Senate Study Bill 1285 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act relating to county funding of mental health and 1 disabilities services and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2639XC (5) 86 rh/sc

S.F. _____ Section 1. Section 331.381, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5A. Budget for and appropriate the moneys 3 necessary to meet the financial obligations of the county under 4 the regional service system management plan approved pursuant 5 to section 331.393. 6 Sec. 2. Section 331.392, subsection 4, Code 2015, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . 0a. A method for determining the revenue 9 contributions required of the participating counties. 10 Sec. 3. Section 331.393, subsection 2, unnumbered paragraph 11 1, Code 2015, is amended to read as follows: 12 Each region shall submit to the department an annual service 13 and budget plan approved by the region’s governing board 14 and subject to approval by the director of human services. 15 Provisions for the director of human services’ approval of the 16 annual service and budget plan, and any amendments to the plan, 17 and other requirements shall be specified in rule adopted by 18 the state commission. The provisions addressed in the annual 19 service plan shall include but are not limited to all of the 20 following: 21 Sec. 4. Section 331.398, subsection 1, Code 2015, is amended 22 to read as follows: 23 1. The financing of a regional mental health and disability 24 service system is limited to a fixed budget amount. The 25 fixed budget amount prepared by the regional administrator 26 and approved by the voting members of the governing board 27 identified in section 331.390, subsection 2, paragraph “a” , 28 shall be the amount identified in a regional service system 29 management plan and budget for the fiscal year. A region shall 30 receive state funding for growth in non-Medicaid expenditures 31 through the mental health and disability regional services 32 fund created in section 225C.7A to address increased service 33 costs, additional service populations, additional core service 34 domains, and increased numbers of persons receiving services. 35 -1- LSB 2639XC (5) 86 rh/sc 1/ 6

S.F. _____ Sec. 5. Section 331.424, subsection 1, paragraph a, Code 1 2015, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (10) For mental health and disabilities 3 services, an amount sufficient to pay the charges for services 4 provided under the regional service system management plan 5 approved pursuant to section 331.393. 6 Sec. 6. Section 331.424A, Code 2015, is amended to read as 7 follows: 8 331.424A County mental health and disabilities services fund. 9 1. For the purposes of this chapter and chapter 426B , unless 10 the context otherwise requires : , “county services fund” means 11 a county mental health and disabilities services fund created 12 pursuant to this section. 13 a. “Base year expenditures for mental health and disabilities 14 services” means the same as defined in section 331.438, Code 15 Supplement 2011 , minus the amount the county received from the 16 property tax relief fund pursuant to section 426B.1, Code 2011 , 17 for the fiscal year beginning July 1, 2008. 18 b. “County population expenditure target amount” means the 19 product of the statewide per capita expenditure target amount 20 multiplied by a county’s general population. 21 c. “County services fund” means a county mental health and 22 disabilities services fund created pursuant to this section . 23 d. “Per capita growth amount” means the amount by which the 24 statewide per capita expenditure target amount may grow from 25 one year to the next. 26 e. “Statewide per capita expenditure target amount” means the 27 dollar amount of a statewide expenditure target per person as 28 established by statute. 29 2. The county finance committee created in section 333A.2 30 shall consult with the department of human services and the 31 department of management in adopting rules and prescribing 32 forms for administering the county services funds. 33 3. County For the fiscal year beginning July 1, 2016, 34 and succeeding fiscal years, county revenues from taxes and 35 -2- LSB 2639XC (5) 86 rh/sc 2/ 6

S.F. _____ other sources designated by a county for mental health and 1 disabilities services shall be credited to the county mental 2 health and disabilities services fund which shall be created by 3 the county. The board shall make appropriations from the fund 4 for payment of services provided under the regional service 5 system management plan approved pursuant to section 331.393 . 6 The county may pay for the services in cooperation with other 7 counties by pooling appropriations from the county services 8 fund with appropriations from the county services fund of 9 other counties through the county’s regional administrator, 10 or through another arrangement specified in the regional 11 governance agreement entered into by the county under section 12 331.392 . 13 4. An amount shall be reserved in the county services fund 14 to address cash flow obligations in the next fiscal year. The 15 cash flow amount shall not exceed twenty-five percent of the 16 gross expenditures budgeted from the county services fund 17 for the fiscal year in progress. The cash flow amount for 18 a county’s services fund shall be specified in the regional 19 governance agreement entered into by the county under section 20 331.392 . 21 5. Receipts For the fiscal year beginning July 1, 2016, and 22 succeeding fiscal years, receipts from the state or federal 23 government for the mental health and disability services 24 administered or paid for by a county shall be credited to 25 the county services fund, including moneys distributed to 26 the county from the department of human services and moneys 27 allocated under chapter 426B . 28 6. For each fiscal year, the county shall certify a levy 29 for payment of services. For each fiscal year, county revenues 30 from taxes imposed by the county credited to the services fund 31 shall not exceed an amount equal to the amount of base year 32 expenditures for mental health and disability services. A 33 levy certified under this section is not subject to the appeal 34 provisions of section 331.426 or to any other provision in law 35 -3- LSB 2639XC (5) 86 rh/sc 3/ 6

S.F. _____ authorizing a county to exceed, increase, or appeal a property 1 tax levy limit. 2 7. By October 15 and April 15 of each fiscal year, the 3 treasurer shall credit to the county services fund an amount 4 equal to one-half of the amount budgeted as the county’s 5 obligation for payment of services under the regional service 6 system management plan approved pursuant to section 331.393. 7 Appropriations specifically authorized to be made from the 8 mental health and disabilities county services fund shall not 9 be made from any other fund of the county. 10 8. Notwithstanding subsection 6 , for the fiscal years 11 beginning July 1, 2013, July 1, 2014, and July 1, 2015, county 12 revenues from taxes levied by the county and credited to 13 the county services fund shall not exceed the lower of the 14 following amounts: 15 a. The amount of the county’s base year expenditures for 16 mental health and disabilities services. 17 b. The amount equal to the product of the statewide per 18 capita expenditure target for the fiscal year beginning July 19 1, 2013, multiplied by the county’s general population for the 20 same fiscal year. 21 Sec. 7. Section 426B.1, subsection 2, Code 2015, is amended 22 by striking the subsection. 23 Sec. 8. Section 426B.2, subsection 1, Code 2015, is amended 24 to read as follows: 25 1. The If moneys in the property tax relief fund are 26 appropriated by the general assembly, the director of human 27 services shall draw warrants on the property tax relief fund, 28 payable to the regional administrator or the county treasurer , 29 as appropriate, in the amount due to a region or a county in 30 accordance with section 426B.3 subsection 1A , and mail the 31 warrants to the regional administrators or the county auditors 32 in July and January of each year. 33 Sec. 9. Section 426B.2, Code 2015, is amended by adding the 34 following new subsection: 35 -4- LSB 2639XC (5) 86 rh/sc 4/ 6

S.F. _____ NEW SUBSECTION . 1A. The general assembly shall determine 1 the method by which the moneys will be apportioned among the 2 counties. 3 Sec. 10. REPEAL. Sections 426B.3 and 426B.5, Code 2015, 4 are repealed. 5 Sec. 11. EFFECTIVE DATE. This Act takes effect July 1, 6 2016. 7 Sec. 12. APPLICABILITY. This Act applies commencing with 8 the budget and tax levy certification process for the fiscal 9 year beginning July 1, 2016. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to county mental health and disabilities 14 services funding. 15 Under current Code sections 331.424A and 426B.3, county 16 property tax levy authority for such services is limited 17 based upon a per capita expenditure target amount for each 18 county of $47.28 of the county’s general population. This 19 current levy limitation is in effect for the mental health and 20 disability regional service system through FY 2015-2016. After 21 June 30, 2016, the levy will be limited by the current limit 22 on the county basic levy for general county services (i.e., 23 $3.50/$1,000 assessed valuation). 24 The bill eliminates the county mental health and 25 disabilities services levy limitation in Code sections 331.424A 26 and 426B.3 and amends Code section 331.424 to authorize a 27 county board of supervisors to certify a supplemental levy 28 beyond the basic levy limitation for payment of county mental 29 health and disabilities services provided according to the 30 county’s regional service system management plan, and amends 31 related Code provisions. 32 The bill also makes conforming changes to Code chapter 426B 33 (property tax relief fund —— mental health and disabilities 34 services) relating to the elimination of state equalization 35 -5- LSB 2639XC (5) 86 rh/sc 5/ 6

S.F. _____ payments from the property tax relief fund to counties with 1 base year expenditures that are less than the amount of the 2 statewide per capita expenditure. 3 The bill takes effect July 1, 2016, and applies commencing 4 with the budget and tax levy certification process for the 5 fiscal year beginning July 1, 2016. 6 -6- LSB 2639XC (5) 86 rh/sc 6/ 6