will be installed and used as part of the state plan approved under the federal law for the deployment of the public safety broadband and radio access networks. The State of Iowa opted in to “FirstNet,” and it is in the first year of a five-year build-out that will cover 99.5 percent of the Iowa population, including 99.2 percent of our rural areas. FirstNet’s public safety mission is to build and deploy a high-speed nationwide wireless broadband network dedicated to first responders to help them better communicate and collaborate across local, state, tribal and national jurisdictions. The bill, which is designed to address a controversial plan to construct a cell phone tower in Allamakee County, takes effect upon enactment and sunsets in two years.
    [3/14: 38-10 (No: Bisignano, Bolkcom, Celsi, Dotzler, Hogg, Jochum, Quirmbach, J. Smith, R. Taylor, Wahls; Absent: Miller-Meeks; Vacant: Danielson)]

     

    HF 537– Public utility right-of-way fee

    HF 537 relates to certain fees imposed on public utilities for the use of public rights-of-way [Ch. 480A]. Currently, local governments may impose fees on public utilities for operating facilities in public rights-of-way. A local government may only impose a fee for management costs that are caused by the utility’s activity in the right-of-way, and cannot require in-kind services in lieu of a fee. The bill modifies the definition of “management costs” and requires that such costs be direct and fully documented. It specifies that a local government may only recover a permit fee for management costs attributable to the utilities requested use of an available public right-of-way, instead of management costs caused by the utility’s activity in the right-of-way. It provides that Code section 480A.3, relating to permissible fees imposed on public utilities, not prohibit voluntary agreements between a public utility and local government to share services to reduce costs and preserve public rights-of-way for future public safety purposes, and allows in-kind services in lieu of a fee for such voluntary agreements. The Legislative Services Agency (LSA) fiscal note indicated that the legislation may decrease revenue to local governments by more than $100,000, but, at the time of bill passage, LSA had not received data to identify the total fees collected under Iowa Code chapter 480A, and so could not estimate the fiscal impact at that time.
    [4/23: 32-18 (Yes: Republicans, Kinney, Ragan; No: Democrats, Rozenboom, Zaun)]

     

    HF 668 – Business interests of alcoholic beverages entities

    HF 668 relates to limitations on business interests of certain manufacturers, wholesalers and retailers of alcoholic beverages. In 2017, the Legislature passed SF 516, which required the Iowa Alcoholic Beverages Division to extensively  review Iowa’s “tied house” laws (limitations on business interests of manufacturers, wholesalers and retailers of alcoholic beverages) to assist legislators in determining if current laws adequately meet the needs of the modern marketplace and protect public health, safety and welfare. The Alcoholic Beverage Control Study was submitted to the Legislature on July 1, 2018. The bill allows employees to engage in cross-tier employment as long as they are not in a position to influence; provides an exception to allow alcoholic beverage retail sales at the principal office of a retailer; allows beer manufacturers to sell, at wholesale, no more than 30,000 barrels of beer annually for off-premise consumption; and defines “institutional investor” to clarify that a person who has investments in businesses that manufacture, bottle, wholesale or sell alcoholic beverages at retail may maintain a diversified portfolio of investments (such as deferred compensation, stocks, retirement plans) that includes alcoholic beverages, if the majority of investments are in other businesses.

    The bill makes changes related to tied house and the three-tier system:

    • Allows an alcoholic beverages manufacturer or wholesaler to have an interest in an alcoholic beverages retailer, provided the retailer does not sell the manufacturer’s or wholesaler’s product.
    • Creates an exception to the limitation above, allowing a person engaged in the business of manufacturing wine that is not native wine to sell that person’s wine products at their principal office by obtaining a special class “C” liquor control license and a class “B” wine permit. Another retail licensee or permittee operating at the principal office of a person engaged in the business of manufacturing wine that is not native wine would also be able to sell that person’s wine.
    • Allows cross-tier ownership through investments, provided the majority of investments in a person’s portfolio are not in businesses that manufacture, bottle, wholesale or sell at retail alcoholic beverages.
    • Allows for cross-tier employment, provided the employee is not an officer, owner, director, or in a position to exercise any control or influence over the types of sales or the purchasing of alcoholic beverages in either position of employment.
    • Limits the ability for a native brewery to sell at wholesale no more than 30,000 barrels of beer on an annual basis to retailers authorized to sell beer in Iowa.
      [3/13: 38-11 (No: Bolkcom, Celsi, Hogg, Jochum, Kinney, Mathis, Petersen, Quirmbach, Ragan, J. Smith, R. Taylor; Vacant: Danielson)]
  • Government Oversight – All Bill Summary 2019

    HF 764 – Publication procedures for constitutional amendments

    HF 764 removes the constitutional amendment notification publishing duties from the Secretary of State and gives them to the Legislature. The bill still requires the Secretary of State to pay for the publishing. HF 764 keeps the newspaper publishing requirement and adds a requirement to publish proposed amendments on the Legislature’s website.

    The validity of an amendment may be challenged if both the newspaper and website publications are not fulfilled. The bill lays out proof-of-publication requirements and strikes the requirement for the Governor to issue a proclamation before the election. Any proposed constitutional amendment that has been approved by two succeeding General Assemblies will go to a vote of the people in the next General Election.

    Previously, amendments had to be published by the Secretary of State in two newspapers of general circulation in each congressional district for the time required by the constitution. Last fall, the Secretary of State was derelict in his duties and neglected to publish two proposed amendments. This mistake reset the process for the strict scrutiny gun amendment and the line-of-succession to Governorship amendment.
    [4/27: 40-8 (No: Bolkcom, Dotzler, Giddens, Hogg, Mathis, Petersen, Quirmbach, J. Smith; Excused: Lykam, T. Taylor)]

  • Local Government Committee – All-Bill Summary 2019

    HF 516 – County sheriff and police chief voting on joint 911 service board

    HF 595 – Elections deputy salary

    HF 685 – Cost of medical aid provided to prisoners in jails

    HF 698 – Pioneer cemeteries

    SF 93 – Abandoned structures and nuisance properties

    SF 283 – Conflict of interest for school, county board and county employees

    SF 502 – Political subdivision whistleblower protection

     

    HF 516 – County sheriff and police chief voting on joint 911 service board

    HF 516 provides voting membership on a joint 911 service board to county sheriffs and each local police chief within a Public Safety Answering Point (PSAP).
    [4/17: 50-0]

     

    HF 595 – Elections deputy salary

    HF 595 authorizes elections deputies to receive 85 percent of the auditor’s salary.
    [4/26: 49-0 (Absent: Feenstra)]

     

    HF 685 – Cost of medical aid provided to prisoners in jails

    HF 685 creates a work group comprised of the Iowa Sheriff’s and Deputies Association, the Iowa Association of Counties and the Iowa Hospital Association to review current process of payment for medical aid provided in county jails. The group must consider and propose recommendations related to prisoner payment, responsibility, payment processes and rates, and submit recommendations to the Legislature by December 15, 2019.
    [4/15: 49-0 (Absent: Shipley)]

     

    HF 698 – Pioneer cemeteries

    HF 698 would allow a county board of supervisors and a pioneer cemetery commission to jointly decide the care of cemeteries that no longer qualify as pioneer cemeteries. Currently, 20 counties are using up to 6.75 cent levy to fund the cemeteries, but the highest is only 4.5 cents.
    [4/1: 48-0 (Absent: Breitbach, Zaun)]

     

    SF 93 – Abandoned structures and nuisance properties

    SF 93 makes changes to the abandoned structures and abatement law. The bill removes the length of time needed to consider a structure abandoned, along with evidence of financial responsibility, if the property is in need of abatement. A hearing is eliminated if those interested show intent and responsibility to restore the property in good faith. The bill’s aim is to motivate current owners to restore nuisance properties with local option. The bill exempts agricultural land.
    [3/25: 50-0]

     

    SF 283 – Conflict of interest for school, county board and county employees

    SF 283 raises the threshold to $6,000 for conflicts of interest for school board members, county board members and county employees when they enter into a contract with the specified entity.
    [4/1: 45-3 (No: Boulton, Celsi, Hogg; Absent: Breitbach, Zaun)]

     

    SF 502 – Political subdivision whistleblower protection

    SF 502 requires a political subdivision’s human resources department to provide notification of whistleblower protection, along with information about the state’s Office of Ombudsman protections. The legislation also provides for civil damages to the whistleblower.
    [4/25: 50-0]

  • Veterans Affairs Committee – All-Bill Summary 2019

    SF 341 – Service animals in housing

    HF 288 – Injured veterans grant parameters; professional licensure

    HF 289 – Distribution of gambling receipts for charitable purposes

    HF 689 – Removal of county veterans service officers

     

    SF 341 – Service animals in housing

    SF 341 relates to assistance animals and service animals in housing, and misrepresenting oneself as entitled to such an animal in housing.

    The Iowa Civil Rights Commission will work with the Attorney General’s Consumer Protection Division to develop a verification form for providers to use in written findings. The form can only allow for a “yes” or “no” response on whether the patient or client has a disability and whether the need for the animal is related to the disability. The form cannot allow for additional detail. The bill conforms Iowa’s definition of “service animals” to the federal definition: dogs and miniature horses only. The substantive portions do not apply to “assistive animals” under chapter 717F, only to “assistance animals” and “service animals” as defined by the Americans with Disabilities Act (ADA) and the federal Fair Housing Act.

    The bill requires a landlord to waive any restrictions, fees or other charges assessed to tenants with pets. A person who intentionally misrepresents an animal as a service animal or service animal in training could be charged with a crime. A person commits this offense if all of these  elements are established: for the purpose of obtaining any of the rights or privileges set forth in state or federal law, the person intentionally misrepresents an animal in one’s possession as one’s service animal or service animal in training, or a person with a disability’s service animal or service animal in training whom the person is assisting by controlling; the person was previously given a written or verbal warning that it is illegal to intentionally misrepresent an animal as a service animal or a service animal in training; and the person knows that the animal in question is not a service animal or a service animal in training. The offense is a simple misdemeanor, punishable by confinement for no more than 30 days, or a fine of at least $65 but no more than $625, or by both.

    The bill gives owners of real property immunity from liability for injury or damage caused by service animals and service animals in training if the owner believes in good faith that the animal is a service animal or a service animal in training and the person using the animal is a person with a disability, a person assisting a person with a disability by controlling a service animal or a service animal in training, or a person training a service animal in training; and the injury or damage is not caused by the owner’s negligence, recklessness or willful misconduct.
    [3/19: 49-0 (Vacant: Danielson)]

     

    HF 288 – Injured veterans grant parameters; professional licensure

    HF 288 is an Iowa Department of Public Defense recommendation. Currently, Iowans serving in the Iowa National Guard, Reserve or regular component of the U.S. Armed Forces who are deployed overseas and seriously or very seriously injured in the line of duty while in a combat zone or hazardous duty pay zone are eligible to apply for an Injured Veterans Grant. In recent years, the Department of Defense has categorized some areas as “Overseas Contingency Operations,” including Kuwait, Kosovo and Djibouti.

    The legislation modifies eligibility to allow those deployed in any region outside of the United States who are injured and evacuated to be eligible to apply for a grant while the injured veteran is hospitalized or receiving medical care or rehabilitation services authorized by the military. The Legislature established the program in 2007, retroactive to September 11, 2001. Grants are paid in increments of $2,500 up to a maximum of $10,000. Most receive $2,500 to help family in the first month when the service member is medically evacuated to a hospital. Additional money may be given for longer periods (30 days, 60 days and 90 days) of hospitalization, medical treatment and rehabilitation services by the military or Veterans Administration.

    The Iowa Department of Veterans Affairs, the Commission of Veterans Affairs and the National Guard will collaborate to study the sustainability of future funding for the Injured Veterans Grant Program. A written report is due to the Governor and Legislature by December 31, 2019.

    The proposal also establishes an expedited licensing process for spouses of active-duty members of the U.S. military who are stationed in Iowa. Licensing boards must establish provisional licensing procedures by January 1, 2020 to expedite licensing for anyone licensed in a similar profession or occupation in another state who is the spouse of an active-duty member of the U.S. military. The secretaries of the U.S. Navy, Air Force and Army are asking governors and legislators in all states to adopt such guidelines.
    [3/21: 46-0 (Absent: Bisignano, Celsi, R. Taylor; Vacant: Danielson)] 

     

    HF 289 – Distribution of gambling receipts for charitable purposes

    HF 289 requires a qualified sponsoring organization licensed to operate gambling games in Iowa under Chapter 99F — Gambling Games Regulation — to provide that any organization exempt from federal income taxes under section 501(c)(19) of the Internal Revenue Code is eligible for a distribution of adjusted gross receipts for educational, civic, public, charitable, patriotic or religious uses.
    [4/24: 50-0]

     

    HF 689 – Removal of county veterans service officers

    HF 689 clarifies provisions regarding the removal from office of a county veterans service officer (VSO). Currently, each county commission of veteran affairs must employ an executive director or administrator, recognized as the county’s VSO. The bill provides that an executive director or administrator can only be removed from office by the county commission of veteran affairs subject to the approval of the county board of supervisors. This mirrors the appointment process to this position.
    [4/24: 50-0]

  • Labor & Business Relations Committee – All-Bill Summary 2019

    SF 304 – Prohibiting licensing sanctions for student loan default

    SF 567- Professional licensing sanctions for felons

    HF 650- Immunity from civil liability for negligent hiring

     

    SF 304 – Prohibiting licensing sanctions for student loan default

    SF 304 requires the state’s licensing boards to adopt rules that prohibit suspension or revocation of a professional license because the licensee is in default or delinquent on repayment of postsecondary education loans, solely on the basis of such default or delinquency.

    The bill repeals Iowa Code sections relating to the process by which the Iowa College Student Aid Commission can initiate action to deny, revoke or suspend a license to someone who has defaulted. According to Iowa Student Aid Commission, they do not use this process now.
    [3/11: 46-0 (Absent: Elder, J. Smith, Zaun; Vacant: Danielson)]

     

    SF 567– Professional licensing sanctions for felons

    SF 567 relates to professional licensing and the ability for licensing boards to deny, revoke or suspend a license because of a felony conviction. The bill allows the boards to grant an exception for a person who would otherwise be denied a license because of conviction for a felony, provided there is an extenuating circumstance that justifies the exemption. The bill also strikes current Code sections allowing the boards to revoke, deny or suspend a license for conviction of any felony.

    The bill forbids the Iowa Department of Corrections to enroll an inmate in an apprenticeship program if the inmate is unable to obtain a necessary license to practice due to a felony conviction that is violent or sexual in nature. Prior to enrolling an inmate in an apprenticeship program, the Department of Corrections must receive written confirmation from the appropriate licensing board that the inmate could receive the necessary license to practice the profession if it appears that inmate may be disqualified from receiving such a license.

    The bill provides specific guidance to the Electrical Examining Board and the Plumbing and Mechanical Systems Board when the boards consider exceptions for a person who would otherwise be denied a license due to a felony. The boards must consider the nature and seriousness of the offense, mitigating circumstances surrounding the commission of the offense, the age of the person at that time, letters of reference and other relevant evidence of rehabilitation. Also, the language provides a list of specific crimes that will be grounds for denial, revocation or suspension of the license.

    These felonies must be grounds for denial, revocation or suspension of a license:

    • Conviction of a felony in Iowa that is sexual abuse in violation of 709.4.
    • Sexually violent felony offense as defined in section 229A.2.
    • Felony dependent adult abuse in violation of section 235B.20.
    • Forcible felony as defined in section 702.11.
    • Domestic abuse felony assault in violation of section 708.2A.

    A conviction of a felony in violation of federal law or in violation of the law of another state will be given the same effect as it would if such conviction had been under Iowa law. Conviction for any other felony will not be grounds for denial, revocation or suspension. A person holding a license prior to July 1, 2019, does not need to obtain an exception to maintain their license.

    The bill alters license requirements for barbering by allowing an individual who completes a barbering apprenticeship training program (registered by the Department of Labor) at the Department of Corrections to take the examination for a license to practice barbering.
    [4/17: 50-0]

     

    HF 650– Immunity from civil liability for negligent hiring

    HF 650 prohibits a cause of action for damages against a private employer, general contractor or premises owner for negligently hiring an employee, agent or independent contractor who has been convicted of a public offense. However, a cause of action for negligent hiring based on evidence that the employee, agent or independent contractor has been convicted of a public offense is not prohibited if all of these criteria are met:

    • The employer knew or should have known of the conviction.
    • The employee was convicted of any of these crimes:
    • A public offense committed while performing duties substantially similar to those to be performed, taking into consideration these factors:
        • Nature and seriousness of the public offense.
        • Extent and nature of employee’s past criminal activity.
        • Age of employee when offense was committed.
        • Amount of time that has elapsed since the last criminal activity.
    • A sexually violent offense
    • Dependent adult abuse
    • First-degree murder
    • Second-degree murder
    • Felony assault
    • Domestic abuse assault
    • First-degree kidnapping
    • Robbery first degree
    • Manufacture or possession of a controlled substance on school grounds and other public properties.
    • A felony offense involving the use of a dangerous weapon.

    The protections provided in this bill will not apply in a suit concerning the misuse of funds or property of a person other than the employer by an employee if, on the date the employee was hired, the employee had been convicted of a public offense that included fraud or the misuse of funds or property as an element of the public offense, and it was foreseeable that the position for which the employee, agent or independent contractor was hired would involve discharging a fiduciary responsibility in the management of funds or property.
    [4/8: 50-0]

  • Judiciary Committee – All-Bill Summary 2018

    SF 385 – Uniform Athlete Agents Act
    SF 2098 – Updating probate code for electronic document management system
    SF 2099 – Administration of small estates
    SF 2135 – Comparative fault for not wearing seatbelt
    SF 2139 – Waiver of spousal share in power of attorney
    SF 2165 – Crime victim compensation
    SF 2175 – Real estate partitions
    SF 2229 – Mechanics’ liens and collateral
    SF 2230 – Kidnapping of those under 18
    SF 2235 – Sabotage of critical infrastructure
    SF 2241 – Parole violations
    SF 2303 – Deferred inheritance taxes
    SF 2314 – Business corporations fixes
    SF 2321 – Stun guns do not require a permit to carry
    SF 2378 – Terms for members of boards of directors (Casey’s)
    SJR 2007 – No license suspension for drug offenses (Does not require Governor’s signature)
    HF 2125 – Distribution of assets by affidavit
    HF 2199 – Illegal use of a scanning device or encoding machine
    HF 2232 – Mortgage releases
    HF 2233 – Mechanics’ liens and claims on public-improvement project retainage
    HF 2238 – Insurance fraud
    HF 2255 – Contraband in Community Based Corrections facilities
    HF 2300 – Mental health professionals creating business entities
    HF 2318 – Redemption of parcels sold at tax sales
    HF 2338 – Temporary restricted licenses for OWI offenders
    HF 2342 – Property and weapons seized by DNR as a public nuisance
    HF 2343 – Rules, guidance and standards requiring clear authority
    HF 2348 – Non-substantive Code editor’s bill
    HF 2381 – Disposition of a child found to have committed a delinquent act
    HF 2392 – Mechanical eavesdropping
    HF 2402 – Agent’s termination under a power of attorney
    HF 2404 – Restitution paid to an estate or heirs of a crime victim
    HF 2443 – Confidentiality of juvenile records
    HF 2457 – Substantive Code editor’s bill
    HJR 2009 – Right to bear arms constitutional amendment (Does not require Governor’s signature)

     

    SF 385 makes changes to Iowa’s Uniform Athlete Agents Act. The original Act was passed to ensure that athlete agents adhere to certain requirements when recruiting athletes. The bill:

    • Expands the definition of “athlete agent” to include financial advisors, brokers and business services people who may contact student athletes.
    • Requires athlete agents to register with the Secretary of State, who is given authority to write rules to implement the Chapter.
    • Expands disclosure requirements for agents so that students and their parents know exactly who they are dealing with.
    • Strengthens the requirement that agents give notice of their involvement to education institutions.
    • Increases penalties for an agent who violates the law.
    • Enhances remedies available to the student-athlete and education institutions aggrieved by agent non-compliance.
      [3/3/17: 50-0]

     

    SF 2098 updates the probate Code sections to reflect current practice using the electronic document management system. The bill:

    • Removes a reference to clerks keeping a “book” in which to record probate proceedings and removes a reference to a requirement for a written notation in a hard copy record of real estate transactions in probate. These records will be kept electronically.
    • Removes the ability of the clerks of court relating to probate matters:
    • To appoint personal representatives, guardians and conservators for minors, determine the amount of a bond, or waive or approve of bonds provided by fiduciaries in probate.
    • To admit wills to probate when not contested and make orders related to them, including orders for the issuance of commissions to take depositions.
    • To make orders in relation to the personal effects of a decedent where no objection is filed.
    • To approve petitions and reports in respect to the sale, mortgage, pledge, lease or exchange of property when notice has been waived by all persons.
    • Repeals Code section 633.72, which relates to notice to nonresident fiduciaries.
      [2/19: 49-0 (Absent: Sinclair)]

     

    SF 2099 increases the size of what qualifies as a small estate for probate purposes from $100,000 to $200,000. If a personal representative files to convert the estate administration to or from a small estate based on assets, a court order is not required to make the change. The clerk will make the conversion when a personal representative’s statement is filed. The bill makes changes to the requirements for closing the estate by sworn statement, specifies what is necessary to close a small estate, and clarifies that clerks of court must close a small estate without a court order upon proof that the closing statement has been served and assets distributed. In the alternative, the clerk will close the small estate 60 days after filing of the closing statement and proof of service. The bill adds a definition of “probate assets” to the probate code. “Probate assets” means a decedent’s property subject to administration by a personal representative and requires attorneys for a small estate to clearly specify which assets are probate assets and their gross value. The section of the bill increasing the size of an estate that qualifies as a small estate is effective July 1, 2020. The remaining sections of the bill take effect July 1, 2018.
    [3/28: 46-0 (Absent: Bertrand, Lykam, Zumbach; 1 vacancy)]

     

    SF 2135 relates to the failure to wear a seatbelt that results in injuries suffered in a motor vehicle accident. Previously, if an individual is injured in a motor vehicle accident caused by another person, but it can be shown that the individual’s failure to wear a seatbelt or safety harness contributed to their injuries, the damages awarded to the injured individual in a civil suit may be reduced by up to 5 percent of any award. The bill increases the amount by which damages can be reduced up to 25 percent. There must be substantial evidence that failure to wear the seatbelt or safety harness contributed to the injury.
    [2/20: 48-0 (Absent: Behn, Zumbach)]

     

    SF 2139 comes from the Iowa State Bar Association and gives specific additional powers relating to real property if an agent (person given power over another’s financial matters) in a financial power of attorney is given general authority over a person’s interests in real property. If the power of attorney does not specifically restrict an agent’s power, the agent could relinquish any and all of the principal’s rights of dower, homestead and elective share. Dower is a spouse’s right to a portion of their deceased spouse’s real property. An elective share is the property that a surviving spouse can choose to receive contrary to a deceased spouse’s will. The bill is effective upon enactment.
    [2/19: 49-0 (Absent: Sinclair)]

     

    SF 2165 relates to the Victim Compensation Fund. Payments are made to victims of certain crimes for expenses incurred because of the crime. The fund is made up of criminal surcharge monies and other sources and has no impact on the General Fund. The bill:

    • Adds a definition of “survivor of a deceased victim” so that there is a consistent definition throughout the Code for providing compensation.
    • Adds the ability to receive compensation for loss of income incurred by a survivor of a deceased victim for a funeral, memorial or burial service.
    • Allows compensation for cleaning a crime scene, regardless of where the crime occurs. In the past, compensation was limited to cleaning a residence.
    • Provides for compensation for dependent care expenses when a survivor attends a funeral, burial or memorial service.
    • Provides for replacing or installing new locks and other residential security items.
    • Provides for additional compensation to a victim, a secondary victim or survivor for charges, expenses or loss of income if the expenses were not authorized at the time of the initial application for benefits.
    • Says a “new event” (e.g., a retrial, a change in offender custody status or a new appellate court decision) will allow for additional compensation.
      [3/6: 50-0]

     

    SF 2175 is a Bar Association bill. It provides the courts with procedures for partitioning property when co-tenants disagree on the disposition of property owned by the co-tenants. The bill sets procedures for partition by sale and for partition in kind (i.e., dividing the property between all owners rather than selling it and dividing the proceeds). All partition procedures will be placed in Code Chapter 651. In the past, most procedures for partition were included in court rules. There are two distinct divisions in the bill: one provides procedures for all partitions; the other includes special provisions that apply only where real estate is heirs’ property as defined in the bill. To be considered heirs’ property, at least 20 percent must be owned by relatives. Per court rule, the courts have favored partition of property by sale; however, this bill provides a procedure when the property is heirs’ property and some of the heirs request a partition in kind, wanting to keep the property in the family.
    [2/20: 48-0 (Absent: Behn, Zumbach)]

     

    SF 2229 deletes archaic Code Section 572.3, which prohibits obtaining a mechanic’s lien when a person takes collateral security for performing  labor or supplying materials.
    [2/21: 49-1 (No: Taylor; Absent: D. Johnson)]

     

    SF 2230 adds kidnapping someone under the age of 18 to the definition of second-degree kidnapping. Previously, second-degree kidnapping occurred when the purpose was to hold the victim for ransom or when the kidnapper was armed with a dangerous weapon. Second-degree kidnapping is a “B” felony, punishable by up to 25 years in prison. If a judge or jury determines a second-degree kidnapping was sexually motivated, the kidnapper must register as a sex offender.
    [2/27: 50-0]

     

    SF 2235 is the “sabotage of critical infrastructure” bill, which creates a new crime relating to damaging critical infrastructure. The penalty is a “B” felony punishable by up to 25 years in prison and a fine of between $85,000 and $100,000. “Critical infrastructure sabotage” is defined as “an unauthorized and overt act intended to cause and having the means to cause, and in substantial furtherance of causing, a substantial and widespread interruption or impairment of a fundamental service rendered by the critical infrastructure.” However, it does not include an accidental interruption or impairment of service caused by a person performing their work or caused by lawful activity. In addition, critical infrastructure sabotage does not include any condition or activity related to producing farm products as defined in section 554.9102, including, but not limited to, discharging agricultural storm water; constructing or using soil or water-quality conservation practices or structures; preparing agricultural land and raising, harvesting, drying or storing agricultural crops; applying fertilizer as defined in section 200.3, pesticides as defined in section 206.2 or manure  as defined in section 459.102; installing and using  agricultural drainage tile and systems; constructing, operating or managing an animal feeding operation as defined in section 459.102; and caring for, feeding or watering livestock.

    These  categories are considered critical infrastructure:

    • Electrical infrastructure
    • Gas, oil, petroleum, refined petroleum products or chemical critical infrastructure
    • Telecommunications or broadband critical infrastructure
    • Wastewater critical infrastructure
    • Water supply critical infrastructure

    The bill limits infrastructure in these categories to infrastructure used for generating, transmission, delivery, transportation, collection or storage systems. In addition, the bill includes in the definition any “land, building, conveyance, or other temporary or permanent structure whether publicly or privately owned, that contains, houses, supports, or is appurtenant to any critical infrastructure.”
    [4/3: 35-13 (Yes: Republicans, Allen, Bowman, Danielson, Hart, Horn, Kinney, Mathis Ragan; Absent: Dawson; 1 vacancy)]

     

    SF 2241 allows a parole officer to make a complaint to any magistrate in the judicial district where a parolee is being supervised if the parole officer believes a parolee has violated parole. If there is probable cause to believe the parolee has violated parole, the magistrate will issue a warrant for their arrest. In addition, the bill removes Code language that allows an individual to waive their parole-revocation hearing.
    [3/12: 49-0 (1 vacancy)]

     

    SF 2303 relates to deferred inheritance taxes when a person is given a life estate in a decedent’s property. At times when people die, they leave what is called a “life estate” to a survivor who may use the decedent’s property while the survivor is alive. An example would be the use of a home until the survivor’s death or for a number of years. After the survivor dies, the property is inherited by another person that the decedent named, generally in the decedent’s will. As a result, inheritance taxes are deferred until the death of the survivor with the life estate. This bill provides several methods for securing the inheritance taxes upon the death of the survivor with a life estate. According to the Bar Association, bonds to secure payment of the inheritance taxes are difficult to obtain. This bill is intended to help solve that issue. It adds that inheritance tax payment can be secured through an irrevocable payable-on-death or transfer-on-death account, payable to the Department of Revenue and approved by the Department of Revenue; or through an escrow agreement with the Department of Revenue with a private attorney acting as escrow agent holding the funds in the attorney’s trust account.
    [3/5: 49-0 (Absent: Hart)]

     

    SF 2314 makes technical changes to several Code Chapters relating to corporations. Some references were inadvertently omitted from previous legislation relating to corporate entities.

    • The changes to Chapter 9H relating to corporate farming ensure that all prior and current versions of Iowa’s Nonprofit Corporations Act are clearly referenced in the definition of “nonprofit corporation” relating to nonprofit corporations acquiring agricultural land.
    • The bill provides that in the case of a corporation organized under Code Chapter 491 – Corporations for Pecuniary Profit — a director’s “conflict of interest transaction” is subject to the same requirements as directors of a corporation organized under Code Chapter 490 – Business Corporations. It allows a director of a corporation organized under Chapter 491 to take advantage of a safe harbor provision known as the “business opportunity” exception, which applies to a director of a corporation organized under Chapter 490.
    • The bill also makes changes to Chapter 504, Iowa’s Revised Nonprofit Corporation Act, relating to standards of liability for directors.
      [3/5: 50-0]

     

    SF 2321 removes the requirement that a person obtain a permit to carry a dangerous weapon if the weapon in question is a stun gun. A person carrying a Taser must still obtain a permit because  Tasers and stun guns are different weapons. Stun guns will continue to be considered dangerous weapons if used in the commission of a crime. A person under 18 is prohibited from carrying a stun gun.
    [3/12: 49-0 (1 vacancy)]

     

    SF 2378 removes the requirement for staggered terms for members of public corporation boards of directors.
    [2/27: 50-0]

     

    SJR 2007 establishes that the Legislature does not want to enforce federal law requiring drivers’ license suspensions for drug offenses because the law is an obstacle to mobility, employability and rehabilitation.

    To obtain federal highway funding, Iowa must certify every year that it is complying with federal law requiring drivers’ license suspensions for drug offenses that have no relationship to driving. However, if a legislature passes a resolution indicating the state does not want to comply with the federal requirement and if the Governor submits a written certification to the U.S. Secretary of Transportation that the governor is also opposed to enforcing the requirement, the state can continue to receive its federal funding. Iowa has 5,000 license revocations for drug offenses each year. More than 350 people are arrested and charged with driving while suspended/revoked each year after having their license suspended or revoked for a drug offense.
    [2/27: 50-0]

     

    HF 2125 relates to distribution of property by affidavit. Under Iowa law, if a person dies owning $25,000 or less in personal property to be distributed to heirs, the property can be distributed through an affidavit, thus avoiding probate. This bill increases the amount of property that can be distributed by affidavit up to $50,000. In addition, the bill adds three requirements that must be included in the affidavit: (1) That no money is due Medicaid or, if due, Medicaid is to be paid; (2) That no inheritance taxes are due or, if due, will be paid; and (3) That creditors will be paid to the extent of funds received. Distribution by affidavit does not apply when real property is involved.
    [3/19: 47-0 (Absent: Sinclair, Zumbach; 1 vacancy)]

     

    HF 2199 updates criminal law relating to unauthorized use of scanning devices or encoding machines to obtain information encoded on a payment card. The update is intended to keep abreast of technology used to steal information from payment cards. Under the bill, if someone directly or indirectly uses a scanning device to access, read, obtain, memorize or store information encoded on a payment card without authorization, it is a “D” felony. In addition, it is a “D” felony if someone directly or indirectly uses an encoding machine to place information from a payment card onto a different payment card without authorization.

    It will be an aggravated misdemeanor if a person possesses a scanning device with the intent to use it to obtain information encoded on a payment card without authorization, or possesses a scanning device with knowledge that a person other than an authorized user intends to use the scanning device to obtain information encoded on a payment card without authorization.
    [3/1: 49-0 (Absent: Bertrand)]

     

    HF 2232 provides one procedure for releasing and satisfying a mortgage in Chapter 655 – Satisfaction of Mortgages, removing Code language in Chapter 535B that provides another remedy to secure a release and satisfaction of a mortgage. Highlights include:

    • Clarifying that a mortgagee must acknowledge satisfaction in writing no more than 30 days after the mortgage is paid off.
    • If a revolving line of credit is secured through the mortgage, the mortgagee only must file a release and satisfaction upon payment in full, as long as the mortgagor makes a written request to the mortgagee that the mortgage be released.
    • If a mortgagee fails to discharge within 30 days of the request, the mortgagee is liable for all actual damages, plus reasonable attorney fees. The mortgagee is subject to a $500 penalty.
    • Adding a new Code section requested by the Bankers Association, which limits liability of a mortgagee if the mortgagee has reasonable procedures to achieve compliance with the requirements of filing mortgage releases; the mortgagee complied with the procedures in good faith; and the mortgagee was unable to comply with its obligations because of circumstances beyond its control.
      [3/21: 49-0 (1 vacancy)]

     

    HF 2233 has two key parts. One relates to amending liens filed by subcontractors for work done on private construction projects. The other relates to retention funds required in public construction projects to be reserved until the end of the project to be available to subcontractors who have not been paid for their work.

    Under the bill, a lien statement may be amended by the claimant without court involvement to decrease the amount demanded in the lien. This can be done through the mechanics’ notice and lien registry. A lien statement may only be amended by leave of court to further justice, and no lien statement can be amended to increase the amount demanded.

    The bill also makes significant changes to Chapter 573 (labor and materials on public improvements) regarding who is entitled to make claims against a retainage and the requirements to make a claim. The bill requires a furnisher of labor, materials, service or transportation to a subcontractor on a public improvement project to provide a one-time notice in writing within 30 days of starting work or first supplying materials to the principal contractor, along with detailed contact information for the furnisher and subcontractor. However, the 30-day notice requirement will not apply to subcontractors working on highway, bridge or culvert projects. Any person making a claim against the retainage must provide a certified statement that the principal contractor received the required notice. Previously, there was no 30-day notice requirement on public improvement projects, and those who supplied labor, materials, service or transportation that have not been paid could make a claim against the retainage at the end of the project. Code section 26.13 (early release of retained funds in public construction projects) is deleted. The language is placed in Chapter 573 (labor and materials in public construction projects).
    [3/27: 26-21, party line (No: Democrats, D. Johnson; Absent: Bertrand, Zumbach; 1 vacancy)]

     

    HF 2238 specifies that an insurer can be a victim for purposes of restitution if insurance fraud has been committed against the insurer. The bill clarifies that when an insurer pays a victim’s insurance claim, the insurer is not the victim and has no right of subrogation.
    [3/14: 48-0 (Absent: Bertrand; 1 vacancy)]

     

    HF 2255 makes it a crime to introduce contraband into or onto a community based correctional facility; convey contraband to anyone confined in a community based correctional facility; or knowingly make, obtain or possess contraband while confined in a community based correctional facility. Contraband includes, but is not limited to:

    • A controlled substance or a simulated or counterfeit controlled substance, hypodermic syringe or intoxicating beverage.
    • A dangerous weapon, offensive weapon, pneumatic gun, stun gun, firearm ammunition, knife or other cutting device, explosive or incendiary material, instrument, device or other material fashioned to be capable of inflicting death or injury.
    • Rope, ladder components, key or key pattern, metal file, instrument, device, or other material designed or intended to facilitate escape of an inmate.

    Failure to report a known violation or attempted violation to a community based correctional officer or official is an aggravated misdemeanor. Possession of contraband that is a controlled substance or materials intended to facilitate escape is a “D” felony. Possession of contraband, such as a dangerous weapon, offensive weapon, stun gun or knife, is a “C” felony.
    [3/13: 49-0 (1 vacancy)]

     

    HF 2300 adds licensed mental health counselors and licensed social workers to the list of professionals who can form a professional limited liability company. In addition, the bill specifies that marital and family therapy counselors, mental health counselors, and psychologists and licensed social workers will be considered professionals that can lawfully practice in partnership and form a professional limited liability company. The bill also adds marital and family therapy, mental health counseling and licensed social work to the list of professions permitted to form a professional corporation, and allows marital and family therapy counselors, mental health counselors, and psychologists and licensed social workers to practice in combination as licensed individuals or as a partnership of licensed individuals in a professional corporation.
    [3/26: 47-0 (Absent: Bertrand, Zumbach; 1 vacancy)]

     

    HF 2318 creates a process for minors and those with a legal disability to redeem real property held in their name after it has been sold at a tax sale and the county treasurer has delivered the treasurer’s deed. Under Code section 447.7, a minor or person with a legal disability may redeem property sold at a tax sale at any time up until age 19 for minors or a year after the legal disability has expired. However, the Code section (447.8) that delineates how property sold at a tax sale is to be redeemed does not describe how minors or those with a legal disability who are the initial titleholders of the property are to redeem after the 90-day redemption period expires and the treasurer has issued the treasurer’s deed to the tax sale purchaser. This gap in the law has allowed some properties to remain with uncertain title for extended periods.
    [3/19: 47-0 (Absent: Sinclair, Zumbach; 1 vacancy)]

     

    HF 2338 allows persons subject to a hard suspension of driving privileges after operating a vehicle while intoxicated to apply for a temporary restricted license and avoid the hard suspension. To obtain a temporary restricted license, the applicant must install an ignition interlock device. In addition, the bill removes the limitations on driving that are imposed on those with temporary restricted licenses. Previously, a person with a temporary restricted license could only drive to and from home and specified places relating to employment, health care, education, substance abuse treatment, court-ordered community service, and parole and probation appointments. In addition, those with temporary restricted licenses who are participating in a sobriety and drug monitoring program (24/7) could drive to and from the drug monitoring appointments. Under the bill, first-time OWI offenders who test between .08 and .10 must install an ignition interlock device to obtain a temporary restricted license. Previously, they did not have to install an ignition interlock. The suspension of driving privileges for those with a commercial licenses or who drive school buses remains unchanged. Those who cause the death of another due to driving while intoxicated are still subject to a hard suspension of their driving privileges and cannot obtain a temporary restricted license for two years.
    [3/26: 47-0 (Absent: Bertrand, Zumbach; 1 vacancy)]

     

    HF 2342 prohibits the state from confiscating fish, furs, birds or animals, or mussels, clams or frogs seized because it was suspected that they were illegally possessed, taken, transported, etc., if the person suspected of and charged with illegal possession, etc., is not convicted. If there is no conviction, seized property must be returned within 30 days of a “not guilty” verdict, within 30 days of dismissal or within 30 days of the statute of limitations. However, no fish or wildlife can be returned if it is illegal to possess, including those taken, possessed or transported unlawfully.

    “Convicted” means a finding of guilt, payment of a scheduled fine, plea of guilty, deferred judgment, deferred or suspended sentence or delinquency adjudication, or when no charge is filed because the person agrees to provide information about another person’s criminal activity.

    In addition, the state may only condemn property seized as a public nuisance (e.g., property used to illegally capture, kill, etc., wildlife, such as illegally shooting a bald eagle with a gun) if the person from whom the property was seized is convicted. If there is no conviction, the property must be returned.

    Previously, if property seized as a public nuisance was condemned pursuant to Chapter 483A, proceeds from the sale of the property go to the Fish and Game Protection Fund.

    The Department of Natural Resources (DNR) will report to the Oversight Committees how much is deposited in the fund each year. In addition, the seizing public agency must adopt a policy for keeping detailed records on acquired property, the date it was acquired, how and when it was disposed, and financial records for property sold. Employees or family members of employees of the seizing agency cannot  purchase condemned property, including weapons. A purchaser at a sale of seized and confiscated property (held by the DNR) must sign a declaration that they are not an employee or a family member of an employee of the seizing agency.
    [4/16: 30-18 (Yes: Republicans, Bowman, Kinney, Taylor; Absent: Bertrand, Zumbach)]

     

    HF 2343 prohibits all state agencies from implementing or enforcing any standard, requirement or threshold unless it is clearly required or clearly permitted by statute, rule or federal law or regulation, or is required by a court ruling, a state or federal executive order or a state or federal directive that would result in the gain or loss of funding, or a federal waiver.
    [3/20: 46-3 (No: Hogg, Petersen, Taylor; 1 vacancy)]

     

    HF 2348 is the Non-Substantive Code Editor’s Bill, which makes minor, non-substantive and non-controversial changes to Iowa Code. The bill consists of 129 sections and includes 20 numerical updates, 26 terminology or name changes, 23 grammatical changes, five corrections of clerical errors, eight standardizations of Iowa Code and federal citations, and 84 updates to Code section style or format.
    [3/14: 48-0 (Absent: Bertrand; 1 vacancy)]

     

    HF 2381 relates to custody of juveniles who are sent to the State Training School for Boys in Eldora or another facility after committing a delinquent act. Previously, when a juvenile age 12 or above committed a forcible felony, a drug-related felony or a homicide, the court could transfer guardianship to the Iowa Department of Human Services for purposes of transferring the juvenile to the State Training School or another facility. The bill removes the court’s ability to transfer guardianship and inserts that the court may transfer custody of the juvenile to the Department of Human Services.
    [4/5: 46-0 (Absent: Bertrand, Bisignano, Zumbach; 1 vacancy)]

     

    HF 2392 relates to recording or intercepting communications. Previously, it was a serious misdemeanor to record or intercept a conversation without authority to do so. A person could only legally record or intercept a communication when the sender or recipient of a message or a person openly present and participating in or listening to a communication records the communication. In addition, the law allowed the use of any radio or television receiver to receive any communication transmitted by radio or wireless signal.

    HF 2392 creates another exception allowing people to legally record or intercept communications. This exception is “use of a monitoring device,” which will allow people to listen to, record or intercept a conversation or communication by electronic or mechanical means, if the electronic or mechanical device is “placed outside a person’s dwelling or other structure that is not in a shared hallway and is on real property owned or leased by the person.” These are seen as anti-theft and security devices, and the law specifies that the purpose of the monitoring device must be to detect or prevent criminal activity.

    In addition, the bill amends Section 808B.2 under the Interception of Communications Chapter to authorize the owner or lessee of real property to intercept an oral communication when a surveillance system is placed in or on the real property owned or leased by the person, and the system is installed with the knowledge and consent of all lawful owners or lessees of the real property, and the surveillance system is used to detect or prevent criminal activity in or on property owned or in an area accessible to the public in the immediate vicinity of the property.
    [3/20: 48-1 (No: McCoy; 1 vacancy)]

     

    HF 2402 addresses instances when a person who has power of attorney regarding financial decision-making for another commits or is accused of committing dependent adult abuse of the person whose finances they control.

    In a power of attorney governed by Chapter 633B, the person with authority to make financial decisions for another is called the agent. The person who has ceded their decision-making authority is the principal.

    Under the legislation, an agent’s authority under a power of attorney automatically terminates if the agent commits dependent adult abuse of the principal per a dependent adult abuse report, or the agent is convicted of dependent adult abuse of the principal. Those who become aware of pending criminal charges of dependent adult abuse against an agent or become aware of an investigation of dependent adult abuse relating to the agent can file a petition with the court for review of the agent’s conduct.

    The court can suspend an agent’s authority and appoint a guardian ad litem, who must be a practicing attorney, to represent the principal when someone petitions the court pursuant to pending criminal charges of dependent adult abuse or there is an investigation of potential dependent adult abuse.
    [3/27: 47-0 (Absent: Bertrand, Zumbach; 1 vacancy)]

     

    HF 2404 relates to restitution under criminal law for a felony that caused the death of another person. Under Code section 910.3B, the offender must pay $150,000 to the victim’s heirs or the victim’s estate. This bill ensures any restitution required under 910.3B will not be reduced by a third-party payment, including an insurance payment, unless the offender is covered by the insurance.
    [4/3: 48-0 (Absent: Dawson; 1 vacancy)]

     

    HF 2443 relates to the delinquency jurisdiction of juvenile court and the confidentiality and disclosure of certain juvenile court records. The bill:

    • Expands the definition of a delinquent act to include trespass violations.
    • Provides that a hearing for a child alleged to have committed a delinquent act must be held within two working days of the child’s admission to a shelter care facility and within one working day of admission to a detention facility. Previously, the law required that hearings be held within 48 hours and 24 hours respectively.
    • Creates a new Code section requiring official juvenile court records, except those alleging delinquency, to be confidential and not accessible as public records. However, such confidential records must be disclosed without a court order to judges and professional court staff, the child and the child’s counsel, the child’s parent, guardian ad litem and members of a reviewing child advocacy board or a local citizen foster care review board, county attorney or designees, and other entities and individuals whose duties require access to the information.
    • Expands the list of those who may receive juvenile court records online or in an electronic customized data report prior to delinquency adjudication when the records pertain to an act that would be a forcible felony if committed by an adult. This includes those operating a juvenile diversion program. Those operating a juvenile diversion program may also receive police reports and related information that assist in the operation of the juvenile detention program.
    • Provides that rules for maintaining or destroying sealed juvenile records will be prescribed by the state court administrator.
    • Requires the district court to dismiss charges and the clerk to seal any records if the charges were erroneously filed in district court, and juvenile court has exclusive jurisdiction.
    • Requires records for cases that were initially filed in district court but transferred to juvenile court be sealed after they have been forwarded to the juvenile court.
    • Provides that, without an order making juvenile court records public, the Department of Public Safety must not release the records.
      [4/16: 48-0 (Absent: Bertrand, Zumbach)]

     

    HF 2457 is the substantive Code Editor’s Bill, which adjusts language reflecting current practices or changes made through past legislation; corrects manifest errors; clarifies ambiguities; eliminates conflicts; and deletes obsolete or temporary provisions.
    [3/6: 50-0]

     

    HJR 2009 proposes an amendment to the Iowa Constitution conferring the right of the people to keep and bear arms. In addition, the resolution states that “(t)he sovereign state of Iowa affirms and recognizes this right to be a fundamental individual right. Any and all restrictions of this right shall be subject to strict scrutiny.” Strict scrutiny is a form of judicial review that courts use to determine the constitutionality of certain laws. To pass strict scrutiny, the legislature must have passed the law to further a “compelling governmental interest,” and must have narrowly tailored the law to achieve that interest.
    [3/21: 34-15 (Yes: Republicans, Allen, Bowman, Horn, D. Johnson, Kinney, Taylor; 1 vacancy)]