Senate Study Bill 1253 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON) A BILL FOR An Act relating to state and local government financing, 1 programs, and operations, by modifying provisions relating 2 to mental health and disability services funding, school 3 district funding, commercial and industrial property tax 4 replacement payments, and other specified tax provisions, 5 making appropriations, providing penalties, and including 6 effective date, applicability, and retroactive applicability 7 provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 2179XC (16) 89 md/jh

S.F. _____ DIVISION I 1 MENTAL HEALTH FUNDING 2 Section 1. 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. 2. 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. 3. 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 -1- LSB 2179XC (16) 89 md/jh 1/ 51

S.F. _____ 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. 4. Section 249N.8, subsection 1, Code 2021, is amended 10 to read as follows: 11 1. Biennially, a report of the results of a review, by 12 county and region, of mental health services previously funded 13 through taxes levied by counties pursuant to section 331.424A , 14 Code 2021, or funds administered by a mental health and 15 disability services region that are funded during the reporting 16 period under the Iowa health and wellness plan. 17 Sec. 5. Section 331.389, subsection 1, paragraph b, Code 18 2021, is amended to read as follows: 19 b. If a county has been exempted prior to July 1, 2014, from 20 the requirement to enter into a regional service system, the 21 county and the county’s board of supervisors shall fulfill all 22 requirements and be eligible as a region under this chapter and 23 chapter chapters 222, 225, 225C , 226, 227, 229, and 230 for a 24 regional service system, regional service system management 25 plan, regional governing board, and regional administrator, 26 and any other provisions applicable to a region of counties 27 providing local mental health and disability services. 28 Additionally, a county exempted under this subsection shall be 29 considered a region for purposes of chapter 426B. 30 Sec. 6. Section 331.389, subsection 5, paragraph a, 31 subparagraph (2), Code 2021, is amended to read as follows: 32 (2) Reduce the amount of the annual state funding provided 33 for the regional service system or exempted county, including 34 amounts received under section 426B.3 or from the risk pool 35 -2- LSB 2179XC (16) 89 md/jh 2/ 51

S.F. _____ under section 426B.6 , not to exceed fifteen percent of the 1 amount. 2 Sec. 7. Section 331.391, subsection 1, Code 2021, is amended 3 to read as follows: 4 1. The funding under the control of the governing board 5 shall be maintained in a combined account , in separate county 6 accounts that are under the control of the governing board, or 7 pursuant to other arrangements authorized by law that limit the 8 administrative burden of such control while facilitating public 9 scrutiny of financial processes . A county exempted under 10 section 331.389, subsection 1, shall maintain a county mental 11 health and disability services fund for the deposit of funding 12 received under section 426B.3 or from the risk pool under 13 section 426B.6 and appropriations specifically authorized to be 14 made from the county mental health and disability services fund 15 shall not be made from any other fund of the county. A county 16 mental health and disability services fund established by an 17 exempt county, to the extent feasible, shall be considered to 18 be the same as a region combined account and shall be subject 19 to the same requirements as a region’s combined account. 20 Sec. 8. Section 331.391, subsection 4, paragraphs a and b, 21 Code 2021, are amended to read as follows: 22 a. If a region is meeting the financial obligations for 23 implementation of its regional service system management plan 24 for a fiscal year and residual funding is anticipated, the 25 regional administrator shall may reserve an adequate amount of 26 unobligated and unencumbered funds for cash flow of expenditure 27 obligations in the next fiscal year. 28 b. Each region shall certify to the department of management 29 human services on or before December 1, 2022 2021 , and each 30 December 1 thereafter, the amount of the region’s cash flow 31 amount in the combined account that is attributable to each 32 county within the region based upon each county’s proportionate 33 amount of funding and contributions to the region or other 34 methodology specified in the regional governance agreement 35 -3- LSB 2179XC (16) 89 md/jh 3/ 51

S.F. _____ or certify the cash flow amount for each separate county 1 account that is under the control of the governing board at the 2 conclusion of the most recently completed fiscal year. 3 Sec. 9. Section 331.391, subsection 4, paragraph c, Code 4 2021, is amended by striking the paragraph. 5 Sec. 10. Section 331.392, subsection 4, paragraph a, Code 6 2021, is amended to read as follows: 7 a. Methods for pooling, management, and expenditure of the 8 funding under the control of the regional administrator. If 9 the agreement does not provide for pooling of the participating 10 county moneys in a single fund, the agreement shall specify how 11 the participating county moneys will be subject to the control 12 of the regional administrator. 13 Sec. 11. Section 331.393, subsection 10, Code 2021, is 14 amended to read as follows: 15 10. The director’s approval of a regional plan shall not be 16 construed to constitute certification of the respective county 17 budgets or of the region’s budget. 18 Sec. 12. Section 331.394, subsection 4, Code 2021, is 19 amended to read as follows: 20 4. If a county of residence is part of a mental health and 21 disability services region that has agreed to pool funding and 22 liability for services, the The responsibilities of the county 23 under law regarding such mental health and disability services 24 shall be performed on behalf of the county by the regional 25 administrator. The county of residence or the county’s mental 26 health and disability services region , as applicable, is 27 responsible for paying the public costs of the mental health 28 and disability services that are not covered by the medical 29 assistance program under chapter 249A and are provided in 30 accordance with the region’s approved service management plan 31 to persons who are residents of the county or region. 32 Sec. 13. Section 331.424A, subsection 1, paragraph b, Code 33 2021, is amended by striking the paragraph. 34 Sec. 14. Section 331.424A, subsection 3, Code 2021, is 35 -4- LSB 2179XC (16) 89 md/jh 4/ 51

S.F. _____ amended to read as follows: 1 3. a. County revenues from taxes and other sources 2 designated by a county for mental health and disabilities 3 services shall be credited to the county mental health and 4 disabilities services fund which shall be created by the 5 county. The Until the required transfer of funds under 6 paragraph “b” , the board shall make appropriations from the fund 7 for payment of services provided under the regional service 8 system management plan approved pursuant to section 331.393 . 9 The For fiscal years beginning before July 1, 2022, the county 10 may pay for the services in cooperation with other counties 11 by pooling appropriations from the county services fund with 12 appropriations from the county services fund of other counties 13 through the county’s regional administrator, or through another 14 arrangement specified in the regional governance agreement 15 entered into by the county under section 331.392 . 16 b. Notwithstanding section 331.432, subsection 3, upon 17 conclusion of the fiscal year beginning July 1, 2021, except 18 for an exempt county under section 331.391, subsection 1, 19 the county treasurer shall transfer the remaining balance of 20 the county’s county services fund created under paragraph 21 “a” , including all unobligated and unencumbered funds, to the 22 county’s region to which the county belongs in the fiscal year 23 beginning July 1, 2022, for deposit in the region’s combined 24 account under section 331.391. 25 Sec. 15. Section 331.424A, subsection 4, paragraph a, Code 26 2021, is amended to read as follows: 27 a. An amount of unobligated and unencumbered funds, as 28 specified in the regional governance agreement entered into 29 by the county under section 331.392 , shall , for fiscal years 30 beginning before July 1, 2022, be reserved in the county 31 services fund to address cash flow obligations in the next 32 fiscal year , subject to the limitations of this subsection . 33 Sec. 16. Section 331.424A, subsection 4, paragraphs c and d, 34 Code 2021, are amended by striking the paragraphs. 35 -5- LSB 2179XC (16) 89 md/jh 5/ 51

S.F. _____ Sec. 17. Section 331.424A, subsections 5, 6, and 9, Code 1 2021, are amended to read as follows: 2 5. Receipts from the state or federal government for fiscal 3 years beginning before July 1, 2022, for the mental health 4 and disability services administered or paid for by a county 5 shall be credited to the county services fund, including moneys 6 distributed to the county from the department of human services 7 and moneys allocated under chapter 426B . 8 6. For each fiscal year beginning before July 1, 2022 , the 9 county shall certify a levy for payment of services. For each 10 such fiscal year, county revenues from taxes imposed by the 11 county credited to the county services fund shall not exceed an 12 amount equal to the county budgeted amount for the fiscal year. 13 A levy certified under this section is not subject to the 14 appeal provisions of section 331.426 or to any other provision 15 in law authorizing a county to exceed, increase, or appeal a 16 property tax levy limit. 17 9. a. For the fiscal year beginning July 1, 2017, and 18 each subsequent fiscal year beginning before July 1, 2022 , the 19 county budgeted amount determined for each county shall be the 20 amount necessary to meet the county’s financial obligations for 21 the payment of services provided under the regional service 22 system management plan approved pursuant to section 331.393 , 23 not to exceed an amount equal to the product of the regional 24 per capita expenditure target amount twenty-one dollars and 25 fourteen cents multiplied by the county’s population , and, for 26 fiscal years beginning on or after July 1, 2023, reduced by 27 the amount of the county’s cash flow reduction amount for the 28 fiscal year calculated under subsection 4 , if applicable . 29 b. If a county officially joins a different region, the 30 county’s budgeted amount for a fiscal year beginning before 31 July 1, 2022, shall be the amount necessary to meet the 32 county’s financial obligations for payment of services provided 33 under the new region’s regional service system management plan 34 approved pursuant to section 331.393 , not to exceed an amount 35 -6- LSB 2179XC (16) 89 md/jh 6/ 51

S.F. _____ equal to the product of the new region’s regional per capita 1 expenditure target amount twenty-one dollars and fourteen cents 2 multiplied by the county’s population , and, for fiscal years 3 beginning on or after July 1, 2023, reduced by the amount of 4 the county’s cash flow reduction amount for the fiscal year 5 calculated under subsection 4 , if applicable . 6 Sec. 18. Section 331.424A, Code 2021, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 10. This section is repealed July 1, 2022. 9 Sec. 19. Section 331.432, subsection 3, Code 2021, is 10 amended by striking the subsection and inserting in lieu 11 thereof the following: 12 3. Payments or transfers of moneys from any fund of the 13 county to a mental health and disability services region’s 14 combined account under section 331.391 are prohibited. 15 Sec. 20. Section 347.7, subsection 1, paragraph c, Code 16 2021, is amended by striking the paragraph. 17 Sec. 21. Section 426B.1, subsection 2, Code 2021, is amended 18 to read as follows: 19 2. Moneys shall be distributed from the property tax relief 20 fund to counties for the mental health and disability regional 21 service system for mental health and disabilities services, in 22 accordance with the appropriations made to the fund and other 23 statutory requirements. 24 Sec. 22. Section 426B.2, Code 2021, is amended to read as 25 follows: 26 426B.2 Property tax relief fund payments. 27 The director of human services shall draw warrants on the 28 property tax relief fund, payable to the county treasurer 29 regional administrator in the amount due to a county mental 30 health and disability services region in accordance with 31 statutory requirements, and mail the warrants to the county 32 auditors regional administrator in July and January of each 33 year. 34 Sec. 23. NEW SECTION . 426B.3 Mental health and disability 35 -7- LSB 2179XC (16) 89 md/jh 7/ 51

S.F. _____ services regional supplement fund. 1 1. A mental health and disability services regional 2 supplement fund is created in the office of the treasurer of 3 state under the authority of the department of human services. 4 The fund shall be separate from the general fund of the state 5 and the balance in the fund shall not be considered part of 6 the balance of the general fund of the state. Moneys in the 7 fund include appropriations made to the fund and other moneys 8 deposited into the fund. Moneys in the fund shall be used 9 solely for purposes of making regional supplement payments 10 under this section. 11 2. For each fiscal year beginning on or after July 1, 2021, 12 there is appropriated from the general fund of the state to the 13 mental health and disability services regional supplement fund 14 an amount necessary to make all regional supplement payments 15 under this section for that fiscal year. 16 3. For each fiscal year beginning on or after July 1, 2021, 17 the moneys available in a fiscal year in the mental health and 18 disability services state supplement fund are appropriated to 19 the department of human services and shall be distributed to 20 each mental health and disability services region, as defined 21 in section 426B.6, on a per capita basis calculated under 22 subsection 4 using each region’s population, as defined in 23 section 426B.6, for that fiscal year. 24 4. The amount of each region’s regional supplement payment 25 shall be determined as follows: 26 a. For the fiscal year beginning July 1, 2021, an amount 27 equal to the product of fifteen dollars and eighty-six cents 28 multiplied by the sum of the region’s population for the fiscal 29 year. 30 b. For the fiscal year beginning July 1, 2022, an amount 31 equal to the product of thirty-eight dollars multiplied by the 32 sum of the region’s population for the fiscal year. 33 c. For the fiscal year beginning July 1, 2023, an amount 34 equal to the product of forty dollars multiplied by the sum of 35 -8- LSB 2179XC (16) 89 md/jh 8/ 51

S.F. _____ the region’s population for the fiscal year. 1 d. For the fiscal year beginning July 1, 2024, an amount 2 equal to the product of forty-two dollars multiplied by the sum 3 of the region’s population for the fiscal year. 4 e. (1) For the fiscal year beginning July 1, 2025, and each 5 succeeding fiscal year, an amount equal to the product of the 6 sum of the region’s population for the fiscal year multiplied 7 by the sum of the dollar amount used to calculate the regional 8 supplement payments under this subsection for the immediately 9 preceding fiscal year plus the regional supplement growth 10 factor for the fiscal year. 11 (2) For purposes of this paragraph, “regional supplement 12 growth factor” for a fiscal year is an amount equal to the 13 product of the dollar amount used to calculate the regional 14 supplement payments under this subsection for the immediately 15 preceding fiscal year multiplied by the percent increase, if 16 any, in the amount of sales tax revenue deposited into the 17 general fund of the state under section 423.2A, subsection 18 1, paragraph “a” , less the transfers required under section 19 423.2A, subsection 2, between the fiscal year beginning three 20 years prior to the applicable fiscal year and the fiscal year 21 beginning two years prior to the applicable year, but not to 22 exceed one and one-half percent. 23 5. Regional supplement payments received by a region 24 shall be deposited in the region’s combined account under 25 section 331.391 and used solely for providing mental health 26 and disability services under the regional service system 27 management plan. 28 6. Regional supplement payments from the mental health 29 and disability services regional supplement fund shall be 30 paid in quarterly installments to the appropriate regional 31 administrator in July, October, January, and April of each 32 fiscal year. 33 7. a. For the fiscal year beginning July 1, 2021, each 34 mental health and disability services region for which the 35 -9- LSB 2179XC (16) 89 md/jh 9/ 51

S.F. _____ amount certified during the fiscal year under section 331.391, 1 subsection 4, paragraph “b” , exceeds forty percent of the 2 proposed gross expenditures of the region for the fiscal year, 3 the remaining quarterly payments of the region’s regional 4 supplement payment shall be reduced by an amount equal to the 5 amount by which the region’s amount certified under section 6 331.391, subsection 4, paragraph “b” , exceeds forty percent of 7 the proposed gross expenditures of the region for the fiscal 8 year, but the amount of the reduction shall not exceed the 9 total amount of the region’s regional supplement payment for 10 the fiscal year. If the region’s remaining quarterly payments 11 are insufficient to effectuate the required reductions under 12 this paragraph, the region is required to pay to the department 13 of human services any amount for which the reduction in 14 quarterly payments could not be made. The amount of reductions 15 to quarterly payments and amounts paid to the department under 16 this paragraph shall be transferred and credited to the risk 17 pool under section 426B.6. 18 b. For the fiscal year beginning July 1, 2022, each mental 19 health and disability services region for which the amount 20 certified during the fiscal year under section 331.391, 21 subsection 4, paragraph “b” , exceeds twenty percent of the 22 proposed gross expenditures of the region for the fiscal year, 23 the remaining quarterly payments of the region’s regional 24 supplement payment shall be reduced by an amount equal to the 25 amount by which the region’s amount certified under section 26 331.391, subsection 4, paragraph “b” , exceeds twenty percent of 27 the proposed gross expenditures of the region for the fiscal 28 year, but the amount of the reduction shall not exceed the 29 total amount of the region’s regional supplement payment for 30 the fiscal year. If the region’s remaining quarterly payments 31 are insufficient to effectuate the required reductions under 32 this paragraph, the region is required to pay to the department 33 of human services any amount for which the reduction in 34 quarterly payments could not be made. The amount of reductions 35 -10- LSB 2179XC (16) 89 md/jh 10/ 51

S.F. _____ to quarterly payments and amounts paid to the department under 1 this paragraph shall be transferred and credited to the risk 2 pool under section 426B.6. 3 c. For the fiscal year beginning July 1, 2023, and each 4 succeeding fiscal year, each mental health and disability 5 services region for which an amount greater than zero is 6 certified during the fiscal year under section 331.391, 7 subsection 4, paragraph “b” , the remaining quarterly payments 8 of the region’s regional supplement payment shall be reduced by 9 an amount equal to the amount certified under section 331.391, 10 subsection 4, paragraph “b” , but the amount of the reduction 11 shall not exceed the total amount of the region’s regional 12 supplement payment for the fiscal year. If the region’s 13 remaining quarterly payments are insufficient to effectuate 14 the required reductions under this paragraph, the region is 15 required to pay to the department of human services any amount 16 for which the reduction in quarterly payments could not be 17 made. The amount of reductions to quarterly payments and 18 amounts paid to the department under this paragraph shall be 19 transferred and credited to the risk pool under section 426B.6. 20 Sec. 24. Section 426B.4, Code 2021, is amended to read as 21 follows: 22 426B.4 Rules. 23 The mental health and disability services commission shall 24 consult with county representatives regional administrators 25 and the director of human services in prescribing forms and 26 adopting rules pursuant to chapter 17A to administer this 27 chapter . 28 Sec. 25. NEW SECTION . 426B.6 Risk pool. 29 1. For the purposes of this chapter, unless the context 30 otherwise requires: 31 a. “Mental health and disability services region” means 32 a mental health and disability services region formed in 33 accordance with section 331.389. 34 b. “Population” means, as of July 1 of the fiscal year 35 -11- LSB 2179XC (16) 89 md/jh 11/ 51

S.F. _____ preceding the fiscal year in which the population figure is 1 applied, the county population shown by the latest preceding 2 certified federal census or the latest applicable population 3 estimate issued by the United States census bureau, whichever 4 is most recent. 5 c. “Regional administrator” means the regional administrator 6 of a mental health and disability services region, as defined 7 in section 331.388. 8 2. A risk pool is created in the property tax relief fund 9 under section 426B.1. The pool shall consist of the moneys 10 appropriated or credited to the pool by law, including amounts 11 credited to the risk pool under section 426B.3, subsection 7. 12 For fiscal years beginning on or after July 1, 2021, there is 13 appropriated from the general fund of the state to the risk 14 pool the following amounts to be used for the purposes of this 15 section: 16 a. For the fiscal year beginning July 1, 2021, nine million 17 nine hundred sixty thousand five hundred ninety dollars. 18 b. For the fiscal year beginning July 1, 2022, five million 19 one hundred seven thousand three hundred forty dollars. 20 c. (1) For each fiscal year beginning on or after July 1, 21 2025, an amount equal to the risk pool growth factor multiplied 22 by the ending balance of the risk pool at the conclusion of 23 the fiscal year ending June 30 immediately preceding the 24 application deadline under subsection 4 for the fiscal year for 25 which the appropriation is made. 26 (2) For purposes of this paragraph, the “risk pool growth 27 factor” for each fiscal year is the percent increase, if any, in 28 the amount of sales tax revenue deposited into the general fund 29 of the state under section 423.2A, subsection 1, paragraph “a” , 30 less the transfers required under section 423.2A, subsection 31 2, between the fiscal year beginning three years prior to the 32 applicable fiscal year and the fiscal year beginning two years 33 prior to the applicable year, minus one and one-half percent, 34 and the risk pool growth factor for any fiscal year shall not 35 -12- LSB 2179XC (16) 89 md/jh 12/ 51

S.F. _____ exceed three and one-half percent. 1 3. A risk pool board is created. The board shall consist of 2 two county supervisors, two county auditors, a member of the 3 mental health and disability services commission who is not a 4 member of a county board of supervisors, a member of the county 5 finance committee created in chapter 333A who is not an elected 6 official, a representative of a provider of mental health or 7 developmental disabilities services selected from nominees 8 submitted by the Iowa association of community providers, 9 and two staff members of regional administrators of county 10 mental health and disability services regions, all appointed 11 by the governor, and one member appointed by the director of 12 human services. All members appointed by the governor shall 13 be subject to confirmation by the senate. Members shall serve 14 for three-year terms. A vacancy shall be filled in the same 15 manner as the original appointment. Expenses and other costs 16 of the risk pool board members representing counties shall be 17 paid by the county of origin. Expenses and other costs of risk 18 pool board members who do not represent counties shall be paid 19 by the department of human services. Staff assistance to the 20 board shall be provided by the department of human services. 21 Actuarial expenses and other direct administrative costs shall 22 be charged to the pool. 23 4. To receive assistance from the risk pool, a regional 24 administrator must apply to the risk pool board on or before 25 October 31 preceding the fiscal year for which assistance is 26 requested. The purpose of the assistance shall be to provide 27 financial support for services provided by the regional 28 administrator’s mental health and disability services region. 29 The risk pool board shall make its final decisions on or 30 before December 15 regarding acceptance or rejection of the 31 applications for assistance and the total amount accepted shall 32 be considered obligated. 33 5. Basic eligibility for risk pool assistance requires that 34 a mental health and disability services region meet all of the 35 -13- LSB 2179XC (16) 89 md/jh 13/ 51

S.F. _____ following conditions: 1 a. The mental health and disability services region is in 2 compliance with the regional service system management plan 3 requirements of section 331.393. 4 b. (1) For applications for assistance for the fiscal year 5 beginning July 1, 2021, and the fiscal year beginning July 1, 6 2022, in the fiscal year that commenced two years prior to the 7 fiscal year of application for assistance, the ending balance, 8 under generally accepted accounting principles, of the mental 9 health and disability services region’s combined services funds 10 was equal to or less than the ending balance threshold under 11 subparagraph (2) for the fiscal year for which assistance is 12 requested. 13 (2) For purposes of this paragraph “b” , “ending balance 14 threshold” means the following: 15 (a) For applications for assistance for the fiscal year 16 beginning July 1, 2021, forty percent of the actual gross 17 expenditures of the mental health and disability services 18 region for the fiscal year that commenced two years prior to 19 the fiscal year of application for assistance. 20 (b) For applications for assistance for the fiscal year 21 beginning July 1, 2022, twenty percent of the actual gross 22 expenditures of the mental health and disability services 23 region for the fiscal year that commenced two years prior to 24 the fiscal year of application for assistance. 25 6. The board shall review the fiscal year-end financial 26 records for all mental health and disability services regions 27 that are granted risk pool assistance. If the board determines 28 a mental health and disability services region’s actual need 29 for risk pool assistance was less than the amount of risk pool 30 assistance granted to the mental health and disability services 31 region, the mental health and disability services region 32 shall refund the difference between the amount of assistance 33 granted and the actual need. The mental health and disability 34 services region shall submit the refund within thirty days of 35 -14- LSB 2179XC (16) 89 md/jh 14/ 51

S.F. _____ receiving notice from the board. Refunds shall be credited 1 to the risk pool. The mental health and disability services 2 commission shall adopt rules pursuant to chapter 17A providing 3 criteria for the purposes of this subsection and as necessary 4 to implement the other provisions of this section. 5 7. The board shall determine application requirements to 6 ensure prudent use of risk pool assistance. The board may 7 accept or reject an application for assistance in whole or in 8 part. The decision of the board is final. 9 8. The total amount of risk pool assistance shall be limited 10 to the amount available in the risk pool for a fiscal year. Any 11 unobligated balance in the risk pool at the close of a fiscal 12 year shall remain in the risk pool for distribution in the 13 succeeding fiscal year. 14 9. Risk pool assistance shall only be made available to 15 address one or more of the following circumstances: 16 a. Continuing support for mandated services. 17 b. Avoiding the need for reduction or elimination of 18 critical services when the reduction or elimination places 19 consumers’ health or safety at risk. 20 c. Avoiding the need for reduction or elimination of a 21 mobile crisis team or other critical emergency services when 22 the reduction or elimination places the public’s health or 23 safety at risk. 24 d. Avoiding the need for reduction or elimination of the 25 services or other support provided to entire populations of 26 consumers with disabilities. 27 e. Avoiding the need for reduction or elimination of 28 services or other support that maintain consumers in a 29 community setting or that would create a risk that the 30 consumers would be placed in more restrictive, higher cost 31 settings. 32 10. Subject to the amount available and obligated from the 33 risk pool for a fiscal year, the department of human services 34 shall annually calculate the amount of moneys due to eligible 35 -15- LSB 2179XC (16) 89 md/jh 15/ 51

S.F. _____ mental health and disability services regions in accordance 1 with the board’s decisions and that amount is appropriated from 2 the risk pool to the department for payment of the moneys due. 3 The department shall authorize the issuance of warrants payable 4 to the mental health and disability services regions for the 5 amounts due and the warrants shall be issued on or before 6 January 1. 7 11. On or before March 1 and September 1 of each fiscal 8 year, the department of human services shall provide the risk 9 pool board with a report of the financial condition of each 10 funding source administered by the board. The report shall 11 include but is not limited to an itemization of the funding 12 source’s balances, types and amount of revenues credited, and 13 payees and payment amounts for the expenditures made from the 14 funding source during the reporting period. 15 12. If the board has made its decisions but has determined 16 that there are otherwise qualifying requests for risk pool 17 assistance that are beyond the amount available in the risk 18 pool fund for a fiscal year, the board shall compile a list of 19 such requests and the supporting information for the requests. 20 The list and information shall be submitted to the mental 21 health and disability services commission, the department of 22 human services, and the general assembly. 23 Sec. 26. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER 24 SECTION 331.424A —— FY 2021-2022. If this division of this 25 Act takes effect after March 31, 2021, for each county for 26 which the amount of taxes certified for levy for the purposes 27 of section 331.424A for the fiscal year beginning July 1, 28 2021, exceeds the product of the population of the county as 29 determined under section 331.424A, subsection 1, paragraph 30 “e”, multiplied by twenty-one dollars and fourteen cents, 31 the department of management shall reduce the amount of such 32 taxes certified for levy to an amount not to exceed the 33 product of the population of the county as determined under 34 section 331.424A, subsection 1, paragraph “e”, multiplied by 35 -16- LSB 2179XC (16) 89 md/jh 16/ 51

S.F. _____ twenty-one dollars and fourteen cents and shall revise the rate 1 of taxation as necessary to raise the reduced amount. The 2 department of management shall report the reduction in the 3 certified taxes and the revised rate of taxation to the county 4 auditors by June 15, 2021. 5 Sec. 27. IMPLEMENTATION OF RISK POOL UNDER SECTION 426B.6 6 —— EMERGENCY RULEMAKING. 7 1. In order to timely implement the provisions of this 8 division of this Act establishing the risk pool for mental 9 health and disability services regions for the fiscal year 10 beginning July 1, 2021, and the fiscal year beginning July 11 1, 2022, the director of human services shall, subject to 12 the membership requirements of section 426B.6, subsection 3, 13 appoint temporary members of the risk pool board to review 14 and approve risk pool assistance applications and establish 15 alternative application deadlines and expedited application 16 review and approval timelines. 17 2. The department of human services may adopt 18 administrative rules under section 17A.4, subsection 3, and 19 section 17A.5, subsection 2, paragraph “b”, to implement 20 provisions of this division of this Act and the rules shall 21 become effective immediately upon filing or on a later 22 effective date specified in the rules, unless the effective 23 date of the rules is delayed or the applicability of the rules 24 is suspended by the administrative rules review committee. Any 25 rules adopted in accordance with this section shall not take 26 effect before the rules are reviewed by the administrative 27 rules review committee. The delay authority provided to the 28 administrative rules review committee under section 17A.8, 29 subsection 9, shall be applicable to a delay imposed under this 30 section, notwithstanding a provision in that section making it 31 inapplicable to section 17A.5, subsection 2, paragraph “b”. 32 Any rules adopted in accordance with the provisions of this 33 section shall also be published as a notice of intended action 34 as provided in section 17A.4. 35 -17- LSB 2179XC (16) 89 md/jh 17/ 51

S.F. _____ Sec. 28. EFFECTIVE DATE. Except as provided in this 1 division of this Act, this division of this Act, being deemed 2 of immediate importance, takes effect upon enactment. 3 Sec. 29. EFFECTIVE DATE. The following take effect July 1, 4 2022: 5 1. The section of this division of this Act amending section 6 331.432, subsection 3. 7 2. The section of this division of this Act amending section 8 347.7, subsection 1, paragraph “c”. 9 DIVISION II 10 COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS 11 Sec. 30. Section 2.48, subsection 3, paragraph f, 12 subparagraph (6), Code 2021, is amended by striking the 13 subparagraph. 14 Sec. 31. Section 331.512, subsection 15, Code 2021, is 15 amended by striking the subsection. 16 Sec. 32. Section 331.559, subsection 27, Code 2021, is 17 amended by striking the subsection. 18 Sec. 33. Section 441.21A, subsection 1, paragraph a, Code 19 2021, is amended to read as follows: 20 a. For each fiscal year beginning on or after July 1, 2014, 21 but before July 1, 2027, there is appropriated from the general 22 fund of the state to the department of revenue an amount 23 necessary for the payment of all commercial and industrial 24 property tax replacement claims under this section for the 25 fiscal year. However, for a the fiscal year years beginning 26 on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1, 27 2020, and July 1, 2021, the total amount of moneys appropriated 28 from the general fund of the state to the department of revenue 29 for the payment of commercial and industrial property tax 30 replacement claims in that each fiscal year shall not exceed 31 the total amount of money necessary to pay all commercial and 32 industrial property tax replacement claims for the fiscal year 33 beginning July 1, 2016. 34 Sec. 34. Section 441.21A, subsections 2 and 3, Code 2021, 35 -18- LSB 2179XC (16) 89 md/jh 18/ 51