Senate File 134 - Introduced SENATE FILE BY HATCH Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to county mental health, mental retardation, and 2 developmental disabilities services funds and levies, 3 authorizing a supplemental levy for such funds under certain 4 circumstances, and providing an effective date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2171XS 83 7 jp/sc/14 PAG LIN 1 1 Section 1. NEW SECTION. 225C.6C ADULT MENTAL HEALTH AND 1 2 DISABILITY SERVICES SYSTEM REFORM. 1 3 1. It is the intent of the general assembly to reform the 1 4 adult services system for mental health, mental retardation, 1 5 and developmental disabilities services administered by 1 6 counties in order to achieve all of the following goals: 1 7 a. Improve the overall system. 1 8 b. Increase equity. 1 9 c. Reduce complexity. 1 10 d. Eliminate the legal settlement system as a method of 1 11 determining financial responsibility. 1 12 e. Encourage efficiency. 1 13 f. Establish a base level of services while encouraging 1 14 local efforts to creatively meet consumer needs. 1 15 g. Eliminate waiting lists. 1 16 h. Improve capacity for meeting individual consumer needs. 1 17 i. Enhance accountability. 1 18 2. The commission shall do all of the following in 1 19 implementing the services system reform: 1 20 a. Identify a base level of adult mental health and 1 21 disability services that shall be available in each county of 1 22 the state on or before July 1, 2010. The initial list of base 1 23 level services shall be developed by the commission and 1 24 reported to the governor and general assembly on or before 1 25 December 15, 2009. 1 26 b. Implement a process for a county or a group of 1 27 contiguous counties to form a regional service network. The 1 28 minimum general population for a regional service network is 1 29 one hundred thousand persons. The most recent population 1 30 estimates issued by the United States bureau of the census 1 31 shall be applied in determining population for the purposes of 1 32 this paragraph. Notwithstanding chapter 426B or any other 1 33 provision of law to the contrary, in order to receive state 1 34 funding for disability services and property tax relief for 1 35 the fiscal year beginning July 1, 2010, each county shall have 2 1 entered into an agreement to be part of a regional service 2 2 network on or before December 15, 2009. 2 3 c. Adapt the concepts used in the school foundation aid 2 4 formula to formulate proposals for a new system of shared 2 5 state and county financing of the adult mental health, mental 2 6 retardation, and developmental disabilities services system. 2 7 d. Calculate a statewide cost for all counties to provide 2 8 the base level of services identified in paragraph "a" 2 9 beginning July 1, 2011. Utilize the calculated statewide cost 2 10 and an analysis of the property tax rates for county services 2 11 funds under section 331.424A, plus the state moneys 2 12 distributed for property tax relief and allowed growth under 2 13 chapter 426B, and any other provision to do the following: 2 14 (1) Propose a base level services fund levy rate for all 2 15 counties to replace the dollar limitation in effect under 2 16 section 331.424A, Code 2009. 2 17 (2) Propose the percentage of statewide cost of base level 2 18 services that will be funded by the state. 2 19 (3) Propose authorizing an additional levy for counties to 2 20 cover the costs of base level services and other mental health 2 21 and disabilities services beyond the amount generated under 2 22 subparagraphs (1) and (2). 2 23 (4) In developing the proposals under this lettered 2 24 paragraph, the commission may utilize formulas involving 2 25 calculations of average and per capita general population 2 26 expenditure rates. 2 27 Sec. 2. Section 331.424, Code 2009, is amended by adding 2 28 the following new subsection: 2 29 NEW SUBSECTION. 3. For county mental health, mental 2 30 retardation, and developmental disabilities services, an 2 31 amount authorized in accordance with this subsection. The 2 32 revenue from a supplemental levy authorized under this 2 33 subsection shall be credited to the county's services fund 2 34 under section 331.424A. 2 35 a. For the fiscal years beginning July 1, 2009, and July 3 1 1, 2010, the maximum amount of a county's supplemental levy 3 2 under this subsection shall be the sum of the following: 3 3 (1) The gross amount approved for the county as eligible 3 4 for risk pool assistance for the previous fiscal year by the 3 5 risk pool board under section 426B.5. This amount, as 3 6 adjusted for inflation, may also be included in subsequent 3 7 fiscal years. 3 8 (2) Any negative balance amount for the county's services 3 9 fund under section 331.424A in the most recently completed 3 10 fiscal year at the time the supplemental levy is certified. 3 11 (3) The amount needed to eliminate a waiting list for 3 12 services in effect at the time the supplemental levy is 3 13 certified. 3 14 (4) The amount needed to avoid implementation of a waiting 3 15 list for services. 3 16 (5) The amount needed to implement a base level service 3 17 identified by the mental health, mental retardation, 3 18 developmental disabilities, and brain injury commission under 3 19 section 225C.6C. 3 20 b. For the fiscal year beginning July 1, 2011, and 3 21 succeeding fiscal years, the amount needed to cover all base 3 22 level services and other services approved for the service 3 23 population that are not covered by state, federal, and private 3 24 funding or by the services fund levy authorized under section 3 25 331.424A. 3 26 c. For the fiscal years beginning July 1, 2009, and July 3 27 1, 2010, the levy rate resulting from the combination of the 3 28 county's supplemental levy under paragraph "a" and the 3 29 county's services fund levy authorized under section 331.424A 3 30 shall not exceed the actual levy rate of the county's services 3 31 fund for the fiscal year beginning July 1, 1997. 3 32 d. The amounts proposed by a county to be used as the 3 33 basis for a levy certification under this section are subject 3 34 to review and approval by the risk pool board. The risk pool 3 35 board's decision is final. 4 1 Sec. 3. EFFECTIVE DATE == INITIAL SUPPLEMENTAL LEVY. 4 2 1. This Act, being deemed of immediate importance, takes 4 3 effect upon enactment. 4 4 2. If the effective date of this Act is after March 15, 4 5 2009, a county board of supervisors may amend the county's 4 6 budget to incorporate a supplemental levy authorized under 4 7 section 331.424, subsection 3, as enacted by this Act, by 4 8 following all of the following procedures: 4 9 a. The amended budget shall be certified on or before May 4 10 31, 2009. 4 11 b. Not less than twenty days before May 31, 2009, and not 4 12 less than ten days before the date set for the hearing under 4 13 paragraph "c", the board shall file the amended budget with 4 14 the auditor. The auditor shall make available a sufficient 4 15 number of copies of the amended budget to meet the requests of 4 16 taxpayers and organizations and have them available for 4 17 distribution at the courthouse or other places designated by 4 18 the board. 4 19 c. The board shall set a time and place for a public 4 20 hearing on the amended budget before the final certification 4 21 date and shall publish notice of the hearing not less than ten 4 22 nor more than twenty days prior to the hearing in the county 4 23 newspapers selected under chapter 349. A summary of the 4 24 proposed budget amendment, in the form prescribed by the 4 25 director of the department of management, shall be included in 4 26 the notice. Proof of publication shall be filed with and 4 27 preserved by the auditor. A levy is not valid unless and 4 28 until the notice is published and filed. 4 29 d. At the hearing, a resident or taxpayer of the county 4 30 may present to the board objections to or arguments in favor 4 31 of any part of the amendment to the budget. 4 32 3. After the hearing, the board shall adopt by resolution 4 33 the amended budget and certificate of taxes for the next 4 34 fiscal year and shall direct the auditor to properly certify 4 35 and file the budget and certificate of taxes as adopted. The 5 1 board shall not adopt a tax in excess of the tax necessary to 5 2 incorporate the supplemental levy amount into the budget, and 5 3 a greater tax than that adopted shall not be levied or 5 4 collected. An amended budget and certificate of taxes adopted 5 5 for the following fiscal year in accordance with this section 5 6 becomes effective on the first day of that year. 5 7 Notwithstanding sections 331.435 and 331.436, a budget 5 8 amendment adopted in accordance with this section is not 5 9 subject to protest to the state appeal board. 5 10 EXPLANATION 5 11 This bill relates to county mental health, mental 5 12 retardation, and developmental disabilities (MH/MR/DD) 5 13 services funds and levies and authorizes a supplemental levy 5 14 under certain circumstances. 5 15 New Code section 225C.6C directs the mental health, mental 5 16 retardation, developmental disabilities, and brain injury 5 17 commission to perform various tasks for reforming the system 5 18 for providing these services to adults. The tasks include 5 19 identifying and projecting the costs for each county to 5 20 provide a base level of services and for requiring each county 5 21 to enter into a service agreement for the county or a group of 5 22 contiguous counties to form service areas comprising a minimum 5 23 general population of 100,000. The tasks for the financing 5 24 portion of the system reform involve adapting concepts 5 25 utilized in the school foundation aid formula. Proposals are 5 26 required to be completed for implementation by counties 5 27 beginning July 1, 2011. 5 28 Code section 331.424, relating to the supplemental property 5 29 tax levy for counties, is amended to authorize a county to 5 30 implement a supplemental levy for the county's MH/MR/DD 5 31 services fund. The levy authority is subject to various 5 32 restrictions, and the combined levy rate for the new 5 33 supplemental levy plus the services fund levy for FY 2009=2010 5 34 or 2010=2011 cannot exceed the county's actual services fund 5 35 levy rate for FY 1997=1998. The amounts proposed as a basis 6 1 for the supplemental levy are subject to review and approval 6 2 by the risk pool board. 6 3 The bill takes effect upon enactment and includes a 6 4 procedure for a county to amend the budget for FY 2009=2010 to 6 5 implement the new supplemental levy authority for FY 2009=2010 6 6 in the event the bill is enacted after March 15, 2009. 6 7 LSB 2171XS 83 6 8 jp/sc/14.1