H.F. 2753 Section 1. Section 12.80, subsection 4, Code 2026, is 1 amended to read as follows: 2 4. The net proceeds from the bonds issued under this section 3 shall be deposited into the FY 2009 prison bonding fund new 4 prison construction account of the Iowa prison infrastructure 5 fund created in section 602.8108A . 6 Sec. 2. Section 602.8108A, Code 2026, is amended to read as 7 follows: 8 602.8108A Prison Iowa prison infrastructure fund —— new 9 prison construction account —— prison recidivism reduction 10 account . 11 1. The Iowa prison infrastructure fund is created and 12 established as a separate and distinct fund in the state 13 treasury. Notwithstanding any other provision of this chapter 14 to the contrary, the first eight million dollars and, beginning 15 July 1, 1997, the first nine million five hundred thousand 16 dollars , of moneys remitted to the treasurer of state from 17 fines, fees, costs, and forfeited bail collected by the clerks 18 of the district court in criminal cases, including those 19 collected for both scheduled and nonscheduled violations, 20 collected in each fiscal year commencing with the fiscal 21 year beginning July 1, 1995, shall be deposited in the fund. 22 Beginning July 1, 2009, the The treasurer of state shall 23 certify to the judicial branch the annual amount of funds 24 moneys necessary to be remitted for deposit into the fund for 25 that fiscal year and such moneys shall be remitted to the 26 treasurer of state from fines, fees, costs, and forfeited bail 27 collected by the clerks of the district court in criminal 28 cases, including those collected for both scheduled and 29 nonscheduled violations, for debt payments and deposits 30 expected to be paid from the fund. Interest Notwithstanding 31 section 12C.7, subsection 2, interest and other income earned 32 by the fund shall be deposited in the fund. However, beginning 33 with the fiscal year beginning July 1, 1998, all fines and 34 fees attributable to commercial vehicle violation citations 35 -1- LSB 2968HZ (3) 91 as/ns 1/ 6

H.F. 2753 issued after July 1, 1998, shall be deposited as provided 1 in section 602.8108, subsection 8 . The moneys in the fund 2 are appropriated and shall have priority and precedence for 3 the purpose of paying the principal of, premium, if any, 4 and interest on bonds issued by the Iowa finance authority 5 under section 16.177 . Any remaining moneys not otherwise 6 appropriated for purposes of paying the principal, premium, 7 and interest on the bonds issued by the Iowa finance authority 8 pursuant to section 16.177 shall be available and appropriated 9 to the treasurer of state pursuant to section 12.80 . Except as 10 otherwise provided in subsection 2 , amounts in the funds fund 11 shall not be subject to appropriation for any purpose by the 12 general assembly, but shall be used only for the purposes set 13 forth in this section . The treasurer of state shall act as 14 custodian of the fund and disburse amounts contained in it the 15 fund as directed by the department of corrections including the 16 automatic disbursement of funds moneys pursuant to the terms 17 of bond indentures and documents and security provisions to 18 trustees and custodians. The treasurer of state is authorized 19 to invest the funds moneys deposited in the fund subject to 20 any limitations contained in any applicable bond proceedings. 21 Any amounts remaining in the fund at the end of each fiscal 22 year , other than moneys in the new prison construction account 23 created in subsection 2 or the prison recidivism reduction 24 account created in subsection 3, shall be transferred to the 25 general fund of the state. 26 2. If the treasurer of state determines that bonds cannot be 27 issued pursuant to this section and sections 12.80 and 16.177 28 or if there are any remaining moneys at the end of a fiscal year 29 after the appropriations are paid pursuant to sections 12.80 30 and 16.177 , the treasurer of state shall deposit the moneys in 31 the prison infrastructure fund into the general fund of the 32 state. A new prison construction account is created within the 33 Iowa prison infrastructure fund. For the fiscal year beginning 34 July 1, 2026, and each fiscal year thereafter, if bonds 35 -2- LSB 2968HZ (3) 91 as/ns 2/ 6

H.F. 2753 pertaining to prison infrastructure financing for the Iowa 1 state penitentiary are paid off, an amount equal to sixty-six 2 and seven-tenths percent paid on such bonds for the fiscal 3 year beginning July 1, 2025, shall be deposited in the new 4 prison construction account from the Iowa prison infrastructure 5 fund and shall only be used pursuant to an appropriation made 6 by the general assembly for the construction of new prisons 7 or the replacement of infrastructure at existing prisons. 8 Notwithstanding section 8.33, moneys in the account that remain 9 unencumbered or unobligated at the close of a fiscal year shall 10 not revert but shall remain available for expenditure for the 11 purposes designated. Notwithstanding section 12C.7, subsection 12 2, interest or earnings on moneys in the account shall be 13 credited to the account. 14 3. A prison recidivism reduction account is created within 15 the Iowa prison infrastructure fund. For the fiscal year 16 beginning July 1, 2026, and each fiscal year thereafter, if 17 bonds pertaining to prison infrastructure financing for the 18 Iowa state penitentiary are paid off, an amount equal to 19 thirty-three and three-tenths percent paid on such bonds for 20 the fiscal year beginning July 1, 2025, shall be deposited 21 in the prison recidivism reduction account from the Iowa 22 prison infrastructure fund and shall only be used pursuant 23 to an appropriation made by the general assembly for the 24 establishment of newly created or the expansion of existing 25 programs identified by the department of corrections for the 26 purpose of reducing recidivism of inmates at existing or 27 newly constructed prisons. Notwithstanding section 8.33, 28 moneys in the account that remain unencumbered or unobligated 29 at the close of a fiscal year shall not revert but shall 30 remain available for expenditure for the purposes designated. 31 Notwithstanding section 12C.7, subsection 2, interest or 32 earnings on moneys in the account shall be credited to the 33 account. 34 Sec. 3. NEW SECTION . 904.115A Infrastructure report by 35 -3- LSB 2968HZ (3) 91 as/ns 3/ 6

H.F. 2753 department. 1 Annually, on or before January 15 of each year, the 2 department shall report to the general assembly and the 3 department of management the status of all infrastructure 4 projects completed or in progress. The report must include 5 a description of the project, the work completed, the total 6 estimated cost of the project, a list of all revenue sources 7 being used to fund the project, the amount of moneys expended, 8 the amount of moneys obligated, and the date the project was 9 completed or an estimated completion date of the project, where 10 applicable. 11 Sec. 4. REPEAL. Section 12.79, Code 2026, is repealed. 12 Sec. 5. LEGISLATIVE INTERIM STUDY COMMITTEE —— CONSTRUCTION 13 AND OPERATION OF ADDITIONAL PRISON IN THE STATE. 14 1. The legislative council is requested to establish an 15 interim study committee to meet during the 2026 legislative 16 interim to explore and consider issues involving prison 17 capacity and the feasibility of an additional prison or other 18 prison housing options. The interim study committee shall 19 consider all of the following: 20 a. Need. 21 b. Geographic locations. 22 c. Existing state infrastructure that could be converted to 23 a prison. 24 d. The level of security classification most needed in the 25 current system. 26 e. The possibility of adding additional units to existing 27 prisons. 28 f. The feasibility of a new prison operation, public or 29 otherwise, or the expansion of the current state operation. 30 g. Advancements in prison technology that increase prison 31 efficiency. 32 h. Staffing needs. 33 i. Programs that can be established or expanded by the 34 department of corrections for the purpose of reducing the 35 -4- LSB 2968HZ (3) 91 as/ns 4/ 6

H.F. 2753 recidivism rate of inmates. 1 2. a. The interim study committee shall include all of the 2 following members: 3 (1) Two senators appointed by the majority leader of the 4 senate. 5 (2) One senator appointed by the minority leader of the 6 senate. 7 (3) Two representatives appointed by the speaker of the 8 house of representatives. 9 (4) One representative appointed by the minority leader of 10 the house of representatives. 11 b. The interim study committee shall elect one of its 12 members as chairperson. 13 3. On or before December 18, 2026, the interim study 14 committee shall submit a report to the general assembly and the 15 governor. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 This bill creates a new prison construction account and 20 a prison recidivism reduction account within the Iowa prison 21 infrastructure (IPI) fund. 22 Under current law, the treasurer of state is authorized to 23 issue bonds to provide prison infrastructure financing (Code 24 section 12.80) and the Iowa finance authority is authorized 25 to issue bonds to provide prison infrastructure financing for 26 projects approved for financing by the general assembly (Code 27 section 16.177). In either case, the bonds may be paid from 28 moneys in the IPI fund (Code section 602.8108A), which receives 29 moneys each fiscal year from fines, fees, costs, and forfeited 30 bail collected by the clerks of the district court in criminal 31 cases. 32 The bill provides that for FY 2026-2027, and each fiscal 33 year thereafter, if infrastructure financing bonds pertaining 34 to the Iowa state penitentiary (Fort Madison, Iowa) are paid 35 -5- LSB 2968HZ (3) 91 as/ns 5/ 6

H.F. 2753 off, an amount equal to 66.7 percent paid on such bonds for FY 1 2025-2026 shall be deposited into the new prison construction 2 account from the IPI fund and shall only be used pursuant to an 3 appropriation made by the general assembly for the construction 4 of new prisons or the replacement of infrastructure at existing 5 prisons. Moneys in the account do not revert and are not 6 deposited in the general fund of the state at the end of each 7 fiscal year (unlike the other moneys in the IPI fund). 8 The bill also provides that for FY 2026-2027, and each fiscal 9 year thereafter, if infrastructure financing bonds pertaining 10 to the Iowa state penitentiary are paid off, an amount equal 11 to 33.3 percent paid on such bonds for FY 2025-2026 shall 12 be deposited in the prison recidivism reduction account from 13 the Iowa prison infrastructure fund and shall only be used 14 pursuant to an appropriation made by the general assembly for 15 the establishment of newly created or the expansion of existing 16 programs identified by the department of corrections for the 17 purpose of reducing recidivism of inmates at existing or newly 18 constructed prisons. Moneys in the account do not revert and 19 are not deposited in the general fund of the state at the end of 20 each fiscal year (unlike the other moneys in the IPI fund). 21 The bill repeals the FY 2009 prison bonding fund (Code 22 section 12.79) and moves the infrastructure project reporting 23 requirement for the department of corrections in that Code 24 section to Code chapter 904 (department of corrections). 25 The bill requests that the legislative council establish 26 an interim study committee to explore and consider issues 27 involving prison capacity and the feasibility of an additional 28 prison or other prison housing options. The interim study 29 committee is directed to consider factors set forth in the 30 bill. The bill requires the interim study committee to, on 31 or before December 18, 2026, submit a report to the general 32 assembly and the governor. 33 -6- LSB 2968HZ (3) 91 as/ns 6/ 6