Text: SSB01204 Text: SSB01206 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 PROPERTY TAX REPLACEMENT 1 3 Section 1. Section 24.14, Code 2003, is amended to read as 1 4 follows: 1 5 24.14 TAX LIMITED. 1 6 A greater tax than that so entered upon the record shall 1 7 not be levied or collected for the municipality proposing the 1 8 tax for the purposes indicated and a greater expenditure of 1 9 public money shall not be made for any specific purpose than 1 10 the amount estimated and appropriated for that purpose, except 1 11 as provided in sections 24.6 and 24.15. All budgets set up in 1 12 accordance with the statutes shall take such funds, and 1 13 allocations made by sections 123.53,and 452A.79and chapter1 14405A, into account, and all such funds, regardless of their 1 15 source, shall be considered in preparing the budget. 1 16 Sec. 2. Section 331.403, subsection 3, Code 2003, is 1 17 amended to read as follows: 1 18 3. A county that fails to meet the filing deadline imposed 1 19 by this section shall have withheld from payments to be made 1 20 to the county and allocated to the county pursuant tochapter1 21405Asection 425.1 an amount equal to five cents per capita 1 22 until the financial report is filed. 1 23 Sec. 3. Section 331.427, subsection 1, unnumbered 1 24 paragraph 1, Code 2003, is amended to read as follows: 1 25 Except as otherwise provided by state law, county revenues 1 26 from taxes and other sources for general county services shall 1 27 be credited to the general fund of the county, including 1 28 revenues received under sections 9I.11, 101A.3, 101A.7, 1 29 123.36, 123.143, 142B.6, 176A.8, 321.105, 321.152, 321G.7, 1 30 section 331.554, subsection 6, sections 341A.20, 364.3, 1 31 368.21, 422A.2, 428A.8, 430A.3, 433.15, 434.19, 445.57, 1 32 453A.35, 458A.21, 483A.12, 533.24, 556B.1, 583.6, 602.8108, 1 33 904.908, and 906.17,and chapter 405A,and the following: 1 34 Sec. 4. Section 384.22, unnumbered paragraph 2, Code 2003, 1 35 is amended to read as follows: 2 1 A city that fails to meet the filing deadline imposed by 2 2 this section shall have withheld from payments to be made to 2 3 the county which are allocated to the city pursuant tochapter2 4405Asection 425.1 an amount equal to five cents per capita 2 5 until the annual report is filed with the auditor of state. 2 6 Sec. 5. Section 427B.19, subsection 3, unnumbered 2 7 paragraph 1, Code 2003, is amended to read as follows: 2 8 On or before September 1 of each fiscal year through June 2 9 30,20062004, the county auditor shall prepare a statement, 2 10 based upon the report received pursuant to subsections 1 and 2 11 2, listing for each taxing district in the county: 2 12 Sec. 6. Section 427B.19, subsection 3, paragraph c, Code 2 13 2003, is amended to read as follows: 2 14 c. The industrial machinery, equipment and computers tax 2 15 replacement claim for each taxing district. For fiscal years 2 16 beginning July 1, 1996, and ending June 30, 2001, the 2 17 replacement claim is equal to the amount determined pursuant 2 18 to paragraph "a", multiplied by the tax rate specified in 2 19 paragraph "b". For fiscal years beginning July 1, 2001, and 2 20 ending June 30,20062004, the replacement claim is equal to 2 21 the product of the amount determined pursuant to paragraph 2 22 "a", less any increase in valuations determined in paragraph 2 23 "d", and the tax rate specified in paragraph "b". If the 2 24 amount subtracted under paragraph "d" is more than the amount 2 25 determined in paragraph "a", there is no tax replacement for 2 26 the fiscal year. 2 27 Sec. 7. Section 427B.19A, subsection 1, Code 2003, is 2 28 amended to read as follows: 2 29 1. The industrial machinery, equipment and computers 2 30 property tax replacement fund is created. For the fiscal year 2 31 beginning July 1, 1996, through the fiscal year ending June 2 32 30,20062004, there is appropriated annually from the general 2 33 fund of the state to the department of revenue and finance to 2 34 be credited to the industrial machinery, equipment and 2 35 computers property tax replacement fund, an amount sufficient 3 1 to implement this division. However, for the fiscal year 3 2 beginning July 1, 2003, the amount appropriated to the 3 3 department of revenue and finance to be credited to the 3 4 industrial machinery, equipment and computers tax replacement 3 5 fund is ten million eighty-one thousand six hundred eighty- 3 6 five dollars. 3 7 Sec. 8. Section 427B.19C, Code 2003, is amended to read as 3 8 follows: 3 9 427B.19C ADJUSTMENT OF CERTAIN ASSESSMENTS REQUIRED. 3 10 In the assessment year beginning January 1,20052003, the 3 11 amount of assessed value of property defined in section 3 12 403.19, subsection 1, for an urban renewal taxing district 3 13 which received replacement moneys under section 427B.19A, 3 14 subsection 4, shall be reduced by an amount equal to that 3 15 portion of the amount of assessed value of such property which 3 16 was assessed pursuant to section 427B.17, subsection 3. 3 17 Sec. 9. Section 441.73, subsection 4, Code 2003, is 3 18 amended to read as follows: 3 19 4. The executive council shall transfer for the fiscal 3 20 year beginning July 1, 1992, and each fiscal year thereafter, 3 21 from funds established in sections405A.8,425.1,and 426.1, 3 22 an amount necessary to pay litigation expenses. The amount of 3 23 the fund for each fiscal year shall not exceed seven hundred 3 24 thousand dollars. The executive council shall determine 3 25 annually the proportionate amounts to be transferred from the 3 26threetwo separate funds. At any time when no litigation is 3 27 pending or in progress the balance in the litigation expense 3 28 fund shall not exceed one hundred thousand dollars. Any 3 29 excess moneys shall be transferred in a proportionate amount 3 30 back to the funds from which they were originally transferred. 3 31 Sec. 10. GUARANTEE OF REPLACEMENT FUNDS. The revaluation 3 32 of all industrial machinery, equipment, and computers 3 33 authorized in section 427B.19B, Code 2003, as a result of the 3 34 insufficient funding of the industrial machinery, equipment 3 35 and computers property tax replacement fund for the fiscal 4 1 year beginning July 1, 2002, is void and taxes payable in the 4 2 fiscal year beginning July 1, 2003, shall not be levied on the 4 3 amount of such revaluation. 4 4 Sec. 11. Sections 403.23, 405A.1, 405A.2, 405A.3, 405A.4, 4 5 405A.5, 405A.6, 405A.7, 405A.8, 405A.9, 405A.10, 422.65, 4 6 427A.12, and 427B.19B, Code 2003, are repealed. 4 7 Sec. 12. UNIFORM REDUCTIONS. The general assembly finds 4 8 that the provisions of this division of this Act will result 4 9 in reductions in appropriations that would otherwise be made 4 10 from the general fund of the state for the fiscal year 4 11 beginning July 1, 2003, that total $70,000,000. If the 4 12 governor vetoes a portion of this division of this Act, the 4 13 governor shall order uniform reductions in appropriations 4 14 allotments as provided in section 8.31, in an amount equal to 4 15 the appropriations that are made as a result of the veto. 4 16 Sec. 13. EFFECTIVE DATE. The section of this division of 4 17 this Act that voids the revaluation of machinery, equipment, 4 18 and computers, being deemed of immediate importance, takes 4 19 effect upon enactment. 4 20 DIVISION II 4 21 PARKING TICKETS 4 22 Sec. 14. Section 321.236, subsection 1, paragraph a, Code 4 23 2003, is amended to read as follows: 4 24 a. May be charged and collected upon a simple notice of a 4 25 fine payable to the city clerk or clerk of the district court, 4 26 if authorized by ordinance. The fineshall not exceed five4 27dollars except for snow route parking violations in which case4 28the fine shall not exceed twenty-five dollarsfor each 4 29 violation charged under a simple notice of a fine shall be 4 30 established by ordinance. The fine may be increasedup to ten4 31 by five dollars if the parking violation is not paid within 4 32 thirty days of the date upon which the violation occurred, if 4 33 authorized by ordinance. Violations of section 321L.4, 4 34 subsection 2, may be charged and collected upon a simple 4 35 notice of a one hundred dollar fine payable to the city clerk 5 1 or clerk of the district court, if authorized by ordinance. 5 2 No costs or other charges shall be assessed. All fines 5 3 collected by a city pursuant to this paragraph shall be 5 4 retained by the city and all fines collected by a county 5 5 pursuant to this paragraph shall be retained by the county. 5 6 Sec. 15. Section 805.8A, subsection 1, paragraph a, Code 5 7 2003, is amended to read as follows: 5 8 a. For parking violations under sections 321.236, 321.239, 5 9 321.358, 321.360, and 321.361, the scheduled fine is five 5 10 dollars, except if the local authority has established the 5 11 fine by ordinance pursuant to section 321.236, subsection 1. 5 12 The scheduled fine for a parking violationofpursuant to 5 13 section 321.236 increasesin an amount up to tenby five 5 14 dollars, as authorized by ordinance pursuant to section 5 15 321.236, subsection 1,paragraph "a",if the parking violation 5 16 is not paid within thirty days of the date upon which the 5 17 violation occurred. For purposes of calculating the unsecured 5 18 appearance bond required under section 805.6, the scheduled 5 19 fine shall be five dollars, or if the amount of the fine is 5 20 greater than five dollars, the unsecured appearance bond shall 5 21 be the amount of the fine established by the local authority 5 22 pursuant to section 321.236, subsection 1. However, 5 23 violations charged by a city or county upon simple notice of a 5 24 fine instead of a uniform citation and complaint as permitted 5 25 by section 321.236, subsection 1, paragraph "a", are not 5 26 scheduled violations, and this section shall not apply to any 5 27 offense charged in that manner. For a parking violation under 5 28 section 321.362 or 461A.38, the scheduled fine is ten dollars. 5 29 DIVISION III 5 30 LAW ENFORCEMENT ACADEMY 5 31 Sec. 16. NEW SECTION. 80B.11E TRAINING – APPLICATION BY 5 32 INDIVIDUAL – INDIVIDUAL EXPENSE. 5 33 1. Notwithstanding any other provision of law to the 5 34 contrary, an individual who is not a certified law enforcement 5 35 officer may apply for attendance at the law enforcement 6 1 academy at their own expense on the condition that the 6 2 individual meets the minimum eligibility standards described 6 3 in subsection 2. 6 4 2. An individual who submits an application pursuant to 6 5 subsection 1 shall, at a minimum, meet all minimum hiring 6 6 standards as established by academy rules, including the 6 7 successful completion of certain psychological and physical 6 8 testing examinations. In addition, such individual shall be 6 9 of good moral character as determined by a thorough background 6 10 investigation by the academy for a fee. For such purposes, 6 11 the academy shall have the authority to conduct a background 6 12 investigation of the individual, including a fingerprint 6 13 search of local, state, and national fingerprint files. 6 14 3. An individual shall not be granted permission to attend 6 15 an academy training program if such acceptance would result in 6 16 the nonacceptance of another qualifying applicant who is a law 6 17 enforcement officer. 6 18 DIVISION IV 6 19 PUBLICATION – BUDGET 6 20 Sec. 17. Section 24.9, unnumbered paragraph 1, Code 6 21 2003, is amended to read as follows: 6 22 Each municipality shall file with the secretary or clerk 6 23 thereof the estimates required to be made in sections 24.3 to 6 24 24.8, at least twenty days before the date fixed by law for 6 25 certifying the same to the levying board and shall forthwith 6 26 fix a date for a hearing thereon, and shall publish such 6 27 estimates and any annual levies previously authorized as 6 28 provided in section 76.2, with a notice of the time when and 6 29 the place where such hearing shall be held not less than ten 6 30 nor more than twenty days before the hearing. Provided that 6 31 in municipalities ofless than twoseven hundred population or 6 32 less such estimates and the notice of hearing thereon shall be 6 33 posted in three public places in the district in lieu of 6 34 publication. 6 35 Sec. 18. Section 331.436, Code 2003, is amended to read 7 1 as follows: 7 2 331.436 PROTEST. 7 3 Protests to the adopted budget must be made in accordance 7 4 with sections 24.27 through 24.32 as if the county were the 7 5 municipality under those sections except that the number of 7 6 people necessary to file a protest under this section shall 7 7 not be less than one hundred. 7 8 Sec. 19. Section 349.3, subsection 1, Code 2003, is 7 9 amended to read as follows: 7 10 1. In counties having a population of less thanfifteen7 11 twenty thousand, two such newspapers, or one, if there be but 7 12 one publishedthereinin the county. 7 13 Sec. 20. Section 349.15, Code 2003, is amended to read as 7 14 follows: 7 15 349.15 DIVISION OF COMPENSATION. 7 16 If in any county the publishers of two or more newspapers, 7 17 at least one of which by reason of its location and 7 18 circulation is entitled to be selected as a county official 7 19 newspaper, have entered into an agreement to publish the 7 20 official proceedings or have united in a request to have their 7 21 publication selected for such purposes, and such agreement or 7 22 request has been filed with the board of supervisors prior to 7 23 the naming of the official newspapers, the board of 7 24 supervisors shall designate each of them a county official 7 25 newspaper, but the combined compensation of the newspapers so 7 26 requesting or agreeing, added to that of the other official 7 27 newspaper or newspapers, if any, shall not exceed the combined 7 28 compensation allowed by law to two official newspapers in 7 29 counties having a population belowfifteentwenty thousand or 7 30 to three official newspapers in counties having a population 7 31 offifteentwenty thousand or more. 7 32 Sec. 21. Section 362.3, Code 2003, is amended to read as 7 33 follows: 7 34 362.3 PUBLICATION OF NOTICES. 7 35 Unless otherwise provided by state law: 8 1 1. If notice of an election, hearing, or other official 8 2 action is required by the city code, the notice must be 8 3 published at least once, not less than four nor more than 8 4 twenty days before the date of the election, hearing, or other 8 5 action. 8 6 2. A publication required by the city code must be in a 8 7 newspaper published at least once weekly and having general 8 8 circulation in the city. However, if the city has a 8 9 population oftwoseven hundred or less, or in the case of 8 10 ordinances and amendments to be published in a city in which 8 11 no newspaper is published, a publication may be made by 8 12 posting in three public places in the city which have been 8 13 permanently designated by ordinance. 8 14 In the case of notices of elections, a city with a 8 15 population oftwoseven hundred or less meets the publication 8 16 requirement of this section by posting notices of elections in 8 17 three public places which have been designated by ordinance. 8 18 Sec. 22. Section 372.13, subsection 6, Code 2003, is 8 19 amended to read as follows: 8 20 6. Within fifteen days following a regular or special 8 21 meeting of the council, the clerk shall cause the minutes of 8 22 the proceedings of the council, including the total 8 23 expenditure from each city fund, to be published in a 8 24 newspaper of general circulation in the city. The publication 8 25 shall include a list of all claims allowed and a summary of 8 26 all receipts and shall show the gross amount of the claim. 8 27 Matters discussed in closed session pursuant to section 21.3 8 28 shall not be published until entered on the public minutes. 8 29 However, in cities having more than one hundred fifty thousand 8 30 population the council shall each month print in pamphlet form 8 31 a detailed itemized statement of all receipts and 8 32 disbursements of the city, and a summary of its proceedings 8 33 during the preceding month, and furnish copies to the city 8 34 library, the daily newspapers of the city, and to persons who 8 35 apply at the office of the city clerk, and the pamphlet shall 9 1 constitute publication as required. Failure by the clerk to 9 2 make publication is a simple misdemeanor. The provisions of 9 3 this subsection are applicable in cities in which a newspaper 9 4 is published, or in cities oftwomore than seven hundred 9 5 populationor over, but in all other cities, posting the 9 6 statement in three public places in the city which have been 9 7 permanently designated by ordinance is sufficient compliance 9 8 with this subsection. 9 9 Sec. 23. Section 384.16, subsection 3, Code 2003, is 9 10 amended to read as follows: 9 11 3. The council shall set a time and place for public 9 12 hearing on the budget before the final certification date and 9 13 shall publish notice of the hearing not less than ten nor more 9 14 than twenty days before the hearing in a newspaper published 9 15 at least once weekly and having general circulation in the 9 16 city. However, if the city has a population oftwoseven 9 17 hundred or less, publication may be made by posting in three 9 18 public places in the city. A summary of the proposed budget 9 19 shall be included in the notice. Proof of publication must be 9 20 filed with the county auditor. The department of management 9 21 shall prescribe the form for the public hearing notice for use 9 22 by cities. 9 23 DIVISION V 9 24 CITY CIVIL SERVICE REFORM 9 25 Sec. 24. Section 400.8, subsection 3, Code 2003, is 9 26 amended to read as follows: 9 27 3. All appointments to such positions shall be conditional 9 28 upon a probation period of not to exceedsix months, and in9 29the case of police dispatchers and fire fighters a probation9 30period not to exceed twelve monthssuch period of time as 9 31 established by the city for such position.In the case of9 32police patrol officers, if the employee has successfully9 33completed training at the Iowa law enforcement academy or9 34another training facility certified by the director of the9 35Iowa law enforcement academy before the initial appointment as10 1a police patrol officer, the probationary period shall be for10 2a period of up to nine months and shall commence with the date10 3of initial appointment as a police patrol officer. If the10 4employee has not successfully completed training at the Iowa10 5law enforcement academy or another training facility certified10 6by the director of the law enforcement academy before initial10 7appointment as a police patrol officer, the probationary10 8period shall commence with the date of initial employment as a10 9police patrol officer and shall continue for a period of up to10 10nine months following the date of successful completion of10 11training at the Iowa law enforcement academy or another10 12training facility certified by the director of the Iowa law10 13enforcement academy. A police patrol officer transferring10 14employment from one jurisdiction to another shall be employed10 15subject to a probationary period of up to nine months.10 16However, in cities with a population over one hundred seventy-10 17five thousand, appointments to the position of fire fighter10 18shall be conditional upon a probation period of not to exceed10 19twenty-four months.During the probation period, the 10 20 appointee may be removed or discharged from such position by 10 21 the appointing person or body without the right of appeal to 10 22 the commission. A person removed or discharged during a 10 23 probationary period shall, at the time of discharge, be given 10 24 a notice in writing stating the reason or reasons for the 10 25 dismissal. A copy of such notice shall be promptly filed with 10 26 the commission. Continuance in the position after the 10 27 expiration of such probationary period shall constitute a 10 28 permanent appointment. 10 29 Sec. 25. Section 400.11, unnumbered paragraph 5, Code 10 30 2003, is amended to read as follows: 10 31 When there is no such preferred list or certified eligible 10 32 list, or when the eligible list shall be exhausted, the person 10 33 or body having the appointing power may temporarily fill a 10 34 newly created office or other vacancy only until an 10 35 examination can be held and the names of qualified persons be 11 1 certified by the commission, and such temporary appointments 11 2 are hereby limited to ninety days for any one person in the 11 3 same vacancy, but such limitation shall not apply to persons 11 4 temporarily acting in positions regularly held by another. 11 5Any person temporarily filling a vacancy in a position of11 6higher grade for twenty days or more, shall receive the salary11 7paid in such higher grade.11 8 DIVISION VI 11 9 TRANSACTION FEE 11 10 Sec. 26. NEW SECTION. 331.605C ELECTRONIC TRANSACTION 11 11 FEE – AUDIT. 11 12 1. The recorder shall also collect a fee of five dollars 11 13 for each recorded transaction for which a fee is paid pursuant 11 14 to section 331.604 to be used for the purposes of planning and 11 15 implementing electronic recording and electronic transactions 11 16 in each county and developing county and statewide internet 11 17 websites to provide electronic access to records and 11 18 information. 11 19 2. The county treasurer, on behalf of the recorder, shall 11 20 establish and maintain an interest-bearing account into which 11 21 all moneys collected pursuant to this section shall be 11 22 deposited. The recorder shall use the moneys deposited in the 11 23 account to carry out the purposes of this section. The 11 24 recorder may cooperate with other entities, boards, and 11 25 agencies to establish methods for electronic recording and 11 26 conducting of transactions and may participate in other joint 11 27 ventures which further the purposes of this subsection. 11 28 3. The local government electronic transaction account is 11 29 established in the office of the treasurer of state under the 11 30 control of the treasurer of state. Notwithstanding section 11 31 12C.7, interest or earnings on moneys in the transaction 11 32 account shall be credited to the account. Moneys in the 11 33 transaction account are not subject to transfer, 11 34 appropriation, or reversion to any other fund, or any other 11 35 use except as provided in this subsection. The treasurer of 12 1 state shall enter into a contract with the Iowa state 12 2 association of counties affiliate representing county 12 3 recorders to develop, implement, and maintain a statewide 12 4 internet website for purposes of providing electronic access 12 5 to records and information recorded or filed by county 12 6 recorders. On a monthly basis, the county treasurer shall pay 12 7 one dollar and fifty cents of each fee collected pursuant to 12 8 this section to the treasurer of state for deposit in the 12 9 local government electronic transaction account. Moneys 12 10 credited to the transaction account are appropriated to the 12 11 treasurer of state to be used for the contract costs. 12 12 4. The recorder shall make available any information 12 13 required by the county auditor or auditor of state concerning 12 14 the fees collected under this section for the purposes of 12 15 determining the amount of fees collected and the uses for 12 16 which such fees are expended. 12 17 5. This section is repealed July 1, 2005. 12 18 DIVISION VII 12 19 LOCAL GOVERNMENT LEASES 12 20 Sec. 27. Section 346.27, Code 2003, is amended by adding 12 21 the following new subsection: 12 22 NEW SUBSECTION. 26. Any incorporating unit may enter into 12 23 a lease with an authority that the authority and the 12 24 incorporating unit determine is necessary and convenient to 12 25 effectuate their purposes and the purposes of this section. 12 26 The power to enter into leases under this section is in 12 27 addition to other powers granted to cities and counties to 12 28 enter into leases and the provisions of chapter 75, section 12 29 364.4, subsection 4, and section 331.301, subsection 10, are 12 30 not applicable to leases entered into under this section. 12 31 DIVISION VIII 12 32 LOCAL GOVERNMENT INNOVATION FUND 12 33 Sec. 28. NEW SECTION. 8.64 LOCAL GOVERNMENT INNOVATION 12 34 FUND – COMMITTEE – LOANS. 12 35 1. The local government innovation fund is created in the 13 1 state treasury under the control of the department of 13 2 management for the purpose of stimulating and encouraging 13 3 innovation in local government by the awarding of loans to 13 4 cities and counties. 13 5 2. The director of the department of management shall 13 6 establish a seven-member committee to be called the local 13 7 government innovation fund committee. Committee members shall 13 8 have expertise in local government. The committee shall 13 9 review all requests for funds and approve loans of funds if 13 10 the committee determines that a city or county project that is 13 11 the subject of a request would result in cost savings, 13 12 innovative approaches to service delivery, or added revenue to 13 13 the city, county, or state. Eligible projects are projects 13 14 which cannot be funded from a city's or county's operating 13 15 budget without adversely affecting the city's or county's 13 16 normal service levels. Preference shall be given to requests 13 17 involving the sharing of services between two or more local 13 18 governments. Projects may include, but are not limited to, 13 19 purchase of advanced technology, contracting for expert 13 20 services, and acquisition of equipment or supplies. 13 21 3. A city or county seeking a loan from the local 13 22 government innovation fund shall complete an application form 13 23 designed by the local government innovation fund committee 13 24 which employs a return on investment concept and demonstrates 13 25 how the project funded by the loan will result in reduced 13 26 city, county, or state general fund expenditures or how city 13 27 or county fund revenues will increase without an increase in 13 28 state costs. Minimum loan requirements for city or county 13 29 requests shall be determined by the committee. 13 30 4. a. In order for the local government innovation fund 13 31 to be self-supporting, the local government innovation fund 13 32 committee shall establish repayment schedules for each loan 13 33 awarded. The loan requirements shall be outlined in a chapter 13 34 28E agreement executed between the state and the city or 13 35 county receiving the loan. A city or county shall repay the 14 1 loan over a period not to exceed five years, with interest, at 14 2 a rate to be determined by the local government innovation 14 3 fund committee. 14 4 b. The local government innovation fund committee shall 14 5 utilize the department of management, the department of 14 6 revenue and finance, or other source of technical expertise 14 7 designated by the committee to certify savings projected for a 14 8 local government innovation fund project. 14 9 5. Notwithstanding section 12C.7, subsection 2, interest 14 10 or earnings on moneys deposited in the local government 14 11 innovation fund shall be credited to the local government 14 12 innovation fund. Notwithstanding section 8.33, moneys 14 13 appropriated to and moneys remaining in the local government 14 14 innovation fund at the end of a fiscal year shall not revert 14 15 to the general fund of the state. 14 16 Sec. 29. LOCAL GOVERNMENT INNOVATION FUND APPROPRIATION. 14 17 There is appropriated from the general fund of the state to 14 18 the department of management for the fiscal year beginning 14 19 July 1, 2003, and ending June 30, 2004, the following amount, 14 20 or so much thereof as is necessary, to be used for the purpose 14 21 designated: 14 22 For deposit in the local government innovation fund created 14 23 in section 8.64: 14 24 .................................................. $ 10,000,000 14 25 Notwithstanding section 8.64, subsection 4, as enacted by 14 26 this division of this Act, the local government innovation 14 27 fund committee may provide up to 20 percent of the amount 14 28 appropriated in this section in the form of forgivable loans 14 29 or as grants for those projects that propose a new and 14 30 innovative sharing initiative that would serve as an important 14 31 model for cities and counties. 14 32 DIVISION IX 14 33 CHARGE FOR CAPITAL ASSETS 14 34 Sec. 30. CHARGE FOR CAPITAL ASSETS. For the fiscal year 14 35 beginning July 1, 2003, and ending June 30, 2004, the 15 1 department of management shall levy a charge against 15 2 departments and establishments, as defined in section 8.2, for 15 3 indirect costs associated with state ownership of land, 15 4 buildings, equipment, or other capital assets controlled by a 15 5 department or establishment. The charges shall not be levied 15 6 against capital assets that are subject to charges levied by 15 7 the department of administrative services, if the department 15 8 is established by law, or against capital assets controlled by 15 9 the state board of regents. Moneys received as a result of 15 10 charges made under this section shall be transferred to the 15 11 fund from which the moneys were originally appropriated. The 15 12 total amount of charges levied under this section that are 15 13 associated with appropriations made from the general fund of 15 14 the state for the fiscal year shall not exceed $1,720,000. 15 15 Sec. 31. CHARGE FOR CAPITAL – APPROPRIATIONS REDUCTION – 15 16 STATE BOARD OF REGENTS STUDY. 15 17 1. In lieu of applying a charge for capital assets to the 15 18 institutions under the control of the state board of regents 15 19 as otherwise provided in this division for executive branch 15 20 agencies, the appropriations made from the general fund of the 15 21 state to the state board of regents for the general university 15 22 operating budgets at the state university of Iowa, Iowa state 15 23 university of science and technology, and university of 15 24 northern Iowa, in 2003 Iowa Acts, House File 662, section 9, 15 25 subsections 2, 3, and 4, are reduced by $17,880,000. The 15 26 state board of regents shall apply the reduction as follows: 15 27 state university of Iowa, 46.7 percent, Iowa state university 15 28 of science and technology, 36.8 percent, and university of 15 29 northern Iowa, 16.5 percent. 15 30 2. The state board of regents shall conduct a study during 15 31 the 2003 legislative interim on the policy option of levying 15 32 charges for capital assets against all state agencies, 15 33 including the state board of regents. The study 15 34 recommendations and findings shall include but are not limited 15 35 to identification of the capital assets that should be subject 16 1 to charges and how capital assets funded by sources other than 16 2 state funding should be charged. The study report, including 16 3 findings and recommendations, shall be issued on or before 16 4 December 31, 2003. The study shall be hosted by a business 16 5 college of a regents' institution. The study shall be 16 6 conducted by a study committee consisting of the following: 16 7 one member designated by the state board of regents who shall 16 8 serve as chair, one person representing the department of 16 9 management designated by the department's director, one member 16 10 representing the state department of transportation appointed 16 11 by the department's director, one member representing the 16 12 judicial branch appointed by the chief justice of the supreme 16 13 court, one member who is a member of the general assembly 16 14 jointly appointed by the majority leader of the senate and the 16 15 speaker of the house of representatives, and one member who is 16 16 a member of the general assembly jointly appointed by the 16 17 minority leader of the senate and the minority leader of the 16 18 house of representatives. 16 19 DIVISION X 16 20 CHARTER AGENCIES 16 21 Sec. 32. NEW SECTION. 7J.1 CHARTER AGENCIES. 16 22 1. DESIGNATION OF CHARTER AGENCIES – PURPOSE. The 16 23 governor may, by executive order, designate up to five state 16 24 departments or agencies, as described in section 7E.5, other 16 25 than the department of administrative services, if the 16 26 department is established in law, or the department of 16 27 management, as a charter agency by July 1, 2003. The 16 28 designation of a charter agency shall be for a period of five 16 29 years which shall terminate as of June 30, 2008. The purpose 16 30 of designating a charter agency is to grant the agency 16 31 additional authority as provided by this chapter while 16 32 reducing the total appropriations to the agency. 16 33 2. CHARTER AGENCY DIRECTORS. 16 34 a. Prior to each fiscal year, or as soon thereafter as 16 35 possible, the governor and each director of a designated 17 1 charter agency shall enter into an annual performance 17 2 agreement which shall set forth measurable organization and 17 3 individual goals for the director in key operational areas of 17 4 the director's agency. The annual performance agreement shall 17 5 be made public and a copy of the agreement shall be submitted 17 6 to the general assembly. 17 7 b. In addition to the authority granted the governor as to 17 8 the appointment and removal of a director of an agency that is 17 9 a charter agency, the governor may remove a director of a 17 10 charter agency for misconduct or for failure to achieve the 17 11 performance goals set forth in the annual performance 17 12 agreement. 17 13 c. Notwithstanding any provision of law to the contrary, 17 14 the governor may set the salary of a director of a charter 17 15 agency under the pay plan for exempt positions in the 17 16 executive branch of government. In addition, the governor may 17 17 authorize the payment of a bonus to a director of a charter 17 18 agency in an amount not in excess of fifty percent of the 17 19 director's annual rate of pay, based upon the governor's 17 20 evaluation of the director's performance in relation to the 17 21 goals set forth in the annual performance agreement. 17 22 3. APPROPRIATIONS AND ASSET MANAGEMENT. 17 23 a. It is the intent of the general assembly that 17 24 appropriations to a charter agency for any fiscal year shall 17 25 be reduced, with a target reduction of ten percent for each 17 26 charter agency, from the appropriation that would otherwise 17 27 have been enacted for that charter agency. 17 28 b. Notwithstanding any provision of law to the contrary, 17 29 proceeds from the sale or lease of capital assets that are 17 30 under the control of a charter agency shall be retained by the 17 31 charter agency and used for such purposes within the scope of 17 32 the responsibilities of the charter agency. 17 33 c. Notwithstanding section 8.33, one-half of all 17 34 unencumbered or unobligated balances of appropriations made 17 35 for each fiscal year of that fiscal period to the charter 18 1 agency shall not revert to the state treasury or to the credit 18 2 of the funds from which the appropriations were made. 18 3 4. PERSONNEL MANAGEMENT. 18 4 a. Notwithstanding any provision of law to the contrary, a 18 5 charter agency shall not be subject to any limitation relating 18 6 to the number of or pay grade assigned to its employees, 18 7 including any limitation on the number of full-time equivalent 18 8 positions as defined by section 8.36A. 18 9 b. A charter agency may waive any personnel rule and may 18 10 exercise the authority granted to the department of personnel, 18 11 or its successor, relating to personnel management concerning 18 12 employees of the charter agency, subject to any restrictions 18 13 on such authority as to employees of the charter agency 18 14 covered by a collective bargaining agreement. The exclusive 18 15 representative of employees of a charter agency may enter into 18 16 agreements with the charter agency to grant the charter agency 18 17 the authority described in this paragraph. A waiver of a rule 18 18 pursuant to this subsection shall be indexed, filed, and made 18 19 available for public inspection in the same manner as provided 18 20 in section 17A.9A, subsection 4. 18 21 5. PROCUREMENT AND GENERAL SERVICES. A charter agency may 18 22 waive any administrative rule regarding procurement, fleet 18 23 management, printing and copying, or maintenance of buildings 18 24 and grounds, and may exercise the authority of the department 18 25 of general services, or its successor, as it relates to the 18 26 physical resources of the state. A waiver of a rule pursuant 18 27 to this subsection shall be indexed, filed, and made available 18 28 for public inspection in the same manner as provided in 18 29 section 17A.9A, subsection 4. 18 30 6. INFORMATION TECHNOLOGY. A charter agency may waive any 18 31 administrative rule regarding the acquisition and use of 18 32 information technology and may exercise the powers of the 18 33 information technology department, or its successor, as it 18 34 relates to information technology. A waiver of a rule 18 35 pursuant to this subsection shall be indexed, filed, and made 19 1 available for public inspection in the same manner as provided 19 2 in section 17A.9A, subsection 4. 19 3 7. STATUTORY AND RULE FLEXIBILITY. 19 4 a. A charter agency may temporarily waive or suspend the 19 5 provisions of any regulatory statute or administrative rule if 19 6 strict compliance with the statute or rule impacts the ability 19 7 of the charter agency requesting the waiver or suspension to 19 8 perform its duties in a more cost-efficient manner and the 19 9 requirements of this subsection are met. 19 10 b. The procedure for granting a temporary waiver or 19 11 suspension of any regulatory statute or administrative rule 19 12 shall be as follows: 19 13 (1) The charter agency may waive or suspend a statute or 19 14 rule if the agency finds, based on clear and convincing 19 15 evidence, all of the following: 19 16 (a) The application of the statute or rule poses an undue 19 17 financial hardship on the applicable charter agency. 19 18 (b) The waiver or suspension from the requirements of a 19 19 statute or rule in the specific case would not prejudice the 19 20 substantial legal rights of any person. 19 21 (c) Substantially equal protection of public health, 19 22 safety, and welfare will be afforded by a means other than 19 23 that prescribed in the particular statute or rule for which 19 24 the waiver or suspension is requested. 19 25 (d) The waiver or suspension would not result in a 19 26 violation of due process, a violation of federal law, or a 19 27 violation of the state or federal constitution. 19 28 (2) If a charter agency proposes to grant a waiver or 19 29 suspension, the charter agency shall draft the waiver or 19 30 suspension so as to provide the narrowest exception possible 19 31 to the provisions of the statute or rule and may place any 19 32 condition on the waiver or suspension that the charter agency 19 33 finds desirable to protect the public health, safety, and 19 34 welfare. The charter agency shall then submit the waiver or 19 35 suspension to the administrative rules review committee for 20 1 consideration at the committee's next scheduled meeting. 20 2 (3) The administrative rules review committee shall review 20 3 the proposed waiver or suspension at the committee's next 20 4 scheduled meeting following submission of the proposal and may 20 5 either take no action or affirmatively approve the waiver or 20 6 suspension, or delay the effective date of the waiver or 20 7 suspension in the same manner as for rules as provided in 20 8 section 17A.4, subsection 5, and section 17A.8, subsection 9. 20 9 If the administrative rules review committee either approves 20 10 or takes no action concerning the proposed waiver or 20 11 suspension, the waiver or suspension may become effective no 20 12 earlier than the day following the meeting. If the 20 13 administrative rules review committee delays the effective 20 14 date of the waiver or suspension but no further action is 20 15 taken to rescind the waiver or suspension, the proposed waiver 20 16 or suspension may become effective no earlier than upon the 20 17 conclusion of the delay. The administrative rules review 20 18 committee shall notify the applicable charter agency of its 20 19 action concerning the proposed waiver or suspension. 20 20 (4) Copies of the grant or denial of a waiver or 20 21 suspension under this subsection shall be filed and made 20 22 available to the public by the applicable charter agency. 20 23 c. A waiver or suspension granted pursuant to this 20 24 subsection shall be for a period of time not to exceed twelve 20 25 months or until June 30, 2008, whichever first occurs, and as 20 26 determined by the applicable charter agency. A renewal of a 20 27 temporary waiver or suspension granted pursuant to this 20 28 section shall be granted or denied in the same manner as the 20 29 initial waiver or suspension. 20 30 8. REPORTING REQUIREMENTS. 20 31 a. Each charter agency shall submit a written report to 20 32 the general assembly by December 31 of each year summarizing 20 33 the activities of the charter agency for the preceding fiscal 20 34 year. The report shall include information concerning the 20 35 expenditures of the agency and the number of filled full-time 21 1 equivalent positions during the preceding fiscal year. The 21 2 report shall include information relating to the actions taken 21 3 by the agency pursuant to the authority granted by this 21 4 section. 21 5 b. By January 15, 2008, the governor shall submit a 21 6 written report to the general assembly on the operation and 21 7 effectiveness of this chapter and the costs and savings 21 8 associated with the implementation of this chapter. The 21 9 report shall include any recommendations about extending the 21 10 chapter's effectiveness beyond June 30, 2008. 21 11 9. DEPARTMENT OF MANAGEMENT REVIEW. Each proposed waiver 21 12 or suspension of an administrative rule or regulatory statute 21 13 as authorized by this section shall be submitted to the 21 14 department of management for review prior to the waiver or 21 15 suspension becoming effective. The director of the department 21 16 of management may disapprove the waiver or suspension if, 21 17 based on clear and convincing evidence, the director 21 18 determines that the suspension or waiver would result in an 21 19 adverse financial impact on the state. 21 20 Sec. 33. NEW SECTION. 7J.2 CHARTER AGENCY LOAN FUND. 21 21 1. A charter agency loan fund is created in the state 21 22 treasury under the control of the department of management for 21 23 the purpose of providing funding to support innovation by 21 24 those state agencies designated as charter agencies in 21 25 accordance with section 7J.1. Innovation purposes shall 21 26 include but are not limited to training, development of 21 27 outcome measurement systems, management system modifications, 21 28 and other modifications associated with transition of 21 29 operations to charter agency status. Moneys in the fund are 21 30 appropriated to the department of management for the purposes 21 31 described in this subsection. 21 32 2. A charter agency requesting a loan from the fund shall 21 33 complete an application process designated by the director of 21 34 the department of management. Minimum loan requirements for 21 35 charter agency requests shall be determined by the director. 22 1 3. In order for the fund to be self-supporting, the 22 2 director of the department of management shall establish 22 3 repayment schedules for each loan awarded. An agency shall 22 4 repay the loan over a period not to exceed five years with 22 5 interest, at a rate to be determined by the director. 22 6 4. Notwithstanding section 12C.7, subsection 2, interest 22 7 or earnings on moneys deposited in the charter agency loan 22 8 fund shall be credited to the charter agency loan fund. 22 9 Notwithstanding section 8.33, moneys credited to the charter 22 10 agency loan fund shall not revert to the fund from which 22 11 appropriated at the close of a fiscal year. 22 12 Sec. 34. NEW SECTION. 7J.3 REPEAL. This chapter is 22 13 repealed June 30, 2008. 22 14 Sec. 35. CHARTER AGENCY APPROPRIATIONS. 22 15 1. Notwithstanding any provision of law to the contrary, 22 16 the total appropriations from the general fund of the state to 22 17 those departments and agencies designated as charter agencies 22 18 for the fiscal year beginning July 1, 2003, and ending June 22 19 30, 2004, as provided by the appropriation to those agencies 22 20 as enacted by the Eightieth General Assembly, 2003 Regular 22 21 Session, shall be reduced by $15,000,000. The department of 22 22 management shall apply the appropriation reductions, with a 22 23 target of a 10 percent reduction for each charter agency, as 22 24 necessary to achieve the overall reduction amount and shall 22 25 make this information available to the legislative fiscal 22 26 committee and the legislative fiscal bureau. It is the intent 22 27 of the general assembly that appropriations to a charter 22 28 agency in subsequent fiscal years shall be similarly adjusted 22 29 from the appropriation that would otherwise have been enacted. 22 30 2. There is appropriated from the general fund of the 22 31 state to the department of management for the fiscal year 22 32 beginning July 1, 2003, and ending June 30, 2004, the 22 33 following amount, or so much thereof as is necessary, to be 22 34 used for the purposes designated: 22 35 For deposit in the charter agency loan fund created in 23 1 section 7J.2: 23 2 .................................................. $ 3,000,000 23 3 Sec. 36. EFFECTIVE DATE. This division of this Act, being 23 4 deemed of immediate importance, takes effect upon enactment. 23 5 DIVISION XI 23 6 HEALTH INSURANCE INCENTIVE 23 7 Sec. 37. STATE EMPLOYEE HEALTH INSURANCE COSTS – 23 8 INCENTIVE PROGRAM. The department of personnel, or its 23 9 successor, may establish, with the approval of the executive 23 10 council, an incentive program for state employees to encourage 23 11 the reduction of health insurance costs for the fiscal year 23 12 beginning July 1, 2003. If established, the incentive program 23 13 shall provide that an amount equal to one-half of any savings 23 14 realized through implementation of the program shall be 23 15 distributed to applicable insured state employees in a manner 23 16 established by the incentive program. The department shall 23 17 provide the legislative government oversight committee with a 23 18 copy of the proposed incentive program submitted to the 23 19 executive council for approval. The department shall also 23 20 submit a written update to the legislative government 23 21 oversight committee by December 31, 2003, concerning its 23 22 progress in implementing an incentive program. 23 23 DIVISION XII 23 24 AREA EDUCATION AGENCIES 23 25 Sec. 38. AREA EDUCATION AGENCY SERVICE DELIVERY TASK 23 26 FORCE. 23 27 1. The department of education shall establish a task 23 28 force to study the delivery of media services, educational 23 29 services, and special education support services by the area 23 30 education agencies. The task force shall study issues 23 31 including, but not limited to, all of the following: 23 32 a. The potentiality of a fee for services, such as 23 33 cooperative purchasing. 23 34 b. The potential effects of allowing school districts to 23 35 petition to join a noncontiguous area education agency. 24 1 c. Opportunities for area education agencies to 24 2 collaborate with community colleges and other higher education 24 3 institutions, local libraries, and other community providers. 24 4 d. Special education delivery by area education agencies 24 5 and school districts, including the state's success in serving 24 6 students identified as level I. This portion of the study 24 7 shall also include a review of identification of students as 24 8 level I; remediation, the success of preventative programs, 24 9 including but not limited to, the early intervention block 24 10 grant program; intensive instruction and tutoring; and 24 11 appropriate reading instruction methodologies. 24 12 e. Reduction of special education funding deficits, 24 13 including a review of the use of state and federal funds for 24 14 special education and related preventative programs. 24 15 2. The task force membership shall include all of the 24 16 following: 24 17 a. The director of the department of education or the 24 18 director's designee. 24 19 b. An area education agency administrator. 24 20 c. A person representing the interests of special 24 21 education students. 24 22 d. A superintendent of a district with an enrollment of 24 23 more than six hundred students. 24 24 e. A superintendent of a district with an enrollment of 24 25 six hundred or fewer students. 24 26 f. A person from the private sector with experience in 24 27 developing plans for cost savings. 24 28 g. Ten members of the general assembly, including five 24 29 senators appointed by the president of the senate after 24 30 consultation with the majority and minority leaders of the 24 31 senate, and five representatives appointed by the speaker of 24 32 the house of representatives after consultation with the 24 33 majority and minority leaders of the house of representatives. 24 34 3. The department shall submit its findings and 24 35 recommendations in a report to the chairpersons and ranking 25 1 members of the senate and house standing committees on 25 2 education and the joint appropriations subcommittee on 25 3 education by December 15, 2003. 25 4 Sec. 39. SPECIAL EDUCATION SUPPORT SERVICES BALANCE 25 5 REDUCTION. 25 6 1. For the fiscal year beginning July 1, 2003, and ending 25 7 June 30, 2004, area education agency special education support 25 8 services fund balances shall be reduced, with each area 25 9 education agency remitting to the state the following 25 10 designated amount: 25 11 a. Area Education Agency 1 ................... $ 517,120 25 12 b. Area Education Agency 4 ................... $ 221,604 25 13 c. Area Education Agencies 3 and 5, and their 25 14 successor area education agency .................. $ 995,807 25 15 d. Area Education Agencies 2, 6, 7, and their 25 16 successor area education agency .................. $ 913,710 25 17 e. Area Education Agency 9 ................... $ 468,138 25 18 f. Area Education Agency 10 .................. $ 964,357 25 19 g. Area Education Agency 11 .................. $ 3,620,018 25 20 h. Area Education Agency 12 .................. $ 512,949 25 21 i. Area Education Agency 13 .................. $ 666,285 25 22 j. Area Education Agency 14 .................. $ 405,065 25 23 k. Area Education Agency 15 .................. $ 413,282 25 24 l. Area Education Agency 16 .................. $ 301,664 25 25 2. Notwithstanding the provisions of section 257.37, an 25 26 area education agency may use the funds determined to be 25 27 available under section 257.35 in a manner which it believes 25 28 is appropriate to best maintain the level of required area 25 29 education agency special education services. An area 25 30 education agency may also use unreserved fund balances for 25 31 media services or education services in a manner which it 25 32 believes is appropriate to best maintain the level of required 25 33 area education agency special education services. 25 34 Sec. 40. Section 257.35, subsection 2, Code 2003, is 25 35 amended to read as follows: 26 1 2. Notwithstanding subsection 1, the state aid for area 26 2 education agencies and the portion of the combined district 26 3 cost calculated for these agencies foreachthe fiscal yearof26 4the fiscal period beginning July 1, 2002, and ending June 30,26 52004beginning July 1, 2002, and each succeeding fiscal year, 26 6 shall be reduced by the department of management by seven 26 7 million five hundred thousand dollars. The reduction for each 26 8 area education agency shall be equal to the reduction that the 26 9 agency received in the fiscal year beginning July 1, 2001. 26 10 Sec. 41. Section 257.35, Code 2003, is amended by adding 26 11 the following new subsection: 26 12 NEW SUBSECTION. 3. Notwithstanding subsection 1, and in 26 13 addition to the reduction applicable pursuant to subsection 2, 26 14 the state aid for area education agencies and the portion of 26 15 the combined district cost calculated for these agencies for 26 16 the fiscal year beginning July 1, 2003, and ending June 30, 26 17 2004, shall be reduced by the department of management by ten 26 18 million dollars. The department shall calculate a reduction 26 19 such that each area education agency shall receive a reduction 26 20 proportionate to the amount that it would otherwise have 26 21 received under this section if the reduction imposed pursuant 26 22 to this subsection did not apply. 26 23 Sec. 42. Section 257.37, subsection 6, Code 2003, is 26 24 amended to read as follows: 26 25 6. For the budgetyearsyear beginning July 1, 2002, and 26 26July 1, 2003each succeeding budget year, notwithstanding the 26 27 requirements of this section for determining the budgets and 26 28 funding of media services and education services, an area 26 29 education agency may, within the limits of the total of the 26 30 funds provided for the budget years pursuant to section 26 31 257.35, expend for special education support services an 26 32 amount that exceeds the payment for special education support 26 33 services pursuant to section 257.35 in order to maintain the 26 34 level of required special education support services in the 26 35 area education agency. 27 1 Sec. 43. EFFECTIVE DATE. This division of this Act, being 27 2 deemed of immediate importance, takes effect upon enactment. 27 3 DIVISION XIII 27 4 CHILD WELFARE SERVICES 27 5 Sec. 44. CHILD WELFARE SERVICES SYSTEM REDESIGN. 27 6 1. PURPOSE. The department of human services shall 27 7 initiate a process for improving the outcomes for families in 27 8 this state who become involved with the state system for child 27 9 welfare and juvenile delinquency by implementing a system 27 10 redesign to transition to an outcomes-based system for 27 11 children identified in this section. The outcomes-based 27 12 system shall be organized based upon the federal child welfare 27 13 outcomes and expectations and shall address the following 27 14 purposes for the children and families involved with the state 27 15 system: 27 16 a. Safety. 27 17 (1) Children are, first and foremost, protected from abuse 27 18 and neglect. 27 19 (2) Children are safely maintained in the children's homes 27 20 with family, whenever possible. 27 21 (3) The safety of communities is preserved. 27 22 b. Permanency. 27 23 (1) Children have permanency and stability in the 27 24 children's living situations. 27 25 (2) The continuity of children's family relationships and 27 26 connections are preserved. 27 27 c. Child and family well-being. 27 28 (1) Family capacity to provide for the needs of the 27 29 children who are part of the family is enhanced. 27 30 (2) Children receive appropriate services to meet the 27 31 children's educational needs. 27 32 (3) Children receive additional services that are adequate 27 33 to meet the children's physical and mental health needs. 27 34 (4) Youth who are becoming adults and leaving the service 27 35 system for children will receive appropriate services to make 28 1 the transition to become self-sufficient and contributing 28 2 members of the community. 28 3 2. CHILDREN INVOLVED. The service system redesign shall 28 4 address the needs of children who are referred to the 28 5 department of human services or juvenile court services, 28 6 including but not limited to all of the following: 28 7 a. Children adjudicated as a child in need of assistance 28 8 under chapter 232. 28 9 b. Children adjudicated delinquent under chapter 232. 28 10 c. Children subject to emergency removal under chapter 28 11 232. 28 12 d. Children identified through a child abuse assessment 28 13 conducted in accordance with section 232.71B as being at risk 28 14 of harm from maltreatment due to child abuse. 28 15 3. DESIGN PRINCIPLES. The service system redesign shall 28 16 incorporate all of the following design principles: 28 17 a. Outcomes can be achieved in the most efficient and 28 18 cost-effective manner possible. 28 19 b. The roles of public and private agencies in the 28 20 redesigned system's delivery model are clarified. 28 21 c. The financing structure maximizes state and federal 28 22 funding with as much flexibility as possible. 28 23 d. The methodology for purchasing performance outcomes 28 24 includes definitions of performance expectations, 28 25 reimbursement provisions, financial incentives, provider 28 26 flexibility provisions, and viable protection provisions for 28 27 children, the state, and providers. 28 28 e. The regulatory and contract monitoring approaches are 28 29 designed to assure effective oversight and quality. 28 30 f. The administrative aspects address system planning and 28 31 support, data collection, policy development, and budgeting. 28 32 4. DESIGN CONSIDERATIONS. The service system redesign 28 33 shall address all of the following design considerations: 28 34 a. Successful outcome and performance-based system changes 28 35 made in other states and communities are incorporated. 29 1 b. Linkages are made with the existing community planning 29 2 efforts and partnerships. 29 3 c. Federal program and budget accountability expectations 29 4 are addressed. 29 5 d. Linkages with other critical service systems are 29 6 effectively incorporated, including but not limited to the 29 7 systems for mental health, domestic abuse, and substance abuse 29 8 services, and the judicial branch. 29 9 e. Options are considered for implementation of an acuity- 29 10 based, case rate system that offers bonuses or other 29 11 incentives for providers that achieve identified results and 29 12 for providers that are able to develop strategic and 29 13 collaborative relationships with other providers. 29 14 f. Policy options are developed to address the needs of 29 15 difficult-to-treat children, such as no-eject, no-reject time 29 16 periods. 29 17 5. REDESIGN PLANNING PROCESS. The department of human 29 18 services shall implement an inclusive process for the service 29 19 system redesign utilizing a stakeholder panel to involve a 29 20 broad spectrum of input into the redesign planning, design, 29 21 implementation, and evaluation process. The stakeholder panel 29 22 membership may include but is not limited to representation 29 23 from all of the following: 29 24 a. Service consumers. 29 25 b. Judicial branch and justice system. 29 26 c. Service providers. 29 27 d. Community-based collaboration efforts such as child 29 28 welfare decategorization projects and community partnership 29 29 for child protection projects. 29 30 e. Foster and adoptive parents. 29 31 f. Advocacy groups. 29 32 g. Departmental staff. 29 33 h. Education and special education practitioners. 29 34 i. Others. 29 35 6. LEGISLATIVE MONITORING. A six-member legislative 30 1 committee is established to monitor the service system 30 2 redesign planning and implementation. The members shall be 30 3 appointed as follows: two members by the senate majority 30 4 leader, one member by the senate minority leader, two members 30 5 by the speaker of the house of representatives, and one member 30 6 by the minority leader of the house of representatives. The 30 7 committee shall provide advice and consultation to the 30 8 department and consider any legislative changes that may be 30 9 needed for implementation. 30 10 7. IMPLEMENTATION. The following implementation 30 11 provisions apply to the service system redesign: 30 12 a. The redesign plan shall be implemented during the 30 13 fiscal year beginning July 1, 2003, and ending June 30, 2004. 30 14 b. The department of human services may adopt emergency 30 15 rules under section 17A.4, subsection 2, and section 17A.5, 30 16 subsection 2, paragraph "b", to implement the provisions of 30 17 this section and the rules shall be effective immediately upon 30 18 filing or on a later date specified in the rules, unless the 30 19 effective date is delayed by the administrative rules review 30 20 committee. Any rules adopted in accordance with this 30 21 paragraph shall not take effect before the rules are reviewed 30 22 by the administrative rules review committee. The delay 30 23 authority provided to the administrative rules review 30 24 committee under section 17A.4, subsection 5, and section 30 25 17A.8, subsection 9, shall be applicable to a delay imposed 30 26 under this paragraph, notwithstanding a provision in those 30 27 sections making them inapplicable to section 17A.5, subsection 30 28 2, paragraph "b". Any rules adopted in accordance with this 30 29 paragraph shall also be published as a notice of intended 30 30 action as provided in section 17A.4. 30 31 c. The director of human services shall seek any federal 30 32 waiver or federal plan amendment relating to funding provided 30 33 under Title IV-B, IV-E, or XIX of the federal Social Security 30 34 Act necessary to implement the service system redesign. 30 35 8. STATUTORY REQUIREMENTS. The requirements of sections 31 1 18.6 and 72.3 and the administrative rules implementing 31 2 section 8.47 are not applicable to the services procurement 31 3 process used to implement the outcomes-based service system 31 4 redesign in accordance with this section. The department of 31 5 human services may enter into competitive negotiations and 31 6 proposal modifications with each successful contractor as 31 7 necessary to implement the provisions of this section. 31 8 9. APPROPRIATIONS REDUCTION. The appropriations made from 31 9 the general fund of the state to the department of human 31 10 services for the fiscal year beginning July 1, 2003, and 31 11 ending June 30, 2004, in 2003 Iowa Acts, House File 667, if 31 12 enacted, for services, staffing, and support related to the 31 13 service system redesign are reduced by $10,000,000. The 31 14 governor shall apply the appropriations reductions on or 31 15 before January 1, 2004, following consultation with the 31 16 director of human services, the council on human services, and 31 17 the legislative monitoring committee established pursuant to 31 18 this section. The appropriations subject to reduction shall 31 19 include but are not limited to the appropriations made for 31 20 child and family services, field operations, medical 31 21 assistance program, and general administration. The 31 22 appropriations reductions applied by the governor shall be 31 23 reported to the general assembly on the date the reductions 31 24 are applied. If the judicial branch reports a revision to the 31 25 judicial branch budget for juvenile court services making a 31 26 reduction as a result of the service system redesign, the 31 27 amount of the reductions applied by the governor shall be 31 28 reduced by the same amount. 31 29 Sec. 45. CHILD WELFARE SYSTEM REDESIGN. There is 31 30 appropriated from the general fund of the state to the 31 31 department of human services for the fiscal year beginning 31 32 July 1, 2003, and ending June 30, 2004, the following amounts, 31 33 or so much thereof as is necessary, to be used for the 31 34 purposes designated: 31 35 1. For training of service providers and departmental 32 1 employees in performance contracting, new service roles, and 32 2 other skills and information related to the redesign of the 32 3 child welfare service system, and for the development of a 32 4 statewide information system for implementation of changes 32 5 associated with the service system redesign: 32 6 .................................................. $ 1,200,000 32 7 2. For deposit in a provider loan fund, which shall be 32 8 created in the office of the treasurer of state under the 32 9 authority of the department of human services, to be used to 32 10 assist child welfare service providers with short-term cash 32 11 flow needs: 32 12 .................................................. $ 1,000,000 32 13 Moneys in the provider loan fund are appropriated to the 32 14 department for use in accordance with this subsection. The 32 15 department shall determine the length and interest rate for 32 16 loans, if any. Loan repayment proceeds shall be credited to 32 17 the provider loan fund and are appropriated to the department 32 18 to be used for other loans. 32 19 DIVISION XIV 32 20 DEPARTMENT OF HUMAN SERVICES REINVENTION 32 21 Sec. 46. APPROPRIATIONS REDUCTION. The appropriations 32 22 made from the general fund of the state for the fiscal year 32 23 beginning July 1, 2003, and ending June 30, 2004, to the 32 24 department of human services in 2003 Iowa Acts, House File 32 25 667, if enacted, are reduced by $300,000 to reflect the 32 26 anticipated savings from the electronic payment of benefits 32 27 and billings implemented pursuant to this division of this 32 28 Act. The governor shall apply the appropriations reductions 32 29 on or before January 1, 2004, following consultation with the 32 30 director of human services and the council on human services. 32 31 The appropriations reductions applied by the governor shall be 32 32 reported to the general assembly on the date the reductions 32 33 are applied. 32 34 Sec. 47. SYSTEM EFFICIENCIES – ELECTRONIC BILLING AND 32 35 PAYMENT – COMPATIBILITY – COMMUNICATIONS. 33 1 1. The department of human services shall develop a plan 33 2 to provide all provider payments under the medical assistance 33 3 program on an electronic basis by June 30, 2005. 33 4 2. The department of human services shall submit a plan to 33 5 implement an electronic billing and payment system for child 33 6 care providers to the governor and the general assembly by 33 7 January 1, 2004. 33 8 3. In developing any billing, payment, or eligibility 33 9 systems, the department of human services shall ensure that 33 10 the systems are compatible. 33 11 4. The department of human services shall investigate 33 12 measures to increase effective and efficient communications 33 13 with clients, including but not limited to reducing 33 14 duplicative mailings, and shall submit a report of 33 15 recommendations to the governor and the general assembly by 33 16 January 1, 2004. 33 17 Sec. 48. MEDICAL ASSISTANCE APPROPRIATION REDUCTION. The 33 18 appropriation made from the general fund of the state for the 33 19 fiscal year beginning July 1, 2003, and ending June 30, 2004, 33 20 to the department of human services in 2003 Iowa Acts, House 33 21 File 667, if enacted, for medical assistance is reduced by 33 22 $7,500,000. 33 23 Sec. 49. HOSPITAL TRUST FUND – MEDICAL ASSISTANCE 33 24 SUPPLEMENT. 33 25 1. Notwithstanding 2002 Iowa Acts, chapter 1003, Second 33 26 Extraordinary Session, sections 150 and 151, as the sections 33 27 relate to the hospital trust fund, moneys shall not be 33 28 transferred from the hospital trust fund at the end of the 33 29 fiscal year beginning July 1, 2003. 33 30 2. There is appropriated from the hospital trust fund to 33 31 the department of human services for the fiscal year beginning 33 32 July 1, 2003, and ending June 30, 2004, the following amount, 33 33 or so much thereof as is necessary to be used for the purposes 33 34 designated: 33 35 To supplement the medical assistance appropriation made in 34 1 2003 Iowa Acts, House File 667, if enacted: 34 2 .................................................. $ 14,000,000 34 3 The appropriation made in this subsection shall include 34 4 moneys in the hospital trust fund that remain unencumbered or 34 5 unobligated at the end of the fiscal year beginning July 1, 34 6 2002, and ending June 30, 2003. 34 7 Sec. 50. IOWA JUVENILE HOME. The appropriation made from 34 8 the general fund of the state for the fiscal year beginning 34 9 July 1, 2003, and ending June 30, 2004, to the department of 34 10 human services in 2003 Iowa Acts, House File 667, if enacted, 34 11 for the Iowa juvenile home at Toledo, is reduced by $410,540. 34 12 Sec. 51. STATE TRAINING SCHOOL. The appropriation made 34 13 from the general fund of the state for the fiscal year 34 14 beginning July 1, 2003, and ending June 30, 2004, to the 34 15 department of human services in 2003 Iowa Acts, House File 34 16 667, if enacted, for the state training school at Eldora is 34 17 reduced by $1,239,227. 34 18 Sec. 52. INDEPENDENCE MHI. The appropriation made from 34 19 the general fund of the state for the fiscal year beginning 34 20 July 1, 2003, and ending June 30, 2004, to the department of 34 21 human services in 2003 Iowa Acts, House File 667, if enacted, 34 22 for the state mental health institute at Independence, is 34 23 reduced by $544,192. 34 24 Sec. 53. Section 256.7, subsection 10, Code 2003, is 34 25 amended to read as follows: 34 26 10. Adopt rules pursuant to chapter 17A relating to 34 27 educational programs and budget limitations for educational 34 28 programs pursuant to sections282.28,282.29, 282.30,and34 29 282.31, and 282.33. 34 30 Sec. 54. Section 282.32, Code 2003, is amended to read as 34 31 follows: 34 32 282.32 APPEAL. 34 33 An area education agency or local school district may 34 34 appeal a decision made pursuant to section282.28 or282.31 to 34 35 the state board of education. The decision of the state board 35 1 is final. 35 2 Sec. 55. NEW SECTION. 282.33 FUNDING FOR CHILDREN 35 3 RESIDING IN STATE MENTAL HEALTH INSTITUTES OR INSTITUTIONS. 35 4 1. A child who resides in an institution for children 35 5 under the jurisdiction of the director of human services 35 6 referred to in section 218.1, subsection 3, 5, 7, or 8, and 35 7 who is not enrolled in the educational program of the district 35 8 of residence of the child, shall receive appropriate 35 9 educational services. The institution in which the child 35 10 resides shall submit a proposed program and budget based on 35 11 the average daily attendance of the children residing in the 35 12 institution to the department of education and the department 35 13 of human services by January 1 for the next succeeding school 35 14 year. The department of education shall review and approve or 35 15 modify the proposed program and budget and shall notify the 35 16 department of revenue and finance of its action by February 1. 35 17 The department of revenue and finance shall pay the approved 35 18 budget amount to the department of human services in monthly 35 19 installments beginning September 15 and ending June 15 of the 35 20 next succeeding school year. The installments shall be as 35 21 nearly equal as possible as determined by the department of 35 22 revenue and finance, taking into consideration the relative 35 23 budget and cash position of the state's resources. The 35 24 department of revenue and finance shall pay the approved 35 25 budget amount for the department of human services from the 35 26 moneys appropriated under section 257.16 and the department of 35 27 human services shall distribute the payment to the 35 28 institution. The institution shall submit an accounting for 35 29 the actual cost of the program to the department of education 35 30 by August 1 of the following school year. The department 35 31 shall review and approve or modify all expenditures incurred 35 32 in compliance with the guidelines adopted pursuant to section 35 33 256.7, subsection 10, and shall notify the department of 35 34 revenue and finance of the approved accounting amount. The 35 35 approved accounting amount shall be compared with any amounts 36 1 paid by the department of revenue and finance to the 36 2 department of human services and any differences added to or 36 3 subtracted from the October payment made under this subsection 36 4 for the next school year. Any amount paid by the department 36 5 of revenue and finance shall be deducted monthly from the 36 6 state foundation aid paid under section 257.16 to all school 36 7 districts in the state during the subsequent fiscal year. The 36 8 portion of the total amount of the approved budget that shall 36 9 be deducted from the state aid of a school district shall be 36 10 the same as the ratio that the budget enrollment for the 36 11 budget year of the school district bears to the total budget 36 12 enrollment in the state for that budget year in which the 36 13 deduction is made. 36 14 2. Programs may be provided during the summer and funded 36 15 under this section if the institution determines a valid 36 16 educational reason to do so and the department of education 36 17 approves the program in the manner provided in subsection 1. 36 18 Sec. 56. Section 282.28, Code 2003, is repealed. 36 19 Sec. 57. FY 2003-2004 FUNDING. For purposes of providing 36 20 funding for educational programs provided to children residing 36 21 in an institution for children under the jurisdiction of the 36 22 director of human services referred to in section 218.1, 36 23 subsection 3, 5, 7, or 8, the institution providing such 36 24 programs to children residing in the institution shall submit 36 25 an estimated proposed program and budget based on the 36 26 estimated average daily attendance of children who will likely 36 27 be provided educational programs during the fiscal year 36 28 beginning July 1, 2003, and ending June 30, 2004, to the 36 29 department of education and the department of human services 36 30 by August 1, 2003. The department of education shall review 36 31 and approve or modify the proposed program and budget and 36 32 shall notify the department of revenue and finance of its 36 33 action by September 1, 2003. The department of revenue and 36 34 finance shall pay the approved budget amount, and the 36 35 department of human services shall distribute payments, as 37 1 provided in section 282.33. 37 2 Sec. 58. EFFECTIVE DATE. The section of this division of 37 3 this Act relating to appropriation of moneys in the hospital 37 4 trust fund, being deemed of immediate importance, takes effect 37 5 upon enactment. 37 6 EXPLANATION 37 7 This bill relates to state and local government financial 37 8 and regulatory matters, makes and reduces appropriations, and 37 9 provides a fee. 37 10 PROPERTY TAX REPLACEMENT – This division repeals the 37 11 requirements for state payment of personal property tax 37 12 replacement moneys to local governments in Code chapter 405A 37 13 and Code section 427A.12 and accelerates the phaseout of state 37 14 payment of replacement moneys for the property tax on 37 15 machinery, equipment, and computers in Code sections 427B.19A 37 16 and 427B.19B. The division repeals the state payment of 37 17 franchise tax revenues to local governments. The division 37 18 repeals Code section 403.23, requiring an annual report from 37 19 local governments concerning tax increment financing and urban 37 20 renewal areas. In addition, the division provides conforming 37 21 amendments. City and county financial reporting requirements 37 22 in Code sections 331.403 and 384.22 currently provide for 37 23 withholding a portion of franchise tax revenues if financial 37 24 reports are filed on time and the bill provides instead that 37 25 homestead tax exemption payments will be withheld. 37 26 The division provides that if the governor vetoes any 37 27 provisions in the division resulting in increased 37 28 appropriations, the governor shall order uniform reductions in 37 29 general fund appropriations to the executive branch. 37 30 PARKING TICKETS – This division provides that a local 37 31 authority may establish the parking violation fine for each 37 32 violation that occurs. Current law establishes the maximum 37 33 parking fine at $5. 37 34 The division provides that if a parking violation is not 37 35 paid within 30 days, the fine amount increases by $5. Under 38 1 current law the fine amount increases up to $10. 38 2 The division equalizes the amount of an unsecured 38 3 appearance bond for a parking violation to the amount of the 38 4 parking violation fine established by the local authority. An 38 5 unsecured appearance bond permits the court to enter a 38 6 conviction and render judgment against the defendant for the 38 7 amount of the bond in satisfaction of the penalty plus court 38 8 costs, if the defendant fails to appear in court for trial. 38 9 LAW ENFORCEMENT ACADEMY – This division relates to the 38 10 Iowa law enforcement academy. Code chapter 80B is amended to 38 11 provide that an individual who is not a certified law 38 12 enforcement officer may apply for attendance at the law 38 13 enforcement academy at their own expense on the condition that 38 14 the individual meets certain eligibility requirements as 38 15 established by academy rules. 38 16 This provision further provides that an individual shall 38 17 not be granted permission to attend the academy training 38 18 program if such acceptance would result in the nonacceptance 38 19 of another qualifying applicant who is a law enforcement 38 20 officer. 38 21 PUBLICATION – BUDGET – This division relates to local 38 22 government publication and budget appeal requirements. Code 38 23 sections 24.9 and 362.3; Code section 372.13, subsection 6; 38 24 and Code section 384.16, subsection 3, are amended to provide 38 25 that a city with a population of 700 or less can meet 38 26 publication requirements by posting in three public places in 38 27 the city which have been permanently designated by ordinance. 38 28 Under current law, only cities with a population of 200 or 38 29 less could meet publication requirements in this manner. 38 30 Code section 331.436 is amended to provide that the number 38 31 of people necessary to file an appeal of a proposed county 38 32 budget under this section must be equal to one-fourth of 1 38 33 percent of those voting for the office of governor at the last 38 34 general election of the county, but not less than 100 people. 38 35 Under current law, a protest of a county budget could be made 39 1 by a number of people equal to one-fourth of 1 percent of 39 2 those voting for the office of governor at the last general 39 3 election of the county, but not less than 10 people. 39 4 Code section 349.3 is amended to provide that in counties 39 5 having a population of less than 20,000 the board of 39 6 supervisors shall select two newspapers, or one, if only one 39 7 newspaper is published in the county, to publish the official 39 8 proceedings of the county for the year. Under current law, 39 9 counties having a population of 15,000 or more are required to 39 10 select at least three official newspapers to publish official 39 11 county proceedings. 39 12 Code section 349.15 is amended to coordinate with the 39 13 amendment of Code section 349.3 to provide that if the 39 14 publishers of two or more newspapers in a county, one of which 39 15 is entitled to be selected as a county official newspaper, 39 16 agree to publish the official proceedings or unite in a 39 17 request to have their publication selected as the official 39 18 newspaper, the combined compensation of such newspapers shall 39 19 not exceed the combined compensation allowed by law to two 39 20 official newspapers in counties having a population below 39 21 20,000 or to three official newspapers in counties having a 39 22 population of 20,000 or more. 39 23 CITY CIVIL SERVICE REFORM – This division makes changes to 39 24 certain employment requirements affecting city civil service 39 25 employees. 39 26 Code section 400.8 is amended to provide that the 39 27 probationary period applicable to appointments to civil 39 28 service positions shall be for such period of time as 39 29 established by the city. Currently, the statute provides 39 30 maximum probationary periods for different civil service 39 31 positions. The current statute provides for a maximum 24- 39 32 month probationary period for fire fighters in cities with a 39 33 population over 175,000, a maximum 12-month probationary 39 34 period for police dispatchers and all other fire fighters, a 39 35 maximum nine-month probationary period for police patrol 40 1 officers, and a maximum six-month probationary period for all 40 2 other civil service appointments. 40 3 Code section 400.11 is amended to eliminate the requirement 40 4 that a person temporarily filling a vacancy in a city civil 40 5 service position at a higher grade for 20 days shall receive 40 6 the salary for such higher grade. 40 7 TRANSACTION FEE – This division requires the county 40 8 recorder to collect an electronic transaction fee of $5 for 40 9 each recorded transaction for which a fee is already paid 40 10 pursuant to the general recording and filing fee requirements 40 11 of Code section 331.604. The purpose of the electronic 40 12 transaction fee is to fund the planning and implementation of 40 13 electronic recording and electronic transactions in each 40 14 county and development of county and statewide internet 40 15 websites. 40 16 The division requires the county treasurer to establish and 40 17 maintain an interest-bearing account into which all electronic 40 18 transaction fees collected are deposited. The bill provides 40 19 that the recorder may cooperate with other entities, boards, 40 20 and agencies and participate in other joint ventures to carry 40 21 out the purposes of planning and implementing electronic 40 22 transactions in the county. The bill also requires the 40 23 recorder to make information available to the county or state 40 24 auditor concerning the fees collected and the uses for which 40 25 the fees are expended. 40 26 The division establishes the local government electronic 40 27 transaction account in the office of the treasurer of state. 40 28 Interest or earnings on moneys in the account are credited to 40 29 the account. The treasurer of state is directed to enter into 40 30 a contract with the statewide county recorders affiliate for 40 31 the costs of implementing and maintaining an internet site for 40 32 the information recorded or filed by county recorders. Of the 40 33 $5 transaction fee, the county treasurer is required to pay 40 34 $1.50 to the treasurer of state to be credited to the 40 35 transaction account. The moneys in the transaction account 41 1 are appropriated to the treasurer of state to pay for the 41 2 contract costs. 41 3 The authority for the transaction fee is repealed effective 41 4 July 1, 2005. 41 5 LOCAL GOVERNMENT LEASES – This division provides that a 41 6 city or county may enter into a lease with a joint city-county 41 7 authority when the city or county and the authority determine 41 8 that such a lease is necessary and convenient to effectuate 41 9 their purposes and the purposes of Code section 346.27. 41 10 The division also provides that the power to enter into 41 11 leases under this Code section is in addition to other powers 41 12 granted to cities and counties to enter into leases and the 41 13 provisions of Code chapter 75, Code section 364.4, subsection 41 14 4, and Code section 331.301, subsection 10, which require a 41 15 city or county entering into a lease to follow the 41 16 authorization procedure which requires an affirmative vote of 41 17 60 percent of the votes cast on the question, are not 41 18 applicable and instead only a majority vote is required for 41 19 authorization of leases entered into under this Code section. 41 20 LOCAL GOVERNMENT INNOVATION FUND – This division 41 21 establishes the local government innovation fund under the 41 22 control of the department of management. The purpose of the 41 23 fund is to provide loans to cities and counties for purposes 41 24 of stimulating and encouraging city and county innovation and 41 25 savings in expenditures. The director of the department of 41 26 management is directed to appoint a seven-member committee to 41 27 implement forms, loan requirements, and loan repayment 41 28 schedules, and to perform other administrative functions. The 41 29 loan provisions are required to be outlined in a Code chapter 41 30 28E agreement between the state and the city or county 41 31 receiving the loan. Moneys appropriated to the fund do not 41 32 revert and the fund retains interest and earnings. 41 33 The division provides an initial appropriation to the fund 41 34 and allows up to 20 percent of the amount appropriated to be 41 35 used for forgivable loans or grants. 42 1 CHARGE FOR CAPITAL ASSETS – This division directs the 42 2 department of management, for fiscal year 2003-2004, to levy 42 3 charges against certain executive branch departments and 42 4 agencies for the indirect costs associated with the capital 42 5 assets controlled by the departments and agencies. Proceeds 42 6 from the charges are required to be credited to the fund from 42 7 which the moneys used to pay the charges were appropriated and 42 8 are limited in amount. The division provides for a reduction 42 9 in certain state board of regents appropriations in lieu of 42 10 the capital asset charges and requires the state board of 42 11 regents to study the issue and report the study's findings in 42 12 December 2003. 42 13 CHARTER AGENCIES – This division establishes new Code 42 14 chapter 7J and provides the governor with the authority to 42 15 designate, by July 1, 2003, up to five state agencies as 42 16 charter agencies. The department of administrative services, 42 17 if established in law, and the department of management cannot 42 18 be designated as a charter agency. The designation of a 42 19 charter agency shall be for a period of five years and shall 42 20 terminate June 30, 2008. The division takes effect upon 42 21 enactment. 42 22 The division establishes the additional authority and 42 23 requirements applicable to charter agencies. The division 42 24 provides that the pay for a director of a charter agency shall 42 25 be set by the governor within the pay plan for exempt 42 26 positions in state government with a possible bonus of up to 42 27 50 percent of that amount. Each director is also required to 42 28 enter into an annual performance agreement with the governor. 42 29 The division further provides that the total appropriations 42 30 to charter agencies for the fiscal year beginning July 1, 42 31 2003, shall be reduced by $15 million, with a target of a 10 42 32 percent reduction for each charter agency. The division 42 33 indicates similar reductions are contemplated for the five 42 34 years this division is in effect. In addition, each charter 42 35 agency is allowed to retain 50 percent of any unobligated or 43 1 unexpended appropriations at the end of each fiscal year. 43 2 The division also provides that a charter agency is not 43 3 subject to any limitations relating to the number or grade of 43 4 its employees. In addition, a charter agency is granted the 43 5 authority to waive any personnel requirement subject to any 43 6 restriction contained within a collective bargaining 43 7 agreement. 43 8 The division also allows a charter agency to waive any rule 43 9 or regulation regarding procurement, fleet management, 43 10 printing and copying, maintenance of buildings, and 43 11 information technology. 43 12 The division also permits a charter agency to waive any 43 13 regulatory statute or administrative rule if strict compliance 43 14 with the statute or rule impacts the ability of the agency to 43 15 perform its duties in the most cost-efficient manner. The 43 16 division then provides that the charter agency may grant the 43 17 waiver if it finds, by clear and convincing evidence, that the 43 18 provision to be waived poses an undue financial hardship, that 43 19 the waiver would not prejudice the rights of any person, that 43 20 the public health and welfare can be protected by other means, 43 21 and that the waiver would not violate federal law or the 43 22 federal or state constitution. If the agency proposes a 43 23 waiver, the agency shall submit the waiver to the 43 24 administrative rules review committee which shall review the 43 25 waiver at its next meeting. The administrative rules review 43 26 committee can either approve the waiver affirmatively or by 43 27 not taking action, or it can delay the effective date of the 43 28 waiver in the same manner as the committee can delay the 43 29 effective date of an administrative rule. The division 43 30 provides that the charter agency shall maintain copies of 43 31 grants and denials of waiver requests for public inspection. 43 32 The division further provides that a waiver may extend no 43 33 longer than 12 months, or until June 30, 2008, whichever is 43 34 earlier. 43 35 The division further provides that each charter agency 44 1 shall submit annual reports to the legislature concerning its 44 2 actions as a charter agency and requires the governor to 44 3 submit a report to the legislature concerning the 44 4 implementation of the division by January 15, 2008. 44 5 The division also provides that each proposed waiver or 44 6 suspension of a statute or rule by a charter agency shall be 44 7 submitted to the department of management for review and the 44 8 director of the department may disapprove the waiver or 44 9 suspension if it would result in an adverse financial impact 44 10 on the state. 44 11 The division creates a charter agency loan fund under the 44 12 authority of the department of management to be used to 44 13 support innovation by charter agencies. The director of the 44 14 department of management is directed to establish requirements 44 15 for the loan fund. A loan must be paid back within five 44 16 years, with interest at a rate to be determined by the 44 17 director. The fund retains interest and earnings on moneys in 44 18 the fund. Moneys credited to the fund do not revert to the 44 19 fund from which appropriated. An initial appropriation is 44 20 made to the fund. 44 21 HEALTH INSURANCE INCENTIVE – This division provides that 44 22 the department of personnel, or its successor, may establish 44 23 an incentive program for state employees to encourage 44 24 employees to reduce health insurance costs for the fiscal year 44 25 beginning July 1, 2003. The program shall provide that 50 44 26 percent of any savings realized shall be distributed to 44 27 affected state employees in a manner established by the 44 28 program. The division requires that the department obtain 44 29 approval of the program from the executive council and submit 44 30 a copy of the proposed program, and an update on the program 44 31 by December 31, 2003, to the legislative government oversight 44 32 committee. 44 33 AREA EDUCATION AGENCIES – This division requires the 44 34 department of education to establish a task force to study the 44 35 delivery and funding of media services, educational services, 45 1 and special education support services by the area education 45 2 agencies (AEAs). The 16-member task force includes the 45 3 director of the department of education or the director's 45 4 designee, an AEA administrator, a person representing the 45 5 interests of special education students, urban and rural 45 6 school district superintendents, a person from the private 45 7 sector, and 10 members of the general assembly. The 45 8 department must submit its findings and recommendations to the 45 9 chairpersons and ranking members of the senate and house 45 10 standing committees on education and the joint appropriations 45 11 subcommittee on education by December 15, 2003. 45 12 The division provides for reductions in specified area 45 13 education agency funding levels and carryover balances. 45 14 The division provides that for the fiscal year beginning 45 15 July 1, 2003, and ending June 30, 2004, area education agency 45 16 special education support services fund balances shall be 45 17 reduced. Specific reduction amounts are provided for each 45 18 area education agency. With respect to this reduction, an 45 19 area education agency may use the funds determined to be 45 20 available under Code section 257.35, which provides for area 45 21 education agency payments, and unreserved fund balances for 45 22 media services or education services, in a manner which it 45 23 believes is appropriate to best maintain the level of required 45 24 area education agency special education services. 45 25 A reduction in state aid for area education agencies is 45 26 made and the portion of the combined district cost calculated 45 27 for the agencies of $7.5 million, which is currently 45 28 applicable for the fiscal period beginning July 1, 2002, and 45 29 ending June 30, 2004, shall be a permanent annual reduction 45 30 applicable for each fiscal year. The reduction made for each 45 31 area education agency shall be equal to the reduction that the 45 32 agency received in the fiscal year beginning July 1, 2001. 45 33 For the fiscal year beginning July 1, 2003, and ending June 45 34 30, 2004, there is an additional reduction in state aid for 45 35 area education agencies and the portion of the combined 46 1 district cost calculated for the agencies of $10 million. 46 2 With reference to this additional $10 million reduction, the 46 3 department of management shall calculate the reduction such 46 4 that each area education agency shall receive a reduction 46 5 proportionate to the amount that it would have received under 46 6 Code section 257.35 if the reductions had not been imposed. 46 7 The division provides that Code section 257.37, subsection 46 8 6, which provides that an area education agency may, within 46 9 the limits of the total of the funds provided pursuant to Code 46 10 section 257.35, expend for special education support services 46 11 an amount that exceeds the payment for special education 46 12 support services pursuant to that Code section in order to 46 13 maintain the level of required special education support 46 14 services in the area education agency, shall be made 46 15 permanently applicable. The subsection is currently 46 16 applicable for the budget years beginning July 1, 2002, and 46 17 July 1, 2003. 46 18 The division takes effect upon enactment. 46 19 CHILD WELFARE SERVICES – The division requires the 46 20 department of human services to implement a service system 46 21 redesign for child welfare services applicable to those 46 22 children who are subject to the jurisdiction of the juvenile 46 23 court under Code chapter 232 or who have been found to be a 46 24 victim of child abuse by the department of human services. 46 25 The division states the purpose of the system redesign, 46 26 identifies the children involved, identifies design principles 46 27 and considerations, provides for use of a stakeholder panel, 46 28 establishes a legislative monitoring committee, requires the 46 29 redesign to be implemented during fiscal year 2003-2004, 46 30 provides emergency rulemaking authority, and authorizes the 46 31 director of human services to seek federal waivers and plan 46 32 amendments. 46 33 The statutory requirements in Code section 18.6, relating 46 34 to competitive bidding, and Code section 72.3, relating to 46 35 penalties for divulging the contents of sealed bids, and the 47 1 administrative rules adopted for Code section 8.47, relating 47 2 to requirements for service contracts, are not applicable to 47 3 the services procurement process used to implement the 47 4 outcomes-based service system redesign. The department is 47 5 authorized to enter into competitive negotiations and proposal 47 6 modifications with service contractors as necessary to 47 7 implement the outcomes-based approach. 47 8 The FY 2003-2004 general fund appropriations to the 47 9 department are reduced by $10,000,000 and the governor is 47 10 required to apply the reductions by January 1, 2004, after 47 11 consulting with the legislative monitoring committee, the 47 12 director of human services, and the council on human services. 47 13 If the judicial branch reports a reduction to the judicial 47 14 branch budget as a result of the redesign, the amount of the 47 15 reductions made by the governor shall be reduced accordingly. 47 16 Appropriations are made to the department for costs to 47 17 implement the service system redesign. 47 18 DEPARTMENT OF HUMAN SERVICES REINVENTION – This division 47 19 reduces and supplements various appropriations made to the 47 20 department of human services for FY 2003-2004 and transfers 47 21 moneys from the hospital trust fund at the end of FY 2002- 47 22 2003. 47 23 For FY 2003-2004, the bill compresses the deadlines and 47 24 requires the institutions to provide to the department of 47 25 education, and the department of human services, an estimated 47 26 proposed program and budget based on the estimated average 47 27 daily attendance of children who will likely be provided 47 28 educational programs during the fiscal year. 47 29 The department of human services is required to develop 47 30 plans for making electronic payments to medical assistance 47 31 program and child care services providers. Various FY 2003- 47 32 2004 appropriations are reduced to reflect the anticipated 47 33 savings from this change. The governor is directed to apply 47 34 the reduction by January 1, 2004. 47 35 The appropriation made for FY 2003-2004 for the medical 48 1 assistance program from the hospital trust fund is 48 2 supplemented. In addition, a planned transfer of the hospital 48 3 trust fund balance at the end of fiscal year 2002-2003 is 48 4 eliminated. 48 5 The division amends the Code to modify the procedures for 48 6 authorizing and funding educational programs provided to 48 7 children residing in institutions under the jurisdiction of 48 8 the director of human services, specifically the mental health 48 9 institutes at Cherokee and Independence, the state training 48 10 school at Eldora, and the Iowa juvenile home at Toledo. 48 11 The institution in which a child resides is required to 48 12 submit to the department of education a proposed program and 48 13 budget for approval or modification. Once a proposed program 48 14 and budget are approved, the department of revenue and finance 48 15 is directed to pay the approved budget amount in monthly 48 16 installments to the department of human services, which will 48 17 distribute the payments to the appropriate institutions. 48 18 Adjustments will be made to subtract or add to the October 48 19 payment in the following year if costs were greater or less 48 20 than proposed. 48 21 Currently, the funding for the programs is derived from an 48 22 appropriation made to the department of human services, though 48 23 the area education agencies provide the Iowa juvenile home and 48 24 the state training school with services under Code section 48 25 282.28, which the bill repeals. Funding for the education 48 26 programs will come from the moneys appropriated for school 48 27 foundation aid. Reductions are applied to FY 2003-2004 48 28 appropriations to reflect the change in the funding source. 48 29 Appropriations for the state training school, Iowa juvenile 48 30 home, and state mental health institute at Independence are 48 31 affected. 48 32 LSB 3461SC 80 48 33 jp/pj/5
Text: SSB01204 Text: SSB01206 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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