1997 SUMMARY OF LEGISLATION

APPROPRIATIONS

Appropriations LegislationRelated Legislation
SENATE FILE 82 -- Appropriations — Energy Conservation — Petroleum Overcharge Funds
SENATE FILE 240 -- Federal Block Grant Appropriations
SENATE FILE 391 -- Appropriations — Transportation
SENATE FILE 529 -- Appropriations — Administration and Regulation
SENATE FILE 533 -- Appropriations — Justice System
SENATE FILE 542 -- Supplemental and Other Appropriations and Miscellaneous Provisions
SENATE FILE 549 -- Appropriations — Education
SENATE FILE 551 -- Compensation for Public Employees
HOUSE FILE 125 -- Federal Block Grant Appropriations for FY 1996-97 — Human Services
HOUSE FILE 655 -- Appropriations — Economic Development
HOUSE FILE 708 -- Appropriations — Agriculture and Natural Resources
HOUSE FILE 710 -- Appropriations — Health and Human Rights
HOUSE FILE 715 -- Appropriations — Human Services
HOUSE FILE 730 -- Appropriations — State Government Technology and Operations
HOUSE FILE 733 -- Appropriations — Infrastructure and Capital Projects
SENATE FILE 235 -- Restoration of Soil and Water Conservation Practices — Disaster Emergency
HOUSE FILE 255 -- Mental Health and Developmental Disability Funding — Allowed Growth Factor Adjustment
HOUSE FILE 367 -- Job Training Withholding Payments
HOUSE FILE 732 -- Housing Development
HOUSE FILE 734 -- Fees and Penalties Relating to Corrections and License Revocations

APPROPRIATIONS LEGISLATION

SENATE FILE 82 - Appropriations — Energy Conservation — Petroleum Overcharge Funds (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys for fiscal year 1997-1998 from the Energy Conservation Trust, which receives deposits of settlements from oil overcharge refunds, to the Division of Community Action Agencies of the Department of Human Rights for energy conservation programs for low-income persons and to the Department of Natural Resources for the state energy program and for administration of petroleum overcharge programs.
SENATE FILE 240 - Federal Block Grant Appropriations (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys to various state agencies for the federal fiscal year beginning October 1, 1997, and ending September 30, 1998, from the following federal block grants: Substance Abuse Prevention and Treatment, Community Mental Health Services, Maternal and Child Health Services, Preventive Health and Health Services, Drug Control and System Improvement, Stop Violence Against Women, Residential Substance Abuse Treatment for State Prisoners, Community Services, Community Development, Low-Income Home Energy Assistance, and Social Services. See H.F. 125 and H.F. 715 for appropriations of the federal Temporary Assistance for Needy Families (TANF) block grants.
The Act requires that moneys be distributed in accordance with the applicable federal requirements. The Act establishes a procedure if more or less federal funding is received than predicted. In addition, the Act appropriates other federal grants, receipts and funds, and other nonstate grants, receipts and funds, available in whole and in part for the state fiscal year beginning July 1, 1997, and ending June 30, 1998.
The Act provides that if the Governor determines that federal low-income home energy assistance funds are insufficient, the Iowa Utilities Board is to issue an order prohibiting disconnection of service from November 1 through April 1 if the household income falls at or below 150 percent of the federal poverty level.
SENATE FILE 391 - Appropriations — Transportation (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations from the General Fund of the State, the Road Use Tax Fund, and the Primary Road Fund to the State Department of Transportation, establishes the number of full-time equivalent positions authorized to the department, and contains related statutory provisions.
Appropriations from the State General Fund include appropriations for railroad lines, airport engineering studies, and planning and programming.
Appropriations from the Road Use Tax Fund include appropriations for license plate production costs, salaries, operations, motor vehicles, unemployment and workers' compensation, indirect cost recoveries, technology improvements, membership in North America's Superhighway Corridor Coalition (formerly the I-35 Corridor Coalition), and a toll-free road conditions telephone information study. The Act provides that the state shall be represented on the Superhighway Coalition by the Director of Transportation and the Director of the Iowa Department of Economic Development or the directors' designees, and four individuals selected by the Speaker of the House of Representatives and the President of the Senate in consultation with the Minority Leader in each house to represent the state's interests in Interstate Highways 29, 35 and 80, and to represent the business and labor community.
Appropriations from the Primary Road Fund include appropriations for salaries, operations, planning and programming, project development, maintenance, motor vehicles, equipment, merit system, unemployment and workers' compensation, disposal of hazardous wastes at field locations, indirect costs, technology improvements, wastewater handling, roof replacement at field facilities, tuckpointing of a department building in Ames, and field garages in Des Moines, Anamosa, Correctionville, Charles City, and Sheldon.
The Act replaces the motor vehicle use tax, effective July 1, 2000, with moneys from the General Fund of the State as the funding source for the Value-Added Agricultural Products and Processes Financial Assistance Program and the Renewable Fuels and Coproducts Fund Program.
The Act provides that beginning July 1, 1999, all appropriations from the Primary Road Fund, Road Use Tax Fund, or from use tax receipts to departments for services provided to the State Department of Transportation shall be made in the Act relating to and making appropriations for the State Department of Transportation.
The Act requires the State Transportation Commission and Department of Economic Development to make presentations by February 1, 1998, to the Joint Appropriations Subcommittee on Transportation, Infrastructure and Capitals regarding the effect that complying with the requirements of 1996 Iowa Acts, Chapter 1218, section 51, pertaining to the designation and expedited construction of Access Iowa Highways, will have on other construction projects and on economic development in areas for which an Access Iowa Highways has been proposed. The Act also repeals the directive in 1996 Iowa Acts, Chapter 1218, section 51, that the department designate and expedite Access Iowa Highways projects on July 1, 2000.
THE GOVERNOR ITEM VETOED THE FOLLOWING:
SENATE FILE 529 - Appropriations — Administration and Regulation (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act relates to and appropriates moneys to various state departments, agencies, funds, and certain other interstate and national entities for the fiscal year beginning July 1, 1997, and ending June 30, 1998. The Act appropriates $82,212,000 from the General Fund of the State and $17,509,337 from other fund sources, for the following state departments and agencies: the Auditor of State, Iowa Ethics and Campaign Disclosure Board, Department of Commerce, Department of General Services, Office of Governor including the Lieutenant Governor and Terrace Hill quarters, Department of Inspections and Appeals, Department of Management, Department of Personnel, Iowa Public Employees' Retirement System, Department of Revenue and Finance, Secretary of State, and Treasurer of State.
The Act also appropriates funding for the state's membership on the Commission on Uniform State Laws, the National Conference of State Legislatures, the Council of State Governments, the American Legislative Exchange Council, and the National Governors Association. The Act also provides for law enforcement training reimbursements.
The Act transfers funding and personnel from the Department of General Services to the Office of Secretary of State regarding statewide voter registration.
THE GOVERNOR ITEM VETOED THE FOLLOWING ITEMS:
  1. Intent language to reduce law enforcement training reimbursements in future years.
  2. Intent language requiring the Council on Human Investment to notify the Joint Appropriations Subcommittee on Administration and Regulation of budgeting for results performance measures before the measures are finally adopted.
  3. A provision reducing by one-fourth the revenue available to advertise, inform and market lottery games or products.
  4. Intent language requiring state agencies, in budget preparations, to follow a standard of supervisory control not exceeding one supervisor for five or more subordinates and, in its request for office supplies, not exceeding a norm for all state agencies.
SENATE FILE 533 - Appropriations — Justice System (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys for the fiscal year beginning July 1, 1997, and ending June 30, 1998, to the Department of Justice, Office of Consumer Advocate, Board of Parole, Department of Corrections, including correctional facilities and the judicial district departments of correctional services, Judicial Department, State Public Defender, Iowa Law Enforcement Academy, Department of Public Defense, and the Department of Public Safety, and contains related statutory provisions. Under the Act, appropriations to the justice system total $381 million and reflect an increase in appropriations from the General Fund of the State of approximately $42.2 million from the FY 1997 appropriation.
DEPARTMENT OF JUSTICE. The Act increases funding for the Department of Justice by $541,000 compared to the estimated FY 1997 appropriations. These appropriations include amounts for the Office of the Attorney General, the Prosecuting Attorney Training Program, amounts for victim assistance grants to care providers providing services to crime victims of domestic abuse or rape and sexual assault, the Governor's Alliance on Substance Abuse (GASA), and the GASA Prosecuting Attorney Program. The Act also provides an appropriation to the Office of the Attorney General to provide for legal services for persons in poverty grants. The appropriation for legal services for persons in poverty represents a decrease of $450,000 from the FY 1997 appropriation.
DEPARTMENT OF CORRECTIONS. The Act increases the State General Fund appropriation to the Department of Corrections by $24.8 million, representing a 14.8 percent increase from the estimated FY 1997 appropriation. The Act authorizes an additional 35 correctional officers and provides additional money for the two newest prisons at Newton and Fort Dodge. The Act delays the full implementation of the inmate hard labor requirements by one year. The Act limits inmate access to cable television to channels representing networks or stations for which a fee is normally not required. The cable television portion of the Act takes effect May 9, 1997. The Act authorizes the construction of a 200-bed living unit at the Iowa Correctional Institute for Women at Mitchellville with federal grant moneys. The Act transfers $1.6 million from the FY 1997 ending balance of the Prison Infrastructure Fund for the remodeling and renovation of a residential facility in the Fifth Community-based Corrections District.
The Act directs the department to consider adoption of guidelines for the transportation of prisoners, to connect its facilities to the Iowa Communications Network, and to continue to operate the correctional farms at the same or greater level as existed on January 1, 1997. The Act also requires all state agencies to submit a report to the General Assembly concerning the use of Prison Industries for agency purchases. The Act also provides that the director of each judicial district department of correctional services, and not the Department of Corrections official responsible for community-based corrections, shall establish a plan to comply with the provisions of court orders involved with the surrender of inmate earnings. The Act also provides that the unexpended FY 1997 funding for the Criminal Justice Program at the University of Northern Iowa can be used in FY 1998.
INDIGENT DEFENSE. The Act appropriates an additional $4.6 million for indigent defense and the State Public Defender's Office compared to the FY 1997 appropriation. The Act authorizes the hiring of additional public defenders and support staff.
JUDICIAL DEPARTMENT. The Act provides for an additional $2.9 million in funding compared to the estimated FY 1997 appropriation. The Act also provides for an additional 35 clerk of court positions, one district court judge, three juvenile court officers, additional legal assistants for the Court of Appeals, and expansion of the Court-Appointed Special Advocate (CASA) Program. The estimate used to establish the Judicial Department's target for purposes of the Enhanced Court Collections Fund shall be reduced, as provided in the Act, by moneys to be collected and deposited in the Road Use Tax Fund from fines attributable to commercial vehicle violations.
LAW ENFORCEMENT ACADEMY. The Act appropriates an additional $48,000 for the Law Enforcement Academy, representing a 4.2 percent increase compared to the FY 1997 appropriation.
PUBLIC SAFETY. The Act appropriates an additional $9.1 million to the Department of Public Safety compared to the estimated FY 1997 appropriation. The Act also provides $548,792 for volunteer fire fighter training and equipment needs and allows money appropriated but not expended for fire fighter training in FY 1997 to be used in FY 1998 for both training and equipment needs.
MISCELLANEOUS. The Act requests the Legislative Council to establish interim committees to study the legal representation of indigents and to study and review current criminal penalties and sentencing practices.
THE GOVERNOR ITEM VETOED THE FOLLOWING:
SENATE FILE 542 - Supplemental and Other Appropriations and Miscellaneous Provisions (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act makes supplemental appropriations for FY 1996-1997 and appropriations for other fiscal years. In addition, the Act establishes the Domestic Abuse Services Income Tax Checkoff.
Division I - Supplemental Appropriations
This Division makes supplemental appropriations for FY 1996-1997 to the agencies specified as follows:
Division II - Lottery Appropriations
Division II appropriates or transfers excess lottery revenues from FY 1994-1995 to the agencies specified for use in FY 1996-1997 as follows:
Division III - Income Tax Checkoff
Division III reestablishes the Domestic Abuse Income Tax Checkoff. The checkoff was automatically repealed due to a statutory provision requiring the repeal of the income tax checkoff generating the smallest amount of revenue over a three-year period. In addition, the Division includes an appropriation of $75,000 to replace moneys for grants previously funded by the repealed checkoff. The reestablished checkoff is retroactively applicable to January 1, 1997.
Division IV - Value-Added Agricultural Production Assistance
This Division includes a provision stating legislative support for creation of an Ag-Initiative 2000 subaccount in the Community Economic Betterment Program Account (CEBA) as provided in a specific Senate-passed amendment to H.F. 731 (legislatively referred to as the "standings" bill; the bill and the amendment were not enacted). In legislative debate, this project was referred to as "Mr. Beef." The Division directs the Department of Economic Development to use existing financial assistance programs to support innovative ownership and management entities involving value-added agricultural processes. The Legislative Council is directed to create a bipartisan four-member task force to assist the department and the Governor in any negotiations. Any proposals developed are to be submitted to the General Assembly.
Division V - At-Risk Education Programs
This Division increases the standing appropriation for at-risk education programs from $14.52 million to $15.17 million for allocation by the Child Development Coordinating Council.
Miscellaneous Provisions
The Act includes the following miscellaneous provisions:
This Act takes effect May 23, 1997.
SENATE FILE 549 - Appropriations — Education (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys from the General Fund of the State to the College Student Aid Commission, the Department of Cultural Affairs, the Department of Education, and the State Board of Regents and its institutions. This year's Act appropriates a total of $823.4 million and provides 17,507.68 full-time equivalent positions (FTEs), which is approximately $1.7 million and 7.6 FTEs below the Governor's recommendations. This year's education appropriations Act exceeds the appropriations made in last year's education appropriations Act (1996 Iowa Acts, Chapter 1215) by approximately $15 million and 27 FTEs.
COLLEGE STUDENT AID COMMISSION. The Act appropriates moneys to the College Student Aid Commission for general administrative purposes, forgivable loans to Iowa students attending the University of Osteopathic Medicine and Health Sciences, an initiative directing primary care physicians to areas of the state experiencing physician shortages, student aid programs, the National Guard Tuition Aid Program, and the Stafford Loan Program, and increases moneys for Iowa tuition grants. Compared to FY 1997, the commission will receive an increase of $3.65 million.
Last year's education appropriations Act established the National Guard Tuition Aid Program. However, the Governor vetoed a provision from that Act which would have funded the program, making FY 1998 the first year in which the program has been funded. The Act provides that grant priority shall be given to eligible national guard members who have not yet achieved sufficient college credit to be classified a junior or senior.
Increasing funding for Iowa Vocational-Technical Tuition Grants was a legislative priority under the Act. Funds remaining in the Scholarship and Tuition Grant Reserve Fund from fiscal years 1995 and 1996 are transferred to the commission to be used for Iowa Vocational-Technical Tuition Grants. Another provision, which would have funneled excess federal dollars toward vocational-technical tuition grants, was vetoed by the Governor
The Act also increases the maximum amount of a tuition grant to a qualified full-time student from $3,150 to $3,400.
DEPARTMENT OF CULTURAL AFFAIRS. The Act funds the Arts, Historical and Administration divisions of the Department of Cultural Affairs, historic sites, and community cultural grants. The department's total appropriation is increased by $277,960 over FY 1997. The Act also amends Code Section 303.3 to permit the department to carryover for one additional year cultural grant program moneys.
The Act captures $50,000 from funds appropriated, but never used, for historic sites last year and distributes the moneys to the Iowa State Arts Council for purposes of awarding operational support grants. This provision takes effect May 27, 1997.
The General Assembly established an Iowa heritage special license plate in FY 1996 and allocated 25 percent of the revenues earned from the sale of the plates to the Department of Education to support teacher training in Iowa history, purchase Iowa history classroom materials, support student participation in Iowa history and citizenship-building activities, and create a grant program for school districts to apply for funding to support field trips to museums, historic sites and heritage attractions. The Act transfers this allocation and these duties from the Department of Education to the Department of Cultural Affairs.
DEPARTMENT OF EDUCATION. The Act appropriates moneys for purposes of the Department of Education's general administration, vocational education administration, the Board of Educational Examiners, the Division of Vocational Rehabilitation Services, independent living, the State Library, the regional library system, the Public Broadcasting Division, the Iowa Mathematics and Science Coalition, vocational education to secondary schools, school food service, textbooks of nonpublic school pupils, the Vocational Agriculture Youth Organization and other youth activities, Family Resource Centers, the Reading Recovery Program, Child Development Coordinating Council, rehabilitating computers for schools and libraries, Local Arts Comprehensive Educational Strategies (LACES) Program, and community colleges. The department's total appropriation is increased by approximately $4.1 million over FY 1997, but its FTEs are reduced by 8.62. In Code provisions and session law, from additional funds transferred from Phase I to Phase III in the Educational Excellence Program, the Act distributes funds for a kindergarten to grade 12 management information system, Iowa Public Television overnight transmitter feeds, contracting with the Iowa Alliance for Arts Education to execute the LACES Program, and for allocation to area education agencies (AEAs) to assist school districts in developing reading recovery programs.
The department is directed, under the Act, to allocate reading recovery moneys to AEAs in a proportion based upon the number of children served by an AEA who are eligible for free or reduced price meals.
The department is directed to conduct a study of Phase I of the Educational Excellence Program and to determine options for decreasing the need for state funding of Phase I and for shifting funding to Phase II. The department is to submit its findings and recommendations to the General Assembly by December 31, 1997.
The Director of Education is instructed to convene a study committee during the 1997 legislative interim consisting of the co-chairpersons of the Joint Appropriations Subcommittee on Education; two members of the governing board of the First in the Nation in Education (FINE) Foundation, who shall be appointed by the chairperson of the governing board; and the Director of Education. The study committee is to study how to maintain the autonomy of the FINE Foundation, develop investment strategies, explore ways to enhance the research and dissemination functions of the foundation, and determine methods for reporting foundation activities that impact Iowa education. The study committee is to report its findings and recommendations to the General Assembly by October 1, 1997.
The Division of Vocational Rehabilitation Services is directed to seek funds other than federal funds, including from local provider entities, community colleges, AEAs, and local education agencies, for purposes of matching federal vocational rehabilitation funds. Funds collected may exceed the amount needed to match available federal vocational rehabilitation funds in an effort to qualify for additional federal funds when such funds become available. The division is also instructed to accept client assessments, or assessments of potential clients, performed by other agencies in order to reduce duplication of effort.
Language provided under the appropriation for independent living directs the department to make programs that emphasize employment and assist persons with severe physical or mental disabilities to find and maintain employment, enabling those persons to function more independently, the highest priority use for the moneys appropriated.
The Act directs the State Library to begin to implement its 1996 Iowa Joint Use Library Guide July 1, 1997. The State Library is also instructed to cap reimbursement of the institutions of higher learning under the State Board of Regents for participation in the Access Plus Program during FY 1998 at the total amount of reimbursement paid for their participation during FY 1997.
Moneys appropriated to the department for purposes of the Career Pathways Program in FY 1996 are permitted under the Act to be carried over to FY 1998 for purposes of the program. Of the funds appropriated to the department for FY 1997 for purposes of the State Library, $120,000 shall be available for expenditure in FY 1998 for maintenance of the State of Iowa Libraries Online (Silo) Program. These provisions take effect May 27, 1997.
The distribution of $1.25 million off the top of the Educational Excellence Program appropriation to the New Iowa Schools Development Corporation (NISDC) is renewed for FY 1998, but the Act also stipulates that, effective July 1, 1998, a school district cannot receive funds from NISDC for more than three consecutive years. The corporation is directed to place a high priority on increasing the number of school districts it serves, study the methods by which it can increase the number of school districts served, analyze the services provided to school districts, and determine the average amount of time necessary to adequately serve a school district. The corporation shall submit its findings and recommendations to the General Assembly by December 31, 1997.
The Act also appropriates $50,000 off the top of the Educational Excellence Program for the Geography Alliance, and another $50,000 for the National Assessment of Education Progress (NAEP), a national program the department is participating in to determine the academic achievement of Iowa students in math, reading, science, United States history, or geography.
In addition to the funds appropriated in Code Section 279.51, subsection 1, the Act appropriates from the General Fund of the State to the department for FY 1997-1998 the amount of $190,000 to be allocated to the Child Development Coordinating Council for programs for at-risk children.
STATE BOARD OF REGENTS. The Act appropriates moneys to the State Board of Regents for board operations, tuition replacement, the Southwest Iowa Graduate Studies Center, the Tristate Graduate Center, the Quad-Cities Graduate Studies Center, and for the State University of Iowa, Iowa State University of Science and Technology, the University of Northern Iowa, the State School for the Deaf, the Iowa Braille and Sight Saving School, and the tuition and transportation costs for students residing in the Iowa Braille and Sight Saving School and the School for the Deaf. The total appropriation for the State Board of Regents and its institutions is increased by nearly $7 million over FY 1997, and approximately 33 FTEs are added.
STATE UNIVERSITY OF IOWA. The University of Iowa Hospitals and Clinics (UIHC), the Iowa Department of Corrections, and the Association of Iowa Hospitals and Health Systems are directed under the Act to jointly develop and issue recommendations relating to localizing indigent health care services, and the feasibility of establishing a corrections infirmary, in a report to be submitted to the General Assembly by January 1, 1998. The UIHC is required to submit quarterly a report regarding the portion of the appropriation made for purposes of treating indigent patients that is expended on medical education.
The Act also, effective May 27, 1997, permits moneys appropriated last year for the national advanced driving simulator to carry over for the same purpose for FY 1998.
In addition, effective May 27, 1997, the Act allocates the interest remaining after the transfer of moneys to the FINE Foundation and the International Center Endowment Fund at the end of FY 1996 to the university for the establishment of a Reading Recovery Program in FY 1998
IOWA BRAILLE AND SIGHT SAVING SCHOOL/STATE SCHOOL FOR THE DEAF. The Act divides $70,000 in Phase III Educational Excellence Program moneys equally between the State School for the Deaf and the Iowa Braille and Sight Saving School.
STATUTORY PROVISIONS. The Act authorizes the Department of Personnel to direct the personnel matters of the Department of Education's professional staff, as the Department of Personnel does for nearly every other executive branch agency.
The Act renames the Career Opportunity Program the Academic Incentives for Minorities Program. The program was established to encourage collaborative efforts to enhance the educational opportunities and provide for job creation and career advancement for Iowa's minorities.
The Act permits part-time students enrolled in community colleges who meet the financial aid criteria to be eligible for vocational-technical tuition grants.
Finally, the State Board of Regents is directed to develop criteria by which a state university may discontinue oral communication competency evaluations of a specific instructor.
THE GOVERNOR ITEM VETOED THE FOLLOWING:
  1. A provision directing the College Student Aid Commission to use federal moneys, received by the commission in FY 1998 and FY 1999 for state student incentive grants that exceed amounts received for those programs in FY 1997 and FY 1998, for vocational-technical tuition grants.
  2. A provision rewriting Code Section 257B.1A, Interest for Iowa School Fund - Transfer of Interest, as recommended in a meeting between the chairpersons and ranking members of the Joint Appropriations Subcommittee on Education, the Legislative Fiscal Bureau, the Legislative Service Bureau, and representatives from the International Center for Gifted and Talented Education and the First in the Nation in Education (FINE) Foundation, held during the 1996 legislative interim.
  3. A provision requiring the boards of directors of each community college and the State Board of Regents to cause each statement of account for payment of tuition and fees issued by each state institution of higher learning to include a statement disclosing the approximate percentage of the issuing institution's average cost of education that is state-paid, and the approximate number of dollars paid by the state for the average resident student's tuition at each state institution.
SENATE FILE 551 - Compensation for Public Employees (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act relates to and appropriates moneys for FY 1997-1998, to fund salary adjustments for state-appointed nonelected officers, justices, judges, magistrates, employees subject to collective bargaining agreements, and noncontract employees. The salary rates and ranges of state nonelected officers, justices, and judges are increased by approximately 3 percent. Other state employees, except the officers and employees of the State Board of Regents, will receive a 3 percent increase with the pay period beginning June 27, 1997. These state employees may also receive step increases.
The State Board of Regents officers and employees not under collective bargaining receive pay increases similar to the regents contract employees.
The Act also directs the use of up to $4 million, for the insurance benefit year ending in 1998, of excess insurance reserve funds to reduce state employee health insurance premium costs.
The Act provides annual cost-of-living pay adjustments to legislators for the calendar years 1999 and 2000 and elected state officers for the fiscal years beginning July 1, 1997, and July 1, 1998. The cost-of-living pay adjustment equals the average of the cost-of-living adjustment negotiated for collective bargaining units represented by the State Police Officers Council Labor Union; the American Federation of State, County, and Municipal Employees; and the Iowa United Professionals. The cost-of-living adjustment for the Governor, Lieutenant Governor, Attorney General, Auditor of State, Secretary of Agriculture, Secretary of State, and Treasurer of State begins in July 1997. The legislators' cost-of-living adjustment commences January 1999 and reflects for the 1999 and 2000 calendar years the cost-of-living adjustment paid to the members of the collective bargaining units beginning July 1, 1997, and July 1, 1998.
The Act also provides a meal allowance to noncontract, supervisory, sworn state peace officers, except Capitol Police supervisors.
HOUSE FILE 125 - Federal Block Grant Appropriations for FY 1996-97 — Human Services (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act appropriates the federal Temporary Assistance to Needy Families (TANF) Block Grant available to the state for state FY 1996-1997 under federal welfare reform legislation. This is the first year the block grant is available to states. The federal welfare reform legislation enacted in August 1996 converts the federal-state entitlement program, Aid to Families with Dependent Children (AFDC), to a state-operated program in which the federal funding is provided as a block grant rather than a match of state funding.
The total of the appropriations from the block grant is approximately $82.1 million. Of this amount, approximately $71 million is designated for the Family Investment Program or FIP (Iowa's version of AFDC) and approximately $6.1 million for the related Job Opportunities and Basic Skills (JOBS) Program. Other amounts are appropriated for the Department of Human Services (DHS) field operations, general and local administration, and computer hardware, software and training. The appropriated moneys do not revert at the close of the state fiscal year and direction for the expenditure of moneys that do not revert is provided in H.F. 715.
The Act alters various appropriations previously made from the General Fund of the State for FY 1996-1997. The General Fund appropriation for FIP is reduced by nearly $18 million. Appropriations are increased for the following purposes: protective child day care assistance, child welfare services, field operations, and general administration.
The Act authorizes DHS to make transfers among the appropriations described in the Act, subject to approval by the Governor and the Department of Management and notification of the Legislative Fiscal Committee.
The Act takes effect March 13, 1997.
HOUSE FILE 655 - Appropriations — Economic Development (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations and transfers from the General Fund of the State and other funds to the Department of Economic Development, Iowa State University, the University of Iowa, the University of Northern Iowa, the Department of Workforce Development, and the Public Employment Relations Board.
The Act appropriates $4,127,000 to the Department of Economic Development for purposes of tourism advertising, a net increase of $1,290,000 from the appropriation for FY 1996-1997. The Act prohibits the department's use of moneys appropriated for tourism advertising unless the department develops public-private partnerships with Iowa businesses in the tourism industry.
The Act also permits the department to allocate $600,000 of the $6,796,466 appropriation for the Strategic Investment Fund to the Entrepreneurial Ventures Assistance Program created in H.F. 368 (see Economic Development).
The Act creates the Shelter Assistance Fund as a revolving fund in the State Treasury under the control of the Department of Economic Development for purposes of the construction, rehabilitation, expansion, or costs of operations of group home shelters for the homeless and for domestic violence shelters. Of the moneys in the fund, not less than $546,000 shall be spent annually on homeless shelter projects. The Act also transfers 5 percent of the state's share of the real estate transfer tax from the Iowa Finance Authority to the Shelter Assistance Fund. In providing shelter assistance moneys, the department may consider exploring the potential to allocate moneys to homeless shelter programs based in part on their ability to move their clients toward self-sufficiency. The Act repeals the requirement that the Iowa Finance Authority provide homeless shelter assistance grants. The Iowa Finance Authority may allocate moneys to the Shelter Assistance Fund.
The Act authorizes the Department of Economic Development and community colleges to fund high technology apprenticeship programs that may include both new and statewide apprenticeship programs.
The Act changes the allowable use of the Department of Economic Development's FY 1996-1997 and FY 1997-1998 Physical Infrastructure Assistance Program appropriations. This provision takes effect April 22, 1997.
The Act provides that, effective April 22, 1997, all unobligated funds remaining in the Wallace Technology Transfer Foundation Fund on June 30, 1997, shall revert to the Strategic Investment Fund. The Act provides that all physical assets of the Wallace Technology Transfer Foundation shall be transferred to the possession of the Department of Economic Development.
The Act requires the Department of Economic Development and the Department of Workforce Development to provide in budget proposals for FY 1999-2000 the number of full-time equivalent and contract employees included in the proposals.
The Legislative Council, under the Act, is requested to establish an interim committee to study housing assistance organizations. In addition, all housing assistance organizations in Iowa are requested to submit a report on such information as is needed for the interim study.
The Act requires the Department of Economic Development and the Department of Workforce Development to submit budget proposals for FY 1998-1999 in both the traditional format and the budgeting for results format.
THE GOVERNOR ITEM VETOED THE FOLLOWING:
HOUSE FILE 708 - Appropriations — Agriculture and Natural Resources (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act relates to agriculture and natural resources by making appropriations to support related entities, including the Department of Agriculture and Land Stewardship and the Department of Natural Resources.
The Act makes a number of appropriations from the General Fund of the State to the Department of Agriculture and Land Stewardship and the Department of Natural Resources for the administration of those departments and for specific programs, including the Farmers' Market Coupon Program, the Pseudorabies Eradication Program, the inspection of Iowa-foaled horses and Iowa-whelped dogs, the administration of a program to promote the horse and dog breeding industries in the state, the regulation of animal feeding operations, the administration of a program to provide safe drinking water, and a project to support the Lewis and Clark Rural Water System.
The Act makes an appropriation from the State Fish and Game Protection Fund to support the Division of Fish and Wildlife within the Department of Natural Resources. Deposits from all-terrain vehicle and snowmobile fees are transferred for snowmobile programs, and deposits from registration fees paid on vessels are transferred to a special conservation fund. The Act appropriates moneys to the Resources Enhancement and Protection (REAP) Fund in lieu of a standing appropriation made to that fund.
The Act makes an appropriation from the agricultural management account of the Groundwater Protection Fund to support Iowa State University in conducting a study of sites where earthen waste storage structures are located. The Act provides for the transfer of moneys from the Organic Nutrient Management Fund to Iowa State University to support odor control applications, to the Iowa State University Cooperative Extension Service in Agriculture and Home Economics to support a program to assist counties in testing wells and water sources, and to the Soil Conservation Division of the Department of Agriculture and Land Stewardship to support technical training and administrative expenses of commissioners of soil and water conservation districts.
The Act transfers moneys required to be deposited from the REAP Fund into the Water Protection Fund to the Loess Hills Development and Conservation Fund to support the conservation of Loess Hills. An appropriation is made from the Unassigned Revenue Fund administered by the Iowa Comprehensive Underground Storage Tank Fund Board to the Department of Natural Resources for administration and expenses of the Underground Storage Tank section. The Act allows the Department of Natural Resources to transfer moneys from the Hazardous Substance Remedial Fund to support air quality regulation.
The Act provides the following direction:
THE GOVERNOR ITEM VETOED THE FOLLOWING:
HOUSE FILE 710 - Appropriations — Health and Human Rights (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act provides for appropriations to the Department for the Blind, the Iowa State Civil Rights Commission, the Department of Elder Affairs, the Governor's Alliance on Substance Abuse, the Iowa Department of Public Health, the Department of Human Rights, and the Commission of Veterans Affairs.
CIVIL RIGHTS COMMISSION. The Act appropriates funds to the Iowa State Civil Rights Commission, and authorizes the commission to exceed its designated staffing level to hire additional staff to process employment and housing complaints if the anticipated amount of funding from the federal Equal Employment Opportunity Commission and the federal Department of Housing and Urban Development exceeds $625,000 for FY 1997-1998.
DEPARTMENT OF ELDER AFFAIRS. The Act appropriates funds to the Department of Elder Affairs. Regarding appropriations for aging programs and services, the Act specifies authorized programs and directs that program funds not be used by the department for administrative purposes.
The Act provides that the Iowa chapters of the Alzheimer's Association and the Case Management Program for Frail Elders shall collaborate and cooperate fully to assist families in maintaining family members with Alzheimer's disease in the community for the longest period of time possible.
GOVERNOR'S ALLIANCE ON SUBSTANCE ABUSE. The Act appropriates funds to the Governor's Alliance on Substance Abuse and the Iowa Substance Abuse Clearinghouse in Cedar Rapids for FY 1997-1998.
DEPARTMENT OF PUBLIC HEALTH. The Act appropriates funds to the Iowa Department of Public Health. Funds appropriated to the Planning and Administration Division include specific appropriations for the Chronic Renal Disease Program to be used for reimbursement of insurance premiums, travel, and prescription and nonprescription drugs, for the regulatory oversight of accountable health plans, and for the purchase, verification, updating, and storage of health data information. The Act limits the budgets for professional licensure boards funded through the department to 85 percent of the average annual fees collected for the previous two fiscal years. The budget may be exceeded for unanticipated litigation costs approved by the Director of the Department of Management in an amount not in excess of 5 percent of the average annual fees collected for the previous two fiscal years. Funds are additionally appropriated for emergency medical services staff and training.
Funds appropriated to the Health Protection Division include specific appropriations for chlamydia testing and lead abatement testing.
The Division of Substance Abuse and Health Promotion is directed to continue coordination with substance abuse treatment and prevention providers regardless of funding source, and together with the Commission on Substance Abuse shall continue coordination of delivery of substance abuse services to uninsured and court-ordered substance abuse patients in all counties of the state. An allocation of $15,000 is provided to support the surveillance and reporting of disabilities suffered by persons engaged in agriculture, with the department cooperating with the Department of Agriculture and Land Stewardship, Iowa State University of Science and Technology, and the College of Medicine at the University of Iowa. An appropriation of $193,500 is made for aftercare services for persons completing substance abuse treatment. A minimum of $950,000 is to be used by the department to continue an integrated substance abuse managed care system.
Programs receiving allocations from funds appropriated to the Family and Community Health Division include the Birth Defects and Genetics Counseling Program, mobile and regional child health specialty clinics, muscular dystrophy and related genetic disease programs, the Statewide Perinatal Care Program, maternal and child health services, and rural health care technical assistance, recruitment and retention. Funds are appropriated to reimburse counties for expenses resulting from sudden infant death syndrome autopsies, for grants to local boards of health for the Public Health Nursing Program, for grants to county boards of supervisors for the Home Care Aide Program, for the development and maintenance of well-elderly clinics, for the Physician Care for Children Program, for primary and preventive health care for children, for the Iowa Healthy Family Program, and for primary care provider recruitment and retention endeavors. Regarding the Iowa Healthy Family Program, the department shall develop a plan during FY 1997-1998 to expand the Healthy Opportunities for Parents to Experience Success (HOPES) Program to all counties throughout the state.
Appropriations are also made to the state Boards of Dental, Medical, Nursing, and Pharmacy Examiners. Consolidation of state funding sources for public health nursing, home care aid, and the Senior Health Program into a single contract for each county shall be implemented statewide beginning July 1, 1997. The department shall submit a report to the General Assembly on or before January 2, 1998, including a progress evaluation of the first year of the statewide contract for each county beginning July 1, 1997.
The Act provides that the Iowa Department of Public Health shall conduct a study of utilizing scope of practice review committees to evaluate and make recommendations to the General Assembly relating to requests from practitioners seeking to become newly licensed health professionals or to establish their own licensure boards, requests from health professionals seeking to expand or narrow their profession's scope of practice, and unresolved administrative rulemaking disputes between licensure boards. A pilot project utilizing scope of practice review committees shall be financed utilizing funds appropriated to the professional licensure boards, and shall continue for a three-year period beginning July 1, 1997, and ending June 30, 2000. The department shall submit a progress report to the Governor and the General Assembly by January 1, 1998, and shall conduct a complete evaluation of the project by January 1, 2000.
DEPARTMENT OF HUMAN RIGHTS. The Act appropriates funds to the divisions of the Department of Human Rights, contingent upon the repeal or amendment of a sunset provision in Code Section 216A.5 that would repeal the department. The sunset provision was repealed in H.F. 578 (see State Government), effective April 18, 1997.
With respect to the Community Grant Fund established in Code Section 232.190 for juvenile crime prevention programs, the Act provides that an application from a community to receive a third consecutive year of program funding may receive priority consideration in the awarding of grants. Applications from communities that have not previously received funding, and from communities applying for a fourth year, may also be considered. Grant award criteria for third and fourth year applications shall include an assessment of past and future plans to increase alternative support for community juvenile crime prevention initiatives, a demonstration of past community collaboration, and a demonstration of having made significant progress toward past project objectives.
COMMISSION OF VETERANS AFFAIRS. The Act appropriates funds to the Commission of Veterans Affairs. If there is an increase in Medical Assistance (Medicaid) Program reimbursements exceeding the amount budgeted for that purpose in FY 1997-1998, the Act authorizes the Iowa Veterans Home to expend the excess amounts to exceed the number of full-time equivalent positions authorized for meeting certification requirements or to provide additional beds, subject to approval by the Department of Management.
Effective May 2, 1997, the Act extends the Vital Records Modernization Project until June 30, 1998, and permits until that date the continued collection of increased fees for birth, marriage, death, and other vital records collected pursuant to that project. The Act allocates $3,366 of the funds appropriated for administration to the Division of Community Action Agencies of the Department of Human Rights for the expenses of the Commission on Community Action Agencies.
The Act strikes the requirement of providing annual reports to the Governor and the General Assembly from a number of Code sections; strikes a provision in Code Section 99E.10, which had permitted up to $400,000 remaining in the Gambling Treatment Fund at the close of the fiscal year to be used for substance abuse program grants; and strikes Code Section 135L.4, which had created the Prospective Minor Parents Program Advisory Committee to assist with parental notification for abortion implementation. The Act additionally provides that a commemorative copy of a birth or marriage certificate may be issued for a $35 fee. Fees collected shall be deposited in the Emergency Medical Services Fund established in Code Section 135.25 to support the development and enhancement of emergency medical services systems and emergency medical services for children.
HOUSE FILE 715 - Appropriations — Human Services (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations to the Department of Human Services (DHS) and to the Prevention of Disabilities Policy Council for FY 1997-1998, and includes provisions relating to human services and health.
FAMILY INVESTMENT PROGRAM. The Act includes appropriations for the Family Investment Program or FIP (previously known as Aid to Families With Dependent Children or AFDC). With the passage of federal welfare reform, the federal funding for this program is provided in the form of an annual block grant to the state. The new federal block grant is called Temporary Assistance for Needy Families or TANF. Consequently, the Act includes FIP and FIP-related program appropriations from the General Fund and from the fund created for receipt of federal funds. See S.F. 516 (see Human Services) for statutory revisions to the FIP Program implementing welfare reform and H.F. 125 for FY 1996-1997 appropriations of TANF funding.
These appropriations are directed to the Job Opportunities and Basic Skills (JOBS) Program, which provides work and training activities for FIP participants, administrative costs, supplementation of the federal Social Services Block Grant, child day care, emergency assistance to prevent homelessness, food stamp employment and training program, Family Development and Self-Sufficiency Grant Program, and increasing participation in vocational and postsecondary training. In addition, the Act provides funding for initiatives to divert families from enrolling in the FIP Program and to assist current participants in overcoming barriers to obtaining employment. Other allocations are directed to family support programs, pregnancy prevention grants, and nearly $3 million for technology needs. A prior year appropriation for computerization of the eligibility determination process for assistance programs known as "X-PERT" is retained for use in FY 1997-1998.
There is considerable shifting between state and federal appropriation sources in the Act and authorization is provided for unspent moneys to be retained for future fiscal years. The department is authorized to transfer among appropriations if necessary to meet federal requirements.
For many years FIP participants have been credited with the first $50 of child support ordered for the participant and collected by the state. The Act discontinues this practice for new applicants approved on or after May 19, 1997, or for existing participants who leave and reenter the program on or after that date. The Act authorizes DHS to utilize emergency rulemaking procedures for changes in the FIP, Food Stamp, and Medical Assistance (Medicaid) programs as necessary to comply with federal requirements.
EMERGENCY ASSISTANCE. This appropriation is a slight reduction in the level of assistance to recipients to prevent homelessness, compared with the estimated FY 1996-1997 appropriation. The Act establishes a maximum grant level of $500 per family in any 12-month period. Additionally, the appropriation continues the allocation of $10,000 to the Community Voice Mail Program.
MEDICAL ASSISTANCE (Medicaid). The appropriation for Medical Assistance (MA) is an increase over the FY 1996-1997 appropriation. The Act also provides the following:
MEDICAL CONTRACTS. This is an increase in the appropriation compared with the FY 1996-1997 appropriation. The Act also provides all of the following:
STATE SUPPLEMENTARY ASSISTANCE (SSA). This appropriation maintains the current level of funding in the SSA Program. The Act requires DHS to increase the personal needs allowance for residents of residential care facilities at the same rate and at the same time that federal Social Security income and benefits are increased. The Act also authorizes DHS to use up to $75,000 of the appropriated amount for a rent subsidy program for adults who, among other conditions, are discharged from an intermediate care facility for persons with mental retardation, in order to allow these persons to move into a community living arrangement.
CHILD DAY CARE ASSISTANCE. This appropriation is an increase compared with the FY 1996-1997 appropriation. The appropriation provides funding for protective child day care assistance, state child care assistance, child day care resources and referral services, and transitional child care assistance. The Act increases eligibility for state child care assistance to 125 percent of the federal poverty level, to be expended based upon a waiting list currently implemented for persons above 100 percent of the federal poverty level. The Act also specifies that migrant seasonal farm workers are eligible for state child care assistance if the family income is less than or equal to 110 percent of the federal poverty level. The Act provides that DHS is to assist the Hispanic Educational Resource Center in Des Moines to identify or provide replacement funding if the elimination of the previous year's allocation to the center results in a negative impact to the center in providing child day care services. DHS is directed to consult with providers in evaluating the practice of requiring recipients of state child care assistance to make co-payments to providers and report the results of the evaluation to the General Assembly on or before December 15, 1997.
CHILD SUPPORT RECOVERY. The Act provides a slight increase in the appropriation compared with FY 1996-1997. The Act requires the Child Support Recovery Unit (CSRU) to continue to work with the Judicial Department to determine the feasibility of a pilot project using a court-appointed referee for determination of child support awards, if initiated by the Judicial Department. The Act provides that DHS may expend not more than $50,000 to continue the child support public awareness campaign located in the Office of the Attorney General, requires DHS to continue the community service pilot project for absent parents who are ordered to perform community service for failure to pay child support, continues authorization for DHS to contract with private collection agencies to collect support payments in difficult collection cases, provides that surcharges paid by obligors are to be used to pay the costs of a contract with a private collection agency, and requires DHS to evaluate consumer satisfaction with the CSRU with a report of findings to be submitted to the Joint Appropriations Subcommittee on Human Services on or before December 15, 1997.
JUVENILE INSTITUTIONS. The Act provides for a slight increase in the funding for the juvenile institution at Toledo and a slight decrease in the appropriation for the juvenile institution at Eldora compared with the appropriation in the previous fiscal year. The Act continues the limitation on the population levels to the population guidelines established in 1990 and provides for use of funds appropriated for grants for adolescent pregnancy prevention services.
CHILD AND FAMILY SERVICES. The appropriation for the Division of Child and Family Services of DHS is an increase in the appropriation compared with the previous fiscal year. The Act provides for continuation of the funding cap for group foster care at an increased level over the previous fiscal year, limits the amount that may be expended under the appropriation for psychiatric medical institutions for children (PMICs), and amends the current managed mental health care contract to include PMICs. The Act allocates funds for 50 highly structured juvenile program beds, which may be used for group foster care if the beds are not utilized as highly structured juvenile program beds, provides that it is the intent of the General Assembly that the statewide expenditure target established for each region's group foster care budget is the region's annual budget, and directs DHS to establish a goal that not more than 15 percent of children placed in federally funded foster care be placed for more than 24 months. The Act also provides for continuation of decategorization of child welfare funding; notwithstands the Code provision requiring a state aid contribution to county or multicounty juvenile detention home costs (committee debate indicated intent to replace this funding with fines retained by the counties in fines, fees, and surcharges, see H.F. 734 under Corrections, Criminal Law & Procedure); provides for establishment of the number of children in foster care based upon the number of children eligible for federal Supplemental Security Income (SSI); provides for expenditure of up to $200,000 to enter into a performance-based contract to secure SSI benefits for children placed in foster care; provides for use of funds under this appropriation for emergency family assistance in certain circumstances; limits funding for shelter care services; authorizes funding to develop a computer system for adoption and foster care information; continues funding for improving DHS staffing of foster care and adoption services; continues authorization for DHS to adopt rules to implement outcome-based child welfare services pilot projects; authorizes development of a performance-based monitoring program to evaluate and improve outcomes for children and families; provides that not more than $900,000 of the appropriation is allocated for clinical assessment services necessary to continue funding of children's rehabilitative services under MA and directs DHS to submit a report to the General Assembly on or before January 1, 1998, regarding the development of a new model for determining rehabilitative needs in place of clinical assessment and consultation teams (CACT) and to reduce paperwork and information requirements relative to the CACT; and directs DHS to adopt and implement emergency rules to provide for user fees for international and private adoptions.
CONNOR DECREE. The Act appropriates $46,000 to DHS to be used to provide training in accordance with the federal consent decree issued in 1994 regarding placement of persons with mental retardation in the least restrictive setting.
COMMUNITY-BASED PROGRAMS — ADOLESCENT PREGNANCY PREVENTION. This appropriation is a decrease compared with the appropriation in the previous fiscal year. The Act provides that a portion of the funding is to be used for (1) adolescent pregnancy prevention grants including grants for programs to prevent pregnancies during the adolescent years and to provide support services for pregnant or parenting teens, and (2) grants to community or regional groups for pregnancy prevention efforts. Intent language provides that by July 1, 1999, grants awarded under criteria (1) are to meet the criteria of the grants awarded under criteria (2), which emphasize sexual abstinence. The Act provides that it is the intent of the General Assembly that DHS and the Iowa Department of Public Health identify existing abstinence education or community-based programs which meet federal criteria in order to draw down additional federal funding for these programs. Funding is also provided for child abuse prevention grants.
COURT-ORDERED SERVICES PROVIDED TO JUVENILES. The Act increases the level of funding compared with the appropriation for the previous fiscal year. The Act provides for continuation of the planning groups established by each judicial district for review of expenditures under the appropriation. The Act prohibits a court from ordering any service that is a charge upon the state if there are insufficient funds for the services and prohibits a court from ordering a county to pay for any service which is a charge upon the state. The Act also authorizes the transfer of not more than $580,000 to the appropriation for child and family services to be used to provide school-based supervision of children adjudicated delinquent.
MENTAL HEALTH INSTITUTES. This appropriation provides for a decrease in the appropriation compared with the appropriation for FY 1996-1997. The Act requires the State Mental Health Institute at Independence to implement a net state share budgeting accounting test pilot project. The Act also requires DHS to develop a plan for implementing a dual diagnosis program at the State Mental Health Institute at Mount Pleasant beginning July 1, 1998, and to submit a plan to the Governor and the General Assembly on or before January 2, 1998. The Act permits DHS to reallocate funds as necessary to best fulfill the needs of the institutions provided for in the appropriation and requires DHS to provide persons being discharged from an institute with assistance in obtaining federal benefits under federal Supplemental Security Income (SSI).
STATE HOSPITAL-SCHOOLS. This appropriation is a decrease in the appropriation compared with the previous fiscal year. The Act requires DHS to implement a net-state budgeting pilot project at the State Hospital-School at Glenwood. The Act also authorizes DHS to reallocate funds between the two state hospital-schools to fulfill the needs of the institutions and authorizes DHS to implement a pilot project to allow for a more flexible means of billing for services without shifting additional costs to the state, counties or other funding sources.
MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES COMMUNITY SERVICES. The appropriation for mental illness special services maintains the current level of funding in comparison with the previous fiscal year, requires DHS and the Iowa Finance Authority to develop methods to finance community-based facilities, provides that the funds appropriated are to provide for construction and start-up costs to develop community living arrangements to provide for persons with mental illness who are homeless, and provides that previous recipients of these grants are eligible for future grants. The appropriation for the Family Support Subsidy Program is an increase in the appropriation compared with the previous fiscal year, the appropriation for special needs grants maintains the current level of funding, and the appropriation for state cases is increased compared with the previous fiscal year.
MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES COMMUNITY SERVICES — COMMUNITY SERVICES FUND. This appropriation is an increase in comparison with the appropriation for FY 1996-1997. Intent language under this appropriation is the same as the language in recent years. Moneys are distributed to counties according to a population and poverty formula, 50 percent of the moneys from the fund must be used for contemporary services according to rules adopted by the Mental Health and Developmental Disabilities Commission, funding continues for the Iowa Compass Disability Services Information and Referral Program, regional planning councils must submit services plans and counties must submit expenditure reports, block grant funds must be used with case management and are subject to DHS purchase of service requirements, and plans must be submitted for block grant services. The Act provides that counties with an approved county management plan in place are considered to have met many of the planning and reporting requirements. Additionally, intent language is included which provides that to the extent possible, public funding for mental retardation and developmental disabilities services should be used in a flexible manner to reduce reliance on institutional-based services and allows that a county may amend its management plan to reflect this.
PROVIDER REIMBURSEMENT — SHELTERED WORKSHOPS — WORK ACTIVITY SERVICES. This is a new appropriation to provide for a 1 percent provider reimbursement increase to be allocated to counties in accordance with the purchase of services allocation formula.
PERSONAL ASSISTANCE. This appropriation maintains the current level of funding to continue the pilot project for the Personal Assistance Services Program in an urban and a rural area. A portion of the funds may be used to develop a federal home and community-based waiver under the MA Program for persons with physical disabilities. The project is to be implemented in a manner that does not require additional county or state costs for assistance provided under the pilot project or the waiver. The Act also includes intent language giving priority to new applicants with education and employment needs and providing that current applicants who may receive similar services under other programs are to be assisted in attaining eligibility for those programs.
FIELD OPERATIONS — GENERAL ADMINISTRATION — VOLUNTEERS. The appropriation for field operations is an increase compared with the previous fiscal year. The Act establishes the General Assembly's intent that up to 20 full-time equivalent positions be utilized for expansion of the assessment-based approach for responding to reports of suspected child abuse (see also S.F. 230 under Children & Youth). The appropriation for general administration is an increase compared with the previous fiscal year, provides that a portion of the funds appropriated are allocated for the Prevention of Disabilities Policy Council, and provides that if an expenditure reduction or other cost-saving measure is deemed necessary to maintain expenditures within the appropriation, DHS is prohibited from implementing the reduction or other measure in a manner that reduces service funding for disability rehabilitation programs, including statewide supported employment programs, or which reduces the drawdown of federal funds. The appropriation for volunteers maintains the current funding level.
REIMBURSEMENT FOR MEDICAL ASSISTANCE, STATE SUPPLEMENTARY ASSISTANCE AND SOCIAL SERVICE PROVIDERS. The Act provides for an increase in the reimbursement rate for skilled nursing facilities; provides that the dispensing fee for pharmacists is to remain at the rate in effect on June 30, 1997, and that the reimbursement policy for drug product costs is to be in accordance with federal requirements, which results in an increase in the drug product costs; provides for an increase in the reimbursement rates for inpatient and outpatient hospital services based upon ambulatory patient groups and requires DHS to continue the revised MA payment policy for reimbursement for costs of screening and treatment provided in the hospital emergency room pursuant to the prospective payment methodology developed by DHS for payment of outpatient services under the MA Program, which results in an increased reimbursement; provides that rural health clinics receive an increase in accordance with increases under the federal Medicare Program; provides that home health agencies, hospice services and acute care mental hospitals are to be reimbursed for their current federal Medicare audited costs which result in an increased reimbursement; provides that the maximum MA reimbursement rate for nursing facilities is established at the seventieth percentile based upon the June 30, 1997, unaudited compilation of costs and statistical data, with the provision that the reimbursement may be again increased to the seventieth percentile based upon the December 31, 1997, unaudited compilation of costs; requires DHS to reimburse federally qualified health centers at 100 percent of reasonable costs as determined based upon federal requirements; and provides that the reimbursement rate for dental services is to remain at the rates in effect on June 30, 1997.
The Act establishes the maximum cost reimbursement rate for residential care facilities at not less than $22.20 per day and the rate for facilities not filing cost reports at $15.88 per day. In-home health-related care programs reimbursement rates are established at not less than $426.78 per month. The Act also establishes a foster family basic daily maintenance rate and a maximum adoption subsidy rate for children based upon the age of the child, which is an increased reimbursement rate compared to FY 1996-1997.
The Act provides that the reimbursement for social services providers is the same rate as the rate for the previous fiscal year unless a specified exception applies. The Act provides that the group foster care reimbursement rate for children placed outside of the state is to be calculated in the same manner as is used for in-state providers, unless otherwise determined by the Director of Human Services.
The Act provides that the rate for shelter care providers is to be based upon the cost report submitted to DHS, provides that the maximum reimbursement rate is $76.61 per day, and authorizes DHS to adjust the rate paid to a shelter care provider up to the maximum rate under certain circumstances.
The Act provides that the reimbursement rate for intermediate care facilities for persons with mental retardation is to be calculated at the eightieth percentile.
The Act requires DHS to set child day care provider reimbursement rates based on the reimbursement rate survey completed in December 1996 and to set rates in a manner that provides incentives for nonregistered providers to become registered. The department is to review the effects of providing rate reimbursement incentives on provider availability and report findings to the General Assembly on or before January 2, 1998.
The department is authorized to implement a pilot project, at no cost to the state, to examine use of a payment system for pharmaceutical care services provided by pharmacists under the MA Program, and is required to revise the financial and statistical report form applicable to nursing facilities to incorporate the recommendations from the review conducted in 1997. The Act also requires that the reimbursement rate for psychiatric medical institutions for children is to be increased by 3 percent over the rates in effect on June 30, 1997.
STATE INSTITUTIONS — CLOSINGS AND REDUCTIONS. The Act requires DHS to coordinate efforts in cooperation with the Iowa Department of Economic Development to develop new jobs in the area in which a state institution is to be closed or reduced in size. Additionally, DHS is instructed to take other actions to utilize any closed unit or other facilities and services of an institution.
MISCELLANEOUS AND STATUTORY PROVISIONS. The Act includes the following miscellaneous provisions:
THE GOVERNOR ITEM VETOED THE FOLLOWING:
  1. Language limiting DHS to selecting only existing community collaboratives to provide support services to Family Investment Program participants.
  2. Language authorizing transfer of moneys allocated in the children and families appropriation for purposes of the PMICs to the appropriation for medical assistance. In addition, the vetoed language would have prohibited DHS from amending the contract for managed mental health care to include PMICs.
  3. Language allowing DHS, if excess capacity exists at a state institution, to contract with a managed care provider or an organized delivery system for health care to provide services at the institution for the plan or system provided county funds are not used.
HOUSE FILE 730 - Appropriations — State Government Technology and Operations (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys to the Iowa Communications Network (ICN) and to other entities for other technology-related purposes. Moneys are appropriated to the ICN from the General Fund of the State and the Rebuild Iowa Infrastructure Fund for FY 1997-1998 for debt service, the connection of a minimum of 110 Part III authorized users, the lease of T-1 circuits for current Part III analog technology sites, and for ICN connections at the Anamosa and Rockwell City institutions. Moneys are also appropriated to the ICN from the Rebuild Iowa Infrastructure Fund for FY 1998-1999 for the connection of Part III authorized users as determined by the Iowa Telecommunications and Technology Commission (ITTC). The Act authorizes the connection of four additional Part III sites at private colleges that have requested certification for access to the network.
Moneys are appropriated to the Department of Education for FY 1997-1998 for the subsidization of video rates for certain authorized users. The department is to establish by rule a procedure for the ITTC to be reimbursed for the portion of the cost of providing interactive video service to nonpublic and public schools for grades kindergarten through 12 and community colleges, which is not currently included in the rates charged to those users for such service. Moneys are appropriated to the Department of Education for FY 1997-1998 for expansion of the ICN backbone and for the replacement of obsolete equipment. Moneys are appropriated to the Public Broadcasting Division of the Department of Education for FY 1997-1998 for support of network functions and for allocation to the regional telecommunications councils for technical assistance for network classrooms and related support activities.
Moneys are appropriated to the Department of General Services from the Rebuild Iowa Infrastructure Fund for FY 1997-1998 and for FY 1998-1999 for implementing reengineering projects with an emphasis on technology.
The Act establishes a Reversion Incentive Program Fund for purposes of supporting the implementation of century date change programming. The Act provides for a portion of reversionary amounts to be deposited in the fund. The Act also provides that if the total of funds deposited into the fund from such reversionary amounts is less than $10 million, an appropriation is to be made from the State General Fund equal to the shortfall. This section of the Act takes effect May 23, 1997.
The Act provides that it is the intent of the General Assembly that the Legislative Council establish a legislative oversight committee to review and analyze the structure and operations of state government and the use of information technology in providing services and enhancing the ability of the public to interact with government. This section of the Act takes effect May 23, 1997.
The Act requests that the Legislative Council establish an interim study committee to study issues regarding privatization of the ICN.
The Act makes several miscellaneous Code changes. The Act provides for the payment of services rendered by the ICN to state agencies. The Act provides that the Department of General Services may provide telecommunications cabling. The Act also provides that the Executive Council may use moneys in a contingent fund for purposes of restoring state property destroyed by wild animals.
THE GOVERNOR ITEM VETOED THE FOLLOWING:
  1. A requirement that the Department of General Services retain outside legal counsel for the purpose of reviewing all contracts or agreements entered into associated with implementation of century date change programming.
  2. A requirement that state agencies use at least 50 percent of their resources committed to information technology to implement Year 2000 programming.
HOUSE FILE 733 - Appropriations — Infrastructure and Capital Projects (full text of act)
BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations for fiscal years during the period beginning July 1, 1997, and ending June 30, 2001, for various capital and other projects from the Rebuild Iowa Infrastructure Fund and the State General Fund. The Act also establishes programs and makes statutory changes related to the appropriations.
Division I - Miscellaneous Capital Projects
Division I of the Act makes appropriations for capital projects to the Departments of Cultural Affairs, General Services, Economic Development, Public Defense, Natural Resources, Revenue and Finance, Public Safety, Transportation, Workforce Development, Education, and Agriculture and Land Stewardship, the Judicial Department and for the Commission of Veterans Affairs, the Loess Hills Development and Conservation Authority, and the State Fair Foundation.
Division II - State Board of Regents
Division II of the Act appropriates $70,415,000 over four fiscal years ending with FY 2001 to the State Board of Regents for infrastructure projects. The Act authorizes the Regents to undertake several infrastructure projects, including the livestock infectious disease isolation facility at Iowa State University, the medical education and biomedical research facilities at the University of Iowa, and Lang Hall at the University of Northern Iowa.
Division III - Community College Vocational-Technical Technology Improvement Program
Division III of the Act establishes the Community College Vocational-Technical Technology Improvement Program to supplement community college budgets for technology projects and acquisitions. The Act provides for an appropriation from the Rebuild Iowa Infrastructure Fund of $3 million a year for four fiscal years beginning with FY 1998. Moneys in the program are to be used by community colleges to supplement current expenditures for technology projects and may be used for infrastructure projects related to the acquisition or installation of equipment purchased under the program. The program is repealed effective July 1, 2001.
Division IV - Miscellaneous Statutory Changes
Division IV of the Act contains miscellaneous statutory provisions related to infrastructure. The Act establishes the Restore the Outdoors Program in the Department of Natural Resources to provide maintenance and infrastructure improvements to existing state parks and other public facilities managed by the department. The Act provides for an appropriation from the Rebuild Iowa Infrastructure Fund of $4 million a year for the four fiscal years beginning with FY 1998.
The Act also requires state departments to request sufficient funding to meet the projected infrastructure maintenance, repair and replacement needs of the departments; changes how fairs are defined in Code Chapter 174; provides that the amount of state aid provided to each eligible fair shall be equal; and provides for the distribution of state aid to county fairs through the State Fair Foundation instead of the Treasurer of State.
THE GOVERNOR ITEM VETOED THE FOLLOWING:
  1. Funding for FY 1998 and FY 1999 for moving the State Library.
  2. A provision limiting the use and amount of moneys appropriated for renovation of the old Historical Building for FY 1998 to construction of a tunnel between the old Historical Building and the Capitol.
  3. Funding in FY 1999 for repair of Capitol Complex parking lots.
  4. A provision requiring the Department of General Services to consult with the Legislative Council regarding contracting for the state infrastructure survey.
  5. Provisions appropriating money to the Department of Economic Development for FY 1998 and FY 1999 for the Historical Site Preservation Grant Program and the Main Street Investments Loan Program. The Governor also item vetoed a provision reducing the amount of funding for the physical infrastructure assistance for FY 1998.
  6. The appropriation for the Iowa Veterans Home for FY 1999.
  7. The appropriation for the Iowa State Fair Foundation for FY 1999.
  8. The Main Street Investments Loan Program.
  9. A requirement that the Director of the Department of General Services establish a uniform system for evaluating and rating vertical infrastructure needs in the state.
  10. The requirement that $1 million of the $4 million appropriated each year for the Restore the Outdoors Program be used for infrastructure projects at local parks.

RELATED LEGISLATION

SENATE FILE 235 -- Restoration of Soil and Water Conservation Practices — Disaster Emergency
(Complete summary under AGRICULTURE)
This Act permits the commissioners of a soil and water conservation district to allocate moneys otherwise available for voluntary cost-share projects to provide for the restoration of permanent soil and water conservation practices that are damaged or destroyed because of a disaster emergency.
HOUSE FILE 255 -- Mental Health and Developmental Disability Funding — Allowed Growth Factor Adjustment
(Complete summary under LOCAL GOVERNMENT)
This Act establishes an allowed growth factor adjustment for county mental health, mental retardation, and developmental disabilities (MH/MR/DD) services in FY 1997-1998 and FY 1998-1999. Appropriations of approximately $6.1 million and $12.5 million are made for the respective fiscal years to fund a 2.89 percent increase in growth in county expenditures for MH/MR/DD services in each of the fiscal years.
HOUSE FILE 367 -- Job Training Withholding Payments
(Complete summary under ECONOMIC DEVELOPMENT)
This Act provides for a one-time appropriation to provide a credit from the General Fund of the State to the Workforce Development Fund Account for the amount of diversion that would have been made to the account had this Act taken effect July 1, 1996.
HOUSE FILE 732 -- Housing Development
(Complete summary under ECONOMIC DEVELOPMENT)
This Act appropriates $1 million each fiscal year for the period beginning July 1, 1997, and ending June 30, 2002, from the Rebuild Iowa Infrastructure Fund for deposit in the Local Housing Assistance Program Fund.
HOUSE FILE 734 -- Fees and Penalties Relating to Corrections and License Revocations
(Complete summary under CORRECTIONS, CRIMINAL LAW & PROCEDURE)
This Act establishes a motor vehicle license reinstatement penalty and provides that moneys collected shall be deposited during FY 1998 with the Department of Human Services. The first $1 million shall be used for juvenile detention homes with the remaining moneys collected to be used for runaway assessment facilities and services and juvenile delinquency prevention and intervention services.

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