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
S.F. 587 deemed of immediate importance, takes effect upon enactment. 1 DIVISION II 2 COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS 3 Sec. 28. Section 2.48, subsection 3, paragraph f, 4 subparagraph (6), Code 2021, is amended by striking the 5 subparagraph. 6 Sec. 29. Section 331.512, subsection 15, Code 2021, is 7 amended by striking the subsection. 8 Sec. 30. Section 331.559, subsection 27, Code 2021, is 9 amended by striking the subsection. 10 Sec. 31. Section 441.21A, subsection 1, paragraph a, Code 11 2021, is amended to read as follows: 12 a. For each fiscal year beginning on or after July 1, 2014, 13 but before July 1, 2027, there is appropriated from the general 14 fund of the state to the department of revenue an amount 15 necessary for the payment of all commercial and industrial 16 property tax replacement claims under this section for the 17 fiscal year. However, for a the fiscal year years beginning 18 on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1, 19 2020, and July 1, 2021, the total amount of moneys appropriated 20 from the general fund of the state to the department of revenue 21 for the payment of commercial and industrial property tax 22 replacement claims in that each fiscal year shall not exceed 23 the total amount of money necessary to pay all commercial and 24 industrial property tax replacement claims for the fiscal year 25 beginning July 1, 2016. 26 Sec. 32. Section 441.21A, subsections 2 and 3, Code 2021, 27 are amended to read as follows: 28 2. a. Beginning with the For each fiscal year beginning 29 on or after July 1, 2014, but before July 1, 2022, each county 30 treasurer shall be paid by the department of revenue an 31 amount equal to the amount of the commercial and industrial 32 property tax replacement claims in the county, as calculated 33 in subsection 4 . If an amount appropriated for a the fiscal 34 year beginning on July 1, 2017, July 1, 2018, July 1, 2019, 35 -19- SF 587 (4) 89 md/jh/mb 19/ 49
S.F. 587 July 1, 2020, or July 1, 2021, is insufficient to pay all 1 replacement claims for the fiscal year , the director of revenue 2 shall prorate the payment of replacement claims to the county 3 treasurers and shall notify the county auditors of the pro rata 4 percentage on or before September 30. 5 b. For each fiscal year beginning on or after July 1, 2022, 6 but before July 1, 2027, each county treasurer shall be paid 7 by the department of revenue an amount equal to the sum of the 8 commercial and industrial property tax replacement claims for 9 all taxing authorities, or portion thereof, located in the 10 county, as calculated in subsection 4A. The county treasurer 11 shall pay to each taxing authority the taxing authority’s 12 commercial and industrial property tax replacement claim, or 13 portion thereof, as calculated in subsection 4A. 14 3. a. On or before July 1 of each fiscal year beginning on 15 or after July 1, 2014, but before July 1, 2022, the assessor 16 shall report to the county auditor the total actual value of 17 all commercial property and industrial property in the county 18 that is subject to assessment and taxation for the assessment 19 year used to calculate the taxes due and payable in that fiscal 20 year. 21 b. On or before July 1, 2022, the department of management 22 shall calculate and report to the department of revenue for 23 each taxing authority in this state that is a city or a county 24 all of the following: 25 (1) The total assessed value as of January 1, 2012, of 26 all taxable property located in the taxing authority that is 27 subject to assessment and taxation used to calculate taxes 28 which are due and payable in the fiscal year beginning July 1, 29 2013, excluding property subject to the statewide property tax 30 imposed under section 437A.18 or 437B.14. 31 (2) The total assessed value as of January 1, 2019, of 32 all taxable property located in the taxing authority that is 33 subject to assessment and taxation used to calculate taxes 34 which are due and payable in the fiscal year beginning July 1, 35 -20- SF 587 (4) 89 md/jh/mb 20/ 49
S.F. 587 2020, excluding property subject to the statewide property tax 1 imposed under section 437A.18 or 437B.14. 2 Sec. 33. Section 441.21A, subsection 4, unnumbered 3 paragraph 1, Code 2021, is amended to read as follows: 4 On or before a date established by rule of the department 5 of revenue of each fiscal year beginning on or after July 6 1, 2014, but before July 1, 2022, the county auditor shall 7 prepare a statement, based upon the report received pursuant to 8 subsection 3 , paragraph “a” , listing for each taxing district 9 in the county: 10 Sec. 34. Section 441.21A, Code 2021, is amended by adding 11 the following new subsection: 12 NEW SUBSECTION . 4A. a. As used in this subsection, unless 13 the context clearly requires otherwise: 14 (1) “Qualified taxing authority” means any of the following: 15 (a) A taxing authority that is not a city or a county. 16 (b) A taxing authority that is a city or county for which 17 the amount determined under subsection 3, paragraph “b” , 18 subparagraph (2), is less than one hundred thirty-one and 19 twenty-four hundredths percent of the amount determined under 20 subsection 3, paragraph “b” , subparagraph (1). 21 (2) “Taxing authority” means a city, county, community 22 college, or other governmental entity or political subdivision 23 in this state authorized to certify a levy on property located 24 within such authority, but does not include a school district. 25 b. For fiscal years beginning on or after July 1, 2022, 26 but before July 1, 2027, the amount of each taxing authority’s 27 replacement claim is as follows: 28 (1) If the taxing authority is a qualified taxing authority: 29 (a) For the fiscal year beginning July 1, 2022, five-sixths 30 of the amount received by the taxing authority under this 31 section for the fiscal year beginning July 1, 2021. 32 (b) For the fiscal year beginning July 1, 2023, four-sixths 33 of the amount received by the taxing authority under this 34 section for the fiscal year beginning July 1, 2021. 35 -21- SF 587 (4) 89 md/jh/mb 21/ 49
S.F. 587 (c) For the fiscal year beginning July 1, 2024, three-sixths 1 of the amount received by the taxing authority under this 2 section for the fiscal year beginning July 1, 2021. 3 (d) For the fiscal year beginning July 1, 2025, two-sixths 4 of the amount received by the taxing authority under this 5 section for the fiscal year beginning July 1, 2021. 6 (e) For the fiscal year beginning July 1, 2026, one-sixth of 7 the amount received by the taxing authority under this section 8 for the fiscal year beginning July 1, 2021. 9 (2) If the taxing authority is not a qualified taxing 10 authority: 11 (a) For the fiscal year beginning July 1, 2022, 12 three-fourths of the amount received by the taxing authority 13 under this section for the fiscal year beginning July 1, 2021. 14 (b) For the fiscal year beginning July 1, 2023, two-fourths 15 of the amount received by the taxing authority under this 16 section for the fiscal year beginning July 1, 2021. 17 (c) For the fiscal year beginning July 1, 2024, one-fourth 18 of the amount received by the taxing authority under this 19 section for the fiscal year beginning July 1, 2021. 20 (d) For the fiscal year beginning July 1, 2025, and each 21 succeeding fiscal year beginning before July 1, 2027, zero. 22 (3) The department of management shall calculate and report 23 to the department of revenue the amount received by each 24 taxing authority in this state as the result of commercial and 25 industrial property tax replacement claims paid for the fiscal 26 year beginning July 1, 2021, and the portion of the amount 27 attributable to each county where the taxing authority is 28 located, if applicable. 29 Sec. 35. Section 441.21A, subsection 5, Code 2021, is 30 amended to read as follows: 31 5. For purposes of computing replacement amounts under 32 this section for fiscal years beginning on or after July 1, 33 2014, but before July 1, 2022 , that portion of an urban renewal 34 area defined as the sum of the assessed valuations defined in 35 -22- SF 587 (4) 89 md/jh/mb 22/ 49
S.F. 587 section 403.19, subsections 1 and 2 , shall be considered a 1 taxing district. 2 Sec. 36. Section 441.21A, subsection 6, paragraph a, Code 3 2021, is amended to read as follows: 4 a. The For fiscal years beginning on or after July 1, 2014, 5 but before July 1, 2022, the county auditor shall certify 6 and forward one copy of the statement to the department of 7 revenue not later than a date of each year established by the 8 department of revenue by rule. 9 Sec. 37. Section 441.21A, subsection 6, Code 2021, is 10 amended by adding the following new paragraph: 11 NEW PARAGRAPH . f. This subsection shall apply to the 12 apportionment of replacement claim amounts for fiscal years 13 beginning on or after July 1, 2014, but before July 1, 2022. 14 Sec. 38. Section 441.21A, Code 2021, is amended by adding 15 the following new subsections: 16 NEW SUBSECTION . 7. a. For fiscal years beginning on 17 or after July 1, 2022, but before July 1, 2027, each taxing 18 authority’s replacement claim calculated under subsection 4A, 19 or portion thereof, shall be paid to the appropriate county 20 treasurer, as provided in subsection 2, paragraph “b” , in equal 21 installments in September and March of each year. 22 b. After payment by the county treasurer to the taxing 23 authority, the taxing authority’s replacement claim shall be 24 apportioned and credited by the governing body of the taxing 25 authority among the taxing authority’s tax levies in the same 26 proportion that each property tax levy bears to the total of 27 all property tax levies imposed by the taxing authority for the 28 fiscal year for which the payment is received. 29 c. Of the amounts allocated and credited to each property 30 tax levy that is subject to division under section 403.19, 31 the total amount paid into the fund for the taxing authority 32 as taxes by or for the taxing authority into which all other 33 property taxes are paid and the special fund of the applicable 34 municipality under section 403.19, subsection 2, shall be an 35 -23- SF 587 (4) 89 md/jh/mb 23/ 49
S.F. 587 amount of the replacement claim that is proportionate to the 1 amount of the total sum of the assessed value of the taxable 2 commercial and industrial property in the urban renewal area as 3 a share of total assessed value of all taxable property in the 4 taxing authority and shall be apportioned as follows: 5 (1) To the fund for the taxing authority as taxes by or for 6 the taxing authority into which all other property taxes are 7 paid, an amount proportionate to the amount of actual value of 8 the commercial and industrial property in the urban renewal 9 area as determined in section 403.19, subsection 1, that was 10 subtracted pursuant to section 403.20, as it bears to the 11 total amount of actual value of the commercial and industrial 12 property in the urban renewal area that was subtracted pursuant 13 to section 403.20 for the assessment year for property taxes 14 due and payable in the fiscal year for which the replacement 15 claim is computed. 16 (2) (a) To the special fund of the applicable municipality 17 under section 403.19, subsection 2, the remaining amount, if 18 any. 19 (b) The amount allocated under subparagraph division (a) 20 shall not exceed the amount equal to the amount certified to 21 the county auditor under section 403.19 for the fiscal year in 22 which the claim is paid, after deduction of the amount of other 23 revenues committed for payment on that amount for the fiscal 24 year. The amount not allocated as a result of the operation of 25 this subparagraph division (b) shall be allocated to and paid 26 into the fund for the taxing authority as taxes by or for the 27 taxing authority in the manner provided in subparagraph (1). 28 NEW SUBSECTION . 8. This section is repealed July 1, 2027. 29 Sec. 39. EFFECTIVE DATE. The following take effect July 1, 30 2027: 31 1. The section of this division of this Act amending section 32 331.512. 33 2. The section of this division of this Act amending section 34 331.559. 35 -24- SF 587 (4) 89 md/jh/mb 24/ 49
S.F. 587 DIVISION III 1 SCHOOL FOUNDATION PERCENTAGE 2 Sec. 40. Section 257.1, subsection 2, paragraph b, Code 3 2021, is amended to read as follows: 4 b. For the budget year commencing July 1, 1999, and for 5 each succeeding budget year beginning before July 1, 2022, 6 the regular program foundation base per pupil is eighty-seven 7 and five-tenths percent of the regular program state cost per 8 pupil. For the budget year commencing July 1, 2022, and for 9 each succeeding budget year, the regular program foundation 10 base per pupil is eighty-eight and four-tenths percent of the 11 regular program state cost per pupil. For the budget year 12 commencing July 1, 1991, and for each succeeding budget year 13 the special education support services foundation base is 14 seventy-nine percent of the special education support services 15 state cost per pupil. The combined foundation base is the sum 16 of the regular program foundation base, the special education 17 support services foundation base, the total teacher salary 18 supplement district cost, the total professional development 19 supplement district cost, the total early intervention 20 supplement district cost, the total teacher leadership 21 supplement district cost, the total area education agency 22 teacher salary supplement district cost, and the total area 23 education agency professional development supplement district 24 cost. 25 Sec. 41. Section 257.3, subsection 1, paragraph d, Code 26 2021, is amended by striking the paragraph. 27 Sec. 42. EFFECTIVE DATE. The section of this division of 28 this Act amending section 257.3, subsection 1, paragraph “d”, 29 takes effect July 1, 2022. 30 DIVISION IV 31 PUBLIC EDUCATION AND RECREATION TAX LEVY 32 Sec. 43. Section 276.10, subsection 1, Code 2021, is amended 33 to read as follows: 34 1. The board of directors of a local school district 35 -25- SF 587 (4) 89 md/jh/mb 25/ 49
S.F. 587 may establish a community education program for schools in 1 the district and provide for the general supervision of the 2 program. Financial support for the program shall may be 3 provided from funds raised pursuant to chapter 300 received by 4 the school district under chapter 423F and from any private 5 funds and any federal funds made available for the purpose of 6 implementing this chapter . The program which recognizes that 7 the schools belong to the people and which shall be centered 8 in the schools may include but shall not be limited to the use 9 of the school facilities day and night, year round including 10 weekends and regular school vacation periods for educational, 11 recreational, cultural, and other community services and 12 programs for all age, ethnic, and socioeconomic groups residing 13 in the community. 14 Sec. 44. Section 278.1, subsection 1, paragraph e, Code 15 2021, is amended to read as follows: 16 e. Direct the transfer of any surplus in the debt service 17 fund, physical plant and equipment levy fund , or other capital 18 project funds , or public education and recreation levy fund to 19 the general fund. 20 Sec. 45. Section 298A.6, Code 2021, is amended to read as 21 follows: 22 298A.6 Public education and recreation levy fund. 23 The public education and recreation levy fund is a special 24 revenue fund. A public education and recreation levy fund 25 must be established in any school corporation which levies 26 levied the tax authorized under section 300.2 , Code 2021, or 27 which receives received revenue from a chapter 28E agreement 28 authorized under section 300.1 , Code 2021 . Moneys available in 29 the fund at the conclusion of the fiscal year beginning July 1, 30 2023, and ending June 30, 2024, shall be expended by the school 31 corporation for the purposes authorized under chapter 300, Code 32 2021. 33 Sec. 46. Section 300.2, Code 2021, is amended by adding the 34 following new subsection: 35 -26- SF 587 (4) 89 md/jh/mb 26/ 49
S.F. 587 NEW SUBSECTION . 4. a. A levy under this chapter shall not 1 be approved by the voters on or after the effective date of 2 this division of this Act. 3 b. If the levy has not been discontinued under section 4 300.3, the authorization to impose the levy under this chapter 5 shall terminate July 1, 2024. 6 c. Notwithstanding subsection 2, including a proposition 7 approved at an election held before the effective date of this 8 division of this Act, the rate of a levy imposed by a board of 9 directors under this chapter for the fiscal year beginning July 10 1, 2023, shall not exceed one-half of the levy rate imposed by 11 the board of directors for the fiscal year beginning July 1, 12 2022. 13 Sec. 47. Section 423F.3, subsection 1, paragraph c, Code 14 2021, is amended by striking the paragraph. 15 Sec. 48. Section 423F.5, subsection 1, Code 2021, is amended 16 to read as follows: 17 1. A school district shall include as part of its financial 18 audit for the budget year beginning July 1, 2007, and for 19 each subsequent budget year the amount received during the 20 year pursuant to chapter 423E or this chapter , as applicable. 21 In addition, the financial audit shall include the amount 22 of bond levies , and physical plant and equipment levy , and 23 public educational and recreational levy reduced as a result 24 of the moneys received under chapter 423E or this chapter , 25 as applicable. The amount of the reductions shall be stated 26 in terms of dollars and cents per one thousand dollars of 27 valuation and in total amount of property tax dollars. Also 28 included shall be an accounting of the amount of moneys 29 received which were spent for infrastructure purposes pursuant 30 to chapter 423E or this chapter , as applicable. 31 Sec. 49. REPEAL. Sections 276.11 and 276.12, Code 2021, 32 are repealed. 33 Sec. 50. REPEAL. Chapter 300, Code 2021, is repealed. 34 Sec. 51. EFFECTIVE DATE. Except as otherwise provided in 35 -27- SF 587 (4) 89 md/jh/mb 27/ 49
S.F. 587 this division of this Act, this division of this Act takes 1 effect July 1, 2024. 2 Sec. 52. EFFECTIVE DATE. The following, being deemed of 3 immediate importance, takes effect upon enactment: 4 The section of this division of this Act enacting section 5 300.2, subsection 4. 6 Sec. 53. APPLICABILITY. Except for the section of this 7 division of this Act enacting section 300.2, subsection 4, this 8 division of this Act applies to fiscal years beginning on or 9 after July 1, 2024. 10 DIVISION V 11 ELDERLY PROPERTY TAX CREDIT 12 Sec. 54. Section 25B.7, subsection 2, paragraph b, Code 13 2021, is amended to read as follows: 14 b. Low-income property tax credit and elderly and disabled 15 property tax credit pursuant to sections 425.16 through 425.40 , 16 subject to the limitation of 41, paragraph “b” . 17 Sec. 55. Section 425.17, subsection 2, Code 2021, is amended 18 to read as follows: 19 2. a. “Claimant” means either any of the following: 20 (1) A person filing a claim for credit or reimbursement 21 under this subchapter who has attained the age of sixty-five 22 years but who has not attained the age of seventy years on 23 or before December 31 of the base year or , a person filing a 24 claim for credit or reimbursement under this subchapter who 25 is totally disabled and was totally disabled on or before 26 December 31 of the base year , or a person filing a claim for 27 reimbursement under this subchapter who has attained the age of 28 sixty-five years on or before December 31 of the base year and 29 who is domiciled in this state at the time the claim is filed or 30 at the time of the person’s death in the case of a claim filed 31 by the executor or administrator of the claimant’s estate. 32 (2) A person filing a claim for credit or reimbursement 33 under this subchapter who has attained the age of twenty-three 34 years on or before December 31 of the base year or was a head 35 -28- SF 587 (4) 89 md/jh/mb 28/ 49
S.F. 587 of household on December 31 of the base year, as defined in 1 the Internal Revenue Code, but has not attained the age or 2 disability status described in this paragraph “a” , subparagraph 3 (1) or the age status and eligibility criteria of subparagraph 4 (3) , and is domiciled in this state at the time the claim is 5 filed or at the time of the person’s death in the case of a 6 claim filed by the executor or administrator of the claimant’s 7 estate, and was not claimed as a dependent on any other 8 person’s tax return for the base year. 9 (3) A person filing a claim for credit under this subchapter 10 who has attained the age of seventy years on or before December 11 31 of the base year, who has a household income of less than 12 two hundred fifty percent of the federal poverty level, as 13 defined by the most recently revised poverty income guidelines 14 published by the United States department of health and human 15 services, and is domiciled in this state at the time the claim 16 is filed or at the time of the person’s death in the case of a 17 claim filed by the executor or administrator of the claimant’s 18 estate. 19 b. “Claimant” under paragraph “a” , subparagraph (1) or (2), 20 includes a vendee in possession under a contract for deed and 21 may include one or more joint tenants or tenants in common. 22 In the case of a claim for rent constituting property taxes 23 paid, the claimant shall have rented the property during any 24 part of the base year. In the case of a claim for property 25 taxes due, the claimant shall have occupied the property during 26 any part of the fiscal year beginning July 1 of the base year. 27 If a homestead is occupied by two or more persons, and more 28 than one person is able to qualify as a claimant, the persons 29 may each file a claim based upon each person’s income and rent 30 constituting property taxes paid or property taxes due. 31 Sec. 56. Section 425.23, subsection 1, paragraph a, 32 unnumbered paragraph 1, Code 2021, is amended to read as 33 follows: 34 The tentative credit or reimbursement for a claimant 35 -29- SF 587 (4) 89 md/jh/mb 29/ 49
S.F. 587 described in section 425.17, subsection 2 , paragraph “a” , 1 subparagraphs subparagraph (1) and (2), if no appropriation is 2 made to the fund created in section 425.40 shall be determined 3 in accordance with the following schedule: 4 Sec. 57. Section 425.23, subsection 1, Code 2021, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . c. The tentative credit for a claimant 7 described in section 425.17, subsection 2, paragraph “a” , 8 subparagraph (3), shall be the greater of the following: 9 (1) The amount of the credit under the schedule specified 10 in paragraph “a” of this subsection as if the claimant was a 11 claimant as defined in section 425.17, subsection 2, paragraph 12 “a” , subparagraph (1), filing for a credit under paragraph “a” 13 of this subsection. 14 (2) The difference between the actual amount of property 15 taxes due on the homestead during the fiscal year next 16 following the base year minus the actual amount of property 17 taxes due on the homestead during the first fiscal year for 18 which the claimant filed a claim for a credit calculated under 19 this paragraph “c” and for which the property taxes due on the 20 homestead were calculated on an assessed valuation that was 21 not a partial assessment and if the claimant has filed for the 22 credit calculated under this paragraph “c” for each of the 23 subsequent fiscal years after the first credit claimed. 24 Sec. 58. Section 425.23, subsection 4, paragraph a, Code 25 2021, is amended to read as follows: 26 a. For the base year beginning in the 1999 calendar year 27 and for each subsequent base year, the dollar amounts set 28 forth in subsections subsection 1 , paragraphs “a” and “b” , and 29 subsection 3 shall be multiplied by the cumulative adjustment 30 factor for that base year. “Cumulative adjustment factor” means 31 the product of the annual adjustment factor for the 1998 base 32 year and all annual adjustment factors for subsequent base 33 years. The cumulative adjustment factor applies to the base 34 year beginning in the calendar year for which the latest annual 35 -30- SF 587 (4) 89 md/jh/mb 30/ 49
S.F. 587 adjustment factor has been determined. 1 Sec. 59. Section 425.24, Code 2021, is amended to read as 2 follows: 3 425.24 Maximum property tax for purpose of credit or 4 reimbursement. 5 In For claimants under section 425.17, subsection 2, 6 paragraph “a” , subparagraphs (1) and (2), and for the 7 calculation under section 425.23, subsection 1, paragraph “c” , 8 subparagraph (1), in any case in which property taxes due or 9 rent constituting property taxes paid for any household exceeds 10 one thousand dollars, the amount of property taxes due or rent 11 constituting property taxes paid shall be deemed to have been 12 one thousand dollars for purposes of this subchapter . 13 Sec. 60. Section 425.39, subsection 1, as amended by 2021 14 Iowa Acts, House File 368, section 33, is amended to read as 15 follows: 16 1. a. The elderly and disabled property tax credit fund is 17 created. There is appropriated annually from the general fund 18 of the state to the department of revenue to be credited to the 19 elderly and disabled property tax credit fund, from funds not 20 otherwise appropriated, an amount sufficient to implement this 21 subchapter for credits for property taxes due for claimants 22 described in section 425.17, subsection 2 , paragraph “a” , 23 subparagraph subparagraphs (1) and (3), subject to paragraph 24 “b” . 25 b. Regardless of the amount of the credit determined under 26 section 425.23, subsection 1, paragraph “c” , the amount paid by 27 the director of revenue to each county treasurer for credits 28 for claimants described under section 425.17, subsection 2, 29 paragraph “a” , subparagraph (3), shall not exceed the amount 30 calculated for the claimant under section 425.23, subsection 1, 31 paragraph “c” , subparagraph (1), and section 25B.7, subsection 32 1, shall not apply to the amount of the credit in excess of the 33 amount paid by the director of revenue. 34 Sec. 61. APPLICABILITY. This division of this Act applies 35 -31- SF 587 (4) 89 md/jh/mb 31/ 49
S.F. 587 to claims under chapter 425, subchapter II, filed on or after 1 January 1, 2022. 2 DIVISION VI 3 FUTURE TAX CHANGES 4 Sec. 62. 2018 Iowa Acts, chapter 1161, section 133, is 5 amended by striking the section and inserting in lieu thereof 6 the following: 7 SEC. 133. EFFECTIVE DATE. This division of this Act takes 8 effect January 1, 2023. 9 DIVISION VII 10 CHARITABLE CONSERVATION CONTRIBUTION TAX CREDIT 11 Sec. 63. Section 2.48, subsection 3, paragraph e, 12 subparagraph (6), Code 2021, is amended by striking the 13 subparagraph. 14 Sec. 64. Section 422.33, subsection 25, Code 2021, is 15 amended by striking the subsection. 16 Sec. 65. REPEAL. Section 422.11W, Code 2021, is repealed. 17 Sec. 66. APPLICABILITY. This division of this Act applies 18 to conveyances made on or after July 1, 2021. 19 DIVISION VIII 20 FOREST RESERVATIONS 21 Sec. 67. Section 427C.1, Code 2021, is amended to read as 22 follows: 23 427C.1 Tax exemption. 24 1. Any person who establishes a forest or The owner of a 25 fruit-tree reservation as provided in this chapter shall be 26 entitled to the tax exemption provided by law. 27 2. a. The owner of a forest reservation as provided in this 28 chapter shall be entitled to the tax exemption provided by law 29 for assessment years beginning on or after January 1, 2022, 30 if, subject to the schedule for reapplication adopted under 31 subsection 3, the owner is actively engaged in the operation or 32 management of the forest reservation. 33 b. The natural resource commission shall adopt rules 34 pursuant to chapter 17A to interpret the requirement of 35 -32- SF 587 (4) 89 md/jh/mb 32/ 49
S.F. 587 paragraph “a” that the owner of a forest reservation be 1 actively engaged in the operation or management of the forest 2 reservation, including but not limited to standards for 3 wildlife control practices, invasive species control measures, 4 conservation measures, and forest practices. The minimum 5 requirements for being considered actively engaged in the 6 operation or management of the forest reservation established 7 by the natural resource commission shall be based on the 8 conservation goals for the property as stated by the owner 9 in the exemption application, the use of the property by the 10 owner, and the characteristics of the property, including the 11 pervasiveness of wildlife populations and invasive species 12 populations on the property and the impact of such populations 13 on the forest reservation and surrounding properties. 14 c. (1) For each forest reservation application filed after 15 February 1, 2021, but on or before February 1, 2022, the owner 16 must file by February 1, 2022, with the department of natural 17 resources, evidence that the owner meets the requirement for 18 active engagement in the operation or management of the forest 19 reservation. 20 (2) The department of natural resources shall prepare and 21 make available a form to assist owners in complying with the 22 requirement of subparagraph (1). 23 3. The department of revenue, in consultation with the 24 department of natural resources, shall by rule establish five 25 regions within the state. Forest reservation exemptions 26 for which the application was filed on or before February 27 1, 2021, shall terminate as provided in this subsection 28 and the owners of such forest reservations must reapply for 29 the exemption under this chapter. In order to efficiently 30 process applications, the five regions shall be established 31 to include approximately an equal number of acres of forest 32 reservations in each region. For forest reservations subject 33 to this subsection, the requirement for the owner to be 34 actively engaged in the operation or management of the forest 35 -33- SF 587 (4) 89 md/jh/mb 33/ 49
S.F. 587 reservation shall not apply until the owner reapplies for the 1 forest reservation exemption. 2 a. Exemptions for forest reservations in the first region 3 shall end at the conclusion of the assessment year beginning 4 January 1, 2021, and in order to continue receiving the 5 exemption for the five-year period specified in section 427C.3, 6 beginning with the assessment year beginning January 1, 2022, 7 each owner must reapply on or before February 1, 2022. 8 b. Exemptions for forest reservations in the second region 9 shall end at the conclusion of the assessment year beginning 10 January 1, 2022, and in order to continue receiving the 11 exemption for the five-year period specified in section 427C.3, 12 beginning with the assessment year beginning January 1, 2023, 13 each owner must reapply on or before February 1, 2023. 14 c. Exemptions for forest reservations in the third region 15 shall end at the conclusion of the assessment year beginning 16 January 1, 2023, and in order to continue receiving the 17 exemption for the five-year period specified in section 427C.3, 18 beginning with the assessment year beginning January 1, 2024, 19 each owner must reapply on or before February 1, 2024. 20 d. Exemptions for forest reservations in the fourth region 21 shall end at the conclusion of the assessment year beginning 22 January 1, 2024, and in order to continue receiving the 23 exemption for the five-year period specified in section 427C.3, 24 beginning with the assessment year beginning January 1, 2025, 25 each owner must reapply on or before February 1, 2025. 26 e. Exemptions for forest reservations in the fifth region 27 shall end at the conclusion of the assessment year beginning 28 January 1, 2025, and in order to continue receiving the 29 exemption for the five-year period specified in section 427C.3, 30 beginning with the assessment year beginning January 1, 2026, 31 each owner must reapply on or before February 1, 2026. 32 Sec. 68. Section 427C.3, Code 2021, is amended to read as 33 follows: 34 427C.3 Forest reservation —— duration of exemption . 35 -34- SF 587 (4) 89 md/jh/mb 34/ 49
S.F. 587 1. A forest reservation shall contain not less than two 1 hundred growing forest trees on each acre. If the area 2 selected is a forest containing the required number of growing 3 forest trees, it shall be accepted as a forest reservation 4 under this chapter for a period of five years provided 5 application is made or on file on or before February 1 of the 6 exemption year. If any buildings are standing on an area 7 selected as a forest reservation under this section or a 8 fruit-tree reservation under section 427C.7 , one acre of that 9 area shall be excluded from the tax exemption. However, the 10 exclusion of that acre shall not affect the area’s meeting the 11 acreage requirement of section 427C.2 . 12 2. For forest reservation exemption applications filed on 13 or after February 2, 2021, but on or before February 1, 2022, 14 the five-year period provided under subsection 1 begins with 15 the assessment year beginning January 1, 2022, unless the owner 16 fails to satisfy the requirement of section 427C.1, subsection 17 2, paragraph “c” . 18 Sec. 69. Section 427C.7, Code 2021, is amended to read as 19 follows: 20 427C.7 Fruit-tree reservation —— duration of exemption. 21 A fruit-tree reservation shall contain on each acre, 22 at least forty apple trees, or seventy other fruit trees, 23 growing under proper care and annually pruned and sprayed. 24 A reservation may be claimed as a fruit-tree reservation, 25 under this chapter , for a period of eight years after planting 26 provided application is made or on file on or before February 27 1 of the exemption year. If any buildings are standing on an 28 area selected as a fruit-tree reservation under this section, 29 one acre of that area shall be excluded from the tax exemption. 30 However, the exclusion of that acre shall not affect the area’s 31 meeting the acreage requirement of section 427C.2. 32 Sec. 70. Section 427C.10, Code 2021, is amended to read as 33 follows: 34 427C.10 Restraint of livestock and limitation on use. 35 -35- SF 587 (4) 89 md/jh/mb 35/ 49
S.F. 587 1. Cattle, horses, mules, sheep, goats, ostriches, rheas, 1 emus, and swine shall not be permitted upon a fruit-tree or 2 forest forest or fruit-tree reservation. 3 2. a. Fruit-tree and forest Forest and fruit-tree 4 reservations shall not be used for economic gain other than the 5 gain from raising fruit or forest trees. 6 b. The prohibition under paragraph “a” includes but is not 7 limited to leases or charges for persons who enter or go on the 8 reservation for the recreational use thereof or for hunting. 9 Sec. 71. Section 427C.12, Code 2021, is amended to read as 10 follows: 11 427C.12 Application —— inspection —— continuation of 12 exemption —— recapture of tax. 13 1. It shall be the duty of the assessor to secure the facts 14 relative to fruit-tree and forest reservations by taking the 15 sworn statement, or affirmation, of the owner or owners making 16 application under this chapter ; and to make special report to 17 the county auditor of all reservations made in the county under 18 the provisions of this chapter . 19 2. a. The board of supervisors shall designate the county 20 conservation board or the assessor who shall inspect the area 21 for which an application is filed for a fruit-tree or forest 22 reservation tax exemption before the application is accepted. 23 b. The department of natural resources shall review the 24 application for a forest reservation tax exemption before the 25 application is accepted. 26 c. Use of The department of natural resources shall use 27 aerial photographs may be substituted for on-site inspection 28 when appropriate provided by the county assessor to determine 29 if the application meets the criteria established by the 30 natural resource commission to be a forest reservation . 31 3. The application can only be accepted if it meets the 32 criteria established by the natural resource commission to 33 be a fruit-tree or forest reservation department of natural 34 resources may conduct an on-site review if necessary to verify 35 -36- SF 587 (4) 89 md/jh/mb 36/ 49
S.F. 587 the eligibility of a forest reservation application . 1 4. Once the application has been accepted, the area shall 2 continue to receive the tax exemption during each year of the 3 applicable exemption period under section 427C.3 or 427C.7 4 in which the area is maintained as a fruit-tree or forest or 5 fruit-tree reservation without the owner having to refile. If 6 the property is sold or transferred, the seller shall notify 7 the buyer that all, or part of, the property is in fruit-tree 8 or forest reservation and subject to the recapture tax 9 provisions of this section . The tax exemption shall continue 10 to be granted for the remainder of the eight-year exemption 11 period for fruit-tree reservation and for the following years 12 for forest reservation under section 427C.3 or 427C.7, or until 13 the property no longer qualifies as a fruit-tree or forest or 14 fruit-tree reservation. 15 5. a. The An area that is a fruit-tree reservation may 16 be inspected each year by the county conservation board or 17 the assessor to determine if the area is maintained as a 18 fruit-tree or forest reservation. An area that is a forest 19 reservation may be inspected each year by the department of 20 natural resources to determine if the area is maintained as 21 forest reservation. If the area is not maintained or is used 22 for economic gain other than as a fruit-tree reservation during 23 any year of the eight-year exemption period and any year of 24 the following five years following the exemption period, if 25 the property is no longer receiving an exemption under this 26 chapter, or as a forest reservation during any year for which 27 of the exemption is granted period and any of the five years 28 following those exemption years the exemption period, if 29 the property is no longer receiving an exemption under this 30 chapter , the assessor shall assess the property for taxation 31 at its fair market value as of January 1 of that year and 32 in addition the area shall be subject to a recapture tax. 33 However, the area shall not be subject to the recapture tax if 34 the owner, including one possessing under a contract of sale, 35 -37- SF 587 (4) 89 md/jh/mb 37/ 49
S.F. 587 and the owner’s direct antecedents or descendants have owned 1 the area for more than ten years. 2 b. The recapture tax shall be computed by multiplying the 3 consolidated levy for each of those years, if any, of the five 4 preceding years for which the area received the exemption for 5 fruit-tree or forest reservation times the assessed value of 6 the area that would have been taxed but for the tax exemption. 7 This tax shall be entered against the property on the tax list 8 for the current year and shall constitute a lien against the 9 property in the same manner as a lien for property taxes. The 10 tax when collected shall be apportioned in the manner provided 11 for the apportionment of the property taxes for the applicable 12 tax year. 13 6. Upon expiration of the applicable exemption period, the 14 owner of a forest or fruit-tree reservation may reapply for 15 an exemption under this chapter if the property meets all the 16 criteria for the exemption under this chapter. 17 Sec. 72. Section 441.22, Code 2021, is amended to read as 18 follows: 19 441.22 Forest and fruit-tree reservations. 20 Forest and fruit-tree reservations fulfilling the conditions 21 of sections 427C.1 to 427C.13 chapter 427C shall be exempt from 22 taxation to the extent authorized in that chapter . In all 23 other cases where trees are planted upon any tract of land, 24 without regard to area, for forest, fruit, shade, or ornamental 25 purposes, or for windbreaks, the assessor shall not increase 26 the valuation of the property because of such improvements. 27 Sec. 73. SAVINGS PROVISION. This division of this Act, 28 pursuant to section 4.13, does not affect the operation of, 29 or prohibit the application of, prior provisions of chapter 30 427C or section 441.22, or rules adopted under chapter 17A to 31 administer prior provisions of chapter 427C or section 441.22, 32 for assessment years beginning before January 1, 2022, and for 33 duties, powers, protests, appeals, proceedings, actions, or 34 remedies attributable to an assessment year beginning before 35 -38- SF 587 (4) 89 md/jh/mb 38/ 49
S.F. 587 January 1, 2022. 1 Sec. 74. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 Sec. 75. APPLICABILITY. This division of this Act applies 4 to assessment years beginning on or after January 1, 2022. 5 DIVISION IX 6 TRANSIT FUNDING 7 Sec. 76. Section 28M.3, subsection 1, Code 2021, is amended 8 to read as follows: 9 1. A regional transit district shall have all the rights, 10 powers, and duties of a county enterprise pursuant to sections 11 331.462 through 331.469 as they relate to the purpose for 12 which the regional transit district is created, including 13 the authority to issue revenue bonds for the establishment, 14 construction, reconstruction, repair, equipping, remodeling, 15 extension, maintenance, and operation of works, vehicles, and 16 facilities of a regional transit district. In addition, a 17 regional transit district, with the approval of the board of 18 supervisors, may issue general obligation bonds as an essential 19 county purpose pursuant to chapter 331, subchapter IV, part 3 , 20 for the establishment, construction, reconstruction, repair, 21 equipping, remodeling, extension, maintenance, and operation of 22 works, vehicles, and facilities of a regional transit district. 23 Such general obligation bonds are payable from the property tax 24 levy authorized in section 28M.5 and from the transit hotel and 25 motel tax imposed under section 423A.4, subsection 1, paragraph 26 “b” , if applicable . 27 Sec. 77. Section 28M.4, subsection 3, Code 2021, is amended 28 to read as follows: 29 3. A commission shall adopt and certify an annual budget 30 for the regional transit district. A commission in its budget 31 shall allocate the revenue responsibilities of each county and 32 city participating in the regional transit district , subject 33 to reductions in the maximum authorized property tax levy 34 rate under section 28M.5, if applicable . A commission shall 35 -39- SF 587 (4) 89 md/jh/mb 39/ 49
S.F. 587 be considered a municipality for purposes of adopting and 1 certifying a budget pursuant to chapter 24 . 2 Sec. 78. Section 28M.4, Code 2021, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 4A. A commission may, following approval at 5 election, impose a transit hotel and motel tax under section 6 423A.4, subsection 1, paragraph “b” . 7 Sec. 79. Section 28M.4, subsections 5 and 6, Code 2021, are 8 amended to read as follows: 9 5. A commission shall levy for the tax under section 28M.5 10 and shall control any tax revenues paid to the regional transit 11 district the commission administers and , including all moneys 12 derived from the operation of the regional transit district, 13 a transit hotel and motel tax imposed under section 423A.4, 14 subsection 1, paragraph “b” , the sale of its the district’s 15 property, interest on investments, or from any other source 16 related to the regional transit district. 17 6. Tax revenues collected from a regional transit district 18 levy or a transit hotel and motel tax under section 423A.4, 19 subsection 1, paragraph “b” , shall be held by the county 20 treasurer. Before the fifteenth day of each month, the county 21 treasurer shall send the amount collected for each fund through 22 the last day of the preceding month for direct deposit into 23 the depository and account designated by the commission. The 24 county treasurer shall send a notice to the secretary of the 25 commission or the secretary’s designee stating the amount 26 deposited, the date, the amount to be credited to each fund 27 according to the budget, and the source of the revenue. 28 Sec. 80. Section 28M.5, subsections 1 and 4, Code 2021, are 29 amended to read as follows: 30 1. a. The commission, with the approval of the board of 31 supervisors of participating counties and the city council of 32 participating cities in the chapter 28E agreement, may , subject 33 to the reductions required under paragraph “b” , levy annually a 34 tax not to exceed ninety-five cents per thousand dollars of the 35 -40- SF 587 (4) 89 md/jh/mb 40/ 49
S.F. 587 assessed value of all taxable property in a regional transit 1 district to the extent provided in this section . The chapter 2 28E agreement may authorize the commission to levy the tax at 3 different rates within the participating cities and counties in 4 amounts sufficient to meet the revenue responsibilities of such 5 cities and counties as allocated in the budget adopted by the 6 commission. However, for a city participating in a regional 7 transit district, the total of all the tax levies imposed in 8 the city pursuant to section 384.12, subsection 10 , and this 9 section shall not exceed the aggregate of ninety-five cents per 10 thousand dollars of the assessed value of all taxable property 11 in the participating city or the levy rate determined under 12 paragraph “b” , whichever is less . 13 b. (1) If a regional transit district imposes a transit 14 hotel and motel tax under section 423A.4, subsection 1, 15 paragraph “b” , the maximum levy rate authorized under this 16 section shall be reduced as provided in this paragraph. For 17 each fiscal year beginning on or after July 1 following the 18 first calendar year for which the transit hotel and motel 19 tax is imposed in the regional transit district, and until 20 subparagraph (4) applies, the levy rate imposed under this 21 section shall not exceed a rate equal to the rate that would 22 be required for the fiscal year beginning July 1 following the 23 election approving the transit hotel and motel tax to collect 24 an amount equal to the property taxes collected by the regional 25 transit district for the fiscal year beginning July 1 following 26 the election approving the transit hotel and motel tax minus 27 the amount of transit hotel and motel tax revenue received by 28 the regional transit district for the first calendar year for 29 which the transit hotel and motel tax is imposed. 30 (2) If the regional transit district authorizes the 31 commission to levy the tax at different rates within the 32 participating cities and counties, as authorized under 33 paragraph “a” , the levy rate reduction required under this 34 paragraph shall be applied by the department of management 35 -41- SF 587 (4) 89 md/jh/mb 41/ 49
S.F. 587 to each participating city and county based upon the revenue 1 responsibilities of such cities and counties as provided in the 2 chapter 28E agreement on the date the transit hotel and motel 3 tax is approved at election. 4 (3) If a regional transit district increases the rate of the 5 transit hotel and motel tax, further reductions in the maximum 6 authorized levy rate under this section shall be implemented 7 in the same manner as provided under subparagraphs (1) and (2) 8 for the reductions following initial imposition of the transit 9 hotel and motel tax. 10 (4) If the regional transit district repeals the transit 11 hotel and motel tax, the maximum authorized levy rate shall be 12 ninety-five cents per thousand dollars of the assessed value 13 for fiscal years beginning after the date of termination under 14 section 423A.4, unless the transit hotel and motel tax is 15 reinstated. 16 4. The proceeds of the tax levy and other authorized 17 revenues of the regional transit district shall be used for 18 the operation and maintenance of a regional transit district, 19 for payment of debt obligations of the district, and for the 20 creation of a reserve fund. The commission may divide the 21 territory of a regional transit district outside the boundaries 22 of a city into separate service areas and impose a regional 23 transit district levy not to exceed the maximum rate authorized 24 by this section in each service area. 25 Sec. 81. Section 303.52, subsection 4, paragraph a, Code 26 2021, is amended to read as follows: 27 a. The board of trustees may by ordinance impose a local 28 hotel and motel tax in accordance with chapter 423A . 29 Sec. 82. Section 331.402, subsection 2, paragraph f, Code 30 2021, is amended to read as follows: 31 f. Impose a local hotel and motel tax in accordance with 32 chapter 423A . 33 Sec. 83. Section 384.12, subsection 10, Code 2021, is 34 amended to read as follows: 35 -42- SF 587 (4) 89 md/jh/mb 42/ 49
S.F. 587 10. a. A tax for the operation and maintenance of a 1 municipal transit system or for operation and maintenance of a 2 regional transit district, and for the creation of a reserve 3 fund for the system or district, in an amount not to exceed 4 ninety-five cents per thousand dollars of assessed value 5 each year or the levy rate determined under paragraph “b” , 6 if applicable , when the revenues from the transit system or 7 district are insufficient for such purposes. 8 b. (1) If the city participates in a regional transit 9 district under chapter 28M that imposes a transit hotel and 10 motel tax under section 423A.4, the maximum levy rate shall be 11 the levy rate determined under section 28M.5, subsection 1, 12 paragraph “b” . 13 (2) (a) If the city imposes a transit hotel and motel tax 14 under section 423A.4, the maximum levy rate shall be reduced as 15 provided in this subparagraph. For each fiscal year beginning 16 on or after July 1 following the first calendar year for which 17 the transit hotel and motel tax is imposed in the city, and 18 until subparagraph division (c) applies, the levy rate imposed 19 under this subsection shall not exceed a rate equal to the rate 20 that would be required for the fiscal year beginning July 1 21 following the election approving the transit hotel and motel 22 tax to collect an amount equal to the property taxes collected 23 by the city under this subsection for the fiscal year beginning 24 July 1 following the election approving the transit hotel and 25 motel tax minus the amount of transit hotel and motel tax 26 revenue received by the city for the first calendar year for 27 which the transit hotel and motel tax is imposed. 28 (b) If a city increases the rate of the transit hotel and 29 motel tax, further reductions in the maximum authorized levy 30 rate under this subsection shall be implemented in the same 31 manner as provided under subparagraph division (a) for the 32 reduction following initial imposition of the transit hotel and 33 motel tax. 34 (c) If the city repeals the transit hotel and motel tax, 35 -43- SF 587 (4) 89 md/jh/mb 43/ 49
S.F. 587 the maximum authorized levy rate shall be ninety-five cents 1 per thousand dollars of the assessed value for fiscal years 2 beginning after the date of termination under section 423A.4, 3 unless the transit hotel and motel tax is reinstated. 4 Sec. 84. Section 423A.4, Code 2021, is amended to read as 5 follows: 6 423A.4 Locally imposed Local hotel and motel tax —— transit 7 hotel and motel tax . 8 1. a. A city, a county, or a land use district created 9 under chapter 303, subchapter IV, may impose, by ordinance of 10 the city council or by resolution of the board of supervisors 11 or by ordinance of the board of trustees, a local hotel and 12 motel tax, at a rate not to exceed seven percent, which shall 13 be imposed in increments of one or more full percentage points 14 upon the sales price from the renting of lodging. The tax 15 when imposed by a city shall apply only within the corporate 16 boundaries of that city, when imposed by a county shall apply 17 only outside incorporated areas within that county, and when 18 imposed by a land use district shall apply only within the 19 corporate boundaries of that district. A local hotel and motel 20 tax imposed by a city or county shall not be imposed within the 21 corporate boundaries of a land use district during any period 22 of time that the land use district is imposing a local hotel 23 and motel tax. 24 b. A regional transit district or a city that is not 25 participating in a regional transit district may impose, by 26 resolution of the regional transit district commission or by 27 ordinance of the city council, a transit hotel and motel tax, 28 at a rate not to exceed five percent, which shall be imposed 29 in increments of one or more full percentage points upon the 30 sales price from the renting of lodging. The tax when imposed 31 by a regional transit district shall apply only within the 32 boundaries of the regional transit district and may be imposed 33 in addition to any tax imposed under paragraph “a” . The tax 34 when imposed by a city shall apply only within the corporate 35 -44- SF 587 (4) 89 md/jh/mb 44/ 49
S.F. 587 boundaries of that city and may be imposed in addition to any 1 tax imposed under paragraph “a” . 2 2. Within ten days of the election at which a majority of 3 those voting on the question favors the imposition, repeal, 4 or change in the rate of the local hotel and motel tax or the 5 transit hotel and motel tax , the county auditor shall give 6 written notice by sending a copy of the abstract of votes from 7 the favorable election to the director of revenue. 8 3. A local hotel and motel tax imposed by a city, county, 9 or land use district shall be imposed on January 1 or July 10 1, following the notification of the director of revenue. A 11 transit hotel and motel tax imposed by a regional transit 12 district or a city shall be imposed on January 1, following the 13 notification of the director of revenue. Once imposed, the tax 14 shall remain in effect at the rate imposed for a minimum of 15 one year. A local hotel and motel tax or a transit hotel and 16 motel tax shall terminate only on June 30 or December 31. At 17 least forty-five days prior to the tax being effective or prior 18 to a revision in the tax rate or prior to the repeal of the 19 tax, a city, county, or land use district , or regional transit 20 district shall provide notice by mail of such action to the 21 director of revenue. The director shall have the authority to 22 waive the notice requirement. 23 4. a. A city, county, or land use district shall impose 24 or repeal a hotel and motel tax or increase or reduce the 25 tax rate only after an election at which a majority of those 26 voting on the question favors imposition, repeal, or change 27 in rate. A regional transit district or city shall impose or 28 repeal a transit hotel and motel tax or increase or reduce the 29 tax rate only after an election at which a majority of those 30 voting on the question favors imposition, repeal, or change in 31 rate. However, a local hotel and motel tax of a city or county 32 shall not be repealed or reduced in rate if obligations are 33 outstanding which are payable as provided in section 423A.7 , 34 unless funds sufficient to pay the principal, interest, and 35 -45- SF 587 (4) 89 md/jh/mb 45/ 49
S.F. 587 premium, if any, on the outstanding obligations at and prior 1 to maturity have been properly set aside and pledged for that 2 purpose. 3 b. (1) If the local hotel and motel tax applies only within 4 the corporate boundaries of a city, only the registered voters 5 of the city shall be permitted to vote. The election shall be 6 held at the time of the regular city election or at a special 7 election called for that purpose. 8 (2) If the local hotel and motel tax applies only in the 9 unincorporated areas of a county or only within the corporate 10 boundaries of a land use district, only the registered voters 11 of the unincorporated areas of the county or the registered 12 voters of the land use district, as applicable, shall be 13 permitted to vote. The election shall be held at the time of 14 the general election or at a special election called for that 15 purpose. 16 (3) For a transit hotel and motel tax imposed by a regional 17 transit district, only the registered voters of the regional 18 transit district shall be permitted to vote. The election 19 shall be held at the time of the general election or the 20 regular city election. 21 (4) For a transit hotel and motel tax imposed by a city, 22 only the registered voters of the city shall be permitted to 23 vote. The election shall be held at the time of the general 24 election or the regular city election. 25 5. The locally imposed local hotel and motel tax and the 26 transit hotel and motel tax shall be collected and remitted as 27 provided in section 423A.5A . 28 Sec. 85. Section 423A.5A, subsection 3, Code 2021, is 29 amended to read as follows: 30 3. Unless otherwise provided in this section , the 31 state-imposed tax under section 423A.3 and any locally , the 32 local hotel and motel tax imposed tax under section 423A.4 , and 33 the transit hotel and motel tax imposed under section 423A.4, 34 shall be collected by the lodging provider from the user of 35 -46- SF 587 (4) 89 md/jh/mb 46/ 49
S.F. 587 that lodging and shall be remitted to the department. The 1 lodging provider shall add the state-imposed tax to the sales 2 price of the lodging and the tax, when collected, shall be 3 stated as a distinct item, separate and apart from the sales 4 price of the lodging and from the locally imposed tax taxes 5 imposed under section 423A.4 , if any. The lodging provider 6 shall add the locally imposed each tax imposed under section 7 423A.4 , if any, to the sales price of the lodging and the tax, 8 when collected, shall be stated as a distinct item, separate 9 and apart from the sales price of the lodging , and from the 10 state-imposed tax , and from the other taxes imposed under 11 section 423A.4 . 12 Sec. 86. Section 423A.6, subsections 1, 3, and 4, Code 2021, 13 are amended to read as follows: 14 1. The director of revenue shall administer the state , 15 and local , and transit hotel and motel tax taxes as nearly as 16 possible in conjunction with the administration of the state 17 sales tax law, except that portion of the law which implements 18 the streamlined sales and use tax agreement. The director 19 shall provide appropriate forms, or provide on the regular 20 state tax forms, for reporting state , and local , and transit 21 hotel and motel tax liability. All moneys received or refunded 22 one hundred eighty days after the date on which a city, county, 23 or land use district , or regional transit district, terminates 24 its local hotel and motel tax or transit hotel and motel tax 25 and all moneys received from the state hotel and motel tax 26 shall be deposited in or withdrawn from the general fund of the 27 state. 28 3. The director, in consultation with local officials, 29 shall collect and account for a local hotel and motel tax and a 30 transit hotel and motel tax and shall credit all revenues to 31 the local transient guest tax fund created in section 423A.7 . 32 Local authorities shall not require any tax permit not required 33 by the director of revenue. 34 4. Section 422.25, subsection 4 , sections 422.30 , 422.67 , 35 -47- SF 587 (4) 89 md/jh/mb 47/ 49
S.F. 587 and 422.68 , section 422.69, subsection 1 , sections 422.70 , 1 422.71 , 422.72 , 422.74 , and 422.75 , section 423.14, subsection 2 1 , and sections 423.23 , 423.24 , 423.25 , 423.31 , 423.33 , 3 423.35 , 423.37 through 423.42 , and 423.47 , consistent with the 4 provisions of this chapter , apply with respect to the taxes 5 authorized under this chapter , in the same manner and with 6 the same effect as if the state , and local , and transit hotel 7 and motel taxes were retail sales taxes within the meaning of 8 those statutes. Notwithstanding this subsection , the director 9 shall provide for quarterly filing of returns and for other 10 than quarterly filing of returns both as prescribed in section 11 423.31 . The director may require all persons who are engaged 12 in the business of deriving any sales price subject to tax 13 under this chapter to register with the department. All taxes 14 collected under this chapter by a retailer, lodging provider, 15 lodging facilitator, lodging platform, or any other person are 16 deemed to be held in trust for the state of Iowa and the local 17 jurisdictions imposing the taxes. 18 Sec. 87. Section 423A.7, subsections 2 and 3, Code 2021, are 19 amended to read as follows: 20 2. All moneys in the local transient guest tax fund shall 21 be remitted at least quarterly