Appropriations Legislation

SENATE FILE 2140 - Appropriations - Energy Conservation Programs Funding

SENATE FILE 2304 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions

SENATE FILE 2326 - Appropriations - Miscellaneous Provisions, Reductions, Transfers, and Other Matters

HOUSE FILE 2245 - Medical Assistance - Appropriations and Related Provisions

HOUSE FILE 2582 - Federal Block Grant Appropriations

HOUSE FILE 2612 - Transportation Appropriations - VETOED BY THE GOVERNOR

HOUSE FILE 2613 - Senior Living and Hospital Trust Funds Appropriations

HOUSE FILE 2614 - Tobacco Settlement, Infrastructure, and Environment First Funds - Appropriations and Miscellaneous Related Changes

HOUSE FILE 2615 - Healthy Iowans Tobacco Trust and Tobacco Settlement Trust Fund - Appropriations

HOUSE FILE 2623 - Compensation for Public Employees and Additional Provisions

HOUSE FILE 2625 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions - Fiscal Year 2001-2002 - SECOND EXTRAORDINARY SESSION

HOUSE FILE 2626 - Appropriations - Transportation - SECOND EXTRAORDINARY SESSION

HOUSE FILE 2627 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions - 2002-2003 and Prior Fiscal Years - SECOND EXTRAORDINARY SESSION

Related Legislation

SENATE FILE 2018 - Legislators' Per Diem - 2002 Regular Session

SENATE FILE 2124 - Public Defense, Emergency Management, and Iowa Technology Center

SENATE FILE 2293 - Animal Feeding Operations and Environmental Regulation

SENATE FILE 2315 - School Finance - Allowable Growth, Area Education Agency Payments, and State Foundation Aid

SENATE FILE 2316 - Sale of Iowa State University of Science and Technology Dairy Research Farm - Use of Proceeds

SENATE FILE 2317 - Tobacco Settlement Agreement - Miscellaneous Provisions - Litigation Costs

SENATE FILE 2325 - State Agency Regulatory Functions - Miscellaneous Reorganizations, Transfers, and Revisions

HOUSE FILE 2075 - Economic Emergency Funds - Transfer to Tobacco Settlement and Senior Living Trust Funds

HOUSE FILE 2549 - Primary and Secondary Education - Employee Standards, Career Development, Assessment, and Remuneration

HOUSE FILE 2591 - Resident Hunting License Fee - Pheasant and Quail Restoration

SENATE FILE 2140 - Appropriations - Energy Conservation Programs Funding Full Text of Bill
By Committee on Appropriations.

This Act appropriates moneys for FY 2002-2003 from the Energy Conservation Trust, which receives deposits of settlements from oil overcharge refunds, to the Division of Community Action Agencies of the Department of Human Rights for energy conservation programs for low-income persons, and to the Department of Natural Resources for the State Energy Program and for administration of petroleum overcharge programs.

SENATE FILE 2304 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions Full Text of Bill
By Committee on Appropriations.

This Act makes, reduces and transfers appropriations made for fiscal year 2001-2002.

The Act appropriates approximately $44.9 million from the Iowa Economic Emergency Fund to pay for K-12 school aid allowable growth (replacing for FY 2001-2002 a portion of the standing appropriation of State General Fund dollars). Appropriations to the General Fund of the State are reduced by approximately $72.4 million and approximately $49.3 million is transferred into the General Fund for a total savings of approximately $121.7 million.

The following transfers to the General Fund are made from other funds and appropriations (amounts are approximate): $1.5 million from the Mental Health and Developmental Disabilities Services Risk Pool; $2.2 million for depreciation of state vehicles; $2.8 million from an appropriation to the State Board of Regents for construction of a livestock infectious disease isolation facility at Iowa State University; $5.5 million from recreational trail projects administered by the Iowa Department of Transportation; $360,000 for general aviation airport hangars; $6 million from the Healthy Iowans Tobacco Trust; $1 million from the Strategic Investment Fund; $500,000 from the Value-Added Agricultural Products and Processes Financial Assistance Fund; $1 million from the Brucellosis and Tuberculosis Eradication Fund; $2.8 million from the Resources Enhancement and Protection (REAP) Fund; $3 million from the Environment First Fund; $22 million from the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund; and $700,000 from the state's Pooled Technology Account.

The Act applies a 1 percent across-the-board reduction to all appropriations from the General Fund to the executive branch except for those specified in a list of exceptions, including those made for certain welfare programs, correctional facilities, property tax replacement funding, certain debt service obligations, certain regulatory agencies, indigent defense funding, certain state employee retirement and benefit funding, the Iowa Empowerment Fund, the Iowa School for the Deaf, the Iowa Braille and Sight Saving School, and various categorical education-related programs.

The Act also reduces the judicial branch appropriations by approximately $1 million, and applies an additional reduction of approximately $1.1 million that the judicial branch may attain through the equivalent of a half-day furlough per employee per pay period for the rest of the fiscal year, a 5 percent pay reduction for judicial salaries for the remainder of the fiscal year, or other cost savings, but allows the additional reduction to be supplanted through use of a portion of enhanced court collections moneys.

The Act reduces appropriations made to the legislative branch by 2.6 percent to be implemented through furloughs and other expense reductions and applies a 5 percent pay reduction to legislator salaries for the remainder of the fiscal year.

The Act reduces executive branch appropriations by approximately $11.7 million, applies a 5 percent pay reduction to elected and appointed officials' salaries for the remainder of the fiscal year, and provides that the remainder of the reduction is to be attained through employee furloughs or other cost reductions.

The Act takes effect March 1, 2002.

SENATE FILE 2326 - Appropriations - Miscellaneous Provisions, Reductions, Transfers, and Other Matters Full Text of Bill
By Committee on Appropriations.

This Act provides appropriations from the General Fund to executive branch agencies and the judicial branch for FY 2002-2003, reduces or limits standing appropriations, and transfers appropriations. The Act is organized into divisions corresponding to the General Assembly's joint appropriation subcommittees. The Governor vetoed most divisions of the Act, noting in the veto message that after the Act's approval by the General Assembly, there was a dramatic decline in revenue projections. The General Assembly, in the Second Extraordinary Session on May 28, 2002, passed H.F. 2627, reducing appropriations made in this Act and otherwise addressing appropriations vetoed in this Act.

Before veto action, the Act appropriated a total of $2.689 billion from the General Fund and authorized 32,916.4 full-time equivalent positions (FTEs). Before veto action, the funding represented a decrease of $88.1 million and 285.4 FTEs compared to the FY 2001-2002 estimated net appropriations for the areas included. Prior to the vetoes, the Act also appropriated $213.6 million from non-General Fund sources, a decrease of $5.8 million compared to the FY 2001-2002 estimated net appropriations.

Division I - Administration and Regulation - VETOED BY THE GOVERNOR

The state departments and agencies addressed in this division included 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. In addition, the division included permanent statutory provisions involving the State Employee Suggestion Program, funding for the Utilities Board and Consumer Advocate staffing, use of fees to perform Insurance Division duties, and funding for the Professional Licensing Division of the Department of Commerce.

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

Before the veto, Division I appropriated $79.9 million from the General Fund of the State and authorized 1,961.7 FTEs, a decrease of $3.6 million and an increase of 4.8 FTEs compared to the FY 2001-2002 estimated net appropriations.

Division II - Agriculture and Natural Resources - VETOED BY THE GOVERNOR

Division II provided funding for the departments of Agriculture and Land Stewardship and Natural Resources. Before veto action, Division II appropriated a total of $33.4 million from the General Fund of the State and authorized 1,503.3 FTEs, a decrease of $1.6 million and 11.3 FTEs compared to the FY 2001-2002 estimated net appropriations. Division II appropriated moneys from a number of sources, including the General Fund of the State and the State Fish and Game Protection Fund.

Division III - Economic Development - VETOED BY THE GOVERNOR

Division III made appropriations and transfers from the General Fund of the State to the Department of Economic Development, the University of Iowa, the University of Northern Iowa, Iowa State University, the Department of Workforce Development, and the Public Employment Relations Board. Before veto action, Division III appropriated a total of $30 million from the General Fund of the State and authorized 463.6 FTEs, a decrease of $4.4 million and 0.7 FTE position compared to the FY 2001-2002 estimated net appropriations. See H.F. 2627 for reductions in the appropriations enacted in this division.

Division IV - Education

This division appropriates moneys for FY 2002-2003 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. Division IV appropriates a total of $864.9 million from the General Fund of the State and authorizes 17,223.9 FTEs, a decrease of $39.7 million and no change in FTEs compared to the FY 2001-2002 estimated net appropriations.

COLLEGE STUDENT AID COMMISSION. Compared to FY 2001-2002, the commission's appropriation is reduced by $67,000. 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 2002-2003.

DEPARTMENT OF CULTURAL AFFAIRS. The Act funds the Arts, Historical and Administration Divisions, historic sites, and Community Cultural Grants.

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 library service area system; the Public Broadcasting Division; the Regional Telecommunications Council; vocational education to secondary schools; school food service; the Iowa Empowerment Fund; textbooks of nonpublic school pupils; the Vocational Education Youth Organization and other youth activities; for connecting education and workforce development; Student Achievement and Teacher Quality Programs; Jobs for America's Graduates; the Americorps After-School Initiative; and community colleges.

Iowa Empowerment Fund. 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. The Act provides that if the overall funding for School Ready Children Grants is reduced from the previous year's amount, the amount provided to empowerment areas that first received a grant prior to FY 2000-2001 is subject to an adjustment factor. Those receiving grants in FY 2000-2001 will receive in FY 2002-2003 an amount equivalent to the amount received in FY 2001-2002. A reduction in the grant funding of approximately $300,000 was made in H.F. 2627.

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 amends the Code to reduce state assistance for Iowa tuition grants, scholarships, and vocational-technical grants; and to permit the State Board of Regents to establish a three-year pilot program to evaluate the benefits of establishing an innovative school calendar for the School for the Deaf.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

Language stating legislative intent to cease state funding after FY 2002-2003 for school districts to provide direct intervention to at-risk students by a Jobs for America's Graduates specialist and for the Americorps After-School Initiative.

Division V - Health and Human Rights - VETOED BY THE GOVERNOR

This division provided 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 were appropriated from the General Fund of the State. However, in some cases, moneys were appropriated from special funds and accounts and authorization provided for use of licensing board fees. Before veto action, Division V appropriated a total of $50 million from the General Fund of the State and authorized 1,427.7 FTEs, a decrease of $35.9 million and 13 FTEs compared to the FY 2001-2002 estimated net appropriations.

Division VI - Human Services - VETOED BY THE GOVERNOR WITH ONE EXCEPTION

This division made appropriations for FY 2002-2003 for the Department of Human Services (DHS) and included other appropriations and provisions involving human services and health care. Before veto action, Division VI appropriated a total of $780.1 million from the General Fund of the State and authorized 5,448.7 FTEs for the DHS, an increase of $24.9 million and a decrease of 300.4 FTEs compared to the FY 2001-2002 estimated net appropriations. The vetoed provisions include the primary General Fund and federal funds appropriations for public assistance programs such as the Family Investment Program, Medicaid Program, child welfare and juvenile justice, and mental health and developmental disabilities services. In addition, related permanent statutory provisions were vetoed.

CHILDREN'S HEALTH INSURANCE PROGRAM. The Governor made an exception to the veto of this division by approving the appropriation of $9.9 million to DHS for maintenance of the state children's health insurance program known as the Healthy and Well Kids in Iowa (hawk-i) Program and receipt of federal financial participation. An additional appropriation is included in H.F. 2623. The Act authorizes DHS to transfer funds appropriated to be used to expand health care coverage to children under Medicaid. The Act provides that moneys in the hawk-i Trust Fund are appropriated and shall be used to offset any program costs for FY 2002-2003.

Division VII - Justice System - VETOED BY THE GOVERNOR

This division made appropriations for FY 2002-2003 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. Before veto action, Division VII appropriated a total of $473.6 million from the General Fund of the State and authorized 4,887.7 FTEs, a decrease of $3.4 million and an increase of 35.3 FTEs compared to the FY 2001-2002 estimated net appropriations.

Division VIII - Judicial Branch - VETOED BY THE GOVERNOR This division made appropriations for FY 2002-2003 to the judicial branch. Before veto action, Division VIII appropriated a total of $114.4 million from the General Fund of the State for the judicial branch, an increase of $500 compared to the FY 2001-2002 estimated net appropriations.

Division IX - Standing Appropriations

This division reduces certain standing appropriations, transfers moneys to the General Fund of the State, and repeals a standing appropriation. Division IX appropriates a total of $376.8 million from the General Fund of the State for certain standing appropriations, a decrease of $24.4 million compared to the FY 2001-2002 estimated net appropriations.

Certain standing appropriations presently in the Code are reduced by specific dollar amounts. These standing appropriations are for the following purposes: the General Assembly and its agencies; State Appeal Board claims; costs of constitutional amendments and public measures; at-risk children programs; Phase III moneys under the Educational Excellence Program (a further reduction is made in H.F. 2623); interstate extradition expenses; and the administration of the State Employee Deferred Compensation Program.

Division IX also limits standing appropriations presently in the Code to specific dollar amounts. These standing appropriations are for the following purposes: compensation of National Guard personnel and their expenses while on active state duty; nonpublic school transportation; administration of state unemployment compensation law; federal Cash Management and Improvement Act interest; printing of cigarette tax stamps; personal property tax replacement; franchise tax allocation; the state's share of the cost of the peace officers retirement benefits; payment of livestock production credit refunds; and reimbursements for homestead credits, agricultural land tax credit, family farm tax credit, military service tax credit, machinery and equipment tax credit; elderly and disabled tax credit and renter's reimbursement; and public transit assistance. See H.F. 2623 for other reductions to public transit assistance.

Division IX transfers moneys from other funds to the General Fund of the State. These funds are the Iowa Economic Emergency Fund, Cash Reserve Fund, Title Guaranty Fund, Innovations Fund, Underground Storage Tank Fund, and Waste Tire Management Fund.

Division IX amends the Code to eliminate the standing appropriation for the School Improvement Technology Block Grant Program. However, H.F. 2614 appropriates $5.7 million to the program for FY 2002-2003 from the Rebuild Iowa Infrastructure Fund.

HOUSE FILE 2245 - Medical Assistance - Appropriations and Related Provisions Full Text of Bill
By Committee on Appropriations.

This Act relates to the Medical Assistance (Medicaid) Program and makes appropriations and transfers from the Senior Living Trust Fund, the Tobacco Settlement Trust Fund, and the Hospital Trust Fund for the 2001-2002 fiscal year to the medical assistance appropriations made for that fiscal year.

The Act includes contingency language making appropriations and transfers and providing other direction in the event federal moneys are not received for purposes of the Hospital Trust Fund under Code Chapter 249I and in the event unanticipated federal funding for the Medicaid Program is received.

The Act directs that beginning March 1, 2002, adults receiving dental services under the Medicaid Program shall receive only preventive services, diagnostic services, restorative services limited to white or silver fillings, and prosthetic services limited to dentures only if dentures are necessary to establish masticatory function. House File 2627 amended this Act to add root canals and general anesthesia and intravenous sedation to the services permitted.

The Act directs the Department of Human Services (DHS) to convene a joint legislative and executive branch medical assistance advisory group to provide ongoing analysis and recommendations regarding the Medicaid Program in this state. The goal of the advisory group is to propose recommendations for systemic changes in the Medicaid Program to reduce state costs. The Act requires the advisory group to submit a report to the Joint Fiscal Committee of the Legislature and to the chairpersons and members of the Joint Human Services Appropriations Subcommittee no later than June 1, 2002, and provides that the advisory group is to meet, as necessary, to continue review of the Medicaid Program.

The Act provides for emergency rulemaking and takes effect February 8, 2002.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. The provision directing that after the appropriation of $7 million from the Hospital Trust Fund for the Medicaid Program, of the remaining moneys in the Hospital Trust Fund, $2.5 million would be transferred to and deposited in the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund.
2. The provision requiring DHS to transfer $7 million of the department's appropriation to the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund if certain federal funds are not received during fiscal year 2001-2002.
3. The provision requiring applicants for or recipients of Medicaid Program benefits to report changes in income or resources that affect eligibility on a monthly basis.
4. The provision requiring recipients of Medicaid Program benefits to pay a copayment on each covered drug prescription, including refills, depending on the cost of the prescription drug to the state and whether the drug is a generic or brand-name drug.
5. The provision requiring all licensed nursing facilities to be certified under both the federal Medicare Program and the Medicaid Program, beginning October 1, 2002, as a condition for participation in the Medicaid Program.

HOUSE FILE 2582 - Federal Block Grant Appropriations Full Text of Bill
By Committee on Appropriations.

This Act appropriates moneys to various state agencies for the federal fiscal year beginning October 1, 2002, and ending September 30, 2003, 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. 2627 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, 2002, and ending June 30, 2003.

HOUSE FILE 2612 - Transportation Appropriations - VETOED BY THE GOVERNOR Full Text of Bill
By Committee on Appropriations.

This bill made appropriations for the 2002-2003 fiscal year from the Road Use Tax Fund, the Primary Road Fund, and the General Fund of the State to the Iowa Department of Transportation (IDOT).

Appropriations from the Road Use Tax Fund included appropriations for driver's license production costs, salaries, operations, administrative services, planning, motor vehicles, the merit system, unemployment and workers' compensation, audit expenses, 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, rewriting the vehicle registration system, indirect cost recoveries, and participation in the Mississippi River Parkway Commission.

Appropriations from the Primary Road Fund included appropriations for salaries, operations, planning, highways, motor vehicles, the merit system, unemployment and workers' compensation, disposal of hazardous wastes at field locations, indirect cost recoveries, audit expenses, producing transportation maps, roof replacement and other improvements at field facilities, compliance with the federal Americans With Disabilities Act (ADA) at IDOT facilities, and renovation of the transportation administration building.

Appropriations from the General Fund of the State included appropriations for the network of automated weather observation and data transfer systems associated with the Iowa Aviation Weather System, runway marking and windsock programs for public airports, the Aviation Improvement Program, and the Rail Assistance Program and to provide economic development project funding.

The bill also provided that moneys for public transit assistance under Code Chapter 324A were to be credited directly to IDOT from the motor vehicle use tax moneys credited to the Road Use Tax Fund rather than to the General Fund of the State and then appropriated to IDOT for public transit. This provision was to have taken effect July 1, 2003.

During the 2002 Second Extraordinary Session, the General Assembly passed H.F. 2626, making transportation-related appropriations for FY 2002-2003.

HOUSE FILE 2613 - Senior Living and Hospital Trust Funds Appropriations Full Text of Bill
By Committee on Appropriations.

This Act makes appropriations for FY 2002-2003 from the Senior Living Trust Fund to the Department of Elder Affairs and Department of Human Services (DHS) and from the Hospital Trust Fund to DHS.

The appropriation from the Senior Living Trust Fund to the Department of Elder Affairs provides funding for development and implementation of a Comprehensive Senior Living Program.

The appropriation from the Senior Living Trust Fund to DHS provides funding for supplementation of the Medical Assistance (Medicaid) Program appropriation, for reimbursement of health care services and rent expenses provided to persons through the Medicaid home and community-based services waiver and the State Supplementary Assistance Program, and for Medicaid reimbursement of nursing facility providers as specified in the Act. The reimbursement rate for nursing facilities is to be the same rate in effect on June 30, 2002. Additionally, a supplemental payment is to be made as determined by DHS in consultation with nursing facilities and the vendor developing and implementing the price-based case-mix reimbursement system. House File 2627, passed by the General Assembly during the Second Extraordinary Session, amends this Act to increase the appropriation from the Senior Living Trust Fund to DHS by $16 million.

The Act also provides that DHS may use moneys from the Senior Living Trust Fund for cash flow purposes to make payments under the nursing facility or hospital upper payment limit methodology and these moneys must be refunded to the trust fund in the same fiscal year in which used and in a prompt manner.

Under the Act, moneys appropriated to DHS for FY 2002-2003 that are committed to grantees under contract to provide for conversion of nursing facilities to assisted living programs or for long-term care alternatives are not to revert to any fund, but are to remain available for expenditure for purposes of the contract for the subsequent fiscal year beginning July 1, 2003.

The Act directs DHS to adopt rules to provide that beginning with applications for conversion grants received on or after July 1, 2002, the department is to give greater weight in the scoring methodology to nursing facility conversion projects that are primarily for the renovation and remodeling of the existing nursing facility structure and give less weight to conversion projects that are primarily for new construction. The Act directs DHS to encourage cooperative efforts between the Department of Inspections and Appeals, the State Fire Marshal, and the grant applicant to promote the acceptance of nursing facility conversion projects that are primarily renovation and remodeling of an existing nursing facility structure.

The Act directs the Department of Elder Affairs to certify all assisted living programs established through nursing facility conversion grants. The department is to consult with conversion grant applicants and recipients to establish and monitor occupancy agreements, and assisted living program residents are to be allowed access to third-party payors. The Act directs the department to allow grant recipients to revise and modify occupancy agreements to reflect rates that are affordable during the 10-year period of operation following the awarding of the grant.

The Act establishes a moratorium on nursing facility conversion grants during the period beginning April 1, 2002, and ending June 30, 2003. A nursing facility that has completed a feasibility study prior to April 1, 2002, is eligible for a conversion grant beginning July 1, 2003. This section of the Act takes effect May 10, 2002, and is retroactively applicable to April 1, 2002.

The Act makes an appropriation from the Hospital Trust Fund to DHS to supplement the Medicaid Program appropriation.

The Act amends the language in 2001 Iowa Acts, Chapter 192, that relates to the appropriation to DHS for the fiscal year beginning July 1, 2001, and ending June 30, 2002, to provide that moneys that are committed to grantees under contract to provide for conversion to assisted living programs or for long-term care alternatives are not to revert to any fund, but are to remain available for expenditure for purposes of the contract for the subsequent fiscal year beginning July 1, 2002. This section of the Act takes effect May 10, 2002.

HOUSE FILE 2614 - Tobacco Settlement, Infrastructure, and Environment First Funds - Appropriations and Miscellaneous Related Changes Full Text of Bill
By Committee on Appropriations.

This Act makes appropriations to various departments and agencies for infrastructure and capital projects.

The Act makes appropriations from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund for various capital and other projects, including appropriations for capital projects for the departments of Corrections, Economic Development, Education, General Services, Human Services, Information Technology, Natural Resources, Public Defense, and Transportation, and for the Iowa State Fair Authority, Iowa Telecommunications and Technology Commission, judicial branch, Office of Treasurer of State, and the State Board of Regents.

The Act also appropriates funds from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund to the State Board of Regents for tuition replacement and to the Treasurer of State for debt service for the Iowa Communications Network, repayment of prison infrastructure bonds, and Tobacco Master Settlement Agreement litigation fees.

The Act amends provisions in 2000 Iowa Acts, Chapter 1225, and 2001 Iowa Acts, Chapter 185, by eliminating certain appropriations from the Rebuild Iowa Infrastructure Fund for fiscal years 2002-2003 and 2003-2004. However, some of the eliminated appropriations are subsequently made in this Act from the Tobacco Settlement Trust Fund.

The Act also amends a provision in 2001 Iowa Acts, Chapter 185, Section 25, relating to an appropriation for fiscal year 2001-2002 from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund to the Department of Natural Resources for the planning and design of a premier destination park. The Act provides that these funds may be expended for construction of the park. This provision takes effect May 10, 2002.

The Act appropriates funds to the State Board of Regents for tuition replacement from moneys to be deposited in the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund from the wagering tax.

The Act makes appropriations from the Rebuild Iowa Infrastructure Fund for various capital and other projects, including projects for the departments of Corrections, Cultural Affairs, Economic Development, Education, General Services, Human Services, and Information Technology, for the Iowa Telecommunications Technology Commission, State Board of Regents, Office of Secretary of State, Post 16 of the Department of Public Safety, and the Commission of Veterans Affairs.

The Act makes an appropriation for FY 2001-2002 from the Rebuild Iowa Infrastructure Fund to the Department of Corrections for lease-purchase costs to connect the electrical system supporting the Special Needs Unit at Fort Madison. This appropriation replaces an appropriation for the same fiscal year from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund. This provision takes effect May 10, 2002.

The Act appropriates funds 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 by statute from the General Fund of the State.

The Act modifies the duty of the Legislative Council to assign the use of areas in the State Capitol. Currently, the Legislative Council is to assign the use of areas in the State Capitol except for areas used by the Governor and the courts as of January 1, 1986. The Act modifies this duty of assignment to exclude areas used by the courts as of November 1, 2002. The courts will be vacating some areas currently occupied in the Capitol upon completion of construction of the new judicial building in the fall of 2002.

The Act also requires the Iowa Department of Transportation to do a study concerning close-clearance conditions near railroad tracks, with a report and recommendations to be submitted to the General Assembly by January 1, 2003.

The Act was amended significantly by H.F. 2627, which was passed by the General Assembly during the 2002 Second Extraordinary Session.

HOUSE FILE 2615 - Healthy Iowans Tobacco Trust and Tobacco Settlement Trust Fund - Appropriations Full Text of Bill
By Committee on Appropriations.

This Act relates to and makes appropriations from the Healthy Iowans Tobacco Trust.

1. Unless otherwise provided, to maintain the 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 services providers as provided during FY 2000-2001.
4. To maintain the Medicaid 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 agencies at the rate provided to such agencies 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 services under the Medicaid 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 Medicaid Program.
10. To maintain the reimbursement rate as provided during FY 2000-2001 for non-Medicaid service providers under the purview of DHS.

The Act provides for supplementation of the appropriation for the children's health insurance program known as hawk-i and for supplementation of the appropriation for the Medicaid Program.

The Act appropriates funds to DHS to provide coverage under the Medicaid Program to certain women who require treatment for breast or cervical cancer.

The Act appropriates funds to the Iowa Department of Public Health (IDPH) for the Tobacco Use Prevention and Control Program. Under this appropriation, the Act requires that not less than 80 percent of the amount expended in FY 2001-2002 for community partnerships is to be expended in FY 2002-2003. The Act also appropriates funds to IDPH for additional substance abuse treatment. Under this appropriation, the department is directed to enhance the quality of and to expand capacity to provide 24-hour substance abuse treatment programs for children; to expand the length of individual client substance abuse treatment plans as necessary to reduce recidivism; to share research-based best practices for treatment with substance abuse treatment facilities; to develop a results-based funding approach for substance abuse treatment services; and to develop a program to encourage individuals who are successfully managing their substance abuse problems to serve as role models.

The Act appropriates funds to IDPH for development of a Healthy Iowans 2010 Plan for the following purposes: for core public health functions, including home health care and public health nursing services contracted through a formula by local boards of health, to enhance disease and injury prevention 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 Poising Prevention Program. The Act also appropriates funds to IDPH for 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 2002-2003, for assistance to counties with limited county mental health, mental retardation, and developmental disabilities services fund balances to continue reimbursement increases to service providers in the same amount as provided in FY 2001-2002.

The Act appropriates funds from the Healthy Iowans Tobacco Trust to the Iowa Empowerment Fund for FY 2002-2003 for deposit in the School Ready Children Grants Account.

The Act appropriates funds to DHS from the Healthy Iowans Tobacco Trust for implementation of the provisions of the federal Health Insurance Portability and Accountability Act that relate to the Medicaid Program. The Act provides that the moneys appropriated that remain unexpended or unencumbered at the end of FY 2002-2003 are not to revert but are to remain available for the purpose of this section until June 30, 2004.

The Act appropriates funds to the Department of Corrections from the Healthy Iowans Tobacco Trust for operation and staffing of the special needs unit at the Fort Madison correctional facility.

The Act provides that the moneys that were originally appropriated to IDPH for FY 2001-2002 for establishing and operating a substance abuse treatment facility and providing staffing for the facility, are instead to be used during the succeeding fiscal year to supplement the appropriations for the state Poison Control Center, for the value-based treatment program at the Newton Correctional Facility, and for substance abuse treatment. The Act provides that the moneys that are appropriated to IDPH for FY 2001-2002 for the Tobacco Use Prevention and Control Initiative that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the succeeding fiscal year.

The Act provides that of the $75 million of gambling-related revenues to be deposited in the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund for FY 2002-2003, $9 million is to be transferred to the Healthy Iowans Tobacco Trust. Additionally, the Act eliminates the appropriation of $27,087,000 for FY 2002-2003, made from the General Fund of the State to the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund.

The Act provides that the sections of the Act relating to appropriation of moneys to DHS for implementation of the federal Health Insurance Portability and Accountability Act and to nonreversion of moneys appropriated for the Tobacco Use Prevention and Control Initiative take effect May 10, 2002.

The Act provides that the section of the Act relating to nonexpenditure obligation and nonreversion of funds remaining unencumbered or unobligated on April 1, 2002, which were appropriated for the establishment and operation of a substance abuse treatment facility and which are to be available for FY 2002-2003, takes effect May 10, 2002, and is retroactively applicable to April 1, 2002.

HOUSE FILE 2623 - Compensation for Public Employees and Additional Provisions Full Text of Bill
By Committee on Appropriations.

This Act relates to compensation and benefits for public officials and employees, county mental health allowed growth, regulatory and other related matters of the state, and makes and reduces appropriations. The Act includes items that would have amended S.F. 2326 provisions that were item vetoed by the Governor. Consequently, this summary does not address those items because they were nullified by the Governor's veto. House File 2627 incorporates many of those items.

Division I - Compensation and Benefits

Division I of this Act relates to and appropriates moneys for the fiscal year beginning July 1, 2002, to fund salary adjustments for employees subject to collective bargaining agreements and for certain noncontract employees. Division I provides the funding from the transfer of a percentage of the proceeds received by the State Board of Regents as a result of the Principal Mutual Holding Company's demutualization and from the transfer of moneys from the Iowa Comprehensive Petroleum Underground Storage Tank Fund.

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

Division I allocates moneys to the judicial branch to fund salary increases for judges, justices and magistrates and for increases for other judicial branch employees. The salary increases amount to 3 percent, but do not begin until December 20, 2002. Division I allocates moneys to fund collective bargaining agreements and similar percentage increases for noncontract state employees, but the noncontract employees' increase does not begin until October 25, 2002.

Division I also provides supplemental authorization to fund salaries from trust, revolving and special funds for which the General Assembly has established a budget.

Division I funds the salary model coordinator, to maintain, in conjunction with the Legislative Fiscal Bureau, the state's salary model.

Division I provides for the collection of a surcharge on only the employer's share of the health insurance premium cost to fund the state's share of the terminal liability of the existing Wellmark health insurance contract. The health insurance plans of the State Police Officers Council collective bargaining unit are exempt from the surcharge.

Division II - Statutory and Session Law Changes

Division II makes statutory changes to the Code and changes to Session Laws as follows:

• Code Section 15E.112 is amended to allow moneys in the Value-Added Agricultural Products and Process Financial Assistance Fund to be used for administration of the fund.
• Code Section 18.75 is amended to require the Legislative Service Bureau to solicit and process orders for the distribution of state publications produced by the bureau.
• Code Section 18.97A is amended to provide that the Governor, Supreme Court, and Legislative Council shall control the number of state publications distributed by the Legislative Service Bureau to recipients in their respective branches.
• Code Section 124.401A is amended to enhance the penalty for manufacturing with intent to distribute certain controlled substances.
• Code Section 124.409(1), allowing probation for certain first-time offenders of controlled substance laws, is eliminated.
• New Code Section 239B.2B is enacted to make eligible for the Family Investment Program a conditional resident alien who was battered or subjected to extreme cruelty or whose child was battered or subjected to extreme cruelty by a person who is a U. S. citizen or lawful permanent resident.
• Code Section 249A.3, relating to an optional category covered under the Medical Assistance (Medicaid) Program for persons with disabilities who have earned income, is amended to offer an additional, alternative two-part option that only takes effect if the Department of Human Services does not win its appeal against the federal Centers for Medicare and Medicaid Services.
• Code Section 260G.4B amends the Accelerated Career Education Program by reducing the total amount of program job credits from all employers during FY 2002-2003 from $6 million to $3 million.
• Code Section 368.4 is amended to specify that a city's notice of the hearing on annexation moratorium agreements shall be served by regular mail.
• New Code Section 368.26, relating to involuntary annexations, is amended to specify that the municipal services to be provided in an annexed area must be within the legal authority of the annexing city.
• Code Section 476.97 is amended to permit the Utilities Board 180 days to consider certain rate changes, with one 60-day extension possible.
• Code Section 514I.5 is amended to provide that the members of the hawk-i (Healthy and Well Kids in Iowa) Board, who are appointed by the Governor, are to serve two-year staggered terms as designated by the Governor.
• The Code Section 541A.1 definition of an "individual development account" is amended to include a financial instrument certified by an operating organization to comply with federal requirements involving state and federal funds deposited to match account holder deposits, including two existing federal programs. Under prior law, Code Section 541A.3 provided that a state savings refund must be paid directly to an account holder's account. The Act allows for payment of the state savings refund to an operating organization's central reserve account for later distribution to an account holder's account.
• Code Section 602.1302(3) is amended to permit the cost of summoning jurors to be paid from a revolving fund established in the Code section.
• Code Section 602.8108(5) is amended to eliminate the requirement that 20 percent of the Court Technology and Modernization Fund be used for alternative dispute resolution and methods to resolve domestic abuse, and to permit the fund to be used for the Iowa Court Information System.
• Code Section 904.108 is amended to require the Department of Corrections to maintain a correctional training program, which does not necessarily need to be located at the Mount Pleasant Correctional Facility.
• The Act amends 2001 Iowa Acts, Chapter 182, Section 7, subsection 2, to allow the Iowa Veterans Home to retain certain moneys that exceed the amount budgeted in FY 2001-2002 and remain unencumbered or unobligated at the close of that fiscal year.
• The Department of Cultural Affairs is directed to identify an appropriate location in the State Capitol for a plaque honoring Iowa recipients of the Congressional Medal of Honor.
• Code Chapter 2A, which established the Commission on Compensation, Expenses, and Salaries for Elected State Officials, is repealed.
• The Act amends 2001 Iowa Acts, Chapter 191, Section 14, subsection 2, to allow the region in which group foster care services are provided to exceed its budget target for those services by up to 20 percent so long as the total overall funding allocated by the Department of Human Services for all child welfare services in the region is not exceeded.
• In addition to other adult dental services provided in 2002 Iowa Acts, H.F. 2245, Section 7, subsection 2, root canal treatments and general anesthesia and intravenous sedation may also be provided. This provision takes effect May 10, 2002.
• The FTEs for the State School for the Deaf are increased by 12.31 to 129.60 as provided in 2002 Iowa Acts, S.F. 2326.

Division III - Corrective Amendments

Division III provides corrective amendments to legislation enacted during the 2002 Session or to Code sections affected by legislation enacted during the 2002 Session.

Division IV - MH/MR/DD - FY 2003-2004 Allowed Growth

Division IV makes an appropriation and establishes the allowed MH/MR/DD growth factor adjustment for FY 2003-2004 and distributes the appropriation in a similar manner as the Act provides for FY 2002-2003.

Division V - Appropriation Adjustments

Division V makes appropriations and transfers as follows:

1. In 2002 Iowa Acts, S.F. 2326, as follows:
   • Increases by $8.35 million the appropriation for the Student Achievement and Teacher Quality Program.
   • Increases by $1 million the appropriation for general state financial aid to community colleges.
   • Reduces by $5 million the total appropriation to the State University of Iowa, Iowa State University of Science and Technology, and the University of Northern Iowa.
   • Increases by $1.5 million the appropriation to the hawk-i Program.
   • Reduces by $2.25 million the amount appropriated for Phase III under the Educational Excellence Program.
2. Transfers $8.9 million from the Iowa Comprehensive Petroleum Underground Storage Tank Fund for purposes of the Student Achievement and Teacher Quality Program.
3. Transfers $10 million of premium tax revenues, if S.F. 2318 (see Taxation) is enacted, for purposes of the Student Achievement and Teacher Quality Program.
4. Transfers $5 million for purposes of the Student Achievement and Teacher Quality Program from gambling revenues that would otherwise be deposited into the Rebuild Iowa Infrastructure Fund.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A provision that would have amended Code Section 8.63(4) to eliminate a standing appropriation to agencies to pay off their loans to the Innovations Fund if the agency project results in a net increase to the General Fund of the State.
2. A provision in Code Section 12.21, concerning the authority of the Treasurer of State to enter into an agreement with a financial institution or credit card processor to provide credit card receipt processing for state departments, would have been amended to provide that any credit card charges shall be considered to be part of the payment due and any charges paid shall be paid from the aggregate fees collected by the state agency. Related changes were also vetoed.
3. A provision that would have amended Code Section 556.12 provide that the annual publication of lists of unclaimed property by the Treasurer of State shall not be issued between September 10 and November 10 of each year. Under present law, the Treasurer of State is required to issue the annual publication no later than November 30.
4. A provision that would have required the departments of General Services, Management, Personnel, and Information Technology, in studying reorganization and identifying duplicative positions, to consult with the affected agencies and to consider previous studies.
5. A provision that would have required the departments of Agriculture and Land Stewardship and Natural Resources to submit quarterly written reports on their expenditures and full-time equivalent positions (FTEs) allocated for the previous quarter.
6. The provisions that would have deleted the amount appropriated by 2002 Iowa Acts, S.F. 2326, for public transit assistance and would have reduced by a specified amount the standing appropriation for public transit assistance for FY 2001-2002.

HOUSE FILE 2625 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions - Fiscal Year 2001-2002 - SECOND EXTRAORDINARY SESSION Full Text of Bill
By Committee on Appropriations.

This Act addresses public funding provisions and related regulatory matters and makes, reduces and transfers appropriations and adjusts other expenditures to balance the General Fund of the State budget for FY 2001-2002. The Act is organized into divisions as follows: appropriations or transfers to the General Fund, appropriations or transfers to the Medical Assistance (Medicaid) Program, miscellaneous transfers, state reserve funds, other Medicaid provisions, miscellaneous provisions, tax credits under the New Jobs and Income Program and the Enterprise Zone Program, and incentive program extension for state employees who separate from employment.

Division I makes appropriations or transfers from the following funds to the General Fund of the State for FY 2001-2002: Iowa Economic Emergency Fund ($105 million), Cash Reserve Fund ($90 million), Environment First Fund, and Terminal Liability Health Insurance Fund. The division transfers a portion of an existing appropriation made to the State Board of Regents for construction of the engineering teaching and research complex; however, the transferred appropriation is replaced with authority to issue bonds for that amount for the same purpose and an FY 2003-2004 appropriation to pay the bonds.

Division I also provides that to the extent the balance of the Iowa Economic Emergency Fund is insufficient to make an appropriation of up to $50 million to the General Fund to address a deficit at the close of FY 2001-2002, that insufficiency shall be appropriated from the Cash Reserve Fund. The Act provides that an appropriation shall not be made from the General Fund to repay the Iowa Economic Emergency Fund or the Cash Reserve Fund in the following fiscal year. In addition, for FY 2002-2003, the requirement in Code Section 8.57 for an automatic appropriation from the General Fund to the Cash Reserve Fund to bring the Cash Reserve Fund to a specific level is made inapplicable. Division I also provides that members of the General Assembly do not receive a per diem of $86 per day during the Second Extraordinary Session that convened on May 28, 2002.

Division II makes transfers for FY 2001-2002 from the following revenues, appropriations and funds to the Department of Human Services (DHS) for Medicaid reimbursement and associated costs: snowmobile and all-terrain vehicle fees credited to the Special Conservation Fund, Environment First Fund, Strategic Investment Fund, Physical Infrastructure Assistance Fund, Alternative Drainage System Assistance Fund, Terminal Liability Health Insurance Fund, and an appropriation for airport engineering studies and improvement projects.

Division III makes transfers from various funds and other moneys to be used for other purposes for FY 2001-2002 as follows: from the Terminal Liability Health Insurance Fund to the State Public Defender to be used for indigent defense; from the Environment First Fund to the State Appeal Board for payment of claims against the state; from the Victim Compensation Fund to the State Employee Unemployment Compensation Account; from the Environment First Fund and the Terminal Liability Health Insurance Fund to the Executive Council to be used for performance of duty expenses; and from the Value-Added Agricultural Products and Processes Financial Assistance Fund and the Terminal Liability Health Insurance Fund to the Elderly and Disabled Property Tax Credit and Reimbursement Fund for payment of renters' claims.

Division IV relates to state reserve funds. The maximum balance of the Iowa Economic Emergency Fund in Code Section 8.55 is reduced from 5 percent to 2.5 percent of the adjusted revenue estimate for a fiscal year. The maximum balance of the Cash Reserve Fund is increased from 5 percent to 7.5 percent of the adjusted revenue estimate for a fiscal year. An existing provision requiring a three-fifths majority vote if an appropriation would cause the Cash Reserve Fund balance to fall below 3 percent of the adjusted revenue estimate for a fiscal year is changed to 3.75 percent. Conforming changes are made to the automatic appropriation to annually fill the Cash Reserve Fund to reflect the percentage change in the fund's maximum balance. These provisions take effect July 1, 2003.

Division IV provides that the amount of the standing transfer in Code Section 8.55 to the Senior Living Trust Fund and the Endowment for Iowa's Health Account upon the Iowa Economic Emergency Fund achieving its maximum balance is increased from $35.5 million to $51.5 million and from $51.5 million to $60.5 million, respectively.

Division IV amends Code Section 8.57 to provide that moneys in the Rebuild Iowa Infrastructure Fund may be used for cash flow purposes provided the moneys are returned by the end of the fiscal year. This cash flow authorization is also provided for the Senior Living Trust Fund in Code Section 249H.4.

Division IV creates a new fund called the Pending Senior Living Trust Fund where moneys that are received for the Senior Living Program which are not available for appropriation are deposited. These moneys may be used for cash flow purposes.

Division IV provides that for FY 2001-2002 and FY 2002-2003, authority is rescinded that would allow state agencies to retain and use for training and technology up to 50 percent of an operational appropriation that would otherwise revert to the General Fund.

Division V addressed other provisions relating to the Medicaid Program but was item vetoed by the Governor.

Division VI addresses miscellaneous provisions. The division provides for the assessment of a fee to intermediate care facilities for persons with mental retardation. The proceeds from this fee are to be credited to the Medicaid appropriation. If federal financial participation to match the proceeds becomes unavailable, the assessment of the fee is terminated.

The division amends a 2001 Iowa Acts, Chapter 188, appropriation from the Community Attraction and Tourism Fund for tourism operations to specify that the appropriation is not made from moneys that originate from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund.

The division provides that regular per diem reimbursement costs billed by the Department of Corrections to the United States Marshal's Service during FY 2002-2003 are deposited in the State General Fund. Any extraordinary cost reimbursements in excess of the regular per diem shall be used by the department to pay these costs.

The division also substitutes the Auditor of State with a voting member selected by the Legislative Council on the Program Elimination Commission created in H.F. 2627.

The division modifies a requirement contained in H.F. 2627 to provide that the function of eliminating from the State Board of Regents table of organization those positions that have been vacant for one year or more is to be performed by the state board and the Department of Management is to address table of organization changes for the remainder of the executive branch.

The division revises state employee furlough language contained in H.F. 2627 by changing a prohibition against furlough of more than 25 percent of a division's employees at the same time to a statement of legislative intent. In addition, if the intent is in conflict with state law or collective bargaining requirements, the agency is directed to act to minimize the furlough impact.

The division increases an appropriation in H.F. 2614 to the State Board of Regents for tuition replacement and reduces an appropriation in H.F. 2627 for the Medicaid Program.

Except for the change in the appropriation for tourism operations that takes effect June 4, 2002, Division VI takes effect July 1, 2002.

Division VII relates to tax credits under the New Jobs and Income Program and the Enterprise Zone Program. Under present law, a farmers' cooperative that owns an ethanol-producing facility which is not required to file an Iowa corporate income tax return is entitled to a tax credit under the New Jobs and Income Program. This tax credit is claimed by the members. However, if the farmers' cooperative must file an Iowa corporate income tax return, all of the credit must be used by the cooperative. This division allows a farmers' cooperative that files an Iowa corporate income tax return to transfer all or a portion of the tax credit to its members. The division also allows cooperatives that file as partnerships for federal tax purposes to elect to have the credit acquired for developing building space in an enterprise zone to pass through the credit to their members. The division applies retroactively to January 1, 2002, for tax years beginning on or after that date.

Division VIII establishes the FY 2002-2003 Sick Leave and Vacation Incentive Program for eligible employees of the executive branch of the state who are not covered by a collective bargaining agreement and who separate from state employment. The program, which shall be administered by the Department of Personnel, is essentially an extension of the program offered state employees during FY 2001-2002. The division also requires the Legislative Council to offer a similar program to legislative branch employees and allows the judicial branch discretion to offer the program to its employees. The division permits eligible executive branch employees for whom the sum of the number of years of credited service under IPERS or PORS and the employee's age as of December 31, 2003, equals or exceeds 75 to separate from service with the state and receive a sick leave and vacation incentive benefit payable in five fiscal years beginning with the fiscal year that ends on June 30, 2002. The incentive benefit is equal to the employee's unused vacation plus the lesser of the employee's regular annual salary or the value of the employee's sick leave. To receive the incentive benefit, an eligible employee must submit an application to participate in the program by August 14, 2002, separate from state employment by August 15, 2002, acknowledge the employee's ineligibility to return to permanent part-time or permanent full-time employment with the state, and waive any claims to unused sick leave or vacation balances otherwise payable upon termination of employment. Employees who participate in the program, as well as the corresponding program established pursuant to a collective bargaining agreement, are eligible to continue to participate in group insurance coverage from the state in the same manner as employees who retire from state employment. The division also permits release of IPERS records to the Legislative Fiscal Bureau and the departments of Management, Revenue and Finance, and Personnel for the purpose of monitoring and administering the Sick Leave and Vacation Incentive Program and the corresponding program available to employees covered by a collective bargaining agreement that authorizes a similar program. The release of records authority ceases as of June 30, 2003. Any savings generated by participation in the program shall be used to reduce the impact of the furlough program instituted for FY 2002-2003.

The division requires the Department of Personnel to submit reports to the General Assembly concerning the operation of the early termination programs, with an initial report required by October 1, 2002. Updated reports for an additional four years are also required.

The division also provides that if an employee organization agrees to a wage increase delay and agrees to participate in the early termination program, any across-the-board increases for July 1, 2002, are delayed until November 1, 2002, for employees not covered by the collective bargaining agreement of the same state employer of such employee organization.

Division IX provides that unless otherwise provided, the Act takes effect June 4, 2002.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A directive for the Department of Human Services to require recipients to report, on a monthly basis, changes in income and resources that affect eligibility and to charge copayments on each covered drug prescription and refill.
2. A deletion of the requirement in Code Section 257.8 for the setting of the state percent of growth for purposes of the School Foundation Program, to be enacted within 30 days of the submission of the Governor's budget to the General Assembly.
3. Language modifying requirements contained in H.F. 2627 to provide that provisions affecting State Board of Regents institutions are to be performed by the state board. These requirements involve a review of job functions that duplicate the functions of the Department of Personnel. In addition, the state board was authorized to determine whether to implement a restriction on subsidy or reimbursement for a class or other course of study leading to an advanced degree for a regents employee.
4. A provision that reduced state funding for the State Library by $108,000, and established the intent of the General Assembly to either eliminate, or remove from the authority of the State Library, the State Medical Library. The provision established a State Medical Library Continuation Task Force to determine whether to continue to maintain the State Medical Library and if so, where it should be relocated. If the task force recommends elimination, the task force is directed to submit a plan for the distribution of State Medical Library assets. The task force membership was to include the State Librarian and various academic and professional interests. The task force was to submit its recommendation for continuation or elimination of the State Medical Library in a report to various interested legislators by December 15, 2002.

HOUSE FILE 2626 - Appropriations - Transportation - SECOND EXTRAORDINARY SESSION Full Text of Bill
By Committee on Appropriations.

This Act makes appropriations for FY 2002-2003 from the Road Use Tax Fund and the Primary Road Fund to the Iowa Department of Transportation (IDOT).

Appropriations from the Road Use Tax Fund include appropriations for driver's license production costs, salaries, operations, administrative services, planning, motor vehicles, the merit system, unemployment and workers' compensation, audit expenses, 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, rewriting the vehicle registration system, indirect cost recoveries, and participation in the Mississippi River Parkway Commission.

Appropriations from the Primary Road Fund include appropriations for salaries, operations, planning, highways, motor vehicles, the merit system, unemployment and workers' compensation, disposal of hazardous wastes at field locations, indirect cost recoveries, audit expenses, producing transportation maps, roof replacement and other improvements at field facilities, compliance with the federal Americans With Disabilities Act at department facilities, and renovation of the transportation administration building.

The Act also provides that moneys for public transit assistance under Code Chapter 324A are to be credited directly to IDOT from the motor vehicle use tax moneys credited to the Road Use Tax Fund rather than to the General Fund of the State and then appropriated to IDOT for public transit. This provision takes effect July 1, 2004, and the remainder of the Act takes effect July 1, 2002.

HOUSE FILE 2627 - Miscellaneous Appropriations, Reductions, Transfers, and Other Provisions - 2002-2003 and Prior Fiscal Years - SECOND EXTRAORDINARY SESSION Full Text of Bill
By Committee on Appropriations.

This Act provides appropriations from the General Fund to executive branch agencies and the judicial branch for FY 2002-2003, reduces or limits standing appropriations, and transfers appropriations. The Act is organized into divisions corresponding to the General Assembly's joint appropriation subcommittees.

The Act appropriates a net total of $1.321 billion from the General Fund and authorizes 15,708.7 full-time equivalent positions (FTEs). When combined with previously enacted appropriations, FY 2002-2003 General Fund appropriations total $4.473 billion, a decrease of $137.8 million compared to the FY 2001-2002 estimated net appropriations for the areas included. The Act also appropriates $181.1 million from non-General Fund sources. The Act transfers from other funds to the General Fund for FY 2002-2003 a total of $71 million. Unless otherwise provided, each division of the Act takes effect July 1, 2002.

Division I - Administration and Regulation

The state departments and agencies addressed in this division 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. Division I appropriates moneys for the state's membership in the National Governors Association and for the Department of Personnel's Ready to Work Program coordinator.

Division I appropriates $78.7 million from the General Fund of the State and authorizes 1,966.7 FTEs, a decrease of $4.9 million and an increase of 9.8 FTEs compared to the FY 2001-2002 estimated net appropriations. The division also appropriates a total of $23.2 million from other funds.

Division I includes language directing the Department of Management to work on state government reorganization, management span of control, and elimination of duplication.

The lottery is authorized to investigate and implement a plan for pull-tab vending machines with video monitors know as the video lottery. The plan, if implemented, shall include provisions for restricting access to these machines by minors.

Code Section 476.53 is amended to provide that the Utilities Board and the Consumer Advocate can expend additional moneys to provide temporary staff necessary to perform certain functions, including review of ratemaking principles proposed for construction of a new generating facility.

Code Section 505.7 is amended to permit the Insurance Division to expend additional funds to perform the statutory duties of the division if those additional funds will be collected from moneys and fees collected by the division.

Code Section 546.10, relating to the establishment and administration of the Professional Licensing Division of the Department of Commerce, is amended by adding provisions appropriating 85 percent of any amount representing an increase in funding implemented by licensing boards or commissions listed in the Code section to the division for allocation to the boards or commissions for the fiscal year beginning July 1, 2002, and succeeding fiscal years.

Division II - Agriculture and Natural Resources

Division II provides funding for the departments of Agriculture and Land Stewardship and Natural Resources. Division II appropriates a total of $32.7 million from the General Fund of the State and authorizes 1,515.3 FTEs, a decrease of $2.2 million and an increase of 0.7 FTE compared to the FY 2001-2002 estimated net appropriations. Division II appropriates moneys from a number of sources, including the General Fund of the State and the State Fish and Game Protection Fund.

For the Department of Agriculture and Land Stewardship, moneys are appropriated and FTEs authorized in order to support its divisions (the Administrative Division, the Regulatory Division, the Laboratory Division, and the Soil Conservation Division).

Division II appropriates moneys to support animal industry programs, including a program to regulate horse and dog racing by the Department of Agriculture and Land Stewardship. The division appropriates moneys to support the department for membership in a river association; and for the administration of a project in conjunction with the Iowa Corn Growers Association.

For the Department of Natural Resources (DNR), moneys are appropriated and FTEs authorized in order to support its divisions (the Administrative and Support Services Division, the Parks and Preserves Division, the Forests and Forestry Division, the Energy and Geological Resources Division, and the Environmental Protection Division).

Division II also makes appropriations from other funds and accounts. Moneys are appropriated to the DNR from the State Fish and Game Protection Fund for support of the Division of Fish and Wildlife. Moneys are transferred to the State Fish and Game Protection Fund to support snowmobile programs and enforce state navigation laws administered by the DNR.

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.

Division II permits the DNR to use additional funds for staffing to reduce the department's floodplain permit backlog and to use additional funds available from storm water discharge permit fees for staffing required to implement the Federal Total Maximum Daily Load Program.

Division III - Economic Development

Division III makes appropriations and transfers from the General Fund of the State to the Department of Economic Development (IDED), the University of Iowa, the University of Northern Iowa, Iowa State University, the Department of Workforce Development (IWD), and the Public Employment Relations Board. Division III appropriates a total of $25.4 million from the General Fund of the State and authorizes 463.6 FTEs, a decrease of $9 million and 0.7 FTE position compared to the FY 2001-2002 estimated net appropriations.

Division III provides that the goals for IDED shall be to expand and stimulate the state economy, increase the wealth of Iowans, and increase the population of the state.

Division III appropriates from loan repayments on loans under the former Rural Community 2000 Program to IDED moneys for providing financial assistance to Iowa's councils of governments that provide technical and planning assistance to local governments and for the Rural Development Program for the purposes of the program, including the Rural Enterprise Fund and collaborative skills development training.

Division III appropriates moneys collected by the Division of Insurance of the Department of Commerce in excess of the anticipated gross revenues to IDED for purposes of insurance economic development and international insurance economic development.

Moneys are appropriated from the Community Attraction and Tourism Fund to IDED for tourism operations.

Moneys from the Iowa Community Development Loan Fund are appropriated to IDED for purposes of the Community Development Program.

Division III appropriates moneys from the Workforce Development Fund account to the Workforce Development Fund and provides that moneys appropriated or transferred to or receipts credited to the Workforce Development Fund may be used for administration of workforce development activities.

All moneys remaining in the Job Training Fund on July 1, 2002, and any moneys appropriated or credited to the fund during FY 2001-2002 are transferred to the Workforce Development Fund.

Moneys are appropriated from the Administrative Contribution Surcharge Fund to IWD for salaries, support, maintenance, conducting labor market surveys, miscellaneous purposes, and for Workforce Development Regional Advisory Board member expenses.

Moneys are appropriated from the Special Employment Security Contingency Fund to IWD for the Division of Workers' Compensation and immigration service centers.

A standing limited appropriation from the Value-Added Agricultural Products and Processes Financial Assistance Fund to the Office of Renewable Fuels and Coproducts is repealed. The Office of Renewable Fuels and Coproducts is authorized to apply to IDED for moneys in the Value-Added Agricultural Products and Processes Financial Assistance Fund for deposit in the Renewable Fuels and Coproducts Fund.

The Auditor of State is requested to review the audit of the Iowa Finance Authority performed by the auditor hired by the authority. The Auditor of State is also requested to conduct a performance audit of the authority to determine the effectiveness of the authority and the programs of the authority.

For FY 2002-2003, any entity that was specifically identified in the FY 2001-2002 economic development appropriations to receive funding from IDED, excluding any entity identified to receive a direct appropriation for FY 2002-2003, may apply to the department for assistance through the appropriate program.

In providing moneys from the Shelter Assistance Fund to homeless shelter programs, IDED must explore the potential of allocating moneys to programs based in part on their ability to move their clients toward self-sufficiency.

The Department of Economic Development is required to submit a report identifying any moneys received from the ISCC Liquidation Corporation.

Moneys are appropriated from moneys credited to the state by the Secretary of the Treasury of the United States pursuant to the Social Security Act to IWD for the administration of the Unemployment Compensation Program only.

The standing limited appropriation for the School-to-Career Program employer refunds is reduced.

Division IV - Education

Division IV reduces or eliminates state moneys previously appropriated for FY 2002-2003 from the General Fund of the State to the College Student Aid Commission, the Department of Cultural Affairs, and the Department of Education as enacted in 2002 Iowa Acts, S.F. 2326. The reduction in funding equals $3.7 million, resulting in a net decrease of $43.4 million and no change in FTEs compared to the FY 2001-2002 estimated net appropriations.

Division IV eliminates state funding S.F. 2326 appropriated to the College Student Aid Commission for purposes of forgivable loans for the Des Moines University - Osteopathic Medical Center and the Chiropractic Graduate Student Forgivable Loan Program.

Division IV reduces state funding that S.F. 2326 appropriated to the Department of Cultural Affairs for purposes of its Administration, Arts and Historical Divisions and for purposes of Community Cultural Grants.

Division IV reduces the moneys S.F. 2326 appropriated to the Department of Education for purposes of the department's general administration, vocational education administration, Board of Educational Examiners, Division of Vocational Rehabilitation Services, independent living for persons with disabilities, State Library for general administration and the Enrich Iowa Program, library service area system, Public Broadcasting Division, and the Iowa Empowerment Fund. The division eliminates funding S.F. 2326 appropriated to the department for purposes of providing support to assist a vocational education youth organization statewide school-to-work implementation, Jobs for America's Graduates, and the Americorps After-School Initiative.

Division IV also amends the Code, as amended by S.F. 2326, to reduce the amount of annual state assistance for Iowa Tuition Grants.

Division IV expands the Operation Recognition Program to include, in addition to the veterans of World War II, the veterans of World War I and the Korean and Vietnam Conflicts. The program is administered by the Department of Education and its purpose is to award honorary high school diplomas to honorably discharged veterans who are residents or former residents of the state and who left high school prior to graduation to enter U.S. military service. Diplomas may be issued posthumously. This provision takes effect June 12, 2002.

Division IV also permanently eliminates the Community College Vocational-Technical Technology Improvement Program.

Division V - Health and Human Rights

This division 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. Division V appropriates a total of $47.7 million from the General Fund of the State and authorizes 1,426.9 FTEs, a decrease of $38.2 million and 13.8 FTEs compared to the FY 2001-2002 estimated net appropriations.

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 and senior volunteer programs, resident advocate committee coordination, employment, and other services that may include, but are not limited to, adult day services, respite care, chore services, telephone reassurance, information and assistance, and 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 (D.A.R.E.) Program.

DEPARTMENT OF PUBLIC HEALTH. The Act appropriates funds to the Iowa Department of Public Health (IDPH), including funds for addictive disorders related to reducing the use of tobacco, alcohol, and other drugs, and treating individuals affected by addictive behaviors, including gambling; 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 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 IDPH to retain fees collected from the certification of lead inspectors and lead abaters to support the certification program, and also authorizes IDPH 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 authorizes IDPH 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 IDPH and reimbursed to a private organization conducting the examination.

The Act authorizes IDPH 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 to retain and expend moneys from licensing and examination revenues.

DEPARTMENT OF HUMAN RIGHTS. The Act appropriates funds to the seven divisions of the Department of Human Rights (central administration, Deaf Services, Persons With Disabilities, Latino Affairs, Status of Women, Status of African-Americans, and Criminal and Juvenile Justice Planning).

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. The Iowa Veterans Home is required to operate with a net State General Fund appropriation and authorized General Fund moneys may be used for cash flow management purposes.

GAMBLING TREATMENT FUND APPROPRIATIONS. The Act appropriates funds available in the Gambling Treatment Fund to IDPH for the Addictive Disorders Program. Any funds remaining in the fund are to be used for 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 Iowa 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 2002-2003.

OTHER PROVISIONS. Division V extends the Vital Records Modernization Project, which provides for an enhanced fee that is earmarked for technology improvements, to June 30, 2003.

Division V provides that the Department for the Blind, the Iowa State Civil Rights Commission, the Department of Elder Affairs, IDPH, the Department of Human Rights, the Governor's Office of Drug Control Policy, and the Commission of Veterans Affairs shall submit a report to the chairpersons and ranking members of the Joint Appropriations Subcommittee on Health and Human Rights providing all management to staff ratios of all funded positions as of January 13, 2003.

Division V also extends the Scope of Practice Review Committee Project to July 1, 2003.

Division VI - Human Services

Division VI makes appropriations for FY 2002-2003 for the Department of Human Services (DHS) and includes other appropriations and provisions involving human services and health care. Division VI appropriates a total of $713.2 million from the General Fund of the State and authorizes 5,448.7 FTEs for DHS. When combined with the previously enacted appropriation for the children's health insurance program (hawk-i), the total appropriated is $739.6 million. This is a decrease of $15.6 million and a decrease of 300.4 FTEs compared to the FY 2001-2002 estimated net appropriations.

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF). Division VI appropriates moneys from the TANF Block Grant Fund for a number of purposes, including: the Family Investment Program; field operations; general administration; local administrative costs; child care assistance, including funding for 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 grants; pregnancy prevention grants; technology needs and other resources to meet federal welfare reform requirements; volunteers; individual development accounts; the Healthy Opportunities for Parents to Experience Success (HOPES) Program; and for transfer to the federal Social Services Block Grant.

Division VI continues the appropriation of federal TANF Block Grant moneys 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.

The TANF Block Grant is subject to reauthorization during FY 2002-2003 and legislative intent is stated that the General Assembly will reallocate funding if the federal government reduces the amount of the block grant.

FAMILY INVESTMENT PROGRAM (FIP). Under federal welfare reform provisions, federal funding is provided for FIP 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 DHS to continue expansion of the Electronic Benefits Transfer (EBT) Program with a target date for statewide implementation of October 1, 2003, and provides that a retailer providing funds transfer system equipment is not to be reimbursed a transaction fee.

EMERGENCY ASSISTANCE. Division VI provides funding under the TANF appropriation for the Emergency Assistance Program. The maximum grant level is limited to $500 per family in any 12-month period. The department is required to continue the process for retaining and redistributing refunds or rent deposits returned to the state under the Emergency Assistance Program. The allocation to the Community Voice Mail Program is eliminated.

CHILD SUPPORT RECOVERY. Division VI 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, continues 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 DHS 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). From all sources there is a decrease in the appropriation for the Medicaid Program in comparison with the FY 2001-2002 appropriation. In addition, appropriations affecting reimbursements to various Medicaid services providers are made from Tobacco Settlement Funds (see H.F. 2615) and the Senior Living Trust Fund (see H.F. 2613). Division VI does all of the following:

• Continues the authorization for DHS to transfer Medicaid funds to a separate account for expenditures required to provide case management services 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 AIDS/HIV Health Insurance Premium Payment Program.
• Transfers $950,000 from IDPH to the Medicaid Program for continuation of the Integrated Substance Abuse Managed Care System.
• Directs DHS, in administering the Medicaid home and community-based waiver for persons with physical disabilities, to limit the total number of openings for persons with physical disabilities served at any one time to the number approved in the waiver by the Secretary of the U.S. Department of Health and Human Services.
• Directs DHS, in consultation with IDPH and the Department of Education, to continue to utilize the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) funding under Medicaid to the extent possible to implement the screening component of the EPSDT Program through the school system, and to utilize maternal and child health centers, the Public Health Nursing Program, or school nurses.
• Directs DHS to continue working with county representatives in aggressively implementing the rehabilitation option for services to persons with chronic mental illness under the Medicaid Program.
• Directs DHS, if the federal Centers for Medicaid and Medicare Services 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 Medicaid family planning services, regardless of the change in circumstances of a woman who was a Medicaid recipient when the pregnancy ended.
• Directs DHS to aggressively pursue options for providing Medicaid 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, and 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 matching funds for DHS to participate in a federal home telecare pilot program.
• Requires DHS to provide information to legislators concerning the Drug Prior Authorization Program.
• Reduces funding for reimbursement and associated costs as specified in H.F. 2625.

HEALTH INSURANCE PREMIUM PAYMENT PROGRAM. Division VI appropriates funds to continue the Health Insurance Premium Payment Program that provides for payment for private health insurance in lieu of Medicaid Program coverage.

MEDICAL CONTRACTS. Division VI provides funding for contracted services associated with the Medicaid Program.

Division VI 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, 2002, 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, 2002, to provide for such coverage.

STATE SUPPLEMENTARY ASSISTANCE (SSA). Division VI appropriates funding for SSA and the Medicare Program home and community-based services waiver rent subsidy but eliminates the provision of funeral assistance. Division VI 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. Division VI authorizes DHS to take necessary actions to ensure that federal requirements are met. Division VI also authorizes DHS to continue a rent subsidy program for certain adults who are receiving assistance under a Medicaid 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. The appropriation provides funding for the State Child Care Assistance Program and child day care resource and referral services. Division VI requires DHS to use moneys deposited in the Child Care Credit Fund for the State Child Care Assistance Program.

JUVENILE INSTITUTIONS. Division VI 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 to limit the population levels based on 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. Division VI decreases this appropriation compared with the previous fiscal year. Division VI provides for continuation of the funding cap for group foster care and provides that if annualization of a service area's current expenditures indicates that the area 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 for whom termination from the program is appropriate. Dispositional hearings are to be set for those so identified. Division VI 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 the Medicaid Program.

Division VI 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 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. Division VI 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.

Division VI 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; provides that any federal funds received by the state during state FY 2002-2003 as a result of expenditure of state funds appropriated during the previous state fiscal year for a service or activity funded under the Child and Family Services appropriation are to be used as additional funding for the services provided under the section; provides funding for clinical assessment services; provides funding for protective child care assistance; provides funding for court-ordered services provided to juveniles; provides funding for school-based supervision of children adjudicated delinquent and requires that a portion of the cost of school-based supervision personnel shall be paid by the school district or other source; directs DHS to maximize the capacity to draw federal funding under the federal Title IV-E Program; permits DHS to 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; and provides legislative intent that DHS continue strong support of the initiative for decategorization of child welfare funding.

JUVENILE DETENTION HOME FUND. Division VI addresses the 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. Division VI 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, 2001, 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.

COMMUNITY-BASED PROGRAMS. The State General Fund appropriation for community-based programs is eliminated and instead TANF funding is appropriated for pregnancy prevention and child abuse prevention.

FAMILY SUPPORT SUBSIDY PROGRAM. Division VI reduces the program funding relative to the revised amount for the previous fiscal year.

MENTAL HEALTH INSTITUTES. Division VI provides appropriations to institutes at Cherokee, Clarinda, Independence, and Mount Pleasant at a reduced amount relative to the revised amount for the previous fiscal year. Division VI 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. Division VI 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. Division VI continues the authorization of DHS to provide persons being discharged from an institute with assistance in obtaining federal Supplemental Security Income Program benefits.

STATE RESOURCE CENTERS. Division VI reduces the appropriations for the State Resource Center at Glenwood and for the State Resource Center at Woodward compared with appropriations for the previous fiscal year. Division VI 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 2002-2003 are to be deposited into each center's account, and Division VI designates the funding sources that are to be so deposited. Division VI provides that if a waiting list exists for a service, funding is available, and other criteria are met, a resource center superintendent may authorize opening up two units or other facilities to address the need.

SPECIAL NEEDS GRANTS AND STATE CASES. Division VI slightly decreases the prior level of funding for the Special Needs Grants Program. Division VI decreases the appropriation for MH/DD state cases compared with the previous year's appropriation.

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

• Under current law, the state is required to annually provide funding for the growth in county MH/DD services expenditures. Division VI provides for the distribution of the approximately $14.2 million appropriated for growth and the approximately $17.7 million appropriated for the MH/DD Community Services Fund. In the 2001 Session, legislation was enacted that reduced the combined growth and community services funding and implemented a distribution system.
• This reduction concept is continued for FY 2002-2003. In order to spread the approximately $12.3 million reduction among counties, Division VI provides that the funding formulas for the appropriations are applied as though the appropriations were made at higher levels, and then applies a withholding factor 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 in order to match distributions with the amount actually appropriated.
• Unless a county complies with the 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. Division VI decreases the appropriation for this pilot program for adult persons with physical disabilities in an urban and a rural area compared with the previous fiscal year. Division VI prohibits the pilot project and any federal home and community-based waiver developed under the Medicaid Program from being implemented in a manner that would require additional county or state costs for assistance provided. Division VI also prohibits acceptance of new applicants, but an individual receiving services as of June 30, 2002, 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 and requires that the program be relocated from the Oakdale campus to the State Mental Health Institute at Cherokee.

FIELD OPERATIONS, GENERAL ADMINISTRATION, AND VOLUNTEERS. Appropriations are included for DHS field operations, general administration, and volunteers. Division VI allocates $57,000 for the Prevention of Disabilities Council.

ADDITIONAL FEDERAL FUNDING. Division VI authorizes DHS to pursue approval of a state Medicaid Program plan amendment to use Medicaid funding for targeted case management services to children at risk of maltreatment or in need of protective services. Division VI appropriates any additional federal financial participation to DHS. In addition, Division VI requires that the first $10 million in additional federal financial participation received from such efforts in FY 2001-2002 and FY 2002-2003 shall be used to replace federal child welfare funding reductions.

MEDICAID, STATE SUPPLEMENTARY ASSISTANCE, AND SOCIAL SERVICE PROVIDERS REIMBURSED UNDER THE DEPARTMENT OF HUMAN SERVICES. Division VI establishes reimbursement rates for social services providers. However, see H.F. 2613 and H.F. 2615 for increases in reimbursements to some of these providers.

Division VI provides all of the following for FY 2002-2003:

• Reimbursement for nursing facilities shall be as provided in H.F. 2613.
• 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.
• Reimbursement rates for hospitals for inpatient and outpatient service, home health agencies, dental services, and community mental health services are to remain at the rates in effect on June 30, 2002.
• DHS is required to continue the revised 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 Medicaid Program.
• Rural health clinics, hospices, independent laboratories, and acute mental hospitals reimbursement rates are to be increased in accordance with increases under the federal Medicare 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 rate for PMICs shall remain at the rates in effect on June 30, 2002, based on per day rates for actual costs.
• Unless otherwise specified, all noninstitutional medical assistance provider reimbursement rates shall remain at the rates in effect on June 30, 2002, with the exception of AEAs, local education agencies, infant and toddler services providers, and those providers whose rates are required to be determined under a cost-based methodology for noninstitutional health providers.
• Notwithstanding Code Section 249A.20, the average reimbursement rates for health care providers eligible for use of the Medicare resource-based relative value scale reimbursement methodology shall remain at the rates in effect on June 30, 2002.
• In addition to other dental services provided to adults, root canal treatments on permanent anterior teeth and necessary general anesthesia and intravenous sedation are to be provided.
• The maximum reimbursement rate for residential care facilities shall not be less than $25.92 per day for the time period July 1, 2002, through December 31, 2002, and shall not be less than $26.20 per day for the time period January 1, 2003, through June 30, 2003. The flat reimbursement rate for facilities electing not to file cost reports is established as not less than $18.52 per day for the time period July 1, 2002, through December 31, 2002, and not less than $18.72 per day for the time period January 1, 2003, through June 30, 2003.
• The maximum reimbursement for providers reimbursed under the in-home health-related care program shall be at least $498.29 per month for the time period July 1, 2002, through December 31, 2002, and shall be at least $503.67 per month for the time period January 1, 2003, through June 30, 2003.
• The foster family basic daily maintenance rate and the maximum adoption subsidy rate remain at $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.
• The maximum reimbursement rates for social service providers are to remain at the rates in effect on June 30, 2002, 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, 2002.
• The reimbursement rate for shelter care providers is to continue to be calculated using a cost report and the maximum rate shall remain at $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.
• DHS is to calculate the reimbursement rate for intermediate care facilities for persons with mental retardation at the 80th percentile.
• Child care provider reimbursement rates are to be set 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.
• DHS may modify reimbursement rates for providers reimbursed by DHS 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 H.F. 2615 and H.F. 2613).

TRANSFER AUTHORITY. Division VI 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. Division VI 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. Division VI limits the number of additional investigative staff to five.

STATUTORY AND OTHER PROVISIONS. Division VI amends Code Section 252B.4 to increase the application fee for nonpublic assistance clients of the Child Support Recovery Unit from $5 to $25.

Division VI addresses the county mental health, mental retardation, and developmental disabilities allowed growth factor adjustment. Under Code Section 331.439, the statute establishing the adjustment must be enacted during the fiscal year in progress two years prior to the fiscal year to which the adjustment is applicable. Division VI amends the adjustment previously enacted during the 2001 Legislative Session for FY 2002-2003.

Division VI also provides that moneys appropriated from various sources to the Medicaid Program for FY 2001-2002 and FY 2002-2003 that are in excess of actual expenditures are to be transferred to the Senior Living Trust Fund as repayment of amounts not otherwise repaid

Division VI provides that the following requirements in law or rule are suspended for FY 2002-2003: school attendance requirements for children participating in FIP (known as the "Learnfare" initiative), requirements for case permanency plan reviews for certain intact families, and the annual evaluation of the Family Support Subsidy Program.

Various provisions take effect June 12, 2002; otherwise, the division takes effect July 1, 2002.

Division VII - Justice System

Division VII makes appropriations for FY 2002-2003 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. Division VII appropriates a total of $354.3 million from the General Fund of the State and authorizes 4,887.7 FTEs, a decrease of $8.3 million and an increase of 35.3 FTEs compared to the FY 2001-2002 estimated net appropriations. The most significant decrease is applied to the Department of Justice.

DEPARTMENT OF JUSTICE. The appropriation to the Department of Justice is designated for the Office of the Attorney General, the Prosecuting Attorneys Training Program, for victim assistance grants, the Prosecuting Attorneys Program, for grants for legal services for persons in poverty, and odometer fraud enforcement. A separate appropriation is made for the Office of Consumer Advocate. Authority is provided to utilize the Victim Compensation Fund moneys for staff and administrative costs.

DEPARTMENT OF CORRECTIONS. The appropriations to the Department of Corrections include correctional facilities, administration, and community-based corrections.

INDIGENT DEFENSE. Division VII appropriates for indigent defense and the State Public Defender's Office.

LAW ENFORCEMENT ACADEMY. An appropriation is provided for the Law Enforcement Academy.

BOARD OF PAROLE. An appropriation is provided for the Board of Parole.

DEPARTMENT OF PUBLIC DEFENSE. Appropriations are provided for the Department of Public Defense.

DEPARTMENT OF PUBLIC SAFETY. The appropriations for the Department of Public Safety include funding for increased security at the Capitol.

STATUTORY AND OTHER CHANGES. New Code Section 99D.14A provides that a licensee for pari-mutuel wagering shall pay all the salary costs and direct and indirect support costs which exceed $30,000 incurred by the Division of Criminal Investigations (DCI) for the enforcement of laws pertaining to pari-mutuel wagering. Under prior law, a licensee paid 80 percent of the salary costs of the DCI, and that money was deposited into the Rebuild Iowa Infrastructure Fund. The Act provides that 20 percent of the salary costs shall be deposited into the General Fund of the State.

New Code Section 99F.10A provides that an excursion boat licensee shall pay all the salary costs and direct and indirect support costs which exceed $125,000 incurred by special agents and all the salary costs for gaming enforcement personnel of the DCI for the enforcement pertaining to excursion boats. Under prior law, a licensee paid a total of 80 percent of the salary costs of the special agents and 80 percent of the salary costs of gaming enforcement personnel of the DCI, and the moneys were then deposited into the Rebuild Iowa Infrastructure Fund. The Act provides that 20 percent of the salary costs shall be deposited into the General Fund of the State.

The Director of the Department of Corrections is authorized to transfer moneys from Iowa Prison Industries for use in inmate educational programs.

Certain restrictions placed on drug courts established during FY 2001-2002 in 2001 Iowa Acts, Chapter 186, Section 6, subsection 6, are eliminated. The restrictions required drug courts to be offered only to persons who have been convicted of a crime and to give priority to felons over misdemeanants. This section takes effect June 12, 2002.

Division VII amends 2001 Iowa Acts, Chapter 186, Section 21, by providing that any unobligated moneys appropriated to the State Fire Marshal for fire protection services do not revert to the General Fund until the end of fiscal year 2002-2003. This section takes effect June 12, 2002.

Division VIII - Judicial Branch

Division VIII makes appropriations for FY 2002-2003 to the judicial branch. Division VIII appropriates a total of $111.35 million from the General Fund of the State for the judicial branch, an increase of $3.2 million compared to the FY 2001-2002 estimated net appropriations.

Division VIII includes a reduction in the percentage of the state's contribution to the Judicial Retirement Fund for FY 2002-2003.

Division VIII eliminates the requirements that moneys be paid out of the Enhanced Court Collections Fund for implementation of the Justice Data Warehouse if sufficient moneys are not made available to the Justice Data Warehouse.

Division VIII creates a study committee in the Supreme Court to review the operation of the clerks of the district court in each county and, until the study committee report is submitted, prohibits appointment of a clerk of court unless the appointment is approved by the State Court Administrator.

Division IX - Standing Appropriations

Division IX makes reductions totaling $6.7 million to FY 2002-2003 General Fund of the State standing appropriations enacted in 2002 Iowa Acts, S.F. 2326, makes transfers from other funds to the General Fund for FY 2002-2003 totaling $47.1 million, and increases the Senior Living Trust Fund appropriation to Medicaid by $16 million.

This division reduces standing appropriations for the General Assembly and its agencies and the State Appeal Board by specific dollar amounts. The reductions and limitations in this division are modifications of the same reductions and limitations made in 2002 Iowa Acts, S.F. 2326.

Division IX also limits standing appropriations presently in the Code to specific dollar amounts. These standing appropriations are: personal property tax replacement; franchise tax allocation; payment of livestock production credit refunds; and reimbursements for homestead credits, agricultural land tax credit, family farm tax credit, and for the elderly and disabled tax credit and renter's reimbursement; and public transit assistance.

Division IX transfers moneys from other funds to the General Fund of the State. These funds are the Vehicle Fleet Depreciation, Groundwater Protection, Jury and Witness Fees, Rebuild Iowa Infrastructure, and Environment First Funds and the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund. The division also appropriates additional funds to the Medicaid Program from the Senior Living Trust Fund.

Division X - Capitals and Infrastructure

Division X relates to appropriations and transfers from the School Infrastructure Fund, County Sales and Services Tax Fund, Rebuild Iowa Infrastructure Fund, and the Environment First Fund. The division reduces appropriations for FY 2002-2003 by $15.5 million from the Rebuild Iowa Infrastructure Fund and $18.4 million from the Environment First Fund. The sections of the division relating to the School Infrastructure Fund and County Sales and Services Tax Fund do not take effect unless the Treasurer of State determines that the appropriation from the School Infrastructure Fund will not adversely affect the tax-exempt status of any outstanding bonds issued for the School Infrastructure Program. These sections include an appropriation from the School Infrastructure Fund to the Department of Revenue and Finance for replacement of county sales and services tax revenues that are transferred to the General Fund of the State.

The remainder of Division X reduces previously enacted appropriations from the Rebuild Iowa Infrastructure Fund and the Environment First Fund. The division provides legislative intent for prioritizing funding of lake dredging projects. The division also modifies the purposes for which moneys appropriated from the Environment First Fund to the Iowa Resources Enhancement and Protection Fund may be used.

Division XI - State Employees - Furloughs - Miscellaneous

Division XI relates to vacant state employee positions, creation of a program elimination commission, and employee furloughs.

Division XI requires that effective July 1, 2002, any FTE position authorized in an executive branch table of organization that has been vacant for 12 months or more shall be eliminated from that table of organization. House File 2625 exempts institutions under the State Board of Regents from this provision.

Division XI establishes a Program Elimination Commission to include the Auditor of State with other members to be appointed by legislative leaders, the Governor, the Chief Justice of the Supreme Court, and the Legislative Council. However, H.F. 2625 replaced the Auditor of State with a voting member chosen by the Legislative Council. The commission is directed to consider options for elimination of programs and functions funded in whole or part by state or local public revenues with the goal of identifying savings of 2 percent for the General Fund of the State. In addition, the commission is required to consider sale of public assets or providing for performance of public functions on behalf of government by nongovernmental entities, with various functions identified for consideration.

The commission must issue its report by December 31, 2002, providing recommendations and findings. The recommendations are required to be prepared in bill form. Legislative intent is stated for the commission's bill to be referred to Committees on State Government of the Senate and House of Representatives and that the bill be subject to debate according to procedures that only allow amendments of a purely corrective nature that are recommended by a Committee on State Government. Unless continued by the Legislative Council or by law, the commission is dissolved on December 31, 2002.

Division XI makes reductions in the judicial ($2,201,399), executive ($30,862,939) and legislative ($392,858) branches by requiring furloughs or other cost reductions equal to the furlough cost savings of a one-half-day furlough per employee per calendar month. Executive and judicial branch officials and legislators whose salaries are specifically set by law are subject to a 2.5 percent reduction in salary for the period beginning June 21, 2002, through June 19, 2003. (See H.F. 2625.) Language prohibiting the furlough of more than 25 percent of a division's employees at the same time was modified in H.F. 2625 to be a statement of legislative intent.

Division XI also adjusts the appropriations from the General Fund of the State and the Tobacco Settlement Trust Account for tuition replacement (further adjusted in H.F. 2625), debt service for the Iowa Communications Network, and prison infrastructure bonds for FY 2001-2002 and FY 2002-2003.

Provisions in this division applying operational reductions to executive, judicial and legislative branches of state government take effect June 21, 2002.

Division XII - Corrective Amendments

Division XII provides corrective amendments to legislation enacted in the regular 2002 Legislative Session or to Code provisions affected by legislation enacted in the 2002 Legislative Session.

Division XIII - Drug Utilization Review Committee

Division XIII creates an Iowa Medical Assistance Drug Utilization Review Commission within DHS. The commission has been in existence as an administratively created body. The membership, duties, and related provisions are to comply with federal regulations. The commission is charged with making recommendations to the Council on Human Services regarding strategies to reduce state expenditures for prescription drugs, excluding provider reimbursement rates, under the Medicaid Program. The commission is directed to make initial recommendations by October 1, 2002. Any recommendation approved by the council is to be included in a notice of intended action under Code Chapter 17A. Division XIII directs DHS to seek any federal waiver necessary to implement the approved recommendations. The strategies to be considered for recommendation by the commission are to include, at a minimum, development of a preferred drug formulary in compliance with federal law, negotiation of supplemental rebates from pharmaceutical manufacturers in addition to those rebates provided under the Medicaid Program, disease management programs, drug product donation programs, drug utilization control programs, prescriber and beneficiary counseling and education, fraud and abuse initiatives, pharmaceutical case management, services or administrative investments with guaranteed savings to the Medicaid Program, expansion of prior authorization for prescription drugs and pharmaceutical case management under the Medicaid Program, and any other strategy that has been approved by the U.S. Department of Health and Human Services regarding prescription drugs under the Medicaid Program. The division provides transition provisions, emergency rulemaking provisions, and takes effect June 12, 2002.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

DIVISION I
1. The requirement that the Department of Commerce, Iowa Racing and Gaming Commission, and the lottery issue a report to the General Assembly concerning compliance with the reporting requirements of the Accountable Government Act.
2. The requirement that the departments of General Services, Personnel, and Information Technology identify and issue a report concerning duplicative positions in state government as it pertains to that particular department.
3. The requirement that the Information Technology Department notify the Department of Management prior to any fee increase imposed by the department on other state agencies and the requirement that the Department of Management then inform the Legislative Fiscal Bureau concerning any increase.
4. A provision amending Code Section 7D.33, concerning the State Employee Suggestion Program, to increase the maximum payment to an employee for implementation of a cost savings suggestion from $2,500 to $25,000.
   DIVISION III
5. A provision requiring IDED to demonstrate accountability by using performance measures appropriate to show the attainment of the goals for the state and by measuring the effectiveness and results of the department's programs and activities.
6. Provisions directing Iowa State University, the University of Iowa, and the University of Northern Iowa to emphasize that a business and an individual that creates a business and receives benefits from specific university programs funded by state moneys have a commercially viable product or service.
7. An appropriation from the Special Employment Security Contingency Fund to the Department of Workforce Development for collection of labor market information; and authorization, upon notification of use to certain legislative leaders and executive branch and legislative agencies, for the department to use any additional penalty and interest revenue to accomplish its mission.
8. A provision directing departments of Economic Development and Workforce Development and the regents institutions receiving an economic development appropriation in the division to file a written report on a quarterly basis with certain legislative leaders and the Legislative Fiscal Bureau (LFB) regarding all expenditures of moneys appropriated, allocations of moneys appropriated, and FTEs allocated.
9. A provision allowing an entity filing the employer's contribution and payroll report form and any other unemployment insurance forms on behalf of multiple accounts to submit one check for these accounts.
   DIVISION V
10. A provision requiring the Iowa Veterans Home to submit a bimonthly report on net budgeting to certain legislative leaders and to the LFB.
11. A provision requiring the Department for the Blind, the departments of Elder Affairs, Public Health, and Human Rights, the Iowa Civil Rights Commission, the Governor's Office of Drug Control Policy, and the Commission of Veterans Affairs to develop program performance budget measures to include, but not be limited to, the development and tracking of demand, workload, productivity, and effectiveness performance indicators for each program, including minority and gender-based programs.
12. A provision repealing the Community Grant Fund for projects to remediate community problems related to juvenile crime.
    DIVISION VI
13. A provision requiring DHS to consult with the Welfare Reform Council and certain legislative leaders before adopting the emergency rules for the Family Investment, Food Stamp, and Medical Assistance Programs to comply with federal requirements.
14. A provision directing DHS to continue the Medicaid waiver for home and community-based services to allow children with mental retardation, who would otherwise require ICFMR care, to be served in out-of-home settings of up to eight beds and allocating for the costs of the waiver up to $1.5 million from state moneys the division appropriates for medical assistance purposes.
15. A provision directing DHS to receive input and recommendations from certain legislative leaders prior to entering into or extending any managed care contract for mental health or substance abuse services.
16. A provision directing DHS to submit notice to and consult with certain legislative leaders prior to expending any additional federal funding the department receives for FY 2002-2003 under the federal Child Care and Development Block Grant.
17. A statement of legislative intent that commencing on July 1, 2003, the Iowa Juvenile Home at Toledo will serve only females.
18. A statement of legislative intent that administration of the foster care and adoption programs be privatized.
19. A provision directing DHS and Juvenile Court Services to continue to develop criteria for the department service area 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.
20. A provision directing DHS to submit proposed legislation to the Eightieth General Assembly, 2003 Session, to correct the necessary Code references.
21. A provision directing DHS to report to the Governor, the General Assembly, LFB, and the Legislative Service Bureau, within 30 days of notice from the source of payment of any moneys received from the federal government, court settlement payments, and any other source that may be used to supplement state funds appropriated to the department.
22. A provision prohibiting DHS from proposing an amendment to the federal government affecting a state plan for a program subject to federal approval if amendment would have an effect on state appropriations unless the amendment is adopted as a rule that has been reviewed and approved by the Administrative Rules Review Committee or the Fiscal Committee of the Legislative Council has adopted a motion recommending implementation of the amendment.
23. Session law requiring DHS to implement copayments for prescription drugs. (The Governor item vetoed a provision in H.F. 2625 that would have codified this requirement.)
24. A provision allowing a health care facility in Dows in operation prior to May 1, 2002, that had previously completed the certificate of need (CON) process, and was previously licensed by the state, to reopen without being subject to a new CON process and the meeting of current life safety code or physical plant requirements, provided it is reopened by July 1, 2004.
25. A statement of legislative intent that DHS evaluate the documentation provisions implemented in FY 2001-2002 for medical assistance claiming of targeted case management services for children who are at risk of maltreatment or who are in need of protective services, and a provision that makes the intent language effective upon enactment.
26. A provision requiring that, beginning October 1, 2002, all licensed nursing facilities be certified under both the federal Medicare Program and Medicaid Program as a condition for participation in the Medicaid Program; and directing DHS, in consultation with nursing facility provider organizations, to adopt rules to establish criteria for individual exceptions to the dual certification requirement. The Governor also item vetoed a provision making this provision effective upon enactment.
    DIVISION VII
27. A provision limiting the costs billed to the racetracks to not more than $420,000, and the costs billed to the riverboats to not more than $1.28 million, in excess of the amounts billed to the racetracks and riverboats, respectively, in FY 2002-2003.
    DIVISION X
28. The reduction in the appropriation from the Rebuild Iowa Infrastructure Fund to the Department of Education of $600,000 for FY 2002-2003 to provide resources for structural and technological improvements to local libraries.
    DIVISION XI
29. Session law for FY 2002-2003, prohibiting, unless specifically authorized by a collective bargaining agreement, executive and judicial branch agencies from providing employees with a subsidy or reimbursement for a class or other course of study leading to an advanced degree. The Governor vetoed a provision of H.F. 2625 that exempted institutions under the State Board of Regents from this provision.
30. Session law for FY 2002-2003 directing the executive and judicial branches to issue in printed form documents of an informational nature only in response to an individual request and to make these documents available, to the extent possible, by internet posting, electronic mail, or other electronic means in lieu of availability in printed form.
31. A provision that increases from $3 million, as set in H.F. 2623, to $4.2 million the total amount of Accelerated Career Education Program job credits for all employers during FY 2002-2003.
32. Provisions that limit the new jobs tax credits under the individual and corporate income taxes to those Code Chapter 260E agreements finalized prior to July 1, 2002.

SENATE FILE 2018 - Legislators' Per Diem - 2002 Regular Session
SEE STATE GOVERNMENT.
   This Act limits the payment of per diem of state legislators for the 2002 Regular Legislative Session to a maximum of 90 rather than 100 calendar days. The Act takes effect March 1, 2002.

SENATE FILE 2124 - Public Defense, Emergency Management, and Iowa Technology Center
SEE STATE GOVERNMENT.
   This Act relates to the Department of Public Defense by amending provisions of the State Military Code and Iowa Code of Military Justice, creates a statewide mutual aid compact, creates an Iowa National Guard Civil Relief Act, provides for confidentiality of certain records relating to public assets and defense capabilities, exempts the department from certain service contract requirements and state competitive bidding requirements, exempts the Iowa Technology Center from anticompetition provisions, and increases a standing appropriation for senior commander allowances from $450 annually for each general officer to $750 annually.

SENATE FILE 2293 - Animal Feeding Operations and Environmental Regulation
SEE AGRICULTURE.
   This Act amends provisions in several Code chapters, and principally Code Chapter 455B, regulating animal feeding operations regulated by the Department of Natural Resources, including confinement feeding operations. The Act provides for fees and appropriations to the department for purposes of administering and enforcing regulations affecting animal feeding operations. The moneys are deposited into an Animal Agriculture Compliance Fund established in the Act. The Act also amends provisions in the Manure Storage Indemnity Fund, and transfers moneys from the Manure Storage Indemnity Fund to the Animal Agriculture Compliance Fund. The Act provides for restitution by persons liable for polluting state waters and for the deposit of moneys collected into the State Fish and Game Protection Fund. The Act contains a number of effective dates and provides for the Act's retroactive applicability.

SENATE FILE 2315 - School Finance - Allowable Growth, Area Education Agency Payments, and State Foundation Aid
SEE EDUCATION.
   This Act provides that although Code Section 257.16 provides a standing appropriation in an amount necessary to pay state foundation aid and supplementary aid each year, for FY 2002-2003, an appropriation of $1.784 billion will be provided, to be prorated based on budget enrollment if necessary. The Act takes effect March 28, 2002.

SENATE FILE 2316 - Sale of Iowa State University of Science and Technology Dairy Research Farm - Use of Proceeds
SEE EDUCATION.
   This Act directs Iowa State University of Science and Technology, immediately after the effective date of the Act, to develop a plan to sell the university's 1,100-acre Ankeny dairy breeding research farm and appropriates the proceeds to the university for purposes of establishing a new dairy research and dairy teaching facility or for its Plant Sciences Institute. The Act takes effect May 2, 2002.

SENATE FILE 2317 - Tobacco Settlement Agreement - Miscellaneous Provisions - Litigation Costs
SEE BUSINESS, BANKING & INSURANCE.
   This Act relates to cigarettes and tobacco products, including Tobacco Master Settlement Agreement litigation fees. This appropriation takes effect May 10, 2002.

SENATE FILE 2325 - State Agency Regulatory Functions - Miscellaneous Reorganizations, Transfers, and Revisions
SEE STATE GOVERNMENT.
   This Act relates to certain regulatory functions. The Act reorganizes duties of the Department of Inspections and Appeals (DIA), transfers the Court Appointed Special Advocate Program from the judicial branch to the DIA, reorganizes the st

HOUSE FILE 2075 - Economic Emergency Funds - Transfer to Tobacco Settlement and Senior Living Trust Funds
SEE STATE GOVERNMENT.
   This Act directs the repayment from excess moneys in the Economic Emergency Fund of moneys transferred or appropriated from the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund and the Senior Living Trust Fund that were used for purposes of the General Fund of the State.

HOUSE FILE 2549 - Primary and Secondary Education - Employee Standards, Career Development, Assessment, and Remuneration
SEE EDUCATION.
   This Act makes a number of changes related to the Student Achievement and Teacher Quality Program established in 2001 under Code Chapter 284. The Act provides for the distribution of moneys appropriated by the General Assembly for FY 2002-2003 to the Department of Education from the General Fund of the State for purposes of the program, which includes distribution for national board certification awards, the Beginning Teacher Mentoring and Induction Program, evaluator training programs, career development program and review panel purposes, and for minimum teacher salary requirements.

HOUSE FILE 2591 - Resident Hunting License Fee - Pheasant and Quail Restoration
SEE NATURAL RESOURCES & OUTDOOR RECREATION.
   This Act increases the resident hunting license fee by $4.50 commencing July 1, 2002, and appropriates the revenues received from the increase to the Department of Natural Resources.