APPROPRIATIONS

SENATE FILE 2059 - Birth Certificate Fees - Appropriation
SENATE FILE 2112 - Appropriations - Transportation
SENATE FILE 2288 - Federal Block Grant Appropriations
SENATE FILE 2298 - Government Funding, Administration, and Regulation - Appropriations and Miscellaneous Changes
SENATE FILE 2311 - Workforce and Economic Development Appropriations and Related Changes — EXTRAORDINARY SESSION
HOUSE FILE 2039 - State Budget Adjustments - Cash Reserve and Senior Living Trust Funds
HOUSE FILE 2402 - Interdepartmental Appropriation Transfers - VETOED BY THE GOVERNOR
HOUSE FILE 2538 - Cash Reserve, Infrastructure, and Environment First Funds - Transfers
HOUSE FILE 2577 - Healthy Iowans Tobacco Trust and Tobacco Settlement Trust Fund - Appropriations - Miscellaneous Provisions

RELATED LEGISLATION

HOUSE FILE 2207 - Substantive Code Corrections

SEE STATE GOVERNMENT. This Act contains statutory corrections that adjust language to reflect current practices, insert earlier omissions, delete redundancies and inaccuracies, delete temporary language, resolve inconsistencies and conflicts, update ongoing provisions, or remove ambiguities. Changes made include deletion of obsolete appropriations to the Groundwater Protection Fund.

HOUSE FILE 2302 - Gambling - Miscellaneous Changes

SEE GAMING. This Act makes several changes to provisions governing gambling in Iowa, including the operation, licensure, regulation, fee assessment, and taxation of racetracks, excursion gambling boats, and gambling games. The Act establishes a County Endowment Fund and directs one-half of 1 percent of tax revenue received from gambling games to that fund. Money is then appropriated to qualified endowments located in counties that do not have a licensee conducting gambling games. The Act also codifies a Gambling Treatment Fund and directs one-half of 1 percent of tax revenue received from gambling games, lottery revenue, and nonsimulcast pari-mutuel wagering to the fund, up to a maximum of $6 million. Moneys in the fund are appropriated to the Iowa Department of Public Health for gambling treatment purposes. The Act also establishes assessments on currently existing gambling boats and directs that revenue be deposited in the Rebuild Iowa Infrastructure Fund (RIIF). The Act also establishes a new table games license fee and fees for new licenses for an excursion gambling boat and directs that the money be deposited in RIIF.

HOUSE FILE 2549 - Waste Tire Management Fund Appropriations

SEE ENVIRONMENTAL PROTECTION. This Act appropriates moneys in the Waste Tire Management Fund.

HOUSE FILE 2555 - Public Health Programs and Regulation - Additional Provisions

SEE HEALTH & SAFETY. This Act provides that moneys deposited in a Gifts and Grants Fund established by the Iowa Department of Public Health are appropriated to the department for the public health purposes specified in the gift or grant, and that moneys in the fund are not subject to appropriation or expenditure for any other purpose and are not to revert to the General Fund of the State.

HOUSE FILE 2573 - Inspection and Control of Animal Health

SEE AGRICULTURE. This Act provides for the compensation of owners whose livestock have been destroyed because they were infected or exposed to an infectious or contagious disease.

APPROPRIATIONS

SENATE FILE 2059 - Birth Certificate Fees - Appropriation (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act provides for a standing appropriation of fees generated from the registration of certificates of birth. The fee for a certificate of birth is $15 from July 1, 2003, through June 30, 2005, and is $20 beginning July 1, 2005, and thereafter.

From July 1, 2003, through June 30, 2005, $10 of each fee is appropriated for primary and secondary child abuse prevention programs, and $5 of each fee is appropriated for the Birth Defects Institute Central Registry. Beginning July 1, 2005, $10 of each fee is appropriated for primary and secondary child abuse prevention programs, and $10 of each fee is appropriated for the Birth Defects Institute Central Registry.

The Act takes effect March 18, 2004.

SENATE FILE 2112 - Appropriations - Transportation (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act makes and limits appropriations for FY 2004 2005 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 and finance, administrative services, planning, motor vehicles, the merit system, unemployment and workers' compensation, indirect cost recoveries, audits, county issuance of driver's licenses and vehicle registration and titling, a system providing toll free telephone road and weather reports, participation in the Mississippi River Parkway Commission, and the state's membership in the North America's Superhighway Corridor Coalition.

Appropriations from the Primary Road Fund include appropriations for salaries, operations and finance, administrative services, planning, highways, motor vehicles, the merit system, unemployment and workers' compensation, hazardous waste disposal at field locations and the Ames complex, indirect cost recoveries, audits, production of transportation maps, improvements to Ames complex facilities, and deferred maintenance at field facilities.

The Act amends provisions relating to the Keep Iowa Beautiful Fund by requiring that the Department of Revenue transfer, rather than credit, designated income tax checkoff contributions to the fund. Payments from the fund to public or private organizations may be authorized by IDOT without further action by the General Assembly. Moneys in the fund are appropriated upon IDOT's authorization to be used for educating and encouraging interest in community environmental and beautification projects and providing financial assistance to such projects. See S.F. 2298, Division XXII, for changes to the Keep Iowa Beautiful Checkoff.

SENATE FILE 2288 - 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, 2004, and ending September 30, 2005, 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, Community Services, Community Development, Low-Income Home Energy Assistance, Social Services, Mental Health Services for the Homeless, and Child Care and Development. See S.F. 2298, Division V, 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, including specific categorical grants, and other nonstate grants, receipts and funds available in whole and in part for the state fiscal year beginning July 1, 2004, and ending June 30, 2005. The distribution requirements for the Community Mental Health Services Block Grant are revised from previous years to require a larger percentage of the block grant to be distributed to community mental health centers.

A new directive is included that if additional Child Care and Development Block Grant funding is received, the additional amount is to be used for purposes identified by the Department of Human Services. In addition, to the extent the funding is sufficient, the department is to set reimbursement rates based on the most recently completed rate reimbursement survey. Otherwise, S.F. 2298 requires the department to utilize the survey completed in December 1998.

SENATE FILE 2298 - Government Funding, Administration, and Regulation - Appropriations and Miscellaneous Changes (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act makes, reduces and transfers appropriations; provides for government and economic development-related taxation, surcharge and fee matters; and provides for other properly related matters. The Act is divided into divisions as follows:

Division I - Administration and Regulation

Division I relates to, and appropriates around $92 million from, the General Fund of the State to various administrative and regulatory state departments, agencies and funds for FY 2004-2005.

The state departments and agencies include the Department of Administrative Services (DAS); Auditor of State; Iowa Ethics and Campaign Disclosure Board; Department of Commerce; Office of Governor, including the Lieutenant Governor, Terrace Hill Quarters, and Drug Control Policy Office; Department of Human Rights; Department of Inspections and Appeals (including racing and gaming regulation); Department of Management (DOM); Secretary of State; Treasurer of State; Iowa Public Employees' Retirement System; and Department of Revenue.

The division also appropriates funding for the state's membership in the National Governors Association and for the Ready to Work program and coordinator.

The division allows a charter agency to approve claims for expenses in attending conventions, out-of-state travel requests, and memberships in professional organizations without obtaining Executive Council approval.

The language governing the Innovations Fund is also changed to provide that any savings realized by an agency using an innovation project loan that is not retained by the agency shall not be deposited in the Innovations Fund. In addition, the division provides that the standing appropriation to DOM for deposit in the fund for a loan that is not required to be repaid by the agency receiving the loan shall be limited to the principal and interest amount for the loan.

The division provides that $50 per license received from real estate salesperson's and broker's license fees shall be deposited in the Real Estate Education Fund. Currently, the greater of $10 or 40 percent per year for each real estate salesperson's license and the greater of $10 or 25 percent per year for each broker's license are deposited in the fund. In addition, $25 for each real estate salesperson's and broker's license is appropriated from the Real Estate Education Fund to the State Board of Regents for maintaining a Real Estate Education Program at the University of Northern Iowa. Under current law, 70 percent of moneys in the fund is given for the program.

The division also directs DAS to pursue a goal of increasing the ratio of employees per supervisor for executive branch agencies to 12-to-1 by December 31, 2005.

Division II - Agriculture and Natural Resources

Division II provides funding for the Department of Agriculture and Land Stewardship (IDALS) and the Department of Natural Resources (DNR) from a number of sources.

DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP. For IDALS, moneys are appropriated from the General Fund of the State and full time equivalent employee positions (FTEs) are authorized in order to support its Administrative Division, Regulatory Division, Laboratory Division, and Conservation Division. The division also appropriates moneys to support animal industry programs, including a program to regulate horse and dog racing by the department. The division specifically provides support to the Senior Farmers Market Nutrition Program and to the department for membership in the Missouri River Association. The division also appropriates moneys to IDALS for the purpose of supporting the testing and monitoring of avian influenza affecting the poultry industry.

DEPARTMENT OF NATURAL RESOURCES. For DNR, moneys are appropriated from the General Fund of the State and FTEs are authorized in order to support its Administrative and Support Services Division, Parks and Preserves Division, Forests and Forestry Division, Energy and Geological Resources Division, and Environmental Protection Division. The division also appropriates moneys 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 department. The division permits the department to use additional funds for staffing to reduce the department's floodplain permit backlog and to use additional funds available from stormwater discharge permit fees for staffing required to implement the federal total maximum daily load program.

MISCELLANEOUS PROVISION. The division extends the repeal of Code Chapter 424, which provides for an environmental protection charge on petroleum diminution, from July 1, 2014, to July 1, 2016.

Division III - Economic Development

Division III makes appropriations and transfers from the General Fund of the State to the Iowa Department of Economic Development (IDED), the University of Iowa, the University of Northern Iowa, Iowa State University, the Iowa Department of Workforce Development (IWD), and the Public Employment Relations Board for FY 2004 2005.

The division 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.

The division appropriates moneys from loan repayments on loans under the former Rural Community 2000 Program to IDED for providing financial assistance to Iowa's councils of governments and for the Rural Development Program.

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

The division appropriates moneys from the Iowa Community Development Loan Fund to IDED for purposes of the Community Development Program.

The division appropriates moneys from the Workforce Development Fund Account to the Workforce Development Fund. 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, 2004, and any moneys appropriated or credited to the fund during FY 2004-2005, shall be transferred to the Workforce Development Fund.

The division appropriates moneys 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.

The division appropriates moneys from the Special Employment Security Contingency Fund to IWD for the Division of Workers' Compensation and immigration service centers.

In relation to contribution rates for unemployment compensation, the division amends the computation of the current reserve fund ratio to include specific dollar amounts as being part of the funds available to pay benefits. In relation to unemployment compensation, the division amends the term "employment" to exclude certain alien agricultural workers who are not covered by the Federal Unemployment Tax Act.

The Office of Renewable Fuels and Coproducts may 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, and to conduct a performance audit of the authority to determine the effectiveness of the authority and the programs of the authority.

For the fiscal year beginning July 1, 2004, any entity that was specifically identified in 2001 Iowa Acts, Chapter 188, to receive funding from IDED, excluding any entity identified to receive a direct appropriation beginning July 1, 2004, may apply to the department for assistance through the appropriate program.

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

All federal grants to and the federal receipts of agencies appropriated funds under this division, not otherwise appropriated, are appropriated for the purposes set forth in the federal grants or receipts unless otherwise provided.

The division appropriates moneys 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 division appropriates moneys from the General Fund of the State to IDED to pay payroll expenditure refunds under the School to Career Program.

Division IV - Education

Division IV appropriates moneys for FY 2004-2005 from the General Fund of the State to the College Student Aid Commission, the Department for the Blind, the Department of Cultural Affairs, the Department of Education, and the State Board of Regents and its institutions.

COLLEGE STUDENT AID COMMISSION. The division includes appropriations to the College Student Aid Commission for general administrative purposes, student aid programs, an initiative directing primary care physicians to areas of the state experiencing physician shortages, the National Guard Educational Assistance Program, and the Teacher Shortage Forgivable Loan Program. The division nullifies, for the third year, the $2.75 million standing appropriation for the Iowa Work-Study Program for FY 2004-2005.

The division amends statutory language to establish that the forgivable loan portion of the Osteopathic Physician Recruitment Program is to be administered by the commission in conjunction with Des Moines University; require the university to provide 1-to-1 matching funds; increase funding for Iowa Tuition Grants, but limit to $3.4 million the amount that can be distributed to for-profit private institutions; reduce state funding for scholarships; and increase funding for Vocational-Technical Tuition Grants.

DEPARTMENT FOR THE BLIND. The division appropriates to the Department for the Blind for its administration.

DEPARTMENT OF CULTURAL AFFAIRS. The division appropriates to the Department of Cultural Affairs for its Arts, Historical and Administrative Divisions, for historic sites, and for community cultural grants.

DEPARTMENT OF EDUCATION. The division appropriates moneys to the Department of Education for purposes of the department's general administration, vocational education administration, Division of Vocational Rehabilitation Services, independent living, State Library for general administration and the Enrich Iowa Program, library service area system, Public Broadcasting Division, regional telecommunications councils, vocational education to secondary schools, school food service, Iowa Empowerment Fund, textbooks for nonpublic school pupils, Student Achievement and Teacher Quality Program, Jobs for America's Graduates, grants to support school district efforts to close the achievement gap, and community colleges.

The division directs the department to work with the State Board of Regents and other eligible grantees to obtain any available federal funding for the establishment and operation of a teacher intern program.

In lieu of an appropriation from the General Fund of the State, the division permits the Board of Educational Examiners to retain 85 percent of revenues from licensing fee increases approved by the board between July 1, 1997, and June 30, 2003, and 70 percent of revenues from licensing fee increases approved after July 1, 2003.

The division amends statutory language to permit the department to prorate annual National Board for Professional Teaching Standards certification awards when a teacher is employed on a less than full-time basis by a school district; strike language that requires a portion of the moneys allocated to the Reading Recovery Center from the Interest for Iowa Schools Fund to be distributed to area education agencies (AEAs); permit school district boards to delegate to superintendents the authority to hire support personnel and sign support personnel employment contracts if the boards adopt such a policy and specify the positions the superintendent is authorized to fill; and permit DAS to prorate Phase II moneys if the funds appropriated are insufficient.

STATE BOARD OF REGENTS. The division appropriates moneys to the State Board of Regents for the board office, 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.

The division encumbers, until January 1, 2005, nearly $26 million of the nearly $27.3 million appropriated to the University of Iowa Hospitals and Clinics for FY 2004-2005. If the federal government increases the Medicaid reimbursement, allowing the Department of Human Services (DHS) to increase hospital payments to offset the high costs incurred in providing services to medical assistance patients prior to January 1, 2005, an amount equal to the increased payments shall be deposited in the State General Fund from the moneys encumbered. If the federal government does not increase the Medicaid reimbursement by January 1, 2005, the moneys are no longer encumbered and may be expended.

Division V - Health and Human Services

Division V makes appropriations for purposes of health and human services to the Department of Elder Affairs (DEA), the Iowa Department of Public Health (IDPH), the Commission of Veterans Affairs, and DHS.

DEPARTMENT OF ELDER AFFAIRS. Funding is appropriated to DEA for aging programs and area agencies on aging. A new allocation of $49,000 is designated to provide training to resident advocate committees.

IOWA DEPARTMENT OF PUBLIC HEALTH. The division appropriates funds to IDPH, including funds for addictive disorders, adult wellness, child and adolescent wellness, chronic conditions, community capacity, elderly wellness, environmental hazards, infectious diseases, injuries, and public protection. Past practice is continued to allow IDPH to retain and utilize all or a portion of licensing fees for purposes relating to the associated health professions. A project for modernization of vital records along with its associated fee is continued for another year as is the scope of practice review committee project involving health profession practices.

New language directs IDPH and DHS to collaborate to identify funding to leverage the maximum amount of federal funding for AIDS Drug Assistance Program supplemental treatment grants.

The division states legislative intent for state agencies, local communities, and individuals to begin exploring strategies and partnerships to create a statewide community network that supports health promotion, prevention, and chronic disease management in order to transform Iowa, collectively, into one healthy community.

COMMISSION OF VETERANS AFFAIRS. Funds are appropriated from the General Fund of the State to the Commission of Veterans Affairs and the Iowa Veterans Home. The Iowa Veterans Home is to operate with a net State General Fund appropriation.

DEPARTMENT OF HUMAN SERVICES. The division makes appropriations from the General Fund of the State and other funds for DHS and includes other appropriations and provisions involving human services and health care.

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT (TANF). The division appropriates moneys from the federal TANF Block Grant for a number of purposes, including the Family Investment Program (FIP); field operations; general administration; local administrative costs; child care assistance, including funding for provision of educational opportunities to registered child care home providers; 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; the Healthy Opportunities for Parents to Experience Success (HOPES) Program; and state child care assistance. In addition, the division appropriates block grant moneys for community-based programs targeted to children from birth through five years of age and developed by community empowerment areas.

A new appropriation of $200,000 is provided to DHS to establish a pilot project in a judicial district selected by the department and the Judicial Council, to provide employment and support services to delinquent child support obligors as an alternative to commitment to jail as punishment for contempt of court.

FAMILY INVESTMENT PROGRAM. Under federal TANF welfare reform provisions, federal funding is provided for FIP in the form of an annual block grant to the state. Consequently, the Act includes combined FIP and FIP-related program appropriations from the General Fund of the State and the block grant. These appropriations are directed to the Family Development and Self-Sufficiency Grant Program, the diversion subaccount of the FIP Account, and the Food Stamp Employment and Training Program.

New language directs DHS, in cooperation with IDPH, to identify means by which the Food Stamp Program may be utilized to promote good nutrition and healthy choices among recipients of food stamps.

CHILD SUPPORT RECOVERY UNIT (CSRU). The division requires 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 division continues to direct 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. The appropriation made for child support recovery continues previous language, including authority to expend certain surcharges received.

MEDICAL ASSISTANCE (MEDICAID). The division continues Medicaid Program provisions required in previous years. New language 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 Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) Program due to becoming 21 years of age and who have been approved for additional assistance through exception to policy provisions. An allocation of $100,000 is to be used for participation in one or more pilot projects operated by a private provider to allow these individuals to receive services in the community.

The division directs the Iowa Medical Assistance Drug Utilization Review Commission to submit copies of its annual review to DHS and legislators.

The division requires DHS to submit a Medicaid state plan amendment to the federal government relating to adjustment of hospital payments to state-owned acute care hospitals with over 500 beds to offset the high cost incurred by such facilities for providing services to Medicaid patients.

The division also requires DHS to assist school districts in applying for direct claiming under the Medicaid Program for funding of school district nursing services.

HEALTH INSURANCE PREMIUM PAYMENT PROGRAM. The division appropriates funds to continue the Health Insurance Premium Payment Program, which provides for payment for private health insurance in lieu of Medicaid Program coverage.

MEDICAL CONTRACTS. The division provides funding for contracted services associated with the Medicaid Program. New language provides that up to $665,000 of the moneys deposited in the Pharmaceutical Settlement Account is appropriated to DHS for FY 2004-2005 to be used for the procurement of and transition to the new Medical Assistance Program fiscal agent vendors.

MEDICAID NEW REQUIREMENTS. The division requires DHS to do all of the following:

"Issue one or more requests for proposals to purchase certain durable medical equipment or supplies if such a procurement strategy reduces the costs of these items, while maintaining appropriate access and quality standards.

"Expand the Recipient Lock-in Program, surveillance and utilization review activities, and program audit activities to the greatest extent possible, and report any savings to legislators.

"Implement a Health Insurance Data Match Program with insurance carriers to be used to match insureds against a listing of Medicaid recipients, and adopt rules to take effect no later than June 30, 2004.

"Institute a process to require home health agencies to bill the Medicare Program for appropriate home health services, and require home health agencies to attach a Medicare denial of benefits form to the Medicaid form.

"Identify and initiate a process for reducing reliance on intermediate care facilities for persons with mental retardation level of care and substituting community-based care.

"Provide that under the Iowa preferred drug list requirements, any newly released generic drug product will be considered a preferred drug and not subject to prior authorization if the generic product's cost is less than the brand name product's cost.

"Determine or enter into a contract to identify the incidence of chronic disease within the Iowa Medicaid Program population to most effectively utilize disease management programs, and provide authorization to procure a sole source contract for this purpose.

STATE SUPPLEMENTARY ASSISTANCE (SSA). The division appropriates funding for SSA and the Medicaid Program home and community-based services waiver rent subsidy.

CHILDREN'S HEALTH INSURANCE PROGRAM. The division appropriates funds for the state children's health insurance program known as the healthy and well kids in Iowa (hawk-i) Program.

CHILD CARE ASSISTANCE. The division provides an appropriation for the State Child Care Assistance Program and child day care resource and referral services and requires DHS to use moneys deposited in the Child Care Credit Fund for the State Child Care Assistance Program.

CHILD CARE QUALITY RATING SYSTEM. The division requires DHS to consult with various interests in developing a plan for implementing a voluntary child care provider quality rating system. The plan is to be submitted to the Governor and General Assembly in December 2004.

JUVENILE INSTITUTIONS. The division makes appropriations to the Iowa Juvenile Home at Toledo and the State Training School at Eldora.

CHILD AND FAMILY SERVICES. The division appropriates funds for child and family services, provides for continuation of the funding cap for group foster care, and continues previous requirements for child welfare services.

New language directs DHS to work with foster and adoptive families, private child welfare agencies, and advocates to identify savings alternatives in the Adoption Subsidy Program, provides an allocation of $100,000 to IDPH for a Child Protection Center Grant Program, and provides an allocation of $148,000 to fund one or more child welfare diversion and mediation pilot projects established pursuant to H.F. 2462 (see Children & Youth).

JUVENILE DETENTION HOME FUND. The division 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 for continuation of the community partnership for child protection sites, and remaining treatment plan grants.

FAMILY SUPPORT SUBSIDY PROGRAM. The division provides an appropriation for the Family Support Subsidy Program.

CONNOR DECREE. The division makes an appropriation to continue coordination and training opportunities associated with disability services in accordance with the Connor decree.

MENTAL HEALTH INSTITUTES. The division provides appropriations to the mental health institutes at Cherokee, Clarinda, Independence, and Mount Pleasant.

STATE RESOURCE CENTERS. The division makes appropriations for the resource centers at Glenwood and Woodward utilizing a net State General Fund appropriation, and authorizes the centers to carry forward unexpended balances from FY 2004-2005.

STATE CASES. The division makes an appropriation for mental illness, mental retardation, and developmental disabilities state cases.

MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES (MH/DD) SERVICES FUNDING. The division includes a number of provisions affecting provision of state funding of MH/DD services provided by counties. One provision relates to funding for MH/DD services growth. Under current law, the state is required to annually provide funding for the growth in county MH/DD services expenditures. The division continues a practice begun in 2001 by combining the moneys appropriated for growth and the moneys appropriated for the MH/DD Community Services Fund and applies a reduction to formula distribution amounts based upon the relative size of a county's ending balance.

PERSONAL ASSISTANCE SERVICES PROGRAM. The division provides an appropriation for this pilot program for adult persons with physical disabilities in an urban and a rural area. The division prohibits acceptance of new applicants, but requires that an individual receiving services as of June 30, 2004, 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 at the Mental Health Institute at Cherokee.

FIELD OPERATIONS, GENERAL ADMINISTRATION, AND VOLUNTEERS. The division includes appropriations for DHS field operations, general administration, and volunteers. Funding is also allocated for the Prevention of Disabilities Policy Council.

MEDICAID, STATE SUPPLEMENTARY ASSISTANCE, AND SOCIAL SERVICE PROVIDERS REIMBURSED UNDER THE DEPARTMENT OF HUMAN SERVICES. The division establishes reimbursement rates for social services providers. However, Division VI, providing appropriations from the Senior Living Trust Fund and other special funds, increases reimbursements to some of these providers.

The division provides a limitation to the budget for nursing facilities for FY 2004-2005 and provides for adjustment of portions of the rate calculation, continues a limitation on reimbursement of pharmacy dispensing fees, and provides for the establishment of a fixed-fee reimbursement schedule for home health agencies beginning July 1, 2005. The division provides for specified changes in the Adoption Subsidy Program and requests the Legislative Council to establish an interim study committee to review the Adoption Subsidy Program. The provision relating to the Adoption Subsidy Program takes effect May 17, 2004.

TRANSFER AUTHORITY. The division permits DHS to transfer funding between a number of appropriations provided the combined funding is not changed.

STATUTORY AND OTHER PROVISIONS. The division suspends the following requirements in law or rule for FY 2003-2004: 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. A number of these provisions are made permanent in H.F. 2390 (see Human Services).

The division provides all of the following statutory and other provisions:

• Directs DHS to cause a Refugee Services Foundation to be created for the sole purpose of engaging in refugee resettlement activities to promote the welfare and self-sufficiency of refugees who live in Iowa.
• Allows a county to recoup costs of a shelter care placement from a child's parent or guardian.
• Creates a Medical Assistance Crisis Intervention Team to provide projections of Medicaid Program expenditures through June 30, 2008. DHS is required to issue a report on or before August 1, 2004, providing recommendations to reduce costs or provide revenue enhancements to reduce the projected program and administration costs of the program by $130 million for FY 2005-2006. This provision takes effect May 17, 2004.
• Provides statutory language regarding the directive to health insurance carriers to enter into a Health Insurance Data Match Program with DHS. This provision takes effect May 17, 2004.
• Provides for a change in the calculation of the direct care costs component of the Medicaid Program reimbursement rate for nursing facilities beginning July 1, 2004.
• Provides for carryover of moneys appropriated for FY 2002-2003 for implementation of the federal Health Insurance Portability and Accountability Act. This provision takes effect May 17, 2004.
• Provides for carryover of moneys allocated for continuation or reprocurement of the contract with the department's Medicaid Program fiscal agent. This provision takes effect May 17, 2004.
• Provides for carryover of moneys appropriated in FY 2003-2004 for the purpose of meeting federal food stamp electronic benefit transfer requirements. This provision takes effect May 17, 2004.
• Increases the amount of state funding that may be expended in FY 2003-2004 for shelter care services. This provision takes effect May 17, 2004.
• Increases the amount allowed to be carried forward from FY 2003-2004 from $500,000 to $1 million by the Iowa Veterans Home. This provision takes effect May 17, 2004.
• Provides for carryover of moneys appropriated in FY 2003-2004 for the child welfare system redesign to be used for child and family services. This provision takes effect May 17, 2004.
• Provides that the $2 million appropriated for FY 2003-2004 for deposit in the risk pool in the Property Tax Relief Fund for county MH/MR/DD/BI services is instead to be used for Medicaid Program reimbursement for FY 2004-2005. This provision takes effect May 17, 2004.

Division VI - Senior Living and Hospital Trust Funds

Division VI makes appropriations from the Senior Living Trust Fund and the Hospital Trust Fund.

The division provides an appropriation to DEA for a Comprehensive Senior Living Program. The division makes new allocations for the provision of training to resident advocate committees for elder group homes and licensed health care facilities, to provide two additional state long-term care resident advocates, and to provide case management services to elders who are not eligible for the Medicaid Program.

The division makes an appropriation to the Department of Inspections and Appeals for inspection and certification of assisted living facilities and adult day services.

The division makes an appropriation to DHS to provide grants to nursing facilities for conversion to assisted living programs or to provide long-term care alternatives. The division makes a new allocation to provide financing to construct affordable assisted living and service-enriched affordable housing for seniors and persons with disabilities.

The division makes an appropriation from the Hospital Trust Fund to DHS to supplement the Medicaid Program appropriation for FY 2004-2005.

The division provides that appropriations from the General Fund of the State, the Senior Living Trust Fund, the Hospital Trust Fund, and the Healthy Iowans Tobacco Trust to DHS for the Medicaid Program appropriation for FY 2004-2005 that remain unencumbered or unobligated at the close of the fiscal year are not to revert but are to be transferred to the Senior Living Trust Fund.

New Code provisions create a Senior Living Revolving Loan Program Fund to provide financing for the construction of affordable assisted living and service-enriched affordable housing for seniors and persons with disabilities and create a Home and Community-Based Services Revolving Loan Program Fund to further the goals of DEA, adult day services, respite services, and congregate meals by expanding facilities and infrastructure that provide adult day services, respite services, and congregate meals that address the needs of persons with low incomes.

Division VII - Mental Health, Mental Retardation, Developmental Disabilities, and Brain Injury (MH/MR/DD/BI) Services

Division VII appropriates and distributes state funding for MH/MR/DD/BI services provided by counties. By statute, the state funding for allowed growth in county service costs is provided a fiscal year in advance, so an appropriation of $28.5 million is made for this purpose for FY 2005-2006. The division provides for distribution of the $23.7 million appropriation previously made for this purpose for FY 2004-2005. The amount distributed to a county is based upon the previous year's ending balance in the county's MH/MR/DD services fund. New language requires a mid-year financial report to be made by counties in January 2005.

An FY 2004-2005 appropriation of $200,000 is included for support of mental health services provided for persons who are poor or elderly by county hospitals in counties with a population of 225,000 or more.

Division VIII - Judicial Branch

Division VIII makes appropriations for the judicial branch operations and Judicial Retirement Fund. The state contribution matching the basic salaries of judges for the retirement fund is limited to 9.71 percent. A clerk of the district court cannot be appointed unless the appointment is approved by the State Court Administrator.

Division IX - Justice System

Division IX makes appropriations for FY 2004 2005 from the General Fund of the State to the departments of Justice, Corrections, Public Defense, and Public Safety, and the Iowa Law Enforcement Academy, Office of the State Public Defender, Board of Parole, and Iowa State Civil Rights Commission.

The Attorney General is to be annually reimbursed up to $50,000 from the Second Injury Fund for providing services related to the fund. This provision takes effect May 17, 2004.

An Iowa Corrections Offender Network Fund is created under the control of the Department of Corrections (DOC). All sales, gifts and donations related to the Iowa Offender Network Data System are to be credited to the fund for use in maintenance and further development of the network. This provision takes effect May 17, 2004.

For FY 2004 2005, the Iowa Law Enforcement Academy may charge more than one half the costs of providing the basic training course upon authorization of a majority of the Iowa Law Enforcement Council. Current law prohibits the Iowa Law Enforcement Academy from charging more than one half the costs.

DOC is required to coordinate and provide information to the counties regarding available inmate bed space in each county jail, detention facility, or municipal jail.

The State Public Defender, along with other justice system interests, is required to conduct a study of cost savings methods for delivery of legal representation of indigent persons.

After deductions to an inmate's earnings, DOC may retain up to 50 percent of any remaining balance from the earnings if the inmate is employed in a new job created on or after July 1, 2004. The funds retained by the department are to be used for supervision costs incurred by the department when supervising the private sector employment of inmates.

A person on probation may not be prematurely discharged from probation unless the person has paid any court appointed attorney fees and supervision fees.

The appropriation from the Wireless E911 Emergency Communications Fund for support of the E911 administrator is extended until the end of FY 2004 2005. This provision takes effect May 17, 2004.

Legislative intent that Iowa State Patrol members currently assigned to District 16 (Capitol Complex) be reassigned to patrol duties on highways and roads and fill the resulting vacant positions with training school candidates is included in the division.

Changes are made with regard to the distribution of delinquent fines and costs collected by the county attorney for court-appointed attorney fees and the expenses of public defenders. The changes provide that if the county attorney's office has collectively accumulated up to $1.2 million of delinquent fines and costs for deposit into the General Fund of the State, the county attorney's office may keep 33 percent of any additional delinquent fines and costs collected, the county general fund shall receive 34 percent of the delinquent fines and costs, and the General Fund of the State receives the remainder. Current law provides that 35 percent of any delinquent fines and costs collected shall be deposited in the county general fund, and the remainder shall be deposited into the General Fund of the State.

Division X - Standing Appropriations, Salaries, and Miscellaneous Provisions

Division X provides for limitations, reductions, and change in funding source for FY 2004-2005 of specific standing appropriations, addresses salaries and benefits for state employees, makes various Code section changes, and provides other miscellaneous provisions as follows:

STANDING APPROPRIATIONS - LIMITS AND REDUCTIONS. Reduces the amount appropriated for the General Assembly by $2 million. The following standing appropriations are limited to specific amounts: compensation of officers and enlisted persons while on active duty, nonpublic school transportation, printing cigarette tax stamps, state cost of peace officers' retirement benefits, livestock production credit refunds, instructional support state aid, at risk children programs, paying claims against the state, administrative expenses of the Unemployment Compensation Program, interest costs under the federal Cash Management and Improvement Act, funding the state's Deferred Compensation Program, and the Educational Excellence Program.

PROPERTY TAX CREDITS. Nullifies, for FY 2004-2005, the standing appropriations from the General Fund of the State for reimbursement for the homestead, agricultural land, family farm, military service, and elderly and disabled property tax credits and elderly and disabled rent reimbursement and instead appropriates from the Cash Reserve Fund for these purposes and limits to specific dollar amounts.

DEER MEAT DONATIONS. Makes an appropriation to DNR to expand the Help Us Stop Hunger pilot program, which involves the providing of donated deer meat to the needy.

STATE APPEAL BOARD. Makes an unlimited appropriation to the State Appeal Board for FY 2004-2005 to streamline and improve the board process.

STATE EXPENDITURE LIMITATION. Applies the State Expenditure Limitation Law to regular and extraordinary sessions held prior to July 1. The provision takes effect May 17, 2004.

REPAY FROM ECONOMIC EMERGENCY FUND. Increases the amount that must be repaid from the Iowa Economic Emergency Fund as a result of transfers or appropriations from the Endowment for Iowa's Health Account. The repayment occurs after the maximum limit of the Iowa Economic Emergency Fund is reached.

VETERANS AFFAIRS. Increases the membership of the Commission of Veterans Affairs from seven to nine with an additional two members representing the military reserves and the Iowa National Guard; requires the Commandant of the Iowa Veterans Home to be a resident of Iowa who served in the armed forces and was honorably discharged and is a licensed nursing home administrator; and authorizes the commission to establish and operate a state veterans cemetery and to make application to the federal government for establishing such a cemetery (moneys are allocated for the cemetery in Division XI). The provision to increase membership takes effect May 17, 2004.

CLASS SIZE REDUCTION. Extends the Iowa Early Intervention Block Grant Program to reduce class size and support reading instruction for K 3 students for FY 2004 2005 and appropriates $29.25 million for that fiscal year.

ALLOWABLE GROWTH. Sets at 4 percent the state percent of growth under the State School Foundation Program for the budget year beginning July 1, 2005.

BUDGET GUARANTEE. Deletes Code language which restricted school district eligibility for certain budget guarantee provisions. The Code language limited the budget adjustment to school districts whose regular program district cost is less than 101 percent of such cost for the previous year. This elimination makes all districts eligible.

AREA EDUCATION AGENCIES. Reduces by $11.8 million the amount of state aid to AEAs. This is the same amount as was reduced for FY 2003 2004 and is in addition to a previous $7.5 million reduction.

VOTER APPROVALS. Requires a countywide vote on the issuance of revenue bonds and the sale of assets by an authority established by the county and its county seat to operate public buildings. Prior law required only a vote of the registered voters in the unincorporated areas and those of the county seat.

DUAL OFFICEHOLDER. Permits a person serving as chief of a volunteer fire department that serves an area with a population of not more than 2,000 who is elected to the city council to continue to hold office as fire chief during the city council term of office.

HISTORIC PROPERTY CREDIT. Allows, under the tax credit for qualified rehabilitation costs for rehabilitating historic property (Code Chapter 404A), that the only qualified costs that may now be used are those incurred between the project completion date and two years prior to such date if any costs incurred prior to the project receiving approval would qualify for the federal rehabilitation tax credit. Prior law limited the costs to those incurred between the completion date and the later of two years or the project approval date. The provision applies retroactively to January 1, 2002.

LOCAL OPTION SALES TAX. Changes the local option sales and services tax for school infrastructure purposes (Code Chapter 422E) to limit the sale of local sales and services tax for school infrastructure bonds to 10 years unless an extension of the period of the imposition of such tax is approved; rewrites the bonding authority of the board of directors of a school district so that it mirrors, to a large extent, the authority set out for city and county revenue bonds under the local option sales and services tax imposed under Code Chapter 422B; provides that for elections occurring after April 1, 2003, and before August 1, 2003, the requirements relating to a revenue purpose statement are considered to have been met if the revenue purpose statement is submitted by April 1, 2004; and strikes the provision that limits the amount a school district may receive in local sales and services tax under the distribution formula to the guaranteed school infrastructure amount of $575 per student, which is subject to adjustment.

STATE SALARY INCREASE FUNDING. Provides that salary moneys to fund collective bargaining agreements, with similar percentage increases for noncontract state employees, are to be paid from any available source of the employee's department or agency, including federal funds, and provides supplemental authorization to fund salaries from trust, revolving and special funds for which the General Assembly has established a budget. Sworn officers of the Department of Public Safety (DPS) who are not covered by a collective bargaining agreement are to receive the same meal allowance as those who are covered.

REPAYMENT OF ENDOWMENT FOR IOWA'S HEALTH ACCOUNT. Eliminates, for FY 2004-2005, a standing limited appropriation from the General Fund of the State to the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund.

MILITARY PAY DIFFERENTIAL CARRYFORWARD. Provides that any unencumbered moneys remaining from the appropriation made in FY 2002 2003 for the Military Pay Differential Program and Health Insurance Retention Program are carried forward until the end of FY 2005 2006. This appropriation is used for paying state employees who are activated for duty in the armed forces of the United States the difference between their state pay and military pay and to continue state health coverage. Moneys not reverted may also be used for a home ownership assistance program for such individuals. This provision takes effect May 17, 2004.

REGENTS BONDING. Authorizes the State Board of Regents to issue bonds in the sum of $120 million for a five year building program at the regents universities. The division permits the board to exceed the limitation placed on the amount of bonds that may be issued under the division by an amount the board determines to be necessary to capitalize bond reserves, interest during construction, and issuance costs.

PRESCRIPTION DRUG COOPERATIVE. Makes an appropriation of $10,000 to IDPH for the Bureau of Health Care Access to issue a grant to one free clinic to be used to establish a partnership and test program for a buying cooperative approach for purchasing prescription drugs by needy individuals.

CHARTER AGENCIES. Provides, in regard to charter agencies, that the Code provision which provides that one half of any reversions will remain with the agency does not apply if the Act specifies a use for a potential reversion and that any limit on FTEs in the Act shall not apply to the agency.

LIFE SCIENCE ENTERPRISES. Allows a life science enterprise that produces a product derived from an animal by using biotechnological systems to acquire or hold agricultural land if it acquires that land prior to July 1, 2008. Prior law set the acquisition deadline at July 1, 2004.

IOWA EMPOWERMENT BOARD. Increases the voting membership of the Iowa Empowerment Board from 17 to 18 with the addition of the Director of IDED.

IOWA VETERANS HOME - MEDICAID ELIGIBILITY. Provides the requirement that a health care facility receiving reimbursement through the state Medicaid Program shall assist the Iowa Commission of Veterans Affairs in identifying a person's eligibility for benefits under the federal Department of Veterans Affairs does not apply to the admission of an individual to the Iowa Veterans Home.

MOBILE DENTAL SERVICES. Requires IDPH to establish a mobile dental delivery system to make available dental supplies, portable dental equipment, and transportation vans to provide and improve the oral health services of low-income persons who live in federal- or state-designated health professional shortage areas and have the least access to oral health services. The provision takes effect upon receipt of federal funding.

MINE RECLAMATION. Allows IDAL's Division of Soil Conservation to transfer the responsibility for the reclamation of a mine site to a private entity which intends to use the site for other purposes.

CONTAMINATED WATER. Authorizes DNR to require a public water supply that has a groundwater source that contains petroleum, a fraction of crude oil, or their degradation products, or is in an area likely to be contaminated by such materials, to replace the groundwater source in order to receive a permit to operate, but only if the public water supply is fully compensated for any additional costs.

GOVERNMENT REINVENTION FUNDING. Carries forward for use during FY 2004-2005, for the same purposes, moneys appropriated for FY 2003-2004 to DOM for investment in reinvention initiatives to produce ongoing state savings. The provision takes effect May 17, 2004.

ELECTRONIC RECORDS - REGENTS EXCLUSION. Repeals H.F. 2490 (see Business, Banking, & Insurance), Section 8, which would have eliminated the requirement that with respect to the acceptance and distribution of electronic records by a government agency, a regents institution must conform with national standards as they are developed. The repeal takes effect May 17, 2004.

LOCAL GOVERNMENT INNOVATION. Authorizes the Local Government Innovation Fund Committee to use any of the $1 million appropriated in FY 2003-2004 to the fund in the form of forgivable loans or grants. Prior law only allowed up to 20 percent to be so used.

INSTRUCTIONAL SUPPORT PROGRAM - ALLOWABLE GROWTH. Provides that, for FY 2004-2005, a school district will receive modified allowable growth from the School Budget Review Committee if the board of directors adopted a resolution by April 15, 2004, to increase participation in the Instructional Support Program and a petition was not filed or the question was submitted to and approved by the registered voters. The modified allowable growth equals the amount that would have been received under the Instructional Support Program except no state aid will be granted. The provision takes effect May 17, 2004.

TUITION GRANTS. Revises the definition of "accredited private institution" for purposes of eligibility for Iowa Tuition Grants awarded by the College Student Aid Commission. In addition to existing requirements, institutions must also be exempt from federal taxation and annually provide a matching aggregate amount of institutional financial aid equal to at least 75 percent of the amount received in a fiscal year by the institution's students for Iowa Tuition Grant assistance. The match amount is to increase annually, commencing with July 1, 2005, by the percentage of increase each fiscal year of funds appropriated for Iowa Tuition Grants until the maximum match of 100 percent is reached. The exception relating to county hospitals that operate, control or administer a school of nursing is eliminated, but a new exception is added for specialized colleges that offer health professional programs which are affiliated with health care systems located in Iowa.

IOWA LEARNING TECHNOLOGY INITIATIVE. Creates an Iowa Learning Technology Initiative. However, the Governor item vetoed significant portions of the initiative.

TECHNICAL CHANGE. Repeals obsolete Code language that refers to a Meat Export Research Center and a Livestock Producers Assistance Program.

Division XI - Rebuild Iowa Infrastructure Fund (RIIF)

Division XI makes appropriations from RIIF, including funding for projects for the departments of Administrative Services, Blind, Corrections, Cultural Affairs, Economic Development, Education, Natural Resources, Public Defense, Public Safety, and Transportation, and for the State Board of Regents, Iowa State Fair Authority, National Program for Playground Safety, Treasurer of State, and the Commission of Veterans Affairs, and to the State Board of Regents for tuition replacement.

The division provides for extended reversion periods for, or for purposes of, previous appropriations made from RIIF.

Division XII - Environment First Fund

Division XII appropriates from the Environment First Fund to the departments of Agriculture and Land Stewardship, Economic Development, and Natural Resources. The division also appropriates $11 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.

Division XIII - Tobacco Settlement Trust Fund

Division XIII makes appropriations and modifies prior appropriations from the Tax-Exempt Bond Proceeds Restricted Capital Funds Account of the Tobacco Settlement Trust Fund for projects for DAS.

The division 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 Office of the Treasurer of State for debt service for the Iowa Communications Network and repayment of prison infrastructure bonds.

The division also transfers moneys from the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund to RIIF.

Division XIV - Miscellaneous Funds

Division XIV makes appropriations from the General Fund of the State to the Office of Secretary of State to draw down federal funds for the purchase and installation of voting machines under the federal Help America Vote Act, to IDOT for aviation projects and the Rail Assistance Program and to provide economic development project funding, and to the Racing and Gaming Commission to fund one additional gaming representative at the three licensed racetracks. The division makes appropriations from the Primary Road Fund and the Road Use Tax Fund to IDOT to pay for services provided by DAS.

Division XV - Code Changes

Division XV amends various Code sections to do the following:

"Authorize IDED to enter into an agreement with a person, including for-profit and nonprofit entities, in order to directly or indirectly apply for, receive, administer, and use federal funds, including federal tax credits, grants, or other economic benefits provided by the federal government.

"Exempt from the state sales and use taxes the lease or rental of certain building and construction machinery and equipment and specify that the sales of such items are not exempt when purchased for resale other than those purchased for lease or rental.

Division XVI - Miscellaneous Provisions

Division XVI amends various Code sections, enacts new Code sections, and provides miscellaneous provisions as follows:

• Establishes a Vertical Infrastructure Fund to be used for public infrastructure projects, including land acquisition, major renovation and repair of buildings, and site development, and appropriates $15 million from RIIF to the fund for FY 2005-2006.
• Requires the entity requesting an Iowa Communications Network receiving site in a video classroom to be billed directly for operating costs related to the communication if the originator of the communication does not fund such costs.
• Directs IDED to defer payment of principal balance of the loan granted to an Iowa agricultural industry finance corporation until October 1, 2007. The interest on this loan is to be paid on October 1, 2010.
• Amends S.F. 2284 (see Local Government), relating to regional transit districts, to define transportation as the movement or carrying of individuals in a wheeled motorized vehicle or upon cars operated on stationary rails, and to change the population threshold for creation of regional transit districts from counties with a population in excess of 300,000 to counties with a population in excess of 175,000. The division also requires the amount of the regional transit district levy that is the responsibility of a participating county to be deducted from the maximum rate of taxes authorized to be levied by the county, if the district includes a county with a population of less than 300,000.
• Extends the allocation of workforce training and economic development funds for community colleges for the purposes of funding job retention projects by one year, to FY 2006-2007. The extension only applies if moneys allocated for that purpose for FY 2003-2004 are unobligated and unencumbered on June 30, 2004. The unobligated and unencumbered moneys are to be distributed to community colleges utilizing the same distribution formula used for the allocation of state general aid to the community colleges for FY 2004-2005. These provisions take effect May 17, 2004.
• Amends Code Section 306.46, as enacted by S.F. 2118 (see Energy & Public Utilities), to provide that the provision, relating to public utility facilities in a public road right of way, shall not impair or interfere with a city's authority to grant, amend, extend, or renew a franchise, and shall not impair or interfere with a city's existing general police powers to control the use of its right of way. The provision takes effect May 17, 2004.
• Requires IDOT to adopt rules relating to railroad employees' access to first aid and medical treatment when injured in the course of employment. A railroad corporation found guilty of a violation of the rules is subject to a $100 penalty.
• Extends the time periods within which DAS must conduct a study of the impact of transferring all information technology-related state employees to the department and of physically merging the data centers of the department, IDOT, and IWD, and within which the department must report its findings and recommendations to the Legislative Services Agency and certain legislative standing committees.
• Changes the civil penalties enacted in H.F. 2476 (see Agriculture), relating to infected poultry, for owning or operating a restricted concentration point, owning or having custody of infected poultry at a restricted concentration point, or transporting infected poultry to or from a restricted concentration point from not less than $5,000 for the first violation to $5,000 for the first violation and from not less than $25,000 for each subsequent violation to $25,000 for each subsequent violation.
• Increases by $10, from $35 to $45, the special initial fee for natural resources motor vehicle plates. The annual registration fee for these special plates is increased from $10 to $25. The additional fees are to be allocated to DNR's Wildlife Bureau to be used for nongame wildlife programs. These increases of plate and registration fees take effect January 1, 2005.
• Changes from June 30 to August 15 the due date for the remitting, on a prepayment basis, of insurance premiums tax by insurance companies and county and state mutual insurance associations. This change takes effect May 17, 2004.
• Changes the applicability date of S.F. 2257 (see Business, Banking & Insurance) from April 1, 2005, to October 1, 2004, as it relates to the use of credit information for personal insurance purposes.
• Changes the effective date from April 28, 2004, to July 1, 2004, for newly enacted Code Section 99B.10, subsection 5B, which requires that at a location with only a beer permit a security mechanism be attached to a registered electrical and mechanical amusement device to prevent its operation until the owner or owner's designee allows a person to operate such device.

Division XVII - Corrective Provisions

Division XVII provides technical, corrective amendments to legislation enacted in the 2004 Regular Legislative Session and to several Code provisions affected by legislation enacted in the 2004 Legislative Session.

Division XVIII - Community Attraction and Tourism Fund

Division XVIII amends the Community Attraction and Tourism Program and Fund. The division provides that a project with a total cost exceeding $20 million may receive financial assistance under the program. For the fiscal period beginning July 1, 2004, and ending June 30, 2010, the division appropriates moneys from RIIF to the Community Attraction and Tourism Fund. For the fiscal period beginning July 1, 2005, and ending June 30, 2010, the division appropriates moneys from the franchise tax revenues deposited in the General Fund of the State to the Community Attraction and Tourism Fund.

Division XIX - Regulatory Efficiency Commission - VETOED BY THE GOVERNOR

Division XX - Wind Energy Tax Credits

Division XX provides a wind energy production tax credit to be used to offset a taxpayer's tax liability under the individual or corporate income tax, franchise tax, or insurance premiums tax. The credit is based upon the number of kilowatt hours of electricity produced and sold by a qualified facility that uses wind energy to generate electricity. The credit amount is determined by multiplying those kilowatt hours by 1 cent. However, the maximum amount of credit in a tax year is equal to 1 cent times 32 percent of the nameplate generating capacity of the qualified facility. Any unused amount of this maximum credit may be carried forward to increase next year's maximum amount. A qualified facility is one located in Iowa that was originally placed in operation between July 1, 2004, and June 30, 2007. The credit is nonrefundable. However, the credit may be transferred by the taxpayer to another taxpayer, or any credit not used by the taxpayer may be carried forward for up to seven years.

To be eligible to receive the tax credit, the owner must receive approval by the board of supervisors of the county where the facility is located. If approval is granted, the owner may apply for the tax credit and any property taxes levied on the facility by all jurisdictions in which the facility is located are to be paid to the state for the next 12 years.

The division takes effect May 17, 2004, and applies starting with a tax year beginning on or after January 1, 2004. However, the tax credits cannot be used for a tax year beginning prior to July 1, 2005.

Division XXI - Licensed Interpreter for the Hearing Impaired

Division XXI provides for the licensing of interpreters for the hearing impaired. The division makes several conforming changes establishing that interpreting for the hearing impaired is a profession regulated by the general, health-related Code provisions; establishing penalty provisions applicable to the licensing of health-related professions; and establishing the Board of Interpreter for the Hearing Impaired Examiners.

The division creates new Code Chapter 154E governing the licensure of interpreters for the hearing impaired and includes definitions. The division provides that on or after July 1, 2005, every person providing interpreting or transliterating services shall be licensed, unless specified exemptions apply, and that a licensing examination shall be prescribed by the board, demonstrating proficiency at voice-to-sign interpretation, sign-to-voice interpretation, and professional conduct. The division prescribes duties for the Board of Interpreter for the Hearing Impaired Examiners, and provides transition provisions specifying that the provisional establishment of the board shall become effective July 1, 2004, for the sole purpose of appointment of members and organizing, planning, and adopting rules in advance of the July 1, 2005, interpreter licensure effective date. The transition provisions additionally specify that applicants for licensure who have not passed a licensure examination approved by the board by July 1, 2005, shall be issued a temporary license to practice interpreting for a two-year period, but must pass a licensure examination approved by the board on or before July 1, 2007, in order to remain licensed as an interpreter.

The division appropriates $60,390 from the General Fund of the State to IDPH for FY 2004-2005 to protect the health and safety of the public through establishing standards and enforcing regulations relating to interpreters.

The division includes an effective date of July 1, 2005, for sections amending Code Chapters 147 and 272C and enacting Code Chapter 154E.

Division XXII - Income Tax Checkoffs

Division XXII makes changes relating to Iowa individual income tax checkoffs.

The division reenacts the Keep Iowa Beautiful Checkoff, which was scheduled to be removed from the Iowa individual income tax return form. Taxpayers filing individual income tax returns will be allowed to designate $1 or more on the return to be paid to the Keep Iowa Beautiful Fund. The division requires the Department of Revenue to annually remit moneys collected from the checkoff to the fund created in the Office of the Treasurer of State. Moneys in the fund are subject to appropriation by the General Assembly annually to IDOT for the purpose of awarding financial assistance to an applicant who submits, along with its application, a plan for litter prevention, improving waste management and recycling efforts, or a beautification project. The checkoff is subject to the limitation on the number of checkoffs allowed on the Iowa individual income tax return and, for that reason, is subject to repeal.

The division also creates a Volunteer Fire Fighter Preparedness Checkoff. Moneys collected from the checkoff are to be credited to the Volunteer Fire Fighter Preparedness Fund under the control of the Division of Fire Protection of DPS. Moneys in the fund are appropriated to the Division of Fire Protection and are to be used to pay the costs of providing volunteer fire fighter training around the state and volunteer fire fighter training equipment. The checkoff is subject to the limitation on the number of checkoffs allowed on the Iowa individual income tax return and, for that reason, is subject to repeal.

The division amends Code Section 422.12E relating to the limitation on the number of checkoffs allowed on the Iowa individual income tax return to allow for four checkoffs on a return form for two years with two checkoffs being taken off at a time. When the same four income tax return checkoffs have been provided for two consecutive years, the two checkoffs receiving the lowest contributions are repealed automatically without further action by the General Assembly. If more checkoffs are enacted during a session of the General Assembly than space available on the income tax return form, the checkoffs first enacted will take the next available openings on the income tax return form and all other checkoffs enacted during that session are repealed. These provisions of the division take effect May 17, 2004.

The checkoffs created in the division apply retroactively to January 1, 2004, for tax years beginning on or after that date.

See S.F. 2112 for other changes to the Keep Iowa Beautiful Checkoff.

Division XXIII - State Tax Implementation Committee

Division XXIII repeals the section of 2003 Iowa Acts, Chapter 1, which created the Property Tax Implementation Committee. The division takes effect May 17, 2004.

Division XXIV - 911 Emergency

Division XXIV amends Code Chapter 34A to incorporate expanding E911 technology and wireless communications services. The division renames the E911 Administrator the E911 Program Manager to avoid confusion with the duties required of the Administrator of the Homeland Security and Emergency Management Division of the Department of Public Defense. The division deletes obsolete language contained in Code Chapter 34A. The division permits joint E911 service boards to request certain information each quarter from local exchange service providers.

The division increases the monthly wireless communications surcharge from 50 cents to 65 cents on each wireless number provided in Iowa, and establishes a priority quarterly distribution of funds collected by the wireless communications surcharge. Funds are first distributed to the administrator and program manager for administration costs and the costs of an annual audit; then to wireless carriers to recover costs related to E911 phase 1 services and to wire-line carriers for transport costs; and then distributed quarterly to wire-line carriers and third-party E911 automatic location information database providers. The program manager shall distribute funds toward outstanding obligations incurred under Code Chapter 34A prior to July 1, 2004, and to the joint E911 service boards and DPS. If funds remain after all distributions, the division designates the remaining funds as a carryover operating surplus to fund future wireless E911 phase 2 network and public safety answering point improvements and wireless carriers' transport costs. Wireless E911 phase 2 will permit wireless service providers to deliver the call-back number and the latitude and longitude coordinates of a wireless device making a 911 call to the appropriate public safety answering point.

The division requires the program manager to submit an annual report to the Government Oversight Committee, including an accounting of the revenues and expenses of the E911 program. The committee shall review the priorities of distribution of funds at least every two years. The division requires the program manager to submit quarterly reports to the Fiscal Services Division of the Legislative Services Agency. The division designates the Auditor of State as a nonvoting member of the E911 Communications Council.

Division XXV - Sex Offender Registry.

Division XXV relates to release of Sex Offender Registry information. A provision is repealed that required the departments of Corrections, Human Services, and Public Safety, and juvenile court officers to perform a risk assessment for persons under the jurisdiction of one of the departments or juvenile court for purposes of disseminating information on the Sex Offender Registry. The division requires that Sex Offender Registry information be disseminated in the same manner for each offender. Current law provides that sex offender information be released in differing ways based upon the risk assessment score of the sex offender.

The division authorizes DPS to provide relevant sex offender information to a law enforcement agency, another state agency, the federal government, the single contact repository for employer access to criminal and dependent adult or child abuse records, and the general public via the department's Internet page, except that information relating to offenders under 20 years of age who commit statutory rape shall not be disclosed on the department's Internet page. The division further provides that a law enforcement agency may release sex offender information to another law enforcement agency, an agency of the state, another state's sex offender registry, the federal government, or the general public, including public and private agencies and neighborhood associations. Any member of the general public may request, in writing, Sex Offender Registry information from a local law enforcement agency. The county sheriff must provide a complete list of registered sex offenders in the county if requested by any person.

The division provides that sex offender information which may be provided to the public shall include the name, address, photograph, locations frequented by the sex offender, and the relevant criminal history of the sex offender. Information provided to the public does not include the identity of any victim.

The division makes Sex Offender Registry records confidential records under Code Chapter 22, Examination of Public Records. The release of Sex Offender Registry records is governed by changes made to Code Section 692A.13 in the division.

The division applies retroactively to all sex offenders.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

1. A requirement that DAS deposit at the end of FY 2004-2005 into the State General Fund the amount that was appropriated for start-up funding of the departmental revolving and internal service funds.
2. Language prohibiting the Alcoholic Beverages Division of the Department of Commerce from adding state employees to assume state liquor warehouse functions performed by a private contractor as of April 1, 2004, and requiring that the division conduct a competitive bid process to select a successor private contractor to perform this function.
3. 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.
4. A provision requiring that small business development centers be located equally throughout the state.
5. Provisions requiring the University of Iowa, the University of Northern Iowa, and Iowa State University to emphasize that a business and an individual that create a business and receive benefits from a program funded, in part, through moneys appropriated in the Act have a commercially viable product or service.
6. A provision encouraging the Iowa Community College One Source Training Initiative to explore a partnership with Software and Information Technology of Iowa to identify methods of funding the training and retraining needs of the software and information technology sector in Iowa.
7. A requirement that IDED, IWD, and regents institutions file a written report on a quarterly basis with certain members of the General Assembly and the Legislative Services Agency regarding all allocations and expenditures of moneys appropriated and FTEs allocated.
8. A provision directing the Department of Education to work with the State Board of Regents and other postsecondary institutions with approved practitioner preparation programs to assess the feasibility of offering a teacher intern program to provide for nontraditional or alternative licensure for prospective practitioners.
9. A provision requiring the State Board of Regents, DOM, and the Legislative Services Agency to cooperate to determine and agree upon the amount of tuition replacement that needs to be appropriated for FY 2005-2006.
10. A provision stating the intent of the General Assembly that the University of Iowa continue progress on the School of Public Health and the Public Health Initiative; and providing that from the funds appropriated to the University of Iowa, up to $2.1 million may be used for the School of Public Health and the Public Health Initiative.
11. A provision that prohibited the use of the appropriation for the University of Iowa's hospitals for performing abortions except medically necessary abortions.
12. A provision stating the intent of the General Assembly that Iowa State University continue progress on the Center for Excellence in Fundamental Plant Sciences; and providing that from the funds appropriated to Iowa State University, up to $4.67 million may be used for the Center for Excellence in Fundamental Plant Sciences.
13. A provision stating the intent of the General Assembly that the University of Northern Iowa continue progress on the implementation of a Master's in Social Work degree program; and providing that from the funds appropriated to the University of Northern Iowa, the university may use up to $450,000 for the program, up to $100,000 for the Roadside Vegetation Project, and up to $200,000 for the Iowa Office for Staff Development.
14. A provision delaying by one fiscal year the development and implementation of an evaluator training certification renewal program by the Department of Education.
15. A requirement that IDPH report to the Governor and General Assembly regarding the number of religious and other nongovernmental organizations that applied for and received or were denied funds appropriated for addictive disorders.
16. A requirement that IDPH submit a report of the results of the directive to identify federal funding received for the AIDS Drug Assistance Program to specified persons.
17. A directive to the Director of Public Health to employ a division administrator for the Division of Tobacco Use Prevention and Control.
18. A provision that appropriates moneys previously deposited in the Iowa Marriage Initiative Grant Fund to DHS to fund an Iowa Fatherhood and Family Initiative Grant Program.
19. A requirement directing DHS to submit a report of its findings to the General Assembly by December 15, 2004, on utilization of the federal Food Stamp Program.
20. A definition of "medically necessary abortions" for which Medicaid Program moneys may be used.
21. A provision requesting DHS to convene a group to review programs and services of the Iowa Juvenile Home.
22. A provision directing DHS to develop a plan for privatizing the administration of the foster care and adoption programs.
23. A provision that carryover of moneys appropriated for FY 2003-2004 for the Medicaid Program from the General Fund, the Senior Living Trust Fund, the Hospital Trust Fund, and Healthy Iowans Tobacco Trust remain unencumbered. The provision includes language that allows DHS to use up to $2.3 million of the carryover amount to draw down the maximum amount of disproportionate share hospital reimbursement, and provides that any amounts received be distributed in accordance with the regular Disproportionate Share Hospital Program payment provisions.
24. A provision to designate as the central office for faith-based and community-based initiatives a statewide, nonprofit agency that receives a subgrant to assist faith-based and community-based organizations to develop coalitions and partnerships.
25. A provision directing DHS to establish a Medical Assistance Mental Health Quality of Care Improvement Committee through FY 2006-2007. The committee was to advise DHS on clinical treatment algorithms for schizophrenia, major depressive disorders, and bipolar disorders and on a mental health polypharmacy review process.
26. An appropriation from the Senior Living Trust Fund to the Insurance Division of the Department of Commerce for administration of the Long-Term Care Insurance Partnership Program.
27. A provision that grants immunity to a governmental or nonprofit entity that uses inmate labor to restore or preserve rural cemeteries or landmarks.
28. A provision requiring DNR to grant an owner of a parcel of land road access to a public road under certain circumstances.
29. Language changing the poverty threshold at which a person is entitled to a court-appoint attorney from at or below 125 percent to at or below 100 percent of federal revised poverty income guidelines.
30. A provision that transfers moneys credited during FY 2004-2005 to the depreciation fund maintained by DAS for purposes of the State Motor Pool, up to $475,000, to the Vehicle Depreciation Account to be used by the Iowa State Patrol.
31. A requirement that the State Board of Education adopt rules directing school districts and AEAs to submit annually data regarding salaries and benefits of administrators from the most recent contract settlement increases for salaries and group health insurance plans provided under collective bargaining agreements.
32. An extension and expansion of a Department of Education reporting requirement relating to K-3 class size reduction data.
33. A requirement that the board of directors of each school district annually review school district expenditures and identify and examine potential cost savings that can be achieved in the delivery of administrative services and other costs involved in the operation of the district and reported to the Department of Education.
34. The establishment of an exemption from the sanitary landfill tonnage fee for nonmetallic material shredded by an industrial shredder and known as shredder fluff.
35. Language providing for a refund of registration fees, penalties, and interest paid by a person who failed to register a commercial vehicle because the person sold the commercial vehicle but did not submit the registration plate and registration receipt to IDOT.
36. Language establishing a permanent requirement that if an FTE position budgeted for within an appropriation from the General Fund of the State is vacant for any portion of the fiscal year, the amount of salary and benefits associated with the time of vacancy shall be considered encumbered for that time period, shall not be spent for any other purposes, and shall be reverted.
37. Language providing that for computation purposes under the state Workers' Compensation Law, when a school district employee is paid pursuant to a contract for a different period of time than that during which the employee works, the employee's weekly earnings are to be based on the period of time for which the earnings are paid rather than the period during which the services are performed.
38. A provision that requires the State Board of Regents to report on the policies of its institutions for addressing the budget ramifications associated with unfilled vacant positions, or, if a policy does not exist, to establish one.
39. The creation of an 18-member Iowa Learning Technology Commission and an Iowa Learning Technology Fund to establish a four-year learning technology pilot program and public-private partnership to provide a wireless laptop computer to each student, teacher, and relevant administrator in a participating school and implement the use of software, on-line courses, and other appropriate learning technologies that have been shown to improve academic achievement and specified progress measures. The Governor's item veto message designated Section 242, subsections 2 through 4, and Sections 243 through 246 of the Act in their entirety as being disapproved. However, the enrolled copy of the Act, which is marked up by the Governor and returned to the General Assembly, was not marked to indicate disapproval of Sections 243 through 246.
40. The appropriation from RIIF to DAS for capitol interior restoration.
41. The appropriation from RIIF to DHS for providing grants to aid in construction of a residential treatment facility for youths in a county of approximately 80,000 people.
42. A provision that the maximum appropriation for FY 2004-2005 from RIIF to the Secure an Advanced Vision for Education Fund is $8.16 million in lieu of the $10 million provided in Code Section 8.57, subsection 5.
43. A provision requiring DAS to consult with leaders of the General Assembly prior to planning or implementing any capitol interior restoration project.
44. A requirement that at least 80 percent of federal moneys drawn down under the federal Help America Vote Act be distributed to counties for implementation of the federal Act.
45. A provision transferring surplus moneys of the Iowa Finance Authority to the Housing Trust Fund for FY 2004-2005.
46. A provision designating DPS as being solely responsible for certain executive branch capitol complex security system and equipment activities and directing DAS to cooperate with DPS in its execution of such activities.
47. A standing appropriation from RIIF to the newly created Vertical Infrastructure Fund beginning with FY 2006-2007.
48. Language providing that if building space at the Mental Health Institute at Cherokee being used by an outside organization is going to be vacated, DHS must reserve the space. The language also directed the department to develop a plan for using vacant building space at Cherokee for a program to address the treatment needs of persons with a developmental disability who exhibit sexually violent behavior and are residents at state resource centers or other residential settings.
49. Language granting authority to a county board of supervisors to enter into agreements with IDOT for the disposition of county property in the same manner as it is authorized to dispose of the county's interest in real property.
50. Language that would have established a Regulatory Efficiency Commission for purposes of identifying unneeded regulations, fines and fees that hinder business development and would have identified methods for streamlining access to regulatory information. The commission would have reported to the Governor and General Assembly in January 2005.
51. Sections that create and repeal the State Tax Implementation Committee. Membership on the committee would have included members of the General Assembly and persons representing various state and local government entities and taxpayers. The committee was charged with reviewing and analyzing revenue sources of state and local government, various tax reductions in state and local taxes allowed taxpayers, services provided by local governments, the role of property taxes in funding local government services, and alternative systems of property taxation. The committee was to submit a final report to the General Assembly by final adjournment of the 2005 Regular Legislative Session. The report was to summarize the committee's activities and analyze issues studied and include other information deemed relevant and necessary. Also vetoed was the appropriation of $50,000 for purposes of the committee.

SENATE FILE 2311 - Workforce and Economic Development Appropriations and Related Changes — EXTRAORDINARY SESSION (full text of bill)

BY COMMITTEE ON APPROPRIATIONS.

Division I - Economic Development Related Appropriations.

Division I of this Act validates contracts entered into, and projects and activities approved by, the Department of Economic Development (IDED) or the Grow Iowa Values Board in reliance on the validity of the law implementing the Grow Iowa Values Fund, which was subsequently declared invalid by the Iowa Supreme Court in the decision of Rants and Iverson v. Vilsack.

Board of Regents and accredited private institutions, workforce training and economic development funds of the community colleges, Endow Iowa grants and tax credits, targeted state parks and destination parks; and for deposit in the Loan and Credit Guarantee Fund and the Cash Reserve Fund. The appropriations remaining unobligated or unexpended do not revert at the close of the fiscal year but remain available for the succeeding fiscal year.

The Act also validates action by the State Appeal Board that approved payment of claims against the state for moneys appropriated from the Grow Iowa Values Fund and obligated prior to the Iowa Supreme Court decision of Rants and Iverson v. Vilsack.

The division of the 2003 session law invalidated by the Iowa Supreme Court decision containing the Grow Iowa Values Fund appropriations is repealed.

The division is retroactively applicable to July 1, 2003.

Division II - Workforce Development Field Offices

Division II of this Act appropriates State General Fund moneys for the fiscal period beginning July 1, 2004, and ending June 30, 2007, for Department of Workforce Development field offices. These offices were to be funded by administrative contribution surcharges to be collected in the 2004, 2005 and 2006 calendar years. The Iowa Supreme Court decision making H.F. 692 invalid also made the surcharges for those three calendar years invalid.

Division III - Workforce Training and Economic Development Funds

Division III of this Act amends Code Section 260C.18A, which establishes the workforce training and economic development funds of community colleges, to strike references to the Grow Iowa Values Fund and the multiyear appropriations made from it. The division applies retroactively to June 30, 2004.

The Act takes effect September 7, 2004.

HOUSE FILE 2039 - State Budget Adjustments - Cash Reserve and Senior Living Trust Funds (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act provides for a transfer from the Cash Reserve Fund to the General Fund of the State for FY 2002-2003 and includes a new standing appropriation of a portion of the surplus in the ending balance of the General Fund of the State to repay moneys appropriated from the Senior Living Trust Fund.

A shortfall occurred in the ending balance of the General Fund of the State for FY 2002-2003 due to an unanticipated reduction in revenues that are accrued for the fiscal year but are received after June 30. The Act transfers approximately $45.8 million from the Cash Reserve Fund to address the shortfall. Statutory provisions that would otherwise prohibit the transfer, require a supermajority vote, and apply other requirements are made inapplicable. The transfer provision takes effect February 12, 2004, and is retroactive to June 30, 2003.

The Act revises how a surplus in the ending balance of the General Fund of the State is distributed. Under prior law, the ending balance of the surplus was distributed in the following order: to be credited to the Cash Reserve Fund until the fund reaches its maximum balance, to address any items necessary under generally accepted accounting principles, to be credited to the Iowa Economic Emergency Fund until the fund reaches its maximum balance, to repay the Senior Living Trust Fund, and back to the General Fund of the State. The Act provides that before any of these distributions are made, up to a certain amount is appropriated to the Senior Living Trust Fund. The Senior Living Trust Fund appropriations begin at the conclusion of FY 2005-2006 and continue annually until the aggregate of $118 million is credited to that fund.

Because existing law already provides for repayment of the Senior Living Trust Fund once the Iowa Economic Emergency Fund reaches its maximum balance, coordinating language is included so that the repayment is not duplicated.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

• A change in the State General Fund Expenditure Limitation Law that would have been first applicable to FY 2005-2006. Current law provides the limitation is 99 percent of the adjusted revenue estimate for a fiscal year. The change would have set the limitation at 98 percent of the adjusted revenue estimate.

HOUSE FILE 2402 - Interdepartmental Appropriation Transfers - VETOED BY THE GOVERNOR (full text of bill)

BY COMMITTEE ON STATE GOVERNMENT. This bill would have revised the authority of the Director of the Department of Management to make interdepartmental transfers of appropriations.

Under current law, the director, with the approval of the Governor, can make such transfers provided certain reports are made to certain legislative committees and members. If the General Assembly is in regular session, current law only allows interdepartmental transfers to entitlement appropriations, defined as those made for indigent defense and certain Department of Human Services programs. In addition, current law does not allow the sum of transfers to an appropriation which is not an entitlement appropriation to exceed 50 percent of the amount of the appropriation.

The bill would have applied a new restriction limiting the total amount transferred in a fiscal year to an appropriation to $1 million, unless the transfer was made during the final 30 days of the fiscal year or unless the Legislative Council approved a resolution concurring with the proposed transfer requested by the director. The director would have been required to include with the request for a resolution the reasons for the transfer and other information required under current law. The resolution required approval by a majority of the membership of the Legislative Council and the transfer could not be made prior to the date of the resolution's approval. However, if the Legislative Council did not act within 30 calendar days of receiving the request to approve or reject a resolution concurring with the proposed transfer, the transfer would have been considered to be approved.

Under current law, the chairpersons of the appropriations committees and the appropriations subcommittees are to be notified current to an intradepartmental or interdepartmental transfer and have two weeks to review and comment on the transfer. Under the bill, the two-week period would have only applied to intradepartmental transfers.

HOUSE FILE 2538 - Cash Reserve, Infrastructure, and Environment First Funds - Transfers (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act makes a transfer of $17.5 million from the Cash Reserve Fund to the Rebuild Iowa Infrastructure Fund (RIIF) for FY 2003 2004. The transferred moneys are to be used for the standing appropriation from RIIF to the Environment First Fund. The transfer is exempted from provisions in Code Section 8.56 which otherwise prohibit transfers from the Cash Reserve Fund or use of the moneys in the Cash Reserve Fund by means other than an appropriation.

The Act includes a contingent provision so that if a tax on the adjusted gross receipts from gambling games conducted at racetrack enclosures is enacted, which is applicable to FY 2002-2003 and FY 2003-2004, and the proceeds are credited to RIIF, the amount transferred from the Cash Reserve Fund is replaced with those receipts.

The Act takes effect April 2, 2004.

HOUSE FILE 2577 - Healthy Iowans Tobacco Trust and Tobacco Settlement Trust Fund - Appropriations - Miscellaneous Provisions (full text of bill)

BY COMMITTEE ON APPROPRIATIONS. This Act relates to and makes appropriations from the Healthy Iowans Tobacco Trust.

The Act makes appropriations involving the Medical Assistance (Medicaid) Program to the Department of Human Services for FY 2004 2005 for reimbursement of or cost of living adjustments for certain service providers.

The Act also provides appropriations for supplementation of the appropriation for the state children's health insurance program known as hawk i and of the Medicaid Program, for coverage under the Medicaid Program to certain women who require treatment for breast and cervical cancer, and for general administration of health-related programs.

The Act appropriates funds to the Iowa Department of Public Health (IDPH) for the Tobacco Use Prevention and Control Program, for provision of smoking cessation and smoking related diseases products, and for additional substance abuse treatment.

The Act appropriates funds to IDPH for development of a Healthy Iowans 2010 Plan for core public health functions, for 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, and for the Childhood Lead Poisoning Prevention Program.

The Act appropriates moneys to IDPH for the Automatic External Defibrillator Grant Program and for the Center for Congenital and Inherited Disorders.

The Act appropriates funds to the Department of Corrections for day programming, the Drug Court Program, and a value based treatment program at the Newton Correctional Facility.

The Act directs the Department for the Blind to plan, establish, administer, and promote a statewide program to provide audio news and information services to blind or visually impaired persons residing in this state, and appropriates moneys to the department for the program.

The Act appropriates funds to the Property Tax Relief Fund for FY 2004 2005, for assistance to counties with limited county mental health, mental retardation, and developmental disabilities (MH/MR/DD) services fund balances to continue reimbursement increases to service providers in the same amount as provided in FY 2000 2001.

The Act appropriates funds to the Iowa Empowerment Fund for FY 2004 2005 for deposit in the School Ready Children Grants Account and to the Department of Corrections for operation and staffing of the special needs unit at the Fort Madison correctional facility.

The Act also transfers an additional $6,316,077 from the Endowment for Iowa's Health Account of the Tobacco Settlement Trust Fund created in Code Section 12E.12 to the Healthy Iowans Tobacco Trust created in Code Section 12.65 for FY 2004 2005.

The Act makes changes in the administration of the Tobacco Use Prevention and Control Program.

The Act provides for payment of actual expenses of licensing board members in the performance of their duties on a licensee review committee.

The Act specifies requirements for selection of the High School Mentor Program grantee to reduce the use of illegal substances, and provides for nonreversion of FY 2003-2004 moneys appropriated for this purpose. This provision takes effect May 17, 2004.

THE GOVERNOR ITEM VETOED THE FOLLOWING:

• Language that authorized use of a portion of the value-based treatment program funds for a similar program at the Iowa Correctional Institution for Women at Mitchellville.