Text: HF00335 Text: HF00337 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 PROPERTY TAX-RELATED PROVISIONS 1 3 Section 1. MENTAL HEALTH, MENTAL RETARDATION, AND 1 4 DEVELOPMENTAL DISABILITIES PROPERTY TAX RELIEF FUND. There is 1 5 appropriated from the general fund of the state to the mental 1 6 health, mental retardation, and developmental disabilities 1 7 property tax relief fund for the fiscal year beginning July 1, 1 8 1995, and ending June 30, 1996, the following amount, or so 1 9 much thereof as is necessary, to be used for the purposes 1 10 designated: 1 11 For property tax relief in accordance with the provisions 1 12 of section 331.438A, subsection 2: 1 13 .................................................. $ 54,400,000 1 14 Sec. 2. MEDICAL ASSISTANCE COSTS FOR SERVICES TO MINORS 1 15 WITH MENTAL RETARDATION. There is appropriated from the 1 16 general fund of the state to the department of human services 1 17 for the fiscal year beginning July 1, 1995, and ending June 1 18 30, 1996, the following amount, or so much thereof as is 1 19 necessary, to be used for the purposes designated: 1 20 For the nonfederal share of the costs of services provided 1 21 to minors with mental retardation under medical assistance in 1 22 accordance with the provisions of section 249A.12, subsection 1 23 4: 1 24 .................................................. $ 6,600,000 1 25 Sec. 3. Section 123.38, unnumbered paragraph 2, Code 1995, 1 26 is amended to read as follows: 1 27 Any licensee or permittee, or the licensee's or permittee's 1 28 executor or administrator, or any person duly appointed by the 1 29 court to take charge of and administer the property or assets 1 30 of the licensee or permittee for the benefit of the licensee's 1 31 or permittee's creditors, may voluntarily surrender a license 1 32 or permit to the division. When a license or permit is 1 33 surrendered the division shall notify the local authority, and 1 34 the division or the local authority shall refund to the person 1 35 surrendering the license or permit, a proportionate amount of 2 1 the fee received by the division or the local authority for 2 2 the license or permit as follows: If a license or permit is 2 3 surrendered during the first three months of the period for 2 4 which it was issued, the refund shall be three-fourths of the 2 5 amount of the fee; if surrendered more than three months but 2 6 not more than six months after issuance, the refund shall be 2 7 one-half of the amount of the fee; if surrendered more than 2 8 six months but not more than nine months after issuance, the 2 9 refund shall be one-fourth of the amount of the fee. No 2 10 refund shall be made, however, for any special liquor permit, 2 11 nor for a liquor control license, wine permit, or beer permit 2 12 surrendered more than nine months after issuance. For 2 13 purposes of this paragraph, any portion of license or permit 2 14 fees used for the purposes authorized in section 331.424, 2 15 subsection 1, paragraphs "a",and "b", "c", "d", "e", "f",2 16"g", and "h", and in section 331.438A, shall not be deemed 2 17 received either by the division or by a local authority. No 2 18 refund shall be made to any licensee or permittee, upon the 2 19 surrender of the license or permit, if there is at the time of 2 20 surrender, a complaint filed with the division or local 2 21 authority, charging the licensee or permittee with a violation 2 22 of this chapter. If upon a hearing on a complaint the license 2 23 or permit is not revoked or suspended, then the licensee or 2 24 permittee is eligible, upon surrender of the license or 2 25 permit, to receive a refund as provided in this section; but 2 26 if the license or permit is revoked or suspended upon hearing 2 27 the licensee or permittee is not eligible for the refund of 2 28 any portion of the license or permit fee. 2 29 Sec. 4. Section 218.99, Code 1995, is amended to read as 2 30 follows: 2 31 218.99 COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS' 2 32 PERSONAL ACCOUNTS. 2 33 The administrator of a division of the department of human 2 34 services in control of a state institution shall direct the 2 35 business manager of each institution under the administrator's 3 1 jurisdiction which is mentioned in section 331.424, subsection 3 2 1, paragraphs "a"through "g"and "b" and for which services 3 3 are paid under section 331.438A to quarterly inform the 3 4 auditor of the county of legal settlement of any patient or 3 5 resident who has an amount in excess of two hundred dollars on 3 6 account in the patients' personal deposit fund and the amount 3 7 on deposit. The administrators shall direct the business 3 8 manager to further notify the auditor of the county at least 3 9 fifteen days before the release of funds in excess of two 3 10 hundred dollars or upon the death of the patient or resident. 3 11 If the patient or resident has no county of legal settlement, 3 12 notice shall be made to the director of the department of 3 13 human services and the administrator of the division of the 3 14 department in control of the institution involved. 3 15 Sec. 5. Section 222.60, Code 1995, is amended to read as 3 16 follows: 3 17 222.60 COSTS PAID BY COUNTY OR STATE. 3 18 All necessary and legal expenses for the cost of admission 3 19 or commitment or for the treatment, training, instruction, 3 20 care, habilitation, support and transportation of patients, as 3 21 provided for in the county management plan provisions 3 22 implemented pursuant to section 331.439, subsection 1, in a 3 23 state hospital-school forthe mentally retardedpersons with 3 24 mental retardation, or in a special unit, or any public or 3 25 private facility within or without the state, approved by the 3 26 director of the department of human services, shall be paid by 3 27 either: 3 28 1. The county in whichsuch personthe patient has legal 3 29 settlement as defined in section 252.16. 3 30 2. The state whensuch personthe patient has no legal 3 31 settlement or whensuchlegal settlement is unknown. 3 32 Sec. 6. Section 225C.4, subsection 2, paragraph b, Code 3 33 1995, is amended to read as follows: 3 34 b. Establish mental health and mental retardation services 3 35 for all institutions under the control of the director of 4 1 human services and establish an autism unit, following mutual 4 2 planning with and consultation from the medical director of 4 3 the state psychiatric hospital, at an institution or a 4 4 facility administered by the administrator to provide 4 5 psychiatric and related services and other specific programs 4 6 to meet the needs of autistic personsas defined in section4 7331.424, subsection 1, and to furnish appropriate diagnostic 4 8 evaluation services. 4 9 Sec. 7. Section 331.301, subsection 12, Code 1995, is 4 10 amended to read as follows: 4 11 12. The board of supervisors may credit funds to a reserve 4 12 for the purposes authorized by subsection 11 of this section; 4 13 section 331.424, subsection 1, paragraph"l""f"; and section 4 14 331.441, subsection 2, paragraph "b". Moneys credited to the 4 15 reserve, and interest earned on such moneys, shall remain in 4 16 the reserve until expended for purposes authorized by 4 17 subsection 11 of this section; section 331.424, subsection 1, 4 18 paragraph"l""f"; or section 331.441, subsection 2, paragraph 4 19 "b". 4 20 Sec. 8. Section 331.424, subsection 1, Code 1995, is 4 21 amended to read as follows: 4 22 1. For general county services, an amount sufficient to 4 23 pay the charges for the following: 4 24 a. To the extent that the county is obligated by statute 4 25 to pay the charges for: 4 26(1) Care and treatment of patients by a state mental4 27health institute.4 28(2) Care and treatment of patients by either of the state4 29hospital-schools or by any other facility established under4 30chapter 222 and diagnostic evaluation under section 222.31.4 31(3) Care and treatment of patients under chapter 225.4 32(4)(1) Care and treatment of persons at the alcoholic 4 33 treatment center at Oakdale. However, the county may require 4 34 that an admission to the center shall be reported to the board 4 35 by the center within five days as a condition of the payment 5 1 of county funds for that admission. 5 2(5)(2) Care of children admitted or committed to the Iowa 5 3 juvenile home at Toledo. 5 4(6)(3) Clothing, transportation, medical, or other 5 5 services provided persons attending the Iowa braille and sight 5 6 saving school, the Iowa school for the deaf, or the state 5 7 hospital-school for severely handicapped children at Iowa 5 8 City, for which the county becomes obligated to pay pursuant 5 9 to sections 263.12, 269.2, and 270.4 through 270.7. 5 10b. To the extent that the board deems it advisable to pay,5 11the charges for professional evaluation, treatment, training,5 12habilitation, and care of persons who are mentally retarded,5 13autistic persons, or persons who are afflicted by any other5 14developmental disability, at a suitable public or private5 15facility providing inpatient or outpatient care in the county.5 16As used in this paragraph:5 17(1) "Developmental disability" has the meaning assigned5 18that term by 42 U.S.C. sec. 6001(7) (1976), Supp. II, 1978,5 19and Supp. III, 1979.5 20(2) "Autistic persons" means persons, regardless of age,5 21with severe communication and behavior disorders that became5 22manifest during the early stages of childhood development and5 23that are characterized by a severely disabling inability to5 24understand, communicate, learn, and participate in social5 25relationships. "Autistic persons" includes but is not limited5 26to those persons afflicted by infantile autism, profound5 27aphasia, and childhood psychosis.5 28c. Care and treatment of persons placed in the county5 29hospital, county care facility, a health care facility as5 30defined in section 135C.1, subsection 6, or any other public5 31or private facility, which placement is in lieu of admission5 32or commitment to or is upon discharge, removal, or transfer5 33from a state mental health institute, hospital-school, or5 34other facility established pursuant to chapter 222.5 35d. Amounts budgeted by the board for the cost of6 1establishment and initial operation of a community mental6 2health center in the manner and subject to the limitations6 3provided by state law.6 4e.b. Foster care and related services provided under 6 5 court order to a child who is under the jurisdiction of the 6 6 juvenile court, including court-ordered costs for a guardian 6 7 ad litem under section 232.71. 6 8f. The care, admission, commitment, and transportation of6 9mentally ill patients in state hospitals, to the extent that6 10expenses for these services are required to be paid by the6 11county, including compensation for the advocate appointed6 12under section 229.19.6 13g. Amounts budgeted by the board for mental health6 14services or mental retardation services furnished to persons6 15on either an outpatient or inpatient basis, to a school or6 16other public agency, or to the community at large, by a6 17community mental health center or other suitable facility6 18located in or reasonably near the county, provided that6 19services meet the standards of the mental health and6 20developmental disabilities commission created in section6 21225C.5 and are consistent with the annual plan for services6 22approved by the board.6 23h. Reimbursement on behalf of mentally retarded persons6 24under section 249A.12.6 25i.c. Elections, and voter registration pursuant to 6 26 chapter 48A. 6 27j.d. Employee benefits under chapters 96, 97B, and 97C, 6 28 which are associated with salaries for general county 6 29 services. 6 30k.e. Joint county and city building authorities 6 31 established under section 346.27, as provided in subsection 22 6 32 of that section. 6 33l.f. Tort liability insurance, property insurance, and 6 34 any other insurance that may be necessary in the operation of 6 35 the county, costs of a self-insurance program, costs of a 7 1 local government risk pool, and amounts payable under any 7 2 insurance agreements to provide or procure such insurance, 7 3 self-insurance program, or local government risk pool. 7 4m.g. The maintenance and operation of the courts, 7 5 including but not limited to the salary and expenses of the 7 6 clerk of the district court and other employees of the clerk's 7 7 office, and bailiffs, court costs if the prosecution fails or 7 8 if the costs cannot be collected from the person liable, costs 7 9 and expenses of prosecution under section 189A.17, salaries 7 10 and expenses of juvenile court officers under chapter 602, 7 11 court-ordered costs in domestic abuse cases under section 7 12 236.5, the county's expense for confinement of prisoners under 7 13 chapter 356A, temporary assistance to the county attorney, 7 14 county contributions to a retirement system for bailiffs, 7 15 reimbursement for judicial magistrates under section 602.6501, 7 16 claims filed under section 622.93, interpreters' fees under 7 17 section 622B.7, uniform citation and complaint supplies under 7 18 section 805.6, and costs of prosecution under section 815.13. 7 19n.h. Court-ordered costs of conciliation procedures under 7 20 section 598.16. 7 21o.i. Establishment and maintenance of a joint county 7 22 indigent defense fund pursuant to an agreement under section 7 23 28E.19. 7 24p.j. The maintenance and operation of a local emergency 7 25 management agency established pursuant to chapter 29C. 7 26 The board may require a public or private facility, as a 7 27 condition of receiving payment from county funds for services 7 28 it has provided, to furnish the board with a statement of the 7 29 income, assets, and legal residence including township and 7 30 county of each person who has received services from that 7 31 facility for which payment has been made from county funds 7 32 under paragraphs "a"through "h"and "b". However, the 7 33 facility shall not disclose to anyone the name or street or 7 34 route address of a person receiving services for which 7 35 commitment is not required, without first obtaining that 8 1 person's written permission. 8 2 Parents or other persons may voluntarily reimburse the 8 3 county or state for the reasonable cost of caring for a 8 4 patient or an inmate in a county or state facility. 8 5 Sec. 9. Section 331.424, Code 1995, is amended by adding 8 6 the following new subsection: 8 7 NEW SUBSECTION. 1A. The maximum amount of property tax 8 8 dollars which may be certified by a county for taxes levied 8 9 under subsection 1 and payable in the fiscal year beginning 8 10 July 1, 1996, and succeeding fiscal years shall not exceed the 8 11 amount of property tax dollars certified by the county for 8 12 taxes payable in the fiscal year beginning July 1, 1995, minus 8 13 an adjustment for the amounts levied by the county under 8 14 subsection 1 for mental health, mental retardation, and 8 15 developmental disabilities services in the fiscal year 8 16 beginning July 1, 1995. The adjustment and maximum amount 8 17 which may be levied by the county shall be determined by the 8 18 county auditor, subject to the approval of the department of 8 19 management. A county which disagrees with the adjustment and 8 20 maximum amount proposed for the county by the department of 8 21 management may appeal the determination to the state appeal 8 22 board created in section 24.26 which shall make a final 8 23 determination. 8 24 Sec. 10. Section 331.426, subsection 1, Code 1995, is 8 25 amended by adding the following new paragraph: 8 26 NEW PARAGRAPH. h. An unusual need for a service or cost 8 27 paid from levies under section 331.424, subsection 1, which 8 28 would cause the total expenditures of services and costs paid 8 29 from those levies to exceed the maximum levies authorized 8 30 under section 331.424, subsection 1A. 8 31 Sec. 11. Section 331.438, subsection 1, paragraph b, Code 8 32 1995, is amended to read as follows: 8 33 b. "State payment" means the payment made by the state 8 34 under section 331.438A to a county determined to be eligible 8 35 for the payment in accordance with section 331.439.Except as9 1modified based upon the actual amount of the appropriation for9 2purposes of state payment under section 331.439, the amount of9 3the state payment for a fiscal year shall be calculated as9 4fifty percent of the amount by which the county's qualified9 5expenditures during the immediately preceding fiscal year were9 6in excess of the amount of the county's base year9 7expenditures.9 8 Sec. 12. Section 331.438, Code 1995, is amended by adding 9 9 the following new subsection: 9 10 NEW SUBSECTION. 1A. The state of Iowa shall provide 9 11 funding to counties for the costs of mental health and mental 9 12 retardation services so that over the five-year period 9 13 beginning July 1, 1995, and ending June 30, 2000, the relative 9 14 shares of the state and counties for these expenditures shall 9 15 become either equal or greater for the state. 9 16 Sec. 13. Section 331.438, subsection 3, paragraph c, Code 9 17 1995, is amended by adding the following new subparagraph: 9 18 NEW SUBPARAGRAPH. (15) Consider tort and other liability 9 19 issues associated with a county managing mental health, mental 9 20 retardation, and developmental disabilities services in 9 21 accordance with a fixed budget and make recommendations to 9 22 address the issues. 9 23 Sec. 14. NEW SECTION. 331.438A STATE AND COUNTY 9 24 EXPENDITURES FOR MENTAL HEALTH, MENTAL RETARDATION, AND 9 25 DEVELOPMENTAL DISABILITIES ASSISTANCE &endash; FUND CREATED. 9 26 1. The mental health, mental retardation, and 9 27 developmental disabilities property tax relief fund is created 9 28 in the office of the treasurer of state under the authority of 9 29 the department of revenue and finance. The relief fund shall 9 30 consist of moneys appropriated to the fund and the amount of 9 31 allocations from the fund for property tax relief pursuant to 9 32 subsection 2 and for the adjustment factor pursuant to 9 33 subsection 5 shall be as specified in law by the general 9 34 assembly. 9 35 2. In each fiscal year, a county shall receive for 10 1 property tax relief the county's proportion of the moneys in 10 2 the relief fund allocated for property tax relief. A county's 10 3 proportion of the moneys shall be equivalent to the sum of the 10 4 following three factors: 10 5 a. One-third based upon the county's proportion of the 10 6 state's general population. 10 7 b. One-third based upon the county's proportion of the 10 8 state's total taxable property valuation assessed for taxes 10 9 payable in the previous fiscal year. 10 10 c. One-third based upon the county's proportion of all 10 11 counties' base year expenditures, as defined in section 10 12 331.438. 10 13 3. The department of human services shall notify the 10 14 department of revenue and finance of the amount due each 10 15 county and the director of revenue and finance shall draw 10 16 warrants on the relief fund, payable quarterly to the county 10 17 treasurer in the amount due a county in accordance with 10 18 subsection 2, and mail the warrants to county auditors by 10 19 September 1, December 1, March 1, and June 1 of each year. 10 20 4. Before June 1, 1995, the director of human services 10 21 shall notify the county auditor of each county of the amount 10 22 of moneys the county will receive from the relief fund for 10 23 property tax relief pursuant to subsection 2 in the succeeding 10 24 fiscal year. For the fiscal year beginning July 1, 1995, the 10 25 department of management shall reduce the amount of the 10 26 county's certified budget to be raised by property tax, for 10 27 that fiscal year by an amount equal to the amount the county 10 28 will receive from the relief fund for property tax relief 10 29 pursuant to subsection 2 and the department of management 10 30 shall determine the rate of taxation necessary to raise the 10 31 reduced amount. For subsequent fiscal years, the levy for the 10 32 mental health, mental retardation, and developmental 10 33 disabilities fund shall be reduced by the county auditor and 10 34 the board of supervisors in the manner specified in section 10 35 331.424A. 11 1 5. In addition to moneys received by a county for a fiscal 11 2 year pursuant to subsection 2, the county may be paid an 11 3 adjustment factor payment for services provided in accordance 11 4 with the county's management plan implemented pursuant to 11 5 section 331.439 and paid for from the county's services fund 11 6 under section 331.424A. The amount of the adjustment factor 11 7 payment to a county is subject to the amount appropriated for 11 8 this purpose and shall be paid as provided by the general 11 9 assembly for that fiscal year. 11 10 6. The department of human services, in consultation with 11 11 the state-county management committee, shall prescribe forms 11 12 and adopt rules pursuant to chapter 17A to administer this 11 13 section. 11 14 Sec. 15. Section 331.439, Code 1995, is amended by 11 15 striking the section and inserting in lieu thereof the 11 16 following: 11 17 331.439 ELIGIBILITY FOR STATE PAYMENT. 11 18 1. The state payment to eligible counties under this 11 19 section shall be made as provided in section 331.438A. A 11 20 county is eligible for the state payment, as defined in 11 21 section 331.438, for the fiscal year beginning July 1, 1995, 11 22 and for subsequent fiscal years if the director of human 11 23 services determines for a specific fiscal year that all of the 11 24 following conditions are met: 11 25 a. The county accurately reported by October 15 the 11 26 county's expenditures for mental health, mental retardation, 11 27 and developmental disabilities services for the previous 11 28 fiscal year on forms prescribed by the department of human 11 29 services. 11 30 b. The county developed and implemented a county 11 31 management plan for the county's mental health, mental 11 32 retardation, and developmental disabilities services in 11 33 accordance with the provisions of this paragraph. The plan 11 34 shall comply with the administrative rules adopted for this 11 35 purpose by the council on human services and is subject to the 12 1 approval of the director of human services in consultation 12 2 with the state-county management committee created in section 12 3 331.438. The plan shall include a description of the county's 12 4 service management provision for mental health, mental 12 5 retardation, and developmental disabilities services. The 12 6 plan shall have the following two parts: 12 7 (1) For mental health service management, the county must 12 8 contract with a state-approved managed mental health care 12 9 contractor or provide a comparable system of managed care. 12 10 For the fiscal year beginning July 1, 1995, this part of the 12 11 plan shall be submitted by January 5, 1996, and the county 12 12 shall implement the approved plan by March 1, 1996. For 12 13 subsequent fiscal years, this part of the plan shall be 12 14 submitted to the department by April 1 for the succeeding 12 15 fiscal year. 12 16 (2) For mental retardation and developmental disabilities 12 17 services management, the county must contract with a state- 12 18 approved managed care contractor or develop and implement a 12 19 managed system of care which addresses a full array of 12 20 appropriate services and cost-effective delivery of services. 12 21 The managed system of care shall incorporate a single entry 12 22 point process developed in accordance with the provisions of 12 23 section 331.440. The elements of the managed system of care 12 24 shall be specified in rules developed by the department in 12 25 consultation with the state-county management committee and 12 26 adopted by the council on human services. Initially, this 12 27 part of the plan shall be submitted within nine months of the 12 28 date by which the department approves a managed care 12 29 contractor. The county shall implement either the state- 12 30 approved contract or implement a comparable system of care 12 31 within twelve months of the date by which the department 12 32 approves a managed care contractor. In fiscal years 12 33 succeeding the fiscal year of initial implementation this part 12 34 of the plan shall be submitted to the department of human 12 35 services by April 1 for the succeeding fiscal year. 13 1 c. Changes to the approved plan are submitted sixty days 13 2 prior to the proposed change and are not to be implemented 13 3 prior to the director of human services' approval. 13 4 2. The county management plan shall address the county's 13 5 criteria for serving persons with chronic mental illness, 13 6 including any rationale used for decision making regarding 13 7 this population. 13 8 3. If funding is available under the fixed budget, a 13 9 county that has not provided services to a service population 13 10 which is not included in the service management provisions 13 11 required under subsection 1, may provide such services. 13 12 4. For the fiscal year beginning July 1, 1996, and 13 13 succeeding fiscal years, implementation of the county 13 14 management plan is subject to a fixed budget consisting of the 13 15 moneys deposited by the state and county in the county mental 13 16 health, mental retardation, and developmental disabilities 13 17 services fund created in section 331.424A. The amount of the 13 18 fixed budget shall be the amount specified for the fiscal year 13 19 in the county's management plan and budgeted for such 13 20 services. 13 21 5. A county shall implement the county's management plan 13 22 in a manner so as to provide adequate funding for the entire 13 23 fiscal year by budgeting for ninety-nine percent of the 13 24 funding anticipated to be available for the plan. 13 25 6. A county's implementation of the service management 13 26 provisions required under subsection 1 for mental health, 13 27 mental retardation, and developmental disabilities shall 13 28 incorporate the single entry point process described in 13 29 section 331.440. 13 30 7. The basis for determining whether a managed care system 13 31 for mental health proposed by a county is comparable to a 13 32 managed care contractor approved by the department of human 13 33 services shall include but is not limited to all of the 13 34 following elements which shall be specified in administrative 13 35 rules adopted by the department in consultation with the 14 1 state-county management committee: 14 2 a. The enrollment and eligibility process. 14 3 b. The scope of services included. 14 4 c. The method of plan administration. 14 5 d. The process for managing utilization and access to 14 6 services and other assistance. 14 7 e. The quality assurance process. 14 8 f. The risk management provisions and fiscal viability of 14 9 the provisions. 14 10 8. The director's approval of a county's mental health, 14 11 mental retardation, and developmental disabilities services 14 12 management plan shall not be construed to constitute 14 13 certification of the county's budget. 14 14 Sec. 16. Section 331.440, subsection 1, Code 1995, is 14 15 amended by adding the following new paragraph: 14 16 NEW PARAGRAPH. c. The single entry point process shall 14 17 include provision for the county's participation in a 14 18 management information system developed in accordance with 14 19 rules adopted pursuant to subsection 3. 14 20 Sec. 17. NEW SECTION. 331.424A MENTAL HEALTH, MENTAL 14 21 RETARDATION, AND DEVELOPMENTAL DISABILITIES SERVICES FUND. 14 22 1. For the purposes of this chapter, unless the context 14 23 otherwise requires, "services fund" means the county mental 14 24 health, mental retardation, and developmental disabilities 14 25 services fund created in subsection 2. 14 26 2. For the fiscal year beginning July 1, 1996, and 14 27 succeeding fiscal years, county revenues from taxes and other 14 28 sources designated for mental health, mental retardation, and 14 29 developmental disabilities services shall be credited to the 14 30 mental health, mental retardation, and developmental 14 31 disabilities services fund of the county. The board shall 14 32 make appropriations from the fund for payment of services 14 33 provided under the county management plan approved pursuant to 14 34 section 331.439. 14 35 3. For the fiscal year beginning July 1, 1996, and 15 1 succeeding fiscal years, receipts from the state or federal 15 2 government for such services shall be credited to the services 15 3 fund, including but not limited to moneys received by a county 15 4 under section 331.438A. 15 5 4. For the fiscal year beginning July 1, 1996, and for 15 6 each subsequent fiscal year, the county may certify a levy for 15 7 payment of services. Unless otherwise provided by state law, 15 8 for each fiscal year, county revenues from taxes imposed by 15 9 the county credited to the services fund shall not exceed an 15 10 amount equal to the amount of base year expenditures from 15 11 property taxes imposed by the county and paid for services in 15 12 the fiscal year beginning July 1, 1993, and ending June 30, 15 13 1994, as defined in section 331.438, less the amount of 15 14 property tax relief to be received pursuant to section 15 15 331.438A in the fiscal year for which the budget is certified. 15 16 The county auditor and the board of supervisors shall reduce 15 17 the amount of the levy certified under this section by the 15 18 amount of property tax relief to be received. 15 19 5. Appropriations specifically authorized to be made from 15 20 the mental health, mental retardation, and developmental 15 21 disabilities services fund shall not be made from the general 15 22 fund of the county. 15 23 Sec. 18. Section 444.25A, subsection 1, Code 1995, is 15 24 amended to read as follows: 15 25 1. COUNTY LIMITATION. The maximum amount of property tax 15 26 dollars which may be certified by a county for taxes payable 15 27 in the fiscal year beginning July 1, 1995, shall not exceed 15 28 the amount of property tax dollars certified by the county for 15 29 taxes payable in the fiscal year beginning July 1, 1994, minus 15 30 the amount of the property tax relief payment to be received 15 31 by the county for the fiscal year beginning July 1, 1995, 15 32 pursuant to section 331.438A, subsection 2, and the maximum 15 33 amount of property tax dollars which may be certified by a 15 34 county for taxes payable in the fiscal year beginning July 1, 15 35 1996, shall not exceed the amount of property tax dollars 16 1 certified by the county for taxes payable in the fiscal year 16 2 beginning July 1, 1995, minus the amount by which the property 16 3 tax relief payment to be received by the county in the fiscal 16 4 year beginning July 1, 1996, exceeds the amount of the 16 5 property tax relief payment received in the fiscal year 16 6 beginning July 1, 1995, pursuant to section 331.438A, 16 7 subsection 2, for each of the levies for the following, except 16 8 for the levies on the increase in taxable valuation due to new 16 9 construction, additions or improvements to existing 16 10 structures, remodeling of existing structures for which a 16 11 building permit is required, annexation, and phasing out of 16 12 tax exemptions, and on the increase in valuation of taxable 16 13 property as a result of a comprehensive revaluation by a 16 14 private appraiser under a contract entered into prior to 16 15 January 1, 1992, or as a result of a comprehensive revaluation 16 16 directed or authorized by the conference board prior to 16 17 January 1, 1992, with documentation of the contract, 16 18 authorization, or directive on the revaluation provided to the 16 19 director of revenue and finance, if the levies are equal to or 16 20 less than the levies for the previous year, levies on that 16 21 portion of the taxable property located in an urban renewal 16 22 project the tax revenues from which are no longer divided as 16 23 provided in section 403.19, subsection 2, or as otherwise 16 24 provided in this section: 16 25 a. General county services under section 331.422, 16 26 subsection 1. 16 27 b. Rural county services under section 331.422, subsection 16 28 2. 16 29 c. Other taxes under section 331.422, subsection 4. 16 30 Sec. 19. Section 444.25A, subsection 3, paragraph b, 16 31 subparagraph (3), Code 1995, is amended to read as follows: 16 32 (3) Need for additional moneys for health care, treatment, 16 33 and facilities, includingmental health and mental retardation16 34care andtreatment pursuant to section 331.424, subsection 1, 16 35 paragraphs "a"through "h"and "b". 17 1 Sec. 20. NEW SECTION. 444.25B PROPERTY TAX LIMITATIONS 17 2 FOR 1998 AND 1999 FISCAL YEARS. 17 3 1. COUNTY LIMITATION. The maximum amount of property tax 17 4 dollars which may be certified by a county for taxes payable 17 5 in the fiscal year beginning July 1, 1997, shall not exceed 17 6 the amount of property tax dollars certified by the county for 17 7 taxes payable in the fiscal year beginning July 1, 1996, minus 17 8 the amount by which the property tax relief payment to be 17 9 received by the county in the fiscal year beginning July 1, 17 10 1997, exceeds the amount of the property tax relief payment 17 11 received by the county in the fiscal year beginning July 1, 17 12 1996, pursuant to section 331.438A, subsection 2, and the 17 13 maximum amount of property tax dollars which may be certified 17 14 by a county for taxes payable in the fiscal year beginning 17 15 July 1, 1998, shall not exceed the amount of property tax 17 16 dollars certified by the county for taxes payable in the 17 17 fiscal year beginning July 1, 1997, minus the amount by which 17 18 the property tax relief payment to be received by the county 17 19 in the fiscal year beginning July 1, 1998, exceeds the amount 17 20 of the property tax relief payment received by the county in 17 21 the fiscal year beginning July 1, 1997, pursuant to section 17 22 331.438A, subsection 2, for each of the levies for the 17 23 following, except for the levies on the increase in taxable 17 24 valuation due to new construction, additions or improvements 17 25 to existing structures, remodeling of existing structures for 17 26 which a building permit is required, annexation, and phasing 17 27 out of tax exemptions, and on the increase in valuation of 17 28 taxable property as a result of a comprehensive revaluation by 17 29 a private appraiser under a contract entered into prior to 17 30 January 1, 1992, or as a result of a comprehensive revaluation 17 31 directed or authorized by the conference board prior to 17 32 January 1, 1992, with documentation of the contract, 17 33 authorization, or directive on the revaluation provided to the 17 34 director of revenue and finance, if the levies are equal to or 17 35 less than the levies for the previous year, levies on that 18 1 portion of the taxable property located in an urban renewal 18 2 project the tax revenues from which are no longer divided as 18 3 provided in section 403.19, subsection 2, or as otherwise 18 4 provided in this section: 18 5 a. General county services under section 331.422, 18 6 subsection 1. 18 7 b. Rural county services under section 331.422, subsection 18 8 2. 18 9 c. Other taxes under section 331.422, subsection 4. 18 10 2. EXCEPTIONS. The limitations provided in subsection 1 18 11 do not apply to the levies made for the following: 18 12 a. Debt service to be deposited into the debt service fund 18 13 pursuant to section 331.430. 18 14 b. Taxes approved by a vote of the people which are 18 15 payable during the fiscal year beginning July 1, 1997, or July 18 16 1, 1998. 18 17 c. Hospitals pursuant to chapters 37, 347, and 347A. 18 18 d. Emergency management to be deposited into the local 18 19 emergency management fund and expended for development of 18 20 hazardous substance teams pursuant to chapter 29C. 18 21 e. Unusual need for additional moneys to finance existing 18 22 programs which would provide substantial benefit to county 18 23 residents or compelling need to finance new programs which 18 24 would provide substantial benefit to county residents. The 18 25 increase in taxes levied under this exception for the fiscal 18 26 year beginning July 1, 1997, is limited to no more than the 18 27 product of the total tax dollars levied in the fiscal year 18 28 beginning July 1, 1996, and the percent change, computed to 18 29 two decimal places, in the price index for government 18 30 purchases by type for state and local governments computed for 18 31 the third quarter of calendar year 1996 from that computed for 18 32 the third quarter of calendar year 1995. The increase in 18 33 taxes levied under this exception for the fiscal year 18 34 beginning July 1, 1998, is limited to no more than the product 18 35 of the total tax dollars levied in the fiscal year beginning 19 1 July 1, 1997, and the percent change, computed to two decimal 19 2 places, in the price index for government purchases by type 19 3 for state and local governments computed for the third quarter 19 4 of calendar year 1997 from that computed for the third quarter 19 5 of calendar year 1996. 19 6 For purposes of this paragraph, the price index for 19 7 government purchases by type for state and local governments 19 8 is defined by the bureau of economic analysis of the United 19 9 States department of commerce and published in table 7.11 of 19 10 the national income and products accounts. For the fiscal 19 11 years beginning July 1, 1997, and July 1, 1998, the price 19 12 index used shall be the revision published in the November 19 13 1996 and November 1997 issues, respectively, of the United 19 14 States department of commerce publication, "survey of current 19 15 business". For purposes of this paragraph, tax dollars levied 19 16 in the fiscal years beginning July 1, 1996, and July 1, 1997, 19 17 shall not include funds levied for paragraphs "a", "b", and 19 18 "c" of this subsection. 19 19 Application of this exception shall require an original 19 20 publication of the budget and a public hearing and a second 19 21 publication and a second hearing both in the manner and form 19 22 prescribed by the director of the department of management, 19 23 notwithstanding the provisions of section 331.434. The 19 24 publications and hearings prescribed in this paragraph shall 19 25 be held and the budget certified no later than March 15. The 19 26 taxes levied for counties whose budgets are certified after 19 27 March 15, 1997, shall be frozen at the fiscal year beginning 19 28 July 1, 1996, level, and the taxes levied for counties whose 19 29 budgets are certified after March 15, 1998, shall be frozen at 19 30 the fiscal year beginning July 1, 1997, level. 19 31 3. APPEAL PROCEDURES. In lieu of the procedures in 19 32 sections 24.48 and 331.426, which procedures do not apply for 19 33 taxes payable in the fiscal years beginning July 1, 1997, and 19 34 July 1, 1998, if a county needs to raise property tax dollars 19 35 from a tax levy in excess of the limitations imposed by 20 1 subsection 1, the following procedures apply: 20 2 a. Not later than March 1, and after the publication and 20 3 public hearing on the budget in the manner and form prescribed 20 4 by the director of the department of management, 20 5 notwithstanding section 331.434, the county shall petition the 20 6 state appeal board for approval of a property tax increase in 20 7 excess of the increase provided for in subsection 2, paragraph 20 8 "e", on forms furnished by the director of the department of 20 9 management. Applications received after March 1 shall be 20 10 automatically ineligible for consideration by the board. 20 11 b. Additional costs incurred by the county due to any of 20 12 the following circumstances shall be the basis for justifying 20 13 the excess in property tax dollars: 20 14 (1) Natural disaster or other life-threatening 20 15 emergencies. 20 16 (2) Unusual need for additional moneys to finance existing 20 17 programs which would provide substantial benefit to county 20 18 residents or compelling need to finance new programs which 20 19 would provide substantial benefit to county residents. 20 20 (3) Need for additional moneys for health care, treatment, 20 21 and facilities pursuant to section 331.424, subsection 1, 20 22 paragraphs "a" and "b". 20 23 (4) Judgments, settlements, and related costs arising out 20 24 of civil claims against the county and its officers, 20 25 employees, and agents, as defined in chapter 670. 20 26 c. The state appeal board shall approve, disapprove, or 20 27 reduce the amount of excess property tax dollars requested. 20 28 The board shall take into account the intent of this section 20 29 to provide property tax relief. The decision of the board 20 30 shall be rendered at a regular or special meeting of the board 20 31 within twenty days of the board's receipt of an appeal. 20 32 d. Within seven days of receipt of the decision of the 20 33 state appeal board, the county shall adopt and certify its 20 34 budget under section 331.434, which budget may be protested as 20 35 provided in section 331.436. The budget shall not contain an 21 1 amount of property tax dollars in excess of the amount 21 2 approved by the state appeal board. 21 3 4. Rate adjustment by county auditor. In addition to the 21 4 requirement of the county auditor in section 444.3 to 21 5 establish a rate of tax which does not exceed the rate 21 6 authorized by law, the county auditor shall also adjust the 21 7 rate if the amount of property tax dollars to be raised is in 21 8 excess of the amount specified in subsection 1, as may be 21 9 adjusted pursuant to subsection 3. 21 10 Sec. 21. NEW SECTION. 444.25C PROPERTY TAX LIMITATION 21 11 FOR FISCAL YEAR 2000. 21 12 1. COUNTY LIMITATION. The maximum amount of property tax 21 13 dollars which may be certified by a county for taxes payable 21 14 in the fiscal year beginning July 1, 1999, shall not exceed 21 15 the amount of property tax dollars certified by the county for 21 16 taxes payable in the fiscal year beginning July 1, 1998, minus 21 17 the difference between the amount by which the property tax 21 18 relief payment to be received by the county in the fiscal year 21 19 beginning July 1, 1999, exceeds the amount of the property tax 21 20 relief payment received by the county in the fiscal year 21 21 beginning July 1, 1998, pursuant to section 331.438A, 21 22 subsection 2, for each of the levies for the following, except 21 23 for the levies on the increase in taxable valuation due to new 21 24 construction, additions or improvements to existing 21 25 structures, remodeling of existing structures for which a 21 26 building permit is required, annexation, and phasing out of 21 27 tax exemptions, and on the increase in valuation of taxable 21 28 property as a result of a comprehensive revaluation by a 21 29 private appraiser under a contract entered into prior to 21 30 January 1, 1992, or as a result of a comprehensive revaluation 21 31 directed or authorized by the conference board prior to 21 32 January 1, 1992, with documentation of the contract, 21 33 authorization, or directive on the revaluation provided to the 21 34 director of revenue and finance, if the levies are equal to or 21 35 less than the levies for the previous year, levies on that 22 1 portion of the taxable property located in an urban renewal 22 2 project the tax revenues from which are no longer divided as 22 3 provided in section 403.19, subsection 2, or as otherwise 22 4 provided in this section: 22 5 a. General county services under section 331.422, 22 6 subsection 1. 22 7 b. Rural county services under section 331.422, subsection 22 8 2. 22 9 c. Other taxes under section 331.422, subsection 4. 22 10 2. EXCEPTIONS. The limitations provided in subsection 1 22 11 do not apply to the levies made for the following: 22 12 a. Debt service to be deposited into the debt service fund 22 13 pursuant to section 331.430. 22 14 b. Taxes approved by a vote of the people which are 22 15 payable during the fiscal year beginning July 1, 1999, or July 22 16 1, 2000. 22 17 c. Hospitals pursuant to chapters 37, 347, and 347A. 22 18 d. Emergency management to be deposited into the local 22 19 emergency management fund and expended for development of 22 20 hazardous substance teams pursuant to chapter 29C. 22 21 e. Unusual need for additional moneys to finance existing 22 22 programs which would provide substantial benefit to county 22 23 residents or compelling need to finance new programs which 22 24 would provide substantial benefit to county residents. The 22 25 increase in taxes levied under this exception for the fiscal 22 26 year beginning July 1, 1999, is limited to no more than the 22 27 product of the total tax dollars levied in the fiscal year 22 28 beginning July 1, 1998, and the percent change, computed to 22 29 two decimal places, in the price index for government 22 30 purchases by type for state and local governments computed for 22 31 the third quarter of calendar year 1998 from that computed for 22 32 the third quarter of calendar year 1997. 22 33 For purposes of this paragraph, the price index for 22 34 government purchases by type for state and local governments 22 35 is defined by the bureau of economic analysis of the United 23 1 States department of commerce and published in table 7.11 of 23 2 the national income and products accounts. For the fiscal 23 3 year beginning July 1, 1999, the price index used shall be the 23 4 revision published in the November 1998 of the United States 23 5 department of commerce publication, "survey of current 23 6 business". For purposes of this paragraph, tax dollars levied 23 7 in the fiscal year beginning July 1, 1998, shall not include 23 8 funds levied for paragraphs "a", "b", and "c" of this 23 9 subsection. 23 10 Application of this exception shall require an original 23 11 publication of the budget and a public hearing and a second 23 12 publication and a second hearing both in the manner and form 23 13 prescribed by the director of the department of management, 23 14 notwithstanding the provisions of section 331.434. The 23 15 publications and hearings prescribed in this paragraph shall 23 16 be held and the budget certified no later than March 15. The 23 17 taxes levied for counties whose budgets are certified after 23 18 March 15, 1999, shall be frozen at the fiscal year beginning 23 19 July 1, 1998, level. 23 20 3. APPEAL PROCEDURES. In lieu of the procedures in 23 21 sections 24.48 and 331.426, which procedures do not apply for 23 22 taxes payable in the fiscal year beginning July 1, 1999, if a 23 23 county needs to raise property tax dollars from a tax levy in 23 24 excess of the limitations imposed by subsection 1, the 23 25 following procedures apply: 23 26 a. Not later than March 1, and after the publication and 23 27 public hearing on the budget in the manner and form prescribed 23 28 by the director of the department of management, 23 29 notwithstanding section 331.434, the county shall petition the 23 30 state appeal board for approval of a property tax increase in 23 31 excess of the increase provided for in subsection 2, paragraph 23 32 "e", on forms furnished by the director of the department of 23 33 management. Applications received after March 1 shall be 23 34 automatically ineligible for consideration by the board. 23 35 b. Additional costs incurred by the county due to any of 24 1 the following circumstances shall be the basis for justifying 24 2 the excess in property tax dollars: 24 3 (1) Natural disaster or other life-threatening 24 4 emergencies. 24 5 (2) Unusual need for additional moneys to finance existing 24 6 programs which would provide substantial benefit to county 24 7 residents or compelling need to finance new programs which 24 8 would provide substantial benefit to county residents. 24 9 (3) Need for additional moneys for health care, treatment, 24 10 and facilities pursuant to section 331.424, subsection 1, 24 11 paragraphs "a" and "b". 24 12 (4) Judgments, settlements, and related costs arising out 24 13 of civil claims against the county and its officers, 24 14 employees, and agents, as defined in chapter 670. 24 15 c. The state appeal board shall approve, disapprove, or 24 16 reduce the amount of excess property tax dollars requested. 24 17 The board shall take into account the intent of this section 24 18 to provide property tax relief. The decision of the board 24 19 shall be rendered at a regular or special meeting of the board 24 20 within twenty days of the board's receipt of an appeal. 24 21 d. Within seven days of receipt of the decision of the 24 22 state appeal board, the county shall adopt and certify its 24 23 budget under section 331.434, which budget may be protested as 24 24 provided in section 331.436. The budget shall not contain an 24 25 amount of property tax dollars in excess of the amount 24 26 approved by the state appeal board. 24 27 4. Rate adjustment by county auditor. In addition to the 24 28 requirement of the county auditor in section 444.3 to 24 29 establish a rate of tax which does not exceed the rate 24 30 authorized by law, the county auditor shall also adjust the 24 31 rate if the amount of property tax dollars to be raised is in 24 32 excess of the amount specified in subsection 1, as may be 24 33 adjusted pursuant to subsection 3. 24 34 Sec. 22. Section 444.27, Code 1995, is amended to read as 24 35 follows: 25 1 444.27 SECTIONS VOID. 25 2 1. For purposes of section 444.25, sections 24.48 and 25 3 331.426 are void for the fiscal years beginning July 1, 1993, 25 4 and July 1, 1994. For purposes of section 444.25A, sections 25 5 24.48 and 331.426 are void for the fiscal years beginning July 25 6 1, 1995, and July 1, 1996. 25 7 2. For purposes of sections 444.25B and 444.25C, sections 25 8 24.48 and 331.426 are void for the fiscal years beginning July 25 9 1, 1997, July 1, 1998, and July 1, 1999. 25 10 Sec. 23. Section 445.23, Code 1995, is amended to read as 25 11 follows: 25 12 445.23 STATEMENT OF TAXES DUE. 25 13 1.Upon request, theThe county treasurer shall state in 25 14 writing the full amount of taxes against a parcel, all sales 25 15 for unpaid taxes, and the amount needed to redeem the parcel, 25 16 if redeemable. If the person requesting the statement is not 25 17 the titleholder of record or contract holder of record of the 25 18 parcel, that person shall pay a fee at the rate of two dollars 25 19 per parcel for each year for which information is requested, 25 20 and the money shall be deposited in the county general fund. 25 21 2. The county treasurer shall include in a prominent place 25 22 on the tax statement the amount of each of the following state 25 23 tax credits that apply to the parcel and amount by which each 25 24 credit reduced the taxes due on the parcel: 25 25 a. Homestead credit under chapter 425. 25 26 b. Military service credit under chapter 426A. 25 27 c. Extraordinary credit under chapter 425. 25 28 d. Mental health, mental retardation, and developmental 25 29 disabilities property tax relief under section 331.438A. 25 30 e. Farm tax credit under chapter 426. 25 31 Sec. 24. REPEAL. 1994 Iowa Acts, chapter 1163, section 8, 25 32 is repealed. 25 33 Sec. 25. DEPARTMENT OF HUMAN SERVICES &endash; ICFMR 25 34 REQUIREMENT. The department of human services shall consult 25 35 with the department of inspections and appeals, the Iowa state 26 1 association of counties, and the Iowa association of 26 2 rehabilitation and residential facilities in adopting 26 3 administrative rules identifying optimum staffing ratios for 26 4 intermediate care facilities for the mentally retarded 26 5 (ICFMR). The administrative rules shall be implemented on or 26 6 before January 1, 1996. 26 7 Sec. 26. INTERIM COMMITTEE CREATED. The legislative 26 8 council is requested to establish an interim committee 26 9 comprised of members of the general assembly with the charge 26 10 of developing a system to regulate and contain county 26 11 expenditures for mental health, mental retardation, and 26 12 developmental disabilities services and to develop a formula 26 13 for distribution of property tax relief moneys to counties 26 14 under section 331.438A, subsection 2. In addition, the 26 15 committee should consider proposals from counties and other 26 16 interested persons for a distribution formula factor which 26 17 rewards or provides incentives for economy and efficiency in 26 18 providing mental health, mental retardation, and developmental 26 19 disabilities services; and a mechanism for a county to appeal 26 20 to the state if it is believed the county is unfairly treated 26 21 under an established funding formula. The committee should be 26 22 directed to report to the governor and the general assembly 26 23 prior to the 1996 legislative session. 26 24 Sec. 27. FUNDING OF SESSION LAW REQUIREMENTS. If section 3 26 25 of this division of this Act is enacted on or before March 31, 26 26 1995, the requirements of 1994 Iowa Acts, chapter 1163, 26 27 section 8, subsection 1, to enact an appropriation to fully 26 28 fund the provisions of section 249A.12, subsection 4, shall be 26 29 considered to be met and the repeals contained in 1994 Iowa 26 30 Acts, chapter 1163, section 8, subsection 1, shall be void. 26 31 Sec. 28. EFFECTIVE DATES. 26 32 1. Sections 3, 4, 5, 6, and 7 of this division of this Act 26 33 take effect July 1, 1996. 26 34 2. Sections 8, 9, 10, 17, and 19 of this division of this 26 35 Act take effect January 1, 1996, and are applicable to taxes 27 1 paid in the fiscal year beginning July 1, 1996, and succeeding 27 2 fiscal years. 27 3 3. The remainder of this division of this Act, being 27 4 deemed of immediate importance, takes effect upon enactment. 27 5 DIVISION II 27 6 SUBCHAPTER S CORPORATIONS 27 7 Sec. 29. Section 422.5, subsection 1, paragraph j, Code 27 8 1995, is amended by adding the following new unnumbered 27 9 paragraph: 27 10 NEW UNNUMBERED PARAGRAPH. The tax imposed upon the taxable 27 11 income of a resident shareholder in a corporation which has in 27 12 effect for the tax year an election under subchapter S of the 27 13 Internal Revenue Code and carries on business within and 27 14 without the state shall be computed by reducing the amount 27 15 determined pursuant to paragraphs "a" through "i" by the 27 16 amounts of nonrefundable credits under this division and by 27 17 multiplying this resulting amount by a fraction of which the 27 18 resident's net income allocated to Iowa, as determined in 27 19 section 422.8, subsection 2, paragraph "b", is the numerator 27 20 and the resident's total net income computed under section 27 21 422.7 is the denominator. This paragraph also applies to 27 22 individuals who are residents of Iowa for less than the entire 27 23 tax year. 27 24 Sec. 30. Section 422.5, subsection 1, paragraph k, 27 25 unnumbered paragraph 4, Code 1995, is amended to read as 27 26 follows: 27 27 In the case of a resident, including a resident estate or 27 28 trust, the state's apportioned share of the state alternative 27 29 minimum tax is one hundred percent of the state alternative 27 30 minimum tax computed in this subsection. In the case of a 27 31 resident or part year resident shareholder in a corporation 27 32 which has in effect for the tax year an election under 27 33 subchapter S of the Internal Revenue Code and carries on 27 34 business within and without the state, a nonresident, 27 35 including a nonresident estate or trust, or an individual, 28 1 estate, or trust that is domiciled in the state for less than 28 2 the entire tax year, the state's apportioned share of the 28 3 state alternative minimum tax is the amount of tax computed 28 4 under this subsection, reduced by the applicable credits in 28 5 sections 422.10 through 422.12 and this result multiplied by a 28 6 fraction with a numerator of the sum of state net income 28 7 allocated to Iowa as determined in section 422.8, subsection 28 8 2, paragraph "a" or "b" as applicable, plus tax preference 28 9 items, adjustments, and losses under subparagraph (1) 28 10 attributable to Iowa and with a denominator of the sum of 28 11 total net income computed under section 422.7 plus all tax 28 12 preference items, adjustments, and losses under subparagraph 28 13 (1). In computing this fraction, those items excludable under 28 14 subparagraph (1) shall not be used in computing the tax 28 15 preference items. Married taxpayers electing to file separate 28 16 returns or separately on a combined return must allocate the 28 17 minimum tax computed in this subsection in the proportion that 28 18 each spouse's respective preference items, adjustments, and 28 19 losses under subparagraph (1) bear to the combined preference 28 20 items, adjustments, and losses under subparagraph (1) of both 28 21 spouses. 28 22 Sec. 31. Section 422.8, subsection 2, Code 1995, is 28 23 amended to read as follows: 28 24 2. a. Nonresident's net income allocated to Iowa is the 28 25 net income, or portion thereof, which is derived from a 28 26 business, trade, profession, or occupation carried on within 28 27 this state or income from any property, trust, estate, or 28 28 other source within Iowa. However, income derived from a 28 29 business, trade, profession, or occupation carried on within 28 30 this state and income from any property, trust, estate, or 28 31 other source within Iowa shall not include distributions from 28 32 pensions, including defined benefit or defined contribution 28 33 plans, annuities, individual retirement accounts, and deferred 28 34 compensation plans or any earnings attributable thereto so 28 35 long as the distribution is directly related to an 29 1 individual's documented retirement and received while the 29 2 individual is a nonresident of this state. If a business, 29 3 trade, profession, or occupation is carried on partly within 29 4 and partly without the state, only the portion of the net 29 5 income which is fairly and equitably attributable to that part 29 6 of the business, trade, profession, or occupation carried on 29 7 within the state is allocated to Iowa for purposes of section 29 8 422.5, subsection 1, paragraph "j", and section 422.13 and 29 9 income from any property, trust, estate, or other source 29 10 partly within and partly without the state is allocated to 29 11 Iowa in the same manner, except that annuities, interest on 29 12 bank deposits and interest-bearing obligations, and dividends 29 13 are allocated to Iowa only to the extent to which they are 29 14 derived from a business, trade, profession, or occupation 29 15 carried on within the state. 29 16 b. A resident's income allocable to Iowa is the income 29 17 determined under section 422.7 reduced by items of income and 29 18 expenses from a subchapter S corporation which pass directly 29 19 to the shareholders under provisions of the Internal Revenue 29 20 Code and increased by the greater of the following: 29 21 (1) The net income or loss of the corporation which is 29 22 fairly and equitably attributable to this state under section 29 23 422.33, subsections 2 and 3. 29 24 (2) The taxpayer's pro rata share of an amount deemed 29 25 distributed to shareholders which when added to the salaries, 29 26 wages, or other compensation for services performed by all 29 27 shareholders will equal ten percent of the net income of the 29 28 corporation computed in accordance with section 422.35 and 29 29 considering items of income and expense which pass directly to 29 30 the shareholders under provisions of the Internal Revenue Code 29 31 before deduction of shareholder's salaries, wages, or other 29 32 compensation for services performed. 29 33 (3) Any cash or the value of any property distributions 29 34 made to the extent they are paid from income upon which Iowa 29 35 income tax has not been paid as determined under rules of the 30 1 director. 30 2 Sec. 32. Section 422.8, Code 1995, is amended by adding 30 3 the following new subsection: 30 4 NEW SUBSECTION. 6. If the resident or part year resident 30 5 is a shareholder of a corporation which has in effect an 30 6 election under subchapter S of the Internal Revenue Code, 30 7 subsections 1 and 3 do not apply to any income taxes paid to 30 8 another state or foreign country on the income from the 30 9 corporation which has in effect an election under subchapter S 30 10 of the Internal Revenue Code. 30 11 Sec. 33. This division of this Act, being deemed of 30 12 immediate importance, takes effect upon enactment and applies 30 13 retroactively to January 1, 1995, for tax years beginning on 30 14 or after that date. 30 15 DIVISION III 30 16 MACHINERY AND EQUIPMENT 30 17 EXEMPTION AND REPLACEMENT FUNDS 30 18 Sec. 34. Section 427B.17, Code 1995, is amended by 30 19 striking the section and inserting in lieu thereof the 30 20 following: 30 21 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 30 22 1. Property defined in section 427A.1, subsection 1, 30 23 paragraphs "e" and "j", shall be valued by the local assessor 30 24 as follows: 30 25 a. For the assessment year beginning January 1, 1995, at 30 26 twenty-six percent of the net acquisition cost. 30 27 b. For the assessment year beginning January 1, 1996, at 30 28 twenty-two percent of the net acquisition cost. 30 29 c. For the assessment year beginning January 1, 1997, at 30 30 eighteen percent of the net acquisition cost. 30 31 d. For the assessment year beginning January 1, 1998, at 30 32 fourteen percent of the net acquisition cost. 30 33 e. For the assessment year beginning January 1, 1999, at 30 34 ten percent of the net acquisition cost. 30 35 f. For the assessment year beginning January 1, 2000, at 31 1 six percent of the net acquisition cost. 31 2 g. For the assessment year beginning January 1, 2001, and 31 3 all subsequent assessment years, at zero percent of the net 31 4 acquisition cost. 31 5 2. For purposes of this section: 31 6 a. Property assessed by the department of revenue and 31 7 finance pursuant to sections 428.24 to 428.29, or chapters 31 8 433, 434, and 436 to 438 shall not receive the benefits of 31 9 this section. 31 10 Any electric power generating plant which operated during 31 11 the preceding assessment year at a net capacity factor of more 31 12 than twenty percent, shall not receive the benefits of this 31 13 section. For purposes of this section, "electric power 31 14 generating plant" means any name plate rated electric power 31 15 generating plant, in which electric energy is produced from 31 16 other forms of energy, including all taxable land, buildings, 31 17 and equipment used in the production of such energy. "Net 31 18 capacity factor" means net actual generation divided by the 31 19 product of net maximum capacity times the number of hours the 31 20 unit was in the active state during the assessment year. Upon 31 21 commissioning, a unit is in the active state until it is de- 31 22 commissioned. "Net actual generation" means net electrical 31 23 megawatt hours produced by the unit during the preceding 31 24 assessment year. "Net maximum capacity" means the capacity 31 25 the unit can sustain over a specified period when not 31 26 restricted by ambient conditions or equipment deratings, minus 31 27 the losses associated with station service or auxiliary loads. 31 28 b. The net acquisition cost of property acquired before 31 29 January 1, 1995, which was owned or used by a related person 31 30 shall be the net acquisition cost of the transferor of the 31 31 property. 31 32 c. "Related person" means a person who owns or controls 31 33 the taxpayer's business and another business entity from which 31 34 property is acquired or leased or to which property is sold or 31 35 leased. Business entities are owned or controlled by the same 32 1 person if the same person directly or indirectly owns or 32 2 controls fifty percent or more of the assets or any class of 32 3 stock or who directly or indirectly has an interest of fifty 32 4 percent or more in the ownership or profits. 32 5 d. "Net acquisition cost" means the acquired cost of the 32 6 property, including all foundations and installation cost less 32 7 any excess cost adjustment. 32 8 3. Property assessed pursuant to this section shall not be 32 9 eligible to receive a partial exemption under sections 427B.1 32 10 to 427B.6. 32 11 4. The taxpayer's valuation of property defined in section 32 12 427A.1, subsection 1, paragraphs "e" and "j", and located in 32 13 an urban renewal area for which an urban renewal plan provides 32 14 for the division of taxes as provided in section 403.19 to pay 32 15 the principal and interest on loans, advances, bonds issued 32 16 under the authority of section 403.9, subsection 1, or 32 17 indebtedness incurred by a city or county to finance an urban 32 18 renewal project within the urban renewal area, if such loans, 32 19 advances, or bonds were issued or indebtedness incurred, on or 32 20 after January 1, 1982, and on or before June 30, 1995, shall 32 21 be limited to thirty percent of the net acquisition cost of 32 22 the property. Such property located in an urban renewal area 32 23 shall not be valued pursuant to subsection 1 until the 32 24 assessment year following the calendar year in which the 32 25 obligations created by any loans, advances, bonds, or 32 26 indebtedness payable from the division of taxes as provided in 32 27 section 403.19 have been retired. The taxpayer's valuation 32 28 for such property shall then be the valuation specified in 32 29 subsection 1 for the applicable assessment year. If the 32 30 loans, advances, or bonds issued, or indebtedness incurred 32 31 between January 1, 1982, and June 30, 1995, are refinanced or 32 32 refunded after June 30, 1995, the valuation of such property 32 33 shall then be the valuation specified in subsection 1 for the 32 34 applicable assessment year beginning with the assessment year 32 35 following the calendar year in which any of those loans, 33 1 advances, bonds, or other indebtedness are refinanced or 33 2 refunded after June 30, 1995. 33 3 5. For the purpose of dividing taxes under section 260E.4 33 4 or 260F.4, the employer's or business's valuation of property 33 5 defined in section 427A.1, subsection 1, paragraphs "e" and 33 6 "j", and used to fund a new jobs training project which 33 7 project's first written agreement providing for a division of 33 8 taxes as provided in section 403.19, is approved on or before 33 9 June 30, 1995, shall be limited to thirty percent of the net 33 10 acquisition cost of the property. An employer's or business's 33 11 taxable property used to fund a new jobs training project 33 12 shall not be valued pursuant to subsection 1 until the 33 13 assessment year following the calendar year in which the 33 14 certificates or other funding obligations have been retired or 33 15 escrowed. The taxpayer's valuation for such property shall 33 16 then be the valuation specified in subsection 1 for the 33 17 applicable assessment year. If the certificates issued, or 33 18 other funding obligations incurred, between January 1, 1982, 33 19 and June 30, 1995, are refinanced or refunded after June 30, 33 20 1995, the valuation of such property shall then be the 33 21 valuation specified in subsection 1 for the applicable 33 22 assessment year beginning with the assessment year following 33 23 the calendar year in which those certificates or other funding 33 24 obligations are refinanced or refunded after June 30, 1995. 33 25 Sec. 35. NEW SECTION. 427B.18 ASSESSOR AND COUNTY 33 26 AUDITOR DUTIES. 33 27 1. On or before July 1 of each year, the assessor shall 33 28 determine the taxpayer's valuation of the property specified 33 29 in section 427B.17 for that year and the valuation of the 33 30 property if the property were valued, for assessment purposes, 33 31 at thirty percent of net acquisition cost and shall report the 33 32 valuations to the county auditor. 33 33 2. On or before July 1, 1996, and on or before July 1 of 33 34 each subsequent year, the county auditor shall prepare a 33 35 statement listing for each taxing district in the county: 34 1 a. Beginning with the assessment year beginning January 1, 34 2 1995, the difference between the assessed valuation of 34 3 property defined in section 427A.1, subsection 1, paragraphs 34 4 "e" and "j", and assessed pursuant to section 427B.17 and the 34 5 valuation of the property if the property were valued, for 34 6 assessment purposes, at thirty percent of net acquisition 34 7 cost. 34 8 b. The tax levy rate for each taxing district levied 34 9 against assessments made as of January 1 of the previous year. 34 10 c. The industrial machinery, equipment and computers tax 34 11 replacement claim for each taxing district, which is equal to 34 12 the amount determined pursuant to paragraph "a", multiplied by 34 13 the tax rate specified in paragraph "b". 34 14 3. The county auditor shall certify and forward one copy 34 15 of the statement to the department of revenue and finance not 34 16 later than July 1 of each year. 34 17 Sec. 36. NEW SECTION. 427B.19 REPLACEMENT. 34 18 Each county treasurer shall be paid an amount equal to the 34 19 following percentages of the industrial machinery, equipment 34 20 and computers tax replacement claim for that county determined 34 21 pursuant to section 427B.18, subsection 2: 34 22 1. For the fiscal year beginning July 1, 1996, ninety 34 23 percent. 34 24 2. For the fiscal year beginning July 1, 1997, seventy- 34 25 five percent. 34 26 3. For the fiscal year beginning July 1, 1998, sixty 34 27 percent. 34 28 4. For the fiscal year beginning July 1, 1999, forty-five 34 29 percent. 34 30 5. For the fiscal year beginning July 1, 2000, thirty 34 31 percent. 34 32 6. For the fiscal year beginning July 1, 2001, twenty 34 33 percent. 34 34 7. For the fiscal year beginning July 1, 2002, twenty 34 35 percent. 35 1 8. For the fiscal year beginning July 1, 2003, twenty 35 2 percent. 35 3 9. For the fiscal year beginning July 1, 2004, fifteen 35 4 percent. 35 5 10. For the fiscal year beginning July 1, 2005, ten 35 6 percent. 35 7 Sec. 37. NEW SECTION. 427B.19A FUND CREATED. 35 8 1. The industrial machinery, equipment and computers 35 9 property tax replacement fund is created. There is 35 10 appropriated annually from the general fund of the state to 35 11 the department of revenue and finance to be credited to the 35 12 industrial machinery, equipment and computers property tax 35 13 replacement fund, the amounts specified in section 427B.19B. 35 14 2. Each county treasurer shall be paid from the fund 35 15 created in this section the amount calculated pursuant to 35 16 section 427B.19. The payment shall be made in two equal 35 17 installments on or before September 30 and March 30 of each 35 18 year. The county treasurer shall apportion the payment in the 35 19 manner provided in section 445.57. 35 20 3. If an amount appropriated in section 427B.19B for a 35 21 fiscal year is insufficient to pay all claims according to the 35 22 replacement schedule in section 427B.19, the director shall 35 23 prorate the disbursements from the fund to the county 35 24 treasurers and shall notify the county auditors of the pro 35 25 rata percentage on or before August 1. If an amount 35 26 appropriated in section 427B.19B for a fiscal year is in 35 27 excess of the amount necessary to pay all claims according to 35 28 the replacement schedule in section 427B.19, the director 35 29 shall prorate the disbursements from the fund to the county 35 30 treasurers, notwithstanding the amount calculated pursuant to 35 31 section 427B.19, and shall notify the county auditors of the 35 32 pro rata percentage on or before August 1. 35 33 4. The replacement amount paid to each school district 35 34 shall be regarded as property tax for the purposes of the 35 35 school foundation property tax levy in section 257.3 and the 36 1 additional property tax levy in section 257.4. The department 36 2 of management shall annually make the adjustments necessary to 36 3 implement this subsection. 36 4 Sec. 38. NEW SECTION. 427B.19B APPROPRIATION. 36 5 There is appropriated in each of the following fiscal years 36 6 from the general fund of the state to the industrial 36 7 machinery, equipment and computers property tax replacement 36 8 fund the following amounts: 36 9 1. For the fiscal year beginning July 1, 1996, eight 36 10 million, one hundred thousand dollars. 36 11 2. For the fiscal year beginning July 1, 1997, fifteen 36 12 million, two hundred thousand dollars. 36 13 3. For the fiscal year beginning July 1, 1998, twenty-one 36 14 million, one hundred thousand dollars. 36 15 4. For the fiscal year beginning July 1, 1999, twenty- 36 16 three million, four hundred thousand dollars. 36 17 5. For the fiscal year beginning July 1, 2000, twenty-one 36 18 million, one hundred thousand dollars. 36 19 6. For the fiscal year beginning July 1, 2001, eighteen 36 20 million, one hundred thousand dollars. 36 21 7. For the fiscal year beginning July 1, 2002, twenty-four 36 22 million dollars. 36 23 8. For the fiscal year beginning July 1, 2003, twenty-five 36 24 million, six hundred thousand dollars. 36 25 9. For the fiscal year beginning July 1, 2004, twenty 36 26 million, four hundred thousand dollars. 36 27 10. For the fiscal year beginning July 1, 2005, fourteen 36 28 million, five hundred thousand dollars. 36 29 Sec. 39. NEW SECTION. 427B.19C PHASEOUT OF TAX. 36 30 Effective on July 1, 2002, all property taxes on property 36 31 defined in section 427A.1, subsection 1, paragraphs "e" and 36 32 "j", are repealed. For assessment years beginning on or after 36 33 January 1, 2005, such property shall not be listed or 36 34 assessed. This section shall prevail over all inconsistent 36 35 statutes. 37 1 Sec. 40. NEW SECTION. 427B.19D GUARANTEE OF STATE 37 2 REPLACEMENT FUNDS. 37 3 If for any reason an appropriation specified in section 37 4 427B.19B is not made or the appropriation made is less than 37 5 that specified in section 427B.19B for the applicable fiscal 37 6 year, the director of revenue and finance shall compute for 37 7 each county the difference between the total of all 37 8 replacement claims for taxing districts within the county and 37 9 the amount paid to the county treasurer for disbursement to 37 10 the taxing districts in the county. The department shall 37 11 divide that difference by the consolidated tax levy rate in 37 12 each county computed for the fiscal year in which the 37 13 specified appropriation should have been made and shall 37 14 certify the amount of taxable value necessary to raise the 37 15 difference at that tax rate. The department shall notify the 37 16 local assessor of such amount of taxable value. The assessor, 37 17 for the assessment year beginning January 1 preceding the 37 18 fiscal year for which the specified appropriation was not 37 19 made, shall reassess all taxable property described in section 37 20 427B.17 in the county at a percentage of net acquisition cost 37 21 which will yield such taxable value and the property shall be 37 22 assessed and taxed in such manner for taxes due and payable in 37 23 the following fiscal year in addition to being assessed and 37 24 taxed in the applicable manner under section 427B.17. 37 25 Property tax dollar amounts certified pursuant to this section 37 26 shall not be considered property tax dollars certified for 37 27 purposes of the property tax limitation in chapter 444. 37 28 Sec. 41. NEW SECTION. 427B.19E INDUSTRIAL MACHINERY, 37 29 EQUIPMENT AND COMPUTERS RELIEF FUND. 37 30 1. The industrial machinery, equipment and computers 37 31 relief fund is created. There is appropriated annually from 37 32 the general fund of the state to the department of revenue and 37 33 finance to be credited to the relief fund, the following 37 34 amounts: 37 35 a. For the fiscal year beginning July 1, 1996, one 38 1 million, nine hundred thousand dollars. 38 2 b. For the fiscal year beginning July 1, 1997, one 38 3 million, eight hundred thousand dollars. 38 4 c. For the fiscal year beginning July 1, 1998, one 38 5 million, nine hundred thousand dollars. 38 6 Moneys in the fund at the end of a fiscal year shall not 38 7 revert to the general fund of the state, notwithstanding 38 8 section 8.33. 38 9 2. a. The purpose of the industrial machinery, equipment 38 10 and computers relief fund is to provide funds to those taxing 38 11 districts in which an increase in property tax revenue has not 38 12 been realized as a result of the elimination of the property 38 13 tax on property assessed pursuant to section 427B.17. 38 14 Beginning with the fiscal year beginning July 1, 1996, a 38 15 taxing district may apply for funds under this section by 38 16 filing an application with the director of the department of 38 17 management not later than March 1 preceding the fiscal year in 38 18 which the funds will be distributed. The state appeal board 38 19 shall approve, disapprove, or reduce the amount of funds 38 20 requested by the taxing district. 38 21 b. On forms provided by the department of management, the 38 22 taxing district shall request an amount not exceeding the 38 23 product of the decrease in assessed valuation for the fiscal 38 24 year for which the application is filed compared to the 38 25 assessed valuation in the previous fiscal year, as determined 38 26 pursuant to subsection 3, and the property tax rate applied in 38 27 the previous fiscal year, less any property tax replacement 38 28 funds received pursuant to section 427B.19A in the previous 38 29 fiscal year. The taxing district shall also submit with the 38 30 application the district's plan to improve its future budget 38 31 position. 38 32 c. Claims approved by the state appeal board shall be paid 38 33 to the taxing district by October 1 following submission of 38 34 the application for funds. 38 35 3. To be eligible to receive funds under this section, a 39 1 taxing district must show that there has been a decrease of 39 2 more than three percent in the assessed valuation for taxes 39 3 payable in the fiscal year for which the application is 39 4 submitted compared to the assessed valuation for taxes payable 39 5 in the previous fiscal year, which decrease is attributable to 39 6 the elimination of the property tax on industrial machinery, 39 7 equipment and computers pursuant to section 427B.17. The 39 8 taxing district, to be eligible for funds, must also show that 39 9 the district has exhausted all other lawful alternatives for 39 10 improving the district's budget position. 39 11 4. If the amount appropriated in this section is 39 12 insufficient to pay all applications approved, the director of 39 13 revenue and finance shall prorate the disbursements from the 39 14 relief fund and shall report the amount of the shortfall to 39 15 the director of the department of management. By January 1 of 39 16 the following year, the director of the department of 39 17 management shall submit to the general assembly a plan for the 39 18 funding of approved applications that were not fully funded in 39 19 that fiscal year. 39 20 5. Amounts received pursuant to this section shall not be 39 21 considered property tax dollars certified for purposes of the 39 22 property tax limitation in chapter 444. 39 23 6. The department of revenue and finance and the 39 24 department of management shall adopt rules necessary to 39 25 implement this section. 39 26 DIVISION IV 39 27 INCOME TAX 39 28 Sec. 42. Section 422.7, Code 1995, is amended by adding 39 29 the following new subsection: 39 30 NEW SUBSECTION. 33. For a person who is disabled, or is 39 31 fifty-five years of age or older, or is the surviving spouse 39 32 of an individual or a survivor having an insurable interest in 39 33 an individual who would have qualified for the exemption under 39 34 this subsection for the tax year, subtract, to the extent 39 35 included, the total amount of a governmental or other pension, 40 1 retirement pay, annuity, or other similar periodic payment 40 2 made under a plan maintained or contributed to by an employer, 40 3 or maintained or contributed to by a self-employed person as 40 4 an employer, up to a maximum of three thousand dollars for a 40 5 person who files a separate state income tax return, and up to 40 6 a maximum of six thousand dollars for a husband and wife who 40 7 file a joint state income tax return. However, a surviving 40 8 spouse who is not disabled or fifty-five years of age or older 40 9 can only exclude the amount of annuities or other similar 40 10 periodic payments received as a result of the death of the 40 11 other spouse. 40 12 Sec. 43. Section 422.12, subsection 1, paragraph c, Code 40 13 1995, is amended to read as follows: 40 14 c. For each dependent, an additionalfifteensixty 40 15 dollars. As used in this section, the term "dependent" has 40 16 the same meaning as provided by the Internal Revenue Code. 40 17 Sec. 44. APPLICABILITY. This division of this Act applies 40 18 retroactively to January 1, 1995, for tax years beginning on 40 19 or after that date. 40 20 DIVISION V 40 21 CASH RESERVE AND SPECIAL FUNDS 40 22 Sec. 45. Section 8.56, subsection 1, Code 1995, is amended 40 23 to read as follows: 40 24 1. A cash reserve fund is created in the state treasury. 40 25 The cash reserve fund shall be separate from the general fund 40 26 of the state and shall not be considered part of the general 40 27 fund of the state except in determining the cash position of 40 28 the state as provided in subsection 3. The moneys in the cash 40 29 reserve fund are not subject to section 8.33 and shall not be 40 30 transferred, used, obligated, appropriated, or otherwise 40 31 encumbered except as provided in this section. 40 32 Notwithstanding section 12C.7, subsection 2, interest or 40 33 earnings on moneys deposited in the cash reserve fund shall be 40 34 credited to the rebuild Iowaeconomic emergency fund40 35 infrastructure fund created in section 8.57. Moneys in the 41 1 cash reserve fund may be used for cash flow purposes provided 41 2 that any moneys so allocated are returned to the cash reserve 41 3 fund by the end of each fiscal year. However, the fund shall 41 4 be considered a special account for the purposes of section 41 5 8.53. 41 6 Sec. 46. Section 8.56, subsection 4, paragraph b, Code 41 7 1995, is amended to read as follows: 41 8 b. In addition to the requirements of paragraph "a", an 41 9 appropriation shall not be made from the cash reserve fund 41 10which would cause the fund's balance to be less than three41 11percent of the adjusted revenue estimate for the year for41 12which the appropriation is madeunless the bill or joint 41 13 resolution making the appropriation is approved by vote of at 41 14 least three-fifths of the members of both chambers of the 41 15 general assembly and is signed by the governor. 41 16 Sec. 47. Section 8.57, subsection 1, paragraph a, Code 41 17 1995, is amended by striking the paragraph and inserting in 41 18 lieu thereof the following: 41 19 a. The cash reserve goal percentage for fiscal years 41 20 beginning on or after July 1, 1995, is five percent of the 41 21 adjusted revenue estimate. For each fiscal year beginning on 41 22 or after July 1, 1995, in which the appropriation of the 41 23 surplus existing in the general fund of the state at the 41 24 conclusion of the prior fiscal year pursuant to paragraph "b" 41 25 was not sufficient for the cash reserve fund to reach the cash 41 26 reserve goal percentage for the current fiscal year, there is 41 27 appropriated from the general fund of the state an amount to 41 28 be determined as follows: 41 29 (1) If the balance of the cash reserve fund in the current 41 30 fiscal year is not more than four percent of the adjusted 41 31 revenue estimate for the current fiscal year, the amount of 41 32 the appropriation under this lettered paragraph is one percent 41 33 of the adjusted revenue estimate for the current fiscal year. 41 34 (2) If the balance of the cash reserve fund in the current 41 35 fiscal year is more than four percent but less than five 42 1 percent of the adjusted revenue estimate for that fiscal year, 42 2 the amount of the appropriation under this lettered paragraph 42 3 is the amount necessary for the cash reserve fund to reach 42 4 five percent of the adjusted revenue estimate for the current 42 5 fiscal year. 42 6 (3) The moneys appropriated under this lettered paragraph 42 7 shall be credited in equal and proportionate amounts in each 42 8 quarter of the current fiscal year. 42 9 Sec. 48. Section 8.57, subsection 1, paragraph b, Code 42 10 1995, is amended to read as follows: 42 11 b.Commencing June 30, 1993, theThe surplus existing in 42 12 the general fund of the state at the conclusion of the fiscal 42 13 year is appropriated for distribution in the succeeding fiscal 42 14 year as provided inthis sectionsubsections 2 and 3. Moneys 42 15 credited to the cash reserve fund from the appropriation made 42 16 in this paragraph shall not exceed the amount necessary for 42 17 the cash reserve fund to reach the cash reserve goal 42 18 percentage for the succeeding fiscal year. As used in this 42 19 paragraph, "surplus" means the excess of revenues and other 42 20 financing sources over expenditures and other financing uses 42 21 for the general fund of the state in a fiscal year. 42 22 Sec. 49. Section 8.57, subsection 5, Code 1995, is amended 42 23 to read as follows: 42 24 5. a. A rebuild Iowa infrastructureaccountfund is 42 25 created under the authority of the department of management. 42 26MoneysThe fund shall consist of appropriations made to the 42 27 fund and transfers of interest, earnings, and moneys from 42 28 other funds as provided by law. The fund shall be separate 42 29 from the general fund of the state and the balance in the fund 42 30 shall not be considered part of the balance of the general 42 31 fund of the state. However, the fund shall be considered a 42 32 special account for the purposes of section 8.53, relating to 42 33 generally accepted accounting principles. 42 34 b. Notwithstanding section 8.33, moneys in the 42 35 infrastructure fund which remain unencumbered or unobligated 43 1 at the end of a fiscal year shall not revert to any fund but 43 2 shall remain available for infrastructure expenditures in the 43 3 succeeding fiscal year. Notwithstanding section 12C.7, 43 4 subsection 2, interest or earnings on moneys in the 43 5 infrastructure fund shall be credited to the infrastructure 43 6 fund. 43 7 c. Moneys in theaccountfund in a fiscal year shall be 43 8 used as directed by the general assembly for public 43 9 infrastructure-related expenditures. 43 10 d. The general assembly may provide that all or part of 43 11 the moneys deposited in the GAAP deficit reduction account 43 12 created in this section shall be transferred to the 43 13 infrastructureaccountfund in lieu of appropriation of the 43 14 moneys to the Iowa economic emergency fund. 43 15 Sec. 50. TRANSFER TO INFRASTRUCTURE FUND. Moneys in the 43 16 Iowa economic emergency fund, created in section 8.55, at the 43 17 conclusion of the fiscal year beginning July 1, 1994, shall be 43 18 transferred to the rebuild Iowa infrastructure account. 43 19 Sec. 51. EFFECTIVE DATE. This division of this Act, being 43 20 deemed of immediate importance, takes effect upon enactment. 43 21 HF 336 43 22 jp/pk/25
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