ARC 6195C
HUMAN SERVICES DEPARTMENT[441]
Adopted and Filed
Rule making related to incentive fund for mental health and disability services regions
The Human Services Department hereby amends Chapter 25, “Disability Services Management,” Iowa Administrative Code.
Legal Authority for Rule Making
This rule making is adopted under the authority provided in Iowa Code section 225C.6.
State or Federal Law Implemented
This rule making implements, in whole or in part, Iowa Code section 225C.7A.
Purpose and Summary
2021 Iowa Acts, Senate File 619, amended Iowa Code section 225C.7A to implement the incentive fund for mental health and disability services (MHDS) regions. This legislation created a fund for the purpose of providing financial incentives for outcomes met from services provided by the MHDS regions. These amendments implement the process for a region to apply for funds, establish the criteria for eligibility for the incentive fund, set time frames for review and approval of applications and establish the reporting and financial review requirements.
Public Comment and Changes to Rule Making
Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on November 3, 2021, as ARC 6009C. This rule making was also adopted and filed emergency and published in the Iowa Administrative Bulletin as ARC 6008C on the same date. No public comments were received. One change from the Notice has been made. A reference to 2021 Iowa Acts, Senate File 619, has been removed from the implementation sentence of rule 441—25.22(225C) since the amendments in the Senate File have been codified in the 2022 Iowa Code.
Adoption of Rule Making
This rule making was adopted by the MHDS Commission on January 20, 2022.
Fiscal Impact
2021 Iowa Acts, Senate File 619, appropriated $3 million from the General Fund to the incentive fund for SFY22. The amount of incentive fund expenditures is not yet known. Any additional expenditures in year 1 or year 2 will be funded by the MHDS regions.
Jobs Impact
After analysis and review of this rule making, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 441—1.8(17A,217).
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
Effective Date
This rule making will become effective on March 16, 2022, at which time the Adopted and Filed Emergency rule making is hereby rescinded.
The following rule-making actions are adopted:
	Item 1. Adopt the following new definition of “Region incentive fund” in rule 441—25.11(331):
“Region incentive fund” means the same as defined in Iowa Code section 225C.7A.
	Item 2. Adopt the following new rule 441—25.22(225C):
441—25.22(225C) Incentive fund application, approval, and reporting.
	25.22(1) Application for regional incentive funds. A mental health and disability services region must submit an application on forms specified by the department with required supporting documentation. An application to receive regional incentive funds must meet the following requirements:
	a. 	The mental health and disability services region shall submit the application with supporting documentation electronically to the department by 4:30 p.m.	on November 15, 2021, for state fiscal year 2022 funding.
	b. 	The mental health and disability services region shall submit the application with supporting documentation electronically to the department by 4:30 p.m.	on November 15, 2022, for state fiscal year 2023 funding.
	c. 	The application shall be complete and signed by the chairperson of the mental health and disability services region governing board and regional chief executive officer.
	d. 	Application supporting documentation shall include evidence to demonstrate compliance with subrule 25.22(2).
	25.22(2) Applicant conditions. To receive funding in state fiscal years 2022 and 2023, the mental health and disability services region must meet the following conditions:
	a. 	The mental health and disability services region must be in compliance with the regional service system management plan as defined in Iowa Code section 331.393.
	b. 	Applicants for state fiscal year 2022 funding must have an ending balance in the region’s combined services fund equal to or less than 40 percent of the actual expenditures in state fiscal year 2020.
	c. 	Applicants for state fiscal year 2023 funding must have an ending balance in the region’s combined services fund equal to or less than 20 percent of the actual expenditures in state fiscal year 2021.
	d. 	The mental health and disability services region must need incentive funds for one or more of the following circumstances:
	(1)	Operating in a deficit and a reduction in available funding for core services as the result of the reduction and elimination of the levy.
	(2)	Support of non-core services to maintain individuals in a community setting or reduce the risk that individuals needing services and supports would be placed in more restrictive, higher-cost settings.
	25.22(3) Incentive fund application review and approval. The department shall make its final decisions for incentive funds on or before December 15 of the fiscal year of application.
	a. 	A written notice regarding acceptance or rejection of an application and the total amount obligated shall be furnished to the mental health and disability services region.
	b. 	The department shall distribute incentive funds payable to the mental health and disability services regions for the amounts due on or before January 1.
	25.22(4) Incentive fund reporting. Mental health and disability services regions shall submit to the department a report on forms specified by the department twice each calendar year subsequent to an award distribution. Reports shall be submitted by February 15 and August 15.
	25.22(5) Incentive fund review. The department shall analyze year-end financial records and annual independent audits of the mental health and disability services region for all years subsequent to an incentive fund award. If the department determines a mental health and disability services region’s actual need for incentive funds was less than the amount of incentive funds granted, the mental health and disability services region shall refund the difference between the amount of assistance granted and the actual need.
	a. 	A written notice outlining the department’s findings and moneys identified for repayment shall be furnished to the regional administrative entity.
	b. 	The mental health and disability services region shall submit the refund within 30 days of receiving notice from the department. Refunds shall be credited to the incentive fund.
This rule is intended to implement Iowa Code section 225C.7A.
[Filed 1/21/22, effective 3/16/22]
[Published 2/9/22]
Editor’s Note: For replacement pages for IAC, see IAC Supplement 2/9/22.