Senate File 2189 - Enrolled




                              SENATE FILE       
                              BY  COMMITTEE ON JUDICIARY

                              (SUCCESSOR TO SSB
                                  3111)
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                                   A BILL FOR
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                                       Senate File 2189

                             AN ACT
 RELATING TO NONSUBSTANTIVE CODE CORRECTIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
                           DIVISION I
                      MISCELLANEOUS CHANGES
    Section 1.  Section 8.55, subsection 2, paragraph a, Code
 2016, is amended to read as follows:
    a.  The first sixty million dollars of the difference between
 the actual net revenue for the general fund of the state for
 the fiscal year and the adjusted revenue estimate for the
 fiscal year shall be transferred to the taxpayers trust fund
 created in section 8.57E.
    Sec. 2.  Section 13.15, Code 2016, is amended to read as
 follows:
    13.15  Rules and forms ==== fees.
    1.  The farm mediation service shall recommend rules to the
 farm assistance program coordinator. The coordinator shall
 adopt rules pursuant to chapter 17A to set the compensation of
 mediators and to implement this subchapter and chapters 654A,
 654B, and 654C.
    2.  a.  The rules shall provide for an hourly mediation fee
 not to exceed fifty dollars for the borrower and one hundred
 dollars for the creditor. The hourly mediation fee may be
 waived for any party demonstrating financial hardship upon
 application to the farm mediation service.
    b.  The compensation of a mediator shall be no more than
 twenty=five dollars per hour, and all parties shall contribute
 an equal amount of the cost.
    3.  The coordinator shall adopt voluntary mediation
 application and mediation request forms.
    Sec. 3.  Section 16.92, subsection 1, paragraph e, Code 2016,
 is amended to read as follows:
    e.  "Mortgage" means a mortgage or mortgage lien on an
 interest in real property in this state given to secure a loan
 in an original principal amount equal to or less than the
 maximum principal amount as determined by the division board
 and adopted by the Iowa finance authority pursuant to chapter
 17A.
    Sec. 4.  Section 19B.2, Code 2016, is amended to read as
 follows:
    19B.2  Equal opportunity in state employment ==== affirmative
 action.
    1.  It is the policy of this state to provide equal
 opportunity in state employment to all persons. An individual
 shall not be denied equal access to state employment
 opportunities because of race, creed, color, religion, national
 origin, sex, age, or physical or mental disability. It also is
 the policy of this state to apply affirmative action measures
 to correct deficiencies in the state employment system where
 those remedies are appropriate. This policy shall be construed
 broadly to effectuate its purposes.
    2.  It is the policy of this state to permit special
 appointments by bypassing the usual testing procedures for any
 applicant for whom the division of vocational rehabilitation
 services of the department of education or the department
 for the blind has certified the applicant's disability
 and competence to perform the job. The department of
 administrative services, in cooperation with the department
 for the blind and the division of vocational rehabilitation
 services, shall develop appropriate certification procedures.
 This paragraph subsection should not be interpreted to bar
 promotional opportunities for persons who are blind or persons
 with physical or mental disabilities. If this paragraph
  subsection conflicts with any other provisions of this chapter,
 the provisions of this paragraph subsection govern.
    Sec. 5.  Section 26.13, subsection 2, unnumbered paragraph
 1, Code 2016, is amended to read as follows:
    Payments made by a governmental entity or the state
  department of transportation for the construction of public
 improvements and highway, bridge, or culvert projects shall be
 made in accordance with the provisions of chapter 573, except
 as provided in this section:
    Sec. 6.  Section 28F.10, Code 2016, is amended to read as
 follows:
    28F.10  Refunding bonds.
    Refunding bonds may be issued by an entity in a principal
 amount sufficient to provide funds for the payment (including
  payment, including premium, if any) any, of bonds issued by
 said entity pursuant to the provisions of this chapter to be
 refunded thereby and the interest thereon and in addition for
 the payment of all expenses incident to the calling, retiring,
 or paying of such outstanding bonds to be refunded, such
 refunding bonds may also finance the construction of a project
 or projects authorized by this chapter or the improvement,
 addition, betterment or extension of an existing project or
 projects so authorized. Said refunding bonds shall not be
 issued to refund the principal of and interest on any bonds to
 be refunded unless such bonds mature or are redeemable under
 their terms within ten years from the date of delivery of the
 refunding bonds. The proceeds of said refunding bonds to be
 used for the payment of the principal of, interest on and
 redemption premiums, if any, on said bonds to be refunded which
 will not be due and payable immediately shall be deposited in
 trust for the sole purpose of making such payments in a bank or
 trust company within the state. Any moneys in such trust fund,
 prior to the date such funds will be needed for the payment
 of such principal of, interest on and redemption premiums, if
 any, of such outstanding bonds to be refunded, may be invested
 or reinvested as provided in the resolution authorizing said
 refunding bonds. Refunding bonds shall be issued in the same
 manner and detail as revenue bonds herein authorized.
    Sec. 7.  Section 29B.6, Code 2016, is amended to read as
 follows:
    29B.6  Imposition of restraint.
    1.  Arrest "Arrest" is the restraint of a person by an order,
 not imposed as a punishment for an offense, directing the
 person to remain within certain specified limits. Confinement
  "Confinement" is the physical restraint of a person.
    2.  An enlisted member may be ordered into arrest or
 confinement by any commissioned officer by an order, oral or
 written, delivered in person or through other persons subject
 to this code or through any person authorized by this code to
 apprehend persons.
    3.  A commanding officer may authorize warrant officers
 or noncommissioned officers to order enlisted members of the
 officer's command or subject to the officer's authority into
 arrest or confinement.
    4.  A commissioned officer or a warrant officer may be
 ordered apprehended or into arrest or confinement only by a
 commanding officer to whose authority the commissioned or
 warrant officer is subject, by an order, oral or written,
 delivered in person or by another commissioned officer. The
 authority to order such persons apprehended or into arrest or
 confinement may not be delegated.
    5.  This section does not limit the authority of persons
 authorized to apprehend offenders to secure the custody of an
 alleged offender until the proper authority is notified.
    Sec. 8.  Section 29C.23, Code 2016, is amended to read as
 follows:
    29C.23  Iowa radio interoperability platform.
    The Iowa radio interoperability platform shall be under
 the joint purview of the department of public safety and the
 department of transportation. The departments shall jointly
 submit a biannual report to the Iowa statewide interoperable
 communications system board established in section 80.28,
  beginning July 1, 2016.
    Sec. 9.  Section 39.17, Code 2016, is amended to read as
 follows:
    39.17  County officers.
    1.  There shall be elected in each county at the general
 election to be held in the year 1976 and every four years
 thereafter, an auditor and a sheriff, each to hold office for a
 term of four years.
    2.  There shall be elected in each county at the general
 election to be held in 1974 and each four years thereafter, a
 treasurer, a recorder, and a county attorney who shall each
  hold office for a term of four years.
    Sec. 10.  Section 46.6, Code 2016, is amended to read as
 follows:
    46.6  Equal seniority.
    If the judges of longest service (other service, other than
 the chief justice) justice, of the supreme court or of the
 district court in a district are of equal service, the eldest
 of such judges shall be chairperson of the particular judicial
 nominating commission.
    Sec. 11.  Section 80B.14, Code 2016, is amended to read as
 follows:
    80B.14  Budget submitted to department of management.
    The Iowa law enforcement academy council shall annually
  submit estimates of its expenditure requirements to the
 department of management, annually and in such form as required
 by chapter 8 estimates of its expenditure requirements. Such
  The estimates shall include the costs of administration,
 maintenance, and operation, and the cost of any proposed
 capital improvements or additional programs.
    Sec. 12.  Section 84A.4, subsection 1, Code 2016, is amended
 to read as follows:
    1.  A regional advisory board shall be established in
 each service delivery area as defined in section 84B.2. The
 members of the each board shall be appointed by the governor,
 consistent with the requirements of federal law and in
 consultation with chief elected officials within the region.
 Chief elected officials responsible for recommendations
 for board membership shall include, but are not limited to,
 county elected officials, municipal elected officials, and
 community college directors. The membership of each board
 shall provide for equal representation of business and labor
 and shall include a county elected official, a city official, a
 representative of a school district, and a representative of a
 community college.
    Sec. 13.  Section 89B.8, subsection 2, Code 2016, is amended
 to read as follows:
    2.  The division of labor services shall administer this
 division of the chapter subchapter. The division may exercise
 the enforcement powers set out in chapter 88 and the rules
 adopted pursuant to chapter 88 to enforce this division of the
 chapter subchapter.
    Sec. 14.  Section 89B.12, subsections 2 and 3, Code 2016, are
 amended to read as follows:
    2.  The division of labor services shall receive and handle
 requests for information and complaints under this division
  of this chapter subchapter which involve employer information
 covered under division subchapter II of this chapter. The
 labor commissioner shall adopt rules pursuant to chapter 17A
 regarding requests for information and the investigation and
 adjudication of complaints.
    3.  Requests for information under this division of this
 chapter subchapter are confidential.
    Sec. 15.  Section 92.5, subsection 9, Code 2016, is amended
 to read as follows:
    9.  a.  Work in connection with motor vehicles and trucks if
 confined to the following:
    a.  (1)  Dispensing gasoline and oil.
    b.  (2)  Courtesy service.
    c.  (3)  Car cleaning, washing, and polishing.
    b.  Nothing in this subsection shall be construed to include
 work involving the use of pits, racks, or lifting apparatus or
 involving the inflation of any tire mounted on a rim equipped
 with a removable retaining ring.
    Sec. 16.  Section 96.7, subsection 1, Code 2016, is amended
 to read as follows:
    1.  Payment.  Contributions accrue and are payable, in
 accordance with rules adopted by the department pursuant to
 chapter 17A, on all taxable wages paid by an employer for
 insured work.
    Sec. 17.  Section 96.7, subsection 2, paragraph a,
 subparagraph (4), Code 2016, is amended to read as follows:
    (4)  The department shall adopt rules pursuant to chapter
 17A prescribing the manner in which benefits shall be charged
 against the accounts of several employers for which an
 individual performed employment during the same calendar
 quarter.
    Sec. 18.  Section 96.7, subsection 2, paragraph c,
 subparagraph (2), Code 2016, is amended to read as follows:
    (2)  A construction contributory employer, as defined under
 rules adopted by the department pursuant to chapter 17A, which
 is newly subject to this chapter shall pay contributions at the
 rate specified in the twenty=first benefit ratio rank until the
 end of the calendar year in which the employer's account has
 been chargeable with benefits for twelve consecutive calendar
 quarters.
    Sec. 19.  Section 96.7, subsection 4, paragraph c, Code 2016,
 is amended to read as follows:
    c.  A hearing on an appeal shall be conducted according to
 rules adopted by the department pursuant to chapter 17A.  A
 copy of the decision of the administrative law judge shall be
 sent by regular mail to the last address, according to the
 records of the department, of each affected employing unit or
 employer.
    Sec. 20.  Section 96.7, subsection 10, Code 2016, is amended
 to read as follows:
    10.  Group accounts.  Two or more nonprofit organizations
 or two or more governmental entities which have become
 reimbursable employers in accordance with subsection 7 or
 subsection 8, paragraph "a", may file a joint application
 to the department for the establishment of a group account
 for the purpose of sharing the cost of benefits paid which
 are attributable to service in the employ of the employers.
 The application shall identify and authorize a group
 representative to act as the group's agent for the purposes
 of this subsection. Upon approval of the application, the
 department shall establish a group account for the employers
 effective as of the beginning of the calendar quarter in which
 the department receives the application and shall notify the
 group's agent of the effective date of the account. The
 account shall remain in effect for not less than one year
 until terminated at the discretion of the department or upon
 application by the group. Upon establishment of the account,
 each employer member of the group shall be liable for benefit
 reimbursements in lieu of contributions with respect to each
 calendar quarter in an amount which bears the same ratio to the
 total benefits paid in the quarter which are attributable to
 service performed in the employ of all members of the group,
 as the total wages paid for service performed in the employ
 of the member in the quarter bear to the total wages paid for
 service performed in the employ of all members of the group
 in the quarter. The department shall adopt rules pursuant to
 chapter 17A with respect to applications for establishment,
 maintenance, and termination of group accounts, for addition
 of new members to, and withdrawal of active members from group
 accounts, and for the determination of the amounts which are
 payable by members of the group and the time and manner of the
 payments.
    Sec. 21.  Section 96.7, subsection 11, paragraph a, Code
 2016, is amended to read as follows:
    a.  If on the first day of the third month in any calendar
 quarter, the department has an outstanding balance of interest
 accrued on advance moneys received from the federal government
 for the payment of unemployment compensation benefits, or is
 projected to have an outstanding balance of accruing federal
 interest for that calendar quarter, the department shall
 collect a uniform temporary emergency surcharge for that
 calendar quarter, retroactive to the beginning of that calendar
 quarter. The surcharge shall be a percentage of employer
 contribution rates and shall be set at a uniform percentage,
 for all employers subject to the surcharge, necessary to pay
 the interest accrued on the moneys advanced to the department
 by the federal government, and to pay any additional federal
 interest which will accrue for the remainder of that calendar
 quarter. The surcharge shall apply to all employers except
 governmental entities, nonprofit organizations, and employers
 assigned a zero contribution rate. The department shall adopt
 rules pursuant to chapter 17A prescribing the manner in which
 the surcharge will be collected. Interest shall accrue on all
 unpaid surcharges under this subsection at the same rate as
 on regular contributions and shall be collectible in the same
 manner. The surcharge shall not affect the computation of
 regular contributions under this chapter.
    Sec. 22.  Section 96.9, subsection 5, Code 2016, is amended
 to read as follows:
    5.  Administration expenses excluded.  Any amount credited
 to this state's account in the unemployment trust fund
 under section 903 of the Social Security Act which has been
 appropriated for expenses of administration pursuant to
 subsection 4 of this section, whether or not withdrawn from
 such account, shall not be deemed assets of the unemployment
 compensation fund for the purpose of computing contribution
 rates under section 96.7, subsection 3, of this chapter.
    Sec. 23.  Section 96.14, subsection 3, paragraph k, Code
 2016, is amended to read as follows:
    k.  If a political subdivision or a political subdivision
 instrumentality becomes delinquent in the payment of
 contributions, any payments owed as a government employer,
 penalty, interest, and costs for more than two calendar
 quarters, the amount of such delinquency shall be deducted
 from any further moneys due the employer by the state. Such
 deduction shall be made by the director of the department of
 administrative services upon certification of the amount due.
 A copy of the certification will be mailed to the employer.
    Sec. 24.  Section 96.19, subsection 4, Code 2016, is amended
 to read as follows:
    4.    "Benefit year".  The term "benefit "Benefit year" means a
 period of one year beginning with the day with respect to which
 an individual filed a valid claim for benefits. Any claim for
 benefits made in accordance with section 96.6, subsection 1,
 shall be deemed to be a valid claim for the purposes of this
 subsection if the individual has been paid wages for insured
 work required under the provisions of this chapter.
    Sec. 25.  Section 96.19, subsection 16, paragraphs b, d, and
 g, Code 2016, are amended to read as follows:
    b.  Any employing unit (whether, whether or not an employing
 unit at the time of acquisition) acquisition, which acquired
 the organization, trade, or business, or substantially all of
 the assets thereof, of another employing unit which at the time
 of such acquisition was an employer subject to this chapter, or
 which acquired a part of the organization, trade, or business
 of another employing unit which at the time of such acquisition
 was an employer subject to this chapter. Provided, that
 such other employing unit would have been an employer under
 paragraph "a" of this subsection, if such part had constituted
 its entire organization, trade, or business.
    d.  Any employing unit which, together with one or more
 other employing units, is owned or controlled (by, by legally
 enforceable means or otherwise) otherwise, directly or
 indirectly by the same interests, or which owns or controls one
 or more other employing units (by by legally enforceable means
 or otherwise) otherwise, and which, if treated as a single unit
 with such other employing unit, would be an employer under
 paragraph "a" of this subsection.
    g.  Any employing unit not an employer by reason of any
 other paragraph of this subsection for which, within either
 the current or preceding calendar year, service is or was
 performed with respect to which such employing unit is liable
 for any federal tax against which credit may be taken for
 contributions required to be paid into a state unemployment
 fund; or which, as a condition for approval of this chapter for
 full tax credit against the tax imposed by the federal Federal
  Unemployment Tax Act, (26 U.S.C. {3301 = 3308) 26 U.S.C. {3301
 = 3308, is required, pursuant to such Act, to be an "employer"
 under this chapter. Provided, however, that if an employer
 subject to contributions solely because of the terms of this
 subsection shall establish proper proof to the satisfaction of
 the department that the employer's employees have been and will
 be duly covered and insured under the unemployment compensation
 law of another jurisdiction such employer shall not be deemed
 an employer and such services shall not be deemed employment
 under this chapter.
    Sec. 26.  Section 96.19, subsection 18, paragraph a,
 subparagraphs (1), (3), and (5), Code 2016, are amended to read
 as follows:
    (1)  Any officer of a corporation.  Provided that the term
 "employment" shall not include such officer if the officer is a
 majority stockholder and the officer shall not be considered an
 employee of the corporation unless such services are subject to
 a tax to be paid under any federal law imposing a tax against
 which credit may be taken for contributions required to be paid
 into a state unemployment fund or such services are required
 to be covered under this chapter of the Code, as a condition
 to receipt of a full tax credit against the tax imposed by the
 federal Federal Unemployment Tax Act (26 U.S.C. {3301 = 3309),
 26 U.S.C. {3301 = 3309, or
    (3)  (a)  Any individual other than an individual who
 is an employee under subparagraphs (1) or (2) who performs
 services for remuneration for any person as an agent driver
 or commission driver engaged in distributing meat products,
 vegetable products, fruit products, bakery products, beverages
 (other other than milk) milk, or laundry or dry cleaning
 services for the individual's principal; as a traveling or
 city salesperson, other than as an agent driver or commission
 driver, engaged upon a full=time basis in the solicitation on
 behalf of, and the transmission to, the individual's principal,
  (except except for sideline sales activities on behalf of some
 other person) person, of orders from wholesalers, retailers,
 contractors, or operators of hotels, restaurants, or other
 similar establishments for merchandise for resale or supplies
 for use in their business operations.
    (b)  Provided, that for purposes of this subparagraph (3),
 the term "employment" shall include services performed after
 December 31, 1971, only if:
    (i)  The contract of service contemplates that substantially
 all of the services are to be performed personally by such
 individual;
    (ii)  The individual does not have a substantial investment
 in facilities used in connection with the performance of the
 services (other, other than in facilities for transportation)
  transportation; and
    (iii)  The services are not in the nature of single
 transaction that is not part of a continuing relationship with
 the person for whom the services are performed.
    (5)  Service performed after December 31, 1971, by
 an individual in the employ of a religious, charitable,
 educational, or other organization, but only if the service is
 excluded from "employment" as defined in the federal Federal
  Unemployment Tax Act (26 U.S.C. {3301 = 3309), 26 U.S.C. {3301
 = 3309, solely by reason of section 3306(c)(8) of that Act.
    Sec. 27.  Section 96.19, subsection 18, paragraph b,
 subparagraph (5), Code 2016, is amended to read as follows:
    (5)  Notwithstanding any other provisions of this
 subsection, service with respect to which a tax is required
 to be paid under any federal law imposing a tax against which
 credit may be taken for contributions required to be paid into
 a state unemployment fund or which, as a condition for full
 tax credit against the tax imposed by the Federal Unemployment
 Tax Act (26 U.S.C. {3301 = 3308), 26 U.S.C. {3301 = 3308, is
 required to be covered under this chapter.
    Sec. 28.  Section 96.19, subsection 18, paragraph g,
 subparagraph (3), subparagraph division (c), Code 2016, is
 amended to read as follows:
    (c)  In connection with the production or harvesting of any
 commodity defined as an agricultural commodity in section 15(g)
 of the Agricultural Marketing Act, as amended [46 Stat. 1550,
 {3, 12 U.S.C. {1141j], 46 Stat. 1550, {3, 12 U.S.C. {1141j, or
 in connection with ginning of cotton, or in connection with the
 operation or maintenance of ditches, canals, reservoirs, or
 waterways, not owned or operated for profit, used exclusively
 for supplying and storing water for farming purposes.
    Sec. 29.  Section 96.19, subsection 18, paragraph g,
 subparagraph (3), subparagraph division (d), subparagraph
 subdivision (ii), Code 2016, is amended to read as follows:
    (ii)  In the employ of a group of operators of farms (or,
 or a cooperative organization of which such operators are
 members) members, in the performance of service described
 in subparagraph subdivision (i) of division (d) of this
 subparagraph, but only if such operators produced more than
 one=half of the commodity with respect to which such service
 is performed;
    Sec. 30.  Section 96.19, subsection 20, unnumbered paragraph
 1, Code 2016, is amended to read as follows:
 "Exhaustee" means an individual who, with respect to any
 week of unemployment in the individual's eligibility period
 has received, prior to such week, all of the regular benefits
 that were available to the individual under this chapter or
 any other state law (including law, including dependents'
 allowances and benefits payable to federal civilian employees
 and former armed forces personnel under 5 U.S.C. ch. 85) 5
 U.S.C. ch. 85, in the individual's current benefit year that
 includes such weeks. Provided that for the purposes of this
 subsection an individual shall be deemed to have received all
 of the regular benefits that were available to the individual,
 although as a result of a pending appeal with respect to
 wages that were not considered in the original monetary
 determination in the individual's benefit year the individual
 may subsequently be determined to be entitled to add regular
 benefits, or:
    Sec. 31.  Section 96.19, subsections 22 and 33, Code 2016,
 are amended to read as follows:
    22.  "Extended benefits" means benefits (including benefits,
 including benefits payable to federal civilian employees and to
 former armed forces personnel pursuant to 5 U.S.C. ch. 85) 5
 U.S.C. ch. 85, payable to an individual under the provisions
 of this section for weeks of unemployment in the individual's
 eligibility period.
    33.  "Regular benefits" means benefits payable to an
 individual under this or under any other state law (including
  law, including benefits payable to federal civilian employees
 and to former armed forces personnel pursuant to 5 U.S.C. ch.
 85) 5 U.S.C. ch. 85, other than extended benefits.
    Sec. 32.  Section 97B.43, Code 2016, is amended to read as
 follows:
    97B.43  Prior service credit.
    1.  Each member in service on July 4, 1953, who made
 contributions under the abolished system, and who has not
 applied for and qualified for benefit payments under the
 abolished system, shall receive credit for years of prior
 service in the determination of retirement allowance payments
 under this chapter, if the member elects to become a member on
 or before October 1, 1953, the member has not made application
 for a refund of the part of the member's contributions under
 the abolished system which are payable under sections 97.50
 to 97.53, and the member gives written authorization prior to
 October 1, 1953, to the commission to credit to the retirement
 fund the amount of the member's contribution which would
 be subject to a claim for refund. The amount so credited
 shall, after transfer, be considered as a contribution to the
 retirement system made as of July 4, 1953, by the member and
 shall be included in the determination of the amount of moneys
 payable under this chapter. However, an employee who was under
 a contract of employment as a teacher in the public schools of
 the state of Iowa at the end of the school year 1952=1953, or
 any person covered by section 97B.1A, subsection 20, paragraph
 "c" or "d", shall be considered as in service as of July 4,
 1953, if they were members of the abolished system.
    2.  Any person with a record of thirty years as a public
 employee in the state of Iowa prior to July 1, 1947, and who is
 not eligible for prior service credit under other provisions
 of this section, is entitled to a credit for years of prior
 service in the determination of the retirement allowance
 payment under this chapter, provided the public employee makes
 application to the system for credit for prior public service,
 accompanied by verification of the person's claim as the system
 may require. The person's allowance for prior service credits
 shall be computed in the same manner as otherwise provided in
 this section, but shall not exceed the sum of four hundred
 fifty dollars nor be less than three hundred dollars per annum.
 Any such person is entitled to receive retirement allowances
 computed as provided by this chapter, effective from the date
 of application to the system, provided such application is
 approved. However, beginning July 1, 1975, the amount of such
 person's retirement allowance payment received during June
 1975, as computed under this section shall be increased by two
 hundred percent and the allowance for prior service credits
 shall not exceed one thousand three hundred fifty dollars nor
 be less than nine hundred dollars per annum. Effective July
 1, 1987, there is appropriated for each fiscal year from the
 Iowa public employees' retirement fund created in section 97B.7
 to the system an amount sufficient to fund the retirement
 allowance increases paid under this paragraph subsection.
 Effective July 1, 1980, a person with a record of thirty years
 as a public employee in the state of Iowa prior to July 1,
 1947, receiving retirement allowances under this chapter shall
 receive the monthly increase in benefits provided in section
 97B.49G, subsection 3, paragraph "a".
    3.  Each individual who on or after July 1, 1978, was an
 active, vested, or retired member and who (1) made application
 for and received a refund of contributions made under the
 abolished system or (2) has on deposit with the retirement fund
 contributions made under the abolished system shall be entitled
 to credit for years of prior service in the determination of
 retirement allowance payments by filing a written election
 with the system on or after July 1, 1978, and by redepositing
 any withdrawn contributions under the abolished system
 together with interest as stated in this paragraph subsection.
 Any individual who on or after July 1, 1978, is a retired
 member and who made application for and received a refund of
 contributions made under the abolished system may, by filing
 a written election with the system on or after July 1, 1978,
 have the system retain fifty percent of the monthly increase in
 retiree benefits that will accrue to the individual because of
 prior service. If the monthly increase in retirement benefits
 is less than ten dollars, the system shall retain five dollars
 of the scheduled increase, and if the monthly increase is less
 than five dollars, the provisions of this paragraph subsection
  shall not apply. The system shall continue to retain such
 funds until the withdrawn contributions, together with interest
 accrued to the month in which the written election is filed,
 have been repaid. Due notice of this provision shall be sent
 to all retired members on or after July 1, 1978. However, this
 paragraph subsection shall not apply to any person who received
 a refund of any membership service contributions unless the
 person repaid the membership service contributions pursuant
 to section 97B.80C; but a refund of contributions remitted
 for the calendar quarter ending September 30, 1953, which was
 based entirely upon employment which terminated prior to July
 4, 1953, shall not be considered as a refund of membership
 service contributions. The interest to be paid into the fund
 shall be compounded at the rates credited to member accounts
 from the date of payment of the refund of contributions under
 the abolished system to the date the member redeposits the
 refunded amount. The provisions of the first paragraph of
 this section subsection 1 relating to the consideration given
 to credited amounts shall apply to the redeposited amounts
 or to amounts left on deposit. Effective July 1, 1978, the
 provisions of this paragraph subsection shall apply to each
 individual who on or after July 1, 1978, was an active, vested,
 or retired member, but who was not in service on July 4, 1953.
 The period for filing the written election with the system and
 redepositing any withdrawn contributions together with interest
 accrued shall commence July 1, 1978. A member who is a retired
 member on or after July 1, 1978, may file written election with
 the system on or after July 1, 1978, to have the system retain
 fifty percent of the monthly increase as provided in this
 paragraph subsection.
    4.  Effective July 1, 2004, a member eligible for an
 increased retirement allowance because of the repayment of
 contributions under this section is entitled to receipt of
 adjustment payments beginning with the month in which payment
 was received by the system.
    Sec. 33.  Section 99B.27, subsection 2, paragraph n, Code
 2016, is amended to read as follows:
    n.  No A person receives shall not receive or has have any
 fixed or contingent right to receive, directly or indirectly,
 any profit, remuneration, or compensation from or related to
 a game in a card game tournament, except any amount which the
 person may win as a participant on the same basis as the other
 participants.
    Sec. 34.  Section 99B.27, subsection 2, paragraph p,
 unnumbered paragraph 1, Code 2016, is amended to read as
 follows:
    The person conducting the card game tournament does none
  shall not do any of the following:
    Sec. 35.  Section 135B.7, subsection 2, paragraph a, Code
 2016, is amended to read as follows:
    a.  The rules shall state that a hospital shall not deny
 clinical privileges to physicians and surgeons, podiatric
 physicians, osteopathic physicians and surgeons, dentists,
 certified health service providers in psychology, physician
 assistants, or advanced registered nurse practitioners licensed
 under chapter 148, 148C, 149, 152, or 153, or section 154B.7,
 solely by reason of the license held by the practitioner
 or solely by reason of the school or institution in which
 the practitioner received medical schooling or postgraduate
 training if the medical schooling or postgraduate training was
 accredited by an organization recognized by the council on
 postsecondary higher education accreditation or an accrediting
 group recognized by the United States department of education.
    Sec. 36.  Section 148E.2, subsection 1, paragraphs b and c,
 Code 2016, are amended to read as follows:
    b.  Successful completion of a three=year postsecondary
 training program or acupuncture college program which is
 accredited by, in candidacy for accreditation by, or which
 meets the standards of the national accreditation commission
 for schools and colleges of acupuncture and oriental medicine.
    c.  Successful completion of a course in clean needle
 technique approved by the national certification commission for
 the certification of acupuncturists acupuncture and oriental
 medicine.
    Sec. 37.  Section 153.15A, subsection 1, paragraph a, Code
 2016, is amended to read as follows:
    a.  That the applicant possesses a degree or certificate of
 graduation from a college, university, or institution of higher
 education, accredited by a national agency recognized by the
 council on postsecondary higher education accreditation or the
 United States department of education, in a program of dental
 hygiene with a minimum of two academic years of curriculum.
    Sec. 38.  Section 161A.72, subsection 1, Code 2016, is
 amended to read as follows:
    1.  Financial incentives provided under this chapter shall
 be administered by the division. The incentives shall be
 supported with funds appropriated by the general assembly,
 and moneys available to or obtained by the division or the
 committee from public or private sources, including but
 not limited to the United States, other states, or private
 organizations. The division shall adopt all rules consistent
 with chapter 17A necessary to carry out the purpose of this
 division subchapter as provided in section 161A.70.
    Sec. 39.  Section 225.24, Code 2016, is amended to read as
 follows:
    225.24  Collection of preliminary expense.
    Unless a committed private patient or those legally
 responsible for the patient's support offer to settle the
 amount of the claims, the regional administrator for the
 person's county of residence shall collect, by action if
 necessary, the amount of all claims for per diem and expenses
 that have been approved by the regional administrator for the
 county and paid by the regional administrator as provided under
 section 225.21. Any amount collected shall be credited to the
 county mental health and disabilities services fund created in
 accordance with section 331.424A.
    Sec. 40.  Section 234.39, Code 2016, is amended to read as
 follows:
    234.39  Responsibility for cost of services.
    1.  It is the intent of this chapter that an individual
 receiving foster care services and the individual's parents or
 guardians shall have primary responsibility for paying the cost
 of the care and services. The support obligation established
 and adopted under this section shall be consistent with the
 limitations on legal liability established under sections
 222.78 and 230.15, and by any other statute limiting legal
 responsibility for support which may be imposed on a person for
 the cost of care and services provided by the department. The
 department shall notify an individual's parents or guardians,
 at the time of the placement of an individual in foster care,
 of the responsibility for paying the cost of care and services.
 Support obligations shall be established as follows:
    1.  a.  For an individual to whom section 234.35, subsection
 1, is applicable, a dispositional order of the juvenile court
 requiring the provision of foster care, or an administrative
 order entered pursuant to chapter 252C, or any order
 establishing paternity and support for a child in foster care,
 shall establish, after notice and a reasonable opportunity to
 be heard is provided to a parent or guardian, the amount of
 the parent's or guardian's support obligation for the cost
 of foster care provided by the department. The amount of
 the parent's or guardian's support obligation and the amount
 of support debt accrued and accruing shall be established in
 accordance with the child support guidelines prescribed under
 section 598.21B.  However, the court, or the department of
 human services in establishing support by administrative order,
 may deviate from the prescribed obligation after considering
 a recommendation by the department for expenses related to
 goals and objectives of a case permanency plan as defined
 under section 237.15, and upon written findings of fact which
 specify the reason for deviation and the prescribed guidelines
 amount. Any order for support shall direct the payment of
 the support obligation to the collection services center for
 the use of the department's foster care recovery unit. The
 order shall be filed with the clerk of the district court
 in which the responsible parent or guardian resides and has
 the same force and effect as a judgment when entered in the
 judgment docket and lien index. The collection services center
 shall disburse the payments pursuant to the order and record
 the disbursements. If payments are not made as ordered, the
 child support recovery unit may certify a default to the court
 and the court may, on its own motion, proceed under section
 598.22 or 598.23 or the child support recovery unit may enforce
 the judgment as allowed by law. An order entered under this
 subsection paragraph may be modified only in accordance with
 the guidelines prescribed under section 598.21C, or under
 chapter 252H.
    2.  b.  For an individual who is served by the department
 of human services under section 234.35, and is not subject
 to a dispositional order of the juvenile court requiring the
 provision of foster care, the department shall determine the
 obligation of the individual's parent or guardian pursuant
 to chapter 252C and in accordance with the child support
 guidelines prescribed under section 598.21B.  However, the
 department may adjust the prescribed obligation for expenses
 related to goals and objectives of a case permanency plan as
 defined under section 237.15. An obligation determined under
 this subsection paragraph may be modified only in accordance
 with conditions under section 598.21C, or under chapter 252H.
    3.  2.  A person entitled to periodic support payments
 pursuant to an order or judgment entered in any action for
 support, who also is or has a child receiving foster care
 services, is deemed to have assigned to the department
 current and accruing support payments attributable to the
 child effective as of the date the child enters foster care
 placement, to the extent of expenditure of foster care funds.
 The department shall notify the clerk of the district court
 when a child entitled to support payments is receiving foster
 care services pursuant to chapter 234. Upon notification
 by the department that a child entitled to periodic support
 payments is receiving foster care services, the clerk of
 the district court shall make a notation of the automatic
 assignment in the judgment docket and lien index. The notation
 constitutes constructive notice of assignment. The clerk of
 court shall furnish the department with copies of all orders
 and decrees awarding support when the child is receiving
 foster care services. At the time the child ceases to receive
 foster care services, the assignment of support shall be
 automatically terminated. Unpaid support accrued under the
 assignment of support rights during the time that the child was
 in foster care remains due to the department up to the amount
 of unreimbursed foster care funds expended. The department
 shall notify the clerk of court of the automatic termination
 of the assignment. Unless otherwise specified in the support
 order, an equal and proportionate share of any child support
 awarded shall be presumed to be payable on behalf of each child
 subject to the order or judgment for purposes of an assignment
 under this section.
    4.  3.  The support debt for the costs of services, for which
 a support obligation is established pursuant to this section,
 which accrues prior to the establishment of the support debt,
 shall be collected, at a maximum, in the amount which is the
 amount of accrued support debt for the three months preceding
 the earlier of the following:
    a.  The provision by the child support recovery unit of the
 initial notice to the parent or guardian of the amount of the
 support obligation.
    b.  The date that the written request for a court hearing
 is received by the child support recovery unit as provided in
 section 252C.3 or 252F.3.
    5.  4.  If the department makes a subsidized guardianship
 payment for a child, the payment shall be considered a foster
 care payment for purposes of child support recovery. All
 provisions of this and other sections, and of rules and orders
 adopted or entered pursuant to those sections, including
 for the establishment of a paternity or support order, for
 the amount of a support obligation, for the modification or
 adjustment of a support obligation, for the assignment of
 support, and for enforcement shall apply as if the child
 were receiving foster care services, or were in foster care
 placement, or as if foster care funds were being expended for
 the child. This subsection shall apply regardless of the date
 of placement in foster care or subsidized guardianship or the
 date of entry of an order, and foster care and subsidized
 guardianship shall be considered the same for purposes of child
 support recovery.
    Sec. 41.  Section 252H.2, subsection 2, paragraph m, Code
 2016, is amended to read as follows:
    m.  "Support order" means an order for support issued
 pursuant to this chapter, chapter 232, 234, 252A, 252C, 252E,
 252F, 252H, 598, 600B, or any other applicable chapter, or
 under a comparable statute of another state or foreign country
 as registered with the clerk of court or certified to the child
 support recovery unit.
    Sec. 42.  Section 256.3, Code 2016, is amended to read as
 follows:
    256.3  State board established.
    1.  The state board of education is established for the
 department. The state board consists of ten members, nine
 voting members and one nonvoting student member. The voting
 members shall be appointed by the governor subject to senate
 confirmation. The nonvoting student member shall be appointed
 as provided in section 256.5A.
    2.  The voting members shall be registered voters of
 the state and hold no other elective or appointive state
 office.  Not more than five voting members shall be of the
 same political party.  Three of the voting members shall
 have substantial knowledge related to the community college
 system. The remaining six voting members shall be members of
 the general public. A voting member shall not be engaged in
 professional education for a major portion of the member's time
 nor shall the member derive a major portion of income from any
 business or activity connected with education. Not more than
 five voting members shall be of the same political party.
    3.  The terms of office for voting members are for six years
 beginning and ending as provided in section 69.19.
    Three of the voting members shall have substantial knowledge
 related to the community college system. The remaining six
 voting members shall be members of the general public.
    Sec. 43.  Section 257.17, subsection 2, Code 2016, is amended
 to read as follows:
    2.  This section does not apply to a school district
 attendance center that has received approval from the
 department of education under section 279.10, subsection
 2, to maintain a year around year=round school calendar
 that commences classes in advance of the school start date
 established in section 279.10, subsection 1. The department
 of management shall prorate the reduction made pursuant to
 this section to account for an attendance center in a school
 district that is approved to maintain a year around year=round
  school calendar under section 279.10, subsection 2.
    Sec. 44.  Section 279.10, subsection 2, Code 2016, is amended
 to read as follows:
    2.  The board of directors of a school district and the
 authorities in charge of an accredited nonpublic school
 may apply to the department of education for authorization
 to maintain a year around year=round school calendar at an
 attendance center or school for students in prekindergarten
 through grade eight. However, a board shall hold a public
 hearing on any proposal relating to authorization for a
 year around year=round school calendar prior to submitting
 an application under this subsection to the department of
 education for approval.
    a.  The initial application for a year around year=round
  school calendar shall be submitted to the department of
 education not later than November 1 of the preceding school
 year. The department shall notify the board or the authorities
 of the approval or denial of an application not later than the
 next following January 15. The application may be approved
 for one or two years at a time. A board or the authorities in
 charge may reapply to renew an authorization by November 1 of
 the year prior to expiration of the authorization.
    b.  An attendance center or school authorized to maintain
 a year around year=round calendar must serve all students
 attending the school and shall not be limited based on student
 achievement or based on the trait or characteristic of the
 student as defined in section 280.28.
    c.  An attendance center or school authorized to maintain a
 year around year=round school calendar under this subsection
 shall provide at least ten days of instruction or the hourly
 equivalent during eleven of the twelve months of the school
 year. The period of time between instructional days shall not
 exceed six weeks.
    d.  A year around year=round school calendar authorized
 pursuant to this subsection is exempt from the school start
 date specified in subsection 1.
    Sec. 45.  Section 307.26, subsection 1, Code 2016, is amended
 to read as follows:
    1.  Advise and assist the director in the development
 of aeronautics, including but not limited to the location
 of air terminals,; accessibility of air terminals by other
 modes of public transportation,; protective zoning provisions
 considering safety factors, noise, and air pollution,;
  facilities for private and commercial aircraft,; air freight
 facilities,; and such other physical and technical aspects as
 may be necessary to meet present and future needs.
    Sec. 46.  Section 310.27, subsection 3, Code 2016, is amended
 to read as follows:
    3.  If in the judgment of the department the anticipated
 claims against the primary road fund for any month are in
 excess of moneys available, a temporary transfer for highway
 construction costs may be made from the farm=to=market road
 fund to the primary road fund providing provided that there
 will remain in the transferring fund a sufficient balance
 to meet the anticipated obligations. All transfers shall
 be repaid from the primary road fund to the farm=to=market
 road fund within sixty days from the date of the transfer. A
 transfer shall be made only with the approval of the director
 of the department of management and shall comply with the
 director of the department of management's rules relating to
 the transfer of funds. Similar transfers may be made by the
 department from the primary road fund to the farm=to=market
 road fund and these transfers shall be subject to the same
 terms and conditions that transfers from the farm=to=market
 road fund to the primary road fund are subject.
    Sec. 47.  Section 313.4, subsection 1, paragraph a, Code
 2016, is amended to read as follows:
    a.  Said The primary road fund is hereby appropriated for
 and shall be used in the establishment, construction, and
 maintenance of the primary road system, including the drainage,
 grading, surfacing, and construction of bridges and culverts,;
  the elimination or improvement of railroad crossings,; the
 acquiring of additional right=of=way,; and all other expense
 incurred in the construction and maintenance of said the
  primary road system and the maintenance and housing of the
 department.
    Sec. 48.  Section 321.189, subsection 2, paragraph a, Code
 2016, is amended to read as follows:
    a.  Appearing on the driver's license shall be a
 distinguishing number assigned to the licensee; the licensee's
 full name, date of birth, sex, and residence address; a colored
  color photograph; a physical description of the licensee;
 the name of the state; the dates of issuance and expiration;
 and the usual signature of the licensee. The license shall
 identify the class of vehicle the licensee may operate and the
 applicable endorsements and restrictions which the department
 shall require by rule.
    Sec. 49.  Section 321.190, subsection 1, paragraph a, Code
 2016, is amended to read as follows:
    a.  The department shall, upon application and payment
 of the required fee, issue to an applicant a nonoperator's
 identification card. To be valid the card shall bear a
 distinguishing number other than a social security number
 assigned to the cardholder, the full name, date of birth,
 sex, residence address, a physical description and a colored
  color photograph of the cardholder, the usual signature of
 the cardholder, and such other information as the department
 may require by rule. An applicant for a nonoperator's
 identification card shall apply for the card in the manner
 provided in section 321.182, subsections 1 through 3. The card
 shall be issued to the applicant at the time of application
 pursuant to procedures established by rule. An applicant for a
 nonoperator's identification card who is required by 50 U.S.C.
 app. {451 et seq. to register with the United States selective
 service system shall be registered by the department with the
 selective service system as provided in section 321.183.
    Sec. 50.  Section 321.215, subsection 5, Code 2016, is
 amended to read as follows:
    5.  Notwithstanding any provision of this chapter to the
 contrary, the department may issue a temporary restricted
 license to a person eligible for a temporary restricted
 license under this section if the person is also eligible for a
 temporary restricted license under section 321J.20, provided
 the requirements of each this section and section 321J.20 are
 satisfied.
    Sec. 51.  Section 321.492, Code 2016, is amended to read as
 follows:
    321.492  Peace officers' authority.
    1.  A peace officer is authorized to stop a vehicle to
 require exhibition of the driver's license of the driver, to
 serve a summons or memorandum of traffic violation, to inspect
 the condition of the vehicle, to inspect the vehicle with
 reference to size, weight, cargo, log book, bills of lading
 or other manifest of employment, tires, and safety equipment,
 or to inspect the registration certificate, the compensation
 certificate, travel order, or permit of the vehicle.
    2.  A peace officer having probable cause to stop a vehicle
 may require exhibition of the proof of financial liability
 coverage card issued for the vehicle if the vehicle is a motor
 vehicle registered in this state.
    3.  a.  All peace officers as defined in section 801.4,
 subsection 11, paragraphs "a", "b", "c", and "h" may, having
 reasonable grounds that equipment violations exist, conduct
 spot inspections.
    b.  The department may designate employees under the
 supervision of the department's administrator of motor vehicles
 to conduct spot inspections.
    Sec. 52.  Section 321A.1, Code 2016, is amended to read as
 follows:
    321A.1  Definitions.
    The following words and phrases when used in this chapter
 shall, for the purposes of this chapter, have the meanings
 respectively ascribed to them in this section, except in those
 instances where the context clearly indicates a different
 meaning:
    1.    County system.  "Book", "list", "record", or "schedule"
 kept by a county auditor, assessor, treasurer, recorder,
 sheriff, or other county officer means the county system as
 defined in section 445.1.
    2.    Department.  "Department" means the state department of
 transportation.
    3.    Judgment.  A "Judgment" means a judgment which has become
 final by expiration without appeal during the time within
 which an appeal might have been perfected, or a judgment if
 an appeal from the judgment has been perfected, which has not
 been stayed by the execution, filing, and approval of a bond as
 provided in rule of appellate procedure 6.601(1), or a judgment
 which has become final by affirmation on appeal, rendered by
 a court of competent jurisdiction of a state or of the United
 States, upon a cause of action arising out of the ownership,
 maintenance, or use of a motor vehicle, as defined in this
 section, for damages, including damages for care and loss of
 services, because of bodily injury to or death of a person, or
 for damages because of injury to or destruction of property,
 including the loss of use of property, or upon a cause of
 action on an agreement of settlement for such damages.
    4.    License.  A "License" means a driver's license as defined
 in section 321.1 issued under the laws of this state.
    5.    Motor vehicle.  "Motor vehicle" means every vehicle
 which is self=propelled, but not including vehicles known
 as trackless trolleys which are propelled by electric power
 obtained from overhead trolley wires and not operated upon
 rails. The term "car" or "automobile" shall be synonymous with
 the term "motor vehicle". "Motor vehicle" does not include
 special mobile equipment as defined in this section.
    6.    Nonresident.  Every "Nonresident" means every person who
 is not a resident of this state.
    7.    Nonresident operating privilege.  The "Nonresident
 operating privilege" means the privilege conferred upon a
 nonresident by the laws of this state pertaining to the
 operation by the nonresident of a motor vehicle, or the use of
 a motor vehicle owned by the nonresident, in this state.
    8.    Operator.  A "Operator" means a person who is in actual
 physical control of a motor vehicle whether or not that person
 has a driver's license as required under the laws of this
 state.
    9.    Owner.  "Owner" means a person who holds the legal
 title of a motor vehicle; however, if the motor vehicle is the
 subject of a security agreement with a right of possession in
 the debtor, the debtor shall be deemed the owner for purposes
 of this chapter or if the motor vehicle is leased as defined
 in section 321.493, the lessee shall be deemed the owner for
 purposes of this chapter.
    10.    Person.  Every "Person" means every natural person,
 firm, partnership, association, or corporation.
    11.    Proof of financial responsibility.  Proof "Proof of
 financial responsibility" means proof of ability to respond
 in damages for liability, on account of accidents occurring
 subsequent to the effective date of the proof, arising out
 of the ownership, maintenance, or use of a motor vehicle, in
 amounts as follows:  With respect to accidents occurring on
 or after January 1, 1981, and prior to January 1, 1983, the
 amount of fifteen thousand dollars because of bodily injury to
 or death of one person in any one accident, and, subject to the
 limit for one person, the amount of thirty thousand dollars
 because of bodily injury to or death of two or more persons
 in any one accident, and the amount of ten thousand dollars
 because of injury to or destruction of property of others in
 any one accident; and with respect to accidents occurring on or
 after January 1, 1983, the amount of twenty thousand dollars
 because of bodily injury to or death of one person in any one
 accident, and, subject to the limit for one person, the amount
 of forty thousand dollars because of bodily injury to or death
 of two or more persons in any one accident, and the amount of
 fifteen thousand dollars because of injury to or destruction of
 property of others in any one accident.
    12.    Registration.  Registration "Registration" means a
 registration certificate or certificates and registration
 plates issued under the laws of this state pertaining to the
 registration of motor vehicles.
    13.    Special mobile equipment.  "Special mobile equipment"
 means every vehicle not designed or used primarily for the
 transportation of persons or property and incidentally operated
 or moved over the highways, including road construction or
 maintenance machinery, ditch=digging apparatus, and implements
 of husbandry as defined in section 321.1, subsection 32. This
 description does not exclude other vehicles which are within
 the general terms of this subsection.
    14.    State.  Any "State" means any state, territory, or
 possession of the United States, the District of Columbia, or
 any province of the Dominion of Canada.
    Sec. 53.  Section 321A.30, Code 2016, is amended to read as
 follows:
    321A.30  Rights not affected.
 This chapter shall not prevent the owner of a motor vehicle,
 the registration of which has been suspended hereunder, from
 effecting a bona fide sale of such motor vehicle to another
 person whose rights or privileges are not suspended under this
 chapter nor prevent the registration of such motor vehicle by
 such transferee. This chapter shall not in any wise way affect
 the rights of any secured party or lessor of a motor vehicle
 registered in the name of another as owner who becomes subject
 to the provisions of this chapter.
    Sec. 54.  Section 321J.20, subsection 9, Code 2016, is
 amended to read as follows:
    9.  Notwithstanding any provision of this chapter to the
 contrary, the department may issue a temporary restricted
 license to a person eligible for a temporary restricted
 license under this section if the person is also eligible for a
 temporary restricted license under section 321.215, provided
 the requirements of each this section and section 321.215 are
 satisfied.
    Sec. 55.  Section 331.207, subsection 3, Code 2016, is
 amended to read as follows:
    3.  The supervisor representation plans submitted at the
 special election shall be stated in substantially the following
 manner:
 The individual members of the board of supervisors in ......
 county, Iowa, shall be elected:
 Plan "one." "one". At large and without district residence
 requirements for the members.
 Plan "two." "two". At large but with equal=population
 district residence requirements for the members.
 Plan "three." "three". From single=member equal=population
 districts in which the electors of each district shall elect
 one member who must reside in that district.
    Sec. 56.  Section 357A.2, subsection 4, paragraph d,
 subparagraph (2), subparagraph division (c), Code 2016, is
 amended to read as follows:
    (c)  If the city reserving the right to provide service
 fails to provide service within three years of receipt of the
 water plan submitted under paragraph "a", the city waives
 its right to provide water service and shall provide notice
 to the district or association by certified mail and the
 district or association may provide service within the area
 of the water plan submitted under paragraph "a". If the city
 fails to provide notice to the district or association, the
 district or association may provide service in accordance with
 this paragraph "d", regardless of whether the district or
 association has received such notice.
    Sec. 57.  Section 357A.2, subsection 4, paragraph d,
 subparagraph (3), Code 2016, is amended to read as follows:
    (3)  If the district or association fails to provide
 service within three years after a city waives the right to
 provide water service under this paragraph "d", the district
 or association shall provide notice to the city by certified
 mail and the city may provide service within the area of the
 water plan submitted under paragraph "a". If the district
 or association fails to provide notice to the city, the city
 may provide service in accordance with this paragraph "d",
 regardless of whether the city has received such notice.
    Sec. 58.  Section 384.78, Code 2016, is amended to read as
 follows:
    384.78  Prior proceedings.
    Projects and proceedings for the levy of special assessments
 and the issuance of special assessment bonds commenced
 before the effective date of the city code may be hereafter
 consummated and completed and special assessments levied and
 special assessment bonds issued as required or permitted by
 any statute or other law amended or repealed by 64GA 1972 Iowa
 Acts, chapter ch. 1088, as though such repeal or amendment
 had not occurred, and the rights, duties, and interests
 flowing from such projects and proceedings remain valid
 and enforceable. Without limiting the foregoing, projects
 commenced prior to said effective date may be financed by the
 issuance of special assessment bonds and other bonds under any
 such amended or repealed law or by the issuance of special
 assessment bonds, or other bonds under the city code. For the
 purposes of this section, commencement of a project includes
 but is not limited to action taken by the council or authorized
 officer to fix a date for a hearing in connection with any part
 of a public improvement, and commencement of proceedings for
 the levy of special assessments and the issuance of special
 assessment bonds includes but is not limited to action taken by
 the council to fix a date for a hearing in connection with any
 public improvement proposed to be financed in whole or in part
 through special assessments.
    Sec. 59.  Section 384.84, subsection 6, paragraph b, Code
 2016, is amended to read as follows:
    b.  A legal entity described in subsection 3, paragraph
 "e" or "f", shall have the same powers and duties as a city
 utility or enterprise under paragraph "a" of this subsection
  with respect to filing suit in an appropriate court against a
 customer if the customer's account for such services becomes
 delinquent.
    Sec. 60.  Section 384.103, subsection 2, paragraph b, Code
 2016, is amended to read as follows:
    b.  In that event event, the chief officer or official of the
 governing body or the governing body may accept, enter into,
 and make payment under a contract for emergency repairs without
 holding a public hearing and advertising for bids, and the
 provisions of chapter 26 do not apply.
    Sec. 61.  Section 403A.3, subsections 4, 5, and 7, Code 2016,
 are amended to read as follows:
    4.  To lease or rent any dwellings, accommodations, lands,
 buildings, structures, or facilities embraced in any project
 and, subject to the limitations contained in this chapter with
 respect to the rental of dwellings in housing projects, to
 establish and revise the rents or charges therefor; to own,
 hold, and improve real or personal property; to purchase,
 lease, obtain options upon, acquire by gift, grant, bequest,
 devise, or otherwise any real or personal property or any
 interest therein; to acquire by the exercise of the power of
 eminent domain any real property subject to section 403A.20;
 to sell, lease, exchange, transfer, assign, pledge, or dispose
 of any real or personal property or any interest therein; to
 insure or provide for the insurance, in any stock or mutual
 company of any real or personal property or operations of the
 municipality against any risks or hazards; and to procure
 or agree to the procurement of federal or state government
 insurance or guarantees of the payment of any bonds or parts
 thereof issued by a municipality, including the power to pay
 premiums on any such insurance.
    5.  To invest any funds held in connection with a housing
 project in reserve or sinking funds, or any fund not required
 for immediate disbursement, in property or securities which
 banks designated as state depositories may use to secure
 the deposit of state funds; and to redeem its bonds at the
 redemption price established therein or to purchase its bonds
 at less than such redemption price, all bonds so redeemed or
 purchased to be canceled.
    7.  To conduct examinations and investigations and to hear
 testimony and take proof under oath at public or private
 hearings on any matter material for its information; to
 administer oaths, issue subpoenas requiring the attendance of
 witnesses or the production of books and papers and to issue
 commissions for the examination of witnesses who are outside
 of the state or unable to attend or excused from attendance;
 and to make available to appropriate agencies, including those
 charged with the duty of abating or requiring the correction
 of nuisances or like conditions or of demolishing unsafe
 or insanitary structures within its area of operation, its
 findings and recommendations with regard to any building or
 property where conditions exist which are dangerous to the
 public health, morals, safety, or welfare.
    Sec. 62.  Section 403A.13, Code 2016, is amended to read as
 follows:
    403A.13  Form and sale of bonds.
    1.  Bonds of a municipality shall be authorized by its
 resolution and may be issued in one or more series and shall
 bear such date or dates, mature at such time or times, bear
 interest at such rate or rates, not exceeding that permitted by
 chapter 74A, be in such denomination or denominations, be in
 such form either coupon or registered, carry such conversion
 or registration privileges, have such rank or priority, be
 executed in such manner, be payable in such medium of payment,
 at such place or places, and be subject to such terms of
 redemption (with redemption, with or without premium) premium,
  as such resolution, its trust indenture or mortgage may
 provide.
    2.  The bonds may be sold at public or private sale at not
 less than par.
    3.  If the officers of the municipality whose signatures
 appear on any bonds or coupons shall cease to be such officers
 before the delivery of the bonds, their signatures shall,
 nevertheless, be valid and sufficient for all purposes,
 the same as if the officers had remained in office until
 such delivery. Any provision of any law to the contrary
 notwithstanding, any bonds issued pursuant to this chapter
 shall be fully negotiable.
    4.  In any suit, action or proceedings involving the validity
 or enforcement of any bond issued pursuant to this chapter or
 the security therefor, any such bond reciting in substance that
 it has been issued by the municipality pursuant to this chapter
 shall be conclusively deemed to have been issued for such
 purpose and the housing project in respect to which such bond
 was issued shall be conclusively deemed to have been planned,
 located, and carried out in accordance with the purposes and
 provisions of this chapter.
    Sec. 63.  Section 403A.14, subsection 1, paragraph j, Code
 2016, is amended to read as follows:
    j.  Exercise all or any part or combination of the powers
 herein granted; make such covenants (other covenants, other
  than and in addition to the covenants herein expressly
 authorized) authorized; and do any and all such acts and
 things as may be necessary or convenient or desirable in order
 to secure its bonds, or, in the absolute discretion of said
 municipality, as will tend to make the bonds more marketable
 notwithstanding that such covenants, acts or things may not be
 enumerated herein.
    Sec. 64.  Section 403A.16, unnumbered paragraph 1, Code
 2016, is amended to read as follows:
    A municipality shall have power by its resolution, trust
 indenture, mortgage, lease or other contract to confer upon any
 obligee the right (in right, in addition to all rights that may
 otherwise be conferred) conferred, upon the happening of an
 event of default as defined in such resolution or instrument,
 by suit, action, or proceeding in any court of competent
 jurisdiction to:
    Sec. 65.  Section 403A.17, Code 2016, is amended to read as
 follows:
    403A.17  Exemption of property from execution sale.
    All property (including funds) property, including funds,
  owned or held by a municipality for the purposes of this
 chapter shall be exempt from levy and sale by virtue of an
 execution, and no execution or other judicial process shall
 issue against the same nor shall any judgment against the
 municipality be a charge or lien upon such property:  Provided,
 however property. However, that the provisions of this section
 shall not apply to or limit the right of obligees to foreclose
 or otherwise enforce any mortgage or other security executed
 or issued pursuant to this chapter or the right of obligees
 to pursue any remedies for the enforcement of any pledge or
 lien on rents, fees, or revenues or the right of the federal
 government to pursue any remedies conferred upon it pursuant to
 the provisions of this chapter.
    Sec. 66.  Section 403A.18, Code 2016, is amended to read as
 follows:
    403A.18  Transfer of possession or title to federal
 government.
    In any contract with the federal government for annual
 contributions to a municipality, the municipality may
 obligate itself (which itself, which obligation shall be
 specifically enforceable and shall not constitute a mortgage,
 notwithstanding any other law) law, to convey to the federal
 government possession of or title to the housing project
 to which such contract relates, upon the occurrence of a
 substantial default (as as defined in such contract) contract
  with respect to the covenant or conditions to which the
 municipality is subject; and such contract may further provide
 that in case of such conveyance, the federal government may
 complete, operate, manage, lease, convey, or otherwise deal
 with the housing project and funds in accordance with the
 terms of such contract:  Provided, that the contract requires
 that, as soon as practicable after the federal government is
 satisfied that all defaults with respect to the housing project
 have been cured and that the housing project will thereafter
 be operated in accordance with the terms of the contract, the
 federal government shall reconvey to the municipality the
 housing project as then constituted.
    Sec. 67.  Section 404.5, Code 2016, is amended to read as
 follows:
    404.5  Physical review of property by assessor.
    1.  The local assessor shall review each first=year
 application by making a physical review of the property, to
 determine if the improvements made increased the actual value
 of the qualified real estate by at least fifteen percent or
 at least ten percent in the case of real property assessed
 as residential property or the applicable percent increase
 requirement adopted by the city or county under section
 404.2. If the assessor determines that the actual value of
 that real estate has increased by at least the requisite
 percent, the assessor shall proceed to determine the actual
 value of the property and certify the valuation determined
 pursuant to section 404.3 to the county auditor at the time of
 transmitting the assessment rolls. However, if a new structure
 is erected on land upon which no structure existed at the
 start of the new construction, the assessor shall proceed to
 determine the actual value of the property and certify the
 valuation determined pursuant to section 404.3 to the county
 auditor at the time of transmitting the assessment rolls. The
 assessor shall notify the applicant of the determination, and
 the assessor's decision may be appealed to the local board
 of review at the times specified in section 441.37. If an
 application for exemption is denied as a result of failure to
 sufficiently increase the value of the real estate as provided
 in section 404.3, the owner may file a first annual application
 in a subsequent year when additional improvements are made to
 satisfy requirements of section 404.3, and the provisions of
 section 404.4 shall apply. After the tax exemption is granted,
 the local assessor shall continue to grant the tax exemption,
 with periodic physical review by the assessor, for the time
 period specified in section 404.3, subsection 1, 2, 3, or 4, or
 specified in the different schedule if one has been adopted,
 under which the exemption was granted. The tax exemptions for
 the succeeding years shall be granted without the taxpayer
 having to file an application for the succeeding years.
    2.  For the purposes of this section, the actual value of
 the property upon which the value of improvements in the form
 of rehabilitation or additions to existing structures shall
 be determined shall be the lower of either the amount listed
 on the assessment rolls in the assessment year in which such
 improvements are first begun or the price paid by the owner if
 the improvements in the form of rehabilitation or additions to
 existing structures were begun within one year of the date the
 property was purchased and the sale was a fair and reasonable
 exchange between a willing buyer and a willing seller,
 neither being under any compulsion to buy or sell and each
 being familiar with all the facts relating to the particular
 property.
    Sec. 68.  Section 422.7, subsections 12A, 20, and 37, Code
 2016, are amended to read as follows:
    12A.  a.  If the adjusted gross income includes income or
 loss from a business operated by the taxpayer, and if the
 business does not qualify for the adjustment under subsection
 12, an additional deduction shall be allowed in computing the
 income or loss from the business if the business hired for
 employment in the state during its annual accounting period
 ending with or during the taxpayer's tax year either of the
 following:
    a.  (1)  An individual domiciled in this state at the time of
 the hiring who meets any of the following conditions:
    (1)  (a)  Has been convicted of a felony in this or any other
 state or the District of Columbia.
    (2)  (b)  Is on parole pursuant to chapter 906.
    (3)  (c)  Is on probation pursuant to chapter 907, for an
 offense other than a simple misdemeanor.
    (4)  (d)  Is in a work release program pursuant to chapter
 904, division IX.
    b.  (2)  An individual, whether or not domiciled in this
 state at the time of the hiring, who is on parole or probation
 and to whom the interstate probation and parole compact under
 section 907A.1, Code 2001, applies, or to whom the interstate
 compact for adult offender supervision under chapter 907B
 applies.
    b.  The amount of the additional deduction is equal to
 sixty=five percent of the wages paid to individuals, but shall
 not exceed twenty thousand dollars per individual, named in
 paragraphs "a" paragraph "a", subparagraphs (1) and "b" (2)
  who were hired for the first time by that business during the
 annual accounting period for work done in the state. This
 additional deduction is allowed for the wages paid to those
 individuals successfully completing a probationary period
 during the twelve months following the date of first employment
 by the business and shall be deducted at the close of the
 annual accounting period.
    c.  The additional deduction shall not be allowed for wages
 paid to an individual who was hired to replace an individual
 whose employment was terminated within the twelve=month
 period preceding the date of first employment. However, if
 the individual being replaced left employment voluntarily
 without good cause attributable to the employer or if the
 individual was discharged for misconduct in connection with
 the individual's employment as determined by the department
 of workforce development, the additional deduction shall be
 allowed.
    d.  A taxpayer who is a partner of a partnership or a
 shareholder of a subchapter S corporation, may deduct that
 portion of wages qualified under this subsection paid by the
 partnership or subchapter S corporation based on the taxpayer's
 pro rata share of the profits or losses from the partnership or
 subchapter S corporation.
    e.  The department shall develop and distribute information
 concerning the deduction available for businesses employing
 persons named in paragraphs "a" paragraph "a", subparagraphs (1)
  and "b" (2).
    20.  a.  Subtract, to the extent included, the proceeds
 received pursuant to a judgment in or settlement of a lawsuit
 against the manufacturer or distributor of a Vietnam herbicide
 for damages resulting from exposure to the herbicide. This
 subsection applies to proceeds received by a taxpayer who is a
 disabled veteran or who is a beneficiary of a disabled veteran.
    b.  For purposes of this subsection:
    a.  (1)  "Vietnam herbicide" means a herbicide, defoliant
 or other causative agent containing dioxin, including, but
 not limited to, Agent Orange, used in the Vietnam Conflict
 beginning December 22, 1961, and ending May 7, 1975, inclusive.
    b.  (2)  "Agent Orange" means the herbicide composed of
 trichlorophenoxyacetic acid and dichlorophenoxyacetic acid and
 the contaminant dioxin (TCDD).
    37.  a.  Notwithstanding the method for computing income from
 an installment sale under section 453 of the Internal Revenue
 Code, as defined in section 422.3, the method to be used in
 computing income from an installment sale shall be the method
 under section 453 of the Internal Revenue Code, as amended up
 to and including January 1, 2000. A taxpayer affected by this
 subsection shall make adjustments in the adjusted gross income
 pursuant to rules adopted by the director.
    b.  The adjustment to net income provided in this subsection
 is repealed for tax years beginning on or after January 1,
 2002. However, to the extent that a taxpayer using the accrual
 method of accounting reported the entire capital gain from the
 sale or exchange of property on the Iowa return for the tax
 year beginning in the 2001 calendar year and the capital gain
 was reported on the installment method on the federal income
 tax return, any additional installment from the capital gain
 reported for federal income tax purposes is not to be included
 in net income in tax years beginning on or after January 1,
 2002.
    Sec. 69.  Section 441.10, Code 2016, is amended to read as
 follows:
    441.10  Deputies ==== examination and appointment ==== suspension
 or discharge.
    1.  Immediately after the appointment of the assessor,
 and at other times as the conference board directs, one or
 more deputy assessors may be appointed by the assessor. Each
 appointment shall be made from either the list of eligible
 candidates provided by the director of revenue, which shall
 contain only the names of those persons who achieve a score of
 seventy percent or greater on the examination administered by
 the director of revenue, or the list of candidates eligible
 for appointment as city or county assessor. Examinations for
 the position of deputy assessor shall be conducted in the same
 manner as examinations for the position of city or county
 assessor.
    2.  Following the administration of the examination, the
 director of revenue shall establish a register containing
 the names, in alphabetical order, of all individuals who are
 eligible for appointment as a deputy assessor. The test scores
 of individuals on the register shall be given to a city or
 county conference board upon request. All eligible individuals
 shall remain on the register for a period of two years
 following the date of certification granted by the director.
    3.  Incumbent deputy assessors who have served six
 consecutive years shall be placed on the register of
 individuals eligible for appointment as deputy assessor. In
 order to be appointed to the position of deputy assessor, the
 deputy assessor shall comply with the continuing education
 requirements. The number of credits required for certification
 as eligible for appointment as a deputy assessor in a
 jurisdiction other than where the deputy assessor is currently
 serving shall be prorated according to the percentage of the
 deputy assessor's term which is covered by the continuing
 education requirements of section 441.8. The credit necessary
 for certification for appointment is the product of ninety
 multiplied by the quotient of the number of months served of
 a deputy assessor's term covered by the continuing education
 requirements of section 441.8 divided by seventy=two. If the
 number of credits necessary for certification for appointment
 as determined under this paragraph subsection results in a
 partial credit hour, the credit hour shall be rounded to the
 nearest whole number.
    4.  The assessor may peremptorily suspend or discharge
 any deputy assessor under the assessor's direction upon
 written charges for neglect of duty, disobedience of orders,
 misconduct, or failure to properly perform the deputy
 assessor's duties. Within five days after delivery of written
 charges to the employee, the deputy assessor may appeal by
 written notice to the secretary or chairperson of the examining
 board. The board shall grant the deputy assessor a hearing
 within fifteen days, and a decision by a majority of the
 examining board is final. The assessor shall designate one of
 the deputies as chief deputy, and the assessor shall assign to
 each deputy the duties, responsibilities, and authority as is
 proper for the efficient conduct of the assessor's office.
    Sec. 70.  Section 445.3, Code 2016, is amended to read as
 follows:
    445.3  Actions authorized.
    1.  In addition to all other remedies and proceedings
 now provided by law for the collection of taxes, the county
 treasurer may bring or cause an ordinary suit at law to be
 commenced and prosecuted in the treasurer's name for the use
 and benefit of the county for the collection of taxes from
 any person, as shown by the county system in the treasurer's
 office, and the suit shall be in all respects commenced, tried,
 and prosecuted to final judgment the same as provided for
 ordinary actions.
    2.  The commencement of actions for ad valorem taxes
 authorized under this section shall not begin until the
 issuance of a tax sale certificate under the requirements of
 section 446.19. The commencement of actions for all other
 taxes authorized under this section shall not begin until ten
 days after the publication of tax sale under the requirements
 of section 446.9, subsection 2. This paragraph subsection does
 not apply to the collection of ad valorem taxes under section
 445.32, and grain handling taxes under section 428.35.
    3.  Notwithstanding the provisions in section 535.3,
 interest on the judgment shall be at the rate provided
 in section 447.1 and shall commence from the month of the
 commencement of the action. This interest shall be in lieu of
 the interest assessed under section 445.39 from and after the
 month of the commencement of the action.
    4.  An appeal may be taken to the Iowa supreme court as in
 other civil cases regardless of the amount involved.
    5.  Notwithstanding any other provisions in this section,
 if the treasurer is unable or has reason to believe that the
 treasurer will be unable to offer land at the annual tax sale
 to collect the total amount due, the treasurer may immediately
 collect the total amount due by the commencement of an action
 under this section.
    6.  Notwithstanding any other provision of law, if a statute
 authorizes the collection of a delinquent tax, assessment,
 rate, or charge by tax sale, the tax, assessment, rate, or
 charge, including interest, fees, and costs, may also be
 collected under this section and section 445.4.
    7.  This section is remedial and shall apply to all
 delinquent taxes included in a tax sale certificate of purchase
 issued to a county. Upon assignment of a county=held tax sale
 certificate, this section shall not apply to the assignee.
    Sec. 71.  Section 452A.10, Code 2016, is amended to read as
 follows:
    452A.10  Required records.
    1.  a.  A motor fuel or special fuel supplier, restrictive
 supplier, importer, exporter, blender, dealer, user, common
 carrier, contract carrier, terminal, or nonterminal storage
 facility shall maintain, for a period of three years, records
 of all transactions by which the supplier, restrictive
 supplier, or importer withdraws from a terminal or a
 nonterminal storage facility within this state or imports into
 this state motor fuel or undyed special fuel together with
 invoices, bills of lading, and other pertinent records and
 papers as required by the department.
    b.  If in the normal conduct of a supplier's, restrictive
 supplier's, importer's, exporter's, blender's, dealer's,
 user's, common carrier's, contract carrier's, terminal's,
 or nonterminal storage facility's business the records are
 maintained and kept at an office outside this state, the
 records shall be made available for audit and examination by
 the department at the office outside this state, but the audit
 and examination shall be without expense to this state.
    2.  Each distributor handling motor fuel or special fuel in
 this state shall maintain for a period of three years records
 of all motor fuel or undyed special fuel purchased or otherwise
 acquired by the distributor, together with delivery tickets,
 invoices, and bills of lading, and any other records required
 by the department.
    3.  The department, after an audit and examination of records
 required to be maintained under this section, may authorize
 their disposal upon the written request of the supplier,
 restrictive supplier, importer, exporter, blender, dealer,
 user, carrier, terminal, nonterminal storage facility, or
 distributor.
    Sec. 72.  Section 452A.57, subsection 8, Code 2016, is
 amended to read as follows:
    8.  "Motor vehicle" shall mean and include all vehicles
 (except vehicles, except those operated on rails) rails,
  which are propelled by internal combustion engines and
 are of such design as to permit their mobile use on public
 highways for transporting persons or property. A farm tractor
 while operated on a farm or for the purpose of hauling farm
 machinery, equipment, or produce shall not be deemed to be
 a motor vehicle. "Motor vehicle" shall not include "mobile
 machinery and equipment" as defined in this section.
    Sec. 73.  Section 452A.66, Code 2016, is amended to read as
 follows:
    452A.66  Statutes applicable to motor fuel tax.
    1.  The appropriate state agency shall administer the taxes
 imposed by this chapter in the same manner as and subject to
 section 422.25, subsection 4, and section 423.35.
    2.  All the provisions of section 422.26 shall apply in
 respect to the taxes, penalties, interest, and costs imposed
 by this chapter excepting that as applied to any tax imposed
 by this chapter, the lien therein provided in section 422.26
  shall be prior and paramount over all subsequent liens upon any
 personal property within this state, or right to such personal
 property, belonging to the taxpayer without the necessity of
 recording as therein provided. The requirements for recording
 shall, as applied to the tax imposed by this chapter, apply
 only to the liens upon real property. When requested to do
 so by any person from whom a taxpayer is seeking credit,
 or with whom the taxpayer is negotiating the sale of any
 personal property, or by any other person having a legitimate
 interest in such information, the director shall, upon being
 satisfied that such a situation exists, inform such person as
 to the amount of unpaid taxes due by such taxpayer under the
 provisions of this chapter. The giving of such information
 under such circumstances shall not be deemed a violation of
 section 452A.63 as applied to this chapter.
    Sec. 74.  Section 453A.1, subsection 4, Code 2016, is amended
 to read as follows:
    4.  "Cigarette" means any roll for smoking made wholly or in
 part of tobacco, or any substitute for tobacco, irrespective of
 size or shape and irrespective of tobacco or any substitute for
 tobacco being flavored, adulterated, or mixed with any other
 ingredient, where such roll has a wrapper or cover made of
 paper or any other material. Provided the definition herein
  However, "cigarette" shall not be construed to include cigars.
    Sec. 75.  Section 455B.133B, subsection 4, paragraph c,
 subparagraph (2), Code 2016, is amended to read as follows:
    (2)  A person invited to attend a stakeholder meeting is not
 entitled to receive a per diem as specified in section 7E.6
 and shall not be not reimbursed for expenses incurred while
 attending the meeting.
    Sec. 76.  Section 455B.133C, subsection 4, paragraph c,
 subparagraph (2), Code 2016, is amended to read as follows:
    (2)  A person invited to attend a stakeholder meeting is not
 entitled to receive a per diem as specified in section 7E.6
 and shall not be not reimbursed for expenses incurred while
 attending the meeting.
    Sec. 77.  Section 455B.183, subsection 2, paragraph a, Code
 2016, is amended to read as follows:
    a.  The submitted plans and specifications are in substantial
 compliance with departmental rules and the Iowa Standards
  standards for Sewer Systems sewer systems and the Iowa
 Standards standards for Water Supply Distribution Systems water
 supply distribution systems.
    Sec. 78.  Section 455B.187, Code 2016, is amended to read as
 follows:
    455B.187  Water well construction.
    1.  A contractor shall not engage in well construction
 or reconstruction without first being certified as required
 in this part and department rules adopted pursuant to this
 part. Water wells shall not be constructed, reconstructed,
 or abandoned by a person except as provided in this part or
 rules adopted pursuant to this part. Within thirty days after
 construction or reconstruction of a well, a contractor shall
 provide well information required by rule to the department and
 the Iowa geological survey.
    2.  A landowner or the landowner's agent shall not drill
 for or construct a new water well without first obtaining a
 permit for this activity from the department. The department
 shall not issue a permit to any person for this activity unless
 the person first registers with the department all wells,
 including abandoned wells, on the property. The department
 may delegate the authority to issue a permit to a county board
 of supervisors or the board's designee. In the event of such
 delegation, the department shall retain concurrent authority.
 The commission shall adopt rules pursuant to chapter 17A to
 implement this paragraph subsection.
    3.  The director may charge a fee for permits issued pursuant
 to this section. All fees collected pursuant to this section
 shall be deposited into the private water supply system account
 within the water quality protection fund created in section
 455B.183A.
    4.  Notwithstanding the provisions of this section, a county
 board of supervisors or the board's designee may grant an
 exemption from the permit requirements to a landowner or the
 landowner's agent if an emergency drilling is necessary to meet
 an immediate need for water. The exemption shall be effective
 immediately upon approval of the county board of supervisors or
 the board's designee. The board of supervisors or the board's
 designee shall notify the director within thirty days of the
 granting of an exemption.
    5.  In the case of property owned by a state agency, a person
 shall not drill for or construct a new water well without
 first registering with the department the existence of any
 abandoned wells on the property. The department shall develop
 a prioritized closure program and time frame for the completion
 of the program, and shall adopt rules to implement the program.
    Sec. 79.  Section 455B.474, subsection 3, unnumbered
 paragraph 1, Code 2016, is amended to read as follows:
    Standards of performance for new underground storage
 tanks which shall include but are not limited to design,
 construction, installation, release detection, and
 compatibility standards. Until the effective date of the
 standards adopted by the commission and after January 1, 1986,
 a person shall not install an underground storage tank for
 the purpose of storing regulated substances unless the tank
 (whether tank, whether of single or double wall construction)
  construction, meets all the following conditions:
    Sec. 80.  Section 460.305, Code 2016, is amended to read as
 follows:
    460.305  Sinkholes ==== conservation easement programs program.
    1.  The department shall develop and implement a program for
 the prevention of groundwater contamination through sinkholes.
 The program shall provide for education of landowners and
 encourage responsible chemical and land management practices in
 areas of the state prone to the formation of sinkholes.
    2.  The program may provide financial incentives for land
 management practices and the acquisition of conservation
 easements around sinkholes. The program may also provide
 financial assistance for the cleanup of wastes dumped into
 sinkholes.
    3.  The program shall be coordinated with the groundwater
 protection programs of the department of natural resources
 and other local, state, or federal government agencies which
 could compensate landowners for resource protection measures.
 The department shall use moneys appropriated for this purpose
 from the agriculture management account of the groundwater
 protection fund created in section 455E.11.
    Sec. 81.  Section 468.13, Code 2016, is amended to read as
 follows:
    468.13  Procedure on report ==== classification.
    1.  Upon the filing of the report of the engineer
 recommending the establishment of the levee or drainage
 district, the board shall at its first regular, adjourned, or
 special meeting examine and consider the same, and, if the plan
 is not approved the board may employ said the same engineer
 or another disinterested engineer to report another plan or
 make additional examination and surveys and file an additional
 report covering such matters as the board may direct.
 Additional surveys and reports must be made in accordance with
 the provisions of sections 468.11 and 468.12. At any time
 prior to the final adoption of the plans they may be amended,
 and as finally adopted by the board shall be conclusive unless
 the action of the board in finally adopting them shall be
 appealed from as hereinafter provided.
    2.  If the petition or other landowners requested a
 classification of the district prior to establishment, the
 board shall order a classification as provided by sections
 468.38 through 468.44 after they have approved the report
 of the engineer as a tentative plan. The notice of hearing
 provided by section 468.14 shall also include the requirements
 of the notice of hearing provided in section 468.45 as to this
 classification, and the hearing on the petition provided in
 section 468.21 shall also include the matters to be heard as
 provided in section 468.46.
    3.  If the board establishes the district as provided in
 section 468.22, the classification which is finally approved
 at said the hearing by the board shall remain the basis of
 all future assessments for the purposes of said district as
 provided in section 468.49. The landowners shall have the
 same right of appeal from this classification as they would
 have if the petition had not requested a classification prior
 to establishment and the classification had been made after
 establishment.
    Sec. 82.  Section 468.35, subsection 2, Code 2016, is amended
 to read as follows:
    2.  A bid shall be in writing, specifying the portion
 of the work upon which the bid is made, and filed with the
 auditor. The bid shall be accompanied with a bid security.
 The bid security shall be in the form of a deposit of cash, a
 certified check on and certified by a bank in Iowa, a certified
 share draft drawn on a credit union in Iowa, or a bid bond
 with a corporate surety satisfactory to the board as provided
 in section 73A.20. The bid security must be payable to the
 auditor or the auditor's order at the auditor's office in a
 sum equal to five percent of the amount of the bid. However,
 if the maximum limit on a bid security would cause a denial
 of funds or services from the federal government which would
 otherwise be available, or if the maximum limit would otherwise
 be inconsistent with the requirements of federal law, the
 maximum limit may be suspended to the extent necessary to
 prevent denial of federal funds or services or to eliminate
 the inconsistency with federal requirements. The cash, check,
 or share draft of an unsuccessful bidder shall be returned,
 and the bid bond of an unsuccessful bidder shall be canceled.
 The bid security of a successful bidder shall be maintained
 as a guarantee that the bidder will enter into a contract in
 accordance with the bids.
    Sec. 83.  Section 468.103, Code 2016, is amended to read as
 follows:
    468.103  Final settlement ==== claims for damages.
    1.  If it the board finds the work under any contract has
 been completed and accepted, the board shall compute the
 balance due, and if there are no liens on file against such
 balance, it shall enter of record an order directing the
 auditor to draw a warrant in favor of said the contractor upon
 the levee or drainage fund of said the district or give the
 contractor an order directing the county treasurer to deliver
 to the contractor improvement certificates or drainage bonds,
 as the case may be, for such balance found to be due, but
 such warrants, improvement certificates or bonds shall not be
 delivered to the contractor until the expiration of thirty days
 after the acceptance of the work.
    2.  If any claims for damages have been filed as provided
 in section 468.102, the board shall review said claims and
 determine said the claims. If the determination by the board
 on any claim for damages results in a finding by the board
 that the damages resulting to the claimant were due to the
 negligence of the contractor, then the board shall provide for
 payment of said the claim out of the remaining funds owing to
 the contractor. If the determination by the board results
 in a finding that the damages resulting to the claimant were
 not due to the negligence of the contractor, but resulted from
 unavoidable necessity in the performance of the contract, then
 the board shall allow for payment of said the claim in the
 amount fixed by the board out of the funds in said the drainage
 district.
    Sec. 84.  Section 475A.6, Code 2016, is amended to read as
 follows:
    475A.6  Certification of expenses to utilities division.
    1.  a.  The consumer advocate shall determine the advocate's
 expenses, including a reasonable allocation of general office
 expenses, directly attributable to the performance of the
 advocate's duties involving specific persons subject to direct
 assessment, and shall certify the expenses to the utilities
 division not less than quarterly. The expenses shall then be
 includable in the expenses of the division subject to direct
 assessment under section 476.10.
    b.  The consumer advocate shall annually, within ninety days
 after the close of each fiscal year, determine the advocate's
 expenses, including a reasonable allocation of general office
 expenses, attributable to the performance of the advocate's
 duties generally, and shall certify the expenses to the
 utilities division. The expenses shall then be includable in
 the expenses of the division subject to remainder assessment
 under section 476.10.
    2.  The consumer advocate is entitled to notice and
 opportunity to be heard in any utilities board proceeding
 on objection to an assessment for expenses certified by the
 consumer advocate. Expenses assessed under this section shall
 not exceed the amount appropriated for the consumer advocate
 division of the department of justice.
    3.  The office of consumer advocate may expend additional
 funds, including funds for outside consultants, if those
 additional expenditures are actual expenses which exceed
 the funds budgeted for the performance of the advocate's
 duties. Before the office expends or encumbers an amount in
 excess of the funds budgeted, the director of the department
 of management shall approve the expenditure or encumbrance.
 Before approval is given, the director of the department of
 management shall determine that the expenses exceed the funds
 budgeted by the general assembly to the office of consumer
 advocate and that the office does not have other funds from
 which such expenses can be paid. Upon approval of the director
 of the department of management, the office may expend and
 encumber funds for excess expenses. The amounts necessary
 to fund the excess expenses shall be collected from those
 utilities or persons which caused the excess expenditures,
 and the collections shall be treated as repayment receipts as
 defined in section 8.2, subsection 8.
    Sec. 85.  Section 476B.6, subsection 5, paragraph d, Code
 2016, is amended to read as follows:
    d.  If the tax credit application is filed by a partnership,
 limited liability company, S corporation, estate, trust, or
 other reporting entity, all of whose the income of which is
 taxed directly to its equity holders or beneficiaries for the
 taxes imposed under chapter 422, division V, or under chapter
 423, 432, or 437A, the tax credit certificate shall be issued
 directly to the partnership, limited liability company, S
 corporation, estate, trust, or other reporting entity.
    Sec. 86.  Section 476C.4, subsection 4, paragraph d, Code
 2016, is amended to read as follows:
    d.  If the tax credit application is filed by a partnership,
 limited liability company, S corporation, estate, trust, or
 other reporting entity, all of whose the income of which is
 taxed directly to its equity holders or beneficiaries for the
 taxes imposed under chapter 422, division V, or under chapter
 423, 432, or 437A, the tax credit certificate shall be issued
 directly to the partnership, limited liability company, S
 corporation, estate, trust, or other reporting entity.
    Sec. 87.  Section 478.14, Code 2016, is amended to read as
 follows:
    478.14  Service furnished.
    1.  Any city which owns or operates a system for the
 distribution of electric light or power, and which has obtained
 electric energy for such distribution from any person or firm
 or corporation owning or operating an electric light and power
 plant or transmission line, shall be entitled to have the
 service reasonably needed by such municipality and its patrons
 continued at and for a reasonable rate and charge and under
 reasonable rules of service.
    2.  It shall be unlawful for the owner or operator of such
  the light and power plant or transmission line to disconnect
 or discontinue such service (except service, except during
 nonpayment of reasonable charges) charges, so long as such the
  operator holds or enjoys any franchise to go upon or use any
 public streets, highways, or grounds.
    3.  Until the municipality and the operator shall agree upon
 a rate or charge for such the service the municipality shall
 pay and the operator shall accept the rate provided in the
 expired contract if any existed, and, if none existed, then the
 rate before paid. This shall be without prejudice, however,
 to the right of either party to test in court or before any
 lawfully constituted rate=making tribunal the reasonableness
 of such the rate.
    4.  This section shall not apply if the original service
 to the municipality was given in case of emergency or for any
 other temporary purpose.
    Sec. 88.  Section 481A.22, subsection 4, Code 2016, is
 amended to read as follows:
    4.  It is unlawful for any person to hold, conduct, or to
 participate in a field or retriever trial before the permit
 required by this section has been secured or for any person to
 possess or remove from the trial grounds any birds which have
 not been tagged as required in this section required.
    Sec. 89.  Section 508.37, subsection 6, paragraph d, Code
 2016, is amended to read as follows:
    d.  (1)  All adjusted premiums and present values referred
 to in this section shall for policies of ordinary insurance
 be calculated on the basis of the Commissioners 1958 Standard
 Ordinary Mortality Table commissioners 1958 standard ordinary
 mortality table, provided that for any category of ordinary
 insurance issued on female risks, adjusted premiums and present
 values may be calculated according to an age not more than
 six years younger than the actual age of the insured. The
 calculations for all policies of industrial insurance issued
 before January 1, 1968, shall be made on the basis of the
 1941 Standard Industrial Mortality Table standard industrial
 mortality table, except that a company may file with the
 commissioner a written notice of its election that the adjusted
 premiums and present values shall be calculated on the basis
 of the Commissioners 1961 Standard Industrial Mortality Table
  commissioners 1961 standard industrial mortality table, after
 a specified date before January 1, 1968. Whether or not
 any election has been made, the Commissioners 1961 Standard
 Industrial Mortality Table commissioners 1961 standard
 industrial mortality table shall be the basis for these
 calculations as to all policies of industrial insurance issued
 on or after January 1, 1968. All calculations shall be made
 on the basis of the rate of interest specified in the policy
 for calculating cash surrender values and paid=up nonforfeiture
 benefits, provided that the rate of interest shall not exceed
 three and one=half percent per annum, except that a rate of
 interest not exceeding four percent per annum may be used for
 policies issued on or after July 1, 1974, and prior to January
 1, 1980, and a rate of interest not exceeding five and one=half
 percent per annum may be used for policies issued on or after
 January 1, 1980.
    (2)  However, in calculating the present value under
 subparagraph (1) of any paid=up term insurance with
 accompanying pure endowment, if any, offered as a nonforfeiture
 benefit, the rates of mortality assumed in the case of policies
 of ordinary insurance, may be not more than those shown in the
 Commissioners 1958 Extended Term Insurance Table commissioners
 1958 extended term insurance table, and in the case of policies
 of industrial insurance, may be not more than one hundred
 thirty percent of the rates of mortality according to the
 1941 Standard Industrial Mortality Table standard industrial
 mortality table, except that when the Commissioners 1961
 Standard Industrial Mortality Table commissioners 1961 standard
 industrial mortality table becomes applicable as specified in
 this paragraph, the rates of mortality assumed may be not more
 than those shown in the Commissioners 1961 Industrial Extended
 Term Insurance Table commissioners 1961 industrial extended
 term insurance table. In addition, for insurance issued on
 a substandard basis, the calculation under subparagraph (1)
 of adjusted premiums and present values may be based on any
 other table of mortality that is specified by the company and
 approved by the commissioner.
    Sec. 90.  Section 508.37, subsection 7, paragraph h,
 unnumbered paragraph 1, Code 2016, is amended to read as
 follows:
    Adjusted premiums and present values referred to in this
 section shall for all policies of ordinary insurance be
 calculated on the basis of either the Commissioners 1980
 Standard Ordinary Mortality Table commissioners 1980 standard
 ordinary mortality table or, at the election of the company
 for any one or more specified plans of life insurance, the
 Commissioners 1980 Standard Ordinary Mortality Table with
 Ten=Year Select Mortality Factors commissioners 1980 standard
 ordinary mortality table with ten=year select mortality
 factors; shall for all policies of industrial insurance be
 calculated on the basis of the Commissioners 1961 Standard
 Industrial Mortality Table commissioners 1961 standard
 industrial mortality table; and shall for all policies issued
 in a particular calendar year be calculated on the basis of a
 rate of interest not exceeding the nonforfeiture interest rate
 as defined in paragraph "i" for policies issued in that calendar
 year. However:
    Sec. 91.  Section 508.37, subsection 7, paragraph h,
 subparagraphs (4), (6), (7), (8), and (9), Code 2016, are
 amended to read as follows:
    (4)  In calculating the present value of any paid=up term
 insurance with accompanying pure endowment, if any, offered as
 a nonforfeiture benefit, the rates of mortality assumed may be
 not more than those shown in the Commissioners 1980 Extended
 Term Insurance Table commissioners 1980 extended term insurance
 table for policies of ordinary insurance and not more than the
 Commissioners 1961 Industrial Extended Term Insurance Table
  commissioners 1961 industrial extended term insurance table for
 policies of industrial insurance.
    (6)  For policies issued prior to the operative date of
 the valuation manual, any commissioners standard ordinary
 mortality tables adopted after 1980 by the national association
 of insurance commissioners and approved by rule adopted by the
 commissioner for use in determining the minimum nonforfeiture
 standard may be substituted for the Commissioners 1980
 Standard Ordinary Mortality Table with or without Ten=Year
 Select Mortality Factors commissioners 1980 standard ordinary
 mortality table with or without ten=year select mortality
 factors or for the Commissioners 1980 Extended Term Insurance
 Table commissioners 1980 extended term insurance table.
    (7)  For policies issued on or after the operative date of
 the valuation manual, the valuation manual shall provide the
 commissioners standard mortality table for use in determining
 the minimum forfeiture standard that may be substituted for the
 Commissioners 1980 Standard Ordinary Mortality Table with or
 without Ten=Year Select Mortality Factors commissioners 1980
 standard ordinary mortality table with or without ten=year
 select mortality factors or for the Commissioners 1980 Extended
 Term Insurance Table commissioners 1980 extended term insurance
 table. If the commissioner approves by rule the Commissioners
 Standard Ordinary Mortality Table commissioners standard
 ordinary mortality table adopted by the national association
 of insurance commissioners for use in determining the minimum
 nonforfeiture standard for policies or contracts issued on
 or after the operative date of the valuation manual, then
 that minimum nonforfeiture standard supersedes the minimum
 nonforfeiture standard provided by the valuation manual.
    (8)  Any industrial mortality tables adopted after 1980
 by the national association of insurance commissioners
 and approved by rule adopted by the commissioner for use
 in determining the minimum nonforfeiture standard may be
 substituted for the Commissioners 1961 Standard Industrial
 Mortality Table commissioners 1961 standard industrial
 mortality table or the Commissioners 1961 Industrial Extended
 Term Insurance Table commissioners 1961 industrial extended
 term insurance table.
    (9)  For policies issued on or after the operative date
 of the valuation manual, the valuation manual shall provide
 the Commissioners Standard Mortality Table commissioners
 standard ordinary mortality table for use in determining the
 minimum nonforfeiture standard that may be substituted for
 the Commissioners 1961 Standard Industrial Mortality Table
  commissioners 1961 standard industrial mortality table or
 the Commissioners 1961 Industrial Extended Term Insurance
 Table commissioners 1961 industrial extended term insurance
 table. If the commissioner approves by rule any Commissioners
 Standard Industrial Mortality Table commissioners standard
 industrial mortality table adopted by the national association
 of insurance commissioners for use in determining the minimum
 nonforfeiture standard for policies issued on or after the
 operative date of the valuation manual, then that minimum
 nonforfeiture standard supersedes the minimum nonforfeiture
 standard provided by the valuation manual.
    Sec. 92.  Section 508.38, subsection 3, paragraph a,
 subparagraph (1), unnumbered paragraph 1, Code 2016, is amended
 to read as follows:
    The minimum nonforfeiture amount at any time at or prior to
 the commencement of any annuity payments shall be equal to an
 accumulation up to such time at rates of interest as indicated
 in paragraph "b" of the net considerations (as considerations,
 as hereinafter defined) defined, paid prior to such time,
 decreased by the sum of all of the following:
    Sec. 93.  Section 509.19, subsection 2, paragraph e, Code
 2016, is amended to read as follows:
    e.  A multiple employer welfare arrangement, as defined in
 section 3 of the federal Employee Retirement Income Security
 Act of 1974, 29 U.S.C. {1002, paragraph 40 (40), that meets the
 requirements of section 507A.4, subsection 9, paragraph "a".
    Sec. 94.  Section 511.34, Code 2016, is amended to read as
 follows:
    511.34  Failure to attach ==== defenses ==== estoppel.
    The omission so to do shall not render the policy invalid,
 but if any company or association neglects to comply with the
 requirements of section 511.33, it the company or association
  shall forever be precluded from pleading, alleging, or proving
 such application or representations, or any part thereof, or
 the falsity thereof, or any part thereof, in any action upon
 such the policy, and the plaintiff in any such action shall
 not be required, in order to recover against such the company
 or association, either to plead or prove such application or
 representation, but may do so at the plaintiff's option.
    Sec. 95.  Section 514C.27, subsection 5, Code 2016, is
 amended to read as follows:
    5.  This section shall not apply to accident only
  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, or individual accident and sickness policies
 issued to individuals or to individual members of a member
 association.
    Sec. 96.  Section 514J.107, subsection 3, paragraph b, Code
 2016, is amended to read as follows:
    b.  The health care service that is the subject of the
 adverse determination or of the final adverse determination,
  determination is a covered service under the covered person's
 health benefit plan, but for a determination by the health
 carrier that the health care service is not covered because it
 does not meet the health carrier's requirements for medical
 necessity, appropriateness, health care setting, level of care,
 or effectiveness.
    Sec. 97.  Section 515.63, Code 2016, is amended to read as
 follows:
    515.63  Annual statement.
    The president or the vice president and secretary of each
 company organized or authorized to do business in the state
 shall annually on or before the first day of March of each year
 prepare under oath and file with the commissioner of insurance
 or a depository designated by the commissioner a full, true,
 and complete statement of the condition of such company on
 the last day of the preceding year, which shall exhibit the
 following items and facts:
    1.  First ==== The amount of capital stock of the company.
    2.  Second ==== The names of the officers.
    3.  Third ==== The name of the company and where located.
    4.  Fourth ==== The amount of its capital stock paid up.
    5.  Fifth ==== The property or assets held by the company,
 specifying:
    a.  The value of real estate owned by the company.
    b.  The amount of cash on hand and deposited in banks to the
 credit of the company, and in what bank deposited.
    c.  The amount of cash in the hands of agents and in the
 course of transmission.
    d.  The amount of loans secured by first mortgage on real
 estate, with the rate of interest thereon.
    e.  The amount of all other bonds and loans and how secured,
 with the rate of interest thereon.
    f.  The amount due the company on which judgment has been
 obtained.
    g.  The amount of bonds of the state, of the United States,
 of any county or municipal corporation of the state, and of any
 other bonds owned by the company, specifying the amount and
 number thereof, and par and market value of each kind.
    h.  The amount of bonds, stock, and other evidences of
 indebtedness held by such company as collateral security for
 loans, with amount loaned on each kind, and its par and market
 value.
    i.  The amount of assessments on stock and premium notes,
 paid and unpaid.
    j.  The amount of interest actually due and unpaid.
    k.  All other securities and their value.
    l.  The amount for which premium notes have been given on
 which policies have been issued.
    6.  Sixth ==== Liabilities of such company, specifying:
    a.  Losses adjusted and due.
    b.  Losses adjusted and not due.
    c.  Losses unadjusted.
    d.  Losses in suspense and the cause thereof.
    e.  Losses resisted and in litigation.
    f.  Dividends in scrip or cash, specifying the amount of
 each, declared but not due.
    g.  Dividends declared and due.
    h.  The amount required to reinsure all outstanding risks on
 the basis of the unearned premium reserve as required by law.
    i.  The amount due banks or other creditors.
    j.  The amount of money borrowed and the security therefor.
    k.  All other claims against the company.
    7.  Seventh ==== The income of the company during the previous
 year, specifying:
    a.  The amount received for premiums, exclusive of premium
 notes.
    b.  The amount of premium notes received.
    c.  The amount received for interest.
    d.  The amount received for assessments or calls on stock
 notes, or premium notes.
    e.  The amount received from all other sources.
    8.  Eighth ==== The expenditures during the preceding year,
 specifying:
    a.  The amount of losses paid during said term, stating how
 much of the same accrued prior, and how much subsequent, to the
 date of the preceding statement, and the amount at which such
 losses were estimated in such statement.
    b.  The amount paid for dividends.
    c.  The amount paid for commissions, salaries, expenses, and
 other charges of agents, clerks, and other employees.
    d.  The amount paid for salaries, fees, and other charges of
 officers and directors.
    e.  The amount paid for local, state, national and other
 taxes and duties.
    f.  The amount paid for all other expenses, including
 printing, stationery, rents, furniture, or otherwise.
    9.  Ninth ==== The largest amount insured in any one risk.
    10.  Tenth ==== The amount of risks written during the year
 then ending.
    11.  Eleventh ==== The amount of risks in force having less
 than one year to run.
    12.  Twelfth ==== The amount of risks in force having more than
 one and not over three years to run.
    13.  Thirteenth ==== The amount of risks having more than three
 years to run.
    14.  Fourteenth ==== The dividends, if any, declared on
 premiums received for risks not terminated.
    15.  Fifteenth ==== All other information as required by
 the national association of insurance commissioners' annual
 statement blank. The annual statement blank shall be prepared
 in accordance with instructions prescribed by the commissioner.
 All financial information reflected in the annual report
 shall be kept and prepared in accordance with accounting
 practices and procedures prescribed by the commissioner. The
 commissioner may adopt by reference the annual statement
 handbook and the accounting practices and procedures manual of
 the national association of insurance commissioners.
    Sec. 98.  Section 515.134, Code 2016, is amended to read as
 follows:
    515.134  Failure to attach ==== effect.
    The omission so to do shall not render the policy invalid,
 but if any company or association neglects to comply with the
 requirements of section 515.133 it, the company or association
  shall forever be precluded from pleading, alleging, or proving
 any such application or representations, or any part thereof,
 or falsity thereof, or any parts thereof, in any action upon
 such the policy, and the plaintiff in any such action shall
 not be required, in order to recover against such the company
 or association, either to plead or prove such application or
 representation, but may do so at the plaintiff's option.
    Sec. 99.  Section 524.103, subsection 23, Code 2016, is
 amended to read as follows:
    23.  "Fiduciary" means an executor, administrator, guardian,
 conservator, receiver, trustee, or one acting in a similar
 capacity.
    Sec. 100.  Section 524.215, subsection 1, Code 2016, is
 amended to read as follows:
    1.  All records of the division of banking shall be public
 records subject to the provisions of chapter 22, except that
 all papers, documents, reports, reports of examinations,
  and other writings relating specifically to the supervision
 and regulation of any state bank or other person by the
 superintendent pursuant to the laws of this state shall not be
 public records and shall not be open for examination or copying
 by the public or for examination or publication by the news
 media.
    Sec. 101.  Section 524.911, Code 2016, is amended to read as
 follows:
    524.911  Letters of credit.
    A state bank shall have the power to issue, advise, and
 confirm letters of credit authorizing a beneficiary thereof
 to draw on or demand payment of the state bank or its
 correspondent banks.
    Sec. 102.  Section 524.1002, subsection 4, Code 2016, is
 amended to read as follows:
    4.  A state bank shall not make a loan or extension of
 credit of any funds held as fiduciary, directly or indirectly,
 to or for the benefit of a director, officer, or employee of
 the state bank or of an affiliate, a partnership or other
 unincorporated association of which such director, officer,
  or employee is a partner or member, or a corporation in which
 such officer, director, or employee has a controlling interest,
 except a loan specifically authorized by the terms upon which
 the state bank was designated as fiduciary.
    Sec. 103.  Section 524.1805, subsection 6, Code 2016, is
 amended to read as follows:
    6.  An out=of=state bank or out=of=state bank holding
 company that is organized under laws other than those of this
 state is subject to and shall comply with the provisions of
 chapter 490, division XV, relating to foreign corporations, and
 shall immediately provide the superintendent of banking with a
 copy of each filing submitted to the secretary of state under
 that chapter 490, division XV.
    Sec. 104.  Section 535.12, subsections 1 and 4, Code 2016,
 are amended to read as follows:
    1.  An agricultural credit corporation, as defined in
 subsection 4, may lend money pursuant to a written promissory
 note or other writing evidencing the loan obligation, at a rate
 of interest which is not more than four percentage points above
 the lending rate in effect at the farm credit bank of Omaha,
 Nebraska, for the month during which the writing evidencing
 the loan obligation is made, provided that the loan is for an
 agricultural production purpose as defined in subsection 5 and
 further provided that the loan would, but for this section, be
 subject to the maximum rate of interest prescribed by section
 535.2, subsection 3, paragraph "a".
    4.  As used in this section,:
    a.  "agricultural "Agricultural credit corporation" means
 a corporation which has been designated by the farm credit
 bank of Omaha, Nebraska, as an agricultural credit corporation
 eligible to sell or discount loans to that bank pursuant to 12
 U.S.C. {2075.
    b.  "Agricultural production purpose" means a purpose related
 to the production of agricultural products. 
    c.  "Agricultural products" includes agricultural,
 horticultural, viticultural, and dairy products, livestock,
 wildlife, poultry, bees, forest products thereof, and any and
 all products produced on farms.
    Sec. 105.  Section 535.12, subsection 5, Code 2016, is
 amended by striking the subsection.
    Sec. 106.  Section 536.26, Code 2016, is amended to read as
 follows:
    536.26  Insured loans.
    1.  A licensee shall not, directly or indirectly, sell or
 offer for sale any life or accident and health insurance in
 connection with a loan made under this chapter except as and
 to the extent authorized by this section. Life, accident and
 health insurance, or any of them, may be written by a licensed
 insurance producer upon or in connection with any loan for a
 term not extending beyond the final maturity date of the loan
 contract, but only upon one obligor on any one loan contract.
    2.  The amount of life insurance shall at no time exceed
 the unpaid balance of principal and interest combined which
 are scheduled to be outstanding under the terms of the loan
 contract or the actual amount unpaid on the loan contract,
 whichever is greater.
    3.  Accident and health insurance shall provide benefits
 not in excess of the unpaid balance of principal and interest
 combined which are scheduled to be outstanding under the terms
 of the loan contract and the amount of each periodic benefit
 payment shall not exceed the total amount payable divided
 by the number of installments and shall provide that if the
 insured obligor is disabled, as defined in the policy, for a
 period of more than fourteen days, benefits shall commence as
 of the first day of disability.
    4.  The premium, which shall be the only charge for such the
  insurance, shall not exceed that approved by the commissioner
 of insurance of the state of Iowa as filed in the office of such
 commissioner. Such charge, computed at the time the loan is
 made for the full term of the loan contract on the total amount
 required to pay principal and interest.
    5.  If a borrower procures insurance by or through a
 licensee, the licensee shall cause to be delivered to the
 borrower a copy of the policy within fifteen days from the date
 such insurance is procured. No licensee shall decline new or
 existing insurance which meets the standards set out herein nor
 prevent any obligor from obtaining such insurance coverage from
 other sources.
    6.  If the loan contract is prepaid in full by cash, a new
 loan, or otherwise (except otherwise, except by the insurance)
  insurance, any life, accident, and health insurance procured
 by or through a licensee shall be canceled and the unearned
 premium shall be refunded. The amount of such the refund shall
 represent at least as great a proportion of the insurance
 premium or identifiable charge as the sum of the consecutive
 monthly balances of principal and interest of the loan contract
 originally scheduled to be outstanding after the installment
 date nearest the date of prepayment bears to the sum of all
 such monthly balances of the loan contract originally scheduled
 to be outstanding.
    Sec. 107.  Section 554.2602, subsection 3, Code 2016, is
 amended to read as follows:
    3.  The seller's rights with respect to goods wrongfully
 rejected are governed by the provisions of this Article on
 Seller's seller's remedies in general (section 554.2703).
    Sec. 108.  Section 600B.22, Code 2016, is amended to read as
 follows:
    600B.22  Death of defendant.
    In case of the death of the defendant the action may be
 prosecuted against the personal representative of the deceased
 with like effects as if he the defendant were living, subject
 as regards the measure of support to the provision of section
 600B.6.
    Sec. 109.  Section 600B.37, Code 2016, is amended to read as
 follows:
    600B.37  Contempt.
    If the father fails to comply with or violates the terms or
 conditions of a support order made pursuant to the provisions
 of this chapter, he the father shall be punished by the court
 in the same manner and to the same extent as is provided by law
 for a contempt of such court in any other suit or proceeding
 cognizable by such court.
    Sec. 110.  Section 602.9115, Code 2016, is amended to read
 as follows:
    602.9115  Annuity for survivor of annuitant.
    1.  For the purposes of this article, "survivor" means the
 surviving spouse of a person who was a judge, if married to the
 judge for at least one year preceding the judge's death.
    1.  2.  The survivor of a judge who was qualified for
 retirement compensation under the system at the time of the
 judge's death, is entitled to receive an annuity of one=half
 of the amount of the annuity the judge was receiving or would
 have been entitled to receive at the time of the judge's death,
 or if the judge died before age sixty=five, then one=half of
 the amount the judge would have been entitled to receive at
 age sixty=five based on the judge's years of service for which
 contributions were made to the system. The annuity shall begin
 on the judge's death or upon the survivor's reaching age sixty,
 whichever is later. However, a survivor less than sixty years
 old may elect to receive a decreased retirement annuity to
 begin on the judge's death by filing a written election with
 the state court administrator. The election is subject to the
 approval of the state court administrator. The amount of the
 decreased retirement annuity shall be the actuarial equivalent
 of the amount of the annuity otherwise payable to the survivor
 under this section.
    2.  For the purposes of this article "survivor" means the
 surviving spouse of a person who was a judge, if married to the
 judge for at least one year preceding the judge's death.
    3.  If the judge dies leaving a survivor but without
 receiving in annuities an amount equal to the judge's credit,
 the balance shall be credited to the account of the judge's
 survivor, and if the survivor dies without receiving in
 annuities an amount equal to the balance, the amount remaining
 shall be paid to the survivor's legal representatives within
 one year of the survivor's death.
    Sec. 111.  Section 614.6, Code 2016, is amended to read as
 follows:
    614.6  Nonresident or unknown defendant.
    1.  The period of limitation specified in sections 614.1
 through 614.5 shall be computed omitting any time when:
    1.  a.  The defendant is a nonresident of the state, or
    2.  b.  In those cases involving personal injuries or death
 resulting from a felony or indictable misdemeanor, while the
 identity of the defendant is unknown after diligent effort has
 been made to discover it.
    2.  The provisions of this section shall be effective January
 1, 1970, and to this extent the provisions are retroactive.
    Sec. 112.  Section 636.21, Code 2016, is amended to read as
 follows:
    636.21  Commissioner as process agent.
    It shall be the duty of the commissioner of insurance, upon
 service being made upon the commissioner, to immediately mail
 a copy of such the notice to such the company at their the
 company's principal place of business, and any notice so served
 shall be deemed to be good and sufficient service on any such
 company.
    Sec. 113.  Section 657A.12, subsection 2, Code 2016, is
 amended to read as follows:
    2.  After filing the petition with the clerk of the district
 court, the governmental entity shall also file the petition
 in the office of the county treasurer. The county treasurer
 shall include a notation of the pendency of the action in the
 county system, as defined in section 445.1, until the judgment
 of the court is satisfied or until the action is dismissed.
 Pursuant to section 446.7, an affected property that is subject
 to a pending action shall not be offered for sale by the county
 treasurer at a tax sale.
    Sec. 114.  Section 670.2, Code 2016, is amended to read as
 follows:
    670.2  Liability imposed.
    1.  Except as otherwise provided in this chapter, every
 municipality is subject to liability for its torts and those of
 its officers and employees, acting within the scope of their
 employment or duties, whether arising out of a governmental or
 proprietary function.
    2.  For the purposes of this chapter, employee "employee"
  includes a person who performs services for a municipality
 whether or not the person is compensated for the services,
 unless the services are performed only as an incident to the
 person's attendance at a municipality function.
    3.  A person who performs services for a municipality or
 an agency or subdivision of a municipality and who does not
 receive compensation is not personally liable for a claim
 based upon an act or omission of the person performed in the
 discharge of the person's duties, except for acts or omissions
 which involve intentional misconduct or knowing violation of
 the law, or for a transaction from which the person derives
 an improper personal benefit. For purposes of this section,
 "compensation" does not include payments to reimburse a person
 for expenses.
    Sec. 115.  Section 670.9, Code 2016, is amended to read as
 follows:
    670.9  Compromise and settlement.
    The governing body of any municipality may compromise,
 adjust and settle tort claims against the municipality, its
 officers, employees and agents, for damages under sections
  section 670.2 or 670.8 and may appropriate money for the
 payment of amounts agreed upon.
    Sec. 116.  Section 724.10, subsection 1, Code 2016, is
 amended to read as follows:
    1.  A person shall not be issued a permit to carry weapons
 unless the person has completed and signed an application on
 a form to be prescribed and published by the commissioner of
 public safety. The application shall require only the full
 name, driver's license or nonoperator's identification card
 number, residence, place of birth, and date of birth of the
 applicant, and shall state whether the applicant meets the
 criteria specified in sections 724.8 and 724.9. An applicant
 may provide the applicant's social security number if the
 applicant so chooses. The applicant shall also display an
 identification card that bears a distinguishing number assigned
 to the cardholder, the full name, date of birth, sex, residence
 address, and a brief description and colored color photograph
 of the cardholder.
    Sec. 117.  Section 724.17, Code 2016, is amended to read as
 follows:
    724.17  Application for annual permit to acquire ==== criminal
 history check required.
    The application for an annual permit to acquire pistols
 or revolvers may be made to the sheriff of the county of
 the applicant's residence and shall be on a form prescribed
 and published by the commissioner of public safety. The
 application shall require only the full name of the applicant,
 the driver's license or nonoperator's identification card
 number of the applicant, the residence of the applicant,
 and the date and place of birth of the applicant. The
 applicant shall also display an identification card that
 bears a distinguishing number assigned to the cardholder, the
 full name, date of birth, sex, residence address, and brief
 description and colored color photograph of the cardholder, or
 other identification as specified by rule of the department of
 public safety. The sheriff shall conduct a criminal history
 check concerning each applicant by obtaining criminal history
 data from the department of public safety which shall include
 an inquiry of the national instant criminal background check
 system maintained by the federal bureau of investigation or any
 successor agency. A person who makes what the person knows
 to be a false statement of material fact on an application
 submitted under this section or who submits what the person
 knows to be any materially falsified or forged documentation in
 connection with such an application commits a class "D" felony.
    Sec. 118.  Section 724.25, subsection 2, Code 2016, is
 amended to read as follows:
    2.  As used in this chapter an "antique firearm" means
 any firearm (including firearm, including any firearm with
 a matchlock, flintlock, percussion cap, or similar type of
 ignition system) system, manufactured in or before 1898. An
 antique firearm also means a replica of a firearm so described
 if the replica is not designed or redesigned for using rimfire
 or conventional centerfire fixed ammunition or if the replica
 uses rimfire or conventional centerfire fixed ammunition which
 is no longer manufactured in the United States and which is not
 readily available in the ordinary channels of commercial trade.
    Sec. 119.  Section 903A.2, subsection 1, paragraph a, Code
 2016, is amended to read as follows:
    a.  (1)  Category "A" sentences are those sentences which are
 not subject to a maximum accumulation of earned time of fifteen
 percent of the total sentence of confinement under section
 902.12. To the extent provided in subsection 5, category "A"
 sentences also include life sentences imposed under section
 902.1. An inmate of an institution under the control of
 the department of corrections who is serving a category "A"
 sentence is eligible for a reduction of sentence equal to
 one and two=tenths days for each day the inmate demonstrates
 good conduct and satisfactorily participates in any program
 or placement status identified by the director to earn the
 reduction. The programs include but are not limited to the
 following:
    (1)  (a)  Employment in the institution.
    (2)  (b)  Iowa state industries.
    (3)  (c)  An employment program established by the director.
    (4)  (d)  A treatment program established by the director.
    (5)  (e)  An inmate educational program approved by the
 director.
    (2)  However, an inmate required to participate in a
 sex offender treatment program shall not be eligible for a
 reduction of sentence unless the inmate participates in and
 completes a sex offender treatment program established by the
 director.
    (3)  An inmate serving a category "A" sentence is eligible
 for an additional reduction of sentence of up to three hundred
 sixty=five days of the full term of the sentence of the inmate
 for exemplary acts. In accordance with section 903A.4, the
 director shall by policy identify what constitutes an exemplary
 act that may warrant an additional reduction of sentence.
                           DIVISION II
                      CORRESPONDING CHANGES
    Sec. 120.  Section 97B.49A, subsection 4, paragraph b, Code
 2016, is amended to read as follows:
    b.  For each member employed before January 1, 1976, who
 has qualified for prior service credit in accordance with the
 first paragraph of section 97B.43, subsection 1, a formula
 benefit shall be determined equal to the larger of the benefit
 determined under this paragraph and paragraph "a" of this
 subsection, as applicable, the benefit determined under
 subsection 3, or the benefit determined under section 97B.49G,
 subsection 1. The amount of the monthly formula benefit under
 this paragraph shall be equal to eight=tenths of one percent
 per year of prior service credit multiplied by the monthly
 rate of the member's total remuneration not in excess of three
 thousand dollars annually during the twelve consecutive months
 of the member's prior service for which that total remuneration
 was the highest. An additional three=tenths of one percent
 of the remuneration not in excess of three thousand dollars
 annually shall be payable for prior service during each year
 in which the accrued liability for benefit payments created by
 the abolished system is funded by appropriation from the Iowa
 public employees' retirement fund.
                          DIVISION III
                     CODE EDITOR DIRECTIVES
    Sec. 121.  CODE EDITOR DIRECTIVES.
    1.  Sections 28A.2, 28A.19, 28A.22, 28A.26, 28E.21, 28E.25,
 103A.1, 103A.54, 103A.56, 103A.57, 189.17, 304A.10, 306C.6,
 306C.7, 306C.9, 306C.14, and 306C.17, Code 2016, are amended by
 striking the word "division" and inserting in lieu thereof the
 word "subchapter".
    2.  Sections 28A.3, subsection 1; 28A.4, subsection 1;
 28A.5, subsection 1, paragraph "a"; 28A.7, subsection 1; 28A.9,
 subsection 1; 28A.10, subsection 1, unnumbered paragraph 1 and
 paragraphs "j" and "o"; 28A.10, subsection 2, paragraph "b";
 28A.18, subsection 1, paragraph "a"; 28A.21, subsection 4;
 28E.35, unnumbered paragraph 1; 89B.15, subsection 1; 101.21,
 unnumbered paragraph 1; 101.24, subsection 1, unnumbered
 paragraph 1; 101.24, subsection 1, paragraph "b", subparagraph
 (2); 101.24, subsection 3; 101.24, subsection 4, unnumbered
 paragraph 1; 101.24, subsection 4, paragraph "d", unnumbered
 paragraph 1; 101.25, subsection 1; 101.26, subsections 1, 2, 3,
 and 4; 103A.51, unnumbered paragraph 1; 103A.52, subsection 3;
 161A.42, unnumbered paragraph 1; 237.15, unnumbered paragraph
 1; 304A.8, unnumbered paragraph 1; 306C.1, unnumbered paragraph
 1; 306C.10, unnumbered paragraph 1; 306C.10, subsection 4,
 paragraph "f"; 306C.11, subsection 3, paragraph "a"; 306C.11,
 subsection 5, paragraph "a", subparagraph (2); 306C.13,
 unnumbered paragraph 1; 306C.13, subsection 8, paragraph "f";
 306C.15, unnumbered paragraph 1 and subsection 4; 306C.18,
 subsection 3; and 306C.19, unnumbered paragraph 1, Code 2016,
 are amended by striking the word "division" and inserting in
 lieu thereof the word "subchapter".
    3.  The Code editor shall change Code chapter division
 designations to subchapter designations in the following Code
 chapters:
    a.  28A.
    b.  28E.
    c.  89B.
    d.  101.
    e.  103A.
    f.  161A.
    g.  189.
    h.  237.
    i.  304A.
    j.  306C.
    4.  The Code editor is directed to number unnumbered
 paragraphs within sections 13C.8, 28F.14, 43.4, 97A.4, 97A.6A,
 161A.6, 161A.10, 161A.20, 183A.7, 183A.9, 190.2, 192.107,
 257.5, 303.22, 303.26, 303.30, 303.66, 331.306, 384.19,
 423B.5, 427.2, 428.4, 452A.58, 455A.8A, 455B.302, 491.112,
 499.3, 499.79, 499.80, 514.5, 598.17, 622.69, 622.105, 633.89,
 633.415, 669.10, 714.5, 804.1, and 804.31, Code 2016, in
 accordance with established Code section hierarchy and correct
 internal references in the Code and in any enacted Iowa Acts,
 as necessary.
    5.  The Code editor is directed to letter unnumbered
 paragraphs within sections 80A.17, subsection 1, and 97B.1A,
 subsection 9, Code 2016, in accordance with established Code
 section hierarchy and correct internal references in the Code
 and in any enacted Iowa Acts, as necessary.
    6.  The Code editor shall combine the individual repeal
 entries into combined repeal entries for the following repealed
 Code sections:
    a.  Sections 554.3120, 554.3121, and 554.3122.
    b.  Sections 554.3506, 554.3507, 554.3508, 554.3509,
 554.3510, and 554.3511.
    c.  Sections 554.3802, 554.3803, 554.3804, 554.3805, and
 554.3806.


                                                             
                               PAM JOCHUM
                               President of the Senate


                                                             
                               LINDA UPMEYER
                               Speaker of the House
    I hereby certify that this bill originated in the Senate and
 is known as Senate File 2189, Eighty=sixth General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2016


                                                             
                               TERRY E. BRANSTAD
                               Governor

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