HF 2792 (LSB 5008HV (2) 91)

HOUSE FILE 2792

BY  COMMITTEE ON APPROPRIATIONS

(SUCCESSOR TO HSB 782)

A BILL FOR

An Act relating to and making appropriations from the rebuild Iowa infrastructure fund, technology reinvestment fund, and renewable fuel infrastructure fund, providing for related matters including financial assistance eligibility for regional sports authority districts and department of health and human services information technology systems, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
REBUILD IOWA INFRASTRUCTURE FUND

    Section 1.  REBUILD IOWA INFRASTRUCTURE FUND —— APPROPRIATIONS.  There is appropriated from the rebuild Iowa infrastructure fund created in section 8.57 to the following state entities for the following fiscal years, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   1.  DEPARTMENT OF ADMINISTRATIVE SERVICES
   For maintenance projects at the Terrace Hill facility:
   FY 2026-2027:
   ...................................................................... $  1,000,000

   2.  DEPARTMENT OF AGRICULTURE AND LAND STEWARDSHIP
   a.  (1)  For deposit in the water quality initiative fund created in section 466B.45 for purposes of supporting the water quality initiative administered by the division of soil conservation and water quality as provided in section 466B.42, including salaries, support, maintenance, and miscellaneous purposes, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  8,200,000

   (2)  (a)  The moneys appropriated in this lettered paragraph shall be used to support demonstration projects in subwatersheds as designated by the department that are part of high-priority watersheds identified by the water resources coordinating council.
   (b)  The moneys appropriated in this lettered paragraph shall be used to support demonstration projects in watersheds generally, including regional watersheds, as designated by the division, and high-priority watersheds identified by the water resources coordinating council.
   (3)  In supporting projects in watersheds and subwatersheds as provided in subparagraph (2), all of the following apply:
   (a)  The demonstration projects must utilize water quality practices as described in the latest revision of the document entitled “Iowa Nutrient Reduction Strategy” initially presented in November 2012 by the department of agriculture and land stewardship, the department of natural resources, and Iowa state university of science and technology.
   (b)  The division shall implement demonstration projects as provided in subparagraph division (a) by providing for participation by persons who hold a legal interest in agricultural land used in farming. To every extent practicable, the division shall provide for collaborative participation by such persons who hold a legal interest in agricultural land located within the same subwatershed.
   (c)  The division shall implement demonstration projects on a cost-share basis as determined by the division. Except for edge-of-field practices, the state’s share of the amount shall not exceed 50 percent of the estimated cost of establishing the practice as determined by the division or 50 percent of the actual cost of establishing the practice, whichever is less.
   (d)  The demonstration projects shall be used to educate other persons about the feasibility and value of establishing similar water quality practices. The division shall promote field day events for purposes of allowing interested persons to establish water quality practices on such persons’ agricultural land.
   (e)  The division shall conduct water quality evaluations within supported subwatersheds. Within a reasonable period after accumulating information from such evaluations, the division shall create an aggregated database of water quality practices. Any information identifying a person holding a legal interest in agricultural land or specific agricultural land shall be a confidential record.
   (4)  The moneys appropriated in this lettered paragraph shall be used to support education and outreach in a manner that encourages persons who hold a legal interest in agricultural land used for farming to implement water quality practices, including the establishment of such practices in watersheds generally, and not limited to subwatersheds or high-priority watersheds.
   (5)  The moneys appropriated in this lettered paragraph may be used to contract with persons to coordinate the implementation of efforts provided in this lettered paragraph.
   (6)  The moneys appropriated in this lettered paragraph may be used by the department to support urban soil and water conservation efforts, which may include but are not limited to management practices related to bioretention, landscaping, the use of permeable or pervious pavement, and soil quality restoration. The moneys shall be allocated on a cost-share basis as provided in chapter 161A.
   (7)  Notwithstanding any other provision of law to the contrary, the department may use moneys appropriated in this lettered paragraph to carry out the provisions of this lettered paragraph on a cost-share basis in combination with other moneys available to the department from a state or federal source.
   (8)  Not more than 10 percent of the moneys appropriated in this lettered paragraph may be used for costs of administration and implementation of the water quality initiative administered by the division.
   b.  (1)  For updating the maximum return to nitrogen modeling system for fertilizer management, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  1,000,000

   (2)  Any information received, collected, or held for purposes of this lettered paragraph is a confidential record exempt from public release if the information identifies a person who holds a legal interest in agricultural land or who has previously held a legal interest in agricultural land, a person who is involved or who was previously involved in managing the agricultural land or producing crops or livestock on the agricultural land, or the identifiable location of the agricultural land.
   3.  DEPARTMENT FOR THE BLIND
   For building repairs for the building located at 524 Fourth Street, Des Moines, Iowa:
   FY 2026-2027:
   ...................................................................... $    250,000

   4.  DEPARTMENT OF CORRECTIONS
   For conducting a study to determine the anticipated costs associated with installing air conditioning at the Mount Pleasant correctional facility, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $     67,000

   5.  ECONOMIC DEVELOPMENT AUTHORITY
   a.  For deposit in the community attraction and tourism fund created in section 15F.204, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $ 10,000,000

   b.  For deposit in the destination Iowa fund created in section 15.281, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $ 10,000,000

   c.  For grants to nonprofit organizations committed to strengthening communities through youth development, healthy living, and social responsibility for costs associated with the renovation and maintenance of facility infrastructure at facilities located in cities with a population of less than 28,000 according to the 2020 federal decennial census:
   FY 2026-2027:
   ...................................................................... $    250,000

   d.  For deposit in the strategic infrastructure program fund described in section 15.313, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $ 10,000,000

   e.  For deposit in the local government shared-services grant fund established in section 28E.20, if enacted by 2026 Iowa Acts, Senate Study Bill 3034, section 95, 2026 Iowa Acts, House Study Bill 563, section 95, or successor legislation, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $ 10,000,000

   f.  For a grant to a nonprofit organization located in a city with a population between 2,000 and 3,000 according to the 2020 federal decennial census, for the final construction costs of a presidential library:
   FY 2026-2027:
   ...................................................................... $  1,000,000

   g.  For equal distribution to regional sports authority districts certified by the authority pursuant to section 15E.321, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $    750,000

   h.  For providing financial assistance to a city or nonprofit organization hosting the national junior olympics, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $    250,000

   i.  For providing a grant to the entity in possession of the U.S.S. Iowa (BB-61) for maintaining the battleship’s deck, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $    750,000

   FY 2027-2028:
   ...................................................................... $    750,000

   FY 2028-2029:
   ...................................................................... $    750,000

   FY 2029-2030:
   ...................................................................... $    750,000

   6.  DEPARTMENT OF EDUCATION
   For conducting a study to determine the anticipated costs associated with repairing the roof of the Giangreco building and for related design costs, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $    600,000

   7.  IOWA LAW ENFORCEMENT ACADEMY
   For construction of a firearms range at Camp Dodge:
   FY 2026-2027:
   ...................................................................... $  3,700,000

   8.  DEPARTMENT OF NATURAL RESOURCES
   a.  For implementation of lake projects that have established watershed improvement initiatives and community support in accordance with the department’s annual lake restoration plan and report, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  9,600,000

   b.  For state park infrastructure improvements:
   FY 2026-2027:
   ...................................................................... $  5,000,000

   c.  For water trails and low head dam safety grants, including grants for projects relating to eligible water bodies, as defined in section 456A.33C, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  1,500,000

   d.  For providing funding assistance to eligible communities, as described in section 455E.11, subsection 2, paragraph “a”, subparagraph (1), subparagraph division (d), to address abandoned buildings by promoting waste abatement, diversion, selective dismantlement of building components, and recycling, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  1,000,000

   e.  (1)  For increasing the capacity to park vehicles at designated parking areas in state parks, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  1,000,000

   (2)  The department of natural resources shall prioritize adding the highest total number of additional parking spaces at designated parking areas in state parks regardless of the material used for the designated parking areas, including but not limited to gravel.
   9.  DEPARTMENT OF PUBLIC DEFENSE
   a.  For major maintenance projects at national guard armories and facilities:
   FY 2026-2027:
   ...................................................................... $  2,100,000

   b.  For improvement projects for Iowa national guard installations and readiness centers to support operations and training requirements:
   FY 2026-2027:
   ...................................................................... $  2,100,000

   c.  For construction improvement projects at the Camp Dodge facility:
   FY 2026-2027:
   ...................................................................... $    550,000

   d.  For repairing, improving, and replacing, as applicable, the runway in Sioux City used by the 185th air refueling wing:
   FY 2026-2027:
   ...................................................................... $ 10,000,000

   e.  The department of public defense shall report to the general assembly by December 15, 2026, regarding the projects the department has funded or intends to fund from moneys appropriated to the department pursuant to paragraphs “a”, “b”, and “c”.
   10.  DEPARTMENT OF PUBLIC SAFETY
   For payments and other costs due under a financing agreement entered into by the treasurer of state for building the statewide interoperable communications system pursuant to section 29C.23, subsection 2, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  2,846,011

   11.  BOARD OF REGENTS
   a.  For allocation by the state board of regents to the state university of Iowa, Iowa state university of science and technology, and the university of northern Iowa to reimburse the institutions for deficiencies in the operating funds resulting from the pledging of tuition, student fees and charges, and institutional income to finance the cost of providing academic and administrative buildings and facilities and utility services at the institutions:
   FY 2026-2027:
   ...................................................................... $ 25,000,000

   b.  For renovation and construction of the public policy center at the commons at the university of northern Iowa:
   FY 2026-2027:
   ...................................................................... $  6,000,000

   FY 2027-2028:
   ...................................................................... $  7,000,000

   FY 2028-2029:
   ...................................................................... $  7,000,000

   c.  For renovation and construction of the nursing simulation laboratory at the state university of Iowa:
   FY 2026-2027:
   ...................................................................... $  7,000,000

   FY 2027-2028:
   ...................................................................... $  7,000,000

   FY 2028-2029:
   ...................................................................... $  6,000,000

   12.  DEPARTMENT OF TRANSPORTATION
   a.  For acquiring, constructing, and improving recreational trails within the state:
   FY 2026-2027:
   ...................................................................... $  2,500,000

   b.  For deposit in the public transit infrastructure grant fund created in section 324A.6A, for projects that meet the definition of vertical infrastructure in section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  1,200,000

   c.  For deposit in the railroad revolving loan and grant fund created in section 327H.20A, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  2,000,000

   d.  For vertical infrastructure improvements at commercial service airports within the state:
   FY 2026-2027:
   ...................................................................... $  1,900,000

   e.  For vertical infrastructure improvements at general aviation airports within the state:
   FY 2026-2027:
   ...................................................................... $  1,000,000

   f.  For matching the funding requirements necessary to receive federal grants awarded to improve public transit by replacing vehicles and constructing or expanding vehicle facilities, notwithstanding section 8.57, subsection 3, paragraph “c”:
   FY 2026-2027:
   ...................................................................... $  3,300,000

   g.  For deposit in the railway tracks overpass and underpass fund created in section 307.19, if enacted by 2026 Iowa Acts, House File 882, section 1, or successor legislation:
   FY 2026-2027:
   ...................................................................... $  5,000,000

   FY 2027-2028:
   ...................................................................... $  5,000,000

   FY 2028-2029:
   ...................................................................... $  5,000,000

   FY 2029-2030:
   ...................................................................... $  5,000,000

   FY 2030-2031:
   ...................................................................... $  5,000,000

   13.  TREASURER OF STATE
   For distribution in accordance with chapter 174 to qualified fairs that belong to the association of Iowa fairs for county fair vertical infrastructure improvements:
   FY 2026-2027:
   ...................................................................... $  1,060,000

   14.  DEPARTMENT OF VETERANS AFFAIRS
   For repairing, improving, and replacing, as applicable, sidewalks at the Iowa veterans home:
   FY 2026-2027:
   ...................................................................... $    180,000
    Sec. 2.  REVERSION.  For purposes of section 8.33, unless specifically provided otherwise, unencumbered or unobligated moneys from an appropriation made in this division of this Act shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends two years after the end of the fiscal year for which the appropriation is made. However, if the project or projects for which such appropriation was made are completed in an earlier fiscal year, unencumbered or unobligated moneys shall revert at the close of that same fiscal year.
    Sec. 3.  Section 2.12B, subsection 2, Code 2026, is amended to read as follows:
   2.  There is appropriated from the rebuild Iowa infrastructure fund for deposit in the state capitol maintenance fund, for the fiscal year beginning July 1, 2018 2026, and for each fiscal year thereafter, the sum of five seven hundred fifty thousand dollars.
DIVISION II
TECHNOLOGY REINVESTMENT FUND

    Sec. 4.  TECHNOLOGY REINVESTMENT FUND —— APPROPRIATIONS.  There is appropriated from the technology reinvestment fund created in section 8.57C to the following state entities for the fiscal year beginning July 1, 2026, and ending June 30, 2027, the following amounts, or so much thereof as is necessary, to be used for the purposes designated:
   1.  DEPARTMENT OF CORRECTIONS
   For technology projects and upgrades: 
   ...................................................................... $    697,425

   2.  DEPARTMENT OF EDUCATION
   a.  (1)  For the continued development and implementation of an educational data warehouse that will be utilized by teachers, parents, school district administrators, area education agency staff, department of education staff, and policymakers:
   ...................................................................... $    600,000

   (2)  Of the moneys appropriated in this lettered paragraph, the department may use a portion for an e-transcript data system capable of tracking students throughout the students’ education via interconnectivity with multiple schools.
   b.  For maintenance and lease costs associated with connections for part III of the Iowa communications network:
   ...................................................................... $  2,727,000

   3.  DEPARTMENT OF HEALTH AND HUMAN SERVICES
   a.  For costs associated with implementing Medicaid work requirements, new eligibility redetermination requirements, and required information technology changes pursuant to federal Pub. L. No. 119-21, commonly referred to as the One Big Beautiful Bill Act:
   ...................................................................... $  3,473,690

   b.  For technology costs associated with the state poison control center:
   ...................................................................... $     42,080

   4.  DEPARTMENT OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT
   For the continuing implementation of a statewide mass notification and emergency messaging system:
   ...................................................................... $    400,000

   5.  DEPARTMENT OF MANAGEMENT
   a.  For the continued development and implementation of a searchable database that can be placed on the internet for budget and financial information:
   ...................................................................... $     45,000

   b.  For the continued development and implementation of the comprehensive electronic grant management system:
   ...................................................................... $     70,000

   c.  For the upgrade of the local government budget and property tax system:
   ...................................................................... $    120,000

   d.  For the annual licensing of a searchable database that is placed on the internet for budget and financial information:
   ...................................................................... $    358,429

   e.  For the security office of the chief information officer, including for statewide endpoint detection and response, cybersecurity incident investigation response, and miscellaneous purposes:
   ...................................................................... $  2,947,658

   f.  For the cost of equipment and computer software for the continued development and implementation of the Iowa integrated justice system:
   ...................................................................... $  1,400,000

   g.  For costs associated with the justice enterprise data warehouse:
   ...................................................................... $    282,664

   h.  For costs associated with the enterprise artificial intelligence capacity expansion:
   ...................................................................... $  2,510,000

   i.  For costs associated with the modernization of the mobile architecture and communications handling program and the traffic and criminal software program:
   ...................................................................... $  2,000,000

   6.  DEPARTMENT OF PUBLIC SAFETY
   For costs associated with a new digital evidence management system:
   ...................................................................... $    300,000

   7.  DEPARTMENT OF TRANSPORTATION
   For costs associated with motor vehicle division systems modernization:
   ...................................................................... $ 20,000,000

   8.  TREASURER OF STATE
   a.  For the ongoing costs associated with software used for investment tracking:
   ...................................................................... $    192,000

   b.  For the ongoing costs associated with software used for banking reconciliations:
   ...................................................................... $    228,000
    Sec. 5.  REVERSION.  For purposes of section 8.33, unless specifically provided otherwise, unencumbered or unobligated moneys from an appropriation made in this division of this Act shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends two years after the end of the fiscal year for which the appropriation is made. However, if the project or projects for which such appropriation was made are completed in an earlier fiscal year, unencumbered or unobligated moneys shall revert at the close of that same fiscal year.
    Sec. 6.  Section 8.57C, subsection 3, Code 2026, is amended to read as follows:
   3.  a.  There is appropriated from the general fund of the state to the technology reinvestment fund for the fiscal year beginning July 1, 2026 2027, and for each fiscal year thereafter, the sum of seventeen million five hundred thousand dollars.
   b.  There is appropriated from the rebuild Iowa infrastructure fund for the fiscal year beginning July 1, 2025 2026, and ending June 30, 2026 2027, the sum of eighteen million two hundred sixty-nine thousand two hundred seventeen thirty-seven million two hundred ninety-one thousand six hundred forty-one dollars to the technology reinvestment fund, notwithstanding section 8.57, subsection 3, paragraph “c”.
DIVISION III
CHANGES TO PRIOR APPROPRIATIONS

    Sec. 7.  2023 Iowa Acts, chapter 118, section 2, is amended to read as follows:
   SEC. 2.  REVERSION.
   1.  For purposes of section 8.33, unless specifically provided in subsection 2 or otherwise, unencumbered or unobligated moneys from an appropriation made in this division of this Act shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends two years after the end of the fiscal year for which the appropriation is made. However, if the project or projects for which such appropriation was made are completed in an earlier fiscal year, unencumbered or unobligated moneys shall revert at the close of that same fiscal year.
   2.  For purposes of section 8.33, unencumbered or unobligated moneys from an appropriation made in section 1, subsection 12, paragraph “f”, of this 2023 Iowa Act shall not revert but shall remain available for expenditure for the purposes designated until December 31, 2026.
    Sec. 8.  2024 Iowa Acts, chapter 1155, section 1, subsection 1, paragraph b, subparagraph (1), as amended by 2025 Iowa Acts, chapter 167, section 14, is amended to read as follows:
   (1)  Of the amount appropriated in this paragraph, the department of administrative services shall allocate and use the moneys necessary to improve and repair the steps on the west side of the exterior of the capitol building and for projects on the east side of the exterior of the capitol building, as directed by the legislative branch, by the close of the fiscal year that begins July 1, 2025 October 31, 2026.
    Sec. 9.  2024 Iowa Acts, chapter 1155, section 2, is amended to read as follows:
   SEC. 2.  REVERSION.
   1.  For purposes of section 8.33, unless specifically provided in subsection 2 or otherwise, unencumbered or unobligated moneys from an appropriation made in this division of this Act shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends two years after the end of the fiscal year for which the appropriation is made. However, if the project or projects for which such appropriation was made are completed in an earlier fiscal year, unencumbered or unobligated moneys shall revert at the close of that same fiscal year.
   2.  For purposes of section 8.33, unencumbered or unobligated moneys from an appropriation made for the fiscal year beginning July 1, 2024, in section 1, subsection 5, paragraphs “b”, “d”, and “e”, of this 2024 Iowa Act shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year that ends three years after the end of the fiscal year for which the appropriation was made, or until the project for which the appropriation was made is completed, whichever is earlier.
    Sec. 10.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION IV
RENEWABLE FUEL INFRASTRUCTURE FUND

    Sec. 11.  STANDING APPROPRIATION —— FY 2026-2027.  In lieu of the appropriation provided in section 159A.17, the appropriation for the fiscal year beginning July 1, 2026, and ending June 30, 2027, from the general fund of the state to the renewable fuel infrastructure fund created in section 159A.16 for the fiscal year is zero.
DIVISION V
REGIONAL SPORTS AUTHORITY DISTRICTS —— FINANCIAL ASSISTANCE ELIGIBILITY

    Sec. 12.  Section 15E.321, Code 2026, is amended to read as follows:
   15E.321  Regional sports authority districts.
   1.  As used in this section, “district”:
   a.  “District” means a regional sports authority district certified under this section.
   b.  “Entity” means an Iowa nonprofit organization established to promote economic development and tourism in an area within the state.
   2.  a.  A convention and visitors bureau An entity may apply to the authority for certification of a regional sports authority district which may include more than one city and more than one convention and visitors bureau within the district and for financial assistance. The authority shall not certify more than ten such districts.
   b.  If more than ten applications are received in any certification year, the The authority shall certify the districts on a competitive basis. In evaluating the applications an application for certification and financial assistance, the authority shall consider the economic impact to the activities proposed in the application provide to the state of the activities proposed in the application, the geographic diversity of the districts applying, the number of unique and innovative activities proposed to be supported by the district, and any other factors the authority deems relevant.
   3.  Each district shall actively promote youth sports, high school athletic activities, the special olympics, and other nonprofessional physical sporting events in the local area.
   4.  Each district may apply for and receive financial assistance under the sports tourism program established by the authority pursuant to section 15F.401.
   5.  Each district shall be governed by a seven-member board consisting of seven members appointed by the convention and visitors bureau filing the application pursuant to subsection 2. At least three members of the board shall consist of city council members of any cities located in the district. Each board shall be responsible for administering programs designed to promote the activities enumerated in subsection 3.  A district that received financial assistance from the authority for an activity described in an application submitted pursuant to subsection 2 shall submit a comprehensive report to the authority not more than thirty days after the final date of the activity, unless a later date is approved in writing by the authority. The comprehensive report must detail the return on investment, number of first-time visitors to the state, and total number of hotel rooms occupied as a result of the activity. The authority may request additional information if the authority deems it necessary to evaluate an activity.
DIVISION VI
HEALTH AND HUMAN SERVICES —— INFORMATION TECHNOLOGY

    Sec. 13.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— LIMITATION ON OBLIGATION OF MONEYS —— INFORMATION TECHNOLOGY MODERNIZATION STUDY COMMITTEE.
   1.  Limitation on obligation of moneys.
   a.  Except as provided in paragraph “b”, and notwithstanding any other provision of law to the contrary, for the fiscal year beginning July 1, 2026, the department of health and human services shall not enter into, amend, or extend a contract, purchase order, interagency agreement, or other financial obligation that will cost more than five million dollars, individually or collectively, or commit the state to multiyear financial obligations. This limitation applies to major information technology system replacement, redevelopment, or modernization, including but not limited to eligibility, benefits administration, child welfare, child support, child care, and Medicaid administration systems.
   b.  Paragraph “a” does not apply to information technology changes that are necessary solely to comply with federal Pub. L. No. 119-21, commonly referred to as the One Big Beautiful Bill Act, or state or federal law enacted to implement a provision of Pub. L. No. 119-21, if such law expressly requires near-term implementation and the changes do not materially advance broader system modernization or system replacement efforts beyond what is minimally required to comply with the applicable law.
   2.  Study committee.
   a.  The department of health and human services, in consultation with the legislative services agency and the department of management, shall establish an information technology modernization study committee on or before August 1, 2026, and the study committee shall conduct a comprehensive review of the department of health and human services’ information technology systems, data architecture, and modernization strategy.
   b.  The study committee must include but is not limited to all of the following members:
   (1)  One or more persons familiar with the information technology division and program division of the department of health and human services, appointed by the director of health and human services.
   (2)  One or more persons from the legislative services agency, appointed by the director of the legislative services agency.
   (3)  One or more persons from the division of information technology of the department of management, appointed by the director of the department of management.
   c.  The study committee must include all of the following ex officio members:
   (1)  Three members of the senate, two appointed by the majority leader of the senate and one appointed by the minority leader of the senate.
   (2)  Three members of the house of representatives, two appointed by the speaker of the house of representatives and one appointed by the minority leader of the house of representatives.
   d.  The committee may invite other persons to participate in committee meetings, including but not limited to persons from private sector firms, academic experts, and subject matter experts with demonstrated experience in large-scale system integration, data governance, fraud detection, and artificial intelligence-enabled platforms.
   e.  The study committee shall examine all major information technology systems currently used by the department of health and human services, including legacy systems and recently implemented platforms, and shall do all of the following:
   (1)  Identify redundancies, fragmentations, and interoperability gaps among systems.
   (2)  Assess the department’s current ability to integrate data across programs and databases to detect errors, waste, fraud, and abuse.
   (3)  Evaluate options for developing or procuring a unified integrated architecture system capable of securely linking program databases and supporting advanced analytics and automation.
   (4)  Consider existing vendors supporting the department’s current systems and alternative solutions offered by firms and experts specializing in modern, artificial intelligence-first, or cloud-native system design.
   (5)  Identify governance, procurement, and oversight structures necessary to ensure cost control, transparency, and long-term sustainability.
   f.  The study committee shall prioritize identifying a long-term solution that integrates department of health and human services databases across programs and enables timely detection of eligibility errors, improper payments, and fraudulent activity while reducing duplicative administrative processes.
   g.  The department of health and human services shall submit a report to the general assembly and the governor on or before January 1, 2027. The report must include the study committee’s findings, recommended statutory or budgetary changes, estimated costs and timelines, and options for phased implementation.
   3.  Repeal.  This section is repealed July 1, 2027.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to and makes appropriations from the rebuild Iowa infrastructure fund (RIIF), technology reinvestment fund (TRF), and renewable fuel infrastructure fund.
   REBUILD IOWA INFRASTRUCTURE FUND. The bill appropriates project funding for multiple fiscal years from RIIF for projects for the departments of administrative services (DAS), agriculture and land stewardship, the blind, corrections, education, natural resources, public defense, public safety, transportation (DOT), and veterans affairs, and for the economic development authority (IEDA), Iowa law enforcement academy, board of regents, and treasurer of state.
   TECHNOLOGY REINVESTMENT FUND. The bill appropriates project funding for FY 2026-2027 from TRF for projects for the departments of corrections, education, health and human services (HHS), homeland security and emergency management, management (DOM), public safety, and transportation, and for the treasurer of state. Code section 8.57C (TRF) is amended to provide that the standing appropriation to TRF from the general fund for fiscal years beginning on or after July 1, 2026, is changed to fiscal years beginning on or after July 1, 2027, and to provide for an appropriation to TRF from RIIF for FY 2026-2027.
   CHANGES TO PRIOR APPROPRIATIONS. The bill delays the reversion of an FY 2023-2024 appropriation from RIIF to DOT for vertical infrastructure improvements at commercial service airports within the state; an FY 2024-2025 appropriation from RIIF to HHS for patient door conversion at the unit located at the state mental health institute at Cherokee; an FY 2024-2025 appropriation from RIIF to HHS for renovation and expansion at the Iowa office of the state medical examiner building; and an FY 2024-2025 appropriation from RIIF to HHS for tunnel decentralization for the state resource center at Woodward. The bill amends the requirement for DAS to use an FY 2024-2025 appropriation from RIIF to improve and repair the steps on the west side of the exterior of the capitol building and for projects on the east side of the exterior of the capitol building by the close of the fiscal year that begins July 1, 2025, and instead authorizes DAS to use the appropriation until October 31, 2026. These provisions take effect upon enactment.
   RENEWABLE FUEL INFRASTRUCTURE FUND. The bill reduces the appropriation provided in Code section 159A.17 from the general fund to the renewable fuel infrastructure fund for FY 2026-2027 to zero.
   REGIONAL SPORTS AUTHORITY DISTRICTS —— FINANCIAL ASSISTANCE ELIGIBILITY. Under current law, IEDA may certify not more than 10 regional sports authority districts (RSAD) based on a convention and visitors bureau’s application for certification. Each RSAD is required to be governed by a board consisting of seven members appointed by the convention and visitors bureau filing the application. Each board is responsible for administering programs designed to promote youth sports, high school athletic activities, the special olympics, and other nonprofessional sporting events in the local area. A certified RSAD is eligible to apply to IEDA for financial assistance under the sports tourism infrastructure program administered under Code section 15F.401. A convention and visitors bureau is prohibited from receiving, in the same year, financial assistance under the sports tourism infrastructure program and financial assistance as part of an RSAD.
   The bill authorizes an Iowa nonprofit organization established to promote economic development and tourism in an area within the state, rather than a convention and visitors bureau, to apply for certification of RSADs and for financial assistance. The bill strikes the 10 RSAD certification cap and requires IEDA to certify RSADs on a competitive basis based on factors including the number of unique and innovative activities proposed to be supported by an RSAD. The bill strikes the RSAD board requirements and amends the active promotion requirements to include physical sporting events in an RSAD area rather than nonprofessional sporting events. The bill requires RSADs that receive financial assistance to submit a comprehensive report to IEDA not more than 30 days after the final date of the activity.
   HEALTH AND HUMAN SERVICES —— INFORMATION TECHNOLOGY. The bill prohibits HHS, for FY 2026-2027, from entering into, amending, or extending a financial obligation that will cost more than $5 million, individually or collectively, or committing the state to multiyear financial obligations for major information technology (IT) system replacement, redevelopment, or modernization. Additionally, HHS is required, in consultation with the legislative services agency and DOM, to establish an IT modernization study committee on or before August 1, 2026. The study committee, consisting of members and ex officio members described in the bill, is required to conduct a comprehensive review of HHS’s IT systems. HHS must submit a report to the general assembly and governor with the study committee’s findings, recommended statutory or budgetary changes, estimated costs and timelines, and options for phased implementation.