HF 2753 (LSB 2968HZ (3) 91)

HOUSE FILE 2753

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO HF 1047)
(SUCCESSOR TO HSB 333)

A BILL FOR

An Act relating to prison infrastructure.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 12.80, subsection 4, Code 2026, is amended to read as follows:
   4.  The net proceeds from the bonds issued under this section shall be deposited into the FY 2009 prison bonding fund new prison construction account of the Iowa prison infrastructure fund created in section 602.8108A.
    Sec. 2.  Section 602.8108A, Code 2026, is amended to read as follows:
   602.8108A  Prison Iowa prison infrastructure fund —— new prison construction account —— prison recidivism reduction account.
   1.  The Iowa prison infrastructure fund is created and established as a separate and distinct fund in the state treasury. Notwithstanding any other provision of this chapter to the contrary, the first eight million dollars and, beginning July 1, 1997, the first nine million five hundred thousand dollars, of moneys remitted to the treasurer of state from fines, fees, costs, and forfeited bail collected by the clerks of the district court in criminal cases, including those collected for both scheduled and nonscheduled violations, collected in each fiscal year commencing with the fiscal year beginning July 1, 1995, shall be deposited in the fund. Beginning July 1, 2009, the The treasurer of state shall certify to the judicial branch the annual amount of funds moneys necessary to be remitted for deposit into the fund for that fiscal year and such moneys shall be remitted to the treasurer of state from fines, fees, costs, and forfeited bail collected by the clerks of the district court in criminal cases, including those collected for both scheduled and nonscheduled violations, for debt payments and deposits expected to be paid from the fund. Interest Notwithstanding section 12C.7, subsection 2, interest and other income earned by the fund shall be deposited in the fund. However, beginning with the fiscal year beginning July 1, 1998, all fines and fees attributable to commercial vehicle violation citations issued after July 1, 1998, shall be deposited as provided in section 602.8108, subsection 8. The moneys in the fund are appropriated and shall have priority and precedence for the purpose of paying the principal of, premium, if any, and interest on bonds issued by the Iowa finance authority under section 16.177. Any remaining moneys not otherwise appropriated for purposes of paying the principal, premium, and interest on the bonds issued by the Iowa finance authority pursuant to section 16.177 shall be available and appropriated to the treasurer of state pursuant to section 12.80. Except as otherwise provided in subsection 2, amounts in the funds fund shall not be subject to appropriation for any purpose by the general assembly, but shall be used only for the purposes set forth in this section. The treasurer of state shall act as custodian of the fund and disburse amounts contained in it the fund as directed by the department of corrections including the automatic disbursement of funds moneys pursuant to the terms of bond indentures and documents and security provisions to trustees and custodians. The treasurer of state is authorized to invest the funds moneys deposited in the fund subject to any limitations contained in any applicable bond proceedings. Any amounts remaining in the fund at the end of each fiscal year, other than moneys in the new prison construction account created in subsection 2 or the prison recidivism reduction account created in subsection 3, shall be transferred to the general fund of the state.
   2.  If the treasurer of state determines that bonds cannot be issued pursuant to this section and sections 12.80 and 16.177 or if there are any remaining moneys at the end of a fiscal year after the appropriations are paid pursuant to sections 12.80 and 16.177, the treasurer of state shall deposit the moneys in the prison infrastructure fund into the general fund of the state.  A new prison construction account is created within the Iowa prison infrastructure fund. For the fiscal year beginning July 1, 2026, and each fiscal year thereafter, if bonds pertaining to prison infrastructure financing for the Iowa state penitentiary are paid off, an amount equal to sixty-six and seven-tenths percent paid on such bonds for the fiscal year beginning July 1, 2025, shall be deposited in the new prison construction account from the Iowa prison infrastructure fund and shall only be used pursuant to an appropriation made by the general assembly for the construction of new prisons or the replacement of infrastructure at existing prisons. Notwithstanding section 8.33, moneys in the account that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the account shall be credited to the account.
   3.  A prison recidivism reduction account is created within the Iowa prison infrastructure fund. For the fiscal year beginning July 1, 2026, and each fiscal year thereafter, if bonds pertaining to prison infrastructure financing for the Iowa state penitentiary are paid off, an amount equal to thirty-three and three-tenths percent paid on such bonds for the fiscal year beginning July 1, 2025, shall be deposited in the prison recidivism reduction account from the Iowa prison infrastructure fund and shall only be used pursuant to an appropriation made by the general assembly for the establishment of newly created or the expansion of existing programs identified by the department of corrections for the purpose of reducing recidivism of inmates at existing or newly constructed prisons. Notwithstanding section 8.33, moneys in the account that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the account shall be credited to the account.
    Sec. 3.  NEW SECTION.  904.115A  Infrastructure report by department.
   Annually, on or before January 15 of each year, the department shall report to the general assembly and the department of management the status of all infrastructure projects completed or in progress. The report must include a description of the project, the work completed, the total estimated cost of the project, a list of all revenue sources being used to fund the project, the amount of moneys expended, the amount of moneys obligated, and the date the project was completed or an estimated completion date of the project, where applicable.
    Sec. 4.  REPEAL.  Section 12.79, Code 2026, is repealed.
    Sec. 5.  LEGISLATIVE INTERIM STUDY COMMITTEE —— CONSTRUCTION AND OPERATION OF ADDITIONAL PRISON IN THE STATE.
   1.  The legislative council is requested to establish an interim study committee to meet during the 2026 legislative interim to explore and consider issues involving prison capacity and the feasibility of an additional prison or other prison housing options. The interim study committee shall consider all of the following:
   a.  Need.
   b.  Geographic locations.
   c.  Existing state infrastructure that could be converted to a prison.
   d.  The level of security classification most needed in the current system.
   e.  The possibility of adding additional units to existing prisons.
   f.  The feasibility of a new prison operation, public or otherwise, or the expansion of the current state operation.
   g.  Advancements in prison technology that increase prison efficiency.
   h.  Staffing needs.
   i.  Programs that can be established or expanded by the department of corrections for the purpose of reducing the recidivism rate of inmates.
   2.  a.  The interim study committee shall include all of the following members:
   (1)  Two senators appointed by the majority leader of the senate.
   (2)  One senator appointed by the minority leader of the senate.
   (3)  Two representatives appointed by the speaker of the house of representatives.
   (4)  One representative appointed by the minority leader of the house of representatives.
   b.  The interim study committee shall elect one of its members as chairperson.
   3.  On or before December 18, 2026, the interim study committee shall submit a report to the general assembly and the governor.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a new prison construction account and a prison recidivism reduction account within the Iowa prison infrastructure (IPI) fund.
   Under current law, the treasurer of state is authorized to issue bonds to provide prison infrastructure financing (Code section 12.80) and the Iowa finance authority is authorized to issue bonds to provide prison infrastructure financing for projects approved for financing by the general assembly (Code section 16.177). In either case, the bonds may be paid from moneys in the IPI fund (Code section 602.8108A), which receives moneys each fiscal year from fines, fees, costs, and forfeited bail collected by the clerks of the district court in criminal cases.
   The bill provides that for FY 2026-2027, and each fiscal year thereafter, if infrastructure financing bonds pertaining to the Iowa state penitentiary (Fort Madison, Iowa) are paid off, an amount equal to 66.7 percent paid on such bonds for FY 2025-2026 shall be deposited into the new prison construction account from the IPI fund and shall only be used pursuant to an appropriation made by the general assembly for the construction of new prisons or the replacement of infrastructure at existing prisons. Moneys in the account do not revert and are not deposited in the general fund of the state at the end of each fiscal year (unlike the other moneys in the IPI fund).
   The bill also provides that for FY 2026-2027, and each fiscal year thereafter, if infrastructure financing bonds pertaining to the Iowa state penitentiary are paid off, an amount equal to 33.3 percent paid on such bonds for FY 2025-2026 shall be deposited in the prison recidivism reduction account from the Iowa prison infrastructure fund and shall only be used pursuant to an appropriation made by the general assembly for the establishment of newly created or the expansion of existing programs identified by the department of corrections for the purpose of reducing recidivism of inmates at existing or newly constructed prisons. Moneys in the account do not revert and are not deposited in the general fund of the state at the end of each fiscal year (unlike the other moneys in the IPI fund).
   The bill repeals the FY 2009 prison bonding fund (Code section 12.79) and moves the infrastructure project reporting requirement for the department of corrections in that Code section to Code chapter 904 (department of corrections).
   The bill requests that the legislative council establish an interim study committee to explore and consider issues involving prison capacity and the feasibility of an additional prison or other prison housing options. The interim study committee is directed to consider factors set forth in the bill. The bill requires the interim study committee to, on or before December 18, 2026, submit a report to the general assembly and the governor.