Senate File 587 - Reprinted SENATE FILE 587 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1253) (As Amended and Passed by the Senate April 6, 2021 ) A BILL FOR An Act relating to state and local government financing, 1 programs, and operations, by modifying provisions relating 2 to mental health and disability services funding, school 3 district funding, commercial and industrial property tax 4 replacement payments, and other specified tax provisions, 5 making appropriations, providing penalties, and including 6 effective date and applicability provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 SF 587 (4) 89 md/jh/mb

S.F. 587 DIVISION I 1 MENTAL HEALTH FUNDING 2 Section 1. Section 123.38, subsection 2, paragraph b, Code 3 2021, is amended to read as follows: 4 b. For purposes of this subsection , any portion of license 5 or permit fees used for the purposes authorized in section 6 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 7 (2), and in section 331.424A , shall not be deemed received 8 either by the division or by a local authority. 9 Sec. 2. Section 218.99, Code 2021, is amended to read as 10 follows: 11 218.99 Counties to be notified of patients’ personal 12 accounts. 13 The administrator in control of a state institution shall 14 direct the business manager of each institution under the 15 administrator’s jurisdiction which is mentioned in section 16 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 17 (2), and for which services are paid under section 331.424A 18 by the county of residence or a mental health and disability 19 services region , to quarterly inform the county of residence 20 of any patient or resident who has an amount in excess of two 21 hundred dollars on account in the patients’ personal deposit 22 fund and the amount on deposit. The administrators shall 23 direct the business manager to further notify the county of 24 residence at least fifteen days before the release of funds in 25 excess of two hundred dollars or upon the death of the patient 26 or resident. If the patient or resident has no residency in 27 this state or the person’s residency is unknown, notice shall 28 be made to the director of human services and the administrator 29 in control of the institution involved. 30 Sec. 3. Section 225.24, Code 2021, is amended to read as 31 follows: 32 225.24 Collection of preliminary expense. 33 Unless a committed private patient or those legally 34 responsible for the patient’s support offer to settle the 35 -1- SF 587 (4) 89 md/jh/mb 1/ 49

S.F. 587 amount of the claims, the regional administrator for the 1 person’s county of residence shall collect, by action if 2 necessary, the amount of all claims for per diem and expenses 3 that have been approved by the regional administrator for the 4 county and paid by the regional administrator as provided under 5 section 225.21 . Any amount collected shall be credited to the 6 county mental health and disabilities disability services fund 7 region combined account created in accordance with section 8 331.424A 331.391 . 9 Sec. 4. Section 249N.8, subsection 1, Code 2021, is amended 10 to read as follows: 11 1. Biennially, a report of the results of a review, by 12 county and region, of mental health services previously funded 13 through taxes levied by counties pursuant to section 331.424A , 14 Code 2021, or funds administered by a mental health and 15 disability services region that are funded during the reporting 16 period under the Iowa health and wellness plan. 17 Sec. 5. Section 331.389, subsection 1, paragraph b, Code 18 2021, is amended to read as follows: 19 b. If a county has been exempted prior to July 1, 2014, from 20 the requirement to enter into a regional service system, the 21 county and the county’s board of supervisors shall fulfill all 22 requirements and be eligible as a region under this chapter and 23 chapter chapters 222, 225, 225C , 226, 227, 229, and 230 for a 24 regional service system, regional service system management 25 plan, regional governing board, and regional administrator, 26 and any other provisions applicable to a region of counties 27 providing local mental health and disability services. 28 Additionally, a county exempted under this subsection shall be 29 considered a region for purposes of chapter 426B. 30 Sec. 6. Section 331.389, subsection 5, paragraph a, 31 subparagraph (2), Code 2021, is amended to read as follows: 32 (2) Reduce the amount of the annual state funding provided 33 for the regional service system or exempted county, including 34 amounts received under section 426B.3 or from the risk pool 35 -2- SF 587 (4) 89 md/jh/mb 2/ 49

S.F. 587 under section 426B.6 , not to exceed fifteen percent of the 1 amount. 2 Sec. 7. Section 331.391, subsection 1, Code 2021, is amended 3 to read as follows: 4 1. The funding under the control of the governing board 5 shall be maintained in a combined account , in separate county 6 accounts that are under the control of the governing board, or 7 pursuant to other arrangements authorized by law that limit the 8 administrative burden of such control while facilitating public 9 scrutiny of financial processes . A county exempted under 10 section 331.389, subsection 1, shall maintain a county mental 11 health and disability services fund for the deposit of funding 12 received under section 426B.3 or from the risk pool under 13 section 426B.6 and appropriations specifically authorized to be 14 made from the county mental health and disability services fund 15 shall not be made from any other fund of the county. A county 16 mental health and disability services fund established by an 17 exempt county, to the extent feasible, shall be considered to 18 be the same as a region combined account and shall be subject 19 to the same requirements as a region’s combined account. 20 Sec. 8. Section 331.391, subsection 4, paragraphs a, b, and 21 c, Code 2021, are amended to read as follows: 22 a. If a region is meeting the financial obligations for 23 implementation of its regional service system management plan 24 for a fiscal year and residual funding is anticipated, the 25 regional administrator shall may reserve an adequate amount of 26 unobligated and unencumbered funds for cash flow of expenditure 27 obligations in the next fiscal year. 28 b. Each region shall certify to the department of management 29 human services on or before December 1, 2022 2021 , and each 30 December 1 thereafter, the amount of the region’s cash flow 31 amount in the combined account that is attributable to each 32 county within the region based upon each county’s proportionate 33 amount of funding and contributions to the region or other 34 methodology specified in the regional governance agreement 35 -3- SF 587 (4) 89 md/jh/mb 3/ 49

S.F. 587 or certify the cash flow amount for each separate county 1 account that is under the control of the governing board at the 2 conclusion of the most recently completed fiscal year. 3 c. For fiscal years beginning on or after July 1, 2023, 4 the region’s cash flow amount , either reserved in the region’s 5 combined account or reserved among all separate county accounts 6 under the control of the governing board, shall not exceed 7 forty five percent of the gross actual expenditures from the 8 combined account or from all separate county accounts under 9 control of the governing board for the fiscal year preceding 10 the fiscal year in progress. 11 Sec. 9. Section 331.392, subsection 4, paragraph a, Code 12 2021, is amended to read as follows: 13 a. Methods for pooling, management, and expenditure of the 14 funding under the control of the regional administrator. If 15 the agreement does not provide for pooling of the participating 16 county moneys in a single fund, the agreement shall specify how 17 the participating county moneys will be subject to the control 18 of the regional administrator. 19 Sec. 10. Section 331.393, subsection 10, Code 2021, is 20 amended to read as follows: 21 10. The director’s approval of a regional plan shall not be 22 construed to constitute certification of the respective county 23 budgets or of the region’s budget. 24 Sec. 11. Section 331.394, subsection 4, Code 2021, is 25 amended to read as follows: 26 4. If a county of residence is part of a mental health and 27 disability services region that has agreed to pool funding and 28 liability for services, the The responsibilities of the county 29 under law regarding such mental health and disability services 30 shall be performed on behalf of the county by the regional 31 administrator. The county of residence or the county’s mental 32 health and disability services region , as applicable, is 33 responsible for paying the public costs of the mental health 34 and disability services that are not covered by the medical 35 -4- SF 587 (4) 89 md/jh/mb 4/ 49

S.F. 587 assistance program under chapter 249A and are provided in 1 accordance with the region’s approved service management plan 2 to persons who are residents of the county or region. 3 Sec. 12. Section 331.424A, subsection 1, paragraph b, Code 4 2021, is amended by striking the paragraph. 5 Sec. 13. Section 331.424A, subsection 3, Code 2021, is 6 amended to read as follows: 7 3. a. County revenues from taxes and other sources 8 designated by a county for mental health and disabilities 9 services shall be credited to the county mental health and 10 disabilities services fund which shall be created by the 11 county. The Until the required transfer of funds under 12 paragraph “b” , the board shall make appropriations from the fund 13 for payment of services provided under the regional service 14 system management plan approved pursuant to section 331.393 . 15 The For fiscal years beginning before July 1, 2022, the county 16 may pay for the services in cooperation with other counties 17 by pooling appropriations from the county services fund with 18 appropriations from the county services fund of other counties 19 through the county’s regional administrator, or through another 20 arrangement specified in the regional governance agreement 21 entered into by the county under section 331.392 . 22 b. Notwithstanding section 331.432, subsection 3, upon 23 conclusion of the fiscal year beginning July 1, 2021, except 24 for an exempt county under section 331.391, subsection 1, 25 the county treasurer shall transfer the remaining balance of 26 the county’s county services fund created under paragraph 27 “a” , including all unobligated and unencumbered funds, to the 28 county’s region to which the county belongs in the fiscal year 29 beginning July 1, 2022, for deposit in the region’s combined 30 account under section 331.391. 31 Sec. 14. Section 331.424A, subsection 4, paragraph a, Code 32 2021, is amended to read as follows: 33 a. An amount of unobligated and unencumbered funds, as 34 specified in the regional governance agreement entered into 35 -5- SF 587 (4) 89 md/jh/mb 5/ 49

S.F. 587 by the county under section 331.392 , shall , for fiscal years 1 beginning before July 1, 2022, be reserved in the county 2 services fund to address cash flow obligations in the next 3 fiscal year , subject to the limitations of this subsection . 4 Sec. 15. Section 331.424A, subsection 4, paragraphs c and d, 5 Code 2021, are amended by striking the paragraphs. 6 Sec. 16. Section 331.424A, subsections 5, 6, and 9, Code 7 2021, are amended to read as follows: 8 5. Receipts from the state or federal government for fiscal 9 years beginning before July 1, 2022, for the mental health 10 and disability services administered or paid for by a county 11 shall be credited to the county services fund, including moneys 12 distributed to the county from the department of human services 13 and moneys allocated under chapter 426B . 14 6. For each fiscal year beginning before July 1, 2022 , the 15 county shall certify a levy for payment of services. For each 16 such fiscal year, county revenues from taxes imposed by the 17 county credited to the county services fund shall not exceed an 18 amount equal to the county budgeted amount for the fiscal year. 19 A levy certified under this section is not subject to the 20 appeal provisions of section 331.426 or to any other provision 21 in law authorizing a county to exceed, increase, or appeal a 22 property tax levy limit. 23 9. a. For the fiscal year beginning July 1, 2017, and 24 each subsequent fiscal year beginning before July 1, 2022 , the 25 county budgeted amount determined for each county shall be the 26 amount necessary to meet the county’s financial obligations for 27 the payment of services provided under the regional service 28 system management plan approved pursuant to section 331.393 , 29 not to exceed an amount equal to the product of the regional 30 per capita expenditure target amount twenty-one dollars and 31 fourteen cents multiplied by the county’s population , and, for 32 fiscal years beginning on or after July 1, 2023, reduced by 33 the amount of the county’s cash flow reduction amount for the 34 fiscal year calculated under subsection 4 , if applicable . 35 -6- SF 587 (4) 89 md/jh/mb 6/ 49

S.F. 587 b. If a county officially joins a different region, the 1 county’s budgeted amount for a fiscal year beginning before 2 July 1, 2022, shall be the amount necessary to meet the 3 county’s financial obligations for payment of services provided 4 under the new region’s regional service system management plan 5 approved pursuant to section 331.393 , not to exceed an amount 6 equal to the product of the new region’s regional per capita 7 expenditure target amount twenty-one dollars and fourteen cents 8 multiplied by the county’s population , and, for fiscal years 9 beginning on or after July 1, 2023, reduced by the amount of 10 the county’s cash flow reduction amount for the fiscal year 11 calculated under subsection 4 , if applicable . 12 Sec. 17. Section 331.424A, Code 2021, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 10. This section is repealed July 1, 2022. 15 Sec. 18. Section 331.432, subsection 3, Code 2021, is 16 amended to read as follows: 17 3. a. Except as authorized in section 331.477 , transfers 18 of moneys between the county services fund created pursuant 19 to section 331.424A and any other fund are prohibited. This 20 subsection paragraph does not apply to appropriations made or 21 the value of in-kind care and treatment provided pursuant to 22 section 347.7, subsection 1 , paragraph “c” , Code 2021, or to 23 transfers from a county public hospital fund under section 24 347.7 . This paragraph is repealed July 1, 2022. 25 b. Payments or transfers of moneys from any fund of the 26 county to a mental health and disability services region’s 27 combined account under section 331.391 are prohibited. This 28 paragraph applies to fiscal years beginning on or after July 29 1, 2022, but does not apply to transfers from a county public 30 hospital fund under section 347.7 for the fiscal year beginning 31 July 1, 2022, or the fiscal year beginning July 1, 2023. 32 Sec. 19. Section 347.7, subsection 1, paragraph c, Code 33 2021, is amended by striking the paragraph. 34 Sec. 20. Section 426B.1, subsection 2, Code 2021, is amended 35 -7- SF 587 (4) 89 md/jh/mb 7/ 49

S.F. 587 to read as follows: 1 2. Moneys shall be distributed from the property tax relief 2 fund to counties for the mental health and disability regional 3 service system for mental health and disabilities services, in 4 accordance with the appropriations made to the fund and other 5 statutory requirements. 6 Sec. 21. Section 426B.2, Code 2021, is amended to read as 7 follows: 8 426B.2 Property tax relief fund payments. 9 The director of human services shall draw warrants on the 10 property tax relief fund, payable to the county treasurer 11 regional administrator in the amount due to a county mental 12 health and disability services region in accordance with 13 statutory requirements, and mail the warrants to the county 14 auditors regional administrator in July and January of each 15 year. 16 Sec. 22. NEW SECTION . 426B.3 Mental health and disability 17 services regional supplement fund. 18 1. A mental health and disability services regional 19 supplement fund is created in the office of the treasurer of 20 state under the authority of the department of human services. 21 The fund shall be separate from the general fund of the state 22 and the balance in the fund shall not be considered part of 23 the balance of the general fund of the state. Moneys in the 24 fund include appropriations made to the fund and other moneys 25 deposited into the fund. Moneys in the fund shall be used 26 solely for purposes of making regional supplement payments 27 under this section. 28 2. For each fiscal year beginning on or after July 1, 2021, 29 there is appropriated from the general fund of the state to the 30 mental health and disability services regional supplement fund 31 an amount necessary to make all regional supplement payments 32 under this section for that fiscal year. 33 3. For each fiscal year beginning on or after July 1, 2021, 34 the moneys available in a fiscal year in the mental health and 35 -8- SF 587 (4) 89 md/jh/mb 8/ 49

S.F. 587 disability services state supplement fund are appropriated to 1 the department of human services and shall be distributed to 2 each mental health and disability services region, as defined 3 in section 426B.6, on a per capita basis calculated under 4 subsection 4 using each region’s population, as defined in 5 section 426B.6, for that fiscal year. 6 4. The amount of each region’s regional supplement payment 7 shall be determined as follows: 8 a. For the fiscal year beginning July 1, 2021, an amount 9 equal to the product of fifteen dollars and eighty-six cents 10 multiplied by the sum of the region’s population for the fiscal 11 year. 12 b. For the fiscal year beginning July 1, 2022, an amount 13 equal to the product of thirty-eight dollars multiplied by the 14 sum of the region’s population for the fiscal year. 15 c. For the fiscal year beginning July 1, 2023, an amount 16 equal to the product of forty dollars multiplied by the sum of 17 the region’s population for the fiscal year. 18 d. For the fiscal year beginning July 1, 2024, an amount 19 equal to the product of forty-two dollars multiplied by the sum 20 of the region’s population for the fiscal year. 21 e. (1) For the fiscal year beginning July 1, 2025, and each 22 succeeding fiscal year, an amount equal to the product of the 23 sum of the region’s population for the fiscal year multiplied 24 by the sum of the dollar amount used to calculate the regional 25 supplement payments under this subsection for the immediately 26 preceding fiscal year plus the regional supplement growth 27 factor for the fiscal year. 28 (2) For purposes of this paragraph, “regional supplement 29 growth factor” for a fiscal year is an amount equal to the 30 product of the dollar amount used to calculate the regional 31 supplement payments under this subsection for the immediately 32 preceding fiscal year multiplied by the percent increase, if 33 any, in the amount of sales tax revenue deposited into the 34 general fund of the state under section 423.2A, subsection 35 -9- SF 587 (4) 89 md/jh/mb 9/ 49

S.F. 587 1, paragraph “a” , less the transfers required under section 1 423.2A, subsection 2, between the fiscal year beginning three 2 years prior to the applicable fiscal year and the fiscal year 3 beginning two years prior to the applicable year, but not to 4 exceed one and one-half percent. 5 5. Regional supplement payments received by a region 6 shall be deposited in the region’s combined account under 7 section 331.391 and used solely for providing mental health 8 and disability services under the regional service system 9 management plan. 10 6. Regional supplement payments from the mental health 11 and disability services regional supplement fund shall be 12 paid in quarterly installments to the appropriate regional 13 administrator in July, October, January, and April of each 14 fiscal year. 15 7. a. For the fiscal year beginning July 1, 2021, each 16 mental health and disability services region for which the 17 amount certified during the fiscal year under section 331.391, 18 subsection 4, paragraph “b” , exceeds forty percent of the actual 19 expenditures of the region for the fiscal year preceding the 20 fiscal year in progress, the remaining quarterly payments of 21 the region’s regional supplement payment shall be reduced by 22 an amount equal to the amount by which the region’s amount 23 certified under section 331.391, subsection 4, paragraph “b” , 24 exceeds forty percent of the actual expenditures of the region 25 for the fiscal year preceding the fiscal year in progress, 26 but the amount of the reduction shall not exceed the total 27 amount of the region’s regional supplement payment for the 28 fiscal year. If the region’s remaining quarterly payments are 29 insufficient to effectuate the required reductions under this 30 paragraph, the region is required to pay to the department of 31 human services any amount for which the reduction in quarterly 32 payments could not be made. The amount of reductions to 33 quarterly payments and amounts paid to the department under 34 this paragraph shall be transferred and credited to the risk 35 -10- SF 587 (4) 89 md/jh/mb 10/ 49

S.F. 587 pool under section 426B.6. 1 b. For the fiscal year beginning July 1, 2022, each mental 2 health and disability services region for which the amount 3 certified during the fiscal year under section 331.391, 4 subsection 4, paragraph “b” , exceeds twenty percent of the 5 actual expenditures of the region for the fiscal year preceding 6 the fiscal year in progress, the remaining quarterly payments 7 of the region’s regional supplement payment shall be reduced 8 by an amount equal to the amount by which the region’s amount 9 certified under section 331.391, subsection 4, paragraph “b” , 10 exceeds twenty percent of the actual expenditures of the region 11 for the fiscal year preceding the fiscal year in progress, 12 but the amount of the reduction shall not exceed the total 13 amount of the region’s regional supplement payment for the 14 fiscal year. If the region’s remaining quarterly payments are 15 insufficient to effectuate the required reductions under this 16 paragraph, the region is required to pay to the department of 17 human services any amount for which the reduction in quarterly 18 payments could not be made. The amount of reductions to 19 quarterly payments and amounts paid to the department under 20 this paragraph shall be transferred and credited to the risk 21 pool under section 426B.6. 22 c. For the fiscal year beginning July 1, 2023, and each 23 succeeding fiscal year, each mental health and disability 24 services region for which the amount certified during the 25 fiscal year under section 331.391, subsection 4, paragraph “b” , 26 exceeds five percent of the actual expenditures of the region 27 for the fiscal year preceding the fiscal year in progress, 28 the remaining quarterly payments of the region’s regional 29 supplement payment shall be reduced by an amount equal to the 30 amount by which the region’s amount certified under section 31 331.391, subsection 4, paragraph “b” , exceeds five percent 32 of the actual expenditures of the region for the fiscal year 33 preceding the fiscal year in progress, but the amount of the 34 reduction shall not exceed the total amount of the region’s 35 -11- SF 587 (4) 89 md/jh/mb 11/ 49

S.F. 587 regional supplement payment for the fiscal year. If the 1 region’s remaining quarterly payments are insufficient to 2 effectuate the required reductions under this paragraph, the 3 region is required to pay to the department of human services 4 any amount for which the reduction in quarterly payments could 5 not be made. The amount of reductions to quarterly payments 6 and amounts paid to the department under this paragraph shall 7 be transferred and credited to the risk pool under section 8 426B.6. 9 Sec. 23. Section 426B.4, Code 2021, is amended to read as 10 follows: 11 426B.4 Rules. 12 The mental health and disability services commission shall 13 consult with county representatives regional administrators 14 and the director of human services in prescribing forms and 15 adopting rules pursuant to chapter 17A to administer this 16 chapter . 17 Sec. 24. NEW SECTION . 426B.6 Risk pool. 18 1. For the purposes of this chapter, unless the context 19 otherwise requires: 20 a. “Mental health and disability services region” means 21 a mental health and disability services region formed in 22 accordance with section 331.389. 23 b. “Population” means, as of July 1 of the fiscal year 24 preceding the fiscal year in which the population figure is 25 applied, the county population shown by the latest preceding 26 certified federal census or the latest applicable population 27 estimate issued by the United States census bureau, whichever 28 is most recent. 29 c. “Regional administrator” means the regional administrator 30 of a mental health and disability services region, as defined 31 in section 331.388. 32 2. A risk pool is created in the property tax relief fund 33 under section 426B.1. The pool shall consist of the moneys 34 appropriated or credited to the pool by law, including amounts 35 -12- SF 587 (4) 89 md/jh/mb 12/ 49

S.F. 587 credited to the risk pool under section 426B.3, subsection 7. 1 For fiscal years beginning on or after July 1, 2021, there is 2 appropriated from the general fund of the state to the risk 3 pool the following amounts to be used for the purposes of this 4 section: 5 a. For the fiscal year beginning July 1, 2021, nine million 6 nine hundred sixty thousand five hundred ninety dollars. 7 b. For the fiscal year beginning July 1, 2022, five million 8 one hundred seven thousand three hundred forty dollars. 9 c. (1) For each fiscal year beginning on or after July 1, 10 2025, an amount equal to the risk pool growth factor multiplied 11 by the ending balance of the risk pool at the conclusion of 12 the fiscal year ending June 30 immediately preceding the 13 application deadline under subsection 4 for the fiscal year for 14 which the appropriation is made. 15 (2) For purposes of this paragraph, the “risk pool growth 16 factor” for each fiscal year is the percent increase, if any, in 17 the amount of sales tax revenue deposited into the general fund 18 of the state under section 423.2A, subsection 1, paragraph “a” , 19 less the transfers required under section 423.2A, subsection 20 2, between the fiscal year beginning three years prior to the 21 applicable fiscal year and the fiscal year beginning two years 22 prior to the applicable year, minus one and one-half percent, 23 and the risk pool growth factor for any fiscal year shall not 24 exceed three and one-half percent. 25 3. A risk pool board is created. The board shall consist 26 of two mental health and disability services region governing 27 board members, two mental health and disability services region 28 fiscal officers or agents, a member of the mental health and 29 disability services commission who is not a governing board 30 member or chief operating officer of a mental health and 31 disability services region, a member of the county finance 32 committee created in chapter 333A who is not an elected 33 official, a representative of a provider of mental health or 34 developmental disabilities services selected from nominees 35 -13- SF 587 (4) 89 md/jh/mb 13/ 49

S.F. 587 submitted by the Iowa association of community providers, a 1 representative of a provider of mental health developmental 2 disabilities services selected from nominees submitted by 3 the Iowa behavioral health association, one member of the 4 children’s behavioral health system state board who is not a 5 governing board member or chief operating officer of a mental 6 health and disability services region, and two chief operating 7 officers of mental health and disability services regions, 8 all appointed by the governor, and one member appointed by 9 the director of human services. All members appointed by 10 the governor shall be subject to confirmation by the senate. 11 Members shall serve for three-year terms. A vacancy shall 12 be filled in the same manner as the original appointment. 13 Expenses and other costs of the risk pool board members 14 representing counties shall be paid by the the region to which 15 the member’s county belongs. Expenses and other costs of risk 16 pool board members who do not represent counties shall be paid 17 by the department of human services. Staff assistance to the 18 board shall be provided by the department of human services. 19 Actuarial expenses and other direct administrative costs shall 20 be charged to the pool. 21 4. To receive assistance from the risk pool, a regional 22 administrator must apply to the risk pool board on or before 23 October 31 preceding the fiscal year for which assistance is 24 requested. The purpose of the assistance shall be to provide 25 financial support for services provided by the regional 26 administrator’s mental health and disability services region. 27 The risk pool board shall make its final decisions on or 28 before December 15 regarding acceptance or rejection of the 29 applications for assistance and the total amount accepted shall 30 be considered obligated. 31 5. In addition to application and assistance requirements 32 under subsections 6, 7, and 9, basic eligibility for risk 33 pool assistance requires that a mental health and disability 34 services region meet all of the following conditions: 35 -14- SF 587 (4) 89 md/jh/mb 14/ 49

S.F. 587 a. The mental health and disability services region is in 1 compliance with the regional service system management plan 2 requirements of section 331.393. 3 b. (1) In the fiscal year that commenced two years prior 4 to the fiscal year of application for assistance, the ending 5 balance, under generally accepted accounting principles, of 6 the mental health and disability services region’s combined 7 services funds was equal to or less than the ending balance 8 threshold under subparagraph (2) for the fiscal year for which 9 assistance is requested. 10 (2) For purposes of this paragraph “b” , “ending balance 11 threshold” means the following: 12 (a) For applications for assistance for the fiscal 13 year beginning July 1, 2021, forty percent of the actual 14 expenditures of the mental health and disability services 15 region for the fiscal year that commenced two years prior to 16 the fiscal year of application for assistance. 17 (b) For applications for assistance for the fiscal 18 year beginning July 1, 2022, twenty percent of the actual 19 expenditures of the mental health and disability services 20 region for the fiscal year that commenced two years prior to 21 the fiscal year of application for assistance. 22 (c) For applications for assistance for fiscal years 23 beginning on or after July 1, 2023, five percent of the actual 24 expenditures of the mental health and disability services 25 region for the fiscal year that commenced two years prior to 26 the fiscal year of application for assistance. 27 6. The board shall review the fiscal year-end financial 28 records for all mental health and disability services regions 29 that are granted risk pool assistance. If the board determines 30 a mental health and disability services region’s actual need 31 for risk pool assistance was less than the amount of risk pool 32 assistance granted to the mental health and disability services 33 region, the mental health and disability services region 34 shall refund the difference between the amount of assistance 35 -15- SF 587 (4) 89 md/jh/mb 15/ 49

S.F. 587 granted and the actual need. The mental health and disability 1 services region shall submit the refund within thirty days of 2 receiving notice from the board. Refunds shall be credited 3 to the risk pool. The mental health and disability services 4 commission shall adopt rules pursuant to chapter 17A providing 5 criteria for the purposes of this subsection and as necessary 6 to implement the other provisions of this section. 7 7. The board shall determine application requirements to 8 ensure prudent use of risk pool assistance. The board may 9 accept or reject an application for assistance in whole or in 10 part. The decision of the board is final. 11 8. The total amount of risk pool assistance shall be limited 12 to the amount available in the risk pool for a fiscal year. Any 13 unobligated balance in the risk pool at the close of a fiscal 14 year shall remain in the risk pool for distribution in the 15 succeeding fiscal year. 16 9. Risk pool assistance shall only be made available to 17 address one or more of the following circumstances: 18 a. Continuing support for core services. 19 b. Avoiding the need for reduction or elimination of 20 critical services when the reduction or elimination places an 21 individual’s health or safety at risk. 22 c. Avoiding the need for reduction or elimination of core 23 crisis services when the reduction or elimination places the 24 public’s health or safety at risk. 25 d. Avoiding the need for reduction or elimination of 26 services or other support that maintain an individual in 27 a community setting or that would create a risk that the 28 individuals needing services and supports would be placed in 29 more restrictive, higher cost settings. 30 10. Subject to the amount available and obligated from the 31 risk pool for a fiscal year, the department of human services 32 shall annually calculate the amount of moneys due to eligible 33 mental health and disability services regions in accordance 34 with the board’s decisions and that amount is appropriated from 35 -16- SF 587 (4) 89 md/jh/mb 16/ 49

S.F. 587 the risk pool to the department for payment of the moneys due. 1 The department shall authorize the issuance of warrants payable 2 to the mental health and disability services regions for the 3 amounts due and the warrants shall be issued on or before 4 January 1. 5 11. On or before March 1 and September 1 of each fiscal 6 year, the department of human services shall provide the risk 7 pool board with a report of the financial condition of each 8 funding source administered by the board. The report shall 9 include but is not limited to an itemization of the funding 10 source’s balances, types and amount of revenues credited, and 11 payees and payment amounts for the expenditures made from the 12 funding source during the reporting period. 13 12. If the board has made its decisions but has determined 14 that there are otherwise qualifying requests for risk pool 15 assistance that are beyond the amount available in the risk 16 pool fund for a fiscal year, the board shall compile a list of 17 such requests and the supporting information for the requests. 18 The list and information shall be submitted to the mental 19 health and disability services commission, the children’s 20 behavioral health system state board, the department of human 21 services, and the general assembly. 22 Sec. 25. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER 23 SECTION 331.424A —— FY 2021-2022. If this division of this 24 Act takes effect after March 31, 2021, for each county for 25 which the amount of taxes certified for levy for the purposes 26 of section 331.424A for the fiscal year beginning July 1, 27 2021, exceeds the product of the population of the county as 28 determined under section 331.424A, subsection 1, paragraph 29 “e”, multiplied by twenty-one dollars and fourteen cents, 30 the department of management shall reduce the amount of such 31 taxes certified for levy to an amount not to exceed the 32 product of the population of the county as determined under 33 section 331.424A, subsection 1, paragraph “e”, multiplied by 34 twenty-one dollars and fourteen cents and shall revise the rate 35 -17- SF 587 (4) 89 md/jh/mb 17/ 49

S.F. 587 of taxation as necessary to raise the reduced amount. The 1 department of management shall report the reduction in the 2 certified taxes and the revised rate of taxation to the county 3 auditors by June 15, 2021. 4 Sec. 26. IMPLEMENTATION OF RISK POOL UNDER SECTION 426B.6 5 —— EMERGENCY RULEMAKING. 6 1. In order to timely implement the provisions of this 7 division of this Act establishing the risk pool for mental 8 health and disability services regions for the fiscal year 9 beginning July 1, 2021, and the fiscal year beginning July 10 1, 2022, the director of human services shall, subject to 11 the membership requirements of section 426B.6, subsection 3, 12 appoint temporary members of the risk pool board to review 13 and approve risk pool assistance applications and establish 14 alternative application deadlines and expedited application 15 review and approval timelines. 16 2. The department of human services may adopt 17 administrative rules under section 17A.4, subsection 3, and 18 section 17A.5, subsection 2, paragraph “b”, to implement 19 provisions of this division of this Act and the rules shall 20 become effective immediately upon filing or on a later 21 effective date specified in the rules, unless the effective 22 date of the rules is delayed or the applicability of the rules 23 is suspended by the administrative rules review committee. Any 24 rules adopted in accordance with this section shall not take 25 effect before the rules are reviewed by the administrative 26 rules review committee. The delay authority provided to the 27 administrative rules review committee under section 17A.8, 28 subsection 9, shall be applicable to a delay imposed under this 29 section, notwithstanding a provision in that section making it 30 inapplicable to section 17A.5, subsection 2, paragraph “b”. 31 Any rules adopted in accordance with the provisions of this 32 section shall also be published as a notice of intended action 33 as provided in section 17A.4. 34 Sec. 27. EFFECTIVE DATE. This division of this Act, being 35 -18- SF 587 (4) 89 md/jh/mb 18/ 49