H-1275

   Amend House File 1028 as follows:
   1.  Page 1, before line 1 by inserting: 
   <Section 1.  Section 2.42, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  17.  To review and disapprove interdepartmental transfers described in section 8.39, subsection 4, paragraph “c”, as the council may determine.
   Sec. ___.  Section 8.39, subsections 2 and 4, Code 2025, are amended to read as follows:
   2.  If the appropriation of a department, institution, or agency is insufficient to properly meet the legitimate expenses of the department, institution, or agency, the director of the department of management, with the approval of the governor, may make an interdepartmental transfer from any other department, institution, or agency of the state having an appropriation in excess of its needs, of sufficient funds moneys to meet that deficiency. Such transfer shall be to an appropriation made from the same funding source and within the same fiscal year. The amount of a transfer made from an appropriation under this subsection shall be limited to not more than one-tenth of one percent of the total of all appropriations made from the funding source of the transferred appropriation for the fiscal year in which the transfer is made. An interdepartmental transfer to an appropriation which is not an entitlement appropriation is not authorized when the general assembly is in regular session and, in addition, the sum of interdepartmental transfers in a fiscal year to an appropriation which is not an entitlement appropriation shall not exceed fifty percent of the amount of the appropriation as enacted by the general assembly. For the purposes of this subsection, an entitlement appropriation is: 
   a.  “Appropriation in excess of its needs” means that the amount appropriated by the general assembly for a purpose is determined by the department, institution, or agency receiving the appropriation to be more than the amount necessary to carry out that purpose. An appropriation for an unspecified dollar amount, whether the appropriation is limited to be sufficient to carry out a particular purpose or is unlimited, shall not be considered an appropriation in excess of a department’s, institution’s, or agency’s needs.
   b.  “Entitlement appropriation” means a line item appropriation to the state public defender for indigent defense or to the department of health and human services for foster care, state supplementary assistance, medical assistance, or for the family investment program.
   4.  a.  Prior to any transfer of funds moneys pursuant to subsection 1 or 2 of this section, or a transfer of an allocation from a subunit of a department which statutorily has independent budgeting authority, the director of the department of management shall notify the chairpersons of the standing committees on appropriations of the senate and the house of representatives and the chairpersons of subcommittees of such committees of the proposed transfer. The notice from the director shall include information concerning the amount of the proposed transfer, the departments, institutions, or agencies affected by the proposed transfer, and the reasons for the proposed transfer. Chairpersons 
   b.  Unless a transfer is governed under paragraph “c”, chairpersons notified shall be given at least two weeks to review and comment on the proposed transfer before the transfer of funds is made.
   c.  (1)  This paragraph applies to any transfer made for a fiscal year under subsection 2 between July 1 of that fiscal year and the subsequent first day of the regular session of the general assembly occurring in that fiscal year.
   (2)  The director shall submit the notice required by this subsection to the chairpersons at least three weeks before the proposed transfer is made.
   (3)  In addition to the information otherwise required, the notice required by this subsection and submitted under this paragraph must also include all of the following:
   (a)  Information demonstrating that the appropriation from which the transfer will be made is in excess of the entity’s needs taking into account the date on which the transfer will occur within the fiscal year, and the reason the excess was not anticipated.
   (b)  Information demonstrating that the appropriation to which the transfer will be made is insufficient to properly meet the legitimate expenses of the entity taking into account the date on which the transfer will occur within the fiscal year, and the reason the deficiency was not anticipated.
   (c)  Information demonstrating that sufficient state moneys are available in the single funding source involved in the transfer, and citations to the law under which all entities affected by the transfer were appropriated moneys from that funding source for the applicable fiscal year.
   (4)  Prior to the date the proposed transfer will be made, the legislative council may meet to consider the transfer. At the meeting, the legislative council may vote to disapprove the transfer. If the legislative council disapproves the transfer, the transfer shall not occur.>
   2.  By renumbering as necessary.

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BERGAN of Winneshiek