HF 1055 (LSB 3003HV (1) 91)

HOUSE FILE 1055

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO LSB 3003YC)

A BILL FOR

An Act relating to state finances, including by making, modifying, limiting, or reducing appropriations, distributions, or transfers, authorizing expenditure of unappropriated moneys in special funds, providing for properly related matters including prohibiting state membership in the Iowa individual health benefit reinsurance association, making corrections, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE AUTHORITY

    Section 1.  LIMITATIONS OF STANDING APPROPRIATIONS —— FY 2025-2026.  Notwithstanding the standing appropriation in the following designated section for the fiscal year beginning July 1, 2025, and ending June 30, 2026, the amount appropriated from the general fund of the state pursuant to that section for the following designated purpose shall not exceed the following amount:
   For payment of claims for nonpublic school pupil transportation under section 285.2:
   ...................................................................... $  8,997,091

   If total approved claims for reimbursement for nonpublic school pupil transportation exceed the amount appropriated in accordance with this section, the department of education shall prorate the amount of each approved claim.
    Sec. 2.  INSTRUCTIONAL SUPPORT STATE AID —— FY 2025-2026.  In lieu of the appropriation provided in section 257.20, subsection 2, the appropriation for the fiscal year beginning July 1, 2025, and ending June 30, 2026, for paying instructional support state aid under section 257.20 for the fiscal year is zero.
    Sec. 3.  SPECIAL FUNDS —— SALARY ADJUSTMENTS —— FY 2025-2026.  For the fiscal year beginning July 1, 2025, and ending June 30, 2026, salary adjustments otherwise provided may be funded as determined by the department of management, subject to any applicable constitutional limitation, using unappropriated moneys remaining in the commerce revolving fund, the gaming enforcement revolving fund, the gaming regulatory revolving fund, the primary road fund, the road use tax fund, the fish and game protection fund, and the Iowa public employees’ retirement fund, and in other departmental revolving, trust, or special funds for which the general assembly has not made an operating budget appropriation.
    Sec. 4.  TAXPAYER RELIEF FUND —— TRANSFER.
   1.  There is transferred from the taxpayer relief fund created in section 8.57E to the general fund of the state, the following amount:
   ...................................................................... $ 21,881,303

   2.  The transfer made in this section is based on the application of assessment limitations calculated under section 441.21 due to the enactment of 2023 Iowa Acts, chapter 5. The transferred moneys shall be used in lieu of a like amount of other general fund moneys to pay foundation aid under chapter 257 as described in section 257.16 for the fiscal year beginning July 1, 2025.
    Sec. 5.  Section 257.35, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  19A.  Notwithstanding subsection 1, and in addition to the reduction applicable pursuant to subsection 2, the amounts specified for school districts and area education agencies in subsection 1, paragraph “a”, for the fiscal year beginning July 1, 2025, and ending June 30, 2026, shall be reduced by the department of management by twenty-five million dollars. The reductions for each district or agency shall be prorated based on the proportional reduction that the district or agency receives under subsection 2.
DIVISION II
CORRECTIVE PROVISIONS

    Sec. 6.  Section 29D.4, subsection 2, paragraph b, as enacted by 2025 Iowa Acts, Senate File 619, section 8, is amended to read as follows:
   b.  Moneys in the fund are appropriated to the department to provide loans to eligible entities pursuant to section 29D.9 29D.8, and for administration of the program as permitted under the STORM Act. Moneys in the fund shall not be used to provide a loan to a private entity for the acquisition of real property. Moneys in the fund shall not be considered part of the general fund of the state subject to appropriation for any other purpose by the general assembly, and in determining a general fund balance, shall not be included in the general fund of the state subject to section 16.31, insofar as section 16.31 complies with the STORM Act.
    Sec. 7.  Section 144E.3, Code 2025, as amended by 2025 Iowa Acts, Senate File 233, section 2, if enacted, is amended to read as follows:
   144E.3  Manufacturer and eligible facility rights.
   1.  A manufacturer of an investigational drug, biological product, or device or a manufacturer operating within, and in compliance with all requirements applicable to, an eligible facility may make available, and an eligible patient, as applicable under section 144E.1 144E.2, subsection 2, paragraph “a” or “b”, may request from a manufacturer of an investigational drug, biological product, or device, or a manufacturer operating within, and in compliance with all requirements applicable to, an eligible facility, the manufacturer’s investigational drug, biological product, or device, or the manufacturer’s individualized investigational treatment under this chapter. This chapter does not require a manufacturer of an investigational drug, biological product, or device, or of an individualized investigational treatment to provide or otherwise make available the investigational drug, biological product, or device, or the individualized investigational treatment to an eligible patient.
   2.  An eligible facility, or a manufacturer described in subsection 1, that is in compliance with all applicable requirements, may do any of the following:
   a.  Provide an investigational drug, biological product, or device, or an individualized investigational treatment to an eligible patient, as applicable under section 144E.1 144E.2, subsection 2, paragraph “a” or “b”, without receiving compensation.
   b.  Require an eligible patient, as applicable under section 144E.1 144E.2, subsection 2, paragraph “a” or “b”, to pay the costs of, or the costs associated with, the manufacture of the investigational drug, biological product, or device, or the individualized investigational treatment.
    Sec. 8.  Section 237.10, subsection 1, paragraph d, if enacted by 2025 Iowa Acts, House File 644, section 3, is amended to read as follows:
   d.  (1)  The department shall notify an individual licensee, and the parents or guardians of a child, if the department delegates the department’s right to consent to emergency medical care and routine medical care on behalf of the child under section 232.2, subsection 12, paragraph “c”, to the individual licensee.
   (2)  The department shall notify the department of education, an individual licensee, and the parents or guardians of a child if the department delegates the department’s right to consent to participation in an individualized education program on behalf of the child under section 232.2, subsection 12, paragraph “c”, to the individual licensee.
    Sec. 9.  Section 237.10, subsection 1, paragraph d, if enacted by 2025 Iowa Acts, House File 644, section 7, is amended to read as follows:
   d.  (1)  The department shall notify an individual licensee or an approved kinship caregiver, and the parents or guardians of a child, if the department delegates the department’s right to consent to emergency medical care and routine medical care on behalf of the child under section 232.2, subsection 12, paragraph “c”, to the individual licensee or approved kinship caregiver.
   (2)  The department shall notify the department of education, an individual licensee or an approved kinship caregiver, and the parents or guardians of a child, if the department delegates the department’s right to consent to participation in an individualized education program on behalf of the child under section 232.2, subsection 12, paragraph “c”, to the individual licensee or approved kinship caregiver.
    Sec. 10.  Section 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 782, section 1, is amended to read as follows:
   69.  On or before May 1, 2025, develop and distribute to school districts, accredited nonpublic schools, charter schools, and innovation zone schools model policies that, if adopted, would satisfy the a school district’s, charter school’s, or innovation zone school’s responsibilities under section 279.87 relating to policies governing student use of personal electronic devices.
    Sec. 11.  Section 299.1D, subsection 1, paragraph f, if enacted by 2025 Iowa Acts, House File 870, section 2, is amended to read as follows:
   f.  The school district or accredited nonpublic school must not expend any moneys related to the course in religious instruction, not including de minimis administrative costs associated with processing notifications received under subsection 1 paragraph “a” and tracking the child’s attendance to ensure compliance with this section.
    Sec. 12.  Section 514F.8, subsection 1A, paragraph c, subparagraph (8), if enacted by 2025 Iowa Acts, House File 303, section 1, is amended to read as follows:
   (8)  The average and median time that elapsed between the submission of a nonurgent prior authorization request and a determination by the utilization review organization for the urgent nonurgent prior authorization request, aggregated for all health care services or items.
    Sec. 13.  Section 522F.4, subsection 2, as enacted by 2025 Iowa Acts, Senate File 619, section 59, is amended to read as follows:
   2.  Any The fee for a criminal history check shall be the same as any applicable fee for a criminal history check pursuant to section 522B.5A.
    Sec. 14.  Section 522F.9, subsection 2, as enacted by 2025 Iowa Acts, Senate File 619, section 64, is amended to read as follows:
   2.  Any The fee for a criminal history check shall be the same as any applicable fee for a criminal history check pursuant to section 522B.5A.
    Sec. 15.  CODE EDITOR DIRECTIVE.  2025 Iowa Acts, Senate File 619, section 29, amends section 515.137A, subsections 3, 4, and 5, Code 2025, by striking the subsections and inserting in lieu thereof new subsections 3, 4, and 5, and, notwithstanding the Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10. The Code editor is directed to codify 2025 Iowa Acts, Senate File 619, section 29, by striking section 515.137A, subsections 3, 4, and 5, Code 2025, and inserting in lieu thereof new subsections 3, 4, and 5, and then by amending section 515.137A, Code 2025, by adding new subsections 6, 7, 8, 9, and 10.
    Sec. 16.  EFFECTIVE DATE.  The following, being deemed of immediate importance, takes effect upon enactment:
   The section of this division of this Act amending section 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 782, section 1.
    Sec. 17.  RETROACTIVE APPLICABILITY.  The following applies retroactively to the effective date of 2025 Iowa Acts, House File 782, if enacted:
   The section of this division of this Act amending section 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 782, section 1.
DIVISION III
STATE MEMBERSHIP —— REINSURANCE ASSOCIATION

    Sec. 18.  Section 513C.10, subsection 1, paragraph a, Code 2025, is amended to read as follows:
   a.  All persons that provide health benefit plans in this state including insurers providing accident and sickness insurance under chapter 509, 514, or 514A, whether on an individual or group basis; fraternal benefit societies providing hospital, medical, or nursing benefits under chapter 512B; and health maintenance organizations, other entities providing health insurance or health benefits subject to state insurance regulation, and all other insurers as designated by the board of directors of the Iowa comprehensive health insurance association with the approval of the commissioner shall be members of the association.  However, the state, including a department, an independent agency, the state board of regents, and an institution under the control of the state board of regents, shall not be a member of the association.
    Sec. 19.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 20.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to January 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE AUTHORITY. This bill limits or reduces the standing appropriations for FY 2025-2026 for payment of claims for nonpublic school pupil transportation, instructional support state aid, and state aid for area education agencies and school districts under Code section 257.35. 
   The bill authorizes salary adjustments to be funded as determined by the department of management from unappropriated moneys in certain special funds. 
   The bill transfers moneys from the taxpayer relief fund to the general fund of the state based on the application of assessment limitations calculated under Code section 441.21 due to the enactment of 2023 Iowa Acts, chapter 5, to be used in lieu of a like amount of other general fund moneys to pay foundation aid under Code chapter 257 for FY 2025-2026.
   CORRECTIVE PROVISIONS. The bill makes technical corrections to, or as the result of, legislation enacted or considered during the 2025 legislative session. Certain provisions take effect or apply retroactively based on the underlying 2025 legislation.
   STATE MEMBERSHIP —— REINSURANCE ASSOCIATION. The bill excludes the state from membership in the Iowa individual health benefit reinsurance association. This provision takes effect upon enactment and applies retroactively to January 1, 2020.