Senate Study Bill 1227 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SODDERS) A BILL FOR An Act relating to statutory corrections which may adjust 1 language to reflect current practices, insert earlier 2 omissions, delete redundancies and inaccuracies, delete 3 temporary language, resolve inconsistencies and conflicts, 4 update ongoing provisions, or remove ambiguities, and 5 including effective date and retroactive applicability 6 provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 2080SC (28) 86 lh/rj

S.F. _____ DIVISION I 1 MISCELLANEOUS CHANGES 2 Section 1. Section 8A.315, subsection 5, Code 2015, is 3 amended to read as follows: 4 5. Information on recycled content shall be requested on all 5 bids for paper products other than printing and writing paper 6 issued by the state and on other bids for products which could 7 have recycled content such as oil, plastic products, including 8 but not limited to compost materials, aggregate, solvents, 9 soybean-based inks, and rubber products. Except for purchases 10 of printing and writing paper made pursuant to subsection 2 , 11 paragraphs “c” and , “d” , and “e” , the department shall require 12 persons submitting bids for printing and writing paper to 13 certify that the printing and writing paper proposed complies 14 with the requirements referred to in subsection 2 , paragraph 15 “a” . 16 Sec. 2. Section 8A.504, subsection 2, paragraph b, Code 17 2015, is amended to read as follows: 18 b. Before setoff, the public agency shall obtain and forward 19 to the collection entity the full name and social security 20 number of the person liable to it the public agency or to whom 21 a claim is owing who is a natural person. If the person is 22 not a natural person, before setoff, the public agency shall 23 forward to the collection entity the information concerning the 24 person as the collection entity shall, by rule, require. The 25 collection entity shall cooperate with other public agencies in 26 the exchange of information relevant to the identification of 27 persons liable to or claimants of public agencies. However, 28 the collection entity shall provide only relevant information 29 required by a public agency. The information shall be held in 30 confidence and used for the purpose of setoff only. Section 31 422.72, subsection 1 , does not apply to this paragraph. 32 Sec. 3. Section 12B.10, subsection 5, paragraph a, 33 subparagraphs (6) and (7), Code 2015, are amended to read as 34 follows: 35 -1- LSB 2080SC (28) 86 lh/rj 1/ 140

S.F. _____ (6) An open-end management investment company registered 1 with the federal securities and exchange commission under the 2 federal Investment Company Act of 1940, 15 U.S.C. §80a §80a-1 , 3 and operated in accordance with 17 C.F.R. §270.2a-7. 4 (7) A joint investment trust organized pursuant to chapter 5 28E prior to and existing in good standing on the effective 6 date of this Act or a joint investment trust organized pursuant 7 to chapter 28E after April 28, 1992, provided that the joint 8 investment trust shall either be rated within the two highest 9 classifications by at least one of the standard rating services 10 approved by the superintendent of banking by rule adopted 11 pursuant to chapter 17A and operated in accordance with 17 12 C.F.R. §270.2a-7, or be registered with the federal securities 13 and exchange commission under the federal Investment Company 14 Act of 1940, 15 U.S.C. §80a §80a-1 , and operated in accordance 15 with 17 C.F.R. §270.2a-7. The manager or investment advisor of 16 the joint investment trust shall be registered with the federal 17 securities and exchange commission under the Investment Advisor 18 Act of 1940, 15 U.S.C. §80b §80b-1 . 19 Sec. 4. Section 12B.10, subsection 6, paragraph l, Code 20 2015, is amended to read as follows: 21 l. Investments in a qualified trust established pursuant 22 to governmental accounting standards board statement number 23 forty-three that is governed by a board of trustees of a joint 24 investment trust organized pursuant to chapter 28E and that is 25 registered with the federal securities and exchange commission 26 under the federal Investment Company Act of 1940, 15 U.S.C. 27 §80a §80a-1 . 28 Sec. 5. Section 12B.10C, subsection 2, Code 2015, is amended 29 to read as follows: 30 2. As used in this section , “public funds custodial 31 agreement” means any contractual arrangement pursuant to 32 which one or more persons, including but not limited to 33 investment advisors, investment companies, trustees, agents 34 and custodians, are authorized to act as a custodian of or to 35 -2- LSB 2080SC (28) 86 lh/rj 2/ 140

S.F. _____ designate another person to act as a custodian of public funds 1 or any security or document of ownership or title evidencing 2 public funds investments other than custodial agreements 3 between an open-end management investment company registered 4 with the federal securities and exchange commission under the 5 federal Investment Company Act of 1940, 15 U.S.C. §80a §80a-1 6 and a custodian bank. 7 Sec. 6. Section 13.2, subsection 1, paragraph p, Code 2015, 8 is amended to read as follows: 9 p. Submit a report by January 15 of each year to the 10 co-chairpersons and ranking members of the joint appropriations 11 subcommittee on the justice system, to the executive council, 12 and to the legislative services agency detailing the amount 13 of annual money receipts generated by each settlement or 14 judgment in excess of two hundred fifty thousand dollars 15 collected pursuant to legal proceedings under chapters 455B , 16 553 , and 714 . The report shall include the name of the 17 civil or criminal case involved, the court of jurisdiction, 18 the settlement amount, including the state’s share of the 19 settlement amount , the name of the fund in which the receipts 20 were deposited, and the planned use of the moneys. 21 Sec. 7. Section 13.32, subsection 1, paragraph a, 22 subparagraphs (1) and (2), Code 2015, are amended to read as 23 follows: 24 (1) A mission statement and table of organization of the 25 department of justice relating to the victim assistance grant 26 programs, a program summary , and statistics, including but not 27 limited to sources and uses of funds and the numbers of victims 28 served. 29 (2) An itemization of out-of-state travel expenses incurred 30 by an employee of the department of justice and an itemization 31 of such travel expenses paid to a contractor. 32 Sec. 8. Section 13C.1, Code 2015, is amended by adding the 33 following new unnumbered paragraph before subsection 1: 34 NEW UNNUMBERED PARAGRAPH . As used in this chapter, unless 35 -3- LSB 2080SC (28) 86 lh/rj 3/ 140

S.F. _____ the context otherwise requires: 1 Sec. 9. Section 15.105, subsection 1, paragraph a, 2 subparagraph (1), subparagraph division (a), Code 2015, is 3 amended to read as follows: 4 (a) Two members from each United States congressional 5 district established under section 40.1 in the state. 6 Sec. 10. Section 15.294, subsection 4, Code 2015, is amended 7 by striking the subsection. 8 Sec. 11. Section 15.333, subsection 2, unnumbered paragraph 9 1, Code 2015, is amended to read as follows: 10 For purposes of this subsection section , “new investment 11 directly related to new jobs created by the project” means the 12 cost of machinery and equipment, as defined in section 427A.1, 13 subsection 1 , paragraphs “e” and “j” , purchased for use in 14 the operation of the eligible business, the purchase price 15 of which has been depreciated in accordance with generally 16 accepted accounting principles, the purchase price of real 17 property and any buildings and structures located on the real 18 property, and the cost of improvements made to real property 19 which is used in the operation of the eligible business. “New 20 investment directly related to new jobs created by the project” 21 also means the annual base rent paid to a third-party developer 22 by an eligible business for a period not to exceed ten years, 23 provided the cumulative cost of the base rent payments for that 24 period does not exceed the cost of the land and the third-party 25 developer’s costs to build or renovate the building for the 26 eligible business. The eligible business shall enter into a 27 lease agreement with the third-party developer for a minimum 28 of five years. If, however, within five years of purchase, 29 the eligible business sells, disposes of, razes, or otherwise 30 renders unusable all or a part of the land, buildings, or other 31 existing structures for which tax credit was claimed under this 32 section , the tax liability of the eligible business for the 33 year in which all or part of the property is sold, disposed of, 34 razed, or otherwise rendered unusable shall be increased by one 35 -4- LSB 2080SC (28) 86 lh/rj 4/ 140

S.F. _____ of the following amounts: 1 Sec. 12. Section 16.1A, subsection 2, paragraph b, Code 2 2015, is amended to read as follows: 3 b. Programs established by the authority which the authority 4 finds useful and convenient to further goals of the authority 5 and which are consistent with the legislative findings. Such 6 programs shall be administered in accordance with section 16.4 7 subchapter III . Such additional programs shall be administered 8 in accordance with rules, if any, which the authority 9 determines useful and convenient to adopt pursuant to chapter 10 17A . 11 Sec. 13. Section 16.2A, Code 2015, is amended to read as 12 follows: 13 16.2A Title guaranty division —— board. 14 1. A title guaranty division is created within the 15 authority. The division may also be referred to as Iowa title 16 guaranty. The powers of the division relating to the issuance 17 of title guaranties are vested in and shall be exercised by a 18 title guaranty division board of five members appointed by the 19 governor subject to confirmation by the senate. The membership 20 of the title guaranty division board shall include an attorney, 21 an abstractor, a real estate broker, a representative of a 22 lending institution that engages in mortgage lending, and 23 a representative of the housing development industry. The 24 executive director of the authority shall appoint an attorney 25 as director of the title guaranty division, who shall serve 26 as an ex officio member of the title guaranty division board. 27 The appointment of and compensation for the division director 28 are exempt from the merit system provisions of chapter 8A, 29 subchapter IV . 30 2. Members of the title guaranty division board shall be 31 appointed by the governor for staggered terms of six years 32 beginning and ending as provided in section 69.19 . A person 33 shall not serve on the title guaranty division board while 34 serving on the authority board. A person appointed to fill 35 -5- LSB 2080SC (28) 86 lh/rj 5/ 140

S.F. _____ a vacancy shall serve only for the unexpired portion of the 1 term. A member is eligible for reappointment. A member of the 2 title guaranty division board may be removed from office by the 3 governor for misfeasance, malfeasance, or willful neglect of 4 duty or for other just cause, after notice and hearing, unless 5 notice and hearing is expressly waived in writing. 6 3. Three members of the title guaranty division board shall 7 constitute a quorum. An affirmative vote of a majority of the 8 appointed members is necessary for any substantive action taken 9 by the division. 10 4. Members of the title guaranty division board are entitled 11 to receive a per diem as specified in section 7E.6 for each 12 day spent in performance of duties as members and shall be 13 reimbursed for all actual and necessary expenses incurred in 14 the performance of duties as members. 15 5. Members of the title guaranty division board and the 16 executive director shall give bond as required for public 17 officers in chapter 64 . 18 6. Meetings of the title guaranty division board shall be 19 held at the call of the chair of the title guaranty division 20 board or on written request of two members. 21 7. Members shall elect a chair and vice chair annually and 22 other officers as they determine. The executive director shall 23 serve as secretary to the title guaranty division board. 24 8. The net earnings of the division, beyond that necessary 25 for reserves, backing, guaranties issued, or to otherwise 26 implement the public purposes and programs authorized, shall 27 not inure to the benefit of any person other than the state and 28 are subject to section 16.2, subsection 8 . 29 Sec. 14. Section 16.2B, subsection 3, paragraph b, Code 30 2015, is amended to read as follows: 31 b. Obtain agricultural assets transfer tax credits, 32 including by issuing tax credit certificates issued pursuant to 33 subchapter VIII, part 5 . 34 Sec. 15. Section 16.2D, subsection 1, Code 2015, is amended 35 -6- LSB 2080SC (28) 86 lh/rj 6/ 140

S.F. _____ to read as follows: 1 1. A council on homelessness is created consisting of 2 thirty-eight voting members. At all times, at least one voting 3 member at all times shall be a member of a minority group. 4 Sec. 16. Section 16.7, subsection 2, Code 2015, is amended 5 to read as follows: 6 2. The annual report shall contain at least three parts 7 which include all of the following: 8 a. A general description of the authority setting forth: 9 (1) Its operations Operations and accomplishments. 10 (2) Its receipts Receipts and expenditures during the 11 fiscal year, in accordance with the classifications it the 12 authority establishes for its operating and capital accounts. 13 (3) Its assets Assets and liabilities at the end of its 14 the fiscal year and the status of reserve, special, and other 15 funds. 16 (4) A schedule of its bonds and notes outstanding at the 17 end of its the fiscal year, together with a statement of the 18 amounts redeemed and issued during its the fiscal year. 19 (5) A statement of its proposed and projected activities. 20 (6) Recommendations to the general assembly, as it the 21 authority deems necessary. 22 (7) Performance goals of the authority, clearly indicating 23 the extent of progress during the reporting period in attaining 24 the goals. 25 b. A summary of housing programs administered under this 26 chapter . The summary shall include an analysis of current 27 housing needs in this state. Where possible, results shall be 28 expressed in terms of housing units. 29 c. A summary of agricultural development programs 30 administered under subchapter VIII . Where possible, findings 31 and results shall be expressed in terms of number of loans, tax 32 credits, participating qualified beginning farmers, and acres 33 of agricultural land, including by county. 34 Sec. 17. Section 16.16, subsection 3, Code 2015, is amended 35 -7- LSB 2080SC (28) 86 lh/rj 7/ 140

S.F. _____ to read as follows: 1 3. The treasurer of state shall not be subject to personal 2 liability resulting from carrying out the powers and duties 3 of the authority or the treasurer of state, as applicable, in 4 subchapter X, part 15 9 . 5 Sec. 18. Section 16.17, Code 2015, is amended to read as 6 follows: 7 16.17 Rules. 8 1. The authority shall adopt pursuant to chapter 17A all 9 rules necessary to administer this chapter . 10 2. The authority may adopt rules which establish by 11 rule further definitions applicable to this chapter , and 12 clarification of clarify the definitions in this chapter , as it 13 the authority deems convenient and necessary to carry out the 14 public purposes of this chapter including all the following: 15 a. Any rules necessary to assure eligibility for funds 16 available under federal housing laws, or to assure compliance 17 with federal tax laws relating to the issuance of tax exempt 18 bonds pursuant to the Internal Revenue Code or relating to the 19 allowance of low-income credits under Internal Revenue Code 20 §42. 21 b. Any rule as necessary to assure eligibility for funds, 22 insurance, or guaranties available under federal laws and to 23 carry out the public purposes of subchapter VIII . 24 3. The authority may adopt rules pursuant to chapter 17A 25 relating to the purchase and sale of residential mortgage loans 26 and the sale of mortgage-backed securities. 27 Sec. 19. Section 16.26, subsection 6, Code 2015, is amended 28 to read as follows: 29 6. The authority may issue negotiable bond anticipation 30 notes and may renew them from time to time but the maximum 31 maturity of the notes, including renewals, shall not exceed 32 ten years from the date of issue of the original notes. Bond 33 anticipation notes are payable from any available moneys of the 34 authority not otherwise pledged, or from the proceeds of the 35 -8- LSB 2080SC (28) 86 lh/rj 8/ 140

S.F. _____ sale of bonds of the authority in anticipation of which the 1 bond anticipation notes were issued. Bond anticipation notes 2 may be issued for any corporate purpose of the authority. Bond 3 anticipation notes shall be issued in the same manner as bonds 4 and bond anticipation notes, and the resolution authorizing 5 them may contain any provisions, conditions, or limitations, 6 not inconsistent with the provisions of this subsection , which 7 the bonds or a bond resolution of the authority may contain. 8 Bond anticipation notes may be sold at public or private sale. 9 In case of default on its bond anticipation notes or violation 10 of any obligations of the authority to the noteholders, the 11 noteholders shall have all the remedies provided in this 12 chapter for bondholders. Bond anticipation notes shall be as 13 fully negotiable as bonds of the authority. 14 Sec. 20. Section 16.27A, Code 2015, is amended to read as 15 follows: 16 16.27A Powers relating to loans. 17 Subject to any agreement with bondholders or noteholders, 18 the authority may renegotiate a mortgage or secured loan or 19 a loan to a lending institution in default, waive a default 20 or consent to the modification of the terms of a mortgage or 21 secured loan or a loan to a lending institution, forgive or 22 forbear all or part of a mortgage or secured loan or a loan to 23 a lending institution, and commence, prosecute, and enforce 24 a judgment in any action, including but not limited to a 25 foreclosure action, to protect or enforce any right conferred 26 upon it by law, mortgage or secured loan agreement, contract , 27 or other agreement, and in connection with any action, bid for 28 and purchase the property or acquire or take possession of it, 29 complete, administer, pay the principal of and interest on 30 any obligations incurred in connection with the property, and 31 dispose of and otherwise deal with the property in a manner the 32 authority deems advisable to protect its interests. 33 Sec. 21. Section 16.50, subsection 3, paragraph b, 34 subparagraph (1), Code 2015, is amended to read as follows: 35 -9- LSB 2080SC (28) 86 lh/rj 9/ 140

S.F. _____ (1) Projects that are eligible for historic preservation 1 and cultural and entertainment district tax credits under 2 section 404A.2 chapter 404A . 3 Sec. 22. Section 16.59, unnumbered paragraph 1, Code 2015, 4 is amended to read as follows: 5 A low or moderate net worth requirement To receive financing 6 as provided in this subchapter , applies to an individual, 7 partnership, family farm corporation, or family farm limited 8 liability company shall meet the applicable low or moderate 9 net worth requirements established in this section . The 10 requirement as applied that applies to each such person is 11 calculated determined as follows: 12 Sec. 23. Section 16.64, subsection 1, Code 2015, is amended 13 to read as follows: 14 1. An The authority shall publish a notice of intention 15 to issue bonds or notes. After sixty days from the date of 16 publication of the notice, an action shall not be brought 17 questioning the legality of any bonds or notes or the power of 18 the authority to issue any bonds or notes or to the legality 19 of any proceedings in connection with the authorization or 20 issuance of the bonds or notes after determination by the board 21 of the authority to proceed with the issuance of the bonds or 22 notes sixty days from the date of publication of the notice . 23 Sec. 24. Section 16.76, subsections 1 and 2, Code 2015, are 24 amended to read as follows: 25 1. As used in this section , “loan” includes but is 26 not limited to mortgage or secured loans; loans insured, 27 guaranteed, or otherwise secured by the federal government or 28 a federal governmental agency or instrumentality, or a state 29 agency or private mortgage insurers; and financing pursuant to 30 an installment contract or contract for purchase arrangement. 31 2. The authority may make loans , including but not limited 32 to mortgage or secured loans, or loans insured, guaranteed, 33 or otherwise secured by the federal government or a federal 34 governmental agency or instrumentality, or a state agency or 35 -10- LSB 2080SC (28) 86 lh/rj 10/ 140

S.F. _____ private mortgage insurers, to beginning farmers to provide 1 financing for agricultural land and agricultural improvements 2 or depreciable agricultural property. 3 Sec. 25. Section 16.78, subsection 1, Code 2015, is amended 4 to read as follows: 5 1. To every extent practicable, the authority shall 6 administer tax credits under the beginning farmer tax credit 7 program in a uniform manner that encourages participation by 8 qualified beginning farmers. The authority shall determine a 9 qualified beginning farmer’s low or moderate net worth by using 10 a single method applicable to all its programs as provided 11 under section 16.59 , including the beginning farmer tax credit 12 program. 13 Sec. 26. Section 16.92, subsection 1, paragraph d, Code 14 2015, is amended to read as follows: 15 d. “Division board” means the board of directors of the 16 title guaranty division of the Iowa finance authority. 17 Sec. 27. Section 17A.5, subsection 2, paragraph b, Code 18 2015, is amended to read as follows: 19 b. (1) Subject to applicable constitutional or statutory 20 provisions, a rule becomes effective immediately upon filing 21 with the administrative rules coordinator, or at a subsequent 22 stated date prior to indexing and publication, or at a stated 23 date less than thirty-five days after filing, indexing and 24 publication, if the agency finds: 25 (1) (a) That a statute so provides; 26 (2) (b) That the rule confers a benefit or removes a 27 restriction on the public or some segment thereof; or 28 (3) (c) That this effective date is necessary because of 29 imminent peril to the public health, safety or welfare. 30 (2) In any subsequent action contesting the effective date 31 of a rule promulgated under this paragraph “b” , the burden 32 of proof shall be on the agency to justify its finding. The 33 agency’s finding and a brief statement of the reasons therefor 34 shall be filed with and made a part of the rule. Prior to 35 -11- LSB 2080SC (28) 86 lh/rj 11/ 140

S.F. _____ indexing and publication, the agency shall make reasonable 1 efforts to make known to the persons who may be affected by it a 2 rule made effective under the terms of this paragraph “b” . 3 Sec. 28. Section 28M.7, subsections 2 and 3, Code 2015, are 4 amended to read as follows: 5 2. A regional transit district may disclose aggregate data 6 on user and customer transaction history and fare card use 7 to government governmental entities, organizations, school 8 districts, educational institutions, and employers that 9 subsidize or provide fare cards to their clients, students, or 10 employees. Government Governmental entities, organizations, 11 school districts, educational institutions, and employers may 12 use the aggregate data only for purposes of measuring and 13 promoting fare card use and evaluating the cost-effectiveness 14 of their fare card programs. The disclosure of nonaggregate 15 or personalized data on user and customer transaction history 16 and fare card use to government governmental entities, 17 organizations, school districts, educational institutions, and 18 employers shall be strictly prohibited. 19 3. A regional transit district may disclose data concerning 20 applicants, users, and customers collected by or through 21 personalized internet services or a fare collection system to 22 another government governmental entity to prevent a breach 23 of security regarding electronic systems maintained by the 24 regional transit district or the governmental entity, or 25 pursuant to a subpoena issued in connection with a civil or 26 criminal investigation. 27 Sec. 29. Section 29B.116, Code 2015, is amended to read as 28 follows: 29 29B.116 General article. 30 Subject to section 29B.116A , though Though not specifically 31 mentioned in this code , and subject to section 29B.116A , all 32 disorders and neglects to the prejudice of good order and 33 discipline in the state military forces and all conduct of 34 a nature to bring discredit upon the state military forces, 35 -12- LSB 2080SC (28) 86 lh/rj 12/ 140

S.F. _____ of which persons subject to this code may be guilty, shall 1 be taken cognizance of by a general, special, or summary 2 court-martial, according to the nature and degree of the 3 offense, and shall be punished at the discretion of that court. 4 Sec. 30. Section 29B.116B, Code 2015, is amended to read as 5 follows: 6 29B.116B Adjutant general report. 7 The adjutant general shall report annually, by January 15, 8 to the governor and to the chairpersons and ranking members 9 of the general assembly’s standing committees on veterans 10 affairs on the number of offenses described in section 11 29B.116A, subsection 1 , which have been reported to civilian 12 law enforcement authorities in the prior year, if such offenses 13 were committed by a member of the state military forces against 14 another member of the state military forces while both are 15 subject to this code. The report shall provide such numbers 16 by type of offense. 17 Sec. 31. Section 43.16, Code 2015, is amended to read as 18 follows: 19 43.16 Return of papers, additions not allowed. 20 1. After a nomination paper has been filed, it shall not 21 be returned to the person who has filed the paper, nor shall 22 any signature or other information be added to the nomination 23 paper. 24 2. a. A person who has filed nomination petitions with the 25 state commissioner may withdraw as a candidate not later than 26 the seventy-sixth day before the primary election by notifying 27 the state commissioner in writing. 28 b. A person who has filed nomination papers with the 29 commissioner may withdraw as a candidate not later than the 30 sixty-seventh day before the primary election by notifying the 31 commissioner in writing. 32 3. The name of a candidate who has withdrawn or died at a 33 time in accordance with this section on or before the final day 34 to withdraw as a candidate for that office shall be omitted 35 -13- LSB 2080SC (28) 86 lh/rj 13/ 140

S.F. _____ from the certificate furnished by the state commissioner under 1 section 43.22 and omitted from the primary election ballot. 2 Sec. 32. Section 68A.405, subsection 1, paragraph a, 3 subparagraph (3), Code 2015, is amended to read as follows: 4 (3) “Published material” means any newspaper, magazine, 5 shopper, outdoor advertising facility, poster, direct mailing, 6 brochure, internet site, campaign sign, or any other form of 7 printed or electronic general public political advertising. 8 “Published material” includes television, video, or motion 9 picture advertising. 10 Sec. 33. Section 80B.5, subsection 1, Code 2015, is amended 11 to read as follows: 12 1. The administration of this chapter shall be vested in 13 the office of the governor. Except for the director and deputy 14 director of the academy, the staff as may be necessary for it 15 the academy to function shall be employed pursuant to the Iowa 16 merit system. 17 Sec. 34. Section 96.9, subsection 6, Code 2015, is amended 18 to read as follows: 19 6. Management of funds in the event of discontinuance of 20 unemployment trust fund. The provisions of subsections 1, 2, 21 and 3 to the extent that they relate to the unemployment trust 22 fund shall be operative only so long as such unemployment 23 trust fund continues to exist and so long as the secretary 24 of the treasury of the United States continues to maintain 25 for this state a separate book account of all funds deposited 26 therein by this state for benefit purposes, together with 27 this state’s proportionate share of the earnings of such 28 unemployment trust fund, from which no other state is permitted 29 to make withdrawals. If and when such unemployment trust fund 30 ceases to exist, or such separate book account is no longer 31 maintained, all moneys, properties, or securities therein, 32 belonging to the unemployment compensation fund of this state 33 shall be transferred to the treasurer of the unemployment 34 compensation fund, who shall hold, invest, transfer, sell, 35 -14- LSB 2080SC (28) 86 lh/rj 14/ 140

S.F. _____ deposit, and release such moneys, properties, or securities 1 in a manner approved by the director, treasurer of state, 2 and governor, in accordance with the provisions of this 3 chapter : Provided , provided that such moneys shall be invested 4 in the following such readily marketable classes of securities ; 5 such securities as are authorized by the laws of the state of 6 Iowa for the investment of trust funds. The treasurer shall 7 dispose of securities and other properties belonging to the 8 unemployment compensation fund only under the direction of the 9 director, treasurer of state, and governor. 10 Sec. 35. Section 96.14, subsection 4, Code 2015, is amended 11 to read as follows: 12 4. Priorities under legal dissolutions or distributions. In 13 the event of any distribution of an employer’s assets 14 pursuant to an order of any court under the laws of this 15 state, including any receivership, assignment for benefit of 16 creditors, adjudicated insolvency, composition, or similar 17 proceeding, contributions then or thereafter due shall be 18 paid in full prior to all other claims except taxes and 19 claims for wages preferred as provided by statute. In the 20 event of an employer’s adjudication in bankruptcy, judicially 21 confirmed extension proposal, or composition, under the 22 federal Bankruptcy Act of 1898, as amended, contributions then 23 or thereafter due shall be entitled to such priority as is 24 provided in section 64 “a” of that Act [11 U.S.C. §104 “b” , as 25 amended] , 11 U.S.C. §507 . 26 Sec. 36. Section 96.20, subsection 2, paragraph b, Code 27 2015, is amended to read as follows: 28 b. Reimbursements so payable shall be deemed to be benefits 29 for the purposes of section 96.3, subsection 5 , paragraph “a” , 30 and section 96.9 , but no reimbursement so payable shall be 31 charged against any employer’s account for the purposes of 32 section 96.7 , unless wages so transferred are sufficient to 33 establish a valid claim in Iowa, and that such charges shall 34 not exceed the amount that would have been charged on the 35 -15- LSB 2080SC (28) 86 lh/rj 15/ 140

S.F. _____ basis of a valid claim. The department is hereby authorized 1 to make to other state or federal agencies and receive from 2 such other state or federal agencies, reimbursements from or 3 to the fund, in accordance with arrangements pursuant to this 4 section . The department shall participate in any arrangements 5 for the payment of compensation on the basis of combining 6 an individual’s wages and employment covered under this Act 7 chapter with the individual’s wages and employment covered 8 under the unemployment compensation laws of other states 9 which are approved by the United States secretary of labor in 10 consultation with the state unemployment compensation agencies 11 as reasonably calculated to assure the prompt and full payment 12 of compensation in such situations and which include provisions 13 for applying the base period of a single state law to a claim 14 involving the combining of an individual’s wages and employment 15 covered under two or more state unemployment compensation laws, 16 and avoiding the duplication use of wages and employment by 17 reason of such combining. 18 Sec. 37. Section 99.27, Code 2015, is amended to read as 19 follows: 20 99.27 Mulct tax. 21 When a permanent injunction issues against any person for 22 maintaining a nuisance as herein defined in section 99.1A , or 23 against any owner or agent of the building kept or used for the 24 purpose prohibited by this chapter , there shall be imposed upon 25 said building and the ground upon which the same is located and 26 against the person or persons maintaining said the nuisance and 27 the owner or agent of said the premises, a mulct tax of three 28 hundred dollars. The imposing of said the mulct tax shall be 29 made by the court as a part of the proceeding. 30 Sec. 38. Section 105.18, subsection 3, paragraph d, Code 31 2015, is amended to read as follows: 32 d. An individual that holds either a master or 33 journeyperson mechanical license or a master or journeyperson 34 HVAC-refrigeration license shall be exempt from having to 35 -16- LSB 2080SC (28) 86 lh/rj 16/ 140

S.F. _____ obtain a special electrician’s license pursuant to chapter 103 1 in order to perform disconnect and reconnect of existing air 2 conditioning and refrigeration systems. 3 Sec. 39. Section 123.5, Code 2015, is amended to read as 4 follows: 5 123.5 Alcoholic beverages commission created —— appointment 6 —— removal —— vacancies . 7 1. An alcoholic beverages commission is created within the 8 division. The commission is composed of five members, not more 9 than three of whom shall belong to the same political party. 10 2. Members shall be appointed by the governor, subject 11 to confirmation by the senate. Appointments shall be for 12 five-year staggered terms beginning and ending as provided by 13 section 69.19. A member may be reappointed for one additional 14 term. 15 3. Members of the commission shall be chosen on the basis 16 of managerial ability and experience as business executives. 17 Not more than two members of the commission may be the holder 18 of or have an interest in a permit or license to manufacture 19 alcoholic liquor, wine, or beer or to sell alcoholic liquor, 20 wine, or beer at wholesale or retail. 21 4. Any commission member shall be subject to removal for any 22 of the causes and in the manner provided by chapter 66 relating 23 to removal from office. Removal shall not be in lieu of any 24 other punishment that may be prescribed by the laws of this 25 state. 26 5. Any vacancy on the commission shall be filled in the 27 same manner as regular appointments are made for the unexpired 28 portion of the regular term. 29 Sec. 40. Section 123.11, Code 2015, is amended to read as 30 follows: 31 123.11 Expenses Compensation and expenses . 32 Members of the commission, the administrator, and other 33 employees of the division shall be allowed their actual and 34 necessary expenses while traveling on business of the division 35 -17- LSB 2080SC (28) 86 lh/rj 17/ 140

S.F. _____ outside of their place of residence, however, an itemized 1 account of such expenses shall be verified by the claimant 2 and approved by the administrator. If such account is paid, 3 the same shall be filed with the division and be and remain 4 a part of its permanent records. Each member appointed to 5 the commission is entitled to receive reimbursement of actual 6 expenses incurred while attending meetings. Each member of 7 the commission may also be eligible to receive compensation 8 as provided in section 7E.6. All expenses and salaries of 9 commission members, the administrator, and other employees 10 shall be paid from appropriations for such purposes and the 11 division shall be subject to the budget requirements of chapter 12 8 . 13 Sec. 41. Section 123.17, Code 2015, is amended to read as 14 follows: 15 123.17 Prohibition Prohibitions on commission members and 16 employees. 17 1. Commission members, officers, and employees of the 18 division shall not, while holding such office or position, hold 19 do any of the following: 20 a. Hold any other office or position under the laws of this 21 state, or any other state or territory or of the United States ; 22 nor engage . 23 b. Engage in any occupation, business, endeavor, or activity 24 which would or does conflict with their duties under this 25 chapter ; nor, directly . 26 c. Directly or indirectly, use their office or employment 27 to influence, persuade, or induce any other officer, employee, 28 or person to adopt their political views or to favor any 29 particular candidate for an elective or appointive public 30 office ; nor, directly . 31 d. Directly or indirectly, solicit or accept, in any manner 32 or way, any money or other thing of value for any person 33 seeking an elective or appointive public office, or to any 34 political party or any group of persons seeking to become a 35 -18- LSB 2080SC (28) 86 lh/rj 18/ 140