2001 Summary of Legislation APPROPRIATIONS Published by the Iowa General Assembly -- Legislative Service Bureau

APPROPRIATIONS LEGISLATION

SENATE FILE 65 - Appropriations -- Supplemental Funding for Low-Income Home Energy Assistance (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act provides supplemental appropriations from state sources for the federal block grant for the Low-Income Home Energy Assistance Program (LIHEAP) for FY 2000-2001.

   The funding sources used for the appropriations include the Innovations Fund used for state government improvement projects and the Groundwater Protection Fund. In addition, existing session law for FY 2000-2001 is amended to restrict the amount of the federal and state LIHEAP moneys that may be used for weatherization and for administrative costs at the state level and for the community action program agencies at the local level.

   The Act takes effect February 6, 2001.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

• An appropriation made from the Housing Program Fund administered by the Iowa Finance Authority.

SENATE FILE 66 - General Fund Expenditure Limitation Requirements -- VETOED BY THE GOVERNOR (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This bill would have amended Code Section 8.54, relating to the budget transmission and passage provision of the State General Fund expenditure limitation. The section, which sets forth Iowa’s expenditure limitation law, establishes uniform requirements used by the Governor and General Assembly in the budget process for the General Fund of the State.

   The bill would have eliminated a requirement that the Governor in submitting a budget, and the General Assembly in passing a budget, not have recurring expenditures in excess of recurring revenues. Rather, the bill would have required that the budgets transmitted by the Governor and passed by the General Assembly not exceed the State General Fund expenditure limitation.

   The bill also would have prohibited the Governor from transmitting a budget with recommended appropriations in excess of the State General Fund expenditure limitation and the General Assembly from passing a budget with appropriations in excess of the limitation. The bill provided, in applying the expenditure limitation requirements, that the Governor and the General Assembly could not rely on any anticipated reversion of appropriations in order to meet the expenditure limitation.

   The Governor’s veto message states that the expenditure limitation law has worked well, and that the bill’s changes are unnecessary and are unworkable in some cases.

SENATE FILE 267 - Supplemental Appropriations and Reductions (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to state budgetary matters by making reductions to appropriations made for FY 2000-2001 from the General Fund of the State, making a supplemental appropriation, and transferring and crediting certain other appropriations.

   The supplemental appropriation is made to the Department of Revenue and Finance for compliance activities.

   Moneys credited to the Enhanced Court Collections Fund during FY 2000-2001 prior to the Act’s effective date are transferred to the General Fund of the State along with moneys that would have been credited to the collections fund for the remainder of the fiscal year. The collections fund was created to be used for judicial branch technology projects and other measures to improve the administration of justice. The maximum balance for the collections fund in a fiscal year is $4 million.

   The Act reduces appropriations for the following:

• To the Department of General Services for the Capitol Planning Commission.
• To the Department of Economic Development for business development operations, community assistance, tourism operations and advertising, and business refunds under the School-to-Career Program.
• To the Department of Workforce Development for the Division of Labor Services.
• To the Department of Human Services for maintenance of the Healthy and Well Kids in Iowa (HAWK-I) Program, purchase of local services for those persons with mental illness, mental retardation, or developmental disabilities (MH/MR/DD) who are a state payment responsibility, and risk pool funding for services provided to persons with MH/MR/DD who are a county funding responsibility.
• To the Iowa Department of Transportation for airport engineering studies and improvement projects and for the Rail Assistance Program and to provide economic development funding.

   In addition, appropriations made to the Department of Agriculture and Land Stewardship from the General Fund of the State for the Soil Conservation Division are reduced and replaced with an appropriation made from the Environment First Fund.

   The Act takes effect March 13, 2001.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A 1 percent across-the-board reduction of most appropriations made from the General Fund of the State. Exceptions from this reduction were made under the Act for appropriations made for the judicial and legislative branches, the State School for the Deaf and the Iowa Braille and Sight Saving School, various entitlement programs administered by the Department of Human Services, debt payments for correctional facility construction or enhancement projects, state unemployment compensation and certain public employment retirement system obligations, certain federal obligations, various property tax credits and replacement funding, the Iowa Veterans Home, Iowa Communications Network debt service, tuition replacement used for debt services for projects at the state’s public universities, and for various types of school funding. The Governor’s veto message stated that the education and human services programs would bear the brunt of the cuts and that the Governor had requested the General Assembly to provide targeted cuts rather than an across-the-board approach.
2. A reduction to the state contribution to the Judicial Retirement System for FY 2000-2001 and subsequent fiscal years. The Governor raised concerns about reducing the contribution when the system is not yet actuarially sound. See S.F. 527 for a one-time reduction in the contribution rate for FY 2001-2002.

SENATE FILE 509 - Supplemental Appropriations -- Department of Transportation -- Road Salt (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act makes a supplemental appropriation for FY 2000-2001 to the Iowa Department of Transportation (IDOT) from the Primary Road Fund for the purchase of salt to restock IDOT’s year-end salt inventory.

   The Act takes effect March 30, 2001.

SENATE FILE 525 - 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, 2001, and ending September 30, 2002, 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, Local Law Enforcement, Residential Substance Abuse Treatment for State Prisoners, Community Services, Community Development, Low-Income Home Energy Assistance, Social Services, Mental Health Services for the Homeless, and Child Care and Development. See H.F. 732 for appropriations of the federal Temporary Assistance for Needy Families (TANF) Block Grant.

   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, 2001, and ending June 30, 2002.

SENATE FILE 527 - Appropriations -- Judicial Branch (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. The Act makes appropriations for FY 2001-2002 to the judicial branch.

   The Act includes a reduction in the percentage of the state’s contribution to the Judicial Retirement Fund for FY 2001-2002.

   The Act requires the judicial branch to transfer certain moneys in the Enhanced Court Collections Fund to the Division of Criminal and Juvenile Justice Planning of the Department of Human Rights and the Information Technology Department for the continued development of the justice data warehouse.

   The Act provides that up to $317,450 of the moneys deposited in the Enhanced Court Collections Fund may be used to compensate judicial hospitalization referees.

SENATE FILE 528 - Appropriations -- Transportation (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations for FY 2001-2002 from the General Fund of the State, the Road Use Tax Fund, and the Primary Road Fund to the Iowa Department of Transportation. The Act also makes related Code language changes.

   The Act appropriates moneys from the General Fund of the State for airport engineering studies and improvement projects and for the Rail Assistance Program and to provide economic development project funding.

   Appropriations from the Road Use Tax Fund include appropriations for driver’s license production costs, salaries, operations, administrative services, planning, motor vehicles, unemployment and workers’ compensation, county issuance of driver’s licenses, a system providing toll-free telephone road and weather reports, membership in the North America’s Superhighway Corridor Coalition, payment of the state’s portion of a street project, and indirect cost recoveries.

   Appropriations from the Primary Road Fund include appropriations for salaries, operations, planning, highways, motor vehicles, equipment, the merit system, unemployment and workers’ compensation, disposal of hazardous wastes at field locations, indirect costs, wastewater handling, roof replacement at field facilities, compliance with the federal Americans With Disabilities Act at department facilities, and other capital projects.

   The Act amends Code Section 312.2 to allow the annual allocation for county treasurers’ equipment and support to be used for automation and telecommunications equipment and support for vehicle registration and titling and driver licensing rather than only for data processing equipment and support for vehicle registration and titling.

   The Act amends Code Section 315.3 to provide that the State Transportation Commission may temporarily transfer funds from the Revitalize Iowa’s Sound Economy (RISE) Fund to the Primary Road Fund to meet road construction costs for which there are inadequate funds in the Primary Road Fund. The transferred funds must be repaid to the RISE Fund within six months of transfer.

   The Act amends Code Section 321.196 to remove provisions allowing a person to renew the person’s driver’s license by mail. The Act also removes a corresponding reference in Code Section 321.189.

SENATE FILE 530 - Appropriations -- Justice System (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations for FY 2001-2002 to the departments of Justice, Corrections, Public Defense, and Public Safety, the Iowa Law Enforcement Academy, the Office of Public Defender, and the Board of Parole. Under the Act the total appropriation to the justice system of $358.4 million reflects a decrease in appropriations from the General Fund of the State of approximately $5.9 million or 1.6 percent from the FY 2001-2002 appropriations.

   DEPARTMENT OF JUSTICE. The Act appropriates $13.6 million to the Department of Justice, which represents a decrease of $1.3 million compared to the estimated FY 2001-2002 appropriations. These appropriations include amounts to the Office of the Attorney General, the Prosecuting Attorneys Training Program, for victim assistance grants, and for the Prosecuting Attorneys Program. The Act also provides an appropriation to the Office of the Attorney General to provide legal services for persons in poverty grants.

   DEPARTMENT OF CORRECTIONS. The Act decreases the State General Fund appropriation to the Department of Corrections by $8.8 million compared to the estimated FY 2001-2002 appropriations.

   INDIGENT DEFENSE. The Act appropriates $34.6 million for indigent defense and the State Public Defender’s Office, which represents a decrease of $1 million from the FY 2001-2002 appropriations.

   LAW ENFORCEMENT ACADEMY. The Act appropriates $1.36 million to the Law Enforcement Academy, which represents a decrease of $95,000 from the estimated FY 2001-2002 appropriations.

   BOARD OF PAROLE. The Act appropriates $1.02 million to the Board of Parole, which represents a decrease of $60,000 from the estimated FY 2001-2002 appropriations.

   DEPARTMENT OF PUBLIC DEFENSE. The Act appropriates $5.19 million to the Department of Public Defense, which represents a decrease of $42,000 from the estimated FY 2001-2002 appropriations.

   DEPARTMENT OF PUBLIC SAFETY. The Act appropriates $59.4 million to the Department of Public Safety, which represents a decrease of $4.9 million from the estimated FY 2001-2002 appropriations. The Act permits the Department of Public Safety to add two full-time equivalent positions (FTEs) for the prevention of crime against the elderly, provided that federal grant moneys have been secured. The Act provides that the additional FTEs are to be eliminated if the federal moneys are discontinued.

   The Act makes a supplemental appropriation to the Fort Madison Correctional Facility for FY 2000-2001. The supplemental appropriation takes effect May 30, 2001.

   The Act requires drug courts to be offered only to offenders if an adjudication of guilt has been entered, and that the drug courts give priority to felony offenses over misdemeanors. The Act requires the Department of Corrections, in cooperation with the judicial districts, to implement procedures to evaluate the drug courts.

   The Act requires the departments of Justice and Corrections to assist local regional jail development authorities in issuing a report regarding the development of regional jails.

   The Act amends the 1998 Iowa Acts to extend the use of Wireless E911 Emergency Communications Fund moneys for purposes of the Emergency Management Division for another fiscal year.

   STATUTORY CHANGES. The Act provides that the Department of Corrections is not required to pay the depreciation expense to the Depreciation Replacement Fund for replacements and additions to the motor vehicle fleet.

   The Act appropriates moneys to a Sick Leave Benefits Fund created in new Code Section 80.42, to be paid upon the retirement or disability of Department of Public Safety employees or beneficiaries who are eligible to receive monthly an accrued sick leave benefit. The Act also provides that unobligated funds and any accrued interest do not revert to the General Fund of the State, and the department may transfer moneys to the Sick Leave Benefits Fund to meet anticipated accrued sick leave benefits which may be paid to employees during the fiscal year.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. Section 6, subsection 7, which required the Department of Corrections and all eight judicial district departments of correctional services to prepare a report on the violator program.
2. Section 6, subsection 9, which required the Department of Corrections and all eight judicial district departments of correctional services to prepare a report on the use of intermediate criminal sanctions.
3. Sections 18, 19 and 20, which changed the rate of reimbursement to counties for temporary confining work release, parole, and OWI violators.

SENATE FILE 531 - Appropriations -- Administration and Regulation (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to and appropriates $81.5 million from the General Fund of the State for FY 2001-2002 to various state departments, agencies, and certain other interstate and national entities. The Act also appropriates an additional $22.3 million from funds other than the General Fund of the State.

   The state departments and agencies include the Auditor of State, Iowa Ethics and Campaign Disclosure Board, Department of Commerce, Department of General Services, Office of Governor including the Lieutenant Governor and Terrace Hill quarters, Department of Inspections and Appeals, Department of Management, Department of Personnel, Iowa Public Employees’ Retirement System, Department of Revenue and Finance, Secretary of State, Office of State-Federal Relations, and Treasurer of State.

   The Act also appropriates moneys for the state’s membership in the National Governors Association and for the Department of Personnel’s Ready to Work Program coordinator.

   The Act also provides for the transfer of any moneys in excess of the maximum balance in the Economic Emergency Fund to the General Fund of the State and to the Endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund at the conclusion of the fiscal years beginning July 1, 2000, and July 1, 2001. At the conclusion of the fiscal year beginning July 1, 2000, the first $163.8 million is transferred to the General Fund of the State, the next $40 million is transferred to the Endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund, and the remainder is transferred to the General Fund of the State. At the conclusion of the fiscal year beginning July 1, 2001, any excess funds shall be transferred to the Endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund, but the total amount transferred shall not exceed the difference between $40 million and the amount transferred to the Endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund at the conclusion of the fiscal year beginning July 1, 2000.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

   Section 24, subsection 1, unnumbered paragraph 3, which would have provided that not more than $2,500 shall be used to pay the expenses of the Marshall County deputy auditor to serve on a task force for elections reform for the elections center.

SENATE FILE 533 - Tobacco Settlement Trust Fund -- Appropriations to Iowa’s Health Account (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act provides for the deposit of moneys in and the appropriation of moneys to the Tobacco Settlement Trust Fund. The Act provides for the deposit of money from gambling revenues, following deposits in the General Fund of the State, the Vision Iowa Fund, and the School Infrastructure Fund, for the fiscal period beginning July 1, 2001, and ending June 30, 2007, in the endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund. The Act also appropriates moneys from the General Fund of the State to the Tobacco Settlement Trust Fund for each year of the fiscal period beginning July 1, 2001, and ending June 30, 2007.

   The effective date of the Act is the effective date of the receipt of the bond proceeds, following securitization of the Master Settlement Agreement payments, by the Tobacco Settlement Authority and the deposit of the proceeds of the tax-exempt bonds and the taxable bonds in the respective accounts of the Tobacco Settlement Trust Fund.

SENATE FILE 535 - Appropriations -- Education (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys for FY 2001-2002 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 over $920.7 million and provides 17,395.1 full-time equivalent positions (FTEs), which is $59.3 million under, and 41.3 FTEs over, the FY 2000-2001 estimated net appropriations. However, the Governor item vetoed provisions relating to tuition grants and scholarships to restore $2.65 million in state education funding.

   COLLEGE STUDENT AID COMMISSION. Compared to FY 2000-2001, the commission’s appropriation is reduced by $5.8 million. The number of FTEs is unchanged. The Act includes appropriations for general administrative purposes, forgivable loans to Iowa students attending the Des Moines University--Osteopathic Medical Center, an initiative directing primary care physicians to areas of the state experiencing physician shortages, student aid programs, the Accelerated Career Education Grant Program, the National Guard Educational Assistance Program, the Chiropractic Graduate Student Forgivable Loan Program, and the Teacher Shortage Forgivable Loan Program. The Act nullifies the $2.75 million standing appropriation for the Iowa Work-Study Program for FY 2001-2002.

   DEPARTMENT OF CULTURAL AFFAIRS. The Act funds the Arts, Historical and Administration Divisions, historic sites, and Community Cultural Grants. In comparison with FY 2000-2001, the Act reduces state moneys for department administration, the Arts and Historical Divisions, and for cultural grants by 6 percent and for historic sites by 7 percent -- a total reduction in state funding to the commission of $386,288, or 6.1 percent.

   DEPARTMENT OF EDUCATION. The Act appropriates moneys for purposes of the department’s general administration; vocational education administration; the Board of Educational Examiners; the Division of Vocational Rehabilitation Services; independent living; the State Library for general administration and the Enrich Iowa Program; the regional library system, which under H.F. 637 (see Education) becomes the library service area system; the Public Broadcasting Division; vocational education to secondary schools; school food service; the Iowa Empowerment Fund; textbooks of nonpublic school pupils; the Vocational Agriculture Youth Organization and other youth activities; for connecting education and workforce development; and community colleges.

   Programs that were funded in the prior fiscal year but are not funded in this year’s Act include the Family Resource Center Demonstration Program, Education Innovation Project Grants, the Local Arts Comprehensive Educational Strategies (LACES) Program, employability skills assessments reimbursements, Jobs for America’s Graduates, and the Americorps After-School Initiative. However, these latter two are funded in Division V of H.F. 755. With the following exceptions, funding for the majority of programs is reduced by 6 percent: for the Board of Educational Examiners, a reduction of 75.1 percent; for independent living, a reduction of 18.4 percent; for Iowa Public Television, a reduction of 8 percent; and for the State Library, a reduction of 46.1 percent. The Act increases funding for the Enrich Iowa Program by 88 percent. The department’s total appropriation is decreased by 12.7 percent from FY 2000-2001.

   Enrich Iowa. The Act directs the Commission of Libraries to develop rules governing the allocation of state moneys for the Enrich Iowa Program to provide direct state assistance to public libraries and to fund the Open Access and Access Plus Programs. A library that receives funding under the Enrich Iowa Program must provide the Open Access Program to its patrons. The Act also requires that the amount of state assistance distributed to eligible libraries not be less than the amount distributed in the prior fiscal year.

   Board of Educational Examiners. As in prior years, the Act permits the Board of Educational Examiners to use, for its own purposes, up to 85 percent of any funds received resulting from licensing fee increases implemented after July 1, 1997.

   Iowa Empowerment Fund. The 6 percent reduction in School Ready Children Grants Account funds will be distributed based on whether a designated community empowerment area first received funds in FY 2000-2001, or prior to that year. Those receiving funds in FY 2000-2001 receive 94 percent of the amount received in that year, while those first receiving funds prior to FY 2000-2001 receive 75.185 percent of the amount the area received in FY 2000-2001, adjusted for annualization. The Act requires an area board to submit to the Iowa Empowerment Board a written plan amendment extending by one year the area’s comprehensive school ready children grant plan.

   Family Resource Center Demonstration Program. The Act repeals the Code language establishing this program.

   Phase III. In statutory language, the Act continues for FY 2001-2002 Phase III funding for the Iowa Mathematics and Science Coalition. Phase III funding is also provided for the National Assessment of Education Progress and for the Ambassador to Education (Teacher of the Year) position.

   STATE BOARD OF REGENTS. The Act appropriates moneys for board operations, tuition replacement, the Southwest Iowa Graduate Studies Center, the Tristate Graduate Center, the Quad-Cities Graduate Studies Center, the State University of Iowa, Iowa State University of Science and Technology, the University of Northern Iowa, the Iowa School for the Deaf, the Iowa Braille and Sight Saving School, and for tuition and transportation costs for students residing in the Iowa Braille and Sight Saving School and the Iowa School for the Deaf. Division IV of H.F. 755 appropriates funds in lieu of those appropriated in this Act for tuition replacement. The total appropriation for the board and its institutions is reduced by 5.8 percent from FY 2000-2001.

   Student Health Centers. The Act prohibits student health centers at regents universities from using state moneys to fund medically induced termination of a pregnancy.

   State Hospital-School. The Act changes the name of the state hospital-school to the Center for Disabilities and Development.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A provision directing the board of directors of a community college to obtain authorization from the State Board of Education prior to entering into any agreement or contract for the sale of a radio broadcast license or station owned by the community college.
2. A provision directing the State Board of Regents to obtain authorization from the Executive Council prior to entering into any agreement or contract for the sale of a radio broadcast license or station owned by the community college.
3. A provision reducing the standing appropriations for tuition grants, scholarships, and vocational-technical tuition grants.

SENATE FILE 537 - Tobacco Settlement Fund Appropriations (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to and makes appropriations of moneys received from the Tobacco Master Settlement Agreement and deposited in the Tobacco Settlement Endowment Fund and the Healthy Iowans Tobacco Trust.

   The Act makes appropriations to the Department of Human Services (DHS) for FY 2001-2002 for all of the following:

1. Unless otherwise provided, to maintain the Medicaid Program reimbursement rate for all noninstitutional providers at the rate paid under the federal Medicare Program during FY 2000-2001, and for continuation of the resource-based relative value system.
2. To maintain the Medicaid reimbursement rate for dental services at the usual and customary rate as provided during FY 2000-2001.
3. To maintain the Medicaid cost-of-living adjustment for rehabilitative treatment and support services to children providers as provided during FY 2000-2001.
4. To maintain the cost-of-living adjustment for adoption, independent living, shelter care, and home studies services providers as provided during FY 2000-2001.
5. To maintain the Medicaid reimbursement rate for hospitals as provided during FY 2000-2001.
6. To maintain the Medicaid reimbursement rate for home health care services at the rate provided to such agencies as provided during FY 2000-2001.
7. To maintain the Medicaid reimbursement rate for critical access hospitals at the rate provided such hospitals under the federal Medicare Program during FY 2000-2001.
8. To maintain the expansion of home health care services and habilitative day care under the Medical Assistance Program for children with special needs.
9. To maintain the expansion of respite care services provided through home and community-based waiver services under the Medical Assistance Program.
10. To maintain the reimbursement rate as provided during FY 2000-2001 for service providers under the purview of DHS.

   The Act provides for supplementation of the appropriation for the Children’s Health Insurance Program and for the appropriation for the Medical Assistance Program. The Act appropriates funds to DHS to provide coverage under the Medical Assistance Program to certain women who require treatment for breast or cervical cancer. The Act also codifies language to include this optional category of coverage under the Medical Assistance Program.

   The Act appropriates funds to the Iowa Department of Public Health for the Tobacco Use Prevention and Control Program and for additional substance abuse treatment. The Act also appropriates funds to the department for development of a Healthy Iowans 2010 plan and designates funding for core public health functions including home health care and public health nursing services; for the implementation and support of a coordinated system of delivery of trauma and emergency medical services; for the Poison Control Center; for development of scientific and medical expertise in environmental epidemiology; for prevention strategies to address the leading causes of deaths of Iowans; and for the Childhood Lead Poisoning Prevention Program. The Act also appropriates funds to the department for grants to free health clinics to provide smoking cessation products.

   The Act appropriates funds to the Department of Corrections for day programming and the Drug Court Program.

   The Act appropriates funds to the Property Tax Relief Fund for FY 2001-2002 for assistance to counties with limited county mental health, mental retardation, and developmental disabilities services fund balances to pay reimbursement increases in the same amount as provided in FY 2000-2001. The Act provides that any moneys remaining at the end of the fiscal year from the appropriation for FY 2000-2001 for assistance to counties with limited county mental health, mental retardation, and developmental disabilities services fund balances to pay reimbursement increases are to not revert, but are to be deposited in the Healthy Iowans Tobacco Trust to be used for the purposes of the trust.

   The Act appropriates funds from the Savings Account for Healthy Iowans created within the Tobacco Settlement Endowment Fund created in Code Section 12.65, to the Iowa Empowerment Fund for FY 2001-2002, for deposit in the School Ready Children Grants Account and directs distribution of the moneys as provided in S.F. 535.

   The Act appropriates funds from the Savings Account for Healthy Iowans to the Iowa Department of Public Health for FY 2001-2002 for establishing and operating a substance abuse treatment facility and providing staffing for the facility to be used to provide substance abuse treatment for persons on probation and under the supervision of a judicial district department of correctional services. The Act provides that the Iowa Department of Public Health and the Department of Corrections shall enter into a Code Chapter 28E agreement to assist the Iowa Department of Public Health in establishing security for the facility. The Act provides that a judicial district may, with the approval of the Iowa Department of Public Health and the Department of Corrections, place a person who is on probation at the substance abuse treatment facility to assist the person in complying with the terms and conditions of probation.

   The Act also amends Code Section 12.65, the Tobacco Settlement Endowment Fund, to rename the fund the Healthy Iowans Tobacco Trust. The Act provides that moneys appropriated from the Healthy Iowans Tobacco Trust from the Endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund established in Code Section 12E.12 and from any other source are to be deposited in the Healthy Iowans Tobacco Trust. The Act eliminates the Savings Account for Healthy Iowans that was established within the Tobacco Settlement Endowment Fund.

   The Act establishes a Substance Abuse Treatment Facility Advisory Council within the Iowa Department of Public Health to advise and make recommendations to the Director of Public Health. The members of the council consist of the directors of the eight judicial district departments of correctional services and representatives of the judicial branch, the Iowa Department of Public Health, the Department of Corrections, and the Governor’s Office of Drug Control Policy.

   The Act provides that moneys appropriated in the Act that are unexpended or unencumbered at the end of FY 2001-2002 are to revert to the Healthy Iowans Tobacco Trust.

   The Act provides that references in the Act to the Tobacco Settlement Endowment Fund and to the Savings Account for Healthy Iowans are to the fund and the account as created in Code Section 12.65, and that unless otherwise provided, appropriations from the fund and the account are from moneys in the fund and the account on or before June 30, 2001, and such moneys are to remain available for appropriation in FY 2001-2002 as provided in the Act.

   The Act provides that the section of the Act relating to nonreversion of moneys appropriated for purchase of service contract providers and the section of the Act relating to the transfer of moneys remaining in the Savings Account for Healthy Iowans on June 30, 2001, to the Healthy Iowans Tobacco Trust take effect May 29, 2001.

HOUSE FILE 413 - Student Achievement and Teacher Quality Program -- Appropriations and Allocations (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act appropriates $40 million from the Endowment for Iowa’s Health Account of the Tobacco Settlement Trust Fund, established in S.F. 532 (see Business, Banking & Insurance), to the Department of Education for FY 2001-2002 for purposes of the Student Achievement and Teacher Quality Program as enacted by S.F. 476 (see Education). The Act amends numerous provisions enacted in S.F. 476.

   The Act provides that any moneys in excess of the maximum balance in the Economic Emergency Fund after the distribution of the surplus in the General Fund of the State at the conclusion of FY 2000-2001 and FY 2001-2002 shall be transferred to the endowment. The amount transferred shall not exceed a total of $40 million.

   The Act amends S.F. 476 to provide the following:

• By July 1, 2003, each school district shall participate in the program if the General Assembly appropriates moneys for purposes of the program.
• For the next two school years, a school district is eligible to receive state assistance for a beginning teacher mentoring and induction program whether or not the district participates fully in the Student Achievement and Teacher Quality Program.
• Moneys received by a school district under an allocation formula based upon the district enrollment and the number of teachers employed by the district as provided in the Act must be used to raise teacher salaries as provided under the Iowa Teacher Career Path enacted by S.F. 476.
• For the school year beginning July 1, 2001, if the licensed employees of a school district or area education agency (AEA) are organized for collective bargaining purposes, state moneys received to raise teacher salaries must be distributed using a formula agreed to by the school board and the certified bargaining representative. In the event the parties reach an impasse, the school board must divide the funds remaining after minimum salaries have been reached among full-time teachers employed by the district or AEA whose regular compensation is equal to or greater than the minimum career teacher salary specified in S.F. 476.
• The members of the regional review panels who evaluate advanced teacher candidates, perform random audits of comprehensive evaluations, and randomly review performance-based evaluation models developed by school districts are entitled to receive mileage and per diem compensation by the department.
• Moneys that S.F. 476 requires a school district to pay to practitioners who become certified evaluators under the program will be paid from moneys allocated under this Act. Cash awards provided under the Team-based Variable Pay Pilot Program established by S.F. 476 will be paid from moneys allocated to an approved school district as provided in this Act.
• If the General Assembly provides sufficient funding, the department shall provide for a comprehensive independent evaluation of the Student Achievement and Teacher Quality Program and shall report the results to the General Assembly and various stakeholders by January 1, 2007.
• A program allocation formula, which allocates moneys in the following priority order: for team-based variable pay pilot programs, the issuance of national board certification awards, beginning teacher mentoring and induction programs, establishing an evaluator training program, implementing a career development program and the review panel requirements set forth in S.F. 476, the fees and costs incurred by the Board of Educational Examiners in administering the Praxis II examination, and raising the salaries of teachers employed by school districts and AEAs.
• If a school district is unable to raise minimum teacher salaries to the level required under S.F. 476, the district may apply to the department for a waiver that allows the district to use moneys it receives under the Early Intervention and School Improvement Technology Block Grant Programs to meet the minimum teacher salary requirements if the difference between the funds allocated to the school district under the Student Achievement and Teacher Quality Program and the amount required to comply with the beginning and career teacher minimum salaries is less than $10,000.
• If a school district does not choose to participate in the program during the school year beginning July 1, 2001, the allocation of state moneys for use in raising teacher salaries must be held for the school district by the department until June 30, 2003, or until the school district participates in the program, whichever occurs earlier.
• A request that the Legislative Council authorize up to $75,000 for the expenses of the Legislative Education Accountability and Oversight Committee, which S.F. 476 requests the council to establish.

HOUSE FILE 698 - Appropriations -- Regulatory and Expenditure Matters -- EXTRAORDINARY SESSION (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to regulatory and expenditure matters by providing an appropriation for additional utility regulatory staffing, creating a state workforce attrition program and fund, authorizing the Treasurer of State to create bond reserve funds for the Vision Iowa and School Infrastructure Funds, and authorizing the Department of General Services to take various actions involving development of a parking structure and office facilities on the Capitol Complex.

   With the enactment of H.F. 577 (see Energy & Public Utilities), relating to energy generating facilities, the Utilities Board and the Consumer Advocate are authorized to employ additional staff to perform regulatory activities relating to the development of the facilities.

   The Department of Management is directed to establish a Workforce Attrition Program and Workforce Attrition Fund for fiscal year 2001-2002. Unless an exception is authorized by the department, if an executive branch employee voluntarily retires during the fiscal year, the agency must transfer to the fund the unused funding attributable to that employee. In addition, the agency’s table of organization must be revised to eliminate the positions in which the voluntary retirements occurred. However, if the agency determines eliminating a position would severely impact the agency’s mission or services, the agency may appeal to the department for an exception. If the department concurs with the agency’s determination, the exception is to be made. Any balance in the fund is to be transferred to the General Fund of the State at the close of the fiscal year and the moneys cannot be transferred or used for any other purpose once they are credited to the fund.

   Current law authorizes the Treasurer of State to create bond reserve funds for both the Vision Iowa and School Infrastructure Funds. The reserve funds are to be used to secure the sale of bonds and notes for the Vision Iowa Program and the School Infrastructure Program. The Act continues the authorization but provides more specific requirements, including prohibitions against withdrawals below a certain balance, allowing for transfer of income derived from the reserve fund, and requiring the Treasurer of State to annually certify amounts needed to be appropriated, if any, to restore reserve fund balances if they fall below required amounts.

   The Department of General Services is authorized to sell the state property, including structures, located on the Capitol Complex at the northwest corner of Grand and Pennsylvania Avenues upon which a parking structure is being developed. The department may enter into an agreement with a public or private entity for development, operation or maintenance of the parking structure and for a long-term lease of office space located adjacent to the parking structure. The Act allows previous appropriations made in 1998 and 1999 for parking structure development to be used for the agreement and lease and for reimbursements received to be credited to those appropriations.

   The Act takes effect July 5, 2001, and applies retroactively to July 1, 2001.

HOUSE FILE 706 - Appropriations -- Energy Conservation Programs Funding (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act appropriates moneys for FY 2001-2002 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.

HOUSE FILE 718 - 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, the State University of Iowa (SUI), the University of Northern Iowa, Iowa State University of Science and Technology (ISU), the Department of Workforce Development, and the Public Employment Relations Board.

   The Act makes a number of appropriations from the General Fund of the State to the following:

• The Department of Economic Development and the Department of Workforce Development for the administration of those departments and for specific programs and funds.
• The University of Iowa for the SUI Research Park and the Advanced Drug Development Program at the Oakdale Research Park.
• The University of Northern Iowa for the Metal Casting Institute and the Institute of Decision Making.
• Iowa State University for funding and maintaining existing small business development centers, the ISU Research Park, and the Institute for Physical Research and Technology.
• The Public Employment Relations Board.

   The Act appropriates moneys from the Iowa Community Development Loan Fund to the Department of Economic Development for the Community Development Program.

   The Act appropriates moneys from the Job Training Fund to the Department of Workforce Development for phaseout funding for exiting labor management projects and for transfer to the Workforce Development Fund. The Act also appropriates moneys from the Workforce Development Fund Account to the Workforce Development Fund for purposes of the Workforce Development Fund. The Act allows up to $400,000 from the Workforce Development Fund to be used by the Department of Workforce Development for administrative purposes. The Act amends the allocation of moneys in the Workforce Development Fund to be used for the Job Training Fund and for the High Technology Apprenticeship Program.

   The Act appropriates moneys from the Administrative Contribution Surcharge Fund to the Department of Workforce Development for workforce development centers and for conducting labor market surveys. The Act appropriates any moneys remaining in the fund on June 30, 2001, and the entire amount collected during FY 2001-2002.

   The Act appropriates moneys from the Special Employment Security Contingency Fund to the Department of Workforce Development for the Division of Workers’ Compensation, immigration service centers, and the collection of labor market information.

   The Act appropriates moneys from the Community Attraction and Tourism Fund to the Department of Economic Development for tourism operations.

   The Act requires the liquidation, dissolution or sale of the Iowa Seed Capital Corporation to be completed by December 31, 2001.

   The Act amends provisions from the 1999 and 2000 Iowa Acts by adding or extending nonreversion language to certain appropriations relating to Welfare-to-Work Grants, the New Employment Opportunity Fund, workforce development centers, and immigration service centers. These provisions take effect May 30, 2001.

   The Act amends the statutory amount that shall be transferred to the Workforce Development Fund Account from $8 million in any year to $4 million in any year and makes corresponding amendments.

   The Act amends the age requirements for participants in amateur boxing contests to be consistent with the age requirements of USA Boxing Incorporated, or its successor organization.

   The Act amends the provisions of the Job Training Fund to allow moneys in the fund to be used by a community college to conduct entrepreneur development and support activities.

   The Act, for FY 2001-2002, moves $3 million of certificate of title surcharge moneys from the Road Use Tax Fund to the General Fund of the State.

   The Act provides that the Department of Economic Development shall explore allocating shelter assistance moneys to homeless shelter programs based in part on their ability to move their clients toward self-sufficiency.

   The Act requires the departments of Economic Development and Workforce Development to submit budget proposals in the traditional format as well as in the budgeting for results format.

   The Act requires the ISCC Liquidation Corporation (formerly the Iowa Seed Capital Corporation) to submit a written report relating to the activities of the corporation during the previous year.

   The Act reduces the standing limited appropriation for School-to-Career Program employer refunds from $500,000 to $35,000 for FY 2001-2002.

   THE GOVERNOR ITEM VETOED THE FOLLOWING PROVISIONS:

1. A provision prohibiting the Department of Workforce Development from allocating any additional penalty and interest revenue prior to January 30, 2002.
2. A provision appropriating moneys from the Iowa Finance Authority to the Department of Economic Development for purposes of providing technical assistance to communities and local financial institutions to help meet local housing needs and for the Shelter Assistance Fund.
3. A provision requiring the Iowa Finance Authority to transfer $1.2 million to the Department of Economic Development for deposit in the Community Development Block Grant Account to be used as state matching funds for the federal HOME Program.

HOUSE FILE 719 - Appropriations -- State Government Technology and Operations (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to state government technology and operations by making appropriations to a number of entities concerned with technology and by making appropriations for a number of specific technology projects.

   The Act makes appropriations for FY 2001-2002 from the General Fund of the State for debt service for the Iowa Communications Network (ICN), for subsidization of operations of the network as a result of charging authorized users video rates which generate less revenue than necessary to cover associated costs of the network, for support functions related to the network provided by the Public Broadcasting Division of the Department of Education, for regional telecommunications councils for information technology services provided by the Information Technology Department to other state agencies, and for the support of specified full-time equivalent positions.

   The Act appropriates $13 million from the Rebuild Iowa Infrastructure Fund to the Pooled Technology Account under the control of the Information Technology Department for the purpose of supporting various technology programs. Designated amounts are allocated from the Pooled Technology Account in descending priority order to the Department of Education for transfer to the Community College Vocational-Technical Technology Improvement Program, the University of Northern Iowa (UNI) for developing a Twenty-First Century Learning Initiative, the Department of Education for the purpose of making technology available to students of accredited nonpublic schools, the Iowa Telecommunications and Technology Commission for maintenance and lease costs associated with Part III connections of the ICN, the Information Technology Department for costs related to the Justice Data Warehouse Technology Project, the Information Technology Department for implementation of an enterprise data warehouse, the Secretary of State’s Office to replace the voter registration system, the Department of Workforce Development for automation of the unemployment system, and the Department of Agriculture and Land Stewardship for the E-Commerce Electronic Licensing Project. The Act provides that remaining amounts in the Pooled Technology Account shall be allocated to implement the recommendations of the Information Technology Council.

   The Act provides funding of $1 million for IowAccess. The funding is provided by the transfer to the Information Technology Department of the first $1 million collected by the Iowa Department of Transportation for transactions involving the furnishing of a certified abstract of a vehicle operating record. The Act provides that the Information Technology Council shall report the establishment of a new rate to be charged for access to and for value-added services performed through IowAccess, or a change in the level of an existing rate, to the Department of Management, and the department must notify the Legislative Fiscal Bureau regarding the rate establishment or change.

   The Act provides that the Information Technology Department may establish a pilot project for fee collection for the fiscal years beginning July 1, 2002, and ending June 30, 2005, with revenue deposited into the Pooled Technology Account.

   The Act modifies provisions in Code Section 304.13A regarding electronic records to provide that an agency which produces or makes available for public inspection written reports or newsletters on and after July 1, 2001, shall maintain the report or newsletter in an electronic form.

   The Act amends the 2000 Iowa Acts to allocate $1.4 million for debt service for the ICN.

   The Act provides that certain appropriations made for FY 2000-2001 are not to revert but are to be used for the purposes for which appropriated for FY 2001-2002.

   The Act requests that the Legislative Council establish an interim study committee relating to distance learning and related ICN educational issues with the objective of the study being to evaluate the viability of establishing the state of Iowa as a distance learning center.

   Provisions of the Act dealing with allocations of appropriations previously made for FY 2000-2001 take effect May 30, 2001.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. Language requiring the Information Technology Department to notify the Department of Management prior to any fee increases.
2. Allocations from amounts contained in the Pooled Technology Fund for the enterprise data warehouse, justice data warehouse, Department of Agriculture and Land Stewardship e-commerce electronic licensing, and the Department of Workforce Development automated unemployment system.
3. A provision prohibiting the Information Technology Department from spending any pooled technology dollars on asynchronous transfer mode network conversion for the ICN, an enterprise resource planning system, or digital broadcasting facilities for Iowa Public Television.
4. A provision exempting UNI from consulting with the Information Technology Department to ensure that purchases and contracts for twenty-first century learning infrastructure are compatible with other state agencies.
5. An allocation of fees that the judicial branch collects for online information transactions into the Pooled Technology Fund.
6. Language establishing that amounts contained in the Pooled Technology Fund may be utilized for the Community College Vocational-Technical Improvement Program in future years.

HOUSE FILE 725 - 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 (DNR). Generally, moneys are appropriated from the General Fund of the State. However, in some cases, moneys are appropriated from special funds and accounts and fees. The Act contains several special effective dates.

   GENERAL FUND OF THE STATE APPROPRIATIONS. The Act appropriates moneys from the General Fund of the State to the Department of Agriculture and Land Stewardship and the DNR. For the Department of Agriculture and Land Stewardship, moneys are appropriated to support the Administrative Division, the Regulatory Division, the Laboratory Division, and the Soil Conservation Division. For the DNR, moneys are appropriated to Administrative and Support Services, the Parks and Preserves Division, the Forests and Forestry Division, the Energy and Geological Resources Division, and the Environmental Protection Division.

   The Act appropriates moneys from the General Fund of the State to support a number of programs. Moneys are specifically appropriated to the Department of Agriculture and Land Stewardship to support the Farmers’ Market Coupon Program; the State Apiarist; livestock market news reporting; the eradication of gypsy moth infestations; and the operations of commercial feed programs, pesticide programs, and fertilizer programs. The Act also appropriates moneys to support programs related to animal health and industry, including for the eradication of pseudorabies and to support the racing horse and dog industries in the state.

   APPROPRIATIONS FROM SPECIAL FUNDS AND ACCOUNTS AND FEES. The Act appropriates moneys from the Brucellosis and Tuberculosis Eradication Fund to the Department of Agriculture and Land Stewardship to be used as necessary to implement security measures for outbreaks of foreign agricultural animal diseases such as foot and mouth disease.

   The Act makes an appropriation from special funds and accounts and fees to support a number of activities by the DNR. It appropriates moneys from the State Fish and Game Protection Fund to support the Fish and Wildlife Division. Of this amount, moneys are allocated to support retiring conservation peace officers. An appropriation is made from the Unassigned Revenue Fund administered by the Iowa Comprehensive Underground Storage Tank Fund Board to the DNR for administration and expenses of the Underground Storage Tank Section.

   TRANSFERS. The Act provides for a number of transfers, including transfers of snowmobile and vessel fees to the Fish and Game Protection Fund for purposes of administration and enforcement of related laws and programs. The Act appropriates moneys from marine fuel tax receipts to the DNR for purposes of maintaining and developing boating facilities and access to public waters. The Act appropriates moneys collected by the DNR for issuing stormwater discharge permits for use by the Energy and Geological Resources Division and the Environmental Protection Division. The Act authorizes the DNR to use the additional moneys for staffing as is necessary to reduce the department’s floodplain permit backlog and implement the Federal Total Maximum Daily Load Program. The Act also appropriates moneys from the Hazardous Substance Remedial Fund to pay the department’s workers’ compensation insurance premium.

   MISCELLANEOUS. The Act requests the Legislative Council to establish an interim study committee to study the quality of the state’s surface and subsurface waters. The Act requires that the DNR keep open state parks with moneys produced from the department’s increases in fees for parks and recreation areas. It also requires that the department continue to process permit applications notwithstanding staffing considerations.

   CODE CHANGES. The Act amends Code Chapter 169, regulating of livestock brands by the Department of Agriculture and Land Stewardship, including by providing a $25 fee for recording and renewing a brand, establishing a Branding Administration Fund for use by the department in administering and enforcing the chapter, and providing for the deposit of the fees into the fund.

   EFFECTIVE DATES. The following provisions take effect May 25, 2001:

• A provision appropriating moneys from stormwater discharge permit fees to support the DNR’s Energy and Geological Resources Division and Environmental Protection Division.
• A provision that appropriates moneys from the Brucellosis and Tuberculosis Eradication Fund to the Department of Agriculture and Land Stewardship to support security measures to control foreign agricultural animal diseases.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

• A provision appropriating moneys from the Groundwater Protection Fund to the Department of Agriculture and Land Stewardship to support operations of the department’s pesticide programs.
• A provision that appropriates moneys from the Forestry Management and Enhancement Fund to the Department of Agriculture and Land Stewardship for the eradication of gypsy moth infestations.

HOUSE FILE 726 - 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 Office of Drug Control Policy, the Iowa Department of Public Health, the Department of Human Rights, and the Commission of Veterans Affairs. Generally, moneys are appropriated from the General Fund of the State. However, in some cases, moneys are appropriated from special funds and accounts.

   CIVIL RIGHTS COMMISSION. The Act authorizes the commission to exceed its designated staffing level to hire additional staff to process employment and housing complaints if the anticipated amount of federal funding actually received is greater than anticipated.

   DEPARTMENT OF ELDER AFFAIRS. The Act appropriates funds to the Department of Elder Affairs for aging programs to provide Iowans 60 years of age and older with case management for the frail elderly, Alzheimer’s support, retired senior volunteer programs, resident advocate committee coordination, employment, and other services that may include, but are not limited to, mental health outreach, adult day care, respite care, chore services, telephone reassurance, information and assistance, home repair services, including the winterizing of homes, and for the construction of entrance ramps that make residences accessible to the physically handicapped.

   The Act provides the intent of the General Assembly that the Iowa chapters of the Alzheimer’s Association and Case Management Program for Frail Elders 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.

   The Act also permits the department to grant an exception for a limited period of time, or modify applicable requirements, relating to compliance by persons regulated by the department or applicants for assisted living certification with any part of Code Chapter 104A concerning the conversion of buildings existing on July 1, 1998, to accessibility for persons with disabilities.

   GOVERNOR’S OFFICE OF DRUG CONTROL POLICY. The Act appropriates funds to the Governor’s Office of Drug Control Policy, including statewide coordination of the Drug Abuse Resistance Education (DARE) Program.

   DEPARTMENT OF PUBLIC HEALTH. The Act appropriates funds to the Iowa Department of Public Health, including funds for addictive disorders related to reducing the use of tobacco, alcohol and other drugs, and treating individuals affected by addictive disorders, including gamblers; for adult wellness, relating to maintaining or improving the health status of adults with target populations between the ages of 18 and 60; for child and adolescent wellness, relating to promoting the optimum health status for children and adolescents from birth through 21 years of age; for chronic conditions, relating to serving individuals identified as having chronic conditions or special health care needs; for community capacity, relating to strengthening the health care delivery system at the local level; and for elderly wellness, for optimizing the health of persons over 60 years of age.

   The Act also appropriates funds for public protection, relating to protecting the health and safety of the public through the establishment of standards and the enforcement of regulations. The department may expend funds received from licensing fees if those additional expenditures are directly the result of a scope of practice review committee, or unanticipated litigation costs approved by the Director of the Department of Management in an amount not to exceed 5 percent of the average annual fees collected for the previous two fiscal years.

   The Act further authorizes the department to retain fees collected from the certification of lead inspectors and lead abaters to support the certification program, and also authorizes the department to retain fees collected from the licensing, registration, authorization, accreditation, and inspection of x-ray machines used for diagnostic mammography to support the department’s regulation of radiation machines and radiation materials. The Act also allows the department to retain fees charged to shippers of radioactive material waste containers transported across Iowa for oversight and regulation purposes.

   The Act also authorizes the department to retain fees collected from shippers of radioactive waste material containers transported across Iowa if the department does not obtain funding to support the oversight and regulation of this activity, and for x-ray radiology examination fees collected by the department and reimbursed to a private organization conducting the examination.

   The Act also authorizes the department to retain and expend moneys for lease and maintenance expenses for the relocation of licensure boards from the Executive Hills State Office Building from fees collected by the boards of Dental, Pharmacy, Medical, and Nursing Examiners for FY 2001-2002. The Act authorizes the department to retain and expend moneys from fees collected by the Board of Medical Examiners for reduction of the number of days necessary to process medical license requests and for reduction of the number of days needed for consideration of malpractice cases. The Act additionally authorizes the Board of Dental Examiners, for FY 2001-2002, to retain and expend moneys from licensing and examination revenues.

   Effective May 24, 2001, the Act also provides that for the period ending June 30, 2002, the State Board of Medical Examiners, the State Board of Pharmacy Examiners, the State Board of Dental Examiners, and the State Board of Podiatry Examiners shall not take any action against licensees who use an automatic dispensing system for prescription drugs in the absence of a pharmacist or practitioner provided that certain conditions are met. The Act also provides that the aforementioned boards shall meet to identify a statutory resolution of the issues raised by the use of automated dispensing systems for prescription drugs and submit their findings and legislative recommendations to the Governor and the General Assembly by December 1, 2001.

   DEPARTMENT OF HUMAN RIGHTS. The Act appropriates funds to the seven divisions of the Department of Human Rights.

   COMMISSION OF VETERANS AFFAIRS. The Act appropriates funds to the Commission of Veterans Affairs for the Commission of Veterans Affairs administration and the Iowa Veterans Home and allows the Iowa Veterans Home to retain reimbursements for medication costs obtained from the federal Department of Veterans Affairs for FY 2001-2002 in an amount sufficient for the payment of new and increased pharmaceutical costs and lease payments on a unit dose machine.

   GAMBLING TREATMENT FUND APPROPRIATIONS. The Act appropriates funds available in the Gambling Treatment Fund to the Iowa Department of Public Health for the Addictive Disorders Program and for transfer to the Commission of Veterans Affairs for the Iowa Veterans Home. Any funds remaining in the Gambling Treatment Fund after the aforementioned appropriations are to be used for funding of administrative costs and programs which may include, but are not limited to, outpatient and follow-up treatment for persons affected by problem gambling, rehabilitation and residential treatment programs, information and referral services, education and preventive services, and financial management services.

   The Act further provides that an amount of the tax revenue received by the State Racing and Gaming Commission equal to 0.3 percent of the gross sum wagered by the pari-mutual method is to be deposited into the Gambling Treatment Fund for FY 2001-2002.

   OTHER PROVISIONS. The Act amends Code Section 135.102, regarding the Childhood Lead Poisoning Prevention Program in the Department of Public Health. The Act requires the department to adopt rules regarding model regulations to be used in instances in which a child is confirmed lead poisoned.

   The Act increases the Drug Abuse Resistance Education (DARE) surcharge from $5 to $10 for operating while intoxicated offenses and offenses relating to the possession, manufacture or delivery of controlled substances. The Act also provides that revenues from the DARE surcharge may be utilized for the DARE Program and other similar programs.

   The Act provides for a study regarding comprehensive cancer control in the state. The study shall be conducted by the Director of Public Health, in consultation with an ad hoc committee comprised of public health officials, health care providers, consumer groups, educators, representatives from the state cancer registry, representatives from the cancer chapter team of Healthy Iowans 2010, and other members deemed appropriate by the director.

   The Act requires the Iowa Veterans Home to submit a report to the Legislative Fiscal Committee by December 1, 2001, regarding funding and budget practices.

   The Act extends the Vital Records Modernization Project until June 30, 2002, and allows until that date the continued collection of increased fees for birth, marriage, death, and other vital records which are part of the project.

HOUSE FILE 732 - Appropriations -- Human Services (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act provides appropriations to the Department of Human Services (DHS) for FY 2001-2002 and includes provisions relating to human services and health care.

   EARLY CHILDHOOD. The Act provides that federal Temporary Assistance for Needy Families (TANF) Block Grant moneys appropriated in 1998 and 2000 are to be used for funding of community-based programs targeted to children from birth through five years of age and developed by community empowerment areas. The Act allows DHS to transfer federal TANF funds to the Child Care and Development Block Grant and then allocate funding to community empowerment areas based upon criteria in the Act. Moneys not distributed or which otherwise remain unobligated or unexpended at the end of the fiscal year revert to the fund for federal grants in the state treasury. The Act provides a funding formula for distribution of the moneys.

   TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF). The Act appropriates moneys from the TANF Block Grant Fund for the state fiscal year beginning July 1, 2001. Uses for the moneys appropriated include the following: the Family Investment Program; field operations; general administration; local administrative costs; child care assistance, including provision of educational opportunities to registered child care home providers; emergency assistance; mental health and developmental disabilities community services; child and family services; child abuse prevention; pregnancy prevention grants to be based on criteria specified in the Act; technology needs and other resources to meet federal welfare reform requirements; volunteers; individual development accounts; and Healthy Opportunities for Parents to Experience Success (HOPES) Program.

   FAMILY INVESTMENT PROGRAM (FIP). The Act provides an appropriation for FIP. 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. Consequently, the Act includes FIP and FIP-related program appropriations from the General Fund of the State and from the fund created for receipt of federal funds. These appropriations are directed to the Food Stamp Employment and Training Program, the Family Development and Self-Sufficiency Grant Program, income maintenance reengineering, and for the diversion program and incentive grants.

   The Act directs the department to continue expansion of the Electronic Benefits Transfer (EBT) Program with a target date for statewide implementation of October 1, 2002. The Act provides that it is the intent of the General Assembly that electronic funds transfer system equipment provided by a retailer be utilized to the extent practicable for EBT transactions for the purchase of food from the retailer. The Act provides that TANF funds allocated for the EBT Program that remain unexpended or unobligated at the close of FY 2000-2001 are to remain available for this purpose in the succeeding fiscal year. This provision takes effect May 31, 2001.

   EMERGENCY ASSISTANCE. The Act increases the previous level of funding for the Emergency Assistance Program. The Act continues the maximum grant level of $500 per family in any 12-month period. The Act requires DHS to continue the process for retaining and redistributing refunds or rent deposits returned to the state under the Emergency Assistance Program. The Act continues the allocation to the Community Voice Mail Program and the requirement for the submission of semiannual reports to DHS regarding participation in the program.

   CHILD SUPPORT RECOVERY. The Act decreases the previous level of funding for child support recovery. The Act requires the Child Support Recovery Unit (CSRU) to continue to work with the judicial branch to determine the feasibility of a pilot project using a court-appointed referee for determination of child support awards, if initiated by the judicial branch. The Act directs DHS to expend up to $51,000, including federal financial participation, to continue the Child Support Public Awareness Campaign located in the Office of the Attorney General, and provides that surcharges paid by obligors and received by CSRU, as a result of referral of support delinquencies by CSRU to any private collection agency, are appropriated to DHS to pay the costs of any contracts with the collection agencies. The Act also directs the department to issue federal access and visitation grant moneys directly to private not-for-profit agencies that provide services designed to increase compliance with the child access provisions of court orders, including but not limited to neutral visitation site and mediation services.

   MEDICAL ASSISTANCE (Medicaid). Overall the Act increases the appropriation for medical assistance (MA) in comparison with the FY 2000-2001 appropriation. In addition, appropriations affecting reimbursements to various MA services providers were made from Tobacco Settlement Funds (see S.F. 537) and in the Senior Living Trust Fund legislation (see H.F. 740). The Act does all of the following:

• Continues the authorization for DHS to transfer funds appropriated for MA to a separate account for expenditures required to provide case management services under MA for mental health, mental retardation, and developmental disabilities services that are jointly funded by the state and county, pending final settlement of expenditures.
• Provides for the continuation of the previously established AIDS/HIV Health Insurance Premium Payment Program.
• Transfers $950,000 from the Iowa Department of Public Health to the MA Program for continuation of the Integrated Substance Abuse Managed Care System.
• Directs DHS, in administering the MA home and community-based waiver for persons with physical disabilities, to provide that the total number of openings for persons with physical disabilities served at any one time is limited to the number approved in the waiver by the Secretary of the U.S. Department of Health and Human Services. The openings are to be filled on a first-come, first-served basis.
• Directs DHS, in consultation with the Iowa Department of Public Health and the Department of Education, to continue to utilize the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) funding under MA to the extent possible to implement the screening component of the EPSDT Program through the school system, and utilize maternal and child health centers, the Public Health Nursing Program, or school nurses.
• Directs DHS to continue the MA waiver for home and community-based services to allow children with mental retardation, who would otherwise require ICF/MR care, to be served in out-of-home settings of up to eight beds.
• Directs DHS to continue working with county representatives in aggressively implementing the rehabilitation option for services to persons with chronic mental illness under the MA Program and provides that county funding shall be used to provide the match for federal funding, except for individuals with state case status for whom state funding shall provide the match.
• Directs DHS, if the Health Care Financing Administration of the U.S. Department of Health and Human Services approves a waiver request from DHS, to provide a period of 24 months of guaranteed eligibility for MA family planning services, regardless of the change in circumstances of a woman who was an MA recipient when the pregnancy ended.
• Provides that the department may establish up to eight full-time equivalent (FTE) positions to replace fiscal agent staff positions within the medical review and pharmacy units.
• Directs the department to aggressively pursue options for providing MA or other assistance to individuals with special needs who become ineligible to continue receiving services under the EPSDT Program due to reaching 21 years of age, who have been approved for additional assistance under the exception to policy provisions but who have health care needs in excess of funding available through the exceptions to policy process.
• Provides that $200,000 shall be used to increase reimbursement of child protection centers.
• Directs the department to adopt rules to provide that an individual applying for the Medically Needy Program is not required to reapply for the program unless the income disclosed in the initial application changes. The Act also directs that to the greatest extent possible, the application and continuing eligibility requirements for all MA-related programs shall be consistent.
• Provides that if federal funding is received, the department may participate in the federal Home Telecare Pilot Program.

   HEALTH INSURANCE PREMIUM PAYMENT PROGRAM. The Act provides an increase in the appropriation compared with FY 2000-2001 for the Health Insurance Premium Payment Program.

   CHILDREN’S HEALTH INSURANCE PROGRAM. The Act appropriates $8.4 million to DHS for maintenance of the State Children’s Health Insurance Program and receipt of federal financial participation. The Act authorizes DHS to transfer funds appropriated to be used to expand health care coverage to children under MA. The Act provides that moneys in the HAWK-I Trust Fund are appropriated and shall be used to offset any program costs for FY 2001-2002.

   MEDICAL CONTRACTS. The Act provides an increase in the appropriation compared with FY 2000-2001. The Act provides that the Director of Human Services may establish up to eight FTE positions to replace fiscal agent staff positions within the medical review and pharmacy units.

   The Act provides that in any managed care contract for mental health or substance abuse services entered into or extended by DHS on or after July 1, 2001, the request for proposals shall provide for coverage of dual diagnosis mental health and substance abuse treatment provided by the State Mental Health Institute at Mount Pleasant. Additionally, to the extent possible, DHS is to amend any such contract existing on July 1, 2001, to provide for such coverage.

   STATE SUPPLEMENTARY ASSISTANCE (SSA). The Act decreases this appropriation compared with the previous fiscal year. The Act directs DHS to increase the personal needs allowance of residential care facility residents at the same percentage and at the same time the federal benefits are increased. The Act authorizes DHS to take necessary actions to ensure that federal requirements are met and authorizes the transfer of moneys from the MA Program if projections indicate that the amount appropriated for SSA is insufficient and the funds proposed to be transferred are in excess of the funds necessary for the MA Program. The Act also authorizes DHS to use up to $75,000 for a rent subsidy program for certain adults who are receiving assistance under an MA home and community-based services waiver and who were discharged from a medical institution in which they resided or were at risk of institutional placement.

   CHILD CARE ASSISTANCE. This appropriation maintains the current level of funding from the State General Fund for child care assistance. However, the TANF appropriation is significantly increased. The appropriation provides funding for the State Child Care Assistance Program and child day care resource and referral services. The Act requires DHS to use moneys deposited in the Child Care Credit Fund for the State Child Care Assistance Program.

   JUVENILE INSTITUTIONS. The Act makes appropriations to the Iowa Juvenile Home at Toledo and the State Training School at Eldora. The appropriation to the State Training School at Eldora continues the limitation on the population levels to the population guidelines established in 1990 as adjusted for additional beds developed at the institutions and provides for use of funds appropriated for grants for adolescent pregnancy prevention services.

   CHILD AND FAMILY SERVICES. The Act decreases this appropriation compared with the previous fiscal year. The Act provides for continuation of the funding cap for group foster care and provides that if annualization of a region’s current expenditures indicates that the region is at risk of exceeding its overall expenditure target by more than 5 percent, DHS and Juvenile Court Services are to examine current group foster care placements to identify children who may be appropriate for termination from the program. Dispositional hearings are to be set for those so identified. The provision relating to the expenditure targets takes effect May 31, 2001. The Act limits the amount that may be expended under the appropriation for psychiatric medical institutions for children (PMICs) and provides that all or a portion of the moneys allocated for PMICs may be transferred to the appropriation for medical assistance. However, S.F. 458 (see Children & Youth) prohibits inclusion of PMICs other than substance abuse PMICs in the medical assistance managed care contract without specific legislative authorization.

   The Act allocates funding for 50 highly structured juvenile program beds (informally known as "boot camp" beds), and provides that if the authorized number of beds is not utilized, the remaining funds may be used for group foster care. The Act provides that the statutory requirements relating to the funding cap for group foster care, which apply to the juvenile court, are to continue to apply instead to the Juvenile Court Services staff. The Act directs DHS to continue the goal that not more than 15 percent of children placed in federally funded foster care be placed for more than 24 months.

   The Act authorizes DHS to continue decategorization of child welfare services funding; authorizes the use of funding for emergency family assistance in certain circumstances; limits funding for shelter care services; provides funding for improving DHS staffing of foster care and adoption services; provides for adoption of administrative rules by DHS, in consultation with child welfare services providers, to implement outcome-based child welfare services pilot projects; directs DHS to continue to make adoption presubsidy and adoption subsidy payments available at the beginning of the month for the current month and provides that if DHS receives any bonus or incentive payments from the federal government relating to adoption that may be used to supplement state funds, the department shall use a specified portion for adoption recruitment; provides that any federal funds received by the state during state fiscal year 2001-2002 as a result of state funds appropriated during the previous state fiscal year for a service or activity funded under the Child and Family Services Section are to be used as additional funding for the services provided under the section and are to remain available until June 30, 2003; directs DHS and Juvenile Court Services to continue to develop criteria for the department regional administrator and chief juvenile court officer to grant exceptions to extend eligibility, within the funds allocated, for intensive tracking and supervision and for supervised community treatment to delinquent youth beyond age 18 who are subject to release from an out-of-home placement; provides funding for clinical assessment services; provides funding for protective child care assistance; provides funding for court-ordered services provided to juveniles (the portion of this provision relating to determination of allocation of this funding among regions takes effect May 31, 2001); eliminates special funding to reduce the number or length of out-of-home placements known as the "Wrap-Around Funding Program"; provides funding for school-based supervision of children adjudicated delinquent and directs that to the extent possible, school-based supervision personnel shall be prepared with training or experience relating to gender-specific programming; directs DHS to maximize the capacity to draw federal funding under the federal Title IV-E Program; and provides that the department may operate a subsidized guardianship program if the program can be operated under a waiver from the federal government without loss of Title IV-E funds.

   JUVENILE DETENTION HOME FUND. The Act creates a Juvenile Detention Home Fund consisting of funds collected by the Iowa Department of Transportation (IDOT) at the time IDOT suspends, revokes or bars a person’s motor vehicle license or nonresident operating privileges. Moneys in the fund are to be used for the costs of the establishment, improvement, operation, and maintenance of county or multicounty juvenile detention homes. The Act provides for distribution of the moneys in the fund as follows: an amount equal to 10 percent of the costs of the establishment, improvement, operation, and maintenance of county or multicounty juvenile detention homes in the fiscal year beginning July 1, 2000, up to the amount appropriated for eligible detention homes; $80,000 for renewal of a grant to a county with a population between 168,000 and 175,000 for implementation of a county’s runaway treatment plan; for grants to counties implementing a runaway treatment plan; and the remainder for additional allocations to county or multicounty juvenile detention homes.

   CENTRAL INTAKE FOR CHILD PROTECTION. The Act appropriates $250,000 to DHS to establish a statewide central intake unit to receive child abuse reports, if statutorily authorized by the General Assembly in the 2002 Legislative Session.

   COMMUNITY-BASED PROGRAMS. The State General Fund appropriation is increased by the amount of funding provided for child abuse prevention grants that were funded in the previous fiscal year with TANF funding. Funds are to be used to provide adolescent pregnancy prevention grants that are broad-based, focus on abstinence, and are targeted to middle schools. The Act provides that it is the intent of the General Assembly that DHS and the Iowa Department of Public Health continue to identify existing abstinence education or community-based programs that comply with the requirements of federal law to match federal abstinence education funds. The Act provides moneys for child abuse prevention grants.

   FAMILY SUPPORT SUBSIDY PROGRAM. The Act increases the program funding relative to the previous fiscal year.

   MENTAL HEALTH INSTITUTES. The Act provides appropriations to institutes at Cherokee, Clarinda, Independence, and Mount Pleasant. The Act directs the institute at Independence to continue the 30-bed PMIC facility under the net state budgeting approach and in a manner that does not expend state funds in excess of the funds appropriated or make counties responsible for the costs. The Act designates the revenues attributable to PMIC beds that are to be deposited in the institute’s account. The Act directs the Mount Pleasant institute to continue the dual diagnosis unit to provide psychiatric treatment and substance abuse treatment simultaneously on a net budgeting basis, designates the revenues attributable to dual diagnosis which are to be deposited in the institute’s account, provides that the cost of treating a dual diagnosis is to be charged one half to the patient’s county of residence and the other half to the state, and specifies payment provisions relating to county payment of dual diagnosis treatment. The Act authorizes DHS to provide persons being discharged from an institute with assistance in obtaining federal Supplemental Security Income benefits.

   STATE RESOURCE CENTERS. This appropriation is an increase for the State Resource Center at Glenwood and a decrease for the State Resource Center at Woodward compared with appropriations for the previous fiscal year. The Act directs DHS to continue operating the state resource centers with a net State General Fund appropriation. Subject to the approval of DHS, revenues attributable to the state resource centers for FY 2001-2002 are to be deposited into each center’s account, and the Act designates the funding sources that are to be so deposited.

   SPECIAL NEEDS GRANTS AND STATE CASES. The Act maintains the current level of funding for the Special Needs Grants Program. The appropriation for MH/DD state cases is decreased compared with the previous year’s appropriation.

   MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES (MH/DD) SERVICES FUNDING. The Act includes a number of provisions affecting provision of state funding of MH/DD services provided by counties, including the following:

• The months in which counties receive the property tax relief payments of approximately $90 million annually are changed from September to July and from March to January.
• Under current law, the state is required to annually provide funding for the growth in county MH/DD services expenditures. The Act changes the amounts and the distribution of the approximately $26.5 million appropriated for growth and the approximately $19.5 million appropriated for the MH/DD Community Services Fund. The first appropriation is reduced by $1.6 million and the total of both appropriations is reduced by approximately $15.5 million.
• In order to spread the $15.5 million reduction among counties, the Act provides that the funding formulas for the appropriations are applied as though the appropriations were not reduced, but then a withholding factor is applied to each county’s formula amount, based upon a sliding scale according to the relative size of the ending balance in the county’s MH/DD services fund.
• Unless a county complies with an existing statutory requirement for the December 1 filing of the annual financial statement with the state, the county is not eligible for any MH/DD growth or community services fund distribution.

   PERSONAL ASSISTANCE. This appropriation is a decrease in the funding level for this pilot program for adult persons with physical disabilities in an urban and a rural area compared with the previous fiscal year. The Act prohibits the pilot project and any federal home and community-based waiver developed under the MA Program from being implemented in a manner that would require additional county or state costs for assistance provided. The Act also provides that beginning July 1, 2001, new applicants shall not be accepted and an individual receiving services as of June 30, 2001, is to continue receiving services until the individual voluntarily leaves the project or until a program with similar services exists.

   SEXUALLY VIOLENT PREDATORS. This appropriation provides for payment of costs associated with the commitment and treatment of sexually violent predators. The Act also provides that $350,000 of the moneys appropriated for FY 2000-2001 for the program that remain unexpended or unobligated at the close of that fiscal year shall not revert to the General Fund of the State but shall remain available in the succeeding fiscal year for the purposes of the program. The provision relating to nonreversion of funds takes effect May 31, 2001.

   FIELD OPERATIONS, GENERAL ADMINISTRATION, AND VOLUNTEERS. The appropriation for field operations is decreased compared with the appropriation for FY 2000-2001. The Act provides that priority in filling FTE positions shall be given to those positions related to child protection services and provides that the appropriation includes increased funding of $1,212,197 to address staffing issues related to child protection services.

   The appropriation for general administration is a decrease compared with the prior fiscal year. The Act allocates $57,000 for the Prevention of Disabilities Council.

   The appropriation for volunteers maintains the previous fiscal year appropriation.

   ADDITIONAL FEDERAL FUNDING. The Act authorizes DHS to pursue approval of a state Medical Assistance Program plan amendment to use MA funding for targeted case management services to children at risk of maltreatment or in need of protective services. The Act appropriates any additional federal financial participation to DHS. Amounts in excess of $3 million may be used for additional child protection staff, administrative costs, and community grants.

   MEDICAL ASSISTANCE, STATE SUPPLEMENTARY ASSISTANCE, AND SOCIAL SERVICE PROVIDERS REIMBURSED UNDER THE DEPARTMENT OF HUMAN SERVICES. The Act establishes reimbursement rates for social services providers. However, see S.F. 537 and H.F. 740 for increases in reimbursements to some of these providers.

   The Act provides all of the following for fiscal year 2001-2002:

• Reimbursement for nursing facilities shall be determined under a case mix reimbursement system.
• Pharmacy dispensing fees shall be reimbursed using a single rate of $5.17 per prescription or the pharmacy’s usual and customary fee, whichever is lower. The department is directed to implement a series of prospective drug utilization review edits on targeted drugs to facilitate the cost-effective use of drugs and implement the edits in a manner that does not change the therapy or the therapeutic outcome for the patient. Beginning October 1, 2001, the department shall implement a state maximum allowable cost list for prescription drugs. The Governor’s veto message cautions that the short implementation period is very ambitious.
• Reimbursement rates for hospitals for inpatient and outpatient service, home health care agencies, dental services, and community mental health services are to be reduced by 3 percent from the rates in effect on June 30, 2001.
• DHS is required to continue the revised MA payment policy for reimbursement for costs of screening and treatment provided in a hospital emergency room pursuant to the prospective payment methodology developed by DHS for payment of outpatient services under the MA Program.
• Rural health clinics, hospices, independent laboratories, and acute mental hospitals reimbursement rates are to be increased in accordance with increases under the federal MA Program or as supported by Medicare-audited costs.
• Federally qualified health centers shall receive cost-based reimbursement for 100 percent of the reasonable costs of services.
• The maximum reimbursement rates for PMICs shall remain at the rate in effect on June 30, 2001, based on per day rates for actual costs.
• Unless otherwise specified, all noninstitutional medical assistance provider reimbursement rates are reduced by 3 percent from the rates in effect on June 30, 2001, with the exception of area education agencies, local education agencies, infant and toddler services providers, and those providers whose rates are required to be determined under Code Section 249A.20, relating to reimbursement of noninstitutional health providers.
• Notwithstanding Code Section 249A.20, excluding anesthesia and dental services, the average reimbursement rates for health care providers eligible for use of the reimbursement methodology under that section shall be reduced by 3 percent from the rate in effect on June 30, 2001.
• The maximum reimbursement rate for residential care facilities shall not be less than $24.50 per day for the time period July 1, 2001, through December 31, 2001, and shall not be less than $25.14 per day for the time period January 1, 2002, through June 30, 2002. The flat reimbursement rate for facilities electing not to file cost reports is established as not less than $17.50 per day for the time period July 1, 2001, through December 31, 2001, and not less than $17.96 per day for the time period January 1, 2002, through June 30, 2002.
• The maximum reimbursement for providers reimbursed under the in-home health-related care program shall be at least $471.06 per month for the time period July 1, 2001, through December 31, 2001, and shall be at least $483.31 per month for the time period January 1, 2002, through June 30, 2002.
• The foster family basic daily maintenance rate and the maximum adoption subsidy rate is $14.28 for children ages 0 through 5 years, $15.07 for children ages 6 through 11 years of age, $16.83 for children ages 12 through 15, and $16.83 for children over 16 years of age. These rates reflect 70 percent of the U.S. Department of Agriculture regional cost of raising a child.
• The maximum reimbursement rates for social service providers are to remain at the rates in effect on June 30, 2001, unless a specific exception applies.
• 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 the Director of Human Services determines that care cannot be provided within the state, and the rate must be based on the actual number of days in a calendar month.
• The maximum reimbursement rates for rehabilitative treatment and support services providers are to remain at the rates in effect on June 30, 2001.
• The reimbursement rate for shelter care providers is to be calculated using a cost report and the maximum rate shall be $83.69 per day. However, if the provider’s cost report justifies the maximum rate, but DHS would reimburse the provider at less than that rate, DHS is to reimburse a shelter care provider at the provider’s actual and allowable unit cost, plus inflation, not to exceed the maximum reimbursement rate.
• The department is to calculate the reimbursement rate for intermediate care facilities for persons with mental retardation at the 80th percentile.
• Beginning July 1, 2001, DHS is to set child care provider reimbursement rates based on the rate reimbursement survey completed in December 1998. The rates are to be set in a manner so as to provide incentives for nonregistered providers to become registered.
• The department may modify reimbursement rates for providers reimbursed by the department if funding is allocated for that purpose from the Senior Living Trust Fund or as specified in appropriations from the Tobacco Settlement Endowment Fund (see S.F. 537 and H.F. 740).

   TRANSFER AUTHORITY. The Act permits DHS to transfer funding between the following appropriations, provided the combined funding is not changed: Family Investment Program, Emergency Assistance Program, child care assistance, child and family services, field operations, general administration, and MH/MR/DD/BI community services (local purchase).

   FRAUD AND RECOUPMENT ACTIVITIES. The Act permits DHS to expend funds recovered through fraud and recoupment investigations to perform additional fraud investigations as long as the additional investigations are anticipated to recover moneys in excess of both the costs of performing the investigations and the amount recovered in fiscal year 1996-1997. The Act limits the number of additional investigative staff to five.

   ADDITIONAL PROVISIONS. The Act also does all of the following:

• Provides that moneys appropriated for the fiscal year beginning July 1, 2000, for home health care services, home health care services and habilitative day care for children with special needs, and respite care services provided through home and community-based waiver services which are unexpended or unencumbered at the close of the fiscal year shall not revert but are to remain available to be used in the succeeding fiscal year to supplement the MA appropriation made in the Act. This provision takes effect May 31, 2001.
• Provides that moneys appropriated for the fiscal year beginning July 1, 2000, for purchase of service contract providers which are unexpended or unencumbered at the close of the fiscal year shall not revert but are to remain available to be used in the succeeding fiscal year to supplement the medical assistance appropriation made in the Act. This provision takes effect May 31, 2001.
• Provides for additional options for accreditation of PMICs by an accrediting organization that is acceptable under federal regulation.
• Extends the repeal of the Prevention of Disabilities Council to July 1, 2006.
• Creates the Iowa Marriage Initiative Grant Fund within the state treasury for the purposes of funding services to support marriage and to encourage the formation and maintenance of two-parent families that are secure and nurturing. Federal moneys provided to the state for the express purpose of supporting marriage or two-parent families are to be credited to the fund.
• Creates a Juvenile Detention Home Fund in the state treasury. The fund is to consist of funds deposited from the collection of fines by the Iowa Department of Transportation (IDOT) at the time IDOT suspends, revokes or bars a person’s motor vehicle license or nonresident operating privilege. The moneys in the fund are to be used for the costs of the establishment, improvement, operation, and maintenance of county or multicounty juvenile detention homes in accordance with annual appropriations made by the General Assembly from the fund.
• Provides that the reimbursement of a retailer providing electronic funds transfer system equipment for transactions is reduced from 15 cents to 7 cents for each approved transaction and provides that the reimbursement of a retailer providing electronic funds transfer system equipment for transactions who makes cash disbursements is reduced from 15 cents to 7 cents for each cash disbursement transaction.
• Permits the Department of Inspections and Appeals to provide access to a single contact repository for criminal and abuse history checks made by employers, agencies, and other persons authorized access to child abuse information who are required by law to perform such checks.
• Eliminates the specified exemption for individuals with disabilities from participation in a family investment agreement and provides for exemption if rules adopted by the department so provide.
• Provides that funds derived from the settlement with a previous fiscal agent for the MA Program are not to revert to the General Fund of the State but are to remain available for supplementation of the program.
• Provides that funds appropriated in the previous fiscal year for the Pharmacy Case Management Program that remain unencumbered or unobligated at the close of the fiscal year do not revert to the General Fund of the State but are to remain available until the close of FY 2001-2002.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. An appropriation of $500,000 for the Iowa Marriage Initiative Grant Program.
2. Language requiring DHS to report how TANF funding is used to fulfill the four purposes outlined in federal law for the TANF Block Grant.
3. A statement of legislative interest that the EBT Program include the capability for child care service providers to submit billings electronically and to receive payment through electronic funds transfer, and the capability to include electronic verification for medical assistance eligibility. The Governor states that resources for implementation were not provided.
4. Language directing DHS to continue the case study for outcome-based performance standards for programs serving persons with mental retardation or other developmental disabilities. The Governor states that this study has been completed and delivered to the General Assembly.
5. Language directing DHS, in cooperation with the Drug Utilization Review Commission, to review the use of nonsedating antihistamines for children and submit a report to the Governor and the General Assembly on or before November 14, 2001, regarding such use and recommendations regarding application of prior authorization requirements to these drugs. The Governor states that the commission has already reviewed these drugs and further review would not be productive.
6. Language directing DHS to provide a report to the Healthy and Well Kids in Iowa (HAWK-I) Board and to the General Assembly by January 15, 2002, specifying the actual cost reported by each participating insurer of providing monthly coverage to children under the HAWK-I Program.
7. Language directing DHS to seek a federal waiver to permit families with children who are eligible for the Medicaid Program to elect to participate under the HAWK-I Program in lieu of participation in Medicaid. The Act directed DHS to implement the provision if the waiver is approved. The Governor states that this proposal has been rejected by the federal government.
8. Language providing that DHS is to receive input from the chairpersons and ranking members of the Joint Appropriations Subcommittee on Human Services prior to extending any managed care contract for mental health or substance abuse services.
9. A statement of legislative intent that the Iowa Juvenile Home be used only for females beginning July 1, 2002, and directing DHS to develop service options to appropriately place males who would otherwise be placed at Toledo with an option for developing a child in need of assistance program for males at the State Training School at Eldora. The Governor states that funding was not provided to implement the change.
10. An allocation of funding for a parking lot project and for two additional security guard positions at Toledo.
11. Language requiring DHS to provide notice to the legislative branch when a juvenile institution receives a citation regarding noncompliance with a certification or regulatory requirement.
12. Language authorizing DHS to adopt emergency rules regarding the qualifications for rehabilitative treatment service providers and for implementing other recommendations for regulatory improvements.
13. An allocation of funding for day treatment and aftercare services for juvenile females.
14. An allocation of funding appropriated to the Mental Health Institute at Independence for two additional security guard staff positions.
15. A requirement for DHS to provide notice to the legislative branch when a state mental health institute receives a citation for noncompliance with a certification or regulatory requirement.
16. A requirement for DHS to provide notice to the legislative branch when a state resource center receives a citation for noncompliance with a certification or regulatory requirement.
17. An allocation to provide actuarial services for a pilot project to decategorize funding for adult mental health and developmental disabilities services. In addition, an implementation schedule for the pilot project and a related immediate effective date were item vetoed.
18. Language providing for elimination of the regional office administrative level within DHS field operations, beginning July 1, 2001, with transfer of essential staff to the county cluster offices. The language provided that regional geographic areas established as of July 1, 2000, would continue to be used for implementation of other departmental programs that utilize the regions for geographic purposes. The language also directed the Director of Human Services to assign any duties that are otherwise designated as duties of the regional administrator to an appropriate person.
19. Language stating legislative intent that DHS work to expand community partnerships for child protection using the Linn County approach with funding support from the Edna McConnell Clark Foundation and federal financial participation and to secure additional federal financial participation for activities currently funded with state, county or community moneys.
20. Language providing that DHS shall not implement savings reductions for general administration which reduce service funding for disability rehabilitation programs or statewide-supported employment programs or reduce drawdown of federal funding; requiring DHS to report to the Governor, the General Assembly, the Legislative Fiscal Bureau, and the Legislative Service Bureau within 30 days of the notice of future receipt of any bonus, incentive, or other payment that may be used to supplement state funds; and providing that it is the intent of the General Assembly that DHS negotiate with the state of Nebraska to maximize resources, including placement of children of Nebraska residents in an Iowa state resource center and utilization by the department and others of the child protection center in Omaha, Nebraska.
21. Language directing the department to increase efforts to collect pharmaceutical manufacturer rebates in order to meet the national average relative to collection of such rebates.
22. A directive for the department to implement a generic incentive patient copayment program to encourage the dispensing and use of less costly pharmaceutical alternatives and providing that the copayment amount shall be 50 cents for a generic medication and $2 for a brand-name medication.
23. A directive for the department to review and report to specified persons regarding the disparity between the compensation provided to public employees who provide child welfare services relative to employees of private providers with comparable qualifications or job responsibilities.
24. A directive for DHS to eliminate nonessential equipment purchases for the balance of FY 2000-2001 beginning May 31, 2001, and providing that $500,000 of the moneys appropriated for FY 2000-2001 relating to equipment purchases that are unexpended or unencumbered at the close of FY 2000-2001 do not revert to the General Fund of the State but remain available until the close of FY 2001-2002.

HOUSE FILE 740 - Senior Living Trust Fund Appropriations and Nursing Facility Reimbursement (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act makes appropriations from the Senior Living Trust Fund to the Department of Elder Affairs and Department of Human Services (DHS).

   The appropriation to the Department of Elder Affairs includes funding for development of a comprehensive Senior Living Program, funding for recruitment and retention strategies for certified nurse aides, and funding for strategies for dependent adult abuse detection, training and services.

   The appropriation to DHS includes funding for grants to provide assisted living or long-term care alternatives; for supplementation of the Medical Assistance (Medicaid) Program appropriation and to provide funding for reimbursement of health care services and rent expenses provided to persons through the Medical Assistance (Medicaid) Home and Community-based Services Waiver Program and the State Supplementary Assistance Program; and funding for reimbursement of nursing facility providers under a case-mix reimbursement methodology.

   The Act establishes the modified price-based case-mix reimbursement formula to be used for reimbursement of nursing facilities. The Act also amends Code language to allow nursing facilities that have been approved providers under Medicaid for a two-year period, rather than the current three-year period, to apply for nursing facility conversion grants under the Senior Living Program.

   The Act provides that nursing facility conversion grants awarded on or after July 1, 2001, are to provide a service delivery package that is affordable for individuals eligible for services under the Medical Assistance Home and Community-Based Services Waiver Program applicable to a minimum of 40 percent of the units.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A provision that required the department to adopt rules, regarding the evaluation of nursing facility conversion grant applications received on or after July1, 1, 2001, to give greater weight in the scoring methodology to nursing facility conversion projects that are primarily the renovation and remodeling of the existing nursing facility structure relative to the weight given to conversion projects that are primarily new construction.
2. A provision that required the department, beginning July 1, 2003, in determining the nondirect care cost component of the case-mix reimbursement rate to apply a bed occupancy factor of 85 percent.
3. A provision that allowed a nursing facility to request an exception to the application of a geographic wage index in determining the case-mix adjusted component of the modified price-based case-mix reimbursement for nursing facilities located in standard metropolitan statistical area counties.
4. A provision defining "affordable" relating to rates for payment of services for the purposes of Code Chapter 249H, the "Senior Living Program."

HOUSE FILE 742 - Appropriations -- Infrastructure and Capital Projects (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act makes and modifies prior appropriations from the Rebuild Iowa Infrastructure Fund for various capital and other projects. These appropriations include capital projects for the departments of Corrections, Cultural Affairs, Education, General Services, and Public Defense, and for the State Board of Regents and the Legislative Council.

   The Act appropriates funds and modifies prior appropriations from the Environment First Fund to the departments of Agriculture and Land Stewardship, Economic Development, and Natural Resources. The Act appropriates $10 million from the Environment First Fund to the Resources Enhancement and Protection Fund in lieu of the $20 million appropriated from the General Fund of the State.

   The Act makes appropriations for various capital projects from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund for FY 2001-2002 if the Tobacco Settlement Authority securitizes Tobacco Master Settlement Agreement payments sold to the authority pursuant to S.F. 532 (see Business, Banking & Insurance) and the bond proceeds are received by the authority and deposited in the Tax-Exempt Bond Proceeds Restricted Capital Funds Account on or before June 30, 2002. The Act provides that some of these appropriations are to be made from the Rebuild Iowa Infrastructure Fund if they cannot be made from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account. The appropriations include appropriations to the departments of Corrections, Economic Development, Education, General Services, Natural Resources, Public Defense, and Transportation, and to the Iowa State Fair Authority, Iowa Telecommunications and Technology Commission, judicial branch, and State Board of Regents. The Act also provides for the temporary appropriation of funds from the Rebuild Iowa Infrastructure Fund for certain capital projects funded from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account until bond proceeds are deposited into the account. The Rebuild Iowa Infrastructure Fund is to be reimbursed from the account upon deposit of the bond proceeds in the account.

   The Act amends several Code sections as follows:

• Code Section 7E.5A, to require state agencies, within their five-year capital budget requests, to identify specific instances where the failure to address deferred maintenance has negatively impacted the agency’s ability to implement its mission and the proposed costs for annual routine and preventive maintenance based on an industry standard of 1 percent of the estimated replacement cost of the agency’s facilities.
• Code Section 7E.5A, to require an agency requesting state moneys for a vertical infrastructure project to actively pursue any federal funds for which the project may be eligible and demonstrate such pursuit prior to receiving state moneys for the project.
• Code Sections 8.57 and 99E.10, to provide that if the total amount of gambling revenues directed to be deposited in the Rebuild Iowa Infrastructure Fund is insufficient to make the designated deposits into the Vision Iowa Fund and the School Infrastructure Fund, the shortfall shall be paid from lottery revenues. These provisions take effect May 29, 2001.
• Code Section 12.73, to increase the amount of moneys allocated annually to the Department of Economic Development for administrative costs related to administration of the Vision Iowa Program.
• Code Sections 15F.202, 15F.204 and 15F.302, to provide that financial assistance under the Community Attraction and Tourism Program, the Vision Iowa Program, and the School Infrastructure Program shall be provided only from funds, rights and assets legally available to the Vision Iowa Board. The Act also adds provisions allowing such assistance to be in the form of credit enhancements and financing instruments and strikes provisions allowing such assistance to be in the form of guarantees. These provisions take effect May 29, 2001.

   The Act strikes provisions in Code Sections 12.74 and 12.84 providing that the state pledges to and agrees with the holders of bonds or notes issued under the Vision Iowa or School Infrastructure Program that the state will not limit or alter the rights and powers vested in the Vision Iowa Board or the Treasurer of State to fulfill the terms of a contract made with respect to the bonds or notes, or in any way impair the rights and remedies of the holders until the bonds and notes, together with the interest on them, including interest on paid installments of interest, are fully met and discharged. These provisions take effect May 29, 2001.

   The Act creates new Code Sections 161D.8 and 161D.13 that require the Loess Hills Development and Conservation Authority and the Southern Iowa Development and Conservation Authority, respectively, to submit annual reports on their operations, accomplishments, budgets, receipts, expenditures, assets and liabilities, and recommendations.

   The Act amends a provision in H.F. 755 to provide that any cash balance in the Groundwater Protection Fund and in any of the accounts within the Groundwater Protection Fund not needed for expenditure in FY 2001-2002 shall be transferred to the General Fund of the State.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. FY 2001-2002 funding to the Iowa Department of Transportation for a grant to the Grundy County Conservation Board for a borrow pit recreational area project.
2. FY 2001-2002 funding to the Department of General Services for the construction of a pedestrian bridge across Court Avenue to provide pedestrian access across the Capitol Complex.
3. FY 2001-2002 funding to the Department of Public Safety for the location and purchase of land, a site survey, soil sampling, and site preparation for the construction of a new Iowa State Patrol post in Mason City.
4. A provision requiring public organizations receiving financial assistance for a project under the Vision Iowa Program to use competitive bidding procedures for construction of the proposed project.

HOUSE FILE 746 - Compensation for Public Employees (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to and appropriates $61.3 million from the General Fund of the State to fund salary adjustments and related benefits for state appointed nonelected officers, justices, judges, magistrates, employees subject to collective bargaining agreements, and certain noncontract employees. In addition, $9 million is appropriated from the Unassigned Revenue Fund administered by the Iowa Comprehensive Underground Storage Tank Fund Board to the Salary Adjustment Fund to fund salary adjustments.

   The Act also creates a Terminal Liability Health Insurance Fund to pay the expenses at the end of the current state health insurance contract and appropriates $9 million from the Unassigned Revenue Fund administered by the Iowa Comprehensive Underground Storage Tank Fund Board to pay the state’s share of the terminal liability of the state health insurance contract.

   The proceeds of the Salary Adjustment Fund are to be distributed by the Department of Management to fund the collective bargaining agreements authorizing a 3 percent salary increase. The salaries of justices, judges, and judicial magistrates are increased approximately 3 percent as well as the pay plans for noncontract employees. An eligible noncontract employee may receive a step increase or its equivalent.

   The State Board of Regents is allocated appropriations to fund its collective bargaining agreements and provide merit employees not covered under a collective bargaining agreement with increases comparable to similar contract-covered employees and faculty and the professional scientific employees not covered under a collective bargaining agreement with a percentage increase similar to the University of Northern Iowa faculty bargaining unit.

   A salary model coordinator is funded in the Department of Management to maintain, in conjunction with the Legislative Fiscal Bureau, the state’s salary model.

   The Act allocates funds to the Department of Revenue and Finance to reimburse state agencies for overtime paid to employees of the patient care bargaining unit.

   The Act provides for health insurance incentive programs for contract and noncontract employees and provides for an incentive payment to eligible employees. The Department of Personnel is authorized to collect an administration charge of $2 per contract on all health insurance plans to pay the administrative costs of state benefit programs.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A sentence in new Code Section 421.46, subsection 2, which would have restricted the reimbursement received by state agencies for expenditures related to the payment of the health insurance plans surcharge for the terminal liability of the health insurance contract for state employees to the amount of moneys appropriated from the General Fund of the State for that purpose for the fiscal year.
2. A sentence in new Code Section 421.46, subsection 3, which would have reverted any remaining balance in the Terminal Liability Health Insurance Fund, upon total payment of the terminal liability of the existing health insurance contract administered by the Department of Personnel, to the credit of the Unassigned Revenue Fund administered by the Iowa Comprehensive Underground Storage Tank Fund Board.

HOUSE FILE 755 - Miscellaneous Appropriations, Reductions, and Other Provisions (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act relates to various public expenditures and regulatory matters by making and reducing appropriations and making various statutory changes.

   Division I -- MH/MR/DD -- Allowed Growth

   Division I appropriates money for FY 2002-2003 to the Department of Human Services (DHS) for distribution to counties of the county mental health, mental retardation, and developmental disabilities (MH/MR/DD) services allowed growth factor adjustment. See H.F. 732 for reductions in the FY 2001-2002 funding level for allowed growth. Those reductions are continued with the amount appropriated in this Act.

   Division II -- Standing Appropriations -- Reductions

   Division II reduces for FY 2001-2002 the following standing limited and unlimited appropriations in the following approximate amounts:

1. General Assembly and legislative agencies’ budgets by $1.5 million.
2. Performance of duty by the Executive Council by $1 million.
3. State Appeal Board for claims against the state by $2 million.
4. Secretary of State for printing constitutional amendments and public measures by $2,565. This eliminates the appropriation for FY 2001-2002.
5. Area education agencies’ (AEAs) funding by $7.5 million. The Act requires the Department of Management to calculate the reduction on a prorated basis based upon the total each school district would have received if no reduction were imposed. The Act allows AEAs to use funds from the Media Services Program and the Educational Services Program to maintain the level required for the Special Education Support Services Program.
6. School technology by $20 million.
7. At-risk children programs by $1 million. This Act requires the reduction to be prorated among the grant programs.
8. Public transit assistance by $660,000.
9. Indian settlement officer by $25,000. This eliminates the appropriation for FY 2001-2002.
10. Department of Corrections for the payment of special court costs and attorney fees by $66,000. This eliminates the appropriation for FY 2001-2002.
11. Poultry show exhibition -- the $500 standing appropriation for the poultry show exhibition reimbursement is eliminated.

   Division III -- Law Enforcement Physical Exams

   Division III amends Code Section 400.8 to provide that the physical exam of applicants for law enforcement and fire fighter positions is to be conducted in accordance with the directives of the board of trustees of the Fire and Police Retirement System rather than by the appointed three-member medical board. This division also delays the effective date of 2000 Iowa Acts, Chapter 1077, Sections 87 and 94, from July 1, 2001, to July 1, 2002. These delayed sections relate to the makeup of the medical board under the Statewide Fire and Police Retirement System.

   Division IV -- Debt Service and Tobacco Fund Appropriations

   Division IV makes contingent appropriations from the General Fund of the State and the Tobacco Settlement Trust Fund for purposes of tuition replacement debt service, and for costs relating to the Tobacco Master Settlement Agreement. The division includes State General Fund appropriations made in lieu of appropriations made for the same purposes in other enacted legislation, such as tuition replacement in S.F. 532 (see Business, Banking & Insurance) and ICN debt service in H.F. 715 (see Taxation). The division does not take effect unless the Tobacco Settlement Authority securitizes Tobacco Master Settlement Agreement payments made to the authority. The effective date of the division is the effective date of the receipt and deposit of bond payments by the authority.

   Division V -- Miscellaneous

   Division V provides for the following:

1. Appropriates from the General Fund of the State to the Department of Education for FY 2001-2002 for the Americorps After-School Initiative and a Jobs for America’s Graduates specialist.
2. Appropriates from the General Fund of the State to DHS to supplement the appropriation made in H.F. 732 for general administration expenses.
3. Requires that interest and earnings on moneys in the Iowa Economic Emergency Fund and Cash Reserve Fund be deposited into the General Fund of the State instead of the Rebuild Iowa Infrastructure Fund for FY 2001-2002.
4. Allows for certified hunter safety and ethics instructors to conduct hunter safety and ethics education courses on public school property.
5. Transfers unencumbered moneys on June 30, 2001, from the Groundwater Protection Fund and its accounts to the General Fund of the State.
6. Maintains the limit on program job credits under the Accelerated Career Education Program at the same level as FY 2000-2001 instead of increasing as currently provided in Code Section 260G.4B.
7. Makes psychiatric services provided by a licensed physician part of the medical services that may be provided under the Volunteer Health Care Provider Program.
8. Changes from "on November 1" to "by November 1" the time for a school district to determine its additional enrollment because of special education for purposes of the state school aid formula. The division also provides that a child over a compulsory age who is receiving private instruction may be registered in a public school for dual enrollment purposes and a pupil who is enrolled for dual enrollment purposes but is participating only in extracurricular activities shall only be counted as one-tenth of a pupil. The division allows a school district adjacent to a newly reorganized area education agency to join to it.
9. Requires that in a tax increment financing (TIF) district the county auditor must certify to a school district by July 1 if any revenues from the school district’s physical plant and equipment levy (PPEL) are necessary to pay the principal and interest on bonds issued by a municipality prior to July 1, 2001, to fund an urban renewal project in the TIF district. However, indebtedness incurred to refund bonds issued prior to July 1, 2001, is not included in the certification. Prior law had the municipality certify the amount of PPEL revenues needed to pay principal and interest on indebtedness incurred prior to July 1, 2000. No reference to refund bonds was made. In addition, the Act provides a new limitation on municipalities acquiring PPEL revenues. The limitation provides that a municipality may only seek PPEL revenues in a fiscal year if it requested such revenues in FY 2001-2002 and the amount requested may not exceed the amount requested in FY 2001-2002. These changes in the TIF district law apply to property taxes due and payable in fiscal years beginning on or after July 1, 2002.
10. Changes the effective date of H.F. 259 (see State Government), relating to the duties of the Office of the Secretary of State in commissioning notarial officers from July 1, 2001, to January 1, 2002.

   Division VI -- Scheduled Violations

   Division VI relates to scheduled violations. Senate File 499 (see Criminal Law, Procedure & Corrections) reorganizes the Code placement of scheduled fines in Code Chapter 805 and changes some of those fines. Currently several Code sections prescribe unspecified or specified simple misdemeanor penalties for violations of those sections but do not refer to the applicable scheduled fine for those simple misdemeanor penalties. The following Code sections are amended to delete the reference to an unspecified or specified simple misdemeanor penalty and to instead refer to the specific scheduled fine provided for the violation in S.F. 499: Code Sections 321.17, 321.98, 321.193, 321.216, 321.216B, 321.216C, 321L.3, 321L.7, and 452A.52.

   Division VII -- Corrective Amendments

   Division VII provides corrective amendments to legislation enacted in the 2001 Legislative Session.

   THE GOVERNOR ITEM VETOED THE FOLLOWING:

• Division II -- Provisions reducing the Early Intervention Block Grant standing appropriation by $10 million, the nonpublic school transportation standing appropriation by approximately $505,000, and the Education Excellence -- Phase III standing appropriation by $2 million.
• Division V -- Provisions expressing the intent that the Iowa Finance Authority provide funding for mental illness special services for FY 2001-2002 in the amount of $121,220 to continue financing for existing community-based facilities, development of affordable community-based housing facilities, and construction and start-up costs to develop community living arrangements for homeless persons with mental illness; requiring the Department of Education to ascertain a maximum annual amount a school district would be required to use for the purchase of textbooks for accredited nonpublic schools; and amending S.F. 514, the Property Tax Limitation bill, to state that if there is more than one owner of a property, the owners would be limited to a single $200,000 limitation, and if a person owns more than one property, that person would be limited to a single $200,000 limitation on a statewide basis. This last provision was contingent upon enactment of S.F. 514, which did not occur.

HOUSE FILE 759 - Miscellaneous Funding Restoration, Reductions, and Other Provisions - SECOND EXTRAORDINARY SESSION (full text of act)

   BY COMMITTEE ON APPROPRIATIONS. This Act addresses public funding and regulatory matters, primarily making supplemental appropriations to restore appropriations that were subject to the Governor's across-the-board reductions of 4.3 percent to executive branch allotments for FY 2001-2002.

   The supplemental appropriations include increases in standing appropriations for FY 2001-2002 for the following purposes:

1. Repayment of the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund.
2. Various state obligations, including payment of claims against the state by the State Appeals Board, performance of duty by the Executive Council, state unemployment compensation administration, expenses and compensation incurred by members of the National Guard while on active duty, Secretary of State's administration of absentee ballots for Iowa residents serving in the armed services, and payment of costs associated with extradition of criminals.
3. The Iowa Early Intervention Block Grant for school districts.
4. Instructional support state aid to school districts.
5. Private college and university tuition grants.
6. Child development grants and other programs for at-risk children in education.
7. School improvement technology.
8. Educational Excellence Program for school teachers.
9. County mental health and developmental disabilities funding for property tax relief.

   Other appropriations supplemented or restored include annual appropriations for FY 2001-2002 for the following purposes:

1. Iowa Communications Network debt service.
2. National Guard Educational Assistance Program.
3. Community colleges.
4. State Board of Regents institutions for tuition replacement.
5. State Hygienic Laboratory.
6. State School for the Deaf.
7. Iowa Braille and Sight Saving School.
8. Iowa Veterans Home.
9. Department of Corrections institutions at Fort Madison, Anamosa and Clarinda, other institutional bed capacity, and community-based corrections.
10. Iowa Law Enforcement Academy.
11. Department of Public Defense Military Division and Emergency Management Division.
12. The Department of Public Safety and its divisions.
13. State workers' compensation claims.
14. Department of Human Services field operations.
15. Department of General Services for rental space and utilities.

   Appropriations to the General Assembly and the judicial branch are reduced by 4.3 percent and legislators are prohibited from receiving per diem for their involvement in the special legislative session.

   Public schools are allowed to use categorical funding from the state for educational technology assistance, Iowa Early Intervention and School Improvement Technology Block Grants, and Phase III of the Educational Excellence Program for general school purposes. Area education agencies are allowed to use state categorical funding for media services and educational services for special education. Area Education Agency XVI is provided a supplemental appropriation.

   Corrective amendments are made relating to the previously enacted Interstate Compact for Adult Offenders and the amendments are retroactively applicable to July 1, 2001.

   Reforms are made in the requirements for use of the state's reserve funds, including clarifying that the Iowa Economic Emergency Fund may be used for cash flow purposes providing any moneys so used are returned by the end of the fiscal year. Otherwise, moneys in that fund can only be accessed as specifically authorized in law. A contingent appropriation to the General Fund of the State of up to $50 million is made for the purpose of reducing or preventing any overdraft on or deficit in the General Fund. The appropriation is contingent upon the Governor issuing an official proclamation and notifying certain members of the General Assembly that specified contingencies have occurred. The contingencies include all of the following: a reduction in the final quarter of the fiscal year in estimated or actual and accrued revenues of at least 0.5 percent; the Governor implemented across-the-board cuts and the cuts were insufficient to prevent an overdraft or deficit or there was insufficient time to implement the cuts due to the lateness in occurrence of the estimated or actual and accrued revenues; and the balance of the General Fund prior to the appropriation was negative. If a contingent appropriation is made for a fiscal year, an appropriation is made from the General Fund in the succeeding fiscal year to replace the moneys in the Iowa Economic Emergency Fund. Other technical changes are made to conform to similar language in the Iowa Economic Emergency Fund and the Cash Reserve Fund.

   Contingent language is provided to allow for Iowa implementation if Congress enacts a federal sales tax holiday prior to the convening of the 2002 Legislative Session.

   The Department of Human Services is authorized to move the Sexually Violent Predators Unit to the State Mental Health Institute at Mount Pleasant from the unit's current location at the prison medical classification center located at Oakdale.

   The Act specifies that the Governor's 4.3 percent reduction made pursuant to executive order on November 1, 2001, to the appropriations under the executive branch are not applicable to the appropriations made in the Act.

   Unless otherwise specified, the Act takes effect November 15, 2001.

HOUSE FILE 760 - State Budgeting Practices - SECOND EXTRAORDINARY SESSION (full text of act)

   BY COMMITTEE ON STATE GOVERNMENT. This Act amends Code Section 8.54, relating to the State General Fund expenditure limitation, in several ways. The Governor's responsibility for compliance with the expenditure limitation is extended to include the Governor's approval of the budget.

   The Act strikes and rewrites two subsections of Code Section 8.54. In doing so, the Act eliminates a requirement that the Governor, in submitting a budget under Code Section 8.21, and the General Assembly, in passing a budget, not have recurring expenditures in excess of recurring revenues. Rather, the Act requires that the budgets transmitted by the Governor and passed by the General Assembly do not exceed the State General Fund expenditure limitation.

   The Act also prohibits the Governor from transmitting a budget with recommended appropriations in excess of the State General Fund expenditure limitation and the General Assembly from passing a budget with appropriations in excess of the limitation. The Governor is also prohibited from approving or disapproving appropriation bills or items of appropriation bills passed by the General Assembly in a manner that would cause the final budget approved by the Governor to exceed the expenditure limitation. The Act provides, in applying the expenditure limitation requirements, that the Governor and the General Assembly shall not rely on any anticipated reversion of appropriations in order to meet the expenditure limitation.

   In addition, the Act eliminates obsolete provisions in the Code relating to budgetary matters and does the following:

1. Eliminates the requirement for preparing an annual five-year capital priority plan by the Department of Management.
2. Strikes the word "balanced," relating to the date requirements for the Governor to transmit the Governor's budget recommendations to the General Assembly, to conform with the expenditure limitation law.
3. Requires the Revenue Estimating Conference, at the meeting in which the revenue estimate for the succeeding fiscal year is developed, to include an estimate of the accruals. Accruals are revenues collected or owed by entities other than the state on or before June 30 of the fiscal year but not remitted until after June 30. Accruals also include lottery revenue collected on or before June 30 of the fiscal year but transferred to the State General Fund after June 30. The estimates developed at that meeting are required to be used in calculation of the State General Fund expenditure limitation under Code Section 8.54.
4. Eliminates the Department of Management's requirement to prepare estimates of total government income.
5. Eliminates budget analysts from the Department of Management from being attached to Board of Regents institutions.
6. Requires that the Director of Revenue and Finance assist the Director of the Department of Management in providing projected and actual expenditures to the Legislative Fiscal Bureau.
7. Deletes the requirement that the departments of Agriculture and Land Stewardship and Natural Resources notify specific legislators about the transfer of moneys or full?time equivalent positions.

   The Act takes effect November 16, 2001, with some sections being first applicable to the budget that commences on July 1, 2002.

RELATED LEGISLATION

SENATE FILE 524 -- Grape and Wine Development (Complete summary under AGRICULTURE.)

   This Act in part amends the wine gallonage tax law by providing that of the revenue collected from the tax on wine imported into this state for sale at wholesale and sold in this state at wholesale, which is in excess of the revenue estimated to be collected from such tax as last agreed to by the state Revenue Estimating Conference during the previous fiscal year, not more than $75,000 must be deposited into the Grape and Wine Development Fund each year to support programs to establish, improve or expand vineyards or winemaking operations in this state as provided in the Act.

SENATE FILE 551 -- State Government Employment - Reductions-in-Force Initiatives - SECOND EXTRAORDINARY SESSION (Complete summary under STATE GOVERNMENT.)

   This Act establishes two early termination programs for eligible state employees, the Years of Service Incentive Program and the Sick Leave and Vacation Incentive Program. The Act also repeals the Workforce Attrition Program and Fund and transfers money due the fund to the General Fund of the State. The Act also provides that any across-the-board increases for July 1, 2002, be delayed to November 1, 2002, for state employees not covered by a collective bargaining agreement. The Years of Service Incentive Program provides eligible employees a severance payment based on years of service for agreeing to separate from state employment. The Sick Leave and Vacation Incentive Program allows eligible employees to separate from state employment and receive, over five years, the entire amount of the eligible employee's sick leave up to a maximum of the employee's annual salary and vacation. The Years of Service Incentive Program takes effect July 1, 2002, while the remainder of the Act takes effect November 19, 2001.

HOUSE FILE 694 -- Housing Trust -- VETOED BY THE GOVERNOR (Complete summary under ECONOMIC DEVELOPMENT.)

   This bill would have created a Housing Trust Fund and would have annually appropriated moneys from the fund to the Iowa Finance Authority and the Department of Economic Development for housing-related programs.

HOUSE FILE 745 -- Regulation of Foot and Mouth Disease (Complete summary under AGRICULTURE.)

   This Act, authorizing the Department of Agriculture and Land Stewardship to establish security measures to control outbreaks of foot and mouth disease in this state, provides that the Executive Council may compensate owners for the loss of animals condemned and destroyed under its provisions and may approve a plan to compensate owners of property other than animals inadvertently destroyed as a result of the department’s regulation. The Act takes effect May 1, 2001.

© 1998 Cornell College and League of Women Voters of Iowa

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