House Study Bill 252 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON MOHR) A BILL FOR An Act relating to state finances, including by making, 1 modifying, limiting, or reducing appropriations, 2 distributions, or transfers, authorizing expenditure of 3 certain unappropriated moneys, making corrections, and 4 including effective date, applicability, and retroactive 5 applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1020YC (9) 90 ns/jh

H.F. _____ DIVISION I 1 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 2 AUTHORITY 3 Section 1. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 4 2023-2024. Notwithstanding the standing appropriation in the 5 following designated section for the fiscal year beginning July 6 1, 2023, and ending June 30, 2024, the amount appropriated from 7 the general fund of the state pursuant to that section for the 8 following designated purpose shall not exceed the following 9 amount: 10 For payment of claims for nonpublic school pupil 11 transportation under section 285.2 : 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,997,091 13 If total approved claims for reimbursement for nonpublic 14 school pupil transportation exceed the amount appropriated in 15 accordance with this section, the department of education shall 16 prorate the amount of each approved claim. 17 Sec. 2. INSTRUCTIONAL SUPPORT STATE AID —— FY 2023-2024. In 18 lieu of the appropriation provided in section 257.20, 19 subsection 2, the appropriation for the fiscal year 20 beginning July 1, 2023, and ending June 30, 2024, for paying 21 instructional support state aid under section 257.20 for the 22 fiscal year is zero. 23 Sec. 3. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— 24 UNAPPROPRIATED MONEYS —— FY 2023-2024. For the fiscal 25 year beginning July 1, 2023, and ending June 30, 2024, 26 salary adjustments otherwise provided may be funded as 27 determined by the department of management, subject to any 28 applicable constitutional limitation, using unappropriated 29 moneys remaining in the commerce revolving fund, the gaming 30 enforcement revolving fund, the gaming regulatory revolving 31 fund, the primary road fund, the road use tax fund, the fish 32 and game protection fund, and the Iowa public employees’ 33 retirement fund, and in other departmental revolving, trust, or 34 special funds for which the general assembly has not made an 35 -1- LSB 1020YC (9) 90 ns/jh 1/ 16

H.F. _____ operating budget appropriation. 1 Sec. 4. DISTRIBUTIONS OF IOWA ECONOMIC EMERGENCY FUND 2 EXCESS —— FY 2022-2023. 3 1. Notwithstanding section 8.55, subsection 2, paragraphs 4 “a” and “b”, for the fiscal year beginning July 1, 2022, and 5 ending June 30, 2023, moneys in excess of the maximum balance 6 of the Iowa economic emergency fund created in section 8.55 7 shall be distributed as follows: 8 a. An amount equal to the difference between the foundation 9 property tax statewide under section 257.3 for the fiscal year 10 beginning July 1, 2023, calculated using taxable valuations 11 for the assessment year beginning January 1, 2022, following 12 application of assessment limitations calculated under section 13 441.21, Code 2023, and the foundation property tax statewide 14 under section 257.3 for the fiscal year beginning July 1, 15 2023, calculated using taxable valuations for the assessment 16 year beginning January 1, 2022, following application of 17 assessment limitations calculated under section 441.21, Code 18 2023, as amended by 2023 Iowa Acts, Senate File 181, shall be 19 transferred to the general fund of the state to pay foundation 20 aid under chapter 257 as described in section 257.16 for the 21 fiscal year beginning July 1, 2023. 22 b. Of the remaining moneys, if any, the difference between 23 the actual net revenue for the general fund of the state for 24 the fiscal year and the adjusted revenue estimate for the 25 fiscal year, reduced by the amount transferred under paragraph 26 “a”, shall be transferred to the taxpayer relief fund created 27 in section 8.57E. 28 c. The remaining moneys, if any, shall be transferred to the 29 general fund of the state. 30 2. The amount to be transferred under subsection 1, 31 paragraph “a”, shall be determined by the department of 32 management on or before July 31, 2023. The department shall 33 notify the legislative services agency of the department’s 34 determination. 35 -2- LSB 1020YC (9) 90 ns/jh 2/ 16

H.F. _____ Sec. 5. Section 257.35, Code 2023, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 17A. Notwithstanding subsection 1, and in 3 addition to the reduction applicable pursuant to subsection 4 2, the state aid for area education agencies and the portion 5 of the combined district cost calculated for these agencies 6 for the fiscal year beginning July 1, 2023, and ending June 7 30, 2024, shall be reduced by the department of management by 8 twenty-two million fifty-seven thousand one hundred thirty-one 9 dollars. The reduction for each area education agency shall be 10 prorated based on the reduction that the agency received in the 11 fiscal year beginning July 1, 2003. 12 Sec. 6. Section 441.21, subsection 5, paragraph e, 13 subparagraph (1), Code 2023, is amended to read as follows: 14 (1) For the fiscal year beginning July 1, 2023, there 15 is appropriated from the general fund of the state to the 16 department of revenue the sum of one hundred twenty-two million 17 three hundred fifty thousand dollars to be used for payments 18 under this paragraph calculated as a result of the assessment 19 limitations imposed under paragraph “b” , subparagraph (2), 20 subparagraph division (a), and paragraph “c” , subparagraph (2), 21 subparagraph division (a). For each fiscal year beginning on 22 or after July 1, 2023 2024 , there is appropriated from the 23 general fund of the state to the department of revenue the 24 sum of one hundred twenty-five million dollars to be used 25 for payments under this paragraph calculated as a result 26 of the assessment limitations imposed under paragraph “b” , 27 subparagraph (2), subparagraph division (a), and paragraph “c” , 28 subparagraph (2), subparagraph division (a). 29 Sec. 7. EFFECTIVE DATE. The following, being deemed of 30 immediate importance, takes effect upon enactment: 31 The section of this division of this Act providing for 32 distributions of moneys in excess of the maximum balance of the 33 Iowa economic emergency fund. 34 DIVISION II 35 -3- LSB 1020YC (9) 90 ns/jh 3/ 16

H.F. _____ CORRECTIVE PROVISIONS 1 CORRECTIONS ASSOCIATED WITH SENATE FILE 514 2 Sec. 8. Section 15.342A, subsection 2, Code 2023, as amended 3 by 2023 Iowa Acts, Senate File 514, section 2219, is amended 4 to read as follows: 5 2. For the fiscal year beginning July 1, 2023, and for each 6 fiscal year thereafter, there is annually appropriated from 7 the workforce development fund account to the apprenticeship 8 training program fund created in section 15B.3 84D.3 three 9 million dollars for the purposes of chapter 15B 84D . 10 Sec. 9. Section 15C.1, subsection 3, paragraph b, Code 2023, 11 is amended to read as follows: 12 b. An apprenticeship sponsor receiving financial assistance 13 under chapter 15B 84D or section 15C.2 84E.2 is ineligible for 14 financial assistance under this section during the same fiscal 15 year. 16 Sec. 10. Section 15C.2, subsection 3, paragraph b, Code 17 2023, is amended to read as follows: 18 b. An apprenticeship sponsor receiving financial assistance 19 under chapter 15B 84D or section 15C.1 84E.1 is ineligible to 20 receive financial assistance under this section during the same 21 fiscal year. An apprenticeship sponsor who trains through 22 a lead apprenticeship sponsor that qualifies for financial 23 assistance under chapter 15B 84D is ineligible to receive 24 financial assistance under this section . 25 Sec. 11. Section 22.7, subsection 31, Code 2023, is amended 26 to read as follows: 27 31. Memoranda, work products, and case files of a mediator 28 and all other confidential communications in the possession of 29 a mediator, as provided in chapters 86 chapter 10A, subchapter 30 III, and chapter 216 . Information in these confidential 31 communications is subject to disclosure only as provided in 32 sections 86.44 10A.332 and 216.15B , notwithstanding any other 33 contrary provision of this chapter . 34 Sec. 12. Section 92.5, subsection 11, Code 2023, is amended 35 -4- LSB 1020YC (9) 90 ns/jh 4/ 16

H.F. _____ to read as follows: 1 11. Other work approved by the rules adopted pursuant to 2 chapter 17A by the labor commissioner director . 3 Sec. 13. Section 100D.3, subsection 1, paragraph c, Code 4 2023, as amended by 2023 Iowa Acts, Senate File 514, section 5 1519, is amended to read as follows: 6 c. Has received a passing score on the national inspection, 7 testing, and certification star fire sprinkler mastery 8 exam or on an equivalent exam from a nationally recognized 9 third-party testing agency that is approved by the director, 10 or is certified at level one by the national institute for 11 certification in engineering technologies and as specified 12 by rule by the director, or is certified by another entity 13 approved by the fire marshal director . 14 Sec. 14. Section 101.22, subsection 4, Code 2023, as amended 15 by 2023 Iowa Acts, Senate File 514, section 1534, is amended 16 to read as follows: 17 4. The registration notice of the owner or operator to the 18 director under subsections 1 through 3 shall be accompanied 19 by an annual fee of twenty dollars for each tank included in 20 the notice. All moneys collected shall be retained by the 21 department of inspections, appeals, and licensing and are 22 appropriated for the use of the director. The annual renewal 23 fee applies to all owners or operators who file a registration 24 notice with the state fire marshal director pursuant to 25 subsections 1 through 3 . 26 Sec. 15. Section 101.24, subsection 4, paragraph a, Code 27 2023, as amended by 2023 Iowa Acts, Senate File 514, section 28 1536, is amended to read as follows: 29 a. If the owner or operator of any property refuses 30 admittance, or if prior to such refusal the director 31 demonstrates the necessity for a warrant, the state fire 32 marshal director may make application under oath or affirmation 33 to the district court of the county in which the property is 34 located for the issuance of a search warrant. 35 -5- LSB 1020YC (9) 90 ns/jh 5/ 16

H.F. _____ Sec. 16. Section 101A.1, subsection 2A, paragraph c, 1 subparagraph (4), as enacted by 2023 Iowa Acts, House File 202, 2 section 2, is amended to read as follows: 3 (4) Any device the state fire marshal director determines is 4 not likely to be used as a weapon or that is an antique. 5 Sec. 17. Section 103.14, Code 2023, as amended by 2023 6 Iowa Acts, Senate File 514, section 1562, is amended to read 7 as follows: 8 103.14 Alarm installations. 9 A person who is not licensed pursuant to this chapter may 10 plan, lay out, or install electrical wiring, apparatus, and 11 equipment for components of alarm systems that operate at 12 seventy volt/amps (VA) or less, only if the person is certified 13 to conduct such work pursuant to chapter 100C . Installations 14 of alarm systems that operate at seventy volt/amps (VA) or less 15 are subject to inspection by state inspectors as provided in 16 section 103.31 , except that reports of such inspections, if 17 the installation being inspected was performed by a person 18 certified pursuant to chapter 100C , shall be submitted to the 19 director and any action taken on a report of an inspection 20 of an installation performed by a person certified pursuant 21 to chapter 100C shall be taken by or at the direction of the 22 state fire marshal director , unless the installation has been 23 found to exceed the authority granted to the certificate holder 24 pursuant to chapter 100C and therefore to be in violation of 25 this chapter . 26 Sec. 18. Section 135.11A, subsection 1, Code 2023, as 27 amended by 2023 Iowa Acts, Senate File 514, section 1580, is 28 amended to read as follows: 29 1. Each board under chapters chapter 100C, 103, 103A, 30 105, or 147 that are is under the administrative authority 31 of the department, except the board of nursing, board of 32 medicine, dental board, and board of pharmacy, shall receive 33 administrative and clerical support from the department and 34 may not employ its own support staff for administrative and 35 -6- LSB 1020YC (9) 90 ns/jh 6/ 16

H.F. _____ clerical duties. The executive director of the board of 1 nursing, board of medicine, dental board, and board of pharmacy 2 shall be appointed pursuant to section 135.11B . 3 Sec. 19. Section 135B.34, subsection 7, Code 2023, as 4 amended by 2023 Iowa Acts, Senate File 514, section 166, is 5 amended to read as follows: 6 7. For the purposes of this section , “comprehensive 7 preliminary background check” and “record check evaluation 8 system” mean : 9 a. “Comprehensive preliminary background check” means the 10 same as defined in section 135C.1 . 11 b. “Record check evaluation system” means the same as 12 defined in section 135C.1. 13 Sec. 20. Section 135R.1, subsection 2, as enacted by 2023 14 Iowa Acts, Senate File 75, section 22, is amended to read as 15 follows: 16 2. “Department” means the department of inspections , and 17 appeals , and licensing . 18 Sec. 21. Section 156.1A, Code 2023, as amended by 2023 19 Iowa Acts, Senate File 514, section 1632, is amended to read 20 as follows: 21 156.1A Provision of services. 22 Nothing contained in this chapter shall be construed 23 as prohibiting the operation of any funeral home, funeral 24 establishment, or cremation establishment by any person, 25 heir, fiduciary, firm, cooperative burial association, or 26 corporation. However, each such person, firm, cooperative 27 burial association, or corporation shall ensure that all 28 mortuary science services are provided by a funeral director, 29 and shall keep the Iowa department of inspections, appeals, and 30 licensing advised of the name of the funeral director. 31 Sec. 22. Section 249K.2, subsection 6, Code 2023, as amended 32 by 2023 Iowa Acts, Senate File 514, section 820, is amended to 33 read as follows: 34 5. “New construction” means the construction of a new 35 -7- LSB 1020YC (9) 90 ns/jh 7/ 16

H.F. _____ nursing facility which does not replace an existing licensed 1 and certified facility and requires the provider to obtain a 2 certificate of need pursuant to chapter 135 10A , subchapter VI 3 VII . 4 Sec. 23. Section 252D.16, subsection 1, as enacted by 2023 5 Iowa Acts, Senate File 514, section 882, is amended to read as 6 follows: 7 1. “Child support services” means the same as child 8 supported support services created in section 252B.2. 9 Sec. 24. Section 252E.1, subsection 5, as enacted by 2023 10 Iowa Acts, Senate File 514, section 895, is amended to read as 11 follows: 12 5. “Child support services” means child support services 13 created in section 252B.1 252B.2 . 14 Sec. 25. Section 256.11, subsection 5A, paragraph a, if 15 enacted by 2023 Iowa Acts, Senate File 391, section 14, is 16 amended to read as follows: 17 a. The board of directors of a school district or the 18 authorities in charge of an accredited nonpublic school may 19 authorize a teacher who is appropriately licensed by the board 20 of educational examiners under chapter 272 to teach two or more 21 sequential units of one subject area in the same classroom at 22 the same time in grades nine through twelve. The board of 23 directors of a school district or the authorities in charge 24 of an accredited nonpublic school shall award high school 25 credit to a student upon the student’s successful completion of 26 the course. The teacher must meet the minimum certification 27 requirements of the national organization that administers the 28 advanced placement program if one of the units being offered 29 pursuant to this paragraph is an advanced placement course. 30 Sec. 26. Section 261G.4, subsection 5, Code 2023, as amended 31 by 2023 Iowa Acts, Senate File 514, section 2640, is amended 32 to read as follows: 33 5. Students attending a participating nonresident 34 institution are ineligible for state student financial aid 35 -8- LSB 1020YC (9) 90 ns/jh 8/ 16

H.F. _____ programs established under chapter 256, subchapter VII, part 4 . 1 Sec. 27. Section 303.3B, subsection 3, Code 2023, as amended 2 by 2023 Iowa Acts, Senate File 514, section 2087, is amended 3 to read as follows: 4 3. The authority shall encourage development projects and 5 activities located in certified cultural and entertainment 6 districts through incentives under cultural grant programs 7 pursuant to section 303.3 15.436 , subchapter II, part 30 , and 8 any other applicable grant programs. 9 Sec. 28. Section 546.10, subsection 3, paragraph a, Code 10 2023, as amended by 2023 Iowa Acts, Senate File 514, section 11 1704, is amended to read as follows: 12 a. The licensing and regulation examining boards included 13 in the bureau department pursuant to subsection 1 retain the 14 powers granted them pursuant to the chapters in which they are 15 created, except for budgetary and personnel matters which shall 16 be handled by the director. Each licensing board shall adopt 17 rules pursuant to chapter 17A . Decisions by a licensing board 18 are final agency actions for purposes of chapter 17A . 19 Sec. 29. Section 727.2, subsection 3, paragraph d, as 20 enacted by 2023 Iowa Acts, House File 202, section 7, is 21 amended to read as follows: 22 d. Any retailer or community group offering for sale 23 at retail any consumer fireworks shall do so in accordance 24 with the national fire protection association standard 1124, 25 published in the code for the manufacture, transportation, 26 storage, and retail sales of fireworks and pyrotechnic 27 articles, 2006 edition, and shall not be subject to any other 28 standards or requirements unless provided for by the state fire 29 marshal director of the department of inspections, appeals, and 30 licensing under section 100.19 10A.519 . 31 Sec. 30. 2015 Iowa Acts, chapter 138, section 97, as amended 32 by 2023 Iowa Acts, Senate File 514, section 1710, is amended 33 to read as follows: 34 SEC. 97. RESIDENTIAL SWIMMING POOLS —— PRIVATE SWIMMING 35 -9- LSB 1020YC (9) 90 ns/jh 9/ 16

H.F. _____ LESSONS. Notwithstanding any provision of law to the contrary, 1 the department of inspections, appeals, and licensing shall 2 require that a residential swimming pool used for private 3 swimming lessons for up to two hundred seven hours in a 4 calendar month, or the number of hours prescribed by local 5 ordinance applicable to such use of a residential swimming 6 pool, whichever is greater, be regulated as a residential 7 swimming pool used for commercial purposes pursuant to chapter 8 135I . The department of public health inspections, appeals, 9 and licensing may adopt rules to implement this section. 10 Sec. 31. 2021 Iowa Acts, chapter 45, section 5, is amended 11 to read as follows: 12 SEC. 5. APPLICABILITY. This Act applies to financial 13 assistance provided by the economic development authority to 14 apprenticeship sponsors and lead apprenticeship sponsors that 15 apply for financial assistance on or after July 1, 2021. 16 Sec. 32. 2023 Iowa Acts, Senate File 514, section 2605, is 17 amended to read as follows: 18 SEC. 2605. APPLICABILITY. This portion of this division 19 of this Act applies to individuals appointed as the executive 20 director of the board of educational examiners before, on, or 21 after the effective date of this division of this Act. 22 Sec. 33. 2023 Iowa Acts, Senate File 514, section 2643, is 23 amended to read as follows: 24 SEC. 2643. APPLICABILITY. This portion of this division 25 of this Act applies to individuals appointed as the executive 26 director of the college student aid commission before, on, or 27 after the effective date of this division of this Act. 28 MISCELLANEOUS CORRECTIONS 29 Sec. 34. Section 12K.1, subsection 4, paragraph j, if 30 enacted by 2023 Iowa Acts, Senate File 418, section 4, is 31 amended by striking the paragraph. 32 Sec. 35. Section 12K.1, if enacted by 2023 Iowa Acts, Senate 33 File 418, section 4, is amended by adding the following new 34 subsection: 35 -10- LSB 1020YC (9) 90 ns/jh 10/ 16

H.F. _____ NEW SUBSECTION . 5. “Public fund” means the treasurer of 1 state, the state board of regents, the public safety peace 2 officers’ retirement system created in chapter 97A, the Iowa 3 public employees’ retirement system created in chapter 97B, the 4 statewide fire and police retirement system created in chapter 5 411, or the judicial retirement system created in chapter 602. 6 Sec. 36. 2023 Iowa Acts, Senate File 418, if enacted, is 7 amended by adding the following new section: 8 NEW SECTION . SEC. 9A. Section 35A.13, subsection 4, 9 paragraph a, Code 2023, is amended to read as follows: 10 a. Notwithstanding subsection 5 , moneys in the fund, except 11 so much of the fund as may be necessary to be kept on hand 12 for the making of disbursements under this section , shall 13 be invested by the treasurer of state, in consultation with 14 the commission and the public retirement systems committee 15 established by section 97D.4 , in any investments authorized for 16 the Iowa public employees’ retirement system in section 97B.7A , 17 including common stock, and subject to the requirements of 18 chapters 12F , 12H , and 12J , and 12K, and the earnings therefrom 19 shall be credited to the fund. The treasurer of state may 20 execute contracts and agreements with investment advisors, 21 consultants, and investment management and benefit consultant 22 firms in the administration of investments of moneys in the 23 fund. 24 Sec. 37. Section 135B.1, subsection 5, as enacted by 2023 25 Iowa Acts, Senate File 75, section 1, is amended to read as 26 follows: 27 5. “Rural emergency hospital” means a facility that provides 28 rural emergency hospital services in the facility twenty-four 29 hours per day, seven days per week; does not provide any acute 30 care inpatient services with the exception of any distinct 31 part of the facility licensed as a skilled nursing facility 32 providing posthospital extended care services; and meets the 33 criteria specified in section 135B.1A 135B.3A and the federal 34 Consolidated Appropriations Act, Pub. L. No. 116-260, §125. 35 -11- LSB 1020YC (9) 90 ns/jh 11/ 16

H.F. _____ Sec. 38. Section 135R.3, subsections 1 and 2, as enacted by 1 2023 Iowa Acts, Senate File 75, section 24, are amended to read 2 as follows: 3 1. An applicant for an ambulatory surgical center license 4 shall submit an application to the department. Applications 5 shall be upon such forms and shall include such information 6 as the department may reasonably require, which may include 7 affirmative evidence of the ability to comply with reasonable 8 rules and standards prescribed under this chapter but which 9 shall not exceed the requirements for applications required by 10 Medicare or an accrediting organization with deeming authority 11 authorized by the centers for Medicare and Medicaid services of 12 the United States department of health and human services. 13 2. An applicant for an initial ambulatory surgical center 14 license that has been certified by Medicare or an accrediting 15 organization with deeming authority authorized by the centers 16 for Medicare and Medicaid services of the United States 17 department of health and human services shall be granted an 18 initial license. 19 Sec. 39. Section 147.164, subsection 2, paragraph a, 20 unnumbered paragraph 1, as enacted by 2023 Iowa Acts, Senate 21 File 538, section 1, is amended to read as follows: 22 Except as otherwise provided in paragraph “c” , a health 23 care professional shall not knowingly engage in or cause any 24 of the following practices to be performed on a minor if the 25 practice is performed for the purpose of attempting to alter 26 the appearance of, or affirm the minor’s perception of, the 27 minor’s gender or sex, if that appearance or perception is 28 inconsistent with the minor’s sex . : 29 Sec. 40. Section 476.1A, subsection 6, paragraph c, if 30 enacted by 2023 Iowa Acts, House File 599, section 1, is 31 amended to read as follows: 32 c. “Safety standards” means applicable regulations 33 promulgated by the United States occupational safety and health 34 administration and by Iowa occupational safety and health 35 -12- LSB 1020YC (9) 90 ns/jh 12/ 16

H.F. _____ by the administration the labor commissioner under chapter 1 88 . Safety standards for electric utilities subject to this 2 section also include outage notifications, safety standards 3 contained in the national electric safety code, as published 4 by the institute of electrical and electronic engineers, inc., 5 and electric safety standards approved by the American national 6 standards institute. 7 Sec. 41. Section 521J.7, subsection 1, paragraph b, 8 subparagraph (1), if enacted by 2023 Iowa Acts, Senate File 9 549, section 10, is amended to read as follows: 10 (1) Subject to subparagraph (2), the captive’s company 11 captive company’s report shall be filed no later than ninety 12 calendar days after the close of the company’s fiscal year. 13 Sec. 42. Section 521J.19, subsection 3, unnumbered 14 paragraph 1, if enacted by 2023 Iowa Acts, Senate File 549, 15 section 22, is amended to read as follows: 16 Notwithstanding chapter 507C or any other provision to of 17 law to the contrary, in the conservation, rehabilitation, or 18 liquidation of a protected cell captive company, all of the 19 following requirements shall be met: 20 Sec. 43. Section 533C.305, subsection 4, if enacted by 2023 21 Iowa Acts, House File 675, section 14, is amended to read as 22 follows: 23 4. If an applicant avails itself or is otherwise subject 24 to a multistate licensing process, the superintendent is 25 authorized and encouraged to accept the investigation results 26 of a lead investigative state for the purpose of subsection 27 3, if the lead investigative state has sufficient staffing, 28 expertise, and minimum standards. Additionally, if this 29 state is a lead investigative state, the superintendent is 30 authorized and encouraged to investigate the applicant pursuant 31 to subsection 3, and the time frames established by agreement 32 through the multistate licensing process, provided, that in no 33 case shall such time frame be noncompliant with the application 34 period in subsection 1 , paragraph “a” . 35 -13- LSB 1020YC (9) 90 ns/jh 13/ 16

H.F. _____ Sec. 44. Section 533C.804, subsection 1, paragraph m, 1 subparagraph (1), subparagraph division (d), if enacted by 2023 2 Iowa Acts, House File 675, section 35, is amended to read as 3 follows: 4 (d) Contain an issue date and expiration date, and expressly 5 provide for automatic extension, without written amendment, 6 for an additional period of one year from the present or each 7 future expiration date, unless the issuer of the letter of 8 credit notifies the superintendent in writing by certified 9 or registered mail or courier mail or other receipted means, 10 at least sixty days prior to any expiration date, that the 11 irrevocable letter of credit shall not be extended. In the 12 event of any notice of expiration or nonextension of a letter 13 of credit issued under this subparagraph division, the licensee 14 shall be required to demonstrate to the satisfaction of the 15 superintendent, fifteen days prior to expiration, that the 16 licensee maintains and will maintain permissible investments 17 in accordance with section 533C.803, subsection 1, upon the 18 expiration of the letter of credit. If the licensee is not 19 able to do so, the superintendent may draw on the letter of 20 credit in an amount up to the amount necessary to meet the 21 licensee’s requirements to maintain permissible investments 22 in accordance with section 533C.803, subsection 1. Any 23 such draw shall be offset against the licensee’s outstanding 24 money transmission obligations. The drawn funds shall be 25 held in trust by the superintendent or the superintendent’s 26 designated agent, to the extent authorized by law, as agent for 27 the benefit of the purchasers and holders of the licensee’s 28 outstanding money transmission obligations. 29 Sec. 45. Section 544C.1, subsection 1A, if enacted by 2023 30 Iowa Acts, Senate File 135, section 1, is amended to read as 31 follows: 32 NEW SUBSECTION . 1A. “Building equipment” means any 33 mechanical , plumbing, electrical, or structural components, 34 including a conveyance, designed for or located in a building 35 -14- LSB 1020YC (9) 90 ns/jh 14/ 16

H.F. _____ or structure. 1 Sec. 46. CODE EDITOR DIRECTIVE. If House File 421 and House 2 File 652 are both enacted by the first session of the 90th 3 General Assembly, the Code editor shall change the term “barber 4 school or school of cosmetology arts and sciences” to “school 5 of barbering and cosmetology arts and sciences” wherever the 6 term is enacted in House File 421. 7 Sec. 47. EFFECTIVE DATE. The following, being deemed of 8 immediate importance, take effect upon enactment: 9 1. The section of this division of this Act amending section 10 135B.1, subsection 5. 11 2. The section of this division of this Act amending section 12 147.164, subsection 2, paragraph “a”, unnumbered paragraph 1. 13 Sec. 48. RETROACTIVE APPLICABILITY. The following applies 14 retroactively to March 28, 2023: 15 The section of this division of this Act amending section 16 135B.1, subsection 5. 17 Sec. 49. APPLICABILITY. The following applies one hundred 18 eighty days after March 22, 2023: 19 The section of this division of this Act amending section 20 147.164, subsection 2, paragraph “a”, unnumbered paragraph 1. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 25 AUTHORITY. This bill limits the standing appropriations for 26 FY 2023-2024 for payment of claims for nonpublic school pupil 27 transportation, instructional support state aid, state aid for 28 area education agencies, and payments under Code section 441.21 29 relating to certain property assessment limitations. The bill 30 authorizes salary adjustments to be funded as determined by the 31 department of management (DOM) from unappropriated moneys in 32 certain special funds. 33 The bill provides that for FY 2022-2023, moneys in excess 34 of the maximum balance of the Iowa economic emergency fund 35 -15- LSB 1020YC (9) 90 ns/jh 15/ 16

H.F. _____ shall not be distributed as provided in Code section 8.55(2), 1 but shall instead be distributed as provided in the bill. 2 Under the bill, moneys are first transferred to the general 3 fund of the state in an amount equal to the difference in 4 foundation property tax statewide based on 2023 Iowa Acts, 5 Senate File 181, to pay foundation aid under Code chapter 257 6 for FY 2023-2024. The amount that would be distributed to 7 the taxpayer relief fund under current law is reduced by the 8 transferred amount. The transferred amount is to be determined 9 by DOM. These provisions take effect upon enactment. 10 CORRECTIVE PROVISIONS. The bill makes technical corrections 11 to, or as the result of, legislation enacted or considered 12 during the 2023 legislative session. Certain provisions take 13 effect upon enactment and apply retroactively to the effective 14 date of the amended legislation. 15 -16- LSB 1020YC (9) 90 ns/jh 16/ 16