Text: S03598 Text: S03600 Text: S03500 - S03599 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the amendment, S-3591, to the House 1 2 amendment, S-3082, to Senate File 69, as passed by the 1 3 Senate, as follows: 1 4 #1. By striking page 1, line 1 through page 26, 1 5 line 35 and inserting the following: 1 6 "Amend the House amendment, S-3082, to Senate File 1 7 69 as passed by the Senate as follows: 1 8 # . By striking page 1, line 1, through page 1 9 44, line 25, and inserting the following: 1 10 "Amend Senate File 69, as passed by the Senate, as 1 11 follows: 1 12 # . By striking everything after the enacting 1 13 clause and inserting the following: 1 14 "DIVISION I 1 15 INCOME TAX 1 16 Section 1. Section 422.7, Code 1995, is amended by 1 17 adding the following new subsection: 1 18 NEW SUBSECTION. 33. For a person who is disabled, 1 19 or is fifty-five years of age or older, or is the 1 20 surviving spouse of an individual or a survivor having 1 21 an insurable interest in an individual who would have 1 22 qualified for the exemption under this subsection for 1 23 the tax year, subtract, to the extent included, the 1 24 total amount of a governmental or other pension or 1 25 retirement pay, including, but not limited to, defined 1 26 benefit or defined contribution plans, annuities, 1 27 individual retirement accounts, plans maintained or 1 28 contributed to by an employer, or maintained or 1 29 contributed to by a self-employed person as an 1 30 employer, and deferred compensation plans or any 1 31 earnings attributable to the deferred compensation 1 32 plans, up to a maximum of three thousand dollars for a 1 33 person who files a separate state income tax return 1 34 and up to a maximum of six thousand dollars for a 1 35 husband and wife who file a joint state income tax 1 36 return. However, a surviving spouse who is not 1 37 disabled or fifty-five years of age or older can only 1 38 exclude the amount of pension or retirement pay 1 39 received as a result of the death of the other spouse. 1 40 Sec. 2. Section 422.12, subsection 1, paragraph c, 1 41 Code 1995, is amended to read as follows: 1 42 c. For each dependent, an additionalfifteenforty 1 43 dollars. As used in this section, the term 1 44 "dependent" has the same meaning as provided by the 1 45 Internal Revenue Code. 1 46 Sec. 3. TAXATION STUDY. The legislative council 1 47 is requested to establish a taxation study during the 1 48 1995 legislative interim period. The study would 1 49 address taxation of businesses, including subchapter S 1 50 corporations, taxation incentives and disincentives 2 1 for economic development, and the long-term objectives 2 2 of business taxation. The legislative council is 2 3 requested to authorize up to $100,000 for consultants 2 4 and other costs associated with the business taxation 2 5 study. 2 6 Sec. 4. RETROACTIVE APPLICABILITY. This division 2 7 of this Act applies retroactively to January 1, 1995, 2 8 for tax years beginning on or after that date. 2 9 DIVISION II 2 10 SUPPLEMENTAL LEVY AND COUNTY MENTAL HEALTH FUND 2 11 Sec. 5. Section 123.38, unnumbered paragraph 2, 2 12 Code 1995, is amended to read as follows: 2 13 Any licensee or permittee, or the licensee's or 2 14 permittee's executor or administrator, or any person 2 15 duly appointed by the court to take charge of and 2 16 administer the property or assets of the licensee or 2 17 permittee for the benefit of the licensee's or 2 18 permittee's creditors, may voluntarily surrender a 2 19 license or permit to the division. When a license or 2 20 permit is surrendered the division shall notify the 2 21 local authority, and the division or the local 2 22 authority shall refund to the person surrendering the 2 23 license or permit, a proportionate amount of the fee 2 24 received by the division or the local authority for 2 25 the license or permit as follows: If a license or 2 26 permit is surrendered during the first three months of 2 27 the period for which it was issued, the refund shall 2 28 be three-fourths of the amount of the fee; if 2 29 surrendered more than three months but not more than 2 30 six months after issuance, the refund shall be one- 2 31 half of the amount of the fee; if surrendered more 2 32 than six months but not more than nine months after 2 33 issuance, the refund shall be one-fourth of the amount 2 34 of the fee. No refund shall be made, however, for any 2 35 special liquor permit, nor for a liquor control 2 36 license, wine permit, or beer permit surrendered more 2 37 than nine months after issuance. For purposes of this 2 38 paragraph, any portion of license or permit fees used 2 39 for the purposes authorized in section 331.424, 2 40 subsection 1, paragraphs "a",and "b", "c", "d", "e",2 41"f", "g", and "h", and in section 331.424A, shall not 2 42 be deemed received either by the division or by a 2 43 local authority. No refund shall be made to any 2 44 licensee or permittee, upon the surrender of the 2 45 license or permit, if there is at the time of 2 46 surrender, a complaint filed with the division or 2 47 local authority, charging the licensee or permittee 2 48 with a violation of this chapter. If upon a hearing 2 49 on a complaint the license or permit is not revoked or 2 50 suspended, then the licensee or permittee is eligible, 3 1 upon surrender of the license or permit, to receive a 3 2 refund as provided in this section; but if the license 3 3 or permit is revoked or suspended upon hearing the 3 4 licensee or permittee is not eligible for the refund 3 5 of any portion of the license or permit fee. 3 6 Sec. 6. Section 218.99, Code 1995, is amended to 3 7 read as follows: 3 8 218.99 COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS' 3 9 PERSONAL ACCOUNTS. 3 10 The administrator of a division of the department 3 11 of human services in control of a state institution 3 12 shall direct the business manager of each institution 3 13 under the administrator's jurisdiction which is 3 14 mentioned in section 331.424, subsection 1, paragraphs 3 15 "a"through "g"and "b" and for which services are 3 16 paid under section 331.424A to quarterly inform the 3 17 auditor of the county of legal settlement of any 3 18 patient or resident who has an amount in excess of two 3 19 hundred dollars on account in the patients' personal 3 20 deposit fund and the amount on deposit. The 3 21 administrators shall direct the business manager to 3 22 further notify the auditor of the county at least 3 23 fifteen days before the release of funds in excess of 3 24 two hundred dollars or upon the death of the patient 3 25 or resident. If the patient or resident has no county 3 26 of legal settlement, notice shall be made to the 3 27 director of the department of human services and the 3 28 administrator of the division of the department in 3 29 control of the institution involved. 3 30 Sec. 7. Section 225C.4, subsection 2, paragraph b, 3 31 Code 1995, is amended to read as follows: 3 32 b. Establish mental health and mental retardation 3 33 services for all institutions under the control of the 3 34 director of human services and establish an autism 3 35 unit, following mutual planning with and consultation 3 36 from the medical director of the state psychiatric 3 37 hospital, at an institution or a facility administered 3 38 by the administrator to provide psychiatric and 3 39 related services and other specific programs to meet 3 40 the needs of autistic personsas defined in section3 41331.424, subsection 1, and to furnish appropriate 3 42 diagnostic evaluation services. 3 43 Sec. 8. Section 331.301, subsection 12, Code 1995, 3 44 is amended to read as follows: 3 45 12. The board of supervisors may credit funds to a 3 46 reserve for the purposes authorized by subsection 11 3 47 of this section; section 331.424, subsection 1, 3 48 paragraph"l""f"; and section 331.441, subsection 2, 3 49 paragraph "b". Moneys credited to the reserve, and 3 50 interest earned on such moneys, shall remain in the 4 1 reserve until expended for purposes authorized by 4 2 subsection 11 of this section; section 331.424, 4 3 subsection 1, paragraph"l""f"; or section 331.441, 4 4 subsection 2, paragraph "b". 4 5 Sec. 9. Section 331.424, subsection 1, Code 1995, 4 6 is amended to read as follows: 4 7 1. For general county services, an amount 4 8 sufficient to pay the charges for the following: 4 9 a. To the extent that the county is obligated by 4 10 statute to pay the charges for: 4 11(1) Care and treatment of patients by a state4 12mental health institute.4 13(2) Care and treatment of patients by either of4 14the state hospital-schools or by any other facility4 15established under chapter 222 and diagnostic4 16evaluation under section 222.31.4 17(3) Care and treatment of patients under chapter4 18225.4 19(4)(1) Care and treatment of persons at the 4 20 alcoholic treatment center at Oakdale. However, the 4 21 county may require that an admission to the center 4 22 shall be reported to the board by the center within 4 23 five days as a condition of the payment of county 4 24 funds for that admission. 4 25(5)(2) Care of children admitted or committed to 4 26 the Iowa juvenile home at Toledo. 4 27(6)(3) Clothing, transportation, medical, or 4 28 other services provided persons attending the Iowa 4 29 braille and sight saving school, the Iowa school for 4 30 the deaf, or the state hospital-school for severely 4 31 handicapped children at Iowa City, for which the 4 32 county becomes obligated to pay pursuant to sections 4 33 263.12, 269.2, and 270.4 through 270.7. 4 34b. To the extent that the board deems it advisable4 35to pay, the charges for professional evaluation,4 36treatment, training, habilitation, and care of persons4 37who are mentally retarded, autistic persons, or4 38persons who are afflicted by any other developmental4 39disability, at a suitable public or private facility4 40providing inpatient or outpatient care in the county.4 41As used in this paragraph:4 42(1) "Developmental disability" has the meaning4 43assigned that term by 42 U.S.C. sec. 6001(7) (1976),4 44Supp. II, 1978, and Supp. III, 1979.4 45(2) "Autistic persons" means persons, regardless4 46of age, with severe communication and behavior4 47disorders that became manifest during the early stages4 48of childhood development and that are characterized by4 49a severely disabling inability to understand,4 50communicate, learn, and participate in social5 1relationships. "Autistic persons" includes but is not5 2limited to those persons afflicted by infantile5 3autism, profound aphasia, and childhood psychosis.5 4c. Care and treatment of persons placed in the5 5county hospital, county care facility, a health care5 6facility as defined in section 135C.1, subsection 6,5 7or any other public or private facility, which5 8placement is in lieu of admission or commitment to or5 9is upon discharge, removal, or transfer from a state5 10mental health institute, hospital-school, or other5 11facility established pursuant to chapter 222.5 12d. Amounts budgeted by the board for the cost of5 13establishment and initial operation of a community5 14mental health center in the manner and subject to the5 15limitations provided by state law.5 16e.b. Foster care and related services provided 5 17 under court order to a child who is under the 5 18 jurisdiction of the juvenile court, including court- 5 19 ordered costs for a guardian ad litem under section 5 20 232.71. 5 21f. The care, admission, commitment, and5 22transportation of mentally ill patients in state5 23hospitals, to the extent that expenses for these5 24services are required to be paid by the county,5 25including compensation for the advocate appointed5 26under section 229.19.5 27g. Amounts budgeted by the board for mental health5 28services or mental retardation services furnished to5 29persons on either an outpatient or inpatient basis, to5 30a school or other public agency, or to the community5 31at large, by a community mental health center or other5 32suitable facility located in or reasonably near the5 33county, provided that services meet the standards of5 34the mental health and developmental disabilities5 35commission created in section 225C.5 and are5 36consistent with the annual plan for services approved5 37by the board.5 38h. Reimbursement on behalf of mentally retarded5 39persons under section 249A.12.5 40i.c. Elections, and voter registration pursuant 5 41 to chapter 48A. 5 42j.d. Employee benefits under chapters 96, 97B, 5 43 and 97C, which are associated with salaries for 5 44 general county services. 5 45k.e. Joint county and city building authorities 5 46 established under section 346.27, as provided in 5 47 subsection 22 of that section. 5 48l.f. Tort liability insurance, property 5 49 insurance, and any other insurance that may be 5 50 necessary in the operation of the county, costs of a 6 1 self-insurance program, costs of a local government 6 2 risk pool, and amounts payable under any insurance 6 3 agreements to provide or procure such insurance, self- 6 4 insurance program, or local government risk pool. 6 5m.g. The maintenance and operation of the courts, 6 6 including but not limited to the salary and expenses 6 7 of the clerk of the district court and other employees 6 8 of the clerk's office, and bailiffs, court costs if 6 9 the prosecution fails or if the costs cannot be 6 10 collected from the person liable, costs and expenses 6 11 of prosecution under section 189A.17, salaries and 6 12 expenses of juvenile court officers under chapter 602, 6 13 court-ordered costs in domestic abuse cases under 6 14 section 236.5, the county's expense for confinement of 6 15 prisoners under chapter 356A, temporary assistance to 6 16 the county attorney, county contributions to a 6 17 retirement system for bailiffs, reimbursement for 6 18 judicial magistrates under section 602.6501, claims 6 19 filed under section 622.93, interpreters' fees under 6 20 section 622B.7, uniform citation and complaint 6 21 supplies under section 805.6, and costs of prosecution 6 22 under section 815.13. 6 23n.h. Court-ordered costs of conciliation 6 24 procedures under section 598.16. 6 25o.i. Establishment and maintenance of a joint 6 26 county indigent defense fund pursuant to an agreement 6 27 under section 28E.19. 6 28p.j. The maintenance and operation of a local 6 29 emergency management agency established pursuant to 6 30 chapter 29C. 6 31 The board may require a public or private facility, 6 32 as a condition of receiving payment from county funds 6 33 for services it has provided, to furnish the board 6 34 with a statement of the income, assets, and legal 6 35 residence including township and county of each person 6 36 who has received services from that facility for which 6 37 payment has been made from county funds under 6 38 paragraphs "a"through "h"and "b". However, the 6 39 facility shall not disclose to anyone the name or 6 40 street or route address of a person receiving services 6 41 for which commitment is not required, without first 6 42 obtaining that person's written permission. 6 43 Parents or other persons may voluntarily reimburse 6 44 the county or state for the reasonable cost of caring 6 45 for a patient or an inmate in a county or state 6 46 facility. 6 47 Sec. 10. NEW SECTION. 331.424A COUNTY MENTAL 6 48 HEALTH, MENTAL RETARDATION, AND DEVELOPMENTAL 6 49 DISABILITIES SERVICES FUND. 6 50 1. For the purposes of this chapter, unless the 7 1 context otherwise requires, "services fund" means the 7 2 county mental health, mental retardation, and 7 3 developmental disabilities services fund created in 7 4 subsection 2. The county finance committee created in 7 5 section 333A.2 shall consult with the state-county 7 6 management committee in adopting rules and prescribing 7 7 forms for administering the services fund. 7 8 2. For the fiscal year beginning July 1, 1996, and 7 9 succeeding fiscal years, county revenues from taxes 7 10 and other sources designated for mental health, mental 7 11 retardation, and developmental disabilities services 7 12 shall be credited to the mental health, mental 7 13 retardation, and developmental disabilities services 7 14 fund of the county. The board shall make 7 15 appropriations from the fund for payment of services 7 16 provided under the county management plan approved 7 17 pursuant to section 331.439. 7 18 3. For the fiscal year beginning July 1, 1996, and 7 19 succeeding fiscal years, receipts from the state or 7 20 federal government for such services shall be credited 7 21 to the services fund, including moneys allotted to the 7 22 county from the state payment made pursuant to section 7 23 331.439 and moneys allotted to the county for property 7 24 tax relief pursuant to section 426B.1. 7 25 4. For the fiscal year beginning July 1, 1996, and 7 26 for each subsequent fiscal year, the county shall 7 27 certify a levy for payment of services. Unless 7 28 otherwise provided by state law, for each fiscal year, 7 29 county revenues from taxes imposed by the county 7 30 credited to the services fund shall not exceed an 7 31 amount equal to the amount of base year expenditures 7 32 for services in the fiscal year beginning July 1, 7 33 1993, and ending June 30, 1994, as defined in section 7 34 331.438 less the amount of property tax relief to be 7 35 received pursuant to section 426B.2, subsections 1 and 7 36 3, in the fiscal year for which the budget is 7 37 certified. The county auditor and the board of 7 38 supervisors shall reduce the amount of the levy 7 39 certified for the services fund by the amount of 7 40 property tax relief to be received. 7 41 5. Appropriations specifically authorized to be 7 42 made from the mental health, mental retardation, and 7 43 developmental disabilities services fund shall not be 7 44 made from any other fund of the county. 7 45 Sec. 11. Section 444.25A, subsection 3, paragraph 7 46 b, subparagraph (3), Code 1995, is amended to read as 7 47 follows: 7 48 (3) Need for additional moneys for health care, 7 49 treatment, and facilities, includingmental health and7 50mental retardation care andtreatment pursuant to 8 1 section 331.424, subsection 1, paragraphs "a"through8 2"h"and "b". 8 3 Sec. 12. EFFECTIVE AND APPLICABILITY DATES. This 8 4 division of this Act takes effect January 1, 1996, and 8 5 is applicable to taxes payable in the fiscal year 8 6 beginning July 1, 1996, and subsequent fiscal years. 8 7 DIVISION III 8 8 PROPERTY TAX RELIEF PROVISIONS 8 9 Sec. 13. Section 222.60, unnumbered paragraph 1, 8 10 Code 1995, as amended by 1995 Iowa Acts, House File 8 11 483, section 12, is amended to read as follows: 8 12 All necessary and legal expenses for the cost of 8 13 admission or commitment or for the treatment, 8 14 training, instruction, care, habilitation, support and 8 15 transportation of persons with mental retardation, as 8 16 provided for in the county management plan provisions 8 17 implemented pursuant to section 331.439, subsection 1, 8 18 in a state hospital-school, or in a special unit, or 8 19 any public or private facility within or without the 8 20 state, approved by the director of the department of 8 21 human services, shall be paid by either: 8 22 Sec. 14. Section 331.438, subsection 1, paragraph 8 23 b, Code 1995, is amended to read as follows: 8 24 b. "State payment" means the payment made by the 8 25 state to a county determined to be eligible for the 8 26 payment in accordance with section 331.439. 8 27 1A. Except as modified based upon the actual 8 28 amount of the appropriation for purposes of state 8 29 payment under section 331.439, the amount of the state 8 30 payment for a fiscal year shall be calculatedas fifty8 31percent of the amount by which the county's qualified8 32expenditures during the immediately preceding fiscal8 33year were in excess of the amount of the county's base8 34year expendituresby applying the inflation factor 8 35 adjustment established in accordance with section 8 36 331.439, subsection 3, for that fiscal year to the 8 37 amount of county expenditures for qualified services 8 38 in the previous fiscal year. A state payment is the 8 39 state funding a county receives pursuant to section 8 40 426B.2, subsection 2. Any state funding received by a 8 41 county for property tax relief in accordance with 8 42 section 426B.2, subsections 1 and 3, is not a state 8 43 payment and shall not be included in the state payment 8 44 calculation made pursuant to this subsection. 8 45 Sec. 15. Section 331.439, Code 1995, is amended by 8 46 striking the section and inserting in lieu thereof the 8 47 following: 8 48 331.439 ELIGIBILITY FOR STATE PAYMENT. 8 49 1. The state payment to eligible counties under 8 50 this section shall be made as provided in sections 9 1 331.438 and 426B.2. A county is eligible for the 9 2 state payment, as defined in section 331.438, for the 9 3 fiscal year beginning July 1, 1996, and for subsequent 9 4 fiscal years if the director of human services, in 9 5 consultation with the state-county management 9 6 committee, determines for a specific fiscal year that 9 7 all of the following conditions are met: 9 8 a. The county accurately reported by October 15 9 9 the county's expenditures for mental health, mental 9 10 retardation, and developmental disabilities services 9 11 for the previous fiscal year on forms prescribed by 9 12 the department of human services. 9 13 b. The county developed and implemented a county 9 14 management plan for the county's mental health, mental 9 15 retardation, and developmental disabilities services 9 16 in accordance with the provisions of this paragraph. 9 17 The plan shall comply with the administrative rules 9 18 adopted for this purpose by the council on human 9 19 services and is subject to the approval of the 9 20 director of human services in consultation with the 9 21 state-county management committee created in section 9 22 331.438. The plan shall include a description of the 9 23 county's service management provision for mental 9 24 health, mental retardation, and developmental 9 25 disabilities services. For mental retardation and 9 26 developmental disabilities service management, the 9 27 plan shall describe the county's development and 9 28 implementation of a managed system of cost-effective 9 29 individualized services and shall comply with the 9 30 provisions of paragraph "d". The goal of this part of 9 31 the plan shall be to assist the individuals served to 9 32 be as independent, productive, and integrated into the 9 33 community as possible. The service management 9 34 provisions for mental health shall comply with the 9 35 provisions of paragraph "c". 9 36 c. (1) For mental health service management, the 9 37 county may either directly implement a system of 9 38 service management and contract with service 9 39 providers, or contract with a private entity to manage 9 40 the system, provided all requirements of this lettered 9 41 paragraph are met by the private entity. The mental 9 42 health service management shall incorporate a single 9 43 entry point and clinical assessment process developed 9 44 in accordance with the provisions of section 331.440. 9 45 The county shall submit this part of the plan to the 9 46 department of human services for approval by April 1 9 47 for the succeeding year. Initially, this part of the 9 48 plan shall be submitted to the department by April 1, 9 49 1996, and the county shall implement the approved plan 9 50 by July 1, 1996. 10 1 (2) The basis for determining whether a managed 10 2 care system for mental health proposed by a county is 10 3 comparable to a mental health managed care contractor 10 4 approved by the department of human services shall 10 5 include but is not limited to all of the following 10 6 elements which shall be specified in administrative 10 7 rules adopted by the council on human services in 10 8 consultation with the state-county management 10 9 committee: 10 10 (a) The enrollment and eligibility process. 10 11 (b) The scope of services included. 10 12 (c) The method of plan administration. 10 13 (d) The process for managing utilization and 10 14 access to services and other assistance. 10 15 (e) The quality assurance process. 10 16 (f) The risk management provisions and fiscal 10 17 viability of the provisions, if the county contracts 10 18 with a private managed care entity. 10 19 d. For mental retardation and developmental 10 20 disabilities services management, the county must 10 21 either develop and implement a managed system of care 10 22 which addresses a full array of appropriate services 10 23 and cost-effective delivery of services or contract 10 24 with a state-approved managed care contractor or 10 25 contractors. Any system or contract implemented under 10 26 this paragraph shall incorporate a single entry point 10 27 and clinical assessment process developed in 10 28 accordance with the provisions of section 331.440. 10 29 The elements of the managed system of care and the 10 30 state-approved managed care contract or contracts 10 31 shall be specified in rules developed by the 10 32 department of human services in consultation with the 10 33 state-county management committee and adopted by the 10 34 council on human services. Initially, this part of 10 35 the plan shall be submitted to the department for 10 36 approval on or before October 1, 1996, and shall be 10 37 implemented on or before January 1, 1997. In fiscal 10 38 years succeeding the fiscal year of initial 10 39 implementation, this part of the plan shall be 10 40 submitted to the department of human services for 10 41 approval by April 1 for the succeeding fiscal year. 10 42 e. Changes to the approved plan are submitted at 10 43 least sixty days prior to the proposed change and are 10 44 not to be implemented prior to the director of human 10 45 services' approval. 10 46 2. The county management plan shall address the 10 47 county's criteria for serving persons with chronic 10 48 mental illness, including any rationale used for 10 49 decision making regarding this population. 10 50 3. a. For the fiscal year beginning July 1, 1996, 11 1 and succeeding fiscal years, the county's mental 11 2 health, mental retardation, and developmental 11 3 disabilities service expenditures for a fiscal year 11 4 are limited to a fixed budget amount. The fixed 11 5 budget amount shall be the amount identified in the 11 6 county's management plan and budget for the fiscal 11 7 year. The county shall be allowed an inflation factor 11 8 adjustment for services paid from the county's 11 9 services fund under section 331.424A which is in 11 10 accordance with the county's management plan and 11 11 budget, implemented pursuant to this section. 11 12 b. Based upon information contained in county 11 13 management plans and budgets, the state-county 11 14 management committee shall recommend an inflation 11 15 factor adjustment to the council on human services by 11 16 November 15 for the succeeding fiscal year. The 11 17 inflation factor adjustment shall address costs 11 18 associated with new consumers of service, service cost 11 19 inflation, and investments for economy and efficiency. 11 20 The council on human services shall recommend to the 11 21 governor the amount of the inflation factor adjustment 11 22 for the succeeding fiscal year for inclusion in the 11 23 governor's proposed budget for the succeeding fiscal 11 24 year. 11 25 c. If the general assembly has not revised the 11 26 amount of the inflation factor adjustment for a fiscal 11 27 year on the date county budgets must be approved and 11 28 levies must be certified for that fiscal year, the 11 29 budgets and levies shall utilize the inflation factor 11 30 adjustment for that fiscal year recommended by the 11 31 governor in the governor's proposed budget. 11 32 4. A county may provide assistance to service 11 33 populations with disabilities to which the county has 11 34 historically provided assistance but who are not 11 35 included in the service management provisions required 11 36 under subsection 1, subject to the availability of 11 37 funding. 11 38 5. Notwithstanding any other provision of law to 11 39 the contrary, a county shall have no obligation to pay 11 40 for or provide mental health, mental retardation, or 11 41 developmental disabilities services for any person 11 42 that applies through the county's single entry point 11 43 and clinical assessment process after the moneys in 11 44 the county services fund under section 331.424A are 11 45 expended. 11 46 6. A county shall implement the county's 11 47 management plan in a manner so as to provide adequate 11 48 funding for the entire fiscal year by budgeting for 11 49 ninety-nine percent of the funding anticipated to be 11 50 available for the plan. A county may expend all of 12 1 the funding anticipated to be available for the plan. 12 2 7. The director's approval of a county's mental 12 3 health, mental retardation, and developmental 12 4 disabilities services management plan shall not be 12 5 construed to constitute certification of the county's 12 6 budget. 12 7 Sec. 16. Section 331.440, subsection 1, Code 1995, 12 8 is amended by adding the following new paragraph: 12 9 NEW PARAGRAPH. c. The single entry point and 12 10 clinical assessment process shall include provision 12 11 for the county's participation in a management 12 12 information system developed in accordance with rules 12 13 adopted pursuant to subsection 3. 12 14 Sec. 17. NEW SECTION. 426B.1 APPROPRIATIONS &endash; 12 15 PROPERTY TAX RELIEF FUND. 12 16 1. A property tax relief fund is created in the 12 17 state treasury under the authority of the department 12 18 of revenue and finance. The fund shall be separate 12 19 from the general fund of the state and shall not be 12 20 considered part of the general fund of the state 12 21 except in determining the cash position of the state 12 22 for payment of state obligations. The moneys in the 12 23 fund are not subject to the provisions of section 8.33 12 24 and shall not be transferred, used, obligated, 12 25 appropriated, or otherwise encumbered except as 12 26 provided in this section. Moneys in the fund may be 12 27 used for cash flow purposes, provided that any moneys 12 28 so allocated are returned to the fund by the end of 12 29 each fiscal year. However, the fund shall be 12 30 considered a special account for the purposes of 12 31 section 8.53, relating to elimination of any GAAP 12 32 deficit. For the purposes of this chapter, unless the 12 33 context otherwise requires, "property tax relief fund" 12 34 means the property tax relief fund created in this 12 35 section. 12 36 2. There is appropriated to the property tax 12 37 relief fund for the indicated fiscal years from the 12 38 general fund of the state the following amounts: 12 39 a. For the fiscal year beginning July 1, 1995, 12 40 sixty-one million dollars. 12 41 b. For the fiscal year beginning July 1, 1996, 12 42 seventy-eight million dollars. 12 43 c. For the fiscal year beginning July 1, 1997, and 12 44 succeeding fiscal years, ninety-five million dollars. 12 45 Sec. 18. NEW SECTION. 426B.2 PROPERTY TAX RELIEF 12 46 FUND DISTRIBUTIONS. 12 47 Moneys in the property tax relief fund shall be 12 48 utilized in each fiscal year as follows in the order 12 49 listed: 12 50 1. The first sixty-one million dollars plus the 13 1 amount paid pursuant to subsection 3 in the previous 13 2 fiscal year in the property tax relief fund shall be 13 3 distributed to counties under this subsection. A 13 4 county's proportion of the moneys shall be equivalent 13 5 to the sum of the following three factors: 13 6 a. One-third based upon the county's proportion of 13 7 the state's general population. 13 8 b. One-third based upon the county's proportion of 13 9 the state's total taxable property valuation assessed 13 10 for taxes payable in the previous fiscal year. 13 11 c. One-third based upon the county's proportion of 13 12 all counties' base year expenditures, as defined in 13 13 section 331.438. 13 14 Moneys provided to a county for property tax relief 13 15 in a fiscal year in accordance with this section shall 13 16 not be less than the amount provided for property tax 13 17 relief in the previous fiscal year. 13 18 2. Payment of moneys to eligible counties of the 13 19 state payment in accordance with the provisions of 13 20 sections 331.438 and 331.439. 13 21 3. For the fiscal year beginning July 1, 1996, and 13 22 succeeding fiscal years, the department of human 13 23 services shall estimate the amount of moneys required 13 24 for the state payment pursuant to subsection 2. 13 25 Moneys remaining in the property tax relief fund 13 26 following the payment made pursuant to subsection 1 13 27 and the estimated amount of the state payment pursuant 13 28 to subsection 2 shall be paid for property tax relief 13 29 in the same manner as provided in subsection 1 to 13 30 counties eligible for state payment under subsection 13 31 2. These payments shall continue until the combined 13 32 amount of the payments made under this subsection and 13 33 subsection 1 are equal to fifty percent of the total 13 34 of all counties' base year expenditures as defined in 13 35 section 331.438. The amount of moneys paid to a 13 36 county pursuant to this subsection shall be added in 13 37 subsequent fiscal years to the amount of moneys paid 13 38 under subsection 1. 13 39 4. Moneys remaining in the property tax relief 13 40 fund following the payments made pursuant to 13 41 subsections 1, 2, and 3 shall be transferred to the 13 42 homestead credit fund created in section 425.1. This 13 43 transfer shall continue until the homestead credit is 13 44 fully funded. 13 45 5. The department of human services shall notify 13 46 the director of revenue and finance of the amounts due 13 47 a county in accordance with the provisions of this 13 48 section. The director of revenue and finance shall 13 49 draw warrants on the property tax relief fund, payable 13 50 to the county treasurer in the amount due to a county 14 1 in accordance with subsections 1 and 3 and mail the 14 2 warrants to the county auditors in September and March 14 3 of each year. Warrants for the state payment in 14 4 accordance with subsection 2 shall be mailed in 14 5 January of each year. 14 6 Sec. 19. NEW SECTION. 426B.3 NOTIFICATION OF 14 7 MENTAL HEALTH, MENTAL RETARDATION, AND DEVELOPMENTAL 14 8 DISABILITIES EXPENDITURE RELIEF FUND PAYMENT. 14 9 1. The county auditor shall reduce the certified 14 10 budget amount received from the board of supervisors 14 11 for the succeeding fiscal year for the county mental 14 12 health, mental retardation, and developmental 14 13 disabilities services fund created in section 331.424A 14 14 by an amount equal to the amount the county will 14 15 receive from the property tax relief fund pursuant to 14 16 section 426B.2, subsections 1 and 3, for the 14 17 succeeding fiscal year and the auditor shall determine 14 18 the rate of taxation necessary to raise the reduced 14 19 amount. On the tax list, the county auditor shall 14 20 compute the amount of taxes due and payable on each 14 21 parcel before and after the amount received from the 14 22 property tax relief fund is used to reduce the county 14 23 budget. The director of revenue and finance shall 14 24 notify the county auditor of each county of the amount 14 25 of moneys the county will receive from the property 14 26 tax relief fund pursuant to section 426B.2, 14 27 subsections 1 and 3, for the succeeding fiscal year. 14 28 2. The amount of property tax dollars reduced on 14 29 each parcel as a result of the moneys received from 14 30 the property tax relief fund pursuant to section 14 31 426B.2, subsections 1 and 3, shall be noted on each 14 32 tax statement prepared by the county treasurer 14 33 pursuant to section 445.23. 14 34 Sec. 20. NEW SECTION. 426B.4 RULES. 14 35 The council on human services shall consult with 14 36 the state-county management committee created in 14 37 section 331.438 and the director of revenue and 14 38 finance in prescribing forms and adopting rules 14 39 pursuant to chapter 17A to administer this chapter. 14 40 Sec. 21. PROPERTY TAX RELIEF &endash; FISCAL YEAR 1995- 14 41 1996. For the fiscal year beginning July 1, 1995, the 14 42 department of management shall notify each county 14 43 auditor by June 1, 1995, of the amount the county will 14 44 receive from the property tax relief fund for property 14 45 tax relief pursuant to section 426B.2, subsection 1, 14 46 for that fiscal year. The county auditor shall reduce 14 47 by the notified amount the amount of the county's 14 48 certified budget to be raised by property tax for that 14 49 fiscal year which is to be expended for mental health, 14 50 mental retardation, and developmental disabilities 15 1 services and shall revise the rate of taxation as 15 2 necessary to raise the reduced amount. The county 15 3 auditor shall report the reduction in the certified 15 4 budget and the revised rate of taxation to the 15 5 department of management by June 30, 1995. 15 6 Sec. 22. FUNDING OF SESSION LAW REQUIREMENTS. If 15 7 the appropriations in section 426B.1, subsection 2, as 15 8 created in this division of this Act, are enacted by 15 9 this Act, the requirements of 1994 Iowa Acts, chapter 15 10 1163, section 8, subsection 2, to fully fund 15 11 provisions of sections 331.438 and 331.439 shall be 15 12 considered to be met and the repeals contained in 1994 15 13 Iowa Acts, chapter 1163, section 8, subsection 2, 15 14 shall be void. 15 15 Sec. 23. STATE-COUNTY MANAGEMENT COMMITTEE REVIEW 15 16 &endash; 1995 INTERIM. The state-county management 15 17 committee created in section 331.438 shall review 15 18 statutory provisions and administrative rules which 15 19 are intended to regulate and contain county 15 20 expenditures for mental health, mental retardation, 15 21 and developmental disabilities (MH/MR/DD) services and 15 22 the formula for distribution of property tax relief 15 23 moneys to counties under section 426B.2. The 15 24 committee should consider proposals from counties and 15 25 other interested persons for a distribution formula 15 26 factor which rewards or provides incentives for 15 27 economy and efficiency in providing mental health, 15 28 mental retardation, and developmental disabilities 15 29 services; and a mechanism for a county to appeal to 15 30 the state if it is believed the county is unfairly 15 31 treated under an established funding formula. In 15 32 addition, the committee shall consider tort and other 15 33 liability issues associated with a county managing 15 34 MH/MR/DD expenditures in accordance with a fixed 15 35 budget and make recommendations to address the issues. 15 36 The committee shall review the dates required under 15 37 section 331.439 and chapter 426B, as enacted by this 15 38 Act and make recommendations for change if revisions 15 39 are deemed necessary. The committee shall report to 15 40 the governor and the general assembly on or before 15 41 December 1, 1995. 15 42 Sec. 24. LEVY STUDY. The county finance committee 15 43 created in chapter 333A shall consult with any 15 44 interested parties in studying the ramifications of 15 45 consolidating the county general basic levies and the 15 46 general supplemental levies and other proposals 15 47 involving the levies. The committee shall be assisted 15 48 by four legislators with one each appointed by the 15 49 following leaders: majority leader of the senate, 15 50 minority leader of the senate, speaker of the house of 16 1 representatives, and minority leader of the house of 16 2 representatives. The legislative appointees are 16 3 eligible for per diem and actual expenses for their 16 4 assistance to the committee. The committee shall 16 5 report to the governor and the general assembly with 16 6 findings and recommendations on or before January 4, 16 7 1996. 16 8 Sec. 25. EFFECTIVE DATE. Section 21 of this 16 9 division of this Act, relating to property tax relief 16 10 for fiscal year 1995-1996, being deemed of immediate 16 11 importance, takes effect upon enactment. 16 12 DIVISION IV 16 13 COUNTY PROPERTY TAX LIMITATION 16 14 Sec. 26. Section 444.25A, subsection 1, Code 1995, 16 15 is amended to read as follows: 16 16 1. COUNTY LIMITATION. The maximum amount of 16 17 property tax dollars which may be certified by a 16 18 county for taxes payable in the fiscal year beginning 16 19 July 1, 1995, shall not exceed the amount of property 16 20 tax dollars certified by the county for taxes payable 16 21 in the fiscal year beginning July 1, 1994, minus the 16 22 amount of property tax relief moneys to be received by 16 23 the county for the fiscal year beginning July 1, 1995, 16 24 pursuant to section 426B.2, subsection 1, and the 16 25 maximum amount of property tax dollars which may be 16 26 certified by a county for taxes payable in the fiscal 16 27 year beginning July 1, 1996, shall not exceed the 16 28 amount of property tax dollars certified by the county 16 29 for taxes payable in the fiscal year beginning July 1, 16 30 1995, minus the amount by which the property tax 16 31 relief moneys to be received by the county in the 16 32 fiscal year beginning July 1, 1996, pursuant to 16 33 section 426B.2, subsections 1 and 3, exceeds the 16 34 amount of the property tax relief moneys received in 16 35 the fiscal year beginning July 1, 1995, for each of 16 36 the levies for the following, except for the levies on 16 37 the increase in taxable valuation due to new 16 38 construction, additions or improvements to existing 16 39 structures, remodeling of existing structures for 16 40 which a building permit is required, annexation, and 16 41 phasing out of tax exemptions, and on the increase in 16 42 valuation of taxable property as a result of a 16 43 comprehensive revaluation by a private appraiser under 16 44 a contract entered into prior to January 1, 1992, or 16 45 as a result of a comprehensive revaluation directed or 16 46 authorized by the conference board prior to January 1, 16 47 1992, with documentation of the contract, 16 48 authorization, or directive on the revaluation 16 49 provided to the director of revenue and finance, if 16 50 the levies are equal to or less than the levies for 17 1 the previous year, levies on that portion of the 17 2 taxable property located in an urban renewal project 17 3 the tax revenues from which are no longer divided as 17 4 provided in section 403.19, subsection 2, or as 17 5 otherwise provided in this section: 17 6 a. General county services under section 331.422, 17 7 subsection 1. 17 8 b. Rural county services under section 331.422, 17 9 subsection 2. 17 10 c. Other taxes under section 331.422, subsection 17 11 4. 17 12 Sec. 27. NEW SECTION. 444.25B PROPERTY TAX 17 13 LIMITATION FOR FISCAL YEAR 1998. 17 14 1. COUNTY LIMITATION. The maximum amount of 17 15 property tax dollars which may be certified by a 17 16 county for taxes payable in the fiscal year beginning 17 17 July 1, 1997, shall not exceed the amount of property 17 18 tax dollars certified by the county for taxes payable 17 19 in the fiscal year beginning July 1, 1996, minus the 17 20 amount by which the property tax relief moneys to be 17 21 received by the county in the fiscal year beginning 17 22 July 1, 1997, pursuant to section 426B.2, subsections 17 23 1 and 3, exceeds the amount of the property tax relief 17 24 moneys received in the fiscal year beginning July 1, 17 25 1996, for each of the levies for the following, except 17 26 for the levies on the increase in taxable valuation 17 27 due to new construction, additions or improvements to 17 28 existing structures, remodeling of existing structures 17 29 for which a building permit is required, annexation, 17 30 and phasing out of tax exemptions, and on the increase 17 31 in valuation of taxable property as a result of a 17 32 comprehensive revaluation by a private appraiser under 17 33 a contract entered into prior to January 1, 1992, or 17 34 as a result of a comprehensive revaluation directed or 17 35 authorized by the conference board prior to January 1, 17 36 1992, with documentation of the contract, 17 37 authorization, or directive on the revaluation 17 38 provided to the director of revenue and finance, if 17 39 the levies are equal to or less than the levies for 17 40 the previous year, levies on that portion of the 17 41 taxable property located in an urban renewal project 17 42 the tax revenues from which are no longer divided as 17 43 provided in section 403.19, subsection 2, or as 17 44 otherwise provided in this section: 17 45 a. General county services under section 331.422, 17 46 subsection 1. 17 47 b. Rural county services under section 331.422, 17 48 subsection 2. 17 49 c. Other taxes under section 331.422, subsection 17 50 4. 18 1 2. EXCEPTIONS. The limitations provided in 18 2 subsection 1 do not apply to the levies made for the 18 3 following: 18 4 a. Debt service to be deposited into the debt 18 5 service fund pursuant to section 331.430. 18 6 b. Taxes approved by a vote of the people which 18 7 are payable during the fiscal year beginning July 1, 18 8 1997. 18 9 c. Hospitals pursuant to chapters 37, 347, and 18 10 347A. 18 11 d. Emergency management to be deposited into the 18 12 local emergency management fund and expended for 18 13 development of hazardous substance teams pursuant to 18 14 chapter 29C. 18 15 e. Unusual need for additional moneys to finance 18 16 existing programs which would provide substantial 18 17 benefit to county residents or compelling need to 18 18 finance new programs which would provide substantial 18 19 benefit to county residents. The increase in taxes 18 20 levied under this exception for the fiscal year 18 21 beginning July 1, 1997, is limited to no more than the 18 22 product of the total tax dollars levied in the fiscal 18 23 year beginning July 1, 1996, and the percent change, 18 24 computed to two decimal places, in the price index for 18 25 government purchases by type for state and local 18 26 governments computed for the third quarter of calendar 18 27 year 1996 from that computed for the third quarter of 18 28 calendar year 1995. 18 29 For purposes of this paragraph, the price index for 18 30 government purchases by type for state and local 18 31 governments is defined by the bureau of economic 18 32 analysis of the United States department of commerce 18 33 and published in table 7.11 of the national income and 18 34 products accounts. For the fiscal year beginning July 18 35 1, 1997, the price index used shall be the revision 18 36 published in the November 1996 edition of the United 18 37 States department of commerce publication, "survey of 18 38 current business". For purposes of this paragraph, 18 39 tax dollars levied in the fiscal year beginning July 18 40 1, 1996, shall not include funds levied for paragraphs 18 41 "a", "b", and "c" of this subsection. 18 42 Application of this exception shall require an 18 43 original publication of the budget and a public 18 44 hearing and a second publication and a second hearing 18 45 both in the manner and form prescribed by the director 18 46 of the department of management, notwithstanding the 18 47 provisions of section 331.434. The publications and 18 48 hearings prescribed in this paragraph shall be held 18 49 and the budget certified no later than March 15. The 18 50 taxes levied for counties whose budgets are certified 19 1 after March 15, 1997, shall be frozen at the fiscal 19 2 year beginning July 1, 1996, level. 19 3 3. APPEAL PROCEDURES. In lieu of the procedures 19 4 in sections 24.48 and 331.426, which procedures do not 19 5 apply for taxes payable in the fiscal year beginning 19 6 July 1, 1997, if a county needs to raise property tax 19 7 dollars from a tax levy in excess of the limitations 19 8 imposed by subsection 1, the following procedures 19 9 apply: 19 10 a. Not later than March 1, and after the 19 11 publication and public hearing on the budget in the 19 12 manner and form prescribed by the director of the 19 13 department of management, notwithstanding section 19 14 331.434, the county shall petition the state appeal 19 15 board for approval of a property tax increase in 19 16 excess of the increase provided for in subsection 2, 19 17 paragraph "e", on forms furnished by the director of 19 18 the department of management. Applications received 19 19 after March 1 shall be automatically ineligible for 19 20 consideration by the board. 19 21 b. Additional costs incurred by the county due to 19 22 any of the following circumstances shall be the basis 19 23 for justifying the excess in property tax dollars: 19 24 (1) Natural disaster or other life-threatening 19 25 emergencies. 19 26 (2) Unusual need for additional moneys to finance 19 27 existing programs which would provide substantial 19 28 benefit to county residents or compelling need to 19 29 finance new programs which would provide substantial 19 30 benefit to county residents. 19 31 (3) Need for additional moneys for health care, 19 32 treatment, and facilities pursuant to section 331.424, 19 33 subsection 1, paragraphs "a" and "b". 19 34 (4) Judgments, settlements, and related costs 19 35 arising out of civil claims against the county and its 19 36 officers, employees, and agents, as defined in chapter 19 37 670. 19 38 c. The state appeal board shall approve, 19 39 disapprove, or reduce the amount of excess property 19 40 tax dollars requested. The board shall take into 19 41 account the intent of this section to provide property 19 42 tax relief. The decision of the board shall be 19 43 rendered at a regular or special meeting of the board 19 44 within twenty days of the board's receipt of an 19 45 appeal. 19 46 d. Within seven days of receipt of the decision of 19 47 the state appeal board, the county shall adopt and 19 48 certify its budget under section 331.434, which budget 19 49 may be protested as provided in section 331.436. The 19 50 budget shall not contain an amount of property tax 20 1 dollars in excess of the amount approved by the state 20 2 appeal board. 20 3 4. Rate adjustment by county auditor. In addition 20 4 to the requirement of the county auditor in section 20 5 444.3 to establish a rate of tax which does not exceed 20 6 the rate authorized by law, the county auditor shall 20 7 also adjust the rate if the amount of property tax 20 8 dollars to be raised is in excess of the amount 20 9 specified in subsection 1, as may be adjusted pursuant 20 10 to subsection 3. 20 11 Sec. 28. Section 444.27, Code 1995, is amended to 20 12 read as follows: 20 13 444.27 SECTIONS VOID. 20 14 1. For purposes of section 444.25, sections 24.48 20 15 and 331.426 are void for the fiscal years beginning 20 16 July 1, 1993, and July 1, 1994. For purposes of 20 17 section 444.25A, sections 24.48 and 331.426 are void 20 18 for the fiscal years beginning July 1, 1995, and July 20 19 1, 1996. 20 20 2. For purposes of section 444.25B, sections 24.48 20 21 and 331.426 are void for the fiscal year beginning 20 22 July 1, 1997. 20 23 DIVISION V 20 24 INDUSTRIAL MACHINERY, EQUIPMENT AND COMPUTERS PROPERTY 20 25 TAX 20 26 EXEMPTION AND REPLACEMENT 20 27 Sec. 29. Section 427B.17, Code 1995, is amended to 20 28 read as follows: 20 29 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 20 30 1. For property defined in section 427A.1, 20 31 subsection 1, paragraphs "e" and "j", acquired or 20 32 initially leased on or after January 1, 1982, the 20 33 taxpayer's valuation shall be limited to thirty 20 34 percent of the net acquisition cost of the property, 20 35 except as otherwise provided in subsections 2 and 3. 20 36 For purposes of this section, "net acquisition cost" 20 37 means the acquired cost of the property including all 20 38 foundations and installation cost less any excess cost 20 39 adjustment. 20 40 For purposes of thissectionsubsection: 20 411. Property assessed by the department of revenue20 42and finance pursuant to sections 428.24 to 428.29, or20 43chapters 433, 434 and 436 to 438 shall not receive the20 44benefits of this section.20 452.a. Property acquired before January 1, 1982, 20 46 which was owned or used before January 1, 1982, by a 20 47 related person shall not receive the benefits of this 20 48sectionsubsection. 20 493.b. Property acquired on or after January 1, 20 50 1982, which was owned and used by a related person 21 1 shall not receive any additional benefits under this 21 2sectionsubsection. 21 34.c. Property which was owned or used before 21 4 January 1, 1982, and subsequently acquired by an 21 5 exchange of like property shall not receive the 21 6 benefits of thissectionsubsection. 21 75.d. Property which was acquired on or after 21 8 January 1, 1982, and subsequently exchanged for like 21 9 property shall not receive any additional benefits 21 10 under thissectionsubsection. 21 116.e. Property acquired before January 1, 1982, 21 12 which is subsequently leased to a taxpayer or related 21 13 person who previously owned the property shall not 21 14 receive the benefits of thissectionsubsection. 21 157.f. Property acquired on or after January 1, 21 16 1982, which is subsequently leased to a taxpayer or 21 17 related person who previously owned the property shall 21 18 not receive any additional benefits under thissection21 19 subsection. 21 20 For purposes of thissectionsubsection, "related 21 21 person" means a person who owns or controls the 21 22 taxpayer's business and another business entity from 21 23 which property is acquired or leased or to which 21 24 property is sold or leased. Business entities are 21 25 owned or controlled by the same person if the same 21 26 person directly or indirectly owns or controls fifty 21 27 percent or more of the assets or any class of stock or 21 28 who directly or indirectly has an interest of fifty 21 29 percent or more in the ownership or profits. 21 30 2. Property defined in section 427A.1, subsection 21 31 1, paragraphs "e" and "j", which is first assessed for 21 32 taxation in this state on or after January 1, 1995, 21 33 shall be exempt from taxation. 21 34 3. Property defined in section 427A.1, subsection 21 35 1, paragraphs "e" and "j", and assessed under section 21 36 427B.17, subsection 1, shall be valued by the local 21 37 assessor as follows for the following assessment 21 38 years: 21 39 a. For the assessment year beginning January 1, 21 40 1999, at twenty-two percent of the net acquisition 21 41 cost. 21 42 b. For the assessment year beginning January 1, 21 43 2000, at fourteen percent of the net acquisition cost. 21 44 c. For the assessment year beginning January 1, 21 45 2001, at six percent of the net acquisition cost. 21 46 d. For the assessment year beginning January 1, 21 47 2002, and succeeding assessment years, at zero percent 21 48 of the net acquisition cost. 21 49 4. Property assessed pursuant to this section 21 50 shall not be eligible to receive a partial exemption 22 1 under sections 427B.1 to 427B.6. 22 2 5. This section shall not apply to property 22 3 assessed by the department of revenue and finance 22 4 pursuant to sections 428.24 to 428.29, or chapters 22 5 433, 434, and 436 to 438, and such property shall not 22 6 receive the benefits of this section. 22 7 Any electric power generating plant which operated 22 8 during the preceding assessment year at a net capacity 22 9 factor of more than twenty percent, shall not receive 22 10 the benefits of this section or of sections 15.332 and 22 11 15.334. For purposes of this section, "electric power 22 12 generating plant" means any name plate rated electric 22 13 power generating plant, in which electric energy is 22 14 produced from other forms of energy, including all 22 15 taxable land, buildings, and equipment used in the 22 16 production of such energy. "Net capacity factor" 22 17 means net actual generation divided by the product of 22 18 net maximum capacity times the number of hours the 22 19 unit was in the active state during the assessment 22 20 year. Upon commissioning, a unit is in the active 22 21 state until it is decommissioned. "Net actual 22 22 generation" means net electrical megawatt hours 22 23 produced by the unit during the preceding assessment 22 24 year. "Net maximum capacity" means the capacity the 22 25 unit can sustain over a specified period when not 22 26 restricted by ambient conditions or equipment 22 27 deratings, minus the losses associated with station 22 28 service or auxiliary loads. 22 29 6. The taxpayer's valuation of property defined in 22 30 section 427A.1, subsection 1, paragraphs "e" and "j", 22 31 and located in an urban renewal area for which an 22 32 urban renewal plan provides for the division of taxes 22 33 as provided in section 403.19 to pay the principal and 22 34 interest on loans, advances, bonds issued under the 22 35 authority of section 403.9, subsection 1, or 22 36 indebtedness incurred by a city or county to finance 22 37 an urban renewal project within the urban renewal 22 38 area, if such loans, advances, or bonds were issued or 22 39 indebtedness incurred, on or after January 1, 1982, 22 40 and on or before June 30, 1995, shall be limited to 22 41 thirty percent of the net acquisition cost of the 22 42 property. Such property located in an urban renewal 22 43 area shall not be valued pursuant to subsection 2 or 22 44 3, whichever is applicable, until the assessment year 22 45 following the calendar year in which the obligations 22 46 created by any loans, advances, bonds, or indebtedness 22 47 payable from the division of taxes as provided in 22 48 section 403.19 have been retired. The taxpayer's 22 49 valuation for such property shall then be the 22 50 valuation specified in subsection 2 or 3, whichever is 23 1 applicable, for the applicable assessment year. If 23 2 the loans, advances, or bonds issued, or indebtedness 23 3 incurred between January 1, 1982, and June 30, 1995, 23 4 are refinanced or refunded after June 30, 1995, the 23 5 valuation of such property shall then be the valuation 23 6 specified in subsection 2 or 3, whichever is 23 7 applicable, for the applicable assessment year 23 8 beginning with the assessment year following the 23 9 calendar year in which any of those loans, advances, 23 10 bonds, or other indebtedness are refinanced or 23 11 refunded after June 30, 1995. 23 12 7. For the purpose of dividing taxes under section 23 13 260E.4 or 260F.4, the employer's or business's 23 14 valuation of property defined in section 427A.1, 23 15 subsection 1, paragraphs "e" and "j", and used to fund 23 16 a new jobs training project which project's first 23 17 written agreement providing for a division of taxes as 23 18 provided in section 403.19 is approved on or before 23 19 June 30, 1995, shall be limited to thirty percent of 23 20 the net acquisition cost of the property. An 23 21 employer's or business's taxable property used to fund 23 22 a new jobs training project shall not be valued 23 23 pursuant to subsection 2 or 3, whichever is 23 24 applicable, until the assessment year following the 23 25 calendar year in which the certificates or other 23 26 funding obligations have been retired or escrowed. 23 27 The taxpayer's valuation for such property shall then 23 28 be the valuation specified in subsection 1 for the 23 29 applicable assessment year. If the certificates 23 30 issued, or other funding obligations incurred, between 23 31 January 1, 1982, and June 30, 1995, are refinanced or 23 32 refunded after June 30, 1995, the valuation of such 23 33 property shall then be the valuation specified in 23 34 subsection 2 or 3, whichever is applicable, for the 23 35 applicable assessment year beginning with the 23 36 assessment year following the calendar year in which 23 37 those certificates or other funding obligations are 23 38 refinanced or refunded after June 30, 1995. 23 39 Sec. 30. NEW SECTION. 427B.18 REPLACEMENT. 23 40 Beginning with the fiscal year beginning July 1, 23 41 1996, each county treasurer shall be paid from the 23 42 industrial machinery, equipment and computers 23 43 replacement fund an amount equal to the amount of the 23 44 industrial machinery, equipment and computers tax 23 45 replacement claim, as calculated in section 427B.19. 23 46 Sec. 31. NEW SECTION. 427B.19 ASSESSOR AND 23 47 COUNTY AUDITOR DUTIES. 23 48 1. On or before July 1 of each fiscal year, the 23 49 assessor shall determine the total assessed value of 23 50 the property assessed under section 427B.17 for taxes 24 1 payable in that fiscal year and the total assessed 24 2 value of such property assessed as of January 1, 1994, 24 3 and shall report the valuations to the county auditor. 24 4 2. On or before July 1 of each fiscal year, the 24 5 assessor shall determine the valuation of all 24 6 commercial and industrial property assessed for taxes 24 7 payable in that fiscal year and the valuation of such 24 8 property assessed as of January 1, 1994, and shall 24 9 report the valuations to the county auditor. 24 10 3. On or before July 1, 1996, and on or before 24 11 July 1 of each succeeding fiscal year through June 30, 24 12 2006, the county auditor shall prepare a statement, 24 13 based upon the report received pursuant to subsections 24 14 1 and 2, listing for each taxing district in the 24 15 county: 24 16 a. Beginning with the assessment year beginning 24 17 January 1, 1995, the difference between the assessed 24 18 valuation of property assessed pursuant to section 24 19 427B.17 for that year and the total assessed value of 24 20 such property assessed as of January 1, 1994. If the 24 21 total assessed value of the property assessed as of 24 22 January 1, 1994, is less, there is no tax replacement 24 23 for the fiscal year. 24 24 b. The tax levy rate for each taxing district for 24 25 that fiscal year. 24 26 c. The industrial machinery, equipment and 24 27 computers tax replacement claim for each taxing 24 28 district. For fiscal years beginning July 1, 1996, 24 29 and ending June 30, 2001, the replacement claim is 24 30 equal to the amount determined pursuant to paragraph 24 31 "a", multiplied by the tax rate specified in paragraph 24 32 "b". For fiscal years beginning July 1, 2001, and 24 33 ending June 30, 2006, the replacement claim is equal 24 34 to the product of the amount determined pursuant to 24 35 paragraph "a", less any increase in valuations 24 36 determined in paragraph "d", and the tax rate 24 37 specified in paragraph "b". If the amount subtracted 24 38 under paragraph "d" is more than the amount determined 24 39 in paragraph "a", there is no tax replacement for the 24 40 fiscal year. 24 41 d. Beginning with the assessment year beginning 24 42 January 1, 2000, the auditor shall reduce the amount 24 43 listed in paragraph "a", by the increase, if any, in 24 44 assessed valuations of commercial and industrial 24 45 property in the assessment year beginning January 1, 24 46 1994, and the assessment year for which taxes are due 24 47 and payable in that fiscal year. If the calculation 24 48 under this paragraph indicates a net decrease in 24 49 aggregate valuation of such property, the industrial 24 50 machinery, equipment and computers tax replacement 25 1 claim for each taxing district is equal to the amount 25 2 determined pursuant to paragraph "a", multiplied by 25 3 the tax rate specified in paragraph "b". 25 4 4. The county auditor shall certify and forward 25 5 one copy of the statement to the department of revenue 25 6 and finance not later than July 1 of each year. 25 7 Sec. 32. NEW SECTION. 427B.19A FUND CREATED. 25 8 1. The industrial machinery, equipment and 25 9 computers property tax replacement fund is created. 25 10 For the fiscal year beginning July 1, 1996, through 25 11 the fiscal year ending June 30, 2006, there is 25 12 appropriated annually from the general fund of the 25 13 state to the department of revenue and finance to be 25 14 credited to the industrial machinery, equipment and 25 15 computers property tax replacement fund, an amount 25 16 sufficient to implement this division. 25 17 2. If an amount appropriated for a fiscal year is 25 18 insufficient to pay all claims, the director shall 25 19 prorate the disbursements from the fund to the county 25 20 treasurers and shall notify the county auditors of the 25 21 pro rata percentage on or before August 1. 25 22 3. The replacement claims shall be paid to each 25 23 county treasurer in equal installments in September 25 24 and March of each year. The county treasurer shall 25 25 apportion the replacement claim payments among the 25 26 eligible taxing districts in the county. 25 27 Sec. 33. NEW SECTION. 427B.19B GUARANTEE OF 25 28 STATE REPLACEMENT FUNDS. 25 29 For the fiscal years beginning July 1, 1996, and 25 30 ending June 30, 2006, if the industrial machinery, 25 31 equipment and computers property tax replacement fund 25 32 is insufficient to pay in full the total of the 25 33 amounts certified to the director of revenue and 25 34 finance, the director shall compute for each county 25 35 the difference between the total of all replacement 25 36 claims for each taxing district within the county and 25 37 the amount paid to the county treasurer for 25 38 disbursement to each taxing district in the county. 25 39 The assessor, for the assessment year for which taxes 25 40 are due and payable in the fiscal year for which a 25 41 sufficient appropriation was not made, shall revalue 25 42 all industrial machinery, equipment and computers 25 43 described in section 427B.17, subsections 2 and 3, in 25 44 the county at a percentage of net acquisition cost 25 45 which will yield from each taxing district its 25 46 shortfall and the property shall be assessed and taxed 25 47 in such manner for taxes due and payable in the 25 48 following fiscal year in addition to being assessed 25 49 and taxed in the applicable manner under section 25 50 427B.17. When conducting the revaluation, the 26 1 assessor shall increase the percentage of net 26 2 acquisition cost of such property by the same 26 3 percentage point. Property tax dollar amounts 26 4 certified pursuant to this section shall not be 26 5 considered property tax dollars certified for purposes 26 6 of the property tax limitation in chapter 444. 26 7 Sec. 34. Section 257.3, subsection 1, Code 1995, 26 8 is amended by adding the following new unnumbered 26 9 paragraph: 26 10 NEW UNNUMBERED PARAGRAPH. The amount paid to each 26 11 school district for the tax replacement claim for 26 12 industrial machinery, equipment and computers under 26 13 section 427B.19A shall be regarded as property tax. 26 14 The portion of the payment which is foundation 26 15 property tax shall be determined by applying the 26 16 foundation property tax rate to the amount computed 26 17 under section 427B.19, subsection 3, paragraph "a", as 26 18 adjusted by paragraph "d", if any adjustment was made. 26 19 DIVISION VI 26 20 FISCAL YEAR 1996 PAYMENT 26 21 Sec. 35. FISCAL YEAR 1996 RELIEF FUND PAYMENT. 26 22 Notwithstanding 1995 Iowa Acts, House File 132, 26 23 section 13, the appropriation in that section shall 26 24 not be made from the general fund of the state but 26 25 shall be made from the property tax relief fund 26 26 created in section 426B.1, as enacted by this Act. 26 27 Notwithstanding section 426B.2, subsection 2, as 26 28 enacted by this Act, for the fiscal year beginning 26 29 July 1, 1995, the amount of moneys distributed under 26 30 #2. Title page, by striking lines 1 through 4 and 26 31 inserting the following: "An Act relating to tax 26 32 provisions involving state income tax, certain county 26 33 property tax and services associated with mental 26 34 health and developmental disabilities services, the 26 35 county property tax limitation, and property tax on 26 36 industrial machinery, equipment and computers, 26 37 providing appropriations, and providing effective and 26 38 applicability dates.""" 26 39 26 40 26 41 26 42 TOM VILSACK 26 43 SF 69.69 26 44 jp/cc/26
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