House Study Bill 335 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON MOHR) 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 2990YC (8) 91 ns/jh

H.F. _____ DIVISION I 1 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 2 AUTHORITY 3 Section 1. DEPARTMENT OF EDUCATION —— EDUCATION SUPPORT 4 PERSONNEL SALARY SUPPLEMENT —— FY 2025-2026. 5 1. There is appropriated from the general fund of the state 6 to the department of education for the fiscal year beginning 7 July 1, 2025, and ending June 30, 2026, the following amount, 8 or so much thereof as is necessary, to be used for the purposes 9 designated: 10 To supplement education support personnel compensation: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,000,000 12 2. Moneys appropriated in this section are miscellaneous 13 income as defined in section 257.2 and shall not be included 14 in any computation of district cost under chapter 257 for any 15 budget year. 16 3. Moneys appropriated in this section shall be used to 17 provide a funding supplement to each school district during the 18 fiscal year beginning July 1, 2025, to supplement education 19 support personnel compensation. 20 4. In order to receive the funding supplement, a school 21 district shall first report to the department of education 22 on or before July 1, 2025, the number of education support 23 personnel employed by the school district, including all 24 other information related to such personnel required by the 25 department of education. Each school district’s funding 26 supplement amount shall be equal to $14,000,000 multiplied by 27 the quotient of the school district’s budget enrollment for the 28 budget year beginning July 1, 2024, divided by the statewide 29 total budget enrollment for the budget year beginning July 1, 30 2024. 31 5. For purposes of this section, “education support 32 personnel” means regular and part-time employees of a school 33 district who are not salaried. 34 6. The payment of funding supplement amounts under this 35 -1- LSB 2990YC (8) 91 ns/jh 1/ 10

H.F. _____ section shall be paid by the department of education at the 1 same time and in the same manner as foundation aid is paid 2 under section 257.16 for the fiscal year beginning July 1, 3 2025, and may be included in the monthly payment of state aid 4 under section 257.16, subsection 2. 5 Sec. 2. DEPARTMENT OF EDUCATION —— EDUCATION SUPPORT 6 PERSONNEL SALARY SUPPLEMENT —— FY 2026-2027. 7 1. There is appropriated from the general fund of the state 8 to the department of education for the fiscal year beginning 9 July 1, 2026, and ending June 30, 2027, the following amount, 10 or so much thereof as is necessary, to be used for the purposes 11 designated: 12 To supplement education support personnel compensation: 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,000,000 14 2. Moneys appropriated in this section are miscellaneous 15 income as defined in section 257.2 and shall not be included 16 in any computation of district cost under chapter 257 for any 17 budget year. 18 3. Moneys appropriated in this section shall be used to 19 provide a funding supplement to each school district during the 20 fiscal year beginning July 1, 2026, to supplement education 21 support personnel compensation. 22 4. In order to receive the funding supplement, a school 23 district shall first report to the department of education 24 on or before July 1, 2026, the number of education support 25 personnel employed by the school district, including all 26 other information related to such personnel required by the 27 department of education. Each school district’s funding 28 supplement amount shall be equal to $14,000,000 multiplied by 29 the quotient of the school district’s budget enrollment for the 30 budget year beginning July 1, 2025, divided by the statewide 31 total budget enrollment for the budget year beginning July 1, 32 2025. 33 5. For purposes of this section, “education support 34 personnel” means regular and part-time employees of a school 35 -2- LSB 2990YC (8) 91 ns/jh 2/ 10

H.F. _____ district who are not salaried. 1 6. The payment of funding supplement amounts under this 2 section shall be paid by the department of education at the 3 same time and in the same manner as foundation aid is paid 4 under section 257.16 for the fiscal year beginning July 1, 5 2026, and may be included in the monthly payment of state aid 6 under section 257.16, subsection 2. 7 Sec. 3. LIMITATIONS OF STANDING APPROPRIATIONS —— FY 8 2025-2026. Notwithstanding the standing appropriation in the 9 following designated section for the fiscal year beginning July 10 1, 2025, and ending June 30, 2026, the amount appropriated from 11 the general fund of the state pursuant to that section for the 12 following designated purpose shall not exceed the following 13 amount: 14 For payment of claims for nonpublic school pupil 15 transportation under section 285.2 : 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,997,091 17 If total approved claims for reimbursement for nonpublic 18 school pupil transportation exceed the amount appropriated in 19 accordance with this section, the department of education shall 20 prorate the amount of each approved claim. 21 Sec. 4. INSTRUCTIONAL SUPPORT STATE AID —— FY 2025-2026. In 22 lieu of the appropriation provided in section 257.20, 23 subsection 2, the appropriation for the fiscal year 24 beginning July 1, 2025, and ending June 30, 2026, for paying 25 instructional support state aid under section 257.20 for the 26 fiscal year is zero. 27 Sec. 5. SPECIAL FUNDS —— SALARY ADJUSTMENTS —— FY 28 2025-2026. For the fiscal year beginning July 1, 2025, and 29 ending June 30, 2026, salary adjustments otherwise provided 30 may be funded as determined by the department of management, 31 subject to any applicable constitutional limitation, using 32 unappropriated moneys remaining in the commerce revolving 33 fund, the gaming enforcement revolving fund, the gaming 34 regulatory revolving fund, the primary road fund, the road 35 -3- LSB 2990YC (8) 91 ns/jh 3/ 10

H.F. _____ use tax fund, the fish and game protection fund, and the Iowa 1 public employees’ retirement fund, and in other departmental 2 revolving, trust, or special funds for which the general 3 assembly has not made an operating budget appropriation. 4 Sec. 6. TAXPAYER RELIEF FUND —— TRANSFER. 5 1. There is transferred from the taxpayer relief fund 6 created in section 8.57E to the general fund of the state, the 7 following amount: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,881,303 9 2. The transfer made in this section is based on the 10 application of assessment limitations calculated under section 11 441.21 due to the enactment of 2023 Iowa Acts, chapter 5. The 12 transferred moneys shall be used in lieu of a like amount 13 of other general fund moneys to pay foundation aid under 14 chapter 257 as described in section 257.16 for the fiscal year 15 beginning July 1, 2025. 16 Sec. 7. Section 257.35, Code 2025, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 19A. Notwithstanding subsection 1, and in 19 addition to the reduction applicable pursuant to subsection 2, 20 the amounts specified for school districts and area education 21 agencies in subsection 1, paragraph “a” , for the fiscal year 22 beginning July 1, 2025, and ending June 30, 2026, shall be 23 reduced by the department of management by twenty-five million 24 dollars. The reductions for each district or agency shall be 25 prorated based on the proportional reduction that the district 26 or agency receives under subsection 2. 27 Sec. 8. EFFECTIVE DATE. The following, being deemed of 28 immediate importance, takes effect upon enactment: 29 The section of this division of this Act appropriating 30 moneys to the department of education for the fiscal year 31 beginning July 1, 2025, for an education support personnel 32 salary supplement. 33 DIVISION II 34 CORRECTIVE PROVISIONS 35 -4- LSB 2990YC (8) 91 ns/jh 4/ 10

H.F. _____ Sec. 9. Section 29D.4, subsection 2, paragraph b, as enacted 1 by 2025 Iowa Acts, Senate File 619, section 8, is amended to 2 read as follows: 3 b. Moneys in the fund are appropriated to the department to 4 provide loans to eligible entities pursuant to section 29D.9 5 29D.8 , and for administration of the program as permitted 6 under the STORM Act. Moneys in the fund shall not be used to 7 provide a loan to a private entity for the acquisition of real 8 property. Moneys in the fund shall not be considered part of 9 the general fund of the state subject to appropriation for any 10 other purpose by the general assembly, and in determining a 11 general fund balance, shall not be included in the general fund 12 of the state subject to section 16.31, insofar as section 16.31 13 complies with the STORM Act. 14 Sec. 10. Section 144E.3, Code 2025, as amended by 2025 Iowa 15 Acts, Senate File 233, section 2, if enacted, is amended to 16 read as follows: 17 144E.3 Manufacturer and eligible facility rights. 18 1. A manufacturer of an investigational drug, biological 19 product, or device or a manufacturer operating within, 20 and in compliance with all requirements applicable to, an 21 eligible facility may make available, and an eligible patient, 22 as applicable under section 144E.1 144E.2 , subsection 2, 23 paragraph “a” or “b” , may request from a manufacturer of 24 an investigational drug, biological product, or device, 25 or a manufacturer operating within, and in compliance with 26 all requirements applicable to, an eligible facility, the 27 manufacturer’s investigational drug, biological product, or 28 device, or the manufacturer’s individualized investigational 29 treatment under this chapter . This chapter does not require a 30 manufacturer of an investigational drug, biological product, 31 or device, or of an individualized investigational treatment 32 to provide or otherwise make available the investigational 33 drug, biological product, or device, or the individualized 34 investigational treatment to an eligible patient. 35 -5- LSB 2990YC (8) 91 ns/jh 5/ 10

H.F. _____ 2. An eligible facility, or a manufacturer described 1 in subsection 1 , that is in compliance with all applicable 2 requirements, may do any of the following: 3 a. Provide an investigational drug, biological product, 4 or device, or an individualized investigational treatment 5 to an eligible patient, as applicable under section 144E.1 6 144E.2 , subsection 2, paragraph “a” or “b” , without receiving 7 compensation. 8 b. Require an eligible patient, as applicable under section 9 144E.1 144E.2 , subsection 2, paragraph “a” or “b” , to pay the 10 costs of, or the costs associated with, the manufacture of the 11 investigational drug, biological product, or device, or the 12 individualized investigational treatment. 13 Sec. 11. Section 237.10, subsection 1, paragraph d, if 14 enacted by 2025 Iowa Acts, House File 644, section 3, is 15 amended to read as follows: 16 d. (1) The department shall notify an individual licensee, 17 and the parents or guardians of a child, if the department 18 delegates the department’s right to consent to emergency 19 medical care and routine medical care on behalf of the child 20 under section 232.2, subsection 12, paragraph “c” , to the 21 individual licensee. 22 (2) The department shall notify the department of 23 education, an individual licensee, and the parents or guardians 24 of a child if the department delegates the department’s right 25 to consent to participation in an individualized education 26 program on behalf of the child under section 232.2, subsection 27 12, paragraph “c” , to the individual licensee. 28 Sec. 12. Section 237.10, subsection 1, paragraph d, if 29 enacted by 2025 Iowa Acts, House File 644, section 7, is 30 amended to read as follows: 31 d. (1) The department shall notify an individual licensee 32 or an approved kinship caregiver, and the parents or guardians 33 of a child, if the department delegates the department’s right 34 to consent to emergency medical care and routine medical care 35 -6- LSB 2990YC (8) 91 ns/jh 6/ 10

H.F. _____ on behalf of the child under section 232.2, subsection 12, 1 paragraph “c” , to the individual licensee or approved kinship 2 caregiver. 3 (2) The department shall notify the department of 4 education, an individual licensee or an approved kinship 5 caregiver, and the parents or guardians of a child, if the 6 department delegates the department’s right to consent to 7 participation in an individualized education program on behalf 8 of the child under section 232.2, subsection 12, paragraph “c” , 9 to the individual licensee or approved kinship caregiver. 10 Sec. 13. Section 256.9, subsection 69, if enacted by 2025 11 Iowa Acts, House File 782, section 1, is amended to read as 12 follows: 13 69. On or before May 1, 2025, develop and distribute 14 to school districts, accredited nonpublic schools, charter 15 schools, and innovation zone schools model policies that, 16 if adopted, would satisfy the a school district’s , charter 17 school’s, or innovation zone school’s responsibilities under 18 section 279.87 relating to policies governing student use of 19 personal electronic devices. 20 Sec. 14. Section 299.1D, subsection 1, paragraph f, if 21 enacted by 2025 Iowa Acts, House File 870, section 2, is 22 amended to read as follows: 23 f. The school district or accredited nonpublic school 24 must not expend any moneys related to the course in religious 25 instruction, not including de minimis administrative costs 26 associated with processing notifications received under 27 subsection 1 paragraph “a” and tracking the child’s attendance 28 to ensure compliance with this section. 29 Sec. 15. Section 514F.8, subsection 1A, paragraph c, 30 subparagraph (8), if enacted by 2025 Iowa Acts, House File 303, 31 section 1, is amended to read as follows: 32 (8) The average and median time that elapsed between the 33 submission of a nonurgent prior authorization request and a 34 determination by the utilization review organization for the 35 -7- LSB 2990YC (8) 91 ns/jh 7/ 10

H.F. _____ urgent nonurgent prior authorization request, aggregated for 1 all health care services or items. 2 Sec. 16. Section 522F.4, subsection 2, as enacted by 2025 3 Iowa Acts, Senate File 619, section 59, is amended to read as 4 follows: 5 2. Any The fee for a criminal history check shall be 6 the same as any applicable fee for a criminal history check 7 pursuant to section 522B.5A. 8 Sec. 17. Section 522F.9, subsection 2, as enacted by 2025 9 Iowa Acts, Senate File 619, section 64, is amended to read as 10 follows: 11 2. Any The fee for a criminal history check shall be 12 the same as any applicable fee for a criminal history check 13 pursuant to section 522B.5A. 14 Sec. 18. CODE EDITOR DIRECTIVE. 2025 Iowa Acts, Senate File 15 619, section 29, amends section 515.137A, subsections 3, 4, and 16 5, Code 2025, by striking the subsections and inserting in lieu 17 thereof new subsections 3, 4, and 5, and, notwithstanding the 18 Acts section lead-in, adds new subsections 6, 7, 8, 9, and 10. 19 The Code editor is directed to codify 2025 Iowa Acts, Senate 20 File 619, section 29, by striking section 515.137A, subsections 21 3, 4, and 5, Code 2025, and inserting in lieu thereof new 22 subsections 3, 4, and 5, and then by amending section 515.137A, 23 Code 2025, by adding new subsections 6, 7, 8, 9, and 10. 24 Sec. 19. EFFECTIVE DATE. The following, being deemed of 25 immediate importance, takes effect upon enactment: 26 The section of this division of this Act amending section 27 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 28 782, section 1. 29 Sec. 20. RETROACTIVE APPLICABILITY. The following applies 30 retroactively to the effective date of 2025 Iowa Acts, House 31 File 782, if enacted: 32 The section of this division of this Act amending section 33 256.9, subsection 69, if enacted by 2025 Iowa Acts, House File 34 782, section 1. 35 -8- LSB 2990YC (8) 91 ns/jh 8/ 10

H.F. _____ DIVISION III 1 STATE MEMBERSHIP —— REINSURANCE ASSOCIATION 2 Sec. 21. Section 513C.10, subsection 1, paragraph a, Code 3 2025, is amended to read as follows: 4 a. All persons that provide health benefit plans in this 5 state including insurers providing accident and sickness 6 insurance under chapter 509 , 514 , or 514A , whether on an 7 individual or group basis; fraternal benefit societies 8 providing hospital, medical, or nursing benefits under chapter 9 512B ; and health maintenance organizations, other entities 10 providing health insurance or health benefits subject to state 11 insurance regulation, and all other insurers as designated 12 by the board of directors of the Iowa comprehensive health 13 insurance association with the approval of the commissioner 14 shall be members of the association. However, the state, 15 including a department, an independent agency, the state board 16 of regents, and an institution under the control of the state 17 board of regents, shall not be a member of the association. 18 Sec. 22. EFFECTIVE DATE. This division of this Act, being 19 deemed of immediate importance, takes effect upon enactment. 20 Sec. 23. RETROACTIVE APPLICABILITY. This division of this 21 Act applies retroactively to January 1, 2020. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 APPROPRIATIONS, DISTRIBUTIONS, TRANSFERS, AND EXPENDITURE 26 AUTHORITY. This bill appropriates moneys from the general fund 27 of the state to the department of education for FY 2025-2026 28 and FY 2026-2027 to supplement education support personnel 29 compensation and limits or reduces the standing appropriations 30 for FY 2025-2026 for payment of claims for nonpublic school 31 pupil transportation, instructional support state aid, and 32 state aid for area education agencies and school districts 33 under Code section 257.35. 34 The bill authorizes salary adjustments to be funded as 35 -9- LSB 2990YC (8) 91 ns/jh 9/ 10

H.F. _____ determined by the department of management from unappropriated 1 moneys in certain special funds. 2 The bill transfers moneys from the taxpayer relief fund 3 to the general fund of the state based on the application of 4 assessment limitations calculated under Code section 441.21 5 due to the enactment of 2023 Iowa Acts, chapter 5, to be used 6 in lieu of a like amount of other general fund moneys to pay 7 foundation aid under Code chapter 257 for FY 2025-2026. 8 CORRECTIVE PROVISIONS. The bill makes technical corrections 9 to, or as the result of, legislation enacted or considered 10 during the 2025 legislative session. Certain provisions take 11 effect or apply retroactively based on the underlying 2025 12 legislation. 13 STATE MEMBERSHIP —— REINSURANCE ASSOCIATION. The bill 14 excludes the state from membership in the Iowa individual 15 health benefit reinsurance association. This provision takes 16 effect upon enactment and applies retroactively to January 1, 17 2020. 18 -10- LSB 2990YC (8) 91 ns/jh 10/ 10