Senate Study Bill 3186 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR BUDGET BILL) A BILL FOR An Act relating to transportation and other 1 infrastructure-related appropriations to the department of 2 transportation, including allocation and use of moneys from 3 the road use tax fund and the primary road fund. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5016XG (5) 91 th/ns

S.F. _____ H.F. _____ Section 1. ROAD USE TAX FUND —— FY 2026-2027. There is 1 appropriated from the road use tax fund created in section 2 312.1 to the department of transportation for the fiscal year 3 beginning July 1, 2026, and ending June 30, 2027, the following 4 amounts, or so much thereof as is necessary, to be used for the 5 purposes designated: 6 1. For salaries, support, maintenance, and miscellaneous 7 purposes: 8 a. Transportation operations: 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,723,539 10 b. Motor vehicles: 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,234,969 12 2. For payments to the department of administrative 13 services and the department of management for utility services: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,823,348 15 3. For unemployment compensation: 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,000 17 4. For payments to the department of administrative 18 services for paying workers’ compensation claims under chapter 19 85 on behalf of employees of the department of transportation: 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 199,907 21 5. For payment to the general fund of the state for indirect 22 cost recoveries: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,000 24 6. For reimbursement to the auditor of state for audit 25 expenses as provided in section 11.5B : 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 107,884 27 7. For automation, telecommunications, and related costs 28 associated with the county issuance of driver’s licenses and 29 vehicle registrations and titles: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,406,000 31 8. For costs associated with participation in the 32 Mississippi river parkway commission: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000 34 9. For costs associated with the traffic and criminal 35 -1- LSB 5016XG (5) 91 th/ns 1/ 5

S.F. _____ H.F. _____ software program and the mobile architecture and communications 1 handling program: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,000 3 10. For motor vehicle division field facility maintenance 4 projects at various locations: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000 6 11. For costs associated with motor vehicle division 7 systems modernization: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000,000 9 For purposes of section 8.33 , unless specifically provided 10 otherwise, moneys appropriated in subsections 10 and 11 that 11 remain unencumbered or unobligated shall not revert but shall 12 remain available for expenditure for the purposes designated 13 until the close of the fiscal year that ends three years 14 after the end of the fiscal year for which the appropriation 15 was made. However, if the project or projects for which the 16 appropriation was made are completed in an earlier fiscal year, 17 unencumbered or unobligated moneys shall revert at the close of 18 that same fiscal year. 19 Sec. 2. PRIMARY ROAD FUND —— FY 2026-2027. There is 20 appropriated from the primary road fund created in section 21 313.3 to the department of transportation for the fiscal year 22 beginning July 1, 2026, and ending June 30, 2027, the following 23 amounts, or so much thereof as is necessary, to be used for the 24 purposes designated: 25 1. For transportation operations salaries, support, 26 maintenance, and miscellaneous purposes: 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $348,619,071 28 2. For payments to the department of administrative 29 services and the department of management for utility services: 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,200,563 31 3. For unemployment compensation: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 138,000 33 4. For payments to the department of administrative 34 services for paying workers’ compensation claims under 35 -2- LSB 5016XG (5) 91 th/ns 2/ 5

S.F. _____ H.F. _____ chapter 85 on behalf of the employees of the department of 1 transportation: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,835,877 3 5. For payment to the general fund of the state for indirect 4 cost recoveries: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 660,000 6 6. For reimbursement to the auditor of state for audit 7 expenses as provided in section 11.5B : 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 662,716 9 7. For costs associated with producing transportation maps: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 195,000 11 8. For inventory and equipment replacement: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,623,165 13 9. For costs associated with the statewide interoperability 14 network: 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 442,162 16 10. For facility major maintenance and enhancement: 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,300,000 18 11. For facility routine maintenance and preservation: 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,050,000 20 12. For replacement of the Alton maintenance garage: 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,000,000 22 For purposes of section 8.33 , unless specifically provided 23 otherwise, moneys appropriated in subsections 10 through 12 24 that remain unencumbered or unobligated shall not revert 25 but shall remain available for expenditure for the purposes 26 designated until the close of the fiscal year that ends 27 three years after the end of the fiscal year for which the 28 appropriation was made. However, if the project or projects 29 for which such appropriation was made are completed in an 30 earlier fiscal year, unencumbered or unobligated moneys shall 31 revert at the close of that same fiscal year. 32 Sec. 3. 2023 Iowa Acts, chapter 117, section 2, unnumbered 33 paragraph 2, is amended to read as follows: 34 For purposes of section 8.33 , unless specifically provided 35 -3- LSB 5016XG (5) 91 th/ns 3/ 5

S.F. _____ H.F. _____ otherwise, moneys appropriated in subsections 10 through 1 13 12 that remain unencumbered or unobligated shall not 2 revert but shall remain available for expenditure for the 3 purposes designated until the close of the fiscal year that 4 ends three years after the end of the fiscal year for which 5 the appropriation was made. For purposes of section 8.33, 6 unless specifically provided otherwise, moneys appropriated in 7 subsection 13 that remain unencumbered or unobligated shall 8 not revert but shall remain available for expenditure for the 9 purposes designated until the close of the fiscal year that 10 ends four years after the end of the fiscal year for which the 11 appropriation was made. However, if the project or projects 12 for which such appropriation was made are completed in an 13 earlier fiscal year, unencumbered or unobligated moneys shall 14 revert at the close of that same fiscal year. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill makes appropriations from the road use tax fund and 19 the primary road fund to the department of transportation. 20 Appropriations for FY 2026-2027 from the road use tax 21 fund include appropriations for transportation operations, 22 motor vehicles, utility services, unemployment and workers’ 23 compensation, indirect cost recoveries, audits, county issuance 24 of driver’s licenses and vehicle registration and titling, 25 participation in the Mississippi river parkway commission, 26 the traffic and criminal software program and the mobile 27 architecture and communications handling program, and motor 28 vehicle division field facility maintenance projects and 29 systems modernization. 30 Appropriations for FY 2026-2027 from the primary road fund 31 include appropriations for transportation operations, utility 32 services, unemployment and workers’ compensation, indirect 33 cost recoveries, audits, transportation maps, inventory and 34 equipment replacement, the statewide interoperability network, 35 -4- LSB 5016XG (5) 91 th/ns 4/ 5

S.F. _____ H.F. _____ major facility maintenance and enhancement, routine facility 1 maintenance and preservation, and the Alton maintenance garage. 2 The bill provides that an FY 2023-2024 appropriation for 3 replacement of the Davenport highway operations complex will 4 remain available until the close of FY 2027-2028. 5 -5- LSB 5016XG (5) 91 th/ns 5/ 5