House File 1055 - Introduced HOUSE FILE 1055 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO LSB 3003YC) A BILL FOR An Act relating to state finances, including by making, 1 modifying, limiting, or reducing appropriations, 2 distributions, or transfers, authorizing expenditure of 3 unappropriated moneys in special funds, providing for 4 properly related matters including prohibiting state 5 membership in the Iowa individual health benefit reinsurance 6 association, making corrections, and including effective 7 date and retroactive applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 3003HV (1) 91 ns/jh

H.F. 1055 DIVISION I 1 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 2 AUTHORITY 3 Section 1. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 4 2025-2026. Notwithstanding the standing appropriation in the 5 following designated section for the fiscal year beginning July 6 1, 2025, and ending June 30, 2026, the amount appropriated from 7 the general fund of the state pursuant to that section for the 8 following designated purpose shall not exceed the following 9 amount: 10 For payment of claims for nonpublic school pupil 11 transportation under section 285.2 : 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,997,091 13 If total approved claims for reimbursement for nonpublic 14 school pupil transportation exceed the amount appropriated in 15 accordance with this section, the department of education shall 16 prorate the amount of each approved claim. 17 Sec. 2. INSTRUCTIONAL SUPPORT STATE AID —— FY 2025-2026. In 18 lieu of the appropriation provided in section 257.20, 19 subsection 2, the appropriation for the fiscal year 20 beginning July 1, 2025, and ending June 30, 2026, for paying 21 instructional support state aid under section 257.20 for the 22 fiscal year is zero. 23 Sec. 3. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— FY 24 2025-2026. For the fiscal year beginning July 1, 2025, and 25 ending June 30, 2026, salary adjustments otherwise provided 26 may be funded as determined by the department of management, 27 subject to any applicable constitutional limitation, using 28 unappropriated moneys remaining in the commerce revolving 29 fund, the gaming enforcement revolving fund, the gaming 30 regulatory revolving fund, the primary road fund, the road 31 use tax fund, the fish and game protection fund, and the Iowa 32 public employees’ retirement fund, and in other departmental 33 revolving, trust, or special funds for which the general 34 assembly has not made an operating budget appropriation. 35 -1- LSB 3003HV (1) 91 ns/jh 1/ 8

H.F. 1055 Sec. 4. TAXPAYER RELIEF FUND —— TRANSFER. 1 1. There is transferred from the taxpayer relief fund 2 created in section 8.57E to the general fund of the state, the 3 following amount: 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,881,303 5 2. The transfer made in this section is based on the 6 application of assessment limitations calculated under section 7 441.21 due to the enactment of 2023 Iowa Acts, chapter 5. The 8 transferred moneys shall be used in lieu of a like amount 9 of other general fund moneys to pay foundation aid under 10 chapter 257 as described in section 257.16 for the fiscal year 11 beginning July 1, 2025. 12 Sec. 5. Section 257.35, Code 2025, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 19A. Notwithstanding subsection 1, and in 15 addition to the reduction applicable pursuant to subsection 2, 16 the amounts specified for school districts and area education 17 agencies in subsection 1, paragraph “a” , for the fiscal year 18 beginning July 1, 2025, and ending June 30, 2026, shall be 19 reduced by the department of management by twenty-five million 20 dollars. The reductions for each district or agency shall be 21 prorated based on the proportional reduction that the district 22 or agency receives under subsection 2. 23 DIVISION II 24 CORRECTIVE PROVISIONS 25 Sec. 6. Section 29D.4, subsection 2, paragraph b, as enacted 26 by 2025 Iowa Acts, Senate File 619, section 8, is amended to 27 read as follows: 28 b. Moneys in the fund are appropriated to the department to 29 provide loans to eligible entities pursuant to section 29D.9 30 29D.8 , and for administration of the program as permitted 31 under the STORM Act. Moneys in the fund shall not be used to 32 provide a loan to a private entity for the acquisition of real 33 property. Moneys in the fund shall not be considered part of 34 the general fund of the state subject to appropriation for any 35 -2- LSB 3003HV (1) 91 ns/jh 2/ 8

H.F. 1055 other purpose by the general assembly, and in determining a 1 general fund balance, shall not be included in the general fund 2 of the state subject to section 16.31, insofar as section 16.31 3 complies with the STORM Act. 4 Sec. 7. Section 144E.3, Code 2025, as amended by 2025 Iowa 5 Acts, Senate File 233, section 2, if enacted, is amended to 6 read as follows: 7 144E.3 Manufacturer and eligible facility rights. 8 1. A manufacturer of an investigational drug, biological 9 product, or device or a manufacturer operating within, 10 and in compliance with all requirements applicable to, an 11 eligible facility may make available, and an eligible patient, 12 as applicable under section 144E.1 144E.2 , subsection 2, 13 paragraph “a” or “b” , may request from a manufacturer of 14 an investigational drug, biological product, or device, 15 or a manufacturer operating within, and in compliance with 16 all requirements applicable to, an eligible facility, the 17 manufacturer’s investigational drug, biological product, or 18 device, or the manufacturer’s individualized investigational 19 treatment under this chapter . This chapter does not require a 20 manufacturer of an investigational drug, biological product, 21 or device, or of an individualized investigational treatment 22 to provide or otherwise make available the investigational 23 drug, biological product, or device, or the individualized 24 investigational treatment to an eligible patient. 25 2. An eligible facility, or a manufacturer described 26 in subsection 1 , that is in compliance with all applicable 27 requirements, may do any of the following: 28 a. Provide an investigational drug, biological product, 29 or device, or an individualized investigational treatment 30 to an eligible patient, as applicable under section 144E.1 31 144E.2 , subsection 2, paragraph “a” or “b” , without receiving 32 compensation. 33 b. Require an eligible patient, as applicable under section 34 144E.1 144E.2 , subsection 2, paragraph “a” or “b” , to pay the 35 -3- LSB 3003HV (1) 91 ns/jh 3/ 8

H.F. 1055 costs of, or the costs associated with, the manufacture of the 1 investigational drug, biological product, or device, or the 2 individualized investigational treatment. 3 Sec. 8. Section 237.10, subsection 1, paragraph d, if 4 enacted by 2025 Iowa Acts, House File 644, section 3, is 5 amended to read as follows: 6 d. (1) The department shall notify an individual licensee, 7 and the parents or guardians of a child, if the department 8 delegates the department’s right to consent to emergency 9 medical care and routine medical care on behalf of the child 10 under section 232.2, subsection 12, paragraph “c” , to the 11 individual licensee. 12 (2) The department shall notify the department of 13 education, an individual licensee, and the parents or guardians 14 of a child if the department delegates the department’s right 15 to consent to participation in an individualized education 16 program on behalf of the child under section 232.2, subsection 17 12, paragraph “c” , to the individual licensee. 18 Sec. 9. Section 237.10, subsection 1, paragraph d, if 19 enacted by 2025 Iowa Acts, House File 644, section 7, is 20 amended to read as follows: 21 d. (1) The department shall notify an individual licensee 22 or an approved kinship caregiver, and the parents or guardians 23 of a child, if the department delegates the department’s right 24 to consent to emergency medical care and routine medical care 25 on behalf of the child under section 232.2, subsection 12, 26 paragraph “c” , to the individual licensee or approved kinship 27 caregiver. 28 (2) The department shall notify the department of 29 education, an individual licensee or an approved kinship 30 caregiver, and the parents or guardians of a child, if the 31 department delegates the department’s right to consent to 32 participation in an individualized education program on behalf 33 of the child under section 232.2, subsection 12, paragraph “c” , 34 to the individual licensee or approved kinship caregiver. 35 -4- LSB 3003HV (1) 91 ns/jh 4/ 8

H.F. 1055 Sec. 10. Section 256.9, subsection 69, if enacted by 2025 1 Iowa Acts, House File 782, section 1, is amended to read as 2 follows: 3 69. On or before May 1, 2025, develop and distribute 4 to school districts, accredited nonpublic schools, charter 5 schools, and innovation zone schools model policies that, 6 if adopted, would satisfy the a school district’s , charter 7 school’s, or innovation zone school’s responsibilities under 8 section 279.87 relating to policies governing student use of 9 personal electronic devices. 10 Sec. 11. Section 299.1D, subsection 1, paragraph f, if 11 enacted by 2025 Iowa Acts, House File 870, section 2, is 12 amended to read as follows: 13 f. The school district or accredited nonpublic school 14 must not expend any moneys related to the course in religious 15 instruction, not including de minimis administrative costs 16 associated with processing notifications received under 17 subsection 1 paragraph “a” and tracking the child’s attendance 18 to ensure compliance with this section. 19 Sec. 12. Section 514F.8, subsection 1A, paragraph c, 20 subparagraph (8), if enacted by 2025 Iowa Acts, House File 303, 21 section 1, is amended to read as follows: 22 (8) The average and median time that elapsed between the 23 submission of a nonurgent prior authorization request and a 24 determination by the utilization review organization for the 25 urgent nonurgent prior authorization request, aggregated for 26 all health care services or items. 27 Sec. 13. Section 522F.4, subsection 2, as enacted by 2025 28 Iowa Acts, Senate File 619, section 59, is amended to read as 29 follows: 30 2. Any The fee for a criminal history check shall be 31 the same as any applicable fee for a criminal history check 32 pursuant to section 522B.5A. 33 Sec. 14. Section 522F.9, subsection 2, as enacted by 2025 34 Iowa Acts, Senate File 619, section 64, is amended to read as 35 -5- LSB 3003HV (1) 91 ns/jh 5/ 8

H.F. 1055 follows: 1 2. Any The fee for a criminal history check shall be 2 the same as any applicable fee for a criminal history check 3 pursuant to section 522B.5A. 4 Sec. 15. CODE EDITOR DIRECTIVE. 2025 Iowa Acts, Senate File 5 619, section 29, amends section 515.137A, subsections 3, 4, and 6 5, Code 2025, by striking the subsections and inserting in lieu 7 thereof new subsections 3, 4, and 5, and, notwithstanding the 8 Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10. 9 The Code editor is directed to codify 2025 Iowa Acts, Senate 10 File 619, section 29, by striking section 515.137A, subsections 11 3, 4, and 5, Code 2025, and inserting in lieu thereof new 12 subsections 3, 4, and 5, and then by amending section 515.137A, 13 Code 2025, by adding new subsections 6, 7, 8, 9, and 10. 14 Sec. 16. EFFECTIVE DATE. The following, being deemed of 15 immediate importance, takes effect upon enactment: 16 The section of this division of this Act amending section 17 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 18 782, section 1. 19 Sec. 17. RETROACTIVE APPLICABILITY. The following applies 20 retroactively to the effective date of 2025 Iowa Acts, House 21 File 782, if enacted: 22 The section of this division of this Act amending section 23 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 24 782, section 1. 25 DIVISION III 26 STATE MEMBERSHIP —— REINSURANCE ASSOCIATION 27 Sec. 18. Section 513C.10, subsection 1, paragraph a, Code 28 2025, is amended to read as follows: 29 a. All persons that provide health benefit plans in this 30 state including insurers providing accident and sickness 31 insurance under chapter 509 , 514 , or 514A , whether on an 32 individual or group basis; fraternal benefit societies 33 providing hospital, medical, or nursing benefits under chapter 34 512B ; and health maintenance organizations, other entities 35 -6- LSB 3003HV (1) 91 ns/jh 6/ 8

H.F. 1055 providing health insurance or health benefits subject to state 1 insurance regulation, and all other insurers as designated 2 by the board of directors of the Iowa comprehensive health 3 insurance association with the approval of the commissioner 4 shall be members of the association. However, the state, 5 including a department, an independent agency, the state board 6 of regents, and an institution under the control of the state 7 board of regents, shall not be a member of the association. 8 Sec. 19. EFFECTIVE DATE. This division of this Act, being 9 deemed of immediate importance, takes effect upon enactment. 10 Sec. 20. RETROACTIVE APPLICABILITY. This division of this 11 Act applies retroactively to January 1, 2020. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 16 AUTHORITY. This bill limits or reduces the standing 17 appropriations for FY 2025-2026 for payment of claims for 18 nonpublic school pupil transportation, instructional support 19 state aid, and state aid for area education agencies and school 20 districts under Code section 257.35. 21 The bill authorizes salary adjustments to be funded as 22 determined by the department of management from unappropriated 23 moneys in certain special funds. 24 The bill transfers moneys from the taxpayer relief fund 25 to the general fund of the state based on the application of 26 assessment limitations calculated under Code section 441.21 27 due to the enactment of 2023 Iowa Acts, chapter 5, to be used 28 in lieu of a like amount of other general fund moneys to pay 29 foundation aid under Code chapter 257 for FY 2025-2026. 30 CORRECTIVE PROVISIONS. The bill makes technical corrections 31 to, or as the result of, legislation enacted or considered 32 during the 2025 legislative session. Certain provisions take 33 effect or apply retroactively based on the underlying 2025 34 legislation. 35 -7- LSB 3003HV (1) 91 ns/jh 7/ 8