House File 2106 - Introduced



                                       HOUSE FILE       
                                       BY  CARROLL


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the allowed growth factor adjustment funding
  2    for county mental health, mental retardation, and
  3    developmental disabilities services funds and including
  4    effective date and retroactive applicability provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 6152HH 81
  7 jp/je/5

PAG LIN



  1  1    Section 1.  Section 331.438, subsection 2, Code Supplement
  1  2 2005, is amended by adding the following new paragraph:
  1  3    NEW PARAGRAPH.  d.  Unless otherwise provided by law, in
  1  4 order to be included in any distribution formula for the
  1  5 allowed growth factor adjustment and to receive an allowed
  1  6 growth factor adjustment payment, a county must levy seventy
  1  7 percent or more of the maximum amount allowed for the county's
  1  8 services fund for taxes due and payable in the fiscal year for
  1  9 which the allowed growth factor adjustment is payable.
  1 10    Sec. 2.  WARRANT MAILING DATE.  Notwithstanding section
  1 11 331.438, subsection 2, paragraph "c", if this Act is enacted
  1 12 on or after January 23, 2006, the warrants for the allowed
  1 13 growth adjustment payments to counties for the fiscal year
  1 14 beginning July 1, 2005, shall not be mailed by January 31,
  1 15 2006, but instead shall be mailed no later than ten calendar
  1 16 days following the date of enactment of this Act.
  1 17    Sec. 3.  2004 Iowa Acts, chapter 1175, section 173,
  1 18 subsection 4, paragraph c, as enacted by 2005 Iowa Acts,
  1 19 chapter 175, section 52, is amended to read as follows:
  1 20    c.  For an ending balance percentage of 10 or more but less
  1 21 than 25 percent, a withholding factor of 25 28.043 percent.
  1 22 However, for a county with an ending balance percentage of 10
  1 23 or more but less than 15 percent that meets the eligibility
  1 24 requirements for a distribution from the per capita
  1 25 expenditure target pool under section 426B.5 for the fiscal
  1 26 year beginning July 1, 2005, the withholding factor shall be
  1 27 14.643 percent.
  1 28    Sec. 4.  EFFECTIVE DATE == RETROACTIVE APPLICABILITY.  This
  1 29 Act, being deemed of immediate importance, takes effect upon
  1 30 enactment and is retroactively applicable to July 1, 2005, and
  1 31 is applicable on and after that date.
  1 32                           EXPLANATION
  1 33    This bill revises the distribution provisions for the
  1 34 allowed growth factor adjustment funding for county mental
  1 35 health, mental retardation, and developmental disabilities
  2  1 (MH/MR/DD) services funds under Code section 331.424A.
  2  2    Code section 331.438, relating to the allowed growth factor
  2  3 adjustment funding, planning, and payment of the funding, is
  2  4 amended.  The amendment provides that a county cannot be
  2  5 included in any distribution formula for the allowed growth
  2  6 factor adjustment or receive a payment unless the county
  2  7 levies at least 70 percent of the maximum amount allowed for
  2  8 the county's services fund in the year in which the allowed
  2  9 growth adjustment is payable.
  2 10    The bill includes contingent language in the event the
  2 11 enactment date of the bill is on or after January 23, 2006.
  2 12 In that event, instead of applying the requirement in Code
  2 13 section 331.438 that the warrants for allowed growth
  2 14 adjustment payment to counties must be mailed in January, the
  2 15 bill requires the warrants to be mailed no later than 10
  2 16 calendar days following the enactment date of the bill.
  2 17    The bill amends the session law providing the distribution
  2 18 formula for the FY 2005=2006 allowed growth factor adjustment.
  2 19 Existing law provides that if a county has an ending balance
  2 20 percentage in the county MH/MR/DD services fund at the close
  2 21 of FY 2004=2005 that is more than 10 percent but less than 25
  2 22 percent of the county's gross expenditures from the services
  2 23 fund in that fiscal year, the amount of the allowed growth
  2 24 factor adjustment payment to that county for FY 2005=2006 is
  2 25 reduced by a withholding factor of 25 percent.  The bill
  2 26 changes that withholding factor to 28.043 percent.  Existing
  2 27 law provides the department of human services with authority
  2 28 to adjust the withholding percentage in order for the overall
  2 29 withholding amount to be achieved.  The bill also provides
  2 30 that if a county had an ending balance percentage of more than
  2 31 10 but less than 15 percent and qualified for a distribution
  2 32 from the per capita expenditure target pool for FY 2005-2006,
  2 33 the withholding factor is 14.643 percent.
  2 34    The bill takes effect upon enactment, is retroactively
  2 35 applicable to July 1, 2005, and is applicable on and after
  3  1 that date.
  3  2 LSB 6152HH 81
  3  3 jp:rj/je/5