Bill Text: IA HF2465 | 2011-2012 | 84th General Assembly | Enrolled

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Bill Title: A bill for an act relating to state and local finances by making and adjusting appropriations, providing for funding of property tax credits and reimbursements and for other matters pertaining to taxation, providing for fees and criminal penalties, providing for legal responsibilities, providing for certain insurance and employee benefits, and providing for properly related matters, and including effective date and retroactive and other applicability provisions. Item vetoed. Various effective dates, see bill.

Spectrum: Committee Bill

Status: (Passed) 2012-05-25 - Item vetoed, signed by Governor H.J. 967. [HF2465 Detail]

Download: Iowa-2011-HF2465-Enrolled.html

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House File 2465
AN ACT
RELATING TO STATE AND LOCAL FINANCES BY MAKING AND ADJUSTING
APPROPRIATIONS, PROVIDING FOR FUNDING OF PROPERTY TAX
CREDITS AND REIMBURSEMENTS AND FOR OTHER MATTERS PERTAINING
TO TAXATION, PROVIDING FOR FEES AND CRIMINAL PENALTIES,
PROVIDING FOR LEGAL RESPONSIBILITIES, PROVIDING FOR
CERTAIN INSURANCE AND EMPLOYEE BENEFITS, AND PROVIDING FOR
PROPERLY RELATED MATTERS, AND INCLUDING EFFECTIVE DATE AND
RETROACTIVE AND OTHER APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
STANDING APPROPRIATIONS AND RELATED MATTERS
Section 1. GENERAL ASSEMBLY. The appropriations made
pursuant to section 2.12 for the expenses of the general
assembly and the legislative agencies for the fiscal year
beginning July 1, 2012, and ending June 30, 2013, are reduced
by the following amount:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,672,924
Sec. 2. 2011 Iowa Acts, chapter 131, section 42, is amended
to read as follows:
SEC. 42. LIMITATION OF STANDING APPROPRIATIONS.
Notwithstanding the standing appropriations in the following
designated sections for the fiscal year beginning July 1, 2012,
and ending June 30, 2013, the amounts appropriated from the
general fund of the state pursuant to these sections for the
following designated purposes shall not exceed the following
amounts:
1. For operational support grants and community cultural

House File 2465, p. 2
grants under section 99F.11, subsection 3 , paragraph “d”,
subparagraph (1):
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 208,351
416,702
2. For regional tourism marketing under section 99F.11,
subsection 3 , paragraph “d”, subparagraph (2):
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 405,153
810,306
3. For the center for congenital and inherited disorders
central registry under section 144.13A, subsection 4 , paragraph
“a”:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,560
4. For primary and secondary child abuse prevention
programs under section 144.13A, subsection 4 , paragraph “a”:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,886
5. For programs for at-risk children under section 279.51 :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,364,446
10,728,891
The amount of any reduction in this subsection shall be
prorated among the programs specified in section 279.51,
subsection 1 , paragraphs “a”, “b”, and “c”.
6. For payment for nonpublic school transportation under
section 285.2 :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,060,931
If total approved claims for reimbursement for nonpublic
school pupil transportation exceed the amount appropriated in
accordance with this subsection, the department of education
shall prorate the amount of each approved claim.
7. For the enforcement of chapter 453D relating to tobacco
product manufacturers under section 453D.8 :
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,208
18,416
8. For reimbursement for the homestead property tax credit
under section 425.1:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 106,983,518
Sec. 3. Section 97A.11A, subsection 1, Code 2011, is amended
to read as follows:
1. Beginning with the fiscal year commencing July 1, 2012
2013 , and ending June 30 of the fiscal year during which the
board determines that the system’s funded ratio of assets
to liabilities is at least eighty-five percent, there is
appropriated from the general fund of the state for each fiscal
year to the retirement fund described in section 97A.8 , an

House File 2465, p. 3
amount equal to five million dollars.
DIVISION II
MISCELLANEOUS PROVISIONS AND APPROPRIATIONS
Sec. 4. WATERSHED IMPROVEMENT FUND —— APPROPRIATION. There
is appropriated from the rebuild Iowa infrastructure fund to
the department of agriculture and land stewardship for the
fiscal year beginning July 1, 2012, and ending June 30, 2013,
the following amount, or so much thereof as is necessary, to be
used for the purposes designated, notwithstanding section 8.57,
subsection 6, paragraph “c”:
For deposit in the watershed improvement fund created in
section 466A.2:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000
Sec. 5. TUITION GRANTS —— FOR-PROFIT ACCREDITED PRIVATE
INSTITUTIONS.
1. There is appropriated from the general fund of the state
to the college student aid commission for the fiscal year
beginning July 1, 2012, and ending June 30, 2013, the following
amount, or so much thereof as is necessary, to be used for the
purposes designated:
For tuition grants for students attending for-profit
accredited private institutions located in Iowa under 261.25,
subsection 2:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000
2. Moneys appropriated in this section shall supplement and
not supplant moneys appropriated in section 261.25, subsection
2, for the fiscal year beginning July 1, 2012, and ending June
30, 2013.
Sec. 6. IOWA READING RESEARCH CENTER. There is appropriated
from the general fund of the state to the department of
education for the fiscal year beginning July 1, 2012, and
ending June 30, 2013, the following amount, or so much thereof
as is necessary, to be used for the purposes designated:
For establishing an Iowa reading research center pursuant to
2012 Iowa Acts, Senate File 2284, if enacted:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000
Sec. 7. JOINT STATE-FEDERAL MORTGAGE SERVICING SETTLEMENT
MONEYS —— APPROPRIATIONS.
1. A mortgage servicing settlement fund is established,
separate and apart from all other public moneys or funds of
the state, under the control of the department of justice.
The department of justice shall deposit moneys received
by the department from the joint state-federal mortgage

House File 2465, p. 4
servicing settlement into the fund. The department of
justice is authorized to make expenditures of moneys in the
fund consistent with the terms of the consent decree signed
in federal court on April 5, 2012. Any unencumbered or
unobligated moneys remaining in the fund on June 30, 2015,
shall be transferred to the general fund of the state.
2. A banking division mortgage servicing settlement fund is
established, separate and apart from all other public moneys
or funds of the state, under the control of the division of
banking of the department of commerce. The banking division
shall deposit moneys received by the division from the joint
state-federal mortgage servicing settlement into the fund.
Moneys deposited in the fund are appropriated to the banking
division to be used as provided in a financial plan developed
by the superintendent of banking and approved by the department
of management to support state financial regulation, including
oversight of mortgage lending and mortgage servicing, real
estate and real estate appraisal, state chartered banks,
and other financial services regulated by the division of
banking. Moneys in the fund may also be used to support
financial literacy efforts. The financial plan may be updated
periodically as provided by the superintendent and approved by
the department of management. Notwithstanding section 8.33,
moneys in the fund that remain unencumbered or unobligated at
the close of a fiscal year shall not revert but shall remain
available for expenditure for the purposes designated until
the close of the fiscal year that begins July 1, 2014. Any
unencumbered or unobligated moneys remaining in the fund on
June 30, 2015, shall be transferred to the general fund of the
state.
3. There is appropriated from the mortgage servicing
settlement fund to the department of management for the fiscal
year beginning July 1, 2012, and ending June 30, 2013, the
following amount, or so much thereof as is necessary, to be
used for the purposes designated:
For deposit in the rebuild Iowa infrastructure fund:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000
4. a. The department of justice shall submit a report to
the general assembly detailing the expenditure of moneys from
the mortgage servicing settlement fund by the department of
justice for the previous calendar year and how the expenditures
related to the implementation, monitoring, or enforcement
of the settlement and how expenditures in the current and

House File 2465, p. 5
succeeding calendar year will be used for implementation,
monitoring, or enforcement of the settlement. The initial
report shall be submitted on or before January 15, 2013.
b. The division of banking shall submit a report to the
general assembly detailing the expenditure of moneys from the
banking division mortgage servicing settlement fund by the
division of banking for the previous calendar year and how
the expenditures related to the implementation, monitoring,
or enforcement of the settlement and how expenditures in
the current and succeeding calendar year will be used for
implementation, monitoring, or enforcement of the settlement.
The initial report shall be submitted on or before January 15,
2013.
Sec. 8. DEPARTMENT OF PUBLIC HEALTH —— IOWA YOUTH SUICIDE
PREVENTION PROGRAM. There is appropriated from the general
fund of the state to the department of public health for the
fiscal year beginning July 1, 2012, and ending June 30, 2013,
the following amount, or so much thereof as is necessary, to be
used for the purposes designated:
To contract for a program to develop an Iowa youth suicide
prevention program:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
1. The department shall establish a request for proposals
process which shall be based upon specifications established
under a suicide prevention plan for youth who are targets
of bullying, which was developed in partnership with the
department during the 2011-2012 fiscal year and shall
include but is not limited to an antibullying internet site,
internet-based communications including texting capabilities,
and a telephone hotline.
2. The department shall submit to the general assembly
a progress report on or before January 15, 2013, providing a
detailed analysis of the program, its budgetary requirements,
and the department’s findings and recommendations for
continuation of the program.
Sec. 9. PLUMBERS —— LICENSE EXTENSIONS. Until January 1,
2013, the plumbing and mechanical systems board shall grant a
one-time renewal of an expired license if the person holding
the expired license demonstrates successful passage of a
municipal or block examination. For any licensee receiving a
renewal under this section, the board shall clearly state in
any correspondence for succeeding license renewals that the
provisions of Code section 105.20 shall apply.

House File 2465, p. 6
Sec. 10. 2007 Iowa Acts, chapter 219, section 2, subsection
2, paragraph a, as enacted by 2011 Iowa Acts, chapter 133,
section 32, is amended to read as follows:
a. Notwithstanding section 8.33 , moneys appropriated
in section 1, subsection 1, paragraphs “a” and “f” of this
division of this Act that remain unencumbered or unobligated at
the close of the fiscal year for which they were appropriated
shall not revert but shall remain available for the purposes
designated until the close of the fiscal year that begins July
1, 2011 2012 , or until the project for which the appropriation
was made is completed, whichever is earlier.
Sec. 11. 2010 Iowa Acts, chapter 1193, section 29,
subsection 2, as enacted by 2011 Iowa Acts, chapter 127,
section 54, is amended to read as follows:
2. Notwithstanding section 8.33 , moneys appropriated in
this section that remain unencumbered or unobligated at the
close of the fiscal year ending June 30, 2011, shall not revert
but shall remain available for expenditure for the purposes
designated until the close of the fiscal year ending June 30,
2012 2013 .
Sec. 12. 2011 Iowa Acts, chapter 127, section 72, subsection
4, paragraph b, unnumbered paragraph 1, as amended by 2012 Iowa
Acts, Senate File 2313, section 13, if enacted, is amended to
read as follows:
The department shall, in coordination with the health
facilities division, make the following information available
to the public by December 31, 2012, as part of the department’s
development efforts to revise the department’s internet
website:
Sec. 13. 2012 Iowa Acts, House File 675, section 28,
subsection 2, is amended to read as follows:
2. The notice provisions contained in this Act relating to
residential construction apply only to material furnished or
labor performed after the effective date of this Act.
Sec. 14. 2012 Iowa Acts, Senate File 2289, as enacted, is
amended by adding the following new section:
SEC. ___. EFFECTIVE UPON ENACTMENT. This Act, being deemed
of immediate importance, takes effect upon enactment.
Sec. 15. NEW SECTION . 15E.71 Executive council action.
Notwithstanding section 7D.29, subsection 1, the executive
council in full consultation with the attorney general,
and with the agreement of the attorney general, shall take
any action deemed necessary to protect the interests of the

House File 2465, p. 7
state with respect to any certificates, tax credits, entities
created, or action taken in relation to this division. Such
actions may include but are not limited to initiation of legal
action, commencement of special investigations, institution
of special audits of any involved entity, or establishment of
receiverships. If such action is taken, the council may incur
the necessary expense to perform such a duty or cause such a
duty to be performed, and pay the same out of any money in the
state treasury not otherwise appropriated.
Sec. 16. Section 16.27, subsections 4 and 5, Code 2011, are
amended by striking the subsections.
Sec. 17. Section 16.27, subsection 6, Code 2011, is amended
to read as follows:
6. The authority shall cause to be delivered to the
legislative fiscal committee within ninety days of the close of
its fiscal year its annual report certified by an independent
certified public accountant (who may be the accountant or a
member of the firm of accountants who regularly audits the
books and accounts of the authority) selected by the authority.
In the event that the principal amount of any bonds or notes
deposited in a bond reserve fund is withdrawn for payment of
principal or interest thereby reducing the amount of that fund
to less than the bond reserve fund requirement, the authority
shall immediately notify the general assembly of this event and
shall thereafter take steps to restore such bond reserve to the
bond reserve fund requirement for that fund from any amounts
available, other than principal of a bond issue, which are not
pledged to the payment of other bonds or notes.
Sec. 18. NEW SECTION . 17A.6A Rulemaking internet site.
1. Subject to the direction of the administrative rules
coordinator, each agency shall make available to the public
a uniform, searchable, and user-friendly rules database,
published on an internet site.
2. An agency’s rulemaking internet site shall also make
available to the public all of the following:
a. A brief summary of the rulemaking process, including a
description of any opportunity for public participation in the
process.
b. Process forms for filing comments or complaints
concerning proposed or adopted rules.
c. Process forms and instructions for filing a petition for
rulemaking, a petition for a declaratory order, or a request
for a waiver of an administrative rule.

House File 2465, p. 8
d. Any other material prescribed by the administrative rules
coordinator.
3. To the extent practicable, the administrative rules
coordinator shall create a uniform format for rulemaking
internet sites.
Sec. 19. Section 17A.7, subsection 2, Code 2011, is amended
by striking the subsection and inserting in lieu thereof the
following:
2. Beginning July 1, 2012, over each five-year period of
time, an agency shall conduct an ongoing and comprehensive
review of all of the agency’s rules. The goal of the review is
the identification and elimination of all rules of the agency
that are outdated, redundant, or inconsistent or incompatible
with statute or its own rules or those of other agencies.
An agency shall commence its review by developing a plan of
review in consultation with major stakeholders and constituent
groups. When the agency completes its five-year review of its
rules, the agency shall provide a summary of the results to the
administrative rules coordinator and the administrative rules
review committee.
Sec. 20. Section 17A.8, subsection 4, Code 2011, is amended
to read as follows:
4. a. The committee shall choose a chairperson from its
membership and prescribe its rules of procedure. The committee
may employ a secretary or may appoint the administrative code
editor or a designee to act as secretary.
b. The chairperson of the committee shall be chosen as
provided in this paragraph. For the term commencing with the
convening of the first regular session of each general assembly
and ending upon the convening of the second regular session
of that general assembly, the chairperson shall be chosen by
the committee from its members who are members of the house of
representatives. For the term commencing with the convening
of the second regular session of each general assembly and
ending upon the convening of the first regular session of the
next general assembly, the chairperson shall be chosen by the
committee from its members who are members of the senate. A
vacancy shall be filled in the same manner as the original
appointment and shall be for the remainder of the unexpired
term of the vacancy.
Sec. 21. Section 97B.52A, subsection 1, paragraph c,
subparagraph (2), subparagraph division (b), Code 2011, is
amended to read as follows:

House File 2465, p. 9
(b) For a member whose first month of entitlement is July
2004 or later, but before July 2012 2014 , covered employment
does not include employment as a licensed health care
professional by a public hospital as defined in section 249J.3 ,
with the exception of public hospitals governed pursuant to
chapter 226 .
Sec. 22. Section 123.49, subsection 2, paragraph d, Code
Supplement 2011, is amended to read as follows:
d. (1) Keep on premises covered by a liquor control license
any alcoholic liquor in any container except the original
package purchased from the division, and except mixed drinks
or cocktails mixed on the premises for immediate consumption
on the licensed premises or as otherwise provided by this
paragraph “d” . This prohibition does not apply to common
carriers holding a class “D” liquor control license.
(2) Mixed drinks or cocktails mixed on the premises that are
not for immediate consumption may be consumed on the licensed
premises subject to the requirements of this subparagraph
pursuant to rules adopted by the division. The rules shall
provide that the mixed drinks or cocktails be stored, for
no longer than seventy-two hours, in a labeled container in
a quantity that does not exceed three gallons. The rules
shall also provide that added flavors and other nonbeverage
ingredients included in the mixed drinks or cocktails shall not
include hallucinogenic substances or added caffeine or other
added stimulants including but not limited to guarana, ginseng,
and taurine. In addition, the rules shall require that the
licensee keep records as to when the contents in a particular
container were mixed and the recipe used for that mixture.
Sec. 23. Section 256C.4, subsection 1, Code 2011, is amended
by adding the following new paragraphs:
NEW PARAGRAPH . g. For the fiscal year beginning July
1, 2011, and each succeeding fiscal year, of the amount of
preschool foundation aid received by a school district for
a fiscal year in accordance with section 257.16, not more
than five percent may be used by the school district for
administering the district’s approved local program.
NEW PARAGRAPH . h. For the fiscal year beginning July
1, 2012, and each succeeding fiscal year, of the amount of
preschool foundation aid received by a school district for a
fiscal year in accordance with section 257.16, not less than
ninety-five percent of the per pupil amount shall be passed
through to a community-based provider for each pupil enrolled

House File 2465, p. 10
in the district’s approved local program. For the fiscal year
beginning July 1, 2011, and each succeeding fiscal year, not
more than five percent of the amount of preschool foundation
aid passed through to a community-based provider may be used by
the community-based provider for administrative costs.
Sec. 24. Section 257.35, subsection 7, Code Supplement
2011, is amended to read as follows:
7. Notwithstanding subsection 1, and in addition to the
reduction applicable pursuant to subsection 2, the state aid
for area education agencies and the portion of the combined
district cost calculated for these agencies for the fiscal year
beginning July 1, 2012, and ending June 30, 2013, shall be
reduced by the department of management by ten twenty million
dollars. The reduction for each area education agency shall be
prorated based on the reduction that the agency received in the
fiscal year beginning July 1, 2003.
Sec. 25. Section 257.37, subsections 1 and 2, Code 2011, are
amended to read as follows:
1. For the budget year beginning July 1, 1991, and
succeeding budget years, the total amount funded in each area
for media services shall be computed as provided in this
subsection . For the budget year beginning July 1, 1991, the
total amount funded in each area for media services in the base
year , including the cost for media resource material which
shall only be used for the purchase or replacement of material
required in section 273.6, subsection 1 , paragraphs “a” , “b” ,
and “c” , shall be divided by the enrollment served in the base
year to provide an area media services cost per pupil in the
base year, and the department of management shall compute the
state media services cost per pupil in the base year which is
equal to the average of the area media services costs per pupil
in the base year. For the budget year beginning July 1, 1991,
and succeeding budget years, the department of management shall
compute the allowable growth for media services in the budget
year by multiplying the state media services cost per pupil
in the base year times the state percent of growth for the
budget year, and the total amount funded in each area for media
services cost in the budget year equals the area media services
cost per pupil in the base year plus the allowable growth for
media services in the budget year times the enrollment served
in the budget year. Funds shall be paid to area education
agencies as provided in section 257.35 .
2. Thirty Up to thirty percent of the budget of an area

House File 2465, p. 11
for media services shall may be expended for media resource
material which shall only be used for including the purchase or
replacement of material required in section 273.6, subsection
1 . Funds shall be paid to area education agencies as provided
in section 257.35 .
Sec. 26. Section 261.93, Code 2011, is amended to read as
follows:
261.93 Program established —— who qualified.
1. An Iowa grant program is established.
2. a. A grant may be awarded to a resident of Iowa who is
admitted and in attendance as a full-time or part-time resident
student at an accredited higher education institution and who
establishes financial need.
b. Top priority in awarding program grants shall be given to
a qualified student who is a resident of Iowa; is under the age
of twenty-six, or the age of thirty if the student is a veteran
who is eligible for benefits, or has exhausted the benefits,
under the federal Post-9/11 Veterans Educational Assistance Act
of 2008; is not a convicted felon as defined in section 910.15;
and who meets any of the following criteria:
(1) Is the child of a peace officer, as defined in section
97A.1, who was killed in the line of duty as determined by
the board of trustees of the Iowa department of public safety
peace officers’ retirement, accident, and disability system in
accordance with section 97A.6, subsection 16.
(2) Is the child of a police officer or a fire fighter, as
defined in section 411.1, who was killed in the line of duty as
determined by the statewide fire and police retirement system
in accordance with section 411.6, subsection 15.
(3) Is the child of a sheriff or deputy sheriff as defined
in section 97B.49C, who was killed in the line of duty as
determined by the Iowa public employees’ retirement system in
accordance with section 97B.52, subsection 2.
(4) Is the child of a fire fighter included under section
97B.49B, who was killed in the line of duty as determined by
the Iowa public employees’ retirement system in accordance with
section 97B.52, subsection 2.
3. Grants awarded shall be distributed to the appropriate
accredited higher education institution for payment of
educational expenses, including tuition, room, board, and
mandatory fees, with any balance to be distributed to the
student for whom the grant is awarded.
Sec. 27. Section 261.93A, Code 2011, is amended to read as

House File 2465, p. 12
follows:
261.93A Appropriation —— percentages.
1. Of the funds appropriated to the college student aid
commission to be allocated for the Iowa grant program for each
fiscal year, thirty-seven moneys shall be distributed for
grants awarded to qualified students who meet the criteria
established pursuant to section 261.93, subsection 2, and the
funds remaining shall be distributed as follows:
a. Thirty-seven and six-tenths percent shall be reserved for
students attending regents institutions , twenty-five .
b. Twenty-five and nine-tenths percent shall be reserved for
students attending community colleges , and thirty-six .
c. Thirty-six and five-tenths percent shall be reserved for
students attending private colleges and universities.
2. Funds appropriated for the Iowa grant program shall be
used to supplement, not supplant, funds appropriated for other
existing programs at the eligible institutions.
Sec. 28. Section 261.95, subsection 1, Code 2011, is amended
to read as follows:
1. The amount of a grant to a qualified full-time student
for an academic year shall be the as follows:
a. For a student who qualifies under section 261.93,
subsection 2, paragraph “a” , the lesser of the student’s
financial need for that period or up to one thousand dollars.
b. For a student who qualifies under section 261.93,
subsection 2, paragraph “b” , the lesser of the student’s
financial need for that period or not more than the resident
tuition rate established for institutions of higher learning
under the control of the state board of regents.
Sec. 29. Section 321.20B, subsection 6, Code 2011, is
amended to read as follows:
6. This section does not apply to a snowmobile or
all-terrain vehicle or to a motor vehicle identified in section
321.18, subsections 1 through 6, and subsection 1, 2, 3, 4, 5,
6, or 8 .
Sec. 30. Section 418.4, subsection 3, paragraph b, as
enacted by 2012 Iowa Acts, Senate File 2217, section 5, is
amended to read as follows:
b. For projects proposing to use sales tax increment
revenues or approved by the board to use sales tax increment
revenues, the project, or an earlier phase of the project,
has been approved to receive financial assistance in an
amount equal to at least twenty percent of the total project

House File 2465, p. 13
cost or thirty million dollars, whichever is less, under a
financial assistance program administered by the United States
environmental protection agency, the federal Water Resources
Development Act , the federal Clean Water Act as defined in
section 455B.291, or other federal program providing assistance
specifically for hazard mitigation.
Sec. 31. Section 422.11D, subsection 2, Code 2011, is
amended to read as follows:
2. An individual may claim a historic preservation and
cultural and entertainment district tax credit allowed a
partnership, limited liability company, S corporation, estate,
or trust electing to have the income taxed directly to the
individual. The amount claimed by the individual shall be
based upon the pro rata share of the individual’s earnings
of a partnership, limited liability company, S corporation,
estate, or trust except when low-income housing tax credits
authorized under section 42 of the Internal Revenue Code are
used to assist in the financing of the housing development in
which case the amount claimed by a partner if the business is a
partnership, a shareholder if the business is an S corporation,
or a member if the business is a limited liability company
shall be based on the amounts designated by the eligible
partnership, S corporation, or limited liability company.
For tax credits reserved for a fiscal year beginning on or
after July 1, 2012, the amount claimed by a partner if the
business is a partnership, a shareholder if the business is
an S corporation, or a member if the business is a limited
liability company shall be based on the amounts designated by
the eligible partnership, S corporation, or limited liability
company.
Sec. 32. Section 476C.3, subsection 4, paragraph b, Code
Supplement 2011, is amended to read as follows:
b. The maximum amount of energy production capacity
equivalent of all other facilities the board may find eligible
under this chapter shall not exceed a combined output of
fifty-three megawatts of nameplate generating capacity and
one hundred sixty-seven billion British thermal units of heat
for a commercial purpose. Of the maximum amount of energy
production capacity equivalent of all other facilities found
eligible under this chapter, no more than ten megawatts of
nameplate generating capacity or energy production capacity
equivalent shall be allocated to any one facility. Of the
maximum amount of energy production capacity equivalent of all

House File 2465, p. 14
other facilities found eligible under this chapter , fifty-five
billion British thermal units of heat for a commercial purpose
shall be reserved for an eligible facility that is a refuse
conversion facility for processed, engineered fuel from a
multicounty solid waste management planning area. The maximum
amount of energy production capacity the board may find
eligible for a single refuse conversion facility is fifty-five
billion British thermal units of heat for a commercial purpose.
Of the maximum amount of energy production capacity equivalent
of all other facilities found eligible under this chapter, an
amount equivalent to ten megawatts of nameplate generating
capacity shall be reserved for eligible renewable energy
facilities incorporated within or associated with an ethanol
cogeneration plant engaged in the sale of ethanol to states to
meet a low carbon fuel standard.
Sec. 33. Section 476C.3, Code Supplement 2011, is amended by
adding the following new subsection:
NEW SUBSECTION . 4A. Notwithstanding the definition
of “eligible renewable energy facility” in section 476C.1,
subsection 6, unnumbered paragraph 1, of the maximum amount of
energy production capacity equivalent of all other facilities
found eligible pursuant to subsection 4, paragraph “b” , an
amount equivalent to ten megawatts of nameplate generating
capacity shall be reserved for natural gas cogeneration
facilities incorporated within or associated with an ethanol
plant to assist the ethanol plant in meeting a low carbon fuel
standard.
Sec. 34. Section 507.14, subsection 4, Code 2011, is amended
to read as follows:
4. Confidential documents, materials, information,
administrative or judicial orders, or other actions may be
disclosed to a regulatory official of any state, federal
agency, or foreign country provided that the recipients are
required, under their law, to maintain their confidentiality.
Confidential records may be disclosed to the national
association of insurance commissioners , the international
association of insurance supervisors, and the bank for
international settlements provided that the association
certifies associations and bank certify by written statement
that the confidentiality of the records will be maintained.
Sec. 35. Section 511.8, subsection 19, Code Supplement
2011, is amended to read as follows:
19. Other foreign government or corporate obligations.

House File 2465, p. 15
a. Bonds or other evidences of indebtedness, not to
include currency, issued, assumed, or guaranteed by a foreign
government other than Canada, or by a corporation incorporated
under the laws of a foreign government other than Canada. Such
governmental obligations must be valid, legally authorized
and issued, and on the date of acquisition have predominantly
investment qualities and characteristics as provided by
rule. Such corporate obligations must meet the qualifications
established in subsection 5 for bonds and other evidences of
indebtedness issued, assumed, or guaranteed by a corporation
incorporated under the laws of the United States or Canada.
Foreign investments authorized by this subsection are not
eligible in excess of twenty twenty-five percent of the
legal reserve of the life insurance company or association.
Investments in obligations of a foreign government, other
than Canada and , the United Kingdom, and foreign governments
rated AAA by Standard and Poor’s division of McGraw-Hill
companies, inc., or Aaa by Moody’s investors services, inc.,
are not eligible in excess of two percent of the legal reserve
in the securities of foreign governments of any one foreign
nation. Investments in obligations of the United Kingdom are
not eligible in excess of four percent of the legal reserve.
Investments in obligations of foreign governments rated either
AAA by Standard and Poor’s division of McGraw-Hill companies,
inc., or Aaa by Moody’s investors services, inc., are not
eligible in excess of five percent of the legal reserve.
Investments in a corporation incorporated under the laws of a
foreign government other than Canada are not eligible in excess
of two percent of the legal reserve in the securities of any
one foreign corporation.
b. Eligible investments in foreign obligations under this
subsection are limited to the types of obligations specifically
referred to in this subsection . This subsection in no way
limits or restricts investments in Canadian obligations and
securities specifically authorized in other subsections of this
section .
c. This subsection shall not authorize investment in
evidences of indebtedness issued, assumed, or guaranteed by a
foreign government which engages in a consistent pattern of
gross violations of human rights.
Sec. 36. NEW SECTION . 514C.29 Services provided by a doctor
of chiropractic.
1. Notwithstanding the uniformity of treatment requirements

House File 2465, p. 16
of section 514C.6, a policy, contract, or plan providing
for third-party payment or prepayment of health or medical
expenses shall not impose a copayment or coinsurance amount on
an insured for services provided by a doctor of chiropractic
licensed pursuant to chapter 151 that is greater than the
copayment or coinsurance amount imposed on the insured for
services provided by a person engaged in the practice of
medicine and surgery or osteopathic medicine and surgery under
chapter 148 for the same or a similar diagnosed condition even
if a different nomenclature is used to describe the condition
for which the services are provided.
2. This section applies to the following classes of
third-party payment provider policies, contracts, or plans
delivered, issued for delivery, continued, or renewed in this
state on or after July 1, 2012:
a. Individual or group accident and sickness insurance
providing coverage on an expense-incurred basis.
b. An individual or group hospital or medical service
contract issued pursuant to chapter 509, 514, or 514A.
c. An individual or group health maintenance organization
contract regulated under chapter 514B.
d. A plan established pursuant to chapter 509A for public
employees.
e. An organized delivery system licensed by the director of
public health.
3. This section shall not apply to accident-only,
specified disease, short-term hospital or medical, hospital
confinement indemnity, credit, dental, vision, Medicare
supplement, long-term care, basic hospital and medical-surgical
expense coverage as defined by the commissioner, disability
income insurance coverage, coverage issued as a supplement
to liability insurance, workers’ compensation or similar
insurance, or automobile medical payment insurance.
Sec. 37. Section 598.41, subsection 3, Code 2011, is amended
by adding the following new paragraph:
NEW PARAGRAPH . k. Whether a parent has allowed a person
custody or control of, or unsupervised access to a child after
knowing the person is required to register or is on the sex
offender registry as a sex offender under chapter 692A.
Sec. 38. REPEAL. 2012 Iowa Acts, House File 2168, section
5, is repealed.
Sec. 39. HOUSING ENTERPRISE ZONE TAX CREDIT ISSUANCE.
1. Notwithstanding section 15E.193B, subsection 4, the

House File 2465, p. 17
authority may issue a tax credit to an eligible housing
business for a project not completed within two years from
the time the business began construction if a city failed to
file the appropriate paperwork with the authority requesting
an extension for the project pursuant to section 15E.193B,
subsection 4.
2. The authorization described in subsection 1 only applies
to projects for which a city failed to file an extension
between January 1, 2007, and January 1, 2008, and only to
benefits earned for a project between February 8, 2005, and
February 8, 2008.
Sec. 40. CODE EDITOR DIRECTIVE. Sections 572.1, 572.8,
572.10, 572.13, 572.18, 572.22, and 572.24, Code and Code
Supplement 2011, as amended by 2012 Iowa Acts, House File 675,
sections 2, 4, 6, 8, 15, 16, and 18, if enacted, are amended as
follows:
1. By striking from the sections the words “state
construction registry” and inserting in lieu thereof the words
“mechanics’ notice and lien registry”.
Sec. 41. CODE EDITOR DIRECTIVE. Sections 572.13A, 572.13B,
and 572.34, if enacted by 2012 Iowa Acts, House File 675,
sections 9, 10, and 25, are amended as follows:
1. By striking from the sections the words “state
construction registry” and inserting in lieu thereof the words
“mechanics’ notice and lien registry”.
Sec. 42. EFFECTIVE UPON ENACTMENT. The following provision
or provisions of this division of this Act, being deemed of
immediate importance, take effect upon enactment:
1. The section of this division of this Act enacting section
256C.4, subsection 1, paragraphs “g” and “h”.
2. The section of this division of this Act amending section
418.4, subsection 3, paragraph “b”, as enacted by 2012 Iowa
Acts, Senate File 2217, section 5.
3. The section of this division of this Act amending 2012
Iowa Acts, Senate File 2289.
4. The section of this division of this Act amending 2010
Iowa Acts, chapter 1193, section 29, subsection 2, as enacted
by 2011 Iowa Acts, chapter 127, section 54.
5. The section of this division of this Act amending 2007
Iowa Acts, chapter 219, section 2, subsection 2, paragraph a,
as enacted by 2011 Iowa Acts, chapter 133, section 32.
6. The section of this division of this Act relating to
joint state-federal mortgage servicing settlement moneys.

House File 2465, p. 18
Sec. 43. EFFECTIVE DATE. The sections of this division
of this Act amending sections 572.1, 572.8, 572.10, 572.13,
572.13A, 572.13B, 572.18, 572.22, 572.24, and 572.34, take
effect January 1, 2013.
Sec. 44. RETROACTIVE APPLICABILITY. The following
provision or provisions of this division of this Act apply
retroactively to April 19, 2012:
1. The section of this division of this Act amending section
418.4, subsection 3, paragraph “b”, as enacted by 2012 Iowa
Acts, Senate File 2217, section 5.
Sec. 45. RETROACTIVE APPLICABILITY. The following
provision or provisions of this division of this Act apply
retroactively to April 12, 2012:
1. The section of this division of this Act amending 2012
Iowa Acts, Senate File 2289.
DIVISION III
CORRECTIVE PROVISIONS
Sec. 46. Section 9B.2, subsection 10, paragraph a, if
enacted by 2012 Iowa Acts, Senate File 2265, section 2, is
amended to read as follows:
a. “Personal appearance” means an act of a party to
physically appear within the presence of a notary public
notarial officer at the time the notarization occurs notarial
act is performed .
Sec. 47. Section 105.2, subsection 8, Code Supplement 2011,
as amended by 2012 Iowa Acts, House File 2285, section 1, if
enacted, is amended to read as follows:
8. “Hydronic” means a heating or cooling system that
transfers heating or cooling by circulating fluid through
a closed system, including boilers, pressure vessels,
refrigerated equipment in connection with chilled water
systems, all steam piping, hot or chilled water piping together
with all control devices and accessories, installed as part
of, or in connection with, any heating or cooling system or
appliance whose primary purpose is to provide comfort using
a liquid, water, or steam as the heating or cooling media.
“Hydronic” includes all low-pressure and high-pressure systems
and all natural, propane, liquid propane, or other gas lines
associated with any component of a hydronic system. For
purposes of this definition, “primary purpose is to provide
comfort” means a system or appliance in which at least fifty-one
percent of the capacity generated by its operation, on an
annual average, is dedicated to comfort heating or cooling.

House File 2465, p. 19
Sec. 48. Section 135.156E, subsection 1, paragraph b, if
enacted by 2012 Iowa Acts, Senate File 2318, section 14, is
amended to read as follows:
b. Require authentication controls to verify the identify
identity and role of the participant using the Iowa health
information network.
Sec. 49. Section 135C.6, subsection 8, paragraphs a and
b, Code 2011, as amended by 2012 Iowa Acts, Senate File 2247,
section 15, are amended to read as follows:
a. Residential programs providing care to not more than
four individuals and receiving moneys appropriated to the
department of human services under provisions of a federally
approved home and community-based services waiver for persons
with an intellectual disabilities disability or other medical
assistance program under chapter 249A . In approving a
residential program under this paragraph, the department of
human services shall consider the geographic location of the
program so as to avoid an overconcentration of such programs
in an area. In order to be approved under this paragraph,
a residential program shall not be required to involve the
conversion of a licensed residential care facility for persons
with an intellectual disability.
b. Not more than forty residential care facilities for
persons with an intellectual disability that are licensed
to serve not more than five individuals may be authorized
by the department of human services to convert to operation
as a residential program under the provisions of a medical
assistance home and community-based services waiver for persons
with an intellectual disabilities disability . A converted
residential program operating under this paragraph is subject
to the conditions stated in paragraph “a” except that the
program shall not serve more than five individuals.
Sec. 50. Section 144D.3, subsection 4, as enacted by 2012
Iowa Acts, House File 2165, section 4, is amended to read as
follows:
4. In the absence of actual notice of the revocation
of a POST form, a health care provider, hospital, health
care facility, or any other person who complies with a POST
form shall not be subject to civil or criminal liability or
professional disciplinary action for actions taken under
this chapter which are in accordance with reasonable medical
standards. A health care provider, hospital, health care
facility, or other person against whom criminal or civil

House File 2465, p. 20
liability or professional disciplinary action is asserted
because of conduct in compliance with this chapter may
interpose the restriction on liability in this paragraph
subsection as an absolute defense.
Sec. 51. Section 152B.2, subsection 1, paragraph a,
subparagraph (2), Code 2011, as amended by 2012 Iowa Acts,
Senate File 2248, section 2, if enacted, is amended to read as
follows:
(2) Direct and indirect respiratory care services including
but not limited to the administration of pharmacological and
diagnostic and therapeutic agents related to respiratory
care procedures necessary to implement a treatment, disease
prevention, pulmonary rehabilitative, or diagnostic regimen
prescribed by a licensed physician , or surgeon , or a qualified
health care professional prescriber.
Sec. 52. Section 152B.3, subsection 1, unnumbered paragraph
1, Code 2011, as amended by 2012 Iowa Acts, Senate File 2248,
section 5, if enacted, is amended to read as follows:
The performance of respiratory care shall be in accordance
with the prescription of a licensed physician , or surgeon , or
a qualified health care professional prescriber and includes
but is not limited to the diagnostic and therapeutic use of the
following:
Sec. 53. Section 152B.3, subsection 2, Code 2011, as amended
by 2012 Iowa Acts, Senate File 2248, section 6, if enacted, is
amended to read as follows:
2. A respiratory care practitioner may transcribe and
implement a written or verbal order from a licensed physician ,
or surgeon , or a qualified health care professional prescriber
pertaining to the practice of respiratory care.
Sec. 54. Section 152B.4, Code 2011, as amended by 2012 Iowa
Acts, Senate File 2248, section 7, if enacted, is amended to
read as follows:
152B.4 Location of respiratory care.
The practice of respiratory care may be performed in a
hospital as defined in section 135B.1, subsection 3 , and other
settings where respiratory care is to be provided in accordance
with a prescription of a licensed physician , or surgeon , or a
qualified health care professional prescriber. Respiratory
care may be provided during transportation of a patient and
under circumstances where an emergency necessitates respiratory
care.
Sec. 55. Section 161A.63, Code 2011, as amended by 2012 Iowa

House File 2465, p. 21
Acts, Senate File 2311, section 16, if enacted, is amended to
read as follows:
161A.63 Right of purchaser of agricultural land to obtain
information.
A prospective purchaser of an interest in agricultural land
located in this state is entitled to obtain from the seller,
or from the office of the soil and water conservation district
in which the land is located, a copy of the most recently
updated farm unit soil conservation plan, developed pursuant
to section 161A.62, subsection 2 , which are is applicable to
the agricultural land proposed to be purchased. A prospective
purchaser of an interest in agricultural land located in this
state is entitled to obtain additional copies of either or both
of the documents document referred to in this section from the
office of the soil and water conservation district in which
the land is located, promptly upon request, at a fee not to
exceed the cost of reproducing them. All persons who identify
themselves to the commissioners or staff of a soil and water
conservation district as prospective purchasers of agricultural
land in the district shall be given information, prepared in
accordance with rules of the department, which clearly explains
the provisions of section 161A.76 .
Sec. 56. Section 203C.14, Code 2011, as amended by 2012 Iowa
Acts, Senate File 2311, section 107, if enacted, is amended to
read as follows:
203C.14 Suit —— claims —— notice of revocation.
1. A person injured by the breach of an obligation of a
warehouse operator, for the performance of which a bond on
agricultural products other than bulk grain, a deficiency
bond, or an irrevocable letter of credit has been given under
any of the provisions of this chapter , may sue on the bond on
agricultural products other than bulk grain, deficiency bond,
or irrevocable letter of credit in the person’s own name in
a court of competent jurisdiction to recover any damages the
person has sustained by reason of the breach.
2. a. Upon the cessation of a warehouse operator’s license
due to revocation, cancellation, or expiration, a claim against
the warehouse operator arising under this chapter shall be
made in writing with the warehouse operator, with the issuer
of a bond on agricultural products other than bulk grain, a
deficiency bond, or an irrevocable letter of credit, and, if
the claim relates to bulk grain, with the department. The
claim must be made within one hundred twenty days after the

House File 2465, p. 22
cessation of the license. The failure to make a timely claim
relieves the issuer and, if the claim relates to bulk grain,
the grain depositors and sellers indemnity fund provided in
chapter 203D of all obligations to the claimant.
3. b. Upon revocation of a warehouse license, the
department shall cause notice of the revocation to be published
once each week for two consecutive weeks in a newspaper of
general circulation in each of the counties in which the
licensee maintains a business location and in a newspaper
of general circulation within the state. The notice shall
state the name and address of the warehouse operator and the
effective date of revocation. The notice shall also state that
any claims against the warehouse operator shall be made in
writing and sent by ordinary mail to the warehouse operator, to
the issuer of a bond on agricultural products other than bulk
grain, deficiency bond, or an irrevocable letter of credit,
and to the department within one hundred twenty days after
revocation, and the notice shall state that the failure to make
a timely claim does not relieve the warehouse operator from
liability to the claimant.
c. This paragraph subsection does not apply if a receiver is
appointed as provided in this chapter pursuant to a petition
which is filed by the department prior to the expiration of
one hundred twenty days after revocation, termination, or
cancellation cessation of warehouse operator’s license.
Sec. 57. Section 249A.12, subsection 5, paragraph a,
unnumbered paragraph 1, Code 2011, as amended by 2012 Iowa
Acts, Senate File 2247, section 101, is amended to read as
follows:
The mental health and disability services commission shall
recommend to the department the actions necessary to assist in
the transition of individuals being served in an intermediate
care facility for persons with an intellectual disability,
who are appropriate for the transition, to services funded
under a medical assistance home and community-based services
waiver for persons with an intellectual disability in a
manner which maximizes the use of existing public and private
facilities. The actions may include but are not limited to
submitting any of the following or a combination of any of the
following as a request for a revision of the medical assistance
home and community-based services waiver for persons with an
intellectual disabilities disability :
Sec. 58. Section 261.115, subsection 3, paragraphs c and d,

House File 2465, p. 23
if enacted by 2012 Iowa Acts, House File 2458, section 1, are
amended to read as follows:
c. Complete their the residency program requirement with an
Iowa-based residency program.
d. Within nine months of graduating from their the residency
program and receiving a permanent license in accordance with
paragraph “b” , engage in the full-time practice of medicine
and surgery or osteopathic medicine and surgery specializing
in family medicine, pediatrics, psychiatry, internal medicine,
or general surgery for a period of sixty consecutive months
in the service commitment area specified under subsection 6,
unless the loan repayment recipient receives a waiver from the
commission to complete the months of practice required under
the agreement in another service commitment area pursuant to
subsection 6.
Sec. 59. Section 261.115, subsection 8, if enacted by 2012
Iowa Acts, House File 2458, section 1, is amended to read as
follows:
8. Part-time practice —— agreement amended. A person who
entered into an agreement pursuant to subsection 3 may apply
to the commission to amend the agreement to allow the person
to engage in less than the full-time practice specified in
the agreement and under subsection 3, paragraph “d” . If the
commission determines exceptional circumstances exist, the
commission and the person may consent to amend the agreement
under which the person shall engage in less than full-time
practice of medicine and surgery or osteopathic medicine
and surgery specializing in family medicine, pediatrics,
psychiatry, internal medicine, or general surgery in a service
commitment area for an extended period of part-time practice
determined by the commission to be proportional to the amount
of full-time practice remaining under the original agreement.
Sec. 60. Section 261.115, subsection 9, paragraph b, if
enacted by 2012 Iowa Acts, House File 2458, section 1, is
amended to read as follows:
b. Except for a postponement under paragraph “a” ,
subparagraph (6), an obligation to engage in practice under an
agreement entered into pursuant to subsection 3, shall not be
postponed for more than two years from the time the full-time
practice was to have commenced under the agreement.
Sec. 61. Section 273.2, subsection 3, Code Supplement 2011,
as amended by 2012 Iowa Acts, Senate File 2203, section 38, if
enacted, is amended to read as follows:

House File 2465, p. 24
3. The area education agency board shall furnish
educational services and programs as provided in sections
section 273.1, this section, sections 273.3 to 273.9, and
chapter 256B to the pupils enrolled in public or nonpublic
schools located within its boundaries which are on the list of
accredited schools pursuant to section 256.11 . The programs
and services provided shall be at least commensurate with
programs and services existing on July 1, 1974. The programs
and services provided to pupils enrolled in nonpublic schools
shall be comparable to programs and services provided to pupils
enrolled in public schools within constitutional guidelines.
Sec. 62. Section 321.188, subsection 6, paragraph c, if
enacted by 2012 Iowa Acts, House File 2403, section 1, is
amended to read as follows:
c. An applicant who obtains a skills test waiver under this
subsection shall take and successfully pass the knowledge test
required pursuant to subsection 2 1 .
Sec. 63. Section 321.323A, subsection 3, paragraph c,
subparagraph (1), if enacted by 2012 Iowa Acts, House File
2228, section 3, is amended to read as follows:
(1) For a violation causing damage to the property of
another person, but not resulting in bodily injury to or
death of to another person, the department shall suspend the
violator’s driver’s license or operating privileges for ninety
days.
Sec. 64. Section 321.457, subsection 2, paragraph n,
subparagraph (4), if enacted by 2012 Iowa Acts, House File
2428, section 1, is amended to read as follows:
(4) For purposes of this paragraph “n” , “full trailer” means
as defined in 49 C.F.R. § 390 390.5 .
Sec. 65. Section 321I.7, subsection 3, Code 2011, as amended
by 2012 Iowa Acts, House File 2467, section 39, is amended to
read as follows:
3. Duplicate registrations may be issued by a county
recorder or a license agent and upon the payment of a five
dollar fee plus a writing fee as provided in section 321I.29.
Sec. 66. Section 322.5, subsection 6, paragraph b,
subparagraph (2), if enacted by 2012 Iowa Acts, Senate File
2249, section 4, is amended to read as follows:
(2) The state in which the person is licensed as a motor
vehicle dealer allows a motor vehicle dealer licensed in Iowa
to be issued a permit substantially similar to the temporary
permit authorized under this section subsection .

House File 2465, p. 25
Sec. 67. Section 326.3, subsection 19, if enacted by 2012
Iowa Acts, Senate File 2216, section 18, is amended to read as
follows:
19. “Operational records” means source documents that
evidence distance traveled by a fleet in each member
jurisdiction, such as furl fuel reports, trip sheets, and
driver logs, including those which may be generated through
on-board devices and maintained electronically, as required by
the audit procedures manual.
Sec. 68. Section 418.4, subsection 1, paragraph b, if
enacted by 2012 Iowa Acts, Senate File 2217, section 5, is
amended to read as follows:
b. A governmental entity as defined in section 418.1,
subsection 4, paragraph “c” , shall have the power to construct,
acquire, own, repair, improve, operate, and maintain a project,
may sue and be sued, contract, and acquire and hold real and
personal property, subject to the limitation in paragraph
“c” , and shall have such other powers as may be included
in the chapter 28E agreement. Such a governmental entity
may contract with a city or the county participating in the
chapter 28E agreement to perform any governmental service,
activity, or undertaking that the city or county is authorized
by law to perform, including but not limited to contracts for
administrative services.
Sec. 69. Section 418.5, subsection 7, if enacted by 2012
Iowa Acts, Senate File 2217, section 6, is amended to read as
follows:
7. A majority of the board voting members constitutes a
quorum.
Sec. 70. Section 418.9, subsection 2, paragraph g, if
enacted by 2012 Iowa Acts, Senate File 2217, section 10, is
amended to read as follows:
g. Whether the project plan is consistent with the
applicable comprehensive , countywide emergency operations plan
in effect and other applicable local hazard mitigation plans.
Sec. 71. Section 504.719, subsection 3, as enacted by 2012
Iowa Acts, Senate File 2260, section 8, is amended to read as
follows:
3. An inspector may, but is not required to, be a director,
member of a designated body, member, officer, or employee of
the corporation. A person who is a candidate for an office
to be filled at the meeting shall not be an inspector at that
meeting.

House File 2465, p. 26
Sec. 72. Section 508.37, subsection 5, paragraph c, Code
2011, as amended by 2012 Iowa Acts, Senate File 2203, section
105, if enacted, is amended to read as follows:
c. The adjusted premiums for a policy providing term
insurance benefits by rider or supplemental policy provision
shall be equal to (1) the adjusted premiums for an otherwise
similar policy issued at the same age without such term
insurance benefits, increased during the period for which
premiums for such term insurance benefits are payable,
by (2) the adjusted premiums for such term insurance, the
foregoing items (1) and (2) being calculated separately and
as specified in paragraphs “a” and “b” of this subsection
except that, for the purposes of of paragraph “a” , subparagraph
(1), subparagraph divisions (b), (c), and (d), the amount of
insurance or equivalent uniform amount of insurance used in
the calculation of the adjusted premiums referred to in item
(2) in this paragraph shall be equal to the excess of the
corresponding amount determined for the entire policy over the
amount used in the calculation of the adjusted premiums in item
(1) in this paragraph.
Sec. 73. Section 515I.1, subsection 2, if enacted by 2012
Iowa Acts, House File 2145, section 1, is amended to read as
follows:
2. This division chapter shall be liberally construed to
promote these purposes.
Sec. 74. Section 536A.10, Code 2011, as amended by 2012 Iowa
Acts, Senate File 2203, section 139, if enacted, is amended to
read as follows:
536A.10 Issuance of license.
1. If The superintendent shall approve the application and
issue to the applicant a license to engage in the industrial
loan business in accordance with the provisions of this
chapter , if the superintendent shall find:
a. That the financial responsibility, experience, character
and general fitness of the applicant and of the officers
thereof are such as to command the confidence of the community,
and to warrant the belief that the business will be operated
honestly, fairly and efficiently within the purpose of this
chapter ;
b. That a reasonable necessity exists for a new industrial
loan company in the community to be served;
c. That the applicant has available for the operation of the
business at the specified location paid-in capital and surplus

House File 2465, p. 27
as required by section 536A.8 ; and
d. That the applicant is a corporation organized for
pecuniary profit under the laws of the state of Iowa.
2. The superintendent shall approve the application and
issue to the applicant a license to engage in the industrial
loan business in accordance with the provisions of this
chapter . The superintendent shall approve or deny an
application for a license within one hundred twenty days from
the date of the filing of such application.
Sec. 75. Section 602.9202, subsection 4, Code 2011, as
amended by 2012 Iowa Acts, Senate File 2285, section 106, is
amended to read as follows:
4. “Senior judge retirement age” means seventy-eight years
of age or, if the senior judge is reappointed as a senior judge
for an additional one-year term upon attaining seventy-eight
years of age , and then to a succeeding one-year term, pursuant
to section 602.9203 , eighty years of age.
Sec. 76. Section 617.11, subsection 3, unnumbered paragraph
1, if enacted by 2012 Iowa Acts, House File 2370, section 1, is
amended to read as follows:
If a claim of interest against the property is acquired prior
to the indexing of a petition or municipal infraction citation
affecting real estate and filed by a city and such claim is
not indexed or filed of record prior to the indexing of the
petition or citation, it is subject to the pending action
as provided in subsection 1, unless either of the following
occurs:
Sec. 77. EFFECTIVE DATE. The section of this division of
this Act amending section 9B.2, subsection 10, paragraph a,
takes effect January 1, 2013.
Sec. 78. EFFECTIVE UPON ENACTMENT. The section of this
division of this Act amending section 105.2, subsection
8, being deemed of immediate importance, takes effect upon
enactment.
Sec. 79. RETROACTIVE APPLICABILITY. The section of this
division of this Act amending section 105.2, subsection 8,
applies retroactively to the effective date of 2012 Iowa Acts,
House File 2285.
Sec. 80. EFFECTIVE UPON ENACTMENT. The section of this
division of this Act amending section 135.156E, subsection 1,
paragraph “b”, being deemed of immediate importance, takes
effect upon enactment.
Sec. 81. RETROACTIVE APPLICABILITY. The section of this

House File 2465, p. 28
division of this Act amending section 135.156E, subsection 1,
paragraph “b”, applies retroactively to the effective date of
2012 Iowa Acts, Senate File 2318.
Sec. 82. EFFECTIVE UPON ENACTMENT. The section of this
division of this Act amending section 322.5, subsection 6,
paragraph “b”, subparagraph (2), being deemed of immediate
importance, takes effect upon enactment.
Sec. 83. RETROACTIVE APPLICABILITY. The section of this
division of this Act amending section 322.5, subsection 6,
paragraph “b”, subparagraph (2), applies retroactively to the
effective date of 2012 Iowa Acts, Senate File 2249.
Sec. 84. EFFECTIVE UPON ENACTMENT. The sections of this
division of this Act amending section 418.4, subsection
1, paragraph “b”, section 418.5, subsection 7, and section
418.9, subsection 2, paragraph “g”, being deemed of immediate
importance, take effect upon enactment.
Sec. 85. RETROACTIVE APPLICABILITY. The sections of
this division of this Act amending section 418.4, subsection
1, paragraph “b”, section 418.5, subsection 7, and section
418.9, subsection 2, paragraph “g”, apply retroactively to the
effective date of 2012 Iowa Acts, Senate File 2217.
Sec. 86. EFFECTIVE UPON ENACTMENT. The section of this
division of this Act amending section 515I.1, subsection
2, being deemed of immediate importance, takes effect upon
enactment.
Sec. 87. RETROACTIVE APPLICABILITY. The section of this
division of this Act amending section 515I.1, subsection 2,
applies retroactively to the effective date of 2012 Iowa Acts,
House File 2145.
DIVISION IV
CARRY FORWARD APPROPRIATIONS
Sec. 88. IOWA STATE MEMORIAL —— RESTORATION. There
is appropriated from the general fund of the state to the
department of cultural affairs for the fiscal year beginning
July 1, 2011, and ending June 30, 2012, the following amount,
or so much thereof as is necessary, to be used for the purposes
designated:
For the preservation and restoration of the Iowa state
memorial at Vicksburg national military park:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 320,000
Notwithstanding section 8.33, moneys appropriated in this
section that remain unencumbered or unobligated at the close of
the fiscal year shall not revert but shall remain available for

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expenditure for the purposes designated until the close of the
fiscal year that begins July 1, 2013.
Sec. 89. DEPARTMENT OF NATURAL RESOURCES —— ECONOMIC
EMERGENCY FUND. There is appropriated from the Iowa economic
emergency fund to the department of natural resources for the
fiscal year beginning July 1, 2011, and ending June 30, 2012,
the following amount, or so much thereof as is necessary, to be
used for the purposes designated, notwithstanding section 8.55,
subsection 1:
For the repair of damages due to the flooding of the Missouri
river during the calendar year 2011 in the Lewis and Clark,
lake Manawa, and Wilson island state parks and recreation area:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,865,743
For purposes of section 8.33, unless specifically provided
otherwise, unencumbered or unobligated moneys remaining
from the appropriation made in this section shall not revert
but shall remain available for expenditure for the purposes
designated until the close of the fiscal year that ends
two years after the end of the fiscal year for which the
appropriation is made. However, if the project or projects for
which the appropriation was made are completed in an earlier
fiscal year, unencumbered or unobligated moneys shall revert at
the close of that same fiscal year.
Sec. 90. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
DIVISION V
TIME SERVED
Sec. 91. Section 907.3, subsection 3, unnumbered paragraph
1, Code Supplement 2011, is amended to read as follows:
By record entry at the time of or after sentencing, the court
may suspend the sentence and place the defendant on probation
upon such terms and conditions as it may require including
commitment to an alternate jail facility or a community
correctional residential treatment facility to be followed
by a period of probation as specified in section 907.7 , or
commitment of the defendant to the judicial district department
of correctional services for supervision or services under
section 901B.1 at the level of sanctions which the district
department determines to be appropriate and the payment of
fees imposed under section 905.14 . A person so committed who
has probation revoked shall not be given credit for such time
served. However, the a person committed to an alternate jail

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facility or a community correctional residential treatment
facility who has probation revoked shall be given credit for
time served in the facility. The court shall not suspend any
of the following sentences:
Sec. 92. APPLICABILITY AND WAIVER OF RIGHTS. A person
who commits an offense prior to the effective date of this
division of this Act may expressly state to the court, at the
time of sentencing, that the person waives any rights under
Anderson v. State, 801 N.W.2d 1, relating to the calculation
of credit for time served, and agree to be sentenced using
credits as calculated under section 907.3, as amended by this
division of this Act. If the court finds the waiver voluntary,
the sentencing order shall reference the person’s waiver of
rights under Anderson, and order that credit for time served
be calculated under section 907.3, as amended by this division
of this Act.
Sec. 93. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
DIVISION VI
COUNTY TREASURERS
Sec. 94. Section 161A.35, unnumbered paragraph 1, Code
2011, is amended to read as follows:
If the owner of any premises against which a levy exceeding
one five hundred dollars has been made and certified shall,
within thirty days from the date of such levy, agree in writing
in a separate agreement, that in consideration of having a
right to pay the owner’s assessment in installments, the
owner will not make any objection as to the legality of the
assessment for benefit, or the levy of the taxes against the
owner’s property, then such owner shall have the following
options:
Sec. 95. Section 311.17, subsection 1, Code 2011, is amended
to read as follows:
1. If an owner other than the state or a county or city,
of any tracts of land on which the assessment is more than
one five hundred dollars, shall, within twenty days from the
date of the assessment, agree in writing filed in the office
of the county auditor, that in consideration of the owner
having the right to pay the assessment in installments, the
owner will not make any objection of illegality or irregularity
as to the assessment upon the real estate, and will pay the
assessment plus interest, the assessment shall be payable in

House File 2465, p. 31
ten equal installments. The first installment shall be payable
on the date of the agreement. The other installments shall be
paid annually at the same time and in the same manner as the
September semiannual payment of ordinary taxes with interest
accruing as provided in section 384.65, subsection 3 . The
rate of interest shall be as established by the board, but not
exceeding that permitted by chapter 74A .
Sec. 96. Section 311.19, unnumbered paragraph 1, Code 2011,
is amended to read as follows:
Assessments of one five hundred dollars or less against
any tract of land, and assessments against lands owned by the
state, county , or city, shall be due and payable from the date
of levy by the board of supervisors, or in the case of any
appeal, from the date of final confirmation of the levy by the
court.
Sec. 97. Section 331.384, subsection 3, Code 2011, is
amended to read as follows:
3. If any amount assessed against property under this
section exceeds one five hundred dollars, a county may permit
the assessment to be paid in up to ten annual installments
in the same manner and with the same interest rates provided
for assessments against benefited property under chapter 384,
division IV .
Sec. 98. Section 357.20, Code 2011, is amended to read as
follows:
357.20 Due date —— bonds.
Assessments of less than one five hundred dollars or less
will come due at the first taxpaying date after the approval of
the final assessment, and assessments of one hundred dollars
or more than five hundred dollars may be paid in ten annual
installments with interest on the unpaid balance at a rate
not exceeding that permitted by chapter 74A . The board of
supervisors shall issue bonds against the completed assessment
in an amount equal to the total cost of the project, so that
the amount of the assessment will be approximately ten percent
greater than the amount of the bonds.
Sec. 99. Section 358.16, subsection 3, Code 2011, is amended
to read as follows:
3. If any amount assessed against property pursuant to
this section will exceed one five hundred dollars, the board
of trustees may permit the assessment to be paid in up to ten
annual installments, in the manner and with the same interest
rates as provided for assessments against benefited property

House File 2465, p. 32
under chapter 384, division IV .
Sec. 100. Section 364.13, Code 2011, is amended to read as
follows:
364.13 Installments.
If any amount assessed against property under section 364.12
will exceed one five hundred dollars, a city may permit the
assessment to be paid in up to ten annual installments, in
the same manner and with the same interest rates provided for
assessments against benefited property under chapter 384,
division IV .
Sec. 101. Section 384.60, subsection 1, paragraph b, Code
2011, is amended to read as follows:
b. State the number of annual installments, not exceeding
fifteen, into which assessments of one more than five hundred
dollars or more are divided.
Sec. 102. Section 384.65, subsection 1, Code 2011, is
amended to read as follows:
1. The first installment of each assessment, or the total
amount if less than one five hundred dollars or less , is due
and payable on July 1 next succeeding the date of the levy,
unless the assessment is filed with the county treasurer after
May 31 in any year. The first installment shall bear interest
on the whole unpaid assessment from the date of acceptance of
the work by the council to the first day of December following
the due date.
Sec. 103. Section 435.24, subsection 6, paragraph b, Code
2011, is amended to read as follows:
b. Partial payment of taxes which are delinquent may be
made to the county treasurer. For the installment being paid,
payment shall first be applied toward any interest, fees, and
costs accrued and the remainder applied to the tax due. A
partial payment must equal or exceed the interest, fees, and
costs of the installment being paid. A partial payment made
under this paragraph shall be apportioned in accordance with
section 445.57 , however, such partial payment may, at the
discretion of the county treasurer, be apportioned either on
or before the tenth day of the month following the receipt of
the partial payment or on or before the tenth day of the month
following the due date of the next semiannual tax installment .
If the payment does not include the whole of any installment
of the delinquent tax, the unpaid tax shall continue to accrue
interest pursuant to section 445.39 . Partial payment shall not
be permitted in lieu of redemption if the property has been

House File 2465, p. 33
sold for taxes under chapter 446 and under any circumstances
shall not constitute an extension of the time period for a sale
under chapter 446 .
Sec. 104. Section 445.36A, subsection 2, Code 2011, is
amended to read as follows:
2. Partial payment of taxes which are delinquent may be
made to the county treasurer. For the installment being paid,
payment shall first be applied to any interest, fees, and costs
accrued and the remainder applied to the taxes due. A partial
payment must equal or exceed the amount of interest, fees,
and costs of the installment being paid. A partial payment
made under this subsection shall be apportioned in accordance
with section 445.57 , however, such partial payment may, at the
discretion of the county treasurer, be apportioned either on
or before the tenth day of the month following the receipt of
the partial payment or on or before the tenth day of the month
following the due date of the next semiannual tax installment .
If the payment does not include the whole of any installment
of the delinquent tax, the unpaid tax shall continue to accrue
interest pursuant to section 445.39 . Partial payment shall not
be permitted in lieu of redemption if the property has been
sold for taxes under chapter 446 and under any circumstances
shall not constitute an extension of the time period for a sale
under chapter 446 .
Sec. 105. Section 445.57, unnumbered paragraph 1, Code
2011, is amended to read as follows:
On or before the tenth day of each month, the county
treasurer shall apportion all taxes collected during the
preceding month, except partial payment amounts collected
pursuant to section 445.36A, subsection 1 and , partial payments
collected and not yet designated by the county treasurer
for apportionment pursuant to section 445.36A, subsection
2, partial payments collected pursuant to section 435.24,
subsection 6 , paragraph “a” , and partial payments collected and
not yet designated by the county treasurer for apportionment
pursuant to section 435.24, subsection 6, paragraph “b” , among
the several funds to which they belong according to the amount
levied for each fund, and shall apportion the interest, fees,
and costs on the taxes to the general fund, and shall enter
those amounts upon the treasurer’s cash account, and report the
amounts to the county auditor.
Sec. 106. Section 446.32, Code 2011, is amended to read as
follows:

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446.32 Payment of subsequent taxes by purchaser.
The county treasurer shall provide to the purchaser of a
parcel sold at tax sale a receipt for the total amount paid
by the purchaser after the date of purchase for a subsequent
year. Taxes for a subsequent year may be paid by the purchaser
beginning one month and fourteen days following the date
from which an installment becomes delinquent as provided in
section 445.37 . Notwithstanding any provision to the contrary,
a subsequent payment must be received and recorded by the
treasurer in the county system no later than five 5:00 p.m. on
the last business day of the month for interest for that month
to accrue and be added to the amount due under section 447.1 .
However, the treasurer may establish a deadline for receipt of
subsequent payments that is other than five 5:00 p.m. on the
last business day of the month to allow for timely processing
of the subsequent payments. Late interest shall be calculated
through the date that the subsequent payment is recorded by
the treasurer in the county system. In no instance shall the
date of postmark of a subsequent payment be used by a treasurer
either to calculate interest or to determine whether interest
shall accrue on the subsequent payment.
Sec. 107. Section 468.57, subsection 1, Code Supplement
2011, is amended to read as follows:
1. If the owner of any land against which a levy exceeding
one five hundred dollars has been made and certified shall,
within thirty days from the date of such levy, agree in
writing endorsed upon any improvement certificate referred
to in section 468.70 , or in a separate agreement, that in
consideration of having a right to pay the owner’s assessment
in installments, the owner will not make any objection as to
the legality of the assessment for benefit, or the levy of the
taxes against the property, then such owner shall have the
following options:
a. To pay one-third of the amount of the assessment at the
time of filing the agreement; one-third within twenty days
after the engineer in charge certifies to the auditor that the
improvement is one-half completed; and the remaining one-third
within twenty days after the improvement has been completed
and accepted by the board. All installments shall be without
interest if paid at said times, otherwise the assessments shall
bear interest from the date of the levy at a rate determined by
the board notwithstanding chapter 74A , payable annually, and
be collected as other taxes on real estate, with like interest

House File 2465, p. 35
for delinquency.
b. To pay the assessments in not less than ten nor more
than twenty equal installments, with the number of payments and
interest rate determined by the board, notwithstanding chapter
74A . The first installment of each assessment, or the total
amount if less than one five hundred dollars or less , is due
and payable on July 1 next succeeding the date of the levy,
unless the assessment is filed with the county treasurer after
May 31 in any year. The first installment shall bear interest
on the whole unpaid assessment from the date of the levy as set
by the board to the first day of December following the due
date. The succeeding annual installments, with interest on the
whole unpaid amount, to the first day of December following the
due date, are respectively due on July 1 annually, and must
be paid at the same time and in the same manner as the first
semiannual payment of ordinary taxes. All future installments
of an assessment may be paid on any date by payment of the then
outstanding balance plus interest to the next December 1, or
additional annual installments may be paid after the current
installment has been paid before December 1 without interest.
A payment must be for the full amount of the next installment.
If installments remain to be paid, the next annual installment
with interest added to December 1 will be due. After December
1, if a drainage assessment is not delinquent, a property owner
may pay one-half or all of the next annual installment of
principal and interest of a drainage assessment prior to the
delinquency date of the installment. When the next installment
has been paid in full, successive principal installments may
be prepaid. The county treasurer shall accept the payments
of the drainage assessment, and shall credit the next annual
installment or future installments of the drainage assessment
to the extent of the payment or payments, and shall remit the
payments to the drainage fund. If a property owner elects
to pay one or more principal installments in advance, the
pay schedule shall be advanced by the number of principal
installments prepaid. Each installment of an assessment with
interest on the unpaid balance is delinquent from October 1
after its due date. However, when the last day of September
is a Saturday or Sunday, that amount shall be delinquent from
the second business day of October. Taxes assessed pursuant
to this chapter which become delinquent shall bear the same
delinquent interest as ordinary taxes. When collected, the
interest must be credited to the same drainage fund as the

House File 2465, p. 36
drainage special assessment.
DIVISION VII
BOARDS AND COMMISSIONS
Sec. 108. Section 28B.1, subsection 1, unnumbered paragraph
1, Code 2011, is amended to read as follows:
The In accordance with a resolution adopted for this purpose
by the legislative council, an Iowa commission on interstate
cooperation is hereby established shall be appointed to address
the charge and other responsibilities for the commission
outlined in the resolution . It The commission shall consist of
thirteen members to be appointed as follows:
Sec. 109. Section 28B.4, Code 2011, is amended to read as
follows:
28B.4 Report.
1. The commission shall report to the governor and to
the legislature within fifteen days after the convening of
each general assembly general assembly in accordance with the
commission’s charge , and at may report at other times as it
deems deemed appropriate by the commission .
2. Its The commission’s members and the members of all
committees which it establishes shall be reimbursed for their
travel and other necessary expenses in carrying out their
obligations under this chapter and legislative members shall
be paid a per diem as specified in section 7E.6 for each day in
which engaged in the performance of their duties, the per diem
and legislators’ expenses to be paid from funds appropriated by
sections 2.10 and 2.12 . Expenses of administrative officers,
state officials, or state employees who are members of the Iowa
commission on interstate cooperation or a committee appointed
by the commission shall be paid from funds appropriated to
the agencies or departments which persons represent except as
may otherwise be provided by the general assembly. Expenses
of citizen members who may be appointed to committees of
the commission may be paid from funds as authorized by the
general assembly. Expenses of the secretary or employees
of the secretary and support services in connection with
the administration of the commission shall be paid from
funds appropriated to the legislative services agency
unless otherwise provided by the general assembly. Expenses
of commission members shall be paid upon approval of the
chairperson or the secretary of the commission.
Sec. 110. Section 216A.132, subsection 1, paragraph c, Code
2011, is amended to read as follows:

House File 2465, p. 37
c. (1) The chief justice of the supreme court shall
designate one member who is a district judge and one member
who is either a district associate judge or associate juvenile
judge. The chairperson and ranking member of the senate
committee on judiciary shall be members. In alternating
four-year intervals, the chairperson and ranking member of
the house committee on judiciary or of the house committee
on public safety shall be members, with the chairperson and
ranking member of the house committee on public safety serving
during the initial interval. Nonlegislative The members
appointed pursuant to this paragraph subparagraph shall serve
as ex officio, nonvoting members for four-year terms beginning
and ending as provided in section 69.19 , unless the member
ceases to serve as a district court judge.
(2) The chairperson and ranking member of the senate
committee on judiciary shall be ex officio, nonvoting members.
In alternating two-year terms, beginning and ending as provided
in section 69.16B, the chairperson and ranking member of the
house committee on judiciary or of the house committee on
public safety shall be ex officio, nonvoting members, with the
chairperson and ranking member of the house committee on public
safety serving during the term beginning in January 2011.
Sec. 111. REPEAL. Section 249A.36, Code 2011, is repealed.
DIVISION VIII
CITY FRANCHISE FEES
Sec. 112. Section 364.2, subsection 4, paragraph f, Code
2011, is amended to read as follows:
f. (1) (a) A franchise fee assessed by a city may be
based upon a percentage of gross revenues generated from sales
of the franchisee within the city not to exceed five percent,
except as provided in subparagraph division (b), without regard
to the city’s cost of inspecting, supervising, and otherwise
regulating the franchise.
(b) For franchise fees assessed and collected during
fiscal years beginning on or after July 1, 2012, but before
July 1, 2030, by a city that is the subject of a judgment,
court-approved settlement, or court-approved compromise
providing for payment of restitution, a refund, or a return
described in section 384.3A, subsection 3, paragraph “j” ,
the rate of the franchise fee shall not exceed seven and
one-half percent of gross revenues generated from sales of the
franchisee in the city, and franchise fee amounts assessed and
collected during such fiscal years in excess of five percent

House File 2465, p. 38
of gross revenues generated from sales shall be used solely
for the purpose specified in section 384.3A, subsection 3,
paragraph “j” . A city may assess and collect a franchise fee
in excess of five percent of gross revenues generated from the
sales of the franchisee pursuant to this subparagraph division
(b) for a period not to exceed seven consecutive fiscal years
once the franchise fee is first imposed at a rate in excess
of five percent. An ordinance increasing the franchise fee
rate to greater than five percent pursuant to this subparagraph
division (b) shall not become effective unless approved at
an election. After passage of the ordinance, the council
shall submit the proposal at a special election held on a date
specified in section 39.2, subsection 4, paragraph “b” . If a
majority of those voting on the proposal approves the proposal,
the city may proceed as proposed. The complete text of the
ordinance shall be included on the ballot and the full text
of the ordinance posted for the voters pursuant to section
52.25. All absentee voters shall receive the full text of the
ordinance along with the absentee ballot. This subparagraph
division is repealed July 1, 2030.
(2) Franchise fees collected pursuant to an ordinance
in effect on May 26, 2009, shall be deposited in the city’s
general fund and such fees collected in excess of the amounts
necessary to inspect, supervise, and otherwise regulate
the franchise may be used by the city for any other purpose
authorized by law. Franchise fees collected pursuant to an
ordinance that is adopted or amended on or after May 26,
2009, to increase the percentage rate at which franchise fees
are assessed shall be credited to the franchise fee account
within the city’s general fund and used pursuant to section
384.3A . If a city franchise fee is assessed to customers of
a franchise, the fee shall not be assessed to the city as a
customer. Before a city adopts or amends a franchise fee rate
ordinance or franchise ordinance to increase the percentage
rate at which franchise fees are assessed, a revenue purpose
statement shall be prepared specifying the purpose or purposes
for which the revenue collected from the increased rate will
be expended. If property tax relief is listed as a purpose,
the revenue purpose statement shall also include information
regarding the amount of the property tax relief to be provided
with revenue collected from the increased rate. The revenue
purpose statement shall be published as provided in section
362.3 .

House File 2465, p. 39
Sec. 113. Section 384.3A, subsection 3, Code 2011, is
amended by adding the following new paragraph:
NEW PARAGRAPH . j. For franchise fees assessed and collected
by a city in excess of five percent of gross revenues generated
from sales of the franchisee within the city pursuant to
section 364.2, subsection 4, paragraph “f” , subparagraph (1),
subparagraph division (b), during fiscal years beginning on or
after July 1, 2012, but before July 1, 2030, the adjustment,
renewing, or extension of any part or all of the legal
indebtedness of a city, whether evidenced by bonds, warrants,
court-approved settlements, court-approved compromises, or
judgments, or the funding or refunding of the same, if such
legal indebtedness relates to restitution, a refund, or
a return ordered by a court of competent jurisdiction for
franchise fees assessed and collected by the city before the
effective date of this division of this Act. This paragraph is
repealed July 1, 2030.
Sec. 114. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
DIVISION IX
EARLY INTERVENTION BLOCK GRANT PROGRAM
Sec. 115. Section 256D.9, Code 2011, is amended to read as
follows:
256D.9 Future repeal.
This chapter is repealed effective July 1, 2012 2013 .
Sec. 116. EFFECTIVE DATE. This division of this Act takes
effect June 30, 2012.
DIVISION X
STATE BOARD OF REGENTS
Sec. 117. Section 8D.10, Code 2011, is amended to read as
follows:
8D.10 Report of savings by state agencies.
A state agency which is a part of the network shall annually
provide a written report to the general assembly certifying
the identified savings associated with the state agency’s use
of the network. The report shall be delivered on or before
January 15 for the previous fiscal year of the state agency.
This section does not apply to the state board of regents or to
any institution under control of the state board of regents.
Sec. 118. Section 262.93, Code 2011, is amended to read as
follows:
262.93 Reports to general assembly.

House File 2465, p. 40
The college student aid commission and the state board of
regents each shall submit to the general assembly , by January
15 of each year, a report on the progress and implementation
of the programs which they administer under sections 261.102
through 261.105 , 262.82 , and 262.92 . By January 31 of each
year, the state board of regents shall submit a report to the
general assembly regarding the progress and implementation
of the program administered pursuant to section 262.82. The
reports shall include , but are not limited to , the numbers
of students and educators participating in the programs and
allocation of funds appropriated for the programs.
Sec. 119. Section 263.19, Code 2011, is amended to read as
follows:
263.19 Purchases.
Any purchase in excess of ten thousand dollars, of
materials, appliances, instruments, or supplies by the
university of Iowa hospitals and clinics , when the price of the
materials, appliances, instruments, or supplies to be purchased
is subject to competition, shall be made pursuant to open
competitive quotations, and all contracts for such purchases
shall be subject to chapter 72 . However, purchases may be made
through a hospital group purchasing organization provided that
the university of Iowa hospitals and clinics is a member of
the organization in compliance with purchasing policies of the
state board of regents .
Sec. 120. Section 432.13, Code 2011, is amended to read as
follows:
432.13 Premium tax exemption —— hawk-i program —— state
employee benefits.
1. Premiums collected by participating insurers under
chapter 514I are exempt from premium tax.
2. Premiums received for benefits acquired on behalf of
state employees by the department of administrative services
on behalf of state employees pursuant to section 8A.402,
subsection 1 , and by the state board of regents pursuant to
chapter 262, are exempt from premium tax.
DIVISION XI
NAVIGATOR —— INSURANCE
Sec. 121. NEW SECTION . 522D.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Commissioner” means the commissioner of insurance.
2. “ Navigator ” means a public or private entity or an

House File 2465, p. 41
individual that is qualified and licensed, if appropriate, to
engage in the activities and meet the standards described in 45
C.F.R. § 155.210.
Sec. 122. NEW SECTION . 522D.2 License required.
A person shall not act as a navigator in this state unless
the person is licensed by the commissioner as required in this
chapter.
Sec. 123. NEW SECTION . 522D.3 Actions prohibited.
A navigator shall not perform the functions of a person
required to be licensed as an insurance producer under chapter
522B unless the navigator is licensed as a navigator pursuant
to this chapter and as an insurance producer pursuant to
chapter 522B.
Sec. 124. NEW SECTION . 522D.4 Application for examination.
1. An individual applying for a navigator license shall
pass a written examination. The examination shall test
the knowledge of the individual concerning the duties and
responsibilities of a navigator and the insurance laws and
regulations of this state. The commissioner shall adopt rules
pursuant to chapter 17A related to the development and conduct
of the examination.
2. The commissioner may make arrangements, including
contracting with an outside testing service or other
appropriate entity, for administering examinations and
collecting fees.
3. An individual applying for an examination shall remit a
nonrefundable fee as established by rule of the commissioner.
4. An individual who fails to appear for the examination as
scheduled or fails to pass the examination shall reapply for an
examination and remit all required fees and forms before being
rescheduled for another examination.
Sec. 125. NEW SECTION . 522D.5 Application for license.
1. A person applying for a navigator license shall make
application to the commissioner on an application form approved
by the commissioner and declare under penalty of refusal,
suspension, or revocation of the license that the statements
made on the application are true, correct, and complete to
the best of the individual’s knowledge and belief. Before
approving the application, the commissioner shall find all of
the following:
a. The individual is at least eighteen years of age.
b. The individual has not committed any act that is a ground
for denial, suspension, or revocation as set forth in section

House File 2465, p. 42
522D.7.
c. The individual has paid the license fee, as established
by the commissioner by rule.
d. The individual has successfully completed the initial
training and education program for a license as established by
the commissioner by rule.
e. The individual has successfully passed the examination
as provided in section 522D.4.
f. In order to protect the public interest, the individual
has the requisite character and competence to receive a license
as a navigator.
2. A public or private entity acting as a navigator may
elect to obtain a navigator license. Application shall be made
using the application form approved by the commissioner. Prior
to approving the application, the commissioner shall find both
of the following:
a. The entity has paid the appropriate fees.
b. The entity has designated a licensed navigator
responsible for the entity’s compliance with this chapter.
Sec. 126. NEW SECTION . 522D.6 License.
1. A person who meets the requirements of sections 522D.4
and 522D.5, unless otherwise denied licensure pursuant to
section 522D.7, shall be issued a navigator license. A
navigator license is valid for three years.
2. A navigator license remains in effect unless revoked or
suspended as long as all required fees are paid and continuing
education requirements are met by any applicable due date.
A navigator is required to complete continuing education
requirements required by law in order to be eligible for
license renewal.
3. A licensed navigator who is unable to comply with license
renewal procedures due to military service or other extenuating
circumstances may request a waiver of those procedures. The
licensed navigator may also request a waiver of any examination
requirement or any other penalty or sanction imposed for
failure to comply with renewal procedures.
4. The license shall contain the licensee’s name, address,
personal identification number, the date of issuance, the
expiration date, and any other information the commissioner
deems necessary.
5. A licensee shall inform the commissioner by any means
acceptable to the commissioner of a change of legal name or
address within thirty days of the change. Failure to timely

House File 2465, p. 43
inform the commissioner of a change of legal name or address
may result in a penalty as specified in section 522D.7.
6. The commissioner shall require by rule that a licensed
navigator furnish a surety bond or other evidence of financial
responsibility that protects all persons against wrongful acts,
misrepresentations, errors, omissions, or negligence of the
navigator.
7. In order to assist with the commissioner’s duties,
the commissioner may contract with a nongovernmental entity,
including the national association of insurance commissioners
or any affiliate or subsidiary the national association of
insurance commissioners oversees, to perform any ministerial
functions, including the collection of fees, related to
navigator licensing that the commissioner deems appropriate.
Sec. 127. NEW SECTION . 522D.7 License denial, nonrenewal,
or revocation.
1. The commissioner may place on probation, suspend,
revoke, or refuse to issue or renew a navigator’s license or
may levy a civil penalty as provided in section 522D.8 for any
one or more of the following causes:
a. Providing incorrect, misleading, incomplete, or
materially untrue information in the license application.
b. Violating any insurance laws, or violating any
regulation, subpoena, or order of the commissioner or of a
commissioner of another state.
c. Obtaining or attempting to obtain a license through
misrepresentation or fraud.
d. Improperly withholding, misappropriating, or converting
any moneys or properties received in the course of doing
insurance business.
e. Intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance.
f. Having been convicted of a felony.
g. Having admitted or been found to have committed any
unfair insurance trade practice or fraud.
h. Using fraudulent, coercive, or dishonest practices, or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility in the conduct of business in this state or
elsewhere.
i. Having a navigator license, or its equivalent, denied,
suspended, or revoked in any other state, province, district,
or territory.
j. Forging another’s name to an application for insurance or

House File 2465, p. 44
to any document related to an insurance transaction.
k. Improperly using notes or any other reference material to
complete an examination for a navigator license.
l. Failing to comply with an administrative or court order
imposing a child support obligation.
m. Failing to comply with an administrative or court order
related to repayment of loans to the college student aid
commission.
n. Failing to pay state income tax or comply with any
administrative or court order directing payment of state income
tax.
o. Failing or refusing to cooperate in an investigation by
the commissioner.
2. If the commissioner does not renew a license or denies
an application for a license, the commissioner shall notify
the applicant or licensee and advise, in writing, the licensee
or applicant of the reason for the nonrenewal of the license
or denial of the application for a license. The licensee or
applicant may request a hearing on the nonrenewal or denial. A
hearing shall be conducted according to section 507B.6.
3. The license of a public or private entity operating
as a navigator may be suspended, revoked, or refused if the
commissioner finds, after hearing, that an individual navigator
licensee’s violation was known or should have been known by a
partner, officer, or manager acting on behalf of the entity
and the violation was not reported to the commissioner and
corrective action was not taken.
4. In addition to, or in lieu of, any applicable denial,
suspension, or revocation of a license, a person, after
hearing, may be subject to a civil penalty as provided in
section 522D.8.
5. The commissioner may conduct an investigation of any
suspected violation of this chapter pursuant to section 507B.6
and may enforce the provisions and impose any penalty or remedy
authorized by this chapter and chapter 507B against any person
who is under investigation for, or charged with, a violation
of either chapter even if the person’s license has been
surrendered or has lapsed by operation of law.
6. a. In order to assure a free flow of information for
accomplishing the purposes of this section, all complaint
files, investigation files, other investigation reports, and
other investigative information in the possession of the
commissioner or the commissioner’s employees or agents that

House File 2465, p. 45
relates to licensee discipline are privileged and confidential,
and are not subject to discovery, subpoena, or other means
of legal compulsion for their release to a person other
than the licensee, and are not admissible in evidence in a
judicial or administrative proceeding other than the proceeding
involving licensee discipline. A final written decision of the
commissioner in a disciplinary proceeding is a public record.
b. Investigative information in the possession of the
commissioner or the commissioner’s employees or agents that
relates to licensee discipline may be disclosed, in the
commissioner’s discretion, to appropriate licensing authorities
within this state, the appropriate licensing authority in
another state, the District of Columbia, or a territory or
country in which the licensee is licensed or has applied for
a license.
c. If the investigative information in the possession of
the commissioner or the commissioner’s employees or agents
indicates a crime has been committed, the information shall be
reported to the proper law enforcement agency.
d. Pursuant to the provisions of section 17A.19, subsection
6, upon an appeal by the licensee, the commissioner shall
transmit the entire record of the contested case to the
reviewing court.
e. Notwithstanding the provisions of section 17A.19,
subsection 6, if a waiver of privilege has been involuntary and
evidence has been received at a disciplinary hearing, the court
shall issue an order to withhold the identity of the individual
whose privilege was waived.
Sec. 128. NEW SECTION . 522D.8 Cease and desist orders ——
penalties.
1. A navigator who, after hearing, is found to have violated
this chapter, may be ordered to cease and desist from engaging
in the conduct resulting in the violation and may be assessed a
civil penalty pursuant to chapter 507B.
2. If a person does not comply with an order issued pursuant
to this section, the commissioner may petition a court of
competent jurisdiction to enforce the order. The court shall
not require the commissioner to post a bond in an action or
proceeding under this section. If the court finds, after
notice and opportunity for hearing, that the person is not in
compliance with an order, the court may adjudge the person to
be in civil contempt of the order. The court may impose a civil
penalty against the person for contempt in an amount not less

House File 2465, p. 46
than three thousand dollars but not greater than ten thousand
dollars for each violation and may grant any other relief that
the court determines is just and proper in the circumstances.
Sec. 129. NEW SECTION . 522D.9 Injunctive relief.
1. A person may bring an action in district court to enjoin
another person from acting as a navigator in violation of
section 522D.2. However, before bringing an action in district
court to enjoin a person pursuant to this section, the person
shall file a complaint with the insurance division alleging
that another person is acting as a navigator in violation of
section 522D.2.
2. If the division makes a determination to proceed
administratively against the person for a violation of section
522D.2, the complainant shall not bring an action in district
court against the person pursuant to this section based upon
the allegations contained in the complaint filed with the
division.
3. If the division does not make a determination to proceed
administratively against the person for a violation of section
522D.2, the division shall issue, by ninety days from the date
of filing of the complaint, a release to the complainant that
permits the complainant to bring an action in district court
pursuant to this section.
4. The filing of a complaint with the division pursuant
to this section tolls the statute of limitations pursuant to
section 614.1 as to the alleged violation for a period of one
hundred twenty days from the date of filing the complaint.
5. Any action brought in district court by a complainant
against a person pursuant to this section, based upon the
allegations contained in the complaint filed with the division,
shall be brought within one year after the ninety-day period
following the filing of the complaint with the division, or the
date of the issuance of a release by the division, whichever
is earlier.
6. If the court finds that the person is in violation
of section 522D.2 and enjoins the person from acting as a
navigator in violation of that section, the court’s findings of
fact and law, and the judgment and decree, when final, shall
be admissible in any proceeding initiated pursuant to section
522D.8 by the commissioner against the person enjoined and the
person enjoined shall be precluded from contesting in that
proceeding the court’s determination that the person acted as a
navigator in violation of section 522D.2.

House File 2465, p. 47
Sec. 130. NEW SECTION . 522D.10 Rules.
The commissioner may adopt rules pursuant to chapter 17A
as are necessary or proper to carry out the purposes of this
chapter.
Sec. 131. NEW SECTION . 522D.11 Severability.
If any provision of this chapter or its application to any
person or circumstance is held invalid by a court of competent
jurisdiction or by federal law, the invalidity does not affect
other provisions or applications of the chapter that can be
given effect without the invalid provision or application, and
to this end the provisions of the chapter are severable and the
valid provisions or applications shall remain in full force and
effect.
Sec. 132. NEW SECTION . 522D.12 Future repeal.
If the federal law providing for the sale of qualified health
benefit plans of the state is repealed by federal legislation
or is ruled invalid by a decision of the United States supreme
court, the commissioner shall notify the Iowa Code editor of
the effective date of the repeal or the date of the ruling.
This chapter is repealed on the effective date of such federal
legislation or the date of the United States supreme court
decision.
DIVISION XII
CAPITAL GAIN DEDUCTION FOR SALE TO AN IOWA ESOP
Sec. 133. Section 422.7, subsection 21, Code Supplement
2011, is amended by adding the following new paragraph:
NEW PARAGRAPH . e. (1) To the extent not already excluded,
fifty percent of the net capital gain from the sale or exchange
of employer securities of an Iowa corporation to a qualified
Iowa employee stock ownership plan when, upon completion of
the transaction, the qualified Iowa employee stock ownership
plan owns at least thirty percent of all outstanding employer
securities issued by the Iowa corporation.
(2) For purposes of this paragraph:
(a) “Employer securities” means the same as defined in
section 409(l) of the Internal Revenue Code.
(b) “Iowa corporation” means a corporation whose commercial
domicile, as defined in section 422.32, is in this state.
(c) “Qualified Iowa employee stock ownership plan” means an
employee stock ownership plan, as defined in section 4975(e)(7)
of the Internal Revenue Code, and trust that are established
by an Iowa corporation for the benefit of the employees of the
corporation.

House File 2465, p. 48
Sec. 134. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2012, for tax years
beginning on or after that date.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
JOHN P. KIBBIE
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2465, Eighty-fourth General Assembly.
______________________________
W. CHARLES SMITHSON
Chief Clerk of the House
Approved _______________, 2012
______________________________
TERRY E. BRANSTAD
Governor