Bill Text: IA HF2535 | 2019-2020 | 88th General Assembly | Enrolled

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Bill Title: A bill for an act relating to nonsubstantive Code corrections, and including effective date and retroactive applicability provisions. (Formerly HSB 679.) Effective date: 06/17/2020, 07/01/2020. Applicability date: 07/01/2019.

Spectrum: Committee Bill

Status: (Passed) 2020-06-17 - Signed by Governor. H.J. 791. [HF2535 Detail]

Download: Iowa-2019-HF2535-Enrolled.html

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House File 2535 - Enrolled
House File 2535
AN ACT
RELATING TO NONSUBSTANTIVE CODE CORRECTIONS, AND INCLUDING
EFFECTIVE DATE AND RETROACTIVE APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
MISCELLANEOUS CHANGES
Section 1. Section 12.82, subsection 4, Code 2020, is
amended to read as follows:
4. Any amounts remaining in the school infrastructure
fund at the end of the fiscal year beginning July 1, 2010,
and for each fiscal year thereafter, which are determined by
the treasurer of state to be unencumbered and unobligated and
otherwise unnecessary to make the payments for such fiscal

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year, shall be transferred to the rebuild Iowa infrastructure
fund created in section 8.57 .
Sec. 2. Section 12.89, subsection 5, Code 2020, is amended
to read as follows:
5. Moneys in the revenue bonds debt service fund and any
bond reserve fund created pursuant to this section are not
subject to section 8.33 ; provided however, that on August 31
following the close of each fiscal year, any moneys on deposit
in the revenue bonds debt service fund at the end of such
fiscal year, which is determined by the treasurer of state
to not be encumbered or obligated or otherwise necessary to
make the payments for such fiscal year authorized to be made
from such fund pursuant to subsection 1 , shall be credited
to the rebuild Iowa infrastructure fund created in section
8.57 . Notwithstanding section 12C.7, subsection 2 , interest or
earnings on moneys in the revenue bonds debt service fund and
any bond reserve fund shall be credited to such funds.
Sec. 3. Section 12.89A, subsection 5, Code 2020, is amended
to read as follows:
5. At any time during each fiscal year that there are moneys
on deposit in the revenue bonds federal subsidy holdback fund
that are not needed to pay principal and interest on federal
subsidy bonds during such fiscal year as determined by the
treasurer of state or the treasurer’s designee, such moneys
on deposit in the revenue bonds federal subsidy holdback fund
shall be credited to the rebuild Iowa infrastructure fund of
the state created in section 8.57 .
Sec. 4. Section 15.101, subsection 2, Code 2020, is amended
to read as follows:
2. The collaboration shall involve the economic development
authority and the Iowa innovation bioscience development
corporation, both of which shall work together to further
economic development policy according to the provisions of this
subchapter .
Sec. 5. Section 15E.71, Code 2020, is amended to read as
follows:
15E.71 Executive council action.
Notwithstanding section 7D.29, subsection 1 , the executive

House File 2535, p. 3
council in full consultation with the attorney general,
and with the agreement of the attorney general, shall take
any action deemed necessary to protect the interests of the
state with respect to any certificates, tax credits, entities
created, or action taken in relation to this subchapter. Such
actions may include but are not limited to initiation of legal
action, commencement of special investigations, institution
of special audits of any involved entity, or establishment of
receiverships. If such action is taken, the council may incur
the necessary expense to perform such a duty or cause such a
duty to be performed, and pay the same out of any money moneys
in the state treasury not otherwise appropriated.
Sec. 6. Section 15E.362, subsection 10, Code 2020, is
amended to read as follows:
10. The authority may contract with outside service
providers for assistance with the program or may delegate the
administration of the program to the Iowa innovation bioscience
development corporation pursuant to section 15.106B .
Sec. 7. Section 15H.3, subsection 1, unnumbered paragraph
1, Code 2020, is amended to read as follows:
The Iowa commission on volunteer service shall consist of
the following members:
Sec. 8. Section 15H.5, subsection 2, Code 2020, is amended
to read as follows:
2. The Iowa summer youth corps program is established
to provide meaningful summer enrichment programming to
Iowa youth. The program shall be administered by the Iowa
commission on volunteer service using a competitive grant
process to implement projects in accordance with program
requirements. The commission shall adopt administrative rules
for the program, including but not limited to incentives, grant
criteria, and grantee selection processes. A percentage of the
grants shall be designated by the commission to address the
needs of economically distressed areas as defined in section
15.335C .
Sec. 9. Section 15H.6, subsection 1, Code 2020, is amended
to read as follows:
1. The Iowa commission on volunteer service , in
collaboration with the department of natural resources, the

House File 2535, p. 4
department of workforce development, and the utilities board of
the department of commerce, shall establish an Iowa green corps
program. The commission shall work with the collaborating
agencies and nonprofit agencies in developing a strategy for
attracting additional financial resources for the program
from other sources which may include but are not limited to
utilities, private sector, and local, state, and federal
government funding sources. The financial resources received
shall be credited to the community programs account created
pursuant to section 15H.5 .
Sec. 10. Section 15H.7, subsection 1, paragraph a, Code
2020, is amended to read as follows:
a. The Iowa commission on volunteer service , in
collaboration with the department of education, may establish
an Iowa reading corps program to provide Iowa reading corps
Americorps members with a data-based, problem-solving model
of literacy instruction to use in tutoring students from
prekindergarten to third grade who are not proficient in
reading or who are at risk of becoming not proficient in
reading.
Sec. 11. Section 15H.8, subsection 1, paragraph a, Code
2020, is amended to read as follows:
a. The Iowa commission on volunteer service , in
collaboration with the department of human services, shall
establish a Refugee Rebuild, Integrate, Serve, Empower
(RefugeeRISE) AmeriCorps program to increase community
integration and engagement for diverse refugee communities in
rural and urban areas across the state.
Sec. 12. Section 15H.9, subsection 1, Code 2020, is amended
to read as follows:
1. The Iowa commission on volunteer service may establish an
Iowa national service corps program to provide opportunities
for state agencies, political subdivisions of the state, and
private, nonprofit organizations to create national service
programs outside of existing state and federal programs to meet
state and local needs and to provide more opportunities for
Iowans to serve their state and country and foster a cultural
expectation of service in Iowa through a unified service corps.
Sec. 13. Section 16.82A, subsection 1, paragraph c, Code

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2020, is amended to read as follows:
c. If , after making a tax credit award is made, the eligible
taxpayer or qualified beginning farmer no longer meets the
requirements of the agreement or the program, the authority may
revoke a the tax credit award and may rescind a any tax credit
certificate that has been issued .
Sec. 14. Section 29A.47, subsection 1, Code 2020, is amended
to read as follows:
1. Troops occupying a military district established under
martial law , may, if necessary, pursue, arrest , and subpoena
persons wanted in said the military district, anywhere within
the state of Iowa.
Sec. 15. Section 29B.35, subsection 2, Code 2020, is amended
to read as follows:
2. If the charges or specifications are not formally correct
or do not conform to the substance of the evidence contained in
the report of the investigating officer, formal corrections ,
and such changes in the charges and specifications as are
needed to make them conform to the evidence may be made.
Sec. 16. Section 43.77, subsection 5, unnumbered paragraph
1, Code 2020, is amended to read as follows:
A vacancy has occurred in the office of county supervisor
or in any of the offices listed in section 39.17 , and the
term of office has more than seventy days remaining after the
date of the next general election , and one of the following
circumstances applies:
Sec. 17. Section 43.101, Code 2020, is amended to read as
follows:
43.101 County central committee officers.
The county central committee shall elect a chair, co-chair,
secretary, treasurer, and other officers as it may determine.
The term of office of an officer begins at the time specified
by the party’s state constitution or bylaws and continues for
two years and until the officer’s successor is elected and
qualified, unless the officer dies, resigns , or is sooner
removed by the county central committee for inattention to duty
or incompetency.
Sec. 18. Section 45.1, subsection 8, paragraph c, Code 2020,
is amended to read as follows:

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c. In cities having a population of less than one hundred
according to the most recent federal decennial census,
nominations may be made by nomination papers signed by not less
than five eligible electors who are residents of the city.
Sec. 19. Section 52.2, Code 2020, is amended to read as
follows:
52.2 Optical scan voting system required.
Notwithstanding any provision to the contrary, for elections
held on or after November 4, 2008, a county shall use an
optical scan voting system only. The requirements of the
federal Help America Vote Act , Pub. L. No. 107-252, 116 Stat.
1666, relating to disabled voters shall be met by a county
through the use of electronic ballot marking devices that are
compatible with an optical scan voting system.
Sec. 20. Section 80.15, Code 2020, is amended to read as
follows:
80.15 Examination —— oath —— probation —— discipline ——
dismissal.
1. An applicant to be a peace officer in the department
shall not be appointed as a peace officer until the applicant
has passed a satisfactory physical and mental examination.
In addition, the applicant must be a citizen of the United
States and be not less than twenty-two years of age. However,
an applicant applying for assignment to provide protection
and security for persons and property on the grounds of the
state capitol complex or a peace officer candidate shall not
be less than eighteen years of age. The mental examination
shall be conducted under the direction or supervision of
the commissioner and may be oral or written or both. An
applicant shall take an oath on becoming a peace officer of the
department, to uphold the laws and Constitution of the United
States and Constitution of the State of Iowa.
2. During the period of twelve months after appointment, a
peace officer of the department is subject to dismissal at the
will of the commissioner. After the twelve months’ service,
a peace officer of the department, who was appointed after
having passed the examinations, is not subject to dismissal,
suspension, disciplinary demotion, or other disciplinary action
resulting in the loss of pay unless charges have been filed

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with the department of inspections and appeals and a hearing
held by the employment appeal board created by section 10A.601 ,
if requested by the peace officer, at which the peace officer
has an opportunity to present a defense to the charges. The
decision of the appeal board is final, subject to the right
of judicial review in accordance with the terms of the Iowa
administrative procedure Act, chapter 17A . However, these
procedures as to dismissal, suspension, demotion, or other
discipline do not apply to a peace officer who is covered by a
collective bargaining agreement which provides otherwise, and
do not apply to the demotion of a division head to the rank
which the division head held at the time of appointment as
division head, if any. A division head who is demoted has the
right to return to the rank which the division head held at the
time of appointment as division head, if any.
3. All rules, except employment provisions negotiated
pursuant to chapter 20 , regarding the enlistment, appointment,
and employment affecting the personnel of the department shall
be established by the commissioner in consultation with the
director of the department of administrative services, subject
to approval by the governor.
Sec. 21. Section 85.42, subsection 1, paragraph a, Code
2020, is amended to read as follows:
a. When it is shown that at the time of the injury the
surviving spouse had willfully deserted the deceased without
fault of the deceased, then such the survivor shall not be
considered as dependent in any degree.
Sec. 22. Section 96.19, subsection 25A, Code 2020, is
amended to read as follows:
25A. “Indian tribe” shall have the meaning given to
the term pursuant to section 4(e) of the federal Indian
Self-Determination and Education Assistance Act, Pub. L. No.
93-638, and shall include any subdivision, subsidiary, or
business enterprise wholly owned by such an Indian tribe.
Sec. 23. Section 124.409, Code 2020, is amended to read as
follows:
124.409 Conditional discharge, commitment for treatment, and
probation.
1. Whenever the court finds that a person who is charged

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with a violation of section 124.401 and who consents thereto,
or who has entered a plea of guilty to or been found guilty of a
violation of that section, is addicted to, dependent upon, or a
chronic abuser of any controlled substance and that such person
will be aided by proper medical treatment and rehabilitative
services, it the court may order that the person be committed
as an in-patient or out-patient to a facility licensed by the
Iowa department of public health for medical treatment and
rehabilitative services.
2. A person committed under this section who is not
possessed of sufficient income or estate to enable the person
to make payment of the costs of such treatment in whole or
in part shall be considered a state patient and the costs of
treatment shall be paid as provided in section 125.44 . The
determination of ability to pay shall be made by the court.
The court shall require the patient, or the patient’s parent,
guardian, or custodian to complete under oath a detailed
financial statement. The court may enter appropriate orders
requiring the patient or those legally liable for the patient’s
support to reimburse the state with the costs, or any part
thereof.
3. In order to obtain the most effective results from such
medical treatment and rehabilitative services, the court may
commit the person to the custody of a public or private agency
or any other responsible person and impose other conditions
upon the commitment as is necessary to insure compliance with
the court’s order and to insure that the person will not,
during the period of treatment and rehabilitation, again
violate a provision of this chapter .
4. If it is established thereafter to the satisfaction
of the court that the person has again violated a provision
of this chapter , the person may be returned to custody or
sentenced upon conviction as provided by law.
5. The public or private agency or responsible person
to whom the accused person was committed by the court shall
immediately report to the court when the person has received
maximum benefit from the program or has recovered from
addiction, dependency, or tendency to chronically abuse any
controlled substance. The person shall then be returned to

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the court for disposition of the case. If the person has been
charged or indicted, but not convicted, such charge shall
proceed to trial or final disposition. If the person has been
convicted or is thereafter convicted, the court shall sentence
the person as provided by law but may remit all or any part of
the sentence and place the person on probation upon terms and
conditions as the court may prescribe.
Sec. 24. Section 135B.5, subsection 2, Code 2020, is amended
to read as follows:
2. The provisions of this section shall not in any way
affect, change, deny , or nullify any rights set forth in , or
arising from the provisions of this chapter and particularly
section 135B.7 , arising before or after December 31, 1960.
Sec. 25. Section 144F.1, subsection 1, Code 2020, is amended
to read as follows:
1. “Aftercare assistance” means any assistance provided by
a lay caregiver to a patient following discharge of the patient
that are involves tasks directly related to the patient’s
condition at the time of discharge, do does not require a
licensed professional, and are is determined to be appropriate
by the patient’s discharging physician or other licensed health
care professional.
Sec. 26. Section 217.6, subsection 3, Code 2020, is amended
to read as follows:
3. The director shall organize the department of human
services into divisions to carry out in an efficient manner
the intent of this chapter . The department of human services
may be initially divided into the following divisions of
responsibility: the
a. The division of child and family services , the .
b. The division of mental health and disability services ,
the .
c. The division of administration , and the .
d. The division of planning, research , and statistics.
Sec. 27. Section 217.43, subsection 1, Code 2020, is amended
to read as follows:
1. a. The department shall establish a service area
advisory board in each service area. Each of the county boards
of supervisors of the counties comprising the service area

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shall appoint two service area advisory board members. The All
of the following requirements apply to the appointments made by
a county board of supervisors: the
(1) The membership shall be appointed in accordance with
section 69.16 , relating to political affiliation, and section
69.16A , relating to gender balance ; not .
(2) Not more than one of the members shall be a member of
the board of supervisors ; and appointments .
(3) Appointments shall be made on the basis of interest in
maintaining and improving service delivery.
b. Appointments shall be made a part of the regular
proceedings of the board of supervisors and shall be filed with
the county auditor and the service area manager. A vacancy on
the board shall be filled in the same manner as the original
appointment.
c. The boards of supervisors shall develop and agree to
other organizational provisions involving the advisory board,
including reporting requirements.
Sec. 28. Section 218.2, subsection 2, Code 2020, is amended
to read as follows:
2. The administrator to whom primary responsibility of for a
particular institution has been assigned shall make reports to
the director of human services as are requested by the director
and the director shall report, in writing, to the governor any
abuses found to exist in any of the institutions.
Sec. 29. Section 232.2, subsection 46A, Code 2020, is
amended to read as follows:
46A. “Relative” for purposes of divisions subchapters III
and IV of this chapter includes the parent of a sibling.
Sec. 30. Section 232.11, subsection 6, Code 2020, is amended
to read as follows:
6. Nothing in this section shall be construed to prevent
the child or the child’s parent, guardian or custodian from
retaining counsel to represent the child in proceedings under
this division subchapter II of this chapter in which the
alleged delinquent act constitutes a simple misdemeanor under
the Iowa Code.
Sec. 31. Section 232.37, subsections 3 and 6, Code 2020, are
amended to read as follows:

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3. Upon request of the child who is identified in the
petition as a party to the proceeding, the child’s parent,
guardian , or custodian , ; or a county attorney ; or on the
court’s own motion, the court or the clerk of the court shall
issue subpoenas requiring the attendance and testimony of
witnesses and production of papers at any hearing under this
division subchapter .
6. The court may issue an order for the removal of the child
from the custody of the child’s parent, guardian , or custodian
when there exists an immediate threat that the parent,
guardian , or custodian will flee the state with the child, or
when it appears that the child’s immediate removal is necessary
to avoid imminent danger to the child’s life or health.
Sec. 32. Section 232.48, subsection 4, Code 2020, is amended
to read as follows:
4. A predisposition report shall not be disclosed except
as provided in this section and in division subchapter VIII of
this chapter . The court shall permit the child’s attorney to
inspect the predisposition report prior to consideration by the
court. The court may order counsel not to disclose parts of
the report to the child, or to the child’s parent, guardian,
guardian ad litem, or custodian if the court finds that
disclosure would seriously harm the treatment or rehabilitation
of the child. If the report indicates the child has behaved
in a manner that threatened the safety of another person,
has committed a violent act causing bodily injury to another
person, or has been a victim or perpetrator of sexual abuse,
unless otherwise ordered by the court, the child’s parent,
guardian, or foster parent or other person with custody of the
child shall be provided with that information.
Sec. 33. Section 232.89, subsection 2, unnumbered paragraph
1, Code 2020, is amended to read as follows:
Upon the filing of a petition, the court shall appoint
counsel and a guardian ad litem for the child identified in the
petition as a party to the proceedings. If a guardian ad litem
has previously been appointed for the child in a proceeding
under division subchapter II of this chapter or a proceeding in
which the court has waived jurisdiction under section 232.45 ,
the court shall appoint the same guardian ad litem upon the

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filing of the petition under this part. Counsel shall be
appointed as follows:
Sec. 34. Section 232.103, subsection 2, unnumbered
paragraph 1, Code 2020, is amended to read as follows:
The following persons shall be authorized to file a motion
to terminate, modify , or vacate and substitute a dispositional
order:
Sec. 35. Section 232.109, Code 2020, is amended to read as
follows:
232.109 Jurisdiction.
The juvenile court shall have exclusive jurisdiction over
proceedings under this chapter to terminate a parent-child
relationship and all parental rights with respect to a
child. No such termination shall be ordered except under the
provisions of this chapter if the court has made an order
concerning the child pursuant to the provisions of division
subchapter III of this chapter and the order is in force at the
time a petition for termination is filed.
Sec. 36. Section 232.147, subsection 10, Code 2020, is
amended to read as follows:
10. Subject to restrictions imposed by sections 232.48,
subsection 4 , and 232.97, subsection 3 , all juvenile court
records shall be made available for inspection and their
contents shall be disclosed to any party to the case and
the party’s counsel and to any trial or appellate court in
connection with an appeal pursuant to division subchapter VI of
this chapter .
Sec. 37. Section 256.11, subsection 5, paragraph k,
subparagraph (1), subparagraph division (e), Code 2020, is
amended to read as follows:
(e) Consumer awareness of the power of marketing on buying
decisions including zero percent interest offers; marketing
methods, including product positioning, advertising, brand
recognition, and personal selling; how to read a credit report
and correct inaccuracies; how to build a credit score; how to
develop a plan to deal with creditors and avoid bankruptcy; and
the federal Fair Debt Collection Practices Act , codified at 15
U.S.C. §1692 – 1692p .
Sec. 38. Section 257.39, Code 2020, is amended to read as

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follows:
257.39 Definitions —— returning dropouts and potential
dropouts.
As used in this chapter :
1. “Returning dropouts” are resident pupils who have been
enrolled in a public or nonpublic school in any of grades seven
through twelve who withdrew from school for a reason other
than transfer to another school or school district and who
subsequently enrolled in a public school in the district.
2. 1. “Potential dropouts” are resident pupils who are
enrolled in a public or nonpublic school who demonstrate poor
school adjustment as indicated by two or more of the following:
a. High rate of absenteeism, truancy, or frequent tardiness.
b. Limited or no extracurricular participation or lack
of identification with school, including but not limited to ,
expressed feelings of not belonging.
c. Poor grades, including but not limited to , failing in one
or more school subjects or grade levels.
d. Low achievement scores in reading or mathematics which
reflect achievement at two years or more below grade level.
e. Children in grades kindergarten through three who meet
the definition of at-risk children adopted by the department
of education.
2. “Returning dropouts” are resident pupils who have been
enrolled in a public or nonpublic school in any of grades seven
through twelve who withdrew from school for a reason other
than transfer to another school or school district and who
subsequently enrolled in a public school in the district.
Sec. 39. Section 261E.8, subsection 2, paragraph b,
subparagraph (2), subparagraph divisions (a) and (b), Code
2020, are amended to read as follows:
(a) Subject to an appropriation of funds by the general
assembly for this purpose, a student enrolled in a unit of
coursework provided under this subparagraph shall be counted
as if the student was assigned a weighting under section
257.11, subsection 3 , paragraph “b” , in determining the amount
calculated and paid to a community college under subparagraph
(4) , if the accredited nonpublic school is accredited under the
standards required of a school district pursuant to section

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256.11 , the number of students enrolled in a class used to meet
the unit requirement exceeds five, and the accredited nonpublic
school’s total enrollment in grades nine through twelve does
not exceed two hundred pupils.
(b) A student enrolled in a unit of coursework provided
under this subparagraph is not eligible to be counted as if
the student was assigned a weighting under section 257.11,
subsection 3 , paragraph “b” , in determining the amount
calculated and paid to a community college under subparagraph
(4) , if the accredited nonpublic school’s total enrollment in
grades nine through twelve exceeds two hundred pupils.
Sec. 40. Section 272.15, subsection 1, paragraph a,
subparagraph (2), Code 2020, is amended to read as follows:
(2) The board of directors of a school district or area
education agency, the superintendent of a school district,
the chief administrator of an area education agency, and
the authorities in charge of an accredited nonpublic school
shall report to the board the nonrenewal or termination, for
reasons of alleged or actual misconduct, of a person’s contract
executed under sections 279.12 , 279.13 , 279.15 , 279.16, 279.18
through 279.21 , 279.23 , and 279.24 , and the resignation of
a person who holds a license, certificate, or authorization
issued by the board as a result of or following an incident
or allegation of misconduct that, if proven, would constitute
a violation of the rules adopted by the board to implement
section 272.2, subsection 14 , paragraph “b” , subparagraph
(1); soliciting, encouraging, or consummating a romantic
or otherwise inappropriate relationship with a student;
falsifying student grades, test scores, or other official
information or material; or converting public property or
funds to the personal use of the school employee, when the
board or reporting official has a good faith belief that the
incident occurred or the allegation is true. The board may
deny a license or revoke the license of an administrator if
the board finds by a preponderance of the evidence that the
administrator failed to report the termination or resignation
of a school employee holding a license, certificate, statement
of professional recognition, or coaching authorization, for
reasons of alleged or actual misconduct, as defined by this

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section .
Sec. 41. Section 279.11, subsection 2, paragraph a, Code
2020, is amended to read as follows:
a. A parent or guardian of siblings may request of a school
principal that the children siblings be placed in the same
classroom or in separate classrooms if the children siblings
are in the same grade level academically for kindergarten
through grade five. The school principal in consultation with
the siblings’ classroom teachers for the prior school year,
may recommend classroom placement to the parent or guardian.
The school principal shall provide the placement requested by
the parent or guardian, unless the school principal makes a
classroom placement determination as provided under paragraph
“b” or if the placement would require the school district to add
an additional class at the siblings’ grade level. A request
made by a parent or guardian under this paragraph must be
submitted to the school principal at the time of registration
for classes or, if the children siblings are enrolled in
the school district after the school year commences, within
fourteen days after the children’s siblings’ first day of
attendance during the school year.
Sec. 42. Section 307.13, Code 2020, is amended to read as
follows:
307.13 Reassignment of personnel.
The director may reassign personnel within the department
among the various divisions of the department in order to
properly coordinate the work of the divisions and perform the
duties and responsibilities of the department efficiently
and economically. However, any employee so transferred or
transferred from one employment system to another, either
administratively or legislatively, shall not be considered to
be a probationary employee simply because of this action.
However, any employee so transferred or transferred from
one employment system to another either administratively or
legislatively, shall not be considered to be a probationary
employee simply because of this action.
Sec. 43. Section 321.208, subsection 1, paragraph c, Code
2020, is amended to read as follows:
c. Operating a commercial motor vehicle involved in a fatal

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accident and being convicted of manslaughter under section
707.4 or 707.5 or vehicular homicide under section 707.6A .
Sec. 44. Section 322G.12, Code 2020, is amended to read as
follows:
322G.12 Resale of returned vehicles.
1. A manufacturer who accepts the return of a motor
vehicle pursuant to a settlement, determination, or decision
under this chapter shall notify the state department of
transportation, report the vehicle identification number of
that motor vehicle within ten days after the acceptance, and
obtain a new certificate of title for the vehicle in the
manufacturer’s name pursuant to section 321.46 . In obtaining
a new certificate of title, the manufacturer shall title
the vehicle in the county of the transferor’s residence and
shall be exempt from the registration fee requirements of
section 321.46 and the fee for new registration under section
321.105A . The new certificate of title, and all subsequent
registration receipts and certificates of title issued for the
motor vehicle, shall contain a designation indicating that
the motor vehicle was returned to the manufacturer pursuant
to this chapter or a similar law of another state. The state
department of transportation shall determine the manner in
which the designation is to be indicated on registration
receipts and certificates of title and may determine that a
“REBUILT” or “SALVAGE” designation supersedes the designation
required by this paragraph subsection and include the “REBUILT”
or “SALVAGE” designation on the registration receipt and
certificate of title in lieu of the designation required by
this paragraph subsection .
2. A person shall not knowingly lease, sell, either at
wholesale or retail, or transfer a title to a motor vehicle
returned by reason of a settlement, determination, or
decision pursuant to this chapter or a similar law of another
state unless the nature of the nonconformity is clearly and
conspicuously disclosed to the prospective transferee, lessee,
or buyer. The attorney general shall prescribe by rule the
form, content, and procedure pertaining to such a disclosure
statement, recognizing the need of manufacturers to implement
a uniform disclosure form. The manufacturer shall make a

House File 2535, p. 17
reasonable effort to ensure that such disclosure is made to
the first subsequent retail buyer or lessee. For purposes of
this section , “settlement” includes an agreement entered into
between the manufacturer and the consumer that occurs after
the thirtieth day following the manufacturer’s receipt of the
consumer’s written notification pursuant to section 322G.4 .
Sec. 45. Section 330.13, Code 2020, is amended to read as
follows:
330.13 Federal aid.
1. Any subdivision of government is authorized to accept,
receive, and receipt for federal moneys, and other moneys,
either public or private, for the acquisition, construction,
enlargement, improvement, maintenance, equipment, or operation
of airports, and other air navigation facilities, and sites
for airports and other navigation facilities, and to comply
with the laws of the United States and any regulations for
the expenditure of federal moneys upon airports and other air
navigation facilities.
2. All preapplications for funds authorized to be received
pursuant to this section by any governmental subdivision,
commission, or authority, whether acting alone or jointly with
another governmental or private entity, shall be approved by
the state transportation commission prior to being submitted
to any federal agency or department. Approval shall be
based on criteria consistent with the Iowa aviation system
plan. However, this paragraph subsection does not apply to
preapplications from airports which receive federal primary
commercial service entitlement funds if the airport making the
preapplication files a copy of the preapplication with the
state department of transportation.
Sec. 46. Section 335.30, Code 2020, is amended to read as
follows:
335.30 Manufactured and modular homes.
1. A county shall not adopt or enforce zoning regulations or
other ordinances which disallow the plans and specifications of
a proposed residential structure solely because the proposed
structure is a manufactured home. However, a zoning ordinance
or regulation shall require that a manufactured home be located
and installed according to the same standards, including but

House File 2535, p. 18
not limited to, a permanent foundation system, set-back, and
minimum square footage which would apply to a site-built,
single family dwelling on the same lot, and shall require
that the home is assessed and taxed as a site-built dwelling.
A zoning ordinance or other regulation shall not require a
perimeter foundation system for a manufactured home which is
incompatible with the structural design of the manufactured
home structure. A county shall not require more than one
permanent foundation system for a manufactured home. For
purposes of this section , a permanent foundation may be a
pier footing foundation system designed and constructed to be
compatible with the structure and the conditions of the site.
When units are located outside a manufactured home community
or mobile home park, requirements may be imposed which ensure
visual compatibility of the permanent foundation system with
surrounding residential structures. As used in this section ,
“manufactured home” means a factory-built structure, which is
manufactured or constructed under the authority of 42 U.S.C.
§5403 and is to be used as a place for human habitation, but
which is not constructed or equipped with a permanent hitch
or other device allowing it to be moved other than for the
purpose of moving to a permanent site, and which does not have
permanently attached to its body or frame any wheels or axles.
This section shall not be construed as abrogating a recorded
restrictive covenant.
2. A county shall not adopt or enforce construction,
building, or design ordinances, regulations, requirements,
or restrictions which would mandate width standards greater
than twenty-four feet, roof pitch, or other design standards
for manufactured housing if the housing otherwise complies
with 42 U.S.C. §5403. A county shall not adopt or enforce
zoning or subdivision regulations or other ordinances which
mandate width standards for a single modular or manufactured
home which is sited upon land otherwise zoned as agricultural
land. However, this paragraph subsection shall not prohibit a
county from adopting and enforcing zoning regulations related
to transportation, water, sewerage, or other land development.
Sec. 47. Section 352.4, subsection 1, paragraphs b, c, and
d, Code 2020, are amended to read as follows:

House File 2535, p. 19
b. The lands used for public facilities, which may include
parks, recreation areas, schools, government buildings , and
historical sites.
c. The lands used for private open spaces, which may include
woodlands, wetlands , and water bodies.
d. The land used for each of the following uses:
commercial, industrial including mineral extraction,
residential , and transportation.
Sec. 48. Section 352.4, subsection 3, Code 2020, is amended
to read as follows:
3. The information required by subsection 1 shall be
provided both in narrative and map form. The county commission
shall provide a cartographic display which contrasts the
county’s present land use with the land use in the county in
1960 based on the best available information. The display
need only show the areas in agriculture, private open spaces,
public facilities, commercial, industrial, residential , and
transportation uses.
Sec. 49. Section 357.17, Code 2020, is amended to read as
follows:
357.17 Bond of contractor.
1. The successful bidder, when awarded a contract, shall
be required to give an approved surety bond for one hundred
percent of the contract price, guaranteeing completion of the
work in accordance with the plans and specifications, and for
maintenance, including backfilling, for one year after the
final acceptance of the work.
2. If the contractor shall fail fails to complete the work
as provided in the contract, or shall abandon abandons the
same work , or fail fails to proceed in a reasonable manner
toward its final completion, the board may proceed against
the contractor and surety as provided in sections 468.104 and
468.105 .
Sec. 50. Section 359.14, Code 2020, is amended to read as
follows:
359.14 Changing name —— petition —— notice.
1. Eligible electors of a township wishing to change its
name may petition the board of supervisors and, if .
2. If it appears to the board that a majority of the

House File 2535, p. 20
eligible electors of the township are in favor of the change,
the board shall cause notices, attested by the auditor, to be
posted in three of the most public places of the township, for
at least thirty days before the next regular session of the
board.
3. The notice shall state that all of the following:
a. That a petition has been presented to the board by the
eligible electors of the township, seeking a change of the name
of the township and shall state the .
b. The name sought in the petition , and that, .
c. That, unless those interested in the change of name
appear at the next regular session of the board and show cause
why the name shall not be changed, there will be an order made
granting the change.
Sec. 51. Section 411.23, subsection 3, paragraph b, Code
2020, is amended to read as follows:
b. In the event a refund is made in accordance with this
subsection without the member’s consent, the system shall
pay the distribution in a direct rollover to an individual
retirement plan designated by the system unless the member
elects to have such distribution paid directly to an eligible
retirement plan specified by the member in a direct rollover
in accordance with section 411.6B or elects to receive the
distribution directly. The system may, by rule, implement
a de minimus de minimis exception to the automatic rollover
provision of this subsection , subject to the limitations of
the Internal Revenue Code and any applicable internal revenue
service regulations.
Sec. 52. Section 425.8, subsection 1, Code 2020, is amended
to read as follows:
1. The director of revenue shall prescribe the form
for the making of a verified statement and designation of
homestead, the form for the supporting affidavits required
herein, and such other forms as may be necessary for the proper
administration of this chapter . Whenever necessary, the
department of revenue shall forward to the county auditors of
the several counties in the state the prescribed sample forms,
and the county auditors shall furnish blank forms prepared in
accordance therewith with the assessment rolls, books, and

House File 2535, p. 21
supplies delivered to the assessors. The department of revenue
shall prescribe and the county auditors shall provide on the
forms for claiming the homestead credit a statement to the
effect that the owner realizes that the owner must give written
notice to the assessor when the owner changes the use of the
property.
Sec. 53. Section 456A.28, Code 2020, is amended to read as
follows:
456A.28 Fish restoration projects.
The state of Iowa assents to the provisions of the Act of
Congress entitled “An Act To Provide That The United States
Shall Aid The States In Fish Restoration Projects, And For
Other Purposes”, approved August 9, 1950, Ch. Chapter 658,
64 Stat. 430, codified at 16 U.S.C. §777 – 777n, and the
department may perform acts as necessary to the conduct and
establishment of cooperative fish restoration projects, as
defined in the Act of Congress, in compliance with the Act and
with regulations promulgated by the secretary of the interior
under the Act. No funds accruing to the state of Iowa from
fishing license fees shall be diverted for any other purposes
than as set out in sections 456A.17 and 456A.19 .
Sec. 54. Section 461A.1, subsection 1, Code 2020, is amended
to read as follows:
1. “ Commission” means the natural resource commission
created under section 455A.5 .
Sec. 55. Section 462A.5, subsection 4, paragraph b, Code
2020, is amended to read as follows:
b. If the name of a person , who has registered a vessel , is
changed, the person shall, within ten days, notify any county
recorder of the former and new name.
Sec. 56. Section 462A.12, subsection 4, Code 2020, is
amended to read as follows:
4. No person shall operate on the waters of this state under
the jurisdiction of the conservation commission any vessel
displaying or reflecting a blue light or flashing blue light
unless such vessel is an authorized emergency vessel.
Sec. 57. Section 515G.3, subsection 1, paragraph c, Code
2020, is amended to read as follows:
c. The manner and basis of exchanging the rights of each

House File 2535, p. 22
voting policyholder and each eligible policyholder of the
mutual insurer to be converted to a stock company pursuant
to this chapter . Such exchange may include a base value
for each voting policyholder in recognition of the voting
policyholder’s voting rights as a mutual policyholder as well
as consideration to be provided to each eligible policyholder
in exchange for the eligible policyholder’s rights as a mutual
policyholder of the mutual insurer to be converted. After
determining the base value to be provided to each voting
policyholder in recognition of the voting rights of the voting
policyholder, the equitable share of each eligible policyholder
in the remaining statutory surplus of the mutual insurer,
plus any adjustments for nonadmitted assets or additional
value permitted by the commissioner, to be provided to each
eligible policyholder shall be determined by the ratio which
the net earned premiums the eligible policyholder has properly
and timely paid to the mutual insurer on insurance policies
in effect during the three-year period immediately preceding
the adoption of the plan of conversion, including the date of
the adoption of the plan of conversion, bears to the total
net earned premiums received by the mutual insurer from all
eligible policyholders during that three-year period. The base
value to be provided to each voting policyholder in recognition
of voting rights and the equitable share of each eligible
policyholder may be exchanged, without additional payment,
for securities or other consideration, or both, of the stock
corporation or an affiliate into which the mutual insurer is to
be converted. If the base value for each voting policyholder
or the equitable share of each eligible policyholder entitles
the policyholder to the purchase of a fractional share of
stock, the policyholder has the option to receive the value of
the fractional share in cash or purchase a full share by paying
the balance in cash. However, policyholders due a de minimus
de minimis amount, as established by the commissioner, need
not be offered the value of the fractional share or the option
to purchase a full share. The plan shall also provide for the
disposition of any unclaimed shares.
Sec. 58. Section 515I.4A, subsection 7, Code 2020, is
amended to read as follows:

House File 2535, p. 23
7. A policy or contract issued by a domestic surplus lines
insurer in this state is exempt from all requirements imposed
in this state relating to insurance rating plans, policy or
contract forms, policy or contract cancellation and nonrenewal,
or premiums charged to the insured , in the same manner and to
the same extent as a policy or contract issued by a nonadmitted
insurer domiciled in another state.
Sec. 59. Section 521I.11, subsection 3, Code 2020, is
amended to read as follows:
3. The allocation to a resulting insurer of capital,
surplus, or other asset that is collateral covered by an
effective financing statement shall not be effective until a
new effective financing statement naming the resulting insurer
as a debtor is effective under the uniform commercial code ,
chapter 554 .
Sec. 60. Section 523C.9, subsection 3, Code 2020, is amended
to read as follows:
3. The service company has without just cause refused to
perform or negligently or incompetently performed services
required to be performed under its service contracts and
the refusal, or negligent or incompetent performance has
occurred with such frequency, as determined by the commissioner
determines , as to indicate the general business practices of
the service company.
Sec. 61. Section 554.2402, subsection 3, paragraph b, Code
2020, is amended to read as follows:
b. where identification to the contract or delivery is
made not in current course of trade but in satisfaction of or
as security for a pre-existing preexisting claim for money,
security or the like and is made under circumstances which
under any rule of law of the state where the goods are situated
would apart from this Article constitute the transaction a
fraudulent transfer or voidable preference.
Sec. 62. Section 573.14, Code 2020, is amended to read as
follows:
573.14 Retention of unpaid funds.
1. The fund provided for in section 573.13 shall be retained
by the public corporation for a period of thirty days after the
completion and final acceptance of the improvement. If at the

House File 2535, p. 24
end of the thirty-day period claims are on file as provided the
public corporation shall continue to retain from the unpaid
funds a sum equal to double the total amount of all claims
on file. The remaining balance of the unpaid fund, or if no
claims are on file, the entire unpaid fund, shall be released
and paid to the contractor.
2. The public corporation shall order payment of any
amount due the contractor to be made in accordance with the
terms of the contract. Except as provided in section 573.12
for progress payments, failure to make payment pursuant to
this section , of any amount due the contractor, within forty
days, unless a greater time period not to exceed fifty days
is specified in the contract documents, after the work under
the contract has been completed and if the work has been
accepted and all required materials, certifications, and other
documentations required to be submitted by the contractor and
specified by the contract have been furnished the awarding
public corporation by the contractor, shall cause interest
to accrue on the amount unpaid to the benefit of the unpaid
party. Interest shall accrue during the period commencing
the thirty-first day following the completion of work and
satisfaction of the other requirements of this paragraph
subsection and ending on the date of payment. The rate of
interest shall be determined by the period of time during
which interest accrues, and shall be the same as the rate of
interest that is in effect under section 12C.6 , as of the
day interest begins to accrue, for a deposit of public funds
for a comparable period of time. However, for institutions
governed pursuant to chapter 262 , the rate of interest shall
be determined by the period of time during which interest
accrues, and shall be calculated as the prime rate plus one
percent per year as of the day interest begins to accrue. This
paragraph subsection does not abridge any of the rights set
forth in section 573.16 . Except as provided in sections 573.12
and 573.16 , interest shall not accrue on funds retained by the
public corporation to satisfy the provisions of this section
regarding claims on file. This chapter does not apply if the
public corporation has entered into a contract with the federal
government or accepted a federal grant which is governed by

House File 2535, p. 25
federal law or rules that are contrary to the provisions of
this chapter . For purposes of this unnumbered paragraph
subsection , “prime rate” means the prime rate charged by banks
on short-term business loans, as determined by the board of
governors of the federal reserve system and published in the
federal reserve bulletin.
Sec. 63. Section 602.10134, Code 2020, is amended to read
as follows:
602.10134 Plea of guilty or failure to plead.
If the accused plead pleads guilty, or fail fails to answer,
the court shall proceed to render such judgment as the case
requires.
Sec. 64. Section 624.1, Code 2020, is amended to read as
follows:
624.1 Evidence in ordinary actions.
1. All issues of fact in ordinary actions shall be tried
upon oral evidence taken in open court, except that depositions
may be used as provided by law.
2. A party may interrogate any unwilling or hostile witness
by leading questions.
3. A party may call an adverse party or an officer,
director, or managing agent of a public or private corporation
or of a partnership or association which is an adverse party,
and interrogate the party or person by leading questions and
contradict and impeach the party or person in all respects
as if the party or person had been called by the adverse
party, and the witness thus called may be contradicted and
impeached by or on behalf of the adverse party also, and may
be cross-examined by the adverse party only upon the subject
matter of the examination in chief.
Sec. 65. Section 633.402, Code 2020, is amended to read as
follows:
633.402 Sale defined.
For purposes of this part 6 of this subchapter , sale of
property includes but is not limited to the granting of an
easement, the granting of an option, the granting of a right of
refusal and the granting or conveyance of any other interest,
title , or right regarding property.
Sec. 66. Section 633.551, subsection 6, Code 2020, is

House File 2535, p. 26
amended to read as follows:
6. Except as otherwise provided in this subchapter , the Iowa
rules of civil procedure shall govern proceedings to establish,
modify, or terminate a guardianship or conservatorship.
Sec. 67. Section 633.558, subsection 3, Code 2020, is
amended to read as follows:
3. Notice of the filing of a petition given to persons under
subsections subsection 2 and 3 shall include a statement that
such persons may register to receive notice of the hearing
on the petition and other proceedings and the manner of such
registration.
Sec. 68. Section 633.563, subsection 1, unnumbered
paragraph 1, Code 2020, is amended to read as follows:
At or before a hearing on a petition for the appointment of
a guardian or conservator or the modification or termination
of a guardianship or conservatorship, the court shall order a
professional evaluation of the respondent unless one of the
following criteria are met:
Sec. 69. Section 633.634, Code 2020, is amended to read as
follows:
633.634 Combination of petitions.
If , prior to the time of hearing on a petition for the
appointment of a guardian or a conservator, a petition is
filed under the provisions of section 633.556 , 633.557 , or
633.591 , the court shall combine the hearing hearings on such
the petitions and determine who shall be appointed guardian or
conservator , and such petition . The petitions shall be triable
to the court.
Sec. 70. Section 712.2, Code 2020, is amended to read as
follows:
712.2 Arson in the first degree.
1. Arson is arson in the first degree when the presence
of one or more persons can be reasonably anticipated in or
near the property which is the subject of the arson, or the
arson results in the death of a fire fighter, whether paid or
volunteer.
2. Arson in the first degree is a class “B” felony.
Sec. 71. Section 712.3, Code 2020, is amended to read as
follows:

House File 2535, p. 27
712.3 Arson in the second degree.
1. Arson which is not arson in the first degree is arson
in the second degree when the property which is the subject of
the arson is a building or a structure, or real property of any
kind, or standing crops, or is personal property the value of
which exceeds seven hundred fifty dollars.
2. Arson in the second degree is a class “C” felony.
Sec. 72. Section 712.4, Code 2020, is amended to read as
follows:
712.4 Arson in the third degree.
1. Arson which is not arson in the first degree or arson in
the second degree is arson in the third degree.
2. Arson in the third degree is an aggravated misdemeanor.
Sec. 73. 2019 Iowa Acts, chapter 135, section 14, is amended
by striking the section and inserting in lieu thereof the
following:
SEC. 14. Section 261.86, subsection 1 , unnumbered paragraph
1, Code 2019, is amended to read as follows:
A national guard educational assistance service scholarship
program is established to be administered by the college
student aid commission for members of the Iowa national guard
who are enrolled as undergraduate students in a community
college, an institution of higher learning under the state
board of regents, or an accredited private institution. The
college student aid commission shall adopt rules pursuant
to chapter 17A to administer this section . An individual
is eligible for the national guard educational assistance
service scholarship program if the individual meets all of the
following conditions:
Sec. 74. EFFECTIVE DATE. The following, being deemed of
immediate importance, takes effect upon enactment:
The section of this Act amending 2019 Iowa Acts, chapter 135,
section 14.
Sec. 75. RETROACTIVE APPLICABILITY. The following applies
retroactively to July 1, 2019:
The section of this Act amending 2019 Iowa Acts, chapter 135,
section 14.
DIVISION II
CORRESPONDING CHANGES

House File 2535, p. 28
Sec. 76. Section 85.28, Code 2020, is amended to read as
follows:
85.28 Burial expense.
When death ensues from the injury, the employer shall pay the
reasonable expenses of burial of such employee, not to exceed
twelve times the statewide average weekly wage paid employees
as determined by the department of workforce development under
section 96.19 96.1A , subsection 36 , and in effect at the time
of death, which shall be in addition to other compensation or
any other benefit provided for in this chapter .
Sec. 77. Section 85.31, subsection 1, paragraph b, Code
2020, is amended to read as follows:
b. The weekly benefit amount shall not exceed a weekly
benefit amount, rounded to the nearest dollar, equal to
two hundred percent of the statewide average weekly wage
paid employees as determined by the department of workforce
development under section 96.19 96.1A , subsection 36 , and in
effect at the time of the injury. The minimum weekly benefit
amount shall be equal to the weekly benefit amount of a person
whose gross weekly earnings are thirty-five percent of the
statewide average weekly wage. Such compensation shall be in
addition to the benefits provided by sections 85.27 and 85.28 .
Sec. 78. Section 85.34, subsection 2, unnumbered paragraph
1, Code 2020, is amended to read as follows:
Compensation for permanent partial disability shall begin
when it is medically indicated that maximum medical improvement
from the injury has been reached and that the extent of loss or
percentage of permanent impairment can be determined by use of
the guides to the evaluation of permanent impairment, published
by the American medical association, as adopted by the workers’
compensation commissioner by rule pursuant to chapter 17A . The
compensation shall be in addition to the benefits provided by
sections 85.27 and 85.28 . The compensation shall be based
upon the extent of the disability and upon the basis of eighty
percent per week of the employee’s average spendable weekly
earnings, but not more than a weekly benefit amount, rounded to
the nearest dollar, equal to one hundred eighty-four percent of
the statewide average weekly wage paid employees as determined
by the department of workforce development under section 96.19

House File 2535, p. 29
96.1A , subsection 36 , and in effect at the time of the injury.
The minimum weekly benefit amount shall be equal to the weekly
benefit amount of a person whose gross weekly earnings are
thirty-five percent of the statewide average weekly wage. For
all cases of permanent partial disability compensation shall
be paid as follows:
Sec. 79. Section 85.34, subsection 3, paragraph a, Code
2020, is amended to read as follows:
a. Compensation for an injury causing permanent total
disability shall be upon the basis of eighty percent per week
of the employee’s average spendable weekly earnings, but not
more than a weekly benefit amount, rounded to the nearest
dollar, equal to two hundred percent of the statewide average
weekly wage paid employees as determined by the department of
workforce development under section 96.19 96.1A , subsection 36 ,
and in effect at the time of the injury. The minimum weekly
benefit amount is equal to the weekly benefit amount of a
person whose gross weekly earnings are thirty-five percent of
the statewide average weekly wage. The weekly compensation is
payable until the employee is no longer permanently and totally
disabled.
Sec. 80. Section 85.37, subsection 1, Code 2020, is amended
to read as follows:
1. If an employee receives a personal injury causing
temporary total disability, or causing a permanent partial
disability for which compensation is payable during a healing
period, compensation for the temporary total disability or for
the healing period shall be upon the basis provided in this
section . The weekly benefit amount payable to any employee
for any one week shall be upon the basis of eighty percent of
the employee’s weekly spendable earnings, but shall not exceed
an amount, rounded to the nearest dollar, equal to sixty-six
and two-thirds percent of the statewide average weekly wage
paid employees as determined by the department of workforce
development under section 96.19 96.1A , subsection 36 , and in
effect at the time of the injury. However, as of July 1,
1981, the maximum weekly benefit amount rounded to the nearest
dollar shall be increased so that it equals two hundred percent
of the statewide average weekly wage as determined in this

House File 2535, p. 30
section . Total weekly compensation for any employee shall
not exceed eighty percent per week of the employee’s weekly
spendable earnings. The minimum weekly benefit amount shall
be equal to the weekly benefit amount of a person whose gross
weekly earnings are thirty-five percent of the statewide
average weekly wage, or to the spendable weekly earnings of the
employee, whichever are less.
Sec. 81. Section 85.59, subsection 3, paragraph d, Code
2020, is amended to read as follows:
d. If death results from the injury, death benefits shall
be awarded and paid to the dependents of the inmate as in
other workers’ compensation cases except that the weekly rate
shall be equal to sixty-six and two-thirds percent of the
state average weekly wage paid employees as determined by the
department of workforce development under section 96.19 96.1A ,
subsection 36 , and in effect at the time of the injury.
Sec. 82. Section 93.1, subsections 1 and 2, Code 2020, are
amended to read as follows:
1. “Governmental entity” means the same as defined in
section 96.19 96.1A .
2. “Indian tribe” means the same as defined in section 96.19
96.1A .
Sec. 83. Section 96.3, subsections 1 and 3, Code 2020, are
amended to read as follows:
1. Payment. Twenty-four months after the date when
contributions first accrue under this chapter , benefits shall
become payable from the fund; provided, that wages earned
for services defined in section 96.19 96.1A , subsection
18 , paragraph “g” , subparagraph (3), irrespective of when
performed, shall not be included for purposes of determining
eligibility, under section 96.4 or full-time weekly wages,
under subsection 4 of this section , for the purposes of
any benefit year, nor shall any benefits with respect to
unemployment be payable under subsection 5 of this section on
the basis of such wages. All benefits shall be paid through
employment offices in accordance with such regulations as the
department of workforce development may prescribe.
3. Partial unemployment. An individual who is partially
unemployed in any week as defined in section 96.19 96.1A ,

House File 2535, p. 31
subsection 38 , paragraph “b” , and who meets the conditions of
eligibility for benefits shall be paid with respect to that
week an amount equal to the individual’s weekly benefit amount
less that part of wages payable to the individual with respect
to that week in excess of one-fourth of the individual’s weekly
benefit amount. The benefits shall be rounded to the lower
multiple of one dollar.
Sec. 84. Section 96.4, subsections 1 and 3, Code 2020, are
amended to read as follows:
1. The individual has registered for work at and thereafter
has continued to report at an employment office in accordance
with such regulations as the department may prescribe. The
provisions of this subsection shall be waived if the individual
is deemed temporarily unemployed as defined in section 96.19
96.1A , subsection 38 , paragraph “c” .
3. The individual is able to work, is available for work,
and is earnestly and actively seeking work. This subsection is
waived if the individual is deemed partially unemployed, while
employed at the individual’s regular job, as defined in section
96.19 96.1A , subsection 38 , paragraph “b” , subparagraph (1), or
temporarily unemployed as defined in section 96.19, subsection
38 , paragraph “c” . The work search requirements of this
subsection and the disqualification requirement for failure
to apply for, or to accept suitable work of section 96.5,
subsection 3 , are waived if the individual is not disqualified
for benefits under section 96.5, subsection 1 , paragraph “h” .
Sec. 85. Section 96.4, subsection 4, paragraph b,
unnumbered paragraph 1, Code 2020, is amended to read as
follows:
For an individual who does not have sufficient wages
in the base period, as defined in section 96.19 96.1A , to
otherwise qualify for benefits pursuant to this subsection ,
the individual’s base period shall be the last four completed
calendar quarters immediately preceding the first day of
the individual’s benefit year if such period qualifies the
individual for benefits under this subsection .
Sec. 86. Section 96.4, subsection 5, unnumbered paragraph
1, Code 2020, is amended to read as follows:
Benefits based on service in employment in a nonprofit

House File 2535, p. 32
organization or government entity, defined in section 96.19
96.1A , subsection 18 , are payable in the same amount, on the
same terms and subject to the same conditions as compensation
payable on the same basis of other service subject to this
chapter , except that:
Sec. 87. Section 96.5, subsection 7, paragraphs a, b, and d,
Code 2020, are amended to read as follows:
a. When an employer makes a payment or becomes obligated
to make a payment to an individual for vacation pay, or for
vacation pay allowance, or as pay in lieu of vacation, such
payment or amount shall be deemed “wages” as defined in section
96.19 96.1A , subsection 41 , and shall be applied as provided
in paragraph “c” hereof.
b. When, in connection with a separation or layoff of
an individual, the individual’s employer makes a payment or
payments to the individual, or becomes obligated to make a
payment to the individual as, or in the nature of, vacation
pay, or vacation pay allowance, or as pay in lieu of vacation.
The amount of a payment or obligation to make payment, is
deemed “wages” as defined in section 96.19 96.1A , subsection
41 , and shall be applied as provided in paragraph “c” of this
subsection 7 .
d. Notwithstanding contrary provisions in paragraphs “a” ,
“b” , and “c” , if an individual is separated from employment and
is scheduled to receive vacation payments during the period of
unemployment attributable to the employer, then payments made
by the employer to the individual or an obligation to make a
payment by the employer to the individual for vacation pay,
vacation pay allowance or pay in lieu of vacation shall not be
deemed wages as defined in section 96.19 96.1A , subsection 41 ,
for any period in excess of five workdays and such payments or
the value of such obligations shall not be deducted for any
period in excess of one week from the unemployment benefits the
individual is otherwise entitled to receive under this chapter .
Sec. 88. Section 96.7, subsection 2, paragraph b,
subparagraph (1), Code 2020, is amended to read as follows:
(1) If an organization, trade, or business, or a clearly
segregable and identifiable part of an organization, trade, or
business, for which contributions have been paid is sold or

House File 2535, p. 33
transferred to a subsequent employing unit, or if one or more
employing units have been reorganized or merged into a single
employing unit, and the successor employer, having qualified
as an employer as defined in section 96.19 96.1A , subsection
16 , paragraph “b” , continues to operate the organization,
trade, or business, the successor employer shall assume the
position of the predecessor employer or employers with respect
to the predecessors’ payrolls, contributions, accounts, and
contribution rates to the same extent as if no change had
taken place in the ownership or control of the organization,
trade, or business. However, the successor employer shall not
assume the position of the predecessor employer or employers
with respect to the predecessor employer’s or employers’
payrolls, contributions, accounts, and contribution rates which
are attributable to that part of the organization, trade, or
business transferred, unless the successor employer applies to
the department within ninety days from the date of the partial
transfer, and the succession is approved by the predecessor
employer or employers and the department.
Sec. 89. Section 96.8, subsection 2, Code 2020, is amended
to read as follows:
2. Voluntary termination. Except as otherwise provided
in subsection 3 of this section , an employing unit ceases
to be an employer subject to this chapter , as of the first
day of January of any year, if it files with the department,
prior to the fifteenth day of February of that year, a
written application for termination of coverage, and the
department finds that the employing unit did not meet any of
the qualifying liability requirements as provided under section
96.19 96.1A , subsection 16 , in the preceding calendar year.
Sec. 90. Section 96.23, subsection 1, unnumbered paragraph
1, Code 2020, is amended to read as follows:
The department shall exclude three or more calendar quarters
from an individual’s base period, as defined in section 96.19
96.1A , subsection 3 , if the individual received workers’
compensation benefits for temporary total disability or during
a healing period under section 85.33 , section 85.34, subsection
1 , or section 85A.17 or indemnity insurance benefits during
those three or more calendar quarters, if one of the following

House File 2535, p. 34
conditions applies to the individual’s base period:
Sec. 91. Section 96.40, subsection 10, Code 2020, is amended
to read as follows:
10. An individual who has received all of the shared
work benefits and regular unemployment compensation benefits
available in a benefit year shall be considered an exhaustee,
as defined in section 96.19 96.1A , subsection 20 , for purposes
of the extended benefit program administered pursuant to
section 96.29 .
Sec. 92. Section 422.11A, Code 2020, is amended to read as
follows:
422.11A New jobs tax credit.
The taxes imposed under this division , less the credits
allowed under section 422.12 , shall be reduced by a new jobs
tax credit. An industry which has entered into an agreement
under chapter 260E and which has increased its base employment
level by at least ten percent within the time set in the
agreement or, in the case of an industry without a base
employment level, adds new jobs within the time set in the
agreement is entitled to this new jobs tax credit for the tax
year selected by the industry. In determining if the industry
has increased its base employment level by ten percent or added
new jobs, only those new jobs directly resulting from the
project covered by the agreement and those directly related to
those new jobs shall be counted. The amount of this credit
is equal to the product of six percent of the taxable wages
upon which an employer is required to contribute to the state
unemployment compensation fund, as defined in section 96.19
96.1A , subsection 37 , times the number of new jobs existing
in the tax year that directly result from the project covered
by the agreement or new jobs that directly result from those
new jobs. The tax year chosen by the industry shall either
begin or end during the period beginning with the date of the
agreement and ending with the date by which the project is to
be completed under the agreement. An individual may claim
the new jobs tax credit allowed a partnership, subchapter S
corporation, or estate or trust electing to have the income
taxed directly to the individual. The amount claimed by
the individual shall be based upon the pro rata share of

House File 2535, p. 35
the individual’s earnings of the partnership, subchapter S
corporation, or estate or trust. Any credit in excess of the
tax liability for the tax year may be credited to the tax
liability for the following ten tax years or until depleted,
whichever is the earlier. For purposes of this section ,
“agreement” , “industry” , “new job” , and “project” mean the same
as defined in section 260E.2 and “base employment level” means
the number of full-time jobs an industry employs at the plant
site which is covered by an agreement under chapter 260E on the
date of that agreement.
Sec. 93. Section 422.33, subsection 6, Code 2020, is amended
to read as follows:
6. The taxes imposed under this division shall be reduced
by a new jobs tax credit. An industry which has entered into
an agreement under chapter 260E and which has increased its
base employment level by at least ten percent within the time
set in the agreement or, in the case of an industry without
a base employment level, adds new jobs within the time set
in the agreement is entitled to this new jobs tax credit for
the tax year selected by the industry. In determining if the
industry has increased its base employment level by ten percent
or added new jobs, only those new jobs directly resulting from
the project covered by the agreement and those directly related
to those new jobs shall be counted. The amount of this credit
is equal to the product of six percent of the taxable wages
upon which an employer is required to contribute to the state
unemployment compensation fund, as defined in section 96.19
96.1A , subsection 37 , times the number of new jobs existing
in the tax year that directly result from the project covered
by the agreement or new jobs that directly result from those
new jobs. The tax year chosen by the industry shall either
begin or end during the period beginning with the date of the
agreement and ending with the date by which the project is to
be completed under the agreement. Any credit in excess of
the tax liability for the tax year may be credited to the tax
liability for the following ten tax years or until depleted
in less than the ten years. For purposes of this section ,
“agreement” , “industry” , “new job” and “project” mean the same as
defined in section 260E.2 and “base employment level” means the

House File 2535, p. 36
number of full-time jobs an industry employs at the plant site
which is covered by an agreement under chapter 260E on the date
of that agreement.
DIVISION III
CODE EDITOR DIRECTIVES
Sec. 94. CODE EDITOR DIRECTIVES.
1. Sections 257.11, subsection 3, paragraph “c”,
subparagraph (1); 272.2, subsection 22; 279.50A, subsection 1,
paragraph “a”; 284.17, subsection 3; and 915.80, subsection
8, Code 2020, are amended by striking the words “good-faith
effort” and inserting in lieu thereof the words “good faith
effort”.
2. a. The Code editor is directed to number unnumbered
chapter headings in chapter 12.
b. The Code editor shall correct internal references in the
Code and in any enacted legislation as necessary due to the
enactment of this section.
3. The Code editor may change chapter division designations
to subchapter designations and correct internal references as
necessary in and to the following chapters:
a. 232.
b. 422.
4. Sections 232.12, 232.39, 232.41, 232.67, 232.88,
232.92, 232.94, 232.107, 232.115, 232.168, 232.175, 232.180,
422.1, 422.2, 422.4, 422.5, 422.10B, 422.11, 422.11A, 422.11C,
422.11D, 422.11E, 422.11F, 422.11H, 422.11J, 422.11Q, 422.11R,
422.11V, 422.11Z, 422.22, 422.27, 422.31, 422.38, 422.39,
422.40, 422.41, 422.66, 422.74, 422.85, 422.110, and 422D.2,
Code 2020, are amended by striking the word “division” and
inserting in lieu thereof the word “subchapter”.
5. Sections 15.319, subsection 2; 15.333, subsection
2; 16.82, subsection 1; 29C.24, subsection 3, paragraph
“b”, subparagraph (2); 35A.13, subsection 2, paragraph “b”;
100B.13, subsection 2, paragraph “a”; 135L.3, subsection
3, paragraph “m”, subparagraph (4); 232.2, subsection 11,
paragraph “a”; 232.11, subsection 1, unnumbered paragraph
1; 232.38, subsection 1; 232.42, subsection 2; 232.52,
subsection 9; 232.55, subsection 1; 232.55, subsection 2,
paragraph “a”; 232.57, subsections 1 and 3; 232.58, subsection

House File 2535, p. 37
1, unnumbered paragraph 1; 232.68, unnumbered paragraph 1;
232.72, subsection 1; 232.87, subsection 5; 232.90, subsections
2 and 4; 232.91, subsections 1 and 2; 232.96, subsection
6; 232.99, subsection 4; 232.101A, subsection 1, paragraph
“b”; 232.102, subsection 10, paragraph “a”, unnumbered
paragraph 1; 232.108, subsection 1; 232.112, subsection 1;
232.114, subsections 2 and 4; 232.117, subsection 9; 232.127,
subsection 2; 232.182, subsection 2; 235A.2, subsection
1; 235A.13, unnumbered paragraph 1; 257.21, subsection 2;
422.6, subsection 1; 422.7, subsection 36; 422.8, subsection
4; 422.10, subsection 1, unnumbered paragraph 1; 422.10,
subsection 4; 422.11L, subsection 1, unnumbered paragraph
1; 422.11N, subsection 3, unnumbered paragraph 1; 422.11O,
subsection 2, unnumbered paragraph 1; 422.11P, subsection
3, unnumbered paragraph 1; 422.11S, subsection 1; 422.11W,
subsection 1; 422.11Y, subsection 3, unnumbered paragraph
1; 422.12, subsection 2, unnumbered paragraph 1; 422.12A,
subsection 2; 422.12B, subsection 1, paragraph “a”, unnumbered
paragraph 1; 422.12C, subsection 1, unnumbered paragraph 1;
422.12C, subsection 2, paragraph “a”; 422.12N, subsection
1; 422.13, subsection 1, paragraphs “a” and “b”; 422.13,
subsection 2; 422.13, subsection 5, paragraph “c”; 422.14,
subsections 1 and 3; 422.25, subsections 5, 6, and 8; 422.32,
subsection 1, unnumbered paragraph 1; 422.32, subsection 1,
paragraph “k”; 422.32, subsection 2; 422.33, subsection 4,
paragraph “a”; 422.33, subsection 5, paragraph “a”, unnumbered
paragraph 1; 422.33, subsections 6 and 8; 422.33, subsection
9, paragraph “a”; 422.33, subsection 10; 422.33, subsection
11A, unnumbered paragraph 1; 422.33, subsection 11B, unnumbered
paragraph 1; 422.33, subsection 11C, unnumbered paragraph
1; 422.33, subsection 11D, unnumbered paragraph 1; 422.33,
subsections 12, 13, 14, 15, 19, 20, 21, and 22; 422.33,
subsection 25, paragraph “a”; 422.33, subsections 26 and 28;
422.33, subsection 29, paragraph “a”; 422.33, subsection 30;
422.34, unnumbered paragraph 1; 422.34, subsection 2, paragraph
“b”; 422.34A, unnumbered paragraph 1; 422.35, subsection 18;
422.36, subsection 2; 422.60, subsection 2, paragraph “a”;
422.60, subsections 4, 5, 6, 7, 8, 9, 10, and 11; 422.60,
subsection 12, paragraph “a”; 422.60, subsection 13; 422.61,

House File 2535, p. 38
unnumbered paragraph 1; 422.61, subsection 3, paragraph “b”;
422.61, subsection 5; 422.73, subsection 1; 422D.3, subsection
3; 428A.8, subsection 1, paragraph “c”; 452A.17, subsection
2; 476B.6, subsection 5, paragraphs “a”, “b”, “c”, and “d”;
476C.4, subsection 4, paragraphs “a”, “b”, “c”, and “d”;
483A.1A, subsection 10, paragraph “e”; and 600A.5, subsection
2, Code 2020, are amended by striking the word “division” and
inserting in lieu thereof the word “subchapter”.
6. Sections 28A.24, 190B.103, and 476B.2, Code 2020, are
amended by striking the word “divisions” and inserting in lieu
thereof the word “subchapters”.
7. Section 15.293A, subsection 1, paragraph “a”; 15.293A,
subsection 2, paragraphs “c” and “f”; 15.319, subsection 6,
paragraph “c”; 15.355, subsection 3, paragraph “b”; 15.355,
subsection 3, paragraph “e”, subparagraphs (3) and (6); 15E.43,
subsection 1, paragraphs “a” and “d”; 15E.44, subsection 4;
15E.52, subsection 2, paragraph “a”; 15E.52, subsection 13;
15E.62, subsection 8; 15E.305, subsection 1; 16.64, subsection
2; 16.82A, subsection 3, paragraph “c”; 29C.24, subsection 3,
paragraph “a”, subparagraph (3); 404A.2, subsection 2; 404A.2,
subsection 3, paragraph “c”; 404A.2, subsection 5, paragraph
“c”; 422.16, subsection 5; 476B.7, subsection 2; and 476C.6,
subsection 1, paragraph “b”, Code 2020, are amended by striking
the word “divisions” and inserting in lieu thereof the word
“subchapters”.
8. a. The Code editor is directed to make the following
transfers:
(1) Section 96.1A to section 96.1B.
(2) Section 96.19 to section 96.1A.
b. The Code editor shall correct internal references in the
Code and in any enacted legislation as necessary due to the
enactment of this section.
9. The Code editor may number unnumbered paragraphs within
sections 1C.9, 6B.45, 8E.208, 9G.6, 21.3, 24.17, 25B.6, 55.3,
55.4, 69.13, 85A.12, 85A.19, 142.4, 142.8, 154C.7, 158.6,
173.6, 173.16, 182.3, 182.7, 216A.99, 225C.41, 303.51, 307.11,
307.44, 307.48, 311.6, 311.15, 311.16, 311.19, 311.23, 311.26,
330.21, 330.23, 335.30A, 357.7, 357.14, 357.28, 357.29, 357.34,
359.23, 372.12, 422.111, 428.20, 434.15, 458A.21, 543C.8,

House File 2535, p. 39
554.12206, 599.1, and 633.13, Code 2020, in accordance with
established section hierarchy and correct internal references
in the Code and in any enacted Iowa Acts, as necessary.
______________________________ ______________________________
PAT GRASSLEY CHARLES SCHNEIDER
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2535, Eighty-eighth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2020 ______________________________
KIM REYNOLDS
Governor