CHAPTER 13
SUSPENSION AND REINSTATEMENT OF STATE FUNDS
541—13.1(27A) Definitions. For purposes of this chapter:
“City” means a municipal corporation but does not include a county, township, school district, or any special-purpose district or authority.
“County” means an administrative subdivision in the state governed by a locally elected board of supervisors and may be comprised of subdivisions, including cities, townships, school districts, or any special-purpose district or authority.
“Declaratory judgment” means a judgment issued by a district court declaring a local entity is in full compliance with Iowa Code chapter 27A or 27B.
“Department” means the Iowa department of management pursuant to Iowa Code chapter 8.
“Final judicial determination” means a district court ruling on a civil action brought by the state attorney general’s office finding a local entity to have violated the provisions of Iowa Code chapter 27A or 27B.
“Fiscal year” means the time period beginning on July 1 and ending the following June 30 as defined in Iowa Code section 8.36.
“Governing body” means the mayor and city council of a city or the board of supervisors of a county.
“Local entity” means the same as defined in Iowa Code section 27A.1(4) or 27B.1(1).
“State agencies” means any boards, commissions, or departments, as defined by Iowa Code section 7E.4, or other administrative offices or units of the executive branch of the state.
“State funds” means those funds held by the state that originate from revenues, fees or receipts collected by the state and distributed to local entities. Funds held by the state that are not defined as state funds include:
	1.	Federal funds (unless provided to the state and awarded as a grant by the state).
	2.	Funds paid out per gubernatorial or presidential emergency proclamation.
	3.	Any revenue collected and administered by the state on behalf of a local entity due to a locally imposed tax, fee or fine.
	4.	Any state funds for the provision of wearable body protective gear used for law enforcement purposes.
	5.	Payment for public protection, utilities, or goods and services.
	6.	Payment of settlements.
	7.	Setoffs as defined by Iowa Code section 8A.504.
[ARC 7501C, IAB 1/10/24, effective 2/14/24]
541—13.2(27A) Denial of state funds. State funds are denied to a local entity in circumstances authorized by Iowa Code section 27A.9(2) or 27B.5(2).
	13.2(1) The department will send written notification to each state agency to deny state funds. Payments will continue to be made to the local entity until the beginning of the state fiscal year that begins after the date on which a final judicial determination is made, at which time payments will be denied.
	13.2(2) If the local entity receives state funds through the county, the department will notify the county so that any needed changes may be made to apportionment systems for property tax credits, exemptions and replacements.
	13.2(3) State agencies will contact federal granting agencies in writing to determine how to administer federal funds when state match funds are denied. State agencies may be obligated to discontinue drawing federal funds or issue repayments as instructed by federal granting agencies.
	13.2(4) Funds will continue to be denied until the court issues a declaratory judgment declaring that the local entity is in full compliance with Iowa Code chapter 27A or 27B.
[ARC 7501C, IAB 1/10/24, effective 2/14/24]
541—13.3(27A) Reinstatement of eligibility to receive state funds. In circumstances authorized by Iowa Code section 27A.10(3) or 27B.6(3), the local entity’s eligibility to receive state funds is reinstated.
	13.3(1) The department will send written notification to each state agency to reinstate state funds. Payments will be reinstated to the local entity beginning on the first day of the month following the date on which the declaratory judgment is issued.
	13.3(2) State agencies will contact federal partners in writing to determine how to reinstate the drawdown of federal funds when state match funds are reinstated.
[ARC 7501C, IAB 1/10/24, effective 2/14/24]
These rules are intended to implement Iowa Code chapters 27A and 27B.
[Filed ARC 4141C (Notice ARC 4008C, IAB 9/26/18), IAB 11/21/18, effective 12/26/18]
[Filed ARC 7501C (Notice ARC 7120C, IAB 11/15/23), IAB 1/10/24, effective 2/14/24]