1996 SUMMARY OF LEGISLATION

APPROPRIATIONS

APPROPRIATIONS LEGISLATION

SENATE FILE 2195 - Iowa Communications Network Appropriations (full text of bill)

BY COMMITTEE ON COMMUNICATIONS AND INFORMATION POLICY. This Act appropriates moneys from the General Fund of the State and the Rebuild Iowa Infrastructure Fund to the Iowa Communications Network Fund for FY 1996-1997 for debt service, the connection of a minimum of 110 Part III authorized users, the subsidization of video rates for certain authorized users, maintenance and lease costs, and support services. The Act also appropriates moneys to the State Board of Regents for the Center for Educational Technology at the University of Northern Iowa to coordinate staff development for educators using educational technology in Iowa.
The Act provides that the Iowa Communications and Technology Commission must lease DS-1 or T-1 circuits for Part III connections currently using analog technology. The Act also directs the commission to develop recommendations concerning the expenses that should be recovered in the rates established by the commission for use of the network. The Act also provides that the Education Telecommunications Council and regional telecommunications councils must give priority to network video usage during normal school hours for grades prekindergarten through 12 at those video sites located within school district facilities. The Act authorizes the commission to negotiate a contract with Sooland Cable involving the connection of five Part III sites and providing for a single lump-sum payment that will result in savings associated with making those connections.
The Act also provides for the connection of five additional Part III sites not identified in the original Part III request for proposals, and for construction and state ownership of a connection to the network for Lewis Central High School in Council Bluffs. The provision authorizing construction and state ownership of a connection to the network for Lewis Central High School takes effect May 10, 1996.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. An appropriation of $220,000 to the Iowa Communications Network Fund for establishing and maintaining a spare parts depot related to the network.
• 2. An appropriation of $110,000 to the Iowa Communications Network Fund for the purchase of computer equipment to be used in connection with the network, providing for connections to the Internet through the use of the network, and maintaining the regional scheduling system.

SENATE FILE 2442 - Appropriations -- Human Services (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations to the Department of Human Services (DHS) and to the Prevention of Disabilities Policy Council for FY 1996-1997, and includes provisions relating to human services and health.

FAMILY INVESTMENT PROGRAM. The appropriation for the Family Investment Program (FIP), formerly known as Aid to Families with Dependent Children or AFDC, is approximately 10 percent less than the amount for the previous fiscal year. Other appropriations in the Act directly connected with FIP include transitional child care, the JOBS Program, and Medical Assistance. The Act includes language in the general administration appropriation authorizing DHS to change participant reporting requirements for food stamps, FIP and Medical Assistance if the change would reduce paperwork for participants and DHS staff. See the summaries of H.F. 2486 and S.F. 2324 (see Children & Youth for this and other FIP-related legislation).

EMERGENCY ASSISTANCE. This appropriation increases the level of assistance to recipients to prevent homelessness compared with the adjusted FY 1995-1996 level appropriation. The Act establishes a maximum grant level of $500 per family in any 12-month period. The Act also requires DHS to continue the process of receiving refunds of rental deposits for recipients of emergency assistance paid by persons other than the state. The moneys received as refunds of rental deposits are not to revert to the General Fund of the State at the end of the fiscal year, but are to remain available for expenditure in the next fiscal year. Additionally, the appropriation allocates $10,000 to the Community Voice Mail Program to continue the existing program.

MEDICAL ASSISTANCE (Medicaid). The appropriation for Medical Assistance (MA) is an increase over the FY 1995-1996 appropriation. The Act also does all of the following:

• Authorizes DHS to transfer funds appropriated for MA to a separate account for expenditures required to provide case management services under MA for mental health, mental retardation and developmental disabilities services which are jointly funded by the state and county, pending final settlement of the expenditures.
• Specifies that the county of legal settlement of a recipient of MA, who is older than 17 years of age and who is receiving various types of services, is to reimburse DHS for the nonfederal share of the costs of these services.
• Allows DHS to adopt and implement rules regarding the prepaid mental health services plan for MA recipients and requires the state to pay 100 percent of the nonfederal share of any services included in the plan implemented.
• Provides for expenditure of not more than $60,000 to continue the previously established AIDS/HIV Health Insurance Premium Payment Program.
• Transfers $950,000 from the Iowa Department of Public Health to the MA program for continuation of the Integrated Substance Abuse Managed Care System.
• Directs DHS to implement a new MA home and community-based waiver for persons with physical disabilities as a means to further develop the Personal Assistance Services Program. The program is to be implemented in a manner that does not require additional county or state funding for assistance provided under the waiver.
• Allows DHS to expand the Drug Prior Authorization Program to include proton pump inhibitors, but prohibits DHS from expanding the prior authorization requirement without prior approval of the General Assembly, except to require prior authorization of an equivalent of a prescription drug which is subject to prior authorization as of June 30, 1996.
• Directs DHS, in consultation with the Iowa Department of Public Health and the Department of Education, to develop and implement a proposal to utilize the early and periodic screening, diagnosis and treatment (EPSDT) funding under MA, to the extent possible, to implement the screening component through the school system utilizing maternal and child health centers, the Public Health Nursing Program, or school nurses.
• Directs DHS to implement the case study for outcome-based performance standards for programs serving persons with mental retardation or other developmental disabilities.
• Directs DHS to submit a report to the General Assembly on or before January 1, 1997, regarding reimbursement for teleconsultive services provided by health care providers to MA recipients.
• Provides that a member of the Joint Appropriations Subcommittee on Human Services is entitled to per diem and expenses for participation in a planning process for long-term care which takes place during the 1996 Legislative Interim.

MEDICAL CONTRACTS. This appropriation is increased compared with the FY 1995-1996 appropriation. The Act authorizes DHS to continue contracting for drug utilization review under the MA program, and directs DHS to negotiate with the DHS contractor for mental health managed care under the MA program to establish performance standards for successful outcomes for persons receiving services under the contract, requires the standards to be incorporated into the contract or made an addendum to the contract in effect on the effective date of the requirement, requires that attainment of the standards is a factor in determining whether the contract will be extended, and requires that future contracts contain sanctions for failure to attain the standards.

STATE SUPPLEMENTARY ASSISTANCE (SSA). This appropriation is increased compared with the estimated FY 1995-1996 appropriation and requires DHS to increase the personal needs allowance for residents of residential care facilities at the same rate and at the same time that federal Social Security income and benefits are increased. The Act also provides that DHS may take certain actions to ensure that federal requirements are met if DHS projects that SSA expenditures for a calendar year will not meet the federal pass-along requirements. The Act also allows DHS to use up to $75,000 for a rent subsidy program for adult persons who, among other conditions, are discharged from an intermediate care facility for the mentally retarded, in order to allow these persons to move into a community living arrangement.

CHILD DAY CARE ASSISTANCE. The Act provides for an increased appropriation compared with the appropriation for the previous fiscal year. The appropriation provides funding for protective child day care assistance, state child day care assistance, child day care resources and referral services, and transitional child care assistance. The Act establishes a prioritized waiting list for state child care assistance. The Act also specifies that migrant seasonal farm workers are eligible for state child care assistance if the family income is less than or equal to 100 percent of the federal poverty guidelines, defines a migrant seasonal farm worker for the purposes of state child care assistance, and provides a calculation for determining eligibility. The Act provides that if the first three priorities for funding of state child care assistance are funded, DHS may transfer not more than $200,000 to the appropriation for the Division of Child and Family Services to provide additional funding for family-centered services. The Act also allocates $35,000 of the funds appropriated for child day care assistance to the United Mexican-American Center in Des Moines for the center's child day care program.

JOBS PROGRAM. The Act provides for an increased appropriation compared with the appropriation for the previous fiscal year for the Job Opportunities and Basic Skills Program and maintains the level of funding for the Family Development and Self-Sufficiency (FaDSS) Program.

CHILD SUPPORT RECOVERY. The Act provides an increased appropriation in comparison with the appropriation for the previous fiscal year. The Act provides for the replacement of some fees previously charged nonpublic assistance clients with an appropriation from the General Fund of the State. The Act provides for the continuation of the pilot project utilizing a court-appointed referee for judicial determinations on child support matters, provides for continuation of a child support public awareness campaign in cooperation with the Office of the Attorney General, provides for the continuation of the community service pilot project for absent parents who are ordered to perform community service for failure to pay child support, provides for continuation of contracting with private collection agencies to collect support payments in difficult collection cases, requires DHS to employ on or before July 2, 1996, at least one position or employee to respond to telephone inquiries during all weekly business hours, and requires DHS to develop guidelines to be used in place of the child support guidelines for establishing a support obligation and the amount of the support debt for the costs of foster care services.

JUVENILE INSTITUTIONS. The Act provides funding for juvenile institutions at Eldora and Toledo at an increased level compared with the appropriation for the previous fiscal year, limits the population levels to the population guidelines established in 1990, and provides for use of funds appropriated for grants for adolescent pregnancy prevention activities.

CHILD AND FAMILY SERVICES. The appropriation for the Division of Child and Family Services of DHS represents a small increase over the amount appropriated in the previous fiscal year. The cap on the number of beds for group foster care is changed to a funding cap with an increased funding level over the amount in the previous fiscal year. DHS is authorized to transfer funding for psychiatric medical institutions for children (PMICs) as that program may be incorporated into the Medical Assistance contract for managed mental health care.
Child and family services appropriation provisions continue or modify intent language that has appeared in previous years which directs DHS to establish a goal that not more than 15 percent of children placed in foster care which is federally funded be placed for more than 24 months; continue the program to decategorize child welfare funding; allocate funding for continued foster care for children age 18 or older under a signed agreement; specify the amount of state assistance for county or multicounty juvenile detention homes; authorize DHS to continue contracting for efforts to expand the number of children in foster care who are eligible for federal Supplemental Security Income (SSI); authorize a portion of the appropriation for emergency family assistance for a family participating in a family preservation or reunification project; authorize funding and transfers of other funding for the department's development of a computer system for adoption and foster care information; continue funding for improving DHS staffing of foster care and adoption services; continue language authorizing development of a performance-based monitoring program to improve outcomes for children and families; authorize development of a subsidized guardianship program for guardians of certain children placed outside of their homes; and require a study of the feasibility of expanding confidentiality provisions to permit teams of local social services providers to discuss individual cases.
New intent language in this appropriation directs DHS to stop using clinical assessment and consultation teams (CACT) if the federal government repeals Title XIX of the federal Social Security Act prior to the convening of the next General Assembly; allows DHS to expend, through June 1998, federal moneys received as a result of state child and family expenditures in previous fiscal years; authorizes DHS to adopt emergency rules as necessary to comply with federal funding requirements; requires DHS to work with the Department of Education in collecting data to determine the number of children with disabilities who will require sheltered workshop and supported employment services in the future; and limits the state funding for shelter care while authorizing DHS to distribute this funding regionally. The appropriation for general administration authorizes DHS to request that federal Title IV-E funding be provided to the state in a fixed amount, provided certain requirements are met.

COMMUNITY-BASED PROGRAMS -- ADOLESCENT PREGNANCY PREVENTION. The Act maintains the level of the appropriation compared with the estimated appropriation of the previous fiscal year. The Act specifies that a portion of the appropriation is to be used for prevention of pregnancies during the adolescent years and to provide support services for pregnant or parenting adolescents and a portion is to be used for grants to community or regional groups for pregnancy prevention efforts. The Act requires DHS in cooperation with the Iowa Department of Public Health to determine the criteria to be used in measuring the results of all pregnancy prevention programs for which funds are allocated and the criteria are to be made available to a legislative interim committee, which is requested to be appointed by the Legislative Council for the 1996 Interim to evaluate the effectiveness of current and proposed adolescent pregnancy prevention programs. The Act also appropriates funds for child abuse prevention grants.

COURT-ORDERED SERVICES PROVIDED TO JUVENILES. The Act maintains the level of funding as compared with the appropriation for the previous fiscal year. The Act provides for the continuation of the planning groups established by each judicial district for review of expenditures under the appropriation and requires annual reports from the planning groups to be submitted to the Joint Appropriations Subcommittee on Human Services and the Legislative Fiscal Bureau, requires that the funds appropriated be expended only after all reasonable efforts have been made to utilize other funding sources and community-based services, and requires DHS to compile a monthly report regarding expenditures in each district. The Act prohibits a court from ordering any service that is a charge upon the state if there are insufficient funds to pay for the services and prohibits a court from ordering a county to pay for any services that are a charge upon the state. The Act also permits the transfer of not more than $400,000 to the appropriation for child and family services to be used to provide school-based supervision of children adjudicated delinquent.

MENTAL HEALTH INSTITUTES. The Act provides for a decrease in the appropriation in comparison with the previous fiscal year, provides that DHS may reallocate funds as necessary to best fulfill the needs of the institutions provided for in the appropriation, and requires DHS to provide persons being discharged from an institute with assistance in obtaining federal benefits under federal Supplemental Security Income (SSI).

STATE HOSPITAL-SCHOOLS. The Act provides for a decreased appropriation in comparison with the previous fiscal year. The Act also provides that funds may be reallocated as necessary to best fulfill the needs of the institutions under the appropriation.

STATE MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES SERVICES. The appropriation for special services maintains the appropriation of the previous fiscal year, the appropriation for the Family Support Subsidy Program is an increase over the previous fiscal year to allow implementation of a pilot project of the children-at-home component of the Family Support Program enacted in S.F. 2307 (see Children & Youth), the appropriation for special needs grants maintains the appropriation for the previous fiscal year, and the appropriation for state cases is slightly decreased in comparison with the previous fiscal year.

MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES COMMUNITY SERVICES -- COMMUNITY SERVICES FUND. The appropriation to the Mental Health and Developmental Disabilities Community Services Fund is distributed to counties for local services. Approximately, $16 million is state funding and is the same amount as in the previous fiscal years. Funding from the federal Social Services Block Grant, approximately $13 million, is also distributed in this appropriation. The federal government reduced the amount of this block grant by 15 percent for FY 1995-1996 just prior to adjournment of the General Assembly. A state supplemental appropriation of $1.6 million is included in S.F. 2470 to replace the funding cut for FY 1995-1996.
Intent language included under this appropriation is similar to the language in recent years. Moneys are distributed to counties according to a population and poverty formula, 50 percent of the moneys from the fund must be used for contemporary services according to rules adopted by the Mental Health and Developmental Disabilities Commission, funding continues for the Iowa Compass Disability Services Information and Referral Program, regional planning councils must submit services plans and counties must submit expenditure reports, funding is allocated for certain counties having supplemental per diem contracts in effect, block grant funds must be used with case management and are subject to DHS purchase of service requirements, and plans must be submitted for block grant services. The Act provides that counties with an approved county management plan in place are considered to have met many of the planning and reporting requirements.

PERSONAL ASSISTANCE. The Act provides $364,000 to continue the pilot project for the Personal Assistance Services Program in an urban and a rural area. A portion of the funds may be used to develop a federal home and community-based waiver under the Medical Assistance (Medicaid) Program for persons with physical disabilities. The project is to be implemented in a manner which does not require additional county or state costs for assistance provided under the pilot project or the waiver.

FIELD OPERATIONS -- GENERAL ADMINISTRATION AND VOLUNTEERS -- APPROPRIATION REDUCTION. The appropriation for field operations is an increase from the estimated appropriation for the previous fiscal year. The appropriation for general administration is an increase from the appropriation for the previous fiscal year. The appropriation for development and coordination of volunteer services maintains the level of services provided in the previous fiscal year and includes an increase to offset costs associated with coordinating volunteer programs. However, the Act provides for the reduction of $1.56 million of specified appropriations in the Act and instructs DHS to submit a proposal related to the reductions to the chairperson and ranking members of the Joint Appropriations Subcommittee on Human Services, the Department of Management, and the Legislative Fiscal Bureau on or before June 15, 1996.

DHS RESTRUCTURING TASK FORCE. The Act directs the Legislative Council to create a legislative restructuring task force to assess the structure and functions of DHS and the department's programs. The Act permits the Governor to recommend up to five individuals. The task force is to make recommendations to achieve better results, improve service quality, and increase the quality of the department's interaction with the public. In addition, the task force is to provide for public input into the modification proposals developed by DHS in response to potential federal restructuring in the following areas: child welfare, Mental Health and Developmental Disabilities, Family Investment Program, and Medical Assistance. If federal law requires state changes directed to the populations addressed by the modification proposals and the changes can be made without state legislation, DHS must adopt rules to implement the changes. The proposed rules must be submitted to the task force for review and comment prior to submission to the Administrative Rules Review Committee.

REIMBURSEMENTS FOR MEDICAL ASSISTANCE (MA), STATE SUPPLEMENTARY ASSISTANCE, AND SOCIAL SERVICES PROVIDERS. With the following exceptions, no increases are made to the reimbursement rates paid to MA providers: home health providers, rural health providers, nursing facilities, dental services, and drug product cost reimbursements. The Act also requires continuation of an outpatient hospital reimbursement system based upon ambulatory patient groups, provides that reimbursements made between July 1, 1996, and June 30, 1997, under the outpatient hospital reimbursement system are to be retrospectively adjusted to provide reimbursement to within a 10 percent deviation of the lower of the cost or the charges for the services provided during the previous fiscal year, and also requires DHS to continue the revised MA payment policy for reimbursement for costs of screening and treatment provided in the hospital emergency room pursuant to the prospective payment methodology developed by DHS for payment of outpatient services provided under the MA program. Rural health clinics may receive an increase in reimbursement in accordance with any increase under the federal requirements and certain home health agencies, hospice services, and acute care mental hospitals are to be reimbursed for their current federal Medicare audited costs.
The rate of reimbursement of nursing facilities is established at the 70th percentile based upon the June 30, 1996, unaudited compilation of costs and statistical data, with the provision that the reimbursement may be again increased to the 70th percentile based upon the December 31, 1996, unaudited compilation of costs. The Act authorizes DHS to modify the reimbursement methodology for skilled nursing facilities that participated in the MA program on or before May 31, 1993, and which meet the DHS disproportionate share payment provisions of May 31, 1993, if it is possible to demonstrate that the modification would result in a cost savings to the MA program. The Act also authorizes DHS to revise the fee schedule used for physician reimbursement and requires DHS to reimburse federally qualified health centers at 100 percent of reasonable costs. The Act also provides that DHS may allocate increases among items and procedures for dental procedures as deemed appropriate in cooperation with dentists, and establishes the maximum cost reimbursement rate for residential care facilities at $21.34 per day and the rate for facilities not filing cost reports at $15.41 per day. The Act establishes a foster family basic daily maintenance rate and a maximum adoption subsidy rate for children based upon the age of the child.
The Act provides that the reimbursement for social services providers is the same as the rate for the previous fiscal year unless a new service was added, the social services provider loses a source of income which was used to determine the reimbursement rate, DHS revises the reimbursement rate to comply with requirements established in the previous year, or if the change is necessary to implement a change required by the increased reimbursement rate for residential care facilities. The Act provides that the group foster care reimbursement rate for children placed outside of the state is to be calculated in the same manner as used for in-state providers unless otherwise determined by the Director of Human Services.
The Act provides that the rate for shelter care providers is to be based upon the cost report submitted to DHS and that the maximum reimbursement rate is $76.61 per day; authorizes DHS to adjust the rate paid to a shelter care provider up to the maximum rate under certain circumstances; requires DHS to review expenditures for and usage of shelter care services in January 1997; and authorizes DHS to utilize moneys, if usage is less than anticipated and the existing contracts for provision of shelter care do not obligate the total amount of funds, for wrap-around services or support to prevent group foster care placement or to reduce the length of stay.
The Act requires DHS to utilize the Drug Utilization Review Commission to propose a pilot project for an alternative payment system, recommended in the study completed by the Drug Utilization Review Commission, for compensation of pharmacists for pharmaceutical care services under the MA program at no cost to the state and requires the submission of a proposal on or before November 30, 1996.
The Act provides that the reimbursement rate for intermediate care facilities for the mentally retarded is to be calculated at the 80th percentile and DHS is to address any proposals for containment of ICFMR costs in the restructuring task force established in the Act.
The Act directs DHS to adopt rules applicable to agencies providing services under the MA rehabilitative treatment program for children and their families to eliminate reimbursement rate limits on services components, which are within a category of cost which itself has a limit, and to implement the change in a cost-neutral manner.
The Act directs DHS to consult with representatives of nursing facilities, consumers, legislators, a designee of the Governor, and other interested entities to perform certain duties to improve quality of care and improve the recruitment and retention of qualified direct health care providers in nursing facilities.

RESIDENTIAL SERVICES -- PURCHASE OF SERVICES REIMBURSEMENT RATES. The Act provides for an increase in the purchase of services reimbursement rate for adult residential services provided to persons residing in any category of licensed residential care facility, for maximum rates, for allocation of moneys to the counties for purchase of services, and for a transfer of a portion of the appropriation for payment of the increased reimbursement rate to residential care facilities providing services through local purchase of services for persons under the state cases program.

STATE INSTITUTIONS CLOSINGS AND REDUCTIONS AND BILLING PRACTICES. The Act requires DHS to coordinate efforts in cooperation with the Iowa Department of Economic Development to develop new jobs in the area in which a state institution is located if a state institution is to be closed or reduced in size. Additionally, DHS is instructed to take other actions to utilize any closed unit or other facilities and services of an institution.
The Act includes the following provisions affecting state institutions:

• If excess capacity exists at a state institution administered by DHS, the department may contract with a managed care or organized delivery system for health care to provide services at the institution.
• DHS is to work with institution administrators, the Department of Management, and the Legislative Fiscal Bureau in reviewing fiscal information to develop a proposal for revising the manner of making appropriations for institutions to reflect the net amount of state funds needed. Currently, the amount of state funding appropriated does not reflect reimbursements from federal and county governments and other revenues offsetting the appropriations that are deposited into the General Fund of the State.
• The superintendents of the state hospital-schools are to work with DHS administration to consider the manner by which services and costs are combined for purposes of billing for Medical Assistance reimbursement at the hospital-schools. A report is to be submitted to the General Assembly in December 1996.
• In addition, the same individuals are to develop methodologies for billing services, consultation and other assistance provided by the hospital-schools in support of community-based services. The methodologies may be implemented in FY 1996-1997.
• The activities required in this section of the Act are to be coordinated with the efforts of the restructuring task force, to the extent possible.

REPORTS. The Act requires that any reports or information required to be compiled or submitted under the Act are to be submitted to the chairpersons and ranking members of the Joint Appropriations Subcommittee on Human Services, the Legislative Fiscal Bureau, the Legislative Service Bureau, and the caucus staffs on or before the dates specified.

MISCELLANEOUS AND STATUTORY PROVISIONS.

• Chapter 135H, providing for psychiatric medical institutions for children (PMICs), is amended. Beds approved for substance abuse treatment may be converted to general PMIC purposes without obtaining a certificate of need from the Health Facilities Council. The number of PMIC beds is limited to a statutory maximum of 430. The Act allows additional beds to be established without a certificate of need or DHS approval provided the beds do not receive any reimbursement from the state Medical Assistance program.
• Chapter 228, relating to disclosure of mental health and psychological information, is amended to authorize disclosure of mental health information to providers of professional services and their employers and agents as necessary to facilitate administrative and professional services to an individual.
• As previously noted, Chapter 232, the Juvenile Justice Code, is amended to change the group foster care cap from a bed cap to an expenditure cap.
• The Act amends Chapter 234, by establishing a requirement that DHS notify an individual's parents or guardians at the time of the placement of an individual in foster care of the responsibility for paying the cost of care and a provision which limits the collection of an accrued support debt under the foster care program to three months preceding the earlier of either the initial notice to the parent or guardian of the amount of the support debt or the date the written request for a court hearing is received by the Child Support Recovery Unit.
• The Act amends Chapter 252B, relating to child support recovery, to provide for elimination of certain fees for child support recovery services provided to nonpublic assistance clients.
• New Chapter 541I creates an Iowa Healthy Kids Program to be implemented by the Insurance Division of the Department of Commerce. The program is to provide for health coverages for groupings of children organized by the program with coverage costs based upon ability to pay. An advisory council of school, health care providers and insurers, consumers, and others knowledgeable concerning health care is created. The Act includes an appropriation allocation of $150,000 to be transferred to the Healthy Kids Trust Fund and used for implementation of the program.
• The Act provides for adoption of emergency rules if specifically authorized under the Act. Any emergency rules adopted under the Act do not take effect until they are reviewed by the Administrative Rules Review Committee. Rules adopted are to be published as notice of intended action.
• Portions of the Act relating to the mental health managed care program, relating to moneys appropriated for state child care assistance under the previous fiscal year appropriation, relating to expenditure of federal funds for child and family services, and relating to appropriations reductions take effect May 29, 1996.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. The provision directing DHS to expand the program to administratively pursue reimbursements for pharmacy services provided to recipients of Medical Assistance (Medicaid) who also have third-party coverage for these services.
• 2. The provision requiring that any future contract entered into by the department under the Medical Assistance program include a requirement that the contractor make public information relating to the amount of profit realized by the contractor and the amount of the funds expended by the contractor for administrative costs under the contract.
• 3. The provision allocating $20,000 to the department to develop a system to utilize volunteer evaluation teams to review and inspect registered family day care homes on behalf of DHS and to review other issues related to child day care.
• 4. The provision allowing a family who was eligible for and received state child day care assistance during the previous fiscal year to continue to receive the assistance in the next fiscal year as long as the family remains eligible under the requirements of the previous fiscal year.
• 5. The provision that moneys remaining unexpended from an FY 1995-1996 supplemental appropriation for child day care in H.F. 2114 do not revert but remain available in the succeeding fiscal year for child day care. However, the Governor did not veto a similar nonreversion provision in S.F. 2470.
• 6. The provision allocating $115,000 of the moneys appropriated for child abuse prevention to be transferred to the Iowa Department of Public Health for the Iowa Healthy Family Program.
• 7. The provision directing the Division of Children and Family Services to administer the pilot project for personal assistance services for persons with a disability. The project is administered by the Divisions of Mental Health and Developmental Disabilities.
• 8. Language prohibiting DHS from implementing any of the department's proposals for modifying the social service system in response to proposed federal changes or to take other actions in response to enacted federal changes unless the department is implementing a policy or actions authorized in law by the General Assembly.
• 9. The appropriation of $75,000 to the Legislative Council for costs associated with the task force created in the Act to study restructuring of the Department of Human Services.
• 10. The provision requiring the department to negotiate with providers of services under the Medical Assistance Rehabilitative Treatment Program for children and families to revise the department's rules regarding reimbursement rates under the program.
• 11. Language requiring implementation of a proposal, if deemed feasible by the developers of the proposal, to revise the manner of appropriating for state institutions administered by DHS to reflect the net amount of state funds needed. Currently, the amount of state funding appropriated does not reflect reimbursements from federal and county governments and other revenues offsetting the appropriations deposited into the General Fund of the State. Language requiring development of the proposal was not vetoed.
• 12. The provision directing the department to work with various affected entities in developing a plan for community-based placements of persons residing at a state hospital-school or mental health institute if the department's budget plan for the subsequent fiscal year includes a proposal for reduction of capacity at the hospital-school or institute.
• 13. The provision directing the department to develop a plan for meeting national standards on caseloads for the department's social workers and to submit a report on or before January 8, 1997.
• 14. The provisions requiring the department to consult with providers of rehabilitation treatment services relating to the Medical Assistance Child Services Initiative (This initiative provides for the inclusion of various child welfare services as rehabilitative services under the MA program) in reviewing various provider reporting requirements and implement a simplified reporting process no later than January 1, 1997.
• 15. A statutory amendment to Chapter 239, the Family Investment Program chapter, establishing "host homes" licensed by DHS to provide a living arrangement and related services to minor parents, who have applied to participate in FIP, and other pregnant minors. An associated temporary provision was also vetoed which directed DHS to apply for a federal waiver to revise FIP requirements to incorporate the host homes.
• 16. The portion of the Act's amendment to Chapter 232 changing the group foster care bed cap to a budget target cap that would have authorized an exception to a regional target. The vetoed portion would have permitted a placement if the placement met the region's planning requirements except for a budget target restriction.
• 17. The codified provision changing the date on which mental health property tax relief payments are due from September and March to July 1 and January 1 of each year.

SENATE FILE 2446 - Appropriations -- Agriculture and Natural Resources (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act relates to agriculture and natural resources by providing appropriations to support related entities including the Department of Agriculture and Land Stewardship and the Department of Natural Resources. The Act also makes statutory changes relating to agriculture and natural resources.
The Act provides a number of appropriations from the General Fund of the State to the Department of Agriculture and Land Stewardship and the Department of Natural Resources for the administration of those departments and for specific programs, including the Farmers' Market Coupon Program, the Pseudorabies Eradication Program, and the inspection of Iowa-foaled horses and Iowa-whelped dogs and administration of a program to promote the horse and dog breeding industries in the state.
The Act provides an appropriation from the State Fish and Game Protection Fund to support the Division of Fish and Wildlife within the Department of Natural Resources, for the transfer of fees from all-terrain vehicle and snowmobile fees for snowmobile programs, and for the transfer of registration fees paid on vessels to be deposited in a special conservation fund. The Act notwithstands Section 455A.18 of the Iowa Code to provide that in lieu of the standing appropriation of $30,000,000 from the General Fund of the State required to be deposited in the Iowa Resources Enhancement and Protection Fund (REAP), $9,000,000 is appropriated to the REAP Fund.
The Act provides an appropriation from the Organic Nutrient Management Fund to Iowa State University for supporting odor control applications of animal feeding operations.
The Act provides the following direction:

• The Department of Natural Resources must adopt administrative rules establishing a range of prices of plant materials grown at state forest nurseries to cover the expenses related to growing the plants.
• The Department of Natural Resources must conduct a study of the feasibility of locating a field office in the department's north-central district.
• The Department of Natural Resources may purchase lands upon which to locate a Native American war memorial.
• The Division of Soil Conservation of the Department of Agriculture and Land Stewardship must sponsor a conference regarding the protection of cropland soils in the state.
• The Department of Agriculture and Land Stewardship and the Department of Natural Resources must notify the chairpersons, vice chairpersons, and ranking members of the Joint Appropriations Subcommittee on Agriculture and Natural Resources for the previous fiscal quarter of any transfer of moneys or full-time equivalent positions made by either department which is not authorized in the Act.
• The Department of Natural Resources is prohibited from using moneys appropriated from the General Fund to support purposes related to the administration and enforcement of air quality regulations.
• The Natural Resource Commission of the Department of Natural Resources must develop and implement a land acquisition policy embodied in a strategic land acquisition plan administered by the department.
• The Department of Natural Resources must publish and make available for purchase by the general public gift certificates entitling the bearer of the certificate to free camping and other special privileges at state parks and recreation areas.

The Act temporarily eliminates the position of Deputy Secretary of Agriculture and temporarily establishes the position of Interim Assistant Secretary of Agriculture, who shall possess the same powers and perform the same duties as the former position of Deputy Secretary of Agriculture. The Act makes certain appropriations to the Department of Agriculture and Land Stewardship conditional upon the department completing all functions necessary to transfer the powers and duties of the Deputy Secretary of Agriculture to the Interim Assistant Secretary of Agriculture. The Act repeals, effective December 31, 1998, provisions of the Act relating to eliminating the position of Deputy Secretary of Agriculture and establishing the position of Interim Assistant Secretary of Agriculture.
The Act makes the following changes in statute:

• Provides that the Department of Agriculture and Land Stewardship and the Department of Natural Resources are to furnish financial information to the Legislative Fiscal Bureau, including all permanent positions added to or deleted from the departments' tables of organization.
• Provides that Department of Revenue and Finance, in cooperation with each appropriate agency, is to track receipts to the General Fund which under law were previously collected to be used for a specific purpose or required to be deposited in a specific account or fund.
• Provides that when employing persons to fill temporary positions in conservation and outdoor recreation, the Department of Natural Resources must give preference to persons meeting eligibility requirements for the Green Thumb Program and to persons working toward an advanced education in natural resources and conservation.
• Provides that feeder swine shall not be moved into this state from another state, except to slaughter, unless the feeder swine are vaccinated by a differentiable vaccine within 45 days of arrival in this state.
• Amends REAP provisions in the Code by extending the sunset date on the REAP Fund from 2001 to 2021, and reduces the permanent annual standing appropriation to the REAP Fund from $30,000,000 to $20,000,000. These REAP provisions take effect July 1, 1997.

Provisions of the Act taking effect May 29, 1996, provide for the nonreversion of moneys allocated to Iowa State University pursuant to 1995 Iowa Acts for purposes of supporting multiflora rose eradication research and projects and the Iowa Cooperative Extension Service in Agriculture and Home Economics in establishing and administering an Iowa grain quality initiative.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. A provision directing that a portion of moneys appropriated to the Laboratory Division of the Department of Agriculture and Land Stewardship be used to support an additional regional entomologist for purposes of conducting laboratory and field inspection activities.
• 2. A provision directing that a portion of moneys appropriated to the Soil Conservation Division of the Department of Agriculture and Land Stewardship be used to support a position for oversight of financial incentive programs relating to soil conservation practices.
• 3. A provision making an appropriation from the Organic Nutrient Management Fund to the Soil Conservation Division of the Department of Agriculture and Land Stewardship to provide financial incentives for soil conservation practices.
• 4. A provision making an appropriation from the Organic Nutrient Management Fund to Iowa State University for supporting a person who engages in the control of animals, especially predators.
• 5. A provision making an appropriation from the Organic Nutrient Management Fund to the Soil Conservation Division of the Department of Agriculture and Land Stewardship for supporting soil and water conservation district development.
• 6. A provision making an appropriation from the Organic Nutrient Management Fund to the Interstate Agricultural Grain Marketing Commission for carrying out statutory duties relating to agricultural grain marketing.
• 7. A provision making an appropriation from the Organic Nutrient Management Fund to Iowa State University for supporting multiflora rose eradication research and projects.
• 8. A provision making an appropriation from the Organic Nutrient Management Fund to Iowa State University for sponsoring an Iowa Agriculture 2000 Conference for independent agricultural producers and other persons interested in the future of Iowa agriculture.

SENATE FILE 2448 - Appropriations -- Health and Human Rights (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act provides for appropriations to the Department for the Blind, the Iowa State Civil Rights Commission, the Department of Elder Affairs, the Governor's Alliance on Substance Abuse, the Iowa Department of Public Health, the Department of Human Rights, and the Commission of Veterans Affairs.

CIVIL RIGHTS COMMISSION. The Act appropriates funds to the Iowa State Civil Rights Commission, and authorizes the commission to exceed its designated staffing level to hire additional professional staff to investigate employment and housing complaints if the anticipated amount of funding from the federal Equal Employment Opportunity Commission and the federal Department of Housing and Urban Development exceeds $467,900 for FY 1997.
The Act provides that the questionnaire an employer is required to complete during a civil rights investigation, in response to a complaint, shall be revised and shortened.

DEPARTMENT OF ELDER AFFAIRS. The Act appropriates funds to the Department of Elder Affairs. Regarding appropriations for aging programs and services, the Act specifies authorized programs and directs that funds not be used by the department for administrative purposes.

GOVERNOR'S ALLIANCE ON SUBSTANCE ABUSE. The Act appropriates funds to the Governor's Alliance on Substance Abuse and the Iowa Substance Abuse Clearinghouse in Cedar Rapids for FY 1997.

DEPARTMENT OF PUBLIC HEALTH. The Act appropriates funds to the Iowa Department of Public Health. Funds appropriated to the Planning and Administration Division include specific appropriations for the Chronic Renal Disease Program to be used for reimbursement of insurance premiums, travel and prescription and nonprescription drugs, for the regulatory oversight of accountable health plans, and for the purchase, verification, updating, and storage of health data information. The Act limits the budgets for professional licensure boards funded through the department to 85 percent of the average annual fees collected for the previous two fiscal years. The budget may be exceeded for unanticipated litigation costs approved by the Director of the Department of Management in an amount not in excess of 5 percent of the average annual fees collected for the previous two fiscal years. Funds are additionally appropriated for emergency medical services staff and training.
Funds appropriated to the Health Protection Division include specific appropriations for chlamydia testing and lead abatement testing.
The Division of Substance Abuse and Health Promotion is directed to continue coordination with substance abuse treatment and prevention providers regardless of funding source, and together with the Commission on Substance Abuse shall continue coordination of delivery of substance abuse services to uninsured and court-ordered substance abuse patients in all counties of the state. An allocation of $15,000 shall support the surveillance and reporting of disabilities suffered by persons engaged in agriculture, with the department cooperating with the Department of Agriculture and Land Stewardship, Iowa State University of Science and Technology, and the College of Medicine at the University of Iowa. An appropriation of $193,500 is made for aftercare services for persons completing substance abuse treatment. A minimum of $950,000 is to be used by the department to continue an integrated substance abuse managed care system.
Programs receiving allocations from funds appropriated to the Family and Community Health Division include the Birth Defects and Genetics Counseling Program, mobile and regional child health specialty clinics, muscular dystrophy and related genetic disease programs, the Statewide Perinatal Care Program, maternal and child health services, and rural health care technical assistance, recruitment and retention. Funds are appropriated to reimburse counties for expenses resulting from sudden infant death syndrome autopsies, for grants to local boards of health for the Public Health Nursing Program, for grants to county boards of supervisors for the Home Care Aide Program, for the development and maintenance of well-elderly clinics, for the Physician Care for Children Program, for primary and preventive health care for children, for the Iowa Healthy Family Program, and for primary care provider recruitment and retention endeavors.
Appropriations are also made to the State Boards of Dental, Medical, Nursing, and Pharmacy Examiners. Consolidation of state funding sources for public health nursing, home care aid, and the Senior Health Program into a single contract for each county shall be available for implementation beginning July 1, 1996. The department shall submit a report to the General Assembly on or before January 2, 1997, including an evaluation of the first year of the voluntary demonstration project and a plan to expand statewide a single source contract for each county beginning July 1, 1997.

DEPARTMENT OF HUMAN RIGHTS. The Act appropriates funds to the divisions of the Department of Human Rights. A contingent appropriation is made to the Status of Women Division for the mentoring project for family investment program participants if a statute creating a Department of Workforce Development is not enacted with this responsibility.
Funds appropriated to the Community Grant Fund established under Section 232.190 shall be restricted to existing grants.

COMMISSION OF VETERANS AFFAIRS. The Act appropriates funds to the Commission of Veterans Affairs. If there is an increase in Medical Assistance reimbursements exceeding the amount budgeted for that purpose in the fiscal year beginning July 1, 1996, the Act authorizes the Iowa Veterans Home to expend the excess amounts to exceed the number of full-time equivalent positions authorized for meeting certification requirements or to provide additional beds, subject to approval by the Department of Management.
The Act provides for a direct purchase incentive if a department is able to demonstrate a 10 percent savings when equipment is purchased directly rather than pursuant to state contract. Fifty percent of the savings realized from a direct purchase may be retained by a department. The Act transfers administration of the Gambling Treatment Program from the Department of Human Services to the Department of Public Health, and allocates up to $400,000 of moneys remaining in the Gambling Treatment Fund at the close of the fiscal year, which otherwise remain unexpended or unobligated, to the Department of Public Health for substance abuse program grants. Additionally, the Act includes an optometrist in the definition of a physician pursuant to Section 135.1, and indicates that this shall not be interpreted to expand an optometrist's scope of practice. The Act provides that not more than 5 percent of moneys appropriated to the Community Grant Fund shall be used for administrative purposes. Further, the Act contains provisions concerning the completion of the Vital Statistics Modernization Project and reversion of unencumbered funds appropriated thereto. Also, the Act contains a request for an interim study to evaluate the access to and quality of interpretive services provided for the deaf and hard-of-hearing.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. A provision that the intent of random testing to detect civil rights violations shall be educational in nature, and that a first-time violation shall not result in the assessment of a fine exceeding $500.
• 2. A provision appropriating from the unobligated and unencumbered balance of the Gamblers Assistance Fund for the fiscal year beginning July 1, 1995, and ending June 30, 1996, $200,000 to the Community Grant Fund, and $400,000 to the Iowa Department of Public Health for substance abuse program grants administered by the department. This provision would have been effective upon enactment.

SENATE FILE 2470 - Miscellaneous Appropriations and Related Matters -- Economic Development Appropriations (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act relates to public levy, expenditure and regulatory matters by making standing, economic development and other appropriations, and includes penalties and various effective dates. The Act is organized into a number of divisions.

Division I - Reversions

The reversions division includes an amendment to Section 8.62, authorizing departments of state government to encumber 50 percent of the unused amount of operational appropriations remaining unexpended or unencumbered at the close of a fiscal year for use in the succeeding fiscal year for purposes of employee training and technology enhancement. Under prior law, the provision was to be repealed effective September 1, 1997. The Act extends the repeal to September 1, 1999.

The reversions division also provides that moneys from an FY 1995-1996 supplemental appropriation in 1996 Iowa Acts, H. F. 2114, to the Department of Human Services for child day care, remaining unexpended or unobligated at the close of the fiscal year, do not revert to the General Fund of the State.

Division II - Education -- Related Provisions

The Act includes an education-related provisions division. Section 279.51, providing a standing appropriation to the Department of Education for allocation for early childhood education programs, school-based youth services education programs, and at-risk programs, is amended by increasing the amount of the standing appropriation by approximately $400,000 over the FY 1995-1996 amount with the increase allocated to the Child Development Coordinating Council. The Act also changes the formula by which administrative funds are determined. The section is updated to allocate for other at-risk program purposes in amounts provided in recent years.

This division authorizes the College Student Aid Commission to provide qualified full-time and part-time students with tuition grants for summer semesters, or the trimester equivalent. However, the amount of a tuition grant for the summer semester or trimester equivalent shall be one-half the amount of the tuition grant the student receives in the fall or spring.

Division III - State Claims

Division III provides for payment of certain claims against the state in FY 1995-1996. This division takes effect May 30, 1996.

Division IV - Lottery Transfer and Appropriations

Division IV appropriates lottery revenues collected during FY 1994-1995, which were not transferred from the Lottery Fund, for the purpose of the Local Arts Comprehensive Education Strategies (LACES) Program. All other appropriations in this section were vetoed by the Governor (see listing at the end of this summary). This appropriation takes effect May 30, 1996, and will not revert until June 30, 1997.
This division also transfers lottery revenues in excess of $42,200,000 deposited into the General Fund of the State during FY 1995-1996 to various agencies for the following purposes in the following priorities: the World Food Prize; the Perry Creek Flood Control and Greenway Project in Sioux City; the Gothic House Visitors Center in Eldon; development of Riverview Natural Island Environmental Education Project; testing private wells and waters of the state for pollution caused by confinement feeding operations; trail development at Blood Run National Historic Landmark; curb construction on Highway 927 in Durant; North and South Gateway Welcome Centers on I-35; Heisermann Memorial Library in West Union; Mason City-Clear Lake Electric Trolley Railroad Historical Society; Martin Luther King Building at Hawkeye Community College; tourist information center at the National Heritage Orientation Center and Public Market; area science center in Iowa City; Iowa Fire Fighters Memorial; continuing the state Senior Health Insurance Information Program; Older Iowans' Legislature; and testing of animal feeding operations and their structures. These transfers take effect May 30, 1996, and do not revert until the end of FY 1997-1998.
This division also provides that lottery revenues collected during FY 1996-1997 shall, after payment of all expenses, be transferred to the General Fund of the State instead of the CLEAN Fund as prior law directed.

Division V - Conforming and Technical Corrections

This division makes various conforming and technical corrections associated with legislation enacted during the 1996 Legislative Session.

Division VI - FY 1995-1996 Supplemental Appropriations

Division VI makes supplemental appropriations for FY 1995-1996. Moneys are appropriated to the Department of Public Health for expenditures related to establishment of the Prospective Minor Parent Decision-Making Assistance Program under S.F. 13 (see Courts, Civil Law & Procedure & Probate); to the Statewide Fire and Police System to provide start-up funds for implementing voluntary benefit programs as provided in S.F. 2245 (see State Government); to the Department of General Services for relocation of offices and other costs associated with renovation of the Lucas State Office Building and the Old Historical Building; to the Office of the State Public Defender for attorney fees for indigent defense; and to the Department of Human Services (DHS) to replace federal Social Services Block Grant funding for local purchase of services for persons with mental illness or disabilities. The Division also authorizes DHS to utilize any appropriations remaining at the close of FY 1995-1996 for continuing adolescent tracking and monitoring programs and for upgrading computer hardware.

Division VII - FY 1996-1997 State Appropriations

Division VII makes state appropriations for FY 1996-1997. Moneys are appropriated from the Iowa Public Employees' Retirement Fund to the public retirement system for costs associated with studies and reports required in S.F. 2245 (see State Government), and for costs to develop a proposal for a defined contribution option under the public retirement system. The Department of Economic Development is directed to allocated moneys from the Value-Added Agricultural Products and Processes Financial Assistance Fund for a beef processing project in southwest Iowa. Moneys are appropriated to the Department of Commerce for the Utilities Board to utilize for consulting services for communication regulation with the moneys to be recovered through regulatory charges. Moneys are appropriated to the Commissioner of Insurance for a study of physician utilization in health care coverages. Moneys are appropriated from the General Fund of the State to the Office of the Governor and to the Workforce Development Fund from the Workforce Development Account. Spending authority is provided to the Department of Agriculture and Land Stewardship to utilize moneys from an appropriation in S.F. 2446 for acquisition of certain laboratory equipment. If unanticipated federal moneys are received for child day care, the appropriation to DHS for child day care in S.F. 2442 is to be reduced in a like amount unless receipt of the federal moneys would be jeopardized. The amount of the allocation in the appropriation to DHS in S.F. 2442 for group foster care is revised.

Division VIII - Other Statutory Provisions

Chapter 28E is amended to authorize fire departments and districts to enter into mutual aid emergency services contracts containing a 60-day cancellation provision so long as the contract is not for the purpose of reducing employees. Fire departments and districts are also authorized to provide assistance to other departments and districts during a significant emergency in accordance with established policy and procedures, provided the giver of aid maintains authority over their own personnel.
Chapter 34A, relating to enhanced 911 (E911) telephone systems, is amended to create an E911 communications council to coordinate system development and to mediate disputes. See the listing of Governor's vetoes in this summary for a vetoed provision involving joint E911 service boards.
Chapter 279, relating to powers and duties of school boards, is amended to authorize a school district board to make rules relating to the policing, control and regulation of traffic, and parking of vehicles and bicycles on school property. The rules may address use of roads and other school areas, vehicle registration, parking area designation and fees, traffic signs, and parking control devices. The legislation provides for the imposition of penalties, including reasonable monetary penalties and vehicle impoundment for rule violations. A school district board must establish procedures for dispute resolution regarding the imposition of penalties, including notice and the opportunity for an administrative hearing. Additionally, the board may contract with a city or county for enforcement of rules by ordinance, and shall consult with local government transportation officials to promote consistency with local traffic and parking ordinances.
Chapter 356, relating to jails and municipal holding facilities, is amended to provide for charging prisoners fees for room and board while in custody. Charges collected are to be credited to the county general fund. Under the Act, 60 percent of the moneys collected must be used for courthouse security costs, or jail and juvenile detention center infrastructure improvements. Chapter 904, relating to the Department of Corrections, is amended to authorize charging inmates a correctional fee for custodial expenses incurred while the inmate is in custody. Proceeds are to be deposited in the General Fund of the State. The fees can be collected as court costs.
New Section 8A.2 provides for creation of local innovation zones for local areas to develop community-based strategies to improve outcomes for children and their families. Initially, the innovation zones will have oversight from the Innovation Zone Board, created as a subgroup of the Council on Human Investment. The board provisions are repealed June 30, 1998.
This division also amends Section 476.1D, subsection 10, regarding the classification of a long distance telephone company as a competitive long distance telephone company. The amendment requires that the Iowa Utilities Board, at the request of a long distance telephone company, classify a long distance telephone company as a competitive long distance telephone company if more than half of the company's revenues from its Iowa intrastate telecommunications services and facilities are received from the company's intralata interexchange services and facilities. Under prior law, the classification could be made if more than half of the company's revenues from its Iowa intrastate telecommunications services and facilities are received from services and facilities the board has determined to be subject to effective competition. Upon applying the classification, the board is to promptly notify the Director of Revenue and Finance that the long distance telephone company has been classified as a competitive long distance company. Upon the notification by the board, the Director of Revenue and Finance is to assess the property of the competitive long distance telephone company, which property is first assessed for taxation in this state on or after January 1, 1996, in the same manner as all other property assessed as commercial property by the local assessor.
Chapter 613, relating to causes of action and liability, is amended provide liability protection for a person who renders emergency assistance in an accident. The amendment adds liability protection for a person involved in a workplace rescue arising out of an emergency or accident.
Chapter 710, relating to kidnapping and related offenses, is amended to provide penalties for a person harboring a runaway child. The amendment makes it a crime to harbor a runaway child with the intent of allowing the child to remain away from home against the wishes of the child's parent. Shelter care homes licensed or approved by the Department of Human Services are exempt from the provision.

Division IX - Economic Development Provision

Division IX makes appropriations and transfers from the General Fund of the State and other funds to the Department of Economic Development, the Iowa Finance Authority, the Insurance Division of the Department of Commerce, the University of Iowa, Iowa State University, the Department of Employment Services (renamed the Department of Workforce Development in S.F. 2409, see Labor & Employment), and the Public Employment Relations Board.
The Act does not appropriate funding for the Wallace Technology Transfer Foundation. Administrative expenses of the foundation will be funded through moneys remaining in the Wallace Technology Transfer Foundation Fund.
The division appropriates $6,707,638 to the Strategic Investment Fund, an increase of over $1.1 million from the appropriation for FY 1995-1996. The Act requires the department to direct awards under the Community Economic Betterment Program to companies meeting certain wage requirements. If the average starting wage for businesses receiving awards under the program is below 100 percent of the statewide average wage, 10 percent of the funds allocated for the program are to be diverted to other programs within the Strategic Investment Fund.
The division also provides as follows:

• The Department of Economic Development is to provide data to the Legislative Fiscal Bureau regarding all assistance and benefits provided under the Community Economic Betterment Program, the New Jobs and Income Program, and the Iowa Industrial New Jobs Training Act (Chapter 260E).
• A microenterprise Rural Enterprise Assistance Program is established. The program is designed to provide assistance to rural small businesses of five or fewer employees.
• Two new programs are added to those which may be funded through the Strategic Investment Fund, the Entrepreneurs with Disabilities Program and the Job Opportunities for Persons with Disabilities Program.
• Any business seeking competitively awarded economic development financing assistance shall receive additional consideration if it enters into a good neighbor agreement regarding environmental, economic or other social and community standards.
• The federal Job Training Partnership Act, Iowa Conservation Corps, Americorps, mentoring for the Family Investment Program, Food Stamp Employment and Training, and the Labor/Management Co-op Programs are to be administered by the Department of Workforce Development.

Division X - Prisoner of War Registration Plates

Division X directs the State Department of Transportation to allow the surviving spouse of a deceased person, who was issued prisoner of war special plates, to continue using the special plates. The spouse must continue to use the deceased person's name on the registration and must return the plates upon remarriage.

Division XI - County Provisions

Division XI affects various county property tax provisions. The federal government-published price index, used to determine growth for counties under the property tax limitation in Chapter 444, is no longer published. The Act provides that for the fiscal year beginning July 1, 1997, the price index used will be the state and local government chain-type price index published by the Bureau of Economic Analysis of the U.S. Department of Commerce. The Act also makes a corrective change to add the emergency management levy for hazardous material teams to the listing of levies against which the growth factor may not be applied in FY 1996-1997 and FY 1997-1998.
Chapter 426B, relating to state property tax relief to counties, is amended to provide a standing appropriation of $6.6 million from the Property Tax Relief Fund for the nonfederal share under the Medical Assistance (Medicaid) program of the costs of certain services provided to minors. The amount of property tax relief moneys provided to counties is reduced by the amount of the appropriation.
This division includes a number of provisions to separate the overall property tax limitation on counties from the county Mental Health, Mental Retardation, and Developmental Disabilities (MH/MR/DD) Services Fund, which itself is subject to limitations. The Act provides that the amount of property tax relief paid to counties from the Property Tax Relief Fund is not subtracted from both the county general property tax limitation and the MH/MR/DD Fund levy authority.
Chapter 444 is also amended to provide that the provision allowing an inflation increase for certain property taxes levied by the county does not apply to the levy for the MH/MR/DD Fund. If a county did not levy the maximum amount authorized for the MH/MR/DD Services Fund in FY 1996-1997, the county may increase the levy to the maximum amount in FY 1997-1998 provided the increase is offset by a corresponding decrease in the county's levy for general services.
Chapter 331, relating to county home rule, is amended to authorize a county to levy for the costs of substance abuse services under the supplemental levy for county general services. Under prior law, amended in the 1995 Legislative Session, substance abuse treatment was interpreted to be part of the supplemental levy authority for mental health treatment. When the mental health services provisions of the supplemental levy were stricken in the 1995 Acts and moved to their own fund, the supplemental levy authority no longer explicitly provided for substance abuse services. The Act provides for explicit authority with an immediate effective date of May 31, 1996.
Chapter 331 provisions relating to the County Mental Health, Mental Retardation, and Developmental Disabilities (MH/MR/DD) Services Fund are amended to remove a clause stating that if otherwise provided by state law, the dollar limit for a levy under the fund may be exceeded. In addition, the Act provides that various statutes allowing a county to levy additional taxes for an unusual need or any other purpose do not apply to the MH/MR/DD Services Fund levy.

THE GOVERNOR VETOED THE FOLLOWING:
• 1. Various appropriations from lottery revenues remaining from FY 1994-1995, including the following:
  Agri-entrepreneurship Education project; spillway at Hickory Grove Lake; summer youth program in Hawkeye Area Agency on Aging region; Louis Sullivan Building in Algona; support for the Iowa Cooperative Foundation; for costs of fixing sewage line, expanding phone system, and installing natural gas pipeline at Iowa Lakeside Laboratory; community grants for projects, including railroad projects, related to historical and cultural preservation and related to the Iowa Sesquicentennial; community grants for purchase or replacement of playground equipment; Boone County for paving of Arboretum Road; costs of dredging at Crystal Lake; for natural lake preservation efforts; to Southeast Polk Community School District to implement an interagency coalition strategy for addressing problems of children and families; for developing regional demonstration projects for youth between ages 13 and 17; for community grants to be used in the removal of waste tires; urban facility grant to provide shelter services for runaways ages 11 through 17; for the Heartland Discovery Center; restoration and development of Lake Ahquabi; and for completion of the Cherokee Area Rural Economic Development Center.
• 2. A provision setting a limit of $1,500,000 on the amount of lottery revenues retained in the Lottery Fund when moneys are transferred.
• 3. A supplemental appropriation for FY 1995-1996 to the State Hygienic Laboratory for conducting analyses of test samples for alcohol or illegal controlled substances.
• 4. An appropriation for the E911 Communications Council created in the Act.
• 5. An amendment to Chapter 34A changing the membership composition of the county joint 911 service boards.
• 6. Amendments to Chapter 232, the Juvenile Justice Code, creating runaway assessment and treatment centers and local planning provisions. The Governor's message noted the final Act no longer included funding for the vetoed provisions.
• 7. The following provisions were vetoed in Division IX of the Act, relating to economic development:
  • A requirement that all projects approved under the Community Economic Betterment Program must pay starting wages of 90 percent or higher of the average county or regional wage.
  • A $50,000 appropriation to be distributed on a per capita basis to each council of governments.
  • A $100,000 allocation for a grant program for annual community agricultural heritage celebrations.
  • A provision authorizing five full-time equivalent positions for the Iowa Seed Capital Corporation and requiring the corporation to transfer its portfolio of investment as of June 30, 1997, to a private entity.
  • A provision requiring that the Departments of Workforce Development, Personnel, and Management ensure that all nonsupervisory full-time equivalent positions authorized and funded for the Department of Workforce Development will be utilized to reduce the backlog of cases.
  • An allocation of $800,000 for a summer youth program for cities of over 150,000 in population.
  • A provision requiring the Department of Workforce Development to continue to provide services in all communities in which workforce centers were operating on July 1, 1993, and prohibiting the department from reducing the number of hearings or significantly altering the schedule for hearings.

HOUSE FILE 2065 - Supplemental Appropriations -- Judicial Department Planning (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act provides a $50,000 supplemental appropriation to the Judicial Department for the fiscal year beginning July 1, 1995, to be used by the Iowa Supreme Court's Commission on Planning for the 21st Century, formed to provide long-range and strategic planning for the courts. Any moneys not expended by June 30, 1996, shall remain available to the department for use on this project during the subsequent fiscal year.
The Act takes effect February 12, 1996.

HOUSE FILE 2114 - Miscellaneous Supplemental Appropriations (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act makes supplemental appropriations for fiscal year 1995-1996. A number of provisions were item vetoed by the Governor. These appropriations are made from the General Fund of the State unless otherwise noted.
Supplemental appropriations are made to the following entities for the following purposes:

• Department of Economic Development for the Strategic Investment Fund and for promotional efforts associated with the Iowa Sesquicentennial.
• Department of Human Services for state child day care assistance for low-income persons.
• Department of Education to provide assistance to school districts participating in a financial reporting pilot project.
• State School for the Deaf and the Iowa Braille and Sight Saving School for technology and other needs.
• Department of General Services for utility costs.
• Department of Inspections and Appeals for funding of an additional employee for racetrack regulation.
• Department of Personnel from the Iowa Public Employees' Retirement Fund for operational costs of the retirement system.
• Department of Revenue and Finance for internal resources management.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. An appropriation to the State Public Defender for court-appointed attorney fees for indigent persons.
• 2. An appropriation to the Department of Revenue and Finance and associated statutory provisions to pay income tax refunds to certain federal retirees who did not previously file a claim for a refund or who filed after the statute of limitations for filing refund claims had expired The refund would have been for taxation of federal pensions benefits that was found to be unconstitutional by the United States Supreme Court in Davis v. Michigan Department of Treasury.

The Act takes effect March 19, 1996.

HOUSE FILE 2416 - Appropriations -- Administration and Regulation (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act relates to and appropriates $84.1 million from the General Fund of the State to various state departments, agencies, funds, and certain other interstate and national entities for the fiscal year beginning July 1, 1996, and ending June 30, 1997.
The state departments and agencies include the Auditor of State, Iowa Ethics and Campaign Disclosure Board, Department of Commerce, Department of General Services, Office of Governor including the Lieutenant Governor and Terrace Hill quarters, Department of Inspections and Appeals, Department of Management, Department of Personnel, Iowa Public Employees' Retirement System, Department of Revenue and Finance, Secretary of State, and Treasurer of State. The Act includes funding for the regulation of pari-mutuel racetracks and gaming and excursion gambling boats, and the operation of the state lottery.
The Act also appropriates funding for the state's membership on the Commission on Uniform State Laws, the National Conference of State Legislatures, the Council of State Governments, the National Governors' Association, and law enforcement training reimbursements.
The Act also authorizes the assessment of a surcharge on workers' compensation weekly benefits paid during the fiscal year commencing July 1, 1994, for the Second Injury Fund. The surcharge assessment is limited to a maximum of $870,000. The Act creates a Second Injury Task Force under the direction of the Industrial Commissioner to study the basic role and purpose of the Second Injury Fund and to determine its needs for continuation and source of funding.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• A provision directing the Department of Management to state the number of staff authorized for a state agency in terms of full-time equivalent positions when addressing staffing targets for state agencies.

HOUSE FILE 2421 - Appropriations -- Transportation, Infrastructure, and Capital Projects (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act relates to and makes appropriations to the State Department of Transportation, makes appropriations for capital projects from the Rebuild Iowa Infrastructure Fund, and makes other miscellaneous changes.

Division I - State Department of Transportation

Division I appropriates moneys from the General Fund of the State, the Road Use Tax Fund, and the Primary Road Fund to the State Department of Transportation for the fiscal year beginning July 1, 1996, and ending June 30, 1997. The department is directed to work with the Legislative Fiscal Bureau to develop a process to provide quarterly reports of the Highway Construction Program. The department is also required to report to the Transportation Appropriations Subcommittee on implementation of recommendations from the Governor's Blue Ribbon Road Use Task Fund Tax Force, and is directed to establish certain highway maintenance standards, to take into account the location of underground facilities when engineering projects, and to take affirmative action to resolve the school safety issues associated with access on Highway 218, located between Ainsworth and Riverside.

THE GOVERNOR ITEM VETOED THE FOLLOWING IN DIVISION I:
• A provision allocating $300,000,000 to the State Department of Transportation from the Primary Road Fund for construction, reconstruction and maintenance of the state highway system. These moneys are statutorily appropriated in Iowa Code Section 313.4.

Division II - Capital Projects

Division II appropriates $66,140,000 from the Rebuild Iowa Infrastructure Fund of the State to the State Board of Regents over a three-year period for construction and renovation of the biological sciences complex at the University of Iowa, construction and renovation of the engineering building at the University of Iowa, for construction of the national advanced driving simulator building at the University of Iowa, for construction and renovation of the intensive livestock research facilities at Iowa State University, for Phase I construction of the engineering teaching and research complex at Iowa State University, and for construction of the School of Music classroom building/performing arts center at the University of Northern Iowa.
In addition, infrastructure moneys are appropriated to the Department of Corrections and the Department of Cultural Affairs for certain projects. Moneys in the amount of $39,200,000 are appropriated to the Department of General Services for exterior State Capitol Building restoration, interior State Capitol Building restoration, renovation of the Old Historical Building, renovation of the Lucas tunnel, and renovation of the Lucas State Office Building. Division II also appropriates moneys to the Department of Human Services, the Department of Natural Resources for state park facilities, the Department of Public Defense, the Department of Public Safety, $1,000,000 to the State Department of Transportation for recreational trails, the Commission of Veterans Affairs, $5,000,000 to the Iowa State Fair Foundation, and to county fairs. The Division appropriates moneys from marine fuel tax receipts deposited in the General Fund of the State to the Department of Natural Resources.

THE GOVERNOR ITEM VETOED THE FOLLOWING IN DIVISION II:
• 1. An appropriation from the Rebuild Iowa Infrastructure Fund to the Department of Education for the following:
  • a. An appropriation of $500,000 to construct a Rural Heritage Center at Southwestern Community College and intent language for the fiscal year beginning July 1, 1997, to appropriate an additional $500,000.
  • b. An appropriation of $600,000 for improvement and maintenance of institutional roads on community college campuses.
• 2. An appropriation of $1,600,000 from the Rebuild Iowa Infrastructure Fund to the Department of General Services for the fiscal year beginning July 1, 1998, for renovation of the Old Historical Building.
• 3. A provision stating the intent of the General Assembly that the first and second floors of the Lucas State Office Building be used primarily by the General Assembly and other legislative agencies.

Division III - Statutory Changes - Miscellaneous

REBUILD IOWA INFRASTRUCTURE FUND. This Division requires the Revenue Estimating Conference to estimate the amount of revenue to be deposited in the Rebuild Iowa Infrastructure Fund from gambling revenues and from interest earned on the Cash Reserve Fund and the Economic Emergency Fund for future fiscal years. It limits appropriations from the Rebuild Iowa Infrastructure Fund to vertical infrastructure projects and defines "vertical infrastructure" to include only land acquisition and construction, major renovation and repair of buildings, appurtenant structures utilities, site development, and recreational trails. "Vertical infrastructure" does not include routine, recurring maintenance or operational expenses or leasing of a building, appurtenant structure or utility without a lease-purchase agreement. The provision allows appropriations to be made to fund the completion of Part III of the Iowa Communications Network (ICN). This provision takes effect July 1, 1997. Finally, the Act appropriates the first $60,000,000 of gambling revenues to the General Fund of the State and the remainder to the Rebuild Iowa Infrastructure Fund.

ICN. The Division grants access to the ICN to the Department of Public Safety and the Department of Public Defense to operate a shared data network to provide emergency information. STATE CAPITOL VIEW PRESERVATION. The Division requires the Department of General Services to develop a state capitol view preservation plan to ensure the most scenic views of the State Capitol Building remain unobstructed.

COMMISSION OF VETERANS AFFAIRS - CONSTRUCTION PROGRAM. The Division requires the Commission of Veterans Affairs to work with the Department of General Services to develop the commission's multiyear construction program.

COUNTY FAIRS. The Division requires a county fair society to file for state aid with the Treasurer of State, to publish financial statements, and specifies how funds will be allocated to county fair societies.

HIGHWAY SIGNS. The Division increases the fees for placing signs adjacent to highway rights-of-way.

RECREATIONAL TRAILS. The Division repeals the existing standing appropriation of $1,000,000 from the Road Use Tax Fund for recreational trails. The Governor item vetoed a standing appropriation of $1,000,000 from the Rebuild Iowa Infrastructure Fund, but left intact a $1,000,000 appropriation for the fiscal year beginning July 1, 1996.

COMMERCIAL VEHICLE FINES. Provisions in the Division require that all fines and fees attributable to commercial vehicle violation citations be deposited in the Road Use Tax Fund and are effective July 1, 1997.

SOYDIESEL DEMONSTRATION PROJECT. The Division requires the State Department of Transportation to conduct a soydiesel demonstration project and allocates $100,000 from the Value-Added Agricultural Products and Processes Financial Assistance Fund. The Act also provides for nonreversion of moneys currently being used for an existing soydiesel demonstration project.

ACCESS IOWA HIGHWAYS. The Division requires designation of those portions of the Commercial and Industrial Network essential for the support of intrastate transportation and commerce and essential for ensuring Iowans direct access to the nation's system of interstate highways and transportation services as Access Iowa Highways. The State Department of Transportation is required to expedite and accelerate development of Access Iowa Highways.

THE GOVERNOR ITEM VETOED THE FOLLOWING IN DIVISION III:
• 1. A provision appropriating additional excess gambling revenues to the Rebuild Iowa Infrastructure Fund in the following amounts: for the fiscal year beginning July 1, 1997, the first $50,000,000 would be transferred to the General Fund of the State and the remainder to the Rebuild Iowa Infrastructure Fund; for the fiscal year beginning July 1, 1998, the first $40,000,000 would be transferred to the General Fund of the State of the State and the remainder to the Rebuild Iowa Infrastructure Fund; and for the fiscal year beginning July 1, 1999, and for each fiscal year thereafter, the first $32,500,000 to the General Fund of the State and the remainder to the Rebuild Iowa Infrastructure Fund.
• 2. A requirement that the State Department of Transportation develop an updated transportation policy by January 15, 1997, and submit the plan to the General Assembly for approval, modification or rejection.
• 3. A $1,000,000 standing appropriation from the Rebuild Iowa Infrastructure Fund for recreational trails. The Division contains a $1,000,000 appropriation for the fiscal year beginning July 1, 1996, which was not item vetoed.
• 4. A provision requiring the Department of Personnel, the Auditor of State, the Attorney General's Office, the Department of Inspections and Appeals, the Department of Management, and the Department of Revenue and Finance to request appropriations from the General Fund of the State that are currently appropriated or reimbursed from the Road Use Tax Fund, Primary Road Fund, motor vehicle fuel tax receipts, or from motor fuel taxes.
• 5. A requirement that the Department of General Services coordinate a Vertical Infrastructure Definition Task Force.
• 6. Provisions requiring an infrastructure study; an interim study on local infrastructure, bonding, and state financial assistance needs; and a space allocation study.
• 7. A contingency appropriation from excess General Fund of the State moneys to the Rebuild Iowa Infrastructure Fund if the transfer of gambling revenues does not equal at least $48,400,000.

Division IV - Physical Infrastructure Assistance Program

Division IV establishes the Physical Infrastructure Assistance Program within the Department of Economic Development to provide financial assistance for business or community physical infrastructure development or redevelopment projects. The Act appropriates $2,000,000 from the Rebuild Iowa Infrastructure Fund to the Department of Economic Development to be deposited in the Physical Infrastructure Assistance Fund. For fiscal years beginning July 1, 1996, and July 1, 1997, an additional $10,000,000 is appropriated to the Physical Infrastructure Assistance Fund to be used only for providing loan guarantees, irrevocable letters of credit, and indemnification for liability agreements entered into prior to October 15, 1996. In addition, Division IV directs the Department of Natural Resources to work with the Department of Economic Development to identify environmentally contaminated sites and to provide an assessment, emergency response, and any further action, including remediation of the site, that the department deems appropriate.

THE GOVERNOR ITEM VETOED THE FOLLOWING IN DIVISION IV:
• 1. A provision relating to reimbursement of costs to the Department of Economic Development from the Iowa Comprehensive Petroleum Underground Storage Tank Fund.
• 2. A requirement that distribution of certain moneys be distributed only if approved by the Legislative Fiscal Committee.
• 3. A $200,000 allocation from the Hazardous Substance Remedial Fund to the Physical Infrastructure Assistance Fund.

Division V - Administrative Revocation of Driver's Licenses for Drug-Related Convictions

Division V establishes a revised procedure for the revocation of driver's licenses after certain drug-related convictions. The prior process of administrative revocation subsequent to the criminal conviction was held unconstitutional in the Dressler v. Iowa Department of Transportation case. This Division takes effect May 30, 1996.

HOUSE FILE 2444 - Appropriations -- Energy Conservation -- Petroleum Overcharge Funds (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys for the fiscal year beginning July 1, 1996, and ending June 30, 1997, from the Energy Conservation Trust, which receives deposits of settlements from oil overcharge refunds, to the Division of Community Action Agencies of the Department of Human Rights for energy conservation programs for low-income persons and to the Department of Natural Resources for the state Energy Conservation Program and for administration of petroleum overcharge programs.

HOUSE FILE 2472 - Appropriations -- Justice System (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys for the fiscal year beginning July 1, 1996, and ending June 30, 1997, to the Department of Justice; Office of Consumer Advocate; Board of Parole; Department of Corrections, including correctional facilities and the judicial district departments of correctional services; Judicial Department; State Public Defender; Iowa Law Enforcement Academy; Department of Public Defense; and the Department of Public Safety; and contains related statutory provisions. Under the Act, the total appropriations to the justice system of $333.3 million reflect an increase in appropriations from the General Fund of approximately $33.1 million from the FY 1996 appropriation.

DEPARTMENT OF JUSTICE. The Act increases funding for the Department of Justice by $1.4 million compared to the estimated FY 1996 appropriations. These appropriations include amounts for the Office of the Attorney General, the Prosecuting Attorneys Training Program, amounts for victim assistance grants to care providers of services to crime victims of domestic abuse or rape and sexual assault, and the Governor's Alliance on Substance Abuse Prosecuting Attorneys Program. The Act also provides an appropriation to the Office of the Attorney General to provide for Legal Services for persons in poverty grants. The Act establishes statutory authority for the Attorney General to contract with an eligible nonprofit organization to provide legal assistance to eligible individuals in poverty and provides criteria for the Attorney General in selecting the nonprofit organization eligible for the legal services grants. The Act also authorizes the Attorney General to expend moneys deposited in the Environmental Crime Fund of the department for use in the investigation and prosecution of environmental crimes. The Act also provides for the establishment of an anti-obscenity enforcement unit within the Office of the Attorney General. The Act also provides that the department may use moneys in the Victim Compensation Fund for the purpose of awarding funds to programs that provide services and support to victims of domestic abuse or sexual assault.

DEPARTMENT OF CORRECTIONS. The Act increases the General Fund of the State appropriation to the Department of Corrections by $11.5 million from the estimated FY 1996 appropriation.
The Act authorizes the construction of a 750-bed medium security prison and the renovation of Cellhouse 17 at Fort Madison with prison infrastructure revenue bonds. The Act increases, effective July 1, 1997, the annual amount of criminal fines and fees deposited to the Prison Infrastructure Fund from $8 million to $9.5 million. The Act also appropriates moneys for additional correctional officers and provides funding for the Criminal Justice Program at the University of Northern Iowa.

JUDICIAL DEPARTMENT. The Act provides for an additional $1.7 million in funding compared to the estimated FY 1996 appropriation and provides for an additional three district court judges, four juvenile court officers, and expansion of the Court-Appointed Special Advocate Program. The Act also provides funds to increase the salaries of all associate juvenile judges and associate probate judges. The Act requires that $468,800 from the Court Technology and Modernization Fund be used for a records management program utilizing CD-ROM technology. The Act also provides that moneys in the Enhanced Court Collections Fund shall be used by the department for purposes beyond the Iowa Court Information System, such as records management equipment and other technological improvements.

INDIGENT DEFENSE. The Act appropriates an additional $7.2 million for indigent defense and the State Public Defender's Office compared to the FY 1996 appropriation.

IOWA LAW ENFORCEMENT ACADEMY. The Act appropriates an additional $52,000 for the Iowa Law Enforcement Academy compared to the FY 1996 appropriation. The Act also creates an additional $5 surcharge on fines for drug or alcohol offenses and provides that the surcharge shall be transferred to the academy for use in the Drug Abuse Resistance Education (D.A.R.E.) Program.

PUBLIC SAFETY. The Act appropriates an additional $10.3 million to the Department of Public Safety compared to the estimated FY 1996 appropriation. The Act funds the state match to add 12 additional state troopers through the federal Community-Oriented Policing Services Program. The Act also provides for the establishment of the Office of the State Medical Examiner and requires that any autopsy fees collected be deposited in the General Fund of the State. The Act also provides $875,000 for volunteer fire fighter training. The Act requests the Legislative Council to establish an interim study committee concerning the enforcement of gambling activities on excursion gambling boats.

MISCELLANEOUS. The Act amends Section 37.10 to provide that commissioners for memorial halls and monuments need only be a resident of the county where the hall or monument is located, and not a resident of the city where the hall or monument is located.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. A provision authorizing the expenditure of $50,000 from funds appropriated to the Department of Justice for the establishment of an Office of Veterans Advocate within the department. Statutory provisions establishing the veterans advocate and the advocate's duties were also vetoed.
• 2. A provision providing that the Department of Corrections continue to study the development of the concept of a super-maximum security facility for inmates.
• 3. A provision appropriating $278,000 to the Department of Corrections for increased inmate costs at correctional institutions.
• 4. A provision appropriating $100,000 to the Department of Corrections for the assistance and support of the judicial district departments of correctional services in implementing the requirements for inmate hard labor.
• 5. A provision requesting the Iowa League of Cities and the Iowa State Association of Counties to convene a summit to consider Iowa's current regulations concerning law enforcement training and requesting the Legislative Council to create an interim study committee to consider the results of the summit.
• 6. A provision establishing a state task force on local corrections infrastructure and crime prevention and appropriating $150,000 to the Department of Justice for hiring an independent consultant to facilitate the establishment of the task force. The state task force would receive recommendations from local task forces established in each judicial district concerning proposals for local corrections infrastructure. The state task force would then forward its recommendations, and the recommendations of each local task force, to an interim study committee established by the Legislative Council to consider the recommendations and submit a report of its findings and recommendations to the General Assembly.

HOUSE FILE 2477 - Appropriations -- Education (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys from the General Fund of the State to the College Student Aid Commission, the Department of Cultural Affairs, the Department of Education, and the State Board of Regents and its institutions. This year's Act appropriated a total of $788.8 million and provided 17,507.68 full-time equivalent positions (FTEs), which exceeds the Governor's recommendations by $500,000 and 6 FTEs and exceeds last year's education appropriations Act (S.F. 266) by $14.2 million and 54.2 FTEs.

COLLEGE STUDENT AID COMMISSION. The Act appropriates moneys to the College Student Aid Commission for general administrative purposes, Iowa tuition and vocational-technical tuition grants, forgivable loans to Iowa students attending the University of Osteopathic Medicine and Health Sciences, an initiative directing primary care physicians to areas of the state experiencing physician shortages, student aid programs, and the Stafford Loan Program. Compared to FY 1996, the commission will receive an increase of $3.2 million.
From the Scholarship and Tuition Grant Reserve Fund, the Act appropriates moneys remaining following transfer as provided by the Code for the fiscal year ending June 30, 1995, and divides the moneys equally for purposes of the Iowa Vocational Technical Tuition Grants and the Work-Study Program during FY 1997. This provision takes effect May 29, 1996.
The commission is directed to do the following, and to submit its proposals and results to the General Assembly by January 1, 1997:

• Study and consider the possible differentiations in the grants awarded based upon parental income and assets under the Iowa Tuition Grant Program.
• With the University of Osteopathic Medicine and Health Sciences and the Legislative Fiscal Bureau, cooperatively develop and propose uniform time periods of medical practice to be served in the state in return for an allocation of state funds for purposes of the university.

Funds remaining in the Scholarship and Tuition Grant Reserve Fund from FY 1995 and FY 1996 are transferred to the commission to be used for Iowa Vocational-Technical Tuition Grants.
The Act increases the maximum amount of a tuition grant to a qualified full-time student for the fall and spring semesters, or the trimester equivalent, from $2,900 to $3,150.
The Act creates a National Guard Tuition Aid Program subject to an appropriation of sufficient funds by the General Assembly. Funds transferred in the Act for purposes of this program were item vetoed by the Governor.

DEPARTMENT OF CULTURAL AFFAIRS. The Act funds the Arts, Historical and Administration Divisions of the Department of Cultural Affairs, historic sites, and community cultural grants. The department's total appropriation is increased by $339,000 over FY 1996, and includes new moneys for the following: compliance with the federal Native American Graves Protection and Repatriation Act, a part-time archaeologist position, additional security for the State Historical Building, the Western Historic Trails Center, and the Statewide Caucus on Arts and Cultural Enhancement.
The Iowa Arts Council is directed to develop and implement a simplified, uniform grant application for use by all grant applicants and to prescribe a uniform grant application renewal period for all grant applicants by January 15, 1997.

DEPARTMENT OF EDUCATION. The Act appropriates moneys for purposes of the Department of Education's general administration, vocational education administration, the Board of Educational Examiners, the Division of Vocational Rehabilitation Services, independent living, the State Library, the regional library system, the Public Broadcasting Division, school food service, textbooks of nonpublic school pupils, the Vocational Agriculture Youth Organization and other youth activities, family resource centers, the Center for Assessment, the Career Pathways Program, vocational education to secondary schools, and community colleges. From additional funds transferred from Phase I to Phase III in the Educational Excellence Program, the Act distributes funds to a geography alliance, for a management information system, to the New Iowa Schools Development Corporation, and for support of the Iowa Mathematics and Science Coalition.
The department is directed to conduct the following studies and report its findings to the General Assembly and the Legislative Fiscal Bureau by January 1, 1997:

• A study of the special education funding system. The goals of the study are set forth in the Act.
• A study of the trends in the number of students requiring services to become proficient in the English language and the current and projected costs related to providing such services by local school districts.
• A study of the funding for educational programs provided for each child living in child foster care facilities or in psychiatric hospitals or institutions.
• A study of the means by which student employability skills may be measured, including, but not limited to, the employability skills of students at various levels of their secondary education and students who have graduated, the businesses that employ them, and the institutions of higher learning that admit the graduates.

The Act provides that a student who has been expelled or suspended from school, and who has not met the conditions of the expulsion or suspension, shall not be permitted to enroll in a school district without the approval of a majority of the board members of the school district. The Act also permits a teacher, principal or superintendent who suspended a student to readmit the student only when the conditions of the suspension have been met.
The Act changes the tax certification filing date affecting the year in which a special annual levy is to begin from April 1 to May 1.
The Act directs the department to establish, by July 1, 1997, an accreditation process for area education agencies and describes the components of the process to be established. The Act also directs the State Board of Education to develop by July 1, 1997, standards and rules for the accreditation of area education agencies, and lists the specific standards to be adopted. The rules developed by the state board for the accreditation process shall include provisions for removal of accreditation. The Act also directs the board of directors of an area education agency to meet annually with the members of the boards of directors of the school districts located within its boundaries.
The department is directed to submit an annual report of funds expended and activities accomplished in the K-12 and community college management information system to the Legislative Fiscal Bureau and the General Assembly by January 1, 1997. The report shall include goals developed by the department for the system and a timeline for the accomplishment of the goals. The department is also directed to submit a report to the General Assembly by January 1, 1997, the amount of state funding it anticipates will be needed to fund the department's future participation with the Center for Assessment, and the number of years participation will be necessary.
The Act also prohibits the board of directors of a community college from authorizing the creation of a dental hygienist program until after the adjournment of the 1997 Legislative Session unless the board filed a dental hygiene program intent form with the department by December 1, 1995. This provision takes effect May 29, 1996.
The Act provides that funds appropriated and allocated for advanced placement remaining unencumbered and unobligated on June 30, 1996, shall not revert to the General Fund of the State but shall be distributed to the department for FY 1997 as follows: $50,000 for participation by the department in the National Assessment of Education Progress to determine the academic achievement of Iowa students in math, reading, science, United States history, or geography; and $19,000 for purposes of providing grants to support qualifying teams for a worldwide academic competition, the Odyssey of the Minds. If funds available are insufficient to fully fund the appropriations made in this provision, the amounts appropriated in the provision shall be reduced proportionately. This provision takes effect May 29, 1996.
The Act expresses the intent of the General Assembly that the chairpersons and ranking members of the Joint Appropriations Subcommittee on Education, the Legislative Fiscal Bureau, and the Legislative Service Bureau meet with representatives from the International Center for Gifted and Talented Education and the First in the Nation in Education Foundation during the 1996 legislative interim to determine and recommend a permanent funding source and the amount of funding needed to support the center and the foundation. It is further the intent of the General Assembly that the International Center for Gifted and Talented Education fund the Gifted and Talented Summer Institute during FY 1997 from the center's FY 1997 standing appropriation.
The Act transfers 50 percent of any moneys remaining after statutory transfers in the Interest for Iowa Schools Fund in FY 1997 to the International Center Endowment Fund and transfers the other 50 percent to the First in the Nation in Education Foundation.
The Act increases the membership of the State Commission of Libraries with the addition of the Director of the Department of Education or the director's designee.
Chapter 260D, Funding for Community Colleges, is repealed under the Act effective May 29, 1996, and replaced by a provision requiring that state aid be allocated to each community college in the same proportions provided for in S.F. 266, the education appropriations Act enacted in 1995. The Code Editor is directed to repeal this new section effective July 1, 1997. The Act directs the department, in consultation with the Iowa Association of Community College Trustees, to submit to the General Assembly recommendations for a funding formula identifying and addressing community college needs by January 1, 1997. The Act moves language from repealed Chapter 260D, that is still appropriate for use in the Code, to Chapter 260C, Community Colleges, and makes conforming changes.
The Act pushes back the timelines for the use and establishment of approval and accreditation processes relating to community colleges from 1994 to 1997, and from 1995 to 1998. These provisions take effect May 29, 1996, and apply retroactively to June 30, 1994.
Community colleges, under the Act, are permitted to contract with other community colleges to expand the availability of Career Opportunity Program services and increase the number of students served by the program, and to establish a separate account for purposes of the program. The Act provides that not less than 80 percent of the funds appropriated by the state for the program shall be used for assistance to students.
The School Budget Review Committee receives an additional duty under the Act with the establishment of a community college budget review procedure. Upon the committee's motion, or upon the request of a community college, the committee is directed to review unusual circumstances of community colleges and may grant supplemental state aid to the community college from funds appropriated to the department for community college budget review purposes. However, no appropriation was made for this purpose by the General Assembly during the 1996 Regular Session.
The Act permits the board of directors of a merged area that failed to certify for a cash reserve levy by March 15, 1982, and March 15, 1983, to certify for a cash reserve levy by April 15, 1997, and April 15, 1998.
The Board of Educational Examiners is required by the Act to adopt rules requiring specificity in written complaints filed by individuals with personal knowledge of an alleged violation, providing that the board's jurisdictional requirements are met on the face of the complaint before initiating an investigation of allegations, providing that any investigation be limited to the allegations contained on the face of the complaint, providing for an adequate interval between the receipt of a complaint and public notice of the complaint, permitting parties to mutually agree on a resolution, allowing the respondent the right to review any investigative report upon a finding of probable cause for further action by the board, requiring that the conduct providing the basis for the complaint occurred within three years of discovery of the event by the complainant, and requiring complaints to be resolved within 180 days unless good cause can be shown for an extension.

STATE BOARD OF REGENTS. The Act appropriates moneys to the State Board of Regents for board operations, tuition replacement, the Southwest Iowa Graduate Studies Center, the Tristate Graduate Center, the Quad-Cities Graduate Studies Center, and for the State University of Iowa, Iowa State University of Science and Technology, the University of Northern Iowa, the State School for the Deaf, the Iowa Braille and Sight Saving School, and the tuition and transportation costs for students residing in the Iowa Braille and Sight Saving School and the School for the Deaf.
The board is directed to report to the chairpersons and ranking members of the Joint Appropriations Subcommittee on Education any moneys reimbursed by the institutions under the control of the board that augment the moneys appropriated for the board office, and is further directed to quarterly prepare and submit to the General Assembly and the Legislative Fiscal Bureau a report regarding the board office budget and the reimbursements provided to the board by the institutions of higher learning under the control of the board.
The Act strikes language relating to the purchase of garbage can liners by the board; to the publishing of pamphlets, bulletins and reports by the board; and to a requirement that the board produce an annual report listing plastic products regularly purchased by the board for which recycled content product alternatives are available, and containing information relating to soybean-based inks and plastic garbage can liners regularly purchased by the board.

STATE UNIVERSITY OF IOWA. The Act directs the University of Iowa Hospitals and Clinics to submit quarterly a report regarding the proportion of the appropriation received under the Act that is spent on medical education. The Act also expresses the General Assembly's intent that FY 1998 be the last fiscal year in which funds are appropriated for the planning and construction of the national advanced driving simulator.

IOWA STATE UNIVERSITY. The Act directs the university to submit a report concerning the population served and each service provided by the Iowa Cooperative Extension Service in Agriculture and Home Economics to the chairpersons and ranking members of the Joint Appropriations Subcommittee on Education and the Legislative Fiscal Bureau by January 1, 1997.

IOWA BRAILLE AND SIGHT SAVING SCHOOL/STATE SCHOOL FOR THE DEAF. The Act directs the Department of Revenue and Finance to pay the State School for the Deaf and the Iowa Braille and Sight Saving School the moneys collected from the counties during FY 1997 for expenses relating to prescription drug costs at those schools.
The Act repeals sections of the Code that provide a standing unlimited appropriation regarding embalming and transportation costs of a patient at the Psychiatric Hospital, relating to a Teacher Loan Payment Program under the Guaranteed Student Loan Program, relating to the Graduate Student Financial Assistance Program, and relating to a retirement allowance for teachers retiring before 1953.

THE GOVERNOR ITEM VETOED THE FOLLOWING:
• 1. A provision directing the College Student Aid Commission to use funds remaining from tuition grants awarded to affected students who do not transfer to an accredited private institution for FY 1997, for purposes of the National Guard Tuition Aid Program, enhanced forgivable loans, chiropractic graduate student forgivable loans, and for students enrolled in a licensed school of cosmetology arts and sciences or a licensed barber school.
• 2. A provision directing the Department of Education to review the reports required of the department by the General Assembly since 1980.
• 3. Provisions that would prohibit the First in the Nation in Education Foundation from using noncash contributions to satisfy the foundation's match requirement to receive funds from the Interest for Iowa Schools Fund.
• 4. A provision stating the intent of the General Assembly that the State Board of Regents explore options relating to locating the graduate centers under its control within the appropriate campuses of the community college system, and consider the benefits of fully utilizing the Iowa Communications Network to maximize efficiency.
• 5. A provision directing the State Board of Regents to use any increase it realizes from indirect cost reimbursements, refunds and reimbursements, interest, and other categories within the general operating budgets of the institutions of higher learning under its control during FY 1997, for building repair, deferred maintenance or fire safety at the respective institutions, and prohibiting the board from instead increasing budget ceilings.
• 6. A provision permitting community colleges to use cash reserve levy funds for the acquisition, lease, lease-purchase, installation, and maintenance of instructional technology equipment, and for staff development and training related to instructional technology.
• 7. A provision requiring the State Board of Regents to annually report to the General Assembly on the facilities overhead use allowance and the amount of building and equipment use allowances of the overall indirect cost recovery on federally sponsored research programs.
• 8. A provision denying to the State Board of Regents certain exceptions allowed to state departments and agencies from a requirement relating to the purchase of products made by Iowa State Industries, also known as "Prison Industries."
• 9. An appropriation of $75,000 from additional funds transferred from Phase I to Phase III of the Educational Excellence Program for purposes of the Iowa Law and School Safety Project.

HOUSE FILE 2486 - Federal Block Grant Appropriations (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys to various state agencies for the federal fiscal year beginning October 1, 1996, and ending September 30, 1997, from the following federal block grants: Substance Abuse Prevention and Treatment, Community Mental Health Services, Maternal and Child Health Services, Preventive Health and Health Services, Drug Control and System Improvement, Stop Violence Against Women, Community Services, Community Development, Low-Income Home Energy Assistance, and Social Services. The Act requires that moneys be distributed in accordance with the applicable federal requirements. The Act establishes a procedure if more or less federal funding is received than predicted.
The Act provides that if the Governor determines that federal low-income home energy assistance funds are insufficient, the Iowa Utilities Board may issue an order prohibiting disconnection of service from November 1 through April 1 if the household income falls at or below 150 percent of the federal poverty level. The Act allows for early implementation of the Welfare Reform Block Grant under certain conditions and requests that the Legislative Council review issues associated with federal funding and federal block grants.

HOUSE FILE 2497 - Compensation for Public Employees (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act relates to and appropriates moneys to fund salary adjustments for state-appointed nonelected officers, justices, judges, magistrates, employees subject to collective bargaining agreements, and noncontract employees.
For the fiscal year beginning July 1, 1996, the salary rates of justices, judges and judicial magistrates are increased by approximately 4 percent over the rate paid in the previous fiscal year. Senior judges receive a salary of $5,200. Other state officers and state employees, except the officers and employees of the State Board of Regents, receive a 2.5 percent increase with the pay period beginning June 20, 1996. A state employee may also receive a merit step increase, or, if the employee is not eligible to receive a merit increase, a one-time cash bonus of $300 for full-time employees and $150 for part-time employees is authorized.
Salary ranges for appointed state officers are increased by approximately 2.5 percent, except salary range 6, which is increased by 13.1 percent.
The State Board of Regents officers and employees not under collective bargaining receive pay increases similar to the Regents contract employees.
The Act requests an interim legislative study of judicial compensation to focus on the ability to recruit and retain qualified candidates in the Judicial Department.
The Act also authorizes the Executive Council to use surplus funds in the health insurance reserve or terminal liability accounts to reduce health insurance premium costs for the fiscal period beginning August 1996 through August 1997.
The Legislative Fiscal Bureau is directed to prepare a report to the standing Committees on Appropriations that projects the total costs of all salary increases including the annualization of salaries for the next fiscal biennium.
The Act funds the salary adjustments for the fiscal year beginning July 1, 1996.

RELATED LEGISLATION

SENATE FILE 2030 - Mental Health and Developmental Disability Funding and Related Provisions (Complete summary under LOCAL GOVERNMENT.

This Act relates to state and county mental health and developmental disability funding provisions by amending provisions associated with the base year used for determining maximum county expenditures and state funding levels. The Act amends provisions initially enacted in 1995 Iowa Acts, Chapter 206, S. F. 69, and includes a state appropriation for Medical Assistance services provided to minors with mental retardation.

SENATE FILE 2063 - School Improvement Technology Program (Complete summary under EDUCATION.)

This Act establishes the School Improvement Technology Program for the allocation of funds to elementary and secondary education entities for the acquisition of instructional technology. The Act appropriates $15 million to the Department of Education from the Rebuild Iowa Infrastructure Account and $15 million from the General Fund of the State for FY 1997, and creates a standing limited appropriation of $30 million from the General Fund of the State for each of the next four fiscal years, FY 1998 through FY 2001.

SENATE FILE 2449 - Tax Revisions and Related Matters - ITEM VETOED BY THE GOVERNOR (Complete summary under TAXATION.)

Division III of this Act would have fully funded the amounts of the homestead tax credit, military service tax credit, and the elderly or disabled tax credit and rent reimbursement for FY 1997 and appropriated these amounts annually thereafter. Currently, these credits are funded only to the extent funded in FY 1993.
The Division would have taken effect July 1, 1996, and applied to homestead, military service, and elderly and disabled homestead tax credit and rent reimbursement claims payable in fiscal years beginning on or after July 1, 1996.

HOUSE FILE 570 - Center for Gifted and Talented Education and Related Funding Provisions (Complete summary under EDUCATION.)

This Act relates to the name of the International Center for Talented and Gifted Education and to the allocation of a portion of the interest from the Permanent School Fund to the endowment fund of the international center until such time as an appropriation is made by the General Assembly to the endowment fund of the international center.

HOUSE FILE 2256 - Implementation of New or Revised Federal Block Grants (Complete summary under LOCAL GOVERNMENT. This Act provides requirements for state agencies involving implementation of new or revised federal block grant provisions which affect local governments.

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