Senate Study Bill 1303
SENATE FILE
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON BOLKCOM)
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, levy authority for
3 such funds, and the state allowed growth factor adjustment
4 funding for such services, and providing effective and
5 applicability date provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 2648SC 83
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PAG LIN
1 1 Section 1. Section 331.424A, subsection 4, Code 2009, is
1 2 amended to read as follows:
1 3 4. For the fiscal year beginning July 1, 1996, and for
1 4 each subsequent fiscal year, the county shall certify a levy
1 5 for payment of services. For each fiscal year, county
1 6 revenues from taxes imposed by the county credited to the
1 7 services fund shall not exceed an amount equal to the amount
1 8 of base year expenditures for services as defined in section
1 9 331.438, less the amount of property tax relief anticipated to
1 10 be received pursuant to section 426B.2, in the fiscal year for
1 11 which the budget is certified. The county auditor and the
1 12 board of supervisors shall reduce the amount of the levy
1 13 certified for the services fund by the amount of property tax
1 14 relief to be received. A levy certified under this section is
1 15 not subject to the appeal provisions of section 331.426 or to
1 16 any other provision in law authorizing a county to exceed,
1 17 increase, or appeal a property tax levy limit.
1 18 Sec. 2. Section 331.424A, Code 2009, is amended by adding
1 19 the following new subsections:
1 20 NEW SUBSECTION. 4A. a. If there is an appropriation
1 21 reduction after the county budget and levy amounts for the
1 22 services fund are certified and before June 15 of the calendar
1 23 year in which the certification was made and such reduction
1 24 causes the property tax relief amount to be less than the
1 25 amount stated in the certified budget, the county may take one
1 26 or both of the following actions, provided that any action
1 27 taken does not exceed the amount of the deficiency resulting
1 28 from the appropriation reduction:
1 29 (1) Transfer moneys from other funds of the county to the
1 30 county's services fund, notwithstanding section 331.432.
1 31 (2) Recertify the county's services fund levy in
1 32 accordance with subsection 4B.
1 33 b. If there is an appropriation reduction after the county
1 34 budget and levy amounts for the services fund are certified
1 35 and such reduction causes the appropriations addressed in the
2 1 distribution formulas associated with the allowed growth
2 2 factor adjustment factor for the budget year to be less than
2 3 anticipated and the county's share of the appropriations is
2 4 less than the amounts stated in the certified budget, the
2 5 county may transfer moneys from other funds of the county to
2 6 the county's services fund. The amount transferred shall not
2 7 exceed the amount of the deficiency resulting from the
2 8 appropriations reduction.
2 9 NEW SUBSECTION. 4B. If the board of supervisors elects to
2 10 proceed under subsection 4A, paragraph "a", subparagraph (2),
2 11 the board shall amend the county's certified budget for the
2 12 services fund in accordance with all of the following:
2 13 a. The amended budget shall be certified before June 15.
2 14 b. Not less than twenty days before June 15, and not less
2 15 than ten days before the date set for the hearing under
2 16 paragraph "c", the board shall file the amended budget with
2 17 the auditor. The auditor shall make available a sufficient
2 18 number of copies of the amended budget to meet the requests of
2 19 taxpayers and organizations and have them available for
2 20 distribution at the courthouse or other places designated by
2 21 the board.
2 22 c. The board shall set a time and place for a public
2 23 hearing on the amended budget before the final certification
2 24 date and shall publish notice of the hearing not less than ten
2 25 nor more than twenty days prior to the hearing in the county
2 26 newspapers selected under chapter 349. A summary of the
2 27 proposed budget amendment, in the form prescribed by the
2 28 director of the department of management, shall be included in
2 29 the notice. Proof of publication shall be filed with and
2 30 preserved by the auditor. A levy is not valid unless and
2 31 until the notice is published and filed.
2 32 d. At the hearing, a resident or taxpayer of the county
2 33 may present to the board objections to or arguments in favor
2 34 of any part of the amendment to the budget.
2 35 e. After the hearing, the board shall adopt by resolution
3 1 the amended budget and certificate of taxes for the next
3 2 fiscal year and shall direct the auditor to properly certify
3 3 and file the budget and certificate of taxes as adopted. An
3 4 amended budget and certificate of taxes adopted for the
3 5 following fiscal year in accordance with this subsection
3 6 becomes effective on the first day of that year.
3 7 Notwithstanding sections 331.435 and 331.436, a budget
3 8 amendment adopted in accordance with this section is not
3 9 subject to protest to the state appeal board.
3 10 Sec. 3. Section 426B.5, subsection 1, paragraph d,
3 11 subparagraph (1), subparagraph division (a), Code 2009, is
3 12 amended to read as follows:
3 13 (a) The county is levying the maximum amount allowed for
3 14 the county's mental health, mental retardation, and
3 15 developmental disabilities services fund under section
3 16 331.424A for the fiscal year in which the funding is
3 17 distributed. If the county certified the maximum levy amount
3 18 allowed for the county's services fund but there is an
3 19 appropriation reduction after the levy was certified that
3 20 causes the property tax relief amount for the county to be
3 21 less than the amount stated in the certified budget, the
3 22 county shall be deemed to have complied with this subparagraph
3 23 division whether or not the county recertifies the services
3 24 fund levy or takes other action to address the reduction in
3 25 anticipated funding as authorized in section 331.424A.
3 26 Sec. 4. Section 426B.5, subsection 2, paragraph e,
3 27 subparagraph (2), Code 2009, is amended to read as follows:
3 28 (2) The county levied the maximum amount allowed for the
3 29 county's services fund under section 331.424A for the fiscal
3 30 year of application for risk pool assistance. If the county
3 31 certified the maximum levy amount allowed for the county's
3 32 services fund but there is an appropriation reduction after
3 33 the levy was certified that causes the property tax relief
3 34 amount for the county to be less than the amount stated in the
3 35 certified budget, the county shall be deemed to have complied
4 1 with this subparagraph whether or not the county recertifies
4 2 the services fund levy or takes other action to address the
4 3 reduction in anticipated funding as authorized in section
4 4 331.424A.
4 5 Sec. 5. EFFECTIVE AND APPLICABILITY DATES. This Act,
4 6 being deemed of immediate importance, takes effect upon
4 7 enactment and applies to budgets and levies certified for
4 8 county mental health, mental retardation, and developmental
4 9 disabilities services funds under section 331.424A commencing
4 10 with the budgets and levies certified for the fiscal year
4 11 beginning July 1, 2009, and subsequent fiscal years.
4 12 EXPLANATION
4 13 This bill relates to county mental health, mental
4 14 retardation, and developmental disabilities services funds,
4 15 the levy authority for such funds, and the state allowed
4 16 growth factor adjustment funding for such services.
4 17 Under current law, in Code section 331.424A, a county's
4 18 certified levy for the county's services fund is required to
4 19 be reduced by the county to reflect the amount to be received
4 20 by the county from the property tax relief fund.
4 21 If after the budget and levy are certified for the services
4 22 fund by March 15, and before June 15 when the department of
4 23 management certifies the county's taxes back, the property tax
4 24 relief appropriations are reduced, resulting in the relief
4 25 fund moneys being less than stated in the certified budget,
4 26 the bill authorizes the county to take one or both of the
4 27 following actions: recertify the services fund budget or
4 28 transfer moneys from other county funds. Any action taken
4 29 cannot exceed the amount of the deficiency caused by the
4 30 appropriation reduction. The recertification procedure is
4 31 specified in the bill.
4 32 The bill also provides a contingent authorization if the
4 33 appropriations addressed in the distribution formulas
4 34 associated with the allowed growth factor adjustment factor
4 35 are reduced from the amounts stated in the county's certified
5 1 budget. In recent fiscal years, these appropriations have
5 2 been the appropriation made for the mental health and
5 3 developmental disabilities community services fund created in
5 4 Code section 225C.7 and for the allowed growth factor
5 5 adjustment funding addressed in Code sections 331.439 and
5 6 426B.5. The allowed growth factor adjustment appropriation is
5 7 made during a fiscal year which is two fiscal years ahead of
5 8 the fiscal year to which the adjustment applies. The bill
5 9 allows a county to transfer moneys from other county funds to
5 10 the extent of the reduction in the amount associated with the
5 11 allowed growth distribution formulas that was stated in the
5 12 county's certified budget for the services fund.
5 13 The bill also amends provisions in Code section 426B.5 to
5 14 require a county to levy the maximum amount authorized for the
5 15 county services fund in order to qualify for funding from the
5 16 allowed growth funding pool or risk pool of the property tax
5 17 relief fund. The bill provides that if the county certified
5 18 the maximum levy amount allowed for the county's services fund
5 19 but there is an appropriation reduction after the levy was
5 20 certified that causes the property tax relief amount for the
5 21 county to be less than that stated in the county budget, the
5 22 county is deemed to have complied with the requirement whether
5 23 or not the county recertifies the services fund levy or takes
5 24 other action to address the reduction in anticipated funding
5 25 as authorized by the bill.
5 26 The bill takes effect upon enactment and is applicable
5 27 commencing with the services fund budget and levies certified
5 28 for fiscal year 2009=2010 and subsequent fiscal years.
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