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 of2528.043 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