Senate File 619 - Reprinted SENATE FILE 619 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1276) (As Amended and Passed by the Senate May 17, 2021 ) A BILL FOR An Act relating to state and local revenue and finance by 1 modifying future tax contingencies, the state inheritance 2 tax, the sales and use tax relating to food banks, the tax 3 on promotional play receipts, the sales and use tax relating 4 to food banks, the tax on promotional play receipts, mental 5 health and disability services funding, school district 6 funding, commercial and industrial property tax replacement 7 payments, providing for housing incentives, providing for 8 other properly related matters, making appropriations, and 9 including effective date, applicability, and retroactive 10 applicability provisions. 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 12 SF 619 (2) 89 jm/jh/mb
S.F. 619 DIVISION I 1 FUTURE TAX CONTINGENCIES 2 Section 1. 2018 Iowa Acts, chapter 1161, section 133, is 3 amended by striking the section and inserting in lieu thereof 4 the following: 5 SEC. 133. EFFECTIVE DATE. This division of this Act takes 6 effect January 1, 2023. 7 DIVISION II 8 CHILD DEPENDENT AND DEVELOPMENT TAX CREDITS 9 Sec. 2. Section 422.12C, subsection 1, paragraphs f and g, 10 Code 2021, are amended to read as follows: 11 f. For a taxpayer with net income of forty thousand dollars 12 or more but less than forty-five ninety thousand dollars, 13 thirty percent. 14 g. For a taxpayer with net income of forty-five ninety 15 thousand dollars or more, zero percent. 16 Sec. 3. Section 422.12C, subsection 2, paragraph a, Code 17 2021, is amended to read as follows: 18 a. The taxes imposed under this subchapter , less the amounts 19 of nonrefundable credits allowed under this subchapter , may 20 be reduced by an early childhood development tax credit equal 21 to twenty-five percent of the first one thousand dollars 22 which the taxpayer has paid to others for each dependent, as 23 defined in the Internal Revenue Code, ages three through five 24 for early childhood development expenses. In determining the 25 amount of early childhood development expenses for the tax year 26 beginning in the 2006 calendar year only, such expenses paid 27 during November and December of the previous tax year shall 28 be considered paid in the tax year for which the tax credit 29 is claimed. This credit is available to a taxpayer whose net 30 income is less than forty-five ninety thousand dollars. If the 31 early childhood development tax credit is claimed for a tax 32 year, the taxpayer and the taxpayer’s spouse shall not claim 33 the child and dependent care credit under subsection 1 . 34 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 35 -1- SF 619 (2) 89 jm/jh/mb 1/ 64
S.F. 619 Act applies retroactively to tax years beginning on or after 1 January 1, 2021. 2 DIVISION III 3 COVID-19 RELATED GRANTS —— TAXATION 4 Sec. 5. Section 422.7, subsection 62, Code 2021, is amended 5 to read as follows: 6 62. a. Subtract, to the extent included, the amount of 7 any financial assistance qualifying COVID-19 grant provided to 8 an eligible small issued to an individual or business by the 9 economic development authority under the Iowa small business 10 relief grant program created during calendar year 2020 to 11 provide financial assistance to eligible small businesses 12 economically impacted by the COVID-19 pandemic , the Iowa 13 finance authority, or the department of agriculture and land 14 stewardship . 15 b. For purposes of this subsection, “qualifying COVID-19 16 grant” includes any grant that was issued between March 17, 17 2020, and December 31, 2021, identified by the department 18 by rule under a grant program created to primarily provide 19 COVID-19 related financial assistance to economically 20 impacted individuals and businesses located in this state, 21 and administered by the economic development authority, Iowa 22 finance authority, or the department of agriculture and land 23 stewardship. 24 c. The economic development authority, Iowa finance 25 authority, or the department of agriculture and land 26 stewardship shall notify the department of any COVID-19 grant 27 program that may qualify under this subsection in the manner 28 and form prescribed by the department. 29 d. This subsection is repealed January 1, 2024, and does not 30 apply to tax years beginning on or after that date. 31 Sec. 6. Section 422.35, subsection 30, Code 2021, is amended 32 to read as follows: 33 30. a. Subtract, to the extent included, the amount of 34 any financial assistance qualifying COVID-19 grant provided 35 -2- SF 619 (2) 89 jm/jh/mb 2/ 64
S.F. 619 to an eligible small issued to a business by the economic 1 development authority under the Iowa small business relief 2 grant program created during calendar year 2020 to provide 3 financial assistance to eligible small businesses economically 4 impacted by the COVID-19 pandemic , the Iowa finance authority, 5 or the department of agriculture and land stewardship . 6 b. For purposes of this subsection, “qualifying COVID-19 7 grant” means the same as defined in section 422.7, subsection 8 62, paragraph “b” . 9 c. The economic development authority, Iowa finance 10 authority, or the department of agriculture and land 11 stewardship shall notify the department of any COVID-19 grant 12 program that may qualify under this subsection in the manner 13 and form prescribed by the department. 14 d. This subsection is repealed January 1, 2024, and does not 15 apply to tax years beginning on or after that date. 16 Sec. 7. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 Sec. 8. RETROACTIVE APPLICABILITY. This division of this 19 Act applies retroactively to March 17, 2020, for tax years 20 ending on or after that date. 21 DIVISION IV 22 FEDERAL PAYCHECK PROTECTION PROGRAM 23 Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM. 24 Notwithstanding any other provision of the law to the contrary, 25 for any tax year ending after March 27, 2020, Division N, Tit. 26 II, subtit. B, §276 and §278(a), of the federal Consolidated 27 Appropriations Act, 2021, Pub. L. No. 116-260, applies in 28 computing net income for state tax purposes under section 422.7 29 or 422.35. 30 Sec. 10. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 DIVISION V 33 STATE INHERITANCE TAX 34 Sec. 11. Section 450.10, Code 2021, is amended by adding the 35 -3- SF 619 (2) 89 jm/jh/mb 3/ 64
S.F. 619 following new subsection: 1 NEW SUBSECTION . 7. a. In lieu of each rate of tax imposed 2 in subsections 1 through 4, for property passing from the 3 estate of a decedent dying on or after January 1, 2021, but 4 before January 1, 2022, there shall be imposed a rate of tax 5 equal to the applicable tax rate in subsections 1 through 6 4, reduced by twenty percent, and rounded to the nearest 7 one-hundredth of one percent. 8 b. In lieu of each rate of tax imposed in subsections 1 9 through 4, for property passing from the estate of a decedent 10 dying on or after January 1, 2022, but before January 1, 2023, 11 there shall be imposed a rate of tax equal to the applicable 12 tax rate in subsections 1 through 4, reduced by forty percent, 13 and rounded to the nearest one-hundredth of one percent. 14 c. In lieu of each rate of tax imposed in subsections 1 15 through 4, for property passing from the estate of a decedent 16 dying on or after January 1, 2023, but before January 1, 2024, 17 there shall be imposed a rate of tax equal to the applicable 18 tax rate in subsections 1 through 4, reduced by sixty percent, 19 and rounded to the nearest one-hundredth of one percent. 20 d. In lieu of each rate of tax imposed in subsections 1 21 through 4, for property passing from the estate of a decedent 22 dying on or after January 1, 2024, but before January 1, 2025, 23 there shall be imposed a rate of tax equal to the applicable 24 tax rate in subsections 1 through 4, reduced by eighty percent, 25 and rounded to the nearest one-hundredth of one percent. 26 Sec. 12. NEW SECTION . 450.98 Tax repealed. 27 Effective January 1, 2025, this chapter shall not apply to 28 property of estates of decedents dying on or after January 1, 29 2025. The inheritance tax shall not be imposed under this 30 chapter in the event the decedent dies on or after January 1, 31 2025, and, to this extent, this chapter is repealed. 32 Sec. 13. NEW SECTION . 450B.8 Tax repealed. 33 Effective January 1, 2025, this chapter shall not apply to 34 property of estates of decedents dying on or after January 1, 35 -4- SF 619 (2) 89 jm/jh/mb 4/ 64
S.F. 619 2025. The qualified use inheritance tax shall not be imposed 1 under this chapter in the event the decedent dies on or after 2 January 1, 2025, and, to this extent, this chapter is repealed. 3 Sec. 14. DEPARTMENT OF REVENUE. The department of revenue 4 is directed to review references to Code chapters 450 and 450B 5 and submit proposed corrections to such references in bill form 6 to the general assembly by the 2022 regular session of the 7 eighty-ninth general assembly. 8 Sec. 15. EFFECTIVE DATE. This division of this Act, being 9 deemed of immediate importance, takes effect upon enactment. 10 Sec. 16. RETROACTIVE APPLICABILITY. This division of this 11 Act applies retroactively to the estates of decedents dying on 12 or after January 1, 2021. 13 DIVISION VI 14 HOUSING TRUST FUND 15 Sec. 17. Section 428A.8, subsection 3, Code 2021, is amended 16 to read as follows: 17 3. Notwithstanding subsection 2 , the amount of money that 18 shall be transferred pursuant to this section to the housing 19 trust fund in any one fiscal year shall not exceed three seven 20 million dollars. Any money that otherwise would be transferred 21 pursuant to this section to the housing trust fund in excess 22 of that amount shall be deposited in the general fund of the 23 state. 24 DIVISION VII 25 HIGH QUALITY JOBS PROGRAM —— DAY CARE CENTERS 26 Sec. 18. Section 15.327, Code 2021, is amended by adding the 27 following new subsection: 28 NEW SUBSECTION . 016. “Licensed center” means the same as 29 defined in section 237A.1. 30 Sec. 19. Section 15.329, Code 2021, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 3A. In addition to the factors in 33 subsection 3, in determining the eligibility of a business to 34 participate in the program the authority may consider whether a 35 -5- SF 619 (2) 89 jm/jh/mb 5/ 64
S.F. 619 proposed project will provide a licensed center for use by the 1 business’s employees. 2 DIVISION VIII 3 TELEHEALTH 4 Sec. 20. Section 514C.34, subsection 1, Code 2021, is 5 amended by adding the following new paragraphs: 6 NEW PARAGRAPH . 0a. “Covered person” means the same as 7 defined in section 514J.102. 8 NEW PARAGRAPH . 00a. “Facility” means the same as defined in 9 section 514J.102. 10 NEW PARAGRAPH . 0c. “Health carrier” means the same as 11 defined in section 514J.102. 12 Sec. 21. Section 514C.34, subsection 1, paragraph c, Code 13 2021, is amended to read as follows: 14 c. “Telehealth” means the delivery of health care services 15 through the use of real-time interactive audio and video , or 16 other real-time interactive electronic media, regardless of 17 where the health care professional and the covered person are 18 each located . “Telehealth” does not include the delivery of 19 health care services delivered solely through an audio-only 20 telephone, electronic mail message, or facsimile transmission. 21 Sec. 22. Section 514C.34, Code 2021, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 3A. a. A health carrier shall reimburse 24 a health care professional and a facility for health care 25 services provided by telehealth to a covered person for a 26 mental health condition, illness, injury, or disease on the 27 same basis and at the same rate as the health carrier would 28 apply to the same health care services for a mental health 29 condition, illness, injury, or disease provided in person to a 30 covered person by the health care professional or the facility. 31 b. As a condition of reimbursement pursuant to paragraph 32 “a” , a health carrier shall not require that an additional 33 health care professional be located in the same room as a 34 covered person while health care services for a mental health 35 -6- SF 619 (2) 89 jm/jh/mb 6/ 64
S.F. 619 condition, illness, injury, or disease are provided via 1 telehealth by another health care professional to the covered 2 person. 3 Sec. 23. EFFECTIVE DATE. This division of this Act, being 4 deemed of immediate importance, takes effect upon enactment. 5 Sec. 24. RETROACTIVE APPLICABILITY. This division of 6 this Act applies to health care services for a mental health 7 condition, illness, injury, or disease provided by a health 8 care professional or a facility to a covered person by 9 telehealth on or after January 1, 2021. 10 DIVISION IX 11 HIGH QUALITY JOBS AND RENEWABLE CHEMICAL PRODUCTION TAX CREDITS 12 Sec. 25. Section 15.119, subsection 2, paragraph a, 13 subparagraphs (2) and (3), Code 2021, are amended to read as 14 follows: 15 (2) In allocating tax credits pursuant to this subsection 16 for each fiscal year of the fiscal period beginning July 1, 17 2016, and ending June 30, 2021 the fiscal year beginning July 18 1, 2021, and for each fiscal year thereafter , the authority 19 shall not allocate more than one hundred five seventy million 20 dollars for purposes of this paragraph. This subparagraph (2) 21 is repealed July 1, 2021. 22 (3) (a) In allocating tax credits pursuant to this 23 subsection for the fiscal year beginning July 1, 2021, and 24 ending June 30, 2022, the authority shall not allocate more 25 than one hundred five million dollars for purposes of this 26 paragraph if the aggregate amount of renewable chemical 27 production tax credits under section 15.319 that were awarded 28 on or after July 1, 2018, but before July 1, 2021, equals or 29 exceeds twenty-seven million dollars. 30 (b) As soon as practicable after June 30, 2021, the 31 authority shall notify the general assembly of the aggregate 32 amount of renewable chemical production tax credits awarded 33 under section 15.319 on or after July 1, 2018, but before 34 July 1, 2021, and whether or not the tax credit allocation 35 -7- SF 619 (2) 89 jm/jh/mb 7/ 64
S.F. 619 limitation described in subparagraph division (a) is 1 applicable. 2 (c) This subparagraph (3) is repealed July 1, 2022. 3 Sec. 26. Section 15.119, subsection 2, paragraph h, Code 4 2021, is amended to read as follows: 5 h. The renewable chemical production tax credit program 6 administered pursuant to sections 15.315 through 15.322 . In 7 allocating tax credits pursuant to this subsection for the 8 fiscal year beginning July 1, 2021, and for each fiscal year 9 thereafter , the authority shall not allocate more than ten five 10 million dollars for purposes of this paragraph. This paragraph 11 is repealed July 1, 2030. 12 Sec. 27. EFFECTIVE DATE. This division of this Act, being 13 deemed of immediate importance, takes effect upon enactment. 14 DIVISION X 15 HIGH QUALITY JOBS —— ELIGIBILITY REQUIREMENTS 16 Sec. 28. HIGH QUALITY JOBS —— REDUCTIONS IN OPERATIONS. 17 1. Notwithstanding section 15.329, subsection 1, paragraph 18 “b”, subparagraph (2), the economic development authority shall 19 not presume that a reduction in operations is a reduction in 20 operations while simultaneously applying for assistance with 21 regard to a business that submits an application on or before 22 June 30, 2022, if the business demonstrates to the satisfaction 23 of the authority all of the following: 24 a. That the reduction in operations occurred after March 1, 25 2020. 26 b. That the reduction in operations was caused by the 27 COVID-19 pandemic. 28 2. The economic development authority shall consider 29 whether the benefit of the project proposed by a business 30 under subsection 1 outweighs any negative impact related to 31 the business’s reduction in operations. The business shall 32 remain subject to all other eligibility requirements pursuant 33 to section 15.329. 34 3. This section is repealed July 1, 2022. 35 -8- SF 619 (2) 89 jm/jh/mb 8/ 64
S.F. 619 DIVISION XI 1 MANUFACTURING 4.0 2 Sec. 29. NEW SECTION . 15.371 Manufacturing 4.0 technology 3 investment program. 4 1. This section shall be known as and may be cited as the 5 “Manufacturing 4.0 Technology Investment Program” . 6 2. For purposes of this section unless the context otherwise 7 requires: 8 a. “Financial assistance” means the same as defined in 9 section 15.102. 10 b. “Manufacturing 4.0 technology investments” means projects 11 that are intended to lead to the adoption of, and integration 12 of, smart technologies into existing manufacturing operations 13 located in the state by mitigating the risk to the manufacturer 14 of significant technology investments. Projects may include 15 investments in specialized hardware, software, or other 16 equipment intended to assist a manufacturer in increasing the 17 manufacturer’s productivity, efficiency, and competitiveness. 18 3. a. A manufacturing 4.0 technology investment fund 19 is created within the state treasury under the control of 20 the authority for the purpose of financing manufacturing 4.0 21 technology investments as described in this section. 22 b. The fund may be administered as a revolving fund and 23 may consist of any moneys appropriated by the general assembly 24 for purposes of this section and any other moneys that are 25 lawfully available to the authority. Any moneys appropriated 26 to the fund shall be used for purposes of the manufacturing 27 4.0 technology investment program. The authority may use all 28 other moneys in the fund, including interest, earnings, and 29 recaptures, for purposes of this section. 30 c. Notwithstanding section 8.33, moneys appropriated in this 31 section that remain unencumbered or unobligated at the close of 32 the fiscal year shall not revert but shall remain available for 33 expenditure for the purposes designated until the close of the 34 succeeding fiscal year. 35 -9- SF 619 (2) 89 jm/jh/mb 9/ 64
S.F. 619 d. Notwithstanding any law to the contrary, the authority 1 may transfer any unobligated and unencumbered moneys in the 2 fund, except for moneys appropriated for purposes of this 3 section, to any fund created pursuant to section 15.106A, 4 subsection 1, paragraph “o” . 5 4. The authority shall establish and administer a 6 manufacturing 4.0 technology investment program and shall use 7 moneys in the fund to award financial assistance to eligible 8 manufacturers for manufacturing 4.0 technology investments. 9 5. To be eligible for a financial assistance award under the 10 manufacturing 4.0 technology investment program, a manufacturer 11 must do all of the following: 12 a. Manufacture goods at a facility located in this state. 13 b. Have a North American industry classification system 14 number within the manufacturing sector range of 31-33. 15 c. Have been an established business for a minimum of three 16 years prior to the date of application to the program. 17 d. Derive a minimum of fifty-one percent of the 18 manufacturer’s gross revenue from the sale of manufactured 19 goods. 20 e. Employ a minimum of three full-time employees and no 21 more than seventy-five full-time employees across all of the 22 manufacturer’s locations. 23 f. Have an assessment of the manufacturer’s proposed 24 manufacturing 4.0 technology investment completed by the center 25 for industrial research and service at Iowa state university of 26 science and technology. 27 g. Demonstrate the ability to provide matching financial 28 support for the manufacturer’s manufacturing 4.0 technology 29 investment on a one-to-one basis. The matching financial 30 support must be obtained from private sources. 31 6. Eligible manufacturers shall submit applications to the 32 manufacturing 4.0 technology investment program in the manner 33 prescribed by the authority by rule. 34 7. a. The authority may accept applications during one 35 -10- SF 619 (2) 89 jm/jh/mb 10/ 64
S.F. 619 or more application periods each fiscal year as determined by 1 the authority. All completed applications shall be reviewed 2 and scored on a competitive basis pursuant to rules adopted by 3 the authority. The authority may engage an outside technical 4 review panel to complete technical reviews of applications. 5 The board shall review the recommendations of the authority 6 and of the technical review panel, if applicable, and shall 7 approve, defer, or deny each application. 8 b. In making recommendations to the board, the authority and 9 the technical review panel, if applicable, shall consider all 10 of the following: 11 (1) The completeness of the manufacturer’s application. 12 (2) Whether the board should approve or deny an application. 13 (3) If the board approves an application, the type and 14 amount of financial assistance that should to be awarded to the 15 applicant. 16 (4) The percentage of the manufacturer’s gross revenue 17 that is derived from the sale of manufactured goods pursuant 18 to subsection 5, paragraph “d” . 19 (5) Whether the manufacturer’s proposed manufacturing 20 4.0 technology investment is consistent with the assessment 21 completed by the center for industrial research and service at 22 Iowa state university of science and technology pursuant to 23 subsection 5, paragraph “f” . 24 c. The board shall not approve an application for financial 25 assistance for a manufacturing 4.0 technology investment that 26 was made prior to the date of the application. 27 8. From moneys appropriated to the manufacturing 4.0 28 technology investment fund from the general fund of the state 29 and any other state moneys lawfully available to the authority 30 for the manufacturing 4.0 technology investment program, the 31 maximum amount of financial assistance awarded from such moneys 32 to an eligible manufacturer shall not exceed seventy-five 33 thousand dollars. 34 9. The authority shall adopt rules pursuant to chapter 17A 35 -11- SF 619 (2) 89 jm/jh/mb 11/ 64
S.F. 619 necessary to implement and administer this section. 1 DIVISION XII 2 ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM 3 Sec. 30. Section 476.10A, subsection 2, Code 2021, is 4 amended to read as follows: 5 2. Notwithstanding section 8.33 , any unexpended moneys 6 remitted to the treasurer of state under this section shall be 7 retained for the purposes designated. Notwithstanding section 8 12C.7, subsection 2 , interest or earnings on investments or 9 time deposits of the moneys remitted under this section shall 10 be retained and used for the purposes designated, pursuant to 11 section 476.46 . 12 Sec. 31. Section 476.46, subsection 2, paragraph e, 13 subparagraph (3), Code 2021, is amended to read as follows: 14 (3) Interest on the fund shall be deposited in the fund. 15 A portion of the interest on the fund, not to exceed fifty 16 percent of the total interest accrued, shall be used for 17 promotion and administration of the fund. 18 Sec. 32. Section 476.46, Code 2021, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 3. The Iowa energy center shall not 21 initiate any new loans under this section after June 30, 2021. 22 NEW SUBSECTION . 4. Loan payments received under this 23 section on or after July 1, 2021, and any other moneys in the 24 fund on or after July 1, 2021, shall be deposited in the energy 25 infrastructure revolving loan fund created in section 476.46A. 26 Sec. 33. NEW SECTION . 476.46A Energy infrastructure 27 revolving loan program. 28 1. a. An energy infrastructure revolving loan fund is 29 created in the office of the treasurer of state and shall be 30 administered by the Iowa energy center established in section 31 15.120. 32 b. The fund may be administered as a revolving fund and may 33 consist of any moneys appropriated by the general assembly for 34 purposes of this section and any other moneys that are lawfully 35 -12- SF 619 (2) 89 jm/jh/mb 12/ 64
S.F. 619 directed to the fund. 1 c. Moneys in the fund shall be used to provide financial 2 assistance for the development and construction of energy 3 infrastructure, including projects that support electric or gas 4 generation transmission, storage, or distribution; electric 5 grid modernization; energy-sector workforce development; 6 emergency preparedness for rural and underserved areas; the 7 expansion of biomass, biogas, and renewable natural gas; 8 innovative technologies; and the development of infrastructure 9 for alternative fuel vehicles. 10 d. Notwithstanding section 8.33, moneys appropriated in this 11 section that remain unencumbered or unobligated at the close of 12 the fiscal year shall not revert but shall remain available for 13 expenditure for the purposes designated until the close of the 14 succeeding fiscal year. 15 e. Notwithstanding section 12C.7, subsection 2, interest or 16 earnings on moneys in the fund shall be credited to the fund. 17 2. a. The Iowa energy center shall establish and administer 18 an energy infrastructure revolving loan program to encourage 19 the development of energy infrastructure within the state. 20 b. An individual, business, rural electric cooperative, or 21 municipal utility located and operating in this state shall be 22 eligible for financial assistance under the program. With the 23 approval of the Iowa energy center governing board established 24 under section 15.120, subsection 2, the economic development 25 authority shall determine the amount and the terms of all 26 financial assistance awarded to an individual, business, rural 27 electric cooperative, or municipal utility under the program. 28 All agreements and administrative authority sha11 be vested in 29 the Iowa energy center governing board. 30 c. The economic development authority may use not more than 31 five percent of the moneys in the fund at the beginning of each 32 fiscal year for purposes of administrative costs, marketing, 33 technical assistance, and other program support. 34 3. For the purposes of this section: 35 -13- SF 619 (2) 89 jm/jh/mb 13/ 64
S.F. 619 a. “Energy infrastructure” means land, buildings, physical 1 plant and equipment, and services directly related to the 2 development of projects used for, or useful for, electricity or 3 gas generation, transmission, storage, or distribution. 4 b. “Financial assistance” means the same as defined in 5 section 15.102. 6 Sec. 34. ALTERNATE ENERGY REVOLVING LOAN FUND —— MONEYS 7 TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated 8 moneys remaining after June 30, 2021, in the alternate energy 9 revolving loan fund created pursuant to section 476.46, are 10 transferred and appropriated to the energy infrastructure 11 revolving loan fund created pursuant to section 476.46A, to be 12 used for purposes of the energy infrastructure revolving loan 13 program. 14 DIVISION XIII 15 WORKFORCE HOUSING TAX INCENTIVES 16 Sec. 35. Section 15.119, subsection 2, paragraph g, Code 17 2021, is amended to read as follows: 18 g. (1) The workforce housing tax incentives program 19 administered pursuant to sections 15.351 through 15.356 . 20 In allocating tax credits pursuant to this subsection , the 21 authority shall not allocate more than twenty-five thirty-five 22 million dollars for purposes of this paragraph. Of the moneys 23 allocated under this paragraph, ten seventeen million five 24 hundred thousand dollars shall be reserved for allocation to 25 qualified housing projects in small cities, as defined in 26 section 15.352 , that are registered on or after July 1, 2017. 27 (2) (a) Notwithstanding subparagraph (1), in allocating 28 tax credits pursuant to this subsection for the fiscal year 29 beginning July 1, 2021, and ending June 30, 2022, the authority 30 shall not allocate more than forty million dollars for the 31 purposes of this paragraph. Of the moneys allocated under 32 this paragraph for the fiscal year beginning July 1, 2021, and 33 ending June 30, 2022, twelve million dollars shall be reserved 34 for allocation to qualified housing projects in small cities, 35 -14- SF 619 (2) 89 jm/jh/mb 14/ 64
S.F. 619 as defined in section 15.352, that are registered on or after 1 July 1, 2017. 2 (b) This subparagraph is repealed July 1, 2022. 3 Sec. 36. Section 15.354, subsection 3, paragraph d, Code 4 2021, is amended to read as follows: 5 d. Upon completion of a housing project, an a housing 6 business shall submit all of the following to the authority: 7 (1) An examination of the project in accordance with the 8 American institute of certified public accountants’ statements 9 on standards for attestation engagements, completed by a 10 certified public accountant authorized to practice in this 11 state , shall be submitted to the authority . 12 (2) A statement of the final amount of qualifying new 13 investment for the housing project. 14 (3) Any information the authority deems necessary to ensure 15 compliance with the agreement signed by the housing business 16 pursuant to paragraph “a” , the requirements of this part, 17 and rules the authority and the department of revenue adopt 18 pursuant to section 15.356. 19 Sec. 37. Section 15.354, subsection 3, paragraph e, 20 subparagraph (1), Code 2021, is amended to read as follows: 21 (1) Upon review of the examination , and verification of 22 the amount of the qualifying new investment, and review of 23 any other information submitted pursuant to paragraph “d” , 24 subparagraph (3), the authority may notify the housing business 25 of the amount that the housing business may claim as a refund 26 of the sales and use tax under section 15.355, subsection 2 , 27 and may issue a tax credit certificate to the housing business 28 stating the amount of workforce housing investment tax credits 29 under section 15.355 , subsection 3 , the eligible housing 30 business may claim. The sum of the amount that the housing 31 business may claim as a refund of the sales and use tax and 32 the amount of the tax credit certificate shall not exceed the 33 amount of the tax incentive award. 34 Sec. 38. Section 15.354, subsection 6, paragraphs b and c, 35 -15- SF 619 (2) 89 jm/jh/mb 15/ 64
S.F. 619 Code 2021, are amended to read as follows: 1 b. Notwithstanding subsection 1 , the authority may accept 2 applications for disaster recovery housing projects on a 3 continuous basis establish a disaster recovery application 4 period following the declaration of a major disaster by the 5 president of the United States for a county in Iowa . 6 c. Notwithstanding subsection 2 , paragraphs “a” , “b” , and 7 “d” , upon Upon review of a housing business’s application , 8 and scoring of all applications received during a disaster 9 recovery application period, the authority may make a tax 10 incentive award to a disaster recovery housing project. The 11 tax incentive award shall represent the maximum amount of tax 12 incentives that the disaster recovery housing project may 13 qualify for under the program. In determining a tax incentive 14 award, the authority shall not use an amount of project costs 15 that exceeds the amount included in the application of the 16 housing business. Tax incentive awards shall be approved by 17 the director of the authority. 18 Sec. 39. Section 15.355, subsection 2, Code 2021, is amended 19 to read as follows: 20 2. A housing business may claim a refund of the sales and 21 use taxes paid under chapter 423 that are directly related to 22 a housing project and specified in the agreement. The refund 23 available pursuant to this subsection shall be as provided in 24 section 15.331A , excluding subsection 2 , paragraph “c” , of 25 that section. For purposes of the program, the term “project 26 completion” , as used in section 15.331A , shall mean the date 27 on which the authority notifies the department of revenue that 28 all applicable requirements of an the agreement entered into 29 pursuant to section 15.354 , subsection 3, paragraph “a” , and 30 all applicable requirements of this part, including the rules 31 the authority and the department of revenue adopted pursuant to 32 section 15.356, are satisfied. 33 DIVISION XIV 34 BROWNFIELDS AND GRAYFIELDS 35 -16- SF 619 (2) 89 jm/jh/mb 16/ 64
S.F. 619 Sec. 40. Section 15.119, subsection 3, Code 2021, is amended 1 to read as follows: 2 3. In allocating the amount of tax credits authorized 3 pursuant to subsection 1 among the programs specified in 4 subsection 2 , the authority shall not allocate more than ten 5 fifteen million dollars for purposes of subsection 2 , paragraph 6 “f” . 7 Sec. 41. Section 15.293A, subsection 8, Code 2021, is 8 amended to read as follows: 9 8. This section is repealed on June 30, 2021 2031 . 10 Sec. 42. Section 15.293B, Code 2021, is amended by adding 11 the following new subsection: 12 NEW SUBSECTION . 5A. a. Tax credits revoked under 13 subsection 3 including tax credits revoked up to five years 14 prior to the effective date of this division of this Act, and 15 tax credits not awarded under subsection 4 or 5, may be awarded 16 in the next annual application period established in subsection 17 1, paragraph “c” . 18 b. Tax credits awarded pursuant to paragraph “a” shall not 19 be counted against the limit under section 15.119, subsection 20 3. 21 Sec. 43. Section 15.293B, subsection 7, Code 2021, is 22 amended to read as follows: 23 7. This section is repealed on June 30, 2021 2031 . 24 Sec. 44. EFFECTIVE DATE. The following, being deemed of 25 immediate importance, take effect upon enactment: 26 1. The section of this division of this Act amending section 27 15.293A, subsection 8. 28 2. The section of this division of this Act amending section 29 15.293B, subsection 7. 30 DIVISION XV 31 DOWNTOWN LOAN GUARANTEE PROGRAM 32 Sec. 45. NEW SECTION . 15.431 Downtown loan guarantee 33 program. 34 1. The economic development authority, in partnership with 35 -17- SF 619 (2) 89 jm/jh/mb 17/ 64
S.F. 619 the Iowa finance authority, shall establish and administer a 1 downtown loan guarantee program to encourage Iowa downtown 2 businesses and banks to reinvest and reopen following the 3 COVID-19 pandemic. 4 2. In order for a loan to be guaranteed, all of the 5 following conditions must be true: 6 a. The loan finances an eligible downtown resource center 7 community catalyst building remediation grant project or main 8 street Iowa challenge grant within a designated district. 9 b. The loan finances a rehabilitation project, or finances 10 acquisition or refinancing costs associated with the project. 11 c. At least twenty-five percent of the project costs are 12 used for construction on the project or renovation. 13 d. The project includes a housing component. 14 e. The loan is used for construction of the project, 15 permanent financing of the project, or both. 16 f. A federally insured financial lending institution issued 17 the loan. 18 g. The loan does not reimburse the borrower for working 19 capital, operations, or similar expenses. 20 h. The project meets downtown resource center and main 21 street Iowa design review. 22 3. a. For a loan amount less than or equal to five hundred 23 thousand dollars, the economic development authority may 24 guarantee up to fifty percent of the loan amount. 25 b. For a loan amount greater than five hundred thousand 26 dollars, the economic development authority may provide a 27 maximum loan guarantee of up to two hundred fifty thousand 28 dollars. 29 4. A project loan must be secured by a mortgage against the 30 project property. 31 5. The economic development authority may guarantee loans 32 for up to five years. The economic development authority 33 may extend the loan guarantee for an additional five years 34 if an underwriting review finds that an extension would be 35 -18- SF 619 (2) 89 jm/jh/mb 18/ 64
S.F. 619 beneficial. 1 6. The lender shall pay an annual loan guarantee fee as set 2 forth by rule. 3 7. The economic development authority reserves the right 4 to deny a loan guarantee for unreasonable bank loan fees or 5 interest rate. 6 8. The loan must not be insured or guaranteed by another 7 local, state, or federal guarantee program. 8 9. The loan guarantee is not transferable if the loan or the 9 project is sold or transferred. 10 10. In the event of a loss due to default, the loan 11 guarantee proportionally pays the guarantee percentage of the 12 loss to the lender. 13 11. Moneys for the program may consist of any moneys 14 appropriated by the general assembly for purposes of this 15 section, and any other moneys that are lawfully available 16 to the economic development authority, including moneys 17 transferred or deposited from other funds created pursuant to 18 section 15.106A, subsection 1, paragraph “o” . 19 DIVISION XVI 20 DISASTER RECOVERY HOUSING ASSISTANCE 21 Sec. 46. NEW SECTION . 16.57A Transfer of unobligated or 22 unencumbered funds —— report. 23 1. Notwithstanding any other provision of law to the 24 contrary, the authority may transfer any unobligated and 25 unencumbered moneys in any revolving loan program fund created 26 pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit 27 in the disaster recovery housing assistance fund created in 28 section 16.57B. 29 2. Notwithstanding section 8.39, and any other law to 30 the contrary, with the prior written consent and approval of 31 the governor, the executive director of the authority may 32 transfer any unobligated and unencumbered moneys in any fund 33 created pursuant to section 16.5, subsection 1, paragraph 34 “s” , for deposit in the disaster recovery housing assistance 35 -19- SF 619 (2) 89 jm/jh/mb 19/ 64
S.F. 619 fund created in section 16.57B. The prior written consent and 1 approval of the director of the department of management shall 2 not be required to transfer the unobligated and unencumbered 3 moneys. 4 3. Notwithstanding section 8.39, and any other law to the 5 contrary, with the prior written approval of the governor, the 6 director of the economic development authority may transfer 7 any unobligated and unencumbered moneys in any fund created 8 pursuant to section 15.106A, subsection 1, paragraph “o” , 9 for deposit in the disaster recovery housing assistance fund 10 created in section 16.57B. 11 4. Any transfer made under this section shall be reported in 12 the same manner as provided in section 8.39, subsection 5. 13 Sec. 47. NEW SECTION . 16.57B Disaster recovery housing 14 assistance program —— fund. 15 1. Definitions. As used in this section, unless the context 16 otherwise requires: 17 a. Disaster-affected home” means a primary residence that 18 is destroyed or damaged due to a natural disaster that occurs 19 on or after the effective date of this division of this Act, 20 and the primary residence is located in a county that is the 21 subject of a state of disaster emergency proclamation by the 22 governor that authorizes disaster recovery housing assistance. 23 b. “Fund” means the disaster recovery housing assistance 24 fund. 25 c. “Local program administrator” means any of the following: 26 (1) The cities of Ames, Cedar Falls, Cedar Rapids, Council 27 Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo, 28 and West Des Moines. 29 (2) A council of governments whose territory includes at 30 least one county that is the subject of a state of disaster 31 emergency proclamation by the governor that authorizes disaster 32 recovery housing assistance or the eviction prevention program 33 under section 16.57C on or after the effective date of this 34 division of this Act. 35 -20- SF 619 (2) 89 jm/jh/mb 20/ 64
S.F. 619 (3) A community action agency as defined in section 216A.91 1 and whose territory includes at least one county that is the 2 subject of a state of disaster emergency proclamation by the 3 governor that authorizes disaster recovery housing assistance 4 or the eviction prevention program under section 16.57C on or 5 after the effective date of this division of this Act. 6 (4) A qualified local organization or governmental entity 7 as determined by rules adopted by the authority. 8 d. “Program” means the disaster recovery housing assistance 9 program. 10 e. “Replacement housing” means housing purchased 11 by a homeowner or leased by a renter needed to replace 12 a disaster-affected home that is destroyed or damaged 13 beyond reasonable repair as determined by a local program 14 administrator. 15 f. “State of disaster emergency” means the same as described 16 in section 29C.6, subsection 1. 17 2. Fund. 18 a. (1) A disaster recovery housing assistance fund is 19 created within the authority. The moneys in the fund shall be 20 used by the authority for the development and operation of a 21 forgivable loan and grant program for homeowners and renters 22 with disaster-affected homes, and for the eviction prevention 23 program pursuant to section 16.57C. 24 (2) Notwithstanding section 12C.7, subsection 2, interest 25 or earnings on moneys deposited in the fund shall be credited 26 to the fund. Notwithstanding section 8.33, moneys credited to 27 the fund shall not revert at the close of a fiscal year. 28 b. Moneys transferred by the authority for deposit in the 29 fund, moneys appropriated to the fund, and any other moneys 30 available to and obtained or accepted by the authority for 31 placement in the fund shall be deposited in the fund. 32 c. The authority shall not use more than five percent of 33 the moneys in the fund on July 1 of a fiscal year for purposes 34 of administrative costs and other program support during the 35 -21- SF 619 (2) 89 jm/jh/mb 21/ 64
S.F. 619 fiscal year. 1 3. Program. 2 a. The authority shall establish and administer a disaster 3 recovery housing assistance program and shall use moneys in 4 the fund to award forgivable loans to eligible homeowners and 5 grants to eligible renters of disaster-affected homes. Moneys 6 in the fund may be expended following a state of disaster 7 emergency proclamation by the governor pursuant to section 8 29C.6 that authorizes disaster recovery housing assistance. 9 b. The authority may enter into an agreement with one or 10 more local program administrators to administer the program. 11 4. Registration required. To be considered for a forgivable 12 loan or grant under the program, a homeowner or renter must 13 register for the disaster case management program established 14 pursuant to section 29C.20B. The disaster case manager may 15 refer the homeowner or renter to the appropriate local program 16 administrator. 17 5. Homeowners. 18 a. To be eligible for a forgivable loan under the program, 19 all of the following requirements shall apply: 20 (1) The homeowner’s disaster-affected home must have 21 sustained damage greater than the damage that is covered by the 22 homeowner’s property and casualty insurance policy insuring the 23 home plus any other state or federal disaster-related financial 24 assistance that the homeowner is eligible to receive. 25 (2) A local official must either deem the disaster-affected 26 home suitable for rehabilitation or damaged beyond reasonable 27 repair. 28 (3) The disaster-affected home is not eligible for buyout by 29 the county or city where the disaster-affected home is located, 30 or the disaster-affected home is eligible for a buyout by the 31 county or city where the disaster-affected home is located, but 32 the homeowner is requesting a forgivable loan for the repair 33 or rehabilitation of the homeowner’s disaster-affected home in 34 lieu of a buyout. 35 -22- SF 619 (2) 89 jm/jh/mb 22/ 64
S.F. 619 (4) Assistance under the program must not duplicate 1 benefits provided by any local, state, or federal disaster 2 recovery assistance program. 3 b. If a homeowner is referred to the authority or to a 4 local program administrator by the disaster case manager of the 5 homeowner, the authority may award a forgivable loan to the 6 eligible homeowner for any of the following purposes: 7 (1) Repair or rehabilitation of the disaster-affected home. 8 (2) (a) Down payment assistance on the purchase of 9 replacement housing, and the cost of reasonable repairs to be 10 performed on the replacement housing to render the replacement 11 housing decent, safe, sanitary, and in good repair. 12 (b) Replacement housing shall not be located in a 13 one-hundred-year floodplain. 14 (c) For purposes of this subparagraph, “decent, safe, 15 sanitary, and in good repair” means the same as described in 24 16 C.F.R. §5.703. 17 c. The authority shall determine the interest rate for the 18 forgivable loan. 19 d. If a homeowner who has been awarded a forgivable loan 20 sells a disaster-affected home or replacement housing for which 21 the homeowner received the forgivable loan prior to the end 22 of the loan term, the remaining principal on the forgivable 23 loan shall be due and payable pursuant to rules adopted by the 24 authority. 25 6. Renters. 26 a. To be eligible for a grant under the program, all of the 27 following requirements shall apply: 28 (1) A local program administrator either deems 29 the disaster-affected home of the renter suitable for 30 rehabilitation but unsuitable for current short-term 31 habitation, or the disaster-affected home is damaged beyond 32 reasonable repair. 33 (2) Assistance under the program must not duplicate 34 benefits provided by any local, state, or federal disaster 35 -23- SF 619 (2) 89 jm/jh/mb 23/ 64
S.F. 619 recovery assistance program. 1 b. If a renter is referred to the authority or to a local 2 program administrator by the disaster case manager of the 3 renter, the authority may award a grant to the eligible renter 4 to provide short-term financial assistance for the payment of 5 rent for replacement housing. 6 7. Report. On or before January 31 of each year, the 7 authority shall submit a report to the general assembly 8 that identifies all of the following for the calendar year 9 immediately preceding the year of the report: 10 a. The date of each state of disaster emergency proclamation 11 by the governor that authorized disaster recovery housing 12 assistance under this section. 13 b. The total number of forgivable loans and grants awarded. 14 c. The total number of forgivable loans, and the amount of 15 each loan awarded for repair or rehabilitation. 16 d. The total number of forgivable loans, and the amount of 17 each loan, awarded for down payment assistance on the purchase 18 of replacement housing and the cost of reasonable repairs to be 19 performed on the replacement housing to render the replacement 20 housing decent, safe, sanitary, and in good repair. 21 e. The total number of grants, and the amount of each grant, 22 awarded for rental assistance. 23 f. The total number of forgivable loans and grants awarded 24 in each county in which at least one homeowner or renter has 25 been awarded a forgivable loan or grant. 26 g. Each local program administrator involved in the 27 administration of the program. 28 h. The total amount of forgivable loan principal repaid. 29 Sec. 48. NEW SECTION . 16.57C Eviction prevention program. 30 1. a. “Eligible renter” means a renter whose income meets 31 the qualifications of the program, who is at risk of eviction, 32 and who resides in a county that is the subject of a state of 33 disaster emergency proclamation by the governor that authorizes 34 the eviction prevention program. 35 -24- SF 619 (2) 89 jm/jh/mb 24/ 64
S.F. 619 b. “Eviction prevention partner” means a qualified local 1 organization or governmental entity as determined by rule by 2 the authority. 3 2. The authority shall establish and administer an eviction 4 prevention program. Under the eviction prevention program, 5 the authority shall award grants to eligible renters and to 6 eviction prevention partners for purposes of this section. 7 Grants may be awarded upon a state of disaster emergency 8 proclamation by the governor that authorizes the eviction 9 prevention program. Eviction prevention assistance shall be 10 paid out of the fund established in section 16.57B. 11 3. a. Grants awarded to eligible renters pursuant to this 12 section shall be used for short-term financial rent assistance 13 to keep eligible renters in the current residences of such 14 renters. 15 b. Grants awarded to eviction prevention partners pursuant 16 to this section shall be used to pay for rent or services 17 provided to eligible renters for the purpose of preventing the 18 eviction of eligible renters. 19 4. The authority may enter into an agreement with one or 20 more local program administrators to administer the program. 21 Sec. 49. NEW SECTION . 16.57D Rules. 22 The authority shall adopt rules pursuant to chapter 17A to 23 implement and administer this part, including rules to do all 24 of the following: 25 1. Establish the maximum forgivable loan and grant amounts 26 awarded under the program. 27 2. Establish the terms of any forgivable loan provided under 28 the program. 29 3. Income qualifications of eligible renters in the 30 eviction prevention program. 31 Sec. 50. CODE EDITOR DIRECTIVE. The Code editor shall 32 designate sections 16.57A through 16.57D, as enacted by 33 this division of this Act, as a new part within chapter 16, 34 subchapter VIII, and may redesignate the new and preexisting 35 -25- SF 619 (2) 89 jm/jh/mb 25/ 64
S.F. 619 parts, replace references to sections 16.57A through 16.57D 1 with references to the new part, and correct internal 2 references as necessary, including references in subchapter or 3 part headnotes. 4 Sec. 51. EFFECTIVE DATE. This division of this Act, being 5 deemed of immediate importance, takes effect upon enactment. 6 DIVISION XVII 7 BONUS DEPRECIATION 8 Sec. 52. Section 422.7, subsection 39A, Code 2021, is 9 amended by striking the subsection. 10 Sec. 53. Section 422.35, subsection 19A, Code 2021, is 11 amended by striking the subsection. 12 Sec. 54. RETROACTIVE APPLICABILITY. This division of this 13 Act applies retroactively to January 1, 2021, for tax years 14 beginning on or after that date, and for qualified property 15 placed in service on or after that date. 16 DIVISION XVIII 17 BUSINESS INTEREST EXPENSE DEDUCTION 18 Sec. 55. Section 422.7, subsection 60, paragraph b, Code 19 2021, is amended by striking the paragraph. 20 Sec. 56. Section 422.35, subsection 27, paragraph b, Code 21 2021, is amended by striking the paragraph. 22 Sec. 57. RETROACTIVE APPLICABILITY. This division of this 23 Act applies retroactively to January 1, 2021, for tax years 24 beginning on or after that date. 25 DIVISION XIX 26 BEGINNING FARMER TAX CREDIT 27 Sec. 58. Section 16.58, subsections 1, 2, and 3, Code 2021, 28 are amended to read as follows: 29 1. “Agricultural assets” means agricultural land, 30 agricultural improvements, depreciable agricultural property, 31 crops, or livestock. 32 2. “Agricultural improvements” improvement” means any 33 improvements, including buildings, structures, or fixtures 34 suitable for use in farming which are , if located on any size 35 -26- SF 619 (2) 89 jm/jh/mb 26/ 64
S.F. 619 parcel of agricultural land. 1 3. “Agricultural land” means land suitable for use in 2 farming , any portion of which may include an agricultural 3 improvement . 4 Sec. 59. Section 16.77, subsection 2, Code 2021, is amended 5 to read as follows: 6 2. “Agricultural lease agreement” or “agreement” means an 7 agreement for the transfer of agricultural assets , that must at 8 least include a lease of agricultural land, from an eligible 9 taxpayer to a qualified beginning farmer as provided in section 10 16.79A . 11 Sec. 60. Section 16.79A, subsection 1, Code 2021, is amended 12 to read as follows: 13 1. a. A beginning farmer tax credit is allowed only for 14 agricultural assets that are subject to an agricultural lease 15 agreement entered into by an eligible taxpayer and a qualifying 16 beginning farmer participating in the beginning farmer tax 17 credit program established pursuant to section 16.78 . 18 b. The tax credit is allowed regardless of whether the 19 principle agricultural asset is soil, pasture, or a building or 20 other structure used in farming. 21 Sec. 61. Section 16.79A, subsection 2, Code 2021, is amended 22 to read as follows: 23 2. The agreement must include the lease of agricultural 24 land located in this state , including any or agricultural 25 improvements located in this state , and may provide for the 26 rental of agricultural equipment as defined in section 322F.1 . 27 Sec. 62. Section 16.79A, subsection 3, paragraph c, Code 28 2021, is amended to read as follows: 29 c. The agreement must be for at least two years, but not 30 more than five years. The agreement may be renewed any number 31 of times by the eligible taxpayer and qualified beginning 32 farmer for a term of at least two years, but not more than five 33 years. However, an eligible taxpayer shall not participate in 34 the program for more than fifteen years. 35 -27- SF 619 (2) 89 jm/jh/mb 27/ 64
S.F. 619 Sec. 63. Section 16.81, subsection 4, Code 2021, is amended 1 by striking the subsection. 2 Sec. 64. Section 16.81, subsection 6, Code 2021, is amended 3 to read as follows: 4 6. The authority shall approve all beginning farmer tax 5 credit applications that meet the requirements of this subpart 6 and make tax credit awards on a first-come, first-served basis, 7 subject to the limitations in section 16.82A . An eligible 8 taxpayer may apply and be approved to enter into agreements 9 with different qualified beginning farmers. 10 Sec. 65. Section 16.82, subsection 5, Code 2021, is amended 11 to read as follows: 12 5. The amount of tax credits that may be awarded to an 13 eligible taxpayer for any one year under all agreements an 14 agreement shall not exceed fifty thousand dollars. 15 Sec. 66. BEGINNING FARMER TAX CREDIT PROGRAM —— FORMER 16 PERIOD OF PARTICIPATION EXTENDED. An eligible taxpayer first 17 participating in the beginning farmer tax credit program on or 18 after January 1, 2019, as provided in 2019 Iowa Acts, chapter 19 161, for a tax year beginning on or after that date, may 20 participate in the program for not more than fifteen years in 21 the same manner as provided in section 16.79A, as amended by 22 this division of this Act. 23 Sec. 67. EFFECTIVE DATE. This division of this Act takes 24 effect January 1, 2022. 25 DIVISION XX 26 PROMOTIONAL PLAY 27 Sec. 68. Section 99F.1, subsections 1, 25, and 30, Code 28 2021, are amended to read as follows: 29 1. “Adjusted gross receipts” means the gross receipts on 30 gambling games less winnings paid to wagerers on gambling games 31 and less promotional play receipts on gambling games. However, 32 for each fiscal year during the time period beginning July 1, 33 2021, and ending June 30, 2026, “adjusted gross receipts” does 34 not shall include promotional play receipts received after the 35 -28- SF 619 (2) 89 jm/jh/mb 28/ 64
S.F. 619 date in any fiscal year that the commission determines that 1 the wagering tax imposed pursuant to section 99F.11 on all 2 licensees in that fiscal year on promotional play receipts 3 exceeds twenty-five million eight hundred twenty thousand 4 dollars on gambling games . 5 25. “Promotional play receipts” means the total sums wagered 6 on gambling games with tokens, chips, electronic credits, or 7 other forms of cashless wagering provided by the licensee 8 without an exchange of money as described in section 99F.9, 9 subsection 3 . 10 30. “Sports wagering net receipts” means the gross receipts 11 less winnings paid to wagerers and less promotional play 12 receipts on sports wagering. 13 Sec. 69. Section 99F.6, subsection 4, paragraph a, 14 subparagraphs (3) and (5), Code 2021, are amended to read as 15 follows: 16 (3) The commission shall authorize, subject to the debt 17 payments for horse racetracks and the provisions of paragraph 18 “b” for dog racetracks, a licensee who is also licensed to 19 conduct pari-mutuel dog or horse racing to use receipts 20 from gambling games and sports wagering within the racetrack 21 enclosure to supplement purses for races particularly for 22 Iowa-bred horses pursuant to an agreement which shall be 23 negotiated between the licensee and representatives of the 24 dog or horse owners. For agreements subject to commission 25 approval concerning purses for horse racing beginning on or 26 after January 1, 2006, the agreements shall provide that total 27 annual purses for all horse racing shall be four percent of 28 sports wagering net receipts and promotional play receipts on 29 sports wagering and no less than eleven percent of the first 30 two hundred million dollars of net receipts, and six percent of 31 net receipts above two hundred million dollars. In addition, 32 live standardbred horse racing shall not be conducted at the 33 horse racetrack in Polk county, but the purse moneys designated 34 for standardbred racing pursuant to section 99D.7, subsection 35 -29- SF 619 (2) 89 jm/jh/mb 29/ 64
S.F. 619 5 , paragraph “b” , shall be included in calculating the total 1 annual purses required to be paid pursuant to this subsection . 2 Agreements that are subject to commission approval concerning 3 horse purses for a period of time beginning on or after January 4 1, 2006, shall be jointly submitted to the commission for 5 approval. 6 (5) For purposes of this paragraph, “net receipts” means 7 the annual adjusted gross receipts from all gambling games 8 and, beginning July 1, 2026, promotional play receipts on all 9 gambling games less the annual amount of money pledged by the 10 owner of the facility to fund a project approved to receive 11 vision Iowa funds as of July 1, 2004. 12 Sec. 70. Section 99F.11, Code 2021, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 2A. a. Notwithstanding any provision 15 of this section to the contrary, the tax rate imposed on a 16 licensee each fiscal year on any amount of promotional play 17 receipts on gambling games included as adjusted gross receipts 18 shall be determined by multiplying the adjusted percentage 19 by the wagering tax applicable to the licensee pursuant to 20 subsection 2. 21 b. For purposes of this subsection, “adjusted percentage” 22 means as follows: 23 (1) For the fiscal year beginning July 1, 2021, and ending 24 June 30, 2022, eighty-three and one-third percent. 25 (2) For the fiscal year beginning July 1, 2022, and ending 26 June 30, 2023, sixty-six and two-thirds percent. 27 (3) For the fiscal year beginning July 1, 2023, and ending 28 June 30, 2024, fifty percent. 29 (4) For the fiscal year beginning July 1, 2024, and ending 30 June 30, 2025, thirty-three and one-third percent. 31 (5) For the fiscal year beginning July 1, 2025, and ending 32 June 30, 2026, sixteen and two-thirds percent. 33 c. This subsection is repealed July 1, 2026. 34 DIVISION XXI 35 -30- SF 619 (2) 89 jm/jh/mb 30/ 64
S.F. 619 TARGETED JOBS WITHHOLDING CREDIT 1 Sec. 71. Section 403.19A, subsection 3, paragraph c, 2 subparagraph (2), Code 2021, is amended to read as follows: 3 (2) The pilot project city and the economic development 4 authority shall not enter into a withholding agreement after 5 June 30, 2021 2024 . 6 DIVISION XXII 7 FOOD BANKS 8 Sec. 72. Section 423.3, Code 2021, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 107. The sales price of the sale or 11 rental of tangible personal property sold to and of services 12 furnished to a nonprofit food bank, if the property or 13 services are used by the nonprofit food bank for a charitable 14 purpose. For purposes of this subsection, “nonprofit food 15 bank” means an organization organized under chapter 504 and 16 qualifying under section 501(c)(3) of the Internal Revenue 17 Code as an organization exempt from federal income tax under 18 section 501(a) of the Internal Revenue Code that maintains 19 an established operation involving the provision of food or 20 edible commodities or the products thereof on a regular basis 21 to persons in need or to food pantries, soup kitchens, hunger 22 relief centers, or other food or feeding centers that, as an 23 integral part of their normal activities, provide meals or food 24 on a regular basis to persons in need. 25 DIVISION XXIII 26 EMERGENCY VOLUNTEER —— TAX CREDIT 27 Sec. 73. Section 422.12, subsection 2, paragraph c, 28 subparagraph (1), Code 2021, is amended to read as follows: 29 (1) A volunteer fire fighter and volunteer emergency 30 medical services personnel member credit equal to one two 31 hundred fifty dollars to compensate the taxpayer for the 32 voluntary services if the volunteer served for the entire 33 tax year. A taxpayer who is a paid employee of an emergency 34 medical services program or a fire department and who is also 35 -31- SF 619 (2) 89 jm/jh/mb 31/ 64
S.F. 619 a volunteer emergency medical services personnel member or 1 volunteer fire fighter in a city, county, or area governed 2 by an agreement pursuant to chapter 28E where the emergency 3 medical services program or fire department performs services, 4 shall qualify for the credit provided under this paragraph “c” . 5 Sec. 74. Section 422.12, subsection 2, paragraph d, 6 subparagraph (1), Code 2021, is amended to read as follows: 7 (1) A reserve peace officer credit equal to one two hundred 8 fifty dollars to compensate the taxpayer for services as a 9 reserve peace officer if the reserve peace officer served for 10 the entire tax year. 11 Sec. 75. RETROACTIVE APPLICABILITY. This division of this 12 Act applies retroactively to January 1, 2021, for tax years 13 beginning on or after that date. 14 DIVISION XXIV 15 INDIVIDUAL INCOME TAX CHECKOFFS 16 Sec. 76. Section 173.22, subsection 2, Code 2021, is amended 17 to read as follows: 18 2. A foundation fund is created within the state treasury 19 composed of moneys appropriated or available to and obtained 20 or accepted by the foundation. The foundation fund shall also 21 include moneys credited transferred to the fund as provided in 22 section 422.12I . 23 Sec. 77. NEW SECTION . 422.12D Income tax checkoff for the 24 Iowa state fair foundation fund. 25 1. A person who files an individual or a joint income tax 26 return with the department of revenue under section 422.13 27 may designate one dollar or more to be paid to the foundation 28 fund of the Iowa state fair foundation as established in 29 section 173.22. If the refund due on the return or the payment 30 remitted with the return is insufficient to pay the amount 31 designated by the taxpayer to the foundation fund, the amount 32 designated shall be reduced to the remaining amount of the 33 refund or the remaining amount remitted with the return. The 34 designation of a contribution to the foundation fund under this 35 -32- SF 619 (2) 89 jm/jh/mb 32/ 64
S.F. 619 section is irrevocable. 1 2. The director of revenue shall draft the income tax form 2 to allow the designation of contributions to the foundation 3 fund on the tax return. The department, on or before January 4 31, shall transfer the total amount designated on the tax 5 form due in the preceding year to the foundation fund. 6 However, before a checkoff pursuant to this section shall be 7 permitted, all liabilities on the books of the department of 8 administrative services and accounts identified as owing under 9 section 8A.504 shall be satisfied. 10 3. The Iowa state fair board may authorize payment from 11 the foundation fund for purposes of supporting foundation 12 activities. 13 4. The department of revenue may adopt rules to implement 14 this section. 15 5. This section is subject to repeal under section 422.12E. 16 Sec. 78. NEW SECTION . 422.12L Joint income tax checkoff for 17 veterans trust fund and volunteer fire fighter preparedness fund. 18 1. A person who files an individual or a joint income tax 19 return with the department of revenue under section 422.13 may 20 designate one dollar or more to be paid jointly to the veterans 21 trust fund created in section 35A.13 and to the volunteer fire 22 fighter preparedness fund created in section 100B.13. If the 23 refund due on the return or the payment remitted with the 24 return is insufficient to pay the additional amount designated 25 by the taxpayer, the amount designated shall be reduced to the 26 remaining amount of refund or the remaining amount remitted 27 with the return. The designation of a contribution under this 28 section is irrevocable. 29 2. The director of revenue shall draft the income tax form 30 to allow the designation of contributions to the veterans trust 31 fund and to the volunteer fire fighter preparedness fund as 32 one checkoff on the tax return. The department of revenue, 33 on or before January 31, shall transfer one-half of the total 34 amount designated on the tax return forms due in the preceding 35 -33- SF 619 (2) 89 jm/jh/mb 33/ 64
S.F. 619 calendar year to the veterans trust fund and the remaining 1 one-half to the volunteer fire fighter preparedness fund. 2 However, before a checkoff pursuant to this section shall be 3 permitted, all liabilities on the books of the department of 4 administrative services and accounts identified as owing under 5 section 8A.504 shall be satisfied. 6 3. The department of revenue may adopt rules to administer 7 this section. 8 4. This section is subject to repeal under section 422.12E. 9 DIVISION XXV 10 MENTAL HEALTH FUNDING 11 Sec. 79. Section 123.38, subsection 2, paragraph b, Code 12 2021, is amended to read as follows: 13 b. For purposes of this subsection , any portion of license 14 or permit fees used for the purposes authorized in section 15 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 16 (2), and in section 331.424A , shall not be deemed received 17 either by the division or by a local authority. 18 Sec. 80. Section 218.99, Code 2021, is amended to read as 19 follows: 20 218.99 Counties to be notified of patients’ personal 21 accounts. 22 The administrator in control of a state institution shall 23 direct the business manager of each institution under the 24 administrator’s jurisdiction which is mentioned in section 25 331.424, subsection 1 , paragraph “a” , subparagraphs (1) and 26 (2), and for which services are paid under section 331.424A 27 by the county of residence or a mental health and disability 28 services region , to quarterly inform the county of residence 29 of any patient or resident who has an amount in excess of two 30 hundred dollars on account in the patients’ personal deposit 31 fund and the amount on deposit. The administrators shall 32 direct the business manager to further notify the county of 33 residence at least fifteen days before the release of funds in 34 excess of two hundred dollars or upon the death of the patient 35 -34- SF 619 (2) 89 jm/jh/mb 34/ 64
S.F. 619 or resident. If the patient or resident has no residency in 1 this state or the person’s residency is unknown, notice shall 2 be made to the director of human services and the administrator 3 in control of the institution involved. 4 Sec. 81. Section 225.24, Code 2021, is amended to read as 5 follows: 6 225.24 Collection of preliminary expense. 7 Unless a committed private patient or those legally 8 responsible for the patient’s support offer to settle the 9 amount of the claims, the regional administrator for the 10 person’s county of residence shall collect, by action if 11 necessary, the amount of all claims for per diem and expenses 12 that have been approved by the regional administrator for the 13 county and paid by the regional administrator as provided under 14 section 225.21 . Any amount collected shall be credited to the 15 county mental health and disabilities disability services fund 16 region combined account created in accordance with section 17 331.424A 331.391 . 18 Sec. 82. Section 225C.4, subsection 1, paragraph i, Code 19 2021, is amended to read as follows: 20 i. Administer and distribute state appropriations in 21 connection with the mental health and disability services 22 regional services service fund established by section 225C.7A . 23 Sec. 83. Section 225C.7A, Code 2021, is amended by striking 24 the section and inserting in lieu thereof the following: 25 225C.7A Mental health and disability services regional 26 service fund —— region incentive fund. 27 1. A mental health and disability services regional service 28 fund is created in the office of the treasurer of state under 29 the authority of the department. The fund shall be separate 30 from the general fund of the state and the balance in the fund 31 shall not be considered part of the balance of the general 32 fund of the state. Moneys in the fund include appropriations 33 made to the fund and other moneys deposited into the fund. 34 Moneys in the fund shall be used solely for purposes of making 35 -35- SF 619 (2) 89 jm/jh/mb 35/ 64
S.F. 619 regional service payments and incentive payments under this 1 section. 2 2. a. For each fiscal year beginning on or after July 1, 3 2021, there is appropriated from the general fund of the state 4 to the mental health and disability services regional service 5 fund an amount necessary to make all regional service payments 6 under this section for that fiscal year. 7 b. The department shall distribute the moneys appropriated 8 from the mental health and disability services regional 9 service fund to mental health and disability services regions 10 for funding of services in accordance with performance-based 11 contracts with the regions and in the manner provided in this 12 section. 13 c. The performance-based contracts between the department 14 and each mental health and disability services region shall be 15 in effect beginning January 1, 2022, and shall include all of 16 the following: 17 (1) Authority for the department to approve, deny, or revise 18 each mental health and disability services region’s annual 19 service and budget plan under section 331.393. 20 (2) A requirement for the mental health and disability 21 services region to provide access to all core services under 22 section 331.397. 23 (3) A requirement that the mental health and disability 24 services region utilize all federal government funding, 25 including Medicaid funding, third-party payment sources, and 26 other nongovernmental funding prior to using regional service 27 payments received under this section. 28 (4) An annual review of the mental health and disability 29 services region’s administrative costs conducted by the 30 department. 31 (5) Authority for the department to establish outcome 32 improvement goals for populations served by the region 33 including but not limited to decreases in emergency department 34 visits, improved use of mobile crisis response and jail 35 -36- SF 619 (2) 89 jm/jh/mb 36/ 64
S.F. 619 diversion programs, and improved employment-based outcomes. 1 (6) Provisions authorizing the department, in response to 2 a mental health and disability services region’s violation of 3 the contract, to implement the actions described under section 4 331.389, subsection 5, paragraph “a” . 5 3. For each fiscal year beginning on or after July 1, 2021, 6 the moneys available in a fiscal year in the mental health and 7 disability services regional service fund, except for moneys in 8 the region incentive fund under subsection 8, are appropriated 9 to the department and shall be distributed to each region on 10 a per capita basis calculated under subsection 4 using each 11 region’s population, as defined in section 331.388, for that 12 fiscal year. 13 4. The amount of each region’s regional service payment 14 shall be determined as follows: 15 a. For the fiscal year beginning July 1, 2021, an amount 16 equal to the product of fifteen dollars and eighty-six cents 17 multiplied by the sum of the region’s population for the fiscal 18 year. 19 b. For the fiscal year beginning July 1, 2022, an amount 20 equal to the product of thirty-eight dollars multiplied by the 21 sum of the region’s population for the fiscal year. 22 c. For the fiscal year beginning July 1, 2023, an amount 23 equal to the product of forty dollars multiplied by the sum of 24 the region’s population for the fiscal year. 25 d. For the fiscal year beginning July 1, 2024, an amount 26 equal to the product of forty-two dollars multiplied by the sum 27 of the region’s population for the fiscal year. 28 e. (1) For the fiscal year beginning July 1, 2025, and each 29 succeeding fiscal year, an amount equal to the product of the 30 sum of the region’s population for the fiscal year multiplied 31 by the sum of the dollar amount used to calculate the regional 32 service payments under this subsection for the immediately 33 preceding fiscal year plus the regional service growth factor 34 for the fiscal year. 35 -37- SF 619 (2) 89 jm/jh/mb 37/ 64
S.F. 619 (2) For purposes of this paragraph, “regional service growth 1 factor” for a fiscal year is an amount equal to the product 2 of the dollar amount used to calculate the regional service 3 payments under this subsection for the immediately preceding 4 fiscal year multiplied by the percent increase, if any, in the 5 amount of sales tax revenue deposited into the general fund of 6 the state under section 423.2A, subsection 1, paragraph “a” , 7 less the transfers required under section 423.2A, subsection 8 2, between the fiscal year beginning three years prior to 9 the applicable fiscal year and the fiscal year beginning two 10 years prior to the applicable year, but not to exceed one and 11 one-half percent. 12 5. Regional service payments received by a region 13 shall be deposited in the region’s combined account under 14 section 331.391 and used solely for providing mental health 15 and disability services under the regional service system 16 management plan. 17 6. Regional service payments from the mental health 18 and disability services regional service fund shall be 19 paid in quarterly installments to the appropriate regional 20 administrator in July, October, January, and April of each 21 fiscal year. 22 7. a. For the fiscal year beginning July 1, 2021, each 23 mental health and disability services region for which the 24 amount certified during the fiscal year under section 331.391, 25 subsection 4, paragraph “b” , exceeds forty percent of the actual 26 expenditures of the region for the fiscal year preceding the 27 fiscal year in progress, the remaining quarterly payments of 28 the region’s regional service payment shall be reduced by 29 an amount equal to the amount by which the region’s amount 30 certified under section 331.391, subsection 4, paragraph “b” , 31 exceeds forty percent of the actual expenditures of the region 32 for the fiscal year preceding the fiscal year in progress, but 33 the amount of the reduction shall not exceed the total amount 34 of the region’s regional service payment for the fiscal year. 35 -38- SF 619 (2) 89 jm/jh/mb 38/ 64
S.F. 619 If the region’s remaining quarterly payments are insufficient 1 to effectuate the required reductions under this paragraph, the 2 region is required to pay to the department of human services 3 any amount for which the reduction in quarterly payments could 4 not be made. The amount of reductions to quarterly payments 5 and amounts paid to the department under this paragraph shall 6 be transferred and credited to the region incentive fund under 7 subsection 8. 8 b. For the fiscal year beginning July 1, 2022, each mental 9 health and disability services region for which the amount 10 certified during the fiscal year under section 331.391, 11 subsection 4, paragraph “b” , exceeds twenty percent of the 12 actual expenditures of the region for the fiscal year preceding 13 the fiscal year in progress, the remaining quarterly payments 14 of the region’s regional service payment shall be reduced by 15 an amount equal to the amount by which the region’s amount 16 certified under section 331.391, subsection 4, paragraph “b” , 17 exceeds twenty percent of the actual expenditures of the region 18 for the fiscal year preceding the fiscal year in progress, but 19 the amount of the reduction shall not exceed the total amount 20 of the region’s regional service payment for the fiscal year. 21 If the region’s remaining quarterly payments are insufficient 22 to effectuate the required reductions under this paragraph, the 23 region is required to pay to the department of human services 24 any amount for which the reduction in quarterly payments could 25 not be made. The amount of reductions to quarterly payments 26 and amounts paid to the department under this paragraph shall 27 be transferred and credited to the region incentive fund under 28 subsection 8. 29 c. For the fiscal year beginning July 1, 2023, and each 30 succeeding fiscal year, each mental health and disability 31 services region for which the amount certified during the 32 fiscal year under section 331.391, subsection 4, paragraph “b” , 33 exceeds five percent of the actual expenditures of the region 34 for the fiscal year preceding the fiscal year in progress, the 35 -39- SF 619 (2) 89 jm/jh/mb 39/ 64
S.F. 619 remaining quarterly payments of the region’s regional service 1 payment shall be reduced by an amount equal to the amount by 2 which the region’s amount certified under section 331.391, 3 subsection 4, paragraph “b” , exceeds five percent of the actual 4 expenditures of the region for the fiscal year preceding the 5 fiscal year in progress, but the amount of the reduction 6 shall not exceed the total amount of the region’s regional 7 service payment for the fiscal year. If the region’s remaining 8 quarterly payments are insufficient to effectuate the required 9 reductions under this paragraph, the region is required to 10 pay to the department of human services any amount for which 11 the reduction in quarterly payments could not be made. The 12 amount of reductions to quarterly payments and amounts paid to 13 the department under this paragraph shall be transferred and 14 credited to the region incentive fund under subsection 8. 15 8. a. A region incentive fund is created in the mental 16 health and disability services regional service fund under 17 subsection 1. The incentive fund shall consist of the 18 moneys appropriated or credited to the incentive fund by 19 law, including amounts credited to the incentive fund under 20 subsection 7. Notwithstanding section 8.33, moneys in the 21 incentive fund at the end of each fiscal year shall not revert 22 to any other fund but shall remain in the incentive fund for 23 use in subsequent fiscal years. For fiscal years beginning on 24 or after July 1, 2021, there is appropriated from the general 25 fund of the state to the incentive fund the following amounts 26 to be used for the purposes of this subsection: 27 (1) For the fiscal year beginning July 1, 2021, three 28 million dollars. 29 (2) (a) For each fiscal year beginning on or after July 30 1, 2025, an amount equal to the incentive fund growth factor 31 multiplied by the ending balance of the incentive fund at 32 the conclusion of the fiscal year ending June 30 immediately 33 preceding the application deadline under paragraph “b” for the 34 fiscal year for which the appropriation is made. 35 -40- SF 619 (2) 89 jm/jh/mb 40/ 64
S.F. 619 (b) For purposes of this subparagraph, the “incentive fund 1 growth factor” for each fiscal year is the percent increase, 2 if any, in the amount of sales tax revenue deposited into the 3 general fund of the state under section 423.2A, subsection 4 1, paragraph “a” , less the transfers required under section 5 423.2A, subsection 2, between the fiscal year beginning three 6 years prior to the applicable fiscal year and the fiscal year 7 beginning two years prior to the applicable year, minus one and 8 one-half percent, and the incentive fund growth factor for any 9 fiscal year shall not exceed three and one-half percent. 10 b. To receive funding from the incentive fund, a regional 11 administrator must submit to the department sufficient data 12 to demonstrate that the region has met the standards outlined 13 in the region’s performance-based contract. The purpose of 14 the incentive fund shall be to provide appropriate financial 15 incentives for outcomes met from services provided by the 16 regional administrator’s mental health and disability services 17 region. The department shall make its final decisions on or 18 before December 15 regarding acceptance or rejection of the 19 submissions for incentive funds applications for assistance and 20 the total amount accepted shall be considered obligated. 21 c. In addition to incentive submission requirements under 22 paragraphs “d” , “e” , and “g” , basic eligibility for incentive 23 funds requires that a mental health and disability services 24 region meet all of the following conditions: 25 (1) The mental health and disability services region is in 26 compliance with the regional service system management plan 27 requirements of section 331.393. 28 (2) (a) In the fiscal year that commenced two years prior 29 to the fiscal year of application for incentive funds, the 30 ending balance, under generally accepted accounting principles, 31 of the mental health and disability services region’s combined 32 services funds was equal to or less than the ending balance 33 threshold under subparagraph division (b) for the fiscal year 34 for which assistance is requested. 35 -41- SF 619 (2) 89 jm/jh/mb 41/ 64
S.F. 619 (b) For purposes of this subparagraph (2), “ending balance 1 threshold” means the following: 2 (i) For applications for the fiscal year beginning July 1, 3 2021, forty percent of the actual expenditures of the mental 4 health and disability services region for the fiscal year that 5 commenced two years prior to the fiscal year of application for 6 assistance. 7 (ii) For applications for the fiscal year beginning July 1, 8 2022, twenty percent of the actual expenditures of the mental 9 health and disability services region for the fiscal year that 10 commenced two years prior to the fiscal year of application for 11 assistance. 12 (iii) For applications for fiscal years beginning on or 13 after July 1, 2023, five percent of the actual expenditures 14 of the mental health and disability services region for the 15 fiscal year that commenced two years prior to the fiscal year 16 of application for assistance. 17 d. The department shall review the fiscal year-end financial 18 records for all mental health and disability services regions 19 that are granted incentive funds. If the department determines 20 a mental health and disability services region’s actual need 21 for incentive funds was less than the amount of incentive funds 22 granted to the mental health and disability services region, 23 the mental health and disability services region shall refund 24 the difference between the amount of assistance granted and 25 the actual need. The mental health and disability services 26 region shall submit the refund within thirty days of receiving 27 notice from the department. Refunds shall be credited to the 28 incentive fund. 29 e. The department shall determine application requirements 30 to ensure prudent use of the incentive fund. The department 31 may accept or reject an application for incentive funds in 32 whole or in part. The decision of the department is final. 33 f. The total amount of incentive funds approved shall be 34 limited to the amount available in the incentive fund for a 35 -42- SF 619 (2) 89 jm/jh/mb 42/ 64
S.F. 619 fiscal year. Any unobligated balance in the incentive fund at 1 the close of a fiscal year shall remain in the incentive fund 2 for distribution in the succeeding fiscal year. 3 g. Incentive funds shall only be made available to address 4 one or more of the following circumstances: 5 (1) To reimburse regions for reductions in available 6 funding for core services as the result of the reduction and 7 elimination of the levy under section 331.424A, Code 2021, if 8 the region has an operating deficit. The department shall 9 prioritize approval of incentive funds for the circumstances 10 specified in this subparagraph. 11 (2) To incentivize quality core services that meet or exceed 12 the defined outcomes in the performance-based contract. 13 (3) To support regional efforts to fund non-core services 14 that support the defined outcomes of core services in the 15 performance-based contract. 16 (4) To support non-core services to maintain an individual 17 in a community setting or that would create a risk that the 18 individuals needing services and supports would be placed in 19 more restrictive, higher-cost settings. 20 h. Subject to the amount available and obligated from 21 the incentive fund for a fiscal year, the department shall 22 annually calculate the amount of moneys due to eligible mental 23 health and disability services regions in accordance with the 24 department’s decisions and that amount is appropriated from the 25 incentive fund to the department for payment of the moneys due. 26 The department shall distribute incentive funds payable to the 27 mental health and disability services regions for the amounts 28 due on or before January 1. 29 i. On or before March 1 and September 1 of each fiscal 30 year, the department shall provide the governor’s office and 31 the general assembly with a report of the financial condition 32 of the incentive fund. The report shall include but is not 33 limited to an itemization of the funding source’s balances, 34 types and amount of revenues credited, and payees and payment 35 -43- SF 619 (2) 89 jm/jh/mb 43/ 64
S.F. 619 amounts for the expenditures made from the funding source 1 during the reporting period. 2 j. If the department has made its decisions but has 3 determined that there are otherwise qualifying requests for 4 incentive funds that are beyond the amount available in the 5 incentive fund for a fiscal year, the department shall compile 6 a list of such requests and the supporting information for 7 the requests. The list and information shall be submitted to 8 the commission, the children’s behavioral health system state 9 board, and the general assembly. 10 9. The commission shall consult with regional 11 administrators and the director in prescribing forms and 12 adopting rules to administer this section. 13 Sec. 84. Section 249N.8, subsection 1, Code 2021, is amended 14 to read as follows: 15 1. Biennially, a report of the results of a review, by 16 county and region, of mental health services previously funded 17 through taxes levied by counties pursuant to section 331.424A , 18 Code 2021, or funds administered by a mental health and 19 disability services region that are funded during the reporting 20 period under the Iowa health and wellness plan. 21 Sec. 85. Section 331.389, subsection 1, paragraph b, Code 22 2021, is amended to read as follows: 23 b. If a county has been exempted prior to July 1, 2014, from 24 the requirement to enter into a regional service system, the 25 county and the county’s board of supervisors shall fulfill all 26 requirements and be eligible as a region under this chapter and 27 chapter chapters 222, 225, 225C , 226, 227, 229, and 230 for a 28 regional service system, regional service system management 29 plan, regional governing board, and regional administrator, 30 and any other provisions applicable to a region of counties 31 providing local mental health and disability services. 32 Additionally, a county exempted under this subsection shall be 33 considered a region for purposes of chapter 426B. 34 Sec. 86. Section 331.389, subsection 5, paragraph a, 35 -44- SF 619 (2) 89 jm/jh/mb 44/ 64
S.F. 619 subparagraph (2), Code 2021, is amended to read as follows: 1 (2) Reduce the amount of the annual state funding provided 2 for the regional service system or exempted county, including 3 amounts received under section 225C.7A , not to exceed fifteen 4 percent of the amount. 5 Sec. 87. Section 331.391, subsections 1 and 3, Code 2021, 6 are amended to read as follows: 7 1. The funding under the control of the governing board 8 shall be maintained in a combined account , in separate county 9 accounts that are under the control of the governing board, or 10 pursuant to other arrangements authorized by law that limit the 11 administrative burden of such control while facilitating public 12 scrutiny of financial processes . A county exempted under 13 section 331.389, subsection 1, shall maintain a county mental 14 health and disability services fund for the deposit of funding 15 received under section 225C.7A and appropriations specifically 16 authorized to be made from the county mental health and 17 disability services fund shall not be made from any other fund 18 of the county. A county mental health and disability services 19 fund established by an exempt county, to the extent feasible, 20 shall be considered to be the same as a region combined account 21 and shall be subject to the same requirements as a region’s 22 combined account. 23 3. The funding provided pursuant to appropriations from the 24 mental health and disability services regional services service 25 fund created in section 225C.7A and from performance-based 26 contracts with the department shall be credited to the account 27 or accounts under the control of the governing board. 28 Sec. 88. Section 331.391, subsection 4, paragraphs a, b, and 29 c, Code 2021, are amended to read as follows: 30 a. If a region is meeting the financial obligations for 31 implementation of its regional service system management plan 32 for a fiscal year and residual funding is anticipated, the 33 regional administrator shall may reserve an adequate amount of 34 unobligated and unencumbered funds for cash flow of expenditure 35 -45- SF 619 (2) 89 jm/jh/mb 45/ 64
S.F. 619 obligations in the next fiscal year. 1 b. Each region shall certify to the department of management 2 human services on or before December 1, 2022 2021 , and each 3 December 1 thereafter, the amount of the region’s cash flow 4 amount in the combined account that is attributable to each 5 county within the region based upon each county’s proportionate 6 amount of funding and contributions to the region or other 7 methodology specified in the regional governance agreement 8 or certify the cash flow amount for each separate county 9 account that is under the control of the governing board at the 10 conclusion of the most recently completed fiscal year. 11 c. For fiscal years beginning on or after July 1, 2023, 12 the region’s cash flow amount , either reserved in the region’s 13 combined account or reserved among all separate county accounts 14 under the control of the governing board, shall not exceed 15 forty five percent of the gross actual expenditures from the 16 combined account or from all separate county accounts under 17 control of the governing board for the fiscal year preceding 18 the fiscal year in progress. 19 Sec. 89. Section 331.392, subsection 4, paragraph a, Code 20 2021, is amended to read as follows: 21 a. Methods for pooling, management, and expenditure of the 22 funding under the control of the regional administrator. If 23 the agreement does not provide for pooling of the participating 24 county moneys in a single fund, the agreement shall specify how 25 the participating county moneys will be subject to the control 26 of the regional administrator. 27 Sec. 90. Section 331.393, subsection 10, Code 2021, is 28 amended to read as follows: 29 10. The director’s approval of a regional plan shall not be 30 construed to constitute certification of the respective county 31 budgets or of the region’s budget. 32 Sec. 91. Section 331.394, subsection 4, Code 2021, is 33 amended to read as follows: 34 4. If a county of residence is part of a mental health and 35 -46- SF 619 (2) 89 jm/jh/mb 46/ 64
S.F. 619 disability services region that has agreed to pool funding and 1 liability for services, the The responsibilities of the county 2 under law regarding such mental health and disability services 3 shall be performed on behalf of the county by the regional 4 administrator. The county of residence or the county’s mental 5 health and disability services region , as applicable, is 6 responsible for paying the public costs of the mental health 7 and disability services that are not covered by the medical 8 assistance program under chapter 249A and are provided in 9 accordance with the region’s approved service management plan 10 to persons who are residents of the county or region. 11 Sec. 92. Section 331.398, subsection 1, Code 2021, is 12 amended to read as follows: 13 1. The financing of a regional mental health and disability 14 service system is limited to a fixed budget amount. The fixed 15 budget amount shall be the amount identified in a regional 16 service system management plan and budget for the fiscal year. 17 A region shall receive state funding for growth in non-Medicaid 18 expenditures through the mental health and disability regional 19 services fund created in section 225C.7A to address increased 20 service costs, additional service populations, additional core 21 service domains, and increased numbers of persons receiving 22 services. 23 Sec. 93. NEW SECTION . 331.400 Quarterly reports. 24 Beginning with the fiscal year, beginning July 1, 2022, 25 the department shall deliver on a quarterly basis a report to 26 the general assembly that provides a summary of the status of 27 implementing core services in each region, the accessibility 28 of core services in each region, how each region is using the 29 funding provided under section 225C.7A, and recommendations 30 for improvements to the mental health and disability services 31 system in order to attain the outcome improvement goals set 32 by the department consistent with the goals specified in the 33 performance-based contracts under section 225C.7A, subsection 34 2, paragraph “c” , subparagraph (5). 35 -47- SF 619 (2) 89 jm/jh/mb 47/ 64
S.F. 619 Sec. 94. Section 331.424A, subsection 1, paragraph b, Code 1 2021, is amended by striking the paragraph. 2 Sec. 95. Section 331.424A, subsection 3, Code 2021, is 3 amended to read as follows: 4 3. a. County revenues from taxes and other sources 5 designated by a county for mental health and disabilities 6 services shall be credited to the county mental health and 7 disabilities services fund which shall be created by the 8 county. The Until the required transfer of funds under 9 paragraph “b” , the board shall make appropriations from the fund 10 for payment of services provided under the regional service 11 system management plan approved pursuant to section 331.393 . 12 The For fiscal years beginning before July 1, 2022, the county 13 may pay for the services in cooperation with other counties 14 by pooling appropriations from the county services fund with 15 appropriations from the county services fund of other counties 16 through the county’s regional administrator, or through another 17 arrangement specified in the regional governance agreement 18 entered into by the county under section 331.392 . 19 b. Notwithstanding section 331.432, subsection 3, upon 20 conclusion of the fiscal year beginning July 1, 2021, except 21 for an exempt county under section 331.391, subsection 1, 22 the county treasurer shall transfer the remaining balance of 23 the county’s county services fund created under paragraph 24 “a” , including all unobligated and unencumbered funds, to the 25 county’s region to which the county belongs in the fiscal year 26 beginning July 1, 2022, for deposit in the region’s combined 27 account under section 331.391. 28 Sec. 96. Section 331.424A, subsection 4, paragraph a, Code 29 2021, is amended to read as follows: 30 a. An amount of unobligated and unencumbered funds, as 31 specified in the regional governance agreement entered into 32 by the county under section 331.392 , shall , for fiscal years 33 beginning before July 1, 2022, be reserved in the county 34 services fund to address cash flow obligations in the next 35 -48- SF 619 (2) 89 jm/jh/mb 48/ 64
S.F. 619 fiscal year , subject to the limitations of this subsection . 1 Sec. 97. Section 331.424A, subsection 4, paragraphs c and d, 2 Code 2021, are amended by striking the paragraphs. 3 Sec. 98. Section 331.424A, subsections 5, 6, and 9, Code 4 2021, are amended to read as follows: 5 5. Receipts from the state or federal government for fiscal 6 years beginning before July 1, 2022, for the mental health 7 and disability services administered or paid for by a county 8 shall be credited to the county services fund, including moneys 9 distributed to the county from the department of human services 10 and moneys allocated under chapter 426B . 11 6. For each fiscal year beginning before July 1, 2022 , the 12 county shall certify a levy for payment of services. For each 13 such fiscal year, county revenues from taxes imposed by the 14 county credited to the county services fund shall not exceed an 15 amount equal to the county budgeted amount for the fiscal year. 16 A levy certified under this section is not subject to the 17 appeal provisions of section 331.426 or to any other provision 18 in law authorizing a county to exceed, increase, or appeal a 19 property tax levy limit. 20 9. a. For the fiscal year beginning July 1, 2017, and 21 each subsequent fiscal year beginning before July 1, 2022 , the 22 county budgeted amount determined for each county shall be the 23 amount necessary to meet the county’s financial obligations for 24 the payment of services provided under the regional service 25 system management plan approved pursuant to section 331.393 , 26 not to exceed an amount equal to the product of the regional 27 per capita expenditure target amount twenty-one dollars and 28 fourteen cents multiplied by the county’s population , and, for 29 fiscal years beginning on or after July 1, 2023, reduced by 30 the amount of the county’s cash flow reduction amount for the 31 fiscal year calculated under subsection 4 , if applicable . 32 b. If a county officially joins a different region, the 33 county’s budgeted amount for a fiscal year beginning before 34 July 1, 2022, shall be the amount necessary to meet the 35 -49- SF 619 (2) 89 jm/jh/mb 49/ 64
S.F. 619 county’s financial obligations for payment of services provided 1 under the new region’s regional service system management plan 2 approved pursuant to section 331.393 , not to exceed an amount 3 equal to the product of the new region’s regional per capita 4 expenditure target amount twenty-one dollars and fourteen cents 5 multiplied by the county’s population , and, for fiscal years 6 beginning on or after July 1, 2023, reduced by the amount of 7 the county’s cash flow reduction amount for the fiscal year 8 calculated under subsection 4 , if applicable . 9 Sec. 99. Section 331.424A, Code 2021, is amended by adding 10 the following new subsection: 11 NEW SUBSECTION . 10. This section is repealed July 1, 2022. 12 Sec. 100. Section 331.432, subsection 3, Code 2021, is 13 amended to read as follows: 14 3. a. Except as authorized in section 331.477 , transfers 15 of moneys between the county services fund created pursuant 16 to section 331.424A and any other fund are prohibited. This 17 subsection paragraph does not apply to appropriations made or 18 the value of in-kind care and treatment provided pursuant to 19 section 347.7, subsection 1 , paragraph “c” , Code 2021, or to 20 transfers from a county public hospital fund under section 21 347.7 . This paragraph is repealed July 1, 2022. 22 b. Payments or transfers of moneys from any fund of the 23 county to a mental health and disability services region’s 24 combined account under section 331.391 are prohibited. This 25 paragraph applies to fiscal years beginning on or after July 26 1, 2022, but does not apply to transfers from a county public 27 hospital fund under section 347.7 for the fiscal year beginning 28 July 1, 2022, or the fiscal year beginning July 1, 2023. 29 Sec. 101. Section 347.7, subsection 1, paragraph c, Code 30 2021, is amended by striking the paragraph. 31 Sec. 102. Section 426B.1, subsection 2, Code 2021, is 32 amended to read as follows: 33 2. Moneys shall be distributed from the property tax relief 34 fund to counties for the mental health and disability regional 35 -50- SF 619 (2) 89 jm/jh/mb 50/ 64
S.F. 619 service system for mental health and disabilities services, in 1 accordance with the appropriations made to the fund and other 2 statutory requirements. 3 Sec. 103. Section 426B.2, Code 2021, is amended to read as 4 follows: 5 426B.2 Property tax relief fund payments. 6 The director of human services shall draw warrants on the 7 property tax relief fund, payable to the county treasurer 8 regional administrator in the amount due to a county mental 9 health and disability services region in accordance with 10 statutory requirements, and mail the warrants to the county 11 auditors regional administrator in July and January of each 12 year. 13 Sec. 104. Section 426B.4, Code 2021, is amended to read as 14 follows: 15 426B.4 Rules. 16 The mental health and disability services commission shall 17 consult with county representatives regional administrators 18 and the director of human services in prescribing forms and 19 adopting rules pursuant to chapter 17A to administer this 20 chapter . 21 Sec. 105. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER 22 SECTION 331.424A —— FY 2021-2022. For each county for which 23 the amount of taxes certified for levy for the purposes 24 of section 331.424A for the fiscal year beginning July 1, 25 2021, exceeds the product of the population of the county as 26 determined under section 331.424A, subsection 1, paragraph 27 “e”, multiplied by twenty-one dollars and fourteen cents, 28 the department of management shall reduce the amount of such 29 taxes certified for levy to an amount not to exceed the 30 product of the population of the county as determined under 31 section 331.424A, subsection 1, paragraph “e”, multiplied by 32 twenty-one dollars and fourteen cents and shall revise the rate 33 of taxation as necessary to raise the reduced amount. The 34 department of management shall report the reduction in the 35 -51- SF 619 (2) 89 jm/jh/mb 51/ 64
S.F. 619 certified taxes and the revised rate of taxation to the county 1 auditors by June 15, 2021. 2 Sec. 106. IMPLEMENTATION OF REGION INCENTIVE FUND UNDER 3 SECTION 225C.7A —— EMERGENCY RULEMAKING. 4 1. In order to timely implement the provisions of this 5 division of this Act establishing the region incentive fund 6 under section 225C.7A, subsection 8, for mental health and 7 disability services regions for funding the fiscal year 8