House File 1028 H-1275 Amend House File 1028 as follows: 1 1. Page 1, before line 1 by inserting: 2 < Section 1. Section 2.42, Code 2025, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 17. To review and disapprove 5 interdepartmental transfers described in section 8.39, 6 subsection 4, paragraph “c” , as the council may determine. 7 Sec. ___. Section 8.39, subsections 2 and 4, Code 2025, are 8 amended to read as follows: 9 2. If the appropriation of a department, institution, 10 or agency is insufficient to properly meet the legitimate 11 expenses of the department, institution, or agency, the 12 director of the department of management , with the approval 13 of the governor, may make an interdepartmental transfer from 14 any other department, institution, or agency of the state 15 having an appropriation in excess of its needs, of sufficient 16 funds moneys to meet that deficiency. Such transfer shall 17 be to an appropriation made from the same funding source and 18 within the same fiscal year. The amount of a transfer made 19 from an appropriation under this subsection shall be limited 20 to not more than one-tenth of one percent of the total of all 21 appropriations made from the funding source of the transferred 22 appropriation for the fiscal year in which the transfer is 23 made. An interdepartmental transfer to an appropriation which 24 is not an entitlement appropriation is not authorized when 25 the general assembly is in regular session and, in addition, 26 the sum of interdepartmental transfers in a fiscal year to an 27 appropriation which is not an entitlement appropriation shall 28 not exceed fifty percent of the amount of the appropriation 29 as enacted by the general assembly. For the purposes of this 30 subsection , an entitlement appropriation is : 31 a. “Appropriation in excess of its needs” means that the 32 amount appropriated by the general assembly for a purpose is 33 determined by the department, institution, or agency receiving 34 the appropriation to be more than the amount necessary to carry 35 -1- HF 1028.1710 (1) 91 ns/jh 1/ 3 #1.

out that purpose. An appropriation for an unspecified dollar 1 amount, whether the appropriation is limited to be sufficient 2 to carry out a particular purpose or is unlimited, shall not 3 be considered an appropriation in excess of a department’s, 4 institution’s, or agency’s needs. 5 b. “Entitlement appropriation” means a line item 6 appropriation to the state public defender for indigent defense 7 or to the department of health and human services for foster 8 care, state supplementary assistance, medical assistance, or 9 for the family investment program. 10 4. a. Prior to any transfer of funds moneys pursuant 11 to subsection 1 or 2 of this section , or a transfer of an 12 allocation from a subunit of a department which statutorily has 13 independent budgeting authority, the director of the department 14 of management shall notify the chairpersons of the standing 15 committees on appropriations of the senate and the house of 16 representatives and the chairpersons of subcommittees of such 17 committees of the proposed transfer. The notice from the 18 director shall include information concerning the amount of the 19 proposed transfer, the departments, institutions, or agencies 20 affected by the proposed transfer , and the reasons for the 21 proposed transfer. Chairpersons 22 b. Unless a transfer is governed under paragraph “c” , 23 chairpersons notified shall be given at least two weeks to 24 review and comment on the proposed transfer before the transfer 25 of funds is made. 26 c. (1) This paragraph applies to any transfer made for a 27 fiscal year under subsection 2 between July 1 of that fiscal 28 year and the subsequent first day of the regular session of the 29 general assembly occurring in that fiscal year. 30 (2) The director shall submit the notice required by this 31 subsection to the chairpersons at least three weeks before the 32 proposed transfer is made. 33 (3) In addition to the information otherwise required, the 34 notice required by this subsection and submitted under this 35 -2- HF 1028.1710 (1) 91 ns/jh 2/ 3

paragraph must also include all of the following: 1 (a) Information demonstrating that the appropriation from 2 which the transfer will be made is in excess of the entity’s 3 needs taking into account the date on which the transfer will 4 occur within the fiscal year, and the reason the excess was not 5 anticipated. 6 (b) Information demonstrating that the appropriation to 7 which the transfer will be made is insufficient to properly 8 meet the legitimate expenses of the entity taking into account 9 the date on which the transfer will occur within the fiscal 10 year, and the reason the deficiency was not anticipated. 11 (c) Information demonstrating that sufficient state moneys 12 are available in the single funding source involved in the 13 transfer, and citations to the law under which all entities 14 affected by the transfer were appropriated moneys from that 15 funding source for the applicable fiscal year. 16 (4) Prior to the date the proposed transfer will be made, 17 the legislative council may meet to consider the transfer. At 18 the meeting, the legislative council may vote to disapprove the 19 transfer. If the legislative council disapproves the transfer, 20 the transfer shall not occur. > 21 2. By renumbering as necessary. 22 ______________________________ BERGAN of Winneshiek -3- HF 1028.1710 (1) 91 ns/jh 3/ 3 #2.