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Text: HSB00046                          Text: HSB00048
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House Study Bill 47

Bill Text

PAG LIN
  1  1    Section 1.  COUNTY MENTAL HEALTH, MENTAL RETARDATION, AND
  1  2 DEVELOPMENTAL DISABILITIES ALLOWED GROWTH FACTOR ADJUSTMENT.
  1  3 There is appropriated from the general fund of the state to
  1  4 the department of human services for the fiscal biennium
  1  5 beginning July 1, 1997, and ending June 30, 1999, the
  1  6 following amounts, or so much thereof as is necessary, to be
  1  7 used for the purpose designated:
  1  8    For distribution to counties of the county mental health,
  1  9 mental retardation, and developmental disabilities allowed
  1 10 growth factor adjustment, in accordance with section 331.438,
  1 11 subsection 2, and section 331.439, subsection 3, as amended by
  1 12 this Act:  
  1 13 1997-98 FY ....................................... $  6,163,211
  1 14 1998-99 FY ....................................... $ 12,504,538
  1 15    For the fiscal year beginning July 1, 1997, the county
  1 16 mental health, mental retardation, and developmental
  1 17 disabilities allowed growth factor adjustment shall be 2.89
  1 18 percent and for the fiscal year beginning July 1, 1998, the
  1 19 county mental health, mental retardation, and developmental
  1 20 disabilities allowed growth factor adjustment shall be 2.89
  1 21 percent.
  1 22    Sec. 2.  Section 331.424A, subsection 4, Code 1997, is
  1 23 amended to read as follows:
  1 24    4.  For the fiscal year beginning July 1, 1996, and for
  1 25 each subsequent fiscal year, the county shall certify a levy
  1 26 for payment of services.  For each fiscal year, county
  1 27 revenues from taxes imposed by the county credited to the
  1 28 services fund shall not exceed an amount equal to the amount
  1 29 of base year expenditures for services as defined in section
  1 30 331.438, less the amount of property tax relief to be received
  1 31 pursuant to section 426B.2, subsections 1 and 3, in the fiscal
  1 32 year for which the budget is certified.  The county auditor
  1 33 and the board of supervisors shall reduce the amount of the
  1 34 levy certified for the services fund by the amount of property
  1 35 tax relief to be received.  A levy certified under this
  2  1 section is not subject to the appeal provisions of sections
  2  2 331.426 and 444.25B or to any other provision in law
  2  3 authorizing a county to exceed, increase, or appeal a property
  2  4 tax levy limit.
  2  5    Sec. 3.  Section 331.438, subsection 2, Code 1997, is
  2  6 amended to read as follows:
  2  7    2.  Except as modified based upon the actual amount of the
  2  8 appropriation for purposes of state payment under section
  2  9 331.439, the amount of the state payment for a fiscal year
  2 10 shall be calculated by applying the inflation factor
  2 11 adjustment established in accordance with section 331.439,
  2 12 subsection 3, for that fiscal year to the amount of county
  2 13 expenditures for qualified services in the previous fiscal
  2 14 year.  A state payment is the state funding a county receives
  2 15 pursuant to section 426B.2, subsection 2.  Any state funding
  2 16 received by a county for property tax relief in accordance
  2 17 with section 426B.2, subsections 1 and 3, is not a state
  2 18 payment and shall not be included in the state payment
  2 19 calculation made pursuant to this subsection.
  2 20    2.  a.  A state payment to a county for a fiscal year shall
  2 21 consist of the sum of the state funding the county is eligible
  2 22 to receive from the property tax relief fund in accordance
  2 23 with section 426B.2 plus the county's portion of state funds
  2 24 appropriated for the allowed growth factor adjustment
  2 25 established by the general assembly under section 331.439,
  2 26 subsection 3.
  2 27    b.  A county's portion of the allowed growth factor
  2 28 adjustment appropriation for a fiscal year shall be determined
  2 29 by applying the formula for distribution of the property tax
  2 30 relief fund in section 426B.2, subsection 1, to the amount of
  2 31 the appropriation.
  2 32    c.  The department of human services shall provide for
  2 33 payment of the amount due a county for the county's allowed
  2 34 growth factor adjustment determined in accordance with this
  2 35 subsection.  The director of human services shall authorize
  3  1 warrants payable to the county treasurer for the amounts due
  3  2 and the warrants shall be mailed in January of each year.  The
  3  3 county treasurer shall credit the warrant to the county's
  3  4 services fund created under section 331.424A.
  3  5    Sec. 4.  Section 331.439, subsection 3, Code 1997, is
  3  6 amended to read as follows:
  3  7    3.  a.  For the fiscal year beginning July 1, 1996, and
  3  8 succeeding fiscal years, the county's mental health, mental
  3  9 retardation, and developmental disabilities service
  3 10 expenditures for a fiscal year are limited to a fixed budget
  3 11 amount.  The fixed budget amount shall be the amount
  3 12 identified in the county's management plan and budget for the
  3 13 fiscal year.  The county shall be authorized an allowed growth
  3 14 factor adjustment as established by the general assembly
  3 15 statute for services paid from the county's services fund
  3 16 under section 331.424A which is in accordance with the
  3 17 county's management plan and budget, implemented pursuant to
  3 18 this section.  The statute establishing the allowed growth
  3 19 factor adjustment shall establish the adjustment for the
  3 20 fiscal year which commences two years from the beginning date
  3 21 of the fiscal year in progress at the time the statute is
  3 22 enacted.
  3 23    b.  Based upon information contained in county management
  3 24 plans and budgets, the state-county management committee shall
  3 25 recommend an allowed growth factor adjustment to the governor
  3 26 by November 15 for the succeeding fiscal year which commences
  3 27 two years from the beginning date of the fiscal year in
  3 28 progress at the time the recommendation is made.  The allowed
  3 29 growth factor adjustment shall address costs associated with
  3 30 new consumers of service, service cost inflation, and
  3 31 investments for economy and efficiency.  The governor shall
  3 32 consider the committee's recommendation in developing the
  3 33 governor's recommendation for an allowed growth factor
  3 34 adjustment for inclusion in such fiscal year.  The governor's
  3 35 recommendation shall be submitted at the time the governor's
  4  1 proposed budget for the succeeding fiscal year is submitted in
  4  2 accordance with chapter 8.
  4  3    c.  The amount of the appropriation required to fund the
  4  4 allowed growth factor adjustment for a fiscal year shall be
  4  5 calculated by applying the adjustment established by statute
  4  6 for that fiscal year to the sum of the following:
  4  7    (1)  The total amount of base year expenditures for all
  4  8 counties.
  4  9    (2)  The total amount of the appropriations for allowed
  4 10 growth factor adjustments made to all counties in all of the
  4 11 fiscal years prior to that fiscal year.
  4 12    Sec. 5.  Section 426B.1, subsection 3, Code 1997, is
  4 13 amended to read as follows:
  4 14    3.  There is annually appropriated from the property tax
  4 15 relief fund to the department of human services to supplement
  4 16 the medical assistance appropriation for the fiscal year
  4 17 beginning July 1, 1997, and for succeeding fiscal years, six
  4 18 million six hundred thousand dollars to be used for the
  4 19 nonfederal share of the costs of services provided to minors
  4 20 with mental retardation under the medical assistance program
  4 21 to meet the requirements of section 249A.12, subsection 4.
  4 22 The appropriation in this subsection shall be charged to the
  4 23 property tax relief fund prior to the distribution of moneys
  4 24 from the fund under section 426B.2 and the amount of moneys
  4 25 available for distribution shall be reduced accordingly.
  4 26 However, the appropriation in this subsection shall be
  4 27 considered to be a property tax relief payment for purposes of
  4 28 the combined amount of payments required to achieve fifty
  4 29 percent of the counties' base year expenditures as provided in
  4 30 section 426B.2, subsection 3.
  4 31    Sec. 6.  Section 426B.2, Code 1997, is amended to read as
  4 32 follows:
  4 33    426B.2  PROPERTY TAX RELIEF FUND DISTRIBUTIONS.
  4 34    Moneys in the property tax relief fund shall be utilized in
  4 35 each fiscal year as follows in the order listed:
  5  1    1.  The first sixty-one million dollars plus the amount
  5  2 paid pursuant to subsection 3 in the previous fiscal year in
  5  3 the property tax relief fund shall be distributed to counties
  5  4 under this subsection.  The moneys in the property tax relief
  5  5 fund available to counties for a fiscal year shall be
  5  6 distributed as provided in this section.  A county's
  5  7 proportion of the moneys shall be equivalent to the sum of the
  5  8 following three factors:
  5  9    a.  One-third based upon the county's proportion of the
  5 10 state's general population.
  5 11    b.  One-third based upon the county's proportion of the
  5 12 state's total taxable property valuation assessed for taxes
  5 13 payable in the previous fiscal year.
  5 14    c.  One-third based upon the county's proportion of all
  5 15 counties' base year expenditures, as defined in section
  5 16 331.438, Code 1995, and reported to the state on October 15,
  5 17 1994.
  5 18    Moneys provided to a county for property tax relief in a
  5 19 fiscal year in accordance with this subsection shall not be
  5 20 less than the amount provided for property tax relief in the
  5 21 previous fiscal year.
  5 22    2.  Payment of moneys to eligible counties of the state
  5 23 payment in accordance with the provisions of sections 331.438
  5 24 and 331.439.
  5 25    3. 2.  For the fiscal year beginning July 1, 1996, and
  5 26 succeeding fiscal years, the department of human services
  5 27 shall estimate the amount of moneys required for the state
  5 28 payment pursuant to subsection 2.  Moneys remaining in the
  5 29 property tax relief fund following the payment made pursuant
  5 30 to subsection 1 and the estimated amount of the state payment
  5 31 pursuant to subsection 2 shall be paid for property tax relief
  5 32 in the same manner as provided in subsection 1 to counties
  5 33 eligible for state payment under subsection 2.  These payments
  5 34 The distributions under subsection 1 shall continue to be made
  5 35 until the combined amount of the payments distributions made
  6  1 under this subsection and subsection 1 are equal to fifty
  6  2 percent of the total of all counties' base year expenditures
  6  3 as defined in section 331.438.  The amount of moneys paid to a
  6  4 county pursuant to this subsection shall be added in
  6  5 subsequent fiscal years to the amount of moneys paid under
  6  6 subsection 1.
  6  7    4.  Moneys remaining in the property tax relief fund
  6  8 following the payments made pursuant to subsections 1, 2, and
  6  9 3 shall be transferred to the homestead credit fund created in
  6 10 section 425.1.  This transfer shall continue until the
  6 11 homestead credit is fully funded.
  6 12    5. 3.  The department of human services shall notify the
  6 13 director of revenue and finance of the amounts due a county in
  6 14 accordance with the provisions of this section.  The director
  6 15 of revenue and finance shall draw warrants on the property tax
  6 16 relief fund, payable to the county treasurer in the amount due
  6 17 to a county in accordance with subsections subsection 1 and 3
  6 18 and mail the warrants to the county auditors in September and
  6 19 March of each year.  Warrants for the state payment in
  6 20 accordance with subsection 2 shall be mailed in January of
  6 21 each year.
  6 22    Sec. 7.  Section 426B.3, Code 1997, is amended to read as
  6 23 follows:
  6 24    426B.3  NOTIFICATION OF RELIEF FUND PAYMENT.
  6 25    1.  The county auditor shall reduce the certified budget
  6 26 amount received from the board of supervisors for the
  6 27 succeeding fiscal year for the county mental health, mental
  6 28 retardation, and developmental disabilities services fund
  6 29 created in section 331.424A by an amount equal to the amount
  6 30 the county will receive from the property tax relief fund
  6 31 pursuant to section 426B.2, subsections 1 and 3, for the
  6 32 succeeding fiscal year and the auditor shall determine the
  6 33 rate of taxation necessary to raise the reduced amount.  On
  6 34 the tax list, the county auditor shall compute the amount of
  6 35 taxes due and payable on each parcel before and after the
  7  1 amount received from the property tax relief fund is used to
  7  2 reduce the county budget.  The director of revenue and finance
  7  3 shall notify the county auditor of each county of the amount
  7  4 of moneys the county will receive from the property tax relief
  7  5 fund pursuant to section 426B.2, subsections 1 and 3, for the
  7  6 succeeding fiscal year.
  7  7    2.  The amount of property tax dollars reduced on each
  7  8 parcel as a result of the moneys received from the property
  7  9 tax relief fund pursuant to section 426B.2, subsections 1 and
  7 10 3, shall be noted on each tax statement prepared by the county
  7 11 treasurer pursuant to section 445.23.
  7 12    Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of
  7 13 immediate importance, takes effect upon enactment.  
  7 14                           EXPLANATION
  7 15    This bill relates to the allowed growth factor adjustment
  7 16 for county mental health, mental retardation, and
  7 17 developmental disabilities services.
  7 18    The bill includes appropriations of moneys to the
  7 19 department of human services for fiscal years 1997-1998 and
  7 20 1998-1999 for distribution of allowed growth factor adjustment
  7 21 payments to counties as provided in the bill.  The adjustment
  7 22 is for increased costs to provide mental health, mental
  7 23 retardation, and developmental disabilities (MH/MR/DD)
  7 24 services.
  7 25    The bill amends Code sections 331.438 and 331.439 to
  7 26 provide that the allowed growth factor adjustment for counties
  7 27 is to be included in the amount of state payment to counties
  7 28 along with the property tax relief fund payment to counties.
  7 29 Under current law a county cannot receive a state payment
  7 30 unless the county is in compliance with various planning
  7 31 provisions administered by the department of human services
  7 32 under section 331.439.  The allowed growth factor
  7 33 appropriation is to be distributed to counties by applying the
  7 34 same formula as is used to distribute the property tax relief
  7 35 fund payments to counties.  Moneys received by a county from
  8  1 the appropriation are to be deposited in the county's MH/MR/DD
  8  2 services fund.
  8  3    Code section 331.439 is amended to require the
  8  4 recommendations for the allowed growth factor adjustment to be
  8  5 made by the state-county management committee and the governor
  8  6 to apply to the fiscal year which commences two years after
  8  7 the beginning date of the fiscal year in progress at the time
  8  8 of the recommendation.  The general assembly is to establish
  8  9 the allowed growth factor adjustment by statute.
  8 10    Code section 331.439 is also amended to describe a method
  8 11 for calculating the amount of the appropriation needed to fund
  8 12 the adjustment amount established in statute by the general
  8 13 assembly.
  8 14    Current law provides for funding of the growth factor from
  8 15 the property tax relief fund in Code chapter 426B.  The bill
  8 16 strikes this requirement and instead provides for an
  8 17 appropriation from the general fund of the state.  Code
  8 18 chapter 426B also is amended to strike provisions that when
  8 19 payments from the property tax relief fund are equal to 50
  8 20 percent of county base year expenditures for MH/MR/DD
  8 21 services, any remaining moneys will be transferred for payment
  8 22 of the homestead credit.
  8 23    The bill includes conforming amendments to Code sections
  8 24 331.424A, 426B.1, and 426B.3.
  8 25    The bill takes effect upon enactment.  
  8 26 LSB 1592XG 77
  8 27 jp/cf/24.2
     

Text: HSB00046                          Text: HSB00048
Text: HSB00000 - HSB00099               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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