Senate File 619 - Introduced SENATE FILE 619 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1276) A BILL FOR An Act relating to state and local revenue and finance by 1 modifying future tax contingencies, the state inheritance 2 tax, mental health and disability services funding, school 3 district funding, commercial and industrial property tax 4 replacement payments, providing for housing incentives, 5 providing for other properly related matters, making 6 appropriations, and including effective date, applicability, 7 and retroactive applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 2832SV (1) 89 jm/jh
S.F. 619 DIVISION I 1 FUTURE TAX CONTINGENCIES 2 Section 1. 2018 Iowa Acts, chapter 1161, section 133, is 3 amended by striking the section and inserting in lieu thereof 4 the following: 5 SEC. 133. EFFECTIVE DATE. This division of this Act takes 6 effect January 1, 2023. 7 DIVISION II 8 CHILD DEPENDENT AND DEVELOPMENT TAX CREDITS 9 Sec. 2. Section 422.12C, subsection 1, paragraphs f and g, 10 Code 2021, are amended to read as follows: 11 f. For a taxpayer with net income of forty thousand dollars 12 or more but less than forty-five ninety thousand dollars, 13 thirty percent. 14 g. For a taxpayer with net income of forty-five ninety 15 thousand dollars or more, zero percent. 16 Sec. 3. Section 422.12C, subsection 2, paragraph a, Code 17 2021, is amended to read as follows: 18 a. The taxes imposed under this subchapter , less the amounts 19 of nonrefundable credits allowed under this subchapter , may 20 be reduced by an early childhood development tax credit equal 21 to twenty-five percent of the first one thousand dollars 22 which the taxpayer has paid to others for each dependent, as 23 defined in the Internal Revenue Code, ages three through five 24 for early childhood development expenses. In determining the 25 amount of early childhood development expenses for the tax year 26 beginning in the 2006 calendar year only, such expenses paid 27 during November and December of the previous tax year shall 28 be considered paid in the tax year for which the tax credit 29 is claimed. This credit is available to a taxpayer whose net 30 income is less than forty-five ninety thousand dollars. If the 31 early childhood development tax credit is claimed for a tax 32 year, the taxpayer and the taxpayer’s spouse shall not claim 33 the child and dependent care credit under subsection 1 . 34 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 35 -1- LSB 2832SV (1) 89 jm/jh 1/ 103
S.F. 619 Act applies retroactively to tax years beginning on or after 1 January 1, 2021. 2 DIVISION III 3 COVID-19 RELATED GRANTS —— TAXATION 4 Sec. 5. Section 422.7, subsection 62, Code 2021, is amended 5 to read as follows: 6 62. a. Subtract, to the extent included, the amount of 7 any financial assistance qualifying COVID-19 grant provided to 8 an eligible small issued to an individual or business by the 9 economic development authority under the Iowa small business 10 relief grant program created during calendar year 2020 to 11 provide financial assistance to eligible small businesses 12 economically impacted by the COVID-19 pandemic , the Iowa 13 finance authority, or the department of agriculture and land 14 stewardship . 15 b. For purposes of this subsection, “qualifying COVID-19 16 grant” includes any grant that was issued between March 17, 17 2020, and December 31, 2021, identified by the department 18 by rule under a grant program created to primarily provide 19 COVID-19 related financial assistance to economically 20 impacted individuals and businesses located in this state, 21 and administered by the economic development authority, Iowa 22 finance authority, or the department of agriculture and land 23 stewardship. 24 c. The economic development authority, Iowa finance 25 authority, or the department of agriculture and land 26 stewardship shall notify the department of any COVID-19 grant 27 program that may qualify under this subsection in the manner 28 and form prescribed by the department. 29 d. This subsection is repealed January 1, 2024, and does not 30 apply to tax years beginning on or after that date. 31 Sec. 6. Section 422.35, subsection 30, Code 2021, is amended 32 to read as follows: 33 30. a. Subtract, to the extent included, the amount of 34 any financial assistance qualifying COVID-19 grant provided 35 -2- LSB 2832SV (1) 89 jm/jh 2/ 103
S.F. 619 to an eligible small issued to a business by the economic 1 development authority under the Iowa small business relief 2 grant program created during calendar year 2020 to provide 3 financial assistance to eligible small businesses economically 4 impacted by the COVID-19 pandemic , the Iowa finance authority, 5 or the department of agriculture and land stewardship . 6 b. For purposes of this subsection, “qualifying COVID-19 7 grant” means the same as defined in section 422.7, subsection 8 62, paragraph “b” . 9 c. The economic development authority, Iowa finance 10 authority, or the department of agriculture and land 11 stewardship shall notify the department of any COVID-19 grant 12 program that may qualify under this subsection in the manner 13 and form prescribed by the department. 14 d. This subsection is repealed January 1, 2024, and does not 15 apply to tax years beginning on or after that date. 16 Sec. 7. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 Sec. 8. RETROACTIVE APPLICABILITY. This division of this 19 Act applies retroactively to March 17, 2020, for tax years 20 ending on or after that date. 21 DIVISION IV 22 FEDERAL PAYCHECK PROTECTION PROGRAM 23 Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM. 24 Notwithstanding any other provision of the law to the contrary, 25 for any tax year ending after March 27, 2020, Division N, Tit. 26 II, subtit. B, §276 and §278(a), of the federal Consolidated 27 Appropriations Act, 2021, Pub. L. No. 116-260, applies in 28 computing net income for state tax purposes under section 422.7 29 or 422.35. 30 Sec. 10. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 DIVISION V 33 INSTALLMENT SALES —— CAPITAL GAINS 34 Sec. 11. 2018 Iowa Acts, chapter 1161, section 134, is 35 -3- LSB 2832SV (1) 89 jm/jh 3/ 103
S.F. 619 amended to read as follows: 1 SEC. 134. APPLICABILITY. 2 1. This division of this Act applies to tax years beginning 3 on or after the effective date of this division of this Act. 4 2. The section of this division of this Act amending section 5 422.7, subsection 21, as amended by 2019 Iowa Acts, chapter 6 162, applies to sales consummated on or after the effective 7 date of this division of this Act, and sales consummated prior 8 to the effective date of this division of this Act shall be 9 governed by law as it existed prior to the effective date of 10 this division of this Act. 11 DIVISION VI 12 STATE INHERITANCE TAX 13 PART I 14 EXEMPTIONS AND RATES 15 Sec. 12. Section 450.4, subsection 1, Code 2021, is amended 16 to read as follows: 17 1. When the entire estate of the decedent does not exceed 18 the sum of twenty-five thousand dollars following amounts after 19 deducting the liabilities, as defined in this chapter : 20 a. For decedents dying on or after January 1, 2021, but 21 before January 1, 2022, three hundred thousand dollars . 22 b. For decedents dying on or after January 1, 2022, but 23 before January 1, 2023, six hundred thousand dollars. 24 c. For decedents dying on or after January 1, 2023, but 25 before January 1, 2024, one million dollars. 26 Sec. 13. Section 450.10, Code 2021, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 7. a. In lieu of each rate of tax imposed 29 in subsections 1 through 4, for property passing from the 30 estate of a decedent dying on or after January 1, 2021, but 31 before January 1, 2022, there shall be imposed a rate of tax 32 equal to the applicable tax rate in subsections 1 through 4, 33 reduced by twenty-five percent, and rounded to the nearest 34 one-hundredth of one percent. 35 -4- LSB 2832SV (1) 89 jm/jh 4/ 103
S.F. 619 b. In lieu of each rate of tax imposed in subsections 1 1 through 4, for property passing from the estate of a decedent 2 dying on or after January 1, 2022, but before January 1, 2023, 3 there shall be imposed a rate of tax equal to the applicable 4 tax rate in subsections 1 through 4, reduced by fifty percent, 5 and rounded to the nearest one-hundredth of one percent. 6 c. In lieu of each rate of tax imposed in subsections 1 7 through 4, for property passing from the estate of a decedent 8 dying on or after January 1, 2023, but before January 1, 2024, 9 there shall be imposed a rate of tax equal to the applicable 10 tax rate in subsections 1 through 4, reduced by seventy-five 11 percent, and rounded to the nearest one-hundredth of one 12 percent. 13 PART II 14 REPEAL OF STATE INHERITANCE TAX 15 Sec. 14. NEW SECTION . 450.98 Tax repealed. 16 This chapter shall not apply, effective January 1, 2024, 17 to property of estates of decedents dying on or after January 18 1, 2024. The inheritance tax shall not be imposed under this 19 chapter if a decedent dies on or after January 1, 2024, and to 20 this extent this chapter is repealed. 21 Sec. 15. NEW SECTION . 450.99 Future repeal. 22 This chapter is repealed effective January 1, 2034. 23 Sec. 16. NEW SECTION . 450B.8 Tax repealed. 24 This chapter shall not apply, effective January 1, 2024, 25 to property of estates of decedents dying on or after January 26 1, 2024. The inheritance tax shall not be imposed under this 27 chapter if a decedent dies on or after January 1, 2024, and to 28 this extent this chapter is repealed. 29 Sec. 17. NEW SECTION . 450B.9 Future repeal. 30 This chapter is repealed effective January 1, 2034. 31 Sec. 18. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 Sec. 19. RETROACTIVE APPLICABILITY. This division of this 34 Act applies retroactively to January 1, 2021, for tax years 35 -5- LSB 2832SV (1) 89 jm/jh 5/ 103
S.F. 619 beginning on or after that date, and for decedents dying on or 1 after that date. 2 Sec. 20. CODE EDITOR DIRECTIVE. The Code editor is directed 3 to correct internal references and other appropriate references 4 in the Code, and in any enacted Iowa Acts as necessary, to 5 chapters 450 and 450B, and to the inheritance tax and qualified 6 use inheritance tax, effective January 1, 2034. 7 DIVISION VII 8 HOUSING TRUST FUND 9 Sec. 21. Section 428A.8, subsection 3, Code 2021, is amended 10 to read as follows: 11 3. Notwithstanding subsection 2 , the amount of money that 12 shall be transferred pursuant to this section to the housing 13 trust fund in any one fiscal year shall not exceed three seven 14 million dollars. Any money that otherwise would be transferred 15 pursuant to this section to the housing trust fund in excess 16 of that amount shall be deposited in the general fund of the 17 state. 18 DIVISION VIII 19 HIGH QUALITY JOBS PROGRAM —— DAY CARE CENTERS 20 Sec. 22. Section 15.327, Code 2021, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 016. “Licensed center” means the same as 23 defined in section 237A.1. 24 Sec. 23. Section 15.329, Code 2021, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 3A. In addition to the factors in 27 subsection 3, in determining the eligibility of a business to 28 participate in the program the authority may consider whether a 29 proposed project will provide a licensed center for use by the 30 business’s employees. 31 DIVISION IX 32 INVESTMENT TAX CREDITS AND INNOVATION FUND TAX CREDITS 33 Sec. 24. Section 15.119, subsection 2, paragraph d, Code 34 2021, is amended to read as follows: 35 -6- LSB 2832SV (1) 89 jm/jh 6/ 103
S.F. 619 d. (1) The tax credits for investments in qualifying 1 businesses issued pursuant to section 15E.43 and for equity 2 investments in an innovation fund pursuant to section 15E.52 . 3 In allocating tax credits pursuant to this subsection , the 4 authority shall allocate two an aggregate of ten million 5 dollars for purposes of this paragraph subparagraph , unless the 6 authority determines that the tax credits awarded will be less 7 than that amount. 8 (2) On or before June 30 of each fiscal year the authority 9 shall determine the amount of tax credits to be allocated 10 for the next fiscal year beginning July 1 to investments 11 in qualifying businesses and to equity investments in an 12 innovation fund under subparagraph (1). Any tax credits 13 allocated for purposes of subparagraph (1) and not awarded 14 in that fiscal year shall be reallocated to a purpose under 15 subparagraph (1) for the next fiscal year and shall not be 16 counted against the aggregate maximum of ten million dollars. 17 Sec. 25. Section 15.119, subsection 2, paragraph e, Code 18 2021, is amended by striking the paragraph. 19 Sec. 26. Section 15E.43, subsection 2, paragraphs b and c, 20 Code 2021, are amended to read as follows: 21 b. The maximum amount of a tax credit that may be issued 22 per calendar fiscal year to a natural person and the person’s 23 spouse or dependent shall not exceed one hundred thousand 24 dollars combined. For purposes of this paragraph, a tax 25 credit issued to a partnership, limited liability company, S 26 corporation, estate, or trust electing to have income taxed 27 directly to the individual shall be deemed to be issued to 28 the individual owners based upon the pro rata share of the 29 individual’s earnings from the entity. For purposes of this 30 paragraph, “dependent” has the same meaning as provided by the 31 Internal Revenue Code. 32 c. The maximum amount of tax credits that may be issued 33 per calendar fiscal year for equity investments in any one 34 qualifying business shall not exceed five hundred thousand 35 -7- LSB 2832SV (1) 89 jm/jh 7/ 103
S.F. 619 dollars. 1 Sec. 27. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 Sec. 28. APPLICABILITY. The following applies to tax 4 credits allocated on or after the fiscal year beginning July 1, 5 2021, and for each fiscal year thereafter: 6 The section of this division of this Act amending section 7 15.119, subsection 2, paragraph “d”. 8 DIVISION X 9 TELEHEALTH —— MENTAL HEALTH PARITY 10 Sec. 29. Section 514C.34, subsection 1, Code 2021, is 11 amended by adding the following new paragraphs: 12 NEW PARAGRAPH . 0a. “Covered person” means the same as 13 defined in section 514J.102. 14 NEW PARAGRAPH . 00a. “Facility” means the same as defined in 15 section 514J.102. 16 NEW PARAGRAPH . 0c. “Health carrier” means the same as 17 defined in section 514J.102. 18 Sec. 30. Section 514C.34, subsection 1, paragraph c, Code 19 2021, is amended to read as follows: 20 c. “Telehealth” means the delivery of health care services 21 through the use of real-time interactive audio and video , or 22 other real-time interactive electronic media, regardless of 23 where the health care professional and the covered person are 24 each located . “Telehealth” does not include the delivery of 25 health care services delivered solely through an audio-only 26 telephone, electronic mail message, or facsimile transmission. 27 Sec. 31. Section 514C.34, Code 2021, is amended by adding 28 the following new subsection: 29 NEW SUBSECTION . 3A. a. A health carrier shall reimburse 30 a health care professional and a facility for health care 31 services provided by telehealth to a covered person for a 32 mental health condition, illness, injury, or disease on the 33 same basis and at the same rate as the health carrier would 34 apply to the same health care services for a mental health 35 -8- LSB 2832SV (1) 89 jm/jh 8/ 103
S.F. 619 condition, illness, injury, or disease provided in person to a 1 covered person by the health care professional or the facility. 2 b. As a condition of reimbursement pursuant to paragraph 3 “a” , a health carrier shall not require that an additional 4 health care professional be located in the same room as a 5 covered person while health care services for a mental health 6 condition, illness, injury, or disease are provided via 7 telehealth by another health care professional to the covered 8 person. 9 Sec. 32. EFFECTIVE DATE. This division of this Act, being 10 deemed of immediate importance, takes effect upon enactment. 11 Sec. 33. RETROACTIVE APPLICABILITY. This division of 12 this Act applies to health care services for a mental health 13 condition, illness, injury, or disease provided by a health 14 care professional or a facility to a covered person by 15 telehealth on or after January 1, 2021. 16 DIVISION XI 17 HIGH QUALITY JOBS AND RENEWABLE CHEMICAL PRODUCTION TAX CREDITS 18 Sec. 34. Section 15.119, subsection 2, paragraph a, 19 subparagraphs (2) and (3), Code 2021, are amended to read as 20 follows: 21 (2) In allocating tax credits pursuant to this subsection 22 for each fiscal year of the fiscal period beginning July 1, 23 2016, and ending June 30, 2021 the fiscal year beginning July 24 1, 2021, and for each fiscal year thereafter , the authority 25 shall not allocate more than one hundred five seventy million 26 dollars for purposes of this paragraph. This subparagraph (2) 27 is repealed July 1, 2021. 28 (3) (a) In allocating tax credits pursuant to this 29 subsection for the fiscal year beginning July 1, 2021, and 30 ending June 30, 2022, the authority shall not allocate more 31 than one hundred five million dollars for purposes of this 32 paragraph if the aggregate amount of renewable chemical 33 production tax credits under section 15.319 that were awarded 34 on or after July 1, 2018, but before July 1, 2021, equals or 35 -9- LSB 2832SV (1) 89 jm/jh 9/ 103
S.F. 619 exceeds twenty-seven million dollars. 1 (b) As soon as practicable after June 30, 2021, the 2 authority shall notify the general assembly of the aggregate 3 amount of renewable chemical production tax credits awarded 4 under section 15.319 on or after July 1, 2018, but before 5 July 1, 2021, and whether or not the tax credit allocation 6 limitation described in subparagraph division (a) is 7 applicable. 8 (c) This subparagraph (3) is repealed July 1, 2022. 9 Sec. 35. Section 15.119, subsection 2, paragraph h, Code 10 2021, is amended to read as follows: 11 h. The renewable chemical production tax credit program 12 administered pursuant to sections 15.315 through 15.322 . In 13 allocating tax credits pursuant to this subsection for the 14 fiscal year beginning July 1, 2021, and for each fiscal year 15 thereafter , the authority shall not allocate more than ten five 16 million dollars for purposes of this paragraph. This paragraph 17 is repealed July 1, 2030. 18 Sec. 36. EFFECTIVE DATE. This division of this Act, being 19 deemed of immediate importance, takes effect upon enactment. 20 DIVISION XII 21 HIGH QUALITY JOBS —— ELIGIBILITY REQUIREMENTS 22 Sec. 37. HIGH QUALITY JOBS —— REDUCTIONS IN OPERATIONS. 23 1. Notwithstanding section 15.329, subsection 1, paragraph 24 “b”, subparagraph (2), the economic development authority shall 25 not presume that a reduction in operations is a reduction in 26 operations while simultaneously applying for assistance with 27 regard to a business that submits an application on or before 28 June 30, 2022, if the business demonstrates to the satisfaction 29 of the authority all of the following: 30 a. That the reduction in operations occurred after March 1, 31 2020. 32 b. That the reduction in operations was caused by the 33 COVID-19 pandemic. 34 2. The economic development authority shall consider 35 -10- LSB 2832SV (1) 89 jm/jh 10/ 103
S.F. 619 whether the benefit of the project proposed by a business 1 under subsection 1 outweighs any negative impact related to 2 the business’s reduction in operations. The business shall 3 remain subject to all other eligibility requirements pursuant 4 to section 15.329. 5 3. This section is repealed July 1, 2022. 6 DIVISION XIII 7 MANUFACTURING 4.0 8 Sec. 38. NEW SECTION . 15.371 Manufacturing 4.0 technology 9 investment program. 10 1. This section shall be known as and may be cited as the 11 “Manufacturing 4.0 Technology Investment Program” . 12 2. For purposes of this section unless the context otherwise 13 requires: 14 a. “Financial assistance” means the same as defined in 15 section 15.102. 16 b. “Manufacturing 4.0 technology investments” means projects 17 that are intended to lead to the adoption of, and integration 18 of, smart technologies into existing manufacturing operations 19 located in the state by mitigating the risk to the manufacturer 20 of significant technology investments. Projects may include 21 investments in specialized hardware, software, or other 22 equipment intended to assist a manufacturer in increasing the 23 manufacturer’s productivity, efficiency, and competitiveness. 24 3. a. A manufacturing 4.0 technology investment fund 25 is created within the state treasury under the control of 26 the authority for the purpose of financing manufacturing 4.0 27 technology investments as described in this section. 28 b. The fund may be administered as a revolving fund and 29 may consist of any moneys appropriated by the general assembly 30 for purposes of this section and any other moneys that are 31 lawfully available to the authority. Any moneys appropriated 32 to the fund shall be used for purposes of the manufacturing 33 4.0 technology investment program. The authority may use all 34 other moneys in the fund, including interest, earnings, and 35 -11- LSB 2832SV (1) 89 jm/jh 11/ 103
S.F. 619 recaptures, for purposes of this section. 1 c. Notwithstanding section 8.33, moneys appropriated in this 2 section that remain unencumbered or unobligated at the close of 3 the fiscal year shall not revert but shall remain available for 4 expenditure for the purposes designated until the close of the 5 succeeding fiscal year. 6 d. Notwithstanding any law to the contrary, the authority 7 may transfer any unobligated and unencumbered moneys in the 8 fund, except for moneys appropriated for purposes of this 9 section, to any fund created pursuant to section 15.106A, 10 subsection 1, paragraph “o” . 11 4. The authority shall establish and administer a 12 manufacturing 4.0 technology investment program and shall use 13 moneys in the fund to award financial assistance to eligible 14 manufacturers for manufacturing 4.0 technology investments. 15 5. To be eligible for a financial assistance award under the 16 manufacturing 4.0 technology investment program, a manufacturer 17 must do all of the following: 18 a. Manufacture goods at a facility located in this state. 19 b. Have a North American industry classification system 20 number within the manufacturing sector range of 31-33. 21 c. Have been an established business for a minimum of three 22 years prior to the date of application to the program. 23 d. Derive a minimum of fifty-one percent of the 24 manufacturer’s gross revenue from the sale of manufactured 25 goods. 26 e. Employ a minimum of three full-time employees and no 27 more than seventy-five full-time employees across all of the 28 manufacturer’s locations. 29 f. Have an assessment of the manufacturer’s proposed 30 manufacturing 4.0 technology investment completed by the center 31 for industrial research and service at Iowa state university of 32 science and technology. 33 g. Demonstrate the ability to provide matching financial 34 support for the manufacturer’s manufacturing 4.0 technology 35 -12- LSB 2832SV (1) 89 jm/jh 12/ 103
S.F. 619 investment on a one-to-one basis. The matching financial 1 support must be obtained from private sources. 2 6. Eligible manufacturers shall submit applications to the 3 manufacturing 4.0 technology investment program in the manner 4 prescribed by the authority by rule. 5 7. a. The authority may accept applications during one 6 or more application periods each fiscal year as determined by 7 the authority. All completed applications shall be reviewed 8 and scored on a competitive basis pursuant to rules adopted by 9 the authority. The authority may engage an outside technical 10 review panel to complete technical reviews of applications. 11 The board shall review the recommendations of the authority 12 and of the technical review panel, if applicable, and shall 13 approve, defer, or deny each application. 14 b. In making recommendations to the board, the authority and 15 the technical review panel, if applicable, shall consider all 16 of the following: 17 (1) The completeness of the manufacturer’s application. 18 (2) Whether the board should approve or deny an application. 19 (3) If the board approves an application, the type and 20 amount of financial assistance that should to be awarded to the 21 applicant. 22 (4) The percentage of the manufacturer’s gross revenue 23 that is derived from the sale of manufactured goods pursuant 24 to subsection 5, paragraph “d” . 25 (5) Whether the manufacturer’s proposed manufacturing 26 4.0 technology investment is consistent with the assessment 27 completed by the center for industrial research and service at 28 Iowa state university of science and technology pursuant to 29 subsection 5, paragraph “f” . 30 c. The board shall not approve an application for financial 31 assistance for a manufacturing 4.0 technology investment that 32 was made prior to the date of the application. 33 8. From moneys appropriated to the manufacturing 4.0 34 technology investment fund from the general fund of the state 35 -13- LSB 2832SV (1) 89 jm/jh 13/ 103
S.F. 619 and any other state moneys lawfully available to the authority 1 for the manufacturing 4.0 technology investment program, the 2 maximum amount of financial assistance awarded from such moneys 3 to an eligible manufacturer shall not exceed seventy-five 4 thousand dollars. 5 9. The authority shall adopt rules pursuant to chapter 17A 6 necessary to implement and administer this section. 7 DIVISION XIV 8 ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM 9 Sec. 39. Section 476.10A, subsection 2, Code 2021, is 10 amended to read as follows: 11 2. Notwithstanding section 8.33 , any unexpended moneys 12 remitted to the treasurer of state under this section shall be 13 retained for the purposes designated. Notwithstanding section 14 12C.7, subsection 2 , interest or earnings on investments or 15 time deposits of the moneys remitted under this section shall 16 be retained and used for the purposes designated, pursuant to 17 section 476.46 . 18 Sec. 40. Section 476.46, subsection 2, paragraph e, 19 subparagraph (3), Code 2021, is amended to read as follows: 20 (3) Interest on the fund shall be deposited in the fund. 21 A portion of the interest on the fund, not to exceed fifty 22 percent of the total interest accrued, shall be used for 23 promotion and administration of the fund. 24 Sec. 41. Section 476.46, Code 2021, is amended by adding the 25 following new subsections: 26 NEW SUBSECTION . 3. The Iowa energy center shall not 27 initiate any new loans under this section after June 30, 2021. 28 NEW SUBSECTION . 4. Loan payments received under this 29 section on or after July 1, 2021, and any other moneys in the 30 fund on or after July 1, 2021, shall be deposited in the energy 31 infrastructure revolving loan fund created in section 476.46A. 32 Sec. 42. NEW SECTION . 476.46A Energy infrastructure 33 revolving loan program. 34 1. a. An energy infrastructure revolving loan fund is 35 -14- LSB 2832SV (1) 89 jm/jh 14/ 103
S.F. 619 created in the office of the treasurer of state and shall be 1 administered by the Iowa energy center established in section 2 15.120. 3 b. The fund may be administered as a revolving fund and may 4 consist of any moneys appropriated by the general assembly for 5 purposes of this section and any other moneys that are lawfully 6 directed to the fund. 7 c. Moneys in the fund shall be used to provide financial 8 assistance for the development and construction of energy 9 infrastructure, including projects that support electric or gas 10 generation transmission, storage, or distribution; electric 11 grid modernization; energy-sector workforce development; 12 emergency preparedness for rural and underserved areas; the 13 expansion of biomass, biogas, and renewable natural gas; 14 innovative technologies; and the development of infrastructure 15 for alternative fuel vehicles. 16 d. Notwithstanding section 8.33, moneys appropriated in this 17 section that remain unencumbered or unobligated at the close of 18 the fiscal year shall not revert but shall remain available for 19 expenditure for the purposes designated until the close of the 20 succeeding fiscal year. 21 e. Notwithstanding section 12C.7, subsection 2, interest or 22 earnings on moneys in the fund shall be credited to the fund. 23 2. a. The Iowa energy center shall establish and administer 24 an energy infrastructure revolving loan program to encourage 25 the development of energy infrastructure within the state. 26 b. An individual, business, rural electric cooperative, or 27 municipal utility located and operating in this state shall be 28 eligible for financial assistance under the program. With the 29 approval of the Iowa energy center governing board established 30 under section 15.120, subsection 2, the economic development 31 authority shall determine the amount and the terms of all 32 financial assistance awarded to an individual, business, rural 33 electric cooperative, or municipal utility under the program. 34 All agreements and administrative authority sha11 be vested in 35 -15- LSB 2832SV (1) 89 jm/jh 15/ 103
S.F. 619 the Iowa energy center governing board. 1 c. The economic development authority may use not more than 2 five percent of the moneys in the fund at the beginning of each 3 fiscal year for purposes of administrative costs, marketing, 4 technical assistance, and other program support. 5 3. For the purposes of this section: 6 a. “Energy infrastructure” means land, buildings, physical 7 plant and equipment, and services directly related to the 8 development of projects used for, or useful for, electricity or 9 gas generation, transmission, storage, or distribution. 10 b. “Financial assistance” means the same as defined in 11 section 15.102. 12 Sec. 43. ALTERNATE ENERGY REVOLVING LOAN FUND —— MONEYS 13 TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated 14 moneys remaining after June 30, 2021, in the alternate energy 15 revolving loan fund created pursuant to section 476.46, are 16 transferred and appropriated to the energy infrastructure 17 revolving loan fund created pursuant to section 476.46A, to be 18 used for purposes of the energy infrastructure revolving loan 19 program. 20 DIVISION XV 21 WORKFORCE HOUSING TAX INCENTIVES 22 Sec. 44. Section 15.119, subsection 2, paragraph g, Code 23 2021, is amended to read as follows: 24 g. (1) The workforce housing tax incentives program 25 administered pursuant to sections 15.351 through 15.356 . 26 In allocating tax credits pursuant to this subsection , the 27 authority shall not allocate more than twenty-five thirty 28 million dollars for purposes of this paragraph. Of the moneys 29 allocated under this paragraph, ten fifteen million dollars 30 shall be reserved for allocation to qualified housing projects 31 in small cities, as defined in section 15.352 , that are 32 registered on or after July 1, 2017. 33 (2) (a) Notwithstanding subparagraph (1), in allocating 34 tax credits pursuant to this subsection for the fiscal year 35 -16- LSB 2832SV (1) 89 jm/jh 16/ 103
S.F. 619 beginning July 1, 2021, and ending June 30, 2022, the authority 1 shall not allocate more than forty million dollars for the 2 purposes of this paragraph. Of the moneys allocated under 3 this paragraph for the fiscal year beginning July 1, 2021, and 4 ending June 30, 2022, twelve million dollars shall be reserved 5 for allocation to qualified housing projects in small cities, 6 as defined in section 15.352, that are registered on or after 7 July 1, 2017. 8 (b) Notwithstanding subparagraph (1), in allocating 9 tax credits pursuant to this subsection for the fiscal year 10 beginning July 1, 2022, and ending June 30, 2023, the authority 11 shall not allocate more than thirty-five million dollars for 12 the purposes of this paragraph. Of the moneys allocated under 13 this paragraph for the fiscal year beginning July 1, 2022, 14 and ending June 30, 2023, fifteen million dollars shall be 15 reserved for allocation to qualified housing projects in small 16 cities, as defined in section 15.352, that are registered on or 17 after July 1, 2017, and five million dollars shall be reserved 18 for qualified housing projects in areas of the state with 19 the largest wait list or greatest need as determined by the 20 authority. 21 (c) This subparagraph is repealed July 1, 2023. 22 Sec. 45. Section 15.354, subsection 3, paragraph d, Code 23 2021, is amended to read as follows: 24 d. Upon completion of a housing project, an a housing 25 business shall submit all of the following to the authority: 26 (1) An examination of the project in accordance with the 27 American institute of certified public accountants’ statements 28 on standards for attestation engagements, completed by a 29 certified public accountant authorized to practice in this 30 state , shall be submitted to the authority . 31 (2) A statement of the final amount of qualifying new 32 investment for the housing project. 33 (3) Any information the authority deems necessary to ensure 34 compliance with the agreement signed by the housing business 35 -17- LSB 2832SV (1) 89 jm/jh 17/ 103
S.F. 619 pursuant to paragraph “a” , the requirements of this part, 1 and rules the authority and the department of revenue adopt 2 pursuant to section 15.356. 3 Sec. 46. Section 15.354, subsection 3, paragraph e, 4 subparagraph (1), Code 2021, is amended to read as follows: 5 (1) Upon review of the examination , and verification of 6 the amount of the qualifying new investment, and review of 7 any other information submitted pursuant to paragraph “d” , 8 subparagraph (3), the authority may notify the housing business 9 of the amount that the housing business may claim as a refund 10 of the sales and use tax under section 15.355, subsection 2 , 11 and may issue a tax credit certificate to the housing business 12 stating the amount of workforce housing investment tax credits 13 under section 15.355 , subsection 3 , the eligible housing 14 business may claim. The sum of the amount that the housing 15 business may claim as a refund of the sales and use tax and 16 the amount of the tax credit certificate shall not exceed the 17 amount of the tax incentive award. 18 Sec. 47. Section 15.354, subsection 6, paragraphs b and c, 19 Code 2021, are amended to read as follows: 20 b. Notwithstanding subsection 1 , the authority may accept 21 applications for disaster recovery housing projects on a 22 continuous basis establish a disaster recovery application 23 period following the declaration of a major disaster by the 24 president of the United States for a county in Iowa . 25 c. Notwithstanding subsection 2 , paragraphs “a” , “b” , and 26 “d” , upon Upon review of a housing business’s application , 27 and scoring of all applications received during a disaster 28 recovery application period, the authority may make a tax 29 incentive award to a disaster recovery housing project. The 30 tax incentive award shall represent the maximum amount of tax 31 incentives that the disaster recovery housing project may 32 qualify for under the program. In determining a tax incentive 33 award, the authority shall not use an amount of project costs 34 that exceeds the amount included in the application of the 35 -18- LSB 2832SV (1) 89 jm/jh 18/ 103
S.F. 619 housing business. Tax incentive awards shall be approved by 1 the director of the authority. 2 Sec. 48. Section 15.355, subsection 2, Code 2021, is amended 3 to read as follows: 4 2. A housing business may claim a refund of the sales and 5 use taxes paid under chapter 423 that are directly related to 6 a housing project and specified in the agreement. The refund 7 available pursuant to this subsection shall be as provided in 8 section 15.331A , excluding subsection 2 , paragraph “c” , of 9 that section. For purposes of the program, the term “project 10 completion” , as used in section 15.331A , shall mean the date 11 on which the authority notifies the department of revenue that 12 all applicable requirements of an the agreement entered into 13 pursuant to section 15.354 , subsection 3, paragraph “a” , and 14 all applicable requirements of this part, including the rules 15 the authority and the department of revenue adopted pursuant to 16 section 15.356, are satisfied. 17 DIVISION XVI 18 BROWNFIELDS AND GRAYFIELDS 19 Sec. 49. Section 15.119, subsection 3, Code 2021, is amended 20 to read as follows: 21 3. In allocating the amount of tax credits authorized 22 pursuant to subsection 1 among the programs specified in 23 subsection 2 , the authority shall not allocate more than ten 24 fifteen million dollars for purposes of subsection 2 , paragraph 25 “f” . 26 Sec. 50. Section 15.293A, subsection 8, Code 2021, is 27 amended to read as follows: 28 8. This section is repealed on June 30, 2021 2031 . 29 Sec. 51. Section 15.293B, Code 2021, is amended by adding 30 the following new subsection: 31 NEW SUBSECTION . 5A. a. Tax credits revoked under 32 subsection 3 including tax credits revoked up to five years 33 prior to the effective date of this division of this Act, and 34 tax credits not awarded under subsection 4 or 5, may be awarded 35 -19- LSB 2832SV (1) 89 jm/jh 19/ 103
S.F. 619 in the next annual application period established in subsection 1 1, paragraph “c” . 2 b. Tax credits awarded pursuant to paragraph “a” shall not 3 be counted against the limit under section 15.119, subsection 4 3. 5 Sec. 52. Section 15.293B, subsection 7, Code 2021, is 6 amended to read as follows: 7 7. This section is repealed on June 30, 2021 2031 . 8 Sec. 53. EFFECTIVE DATE. The following, being deemed of 9 immediate importance, take effect upon enactment: 10 1. The section of this division of this Act amending section 11 15.293A, subsection 8. 12 2. The section of this division of this Act amending section 13 15.293B, subsection 7. 14 DIVISION XVII 15 DOWNTOWN LOAN GUARANTEE PROGRAM 16 Sec. 54. NEW SECTION . 15.431 Downtown loan guarantee 17 program. 18 1. The economic development authority, in partnership with 19 the Iowa finance authority, shall establish and administer a 20 downtown loan guarantee program to encourage Iowa downtown 21 businesses and banks to reinvest and reopen following the 22 COVID-19 pandemic. 23 2. In order for a loan to be guaranteed, all of the 24 following conditions must be true: 25 a. The loan finances an eligible downtown resource center 26 community catalyst building remediation grant project or main 27 street Iowa challenge grant within a designated district. 28 b. The loan finances a rehabilitation project, or finances 29 acquisition or refinancing costs associated with the project. 30 c. At least twenty-five percent of the project costs are 31 used for construction on the project or renovation. 32 d. The project includes a housing component. 33 e. The loan is used for construction of the project, 34 permanent financing of the project, or both. 35 -20- LSB 2832SV (1) 89 jm/jh 20/ 103
S.F. 619 f. A federally insured financial lending institution issued 1 the loan. 2 g. The loan does not reimburse the borrower for working 3 capital, operations, or similar expenses. 4 h. The project meets downtown resource center and main 5 street Iowa design review. 6 3. a. For a loan amount less than or equal to five hundred 7 thousand dollars, the economic development authority may 8 guarantee up to fifty percent of the loan amount. 9 b. For a loan amount greater than five hundred thousand 10 dollars, the economic development authority may provide a 11 maximum loan guarantee of up to two hundred fifty thousand 12 dollars. 13 4. A project loan must be secured by a mortgage against the 14 project property. 15 5. The economic development authority may guarantee loans 16 for up to five years. The economic development authority 17 may extend the loan guarantee for an additional five years 18 if an underwriting review finds that an extension would be 19 beneficial. 20 6. The lender shall pay an annual loan guarantee fee as set 21 forth by rule. 22 7. The economic development authority reserves the right 23 to deny a loan guarantee for unreasonable bank loan fees or 24 interest rate. 25 8. The loan must not be insured or guaranteed by another 26 local, state, or federal guarantee program. 27 9. The loan guarantee is not transferable if the loan or the 28 project is sold or transferred. 29 10. In the event of a loss due to default, the loan 30 guarantee proportionally pays the guarantee percentage of the 31 loss to the lender. 32 11. Moneys for the program may consist of any moneys 33 appropriated by the general assembly for purposes of this 34 section, and any other moneys that are lawfully available 35 -21- LSB 2832SV (1) 89 jm/jh 21/ 103
S.F. 619 to the economic development authority, including moneys 1 transferred or deposited from other funds created pursuant to 2 section 15.106A, subsection 1, paragraph “o” . 3 DIVISION XVIII 4 DISASTER RECOVERY HOUSING ASSISTANCE 5 Sec. 55. NEW SECTION . 16.57A Transfer of unobligated or 6 unencumbered funds —— report. 7 1. Notwithstanding any other provision of law to the 8 contrary, the authority may transfer any unobligated and 9 unencumbered moneys in any revolving loan program fund created 10 pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit 11 in the disaster recovery housing assistance fund created in 12 section 16.57B. 13 2. Notwithstanding section 8.39, and any other law to 14 the contrary, with the prior written consent and approval of 15 the governor, the executive director of the authority may 16 transfer any unobligated and unencumbered moneys in any fund 17 created pursuant to section 16.5, subsection 1, paragraph 18 “s” , for deposit in the disaster recovery housing assistance 19 fund created in section 16.57B. The prior written consent and 20 approval of the director of the department of management shall 21 not be required to transfer the unobligated and unencumbered 22 moneys. 23 3. Notwithstanding section 8.39, and any other law to the 24 contrary, with the prior written approval of the governor, the 25 director of the economic development authority may transfer 26 any unobligated and unencumbered moneys in any fund created 27 pursuant to section 15.106A, subsection 1, paragraph “o” , 28 for deposit in the disaster recovery housing assistance fund 29 created in section 16.57B. 30 4. Any transfer made under this section shall be reported in 31 the same manner as provided in section 8.39, subsection 5. 32 Sec. 56. NEW SECTION . 16.57B Disaster recovery housing 33 assistance program —— fund. 34 1. Definitions. As used in this section, unless the context 35 -22- LSB 2832SV (1) 89 jm/jh 22/ 103
S.F. 619 otherwise requires: 1 a. Disaster-affected home” means a primary residence that 2 is destroyed or damaged due to a natural disaster that occurs 3 on or after the effective date of this division of this Act, 4 and the primary residence is located in a county that is the 5 subject of a state of disaster emergency proclamation by the 6 governor that authorizes disaster recovery housing assistance. 7 b. “Fund” means the disaster recovery housing assistance 8 fund. 9 c. “Local program administrator” means any of the following: 10 (1) The cities of Ames, Cedar Falls, Cedar Rapids, Council 11 Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo, 12 and West Des Moines. 13 (2) A council of governments whose territory includes at 14 least one county that is the subject of a state of disaster 15 emergency proclamation by the governor that authorizes disaster 16 recovery housing assistance or the eviction prevention program 17 under section 16.57C on or after the effective date of this 18 division of this Act. 19 (3) A community action agency as defined in section 216A.91 20 and whose territory includes at least one county that is the 21 subject of a state of disaster emergency proclamation by the 22 governor that authorizes disaster recovery housing assistance 23 or the eviction prevention program under section 16.57C on or 24 after the effective date of this division of this Act. 25 (4) A qualified local organization or governmental entity 26 as determined by rules adopted by the authority. 27 d. “Program” means the disaster recovery housing assistance 28 program. 29 e. “Replacement housing” means housing purchased 30 by a homeowner or leased by a renter needed to replace 31 a disaster-affected home that is destroyed or damaged 32 beyond reasonable repair as determined by a local program 33 administrator. 34 f. “State of disaster emergency” means the same as described 35 -23- LSB 2832SV (1) 89 jm/jh 23/ 103
S.F. 619 in section 29C.6, subsection 1. 1 2. Fund. 2 a. (1) A disaster recovery housing assistance fund is 3 created within the authority. The moneys in the fund shall be 4 used by the authority for the development and operation of a 5 forgivable loan and grant program for homeowners and renters 6 with disaster-affected homes, and for the eviction prevention 7 program pursuant to section 16.57C. 8 (2) Notwithstanding section 12C.7, subsection 2, interest 9 or earnings on moneys deposited in the fund shall be credited 10 to the fund. Notwithstanding section 8.33, moneys credited to 11 the fund shall not revert at the close of a fiscal year. 12 b. Moneys transferred by the authority for deposit in the 13 fund, moneys appropriated to the fund, and any other moneys 14 available to and obtained or accepted by the authority for 15 placement in the fund shall be deposited in the fund. 16 c. The authority shall not use more than five percent of 17 the moneys in the fund on July 1 of a fiscal year for purposes 18 of administrative costs and other program support during the 19 fiscal year. 20 3. Program. 21 a. The authority shall establish and administer a disaster 22 recovery housing assistance program and shall use moneys in 23 the fund to award forgivable loans to eligible homeowners and 24 grants to eligible renters of disaster-affected homes. Moneys 25 in the fund may be expended following a state of disaster 26 emergency proclamation by the governor pursuant to section 27 29C.6 that authorizes disaster recovery housing assistance. 28 b. The authority may enter into an agreement with one or 29 more local program administrators to administer the program. 30 4. Registration required. To be considered for a forgivable 31 loan or grant under the program, a homeowner or renter must 32 register for the disaster case management program established 33 pursuant to section 29C.20B. The disaster case manager may 34 refer the homeowner or renter to the appropriate local program 35 -24- LSB 2832SV (1) 89 jm/jh 24/ 103
S.F. 619 administrator. 1 5. Homeowners. 2 a. To be eligible for a forgivable loan under the program, 3 all of the following requirements shall apply: 4 (1) The homeowner’s disaster-affected home must have 5 sustained damage greater than the damage that is covered by the 6 homeowner’s property and casualty insurance policy insuring the 7 home plus any other state or federal disaster-related financial 8 assistance that the homeowner is eligible to receive. 9 (2) A local official must either deem the disaster-affected 10 home suitable for rehabilitation or damaged beyond reasonable 11 repair. 12 (3) The disaster-affected home is not eligible for buyout by 13 the county or city where the disaster-affected home is located, 14 or the disaster-affected home is eligible for a buyout by the 15 county or city where the disaster-affected home is located, but 16 the homeowner is requesting a forgivable loan for the repair 17 or rehabilitation of the homeowner’s disaster-affected home in 18 lieu of a buyout. 19 (4) Assistance under the program must not duplicate 20 benefits provided by any local, state, or federal disaster 21 recovery assistance program. 22 b. If a homeowner is referred to the authority or to a 23 local program administrator by the disaster case manager of the 24 homeowner, the authority may award a forgivable loan to the 25 eligible homeowner for any of the following purposes: 26 (1) Repair or rehabilitation of the disaster-affected home. 27 (2) (a) Down payment assistance on the purchase of 28 replacement housing, and the cost of reasonable repairs to be 29 performed on the replacement housing to render the replacement 30 housing decent, safe, sanitary, and in good repair. 31 (b) Replacement housing shall not be located in a 32 one-hundred-year floodplain. 33 (c) For purposes of this subparagraph, “decent, safe, 34 sanitary, and in good repair” means the same as described in 24 35 -25- LSB 2832SV (1) 89 jm/jh 25/ 103
S.F. 619 C.F.R. §5.703. 1 c. The authority shall determine the interest rate for the 2 forgivable loan. 3 d. If a homeowner who has been awarded a forgivable loan 4 sells a disaster-affected home or replacement housing for which 5 the homeowner received the forgivable loan prior to the end 6 of the loan term, the remaining principal on the forgivable 7 loan shall be due and payable pursuant to rules adopted by the 8 authority. 9 6. Renters. 10 a. To be eligible for a grant under the program, all of the 11 following requirements shall apply: 12 (1) A local program administrator either deems 13 the disaster-affected home of the renter suitable for 14 rehabilitation but unsuitable for current short-term 15 habitation, or the disaster-affected home is damaged beyond 16 reasonable repair. 17 (2) Assistance under the program must not duplicate 18 benefits provided by any local, state, or federal disaster 19 recovery assistance program. 20 b. If a renter is referred to the authority or to a local 21 program administrator by the disaster case manager of the 22 renter, the authority may award a grant to the eligible renter 23 to provide short-term financial assistance for the payment of 24 rent for replacement housing. 25 7. Report. On or before January 31 of each year, the 26 authority shall submit a report to the general assembly 27 that identifies all of the following for the calendar year 28 immediately preceding the year of the report: 29 a. The date of each state of disaster emergency proclamation 30 by the governor that authorized disaster recovery housing 31 assistance under this section. 32 b. The total number of forgivable loans and grants awarded. 33 c. The total number of forgivable loans, and the amount of 34 each loan awarded for repair or rehabilitation. 35 -26- LSB 2832SV (1) 89 jm/jh 26/ 103
S.F. 619 d. The total number of forgivable loans, and the amount of 1 each loan, awarded for down payment assistance on the purchase 2 of replacement housing and the cost of reasonable repairs to be 3 performed on the replacement housing to render the replacement 4 housing decent, safe, sanitary, and in good repair. 5 e. The total number of grants, and the amount of each grant, 6 awarded for rental assistance. 7 f. The total number of forgivable loans and grants awarded 8 in each county in which at least one homeowner or renter has 9 been awarded a forgivable loan or grant. 10 g. Each local program administrator involved in the 11 administration of the program. 12 h. The total amount of forgivable loan principal repaid. 13 Sec. 57. NEW SECTION . 16.57C Eviction prevention program. 14 1. a. “Eligible renter” means a renter whose income meets 15 the qualifications of the program, who is at risk of eviction, 16 and who resides in a county that is the subject of a state of 17 disaster emergency proclamation by the governor that authorizes 18 the eviction prevention program. 19 b. “Eviction prevention partner” means a qualified local 20 organization or governmental entity as determined by rule by 21 the authority. 22 2. The authority shall establish and administer an eviction 23 prevention program. Under the eviction prevention program, 24 the authority shall award grants to eligible renters and to 25 eviction prevention partners for purposes of this section. 26 Grants may be awarded upon a state of disaster emergency 27 proclamation by the governor that authorizes the eviction 28 prevention program. Eviction prevention assistance shall be 29 paid out of the fund established in section 16.57B. 30 3. a. Grants awarded to eligible renters pursuant to this 31 section shall be used for short-term financial rent assistance 32 to keep eligible renters in the current residences of such 33 renters. 34 b. Grants awarded to eviction prevention partners pursuant 35 -27- LSB 2832SV (1) 89 jm/jh 27/ 103
S.F. 619 to this section shall be used to pay for rent or services 1 provided to eligible renters for the purpose of preventing the 2 eviction of eligible renters. 3 4. The authority may enter into an agreement with one or 4 more local program administrators to administer the program. 5 Sec. 58. NEW SECTION . 16.57D Rules. 6 The authority shall adopt rules pursuant to chapter 17A to 7 implement and administer this part, including rules to do all 8 of the following: 9 1. Establish the maximum forgivable loan and grant amounts 10 awarded under the program. 11 2. Establish the terms of any forgivable loan provided under 12 the program. 13 3. Income qualifications of eligible renters in the 14 eviction prevention program. 15 Sec. 59. CODE EDITOR DIRECTIVE. The Code editor shall 16 designate sections 16.57A through 16.57D, as enacted by 17 this division of this Act, as a new part within chapter 16, 18 subchapter VIII, and may redesignate the new and preexisting 19 parts, replace references to sections 16.57A through 16.57D 20 with references to the new part, and correct internal 21 references as necessary, including references in subchapter or 22 part headnotes. 23 Sec. 60. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. 25 DIVISION XIX 26 BONUS DEPRECIATION 27 Sec. 61. Section 422.7, subsection 39A, Code 2021, is 28 amended by striking the subsection. 29 Sec. 62. Section 422.35, subsection 19A, Code 2021, is 30 amended by striking the subsection. 31 Sec. 63. RETROACTIVE APPLICABILITY. This division of this 32 Act applies retroactively to January 1, 2021, for tax years 33 beginning on or after that date, and for qualified property 34 placed in service on or after that date. 35 -28- LSB 2832SV (1) 89 jm/jh 28/ 103
S.F. 619 DIVISION XX 1 BEGINNING FARMER TAX CREDIT 2 Sec. 64. Section 16.58, subsections 1, 2, and 3, Code 2021, 3 are amended to read as follows: 4 1. “Agricultural assets” means agricultural land, 5 agricultural improvements, depreciable agricultural property, 6 crops, or livestock. 7 2. “Agricultural improvements” improvement” means any 8 improvements, including buildings, structures, or fixtures 9 suitable for use in farming which are , if located on any size 10 parcel of agricultural land. 11 3. “Agricultural land” means land suitable for use in 12 farming , any portion of which may include an agricultural 13 improvement . 14 Sec. 65. Section 16.77, subsection 2, Code 2021, is amended 15 to read as follows: 16 2. “Agricultural lease agreement” or “agreement” means an 17 agreement for the transfer of agricultural assets , that must at 18 least include a lease of agricultural land, from an eligible 19 taxpayer to a qualified beginning farmer as provided in section 20 16.79A . 21 Sec. 66. Section 16.79A, subsection 1, Code 2021, is amended 22 to read as follows: 23 1. a. A beginning farmer tax credit is allowed only for 24 agricultural assets that are subject to an agricultural lease 25 agreement entered into by an eligible taxpayer and a qualifying 26 beginning farmer participating in the beginning farmer tax 27 credit program established pursuant to section 16.78 . 28 b. The tax credit is allowed regardless of whether the 29 principle agricultural asset is soil, pasture, or a building or 30 other structure used in farming. 31 Sec. 67. Section 16.79A, subsection 2, Code 2021, is amended 32 to read as follows: 33 2. The agreement must include the lease of agricultural 34 land located in this state , including any or agricultural 35 -29- LSB 2832SV (1) 89 jm/jh 29/ 103
S.F. 619 improvements located in this state , and may provide for the 1 rental of agricultural equipment as defined in section 322F.1 . 2 Sec. 68. Section 16.79A, subsection 3, paragraph c, Code 3 2021, is amended to read as follows: 4 c. The agreement must be for at least two years, but not 5 more than five years. The agreement may be renewed any number 6 of times by the eligible taxpayer and qualified beginning 7 farmer for a term of at least two years, but not more than five 8 years. However, an eligible taxpayer shall not participate in 9 the program for more than fifteen years. 10 Sec. 69. Section 16.81, subsection 4, Code 2021, is amended 11 by striking the subsection. 12 Sec. 70. Section 16.81, subsection 6, Code 2021, is amended 13 to read as follows: 14 6. The authority shall approve all beginning farmer tax 15 credit applications that meet the requirements of this subpart 16 and make tax credit awards on a first-come, first-served basis, 17 subject to the limitations in section 16.82A . An eligible 18 taxpayer may apply and be approved to enter into agreements 19 with different qualified beginning farmers. 20 Sec. 71. Section 16.82, subsection 5, Code 2021, is amended 21 to read as follows: 22 5. The amount of tax credits that may be awarded to an 23 eligible taxpayer for any one year under all agreements an 24 agreement shall not exceed fifty thousand dollars. 25 Sec. 72. BEGINNING FARMER TAX CREDIT PROGRAM —— FORMER 26 PERIOD OF PARTICIPATION EXTENDED. An eligible taxpayer first 27 participating in the beginning farmer tax credit program on or 28 after January 1, 2019, as provided in 2019 Iowa Acts, chapter 29 161, for a tax year beginning on or after that date, may 30 participate in the program for not more than fifteen years in 31 the same manner as provided in section 16.79A, as amended by 32 this division of this Act. 33 Sec. 73. EFFECTIVE DATE. This division of this Act takes 34 effect January 1, 2022. 35 -30- LSB 2832SV (1) 89 jm/jh 30/ 103
S.F. 619 DIVISION XXI 1 MENTAL HEALTH FUNDING 2 Sec. 74. Section 123.38, subsection 2, paragraph b, Code 3 2021, is amended to read as follows: 4 b. For purposes of this subsection , any portion of license 5 or permit fees used for the purposes authorized in section 6 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 7 (2), and in section 331.424A , shall not be deemed received 8 either by the division or by a local authority. 9 Sec. 75. Section 218.99, Code 2021, is amended to read as 10 follows: 11 218.99 Counties to be notified of patients’ personal 12 accounts. 13 The administrator in control of a state institution shall 14 direct the business manager of each institution under the 15 administrator’s jurisdiction which is mentioned in section 16 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 17 (2), and for which services are paid under section 331.424A 18 by the county of residence or a mental health and disability 19 services region , to quarterly inform the county of residence 20 of any patient or resident who has an amount in excess of two 21 hundred dollars on account in the patients’ personal deposit 22 fund and the amount on deposit. The administrators shall 23 direct the business manager to further notify the county of 24 residence at least fifteen days before the release of funds in 25 excess of two hundred dollars or upon the death of the patient 26 or resident. If the patient or resident has no residency in 27 this state or the person’s residency is unknown, notice shall 28 be made to the director of human services and the administrator 29 in control of the institution involved. 30 Sec. 76. Section 225.24, Code 2021, is amended to read as 31 follows: 32 225.24 Collection of preliminary expense. 33 Unless a committed private patient or those legally 34 responsible for the patient’s support offer to settle the 35 -31- LSB 2832SV (1) 89 jm/jh 31/ 103
S.F. 619 amount of the claims, the regional administrator for the 1 person’s county of residence shall collect, by action if 2 necessary, the amount of all claims for per diem and expenses 3 that have been approved by the regional administrator for the 4 county and paid by the regional administrator as provided under 5 section 225.21 . Any amount collected shall be credited to the 6 county mental health and disabilities disability services fund 7 region combined account created in accordance with section 8 331.424A 331.391 . 9 Sec. 77. Section 225C.4, subsection 1, paragraph i, Code 10 2021, is amended to read as follows: 11 i. Administer and distribute state appropriations in 12 connection with the mental health and disability services 13 regional services service fund established by section 225C.7A . 14 Sec. 78. Section 225C.7A, Code 2021, is amended by striking 15 the section and inserting in lieu thereof the following: 16 225C.7A Mental health and disability services regional 17 service fund —— region incentive fund. 18 1. A mental health and disability services regional service 19 fund is created in the office of the treasurer of state under 20 the authority of the department. The fund shall be separate 21 from the general fund of the state and the balance in the fund 22 shall not be considered part of the balance of the general 23 fund of the state. Moneys in the fund include appropriations 24 made to the fund and other moneys deposited into the fund. 25 Moneys in the fund shall be used solely for purposes of making 26 regional service payments and incentive payments under this 27 section. 28 2. a. For each fiscal year beginning on or after July 1, 29 2021, there is appropriated from the general fund of the state 30 to the mental health and disability services regional service 31 fund an amount necessary to make all regional service payments 32 under this section for that fiscal year. 33 b. The department shall distribute the moneys appropriated 34 from the mental health and disability services regional 35 -32- LSB 2832SV (1) 89 jm/jh 32/ 103
S.F. 619 service fund to mental health and disability services regions 1 for funding of services in accordance with performance-based 2 contracts with the regions and in the manner provided in this 3 section. If the allocation methodology includes a population 4 factor, the definition of “population” in section 331.388 shall 5 be applied. 6 3. For each fiscal year beginning on or after July 1, 2021, 7 the moneys available in a fiscal year in the mental health and 8 disability services regional service fund, except for moneys in 9 the region incentive fund under subsection 8, are appropriated 10 to the department and shall be distributed to each region on 11 a per capita basis calculated under subsection 4 using each 12 region’s population, as defined in section 331.388, for that 13 fiscal year. 14 4. The amount of each region’s regional service payment 15 shall be determined as follows: 16 a. For the fiscal year beginning July 1, 2021, an amount 17 equal to the product of fifteen dollars and eighty-six cents 18 multiplied by the sum of the region’s population for the fiscal 19 year. 20 b. For the fiscal year beginning July 1, 2022, an amount 21 equal to the product of thirty-eight dollars multiplied by the 22 sum of the region’s population for the fiscal year. 23 c. For the fiscal year beginning July 1, 2023, an amount 24 equal to the product of forty dollars multiplied by the sum of 25 the region’s population for the fiscal year. 26 d. For the fiscal year beginning July 1, 2024, an amount 27 equal to the product of forty-two dollars multiplied by the sum 28 of the region’s population for the fiscal year. 29 e. (1) For the fiscal year beginning July 1, 2025, and each 30 succeeding fiscal year, an amount equal to the product of the 31 sum of the region’s population for the fiscal year multiplied 32 by the sum of the dollar amount used to calculate the regional 33 service payments under this subsection for the immediately 34 preceding fiscal year plus the regional service growth factor 35 -33- LSB 2832SV (1) 89 jm/jh 33/ 103
S.F. 619 for the fiscal year. 1 (2) For purposes of this paragraph, “regional service growth 2 factor” for a fiscal year is an amount equal to the product 3 of the dollar amount used to calculate the regional service 4 payments under this subsection for the immediately preceding 5 fiscal year multiplied by the percent increase, if any, in the 6 amount of sales tax revenue deposited into the general fund of 7 the state under section 423.2A, subsection 1, paragraph “a” , 8 less the transfers required under section 423.2A, subsection 9 2, between the fiscal year beginning three years prior to 10 the applicable fiscal year and the fiscal year beginning two 11 years prior to the applicable year, but not to exceed one and 12 one-half percent. 13 5. Regional service payments received by a region 14 shall be deposited in the region’s combined account under 15 section 331.391 and used solely for providing mental health 16 and disability services under the regional service system 17 management plan. 18 6. Regional service payments from the mental health 19 and disability services regional service fund shall be 20 paid in quarterly installments to the appropriate regional 21 administrator in July, October, January, and April of each 22 fiscal year. 23 7. a. For the fiscal year beginning July 1, 2021, each 24 mental health and disability services region for which the 25 amount certified during the fiscal year under section 331.391, 26 subsection 4, paragraph “b” , exceeds forty percent of the actual 27 expenditures of the region for the fiscal year preceding the 28 fiscal year in progress, the remaining quarterly payments of 29 the region’s regional service payment shall be reduced by 30 an amount equal to the amount by which the region’s amount 31 certified under section 331.391, subsection 4, paragraph “b” , 32 exceeds forty percent of the actual expenditures of the region 33 for the fiscal year preceding the fiscal year in progress, but 34 the amount of the reduction shall not exceed the total amount 35 -34- LSB 2832SV (1) 89 jm/jh 34/ 103
S.F. 619 of the region’s regional service payment for the fiscal year. 1 If the region’s remaining quarterly payments are insufficient 2 to effectuate the required reductions under this paragraph, the 3 region is required to pay to the department of human services 4 any amount for which the reduction in quarterly payments could 5 not be made. The amount of reductions to quarterly payments 6 and amounts paid to the department under this paragraph shall 7 be transferred and credited to the region incentive fund under 8 subsection 8. 9 b. For the fiscal year beginning July 1, 2022, each mental 10 health and disability services region for which the amount 11 certified during the fiscal year under section 331.391, 12 subsection 4, paragraph “b” , exceeds twenty percent of the 13 actual expenditures of the region for the fiscal year preceding 14 the fiscal year in progress, the remaining quarterly payments 15 of the region’s regional service payment shall be reduced by 16 an amount equal to the amount by which the region’s amount 17 certified under section 331.391, subsection 4, paragraph “b” , 18 exceeds twenty percent of the actual expenditures of the region 19 for the fiscal year preceding the fiscal year in progress, but 20 the amount of the reduction shall not exceed the total amount 21 of the region’s regional service payment for the fiscal year. 22 If the region’s remaining quarterly payments are insufficient 23 to effectuate the required reductions under this paragraph, the 24 region is required to pay to the department of human services 25 any amount for which the reduction in quarterly payments could 26 not be made. The amount of reductions to quarterly payments 27 and amounts paid to the department under this paragraph shall 28 be transferred and credited to the region incentive fund under 29 subsection 8. 30 c. For the fiscal year beginning July 1, 2023, and each 31 succeeding fiscal year, each mental health and disability 32 services region for which the amount certified during the 33 fiscal year under section 331.391, subsection 4, paragraph “b” , 34 exceeds five percent of the actual expenditures of the region 35 -35- LSB 2832SV (1) 89 jm/jh 35/ 103
S.F. 619 for the fiscal year preceding the fiscal year in progress, the 1 remaining quarterly payments of the region’s regional service 2 payment shall be reduced by an amount equal to the amount by 3 which the region’s amount certified under section 331.391, 4 subsection 4, paragraph “b” , exceeds five percent of the actual 5 expenditures of the region for the fiscal year preceding the 6 fiscal year in progress, but the amount of the reduction 7 shall not exceed the total amount of the region’s regional 8 service payment for the fiscal year. If the region’s remaining 9 quarterly payments are insufficient to effectuate the required 10 reductions under this paragraph, the region is required to 11 pay to the department of human services any amount for which 12 the reduction in quarterly payments could not be made. The 13 amount of reductions to quarterly payments and amounts paid to 14 the department under this paragraph shall be transferred and 15 credited to the region incentive fund under subsection 8. 16 8. a. A region incentive fund is created in the mental 17 health and disability services regional service fund under 18 subsection 1. The incentive fund shall consist of the 19 moneys appropriated or credited to the incentive fund by 20 law, including amounts credited to the incentive fund under 21 subsection 7. For fiscal years beginning on or after July 1, 22 2021, there is appropriated from the general fund of the state 23 to the incentive fund the following amounts to be used for the 24 purposes of this subsection: 25 (1) For the fiscal year beginning July 1, 2021, nine million 26 nine hundred sixty thousand five hundred ninety dollars. 27 (2) For the fiscal year beginning July 1, 2022, five million 28 one hundred seven thousand three hundred forty dollars. 29 (3) (a) For each fiscal year beginning on or after July 30 1, 2025, an amount equal to the incentive fund growth factor 31 multiplied by the ending balance of the incentive fund at 32 the conclusion of the fiscal year ending June 30 immediately 33 preceding the application deadline under paragraph “b” for the 34 fiscal year for which the appropriation is made. 35 -36- LSB 2832SV (1) 89 jm/jh 36/ 103
S.F. 619 (b) For purposes of this subparagraph, the “incentive fund 1 growth factor” for each fiscal year is the percent increase, 2 if any, in the amount of sales tax revenue deposited into the 3 general fund of the state under section 423.2A, subsection 4 1, paragraph “a” , less the transfers required under section 5 423.2A, subsection 2, between the fiscal year beginning three 6 years prior to the applicable fiscal year and the fiscal year 7 beginning two years prior to the applicable year, minus one and 8 one-half percent, and the incentive fund growth factor for any 9 fiscal year shall not exceed three and one-half percent. 10 b. To receive funding from the incentive fund, a regional 11 administrator must submit to the department sufficient data 12 to demonstrate that the region has met the standards outlined 13 in the region’s performance-based contract. The purpose of 14 the incentive fund shall be to provide appropriate financial 15 incentives for outcomes met from services provided by the 16 regional administrator’s mental health and disability services 17 region. The department shall make its final decisions on or 18 before December 15 regarding acceptance or rejection of the 19 submissions for incentive funds applications for assistance and 20 the total amount accepted shall be considered obligated. 21 c. In addition to incentive submission requirements under 22 paragraphs “d” , “f” , and “g” , basic eligibility for incentive 23 funds requires that a mental health and disability services 24 region meet all of the following conditions: 25 (1) The mental health and disability services region is in 26 compliance with the regional service system management plan 27 requirements of section 331.393. 28 (2) (a) In the fiscal year that commenced two years prior 29 to the fiscal year of application for incentive funds, the 30 ending balance, under generally accepted accounting principles, 31 of the mental health and disability services region’s combined 32 services funds was equal to or less than the ending balance 33 threshold under subparagraph division (b) for the fiscal year 34 for which assistance is requested. 35 -37- LSB 2832SV (1) 89 jm/jh 37/ 103
S.F. 619 (b) For purposes of this subparagraph (2), “ending balance 1 threshold” means the following: 2 (i) For applications for the fiscal year beginning July 1, 3 2021, forty percent of the actual expenditures of the mental 4 health and disability services region for the fiscal year that 5 commenced two years prior to the fiscal year of application for 6 assistance. 7 (ii) For applications for the fiscal year beginning July 1, 8 2022, twenty percent of the actual expenditures of the mental 9 health and disability services region for the fiscal year that 10 commenced two years prior to the fiscal year of application for 11 assistance. 12 (iii) For applications for fiscal years beginning on or 13 after July 1, 2023, five percent of the actual expenditures 14 of the mental health and disability services region for the 15 fiscal year that commenced two years prior to the fiscal year 16 of application for assistance. 17 d. The department shall review the fiscal year-end financial 18 records for all mental health and disability services regions 19 that are granted incentive funds. If the department determines 20 a mental health and disability services region’s actual need 21 for incentive funds was less than the amount of incentive funds 22 granted to the mental health and disability services region, 23 the mental health and disability services region shall refund 24 the difference between the amount of assistance granted and 25 the actual need. The mental health and disability services 26 region shall submit the refund within thirty days of receiving 27 notice from the department. Refunds shall be credited to the 28 incentive fund. 29 e. The department shall determine application requirements 30 to ensure prudent use of the incentive fund. The department 31 may accept or reject an application for incentive funds in 32 whole or in part. The decision of the department is final. 33 f. The total amount of incentive funds approved shall be 34 limited to the amount available in the incentive fund for a 35 -38- LSB 2832SV (1) 89 jm/jh 38/ 103
S.F. 619 fiscal year. Any unobligated balance in the incentive fund at 1 the close of a fiscal year shall remain in the incentive fund 2 for distribution in the succeeding fiscal year. 3 g. Incentive funds shall only be made available to address 4 one or more of the following circumstances: 5 (1) To reimburse regions for reductions in available 6 funding for core services as the result of the reduction and 7 elimination of the levy under section 331.424A, Code 2021, if 8 the region has an operating deficit. The department shall 9 prioritize approval of incentive funds for the circumstances 10 specified in this subparagraph. 11 (2) To incentivize quality core services that meet or exceed 12 the defined outcomes in the performance-based contract. 13 (3) To support regional efforts to fund non-core services 14 that support the defined outcomes of core services in the 15 performance-based contract. 16 (4) To support non-core services to maintain an individual 17 in a community setting or that would create a risk that the 18 individuals needing services and supports would be placed in 19 more restrictive, higher-cost settings. 20 h. Subject to the amount available and obligated from 21 the incentive fund for a fiscal year, the department shall 22 annually calculate the amount of moneys due to eligible mental 23 health and disability services regions in accordance with the 24 department’s decisions and that amount is appropriated from the 25 incentive fund to the department for payment of the moneys due. 26 The department shall distribute incentive funds payable to the 27 mental health and disability services regions for the amounts 28 due on or before January 1. 29 i. On or before March 1 and September 1 of each fiscal 30 year, the department shall provide the governor’s office and 31 the general assembly with a report of the financial condition 32 of the incentive fund. The report shall include but is not 33 limited to an itemization of the funding source’s balances, 34 types and amount of revenues credited, and payees and payment 35 -39- LSB 2832SV (1) 89 jm/jh 39/ 103
S.F. 619 amounts for the expenditures made from the funding source 1 during the reporting period. 2 j. If the department has made its decisions but has 3 determined that there are otherwise qualifying requests for 4 incentive funds that are beyond the amount available in the 5 incentive fund for a fiscal year, the department shall compile 6 a list of such requests and the supporting information for 7 the requests. The list and information shall be submitted to 8 the commission, the children’s behavioral health system state 9 board, and the general assembly. 10 9. The commission shall consult with regional 11 administrators and the director in prescribing forms and 12 adopting rules to administer this section. 13 Sec. 79. Section 249N.8, subsection 1, Code 2021, is amended 14 to read as follows: 15 1. Biennially, a report of the results of a review, by 16 county and region, of mental health services previously funded 17 through taxes levied by counties pursuant to section 331.424A , 18 Code 2021, or funds administered by a mental health and 19 disability services region that are funded during the reporting 20 period under the Iowa health and wellness plan. 21 Sec. 80. Section 331.389, subsection 1, paragraph b, Code 22 2021, is amended to read as follows: 23 b. If a county has been exempted prior to July 1, 2014, from 24 the requirement to enter into a regional service system, the 25 county and the county’s board of supervisors shall fulfill all 26 requirements and be eligible as a region under this chapter and 27 chapter chapters 222, 225, 225C , 226, 227, 229, and 230 for a 28 regional service system, regional service system management 29 plan, regional governing board, and regional administrator, 30 and any other provisions applicable to a region of counties 31 providing local mental health and disability services. 32 Additionally, a county exempted under this subsection shall be 33 considered a region for purposes of chapter 426B. 34 Sec. 81. Section 331.389, subsection 5, paragraph a, 35 -40- LSB 2832SV (1) 89 jm/jh 40/ 103
S.F. 619 subparagraph (2), Code 2021, is amended to read as follows: 1 (2) Reduce the amount of the annual state funding provided 2 for the regional service system or exempted county, including 3 amounts received under section 225C.7A , not to exceed fifteen 4 percent of the amount. 5 Sec. 82. Section 331.391, subsections 1 and 3, Code 2021, 6 are amended to read as follows: 7 1. The funding under the control of the governing board 8 shall be maintained in a combined account , in separate county 9 accounts that are under the control of the governing board, or 10 pursuant to other arrangements authorized by law that limit the 11 administrative burden of such control while facilitating public 12 scrutiny of financial processes . A county exempted under 13 section 331.389, subsection 1, shall maintain a county mental 14 health and disability services fund for the deposit of funding 15 received under section 225C.7A and appropriations specifically 16 authorized to be made from the county mental health and 17 disability services fund shall not be made from any other fund 18 of the county. A county mental health and disability services 19 fund established by an exempt county, to the extent feasible, 20 shall be considered to be the same as a region combined account 21 and shall be subject to the same requirements as a region’s 22 combined account. 23 3. The funding provided pursuant to appropriations from the 24 mental health and disability services regional services service 25 fund created in section 225C.7A and from performance-based 26 contracts with the department shall be credited to the account 27 or accounts under the control of the governing board. 28 Sec. 83. Section 331.391, subsection 4, paragraphs a, b, and 29 c, Code 2021, are amended to read as follows: 30 a. If a region is meeting the financial obligations for 31 implementation of its regional service system management plan 32 for a fiscal year and residual funding is anticipated, the 33 regional administrator shall may reserve an adequate amount of 34 unobligated and unencumbered funds for cash flow of expenditure 35 -41- LSB 2832SV (1) 89 jm/jh 41/ 103
S.F. 619 obligations in the next fiscal year. 1 b. Each region shall certify to the department of management 2 human services on or before December 1, 2022 2021 , and each 3 December 1 thereafter, the amount of the region’s cash flow 4 amount in the combined account that is attributable to each 5 county within the region based upon each county’s proportionate 6 amount of funding and contributions to the region or other 7 methodology specified in the regional governance agreement 8 or certify the cash flow amount for each separate county 9 account that is under the control of the governing board at the 10 conclusion of the most recently completed fiscal year. 11 c. For fiscal years beginning on or after July 1, 2023, 12 the region’s cash flow amount , either reserved in the region’s 13 combined account or reserved among all separate county accounts 14 under the control of the governing board, shall not exceed 15 forty five percent of the gross actual expenditures from the 16 combined account or from all separate county accounts under 17 control of the governing board for the fiscal year preceding 18 the fiscal year in progress. 19 Sec. 84. Section 331.392, subsection 4, paragraph a, Code 20 2021, is amended to read as follows: 21 a. Methods for pooling, management, and expenditure of the 22 funding under the control of the regional administrator. If 23 the agreement does not provide for pooling of the participating 24 county moneys in a single fund, the agreement shall specify how 25 the participating county moneys will be subject to the control 26 of the regional administrator. 27 Sec. 85. Section 331.393, subsection 10, Code 2021, is 28 amended to read as follows: 29 10. The director’s approval of a regional plan shall not be 30 construed to constitute certification of the respective county 31 budgets or of the region’s budget. 32 Sec. 86. Section 331.394, subsection 4, Code 2021, is 33 amended to read as follows: 34 4. If a county of residence is part of a mental health and 35 -42- LSB 2832SV (1) 89 jm/jh 42/ 103
S.F. 619 disability services region that has agreed to pool funding and 1 liability for services, the The responsibilities of the county 2 under law regarding such mental health and disability services 3 shall be performed on behalf of the county by the regional 4 administrator. The county of residence or the county’s mental 5 health and disability services region , as applicable, is 6 responsible for paying the public costs of the mental health 7 and disability services that are not covered by the medical 8 assistance program under chapter 249A and are provided in 9 accordance with the region’s approved service management plan 10 to persons who are residents of the county or region. 11 Sec. 87. Section 331.398, subsection 1, Code 2021, is 12 amended to read as follows: 13 1. The financing of a regional mental health and disability 14 service system is limited to a fixed budget amount. The fixed 15 budget amount shall be the amount identified in a regional 16 service system management plan and budget for the fiscal year. 17 A region shall receive state funding for growth in non-Medicaid 18 expenditures through the mental health and disability regional 19 services fund created in section 225C.7A to address increased 20 service costs, additional service populations, additional core 21 service domains, and increased numbers of persons receiving 22 services. 23 Sec. 88. Section 331.424A, subsection 1, paragraph b, Code 24 2021, is amended by striking the paragraph. 25 Sec. 89. Section 331.424A, subsection 3, Code 2021, is 26 amended to read as follows: 27 3. a. County revenues from taxes and other sources 28 designated by a county for mental health and disabilities 29 services shall be credited to the county mental health and 30 disabilities services fund which shall be created by the 31 county. The Until the required transfer of funds under 32 paragraph “b” , the board shall make appropriations from the fund 33 for payment of services provided under the regional service 34 system management plan approved pursuant to section 331.393 . 35 -43- LSB 2832SV (1) 89 jm/jh 43/ 103
S.F. 619 The For fiscal years beginning before July 1, 2022, the county 1 may pay for the services in cooperation with other counties 2 by pooling appropriations from the county services fund with 3 appropriations from the county services fund of other counties 4 through the county’s regional administrator, or through another 5 arrangement specified in the regional governance agreement 6 entered into by the county under section 331.392 . 7 b. Notwithstanding section 331.432, subsection 3, upon 8 conclusion of the fiscal year beginning July 1, 2021, except 9 for an exempt county under section 331.391, subsection 1, 10 the county treasurer shall transfer the remaining balance of 11 the county’s county services fund created under paragraph 12 “a” , including all unobligated and unencumbered funds, to the 13 county’s region to which the county belongs in the fiscal year 14 beginning July 1, 2022, for deposit in the region’s combined 15 account under section 331.391. 16 Sec. 90. Section 331.424A, subsection 4, paragraph a, Code 17 2021, is amended to read as follows: 18 a. An amount of unobligated and unencumbered funds, as 19 specified in the regional governance agreement entered into 20 by the county under section 331.392 , shall , for fiscal years 21 beginning before July 1, 2022, be reserved in the county 22 services fund to address cash flow obligations in the next 23 fiscal year , subject to the limitations of this subsection . 24 Sec. 91. Section 331.424A, subsection 4, paragraphs c and d, 25 Code 2021, are amended by striking the paragraphs. 26 Sec. 92. Section 331.424A, subsections 5, 6, and 9, Code 27 2021, are amended to read as follows: 28 5. Receipts from the state or federal government for fiscal 29 years beginning before July 1, 2022, for the mental health 30 and disability services administered or paid for by a county 31 shall be credited to the county services fund, including moneys 32 distributed to the county from the department of human services 33 and moneys allocated under chapter 426B . 34 6. For each fiscal year beginning before July 1, 2022 , the 35 -44- LSB 2832SV (1) 89 jm/jh 44/ 103
S.F. 619 county shall certify a levy for payment of services. For each 1 such fiscal year, county revenues from taxes imposed by the 2 county credited to the county services fund shall not exceed an 3 amount equal to the county budgeted amount for the fiscal year. 4 A levy certified under this section is not subject to the 5 appeal provisions of section 331.426 or to any other provision 6 in law authorizing a county to exceed, increase, or appeal a 7 property tax levy limit. 8 9. a. For the fiscal year beginning July 1, 2017, and 9 each subsequent fiscal year beginning before July 1, 2022 , the 10 county budgeted amount determined for each county shall be the 11 amount necessary to meet the county’s financial obligations for 12 the payment of services provided under the regional service 13 system management plan approved pursuant to section 331.393 , 14 not to exceed an amount equal to the product of the regional 15 per capita expenditure target amount twenty-one dollars and 16 fourteen cents multiplied by the county’s population , and, for 17 fiscal years beginning on or after July 1, 2023, reduced by 18 the amount of the county’s cash flow reduction amount for the 19 fiscal year calculated under subsection 4 , if applicable . 20 b. If a county officially joins a different region, the 21 county’s budgeted amount for a fiscal year beginning before 22 July 1, 2022, shall be the amount necessary to meet the 23 county’s financial obligations for payment of services provided 24 under the new region’s regional service system management plan 25 approved pursuant to section 331.393 , not to exceed an amount 26 equal to the product of the new region’s regional per capita 27 expenditure target amount twenty-one dollars and fourteen cents 28 multiplied by the county’s population , and, for fiscal years 29 beginning on or after July 1, 2023, reduced by the amount of 30 the county’s cash flow reduction amount for the fiscal year 31 calculated under subsection 4 , if applicable . 32 Sec. 93. Section 331.424A, Code 2021, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 10. This section is repealed July 1, 2022. 35 -45- LSB 2832SV (1) 89 jm/jh 45/ 103
S.F. 619 Sec. 94. Section 331.432, subsection 3, Code 2021, is 1 amended to read as follows: 2 3. a. Except as authorized in section 331.477 , transfers 3 of moneys between the county services fund created pursuant 4 to section 331.424A and any other fund are prohibited. This 5 subsection paragraph does not apply to appropriations made or 6 the value of in-kind care and treatment provided pursuant to 7 section 347.7, subsection 1 , paragraph “c” , Code 2021, or to 8 transfers from a county public hospital fund under section 9 347.7 . This paragraph is repealed July 1, 2022. 10 b. Payments or transfers of moneys from any fund of the 11 county to a mental health and disability services region’s 12 combined account under section 331.391 are prohibited. This 13 paragraph applies to fiscal years beginning on or after July 14 1, 2022, but does not apply to transfers from a county public 15 hospital fund under section 347.7 for the fiscal year beginning 16 July 1, 2022, or the fiscal year beginning July 1, 2023. 17 Sec. 95. Section 347.7, subsection 1, paragraph c, Code 18 2021, is amended by striking the paragraph. 19 Sec. 96. Section 426B.1, subsection 2, Code 2021, is amended 20 to read as follows: 21 2. Moneys shall be distributed from the property tax relief 22 fund to counties for the mental health and disability regional 23 service system for mental health and disabilities services, in 24 accordance with the appropriations made to the fund and other 25 statutory requirements. 26 Sec. 97. Section 426B.2, Code 2021, is amended to read as 27 follows: 28 426B.2 Property tax relief fund payments. 29 The director of human services shall draw warrants on the 30 property tax relief fund, payable to the county treasurer 31 regional administrator in the amount due to a county mental 32 health and disability services region in accordance with 33 statutory requirements, and mail the warrants to the county 34 auditors regional administrator in July and January of each 35 -46- LSB 2832SV (1) 89 jm/jh 46/ 103
S.F. 619 year. 1 Sec. 98. Section 426B.4, Code 2021, is amended to read as 2 follows: 3 426B.4 Rules. 4 The mental health and disability services commission shall 5 consult with county representatives regional administrators 6 and the director of human services in prescribing forms and 7 adopting rules pursuant to chapter 17A to administer this 8 chapter . 9 Sec. 99. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER 10 SECTION 331.424A —— FY 2021-2022. For each county for which 11 the amount of taxes certified for levy for the purposes 12 of section 331.424A for the fiscal year beginning July 1, 13 2021, exceeds the product of the population of the county as 14 determined under section 331.424A, subsection 1, paragraph 15 “e”, multiplied by twenty-one dollars and fourteen cents, 16 the department of management shall reduce the amount of such 17 taxes certified for levy to an amount not to exceed the 18 product of the population of the county as determined under 19 section 331.424A, subsection 1, paragraph “e”, multiplied by 20 twenty-one dollars and fourteen cents and shall revise the rate 21 of taxation as necessary to raise the reduced amount. The 22 department of management shall report the reduction in the 23 certified taxes and the revised rate of taxation to the county 24 auditors by June 15, 2021. 25 Sec. 100. IMPLEMENTATION OF REGION INCENTIVE FUND UNDER 26 SECTION 225C.7A —— EMERGENCY RULEMAKING. 27 1. In order to timely implement the provisions of this 28 division of this Act establishing the region incentive fund 29 under section 225C.7A, subsection 8, for mental health and 30 disability services regions for funding the fiscal year 31 beginning July 1, 2021, and the fiscal year beginning July 32 1, 2022, the director of human services shall establish 33 alternative application deadlines and expedited application 34 review and approval timelines. 35 -47- LSB 2832SV (1) 89 jm/jh 47/ 103
S.F. 619 2. The department of human services may adopt 1 administrative rules under section 17A.4, subsection 3, and 2 section 17A.5, subsection 2, paragraph “b”, to implement 3 provisions of this division of this Act and the rules shall 4 become effective immediately upon filing or on a later 5 effective date specified in the rules, unless the effective 6 date of the rules is delayed or the applicability of the rules 7 is suspended by the administrative rules review committee. Any 8 rules adopted in accordance with this section shall not take 9 effect before the rules are reviewed by the administrative 10 rules review committee. The delay authority provided to 11 the administrative rules review committee under section 12 17A.8, subsections 9 and 10, shall be applicable to a delay 13 imposed under this section, notwithstanding a provision in 14 those subsections making them inapplicable to section 17A.5, 15 subsection 2, paragraph “b”. Any rules adopted in accordance 16 with the provisions of this section shall also be published as 17 a notice of intended action as provided in section 17A.4. 18 Sec. 101. EFFECTIVE DATE. This division of this Act, being 19 deemed of immediate importance, takes effect upon enactment. 20 DIVISION XXII 21 COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS 22 Sec. 102. Section 2.48, subsection 3, paragraph f, 23 subparagraph (6), Code 2021, is amended by striking the 24 subparagraph. 25 Sec. 103. Section 331.512, subsection 15, Code 2021, is 26 amended by striking the subsection. 27 Sec. 104. Section 331.559, subsection 27, Code 2021, is 28 amended by striking the subsection. 29 Sec. 105. Section 441.21A, subsection 1, paragraph a, Code 30 2021, is amended to read as follows: 31 a. For each fiscal year beginning on or after July 1, 2014, 32 but before July 1, 2029, there is appropriated from the general 33 fund of the state to the department of revenue an amount 34 necessary for the payment of all commercial and industrial 35 -48- LSB 2832SV (1) 89 jm/jh 48/ 103
S.F. 619 property tax replacement claims under this section for the 1 fiscal year. However, for a the fiscal year years beginning 2 on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1, 3 2020, and July 1, 2021, the total amount of moneys appropriated 4 from the general fund of the state to the department of revenue 5 for the payment of commercial and industrial property tax 6 replacement claims in that each fiscal year shall not exceed 7 the total amount of money necessary to pay all commercial and 8 industrial property tax replacement claims for the fiscal year 9 beginning July 1, 2016. 10 Sec. 106. Section 441.21A, subsections 2 and 3, Code 2021, 11 are amended to read as follows: 12 2. a. Beginning with the For each fiscal year beginning 13 on or after July 1, 2014, but before July 1, 2022, each county 14 treasurer shall be paid by the department of revenue an 15 amount equal to the amount of the commercial and industrial 16 property tax replacement claims in the county, as calculated 17 in subsection 4 . If an amount appropriated for a the fiscal 18 year beginning on July 1, 2017, July 1, 2018, July 1, 2019, 19 July 1, 2020, or July 1, 2021, is insufficient to pay all 20 replacement claims for the fiscal year , the director of revenue 21 shall prorate the payment of replacement claims to the county 22 treasurers and shall notify the county auditors of the pro rata 23 percentage on or before September 30. 24 b. For each fiscal year beginning on or after July 1, 2022, 25 but before July 1, 2029, each county treasurer shall be paid 26 by the department of revenue an amount equal to the sum of the 27 commercial and industrial property tax replacement claims for 28 all taxing authorities, or portion thereof, located in the 29 county, as calculated in subsection 4A. The county treasurer 30 shall pay to each taxing authority the taxing authority’s 31 commercial and industrial property tax replacement claim, or 32 portion thereof, as calculated in subsection 4A. 33 3. a. On or before July 1 of each fiscal year beginning on 34 or after July 1, 2014, but before July 1, 2022, the assessor 35 -49- LSB 2832SV (1) 89 jm/jh 49/ 103
S.F. 619 shall report to the county auditor the total actual value of 1 all commercial property and industrial property in the county 2 that is subject to assessment and taxation for the assessment 3 year used to calculate the taxes due and payable in that fiscal 4 year. 5 b. On or before July 1, 2022, the department of management 6 shall calculate and report to the department of revenue for 7 each taxing authority in this state that is a city or a county 8 all of the following: 9 (1) The total assessed value as of January 1, 2012, of 10 all taxable property located in the taxing authority that is 11 subject to assessment and taxation used to calculate taxes 12 which are due and payable in the fiscal year beginning July 1, 13 2013, excluding property subject to the statewide property tax 14 imposed under section 437A.18 or 437B.14. 15 (2) The total assessed value as of January 1, 2019, of 16 all taxable property located in the taxing authority that is 17 subject to assessment and taxation used to calculate taxes 18 which are due and payable in the fiscal year beginning July 1, 19 2020, excluding property subject to the statewide property tax 20 imposed under section 437A.18 or 437B.14. 21 Sec. 107. Section 441.21A, subsection 4, unnumbered 22 paragraph 1, Code 2021, is amended to read as follows: 23 On or before a date established by rule of the department 24 of revenue of each fiscal year beginning on or after July 25 1, 2014, but before July 1, 2022, the county auditor shall 26 prepare a statement, based upon the report received pursuant to 27 subsection 3 , paragraph “a” , listing for each taxing district 28 in the county: 29 Sec. 108. Section 441.21A, Code 2021, is amended by adding 30 the following new subsection: 31 NEW SUBSECTION . 4A. a. As used in this subsection, unless 32 the context clearly requires otherwise: 33 (1) “Qualified taxing authority” means any of the following: 34 (a) A taxing authority that is not a city or a county. 35 -50- LSB 2832SV (1) 89 jm/jh 50/ 103
S.F. 619 (b) A taxing authority that is a city or county for which 1 the amount determined under subsection 3, paragraph “b” , 2 subparagraph (2), is less than one hundred thirty-one and 3 twenty-four hundredths percent of the amount determined under 4 subsection 3, paragraph “b” , subparagraph (1). 5 (2) “Taxing authority” means a city, county, community 6 college, or other governmental entity or political subdivision 7 in this state authorized to certify a levy on property located 8 within such authority, but does not include a school district. 9 b. For fiscal years beginning on or after July 1, 2022, 10 but before July 1, 2029, the amount of each taxing authority’s 11 replacement claim is as follows: 12 (1) If the taxing authority is a qualified taxing authority: 13 (a) For the fiscal year beginning July 1, 2022, 14 seven-eighths of the amount received by the taxing authority 15 under this section for the fiscal year beginning July 1, 2021. 16 (b) For the fiscal year beginning July 1, 2023, six-eighths 17 of the amount received by the taxing authority under this 18 section for the fiscal year beginning July 1, 2021. 19 (c) For the fiscal year beginning July 1, 2024, five-eighths 20 of the amount received by the taxing authority under this 21 section for the fiscal year beginning July 1, 2021. 22 (d) For the fiscal year beginning July 1, 2025, four-eighths 23 of the amount received by the taxing authority under this 24 section for the fiscal year beginning July 1, 2021. 25 (e) For the fiscal year beginning July 1, 2026, 26 three-eighths of the amount received by the taxing authority 27 under this section for the fiscal year beginning July 1, 2021. 28 (f) For the fiscal year beginning July 1, 2027, two-eighths 29 of the amount received by the taxing authority under this 30