Text: S03360 Text: S03362 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the House amendment, S-3082, to Senate File 1 2 69, as passed by the Senate, as follows: 1 3 #1. By striking page 1, line 3, through page 44, 1 4 line 25, and inserting the following: 1 5 "# . By striking everything after the enacting 1 6 clause and inserting the following: 1 7 "DIVISION I 1 8 MENTAL HEALTH EXPENDITURES, PROPERTY TAX REDUCTIONS, 1 9 AND PROPERTY TAX CREDITS 1 10 Section 1. NEW SECTION. 24.49 EMERGENCY NEEDS 1 11 FUNDS. 1 12 For budget years commencing on or after July 1, 1 13 1996, the state board shall review requests and 1 14 authorize payment to a county for emergency needs 1 15 funds from the property tax relief fund, in accordance 1 16 with the provisions of section 426B.1, subsection 3. 1 17 Payment of the funds shall be authorized if the 1 18 request is for expenditures above a county's fixed 1 19 budget amount for services provided in accordance with 1 20 the requesting county's management plan for mental 1 21 health and mental retardation services approved under 1 22 section 331.439. 1 23 Sec. 2. Section 123.38, unnumbered paragraph 2, 1 24 Code 1995, is amended to read as follows: 1 25 Any licensee or permittee, or the licensee's or 1 26 permittee's executor or administrator, or any person 1 27 duly appointed by the court to take charge of and 1 28 administer the property or assets of the licensee or 1 29 permittee for the benefit of the licensee's or 1 30 permittee's creditors, may voluntarily surrender a 1 31 license or permit to the division. When a license or 1 32 permit is surrendered the division shall notify the 1 33 local authority, and the division or the local 1 34 authority shall refund to the person surrendering the 1 35 license or permit, a proportionate amount of the fee 1 36 received by the division or the local authority for 1 37 the license or permit as follows: If a license or 1 38 permit is surrendered during the first three months of 1 39 the period for which it was issued, the refund shall 1 40 be three-fourths of the amount of the fee; if 1 41 surrendered more than three months but not more than 1 42 six months after issuance, the refund shall be one- 1 43 half of the amount of the fee; if surrendered more 1 44 than six months but not more than nine months after 1 45 issuance, the refund shall be one-fourth of the amount 1 46 of the fee. No refund shall be made, however, for any 1 47 special liquor permit, nor for a liquor control 1 48 license, wine permit, or beer permit surrendered more 1 49 than nine months after issuance. For purposes of this 1 50 paragraph, any portion of license or permit fees used 2 1 for the purposes authorized in section 331.424, 2 2 subsection 1, paragraphs "a",and "b", "c", "d", "e",2 3"f", "g", and "h", and in section 331.424A, shall not 2 4 be deemed received either by the division or by a 2 5 local authority. No refund shall be made to any 2 6 licensee or permittee, upon the surrender of the 2 7 license or permit, if there is at the time of 2 8 surrender, a complaint filed with the division or 2 9 local authority, charging the licensee or permittee 2 10 with a violation of this chapter. If upon a hearing 2 11 on a complaint the license or permit is not revoked or 2 12 suspended, then the licensee or permittee is eligible, 2 13 upon surrender of the license or permit, to receive a 2 14 refund as provided in this section; but if the license 2 15 or permit is revoked or suspended upon hearing the 2 16 licensee or permittee is not eligible for the refund 2 17 of any portion of the license or permit fee. 2 18 Sec. 3. Section 218.99, Code 1995, is amended to 2 19 read as follows: 2 20 218.99 COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS' 2 21 PERSONAL ACCOUNTS. 2 22 The administrator of a division of the department 2 23 of human services in control of a state institution 2 24 shall direct the business manager of each institution 2 25 under the administrator's jurisdiction which is 2 26 mentioned in section 331.424, subsection 1, paragraphs 2 27 "a"through "g"and "b" and for which services are 2 28 paid under section 331.424A to quarterly inform the 2 29 auditor of the county of legal settlement of any 2 30 patient or resident who has an amount in excess of two 2 31 hundred dollars on account in the patients' personal 2 32 deposit fund and the amount on deposit. The 2 33 administrators shall direct the business manager to 2 34 further notify the auditor of the county at least 2 35 fifteen days before the release of funds in excess of 2 36 two hundred dollars or upon the death of the patient 2 37 or resident. If the patient or resident has no county 2 38 of legal settlement, notice shall be made to the 2 39 director of the department of human services and the 2 40 administrator of the division of the department in 2 41 control of the institution involved. 2 42 Sec. 4. Section 225C.4, subsection 2, paragraph b, 2 43 Code 1995, is amended to read as follows: 2 44 b. Establish mental health and mental retardation 2 45 services for all institutions under the control of the 2 46 director of human services and establish an autism 2 47 unit, following mutual planning with and consultation 2 48 from the medical director of the state psychiatric 2 49 hospital, at an institution or a facility administered 2 50 by the administrator to provide psychiatric and 3 1 related services and other specific programs to meet 3 2 the needs of autistic personsas defined in section3 3331.424, subsection 1, and to furnish appropriate 3 4 diagnostic evaluation services. 3 5 Sec. 5. Section 331.301, subsection 12, Code 1995, 3 6 is amended to read as follows: 3 7 12. The board of supervisors may credit funds to a 3 8 reserve for the purposes authorized by subsection 11 3 9 of this section; section 331.424, subsection 1, 3 10 paragraph"l""f"; and section 331.441, subsection 2, 3 11 paragraph "b". Moneys credited to the reserve, and 3 12 interest earned on such moneys, shall remain in the 3 13 reserve until expended for purposes authorized by 3 14 subsection 11 of this section; section 331.424, 3 15 subsection 1, paragraph"l""f"; or section 331.441, 3 16 subsection 2, paragraph "b". 3 17 Sec. 6. Section 331.424, subsection 1, Code 1995, 3 18 is amended to read as follows: 3 19 1. For general county services, an amount 3 20 sufficient to pay the charges for the following: 3 21 a. To the extent that the county is obligated by 3 22 statute to pay the charges for: 3 23(1) Care and treatment of patients by a state3 24mental health institute.3 25(2) Care and treatment of patients by either of3 26the state hospital-schools or by any other facility3 27established under chapter 222 and diagnostic3 28evaluation under section 222.31.3 29(3) Care and treatment of patients under chapter3 30225.3 31(4)(1) Care and treatment of persons at the 3 32 alcoholic treatment center at Oakdale. However, the 3 33 county may require that an admission to the center 3 34 shall be reported to the board by the center within 3 35 five days as a condition of the payment of county 3 36 funds for that admission. 3 37(5)(2) Care of children admitted or committed to 3 38 the Iowa juvenile home at Toledo. 3 39(6)(3) Clothing, transportation, medical, or 3 40 other services provided persons attending the Iowa 3 41 braille and sight saving school, the Iowa school for 3 42 the deaf, or the state hospital-school for severely 3 43 handicapped children at Iowa City, for which the 3 44 county becomes obligated to pay pursuant to sections 3 45 263.12, 269.2, and 270.4 through 270.7. 3 46b. To the extent that the board deems it advisable3 47to pay, the charges for professional evaluation,3 48treatment, training, habilitation, and care of persons3 49who are mentally retarded, autistic persons, or3 50persons who are afflicted by any other developmental4 1disability, at a suitable public or private facility4 2providing inpatient or outpatient care in the county.4 3As used in this paragraph:4 4(1) "Developmental disability" has the meaning4 5assigned that term by 42 U.S.C. sec. 6001(7) (1976),4 6Supp. II, 1978, and Supp. III, 1979.4 7(2) "Autistic persons" means persons, regardless4 8of age, with severe communication and behavior4 9disorders that became manifest during the early stages4 10of childhood development and that are characterized by4 11a severely disabling inability to understand,4 12communicate, learn, and participate in social4 13relationships. "Autistic persons" includes but is not4 14limited to those persons afflicted by infantile4 15autism, profound aphasia, and childhood psychosis.4 16c. Care and treatment of persons placed in the4 17county hospital, county care facility, a health care4 18facility as defined in section 135C.1, subsection 6,4 19or any other public or private facility, which4 20placement is in lieu of admission or commitment to or4 21is upon discharge, removal, or transfer from a state4 22mental health institute, hospital-school, or other4 23facility established pursuant to chapter 222.4 24d. Amounts budgeted by the board for the cost of4 25establishment and initial operation of a community4 26mental health center in the manner and subject to the4 27limitations provided by state law.4 28e.b. Foster care and related services provided 4 29 under court order to a child who is under the 4 30 jurisdiction of the juvenile court, including court- 4 31 ordered costs for a guardian ad litem under section 4 32 232.71. 4 33f. The care, admission, commitment, and4 34transportation of mentally ill patients in state4 35hospitals, to the extent that expenses for these4 36services are required to be paid by the county,4 37including compensation for the advocate appointed4 38under section 229.19.4 39g. Amounts budgeted by the board for mental health4 40services or mental retardation services furnished to4 41persons on either an outpatient or inpatient basis, to4 42a school or other public agency, or to the community4 43at large, by a community mental health center or other4 44suitable facility located in or reasonably near the4 45county, provided that services meet the standards of4 46the mental health and developmental disabilities4 47commission created in section 225C.5 and are4 48consistent with the annual plan for services approved4 49by the board.4 50h. Reimbursement on behalf of mentally retarded5 1persons under section 249A.12.5 2i.c. Elections, and voter registration pursuant 5 3 to chapter 48A. 5 4j.d. Employee benefits under chapters 96, 97B, 5 5 and 97C, which are associated with salaries for 5 6 general county services. 5 7k.e. Joint county and city building authorities 5 8 established under section 346.27, as provided in 5 9 subsection 22 of that section. 5 10l.f. Tort liability insurance, property 5 11 insurance, and any other insurance that may be 5 12 necessary in the operation of the county, costs of a 5 13 self-insurance program, costs of a local government 5 14 risk pool, and amounts payable under any insurance 5 15 agreements to provide or procure such insurance, self- 5 16 insurance program, or local government risk pool. 5 17m.g. The maintenance and operation of the courts, 5 18 including but not limited to the salary and expenses 5 19 of the clerk of the district court and other employees 5 20 of the clerk's office, and bailiffs, court costs if 5 21 the prosecution fails or if the costs cannot be 5 22 collected from the person liable, costs and expenses 5 23 of prosecution under section 189A.17, salaries and 5 24 expenses of juvenile court officers under chapter 602, 5 25 court-ordered costs in domestic abuse cases under 5 26 section 236.5, the county's expense for confinement of 5 27 prisoners under chapter 356A, temporary assistance to 5 28 the county attorney, county contributions to a 5 29 retirement system for bailiffs, reimbursement for 5 30 judicial magistrates under section 602.6501, claims 5 31 filed under section 622.93, interpreters' fees under 5 32 section 622B.7, uniform citation and complaint 5 33 supplies under section 805.6, and costs of prosecution 5 34 under section 815.13. 5 35n.h. Court-ordered costs of conciliation 5 36 procedures under section 598.16. 5 37o.i. Establishment and maintenance of a joint 5 38 county indigent defense fund pursuant to an agreement 5 39 under section 28E.19. 5 40p.j. The maintenance and operation of a local 5 41 emergency management agency established pursuant to 5 42 chapter 29C. 5 43 The board may require a public or private facility, 5 44 as a condition of receiving payment from county funds 5 45 for services it has provided, to furnish the board 5 46 with a statement of the income, assets, and legal 5 47 residence including township and county of each person 5 48 who has received services from that facility for which 5 49 payment has been made from county funds under 5 50 paragraphs "a"through "h"and "b". However, the 6 1 facility shall not disclose to anyone the name or 6 2 street or route address of a person receiving services 6 3 for which commitment is not required, without first 6 4 obtaining that person's written permission. 6 5 Parents or other persons may voluntarily reimburse 6 6 the county or state for the reasonable cost of caring 6 7 for a patient or an inmate in a county or state 6 8 facility. 6 9 Sec. 7. NEW SECTION. 331.424A COUNTY MENTAL 6 10 HEALTH, MENTAL RETARDATION, AND DEVELOPMENTAL 6 11 DISABILITIES SERVICES FUND. 6 12 1. For the purposes of this chapter, unless the 6 13 context otherwise requires, "services fund" means the 6 14 county mental health, mental retardation, and 6 15 developmental disabilities services fund created in 6 16 subsection 2. The county finance committee created in 6 17 section 333A.2 shall adopt rules and prescribe forms 6 18 for administering the services fund. 6 19 2. For the fiscal year beginning July 1, 1995, and 6 20 succeeding fiscal years, county revenues from taxes 6 21 and other sources designated for mental health, mental 6 22 retardation, and developmental disabilities services 6 23 shall be credited to the mental health, mental 6 24 retardation, and developmental disabilities services 6 25 fund of the county. The board may make appropriations 6 26 from the fund for payment of services provided under 6 27 the county management plan approved pursuant to 6 28 section 331.439. 6 29 3. For the fiscal year beginning July 1, 1995, and 6 30 succeeding fiscal years, receipts from the state or 6 31 federal government for such services shall be credited 6 32 to the services fund, including moneys allotted to the 6 33 county from the state payment made pursuant to section 6 34 331.439 and moneys allotted to the county for property 6 35 tax relief pursuant to section 426B.1. 6 36 4. For the fiscal year beginning July 1, 1995, and 6 37 for each subsequent fiscal year, the county shall 6 38 certify a levy for payment of services. Unless 6 39 otherwise provided by state law, for each fiscal year, 6 40 county revenues from taxes imposed by the county 6 41 credited to the services fund shall not exceed an 6 42 amount equal to the amount of base year expenditures 6 43 for services in the fiscal year beginning July 1, 6 44 1993, and ending June 30, 1994, as defined in section 6 45 331.438 less the amount of property tax relief to be 6 46 received pursuant to section 426B.2, subsections 1 and 6 47 3, in the fiscal year for which the budget is 6 48 certified. The county auditor and the board of 6 49 supervisors shall reduce the amount of the levy 6 50 certified for the services fund by the amount of 7 1 property tax relief to be received. 7 2 5. Appropriations specifically authorized to be 7 3 made from the mental health, mental retardation, and 7 4 developmental disabilities services fund shall not be 7 5 made from the general fund of the county. 7 6 Sec. 8. Section 331.438, subsection 1, paragraph 7 7 b, Code 1995, is amended to read as follows: 7 8 b. "State payment" means the payment made by the 7 9 state to a county determined to be eligible for the 7 10 payment in accordance with section 331.439. 7 11 1A. Except as modified based upon the actual 7 12 amount of the appropriation for purposes of state 7 13 payment under section 331.439, the amount of the state 7 14 payment for a fiscal year shall be calculated asfifty7 15 one hundred percent of the amount by which the 7 16 county's qualified expenditures during the immediately 7 17 preceding fiscal year were in excess of the amount of 7 18 the county's base year expenditures. A state payment 7 19 is the state funding a county receives pursuant to 7 20 section 426B.2, subsection 2. Any state funding 7 21 received by a county for property tax relief in 7 22 accordance with section 426B.2, subsections 1 and 3, 7 23 is not a state payment and shall not be included in 7 24 the state payment calculation made pursuant to this 7 25 subsection. 7 26 Sec. 9. Section 331.438, subsection 3, paragraph 7 27 c, subparagraph (9), Code 1995, is amended to read as 7 28 follows: 7 29 (9) Make recommendations to the council on human 7 30 services for administrative rules for the county 7 31single entry pointcentral point of coordination and 7 32 clinical assessment processes required under section 7 33 331.440 and other rules necessary for the 7 34 implementation of county management plans and 7 35 expenditure reports required for state payment 7 36 pursuant to section 331.439. 7 37 Sec. 10. Section 331.438, subsection 3, paragraph 7 38 c, Code 1995, is amended by adding the following new 7 39 subparagraph: 7 40 NEW SUBPARAGRAPH. (15) On or before December 1, 7 41 1995, submit to the governor and the general assembly 7 42 any recommended changes in the formula for 7 43 distributing property tax relief moneys to counties 7 44 under section 426B.2, subsections 1 through 3. 7 45 Sec. 11. Section 331.439, Code 1995, is amended by 7 46 striking the section and inserting in lieu thereof the 7 47 following: 7 48 331.439 ELIGIBILITY FOR STATE PAYMENT. 7 49 1. The state payment to eligible counties under 7 50 this section shall be made as provided in sections 8 1 331.438 and 426B.2. A county is eligible for the 8 2 state payment, as defined in section 331.438, for the 8 3 fiscal year beginning July 1, 1995, and for subsequent 8 4 fiscal years if the director of human services, in 8 5 consultation with the state-county management 8 6 committee, determines for a specific fiscal year that 8 7 all of the following conditions are met: 8 8 a. The county accurately reported by December 1 8 9 the county's expenditures for mental health, mental 8 10 retardation, and developmental disabilities services 8 11 for the previous fiscal year on forms prescribed by 8 12 the department of human services. 8 13 b. The county developed and implemented a county 8 14 management plan for the county's mental health and 8 15 mental retardation services in accordance with the 8 16 provisions of this paragraph. The plan shall comply 8 17 with the administrative rules adopted for this purpose 8 18 by the council on human services and is subject to the 8 19 approval of the director of human services in 8 20 consultation with the state-county management 8 21 committee created in section 331.438. The plan shall 8 22 include a description of the county's service 8 23 management provision for mental health, mental 8 24 retardation, and developmental disabilities services. 8 25 The plan shall have the following two parts: 8 26 (1) For mental health service management, the 8 27 county may either directly implement a system of 8 28 service management and contract with service 8 29 providers, or contract with a private entity to manage 8 30 the system, provided all requirements of this 8 31 subparagraph are met by the private entity. For the 8 32 fiscal year beginning July 1, 1995, the county shall 8 33 submit the plan for approval by January 1, 1996, and 8 34 implement the approved plan on or before July 1, 1996. 8 35 For subsequent fiscal years, this part of the plan 8 36 shall be submitted to the department by April 1 for 8 37 the succeeding fiscal year. 8 38 (2) For mental retardation and developmental 8 39 disabilities service management, the plan shall 8 40 describe the county's development and implementation 8 41 of a managed system of cost-effective individualized 8 42 services and other support to assist the individuals 8 43 to be served to be as independent, productive, and 8 44 integrated with the community as possible. The plan 8 45 shall provide for consideration of the type and level 8 46 of services and support needed and desired by the 8 47 individual. The plan may allow the provision of 8 48 services through vouchers or cash payments to allow 8 49 individuals to arrange for their own services or 8 50 support, if these methods are appropriate and cost- 9 1 effective. The county may directly implement the 9 2 system and contract with service providers, or 9 3 contract with a private entity to manage the system, 9 4 provided all requirements of this subparagraph are met 9 5 by the private entity. For the fiscal year beginning 9 6 July 1, 1996, this part of the plan shall be submitted 9 7 to the department of human services by January 1, 9 8 1996. For subsequent fiscal years, this part of the 9 9 plan shall be submitted prior to April 1 for the 9 10 succeeding fiscal year. 9 11 c. Changes to the approved plan are submitted at 9 12 least sixty days prior to the proposed change and are 9 13 not to be implemented prior to the director of human 9 14 services' approval, following the director's 9 15 consultation with the state-county management 9 16 committee. 9 17 2. A county may provide services to service 9 18 populations with disabilities who are not included in 9 19 the service management provisions required under 9 20 subsection 1, subject to the availability of funding. 9 21 3. a. For the fiscal year beginning July 1, 1996, 9 22 and succeeding fiscal years, the county's mental 9 23 health, mental retardation, and developmental 9 24 disabilities service expenditures for a fiscal year 9 25 are limited to a fixed budget amount. The fixed 9 26 budget amount shall be the amount identified in the 9 27 county's management plan and budget for the fiscal 9 28 year. The county shall be allowed an inflation factor 9 29 adjustment for services paid from the county's 9 30 services fund under section 331.424A which is in 9 31 accordance with the county's management plan and 9 32 budget, implemented pursuant to this section. 9 33 b. Based upon information contained in county 9 34 management plans and budgets, the state-county 9 35 management committee shall recommend an inflation 9 36 factor adjustment by January 1 for the succeeding 9 37 fiscal year. The inflation factor adjustment shall 9 38 address costs associated with new consumers of 9 39 service, service cost inflation, and investments for 9 40 economy and efficiency. 9 41 4. A county's implementation of the service 9 42 management provisions required under subsection 1 for 9 43 mental health and mental retardation shall incorporate 9 44 the central point of coordination process described in 9 45 section 331.440. 9 46 5. The basis for determining whether a managed 9 47 care system for mental health proposed by a county is 9 48 comparable to a mental health managed care contractor 9 49 approved by the department of human services shall 9 50 include but is not limited to all of the following 10 1 elements which shall be specified in administrative 10 2 rules adopted by the council on human services in 10 3 consultation with the state-county management 10 4 committee: 10 5 a. The enrollment and eligibility process. 10 6 b. The scope of services included. 10 7 c. The method of plan administration. 10 8 d. The process for managing utilization and access 10 9 to services and other assistance. 10 10 e. The quality assurance process. 10 11 f. The risk management provisions and fiscal 10 12 viability of the provisions, if the county contracts 10 13 with a private managed care entity. 10 14 6. Notwithstanding any other provision of law to 10 15 the contrary, a county shall have no obligation to pay 10 16 for or provide mental health, mental retardation, or 10 17 developmental disabilities services for any person 10 18 that applies through the county's central point of 10 19 coordination and clinical assessment processes after 10 20 the moneys in the county services fund under section 10 21 331.424A are expended. If a county has expended its 10 22 fixed budget amount for services pursuant to the 10 23 management plan approved under subsection 1, the state 10 24 shall assume financial responsibility and the county 10 25 may apply to the state appeal board for emergency 10 26 funds reserved in section 426B.1, subsection 3. 10 27 7. The director's approval of a county's mental 10 28 health, mental retardation, and developmental 10 29 disabilities services management plan shall not be 10 30 construed to constitute certification of the county's 10 31 budget. 10 32 Sec. 12. Section 331.440, Code 1995, is amended to 10 33 read as follows: 10 34 331.440 MENTAL HEALTH, MENTAL RETARDATION, AND 10 35 DEVELOPMENTAL DISABILITIES SERVICES &endash;SINGLE ENTRY10 36 CENTRAL POINT OF COORDINATION PROCESS. 10 37 1. a. For the purposes of this section, unless 10 38 the context otherwise requires, "single entrycentral 10 39 point of coordination process" means asingle entry10 40 central point of coordination process established by a 10 41 county or consortium of counties for the delivery of 10 42 mental health, mental retardation, and developmental 10 43 disabilities services which are paid for in whole or 10 44 in part by county funds. Thesingle entrycentral 10 45 point of coordination process may include but is not 10 46 limited to reviewing a person's eligibility for 10 47 services, determining the appropriateness of the type, 10 48 level, and duration of services, and performing 10 49 periodic review of the person's continuing eligibility 10 50 and need for services. Any recommendations developed 11 1 concerning a person's plan of services shall be 11 2 consistent with the person's unique strengths, 11 3 circumstances, priorities, concerns, abilities, and 11 4 capabilities. For those services funded under the 11 5 medical assistance program, thesingle entrycentral 11 6 point of coordination process shall be used to assure 11 7 that the person is aware of the appropriate service 11 8 options available to the person. 11 9 b. Thesingle entrycentral point of coordination 11 10 process may include a clinical assessment process to 11 11 identify a person's service needs and to make 11 12 recommendations regarding the person's plan for 11 13 services. The clinical assessment process shall 11 14 utilize qualified mental health professionals and 11 15 qualified mental retardation professionals. 11 16 2. The department of human services shall seek 11 17 federal approval as necessary for thesingle entry11 18 central point of coordination and clinical assessment 11 19 processes to be eligible for federal financial 11 20 participation under medical assistance. A county may 11 21 implement thesingle entrycentral point of 11 22 coordination process as part of a consortium of 11 23 counties and may implement the process beginning with 11 24 the fiscal year ending June 30, 1995. 11 25 3. The council on human services shall consider 11 26 the recommendations of the state-county management 11 27 committee established in section 331.438 in adopting 11 28 rules outlining standards and requirements for 11 29 implementation of thesingle entrycentral point of 11 30 coordination and clinical assessment processes on the 11 31 date required by subsection 2. The rules shall permit 11 32 counties options in implementing the process based 11 33 upon a county's consumer population and available 11 34 service delivery system. 11 35 Sec. 13. NEW SECTION. 426B.1 APPROPRIATIONS &endash; 11 36 PROPERTY TAX RELIEF FUND. 11 37 1. A property tax relief fund is created in the 11 38 state treasury under the authority of the department 11 39 of revenue and finance. The fund shall be separate 11 40 from the general fund of the state and shall not be 11 41 considered part of the general fund of the state 11 42 except in determining the cash position of the state 11 43 for payment of state obligations. The moneys in the 11 44 fund are not subject to the provisions of section 8.33 11 45 and shall not be transferred, used, obligated, 11 46 appropriated, or otherwise encumbered except as 11 47 provided in this section. Moneys in the fund may be 11 48 used for cash flow purposes, provided that any moneys 11 49 so allocated are returned to the fund by the end of 11 50 each fiscal year. However, the fund shall be 12 1 considered a special account for the purposes of 12 2 section 8.53, relating to elimination of any GAAP 12 3 deficit. For the purposes of this chapter, unless the 12 4 context otherwise requires, "property tax relief fund" 12 5 means the property tax relief fund created in this 12 6 section. 12 7 2. There is appropriated to the property tax 12 8 relief fund for the indicated fiscal years from the 12 9 general fund of the state the following amounts: 12 10 a. For the fiscal year beginning July 1, 1995, 12 11 sixty-five million dollars. 12 12 b. For the fiscal year beginning July 1, 1996, 12 13 eighty-five million dollars. 12 14 c. For the fiscal year beginning July 1, 1997, one 12 15 hundred five million dollars. 12 16 d. For the fiscal year beginning July 1, 1998, one 12 17 hundred twenty-five million dollars. 12 18 e. For the fiscal year beginning July 1, 1999, one 12 19 hundred forty-five million dollars. 12 20 f. For the fiscal year beginning July 1, 2000, and 12 21 succeeding fiscal years, one hundred sixty-five 12 22 million dollars. 12 23 3. In the fiscal year beginning July 1, 1996, and 12 24 in each subsequent fiscal year, of the funds 12 25 appropriated to the property tax relief fund, the 12 26 amount necessary to reserve one million dollars shall 12 27 be set aside in the fund. The reserved moneys shall 12 28 be used for payment of county emergency needs for 12 29 funds in excess of the fixed budget amount for 12 30 services provided in accordance with the county's 12 31 management plan approved under section 331.439. Any 12 32 reserved moneys remaining unexpended or unobligated at 12 33 the close of the fiscal year shall remain available in 12 34 the succeeding fiscal year to be combined with the 12 35 amount of funds appropriated in the succeeding fiscal 12 36 year necessary to reach the one million dollar reserve 12 37 amount. The director of revenue and finance shall pay 12 38 a county's request for funds reserved under this 12 39 subsection upon the approval of the request by the 12 40 state appeal board pursuant to section 24.49. 12 41 Sec. 14. NEW SECTION. 426B.2 PROPERTY TAX RELIEF 12 42 FUND DISTRIBUTIONS. 12 43 Moneys in the property tax relief fund shall be 12 44 utilized in each fiscal year as follows in the order 12 45 listed: 12 46 1. The first sixty-five million dollars plus the 12 47 amount paid pursuant to subsection 3 in the previous 12 48 fiscal year in the property tax relief fund shall be 12 49 paid to each county for property tax relief in the 12 50 same proportion that the county's base year 13 1 expenditure bears to the total of all counties' base 13 2 year expenditures as defined in section 331.438. 13 3 2. Payment of moneys to eligible counties of the 13 4 state payment in accordance with the provisions of 13 5 sections 331.438 and 331.439. Moneys provided to a 13 6 county for property tax relief in a fiscal year in 13 7 accordance with this section shall not be less than 13 8 the amount provided for property tax relief in the 13 9 previous fiscal year. 13 10 3. The department of human services shall estimate 13 11 the amount of moneys required for the state payment 13 12 pursuant to subsection 2. Moneys remaining in the 13 13 property tax relief fund following the payment made 13 14 pursuant to subsection 1 and the estimated amount of 13 15 the state payment pursuant to subsection 2 shall be 13 16 paid to counties for property tax relief in the same 13 17 manner as provided in subsection 1. These payments 13 18 shall continue until the combined amount of the 13 19 payments made under this subsection and subsection 1 13 20 are equal to fifty percent of the total of all 13 21 counties' base year expenditures as defined in section 13 22 331.438. The amount of moneys paid to a county 13 23 pursuant to this subsection shall be added in 13 24 subsequent fiscal years to the amount of moneys paid 13 25 under subsection 1. 13 26 4. Moneys remaining in the property tax relief 13 27 fund following the payments made pursuant to 13 28 subsections 1, 2, and 3 shall be transferred to the 13 29 homestead credit fund created in section 425.1. This 13 30 transfer shall continue until the homestead credit is 13 31 fully funded. 13 32 5. Moneys remaining in the property tax relief 13 33 fund following the payments made pursuant to 13 34 subsections 1, 2, and 3, and the transfer made 13 35 pursuant to subsection 4, shall be transferred to the 13 36 appropriation made in section 426A.1 for funding the 13 37 military service tax credit. This transfer shall 13 38 continue until the combination of the appropriation 13 39 made in section 426A.1 and the funds transferred are 13 40 sufficient to fully fund the military service tax 13 41 credit. 13 42 6. Moneys remaining in the property tax relief 13 43 fund following the payments made pursuant to 13 44 subsections 1, 2, and 3, and the transfers made 13 45 pursuant to subsections 4 and 5, shall be transferred 13 46 to the extraordinary property tax credit and re- 13 47 imbursement fund created in section 425.39. This 13 48 transfer shall continue until the combination of the 13 49 appropriation made in section 425.39 and the funds 13 50 transferred are sufficient to fully fund all claims on 14 1 the extraordinary property tax credit and 14 2 reimbursement fund. 14 3 7. Moneys remaining in the property tax relief 14 4 fund following the payments made pursuant to 14 5 subsections 1, 2, and 3, and the transfers made 14 6 pursuant to subsections 4, 5, and 6, shall be 14 7 transferred to the low-income tax credit and 14 8 reimbursement fund created in section 425.40. This 14 9 transfer shall continue until the low-income tax 14 10 credit is fully funded. 14 11 8. Moneys remaining in the property tax relief 14 12 fund following the payments made pursuant to 14 13 subsections 1, 2, and 3, and the transfers made 14 14 pursuant to subsections 4, 5, 6, and 7, shall be 14 15 transferred to the agricultural land credit fund 14 16 created in section 426.1. This transfer shall 14 17 continue until the agricultural land tax credit is 14 18 fully funded. 14 19 9. The director of revenue and finance shall draw 14 20 warrants on the property tax relief fund, payable to 14 21 the county treasurer in the amount due to a county in 14 22 accordance with subsections 1 and 3 and mail the 14 23 warrants to the county auditors in September and March 14 24 of each year. Warrants for the state payment in 14 25 accordance with subsection 2 shall be mailed in 14 26 January of each year. The director shall initiate the 14 27 transfers required by this section. 14 28 Sec. 15. NEW SECTION. 426B.3 NOTIFICATION OF 14 29 MENTAL HEALTH, MENTAL RETARDATION, AND DEVELOPMENTAL 14 30 DISABILITIES EXPENDITURE RELIEF FUND PAYMENT. 14 31 1. Before June 1, 1995, and before February 15 of 14 32 each succeeding fiscal year, the director of revenue 14 33 and finance shall notify the county auditor of each 14 34 county of the amount of moneys the county will receive 14 35 from the property tax relief fund pursuant to section 14 36 426B.2, subsections 1 and 3, for the succeeding fiscal 14 37 year. The county auditor shall reduce the certified 14 38 budget amount received from the board of supervisors 14 39 for the succeeding fiscal year for the county mental 14 40 health, mental retardation, and development 14 41 disabilities services fund created in section 331.424A 14 42 by an amount equal to the amount the county will 14 43 receive and the auditor shall determine the rate of 14 44 taxation necessary to raise the reduced amount. On 14 45 the tax list, the county auditor shall compute the 14 46 amount of taxes due and payable on each parcel before 14 47 and after the amount received from the property tax 14 48 relief fund is used to reduce the county budget. 14 49 2. The amount of property tax dollars reduced on 14 50 each parcel as a result of the moneys received from 15 1 the property tax relief fund pursuant to section 15 2 426B.2, subsections 1 and 3, shall be noted on each 15 3 tax statement prepared by the county treasurer 15 4 pursuant to section 445.23. 15 5 Sec. 16. NEW SECTION. 426B.4 RULES. 15 6 The director of revenue and finance shall prescribe 15 7 forms and adopt rules pursuant to chapter 17A to 15 8 administer this chapter. 15 9 Sec. 17. PILOT PROJECT FOR A MANAGED SYSTEM OF 15 10 INDIVIDUALIZED SERVICES. 15 11 1. The department of human services, in 15 12 cooperation with a county or consortium of counties, 15 13 shall develop, test, and evaluate a pilot project for 15 14 a managed system of individualized services and 15 15 support for individuals with mental retardation and 15 16 developmental disabilities in at least two areas of 15 17 the state. One area shall be urban and one rural. 15 18 The system shall be designed to provide the 15 19 individuals being served with a choice of services and 15 20 other support that will assist the individuals to be 15 21 as independent, productive, and integrated into the 15 22 community as possible. 15 23 2. In implementing the managed system pilot 15 24 project, the department and the county or consortium 15 25 of counties may directly manage the system and 15 26 contract with service providers and others for needed 15 27 services or support after identifying the type and 15 28 level of services and support needed by the 15 29 individual. The pilot project shall provide a 15 30 reasonable rate of reimbursement. If costs are equal 15 31 to or less than providing vouchers or cash payments to 15 32 the individuals and the individuals served so desire, 15 33 vouchers or cash payments may be provided to the 15 34 individuals to allow them to arrange for their own 15 35 services or support. The department and the county or 15 36 consortium of counties may enter into a contract with 15 37 a private entity to manage this individualized system 15 38 provided all pilot project requirements are met 15 39 through the private entity. 15 40 3. The department and the county or consortium of 15 41 counties shall seek the advice of persons with mental 15 42 retardation and developmental disabilities and their 15 43 family members in designing the pilot project. The 15 44 state-county management committee created in section 15 45 331.438 shall also have an opportunity to make 15 46 recommendations regarding the pilot project. 15 47 4. The department shall apply for all necessary 15 48 federal waivers so that in addition to state and 15 49 county funds, federal moneys available for these 15 50 services may also be flexibly used in the pilot 16 1 project. The planning for the pilot project shall be 16 2 completed prior to January 1, 1996, and the pilot 16 3 project shall commence on or before March 1, 1996. 16 4 Sec. 18. FUNDING OF SESSION LAW REQUIREMENTS. If 16 5 the appropriations in section 426B.1, subsection 2, as 16 6 created in this division of this Act, are enacted by 16 7 this Act, the requirements of 1994 Iowa Acts, chapter 16 8 1163, section 8, subsection 2, to fully fund 16 9 provisions of sections 331.438 and 331.439 shall be 16 10 considered to be met and the repeals contained in 1994 16 11 Iowa Acts, chapter 1163, section 8, subsection 2, 16 12 shall be void. 16 13 Sec. 19. EFFECTIVE DATE. Sections 2, 3, and 4 16 14 take effect July 1, 1995, and the remainder of this 16 15 division of this Act, being deemed of immediate 16 16 importance, takes effect upon enactment; however, the 16 17 provisions of sections 5, 6, and 7, relating to the 16 18 supplemental levy and the county mental health, mental 16 19 retardation, and developmental disabilities fund, are 16 20 applicable to taxes payable in the fiscal year 16 21 beginning July 1, 1995. 16 22 DIVISION II 16 23 SUBCHAPTER S CORPORATIONS 16 24 Sec. 20. Section 422.5, subsection 1, paragraph j, 16 25 Code 1995, is amended by adding the following new 16 26 unnumbered paragraph: 16 27 NEW UNNUMBERED PARAGRAPH. The tax imposed upon the 16 28 taxable income of a resident shareholder in a 16 29 corporation which has in effect for the tax year an 16 30 election under subchapter S of the Internal Revenue 16 31 Code and carries on business within and without the 16 32 state shall be computed by reducing the amount 16 33 determined pursuant to paragraphs "a" through "i" by 16 34 the amounts of nonrefundable credits under this 16 35 division and by multiplying this resulting amount by a 16 36 fraction of which the resident's net income allocated 16 37 to Iowa, as determined in section 422.8, subsection 2, 16 38 paragraph "b", is the numerator and the resident's 16 39 total net income computed under section 422.7 is the 16 40 denominator. This paragraph also applies to 16 41 individuals who are residents of Iowa for less than 16 42 the entire tax year. 16 43 Sec. 21. Section 422.5, subsection 1, paragraph k, 16 44 unnumbered paragraph 4, Code 1995, is amended to read 16 45 as follows: 16 46 In the case of a resident, including a resident 16 47 estate or trust, the state's apportioned share of the 16 48 state alternative minimum tax is one hundred percent 16 49 of the state alternative minimum tax computed in this 16 50 subsection. In the case of a resident or part year 17 1 resident shareholder in a corporation which has in 17 2 effect for the tax year an election under subchapter S 17 3 of the Internal Revenue Code and carries on business 17 4 within and without the state, a nonresident, including 17 5 a nonresident estate or trust, or an individual, 17 6 estate, or trust that is domiciled in the state for 17 7 less than the entire tax year, the state's apportioned 17 8 share of the state alternative minimum tax is the 17 9 amount of tax computed under this subsection, reduced 17 10 by the applicable credits in sections 422.10 through 17 11 422.12 and this result multiplied by a fraction with a 17 12 numerator of the sum of state net income allocated to 17 13 Iowa as determined in section 422.8, subsection 2, 17 14 paragraph "a" or "b" as applicable, plus tax 17 15 preference items, adjustments, and losses under 17 16 subparagraph (1) attributable to Iowa and with a 17 17 denominator of the sum of total net income computed 17 18 under section 422.7 plus all tax preference items, 17 19 adjustments, and losses under subparagraph (1). In 17 20 computing this fraction, those items excludable under 17 21 subparagraph (1) shall not be used in computing the 17 22 tax preference items. Married taxpayers electing to 17 23 file separate returns or separately on a combined 17 24 return must allocate the minimum tax computed in this 17 25 subsection in the proportion that each spouse's 17 26 respective preference items, adjustments, and losses 17 27 under subparagraph (1) bear to the combined preference 17 28 items, adjustments, and losses under subparagraph (1) 17 29 of both spouses. 17 30 Sec. 22. Section 422.8, subsection 2, Code 1995, 17 31 is amended to read as follows: 17 32 2. a. Nonresident's net income allocated to Iowa 17 33 is the net income, or portion thereof, which is 17 34 derived from a business, trade, profession, or 17 35 occupation carried on within this state or income from 17 36 any property, trust, estate, or other source within 17 37 Iowa. However, income derived from a business, trade, 17 38 profession, or occupation carried on within this state 17 39 and income from any property, trust, estate, or other 17 40 source within Iowa shall not include distributions 17 41 from pensions, including defined benefit or defined 17 42 contribution plans, annuities, individual retirement 17 43 accounts, and deferred compensation plans or any 17 44 earnings attributable thereto so long as the 17 45 distribution is directly related to an individual's 17 46 documented retirement and received while the 17 47 individual is a nonresident of this state. If a 17 48 business, trade, profession, or occupation is carried 17 49 on partly within and partly without the state, only 17 50 the portion of the net income which is fairly and 18 1 equitably attributable to that part of the business, 18 2 trade, profession, or occupation carried on within the 18 3 state is allocated to Iowa for purposes of section 18 4 422.5, subsection 1, paragraph "j", and section 422.13 18 5 and income from any property, trust, estate, or other 18 6 source partly within and partly without the state is 18 7 allocated to Iowa in the same manner, except that 18 8 annuities, interest on bank deposits and interest- 18 9 bearing obligations, and dividends are allocated to 18 10 Iowa only to the extent to which they are derived from 18 11 a business, trade, profession, or occupation carried 18 12 on within the state. 18 13 b. A resident's income allocable to Iowa is the 18 14 income determined under section 422.7 reduced by items 18 15 of income and expenses from a subchapter S corporation 18 16 which pass directly to the shareholders under 18 17 provisions of the Internal Revenue Code and increased 18 18 by the greater of the following: 18 19 (1) The net income or loss of the corporation 18 20 which is fairly and equitably attributable to this 18 21 state under section 422.33, subsections 2 and 3. 18 22 (2) The taxpayer's pro rata share of an amount 18 23 deemed distributed to shareholders which when added to 18 24 the salaries, wages, or other compensation for 18 25 services performed by all shareholders will equal ten 18 26 percent of the net income of the corporation computed 18 27 in accordance with section 422.35 and considering 18 28 items of income and expense which pass directly to the 18 29 shareholders under provisions of the Internal Revenue 18 30 Code before deduction of shareholder's salaries, 18 31 wages, or other compensation for services performed. 18 32 (3) Any cash or the value of any property 18 33 distributions made to the extent they are paid from 18 34 income upon which Iowa income tax has not been paid as 18 35 determined under rules of the director. 18 36 Sec. 23. Section 422.8, Code 1995, is amended by 18 37 adding the following new subsection: 18 38 NEW SUBSECTION. 6. If the resident or part year 18 39 resident is a shareholder of a corporation which has 18 40 in effect an election under subchapter S of the 18 41 Internal Revenue Code, subsections 1 and 3 do not 18 42 apply to any income taxes paid to another state or 18 43 foreign country on the income from the corporation 18 44 which has in effect an election under subchapter S of 18 45 the Internal Revenue Code. 18 46 Sec. 24. This division of this Act, being deemed 18 47 of immediate importance, takes effect upon enactment 18 48 and applies retroactively to January 1, 1995, for tax 18 49 years beginning on or after that date. 18 50 DIVISION III 19 1 MACHINERY AND EQUIPMENT 19 2 EXEMPTION AND REPLACEMENT FUNDS 19 3 Sec. 25. Section 427B.17, Code 1995, is amended by 19 4 striking the section and inserting in lieu thereof the 19 5 following: 19 6 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 19 7 1. Property defined in section 427A.1, subsection 19 8 1, paragraphs "e" and "j", acquired or initially 19 9 leased on or after July 1, 1995, shall be exempt from 19 10 taxation. 19 11 2. Property defined in section 427A.1, subsection 19 12 1, paragraphs "e" and "j", and acquired or initially 19 13 leased before July 1, 1995, shall be valued by the 19 14 local assessor as follows: 19 15 a. For the assessment year beginning January 1, 19 16 1995, at twenty-five percent of the net acquisition 19 17 cost. 19 18 b. For the assessment year beginning January 1, 19 19 1996, at twenty percent of the net acquisition cost. 19 20 c. For the assessment year beginning January 1, 19 21 1997, at fifteen percent of the net acquisition cost. 19 22 d. For the assessment year beginning January 1, 19 23 1998, at ten percent of the net acquisition cost. 19 24 e. For the assessment year beginning January 1, 19 25 1999, at five percent of the net acquisition cost. 19 26 f. For the assessment year beginning January 1, 19 27 2000, and all subsequent assessment years, at zero 19 28 percent of the net acquisition cost. 19 29 3. For purposes of this section: 19 30 a. Property assessed by the department of revenue 19 31 and finance pursuant to sections 428.24 to 428.29, or 19 32 chapters 433, 434, and 436 to 438 shall not receive 19 33 the benefits of this section. 19 34 Any electric power generating plant which operated 19 35 during the preceding assessment year at a net capacity 19 36 factor of more than twenty percent, shall not receive 19 37 the benefits of this section. For purposes of this 19 38 section, "electric power generating plant" means any 19 39 name plate rated electric power generating plant, in 19 40 which electric energy is produced from other forms of 19 41 energy, including all taxable land, buildings, and 19 42 equipment used in the production of such energy. "Net 19 43 capacity factor" means net actual generation divided 19 44 by the product of net maximum capacity times the 19 45 number of hours the unit was in the active state 19 46 during the assessment year. Upon commissioning, a 19 47 unit is in the active state until it is de- 19 48 commissioned. "Net actual generation" means net 19 49 electrical megawatt hours produced by the unit during 19 50 the preceding assessment year. "Net maximum capacity" 20 1 means the capacity the unit can sustain over a 20 2 specified period when not restricted by ambient 20 3 conditions or equipment deratings, minus the losses 20 4 associated with station service or auxiliary loads. 20 5 b. Property acquired or initially leased on or 20 6 after July 1, 1995, which was owned or used before 20 7 July 1, 1995, by a related person shall be assessed 20 8 and taxed in the manner provided in subsection 2, and 20 9 the net acquisition cost of the property shall be the 20 10 net acquisition cost of the transferor of the 20 11 property. 20 12 c. "Related person" means a person who owns or 20 13 controls the taxpayer's business and another business 20 14 entity from which property is acquired or leased or to 20 15 which property is sold or leased. Business entities 20 16 are owned or controlled by the same person if the same 20 17 person directly or indirectly owns or controls fifty 20 18 percent or more of the assets or any class of stock or 20 19 who directly or indirectly has an interest of fifty 20 20 percent or more in the ownership or profits. 20 21 d. "Net acquisition cost" means the acquired cost 20 22 of the property, including all foundations and 20 23 installation cost less any excess cost adjustment. 20 24 4. Property assessed pursuant to this section 20 25 shall not be eligible to receive a partial exemption 20 26 under sections 427B.1 to 427B.6. 20 27 5. The taxpayer's valuation of property defined in 20 28 section 427A.1, subsection 1, paragraphs "e" and "j", 20 29 acquired or initially leased before July 1, 1995, and 20 30 located in an urban renewal area for which an urban 20 31 renewal plan provides for the division of taxes as 20 32 provided in section 403.19 to pay the principal and 20 33 interest on loans, advances, bonds issued under the 20 34 authority of section 403.9, subsection 1, or 20 35 indebtedness incurred by a city or county to finance 20 36 an urban renewal project within the urban renewal 20 37 area, if such loans, advances, or bonds were issued or 20 38 indebtedness incurred, on or after January 1, 1982, 20 39 and on or before June 30, 1995, shall be limited to 20 40 thirty percent of the net acquisition cost of the 20 41 property. Such property located in an urban renewal 20 42 area shall not be valued pursuant to subsection 2 20 43 until the assessment year following the calendar year 20 44 in which the obligations created by any loans, 20 45 advances, bonds, or indebtedness payable from the 20 46 division of taxes as provided in section 403.19 have 20 47 been retired. The taxpayer's valuation for such 20 48 property shall then be the valuation specified in 20 49 subsection 2 for the applicable assessment year. If 20 50 the loans, advances, or bonds issued, or indebtedness 21 1 incurred between January 1, 1982, and June 30, 1995, 21 2 are refinanced or refunded after June 30, 1995, the 21 3 valuation of such property shall then be the valuation 21 4 specified in subsection 2 for the applicable 21 5 assessment year beginning with the assessment year 21 6 following the calendar year in which any of those 21 7 loans, advances, bonds, or other indebtedness are 21 8 refinanced or refunded after June 30, 1995. 21 9 6. For the purpose of dividing taxes under section 21 10 260E.4 or 260F.4, the employer's or business's 21 11 valuation of property defined in section 427A.1, 21 12 subsection 1, paragraphs "e" and "j", acquired or 21 13 initially leased before July 1, 1995, and used to fund 21 14 a new jobs training project which project's first 21 15 written agreement providing for a division of taxes as 21 16 provided in section 403.19, is approved on or before 21 17 June 30, 1995, shall be limited to thirty percent of 21 18 the net acquisition cost of the property. An 21 19 employer's or business's taxable property used to fund 21 20 a new jobs training project shall not be valued 21 21 pursuant to subsection 2 until the assessment year 21 22 following the calendar year in which the certificates 21 23 or other funding obligations have been retired or 21 24 escrowed. The taxpayer's valuation for such property 21 25 shall then be the valuation specified in subsection 2 21 26 for the applicable assessment year. If the 21 27 certificates issued, or other funding obligations 21 28 incurred, between January 1, 1982, and June 30, 1995, 21 29 are refinanced or refunded after June 30, 1995, the 21 30 valuation of such property shall then be the valuation 21 31 specified in subsection 2 for the applicable 21 32 assessment year beginning with the assessment year 21 33 following the calendar year in which those 21 34 certificates or other funding obligations are 21 35 refinanced or refunded after June 30, 1995. 21 36 Sec. 26. NEW SECTION. 427B.18 REPLACEMENT. 21 37 Each county treasurer shall be paid an amount equal 21 38 to the amount of the industrial machinery, equipment 21 39 and computers tax replacement claim to replace the 21 40 reduction in property tax revenues from the amount 21 41 collected in the fiscal year beginning July 1, 1995, 21 42 from the industrial machinery, equipment and computers 21 43 assessed pursuant to section 427B.17 less the increase 21 44 in property tax revenues from the amount collected in 21 45 the fiscal year beginning July 1, 1995, from 21 46 commercial and industrial property as calculated 21 47 pursuant to section 427B.19. 21 48 Sec. 27. NEW SECTION. 427B.19 ASSESSOR AND 21 49 COUNTY AUDITOR DUTIES. 21 50 1. On or before July 1 of each year, the assessor 22 1 shall determine the total valuation of all property 22 2 assessed under section 427B.17, for that year and the 22 3 valuation of such property assessed as of January 1, 22 4 1994, and the value of all commercial and industrial 22 5 property assessed for that year and the valuation of 22 6 such property assessed as of January 1, 1994, and 22 7 shall report the valuations to the county auditor. 22 8 2. On or before July 1, 1996, and on or before 22 9 July 1 of each subsequent year, the county auditor 22 10 shall prepare a statement listing for each taxing 22 11 district in the county: 22 12 a. Beginning with the assessment year beginning 22 13 January 1, 1995, the difference between the reduced 22 14 assessed valuations of property defined in section 22 15 427A.1, subsection 1, paragraphs "e" and "j", and 22 16 assessed pursuant to section 427B.17, and the 22 17 increased assessed valuations of commercial and 22 18 industrial property. The auditor shall make other 22 19 adjustments as directed by rule of the department of 22 20 revenue and finance. 22 21 b. The tax levy rate for each taxing district 22 22 levied against assessments made as of January 1 of the 22 23 previous year. 22 24 c. If the calculation under subsection 2 indicates 22 25 a net decrease in aggregate valuation of such 22 26 property, the industrial machinery, equipment and 22 27 computers tax replacement claim for each taxing 22 28 district, which is equal to the net decrease 22 29 determined pursuant to paragraph "a", multiplied by 22 30 the tax rate specified in paragraph "b". 22 31 3. The county auditor shall certify and forward 22 32 one copy of the statement to the department of revenue 22 33 and finance not later than July 1 of each year. 22 34 Sec. 28. NEW SECTION. 427B.19A FUND CREATED. 22 35 1. The industrial machinery, equipment and 22 36 computers property tax replacement fund is created. 22 37 There is appropriated annually from the general fund 22 38 of the state to the department of revenue and finance 22 39 to be credited to the industrial machinery, equipment 22 40 and computers property tax replacement fund, the 22 41 amounts specified in section 427B.19B. 22 42 2. Each county treasurer shall be paid from the 22 43 fund created in this section the amount calculated 22 44 pursuant to section 427B.19. The payment shall be 22 45 made in two equal installments on or before September 22 46 30 and March 30 of each year. The county treasurer 22 47 shall apportion the payment in the manner provided in 22 48 section 445.57. 22 49 3. If an amount appropriated in section 427B.19B 22 50 for a fiscal year is insufficient to pay all claims, 23 1 the director shall prorate the disbursements from the 23 2 fund to the county treasurers and shall notify the 23 3 county auditors of the pro rata percentage on or 23 4 before August 1. If an amount appropriated in section 23 5 427B.19B for a fiscal year is in excess of the amount 23 6 necessary to pay all claims according to the 23 7 replacement schedule in section 427B.19, the director 23 8 shall prorate the disbursements from the fund to the 23 9 county treasurers, notwithstanding the amount of the 23 10 claims, and shall notify the county auditors of the 23 11 pro rata percentage on or before August 1. 23 12 4. The replacement amount paid to each school 23 13 district shall be regarded as property tax for the 23 14 purposes of the school foundation property tax levy in 23 15 section 257.3 and the additional property tax levy in 23 16 section 257.4. The department of management shall 23 17 annually make the adjustments necessary to implement 23 18 this subsection. 23 19 Sec. 29. NEW SECTION. 427B.19B APPROPRIATION. 23 20 There is appropriated in each of the following 23 21 fiscal years from the general fund of the state to the 23 22 industrial machinery, equipment and computers property 23 23 tax replacement fund the following amounts: 23 24 1. For the fiscal year beginning July 1, 1996, 23 25 nine million, one hundred thousand dollars. 23 26 2. For the fiscal year beginning July 1, 1997, 23 27 twenty-two million, four hundred thousand dollars. 23 28 3. For the fiscal year beginning July 1, 1998, 23 29 thirty-three million, five hundred thousand dollars. 23 30 4. For the fiscal year beginning July 1, 1999, 23 31 forty-one million, six hundred thousand dollars. 23 32 5. For the fiscal year beginning July 1, 2000, 23 33 forty-six million, eight hundred thousand dollars. 23 34 6. For the fiscal year beginning July 1, 2001, 23 35 forty-nine million, five hundred thousand dollars. 23 36 7. For the fiscal year beginning July 1, 2002, 23 37 fifty-two million, nine hundred thousand dollars. 23 38 8. For the fiscal year beginning July 1, 2003, 23 39 forty-five million, two hundred thousand dollars. 23 40 9. For the fiscal year beginning July 1, 2004, 23 41 thirty-six million, six hundred thousand dollars. 23 42 10. For the fiscal year beginning July 1, 2005, 23 43 twenty-six million, nine hundred thousand dollars. 23 44 11. For the fiscal year beginning July 1, 2006, 23 45 sixteen million, one hundred thousand dollars. 23 46 12. For the fiscal year beginning July 1, 2007, 23 47 four million, two hundred thousand dollars. 23 48 Sec. 30. NEW SECTION. 427B.19C PHASEOUT OF TAX. 23 49 Effective on July 1, 2001, all property taxes on 23 50 property defined in section 427A.1, subsection 1, 24 1 paragraphs "e" and "j", which was assessed pursuant to 24 2 section 427B.17 are repealed. For assessment years 24 3 beginning after January 1, 2006, such property shall 24 4 not be listed or assessed. This section shall prevail 24 5 over all inconsistent statutes. 24 6 Sec. 31. NEW SECTION. 427B.19D GUARANTEE OF 24 7 STATE REPLACEMENT FUNDS. 24 8 If for any reason an appropriation specified in 24 9 section 427B.19B is not made or the appropriation made 24 10 is less than that specified in section 427B.19B for 24 11 the applicable fiscal year, the director of revenue 24 12 and finance shall compute for each county the 24 13 difference between the total of all replacement claims 24 14 for taxing districts within the county and the amount 24 15 paid to the county treasurer for disbursement to the 24 16 taxing districts in the county. The department shall 24 17 divide that difference by the consolidated tax levy 24 18 rate in each county computed for the fiscal year in 24 19 which the specified appropriation should have been 24 20 made and shall certify the amount of taxable value 24 21 necessary to raise the difference at that tax rate. 24 22 The department shall notify the local assessor of such 24 23 amount of taxable value. The assessor, for the 24 24 assessment year beginning January 1 preceding the 24 25 fiscal year for which the specified appropriation was 24 26 not made, shall reassess all taxable property 24 27 described in section 427B.17, subsection 2, in the 24 28 county at a percentage of net acquisition cost which 24 29 will yield such taxable value and the property shall 24 30 be assessed and taxed in such manner for taxes due and 24 31 payable in the following fiscal year in addition to 24 32 being assessed and taxed in the applicable manner 24 33 under section 427B.17. Property tax dollar amounts 24 34 certified pursuant to this section shall not be 24 35 considered property tax dollars certified for purposes 24 36 of the property tax limitation in chapter 444. 24 37 DIVISION IV 24 38 INCOME TAX 24 39 Sec. 32. Section 422.5, subsections 2 and 8, Code 24 40 1995, are amended to read as follows: 24 41 2. However, the tax shall not be imposed on a 24 42 resident or nonresident whose net income, as defined 24 43 in section 422.7, isthirteenfourteen thousand five 24 44 hundred dollars or less in the case of married persons 24 45 filing jointly or filing separately on a combined 24 46 return, unmarried heads of household, and surviving 24 47 spouses ornineten thousand dollars or less in the 24 48 case of all other persons; but in the event that the 24 49 payment of tax under this division would reduce the 24 50 net income to less thanthirteenfourteen thousand 25 1 five hundred dollars ornineten thousand dollars as 25 2 applicable, then the tax shall be reduced to that 25 3 amount which would result in allowing the taxpayer to 25 4 retain a net income ofthirteenfourteen thousand five 25 5 hundred dollars ornineten thousand dollars as 25 6 applicable. The preceding sentence does not apply to 25 7 estates or trusts. For the purpose of this 25 8 subsection, the entire net income, including any part 25 9 of the net income not allocated to Iowa, shall be 25 10 taken into account. For purposes of this subsection, 25 11 net income includes all amounts of pensions or other 25 12 retirement income received from any source which is 25 13 not taxable under this division as a result of the 25 14 government pension exclusions in section 422.7, or any 25 15 other state law. If the combined net income of a 25 16 husband and wife exceedsthirteenfourteen thousand 25 17 five hundred dollars, neither of them shall receive 25 18 the benefit of this subsection, and it is immaterial 25 19 whether they file a joint return or separate returns. 25 20 However, if a husband and wife file separate returns 25 21 and have a combined net income ofthirteenfourteen 25 22 thousand five hundred dollars or less, neither spouse 25 23 shall receive the benefit of this paragraph, if one 25 24 spouse has a net operating loss and elects to carry 25 25 back or carry forward the loss as provided in section 25 26 422.9, subsection 3. A person who is claimed as a 25 27 dependent by another person as defined in section 25 28 422.12 shall not receive the benefit of this 25 29 subsection if the person claiming the dependent has 25 30 net income exceedingthirteenfourteen thousand five 25 31 hundred dollars ornineten thousand dollars as 25 32 applicable or the person claiming the dependent and 25 33 the person's spouse have combined net income exceeding 25 34thirteenfourteen thousand five hundred dollars or 25 35nineten thousand dollars as applicable. 25 36 In addition, if the married persons', filing 25 37 jointly or filing separately on a combined return, 25 38 unmarried head of household's, or surviving spouse's 25 39 net income exceedsthirteenfourteen thousand five 25 40 hundred dollars, the regular tax imposed under this 25 41 division shall be the lesser of the maximum state 25 42 individual income tax rate times the portion of the 25 43 net income in excess ofthirteenfourteen thousand 25 44 five hundred dollars or the regular tax liability 25 45 computed without regard to this sentence. Taxpayers 25 46 electing to file separately shall compute the 25 47 alternate tax described in this paragraph using the 25 48 total net income of the husband and wife. The 25 49 alternate tax described in this paragraph does not 25 50 apply if one spouse elects to carry back or carry 26 1 forward the loss as provided in section 422.9, 26 2 subsection 3. 26 3 8. In addition to the other taxes imposed by this 26 4 section, a tax is imposed on the amount of a lump sum 26 5 distribution for which the taxpayer has elected under 26 6 section 402(e) of the Internal Revenue Code to be 26 7 separately taxed for federal income tax purposes for 26 8 the tax year. The rate of tax is equal to twenty-five 26 9 percent of the separate federal tax imposed on the 26 10 amount of the lump sum distribution. A nonresident is 26 11 liable for this tax only on that portion of the lump 26 12 sum distribution allocable to Iowa. The total amount 26 13 of the lump sum distribution subject to separate 26 14 federal tax shall be included in net income for 26 15 purposes of determining eligibility under thethirteen26 16 fourteen thousand five hundred dollar or less ornine26 17 ten thousand dollar or less exclusion, as applicable. 26 18 Sec. 33. Section 422.7, Code 1995, is amended by 26 19 adding the following new subsection: 26 20 NEW SUBSECTION. 33. For a person who is disabled, 26 21 or is fifty-five years of age or older, or is the 26 22 surviving spouse of an individual or a survivor having 26 23 an insurable interest in an individual who would have 26 24 qualified for the exemption under this subsection for 26 25 the tax year, subtract, to the extent included, the 26 26 total amount of a governmental or other pension or 26 27 retirement pay, including, but not limited to, defined 26 28 benefit or defined contribution plans, annuities, 26 29 individual retirement accounts, plans maintained or 26 30 contributed to by an employer, or maintained or 26 31 contributed to by a self-employed person as an 26 32 employer, and deferred compensation plans or any 26 33 earnings attributable to the deferred compensation 26 34 plans, up to a maximum of three thousand dollars for a 26 35 person who files a separate state income tax return, 26 36 and up to a maximum of six thousand dollars for a 26 37 husband and wife who file a joint state income tax 26 38 return. However, a surviving spouse who is not 26 39 disabled or fifty-five years of age or older can only 26 40 exclude the amount of annuities or other similar 26 41 periodic payments received as a result of the death of 26 42 the other spouse. 26 43 Sec. 34. Section 422.12, subsection 1, paragraph 26 44 c, Code 1995, is amended to read as follows: 26 45 c. For each dependent, an additionalfifteenforty 26 46 dollars. As used in this section, the term 26 47 "dependent" has the same meaning as provided by the 26 48 Internal Revenue Code. 26 49 Sec. 35. Section 422.13, subsection 1, paragraph 26 50 a, Code 1995, is amended to read as follows: 27 1 a. The individual has net income ofnineten 27 2 thousand dollars or more for the tax year from sources 27 3 taxable under this division. 27 4 Sec. 36. APPLICABILITY. This division of this Act 27 5 applies retroactively to January 1, 1995, for tax 27 6 years beginning on or after that date." 27 7 # . Title page, by striking lines 1 through 6 27 8 and inserting the following: "An Act relating to tax 27 9 provisions involving income tax, machinery, equipment 27 10 and computers property tax reimbursement, subchapter S 27 11 corporations, and services paid for by property taxes 27 12 and property tax reductions and credits and providing 27 13 appropriations, penalties, effective dates, and 27 14 retroactive applicability provisions."" 27 15 27 16 27 17 27 18 WAYNE BENNETT 27 19 SF 69.329 76 27 20 mg/cf
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