H.F. 160 Section 1. CHILDREN’S HEALTH INSURANCE PROGRAM —— CHILD 1 ENROLLMENT CONTINGENCY FUND —— MENTAL HEALTH AND DISABILITY 2 SERVICES REDESIGN TRANSITION FUND —— FY 2012-2013. 3 1. Of the moneys received from the federal government 4 through the child enrollment contingency fund established 5 pursuant to section 103 of the federal Children’s Health 6 Insurance Program Reauthorization Act of 2009, Pub. L. No. 7 111-3, the following amount is transferred from such moneys to 8 the department of human services for the fiscal year beginning 9 July 1, 2012, and ending June 30, 2013, to be credited as 10 follows: 11 To be credited to the mental health and disability services 12 redesign transition fund created in 2012 Iowa Acts, chapter 13 1120, section 23: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,628,317 15 2. The moneys credited to the mental health and disability 16 services redesign transition fund pursuant to subsection 1 are 17 appropriated to the department of human services for allocation 18 to counties as follows: 19 a. To those counties identified by the department in 20 scenario 1 of the department’s report on the transition fund 21 submitted to the general assembly on December 1, 2012, pursuant 22 to 2012 Iowa Acts, chapter 1120, section 23, to be used to 23 continue or restore services as provided in the application and 24 the department’s determination of the award amount: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,628,317 26 b. The allocations under this subsection shall be remitted 27 to counties not later than two calendar weeks following the 28 effective date of this Act. 29 c. A county receiving an allocation under this subsection 30 shall remit to the department any unpaid portion of the 31 county’s obligation for the nonfederal share of undisputed 32 medical assistance program billings incurred in a fiscal year 33 prior to FY 2012-2013. The unpaid portion shall be remitted 34 prior to June 30, 2013, from moneys available to the county 35 -1- LSB 2079HV (1) 85 jp/tm 1/ 4

H.F. 160 that meet federal match requirements for the program. 1 d. A county receiving an allocation under this subsection 2 shall comply with any audit requirements for the county’s 3 expenditures relating to the allocation. The department shall 4 develop the audit requirements with assistance from the office 5 of the auditor of state. The audit requirements may be applied 6 on a selective or random basis so that the audit requirements 7 do not apply to all counties receiving an allocation. Any 8 costs relating to the audit requirements are the responsibility 9 of the department. 10 3. A county that applied for moneys from the transition 11 fund pursuant to 2012 Iowa Acts, chapter 1120, section 23, but 12 was not identified in the department’s recommendation for an 13 award in the report on the transition fund shall enter into 14 an agreement with the department for remittance of any unpaid 15 portion of the county’s obligation for the nonfederal share 16 of undisputed medical assistance program billings incurred in 17 a fiscal year prior to FY 2012-2013. A county that did not 18 apply for moneys from the transition fund shall either remit 19 any unpaid portion of the county’s obligation for such program 20 billings by the end of the fiscal year beginning July 1, 2012, 21 or shall enter into an agreement to do so. An agreement under 22 this subsection shall provide for remittance of any unpaid 23 portion by the end of the fiscal year beginning July 1, 2013. 24 4. For purposes of an application for county formation of 25 a mental health and disability services region submitted on 26 or before April 1, 2013, in accordance with section 331.389, 27 subsection 4, the director of human services may approve an 28 application for a region that includes a county that is not 29 contiguous with any of the other counties in the region, 30 as otherwise required under section 331.389, subsection 3, 31 paragraph “a” , if the county that is not contiguous has had a 32 formal relationship for two years or longer with one or more of 33 the other counties in the region for provision of mental health 34 and disability services. 35 -2- LSB 2079HV (1) 85 jp/tm 2/ 4

H.F. 160 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 1 immediate importance, takes effect upon enactment. 2 EXPLANATION 3 This bill relates to mental health and disability services 4 (MH/DS) by making transfers and appropriations for FY 2012-2013 5 and other related changes. 6 The transfers and appropriations are made for purposes of 7 the MH/DS redesign legislation enacted in 2012 (2012 Iowa Acts, 8 chapter 1120 (SF 2315) and chapter 1123 (SF 2336)). 9 A transfer of approximately $11.6 million is made from 10 federal child enrollment contingency fund moneys to the 11 department of human services (DHS) to be credited to the 12 temporary transition fund created in the redesign legislation. 13 The moneys are then appropriated from the transition fund to 14 DHS for allocation to counties that applied for assistance from 15 the fund and were identified in the DHS transition fund report, 16 scenario 1. 17 A county receiving an allocation from the fund is required 18 to remit to DHS any unpaid portion of the county’s obligation 19 for the nonfederal share of undisputed medical assistance 20 (Medicaid) program billings incurred in a fiscal year prior to 21 FY 2012-2013. Remittance of the unpaid portion is required 22 prior to June 30, 2013, from moneys available to the county 23 that meet federal match requirements for the program. 24 A county receiving an allocation is required to comply with 25 any audit requirements for the county’s expenditures relating 26 to the allocation. DHS is directed to develop the audit 27 requirements with assistance from the office of the auditor of 28 state which may be applied on a selective or random basis so 29 that the requirements do not apply to all counties receiving 30 an allocation. Any costs relating to the audit requirements 31 are the responsibility of DHS. 32 A county that applied for moneys from the transition fund 33 but was not identified in the DHS report recommendation for 34 an award is required to enter into an agreement with DHS for 35 -3- LSB 2079HV (1) 85 jp/tm 3/ 4

H.F. 160 remittance of any unpaid portion of the county’s obligation for 1 the nonfederal share of undisputed medical assistance program 2 billings incurred in a prior fiscal year. A county that did 3 not apply for moneys from the transition fund is required to 4 remit any unpaid portion of the county’s obligation for such 5 program billings by the end of FY 2012-2013 or enter into 6 an agreement to do so. Any such agreement must provide for 7 remittance of any unpaid portion by the end of FY 2013-2014. 8 The criteria for approval of county applications to 9 voluntarily form MH/DS regions which must be submitted by 10 April 1, 2013, are addressed. The DHS director may authorize 11 an exemption from the requirement that the counties must be 12 contiguous. The county that is not contiguous must have had a 13 formal relationship for two years or longer with one or more of 14 the other counties in the region. 15 The bill takes effect upon enactment. 16 -4- LSB 2079HV (1) 85 jp/tm 4/ 4